Banco do Brasil S.A. 3Q07

1

Banco do Brasil S.A.Banco do Brasil S.A.

3Q073Q07

2

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

Interest Rate - Selic Price Index - IPCA

Ratio - %

Source: Central Bank and Brazilian Institute of Geography and Statistics - IBGE

2003

16.5

9.3

2004

17.8

7.6

2005

18.0

5.7

2006

13.3

3.1

9M07

11.2

3.0

14.2

2.0

9M06

3

Trade BalanceInternational Reserves

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

Sovereign Risk – basis points

Source: Agência Estado, Ministry of Development, Industry and Foreign Trade and Central Bank

USD billion

463383

303

192

2003

24.8

49.3

2004

33.6

52.9

2005

44.753.8

2006

46.1

85.8

3Q07

30.9

163.0

34.0

73.3

3Q06

231177

4

Banking IndustryBanking IndustryBanking IndustryBanking Industry

2003 2004 2005 2006

Businesses Individuals

Loan Segments – Free Resources %Loan / GDP - %

Source: Central Bank

39.543.6

47.2 47.8

60.556.4

52.8 52.2

Sep/07

49.2 50.8

26.2 26.928.1

30.833.1

5

Loan SegmentsLoan SegmentsLoan SegmentsLoan Segments

2003 2005 20062004

Payroll Loan Credit Card / Overdraft AccountCars Others

Individual Loan Segments - %

Source: Central Bank

45.1

26.6

11.7

16.6

42.5

26.7

10.6

20.2

47.2

27.5

13.0

12.4

55.1

29.7

15.2

Sep/07

43.2

25.8

10.4

20.6

6

Banco do Brasil StructureBanco do Brasil StructureBanco do Brasil StructureBanco do Brasil Structure

COBRABB-99.36% ON

99.34% TotalBI-0.03% ON

0.03% Total

BB LEASINGBB - 100% ON

100% Total

BB VIENA BB -100% ON

100% Total

BBCARTÕESBB - 100% ON

100% Total

BB LEASING Co. LTD

BB - 100% ON 100% Total

BB DTVM BB -100% ON

100% Total

BBCORRETORA

BB - 100%ON 100% Total

BAMBBB -100% ON

100% Total

BBCONSÓRCIOS

BB - 100% ON 100% Total

BB BIBB - 100% ON

100% Total

BANCO DO BRASIL SECURITIES LLC

BB - 100% ON 100% Total

BBSECURITIESBAMB -100% ON

100% Total

BB TURISMO

BAMB - 99% ONBB LEASING – 1%ON

100%Total

ATIVOS S.A. BB BI - 49% ON

74.50 % TotalBAMB - 51% ON 25.50% Total

ALIANÇADO BRASIL

BB-BI 40% ON 70% Total

BRASILPREV

BB-BI 49.99% ON 49.99% Total

CIBRASEC

BB-BI 9.09% ON 9.09% Total

SBCE

BB-BI 12.08% ON 12.08% Total

BRASILSAÚDE

BB-BI 49.92%ON 49.92% Total

VISANET

BB BI Classe A 35% Classe B 28.75%

31.99% Total

ITAPEBI


BRASILCAP

BB-BI 49.99% ON 49.99% Total

KEPLER WEBER

BB-BI 24.38% ON 24.38% TotalDTVM 0.30% ON

0.30% Total

VISA VALE

BB BI 35% ON 40.35% Total

PRONORBB 0% ON

1.05% TotalBI 0% ON

3.27% TotalDTVM 29.5% ON

12.02% Total

Strategic Partnerships

Non-Strategic Partnerships

BRASIL VEÍCULOS


NEOENERGIA

BB-BI 8.81% ON 8.81% Total

TECBAN

BB BI 8.96% ON 8.96% Total

CLEARINGS

CIP BB 9.78% ON 9.78% TotalCBLC BB 2.45% ON 2.45% Total

B B

Strategic Partnerships

CADAM

BB 0% ON 21.64% Total

Non-Strategic Partnerships

Banco do BrasilBanco do Brasil

Other Partnerships

Affiliated Companies

BB BI

Wholly Owned Subsidiaries

BANCO POPULAR DO BRASIL BB -100% ON

100% Total

7

Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure

Board of Officers

International Business and

Wholesale

Retail Serviceand

Distribution

GovernmentAffairs

Technology and Logistic

Finance,Capital Market andInvestor Relations

CEO

Human Resourcesand Social-

EnvironmentalResponsibility

Credit,Controlling and

Risk Management

Vice-Presidents

Credit and DebitCards andNew RetailBusiness

Agribusinesses

Board of Directors

General Shareholders Meeting

Board of Auditors

Audit Committee

Internal Audit

8

Banco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s SharesBanco do Brasil’s Shares

National Treasury

PREVI

BNDESPar

Foreign Investors

Others

68.7

11.4

5.0

7.3

7.5

Free Float: 14.8

Participation - %

As of June 2007

9

Share’s PerformanceShare’s PerformanceShare’s PerformanceShare’s Performance

2003 2004 2005 2006

Price / Book Value

2003 2004 2005 2006

Price / Earnings

7.48.6 8.1 8.7

1.41.8 2.0

2.5

9M07

9M07

15.0

3.3

10


31.3

2003

31.5

2004

36.1

2005

40.0

2006

Payout - %

2003 2004 2005 2006

Dividend Yield - %

4.23.7

4.4 4.6

40.0

9M07

9M07

2.0

11


Ibovespa Banco do Brasil

Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

612.8%

277.7%

12

PerformancePerformancePerformancePerformance

Net Income - R$ million

ROE - %

Market Capitalization - R$ billion

Dividends / Interest on Capital - R$ million

2003

2,381

2004

3,024

2005

4,154

2006

6,044

22.3 23.0 26.832.1

2003

17.6

2004

26.0

2005

33.7

2006

52.8746

954

1,498

2,418

9M06 9M07

3,841

24.0

35.9

1H06

52.8

2S06

41.3

862

1,5361,555

76.5

9M07

4,796

13

Capital StructureCapital StructureCapital StructureCapital Structure

Shareholder’s Equity - R$ billion Tier I - %

BIS Ratio -%

Tier II - %

12.2

2003

14.1

2004

16.8

2005

20.8

2006 2003 2004 2005 2006

9.7

4.0

10.6

4.6

11.7

5.4

11.7

5.6

17.317.115.2

13.7

20.2

3Q06 3Q07 3Q06 3Q07

23.1

11.9

5.8

10.5

5.2

15.717.7

14

118.3

150.2

281.6

342.4

3Q06 3Q07 3Q06 3Q07

HighlightsHighlightsHighlightsHighlights

Market Share¹ - %

Loan Portfolio - R$ billion

Market Share - %

Assets - R$ billion

2003 2004 2005 2006

230.1 239.0253.0

296.4

77.6

2003

88.6

2004

101.8

2005

133.2

2006

16.3 16.515.315.9

14.815.1

16.517.3

CAGR: 11.2%

(1) Domestic Portfolio

CAGR: 19.3%

15


Market Share - %

Assets Under Management - R$ billion

Market Share - %

Deposits - R$ billion

110.0

2003

115.5

2004

137.7

2005

158.8

2006

102.7

2003

124.0

2004

153.5

2005

182.7

2006

19.1

20.219.7

19.020.320.220.2

22.4

CAGR: 12.7% CAGR: 20.5%

206.9

3Q06 3Q07 3Q06 3Q07

144.9

172.2

180.6

16

Customers - million


Individuals Businesses Employees - thousand

2003 18.817.5 1.2

2004 21.119.7 1.4

2005 22.921.5 1.4

2006 24.422.8 1.6

2003 78.0

2004 79.7

2005 83.8

2006 82.7

CAGR:

8.3%

8.0%

3Q07 25.2

3Q06 24.1

3Q07

3Q06

23.6 1.6

22.6 1.5

80.0

82.6

17

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyDistribution Network

Northeast

Branches 998Others 2,892Total 3,890

Branches 1,541Others 3,913Total 5,454



Branches 242Others 921Total 1,163

North

Midwest

South

Southeast

7.6%

11.3%

25.6%

35.9%

19.6%

18

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and Technology

Branches Others

Points of Service - thousand

Automated Teller Machine (ATM) - thousand2003 13.23.2 10.0

2004 14.43.7 10.7

2005 14.83.9 10.9

2006 15.14.0 11.1

37.02003

39.02004

40.22005

39.72006

3.9 11.03Q06 15.0

4.0 11.23Q07 15.2

3Q07

3Q06

39.4

42.6

19

Infrastructure and TechnologyInfrastructure and TechnologyInfrastructure and TechnologyInfrastructure and Technology

Transaction in Automated Channels - %

ATM

Internet BankingCashier

POS

Others

Breakdown of Transactions - %

3Q06 3Q07

2004 88.4

2005 89.2

2006 90.0

86.42003

3Q06 89.4

3Q07 90.7

48.2

30.2

10.6

7.1 4.0

46.4

32.1

9.3

8.14.1

20

Administrative Expenses - R$ billion Operational Income - R$ billion

ProductivityProductivityProductivityProductivity

Efficiency Ratio - %

11.3

20.3

12.6

23.2

13.1

27.3

13.7

28.9

2003 2004 2005 2006

55.8 54.248.1 47.5

9M06 9M07

6.7

19.0

9.7

22.1

53.548.2

21

Fee Income - R$ billionPersonnel Expenses - R$ billion

Coverage Ratio - %

ProductivityProductivityProductivityProductivity

2003 2004 2005 2006

6.8

5.5

7.16.6

7.5 7.6 7.9

8.9

112.9102.3

93.180.6

9M06 9M07

5.4

6.6

5.2

7.3

128.8113.4

22

Net Interest IncomeNet Interest IncomeNet Interest IncomeNet Interest Income

2004 2005 2006

17.1

11.3

2.9

15.8 19.2

12.4

2.0

16.8 21.6

13.5

1.6

18.7

R$ billion

Security Revenues

Loan Revenues

Other Interest RevenuesInterest Expense

Net Interest Income

15.516.7

18.0

10.2

15.8

1.2

13.9

9.6

18.7

1.7

14.6

9M06 9M07

13.3

15.3

23

FundingFundingFundingFunding

R$ billion

Demand Deposits Saving Deposits

Time Deposits Others¹

2003

150.1

2004

160.1

2005

168.2

2006

208.1

(1) Include Interbank Deposits, Investment Deposits and Money Market Borrowing

48.2

47.3

27.4

27.1

49.7

50.3

31.1

29.0

63.5

36.0

32.8

35.8

76.9

54.4

36.7

40.1

3Q06

189.2

3Q07

247.0

72.3

50.1

34.4

32.4

83.6

80.9

43.8

38.7

24

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

16.1

33.4

30.0

9.0 18.4

38.5

35.7

9.224.0

51.9

45.1

12.2

2004 2005 2006

IndividualsBusinesses Agribusiness Abroad

R$ billion

88.6101.8

133.2

3Q06 3Q07

59.7

48.4

29.5

12.6

150.2

44.4

40.3

23.2

10.4

118.3

25

DelinquencyDelinquencyDelinquencyDelinquency

Allowance / Loan Portfolio - %

Past Due Loans + 15 days / Loan Portfolio - %

Past Due Loans + 60 days / Loan Portfolio - %

5.6

6.4 6.3

7.4

6.4

4.8

5.45.9 5.2

4.7

3.2 3.2

3.9 3.83.4

Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

26

Loan Portfolio - IndividualsLoan Portfolio - IndividualsLoan Portfolio - IndividualsLoan Portfolio - Individuals

2004 2005 2006

Cars

Payroll Loan

Overdraft Account Credit Cards

Others

16.1

18.4

24.0

R$ billion

0.3 2.2

2.01.5

10.0

0.2 2.2

2.5

3.8

9.7

0.92.2

3.1

8.3

9.5

3Q06 3Q07

3.6

2.6

11.0

2.2

29.5

10.1

2.8

2.4

7.4

9.9

23.2

0.6

27

Loan Portfolio - BusinessesLoan Portfolio - BusinessesLoan Portfolio - BusinessesLoan Portfolio - Businesses

2004 2005 2006

13.2

20.2

15.4

23.1

18.3

33.6

Middle and Large EnterprisesSmall and Micro Enterprises

33.4

38.5

51.9

R$ billion

3Q06 3Q07

44.4

59.7

18.1

26.3

20.7

39.0

28

Loan Portfolio - AgribusinessLoan Portfolio - AgribusinessLoan Portfolio - AgribusinessLoan Portfolio - Agribusiness

Mini-Sized Farmers

Small-Sized Farmers

Other Farmers

Cooperative

2004 2005 2006

1.3 3.1

6.0

19.6

1.83.8

7.4

22.8

2.05.3

8.6

29.230.0

35.7

45.1

R$ billion

3Q06 3Q07

40.3

48.4

1.8 1.74.7

7.6

26.2

5.9

9.0

31.8

29

RetailRetailRetailRetail

Credit Card Revenue - R$ billion¹

Issued Credit Cards - million

(1) Debt cards included

18.1

2003

24.3

2004

31.6

2005 2006

14.1

9.3

6.95.3 37.9

9M06 9M07

27.1

35.0

11.4

17.8

30

InsuranceInsuranceInsuranceInsurance

Managed Portfolio - R$ millionInsured Cars - thousand

Car Insurance

171.8

238.7

318.5

367.0

2003 2004 2005 2006

676625

578500

3Q06 3Q07

366.7

423.3

726647

31


Managed Portfolio - R$ millionInsured Lives - thousand

Life Insurance

2003 2004 2005 2006

570.5

680.6717.1

820.1

1,2631,351 1,417

1,748

3Q06 3Q07

728.2

880.9

1,8031,697

32


Managed Portfolio - R$ millionParticipants - thousand

Pension Fund

2003 2004 2005 2006

5,586

7,781

9,659

12,480

1,1781,365

1,5761,760

3Q06 3Q07

11,634

14,662

1,9601,713

33


Managed Portfolio - R$ millionsQuantity of Plans - thousand

Capitalization (Annuity Plans)

2003 2004 2005 2006

2,0602,264

2,875 2,886

2,661

2,792

2,949

2,851

2,834 2,629

2,782

2,840

3Q06 3Q07

34

Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor

70073-901 - Brasília (DF)Phone: 55 (61) 3310.3980

Fax: 55 (61) 3310.3735

[email protected]

DisclaimerDisclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the

management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the

international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.

For further information access www.bb.com.br/ri

35

Sustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional DevelopmentSustainable Regional Development

Strategy for job and income generation in a sustainable way which began in 2003.

Support to environmentally correct, socially fair, economically viable and culturally diversified productive activities.

2004 2005 2006 1H06 1H07

Contracted Amount - R$ million 13.6 105.4 313.8 230.0 477.6 Benefited Families (thousand) 16.8 70.6 230.9 149.1 307.3 Involved Branches 428 1,482 2,502 1,693 3,586 Skilled Employees 1,370 4,062 6,052 5,469 9,788 Served Municipalities 642 1,503 2,788 1,830 3,343 Approved Business Plans 120 375 1,020 710 1,529 Productive Activities 40 70 70 70 70

Documents

Banco do Brasil S.A. 3Q07