1Investor Relations

Banco do Brasil3Q06 Results

Banco do Brasil3Q06 Results

Investor Relations

2Investor Relations

2Q06 9M05Net Income 1,438 1,546 907 3,417 4,796 -41.3 40.4

Net Interest Income 4,199 4,312 4,403 12,336 13,121 2.1 6.4Allowance for Loan Losses¹ (966) (1,757) (1,385) (3,029) (4,487) -21.2 48.1Fee Income 1,952 2,246 2,252 5,648 6,601 0.3 16.9Administrative Expenses 3,338 3,451 3,443 9,637 10,131 -0.2 5.1

Sep/05 Dec/05 Jun/06Total Assets 245,511 252,977 273,836 281,615 14.7 11.3 2.8

Loan Portfolio 94,685 101,789 113,103 118,349 25.0 16.3 4.6Securities Portfolio 68,610 66,470 70,677 73,766 7.5 11.0 4.4Deposits 122,672 137,658 139,939 144,902 18.1 5.3 3.5Assets Under Management 150,378 153,508 171,154 180,629 20.1 17.7 5.5Shareholders' Equity 16,826 16,850 19,178 20,197 20.0 19.9 5.3

% 3Q05 2Q06 3Q06 9M05 9M06ROE - Annualized 40.8 36.3 19.8 30.5 35.9

NIM - Annualized 9.0 8.1 7.9 8.6 7.9Efficiency 44.9 43.3 48.7 47.5 46.5Delinquency ² 3.9 3.6 3.8Allowance / Deliquency ² 161.2 203.9 196.6

BIS Ratio 17.4 17.3 17.7

Sep/05 Jun/06Change % over

Dec/05 Sep/06

3Q05 2Q06Change % over

3Q06 9M05 9M06

HighlightsHighlightsHighlightsHighlights

(1) Credit Operations characteristics only(2) Past Due Loans + 60 days

R$ million

3Investor Relations

Net Interest Income - R$ million NIM¹ annualized - %

Net Interest IncomeNet Interest IncomeNet Interest IncomeNet Interest Income

(1) Net Interest Margin over Earning Assets

3Q05 4Q05 1Q06 2Q06 3Q06

4,1994,398 4,406 4,312 4,403

9.0 9.28.5

8.1 7.9

4Investor Relations

Sep/05 Dec/06 Jun/06 Sep/06 %Dec/05 %Jun/06Loan Portfolio 94,685 101,789 113,103 118,349 16.3 4.6Domestic 86,146 92,612 103,209 107,922 16.5 4.6

Individuals 18,510 18,386 21,637 23,155 25.9 7.0Free Funds 16,560 16,685 20,201 21,681 29.9 7.3

Payroll Loans 3,286 3,810 6,040 7,356 93.1 21.8Car Loans 202 188 409 618 229.1 51.0

SMEs 15,006 15,204 16,847 16,813 10.6 -0.2Businesses 21,383 23,315 24,811 27,630 18.5 11.4Agribusiness 31,247 35,708 39,914 40,324 12.9 1.0

Abroad 8,539 9,177 9,894 10,427 13.6 5.4

R$ million

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

Individuals SMEs Businesses Agribusiness Abroad

2Q06 - % 3Q06 - %

19.6

14.0

23.6

34.1

8.819.1

14.7

22.2

35.3

8.7

5Investor Relations

R$ million

CDC Electrônico¹ CDC Salário² CDC Payroll Loans CDC Total

(1) Loan to individuals with pre-approved credit, through ATM(2) Granted to whom receives his/her wage in BB’s account

Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)

623 639815 795 704546 521 615 538 432

1,118 1,004

1,668

2,3662,567

3,4193,065

4,286

5,185 5,022

3Q05 4Q05 1Q06 2Q06 3Q06

6Investor Relations

BBAA-C D-HAA-C D-H

2Q06 3Q06

Credit Risk - %Credit Risk - %Credit Risk - %Credit Risk - %

(1) Source: Brazilian Central Bank

BankingIndustry¹

Retail Commercial Agribusiness ForeignTrade

Abroad

88.9 89.6 94.9 95.1 84.8 81.5 98.1 97.5 98.6 98.6

18.5 1.9 2.5 1.4 1.415.24.95.110.411.1

88.4 87.6 89.5 89.6

10.5 10.412.411.6

7Investor Relations

Delinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit Risk

Quarterly Provision Expenses - R$ million

Provision Expenses / Loan Portfolio¹ - %

Allowance for loan losses / Loan Portfolio - %Past Due Loans + 15 days / Loan Portfolio - %Past Due Loans + 60 days / Loan Portfolio - %

(1) Average Portfolio and Expenses of the last 12 months

6.3 6.67.3 7.4 7.4

5.9

5.66.0

5.0 5.2

3.9 4.0 4.33.6 3.8

3Q05 4Q05 1Q06 2Q06 3Q06

4.24.7 4.9

5.5 5.6

966

3Q05

1,498

4Q05

1,345

1Q06

1,757

2Q06

1,385

3Q06

8Investor Relations

Individuals Credit Deliquency¹Individuals Credit Deliquency¹Individuals Credit Deliquency¹Individuals Credit Deliquency¹

Banking IndustryBB BB

Past Due Loans + 15 days - % Past Due Loans + 90 days - %

(1) Free Funds Operations except Funds e Programs, Credit Card Fin., Leasing.

Banking Industry

14.9 14.8 14.713.9

14.513.8

14.5 14.7

13.3 12.8 12.4 12.1 12.113.1 13.4 13.8

12.913.7 13.6 14.0 14.3

14.8 14.2 14.5 14.5 14.5

8.1 8.2 8.2 8.5 8.2 8.1 7.5 7.4

7.1 6.8 6.8 6.8 6.86.5 6.5 6.8 6.7 6.9 7.2 7.3 7.4

7.7 7.2 7.5 7.6 7.8

Sep/05 Nov/05 Jan/06 Mar/06 May/06 Jul/06 Sep/06

9Investor Relations

Allowance for loan losses / Loan Portfolio Past Due Loans + 15 days / Loan Portfolio

160.8% delinquency covered by provision

8.9%

5.5%

Jun/05 Sep/05 Nov/05 Jan/06 Mar/06 May/06 Jul/06 Sep/06

Agribusiness – Provision x DelinquencyAgribusiness – Provision x DelinquencyAgribusiness – Provision x DelinquencyAgribusiness – Provision x Delinquency

10Investor Relations

Quarterly Provision Expenses - R$ million Provision Expenses / Loan Portfolio - %

Agribusiness – ProvisionAgribusiness – ProvisionAgribusiness – ProvisionAgribusiness – Provision

44 80 68 63134

79 49127 158 194

462

748656

1,050

641

0.20.4 0.3 0.2

0.50.3 0.2

0.4 0.5 0.6

1.5

2.11.8

2.6

1.6

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

11Investor Relations

3Q05 2Q06 3Q06 %2Q06 9M05 9M06 %9M05

Fee Income 1,952 2,246 2,252 0.3 5,648 6,601 16.9

Customer Relationship 638 751 747 -0.5 1,890 2,194 16.1

Investment Fund Management 321 359 380 5.9 909 1,095 20.5

Credit Operations 149 194 182 -6.3 456 565 23.8

Billings 185 228 220 -3.6 536 638 19.0

Services Rendered to Affiliated 57 66 62 -6.0 162 188 16.4

Third Party Receiving and Payment 82 91 94 3.3 245 273 11.5

Credit Cards 144 165 178 8.3 422 508 20.4

Settlement and Funds Transfer 200 207 194 -6.0 565 607 7.4

Others 175 184 193 4.9 464 532 14.7

R$ million

Fee IncomeFee IncomeFee IncomeFee Income

(1) 12 months average

12Investor Relations

(Fees + NII) per account holder¹ - R$

Market Share - %

Account Holders - million

Assets Under Management - R$ billion

19.7

150.4 153.5169.2 171.2 180.6

20.9 20.2 20.1 19.7

3Q05 4Q05 1Q06 2Q06 3Q06

22.3 22.9 23.3 23.7 24.1

284 290 288 284 278

3Q05 4Q05 1Q06 2Q06 3Q06

Fee IncomeFee IncomeFee IncomeFee Income

13Investor Relations

3Q05 2Q06 3Q06 %2Q06 9M05 9M06 %9M05

Administrative Expenses (3,106) (3,253) (3,216) -1.1 (9,133) (9,624) 5.4

Personnel Expenses (1,709) (1,839) (1,804) -1.9 (5,034) (5,424) 7.7

Other Administrative Expenses (1,362) (1,383) (1,378) -0.3 (3,991) (4,091) 2.5

Telecom. and Data Processing (375) (362) (374) 3.3 (1,052) (1,110) 5.4

Amortization and Depreciation (157) (171) (177) 3.8 (477) (517) 8.6

Security, Guard and Transp. Serv. (177) (193) (214) 11.0 (543) (593) 9.3

Exp. with Premises and Equipment (172) (187) (189) 1.2 (521) (568) 8.9

Marketing and Public Relations (114) (108) (90) -16.5 (319) (270) -15.2

Exp. with Outsourced Services (129) (135) (129) -4.8 (404) (393) -2.8

Other Administrative Expenses (238) (226) (204) -9.6 (676) (641) -5.2

Other Tax Expenses (36) (31) (34) 10.0 (108) (109) 0.5

Legal Risk (268) (229) (192) -16.2 (503) (616) 22.4

Legal Claims (40) (67) (51) -24.3 (183) (219) 19.3

Labor Claims (228) (162) (141) -13.0 (319) (397) 24.4

R$ million

Administrative ExpensesAdministrative ExpensesAdministrative ExpensesAdministrative Expenses

14Investor Relations

Coverage¹ Ratio - %

(1) Fee Income / Personnel Expenses - YTD(2) Administrative Expenses / Operating Income - YTD

Productivity RatiosProductivity RatiosProductivity RatiosProductivity Ratios

Efficiency² Ratio - %

47.5 48.1 48.1 45.5 46.5

103.4 102.3112.1 112.2 113.4

3Q05 4Q05 1Q06 2Q06 3Q06

3Q05 4Q05 1Q06 2Q06 3Q06

15Investor Relations

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

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

Fax: 55 (61) 3310.3735

www.bb.com.brri@bb.com.br

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