APIMEC Meetings - Banco do Brasil · This presentation may include references and statements,...

APIMEC Meetings

This presentation may include references and statements, planned synergies,

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, they also involve imprecision and

highly difficult risks to be foreseen. Consequently, they may conduct to a different

result than those anticipated and discussed here. These expectations are highly

dependent on market conditions, on Brazil’s economic and banking system

performances, as well as on international market conditions. Banco do Brasil is not

responsible for bringing up to date any estimate in this presentation.

Disclaimer

2

R$ million

Adjusted Net Income

3

2,502

3,0082,728

3,967

2,5572,704

2,986

2,657

3,180

2,685

18.1

21.418.6

27.0

16.5

19.7

21.218.1

21.217.4

1Q12 2Q12 3Q12 4Q12 1Q13

Net Income Recurring Income ROE - % Recurring ROE - %

Stock Trading Behaviour (BBAS3)

Amount Distributed (Dividends and Interest on Own Capital) – R$ billion

4

Acquisition:

BNC. BEP.

BESC and BV

Partnership

ADR 1

Launching

BB Follow-

on

Shares

repurchase

program

IPO BB

Seguridade

Acquisitions: Banco

Patagonia. BB América and

Banco Postal Partnership

Value Creation

BB is listed

on DJSI

4.064.71 4.90 4.92

1.02 1.03

2009 2010 2011 2012 1Q12 1Q13

jan-09 jan-10 jan-11 jan-12 jan-13

5

Leaderships

Deposits (R$ billion – Mar/13) Assets under Managements¹ (R$ billion – Mar/13)

Assets (R$ billion – Mar/13) Loan Portfolio¹ (R$ billion – Mar/13)

1,179.2 1,028.7

894.5

Peer A Peer B

(1) Source: Central Bank of Brazil – Market Share / December/2012

21.2%

Market

Share¹ 592.7

456.2 391.7

Peer A Peer B

20.4%

Market

Share²

(1) It includes private securities and guarantees provided.

(2) Source: Central Bank of Brazil – Domestic Portfolio Market Share.

468.2

238.6 205.9

Peer A Peer B

(1) Source: Central Bank of Brazil – Market Share / December/2012

27.9%

Market

Share¹

Peer A Peer B

(1) It does not include the loan portfolio of Banco Votorantim

(2) Source: Anbima – Market Share

20.8%

Market

Share² 477.3

372.5

283.7

Agenda

6

- Funding

- Loan Portfolio

- Asset Quality

- Sustainability

- Other businesses

- Indicators

R$ billion

Commercial Funding

7

338.8

378.0

450.5

515.7 516.8

193.5 204.7

265.8 263.0 259.0

75.7 89.3

100.1 117.7 122.6 56.5

63.5

62.0 74.8 68.7

0.4

1.2

7.4

34.1 39.4

11.8

19.4

14.5

16.6 17.9

0.9

0.7

9.6 9.2

Dec/09 Dec/10 Dec/11 Dec/12 Mar/13

Time Deposits Savings Deposits Demand Deposits LCA + LCM Interbank Deposits Repo

R$ billion

(1) It includes Subordinated Financial Letters

Financial Letters, LCA and LCI

195.7% in 12

months

323.1%

100.0%

506.6%

8

12.419.3

24.8

9.3

34.0

39.3

0.0

0.1

0.1

21.7

53.4

64.2

Mar/12 Dec/12 Mar/13

Letters of Credit - LF¹ Letters of Credit - Agribusiness - LCA Letters of Credit - Mortgage

45.0 47.5

4.67.6

11.0

17.520.3

6.2

8.8

10.0

10.9

11.7

6.2

4.9

7.0

11.2

10.9

2.0

2.1

3.1

3.2

3.1

2.8

2.0

3.5

2.2

1.5


Bond Issues Interbanking Corporates Individuals Repo

US$ billion

Foreign Borrowings

9

21.7

25.3

34.6

(1) Funds and portfolios managed

(2) It does not include Banco Votorantim

8.0% in 12

months

R$ billion

Asset Management¹

10

20.8% Market Share² 1st

442.1 444.0 477.3


Loan Portfolio

11

- Growth and Leaderships

R$ billion

Loan Portfolio – Broad Concept¹

1st

12

(1) It includes private securities and guarantees provided

(2) Domestic Loan Portfolio / Total Industry. Source: Central Bank of Brazil

144.0 176.4

210.2 273.9 280.5

91.8

113.1

130.6

152.0 156.3

67.1

75.7

89.4

108.0 110.5

18.4

23.0

35.0

46.9 45.4

321.4

388.2

465.1

580.8 592.7

20.0 19.8 19.2

20.3 20.4


Corporates Individuals Agribusiness Offshore Market Share²

Payroll 40.5 42.8 47.3 40.9 48.5 40.6

Backed by Direct Deposits 16.1 17.0 17.1 14.8 17.8 14.9

Vehicle Finance 4.6 4.9 11.0 9.5 11.7 9.8

Mortgage 6.8 7.2 10.2 8.8 11.4 9.5

Credit Cards 12.9 13.7 15.8 13.6 15.4 12.9

Consumer Finance 5.6 5.9 5.9 5.1 5.9 5.0

Overdraft 3.1 3.3 2.5 2.1 2.8 2.3

Microcredits 0.7 0.8 0.9 0.8 1.0 0.8

Other 4.2 4.4 4.9 4.2 5.0 4.2

Indivuals Loan Portfolio 94.6 100.0 115.6 100.0 119.5 100.0

Mar/13 Share %Mar/12 Share % Dec/12 Share %

R$ 24.9 billion

26.3% in 12

months

(1) It does not include BV and acquired loan portfolios

R$ billion

74.8%

Organic Individuals Loan Portfolio¹

13

72.0%

119.5

R$ 24.9 bi 26.3%

94.6

R$ billion

Individuals Loan Portfolio – Organic Growth

14

8.0

4.5

7.1

1.7 3.6

Mar/12 Payroll Mortgage Vehicle Finance Backed by DirectDeposits

Other Mar/13

94.6

66.3% in

12 months

R$ billion

Mortgage Loan Portfolio

15

6.87.7

8.510.2

11.4

1.8

2.12.3

2.7

3.0

0.5 0.3 0.4 0.3 0.3

8.6

9.810.8

12.9

14.3

Mar/12 Jun/12 Sep/12 Dec/12 Mar/13

Individuals mortgage Corporates mortgage NPL + 90 - %

153.2% in

12 months

R$ billion

Organic Auto Financing¹

16

(1) It does not include BV and acquired loan portfolios

4.6

6.7

9.2

11.0 11.7

2.1 1.4 0.9 0.9 1.0


NPL + 90 - %

R$ 69.1 billion

32.7% in 12

months

R$ billion

Loans to Companies – Broad Concept¹

17

Working Capital 113.8 53.8 153.3 56.0 157.1 56.0

Investment 38.2 18.1 44.7 16.3 46.2 16.5

Trade Finance 16.1 7.6 15.4 5.6 15.4 5.5

Corp. Bonds & Notes 22.5 10.6 34.6 12.6 35.5 12.6

Guarantees 14.9 7.1 17.6 6.4 16.9 6.0

Other 5.8 2.7 8.4 3.1 9.4 3.4

Corporate Loan Portfolio 211.4 100.0 273.9 100.0 280.5 100.0

Mar/12 Share % Dec/12 Share % Mar/13 Share %

(1) Includes Private Securities and Garantees

137.8

176.2 180.6

70.2

88.9 89.33.3

8.9 10.7

211.4

274.0 280.5


SME Government Total

27.1%

31.5%

R$ billion

Loans to Companies

Companies Loan Portfolio by size

18

SME Loan Portfolio – Operations Guarantee Fund (FGO)

32.7% in 12

months 42.8% in

12 months

10.0

13.9 14.3

422.9 461.3 460.9


Number of Operations (thousand)

R$ billion

Investiments – Disbursement

3.7% in

12

months

19

16.9

20.4

33.8

42.8

10.3

2009 2010 2011 2012 1Q13

1Q12

10.0

Main Sectors

Infrastructure Projetcs

20

Ports Airports Roads

Railroads Electric Energy Sanitation

Oil and Gas Marine Industry Urban Mobility

Contracted Volume (%) – 1Q13

Infrastructure Projetcs

21

Energy22.0%

Marine Sector and Oil13.0%

Transport10.5%

Telecom4.6%

Other2.0%

More than one Sector47.9%

19.5% in 12

months

R$ billion 63.3% Market Share 1st

Agribusiness Loan Portfolio

22

Agribusiness – Crop Plan 2012/2013

• Disbursement Goal¹: R$ 55.0 billion

• Disbursement¹ up to mar/13: R$ 45.1 billion (82.0%)

(1) Amount referred to Rural Credit

67.1

75.7

89.4

108.0 110.5


Purpose Mar/12 Share % Dec/12 Mar/13 Share % Mar/12 Dec/12

Work. Capital for Input Purchase 29.4 31.8 35.8 36.4 33.0 23.9 1.8

Investment¹ 34.0 36.8 42.8 45.5 41.1 33.6 6.2

Crop Trading 4.3 4.7 5.0 4.1 3.7 (4.7) (17.5)

Agroindustry 21.2 22.9 21.5 22.0 19.9 3.7 2.0

Other 2.7 3.0 1.8 1.8 1.6 (35.2) (4.3)

Classified Loan Portfolio 91.7 99.1 107.0 109.7 99.3 19.7 2.6

Rural Product Bills and Guarantees 0.8 0.9 1.0 0.8 0.7

Loan Portfolio - Broad Concept 92.4 100.0 108.0 110.5 100.0 19.5 2.3

Chg. % Over

R$ billion

(1) Tractors, Pastures (fertilizers, etc.), Machinery and Implements, Harvesters, Matrices Purchase (cattle), etc.

Agribusiness Loan Portfolio by Purpose

23

Asset Quality

24

- Delinquency below the Banking Industry

- Concentration of the loans at AA-C risks

- BV Asset Quality Improvement

Asset Quality

Risk Level – Mar/13 (%)

25

Coverage Ratio + 90 days (%)

NPL +90 days (%)

Risk AA-C Risk D-H

BI¹

(1) Banking Industry

3.02

4.43

3.18 3.60 3.70 3.60

2.36 2.28

2.16 2.05 2.00

3.26

2.34

1.81 1.77 1.74

2008 2009 2010 2011 2012

BI BB consolidated BB stand alone

94.3

5.7

92.3

7.7

156.1 174.4 157.3 148.7 146.2

190.3212.1

207.6 196.5 199.7


BI BB

BB

%

Delinquency per Segment¹

26

Indiv

iduals

C

om

panie

s

Agri

busin

ess

NPL 15 NPL + 90 days Risk AA-C (1) It does not include BV and acquired loan portfolios

5.21 4.90 4.74 4.20 4.312.95 2.76 2.76 2.60 2.38

91.1 91.5 91.7 92.2 92.4

3.44 3.21 3.56 3.16 3.46

1.98 2.12 2.26 2.18 2.20

95.3 95.1 94.8 95.2 95.1

0.87 0.720.95 0.96 1.00

0.62 0.51 0.48 0.63 0.64

94.3 94.5 94.6 95.2 95.2


Managed Autoloans Portfolio by Vintage Coverage x Delinquency (classified) - %

Allowances Expensses – Classified Portfolio – R$ million

Banco Votorantim – Credit Quality

27

8598 98 104 111

8.2 8.4 8.07.0

6.4


Coverage + 90 - % NPL + 90 - %

26 22 19 15 13

59 57 5247 43

15 21 29 38 44


Until Jun/10 Jul/10 to Sep/11 After Sep/11

1,5871,438

1,332

1,066 1,004

1Q12 2Q12 3Q12 4Q12 1Q13

Other Businesses

28

- Insurance, Pension Plans and Premium

Bonds

- Capital Markets

- Cards

BB Seguridade

IPO Gross Revenue for BB

R$ 9.877billion

29

Market Positon

Net Income

(1Q13) 6 (R$ million)

Businesses

SH1 Life1

SH2 P&C2

Pension Plans

Premium Bonds

Broker

95.7 16.9 133.1 12.3 193.6 454.9 7 8

1st 3 5

Insurance, Pension Plans and Premium Bonds Distribution Holding

Source: BB Seguridade and Susep

(1) SH1 includes Life, Credit, Housing and Rural Insurance/ (2) SH2 includes Auto, Damages and Others (except for Housing and Rural Insurance) / (3) 1st position: Represents life

insurance of BB Seguridade / (4) 2nd position: Represents the P&C products of BB Seguridade / (5) considers Susep ranking about collection products as of March 2013 /

(6) Includes net income of BB Seguridade / (7) Includes adjustments for extraordinary items / (8) net income of BB Seguridade includes R$ 3.3 million related to holding and taxes

revenues / expenses, which are not presented above.

1st 1st 1st 1st 2nd

Revenues– R$ million

Capital Market

(1) BB didn’t operate with equity on the 1Q12.

30

18.4

7.0 7.8 8.1

28.5

25.0

12.6

21.6

39.8

1Q12 2Q12 3Q12 4Q12 1Q13

Equity

Fixed Income

1

Cards

31

ELO Brand

Cards

22.8% in 12

months

BB Consume Volume

(R$ billion)

Cards - Units (million)

Consume Volume

(R$ billion)

Cards – BB Units

(million)

2.32 1.87

0.46 1.32

10.65 9.29

2.98 1.93

80.6

287.0

87.2

64.8

2012 1Q13 %

Market Share - % 2.2 3.6

(1) In 2013, the banks issuers of the Elo Brand migrated their agribusiness, prepaid

and domestic cards from other brands to Elo.

21.9

28.826.8

26.8

192.4 201.5

1Q12 4Q12 1Q13

Credit Cards - Revenues ( R$ Billion)

BB Crediário - Disbursement (R$ Million)

Indicators

32

- Cost to Income Ratio

- BIS Ratio

R$ billion

Cost to Income Ratio

33

(1) Administrative Expenses / Operational Revenues. Datas reffers to Income Statement with Realocations. 12 months accumulated ratio.

19.2

22.6

24.8

28.2

6.6 7.1

40.7

44.0 42.9 43.2 43.2 43.6

2009 2010 2011 2012 1Q12 1Q13

Administrative Expenses Cost to Income Ratio (%)¹

%

BIS Ratio

34

10.57 11.02 10.53 10.55 10.58

3.25 3.06 3.454.28

5.72

13.82 14.08 13.9814.83

16.29


Tier I Tier II

%

Guidance

35

(1) Adjusted ROAE estimated for 2013 uses estimated shareholders’ equity, according to current legislation on December 31, 2012.

(2) Includes total deposits. Agribusiness Letters of Credit - LCA. Mortgage Bonds - LCI and Repurchase Agreements Operations with Private Securities.

(3) Domestic Loan Portfolio,in Broad Concept, includes private securities and guarantees.

(4) Expenses with allowance for loan losses of the last twelve months/average, classified loan portfolio, of the same period.

Adjusted Return on Equity¹ 14 - 17 17.4

Net Interest Income 7 - 10 1.7

Commercial Funding² 15 - 19 11.4

Domestic Loan Portfolio³ - Broad Concept 16 - 20 25.7

Individuals 18 - 22 18.7

Companies 16 - 20 32.7

Agribusiness 13 - 17 19.5

Allowance for Loan Losses⁴ 3.0 - 3.4 3.0

Fee Income 10 - 14 6.7

Administrative Expenses 7 - 10 6.6

2013 Guidance 1Q13 Performance

Sustainability

36

- Agenda 21

- Sustainable Regional Development

- Banco do Brasil Foundation

37

New Agenda 21 (2013-2015)

- 120 senior executives

- 29 Directorships + Banco do Brasil Foundation and Affiliated Companies

- 92 macro actions

Agenda 21

Corporate

Governance

Social Businesses

Finance

Inclusion

Stakeholders

Commitment

Eco efficiency

Private Social

Investments

Human Resourses

Development

Environmental

Risk

38

Sustainable Regional Development

Plans: 723

Beneficiaries: 282.8 thousand

Municipalities: 900

Portfolio R$ 5,130.9 million

South

Plans: 299


Municipalities: 256

Portfolio R$ 875,1 million

North

Plans: 1.464

Beneficiaries: 474 thousand

Municipalities: 1.392


Northeast

Plans: 1.276


Municipalities: 1.190


Southeast

Plans: 337


Municipalities: 375


Midwest

Banco do Brasil Foundation

39

Lines of Action (2012) - % of the Total Invested

Private Social Investments (R$ million)

Sources of the Resources Invested (R$ million)

80.594.0

118.6136.2

223.9

2008 2009 2010 2011 2012

196.1

27.8

Own Resources

Third partyresources

86.7

0.2 13.1Income and Jobs generation

Innovative Projects

Culture and Education

196.1

22.42.7 2.4 0.3

FBB BNDES Petrobras MTE/Senaes IDB

Contacts

40

APIMEC Meetings - Banco do Brasil · This presentation may include references and statements,...

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