Earnings Release Report 3Q10

1/19

3Q10 Earnings Release

Focused on Corporate Lending

São Paulo, November 11, 2010 – Banco Indusval S.A., financial institution with activities

primarily focused on middle market lending, operating in the Brazilian market for over 40 years,

listed at the Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and

IDVL4, announces its financial results for the third quarter 2010 (3Q10).

Highlights

� The loan portfolio, including guarantees and letters of

credit, closed 3Q10 at R$ 1.8 billion, up 5.0% from

3Q09.

� Allowance for loan losses totaled R$ 112 million,

covering 6.6% of the loan portfolio and around 180%

of Non-Performing Loans (more than 60 days

overdue).

� Total funding remained at around R$ 1.9 billion, with

longer tenors and cash free of current obligations of R$

679 million, equivalent to 46% of total deposits.

� Net profit of R$ 7.5 million in the quarter and R$ 23

million in the first nine months, with a significant

increase in recurring revenues.

� Banco Indusval Multistock is ranked 3rd among Latin

America’s most sustainable midsized banks in 2010,

according to the Spanish consultancy firm

Management & Excellence, in partnership with Latin

Finance.

IDVL4: R$ 8.00 per share

Closing: 11/11/2010

Total Shares: 41,212,984

Market Cap: R$ 329.7 MM

Conference Call/ Webcasts:

Nov. 12/2010

In English

Webcast

At: 12 pm (US EST)/ 3 pm (Brasília) Webcast will be available on:

www.indusval.com.br/ir

In Portuguese

Conference Call and Webcast

At: 11 am (US EST) / 2 pm (Brasília)

Phone: (55 11) 4688-6361

Code: Banco Indusval

Website: www.indusval.com.br/ir

2/19

The financial and operating information presented in this report are based on consolidated financials prepared in local currency

(Real), according to Brazilian GAAP.

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09

Income from Financial Intermediation 39.1 33.1 6.4 18.1% 510.6% 107.4 66.9 60.4%

Operating Results 12.6 12.1 (16.1) 3.8% 178.0% 35.5 (3.1) 1244.6%

Net Profit 7.5 8.3 (7.8) -9.5% 196.3% 23.1 8.3 177.4%

3Q10 2Q10 3Q09 3Q10/2Q10 3Q10/3Q09

Loan Portfolio 1,707.3 1,686.6 1,631.7 1.2% 4.6%

Loan Portfolio + Guarantees and L/Cs 1,769.1 1,762.6 1,684.2 0.4% 5.0%

Cash & Short Term Investments 54.0 353.2 349.5 -84.7% -84.5%

Securities and Derivatives 1,404.5 937.8 903.9 49.8% 55.4%

Total Assets 3,230.2 3,043.8 2,856.6 6.1% 13.1%

Total Deposits 1,471.2 1,373.3 1,215.9 7.1% 21.0%

Open Market 739.0 561.5 522.8 31.6% 41.3%

Foreign Borrowings 323.5 414.2 333.2 -21.9% -2.9%

Domestic On-lending 108.0 93.1 182.9 16.0% -41.0%

Shareholders’ Equity 432.4 429.7 438.1 0.6% -1.3%

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09

Free Cash 679.7 695.5 707.1 -2.3% -3.9%

NPL 60 days/ Loan portfolio 3.7% 2.6% 8.1% 1.1 p.p. -4.5 p.p.

NPL 90 days/ Loan portfolio 2.5% 2.2% 7.0% 0.3 p.p. -4.4 p.p.

Basel Index 19.9% 20.3% 21.6% -0.4 p.p. -1.7 p.p.

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09

ROAE 7.2% 7.9% -6.8% -0.8 p.p. 14.0 p.p. 7.2% 2.5% 4.7 p.p.

Net Interest Margin (NIM) 7.0% 6.8% 6.1% 0.2 p.p. 0.9 p.p. 6.8% 8.5% -1.7 p.p.

Net Interest Margin (NIMa) 8.5% 8.5% 7.5% 0.0 p.p. 1.0 p.p. 8.3% 10.0% -1.7 p.p.

Efficiency Ratio 61.6% 55.2% 60.7% 6.4 p.p. 0.9 p.p. 59.3% 49.1% 10.2 p.p.

3Q10 2Q10 3Q09

Number of Clients - Corporate Borrowers 703 694 643

Number of Employees 354 349 345

Banco Indusval Multistock (BIM) is a commercial bank with 43 years of experience in the financial markets, focusing on local and foreign currency corporate loan products. Operating with agility and quality in its services, BIM has a wide range of products designed to meet the specific needs of this market, including structured deals. To guarantee such a level of service, the Bank relies on a network of 11 branches strategically located in economically relevant Brazilian regions, including an offshore branch, and its subsidiary Indusval Multistock Corretora de Valores, the brokerage arm that operates at the São Paulo Stock, Commodities and Futures Exchange - BM&FBOVESPA. The Bank is a publicly-held financial institution listed at Level 1 Corporate Governance of the BM&FBOVESPA since July 2007 and voluntarily adopts additional practices specific to companies listed in the Novo Mercado special trading segment.

Results

Balance Sheet Resultados Trimestrais

Key Indicators – R$ MM

Performance

Other Information

3/19

In the third quarter of 2010, the Brazilian economy proved its consistent behavior and showed that

the political developments had little influence on its performance. However, Banco Indusval

maintained the approach it adopted at the end of 2009, when it decided to review its medium- and

long-term business strategies. In other words, we are overcoming the recent past setbacks and are

reinforcing our structure to expand our businesses. Though the market demands immediate results,

for the sake of consistency and sustainability, this process is not developed overnight.

The first step in this direction was the strategic alliance established at the brokerage firm in June

2009, which, though still in the investment phase, is already operating on a new technological

platform with products tailored to the profile of the existing and the target clients. Also with an

improved expertise that is compatible with market demand. As second step, with the decision to

broaden the focus of operations to include the ‘upper middle’ companies, we segmented the client

service platform into Middle Market, targeted at companies with annual revenue of up to R$ 400

million, and the one denominated ‘Large Companies’, targeted at companies with annual revenue of

over R$ 400 million. This new service platform was created in July and should deliver more

consistent results in around 12 months. The objective of this segmentation is to increase the

competitiveness in meeting the specific demands of each segment, given that for upper-middle

companies our competitive advantage rests on structured operations with customized solutions.

Thus, our numbers transparently reflect this period of work towards the expansion and perpetuity of

Banco Indusval in a consistent and sustainable manner.

The economies of developed countries are expanding modestly, with no inflation pressures,

resulting in low interest rates. The combination of low interest rates and available liquidity

encourages the flow of funds to emerging economies, which present the highest growth rates and

demand for investments. This trend has led to a strong appreciation of their currencies against the

U.S. dollar, since the recovery of the U.S. economy is slower than of European countries.

In 3Q10, the Brazilian economy stands to benefit from this scenario, registering low inflation and

little pressure on interest rates, which enable longer-term funding and reasonable costs in virtually

all sectors. This expansion potential of the economy attracts investments both in the means of

production and in financial assets, despite measures to curb the exaggerated appreciation of the

Brazilian real. This situation points to strong economic growth, with increased investments, income

and consumption, and lower unemployment rates. This growth should reach levels that are

sustainable in the long run, in 2011, allowing inflation and interest rates to remain stable and, in

the backdrop of the global scenario, point to an attractive environment for investments, credit and

consumption in 2011.

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/9M09

GDP Variation (IBGE- Q on Q) 2.36% (*) 3.74% 0.58% -1.38 p.p. 1.78 p.p. 9.87% (*) 2.23% 7.64 p.p.

Inflation Rate (IPCA – IBGE) 0.50% 1.00% 0.63% -0.50 p.p. -0.13 p.p. 3.55% 3.17% 0.38 p.p.

FX Rate Variation (US$/ R$) -5.96% 1.15% -8.70% -7.11 p.p. 2.74 p.p. -2.70% -23.90% 21.20 p.p.

Interest Base Rate Variation (Selic) 2.62% 2.23% 2.19% 0.39 p.p. 0.43 p.p. 7.03% 7.67% -0.64 p.p.

Individuals Default Rate (BACEN) 6.00% (*) 6.50% 8.10% -0.50 p.p. -2.10 p.p. 6.00% (*) 8.10% -2.10 p.p.

Corporate Default Rate (BACEN) 3.50% (*) 3.60% 4.00% -0.10 p.p. -0.50 p.p. 3.50% (*) 4.00% -0.50 p.p.

(*) Central Bank of Brazil estimates or preliminary figures

Macroeconomic Environment

Management Comments

4/19

Credit in Brazil

Credit Operations in the Financial System

Individuals Corporates

Resources Resources Balances in R$ Million Non

earmarked Earmarked

Total Non earmarked

Earmarked Total

Total R$ million

Credit/GDP %

2008 Dec 394 287 138 019 532 306 476 890 218 098 694 988 1 227 294 40.8

Mar 411 953 141 124 553 077 465 180 224 634 689 814 1 242 891 41.0

Jun 434 331 147 255 581 587 464 467 230 787 695 254 1 276 841 41.8

Sep 451 453 158 746 610 199 470 422 267 578 738 000 1 348 200 43.9 2009

Dec 469 899 166 131 636 030 484 661 293 704 778 366 1 414 396 45.0

Mar 486 529 176 278 662 807 483 400 305 459 788 859 1 451 666 44.6

Jun 505 906 185 938 691 844 511 630 324 814 836 443 1 529 007 45.7 2010

Sep* 527 949 200 010 727 959 533 010 351 002 884 012 1 611 971 46.7

Variation %

In the month 1.4 2.9 1.8 2.2 1.1 1.7 1.8 0.4 p.p.

In the quarter 4.4 7.6 5.2 4.2 8.1 5.7 5.4 1.0 p.p.

In the year 12.4 20.4 14.5 10.0 19.5 13.6 14.0 1.7 p.p.

In 12 months 16.9 26.0 19.3 13.3 31.2 19.8 19.6 2.8 p.p.

* BACEN estimates Source: BACEN

Preliminary data from the Brazilian Central Bank for September 2010 put the total loan operations

in the country’s financial system at R$ 1.6 trillion, with an increase in the credit/GDP ratio to

46.7%. The estimated balance of loan operations on September 30, 2010, represents growth of

1.8% in the month and 5.4% in the quarter. Until August, this growth was clearly driven by

earmarked credit in both individual and corporate segments. September was the first in 24 months

when the increase in non-earmarked credit was slightly higher than of earmarked loans, especially

in corporate loans and financing.

Operations contracted with free credit accounted for 65.8% of the total credit, compared to 34.2%

in earmarked credit, which mainly consisted of housing loans for individuals and BNDES loans for

companies. Operations with free credit, which amounted to R$ 1.1 trillion, increased by 4.4% in the

quarter (4.9% in 2Q10) and 15.1% in 12 months. Meanwhile, earmarked loans totaled R$ 0.5

trillion, increasing by 7.5% and 29.2%, respectively. The earmarked loans’ share of total loans

increased to 34.2% in September, from 33.5% in June 2010. Government-controlled banks

maintained their 42% share of total loans.

BIM focuses on free-credit loans to companies, with credit agreements mainly in the R$10,000 to

R$100 million range which, according to the Central Bank, grew by 6% (including earmarked loans)

in the three months through August and by 12% year to date.

Default

Central Bank data for September 2010

depict a slow recovery in default rates,

mainly in corporate loans, which registered

a mere 0.3 p.p. improvement in 2010,

while individual loan defaults fell by 1.7

p.p. in the period. The Central Bank’s

percentages refer to the total balance of

loans overdue more than 90 days.

3.5

6.0

4.7

1,0

3,0

5,0

7,0

9,0

Dec Dec Dec Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

200620072008 2009 2010

%

Corporates Individuals Total

Source: BACEN

5/19

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09

Income from Financial Intermediation

123.4 110.4 94.3 11.9% 31.0% 348.2 314.3 10.8%

Loan Operations 72.0 65.6 58.4 9.7% 23.2% 198.8 203.7 -2.4%

Loans & Discounts Receivables 63.1 59.9 51.2 5.3% 23.1% 175.0 173.3 1.0%

Financing 7.9 4.3 6.7 81.4% 16.8% 18.7 29.4 -36.2%

Other 1.1 1.4 0.5 -24.8% 128.9% 5.0 1.0 385.0%

Securities 44.9 18.9 29.1 137.5% 54.5% 88.1 76.5 15.2%

Derivative Financial Instruments 0.0 6.8 0.0 -100.0% n.m. 8.4 0.0 n.m.

FX Operations Result 6.6 19.1 6.8 -65.6% -3.2% 53.0 34.1 55.3%

Financial Intermediation Expenses

84.4 77.3 87.9 9.1% -4.0% 240.8 247.4 -2.6%

Money Market Funding 55.2 46.0 40.8 20.0% 35.3% 140.0 104.9 33.4%

Time Deposits 37.9 34.2 27.7 10.7% 36.7% 100.5 67.2 49.5%

Repurchase Transactions 15.8 10.6 11.2 49.5% 41.4% 34.7 26.5 31.1%

Interbank Deposits 1.5 1.2 1.9 26.6% -20.1% 3.7 10.3 -64.3%

Loans. Assign. & Onlending 8.1 18.7 4.5 -56.6% 80.2% 55.7 16.7 233.6%

Foreign Borrowings 1.6 16.8 (0.6) -90.5% -365.0% 44.7 4.5 892.4%

Dom. Borrowings + Onlending 6.5 1.9 5.1 248.1% 27.6% 11.1 12.1 -8.7%

Derivative Financial Instruments 9.7 0.0 7.6 n.m. 27.1% 9.7 31.0 -68.8%

Allowance for Loan Losses 11.4 12.7 35.0 -10.4% -67.5% 35.5 94.9 -62.6%

Result from Financial Intermediation

39.1 33.1 6.4 18.2% 510.8% 107.4 66.9 60.4%

Income from Financial Intermediation, detailed in note 15(a) to the financial statements and

summarized above, increased by 11.9% from 2Q10 and by 31.0% from 3Q09. Income from loan

operations accounted for 58%, followed by income from securities operations and foreign exchange

operations, which represented 36% and 5%, respectively. The reduction foreign exchange income is

directly related to the 5.96% appreciation of the real in the period, which also impacted the

expenses with foreign borrowings.

Income from Securities Operations increased significantly in the quarter to reach R$ 44.9 million,

due to the higher average balances held in government bonds and the growth in the volume of ADR

arbitrage operations. These operations are characterized by the arbitraging of the prices of shares

traded on the Brazilian stock exchange with the prices of ADRs of the same companies on the New

York Stock Exchange, always maintaining the equivalent volumes. These operations generated

income of R$ 2.9 million. Income from securities operations also showed effects in other balance

sheet items, such as net foreign exchange gains or losses from foreign operations and cash position

amounting to expenses of R$ 1.4 million, booked under ‘other operating income and expenses’, that

adjust income from securities operations to R$ 43.5 million. A part of the expenses with derivatives,

which totaled R$ 9.7 million, is linked to forward contracts on interbank rates (DI Futuro) to hedge

the securities operations, given that the Bank’s treasury department constantly seeks to mitigate

currency, rate and index mismatches.

In the first nine months, income from financial intermediation was R$ 348.2 million, up 10.8% year

over year, while net foreign exchange gains, booked under ‘other operating income and expenses’,

came to R$ 0.6 million, which would increase income from financial intermediation to R$ 348.8

million (up 11.0% from 9M09).

Results from Financial Intermediation – R$ MM

Operating Performance

Profitability

6/19

Expenses from Financial Intermediation, detailed in note 15(b) to the financial statements,

corresponded to 68% of the income from financial intermediation in 3Q10 (compared to 70% in

2Q10 and 93% in 3Q09) and 69% in 9M10 (versus 79% in 9M09). These expenses increased 9.1%

in the quarter (down 4.0% from 3Q09), versus an 11.9% growth in income from financial

intermediation (up 31.0% from 3Q09). As a result, income from financial intermediation increased

18.2% in 3Q10 and 510.8% in twelve months.

Money Market Funding Expenses increased, primarily due to the growth in the average volume of

money market funding and the higher number of working days in the quarter.

In 3Q10, the Result from Derivative Financial Instruments was a R$ 9.7 million loss, primarily due

to the currency, rate and index hedge operations, with a significant share of hedges of pre-fixed

government bonds to the interbank rate (DI), as mentioned previously.

As a result of the real’s appreciation, Expenses with Loans, Assignments and Onlending fell

significantly in the quarter but increased in twelve months, due both to the expansion of the Trade

Finance portfolio and the foreign exchange variations.

Allowance for Loan Losses were R$ 11.4 million in the quarter (equivalent to 9.2% of income from

financial intermediation), while the total allowance remained at R$ 112.2 million on September 30,

2010, providing a coverage deemed adequate by Management.

Expenses from financial intermediation decreased 2.6% between 9M09 and 9M10, chiefly due to the

decline in the expenses with Allowance for Loan Losses in view of a more positive scenario, and in

expenses with derivatives due to the foreign exchange variations.

Net Interest Margin

The combination of Income and Expenses with Financial Intermediation, detailed above, resulted in

a Result from Financial Intermediation of R$ 39.1 million in the quarter, 18.2% more than in 2Q10

and substantially higher than the R$ 6.4 million recorded in 3Q09. Year-to-date net income from

financial intermediation was R$ 107.4 million, 60% more than in 9M09.

Net Interest Margin (NIM) on allowance for loan

losses, as presented in previous quarters, has

remained stable at around 7.0% in the past three

quarters.

However, adjusting the result from financial

intermediation with the foreign exchange effects on

securities (booked under ‘other operating income and

expenses’), as mentioned earlier, and excluding from

the average interest-bearing assets those assets that

do not bear interest due to their null result in

repurchase operations of equal amount, interest rate

and tenor in liabilities, we arrive at the (a)NIM, i.e.

adjusted net interest margin:

Financial Intermediation Result (+) ALL expenses (+)Net FX variation on Securities

Average interest-bearing Assets (Repos deducted)

7.0%

8.5%

5.4%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

N IM N IM (a) GIM

7/19

Efficiency Ratio

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09

Personnel Expenses 14.0 14.3 12.5 -2.2% 11.9% 40.8 37.5 8.8%

Contributions and Profit-sharing 2.6 1.9 1.3 40.6% 97.1% 7.0 3.8 82.1%

Administrative Expenses 9.9 8.9 9.5 10.2% 4.3% 28.1 32.5 -13.5%

Taxes 5.3 2.6 2.3 106.1% 127.2% 11.1 8.8 26.5%

Other Operating Expenses 2.3 0.5 1.4 358.6% 66.9% 6.3 2.1 198.3%

A- Operating Expenses Total 34.2 28.2 27.1 21.0% 26.3% 93.3 84.8 10.1%

Gross Income Fin. Interm. (w/o ALL) 50.5 45.7 41.4 10.4% 21.9% 142.9 161.8 -11.7%

Income from Services Rendered 3.2 2.6 2.6 22.3% 25.3% 8.7 8.7 0.2%

Income from Banking Tariffs 0.3 0.3 0.2 8.8% 35.3% 0.7 0.5 37.6%

Other Operating Income 1.5 2.5 0.4 -41.3% 256.0% 5.0 1.7 198.3%

B- Operating Income Total 55.5 51.2 44.6 8.4% 24.4% 157.3 172.7 -8.9%

Efficiency Ratio (A/B) 61.6% 55.2% 60.7% 6.4 p.p. 0.9 p.p. 59.3% 49.1% 10.2 p.p.

The Efficiency Ratio in 3Q10 was impacted by higher operating expenses, including the FX and tax

effects on operations abroad, notedly in September, by the increase in the IOF charges, which

raised these expenses to R$ 1.9 million in the quarter.

Net Profit

Banco Indusval Multistock registered Net profit of R$ 7.5 million in 3Q10,

down 9.5% from 2Q10, due to the factors described above.

Net profit in 9M10 was R$ 23.1 million, a significant recovery from the R$

8.3 million recorded in 9M09, specially considering recurring revenues. Net

profit in 9M09 included non-operational revenue, net of taxes, from the

sale of BM&FBOVESPA and CETIP stock in the amount of R$ 4.5 million.

Efficiency Ratio – R$ MM

Solid improvement in recurring net profit

8/19

The Loan Portfollio, as extensively detailed in the Explanatory Note 6 to the Financial Statements,

grew 1.2% in the quarter, prevailing the working capital loans and discount of receivables

operations to corporate borrowers. The trade finance transactions (Financing in Foreign Currency –

Import Financing and Advances on FX Contracts – Export Financing) represent 20% of the total loan

portfólio, in spite of the Brazilian real appreciation in 3Q10. Aditionally, the credit portfolio also

bears BNDES onlendings and FINAME operations; the remaining R$ 7.8 million outstanding balance

of the car loan portfolio discontinued in October 2008; and, the R$ 15.5 million portion of middle

market loans and car financings assigned to other financial institutions under our credit risk

coverage (co-obligation).

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09

Loan Operations 1.401.4 1.365.3 1.390.2 2.6% 0.8%

Loans & Discounted Receivables 1.227.6 1.204.4 1.106.5 1.9% 10.9%

BNDES/ Finame 91.1 72.7 155.4 25.3% -41.4%

Direct Consumer Credit – used vehicles 7.8 9.9 21.8 -21.3% -64.2%

Financing in Foreign Currency 42.1 33.1 12.7 27.1% 231.3%

Other Financing 17.3 19.7 28.6 -12.0% -39.4%

Assignment with Co-obligation 15.5 25.5 65.2 -39.3% -76.3%

Advances on Foreign Exchange Contracts 297.7 314.1 241.5 -5.2% 23.3%

Other Loans 8.2 7.2 0.0 14.1% n.m.

DISBURSED CREDIT OPERATIONS 1.707.3 1.686.6 1.631.7 1.2% 4.6%

Guarantees Issued (Guarantees. L/Gs and L/Cs) 61.8 76.0 52.5 -18.7% 17.7%

TOTAL 1.769.1 1.762.6 1.684.2 0.4% 5.0%

Allowance for Loan Losses (112.2) (107.8) (133.0) 4.1% -15.7%

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09

Local Currency - Real 1.367.5 1.339.4 1.377.5 2.1% -0.7%

Foreign Currency 339.8 347.2 254.2 -2.1% 33.7%

TOTAL 1.707.3 1.686.6 1.631.7 1.2% 4.6%

Loan operations in reais represented 80% of the portfolio of loans granted on September 30, 2010,

expanding by 2.1% while the foreign currency operations decreased by the same percentage,

though representing a lower volume of total loans (20%). The reduction in the Trade Finance

balance is directly linked to the appreciation of the real, since in U.S. dollar terms it actually grew

7%, from US$ 189.2 million in June to US$ 201.6 million in September.

As announced in August, the Bank amplified its client strategy to follow their growth and the greater

service sophistication required by them, in addition to developing an operational mix that enables it

to improve the quality of the loan portfolio and widen its income base. A new relationship platform

was structured in July for larger clients. This platform, called “Large Companies” in the table below,

serves companies with annual revenue of over R$ 400 million, concentrated in upper middle

companies. Thus, Banco Indusval Multistock operates in the middle market segment, which

accounts for 92% of the loan portfolio, the upper middle segment, which in September 2010

represented 6.4% of the portfolio, and other credits, including the remaining balance of the car

loans discontinued in October 2008, which accounts for 1.6% of the portfolio.

Loan Portfolio

Loan Portfolio by Product– R$ MM

Loan Portfolio by Currency – R$ MM

9/19

3Q10 2Q10 3Q09 3Q10/2Q10 3Q10/3Q09

Middle Market 1,524.2 1,602.3 1,523.8 -4.9% 0.0%

Local Currency - Real 1,240.8 1,255.1 1,269.5 -1.1% -2.3%

Loans & Discounted Receivables 1,150.6 1,181.8 1,114.1 -2.6% 3.3%

Financing 1.4 0.6 - 139.3% n.m.

BNDES / FINAME 88.9 72.7 155.4 22.2% -42.8%

Foreign Currency 283.4 347.2 254.2 -18.4% 11.5%

Large Companies 110.0 - - - -

Local Currency - Real 53.6 - - - -

Loans & Discounted Receivables 51.4 - - - -

BNDES / FINAME 2.2 - - - -

Foreign Currency 56.4 - - - -

Other 73.1 84.3 107.9 -13.3% -32.3%

Consumer Credit – used vehicles 18.9 23.3 41.4 -18.7% -54.2%

Acquired Loans & Financing 46.0 53.8 66.5 -14.7% -30.9%

Other Loans 8.2 7.2 - 14.8% n.m.

Disbursed Credit Operations 1,707.3 1,686.6 1,631.7 1.2% 4.6%

Guarantees Issued 61.8 76.0 52.5 -18.7% 17.6%

TOTAL 1,769.1 1,762.6 1,684.2 0.4% 5.0%

Allowance for Loan Losses (112.2) (107.8) (133.0) 4.0% -15.6%

Industry Participation

Food. Beverage and Tobacco 18.7%

Agribusiness 17.0%

Civil Construction 10.5%

Chemical & Pharmaceutical 5.4%

Automotive 4.5%

Transportation & Logistics 4.5%

Textile. Apparel and Leather 4.2%

Education 4.0%

Individuals 3.2%

Financial Services 3.1%

Oil and Biofuel 3.1%

Financial Institutions 2.7%

Metal Industry 2.6%

Wholesale and retail trade 1.7%

Paper and Pulp 1.3%

Other sectors (*) 13.5%

TOTAL 100.0%

(*) Individual participation of less than 1.2% of credit portfolio

Loan Portfolio by Client Segment – R$ MM

Loan Portfolio by Industry

10/19

By Economic Activity By Segment

Financial Interm. 1%

Commerce 11%

Individuals 8%

Other Services 25%

Industry 55%

Retail and Other 4%

Upper Middle 6%

Middle Market 90%

By Product By Client Concentration

Loans & Discounts 69%

Other3%

Guarantees Issued

4%BNDES Onlendings

5%

Trade Finance 19%

61 - 160 25%

11 - 60 32%

Other 25%

10 largest 18%

By Maturity By Guarantee

181 to 360 15%

91 to 180 21%

+ 360 days 30%

up to 90 days 34%

Aval PN 23%

Monitored Pledge 8%

Securities 3%

Pledge/ Lien 5%

Vehicles 7%

Real State 8%

Receivables 46%

3Q10 2Q10 3Q09

Rating % Required Provision

Loan Portfolio

Allowance for Loan Losses

Loan Portfolio Allowance for Loan Losses

Loan Portfolio

Allowance for Loan Losses

AA 0.0% 0.0 0.0 - - 25.0 0.0

A 0.5% 584.9 2.9 548.2 2.7 463.3 2.3

B 1.0% 460.6 4.6 466.9 4.7 429.6 4.3

C 3.0% 408.5 12.3 459.4 13.8 511.9 15.4

D 10.0% 116.3 11.6 95.4 9.5 61.7 6.2

E 30.0% 75.9 22.8 55.1 16.5 34.8 10.5

F 50.0% 20.1 10.0 19.9 10 17.0 8.5

G 70.0% 5.0 3.5 8.9 6.2 8.1 5.7

H 100.0% 36.0 36.0 32.8 32.8 80.2 80.2

Compl. Allowance - 0.0 8.5 - 11.6 - 0.0

TOTAL - 1.707.3 112.2 1.686.60 107.8 1.631.7 133.0

Quality of Loan Portfolio – R$ MM

11/19

Allowance for loan losses totaled R$ 112.2 million and consisted of: (a) regulatory provisions of R$

103.7 million in 3Q10; and (b) voluntary complementary provisions of 0.5% of the loan portfolio in

the amount of R$ 8.5 million. Complementary provisions are maintained for potential difficulties in

the payment of renegotiated loans and in the aging of loans overdue more than 60 days classified

between D and H.

The Loan Portfolio balance includes loans amounting to R$ 207.9 million renegotiated with clients,

which, though not overdue, are classified between D and H credit ratings, until the credit analysis of

the economic and financial fundamentals of the debtor or an increase in the collaterals justify such

risk reclassification.

In September, loans classified between D and H totaled R$ 253.3 million, equivalent to 14.8% of

the loan portfolio, of which 75% were performing loans. The balance of agreements with

installments overdue more than 60 days totaled R$ 62.6 million on September 30, 2010,

corresponding to 3.7% of the loan portfolio making up the default ratio (NPL 60 days). The balance

of agreements with installments overdue more than 90 days totaled R$ 42.9 million, representing

2.5% of the loan portfolio (NPL 90 days).

Overdue Contracts Outstanding (NPL)

Outstanding

> 60 days > 90 days

3Q10 2Q10 3Q10 2Q10 3Q10 2Q10

Middle Market 1,524.2 1,602.3 56.1 3.7% 36.1 2.3% 37.1 2.4% 29.6 1.8%

Large Companies 110.0 - - - - - - - - -

Other 73.1 84.3 6.4 8.8% 8.0 9.5% 5.8 7.9% 6.9 8.1%

TOTAL 1,524.2 1,602.3 56.1 3.7% 36.1 2.3% 37.1 2.4% 29.6 1.8%

Allowance for Loan Losses (ALL) 112.2 107.8 - - - -

Allowance for Loan Losses / NPL - - 179.2% 244.5% 261.78% 295.4%

ALL/ Loan Portfolio 6.6% 6.4% - - - -

Note that the above table shows that the allowance for loan losses on September 30, 2010,

corresponded to 6.6% of the loan portfolio, versus 6.4% in 2Q10.

It is worth mentioning that the carry-forward of corporate loans overdue during 2009 impacts the

maintenance of the default ratios which, according to the Central Bank data presented in the

beginning of this report, have practically remained stable at around 3.6% for loans overdue more

than 90 days.

In the quarter, the total balance of agreements in the loan portfolio of the Bank with installments

overdue more than 90 days, and therefore comparable to the Central Bank data, corresponded to

2.5% of the portfolio. The Management believes that the allowances constituted provide sufficient

coverage for the overdue loans.

In 3Q10, loans amounting to R$ 7.0 million (R$ 15.6 million in 2Q10), classified as H for 180 days,

hence 100% provisioned, were written off, bringing total write-offs in 9M10 to R$ 56.7 million.

Recovery of overdue loans, though still slower than desired, totaled R$ 1.0 million in 3Q10 (R$ 1.4

million in 2Q10) and R$ 4.9 million in 9M10.

Default by Segment – R$ MM

12/19

Funding balances increased 1.2% from the previous quarter to reach R$ 1.9 million, out of which

83% of total funding in reais and 17% in foreign currency.

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09

Total Deposits 1.471.2 1.373.3 1.215.9 7.1% 21.0%

Time Deposits (CDB) 753.1 749.2 592.4 0.5% 27.1%

Time Deposits with Special Guarantee (DPGE)* 543.1 525.4 500.3 3.4% 8.5%

Agribusiness Letters of Credit (ALC) 69.6 16.2 9.0 330.0% 670.4%

Interbank Deposits 67.7 45.7 65.3 48.2% 3.7%

Demand Deposits and Other 37.7 36.8 48.8 2.4% -22.8%

Domestic Onlending 108.0 93.1 182.9 16.0% -41.0%

Foreign Borrowings 323.5 414.2 333.2 -21.9% -2.9%

Trade Finance 286.0 304.4 219.9 -6.0% 30.1%

IFC A/B Loan 37.5 109.8 113.3 -65.9% -66.9%

TOTAL 1.902.7 1.880.6 1.732.0 1.2% 9.9%

* Time Deposits bearing the Guarantee of the Credit Insurance Fund

Funding in reais mainly consists of deposits, which account for 77% of total funding, mainly through

the issue of Bank Deposit Certificates (CDBs) (39.6%) and Time Deposits with Special Guarantee

(DPGE) (28.5%). The average term for deposits was 757 days from issue and 526 days as of the

closing of the quarter, as follows:

Type of Deposit Average term from issuance Average term to maturity

CDB 551 361

Interbank 160 74

DPGE 1.186 853

LCA 184 167

Portfolio of Deposits 757 526

Deposits

By Type By Investor By Maturity

Time Deposits (CDBs)51%

Time Deposits

(DPGEs)37%

Interbank4%

ALC5%

Demand3%

Financial Inst. 6%

Enterprises 23%

Individuals 17%

Other3%

Institutional

51%

181 to 360 21%

91 to 180 7%

+360 days 45%

up to 90 days27%

The share of foreign borrowings in total funding declined to 17%, due both to the appreciation of

the real and the payment of the principal amount of the B Loan from the IFC in the amount of US$

32.4 million and Euro 7.1 million, totaling R$ 72.0 million on September 27, 2010. As announced,

this operation is fully hedged against variations in foreign currency and interest rates since its

disbursement in October 2008. Note that the funds raised through Trade Finance lines from foreign

correspondent banks is offset by the Trade Finance loan portfolio, which has grown in U.S. dollar

terms, as explained in the section on Trade Finance.

Total Funding – R$ MM

Funding

13/19

Free Cash – R$ MM Assets and Liabilities Management (GAPS) – R$ MM

On September 30, 2010, Cash totaled R$ 1,458.5 million and, excluding Money Market Funding (R$ 739.0 million) and Derivatives (R$ 39.8 million), resulted in free cash of R$ 679.7 million, equivalent to 46% of total deposits and 157% of shareholders’ equity, demonstrating a healthy liquidity to meet the obligations and the loan portfolio growth.

Assets and liabilities are managed in order to guarantee a comfortable level of liquidity and stability

to the Bank, with a longer profile of liabilities, considering that the current maturity profile of the

loan portfolio is concentrated in operations maturing in up to 360 days (70%).

The Basel Accord requires banks to maintain a minimum percentage of capital weighted by the risk in

their operations. The Central Bank of Brazil has stipulated that banks operating in the country should

maintain a minimum percentage of 11.0%, calculated according to the Basel Accord regulations,

which provides greater security to Brazil’s financial system against oscillations in economic conditions.

The following table shows Banco Indusval Multistock position in relation to the minimum capital

requirements of the Central Bank:

3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09

Total Capital 432.4 429.7 439.3 0.6% -1.6%

Required Capital 238.6 232.5 223.4 2.6% 6.8%

Margin over Required Capital 193.8 197.1 215.9 -1.7% -10.3%

Basel Index 19.9% 20.3% 21.6% -0.4 p.p. -1.7 p.p.

Agency Ratings Observation Last Report Financial

Date as of

Standard & Poors

B+ / Positive / B

B+ / Positive / B

brBBB+/ Positive /brA-3

Global Scale: Foreign Currency

Global Scale: Local Currency

Local Scale - Brazil

Nov. 03. 2009 June 30. 2009

FitchRatings BBB/ Stable/ F3 National Scale - Brazil Aug 19. 2010 June 30. 2010

RiskBank 10.50

Ranking: 41

RiskBank Index

Low risk for Short Term Oct. 14. 2010 June 30. 2010

Capital Adequacy

Liquidity

Risk Ratings

Capital Adequacy– R$ MM

679.7695.5707.1

3Q09 2Q10 3Q10

645,3

339,6238,5

536,3552,7

227,9

372,0

729,9

90 180 360 > 360 days

Assets Liabilities

14/19

Total Shares

On September 30, 2010, Banco Indusval S.A. had a total of 41,212,984 shares, of which

27,000,000 were common shares (IDVL3) and 14,212,984 were preferred shares (IDVL4).

The cancellation, with no capital reduction, of 1,262,117 preferred shares held in treasury until

August 10, 2010, when it was approved by the Board of Directors, will be submitted to the

Extraordinary Shareholders’ Meeting to be held on November 18, 2010, together with the proposal

to amend the lead paragraph of article 5 of the Company’s Bylaws to reflect said cancellation.

Share Buyback Program

The 4th Share Buyback Program for the acquisition of up to 1,301.536 preferred shares, approved

by the Board of Directors on August 10, 2010, is effective till August 9, 2011. Indusval S.A. CTVM is

the intermediary for this program, through which a total of 700,598 preferred shares (IDVL4) had

been acquired till October 30, 2010.

Free Float

Number of Shares as of Oct. 30. 2010

Type Paid-up Capital Controlling Group Management Treasury Free Float (%)

Common 27,000,000 (17,116,173) (2,574,369) - 7,309,458 27.1%

Preferred 14,212,984 (1,026,653) (159,570) (674,998) 12,351,763 86.9%

Total 41,212,984 (18,142,826) (2,733,939) (674,998) 19,661,221 47.7%

The 7,309,458 outstanding common shares are owned by the Ribeiro and Ciampolini families, who

are not the controlling shareholders. Thus, the preferred shares regularly traded on the stock

exchange total 12,340,369, equivalent to 29.9% of the total capital.

Stock Option Plan

Following is the position of the Stock Option Plan of Banco Indusval S.A., created on March 26,

2008, with the aim of aligning the interests of executive officers and managers:

Quantities

Date Granted

Grace Period Term for Exercise

Strike Price R$

Granted Exercised Rights Expired

Not Exercised

07.22.08 Three years Five years 10.07 161,869 - - 161,869

02.10.09 Three years Five years 5.06 229,067 25,600 10 203,457

02.22.10 Three years Five years 8.56 525,585 - 10,814 514,771

08.06.10 Three years Five years 7.72 261,960 - - 261,960

1,178,481 25,600 10,824 1,142,057

In the quarter, 25,600 options were exercised and 10,824 options were written off as their rights

had expired, resulting in 1,142,057 options for preferred shares to be exercised under the plan.

Capital Market

15/19

Shareholder Remuneration

On September 30, 2010, the Bank paid Interest on Equity in the amount of R$ 6.3 million related to

3Q10, as advance payment of the minimum mandatory dividend for 2010. This amount corresponds

to R$ 0.15341 per share or R$ 0.13040 net of withholding income tax.

In 9M10, total shareholder remuneration paid as advance payment of the minimum mandatory

dividend for 2010 was R$ 18.9 million, corresponding to R$ 0.45544 per share or R$ 0.38712 net of

withholding income tax.

Shares Performance

The shares of Banco Indusval Multistock (IDVL4) closed 3Q10 at R$ 8.00, for market cap of R$

329.7 million and Shareholders’ Equity of R$ 432.4 million, resulting in a Market Value/ Book Value

ratio of 0.76. The price of IDVL4 shares appreciated by 4.58% in 3Q10, while depreciating by

3.50% in nine months and 17.27% in 12 months. In the same periods, the Ibovespa index

appreciated by 13.94%, 1.23% and 12.86%, respectively.

On November 11, 2010, IDVL4 shares were traded at R$ 8.00, with a drop of 3.50% year to date

and 2.91% in 12 months. However, after adjusting for earnings, the share appreciation was 2.17%

year to date and 4.85% in 12 months.

Base 100 em 31.12.2009

80

85

90

95

100

105

110

115

30/12

/200

9

08/01

/201

0

17/01

/201

0

26/01

/201

0

04/02

/201

0

13/02

/201

0

22/02

/201

0

03/03

/201

0

12/03

/201

0

21/03

/201

0

30/03

/201

0

08/04

/201

0

17/04

/201

0

26/04

/201

0

05/05

/201

0

14/05

/201

0

23/05

/201

0

01/06

/201

0

10/06

/201

0

19/06

/201

0

28/06

/201

0

07/07

/201

0

16/07

/201

0

25/07

/201

0

03/08

/201

0

12/08

/201

0

21/08

/201

0

30/08

/201

0

08/09

/201

0

17/09

/201

0

26/09

/201

0

05/10

/201

0

14/10

/201

0

23/10

/201

0

01/11

/201

0

10/11

/201

0

IBOVESPA IDVL4 IDVL4 earnings adjusted

2.900 2.791 2.3226.039 6.817 6.258

2.900 2.730 2.320

6.5506.876

6.289

3.000 2.426 5.134

6.5126.622

6.319

2.6462.220

6.082

6.3696.693

2005 2006 2007 2008 2009 2010

1Q 2Q 3Q 4Q

11,44610,167

15,858

25,470

R$

MM

27,008

18,866

2.900 2.791 2.3226.039 6.817 6.258

2.900 2.730 2.320

6.5506.876

6.289

3.000 2.426 5.134

6.5126.622

6.319

2.6462.220

6.082

6.3696.693

2005 2006 2007 2008 2009 2010

1Q 2Q 3Q 4Q

11,44610,167

15,858

25,470

R$

MM

27,008

18,866

16/19

The 3rd Most Sustainable Midsized Bank in Latin America

Liquidity and Trading Volume

The preferred shares of Banco Indusval Multistock (IDVL4) were traded in 97% of the sessions in

3Q10 and 99% in the last 12 months. In 3Q10, a total of 3.2 million IDVL4 shares were traded over

880 transactions on the spot market, for total volume of R$ 25.7 million. In the past 12 months, the

volume traded on the spot market was R$ 104.1 million, representing approximately 12.7 million

preferred shares over 9,720 trades.

Shareholding Dispersion

Distribution of Preferred Shares by type of investor:

10.30.2010 06.30.2010

TYPE OF INVESTOR # Inv.

Preferred % PN %

Total # Inv.

Preferred % PN %

Total

Controlling Shareholders 4 1,026,653 7.2% 44.0% 4 1,038,047 6.7% 42.7%

Management 10 159,570 1.1% 6.6% 10 159,570 1.0% 6.4%

Family Members 12 515,931 3.6% 17.6% 12 749,231 4.8% 19.0%

Brazilian Inst. Inv. 85 7,209,367 50.7% 17.6% 86 6,244,388 40.4% 19.0%

Foreign Investors 12 3,047,225 21.5% 7.4% 10 4,386,425 28.3% 14.7%

Brazilian Corporates 8 42,800 0.3% 0.1% 13 140,000 0.9% 10.3%

Individuals 544 1,536,440 10.8% 3.7% 608 1,661,396 10.7% 0.3%

Treasury - 674,998 4.8% 1.6% - 1,096,044 7.1% 3.9%

TOTAL 675 14,212,984 100% 100% 743 15,475,101 100% 100%

According to an independent evaluation by the Spanish consultancy firm Management & Excellence

(M&E) in partnership with Latin Finance, Banco Indusval Multistock ranked 3rd in the 6th edition of

the “Most Sustainable Midsized Banks in Latin America - 2010” survey.

The 2010 edition assessed 152 criteria, including corporate governance,

sustainability and corporate social responsibility. In corporate governance,

M&E evaluated the policies on ethics, client relations, compliance with

Basel principles, information disclosure policies and practices, as well as

governance structure and practices. In sustainability, the survey

evaluated risk management, environmental processes and investor

relations. In the area of social responsibility, M&E evaluated the measures

taken in the human resources area with regard to training, benefits policy,

the health system, working conditions, and participation in community

development programs, among others.

Acknowledgement

17/19

Consolidated R$ '000

Assets 2009/09/30 2010/06/30 2010/09/30

Current 2,354,927 2,531,006 2,683,574

Cash 4,798 6,151 9,518

Short-term interbank investments 344,654 347,061 44,526 Open market investments 274,794 287,002 17,500

Interbank deposits 69,860 60,059 27,026

Securities and derivative financial instruments 903,499 934,809 1,399,765 Own portfolio 545,918 491,500 532,614

Subject to repurchase agreements 300,490 300,412 726,223

Linked to guarantees 34,081 111,767 105,751

Derivative financial instruments 23,010 31,130 35,177

Interbank accounts 3,126 3,415 3,504 Payment and receipts pending settlement 1,809 2,334 2,417

Restricted credits - Deposits with the Brazilian Central Bank 1,317 1,081 1,087

Loans 793,830 828,346 833,693 Loans - private sector 786,714 840,325 844,624

Loans - public sector 24,912 17,828 13,660

(-) Allowance for loan losses (17,796) (29,807) (24,591)

Other receivables 273,452 372,762 358,454 Foreign exchange portfolio 257,095 370,408 318,393

Income receivables 131 77 73

Negotiation and intermediation of securities 7,061 5,493 41,014

Sundry 12,855 4,710 6,065


Other assets 31,568 38,462 34,114 Other assets 31,729 39,686 35,013

(-) Provision for losses (865) (2,006) (1,908)

Prepaid expenses 704 782 1,009

Long term 488,961 499,939 533,553

Marketable securities and derivative financial inst ruments 372 3,019 4,697

Linked to guarantees 33 37 30

Derivative financial instruments 339 2,982 4,667

Interbank Accounts 10,977 9,647 8,557 Pledged Deposits - Caixa Economica Federal 10,977 9,647 8,557

Loans 415,430 411,581 447,191

Loans - private sector 499,948 481,641 527,627

Loans - public sector 13,422 - -


Other receivables 60,686 74,456 72,007 Trading and Intermediation of Securities 84 162

Sundry 74,227 74,404 71,910 (-) Allowance for loan losses (13,541) (32) (65)

Other rights 1,496 1,236 1,101 Prepaid Expenses 1,496 1,236 1,101

Permanent 12,715 12,849 13,042

Investments 1,686 1,686 1,686 Other investments 1,686 1,686 1,686

Property and equipment 11,029 11,163 11,356 Property and equipment in use 2,173 2,179 2,192

Revaluation of property in use 3,538 3,538 3,538

Other property and equipment 11,727 12,014 12,073

(-) Accumulated depreciation (6,409) (6,568) (6,729)

Leasehold Improvements - 282

TOTAL ASSETS 2,856,603 3,043,794 3,230,169

BALANCE SHEET

18/19


Liabilities 2009/09/30 2010/06/30 2010/09/30

Current 1700408 1,897,737 2,073,562

Deposits 702026 723,279 775,912 Cash deposits 43,233 36,248 37,045 Interbank deposits 65,278 45,737 67,722 Time deposits 587,922 640,755 670,508 Other 5,593 539 637

Funds obtained in the open market 522826 561,458 738,999

Own portfolio 300,255 299,456 722,696 Third party portfolio 222,571 262,002 16,303

Funds from securities issued or accepted 7188 16,193 69,627

Agribusiness Letter of Credit 7,188 16,193 69,627

Interbank accounts 485 683 661

Receipts and payment pending settlement 485 683 661

Interdepartamental accounts 16448 12,066 9,715

Third party funds in transit 16,448 12,066 9,715

Borrowings 219621 395,215 305,021

Domestic Borrowings - - - Foreign borrowings 219,621 395,215 305,021

Onlendings 115414 36,270 34,599

BNDES 72,254 13,973 10,737 FINAME 21,646 22,297 23,862

Other liabilities 116400 152,573 139,028

Social and statutory liabilities 1,241 4,199 2,501 Taxes and similar charges 573 357 902 Foreign exchange portfolio 30,938 56,141 35,255 Taxes and social security contributions 23,258 3,489 3,226 Negotiation and intermediation securities 32,586 32,644 56,587 Derivative financial instruments 19,357 48,876 32,667 Sundry 8,447 6,867 7,890

Long Term 717812 715,878 723,485

Deposits 504805 633,872 625,666 - Time deposits 504,805 633,872 625,666

Funds from securities issued or accepted 1850 - -

Agribusiness Letter of Credit 1,850 - -

Loan obligations 113598 18,972 18,474 Foreign loans 113,598 18,972 18,474

Onlending operations - Governmental Bureaus 67527 56,791 73,369

Federal Treasure 17,485 15,032

BNDES 10,900 1,639 18,800 FINAME 49,262 34,316 36,712 Other Institutions 7,365 3,351 2,825

Other liabilities 30032 6,243 5,976

Taxes and social security contributions 13,422 5,917 5,794 Derivative financial instrument 16,605 144 - Sundry 5 182 182

Future results 260 501 719

Shareholders' Equity 438123 429,678 432,403 Capital 370,983 370,983 370,983 Capital Reserve 620 1,375 1,893 Revaluation reserve 2,012 1,961 1,945 Profit reserve 64,448 65,313 56,150 Asset valuation Adjustment 60 (944) 2,321 (-) Treasury stock - (9,010) (889)

TOTAL LIABILITIES 2,856,603 3,043,794 3,230,169

19/19


3T09 2T10 3T10 9M09 9M10Income from Financial Intermediation 94,267 110,359 123,445 314,269 348,190

Loan operations 58,444 65,630 71,994 203,689 198,777

Income from securities 29,055 18,905 44,898 76,483 88,075

Income from derivative financial instruments - 6,750 - - 8,388

Income from foreign exchange transactions 6,768 19,074 6,553 34,097 52,950 -

Expenses from Financial Intermediaton 87,869 77,300 84,364 247,350 240,831 Money market funding 40,767 45,959 55,214 104,822 139,965

Loans, assignments and onlendings 4,474 18,679 8,107 16,631 55,709

Income from derivative financial instruments 7,633 - 9,660 31,029 9,660

Allowance for loan losses 34,995 12,662 11,383 94,868 35,497

Gross Profit from Financial Instruments 6,398 33,059 39,081 66,919 107,359 -

Other Operating Income (Expense) (22,512) (20,925) (26,523) (70,019) (71,877)Income from services rendered 2,583 2,646 3,236 8,692 8,713

Income from tariffs 201 250 272 521 717

Personnel expenses (12,530) (14,333) (14,023) (37,489) (40,778)

Other administrative expenses (9,453) (8,949) (9,861) (32,544) (28,141)

Taxes (2,340) (2,580) (5,317) (8,762) (11,085)

Other operating income 420 2,548 1,495 1,687 5,033

Other operating expense (1,393) (507) (2,325) (2,124) (6,336) -

Operating Profit (16,114) 12,134 12,558 (3,100) 35,482 -

Non-Operating Profit 629 (815) (9) 7,864 (840)

Earnings before taxes ad profit-sharing (15,485) 11,319 12,549 4,764 34,642

Income tax and social contribution 9,028 (1,185) (2,410) 7,405 (4,542)Income tax (884) (75) 200 (15,054) 287

Social contribution (534) (45) 120 (9,030) 172

Deferred fiscal assets 10,446 (1,065) (2,730) 31,489 (5,001)

Contributions and Equity (1,335) (1,871) (2,631) (3,836) (6,984)

Net Profit for the Period (7,792) 8,263 7,508 8,333 23,116

INCOME STATEMENT

Earnings Release Report 3Q10

Investor Relations

Transcript of Earnings Release Report 3Q10