Institutional Presentation 3Q16 - BB · Institutional Presentation 3Q16 . Disclaimer This...

Institutional Presentation

3Q16

Disclaimer

This presentation may include references and statements, planned

synergies, estimates, projections of results, and future strategy for Banco

do Brasil, its Associated and Affiliated Companies, and Subsidiaries.

Although these references and statements reflect the management’s

belief, they also involve estimates and unforeseen risks. Consequently,

results may differ from 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 updating any

estimate in this presentation.

Agenda

Company Profile 1

Banking Industry

2

Earnings Highlights 3

Macroeconomic Information 4

Company Profile

1

5

Founded in 1808

54.4%1 controlled by the Federal Government

Largest Bank in Latin America in total assets

Acess to a broad spectrum of clients

5

1st company listed on the stock exchange in Brazil

(1) As of Sep/2016.

6

Large, diversified and stable funding base

Business diversification including:

Banking Services

Asset Management

Means of Payment

International Franchise

6

Insurance

Capital Market

7

1. Market Leadership

2. Solid Financial Performance

3. Focus on Services

4. Lowest deliquency of the Brazilian

Banking Industry

5. Stable and Diversified Funding

200(+) years of solid performance

Investment Highlights

8

Timeline / Governance

BB Shares enter the ISE portfolio

2005

Follow on (primary shares)

2010

Conversion of preferred shares to commom shares

2001 Private offering of subscription bonus

2004

ADR 1 Launching

2009

100% Tag Along clause

2002

BB Shares enter the ITAG portfolio

2003

Follow on (secondary shares)

2007

Banco do Brasil joined “Novo Mercado” (BOVESPA)

2006

BB Shares enter the IBRX-50 portfolio

1998

BB Shares enter the IBrX portfolio

1995

Capitalization and Restructuring Plan

1996

The Board of Directors of BB approved the migration of its program of American Depositary Receipt-ADR from level I to level II

2014

BB Seguridade IPO

2013

BB Shares enter Dow Jones Sustainability Index (DJSI) of NY stock exchange

2012

8

1st company listed on the stock exchange in Brazil

1906

9

Ownership Structure

Free Float 45.6% as of Sep/2016 Free Float Breakdown (%)

Shares owned by

the company

2.8%

National Treasury

54.4%

Foreign Investors

20.4%

Others 22.4%

21.6 21.1 19.9 19.8 20.4

18.1 18.6 22.2 23.0 22.4

39.8 39.8 42.1 42.8 42.8

Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Foreign Investors Other

10

Global Presence 10

Banco do Brasil in the world

Presence in 24 countries with 41 points of service

Branches

Sub-branches

Representative Offices

Subsidiaries and affiliates

Shared Services Units

11

4

7

17

2

11

Presence in Brazil

NORTH

27.0% NORTHEAST

30.5%

SOUTHEAST

19.7%

SOUTH

23.9%

MIDWEST

26.0%

Structural data (Sep/16)

Points of services1

17,092

Branches

5,430

Clients

64,607mil

Employees

109,159 (1) Own Service Network

Own Service Network

Branches

MaisBB Network¹

Shared Service Network2

17,092

5,430

13,676

36,004

Total 66,772

(1) Banking Agents and Postal Bank branches.

Market Share – 23.1%

(Number of branches)

Brazil Total Service Network Sep/16

(2) Shared Service Network: lotteries (CEF), Banco 24h

e ATM (BRB+CEF).

Our more than 64 million clients count on more than 66 thousand points of service, present in 99.7% of the Brazilian municipalities and an increasingly digital Bank.

12

12

The Banco do Brasil App is 5th main App in

Brazilian’s everyday life.¹

(1) Source: eMarketer – Sep/2016. *NPS – Net Promoter Score

Digital Experience

Innovation

1. WhatsApp

2. Facebook

3. Google

4. Instagram

5. Banco do Brasil

Ourocardo ELO NOW International

Acceptance at Discover and Diners

networks.

Available in more than 39 millions

places in 185 countries.

1.7 million ATM´s for withdrawals

abroad

Profitability increase in about 20% to 44%.

35% of efficiency growth.

Estilo customers satisfaction and loyalty (NPS)* is 16% higher.

BB Estilo Digital e BB Exclusivo

Clients Sep/16

Estilo Digital – 1.1 milion

Estilo – 200 thousand

Personalizado – 2,948 thousand

Exclusivo – 152 thousand

Estimated

2016

Estilo /

Estilo Digital/

Personalizado /

Exclusivo

5 million

13

13

Automated Service Channels - Transactions BB Digital – Mobile (million transactions)

1,870

2,786

Ourocard APP

Cards Block/Unblock function

Expenses in Timeline format

Function New at the Market – Allows

questioning unrecognized purchases

“Tap and pay” – payment agility

Authorization for abroad usage

Ourocard-e

+250 thousand virtual cards, 108%

growth compared to 2Q15

1.2 million transactions since launch

in Aug/14

R$160 million total turnover in the

last 12 months

(1) Owned by BB.

3Q15

3Q16

Sep/16 Internet

26.9%

Mobile

40.3%

ATM¹

16.7%

In Branches

2.0%

Others

14.1% +49.0%

Innovation

14

Customer Segmentation

Individuals Companies

14

Private > R$ 2mm

Estilo / Estilo Digital > R$ 8k

Personalizado / Exclusivo¹ > R$ 4k < R$ 8k

Mercado Emergente < R$ 1.5k

Varejo > R$ 1.5k < R$ 4k

> R$ 1.5bn > R$ 2bn Large Corporate

> R$ 400mm < R$ 1.5bn

> R$ 600mm < R$ 2bn

Corporate

> R$ 120mm < R$ 400mm

> R$ 200mm < R$ 600mm

Empresarial Upper Middle

> R$ 25mm < R$ 120mm

> R$ 25mm < R$ 200mm

Empresarial Middle

> R$ 5mm < R$ 25mm Empresa

> R$ 1mm < R$ 5mm Pequena Empresa

< R$ 1mm Microempresa

Industry Services

(1) Digital service only.

15

Assets and Market Share

(1) Source: Central Bank of Brazil (*) Sep/2016

1,448.2

Available Funds, Short-Term

Interbank Investments, Interbank and

Intrabank Accounts

Securities and Financial Derivatives

R$ Billion

Loans

Permanent Assets

Other

1,402.0 1,401.1 1,404.9 1,445.1 1,448.2

20.1 20.2 20.3 20.7 20.7*


Assets Market Share¹ (%)

2.2%

13.5%

8.7%

35.4%

40.2%

Part. % Sep/16

16

355.2 364.6 348.5 327.6 316.8

179.7 183.3 185.9 187.9 186.2

171.8 174.9 179.5 184.5 179.6

81.7 73.8 61.7 51.2 51.5

788.4 796.7 775.6

751.2 734.0

20.3 20.4 20.6 20.6 20.2


Corporates Individuals Agribusiness Offshore Market Share² - %

Loan Portfolio – Broad Concept¹

(1) It includes private securities and guarantees provided. (2) It considers the classified loan portfolio.

R$ Billion

10.4%

21.8%

22.8%

45.1%

7.0%

24.5%

25.4%

43.2%

4.5% on Sep/16

3.6% on Sep/16

17

17

Sep/15 Jun/16 Sep/16

Balance Provision Share %



AA 397,204 - 55.9 341,937 - 49.6 328,572 - 49.0

A 117,209 586 16.5 132,192 661 19.2 129,040 645 19.2

B 126,287 1,263 17.8 120,082 1,201 17.4 116,194 1,162 17.3

C 29,421 883 4.1 39,567 1,187 5.7 38,678 1,160 5.8

D 5,491 549 0.8 8,465 847 1.2 9,311 931 1.4

E 10,255 3,076 1.4 15,443 4,633 2.2 16,845 5,054 2.5

F 3,758 1,879 0.5 5,161 2,580 0.7 5,535 2,767 0.8

G 3,340 2,338 0.5 4,537 3,176 0.7 4,186 2,930 0.6

H 17,646 17,646 2.5 22,684 22,684 3.3 22,864 22,864 3.4

Total 710,612 28,220 100.0 690,067 36,968 100.0 671,225 37,514 100.0

AA-C 670,122 2,732 94.3 633,778 3,049 91.8 612,484 2,967 91.2

D-H 40,490 25,489 5.7 56,289 33,919 8.2 58,741 34,546 8.8

Total Loan Portfolio - Risk Level¹

R$ Million

(1) BB Classified Loan Portfolio.

18


Payroll 61,758 62,959 62,838

Mortgage 35,188 39,706 41,157

Salary Loans 19,425 20,482 20,348

Auto Loans 8,842 7,333 6,799

Credit Cards 21,537 22,906 22,844

Consumer Finance 6,888 7,392 7,010

Overdraft 2,564 2,775 2,830

Renegociated 4,427 6,876 7,236

Microcredit 839 700 757

Other 1,180 926 798

TOTAL 162,648 172,054 172,617

77.0% 75.8% 76.0%

Loans to Individuals¹

R$ Million

(1) It considers the organic loan portfolio.

19

35.2 39.7 41.2

11.7 11.9 11.9 46.9 51.6 53.1

1.17 1.29 1.42


Mortgages withCompanies

Mortgages withIndividuals

Mortgage NPL +90days (%)

Salary Loans Auto Loans

Mortgages Payroll²

Growth in lower risk lines¹

88.9% 88.6% 88.5%

7.5% 8.3% 8.6% 3.6% 3.2% 3.1%

61.8 63.0 62.8

1.31 1.25 1.30


Private SectorEmployees

INSS Retirees andPensioners

Civil Servants

Payroll NPL +90 days(%)¹

19.4 20.5 20.3

2.28 2.52 2.42


Total

Salary Loans NPL +90days (%)

23.1 21.5 18.9

0.82 0.95 1.03


Auto Loans

Auto Loans NPL +90days (%)

(1) Classified Loan Portfolio (2) Organic Loan Portfolio

+4.8%

+3.1%

-18.3%

R$ Billion

+13.2%

20

Relationship

Individuals Portfolio¹ Individuals Portfolio Profile²

66.6% 68.2% 68.8%

20.9% 19.9% 19.7%

7.9% 8.0% 8.1%

4.6% 3.9% 3.4%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

79.2% 79.4% 79.6%

13.6% 12.9% 12.5%

7.2% 7.7% 7.8%


Direct Consumer Credit + Auto Loans

Civil Servants

Private Sector Employees

INSS Retirees and Pensioners

(1) Classified Loan Portfolio (2) Organic Loan Portfolio

21

180.5 160.6 152.6

104.7 99.8 100.3

26.1 15.2 14.0 18.1 19.1 16.9

25.8 32.8 33.0

355.2 327.6 316.8


Working Capital² Investments + Private Securities Guarantees Trade Finance³ Other

(1) It includes private securities and guarantees provided. (2) It includes Working Capital, Receivables, Credit Card and Overdraft Account. (3) It Includes FEC/ACE and BNDES Exim. (4) Companies with annual revenues up to R$ 25 million.

Corporate Portfolio by Size

-5.4%

-8.2% on Sep/16

-18.3% on Sep/16

Loans to Companies – Broad Concept¹

R$ Billion

263.6 246.4 241.9

91.6 81.2 74.9

355.2 327.6 316.8


Middle Market, Corporate and Government⁴ Very Small and Small Companies

22

Relationship Amount Distribution by Time of

Company Foundation – Very Small

and Small Companies Portfolio (R$ bn)

(1) BB Classified Loan Portfolio - Companies with annual revenues up to R$ 25 million.

Total

Amount

R$74.9bn

42.0% 44.8% 46.3%

34.0% 34.3% 34.7%

20.1% 18.5% 18.5%

3.9% 2.4% 1.8%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

1.4

12.8

26.0 25.9

8.8

Up to 2years

From 2 to5 years

From 5 to10 years

From 10to 20years

More than20 years

Very Small and Small Companies Portfolio¹

23

Carteira PJ por setor

Sep/15 Share % Jun/16 Share % Sep/16 Share %

Oil and Gas 49,270 10.4% 42,595 10.1% 43,618 10.7%

Government 40,526 8.6% 37,997 9.0% 38,647 9.5%

Mining and Metallurgy 43,723 9.3% 38,732 9.2% 37,618 9.2%

Eletricity 40,122 8.5% 38,274 9.1% 37,250 9.1%

Foodstuffs of Vegetable Origin 37,302 7.9% 33,532 8.0% 30,974 7.6%

Transportation 34,225 7.2% 27,080 6.4% 27,520 6.8%

Automotive 28,408 6.0% 23,041 5.5% 20,403 5.0%

Services 25,226 5.3% 21,525 5.1% 19,978 4.9%

Real Estate Agents 21,122 4.5% 20,778 4.9% 20,399 5.0%

Retail Trade 19,384 4.1% 17,194 4.1% 16,173 4.0%

Specific Activities of Construction 15,271 3.2% 13,821 3.3% 13,191 3.2%

Foodstuffs of Animal Origin 14,519 3.1% 16,427 3.9% 15,829 3.9%

Financials Institutions 13,328 2.8% 16,439 3.9% 16,066 3.9%

Textile and Clothing 12,378 2.6% 10,116 2.4% 9,247 2.3%

Agricultural Inputs 11,076 2.3% 10,191 2.4% 9,033 2.2%

Pulp and Paper 10,945 2.3% 8,765 2.1% 8,403 2.1%

Electrical and Electronic Goods 10,074 2.1% 8,048 1.9% 7,529 1.8%

Chemicals 9,686 2.1% 7,065 1.7% 6,306 1.5%

Heavy Construction 8,817 1.9% 7,067 1.7% 7,207 1.8%

Telecommunication 7,844 1.7% 5,894 1.4% 5,964 1.5%

Wholesale and Various Industries 6,930 1.5% 6,945 1.6% 6,188 1.5%

Woodworking and Furniture 6,685 1.4% 5,576 1.3% 5,904 1.4%

Leather and Shoes 3,102 0.7% 2,631 0.6% 2,415 0.6%

Beverages 1,812 0.4% 1,598 0.4% 1,395 0.3%

Other Activities 414 0.1% 45 0.0% 19 0.0%

Total 472,189 100.0% 421,374 100.0% 407,275 100.0%

Companies Portfolio by Macro-sector¹

(1) Included Companies and Agro Companies Portfolio.

R$ Million

24

4.5% growth in the past 12 months

60.9%* of the total Rural Credit is at Banco do Brasil

24.5% of Banco do Brasil Credit Portfolio**

Agribusiness

Portfolio

R$179.6Billion

24

The Agribusiness Bank in Brazil

*As of Sep/16 **It considers Agribusiness Broad Concept Portfolio

25

Insured

79.4%

Not Insured

20.6%

The total disbursement in 16/17 harvest until September, added

to pre working capital for input purchase of the first half of 2016,

reached R$25.9 billion, a 22.2% growth compared to 15/16

harvest disbursement in the same period (R$21.2 billion).

Agribusiness

Agribusiness Loan Portfolio by Costumer Type¹

(1) It includes Rural Product Bills and guarantees provided. (2) Source: Central Bank of Brazil – Sep/16.

Harvest 16/17 (Sep/16)

Use of Mitigators (Working Capital for Input Purchase)

134.7 138.5 143.9 152.6 149.1

37.1 36.4 35.6 31.9 30.5

171.8 174.9 179.5 184.5 179.6

60.5 60.9 61.2 62.0 60.9


Rural Agroindustry Market Share - %

1st 60.9 % Market Share²

+4.5%

26

The Brazilian Foreign Trade Bank

Operating abroad for over 50 years,

Banco do Brasil has supported Brazil's

relations with its trading partners, being

a reference point for entrepreneurs,

investors, economic agents and

foreign governments that maintain or

wish to maintain investments in Brazil.

26

2,187 2,276

1,354

27.0

24.2

20.2

3Q15 2Q16 3Q16

Contracted Amount (US$ million) Market share (%)

FEC/ACE

27

R$ Million Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Commercial Funding¹ 641,603 639,193 660,175 669,506 638,611 624,778 619,944

Domestic Onlending 90,686 90,032 90,543 90,065 88,082 86,603 85,078

Subordinated Debt 54,956 56,260 59,951 59,936 58,049 58,648 60,027

Foreign Borrowing² 65,662 67,034 86,931 74,696 58,463 50,911 52,578

Hybrid Capital Instuments 33,854 32,604 40,082 37,342 34,806 31,068 31,825

Financial and Development Funds 12,265 12,404 14,675 15,003 14,781 13,741 14,620

Commercial Paper ³ 2,630 2,735 65 2,117 2,309 2,393 2,673

Compulsory Deposits -56,613 -57,168 -60,362 -60,811 -62,613 -65,404 -63,637

Sources 845,042 843,093 892,059 887,854 832,489 802,737 803,107

Sources

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments abroad.

(3) Includes Letters of Credit and Debentures.

28

Sources


Foreign Securities 31,167 34,773 44,085 33,500 22,885 18,631 20,274

Foreign Borrowing 25,133 23,074 31,236 29,617 25,178 22,763 22,812

Foreign Onlending 0 0 9 10 0 0 0

Subordinated Debt Abroad 9,361 9,186 11,600 11,569 10,400 9,517 9,491

Foreing 65,662 67,034 86,931 74,696 58,463 50,911 52,578


Saving Deposits 144,089 147,306 149,764 151,845 151,919 148,368 148,681

Agribusiness Letters of Credits 118,263 132,372 134,555 134,823 135,420 135,418 133,098

Judicial Deposits 118,591 116,805 116,107 113,652 114,140 116,655 119,281

Time Deposits 93,304 82,126 89,068 90,890 88,463 85,834 84,199

Demand Deposits 73,705 64,755 66,063 66,550 62,631 62,550 61,623

Rep. Agreement with Private Securities¹ 37,848 43,965 44,678 52,142 30,471 30,415 31,621

Interbank Deposits 36,736 33,337 41,465 41,483 36,885 27,473 23,919

Mortgage Bonds² 19,067 18,526 18,474 18,121 18,681 18,066 17,521

Commercial Funding 641,603 639,193 660,175 669,506 638,611 624,778 619,944

Commercial Funding

Foreign

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and abroad.

29

Emissões no Exterior

Bonds Issued Abroad

Issue Date Volume (US$

million) Currency Term in Years Maturity Coupon (%) Structure

Rating (S&P / Moody´s/Fitch)

07/18/2007 187 BRL 10 07/18/2017 9.750 GMTN SR / Ba2 / SR

04/29/2008 150 USD 10 06/15/2018 5.250 MT100 BBB / Ba1 / SR

10/20/2009 1,500 USD Perpetual Perpetual 8.500 Perpetual SR / B2 / SR

01/22/2010 500 USD 10 01/22/2020 6.000 GMTN BB / Ba2 / BB

10/05/2010 660 USD 10 01/15/2021 5.375 Subordinated SR / Ba3 / SR

05/26/2011 1,500 USD 10 01/26/2022 5.875 Subordinated SR / Ba3 / SR

11/23/2011 500 USD 5 01/23/2017 3.875 3(a)2 SR / Ba2 / SR

01/20/2012 1,000 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

03/05/2012 750 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

06/19/2012 750 USD 10 01/19/2023 5.875 Subordinated B / Ba3 / SR

10/10/2012 1,925 USD 10 10/10/2022 3.875 3(a)2 BB / Ba2 / BB

01/31/2013 2,000 USD Perpetual Perpetual 6.250 Perpetual B- / SR / SR

07/25/2013 930 EUR 5 07/25/2018 3.750 GMTN BB / Ba2 / BB

12/20/2013 307 CHF 5.5 06/20/2019 2.500 GMTN BB / Ba2 / BB

03/26/2014 417 EUR 5 07/25/2018 3.750 GMTN BB / Ba2 / BB+

06/18/2014 2,500 USD Perpetual Perpetual 9.000 Perpetual B- / B2 / SR

Foreign Borrowing

30


Available Funds 142,744 137,926 168,678 154,936 118,235 107,819 124,155

Net Loan Portfolio (a) = (b) + (c) + (d) 702,298 705,167 723,381 732,918 714,254 694,918 678,953

Classified Loan Portfolio (b) 682,188 687,664 710,612 717,849 702,027 690,067 671,225

Private Securities (c) 46,973 45,078 44,695 48,645 47,625 41,819 45,242

Allowance for Loan Losses (d) -26,862 -27,575 -31,926 -33,577 -35,398 -36,968 -37,514

Adjusted Net Loan Portfolio (a) - (e)* 578,161 580,929 595,905 604,599 588,131 570,687 554,857

Domestic Onlending Loans (e) 124,137 124,238 127,476 128,319 126,122 124,232 124,096

Uses 845,042 843,093 892,059 887,854 832,489 802,737 803,107

Uses

Indicators (%)

Adjusted Net Loan Portfolio* / Commercial Funding** 90.1 90.9 90.3 90.3 92.1 91.3 89.5

Commercial Funding** 641,603 639,193 660,175 669,506 638,611 624,778 619,944

31

Compulsory/Reserve Requirements (%) 3Q15 4Q15 1Q16 2Q16 3Q16

Demand Deposits

Reserve Requirement 45 45 45 45 45

Additional Reserve Requirement 0 0 0 0 0

Marked to Rural 34 34 34 34 34

Marked to Micro Finance 2 2 2 2 2

Unmarked 19 19 19 19 19

Savings Deposits

Rural



Marked 74 74 74 74 74

Unmarked 5 5 5 5 5

Mortgage



Marked 65 65 65 65 65

Unmarked 5 5 5 5 5

Time Deposits



Unmarked 64 64 64 64 64

Compulsório e Direcionamento Compulsory and Reserve Requirements

32

Means of Payment

Banco do Brasil BB Banco de Investimentos

BB Adm Cartões

BB ELO Cartões

100%

100%

100%

|

Serviços

49.99%

70%

66.64%

100%

40.95%

91.44%

100%

100%

\

100%

70%

100%

100%

30%

28.65%

30%

Banco

CBSS 100%

Promotora

33

Leadership

Assets (R$ billion – Sep/16)

Loan Portfolio (R$ billion – Set/16)

Assets Under Managmt.¹ (R$ billion – Jun/16)

Deposits (R$ billion– Sep/16)

1,448.2 1,399.1

1,105.2

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Jun/2016.

20.7% Market Share¹

734.0

605.1

447.5

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Sep/16 for domestic loan portfolio.

20.2% Market Share¹

674.7

566.7

523.1

BB Bank A Bank B

(1) It does not include Banco Votorantim

21.5% Market Share

437.7

308.6

179.4

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Jun/2016.

22.8% Market Share¹ 1st 1st 1st 1st

34

Leadership

Cards

Total turnover

Debit

Credit

1st

2nd

Insurance

Business 3Q16

Rural

Pension Plan

Life

Premium Bonds

Vehicle

Source: Abecs Sep/16 Source: Susep Sep/16

1st

1st

2nd

1st

2nd

35

16.5% 16.0%

13.9% 13.8%

11.9%

Bank 1 BB Bank 2 Bank 3 Bank 4

22.7%

16.7%

14.0%

8.5%

6.6%

BB Bank 1 Bank 2 Bank 3 Bank 4

Foreign Exchange Export Contracts Foreign Exchange Import Contracts

Leadership in Foreign Trade

1st

Source: Central Bank of Brazil – YTD Sep/16

2nd

36

Awards and Achievements

37

Decisions at any level of the Company are made collectively. With the purpose of involving all the executives in the definition of strategies and approval of proposals for the different businesses of Banco do Brasil.

The Only Brazilian Bank listed since 2006, in this BM&F Bovespa segment, destined to companies that voluntarily adopt the best practices for corporate governance.

Corporate Governance

3 Higher Committees

15 Executive Committees

Other Committees

Global Risk Committee Asset and Liabilities Management

and Liquidity Committee Investor Relations

Executive Committee

Credit Risk Executive Committee

Credit Limit Executive Committee Ethics Executive

Committee

Capital Management Executive Committee

Products and Services Executive Committee

Market and Liquidity Risk Executive Committee

Related Companies Governance Executive Committee

Internal Controls and Operational Risk Executive Commitee

Prevention of Financial,Foreign Exchange Illicit and Information Security Executive Committee

Administrative and Operational Executive Committee

Credit Transactions Executive Committee

Information Technology Executive Committee

Human Resources Executive Committee

Disciplinary Review Executive Committee

Credit Transactions Committee Resources Committee Information Technology

Committee

Objective Mitigate risks, share visions, aggregate value and quality to the decision process and disseminate knowledge.

Asset & Liability Management and Liquidity Executive Committee

38

Banco do Brasil: Ratings

2012 2013 2014 2015 3Q16

Standard & Poor's

Long-Term - Local Currency BBB BBB BBB- BB+ BB

Long-Term - Foreign Currency BBB BBB BBB- BB+ BB

Moody's

Financial Strength C- C- C- - -

Long-Term Debt - Foreign Currency Baa1 Baa2 Baa2 Baa3 Ba2

Long-Term Deposits - Foreign Currency Baa2 Baa2 Baa2 Baa3 Ba3

Long-Term Deposits - Local Currency A3 Baa2 Baa2 Baa3 Ba2

Fitch Ratings

Long-Term - Local Currency BBB BBB BBB BB+ BB

Long-Term - Foreign Currency BBB BBB BBB BB+ BB

38

Banking Industry

2

40

81.3 81.4 82.5 88.2 89.1 89.4 92.1 93.0 93.2

5 Largest 10 Largest 20 Largest

78.2 77.5 78.7

88.0 88.1 88,1 93.1 93.2 93.5

5 Largest 10 Largest 20 Largest

Concentration - %

Assets Loans

Source: Central Bank of Brazil

2014 2015 Jun/16 2014 2015 Jun/16

41

67.1 69.3 72.6

83.7 85.7 96.3

5 Largest Banks 10 Largest Banks

Concentration - %

Deposits Assets under Management Credit Card Revenue**

82.5 79.8 80.8

88.2 90.8 91.0 93.6 95.1 95.3

5 Largest Banks 10 Largest Banks 20 Largest Banks

2014 2015 3Q16* 2014 2015 Jun/16

Source: Central Bank of Brazil *As of Sep/16 ** Source: CardMonitor Research as of 2Q16 per issuer.

87.6 86.6

95.6 95.4

5 Largest Banks 10 Largest Banks

2Q15 2Q16

Earnings Highlights

3

43

Net Interest Income Grew by 15.0%

Pre-Tax and Pre-Provision Earnings Increased by 9.8%

Fee Income 7.0% Growth

Administrative Expenses Under control (4.2% growth)

Cost to income ratio Improved to 39.4%

Highlights 9M16 / 9M15

44

Net Income and Profitability

(7,385) (972)

8,947

5,738

1,155

(2,059)

5,424

1,646 7,070

9M15Adj. Net Income

NII ALL Fee Income AdministrativeExpenses

Others 9M16 Adj. NetIncome

One-Off Items 9M16 Net Income

R$ Million

ROE

7.6%

ROE

10.0%

3Q15 2Q16 3Q16 9M15 9M16 ROE 15.5% 12.3% 11.1% 19.7% 11.4%

Adjusted ROE 13.3% 7.7% 9.9% 13.7% 7.6%

Market ROE 15.2% 9.2% 12.0% 15.4% 9.1%

Shareholders ROE 17.0% 10.3% 13.4% 17.2% 10.1%

Profitability Ratios

Accumulated

45

Pre-Tax and Pre-Provision Earnings

10.0 10.7 10.8

3Q15 2Q16 3Q16

R$ Billion

29.0 31.9

9M15 9M16

+9.8%

Quarterly change Adjusted Annual change

+8.0%

46

Earnings per Share (R$)

Market Ratios

1.08 0.89 0.83

0.88 0.80

1.03 0.95

0.46 0.65

0.84

3Q15 4Q15 1Q16 2Q16 3Q16Earnings per Share Adjusted Earnings per Share

Dividend Yield1 (%)

13.98 13.96

7.38 7.62

4.86

3Q15 4Q15 1Q16 2Q16 3Q16(1) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica.

Source: Economatica. Source: Economatica.

Price/Book Value Price/Earnings 12 months

2.86 2.86

5.05 4.60

6.63


0.51 0.50

0.66 0.57

0.74


47

Annual Vintage – Very Small and Small Companies Loan

Portfolio Annual Vintage – Individuals Loan Portfolio

Vintages

48

32,354

29,366

25,750

19,326 18,241

504 505 423 430 491

1.6% 1.7% 1.6% 2.2% 2.7%


Guarantees Provided (balance) Provisions (balance) Provisions / Guarantees Provided

R$ Million

Guarantees provided and Provisions

49

R$ Million

Loan Portfolio (by Contracted period)

2013

Up to 2011

2012

1Q15

4Q15

1Q16

3Q15

2Q15

2014

2Q16

3Q16

Sep/16 Jun/16 Mar/16 Dec/15 Sep/15

2016

21.8%

2015

23.0%

44.8%

50

4.60 4.47 4.79 4.52 5.51

4.59

6.01 4.69 4.50

5.62 5.56

7.07 7.09 8.47

1.29 1.29 1.69 1.66 1.80 1.45 1.79

Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Individuals Companies Agribusiness

NPL Ratio +15 days (%)

(1) BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect.


2.20 2.16 2.17 2.17 2.41 2.40 2.58

2.52 2.72 3.10

3.42 4.01

4.82 5.26

0.82 0.73 0.84 0.97 1.19 0.95 0.96


Individuals Companies Agribusiness


Delinquency Ratios¹

2.80 2.90

3.10

3.40 3.50 3.50

3.70

2.24

2.60

3.27 3.51

1.84 1.89 2.06

2.85 3.07


Banking Industry Banco do Brasil Banco do Brasil²

4,62³

51

(1) BB Classified Portfolio. (2) Simulation excluding an oil and gas specific case effect.

Coverage Ratios (%) and ALL Balance (Million)1

25,482 26,170 28,220 30,349

1,380 1,405 3,705

3,228 1,209

26,862 27,575

31,926 33,577

35,398 36,968 37,514

175.00 172.41 177.42

167.65 171.43

180.00 175.68

213.99 211.79 218.07

209.19

193.83

163.87 159.39

98.89

119.14 113.11

119.68

104.05 109.06

93.97

173.16 167.81


Additional (Complementary) Provision

Required Allowance - R$ million

Banking Industry + 90 days

Banco do Brasil + 90 days

Banco do Brasil + 15 days

Banco do Brasil + 90 days²

187,

71²

Allowance for Loan Losses

52

144.05 141.27 136.30 148.51 159.47 161.23 155.03 150.29 145.07 144.94 140.99

217.93 222.87 217.46 223.10 235.08

221.12 220.31 222.18 201.82 201.31 190.86

326.74

396.02 378.18

347.07 334.82

370.65

316.09 291.88

254.92

290.00 295.58

Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Companies

Individuals

Agribusiness

365.65 370.50 305.90 492.08

282.86 309.89 391.98 399.17

661.44

367.23 349.42

Abroad²

130 -23 -56 56 206 144 246 391

1,942 804 132 1,929 2,600 2,543 2,832 3,142 3,810 3,832 4,319

4,754 5,794

4,370 1,238 1,197 1,382 1,291

1,405 680 1,221 1,326

1,408 1,282

1,411

509 400 431 712 902 557

536 954

1,041 396

730

3,806 4,174 4,301 4,890 5,654 5,191

5,835 6,991

9,145 8,277

6,644

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Agribusiness

Individuals

Companies

Abroad

(1) BB Classified Portfolio. (2) Simulation excluding an oil and gas specific case effect. (3) Quarterly ALL. It does not consider additional provision.

Coverage Ratios by Segment (%)

ALL by Segment³

187,

71²

Asset Quality¹

-19.7%

53

(1) Required Provision / BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect.

Average Risk¹ (%)

Provision Flow and Average Risk

Provision Flow/ Loan Portfolio (%)

0.77

0.82

0.39

0.68 0.73 0.76

0.68 0.76

1.00 1.10

1.33 1.32 1.45

1.66 2.11

1.66

0.44 0.55

0.33 0.31

0.55 0.58 0.22

0.41

0.55

0.61 0.65

0.56

0.67 0.74

0.79 0.92

0.76 0.49 0.15 0.62 0.55

3.51 1.67

0.41

Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Individuals

Companies

Agribusiness

Total

Abroad

3.57 3.74 3.81 3.97 4.23

4.87

5.36 5.59

4.90 4.90 5.00

5.50 5.70

6.00 6.30

6.50

4.16

4.60 4.94

5.15

Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16

Banco do Brasil

Banking Industry

Banco do Brasil²

54

(1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) Simulation excluding an oil and gas specific case effect. (3) It considers the Classified Loan Portfolio of the previous quarter. (4) Estimated flow of the Renegotiated loan portfolio contracts of past due for over 90 days operations.

New NPL¹, Write Off and NPL Formation Rate

New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio⁴

4.55 5.45

6.16 7.13

7.93

10.48

7.55

4.16 4.45 3.97 4.81 5.18 5.43

6.14

0.68 0.80 0.90

1.00 1.10 1.49 1.09

124.30 95.28 94.72 98.10

115.34

78.94 88.03

1.09 0.67

108.62

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

New NPL with Past due Credits Portfolio (R$ million) Write Off (R$ billion) New NPL with Past due Credits Portfolio /Loan Portfolio³ (%) Quarterly ALL/New NPL (%) New NPL / Loan Portfolio² (%) Quarterly ALL/New NPL² (%)

8.37²

From the total contracts in the

3Q16 in the renegotiated loan

portfolio, 15.5% were past due

over 90 days.

4.28 4.91

5.59 6.22

7.39

9.73

7.12

4.16 4.45 3.97 4.81 5.18 5.43

6.14

0.64 0.72 0.81 0.88

1.03 1.39

1.03

131.99 105.64 104.33 112.32

123.80

85.05 93.32

0.98

120.55

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

New NPL (R$ billion)

Write Off (R$ billion)

New NPL / Loan Portfolio³ (%)

Quarterly ALL/New NPL (%)

New NPL / Loan Portfolio² (%)

Quarterly ALL/New NPL² (%)6.87²

NPL Formation

55

Renegotiated Overdue Loan Portfolio¹

3Q15 2Q16 3Q16

Renegotiated Overdue Loan Portfolio - Changes

Initial Balance 12,701 22,038 25,050

Contracts 3,783 5,026 2,758

Payments received minus capitalized interest (461) (979) (744)

Write Off (503) (1,036) (1,370)

Final Balance 15,520 25,050 25,694

Allowance for Loan Losses Balance 7,464 10,369 10,784

NPL + 90 days 2,469 5,642 6,370

Indicators - %

ALL for Loan Losses / Loan Portfolio 48.1 41.4 42.0

NPL + 90 days / Loan Portfolio 15.9 22.5 24.8

ALL for Loan Losses Balance/NPL + 90 days 302.2 183.8 169.3

Credits Renegotiated/Classified Loan Portfolio 2.2 3.6 3.8 (1) Table according Explanatory Notes 10.k.

R$ Million

0.68 0.79 1.24 1.55 1.91 2.38 2.10

0.51 0.65 0.50 0.84 0.78 1.04 1.37

7.50

7.73

9.80 9.96 9.71 10.78

8.37

384.91 382.74

302.24 270.72

220.67 183.79 169.31


New NPL - Renegotiated Overdue Loan Portfolio (R$billion)

Write Off (R$ billion)

New NPL/Past due Renegotiated Portfolio²

ALL Balance/NPL + 90 days

New NPL¹, Write Off and NPL Formation Rate

(1) Quarterly change in the balance of past-due for over 90 days operations + current quarter write off. (2) It considers the classified loan portfolio of the previous quarter.

Sep/15

Balance Share %

AA 151 1.0

A 894 5.8

B 1,767 11.4

C 1,427 9.2

D 803 5.2

E 2,974 19.2

F 1,578 10.2

G 962 6.2

H 4,964 32.0

Total 15,520 100.0

AA-C 4,239 27.3

D-H 11,281 72.7

Sep/16

Balance Share %

AA 431 1.7

A 1,158 4.5

B 3,467 13.5

C 3,183 12.4

D 1,333 5.2

E 5,195 20.2

F 2,634 10.3

G 2,182 8.5

H 6,112 23.8

Total 25,694 100.0

AA-C 8,238 32.1

D-H 17,456 67.9

56

(1) It corresponds to two large Brazilian private banks.

BB x Peers¹

Renegotiated Loan Portfolio – 3Q16

25,694 20,559

3.8 4.7

BB Peers Average¹

Renegotiated Loan Portfolio

Renegotiated Loan Portfolio/ClassifiedLoan Portfolio (%)

7,414 8,112

8,563 9,760

10,734

7,464 8,585

9,495 10,369 10,784

16.5 18.5

23.0 23.5 27.0

15.9 16.1 19.5 22.5

24.8


Peers Average - ALL Balance

BB - ALL Balance

Peers Average - Renegotiated Portfolio NPL +90days (%)

BB - Renegotiated Portfolio NPL +90 days (%)

R$ Million

Renegotiated Loan Portfolio

57

Allowance for Loan Losses (12 months) / Loan Portfolio Allowance for Loan Losses (Quarterly) / Loan Portfolio

Classified Loan Portfolio – Growth by Risk Level

-5.5%

in 12 months

(1) Average Classified Loan Portfolio 12 months. (2) ALL expenses accumulated in 12 months / 12 months Average Loan Portfolio. (3) 3 months Average Loan Portfolio. (4) Quarterly ALL Expenses / 3 months Average Loan Portfolio.

Allowance for Loan Losses (ALL) and Loan Portfolio

675,671 690,144 699,218 702,224 699,090

21,571 23,671 27,161 30,248 31,056

3.2 3.4 3.9 4.3 4.4

3Q15 4Q15 1Q16 2Q16 3Q16

Loan Portfolio¹ Allowance for Loan Losses ALL / Loan Portfolio (%)²

695,770 711,477 710,697 696,907 680,447

5,835 6,991 9,145 8,277 6,644

0.8 1.0 1.3 1.2

1.0

3Q15 4Q15 1Q16 2Q16 3Q16

Loan Portfolio³ Allowance for Loan Losses ALL / Loan Portfolio (%)⁴

710,612 (57,638) 3,820 6,590 1,776 846 5,218 671,225

Sep/15 AA-C D E F G H Sep/16

R$ Billion

58

Write-off – Percentage of the Classified Loan Portfolio¹

(1) Write-offs to losses accumulated in 12 months / average balance of the classified credit portfolio in 12 months. (2) It corresponds to the three largest Brazilian private banks.

2.37 2.49 2.61 2.75 3.10

4.03 4.23

4.47 4.61 4.78


Banco do Brasil Peers Average²

59

ALL Balance – Current and Past Due Operations

3.7 3.2

1.2 0.0 0.0

13.1 14.8

16.4 16.3 15.9

15.1 15.6

17.8

20.7 21.6

31.9 33.6

35.4 37.0 37.5

3Q15 4Q15 1Q16 2Q16 3Q16

Additional (Complementary) Provision Current (Generic) Past Due (Specific) Total

R$ Billion

60

Net Interest Income

Global Spread (%)³ Spread by Portfolio (%)³

(1) It Includes senior debt, subordinated debt and hybrid capital instrument (HCDI). (2) It includes interest income, tax hedge, derivatives and other financial instruments that compensate the exchange rate variation in the result. (3) Annualized data. (4) It does not include loans with government sector.

4.5 4.8 4.8 4.9 4.9

2.5 2.4

1.7 2.1

2.7

3Q15 4Q15 1Q16 2Q16 3Q16

NIM Risk Adjusted NIM

7.1 7.4 7.5 7.7 7.9

14.9 15.5 15.8

16.3 16.5

5.7 5.8 5.9 5.9 6.1

4.5 4.8 4.8 4.9 5.0

3Q15 4Q15 1Q16 2Q16 3Q16

Loan Operations NIM Individuals NIM Companies NIM⁴ Agribusiness NIM

3Q15 2Q16 3Q16 Change %

9M15 9M16 Change %

R$ million on 3Q15 on 2Q16 on 9M15

Net Interest Income 13,251 14,633 15,099 13.9 3.2 38,270 44,008 15.0

Loan Operations Income 24,840 25,311 26,117 5.1 3.2 69,417 76,506 10.2

Funding Expenses (11,616) (11,034) (11,366) (2.2) 3.0 (31,234) (33,330) 6.7

Institutional Funding Costs¹ (3,792) (3,785) (3,737) (1.5) (1.3) (10,483) (11,255) 7.4

Recovery of Write-offs Loans 719 1,384 968 34.6 (30.1) 2,470 3,212 30.0

Treasury Income² 3,100 2,758 3,117 0.6 13.0 8,100 8,875 9.6

61

Net Interest Income

Revenue from Loans

Funding Costs

9.1 9.3 10.3 11.6 11.3 10.9 11.0 11.4

3.0 3.3 3.4 3.8 3.8 3.7 3.8 3.7

10.9 11.3 11.9 12.6 13.4 13.7 14.1 14.2

76.8 75.9 76.8 75.9 74.9 75.4 74.7 77.3

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Funding Expenses Institutional Funding Expenses Accumulated Selic (% accumulated in 12 months)¹ Funding Expenses % Selic

(1) Source: Central Bank of Brazil

21.3 21.8 22.7 24.8 25.3 25.1 25.3 26.1

10.9 11.3 11.9 12.6 13.4 13.7 14.1 14.2

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Revenue from Loans Accumulated Selic (% accumulated in 12 months)¹

62

Fee Income 62

R$ Million

3Q15 2Q16 3Q16 Change %

9M15 9M16 Change %

on 3Q15 on 2Q16 on 9M15

Fee Income 5,691 6,063 6,022 5.8 (0.7) 16,488 17,643 7.0

Account Fees 1,373 1,534 1,600 16.5 4.3 3,488 4,569 31.0

Asset Management Fees 930 974 1,012 8.8 3.9 2,623 2,892 10.3

Insurance, Pension and Premium Bonds 691 835 751 8.7 (10.1) 2,166 2,283 5.4

Collections 435 421 424 (2.6) 0.5 1,279 1,264 (1.2)

Loan Fees 462 444 374 (19.0) (15.7) 1,511 1,179 (22.0)

Credit / Debit Cards 398 343 346 (13.1) 1.0 1,359 1,009 (25.8)

Billings 250 257 254 1.4 (1.4) 783 771 (1.5)

Interbank 196 223 209 6.4 (6.3) 575 634 10.2

Consortium 109 123 156 43.9 27.5 314 394 25.6

Fiduciary Services 130 133 143 9.8 7.0 367 405 10.3

Capital Market 84 174 142 69.3 (18.6) 346 426 23.0

Other 633 601 612 (3.3) 1.9 1,675 1,817 8.5

Adjusted Fee Income¹ 9M15 9M16 Change %

on 9M15

Fee Income 16,080 17,643 9.7

Credit / Debit Cards 951 1,009 6.1

(1) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

63

BB Seguridade

Adjusted Net Income (R$ million)

988 1,087

988

2,931 3,032

3Q15 2Q16 3Q16 9M15 9M16

+3.4%

64

Banco Votorantim

Net Income (R$ million)

Delinquency and Risk Level

137

77 86 108 112

3Q15 4Q15 1Q16 2Q16 3Q16

89.7% 88.8% 90.6% 90.2% 90.2%

10.3% 11.2% 9.4% 9.8% 9.8%

5.3% 5.7% 4.6% 4.6% 5.5%


AA-C D-H NPL + 90 days / Loan Portfolio

65

4.8 5.0 5.3

3.1 3.0 3.1

42.5

39.9 39.7

3Q15 2Q16 3Q16

Personnel Expenses Other Expenses Cost to Income Ratio (%)¹ - 12 months

Administrative Expenses and Cost to Income Ratio¹

(1) Cost to Income Ratio: Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. OBS: Disregarding the lump-sum bonus granted to employees, the cost to income ratio would be 39.3% in the 3Q16 and 38.8% in the 9M16.

14.3 15.0

9.0 9.2

42.0

39.4

9M15 9M16

Cost to Income Ratio (%)

Disregarding the lump-sum bonus granted to employees, Personnel Expenses would reach

R$4.9 billion in the 3Q16 and R$14.6 billion in the 9M16.

R$ Billion

66

8.07 8.17 8.26 8.42 9.07

3.54 3.22 3.12 2.92 3.11

16.20 16.13 16.24 16.45 17.59


Core Capital Additional Tier I Tier 2

BIS Ratio %

4.58 4.74 4.87 5.12

Tier I 12.18%

5.41

67

BIS Ratio

Tier 1

Full application of Basel III rules

17.59 16.73 16.44

0.87

17.31

(0.85) (0.29)

BIS Ratio Deductions ScheduleAnticipation

BIS Ratio with fulldeductions

RWA RulesAnticipation

BIS Ratio with FullyLoaded Basel III Rules

Use of Tax Credits Simulated BIS Ratiounder complete Basel

III Rules

11.20 11.00 11.84

12.18

(0.98) (0.20) 0.84

Tier 1 Deductions ScheduleAnticipation

Tier 1 with fulldeductions

RWA RulesAnticipation

Tier 1 with Fully LoadedBasel III Rules

Use of Tax Credits Simulated Tier 1 undercomplete Basel III Rules

68

BIS III – Capital Requirements % 68

2016 2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500 4.500

Tier 1 6.000 6.000 6.000 6.000

Brazilian BIS Ratio 9.875 9.250 8.625 8.000

Capital Conservation Buffer 0.625 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer (superior limit)

0.625¹ 1.250 1.875 2.500

Additional CET1 Systemic (D-SIB) Buffer 0.000 0.250 0.500 1.000

CET1 + Buffers 5.125¹ 7.250 8.750 10.500

Tier 1 + Buffers 6.625¹ 8.750 10.250 12.000

Brazilian BIS Ratio + Buffers 10.500¹ 12.000 12.875 14.000

Implementation Schedule

(1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to Central Bank Circular 3,769/15.

69

(1) Adjusted ROE estimated for 2016 uses estimated adjusted shareholders’ equity, free from the effects of: (i) the restatement of actuarial assets and liabilities arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies. (2) It includes private securities and guarantees provided. (3) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

2016 Guidance 2016 Performance 2016 Guidance

Revised

Adjusted Return on Equity¹ 9 to 12 7.6 8 to 10

Net Interest Income 11 to 15 15.0 Unchanged

Domestic Loan Portfolio² - Broad Concept -2 to 1 -3.4 -9 to -6

Individuals 5 to 8 3.6 1 to 4

Companies -10 to -6 -10.8 -19 to -16

Agribusiness 6 to 9 4.5 4 to 7

Allowance for Loan Losses³ 4.0 to 4.4 4.4 Unchanged

Fee Income 7 to 11 7.0 Unchanged

Administrative Expenses 5 to 8 4.2 4 to 6

Guidance

Macroeconomic Information

4

71

Inflation and Selic Rate

6.50 5.84 5.91

6.41

10.67

9.49 8.84

7.59 6.88

5.00

11.00

7.25

10.00

11.75

14.25 14.25

14.25 14.25 13.50

10.75

4.50

1.41

4.09

5.34

3.58

4.76 5.41

6.66 6.62

5.75

2011 2012 2013 2014 2015 3Q15 2Q16 3Q16 2016 2017

IPCA – IBGE (% accumulated in 12 months) Selic (% - end of the period) Real Interest Rate¹

Source: Central Bank of Brazil and IBGE. Projection for 2016 and 2017, according to Boletim Focus as of 28/10/2016. (1) Real Interest Rate = Selic - IPCA

72

GDP

50.3 52.6 53.1 54.2 54.0

51.9 50.8

32.3 30.6

33.1 36.2

32.6

42.0

1.9

3.0

0.1

-3.8 -2.5 -4.9

2.2

1.7

-0.6 -1.9

-0.4

-2.5

2012 2013 2014 2015 3Q15 2Q16 3Q16

Credit/GDP (% YTD in 12 months) PSND (% GDP) GDP (% YTD in 12 months) Primary Surplus (%GDP in 12 months)

Source: Central Bank of Brazil.

73

50.3 52.6 53.1 54.2 54.0

50.8

2,368.3 2,711.4

3,017.5 3,216.9 3,164.3 3,109.9

2012 2013 2014 2015 3Q15 3Q16

Credit/GDP (% YTD in 12 months) Loan Portfolio Banking Industry (R$ billion)

Loans/GDP

Loans/GDP (%) and Evolution of Loan Portfolio of Banking Industry

Source: Central Bank of Brazil.

74

Unemployment

98.7 97.9 96.3 97.6 98.6 97.6

105.2 101.2 102.0

38.6 37.2 35.7 36.4 36.5 37.4 41.3

47.3 42.2

May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16

Consumer Expectations (INEC) Business Confidence (ICEI)

-2.3

2.1

-3.0

-8.3 -6.3

-9.8*

5.5 5.4 4.8 6.8

7.9 10.0*

2012 2013 2014 2015 3Q15 3Q16

Industrial Production (% accumulated in 12 months)

Unemployment Rate (% accumulated in 12 months)

Source: IBGE and Confederação Nacional da Indústria *As of Jun/16.

75

Trade Balance US$ Billion

29.8

19.4

2.3

-4.0

19.7

48.0 45.0

52.2

-26.0

-12.9

2011 2012 2013 2014 2015 2016 2017 3Q15 2Q16 3Q16

Source: MDIC. Projection for 2016 and 2017, according to Boletim Focus as of 28/10/2016.

76

International Reserves

Gross Foreign Debt (R$ billion) International Reserves (US$ billion)

516.0

570.8

621.4

712.7

665.1 695.6*

352.0

378.6 375.8 374.1

368.7

377.8

2011 2012 2013 2014 2015 3Q16

Source: Central Bank of Brazil. *As of Jun/2016

77

Source: World Bank and FAO

Brazil has the ideal conditions for sustainable growth Only a few countries have the same potential as Brazil

Sustainable Growth

Urban Population > 80 million people (2011)

GDP > US$ 1 trillion*

UK

France

Korea

Italy

Canada Germany

Spain

Mexico

Japan

Indonesia

Kasakhstan

Argentina

Brazil

India

USA China Russia

Planting Area > 140 million ha*

Australia

78

Main Pilars of Brazilian Growth

Agriculture Foreign Trade Infrastructure

78

79

Overview

Area 8.5 million Km²

Population (2015) 204 million

GDP (2Q16)* -4.9%

Agribusiness GDP (2Q16)* -2.4%

Brazil’s Unique Advantages

Greater availability of low cost arable land

in the world

Easy access to clean water supplies

Competitive prices for land

Excellent climate

Rich soil

Source: Agriculture Ministry and IBGE * Change on 12 months.

Brazilian Agribusiness: Overview

80

Brazilian Agribusiness: Area X Production

Planted Area (thousand Ha) vs Production (thousand Tons)

47,674 47,416 49,873 50,885 53,563 57,060 57,915

59,666 135,135

149,255 162,803 166,172

188,658 193,622

207,770 214,816

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2016/17 E

Planted Area Production

CAGR

6.0%

CAGR

2.8%

Source: CONAB

81

Brazilian Agribusiness: Undisputable Leadership

Brazil: World Commodities Ranking

Coffee

Orange Juice

Sugar

Soybean

Poultry

Beef

Corn

Production Export

Source: USDA – PSD online as of Sep/16.

1st

1st

1st

2nd

3rd

1st

1st

1st

1st

1st

2nd

2nd

2nd

3rd

82

Source: PPI Secretary.

First part of the national priority assets Infrastructure: Crescer Project

Highways

2 Projects Railroads

3 Projects

Airports

4 Projects

Ports

3 Projects

Oil and Gas

4 Auctions rounds Sanitation

3 Projects

Eletricity

12 Projects Mining

4 Projects

Crescer Project – 35 Projects and/or Auctions rounds

83

Brazilian Foreign Trade Balance Evolution (US$ billion)

Brazilian Foreign Trade Balance: Overview

242.6 242.0

225.1

191.1

144.5 139.4

223.2 239.7

229.1

171.5

134.3

103.2

2012 2013 2014 2015 Sep/15 Sep/16

Exports (US$ billion - year accumulated) Imports (US$ billion - year accumulated)

Source: Ministry of Development, Industry and Foreign Trade.

19.4 2.3 -4.0

19.7 10.2

36.2

Trade Balance (US$ billion – year accumulated)

84

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 3Q15 2Q16 3Q16

Economic Activity

GDP (% YTD in 12 months) 3.9 1.9 3.0 0.1 -3.8 -2.5 -4.9 -

Family Consumption 4.7 3.5 3.5 1.3 -4.0 -1.8 -5.7 -

Government Consumption 2.2 2.3 1.5 1.2 -1.0 -0.4 -1.8 -

Gross Fixed Capital Formation 6.7 0.8 5.8 -4.5 -14.1 -11.2 -15.1 -

Exports 4.8 0.3 2.4 -1.1 6.1 0.1 7.3 -

Imports 9.4 0.7 7.2 -1.0 -14.3 -10.4 -18.3 -

Use of Installed Capacity (%) 82.8 82.8 82.3 81.1 77.6 78.5 77.4 -

Economically active population - PEA (% YTD in 12 months) 1.2 1.7 -0.8 -0.1 -0.3 2.1 1.8 -

Unemployment Rate (% YTD in 12 months) 6.0 5.5 5.4 4.8 6.8 7.9 10.0 -

Formal employment – net creation in 12 m (thousand jobs) 1,566.0 868.2 730.7 152.7 -1,625.6 -1,307.0 -1,785.6 -

Industrial Production (% YTD in 12 months) 0.4 -2.3 2.1 -3.0 -8.3 -6.3 -9.8 -

External Sector

Current Transactions (% GDP in 12 months) -3.0 -3.1 -3.1 -4.3 -3.3 -4.1 -1.7 -

Direct Foreign Investment (US$ billion - year accumulated) 101.2 86.6 69.2 96.9 75.1 48.2 33.8 -

International Reserves (US$ billion – end of period) 352.0 378.6 375.8 374.1 368.7 370.6 376.7 377.8

Sovereign Risk (basis points – EOP) 223.0 142.0 224.0 259.0 432.0 442.0 404.0 309.0

Trade Balance (US$ billion – year accumulated) 29.8 19.4 2.3 -4.0 19.7 10.2 23.7 36.2

Exports (US$ billion – year accumulated) 256.0 242.6 242.0 225.1 191.1 144.5 90.3 139.4

Imports (US$ billion – year accumulated) 226.2 223.2 239.7 229.1 171.5 134.3 66.6 103.2

Trade Balance (US$ billion – quarterly accumulated) - - - - - 52.2 -26.0 -12.9

Exports (US$ billion – quarterly accumulated) - - - - - 94.3 40.6 90.3

Imports (US$ billion – quarterly accumulated) - - - - - 42.1 66.6 103.2

Ptax Dollar Rate (EOP) – R$ 1.9 2.0 2.3 2.7 3.9 4.0 3.2 3.2

Ptax Dollar Rate (% YTD in 12 months) 12.6 8.9 14.6 13.4 47.0 62.1 3.5 -18.3

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

85

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 3Q16 2Q16 3Q16

Monetary Ratios

IGP-DI FGV (% YTD in 12 months) 5.0 8.1 5.5 3.8 10.7 9.3 12.3 9.7

IGP-M FGV (% YTD in 12 months) 5.1 7.8 5.5 3.7 10.5 8.4 12.2 10.7

IPCA – IBGE (% YTD in 12 months) 6.5 5.8 5.9 6.4 10.7 9.5 8.8 7.6

Selic (EOP %) 11.00 7.25 10.00 11.75 14.25 14.25 14.25 14.25

Accumulated Selic (% YTD in 12 months) 11.62 8.49 8.22 10.90 13.37 12.62 14.11 14.15

Accumulated TR (exBTN) (% YTD in 12 months) 1.4 0.3 0.3 1.0 1.8 1.7 2.1 2.1

TJLP - IBGE (EOP %) 6.0 5.5 5.0 5.0 7.0 6.5 7.5 7.5

Libor (EOP %) 0.4 0.4 0.2 0.2 0.3 0.3 0.6 0.6

Public Finance

Primary Surplus (% GDP 12 months accumulated) 2.9 2.2 1.7 -0.6 -1.9 -0.4 -2.5 -

Public Sector Gross Debt (% GDP) 51.3 53.8 51.7 57.2 66.5 64.7 68.7 -

Public Sector Net Debt (% GDP) 34.5 32.3 30.6 33.1 36.2 32.6 42.0 -

Credit Indicators

Banking Industry Loan Portfolio (R$ billion) 2,034.0 2,368.3 2,711.4 3,017.5 3,216.9 3,164.3 3,130.3 3,109.9

Individuals (R$ billion) 921.1 1,075.8 1,245.8 1,412.1 1,512.2 1,486.8 1,530.1 1,540.9

Companies (R$ billion) 1,112.9 1,292.6 1,465.5 1,605.4 1,707.2 1,677.5 1,600.3 1,569.0

Credit/GDP (% YTD in 12 months) 49.1 53.9 51.0 53.1 54.2 54.0 51.9 50.8

Household Debt (%) 41.6 43.6 45.1 46.0 44.8 45.7 44.0 -

Total Default (% past due loans over 90 days) 3.6 3.7 2.8 2.7 3.1 3.1 3.5 3.7

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

86

The largest bank in Latin America

Av. Paulista 2163, 2nd Floor – Cerqueira César

São Paulo/SP - Brazil - 01311-933 +55 (11) 3066-9110 www.bb.com.br/ir [email protected]

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