The Company - Layout FINAL · PDF fileBrazilian Leader in ACC/ACE (Advance Against...

Highlights

Latin America's leadership in total assets

52.7 million clients

Available in 3.5 thousand Brazilian cities

17,929 points of service

Present in 23 countries

Total funding of R$ 498.4 billion

Asset Management leadership with R$ 306.7 billion

Loan Portfolio of R$ 300.8 billion with 20.1% of market share

Brazilian Leader in the exchange market

Brazilian Leader in ACC/ACE (Advance Against Exchange/Advance Against Draft

Presentation)

Market Leader on BNDES Onlending: R$12.3 billion

America's unique bank to receive certification of compliance with ISO 20000

Leadership in agribusiness with 59.1% of market share

Economic Highlights

Economic Activity

External Sector

Monetary Indicators

Public Finance

Credit Indicators

5.72

3.82

4.09

9.12

15.29

13.30

81.9

1.43

11.6

136.0

8.3

1.8

5.8

52.94

383.00

33.84

96.68

62.84

2.65

12.13

12.42

7.60

17.75

16.24

1.81

9.75

1.98

3.80

-

48.23

24.5

3.1

6.1

1.6

44.6

60.5

31.0

26.8

42.9

13.0

9.9

6.3

3.16

4.47

2.30

3.63

9.33

8.47

80.8

0.63

9.9

(17.7)

3.1

1.6

3.4

53.80

305.00

44.93

118.53

73.60

2.34

1.23

1.20

5.69

18.00

19.04

2.83

9.75

4.02

3.93

-

47.99

28.1

3.7

6.7

2.1

45.9

59.3

31.7

28.6

42.8

13.8

10.6

7.3

3.75

4.64

2.84

9.76

4.67

18.44

81.5

2.47

10.0

(2.0)

2.8

1.3

6.8

85.84

193.00

46.46

137.81

91.35

2.13

3.80

3.85

3.14

13.25

15.08

2.03

6.85

5.37

3.24

55.13

45.89

30.7

3.7

7.6

3.1

39.8

52.1

26.2

27.2

39.6

13.8

12.3

7.8

5.42

6.53

3.07

13.44

6.19

19.87

83.4

1.49

9.3

31.6

6.0

0.1

6.6

180.33

222.00

40.04

160.65

120.61

1.77

7.90

7.70

4.50

11.25

11.85

1.50

6.37

5.23

3.37

55.02

42.82

34.3

3.2

7.0

3.4

33.8

43.9

22.9

22.3

31.9

11.9

14.6

9.2

5.1

5.4

5.6

13.85

(0.64)

17.96

81.5

2.04

7.9

(10.2)

(3.1)

(1.7)

14.2

206.81

416.00

24.74

197.94

173.21

2.34

9.10

9.80

5.90

13.75

12.48

1.80

6.25

3.88

3.54

56.35

37.34

41.3

3.2

8.0

1.8

43.3

57.9

30.7

30.7

45.0

18.3

16.3

10.1

GDP (% YTD in 12 months)

Family Consumption

Government Consumption

CAPEX**

Exports

Imports

Use of Installed (%)

Agent Population (% 12 months)

Unemployment Rate (% 12 months)

Formal employment - net creation (% 12 months)

Industrial Production (% 12 months)

Current Transactions (% 12 months)

Foreign Direct Investment

Internacional Reserves (US$ billion)

Country Risk (base points - EOP)

Trade Balance (US$ billion)

Exports (US$ billion)

Imports (US$ billion)

Ptax Dollar Sale (EOP)

IGP-DI FGV (% 12 months)

IGP-M FGV (% 12 months)

IPCA - IBGE (% 12 months)

Selic (EOP %)

Accumulated Selic (% 12 months)

Accumulated TR (exBTN) (% 12 months)

TJLP - IBGE (EOP %)

Libor (EOP %)

Primary Surplus (12 months accumulated GDP)

PSGD (% GDP)

PSND*** (% GDP)

Credit/GDP (% 12 months)

Total Default (% past due loans over 90 days)

Individuals

Businesses

Total Investment Rate (%)

Individuals

Businesses

Total Spread (%)

Individuals

Businesses

Average Term (%)

Individuals

Businesses

* Position of Sep., 2009** Gross formation of fixed capital*** Without Petrobrás

2004 2005 2006 2007 2008 2009

(1.0)*

3.1*

2.5*

10.23*

(10.85)*

(10.49)*

81.1*

0.55

8.1

(31.5)

(7.4)

(1.6)

8.3

239.05

196.00

25.35

153.00

127.65

1.74

(1.4)

(1.7)

4.31

8.75

9.92

0.7

6.00

0.29

2.06

63.02

42.96

45.0

4.4

7.8

3.8

34.3

42.7

25.5

24.3

31.6

16.5

17.3

9.4

Figures at a GlanceR$ million 2004 2005 2006 2007 2008 2009

Net Income

Net Interest Income

Allowance for Loan Losses

Fee Income

Administrative Expenses

Total Assets

Loan Portfolio

Securities Portfolio

Deposits

Assets Under Management

Shareholder´s Equity

Ratios (%)

ROA - Annualized

ROE - Annualized

NIM - Annualized

Efficiency

Delinquency

Allowance / Deliquency

Coverage

BIS Ratio

Shares

Dividends / Interest on Own Capital (R$ million)

Book Value per Share (R$)

Earnings per Share (R$)

Payout (%)

Dividend Yield (%)

Other Indicators (In thousand)

Account Holders

Individuals

Businesses

Service Network

Automated Teller Machine (ATM)

Credit Cards

Debit Cards

Employees

3,024

15,484

(3,531)

6,607

(11,243)

239,014

88,554

73,485

115,532

124,021

14,106

1.2

23.0

8.4

54.2

2.8

218.9

93.1

15.2

954

5.80

1.24

31.5

3.7

21,140

20,771

1,369

14.4

39.0

6,919

34,365

79.7

4,154

16,709

(4,527)

7,649

(12,254)

252,977

101,789

66,470

137,658

153,508

16,850

1.4

26.8

8.6

48.1

3.4

193.8

102.3

17.1

1,498

6.93

1.71

36.1

4.4

22,400

22,968

1,432

14.8

40.2

9,282

39,974

83.7

6,044

18,107

(5,743)

8,888

(12,878)

296,356

133,157

73,108

158,841

182,682

20,758

1.3

32.1

8.1

47.5

2.5

255.3

112.9

17.3

2,418

8.38

2.44

40.0

4.6

25,710

24,150

1,559

15.1

39.7

14,096

41,661

82.7

5,058

20,807

(5,378)

9,903

(13,301)

367,210

160,739

75,201

188,282

220,136

24,262

1.7

22.5

7.6

46.2

2.7

241.7

127.7

15.6

2,023

9.80

2.04

40.0

2.7

27,414

25,746

1,667

15.3

39.3

21,329

47,229

81.9

8,803

24,515

(6,799)

11,811

(15,358)

521,273

224,808

86,909

270,841

246,334

29,937

2.0

32.5

7.0

45.6

2.4

257.7

136.2

15.2

3,522

11.66

3.44

40.0

9.3

30,378

28,494

1,884

16.0

39.7

25,377

52,654

96.9

10,148

33,060

(11,629)

13,511

(19,185)

708,549

300,829

124,337

337,564

306,686

36,119

1.6

30.7

6.7

40.7

3.3

190.3

128.2

13.7

4,059

14.06

3.95

40.0

5.3

34,988

32,780

2,206

17.9

45.4

27,981

59,328

103.9

a) Net Interest Income/ Earnings Assets.

b) Administrative Expenses/Operating Income.

c) Past due loans over 90 days/ Loan Portfolio.

d) Fee Income/Personnel Expenses.

e) Adjusted series considering the stock split (1:3) occurred in the second quarter of 2007.

f) Consolidated statements, including non-financial companies, since march/2008.

g) Including Banco Popular.

f

a

b

c

d

e

e

g

Table of Contents

01. Economic Environment

02. Industry Outlook

03. Banco do Brasil Positioning

04. Financial Performance

05. Banco do Brasil Stock

06. Corporate Governance

6.1 Organizational Structure

6.2 Risk Management

6.3 Regulatory Capital

07. Human Resources

08. Social and Environmental Responsibility

09. Products and Services

9.1 Credit

9.1.1 Individuals

9.1.2 Businesses

9.1.3 Agribusiness

9.1.4 Foreign Trade

9.2 Securities

9.3 Funding

9.4 Asset Management

9.5 Capital Markets

9.6 Insurance, Pension Plans and Annuity Plans

9.7 Cards

10. Banco do Brasil Presence

10.1 Client Base

10.1.1 Retail

10.1.2 Wholesale

10.1.3 Public Sector

10.2 Distribution Channels in Brazil and Abroad

10.3 Technology Structure

11. Market Opinion

12. Awards

13. Banco do Brasil Figures

Distribution Network Abroad

Contact List

03

09

12

16

19

21

22

25

25

26

27

29

29

30

32

34

37

39

40

41

42

43

47

48

48

48

49

50

51

53

55

57

58

61

65

1Banco do Brasil - The Company 2009

Banco do Brasil informs that studies for a potential public offering have been initiated.

Before investing in Banco do Brasil stock , carefully read the Prospectus, especially the section "Risk Factors".

3

1. Economic Environment

During 2009, the signs of mitigation/reversal in the global recessionary environment became more

evident. Although uncertainty concerning the recovery continues, especially in more advanced

countries, this scenario has led to additional favorable impacts on liquidity and risk appetite, providing

significant support for recoveries in stock markets and the prices of various commodities.

In this scenario and reflecting the effectiveness of the countercyclical economic policies adopted

internally, Brazil's economy has shown unequivocal signs of an upturn in the activity level, which

reinforces the markets' awareness of the country's increased resistance to external impacts.

The restoration of international capital flows (though still below pre-crisis levels), reduction in

sovereign risk and prospects for economic growth continued to favor Brazil's attractiveness in terms of

foreign funding inflows, with additional effects on the appreciation in the domestic currency.

Against this backdrop, the rating agency Moody's, corroborating the decisions taken by Standard and

Poor's and Fitch Rating in 2008, upgraded Brazil's domestic and foreign currency ratings, classifying

Brazil as investment grade. For the first time, Brazil was recognized as investment grade by the three

main rating agencies. Moody's also assigned a positive outlook to Brazil, increasing the probability of

further upgrades.

The investment-grade rating basically reflects Brazil's better growth prospects, as shown by recent

economic activity indicators, and the country's consistent macroeconomic policies and resistance to

external shocks.

*To Sept. 2009. Source: Brazilian Geography and Statistics Institute (IBGE)

GDP at current prices Services Industry Agribusiness

2004

1,941

1,049

502

115

3,005

2,147

1,198

539

105

2005

2,370

1,338

586

111

2006

2,661

1,524

636

127

2007

1,706

699

151

2008

2,293

1,355

494

130

2009*

GDP (R$ billion)

Banco do Brasil - The Company 2009


2004 2005 2006 2007 2008 2009

Unemployment Rate*

Salaries*

11.6

9.9 10.09.4

7.9 8.1

2004 2005 2006 2007 2008 2009

Source: *Average in period

Brazilian Geography and Statistics Institute (IBGE)

Source: IBGE *Average of last 12 months

(Brazilian Institute of Geography and Statistics)

93.4

101.0107.5

112.8

120.6 123.2

5

Exchange Rate (R$/US$)*

Inflation, IPCA index* (%)

2004 2005 2006 2007 2008 2009

Source: Brazilian Geography and Statistics Institute (IBGE)*Dollar sell price on last business day of each year

*Annual inflation** Source: Central Bank of Brazil***Source: Brazilian Geography and Statistics Institute (IBGE)

2.6544

2.34072.1380

1.7700

2.3400

1.7412

Inflation Target** IPCA***

2004 2005 2006 2007 2008 2009

3.8

7.6

62,8

118,5

73,8

5.75.5

3.1

4.5 4.5 4.5 4.5

5.9

4.5 4.3


6

Interest Rate (Selic)

Trade Balance, FOB (US$ million)*

Source: Economática

* Amount in periodSource: Secex (Ministry of Development, Industry and Foreign Trade)

17.75 18.00

13.2511.25

13.75

9.2

2004 2005 2006 2007 2008 2009

19.1

16.215.1

11.912.5

8.75

Interest Rate, EOP (%) Interest Rate, Average (%)

33.8

44.946.5

40.0

24.7 25.3

Exports Imports

2004 2005 2006 2007 2008 2009

96.7

62.8

118.5

73.6

137.8

91.3

160.7

120.6

197.9

173.2

153.0

127.6


7

2004 2005 2006 2007 2008 2009

Brazil Sovereign Risk*

Internacional Reserves (US$ billion)

2004 2005 2006 2007 2008 2009

*End of periodSource: Bloomberg

Source: Central Bank of Brazil

383

52.9 53.8

85.8

180.3

206.8

239.1

305

193

222

416

196


8

Foreign Direct Investment (US$ billion)*

Public Sector Net Debt (% GDP) vs. Primary Surplus (% GDP)

*Cumulative in fourth quarter of each yearSource: Central Bank of Brazil


5.8

3.4

6.8 6.6

14.2

8.3

2004 2005 2006 2007 2008 2009

48.2 48.045.9

42.8

37.3

43.0

2004 2005 2006 2007 2008 2009

3.83.9

3.23.4

3.5

2.1

PSND (%) Primary Surplus


9

Banks in Brazil*

Loans vs. GDP (%)*

*Multiple and Commercial BanksSource: Central Bank of BrazilIncludes only multiple and commercial banks authorized to operate by the Central BankPro-forma for the merger of Itaú/Unibanco, Santander/Real, BB/BESC, BB/BEP and BB/Nossa Caixa

* End of periodSource: Central Bank of Brazil

2004 2005 2006 2007 2008 2009

24.5

28.130.2

33.4

39.7

45.0

2004 2005 2006 2007 2008 2009

2. Industry Outlook

163160

158

155153

152


10

Loans by Segment, Free Resources (%)

Main Individual Loan Operations

Source: Central Bank of Brazil* Position at Jan. 2010


2004 2005 2006 2007 2008 2009*

Individuals Businesses

56.4

43.6

52.8 52.1 51.9 54.7 50.6

47.2 47.9 48.1 45.3 49.4

Free Resources (R$ million) 2004 2005 2006 2007 2008 2009

49,356

17,151

38,065

8,027

9,800

33,133

138,561

70,739

31,704

50,685

11,260

10,974

47,073

190,731

88,710

48,149

63,475

13,418

11,760

60,605

237,968

100,928

64,686

81,481

17,150

12,985

40,331

317,561

127,933

78,890

82,433

22,088

16,040

66,903

394,287

159,823

106,173

93,917

26,292

15,790

68,759

470,754

Consumer Finance

Payroll Loans

Vehicle Loans

Credit Cards

Overdraft Facilities

Other

Total


11

Assets, Shareholder´s Equity and BIS Ratio - Brazilian Banks (R$ million)

Source: Central Bank of BrazilPosition at Sept. 2009

Bank Assets Assets Market Share S. Eq. Market ShareShareholders Equity Bis Ratio (%)

669,904,747

592,845,394

428,911,224

341,963,822

327,769,959

107,986,023

3,109,212,000

21.55%

19.07%

13.79%

11.00%

10.54%

3.47%

100.00%

32,682,510

49,76,.907

41,753,751

12,339,456

52,525,986

5,831,561

271,126,167

12.42%

18.35%

15.40%

4.55%

19.37%

2.15%

100

13.29

16.73

17.92

16.08

28.27

13.55

-

Banco do Brasil

Itaú

Bradesco

Caixa Econômica Federal

Santander

HSBC

Total

Mortgage Loans - National Financial System (R$ billion)


2004 2005 2006 2007 2008 2009

25.829.1

89.0

35.7

45.8

63.3

1.3 1.41.5

1.7

2.1

2.9


Contracted volume (R$ billion) %GDP (12 months)

12

3. Banco do Brasil positioning

Profile

Banco do Brasil was the first Bank to operate in Brazil and its stock is the oldest on Brazil's stock

exchange. For over 200 years, the bank has accumulated experience and innovations and has played

an extremely important role in Brazil's history, culture and economy. In 2009, BB also demonstrated its

strength during the crisis by attracting high volumes of funds in Brazil and abroad.

As a major financial conglomerate in Latin America, Banco do Brasil reinforces its sustainable

positioning by aligning financial return with social and environmental responsibility. With massive

investments in technology, 103.9 thousand skilled employees and the constant pursuit of greater

efficiency, BB continues to expand its activities and increase its business generation by exploring the

potential of its franchise.

In 2009, Banco do Brasil consolidated its strategy of growth and expanding its business, including

through mergers and acquisitions:

This strategy has enabled BB to generate higher business volumes, optimize resources and guarantee

leadership in customer service, while increasing its loan offering and consolidating its position as one

of the main players in Brazil's economy.

Banco do Brasil is also developing a plan to expand its operations internationally:

In 2006, BB joined the Novo Mercado special listing segment of the São Paulo Stock Exchange

(Bovespa). Adhering to Novo Mercado standards represents the commitment by the majority

shareholder and the entire board of Banco do Brasil to continue managing the company transparently,

efficiently and profitably in accordance with corporate governance best practices.

Mission: To be the solution in services and financial intermediation, to meet the

expectations of customers and shareholders, to strengthen the commitment between

employees and the Bank, and to contribute towards Brazil development.

BB concluded a strategic partnership with Votorantim Finanças

Banco do Brasil concluded the acquisition of Banco Nossa Caixa.

Since 2009, BB has been conducting its money transfer operations through BB Money

Transfers in the USA

BB is holding conversations to expand its presence in areas such as the USA and

South America

Banco do Brasil launched its first American Depositary Receipts (ADR) Level 1 program

in the U.S. capital markets in December 2009.


Total Assets (R$ billion)

Funding (R$ billion)

* To Sept. 2009.Source: Central Bank of Brazil


2004 2005 2006 2007 2008 2009

160.1168.2

21.9

19.1 19.6 19.821.7

25.8*

208.1

260.6

362.0

498.4

Banco do Brasil numbers

2004 2005 2006 2007 2008 2009

521.3

708.5

367.2

19.0

17.3 16.8 15.6

17.2

21.5*

296.4253,0239.0

13

Market Share % BB

Market Share % BB

CAGR: 24.3 %

CAGR: 25.5 %


14

Demand Deposits (US$ billion)

Loan Portfolio (R$ billion)

*Domestic Loan PortfolioSource: Central Bank of Brazil

29.0

32.9 33.531.9

29.0

31.633.2*

35.8

40.1

51.3 52.0

56.5

2004 2005 2006 2007 2008 2009

88.6

101.8

133.2

160.7

224.8

300.8

2004 2005 2006 2007 2008 2009

15.9 15.316.5 16.0

17.1

20.1*


CAGR: 14.2 %

CAGR: 27.7 %


Market Share % BB

Market Share % BB

CAGR: 5.6%

Branches

Source: Central Bank of Brazil*To Sept. 2009.

2004 2005 2006 2007 2008 2009

3.7

21.6 22.1 21.9 21.622.8

24.4*

3.9 4.0 4.0 4.3

4.9

15

Market Share % BB


16

4. Financial Performance

In 2009, Banco do Brasil recorded net income of R$ 10.1 billion and return on equity of 30.7%, which

corresponds to earnings per share of R$ 3.95. Shareholders' equity increased 20.6% from the same

period in 2008 to R$ 36.1 billion.

Net Income vs. ROE

Net Interest Income (NII) vs. Net Interest Margin (NIM)

3,024

23.026.8

32.1

22.5

32.530.7

4,154

6,044

5,058

8,803

10,148

2004 2005 2006 2007 2008 2009

15,48416,709

18,107

20,807

24,515

33,060

8.48.6

8.17.6

7.06.7

ROE % Net Income (R$ million)

NIM % Net Interest Income (R$ million)

2004 2005 2006 2007 2008 2009


Dividends/Interest on Own Capital (R$ million)

2004 2005 2006 2007 2008 2009

3,522

4,059

2,023

2,418

1,498

954

Shareholders’ Equity (R$ million)

2004 2005 2006 2007 2008 2009

29,937

36,119

24,262

20,758

16,85014,106

Fee Income (R$ million)

2004 2005 2006 2007 2008 2009

11,811

13,511

9,903

8,888

7,6496,607


18

Administrative Expenses (R$ million)

2004 2005 2006 2007 2008 2009

15,358

19,185

13,301

12,87812,25411,243

Efficiency Ratio (%)

2004 2005 2006 2007 2008 2009

45.6

40.7

46.2

47.548.1

54.2

Coverage Ratio (%)

2004 2005 2006 2007 2008 2009

136.2

128.2127.7

112.9

102.393.1


21.5%

2.5%

10.4%65.6% 65.3%

21.8%

2.4%

10.4%

19

5. Banco do Brasil Stock

Banco do Brasil stock ended the year quoted at R$ 29.70, up 117.0% from year-end 2008. This

performance reflects the recovery in world financial markets and the improved prospects for the global

economy.

On December 2, 2009, Banco do Brasil launched a Level 1 American Depositary Receipts (ADR)

program in the United States. The issuance of Level 1 ADRs provides access to the U.S. capital

market, helping reduce investors' risk perception. This issuance confirms the trend of the higher

participation by BB stock abroad, projecting the bank's growth and visibility worldwide.

In Brazil, BB stock was negotiated in all trading sessions on the São Paulo Stock Exchange (Bovespa)

in 2009, with average daily trading volume of R$ 74.9 million in the period. The stock continued to be a

component of various stock indexes: Ibovespa, IBRX50, Ibrx, Special Corporate Governance Stock

Index (IGC), Corporate Sustainability Index (ISE) and Special Tag-Along Stock Index (ITAG). In the

portfolio for the Ibovespa valid from January to April 2010, Banco do Brasil had the 12 highest

weighting.

Ownership Structure

Dec.31 , 2008st Dec.31 , 2009st

National Treasury

Previ

Free Float

BNDESPar

National Treasury

Previ

Free Float

BNDESPar


th

20

In a meeting held on February 18, 2009, the Board of Directors established a 40% payout ratio (the

percentage of earnings distributed to shareholders), fulfilling the policy for payment of dividends and

interest on capital on a quarterly basis.

The chart below shows the performance of the Ibovespa index and Banco do Brasil stock since

January 2009. In this period, BBAS3 gained 117.0%, while the Ibovespa increased 82.7%.

Indicators 2004 2005 2006 2007 2008 2009

1.24

5.80

1.63

7.58

31.5

3.7

4.9

26.0

6.9

2.8

1.71

6.93

1.82

7.40

36.1

4.4

8.6

33.7

6.9

3.4

2.44

8.38

2.50

8.59

40.0

4.6

25.2

52.8

14.8

7.2

2.04

9.80

3.10

14.88

40.0

2.7

96.2

75.3

19.6

9.9

3.44

11.66

1.26

4.28

40.0

9.3

69.7

37.7

21.5

11.3

3.95

14.06

2.11

7.52

40.0

5.3

95.1

76.3

21.8

11.8

Earnings per Share (R$)*

Book Value per Share (R$)*

Price/Book Value*

Price/Earnings*

Payout (%)

Dividend Yield (%)

Average Daily Volume (R$ million)

Market Capitalization (R$ billion)

Free Float

Foreign Capital

Performance of Banco do Brasil Stock vs. Ibovespa, Bradesco and Itau-Unibanco

*Adjusted series considering the stock split (1:3) carried out in the second quarter of 2007.

Banco do Brasil

Ibovespa

Bradesco

Itaú/Unibanco

117.0%

65.6%

66.9%

82.7%


Source: Economática

BBAS3 BBDC4 IbovespaITUB4

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

21

6. Corporate Governance

Banco do Brasil, which joined the Novo Mercado special corporate governance listing segment of the

São Paulo Stock Exchange (Bovespa) in 2006, is committed to transparency, accountability, equity

and social and environmental responsibility, by aligning the organization's management with the

interests of shareholders and society. BB also adopted stricter corporate governance practices, such

as committing to reach a free float of 25% by 2011, which currently stands at 21.8%.

In addition, BB stock is a component of the ITAG Index and IGC Index, which track the performance of

companies with differentiated tag-along rights and corporate governance best practices, respectively.

Banco do Brasil's decisions are taken collectively at all company levels. To involve executives in the

definition and approval of strategies for the company's different businesses, Management draws on

committees, subcommittees and commissions at a strategic level, which imparts agility and security to

the decision-making process.

Market andLiquidy Risk

Market relations

Management Board

Global Risk

Communacation Business

InformationTechnology

Solution forAdministrative

Inquest

Board ofAuditors

Board Of Directors

Economicand Financial

Scenarios

Credit Limit

Resources

Committee

Subcommittee

Comission

Prevetion ofFinancial and

Exchange FraudOperations

Operations

InformationSecurity

EmployeeAssignment

Operational Administrative and

Cost Rationalization

Credit Risk

OperationalRisk

Debureaucratizationand Cost

Rationalization

Intranet INTERNET

WorkAgreement


In 2009, the Bank held 27 meetings with analysts organized by the Capital Market Professionals

and Investors Association (Apimec). It also participated in 76 meetings with domestic investors

and analysts, 9 due diligence processes, 13 conferences and organized 6 conference calls with

analysts and investors.

BB's Investor Relations program was recognized as one of the best among large companies. BB

also provides up-to-date information to shareholders and analysts through its Investor Relations

website (bb.com.br/ri).

22

Banco do Brasil's administration is formed by a Board of Directors, which is advised by the Audit

Committee, and by the Executive Board, which in turn is formed by the Board of Officers (CEO and nine

vice-presidents) and 27 statutory managing directors. The Bank also has a standing Board of Auditors.

The Board of Directors has seven members, who were elected on April 2009 for a unified term of office

extending to 2011. Of the seven members, three were appointed by minority shareholders. A least two

directors on the Board must be independent, in accordance with the regulations of the Novo Mercado

special corporate governance listing segment.

The Shareholders Meeting in April 2009 also elected the five members of the Board of Auditors, two of

whom were appointed by the minority shareholders and three by the controlling shareholder.

6.1 Organizational Structure

Nelson Henrique Barbosa FilhoChairman - Federal Government

Aldemir BendineVice-Chairman - Federal Government

Tarcísio José Massote de GodoyMember - Federal Government

Adriana Queiroz de CarvalhoMember - Federal Government

Henrique JägerMember - Minority Shareholders

Bernardo Gouthier MacedoMember - Minority Shareholders

Sérgio Eduardo Arbulu MendonçaMember - Minority Shareholders

Daniel SigelmannChairman

Marcos Machado GuimarãesMember

Ênio Alexandre Gomes Bezerra da SilvaMember

Eustáquio Wagner Guimarães GomesMember

Pedro Carvalho de MelloMember

Board of Directors Board of Auditors


23

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25

6.2 Risk Managment

6.3 Regulatory Capital

The impacts of the global financial crisis on BB's earnings were moderate, thanks to its

conservative appetite for risk and solid risk governance.

A relevant portion of BB's financial assets are invested in highly liquid Brazilian government bonds.

BB adopts best market practices to develop its own methodologies for rating customer credit risk.

The credit methodologies developed and implemented by the Bank include customer risk analysis

for every corporate and individual customer segment.

BB's risk profile is dominated by credit risk, which is mitigated by the bank's strong track record in

keeping asset quality above the industry average.

BB is perceived by its customers as a safe haven.

Policies for risk measurement and mitigation are approved by the Global Risk Committee, which is

chaired by the CEO, and are documented by the group risk management unit.

Risk management is segregated from the business units.

Risk and concentration policies are specified by the Bank's Board of Directors and by the Global

Risk Committee.

Banco do Brasil works to adjust its processes to Basel II and adopts an advanced approach for

capital allocation.

The implementation of Basel II brought several changes to the capital measurement process in

order to mitigate the risks inherent to banking activities.

In Brazil, Basel II was officially introduced by the Central Bank of Brazil through Release 12,746

dated Dec.9, 2004 and later adjusted through Release 19,028 dated Oct. 29, 2009.

The timetable for implementing capital requirements was divided into stages, and initially

established the use of a standardized approach (determined by the monetary authority) and ended

with the use of advanced models.

Tier I Tier II

17.117.3

15.6 15.215.2

2004 2005 2006 2007 2008 2009

10.6 11.7 11.7 10.7 10.9

4.3

13.7

9.7

4.04.9

5.65.44.6

Bis Ratio %


26

At the end of the year, Banco do Brasil had 103.9 thousand employees, of which 59.3% were male and

40.7% female. This workforce presented the following profile:

BB provided 19.5 hours of training per staff member during the year as part of its training program. In

addition, 5.7 thousand employees were granted academic scholarships for bachelor's degrees, 980 for

post-graduate degrees, MBAs and master's degrees and 248 for language studies.

Worksforce

Age (%) Tenure (%) Education (%)

7. Human Resources

BB Stand -alone BNC BESC / BEP

79,725

83,75182,672 81,855

96,0928

103,971

14,150

34.5%

29.3% 26.5%

28.1%

Up to 5 years

From 6 to 10 years

From 11 to 20 years

Over 20 years

Up to 25 years

From 26 to 35 years

From 36 to 45 years

Over 45 years

48.0%

19.7%

5.8%

21.1%

0.7%30.0%

48.2%

7.9%

Specialization, Master’s Degreeor Doctorate

High School

Elementary School

Bachelor’s Degree

2004 2005 2006 2007 2008 2009

3,148

14,150

86,673


27

8. Social and Environmental Responsibility

Committed to the development of communities and the country, Banco do Brasil integrates the aspects

of sustainability (economic, social and environmental) into its strategic positioning and operational

decisions in order to assure value creation over the long term.

The Bank's engagement with the principles of social and environmental responsibility has always been

part of its business practices and relationship with stakeholders, as the table below shows:

Green Protocol

United Nations Global Pact

BB publicly disclosed its pioneer commitment to develop a Business Agenda 21

Pact to Combat Slave Labor

Equator Principles

BB began to adopt Global Reporting Initiative (GRI) guidelines in its annual report

BB launched its Business Agenda 21

Brazilian Program GHG Protocol

Green Protocol II

BB added to Forum Amazônia Sustentável

BB performs it’s first greenhouse gas emissions inventory

Caring for Climate

1995

2003

2004

2005

2006

2007

2008

2009

BB Social and Environmental Commitments History

BB offers a range of products and services that foster businesses that directly

support the country's sustainable development

The bank provides credit lines and investment funds with environmental

attributes, such as the money market fund BB Referenciado DI Social 200

BB is a component of the Corporate Sustainability Index (ISE)

In 2007, Banco do Brasil became Brazil's first bank to launch "Agenda 21

Empresarial", an agenda of commitments that guides the sustainable

performance of the company. The launch was aligned with the commitment of

nations worldwide to put into practice a plan for sustainability in this century.

BB's Agenda 21 is structured around three dimensions: administrative

practices aimed at social and environmental performance, businesses focused

on sustainable development and private social investment. The commitment to

the development of initiatives in each dimension involves several strategic

business units. For more information on BB's Agenda 21 Empresarial, go to

www.bb.com.br.

When granting loans, BB's responsible credit policy does not permit extending credit to

companies that submit their employees to degrading tasks or companies that have any kind of

involvement with the sexual exploitation of children or the use of child labor. In project finance,

credit assessment is performed based on the Equator Principles.


28

Banco do Brasil also innovated by disclosing on a quarterly basis the highlights of its Social and

Environmental Performance, presenting historical data and analyses that give the reader a better

understanding of how sustainability permeates the company's strategy and management. For more

information go to www.bb.com.br/ri and read Chapter 9 of the MD&A.

An important approach in the area of sustainability is the BB Sustainable Regional Development (DRS)

strategy, which fosters sustainable development in various regions of Brazil, considering their

potential, vocation and characteristics. With the DRS strategy, BB acts not only as a financial

institution, but also as a catalyst to action, encouraging economic and social players to structure urban

and rural activities that generate income for local populations, in partnership with the federal

government. This strategy was recognized in 2009 by the ALIDE Awards for Good Practices in

Development Financing Institutions.

PeriodAgencies

Involved Municipalities

involvedFamilies Attended

Business Plans

in implementationBB´s Programmed

resources R$ million

Business

Accomplished

R$ million

2004

2005

2006

2007

2008

2009

428

1,482

2,502

3,998

4,028

4,073

642

1,503

2,788

4,553

4,787

4,696

16,820

70,577

230,939

725,450

1,211,368

1,094,086

120

375

1,020

2,829

4,679

4,480

48

169

866

3,099

5,466

5,232

14

105

314

714

4,676

7,803

Annual Social Balance Sheet / 2009*

*Annual Social Balance partially disclosed - Ibase Model.


% over NI

1.08% 2.84% 0.18% 0.90% 0.04% 0.00% 0.00% 0.15%

0.07%

1.72%

0.00% 6.99%

% over NI

0.12% 05%

0.00% 0.07% 0.14%

0.01% 0.39% 7.26% 7.65%

% over NI

0.03% 0.00%

0.03%

65,860,662 8,802,868 7,714,757

2008 Value (Thousand reais)

1 - Calculation Base

Net Income (NI)Operating Income (OI)

Gross Payroll (GP)

2 - Internal Social Indicators (Thousand) Value % over GDP % over NI Value (thousand) % over GDP

Food 804,140 7.87% 1.34% 714,507 9.26% Compulsory social contributions 2,512,605 24.60% 4.17% 1,868,537 24.22% Private pension plan (1) 144,316 1.41% 0.24% 117,865 1.53% Health 635,342 6.22% 1.05% 594,826 7.71% Occupational health and safety 27,071 0.27% 0.04% 29,614 0.38% Education 0 0.00% 0.00% 0 0.00% Culture 0 0.00% 0.00% 0 0.00% Professional training and development 96,791 0.95% 0.16% 100,702 1.31% Daycare or Daycare Assistance 51,988 0.51% 0.09% 45,465 0.59%

Profit sharing 1,384,531 13.55% 2.30% 1,134,068 14.70%

Others 0 0.00% 0.00% 0 0.00%

Total - I nternal Social Indicators 5,656,784 55.38% 9.39% 4,605,584 59.70%

3 - External Social Indicators Value (Thousand) % over OI % over NI Value (Thousand) % over OI

Education 20,587 0.20% 0.03% 77,538 0.88% Culture 40,715 0.40% 0.07% 35,067 0.40% 0.Health and sanitation 0 0.00% 0.00% 0 0.00% Sports 63,493 0.63% 0.11% 47,599 0.54% Combat of hunger and food safety 159,532 1.57% 0.26% 91,589 1.04%

Others (Children and Adolescent Funds - FIA) 8,758 0.09% 0.01% 7,145 0.08% Total contributions to society 293,085 2.89% 0.49% 258,938 2.94% Taxes (excluding social contributions) 6,995,957 68.94% 11.62% 4,779,988 54.30%

Total - External Social Indicators 7,289,042 71.83% 12.10% 5,038,926 57.24%

4 - Environmental Indicators Value (Thousand) % over OI % over NI Value (Thousand) % over OI

Investments related to Company production / operation (2) 18,508 0.18% 0.03% 18,296 0.21% Investiments in external programs and/or projects 0

0.00%

0.00%

0

0.00%

Total investmens in the environment 18,508

0.18%

0.03%

18,296

0.21%

60,222,566 10,148,110 10,215,238

2009 Value (Thousand reais)

29

9. Products and Services

The Bank's domestic loan portfolio grew by 35.2% in 2009, outpacing the growth in the financial

system, demonstrating its capacity and efficiency in loan origination. Considering the Bank's total

portfolio (domestic and foreign), growth was 33.8% from 2008.

9.1 Credit

Loan Portfolio (R$ million) 2004 2005 2006 2007 2008 2009

Brazil 79,537 92,612 120,975 149,366 209,693 283,560

. Individuals 16,090 18,386 23,996 31,9 98 48,811 91,791

. Businesses 33,410 38,518 51,916 65,485 97,192 125,336

- SME 13,176 15,436 18,323 24,622 34,9 00 44,920

- Other 20,235 23,082 33,593 40,863 62,292 80,416

. Agribusiness 30,036 35,708 45,063 51,883 63,690 66,434

- Individuals* - - 36,557 40,162 45,202 47,265

- Companies* - - 8,506 11,721 18,487 19,169

. Foreign 9,017 9,177 12,181 11,373 15,115 17,268

Total 88,554 101,789 133,157 160,739 224,808 300,829

Loans Origination R$ million

BB 264,717,859Itaú 171,609,275BRADESCO 141,708,388Santander 112,631,678Caixa Econômica Federal 111,958,070

Position at Sept. 2009Source: Central Bank of Brazil

Loan Portfolio By Client (%)

* Data available since 2006

Individuals Businesses

Agribusiness Foreign

30.5

5.7

22.1

41.7

2004 2005 2006 2007 2008 2009

Credit Risk

1.7

11.6

3.5 4.5

5.7 5.4 6.8

4.6

3.63.7

5.04.7

4.3

Provision Expenses - R$ billion Provision Expenses/Loan Portfolio %


30

9.1.1 Individual

Individuals Loan Portfolio (R$ billion)

Individuals Deliquency (%)

2004

Dec/04

2005

Dec/05

2006

Dec/06

2007

Dec/07

2008

Dec/08

2009

Dec/09

16.1 18.4 24.0

32.0

48.8

91.8

7.6

7.0

8.1

6.3

6.3

6.0

4.8

12.0

13.8

13.0

14.7

13.4

16.4

13.9

10.5

9.6

9.6

8.8

7.8

6.7

6.2

9.9

8.5

12.9

Past due 90 BI*

* Brazilian Banking Industry

Past due 90 BB Past due 15 BI Past due 15 BB


31

Payroll Loans (R$ Billion)

Vehicle Loans

2004 2005 2006 2007 2008 2009*

Market Share % Balance (R$ billion)

1.5 3.8

8.3

11.9

17.6

36.5

1.4

3.6

8.2

2004 2005 2006 2007 2008 2009*

0.2 0.9

3.0

6.7

20.7

13.2

* Includes results from BV and BNC

* Includes results from BV and BNC

The strategic partnership with Banco Votorantin at the start of the year allowed BB to continue

expanding its vehicle loan portfolio


32

9.1.2 Businesses

Businesses Loan Portfolio (R$ billion)

Businesses Deliquency (%)

2004 2005 2006 2007 2008 2009

Other SME

33.6 40.8

62.3

80.4

13.2

33.4 38.551.9

64.4

97.2

125.3

15.418.3

24.6

34.9

44.9

23.120.2

3.8

2.4

2.01.7

2.9

3.4

3.5

4.3

3.2

3.7

5.5

2.01.8

2.7

2.0 1.8

2.42.2

3.7

3.9

2.9

3.7

3.3

4.1

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

Past due 90 BI Past due 90 BB Past due 15 BI Past due 15 BB


33

SME* Working Capital Transactions (R$ billion)

2004 2005 2006 2007 2008 2009

9.1 10.2

12.9

16.9

23.6

31.3

* Small and Micro Enterprises


34

9.1.3 Agribusiness

2004 2005 2006 2007 2008 2009

Banco do Brasil is the leader in agribusiness credit among financial institutions that are members of the

National Rural Credit System, with 59.1% market share at the end of the year. BB is also the main

financial agent of the National Program to Strengthen Family Agriculture (Pronaf), a federal

government initiative to foster the development of family farmers and provide credit facilities to this

segment.

BB's agribusiness loan portfolio represented 22.1% of the entire credit portfolio, with a balance of R$

66.4 billion. The agribusiness loan book comprises 41.4% working capital, 21.7% marketing and

33.1% investment operations, with the following characteristics:

Agribusiness Loan Portfolio (R$ billion)

30.0

35.7

45.0

51.9

63.7

66.4

Agribusinesses Deliquency (%)

1.5

4.0

1.9 1.8

3.22.2

6.1

7.0 7.0

2.0

5.3

7.4

Past Due 90 BB Required Provision/Loan Portofolio

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09


15.819.2

26.1

31.4

41.7

20.122.0

41.9

20.518.6

15.513.2

35

Agribusiness Portfolio by Region Agribusiness Portfolio by Financed Item

Agribusiness Portfolio by Segment (R$ million)

Southeast

% of portfolio: 34.9%


South

9.1%

4.7%

4.7%

Other

55.1%

15.9%

2.3%

3.5%

2.2%

2.5% Poultry

Cattle

Soy

Corn

Sugarcane

Machines and Implements

Coffee

Rice

2004 2005 2006 2007 2008 2009

Investment Capital Working Capital

North


Northeast


Midwest



36

2004 2005 2006 2007 2008 2009

The Bank has mechanisms to mitigate risk in the agribusiness loan portfolio. In the 2009/2010

marketing year, as of December 2009, 66.5% of loan transactions were carried out with Agricultural

Insurance or Proagro (government insurance), amounting to R$ 6.4 billion.

19.9%

13.7%

13.5%

6.9%

46.0%

33.5%

66.5%

MarketingAgricultural Costs InvestmentLivestock Costs Agroindustrial Credit

Insured

Not Insured

Contracted Crop 2009/2010

National Program to Strengthen Family Agriculture (Pronaf)

Agri Insurance

3.6

4.9

894

1,148995 997

865 897

4.8

5.3

6.2

7.8

Number of Contracts (thousand) Contracted Volume (R$ million)


37

Foreign Exchange for Imports

In 2009, BB consolidated its leadership in the export and import market, with market shares of 31.4%

and 25.4% and contracted volumes of US$ 47.1 billion and US$ 34.1 billion, respectively.

Foreign Exchange for Exports

9.1.4 Foreign Trade

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

Market Share %

Market Share %

Contracted Volume (US$ billion)


25.9

34.239.4

51.2 54.247.1

27.2 27.0 26.5 26.628.0

31.4

13.5 15.920.7

26.1

34.5 34.1

23.922.3

23.8 24.2 24.7 25.4


BB is the exclusive financial agent of Proex, the federal government's Export Finance Program, with

financial balances of US$ 278.3 million in the Financing type and US$ 157.8 million in the Equalization

type, supporting the export market with a total of US$ 436.1 million. BB is also the main player for the

Exim program of the Brazilian Development Bank (BNDES), reaching US$ 1.8 billion in the year.

38

ACC/ACE

PROEX

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

Number of Contracts (thousand)

Supported Companies


Contracted Volume - Financing (US$ million)

9.0

30,37032,116

29,21127,185

20,557

16,560

11.9 12.1

15.1

13.0

10.9

409452

337 358 359400

286.0

428.9

382.9

331.6 335.0

278.3


Banco do Brasil's securities portfolio reached R$ 124.3 billion, an increase of 43.1% from the same

period in 2008. Note that derivative financial instruments represent 1.4% of total securities portfolio, or

R$ 1.5 billion.

39

9.2 Securities

Balance 2004 2005 2006 2007 2008 2009

13,163

32,790

26,951

581

73,485

3,077

37,832

25,275

287

66,470

7,494

40,641

24,409

564

73,108

19,112

38,109

16,830

1,150

75,201

26,136

38,374

20,123

2,276

86,909

38,274

62,161

22,439

1,463

124,337

Available for trade

Available for sale

Held to maturity

Derivatives

Total

Securities Portfolio (R$ million)

Securities Portfolio by Maturity, Market Value


Balance Balance Balance BalanceShare %

Up to 1 year 1 to 5 years 5 to 10 years Over 10 years R$ million

Share % Share % Share %

21,348

17,116

24,057

30,945

27,232

29,640

29.6

26.0

33.2

41.8

32.2

24.2

44,187

41,900

42,039

38,197

39,465

70,531

61.2

63.7

58.0

51.6

46.6

57.5

6,233

6,189

5,164

3,518

12,543

15,720

8.6

9.4

7.1

4.7

14.8

12.8

441

567

1,217

1,413

5,373

6,823

0.6

0.9

1.7

1.9

6.3

5.6

Dec/04

Dec/05

Dec/06

Dec/07

Dec/08

Dec/09

Total

72,208

65,771

72,476

74,073

84,612

122,715

Banco do Brasil's credibility and broad network allowed it to maintain its leadership position in funding

operations, ending 2009 with a balance of R$ 498.4 billion, up 37.7% from the same period in 2008.

40

2004 2005 2006 2007 2008 2009

9.3 Funding

Time Deposits (R$ billion)

11.3%

2.3%

0.05%

15.2%

38.8%

Funding Breakdown Funding Costs (2009)

Demand Deposits

Time Deposits

Savings Deposits

Interbank Deposits

32.3%

Money Market Borrowing

Investment Deposits

49.7

63.576.9

85.5

149.6

193.5


0

Cost (R$ billion)

as % ofSELIC1,2

Core Deposits

Average Balance (R$ billion)

Time Deposits 4

Savings

Interbank Deposits 5

Demand Deposits 3

Total Deposits

Notes: 1 Assuming a cumulative Selic rate in 2009 of 9.9%2 Calculated based on the average monthly balance3 Includes deposits for investment4 Special Deposits and FAT 5 Costs do not reflect the effects of BRL appreciation on foreign liabilities 6 Core deposits = demand deposits + savings + special deposits + judicial deposits

Special Deposits

Judicial Deposits

Others

Total Funding

6

48.4

68.4

179.8

14.5

50.7

114.6

10.3

182.0

306.9

115.8

422.7

0.0

4.4

13.5

0.9

3.3

9.3

0.8

8.6

18.6

10.6

29.3

0.0%

64.9%

75.4%

63.0%

65.3%

81.4%

77.3%

47.6%

61.2%

92.5%

69.8%

Open Market

BB Administração de Ativos - Distribuidora de Títulos e Valores Mobiliários (BB DTVM), a wholly

owned subsidiary of Banco do Brasil, increased its market share at year-end to 21.1%, from 20.7% at

year-end 2008, according to the Brazilian Financial and Capital Markets Association (Anbima).

Meanwhile, the balance of assets under management increased to R$ 306.7 billion, up 24.5% from

year-end 2008, composed of R$ 294.6 billion in investment funds and R$ 12.1 billion in managed

portfolios.

41

2004 2005 2006 2007 2008 2009

9.4 Asset Management

Asset Management

*Excludes BV

Investment Funds and Managed Portfolios by Investment Profile / (%)Client

124.0

153.6

182.7

220.1246.3

306.7*

21.1

19.720.2

19.118.3

20.7

16.9%

15.3%

12.9%

54.9%

Fixed Income

Others

Multi-strategy

Equities

24.1%

24.3%

37.7%

4.3%

9.6%

Institutional

Wholesale

Foreign Investor

Government

Retail


Market Share (%) Total Assets (R$ billion)

42

Banco do Brasil operates in the domestic capital market through BB Banco de Investimento S.A. (BB-

BI). In 2009:

BB-BI arranged 32 fixed-income issues worth a total of R$10.3 billion.

In the equity market, BB-BI acted as lead manager in 4 issues that raised a combined R$ 16.2

billion and acted as co-manager on 6 issues worth R$18.7 billion.

Lead manager of the Banco Nossa Caixa SA stock tender offer, which involved R$ 2.3 billion or

30,074,154 shares, representing 97.73% of the total offering.

Lead manager and distributor of Additional Construction Potential Certificates, holding 5

auctions that raised a combined R$ 444.9 million in funds for the Municipality of Sao Paulo in

the Faria Lima and Agua Espraiada Urban Projects Consortium. BB-BI is the only institution

that distributes and coordinates this type of operation in Brazil's capital markets.

Banco do Brasil took part in the public offering of stock in Cielo (formerly Visanet) as selling

shareholder and manager. With the sale of part of its share ownership position, BB-BI's interest

in Cielo went from 31.6% to 23.5%, generating proceeds of US$ 1.6 billion. Total proceeds

from the issue was over R$ 8 billion, making it one of the biggest deals in 2009.

9.5 Capital Markets

Private equity industry BB acts through BB-BI to provide economic and financial advisory

services to various private-equity funds that observe good social and environmental

responsibility precepts, such as:

FIP Brazil Corporate Governance: R$ 600 million

- Brazil FIP Sustainability: R$ 410 million

FIP Brazil Internationalization of Companies: R$ 600 million.

International capital markets

BB, through its brokerage firms located abroad BB Securities Ltd (London) and Banco do Brasil

Securities LLC (New York), took part in 16 of Brazil's 32 fixed-income issuances, including for

Petrobras, Votorantim, Odebrecht, as well as BB itself, arranging a combined total of over US$

25.7 billion.

Custody of assets in the domestic market: Third place in the Anbima ranking, with 25.2%

market share.

Stock bookkeeping: The Bank paid R$ 26 billion in 2009 to the shareholders of 18 companies

with equity bases managed by BB.

Of the US$ 22.7 billion in offshore funding in the period, we highlight the US$ 1.5 billion raised

through the issue of hybrid capital and debt instruments in the form of perpetual bonds that are

eligible as Tier 1 capital, making it the largest debt issue in BB's history.


Insurance Income

* The Insurance Ratio indicates the share of income from the Insurance, Pension Plans and annuity plans results in the conglomerate's overall income.

2004 2005 2006 2007 2008 2009

43

In October 2009, BB implemented a program to restructure its operations in the insurance segment.

Two subsidiaries were set up: BB Seguros Participações S.A. (BB Seguros) and BB Aliança

Participações S.A. (BB Aliança).

In parallel, BB is holding negotiations with Sul América S.A., the Spanish Insurance Group MAPFRE,

IRB-Brasil Re and Grupo Icatu Hartford in order to advance its strategy of increasing the contribution

from the insurance, annuity plans and pension plan businesses to its income.

9.6 Insurance, Pension Plans and Annuity Plans

BB & Mapfre

IN; Bradesco,Itaú and Others

501.0 617.6 672 758.5 992.2

3,441 3,665

5,880

6,685

8,506

16.8%

11.7%11.3%11.4%

14.6%

Insurance Ratio* (%) Insurance Income (R$ million) Recurring Income (R$ million)


The insurance, pension and annuity plans businesses contributed R$ 992.2 million to the overall net

income of Banco do Brasil in 2009, up 30.8% from 2008.

Brasil Veiculos recorded net income of R$ 53.5 million in the year, with return on average equity

of 17.2%

Ended the year with market share of 7.3% and ranked 5 in the market

Supported by strong customer loyalty, the retention index ended the year at 82.7%

The portfolio reached R$ 1.3 million in retained premiums in the year

Auto Insurance

Aliança do Brasil's life insurance portfolio reached R$ 1.9 million in retained premiums

With market share of 51.4%, Aliança do Brasil is Brazil's largest rural insurer

Net profit of R$ 316.0 million in 2009, for return on average equity of 66.3% in the year

Life Insurance

2004 2005 2006 2007 2008 2009

238.7

318.5

367.0

448.7

593.7

665.3

971

578625 676 747 807

Managed portfolio (R$ million)Vehicles Insured (thousand)

44 Banco do Brasil - The Company 2009

th

Health Insurance

Brasilsaúde's health insurance portfolio reached R$ 206.2 million in retained premiums

105 thousand members at year-end 2009, with a focus on the corporate segment

Health insurance portfolio ended December with a financial balance of R$ 55.4 million

BB also has BB Previdência, a multi-sponsored pension fund created in 1994 to institute and

manage private pension plans (annuity or income)

Ended 2009 with equity of R$ 9.2 billion, and more than 1.3 thousand active participants

Brasilprev ended the first six months of 2009 with net income of R$ 257.9 million, with return on

average equity of 55.1%

Market share in private pension plans of 16.1%, with financial income of R$ 6.2 billion in the first

six months

Brasilprev strengthened its sales team by using agents in the retail segment

2004 2005 2006 2007 2008 2009

Lives Insured (thousand)

BB Previdência

Pension Fund

1,351 1,417 1,748 1,791

2,105

2,866

680.6 717.1

820.1

984.6

1,139.4

1,436.7

Managed portfolio (R$ million)


Brasilcap maintained its leadership with 24.1% market share in provisions and 22.6% in

revenue

Payment of R$ 17.3 million in prizes, with 6,900 winning certificates

In the first half, Brasilcap recorded net profit of R$ 85.1 million, with annualized return on

average equity of 45.2%

Capitalization (Annuity Plans)

46

Managed portfolio (R$ million)Number of Plans (Thousand)

2004 2005 2006 2007 2008 2009

2,264

2,875 2,7882,667

3,267

3,807

2,792 2,949 2,851 2,814

4,004

7,712


Pension Fund

Managed portfolio (R$ million)Active Participants (Thousand)

2004 2005 2006 2007 2008 2009

7,781

1,3651,576

1,7562,062

2,598

3,197

9,65912,473

16,189

20,428

26,954

47

Revenue

9.7 Cards

Credit and debit cards help increase customer loyalty, while lowering costs and generating loans with

higher spreads. BB expanded its market share in card revenue from 17.6 % in December 2008 to

18.7% in December 2009.

Offering services such as bill payment, credit for farmers, foreign trade and micro and small

enterprises, revenue from credit cards and debit cards reached R$ 88.6 billion in 2009, up 33.9% from

2008. With this performance, BB is the leader in sales of Visa cards and in debit card revenue.

Banco do Brasil ended the year with a base of 28.0 million credit cards and 59.3 million debit cards. Fee

income from cards totaled R$ 2.4 billion in 2009, 17.2% more than in 2008, which represents 17.7% of

BB's overall fee income.

2004 2005 2006 2007 2008 2009

Debit Cards

24.8

30.3

38.6

50.5

66.2

88.6

34.3

41.3

49.355.2

68.5

78.1

87.3

40.041.1

47.2

52.7

59.3

6.99.3

14.1

21.3

25.428.0

25.4

Credit Cards


48

10.1 Client Base

10.1.1 – Retail

To assure specialized and efficient service, customers are targeted by income, profile, investments

and relationship with the institution. Banco do Brasil has adopted a segmentation model to improve the

management of its customer base and to gain a better understanding of the specific needs of each

company.

10. Banco do Brasil Presence

Client Base and Distribution Channels

Characteristics Benefits

Wholesale

Retail

Wholesale

Public Sector

52.6 million clients17,929 points of service§§

§§

§§

§§

§

§§

§§§

§§§

§§§

Large deposit baseLarge credit base

42.4 million clients

Leader in trade financeOne of the leaders in

underwriting of local debt

Official bank of 13 statesJudicial depositsBNDES partnership

Low Funding CostsPayroll Loans

Consumer FinanceDatabase

Client generationBusiness generationPayroll loans generation

Payroll loansConsumer FinanceCorporate & SMEs

The Retail segment is composed of individuals and small and micro enterprises (SMEs).

Consumer finance is the main product targeting individuals, with a portfolio of R$ 49.2 billion at

year-end 2009, up 185.9% from a year earlier. This strong growth was due to the merger of the

loan portfolios of Banco Nossa Caixa and Banco Votorantim.

Payroll loans are responsible for 39.8% of the individuals loan portfolio.


49

10.1.2 Wholesale

The Wholesale segment offers products targeting midsized and large companies and

corporate customers.

Working capital lines for midsized and large companies and corporate clients reached R$ 54.9

billion, up 30.6% from 2008.

In 2009, investment lines reached a balance of R$ 10.7 billion, growing 20.8% from 2008.

BB's investment line drawing on BNDES funds reached a balance of R$ 3.1 billion at year-end

2009, up 25.1% from a year earlier.

Banco do Brasil has adopted a segmentation model to improve the management of its

customer base and gain a better understanding of the specific needs of each company.

Revenuesup to R$ 500 thousand/year

Revenues

RevenuesMedium Large

Corporate

Industry: up to R$ 10 millionCommerce: up tp R$ 15 millionService: up to R$ 15 millionCooperatives and Associations: up to R$ 10 million

Medium and Large-sized Companies

Small

Enterprises

Corporate

MicroEnterprises

Industry: up to R$ 20 millionCommerce: up to R$ 45 millionService: up to R$ 25 million

Industry: up to R$ 90 millionCommerce: up to R$ 150 millionService: up to R$ 150 million

Industry: over to R$ 90 millionCommerce: over to R$ 150 millionService: over to R$ 150 million

Whole

sale

Reta

il


50

10.1.3 Public Sector

Banco do Brasil is one of the government's main partners in implementing policies, programs and

projects focused on regional and national development. It also develops solutions to meet specific

needs in the public sector and its entire network.

BB has the largest electronic bidding system used by the public sector for public tenders. In

2009, more than 52,500 electronic bids were accepted

Over R$ 15.2 million contracted through electronic bids

Banco do Brasil is the exclusive processor of 48 thousand payroll accounts, which represents

an important instrument for gaining the loyalty of customers in the individuals segment. In 2009,

BB provided services to 10.1 million civil servants, making it the leader in this market

Drawing on the Constitutional Fund to Develop the Midwest (FCO), BB made available R$ 3.2

billion during the year. It also provided R$ 2.2 billion in the year through the Worker Assistance

Fund (FAT).


51

10.2 Distribution Channels in Brazil and abroad

At year-end 2009, Banco do Brasil's own service network in Brazil comprised 17,900 service points,

which includes the distribution network of Nossa Caixa. This network is segmented in accordance with

the markets defined by the Bank (Retail, Wholesale, Government and Private Banking) and covers the

entire country through 3.5 thousand municipalities. The number of bank branches reached 4.9

thousand in the period.

North

5.2%

20,7%

8.4%

43,6%

22,1%

Retail 247

Wholesale 2

Government 7

Midwest

Retail 395

Wholesale 5

Government 5

South

Southeast

Northeast

Private Banking 2

Retail

Wholesale 5

Government

Private Banking

Retail 997

Wholesale 22

Government 3

Private Banking 12

Retail 2,067

Wholesale 46

Government 5

Private Banking 42

Retail 1,001

Wholesale 7

Government 9

Private Banking 10

13

Points of Service 2004 2005 2006 2007 2008 2009

Others * 10,728 10,910 11,144 11,289 11,622 13,032

Branches 3,722 3,894 3,969 4,008 4,342 4,897

Total 14,450 14,804 15,113 15,297 15,964 17,929

* Others include the following Points of Service:PAA – Advanced Service Post: points of service located in cities without bank branches, with small staffs and automated teller machines;PAB – Banking Service Post: unit located on the premises of companies or government offices, which requires one employee and automated teller machines; PAE – Electronic Service Post: structure exclusively involves automated services; SAA – Self-Service Area: ATMs installed in the main areas of the branches;PAP – Payment and Collection Post: located primarily in municipal government offices for making receipts and payments, with services provided by employees and ATMs;QSQ – Kiosk: located in commercial establishments, providing automated services.


52

When delivering services to individuals, emphasis is placed on the bank agent network that serves

BB's clients as a complementary distribution channel. This type of partnership does not use the bank's

physical infrastructure and provides additional points of service that enable the bank to reach

additional client segments, expand its presence and generate cost savings.

BB is based in 23 countries. This network comprises 13 branches, 8 sub-branches, 1 business unit, 11

representative offices, 7 subsidiaries, 4 associated subsidiaries and 1 shared services unit. BB also is

supported by 1.3 thousand correspondent banks in 144 countries.

Number of bank agents (thousand)

2004 2005 2006 2007 2008 2009

2,260

1,6941,862

3,067

5,7025,335

Branches Sub-Branches

Representative Offices Subsidiaries

Assunción

Buenos Aires

Frankfurt

Grand Cayman

La Paz

London

Madrid

Miami

Milan

New York

Paris

Santiago

Tokyo

Rome

Ciudad del Este

Gifu

Gunma

Hamamatsu

Ibaraki

Nagano

Nagoia

Santa Cruz de La Sierra

Caracas

Mexico City

Dubai

Hong Kong

Lima

Luanda

Montevideo

Panama

Seul

Washington

Shanghai

Banco do Brasil AG (Vienna)

Banco do York)Brasil Securities LLC (New

BB Leasing Company Ltd (Grand Cayman)

BB Money Transfers, Inc. (New York)

BB USA Holding Company, Inc. (New York)

Brasilian American Merchant Bank (Grand Cayman)

BB Securities Ltd. (London)

Banco do Brasil AG - Cascais

Banco do Brasil AG - Marquês de Pombal

Banco do Brasil AG - Parque das Nações

Banco do Brasil AG - Porto

Business Unit

Banco do Brasil USA Servicing Center - Orlando

Shared Services Unit

Associated Subsidiaries


53

BB uses its IT infrastructure to increase convenience and security for customers when accessing their

account, offering complementary channels such as Internet Banking, Financial Manager (an Internet

banking tool for businesses), POS equipment, services via telephone and fax, and mobile banking

(WAP). BB also has the largest ATM network in Latin America, with 45.4 thousand machines, which

handle 39.6% of all transactions carried out by Banco do Brasil customers.

Transactions via Automated Channels (%)

Breakdown of Transactions (%)

2004 2005 2006 2007 2008 2009

10.3 Technology Structure

88.4

89.2

90.0

91.391.1

92.0

39.6% 40.6%

15.4% 14.3%

19.3% 19.3%

8.0% 8.9%

11.2% 10.9%

6.4% 6.1%

ATM Internet Banking - Individuals

Internet Banking - Businesses Cashier

POS Others

2009 2008


54

At year-end 2009, BB had more than 1.1 million clients registered to use mobile banking services, with

12.1 million transactions in the period. Moreover, 9.2 million clients used the internet banking channel.

Around 34.7% of all self-service transactions in the period were carried out over the Internet.

The bank, in partnership with Visa, offers with Visa Mobile Pay technology in Latin America, which

allows BB clients to pay for purchases using their mobile phones. This technology, combined with the

mobile banking services already offered, confirms the Bank's strategy to maintain the leadership in

banking technologies.

Number of ATMs

Internet Registered Clients (million)

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

39,015

40,191

39,66439,279

39,714

45,442

6.9

7.98.2

8.5 8.6

9.3


55

Global RatingsBranches

Individual

Short-term - Local Currency

Long-Term - Local Currency

Short-Term - Foreign Currency

Long Term - Foreign Currency

Long Term - Local Currency

Long Term - Foreign Currency

Financial Strength

Short-Term - Local Currency

Short-Term - Foreign Currency

Long-Term Debt - Foreign Currency

Long-Term Deposits - Local Currency

Long-Term Deposits - Foreign Currency

Short-Term

Long-Term

Short-Term

Long-Term

Standart & Poor´s

Moody´s

National Ratings

Fitch Ratings

Moody´s

Rating

Rating

Rating

Rating

Rating

C/D

F3

BBB-

F3

BBB-

BBB-

BBB-

C+

P-1

NP

Baa3

A2

Baa3

F1+(bra)

AA+(bra)

BR-1

Aaa.Br

11. Market Opinion


56

Market analysts are independent professionals without ties to Banco do Brasil.

The main institutions that express opinions about BBAS3 are:

Main Analysts

In Brazil

BES SecuritiesBanif Securities

Bradesco CorretoraItaú SecuritiesCredit Suisse

Goldman SachsBTG Pactual

Barclays CapitalMerrill Lynch

Fator

From Abroad

CitigroupDeutsche Bank

HSBCJP Morgan

Morgan StanleySantander


57

Honorable mention in the Grand Prix of Investor Relations in the categories "Best Investor

Relations Program" and "Best Meeting with the Analyst Community" sponsored by IR

Magazine Awards Brazil 2009.

Ranked 2 in the "Best Company for Shareholders" sponsored by Capital Aberto

magazine.

" Best Investor Relations Executive Award" sponsored by the IR Magazine Awards Brazil 2009.

" Chief Information Officer of the Year" from e-Finance 2009.

Recognized by the Gender Equity Seal - 2 Edition, an initiative by the federal government's

Special Women's Policies Department.

Winner of the ALIDE Awards for Good Practices at Development Financing Institutions for the

DRS Business Strategy.

One of the three finalists in the Financial Times Award for Sustainable Finance 2009,

"Sustainable Bank in Emerging Markets" category. The award received 165 entries

representing the experiences of 117 institutions from 42 countries.

Winner for the third year running of the 2008 Merchant Merit Award, in the category Services,

Segment Commercial Bank.

Special Highlight in Foreign Trade Award sponsored by the Brazilian Foreign Trade

Association.

One of the world's four banks certified by the Society for Worldwide Interbank Financial

Telecommunications (Swift) to use Workers' Remittance V1.0 - an electronic solution for

international transfers among individuals.

Acknowledged as the first retail bank in the Americas and Southern Hemisphere to obtain ISO

20000 quality norm for IT service management for electronic clearing of checks in the national

financial system.

Recognized as one of "The Most Admired Companies in Brazil 2009" in agribusiness, by Carta

Capital magazine.

The BB (São Paulo) Call Center was named "The Best Call Center to Work At", based on a

survey conducted by Hewitt Associates with Consumidor Moderno magazine.

12. Awards


nd

nd

13. Banco do Brasil Figures

Balance Sheet Items

2004 2005 2006 2007

Assets 239,014

252,977

296,356

367,210

Available funds

15,494

5,828

4,749

4,352

Short-term interbank investments 16,453 28,996 29,088 51,124

Securities 73,485 66,470 73,108 75,201

Securities available for trade

13,163

3,077

7,494

19,112

Securities available for sale 32,790

37,832

40,641

38,109

Securities held to maturity 26,951 25,275 24,409 16,830

Financial derivatives 581 287 564 1,150

Interbank accounts 22,106 24,404 28,180 33,445

Intrabank accounts

147

121

136

188

Loans and Leasing 74,823 85,942 113,858 138,817

Public sector

4,161

3,730

4,384

2,472

Private sector

75,773

88,551

117,840

146,324

(Allowance for loan losses)

(5,110)

(6,339)

(8,366)

(9,980)

Leasing

20

20

11

32

Other receivables

31,198

35,108

40,482

45,423

Tax Credit 8,396 6,687 8,604 13,826

Other assets

228 509 951 2,865

239,014 252,977 296,356 367,210

Deposits 115,532 137,658 158,841 188,282

Demand deposits 28,991 35,802 40,059 51,311

Savings deposits

31,069

32,844

36,714

45,839

Interbank deposits

5,768

5,383

4,878

5,144

Time deposits

49,665

63,495

76,900

85,520

Investment deposits

38

134

289

468

Money market borrowing

44,527

30,508

49,283

72,270

Funds from acceptances and securities placed 776 3,166 2,304 1,297

Interbank accounts 6 980 1,166 12

Intrabank accounts

1,725

1,973

2,397

2,428

Borrowing

16,565

4,858

3,737

2,833

Foreign borrowing

16,565

4,858

3,737

2,833

10,611

13,370

14,335

17,487

Foreign onlending 2 - - -

Financial derivatives 523 571 3,511 1,947

Other accounts payable

34,508

42,918

39,895

46,808

FCO (Subordinated Debt)

6,833

7,840

8,995

10,012

Unearned income 134 125 129 123

Shareholders’ Equity 14,106 16,850 20,758 24,262

Liabilities and Shareholders' Equity

Domestic onlending – official institutions

Permanent assets 5,059

5,580

5,794

6,304

-

2008 2009

521,273 708,549

7,843

168,398

124,337

38,274

62,161

22,439

1,463

26,592

295

261,783

5,667

273,801

(17,685)

4,701

95,233

21,910

2,358

17,010

708,549

337,584

56,459

75,742

11,619

193,518

229

160,821

7,362

21

3,229

6,370

6,370

31,390

99

4,724

120,848

18,553

-

36,119

5,545

119,408

86,909 26,136

38,374

20,123 2,276

21,287

228

190,882

12,471

191,589

(13,179)

2,968

83,279

16,499

1,256

9,512

521,273

270,841

51,949

54,965

14,065

149,618

243

91,130

3,479

21

2,496

7,627

7,627

22,436

98

3,895

89,312

11,772

-

29,937


59

Income Statement 2004 2005 2006 2007

Financial Intermediation Income 30,572 33,065 36,787 40,274

Loans 17,086 19,200 21,613 25,261

Leasing 89 131 173 193

Securities 11,308 12,419 13,484 12,632

Financial Derivatives (318) (385) (635) 175

Foreign Exchange Portfolio 1,095 11 539 396

Compulsory Investments

Financial Income from Insur., Pension & Annuity. Op.

Income from Insur., Pension & Annuity. Op.

1,313

- - - - 324.5

- - - - 892.4

- - - - 0.04 (0.59)

493.8

1,574.1

1,689 1,612 1,616

Financial Intermediation Expenses (20,364) (22,255) (25,978) (25,119)

Money Market Funds (12,978) (15,246) (16,989) (17,797)

Borrowing, Assignments and Onlending (2,865) (1,602) (1,850) (1,645)

Allowance for Loan Losses (4,521) (5,407) (7,140) (5,677)

Gross Income from Financial Intermediation 10,208 10,809 10,808 15,155

Other Operating Income (Expenses) (5,601) (3,779) (4,612) (7,881)

Service Revenues 6,607 7,648 8.887 9,902

Personnel Expenses (7,096) (7,473) (7,871) (9,161)

Other Administrative Expenses (5,466) (5,670) (5,873) (6,735)

Taxes (1,469) (1,721) (1,825) (2,064)

Equity Int. in the results of Subs, and Affil 46 (67) 288 154

Other Operating Revenues 5,824 7,623 5,138 5,024

Other Operating Expenses (4,048) (4,120) (3,356) (5,000)

Operating Income 4,607 7,030 6,197 7,273

Non - Operating Income 130 210 120 281

Income before Taxes 4,738 7,241 6,316 7,554

Income and Social Contribution Taxes (1,340) (2,554) (504) (1,847)

Statutory Profit Sharing (373) (533) (777) (649)

Net Income

Corporate Profit Sharing

3,024 4,154 6,044 5,058

2008 2009

55,641

33,221

314

20,692

(1,283)

464

1,910

(42,822)

(25,532)

(8,685)

(8,606)

12,819

(1,150)

9,771

(8,870)

(7,917)

(2,635)

2,285

11,782

(7,605)

11,669

413

12,082

(2,145)

(1,134)

8,803

63,285

40,515

647

21,350

(1,223)

686

816

(45,052)

(30,146)

(2,510)

(12,396)

18,233

(4,641)

10,172

(11,838)

(11,212)

(3,333)

1,574

16,974

(9,327)

13,592

1,844

15,435

(3,903)

(1,385)

10,148


60

Indicators (Income Statement with Reallocations) 2004 2005 2006 2007

Profitability

Earnings per Share (R$)* 1.24 1.71 2.44 2.04

Recuring ROE 22.8 22.2 19.5 26.1

ROA 1.2 1.4 1.3 1.7

NIM (%) 8.4 8.6 8.1 7.6

Productivity

Efficiency (%) 54.2 48.1 47.5 46.2

Service Income / Personnel Expenses (%)

93.1 102.3

112.9

127.7

Service Income / Administrative Expenses (%) 53.1 58.0 64.3 69.3

Personnel Expenses per Employee (R$) 69,563 72,616

78,154

101,396

(Employees + Interns) / (Branches + PAA + PAB) 16.8 17.5

17.2

16.7

2008 2009

3.44

24.7

2.0

7.0

45.6

136.2

73.5

93,660

16.4

Loan Portfolio Quality

Allowance / Loan Portfolio (%) 6.1 6.6 6.5 6.4

Allowance / Ratings E + F + G + H (%)

99.5 109.2

110.5

111.7

Capital Structure

Leverage (x )

16.9 15.0

14.3

14.7

BIS Ratio (%) 15.2 17.1 17.3 15.6

Capital Market

Price / Earnings (12 months) 8.59 8.03 8.74 14.88

Price / Book Value 1.84 2.00 2.50 3.10

Market Capitalization (R$ million) 25,979 33,733 52,820 75,269

Book Value per Share (R$)* 5.80 6.93 8.38 9.80

6.1

107.5

17.4

15.2

4.28

1.26

37,701

11.66

3.95

25.8

1.6

6.7

40.7

128.2

68.6

108,140

16.8

6.2

114.5

19.6

13.7

7.52

2.11

76,291

14.06

* BB shares were traded per lot of one thousand shares until January 2004.


61

Distribution Network Abroad

Branches


Argentina - Buenos Aires Calle San Martin 323, Piso 2 Caixa de Correio 2684 – MicrocentroC10004 AAG - Buenos Aires – ArgentinaPhone: 54 + 11 + [email protected]

Cayman Islands - Grand Cayman Elizabethan Square, Phase III Building 4th floor, Sheden Road George Town PO Box 1360GT Grand Cayman – Cayman IslandsPhone: 1 + 345 + [email protected]

England - London 34, King Street EC2V 8ESLondon – EnglandPhone: 44 + 207 + [email protected]

Germany - Frankfurt Eschersheimer Landstrasse, 5560322 - Frankfurt – GermanyPhone: 49 + 69 + [email protected]

Japan - Tokyo New Kokusai Building 3-4-1 Marunouchi - Chiyoda ku100-0005 – Tokyo - JapanPhone: 81 + 3 + [email protected]

Spain - Madrid Calle Jose Ortega y Gasset, 29 - 1º piso, Edifício Beatriz28006 - Madrid – SpainPhone: 34 + 91 + [email protected]

Bolivia - La Paz Avenida 16 de Julio, 1642 Caixa de Correio 1650 - El Prado - Central La Paz – BoliviaPhone: 59 + 12 + [email protected]

Chile - Santiago Avenida Apoquindo, 3001, 1º andar Las Condes06760-342 Santiago – ChilePhone: 56 + 2 + [email protected]

France - Paris 29, Avenue Kleber, 16 Arrondisement 75116 - Paris – FrancePhone: 33 + 1 + [email protected]

Italy - Milan Piazza Castello, 1, 3º andar - Centro20121 - Milan – ItalyPhone: 39 + 02 + [email protected]

Paraguay - Asuncion Calle Oliva y Nuestra Señora de La Assunción Centro Cassilla de correo 667 Paraguay - Asuncion Phone: 595 + [email protected]

USA - New York 600 Fifth Avenue, Third floor 10020 – New York (NY) – USAPhone: 1 + 212 + [email protected]

USA - Miami 2, South Biscayne Boulevard - One Biscayne Tower, Suite 3870 – Downtown 33131 - Miami (FL) – USAPhone: 1 + 786 + [email protected]


Representative Offices

BB Securities Ltd. / London – England7th Floor, 16 St. Martins Le Grand EC1A 4NA - London – EnglandPhone: 44 + 207 + [email protected]

Brazilian American Merchant Bank / Grand Cayman – Cayman IslandsAddress: C/O International Division - Gered/Diope - SBS Qd. 01, Lote 32 Ed. Sede III do BB - 13º andarBrasília (DF) - Brazil CEP: 70073-901Phone: 61 + [email protected]

Venezuela - Caracas Av. Francisco de Miranda Ed. Centro Lido - Torre A - Piso 9 Oficina 93A - El Rosal 1067-A Caracas – VenezuelaPhone: 58 + 212 + [email protected]

United Arab Emirates – DubaiLevel 42, Emirates Towers, Sheikh Zayed Road 31303 - Dubai - United Arab EmiratesPhone: 97 + 1 + [email protected]

Peru – LimaAvenida Camino Real 348 - Piso 9 Torre El Pilar - San IsidroLima – PeruPhone: 511 + [email protected]

Uruguay – MontevideuAv. Dr. Luis Alberto de Herrera, 1248 Complejo WTC - Torre II - Oficina 314 - Buceo 11300-000 - Montevideo – UruguayPhone: 598 + 2 + [email protected]

BB USA Holding Company, Inc. / New York - United States709 Westchester Avenue, 1 floor 10604 - White Plains (NY) – USAPhone: 1 + 212 + [email protected]

Mexico City – MexicoCalle Campos Elíseos, 345 - Piso 6 Edifício Omega Colônia Chapultepec - Polanco11560 - Mexico City (DF) – MéxicoPhone: 52 + 55 + [email protected]

China - Hong KongUnit 1305, 13th Floor, Shanghai Kerry Centre, 1515 Nanjing Road West 200040 - Shanghai - China Phone: 85 + 2 + [email protected]

Angola – LuandaBela Business Park, Edifício Empresarial Malange, Sala 503-A, Bairro Talatona Luanda – AngolaPhone: 244 + 22 + [email protected]

Panama – Panama CityAv. Aquilino de la Guardia/Calle 47 Ocean Business Plaza, Oficina 1202 Marbella 0823-0118 - Panama – Panama CityPhone: 50 + 7 + [email protected]

st

62

Sub-Branches


Subsidiaries

Bolivia - Santa Cruz de La SierraAvenida San Martin, 1700 Centro Empresarial Equipetrol - Piso 4 Santa Cruz de La Sierra – BoliviaPhone: 59 + 13 + [email protected]

Japan - GunmaBandou Building, 1319-1, lida-cho Ota-shi 373-0851 - Gunma-ken – JapanPhone: 81 + 276 + [email protected]

Japan - IbarakiShirai Building 2909-1, Fuchigashira-machi Mitsukaido-shi, Joso-shi 303-0022 - Ibaraki-ken – JapanPhone: 81 + 297 + [email protected]

Japan - NagoiaKirix Marunouchi Building, 1-17-19 Marunouchi, Naka-ku - Nagoya-shi 460-0003 - Aichi-ken – JapanPhone: 81 + 52 + [email protected]

Banco do Brazil AG (Aktiengesellschaft) / Vienna – AustriaFranz Josefs-Kai 47 / 3OG1010 - Vienna – AustriaPhone: 43 + 1 + [email protected]

BB Leasing Company Ltd / Grand Cayman – Cayman IslandsAddress: C/O International Division Gered/Diope - SBS Qd. 01, Lote 32 Ed. Sede III do BB - 13º andarBrasília (DF) - Brazil CEP: 70073-901Phone: 61 + [email protected]

Japan - GifuAsahi Plaza Minokamo Station Core, Office 101-Minokamo-shi, Ota-cho 2591-1505-0041 - Gifu-Ken – JapanPhone: 81 + 574 + [email protected]

Japan - Hamamatsu111-2 Itaya-machi Hamamatsu Act Tower 1F, Shizuoka-ken 4307701 - Hamamatsu-ken – JapanPhone: 81 + 53 + [email protected]

Japan - NaganoAtago Mansion 101 - Chuo Higashi 1-5Ueda-shi 386-0013 Nagano-ken – JapanPhone: 81 + 268 + [email protected]

Paraguay - Ciudad del EsteCalle Nanawa, 107, Esquina Monsenhor Rodrigues – CentroCiudad del Leste – ParaguayPhone: 595 + [email protected]

Banco do Brazil Securities LLC / New York – United States600 Fifth Avenue, Third floor 10020 - New York (NY) – USAPhone: 1 + 212 + [email protected]

BB Money Transfers, Inc. / New York – United States600 Fifth Avenue, Third floor 10020 - New York (NY) – USAPhone: 1 + 212 + [email protected]

64

Associated Subsidiaries

South Korea – SeoulSuite 400-3, Business Center 8th floor, Leema Building, 146-1 Soosong-dong, Chongro-gu - 110-140 - Seul - South Korea Phone: 82 + 2 + 398- [email protected]

Shanghai – ChinaUnit 1305, 13th Floor, Shanghai Kerry Centre, 1515 Nanjing Road West 200040 - Shanghai – ChinaPhone: 86 + 21 + [email protected]

Banco do Brazil AG – Portugal / Cascais Passeio Carlos Andrade Teixeira, 7 e 8Edifício Baía Center 2765-409 - Cascais – PortugalPhone: 351 + 21 + [email protected]

Banco do Brazil AG – Portugal / Parque das Nações Av. D. João II - Lote 1.13.01 E Edifício Horizonte Tejo 1990-078 - Lisboa – PortugalPhone: 351 + 21 + [email protected]

Shared Services UnitBanco do Brazil USA Servicing Center / Orlando – United States8325 South Park Circle, Suite 140 P.O. Box 32819 - Orlando (FL) – USAPhone: 1 + 407 + [email protected]

USA – Washington1801, K Street - N.W. - Suite 71020006-1301 - Washington (DC) – USAPhone: 1 + 202 + [email protected]

Banco do Brazil AG – Portugal / Marquês de Pombal Praça Marquês de Pombal, 16, Centro 1269-134 - Lisbon – PortugalPhone: 351 + 21 + [email protected]

Banco do Brazil AG – Portugal / Porto Av. de França, 256 - Lojas 34/354050-276 - Porto – PortugalPhone: 351 + 22 + [email protected]

Business UnitRome - Italy (Milan Business Unit)Via Barberini 29, 4º Piano, Centro187 - Rome – ItalyPhone: 39 + 06 + [email protected]


65

Contact List

Banco do BrasilSBS – Ed.Sede III – 13º andarInternational Division70073-901 – Brasília (DF) – Brazilwww.bb.com.br

PresidencyPhone: 55 (61) 3310.3400Fax.: 55 (61) 3310.2563

Finance Capital Markets and Investor Relations VPPhone: 55 (61) 3310.3406Fax.: 55 (61) 3310.2561

International Business and Wholesale VPPhone: 55 (61) 3310.3406Fax.: 55 (61) 3310.2561

International DivisionPhone: 55 (61) 3310.4500Fax: 55 (61) 3310.2444

International Division - Financial Institutions DepartmentPhone: 55 (11) 3066.9081Fax: 55 (11) 3066.9089

Investor Relations DivisionAddress: SBS – Ed.Sede III – 5th floor70073-901 – Brasília (DF) – BrazilPhone: 55 (61) 3310.3980Fax: 55 (61) 3310.3735e-mail: [email protected]


Notes


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