1

Banco do Brasil2Q07 Results

Banco do Brasil2Q07 Results

2

Recurring Net Income growsRecurring Net Income grows......Recurring Net Income growsRecurring Net Income grows......

647

2Q06

832

3Q06

1,248

4Q06

1,409

1Q07 2Q07 1H06 1H07

Recurring Net Income – R$ million

1,546

907

1,464

3,889

2,923

1,0681,586

2,477

Net Income – R$ million

Δ Recurring Net Income - 84.4%

Δ Recurring Net Income - 126.2%

36.319.8

26.7 29.4

20.9

47.8

24.3

ROE (Annualized) - %

14.2 18.0

29.4 18.4

29.0

Recurring ROE (Annualized) - %

......and ROE goes into a positive trendand ROE goes into a positive trend..

3

Net Income 1Q07 1,409

Higher Interest Income 355

Less Credit Risk Expenses 195

Other Administrative Expenses Growth 119

Provisions for Legal Risk Strengthening 152

Higher Taxes Expenses 195

Other Effects 29

Recurring Net Income 2Q07 1,464

Early Retirement Plan and Previ Effects 396

Net Income 2Q07 1,068

Net Interest Income and less provisions...Net Interest Income and less provisions...Net Interest Income and less provisions...Net Interest Income and less provisions...

R$ million

...compensated higher expenses, taxes and legal risk....compensated higher expenses, taxes and legal risk.

( )

( )

4

R$ billion

6.8

10.4

0.9

9.4

6.2

12.2

1.3

9.6

3.3

5.3

0.6

4.93.4

5.4

0.3

4.7

3.3

5.8

0.4

4.6

3.0

6.1

0.5

4.8

3.2

6.1

0.8

4.8

2Q06 3Q06 4Q06 1Q07 2Q07 1H06 1H07

Security Revenues

Loan Revenues

Other Interest RevenuesInterest Expense

Net Interest Income

4.3 4.4 4.8 4.8 5.2

8.7

10.1

Net Interest Income grows...Net Interest Income grows...Net Interest Income grows...Net Interest Income grows...

... on the back of loan revenues.... on the back of loan revenues.

5

(1) Net Interest Income over Earning Assets

NIM Annualized¹ - %Average Selic Annualized - %

AgribusinessesBusinessesIndividuals

Annualized NIM by Loan Portfolio - %

NIM kept stable...NIM kept stable...NIM kept stable...NIM kept stable...

8.1 7.9 8.4 7.9 7.9

15.714.6

13.612.9 12.3

2Q06 3Q06 4Q06 1Q07 2Q07

5.7 5.2 6.4 7.0 6.6

8.9 8.5 8.0 7.3 7.0

33.031.4 31.8

28.9 28.8

2Q06 3Q06 4Q06 1Q07 2Q07

... despite the Selic easing cycle.... despite the Selic easing cycle.

6

Related to Selic - %

...helps to protect the NIM....helps to protect the NIM.

117.8 112.6127.2 124.8 128.1

23.827.7

22.918.2

12.7

21.919.0

29.936.1

46.4

2Q06 3Q06 4Q06 1Q07 2Q07

62.7 58.1 62.1 62.0 61.5 Funding Interest Rate

Investment Interest Rate

Floating Rate Fixed Rate

Domestic Long Net Exposure - R$ billion

Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...

7

R$ billion

Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...

Businesses

Agribusinesses

Individuals

Abroad

Δ % over2Q06 1Q07

28.4 3.5

23.5 (0.8)

29.0 6.8

22.2 4.3

35.3 2.141.7

39.9

21.6

9.9

2Q06

113.1

44.4

40.3

23.2

10.4

3Q06

118.3

51.9

45.1

24.0

12.2

4Q06

133.2

55.2

46.8

26.1

12.3

1Q07

140.4

56.3

48.8

27.9

12.2

2Q07

145.2

...explains the Net Interest Income performance....explains the Net Interest Income performance.

8

R$ billion

Focus on Individuals Portfolio...Focus on Individuals Portfolio...Focus on Individuals Portfolio...Focus on Individuals Portfolio...

Cars Loan

Credit Card

Overdraft Account

Payroll Loan Others

Δ % over2Q06 1Q07

29.0 6.8

(0.3) 2.8

8.2 (0.5)

28.9 7.9

68.4 8.9

320.4 33.7

2Q06 3Q06 4Q06 1Q07 2Q07

2.72.6

9.9

6.0

21.6

0.4 2.82.3

7.4

10.1

23.2

0.63.1

2.2

8.3

9.5

24.0

0.93.2

2.7

9.3

9.6

26.1

1.33.4

2.6

10.2

9.9

27.9

1.7

... highlighting cars and payroll loans.... highlighting cars and payroll loans.

9

BB

Banking Industry

Banking Industry

BB

Stable Credit Risk...Stable Credit Risk...Stable Credit Risk...Stable Credit Risk...

Average Risk - %

Required Provision / Past Due Loan + 90 days - %

214.0

170.1

222.7

173.1

221.9

166.2

213.9

175.1

211.1

179.6

2Q06 3Q06 4Q06 1Q07 2Q07

6.8

6.8

5.4 5.4

6.9

5.4

6.76.2 6.0

6.2

... better than the industry...... better than the industry...

10

...allows provisions to recede......allows provisions to recede......allows provisions to recede......allows provisions to recede...

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

Provision Expenses - R$ million

Provision Expenses / Loan Portfolio¹ - %

Provision / Loan Portfolio - %

Past Over Due Loans + 15 days / Loan Portfolio - %

Past Over Due Loans + 60 days / Loan Portfolio - %

1,757

1,3851,257

1,4311,236

2Q06 3Q06 4Q06 1Q07 2Q07

7.4 7.4

6.5 6.5 6.5

5.0 5.2

4.1 4.2 4.1

3.6 3.8

2.9 2.8 2.8

2Q06 3Q06 4Q06 1Q07 2Q07

...with delinquency under control....with delinquency under control.

5.5 5.65.0

4.8

4.1

11

Provisions...Provisions...Provisions...Provisions...

8,2097,238 7,551 7,7867,662

5481,397

1,582 1,655752

8,757 8,6359,133 9,441

8,414

Jun/06 Sep/06 Dec/06 Mar/07 Jun/07

Required Provision Additional Provision

Total Provision

... denoting conservative approach.... denoting conservative approach.

R$ million

12

Funding still growing.... Funding still growing.... Funding still growing.... Funding still growing....

R$ billion

Saving Deposits Demand Deposits

Time Deposits Others

Δ % over2Q06 1Q07

17.6 2.4

(9.0) 3.3

17.4 0.7

17.5 3.5

22.9 4.933.2

31.4

69.4

6.0

Jun/06

34.4

32.4

72.3

5.7

Sep/06

36.7

40.1

76.9

5.2

Dec/06

38.9

35.6

80.9

5.3

Mar/07

40.8

36.8

81.4

5.4

Jun/07

139.9 144.9158.8 160.7 164.5

... highlighting saving and demand deposits.... highlighting saving and demand deposits.

13

Fees from products and customers...Fees from products and customers...Fees from products and customers...Fees from products and customers...

R$ million

Products Customers Others

Δ % over2Q06 1Q07

8.5 2.5

(10.9) (9.8)

8.0 4.0

14.0 4.6

2Q06

2,246

1,211

715

320

3Q06

2,252

1,217

713

322

4Q06

2,287

1,216

722

349

1Q07

2,377

1,319

742

316

2Q07

2,437

1,381

772

285

... still growing.... still growing.

14

171.2 180.6 182.7 193.1208.9

2Q06 3Q06 4Q06 1Q07 2Q07

Assets under Management - R$ billion

Individuals Companies

Market Share - %

Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...

Customers - million

Δ= 8.2%

Δ= 22.0%

19.7 19.7 19.1 19.1 19.1

23.7

22.2

1.5

2Q06

24.1

22.6

1.5

3Q06

24.4

22.8

1.6

4Q06

24.6

23.0

1.6

1Q07

23.3

1.6

2Q07

24.9

...and the customer basis reach 25 million....and the customer basis reach 25 million.

15

316

2Q07

245

2Q06

250

3Q06

300

4Q06

315

1Q07

Value Added¹ - R$ million

Insurance reaches a new level of performance...Insurance reaches a new level of performance...Insurance reaches a new level of performance...Insurance reaches a new level of performance...

(1) Includes equity income, fee income, brokage and asset management income

Δ= 0.5%

Δ= 28.9%

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...so does credit card business....so does credit card business....so does credit card business....so does credit card business.

Value Added¹ - R$ million

(1) Includes fee income, financing income, equity income and others

454

2Q06

486

3Q06

558

4Q06

508

1Q07

559

2Q07

Δ= 10.1%

Δ= 23.1%

17

8.9

2Q06

9.4

3Q06

10.9

4Q06

11.2

1Q07

11.5

2Q07

Great expansion in the credit card basis...Great expansion in the credit card basis...Great expansion in the credit card basis...Great expansion in the credit card basis...

Revenue¹ - R$ billion

Credit Cards - million(1) Includes Credit Cards and Debit Cards

Δ= 3.4%

Δ= 29.9%

9.9

14.1 14.4 15.7

11.4

...6 million new cards in 12 months....6 million new cards in 12 months.

18

Costs under control...Costs under control...Costs under control...Costs under control...

R$ million

(1) Legal risk and extraordinary items are not included.

Personnel Expenses¹ Other Administrative Expenses¹

Δ % over2Q06 1Q07

0.5 2.6

9.9 8.5

(6.9) (2.0)1,839

1,383

2Q06

1,804

1,378

3Q06

1,846

1,516

4Q06

1,748

1,401

1Q07

1,713

1,519

2Q07

3,2163,2533,396

3,186 3,268

...in line with the business pace....in line with the business pace.

19

Early Retirement Plan and Previ...Early Retirement Plan and Previ...Early Retirement Plan and Previ...Early Retirement Plan and Previ...

Early Retirement Plan

Eligible Employees: those above 50 years old or able to receive INSS pension and over 15 year contribution to Previ

6.9 thousand people joined

Impacts in the 2Q07: R$ 445.9 million, after taxes

Forecasted saving for 2008: R$ 158 million, after taxes

Suspension of the Contributions to Previ

Suspension of the contributions to the Benefit Plan #1

Impacts in the 2Q07: R$ 50 million, after taxes

Forecasted saving for 2008: R$ 200 million, after taxes (subject of revaluation every 12 months)

...bring future cost savings and......bring future cost savings and...

20

Employees Interns

Branches Others

...reduction in the workforce....reduction in the workforce....reduction in the workforce....reduction in the workforce.

Points of Service - thousand

Workforce - thousand

82.9

10.5

2Q06

82.6

10.2

3Q06

82.5

10.1

1Q07

79.3

9.8

2Q07

3.9 4.0 4.0 4.0 4.0

11.0 11.1 11.1 11.2 11.2

2Q06 3Q06 4Q06 1Q07 2Q07

15.0 15.0 15.1 15.1 15.2

82.7

4Q06

9.9

21

Fee Income...Fee Income...Fee Income...Fee Income...

Fee Income

Personnel ExpensesCoverage Ratio¹ - %

R$ billion

2Q06 3Q06 4Q06 1Q07 2Q07

(1) Year to Date

2.22.0

2.2

1.9

2.32.0

2.4

1.9

2.4 2.5

Recurring Coverage Ratio¹ - %

112.2 113.4 112.9127.9

110.1

130.2

...covers more than 130% of personnel expenses....covers more than 130% of personnel expenses.

22

Administrative Expenses

Operating IncomeEfficiency Ratio¹ - %

R$ billion

(1) Year to Date

2Q06 3Q06 4Q06 1Q07 2Q07

3.4

8.0

3.4

7.1

3.6

7.1

3.3

7.5

4.2

7.7

Recurring Efficiency Ratio¹ - %

...to keep efficiency on the track....to keep efficiency on the track.

Expenses control allows...Expenses control allows...Expenses control allows...Expenses control allows...

45.5 46.5 47.544.1

49.1

44.7

23

%

BIS Ratio allows...BIS Ratio allows...BIS Ratio allows...BIS Ratio allows...

...a R$ 88 billion leverage margin....a R$ 88 billion leverage margin.

Tier IITier I

11.6

5.7

Jun/06

17.3

11.9

5.8

Sep/06

17.7

11.6

5.6

Dec/06

17.3

11.6

5.5

Mar/07

17.2

10.6

5.3

Jun/07

15.9

24

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

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

Fax: 55 (61) 3310.3735

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

DisclaimerDisclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the

management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the

international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.

For further information access www.bb.com.br/ri