1Investor Relations

Banco do Brasil2Q06 Results

Banco do Brasil2Q06 Results

Investor Relations

2Investor Relations

1Q06 2H05Net Income 1,014 2,343 1,546 1,979 2,175 3,888 -34.0 78.8

Net Interest Income 4,046 4,406 4,312 8,136 8,598 8,718 -2.1 1.4Allowance for Loan Losses (1,002) (1,345) (1,757) (2,064) (2,463) (3,102) 30.7 25.9Fee Income 1,929 2,103 2,246 3,696 3,953 4,349 6.8 10.0Administrative Expenses (3,088) (3,237) (3,451) (6,299) (6,848) (6,688) 6.6 -2.3

Dec/05 Mar/06Total Assets 233,793 252,977 264,635 273,836 8.2 3.5

Loan Portfolio 96,129 101,789 105,527 113,103 11.1 7.2Securities Portfolio 68,973 66,470 68,631 70,677 6.3 3.0Deposits 117,952 137,658 139,195 139,939 1.7 0.5Assets Under Management 144,802 153,508 169,150 171,154 11.5 1.2Shareholders' Equity 15,393 16,850 19,209 19,178 13.8 -0.2

% 2Q05 1Q06 2Q06 1H05 2H05 1H06ROE - Annualized 29.6 63.0 36.3 28.6 28.8 47.8

Spread - Annualized 9.0 8.5 8.1 8.6 9.0 8.2Efficiency 47.6 48.1 43.3 49.0 47.4 45.5Delinquency ¹ 3.1 4.3 3.6Allowance / Deliquency ¹ 198.8 170.4 203.9

BIS Ratio 15.9 18.3 17.3

Change % overJun/05 Dec/05 Mar/06 Jun/06

2Q05 1Q06Change % over

2Q06 1H05 2H05 1H06

HighlightsHighlightsHighlightsHighlights

(1) Past Due Loans + 60 days

R$ million

3Investor Relations

Dividends / Interest on Own CapitalDividends / Interest on Own CapitalDividends / Interest on Own CapitalDividends / Interest on Own Capital

450 504628

870

1,555R$ million

1H04 2H04 1H05 2H05 1H06

Payout - % 31.67 31.44 31.74 40.00 40.00

EPS - R$ 1.94 2.10 2.48 2.72 4.71

BBAS3 - R$ 22.50 32.50 31.65 42.20 49.98

Dividend Yield - % 2.73 1.94 2.48 2.58 3.82

4Investor Relations

4,046 4,1994,398 4,406 4,312

9.0 9.0 9.28.5

8.1

2Q05 3Q05 4Q05 1Q06 2Q06

Net Interest Income - R$ million NIM¹ annualized - %

Net Interest IncomeNet Interest IncomeNet Interest IncomeNet Interest Income

(1) Net Interest Margin over Earning Assets

5Investor Relations

Jun/05 Dec/05 Mar/06 Jun/06 %Dec05 %Mar/06Loan Portfolio 96,129 101,789 105,527 113,103 11.1 7.2Domestic 86,967 92,612 96,655 103,209 11.4 6.8

Individuals 17,863 18,386 19,779 21,637 17.7 9.4Free Funds 16,084 16,761 18,602 20,509 22.4 10.3

Payroll Loans 2,558 3,810 4,695 6,040 58.5 28.6SMEs 14,405 15,204 15,324 16,605 9.2 8.4Businesses 22,528 23,315 24,498 25,053 7.5 2.3Agribusiness 32,171 35,708 37,054 39,914 11.8 7.7

Abroad 9,162 9,177 8,872 9,894 7.8 11.5

R$ million

1Q06 - % 2Q06 - %

19.1

14.7

22.2

35.3

8.718.7

14.5

23.2

35.1

8.4

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

Individuals SMEs Businesses Agribusiness Abroad

6Investor Relations

R$ million

683 623 639815 795642 546 521

615 538

1,080 1,118 1,004

1,668

2,366

3,843

3,4193,065

4,286

5,185

2Q05 3Q05 4Q05 1Q06 2Q06

CDC Electrônico¹ CDC Salário² CDC Payroll Loans CDC Total

(1) Loan to individuals with pre-approved credit, through ATM(2) Granted to whom receives his/her wage in BB’s account

Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)Consumer Finance (CDC)

7Investor Relations

BBAA-C D-HAA-C D-H

1Q06 2Q06

88.8 88.9 95.1 94.9 87.5 84.8 98.1 98.1 98.2 98.6

15.2 1.9 1.9 1.8 1.412.55.14.911.111.2

89.5 88.4 89.6 89.5

10.4 10.511.610.5

Credit Risk - %Credit Risk - %Credit Risk - %Credit Risk - %

(1) Source: Brazilian Central Bank

BankingIndustry¹

Retail Commercial Agribusiness ForeignTrade

Abroad

8Investor Relations

1,002 966

1,498 1,345

1,7574.2 4.24.7 4.9

5.5

2Q05 3Q05 4Q05 1Q06 2Q066.1 6.3 6.6

7.3 7.4

4.6

5.9 5.66.0

5.0

3.13.9 4.0 4.3

3.6

Delinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit Risk

Quarterly Provision Expenses - R$ million

Provision Expenses / Loan Portfolio¹ - %

2Q05 3Q05 4Q05 1Q06 2Q06

Allowance for loan losses / Loan Portfolio - %Past Due Loans + 15 days / Loan Portfolio - %Past Due Loans + 60 days / Loan Portfolio - %

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

9Investor Relations

Individuals Credit Deliquency¹Individuals Credit Deliquency¹Individuals Credit Deliquency¹Individuals Credit Deliquency¹

15.1 15.1 15.3 14.9 14.8 14.713.9 14.5

13.8 14.5 14.7 14.8 14.2

12.4 12.3 12.9 13.1 13.4 13.812.9

13.7 13.6 14.0 14.3 13.3 12.8

8.6 8.5 8.5 8.1 8.2 8.2 8.5 8.2 8.1 7.5 7.4 7.7 7.2

5.9 5.9 6.3 6.5 6.5 6.8 6.7 6.9 7.2 7.3 7.4 7.1 6.8

Jun/05 Aug/05 Oct/05 Dec/05 Feb/06 Apr/06 Jun/06

Banking IndustryBB BB

Past Due Loans + 15 days - % Past Due Loans + 90 days - %

(1) Free Funds Operations except Funds e Programs, Credit Card Fin., Leasing.

Banking Industry

10Investor Relations

2005 (crop 2004/2005):

Rolling-over authorized after the default and, in some cases, the lawsuit filing. risk worsening and higher level of provision

losses and delinquency

R$ 2.8 billion rolled-over

2006 (crop 2005/2006):

Environment improvement and government implement actions before the default, because the farmer yield was insufficient to assure the 2006 payment and 2005 rolled-over debts.

rural credit rolling-over (CMN Resolution 3363, 3371, 3373 and 3376)

CPR refinancing with FAT funds (CODEFAT Resolution 497)

financing, with credit rural funds, of securitization installments of 2005 or 2006, PESA or Recoop (law 11.322)

funds to support marketing (price maintenance)

R$ 6.2 billion rolled-over

BB agribusiness portfolio impacts: R$ 3.3 billion allowance for loan losses balance as of 06.30.06

R$ 2.2 billion over 15 days past due loans balance as of 06.30.06

write-off:R$ 389 million - 2005 and R$ 382 million - 1H06

R$ 8.4 billion rolled-over balance - up to 5 years to be paid from July/2007

Agribusiness - Rolling-OverAgribusiness - Rolling-OverAgribusiness - Rolling-OverAgribusiness - Rolling-Over

11Investor Relations

Allowance for loan losses / Loan Portfolio

8.2%

5.6%

Jun/05 Aug/05 Oct/05 Dec/05 Feb/06 Apr/06 Jun/06

Past Due Loans + 15 days / Loan Portfolio

146.1% delinquency covered by provision146.1% delinquency covered by provision146.1% delinquency covered by provision146.1% delinquency covered by provision

12Investor Relations

Credit Opertaions

Provisions1and 2

New transactions and renegotiation - Crop 2006/2007 33,000 2,706

Amortization next 12 months -18,000 -1,476

Net flow next 12 months of new transactions 15,000 1,230

2H06 flow resulting of risk migration³ 200

Quarterly average flow of the last 3 quarters (4Q05, 1Q06 e 2Q06) 850

Observations

1) 8.2% average risk maintained in the next 12 months, (Resolution 2.682/99)

2) Allowance for loan losses expenses of approximately R$1.2 billion divided into 65% in 2H06 and 35% in 1H07

3) R$ 200 million provisions in 2H06 resulting of risk migration of overdue and non-renegotiated loans

Actions taken

a) Productivity and profitability ratios revision of the agricultural activity to be financed

b) Definition of exposure maximum limit (portfolio and products)

c) Emphasis on contracting operations with risk mitigation

d) Higher exposure in productive chain as sugar cane, fruits, forest activities and bioenergy

e) Equalization revenues increase resulting of credit risk worsening (higher R$ 800 million - 12 months)

Agribusiness - Next StepsAgribusiness - Next StepsAgribusiness - Next StepsAgribusiness - Next Steps

R$ million

13Investor Relations

2Q05 1Q06 2Q06 %1Q06 1H05 2H05 1H06 %2H05Fee Income 1,929 2,103 2,246 6.8 3,696 3,953 4,349 10.0

Customer Relationship 639 679 725 6.7 1,229 1,285 1,404 9.2Assets Under Management 304 356 359 0.9 587 632 715 13.2Credit Cards 140 165 165 0.0 277 299 330 10.4Collection 183 189 228 20.6 351 375 418 11.4Credit Operations 176 201 210 4.6 325 326 411 26.2Funds Transfers 123 135 143 5.7 240 268 277 3.4Others 364 377 416 10.3 686 768 794 3.4

R$ million

144.8 150.4 153.5169.2 171.2

21.3 20.9 20.2 20.1 19.7

2Q05 3Q05 4Q05 1Q06 2Q06

21.9 22.3 22.9 23.3 23.7

295 284 290 288 284

2Q05 3Q05 4Q05 1Q06 2Q06

Fee IncomeFee IncomeFee IncomeFee Income

Account Holders - million Assets Under Management - R$ billion

(Fees + NII) per account holder¹ - R$ Market Share - %

(1) 12 months average

14Investor Relations

2Q05 1Q06 2Q06 %1Q06 1H05 2H05 1H06 %2H05

Administrative Expenses (3,035) (3,156) (3,253) 3.1 (6,028) (6,374) (6,408) 0.5

Personnel Expenses (1,687) (1,781) (1,839) 3.3 (3,326) (3,510) (3,620) 3.1

Other Administrative Expenses (1,314) (1,331) (1,383) 3.9 (2,629) (2,789) (2,713) -2.7

Telecom. and Data Processing (337) (373) (362) -3.0 (678) (725) (736) 1.5

Amortization and Depreciation (146) (170) (171) 0.6 (320) (325) (340) 4.6

Security, Guard and Transp. Serv. (178) (185) (193) 4.2 (365) (375) (379) 1.1

Exp. with Premises and Equipment (173) (191) (187) -2.0 (349) (354) (378) 6.7

Marketing and Public Relations (121) (71) (108) 52.1 (204) (247) (180) -27.3

Exp. with Outsourced Services (138) (129) (135) 5.0 (276) (272) (264) -3.0

Other Administrative Expenses (221) (211) (226) 6.9 (438) (491) (437) -11.1

Other Tax Expenses (34) (44) (31) -31.1 (73) (75) (75) 0.7

Legal Risk 22 (126) (229) 81.6 (235) (548) (355) -35.2

Labor Claims 74 (95) (162) 70.2 (91) (439) (257) -41.5

Legal Claims (52) (31) (67) 116.6 (144) (110) (99) -10.3

R$ million

Administrative ExpensesAdministrative ExpensesAdministrative ExpensesAdministrative Expenses

15Investor Relations

49.0 47.5 48.1 48.1 45.5

2Q05 3Q05 4Q05 1Q06 2Q06

104.8 103.4 102.3112.1 112.2

2Q05 3Q05 4Q05 1Q06 2Q06

Coverage¹ Ratio - %

(1) Fee Income / Personnel Expenses - YTD(2) Administrative Expenses / Operating Income - YTD

Productivity RatiosProductivity RatiosProductivity RatiosProductivity Ratios

Efficiency² Ratio - %

16Investor Relations

Shareholder BaseShareholder BaseShareholder BaseShareholder Base

Shareholding Breakdown before and after the Offering and Subscription Warrants

Shareholders Quantity of Shares % Quantity of Shares %

National Treasury 584,778,036 72.1 584,778,036 70.9

PREVI 112,415,335 13.9 94,415,335 11.4

BNDESPar 46,604,052 5.7 23,604,052 2.9

Treasury Stocks 11,257,677 1.4 - 0.0

Foreign Capital 26,682,549 3.3 55,011,343 6.7

Others 28,879,766 3.6 67,504,736 8.2

Total 810,617,415 100.0 825,313,502 100.0

Free Float 55,562,315 6.9 122,516,079 14.8

Before After

17Investor Relations

BB Public OfferingBB Public OfferingBB Public OfferingBB Public Offering

No. Shareholders Qty. Shares R$ Thousand %

Individuals 51,111 14,622,010 636,057 28.0

Customers 34,445 10,622,365 462,073 20.3

BB's Employees 8,699 1,248,635 54,316 2.4

Others 7,967 2,751,010 119,669 5.3 -

Institutions 1,812 37,635,667 1,637,152 72.0

Foreign Investors 194 26,582,747 1,156,349 50.9

Mutual Funds 223 7,896,259 343,487 15.1

Pension Funds 100 1,484,162 64,561 2.8

Investment Clubs 181 478,923 20,833 0.9

Others 1,114 1,193,576 51,921 2.3 -

TOTAL 52,923 52,257,677 2,273,209 100.0

18Investor Relations

Jan/06 Feb/06 Mar/06 Apr/06 Mai/06 Jun/06 Jul/06

Bradesco Itaú Unibanco Banco do Brasil

3º5º

9º11º

3º

7º

14º

27º

Liquidity Ranking

BB Public OfferingBB Public OfferingBB Public OfferingBB Public Offering

19Investor Relations

Investor Relations DivisionSBS - 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