Banco do Brasil S.A. · Banco do Brasil S.A. is a publicly listed company established under private...

(A free translation of the original in Portuguese)

Banco do Brasil S.A.Report of Independent Accountants on theLimited Review of Quarterly Information (ITR)March 31, 2005 and 2004


Banco do Brasil S.A.Quarterly Informationat March 31, 2005 and 2004Balance SheetIn thousands of reais

March 31, March 31, March 31, March 31,2005 2004 2005 2004

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Current assets 251,629,251 245,095,083 Current liabilities 251,629,251 245,095,083

Available funds 14,404,154 15,476,523 Deposits (Note 10) 120,827,880 111,729,077 Demand deposits 29,296,550 28,847,272

Short-term interbank investments (Note 4) 20,561,969 19,250,019 Savings deposits 31,417,670 31,069,451 Open market investments 3,952,762 2,731,593 Interbank deposits 7,969,037 7,092,059 Interbank deposits 16,609,207 16,518,426 Time deposits 52,063,561 44,682,188

Other deposits 81,062 38,107

Marketable securities andDerivative financial instruments (Note 5) 21,547,099 19,822,081

Funds obtained in the open market39,151,967 40,556,453

Own portfolio 12,533,271 9,869,119 Own portfolio 36,250,222 38,191,387 Subject to repurchase commitments 7,793,892 9,026,512 Third-party portfolio 2,901,745 2,365,066 Restricted deposits – Central Bank 524,402 0 Restricted to guarantees provided 0 333,204 Derivative financial instruments 695,534 593,246 Notes and securities 136,460 201,452

Foreign marketable securities 136,460 201,452

Interbank accounts 23,332,461 22,097,817 Interbank accounts 1,517,538 5,873 Payments and receipts pending settlement 2,442,369 54,018 Receipts and payments pending settlement 1,517,346 5,873 Restricted deposits Correspondent banks 192 0 Central Bank deposits 20,786,644 21,930,863 National Treasury – rural credit receivable 8,409 3,829 National Housing Financing System (SFH) 2,633 1,764 Interdepartmental accounts 1,385,209 1,724,676 Interbank onlendings 5,031 4,837 Third-party funds in transit 1,331,791 1,724,558 Correspondent banks 87,375 102,506 Internal transfers of funds 53,418 118

Interdepartmental accounts 140,229 147,141 Borrowings (Note 11) 15,124,124 14,893,959 Internal transfers of funds do 140,229 147,141 Foreign borrowings 15,124,124 14,893,959

Lending operations 39,566,100 38,886,007 Local onlendings – official institutions (Note 12) 3,314,108 3,069,697 Lending operations National Treasury 3,312,941 3,068,535

Banco do Brasil S.A.Quarterly Informationat March 31, 2005 and 2004Balance SheetIn thousands of reais (continued)



Public sector (Note 6b) 1,117,791 768,323 National Economic Development Bank (BNDES) 0 0 Private sector (Note 6b) 41,302,073 40,852,100 National Industrial Financing Authority (FINAME) 0 0 (Allowance for loan losses) (Notes 6e and 6f) (2,853,764) (2,734,416) Other institutions 1,167 1,162

Leasing operations 3,340 8,589 Leases and subleases receivable Foreign onlendings 546,962 742,837 Public sector 22,864 0 Foreign onlendings 546,962 742,837 Private sector 2,100 0 (Unearned income from leasing operations) (21,512) 0 (Allowance for leasing losses) (Note 6e) (112) 0

Other receivables 14,796,490 14,237,154 Derivative financial instruments (Note 5b) 646.303 445,268 Receivables on guarantees honored 82,809 68,080 Derivative financial instruments Foreign exchange portfolio (Note 8a) 10,444,104 8,529,983 Income receivable 110,156 443,073 Other liabilities 18,117,224 17,271,634 Negotiation and intermediation of securities 1,969 203,065 Collection of taxes and social contributions 1,966,211 254,684 Specific credits (Note 8b) 279,411 271,921 Foreign exchange portfolio (Note 14a) 7,969,384 7,869,765 Special operations 1,355 1,355 Social and statutory 84,392 421,970 Sundry (Note 8c) 5,885,642 6,514,926 Taxes and social security charges 771,663 762,319 (Allowance for other losses) (Notes 6e and 6f) (2,008,956) (1,795,249) Negotiation and intermediation of securities 5,668 212,773

Financial and development funds (Note 14b) 165,524 161,857Other assets 183,667 224,035 Special operations 2,382 2,387 Shareholdings 4 4 Subordinated Debts (Note 14e) 237 210 Other assets (Note 9) 309,588 327,955 Sundry (Note 14d) 6,505,460 7,140,401 (Allowance for losses) (170,473) (179,292) Prepaid expenses 44,548 75,368

Long-term receivables 109,413,716 107,315,482 Long-term liabilities 36,446,640 40,660,149




Interbank investments (Note 4) 2,374,067 2,563,827 Deposits (Note 10) 1,391,089 5,794,183 Open market investments 54,452 53,576 Interbank deposits 767,601 935,498 Interbank deposits 2,319,615 2,510,251 Time deposits 623,488 4,858,685

Funds obtained in the open market 4,798,557 4,877,753Marketable securities andDerivative financial instruments (Note 5) 51,535,476 52,428,611

Own portfolio4,173,151 4,316,255

Own portfolio 15,606,513 15,697,287 Third-party portfolio 625,406 561,498 Subject to repurchase commitments 33,832,296 34,625,469 Restricted deposits - Central Bank 1,660,608 1,626,821 Restricted for guarantees provided 364,014 451,765 Notes and securities 747,934 657,722 Derivative financial instruments 72,045 27,269 Foreign marketable securities 747,934 657,722

Lending operations 37,524,564 35,178,060 Borrowings (Note 11) 4,786,239 4,735,437 Lending operations Foreign borrowings 4,786,239 4,735,437 Public sector (Note 6b) 3,385,163 3,372,900 Private sector (Note 6b) 36,499,040 33,992,884 (Allowance for loan losses) (Notes 6e and 6f) (2,359,639) (2,187,724)

Leasing operations 5,454 12,544 Local onlendings - official institutions (Note 12) 7,306,127 7,534,090 Leases and subleases receivable National Treasury 282,995 292,794 Public sector National Economic Development Bank (BNDES) 3,662,796 3,559,403 Private sector National Industrial Financing Authority (FINAME) 2,918,381 3,018,399 (Unearned income from leasing operations) Other institutions 441,955 663.494 (Allowance for leasing losses) (Note 6e)

Foreign onlendings 235,957 0 Foreign onlendings 235,957 0

Derivative financial instruments (Note 5b) 103.212 77,615 Derivative financial instruments 103.212 77,615

Other receivables 17,974,155 17,132,440




Receivables on guarantees honored 0 0 Income receivable 43,835 33,914 Other liabilities 17,180,737 17,060,964 Specific credits (Note 8b) 279,411 271,921 Taxes and social security charges 0 0 Sundry (Note 8c) 17,776,137 16,959,893 Negotiation and intermediation of securities 3,268,485 3,348,604 (Allowance for other losses) (Notes 6e and 6f) (125,228) (133,288) Financial and development funds 1,788,178 1,705,344

Subordinated debts (Note 14e) 7,092,958 6,832,768 Sundry (Note 14d) 4,927,904 5,096,633

Deferred income 128,240 133,580Permanent assets 7,680,026 7,630,235 Deferred income 128,240 133,580

Investments 4,202,520 3,994,306 Stockholders' equity (Note 16) 14,932,899 14,105,696 Investments in subsidiaries and in associate companies (Note 19) Domestic 4,161,513 2,396,718 Capital 9,864,153 9,864,153 Abroad 0 1,557,195 Local residents 9,841,636 9,841,635 Other investments 194,883 195,116 (Allowance for losses) (153,876) (154,723) Foreign residents 22,517 22,518

Property and equipment in use 2,884,767 3,050,967 Land and buildings in use 2,195,240 2,284,394 Capital reserves 4,763 4,769 Other property and equipment in use 3,864,781 3,927,693 (Accumulated depreciation) (3,175,254) (3,161,120) Revaluation reserves 25,701 25,717

Leased assets 55,356 37,736 Leased assets Revenue reserves 4,073,673 4,211,057 (Accumulated depreciation)

Adjustments to market value –Securities and derivatives(Note 16e) (94,799) 42,585

Deferred charges 537,383 547,226 Organization and expansion costs 974,103 952,471 Retained earnings 964,609 0 (Accumulated amortization) (436,720) (405,245)




(Treasury stocks) (125,779) (125,779)

Total 251,629,251 245,095,083 Total 251,629,251 245,095,083

The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)Banco do Brasil S.A.

Quarterly InformationStatement of Income (Unaudited)In thousands of reais

1.01.2005 to 3.31.2005 1.01.2005 to 3.31.2005 1.01.2004 to 3.31.2004 1.01.2004 to 3.31.2004

Revenue from financial intermediation 8,052,707 8,052,707 7,535,236 7,535,236Lending operations 4,508,028 4,508,028 4,178,931 4,178,931

Leasing operations 6,321 6,321 289 289Marketable securities 3,179,783 3,179,783 2,834,450 2,834,450

Derivative financial instruments (27,591) (27,591) (31,472) (31,472)Foreign exchange 0 0 245,844 245,844Compulsory investments 386,166 386,166 307,194 307,194

Expenses from financial intermediation (5,472,658) (5,472,658) (5,224,042) (5,224,042)Deposits and funds obtained in the open market (3,787,954) (3,787,954) (3,114,201) (3,114,201)Borrowings and onlendings (371,163) (371,163) (753,429) (753,429)

Leasing operations (2,788) (2,788) 0 0Net loss on exchange transaction (49,195) (49,195) 0 0Provision for credit losses (Note 6e) (1,261,558) (1,261,558) (1,356,412) (1,356,412)

Gross profit from financial transaction 2,580,049 2,580,049 2,311,194 2,311,194

Other operating income / expenses (1,116,410) (1,116,410) (1,348,174) (1,348,174)Services rendered (Note 14a) 1,631,835 1,631,835 1,437,782 1,437,782Personnel expenses (Note 14b) (1,785,970) (1,785,970) (1,555,929) (1,555,929)Other administrative expenses (Note 14c) (1,384,325) (1,384,325) (1,110,038) (1,110,038)Taxes (365,964) (365,964) (297,859) (297,859)

Equity in the earnings of associated and subsidiaries (Note 18) 221,157 221,157 190,515 190,515Other operating income (Note 14d) 1,050,218 1,050,218 517,532 517,532Other operating expenses (Note 14e) (483,361) (483,361) (530,177) (530,177)



1.01.2005 to 3.31.2005 1.01.2005 to 3.31.2005 1.01.2004 to 3.31.2004 1.01.2004 to 3.31.2004

Operating profit 1,463,639 1,463,639 963,020 963,020

Non-operating income (Note 14f) 96,430 96,430 14,295 14,295Income 111,767 111,767 28,047 28,047Expenses (15,337) (15,337) (13,752) (13,752)

Income before taxes and profit sharing 1,560,069 1,560,069 977,315 977,315

Income tax and social contribution (Note 16) (517,814) (517,814) (320,719) (320,719) Income tax (377,545) (377,545) (240,081) (240,081) Social contribution (137,217) (137,217) (84,923) (84,923) Deferred tax credits (3,052) (3,052) 4,285 4,285

Profit sharing (Note 21) (77,675) (77,675) (41,011) (41,011)

Net income 964,580 964,580 615,585 615,585

Number of shares 799,359,738 799,359,738 732,017,829 732,017,829Treasury sharesTotal shares used in the calculation of net income per shareNet income per share 1.20669 1.20669 0.84094 0.84094


Banco do Brasil S.A.

Notes to the Quarterly Informationat March 31, 2005 and 2004All amounts in thousands of reais unless

Notes to the Financial Statements

1 - The Bank and its Operations2 - Presentation of the Financial Statem3 - Significant Accounting Practices4 - Interbank Investments5 - Securities and Derivative Financial I6 - Loan and Lease Operations7 - Provisions for Vacation Pay, Paid Le8 - Other Receivables9 - Other Assets10 - Deposits11 - Borrowings - Foreign Borrowings12 - Local Onlendings - Official Institutio13 - Funds Obtained in Foreign Capital 14 - Other liabilities15 - Analysis of Income Statement Item16 - Stockholders' Equity17 - Income Tax and Social Contributio18 - Tax Credits19 - Equity in the Earnings (Loss) of Su20 - Related-party Transactions21 - Operating Limits - Basel Agreemen22 - Assets and Liabilities in Foreign Cu23 - Retirement and Pension and Healt24 - Compensation Paid to Employees 25 - Assignment of Employees to Exter26 - Commitments, Responsibilities and


otherwise indicated

ents

nstruments

ave and Litigation

nsMarkets

s

n on Net Income

bsidiary and Associated Companies

trrencies

h Plans - Post-Employment Benefitsand Managementnal Organizations Contingencies

Banco do Brasil S.A.Notes to the Quarterly Informationat March 31, 2005 and 2004All amounts in thousands of reais unless otherwise indicated

1 The Bank and its Operations

Banco do Brasil S.A. is a publicly listed company established under private law and subject tothe requirements of Brazilian corporate legislation. Its corporate purpose is to carry out all theasset, liability and accessory banking operations, to provide banking services, intermediate andoriginate financial transactions in various forms and perform any activity permitted to theinstitutions that are part of the National Finance System. It is also the main financial agent of theBrazilian Federal Government and is therefore required to carry out the functions attributed to itby law, specifically those of Art. 19 of Law 4595/1964.

2 Presentation of the Financial Statements

(a) The financial statements of Banco do Brasil S.A. have been prepared in accordance with therequirements of Law 6404/1976 and the rules and instructions issued by the Brazilian CentralBank (BACEN) and the Brazilian Securities Commission (CVM).

The financial statements labeled "BB - Domestic and Overseas branches" include the Bank'soperations in Brazil and its branches abroad. The consolidated amounts ("BB - Consolidated")also include the financial subsidiaries. The balances of foreign branches and subsidiariesincluded in the financial statements of "BB - Domestic and Overseas branches" and "BB -Consolidated", respectively, are as follows:

Foreign branchesForeign branches and

subsidiaries

03.31.2005 03.31.2004 03.31.2005 03.31.2004

Current assets 30,531,297 48,507,551 30,244,351 48,219,092Long-term receivables 10,114,213 9,133,488 10,539,935 9,481,097Permanent assets 181,969 201,906 210,368 224,563

Total assets 40,827,479 57,842,945 40,994,654 57,924,752

Current liabilities 27,280,165 43,868,159 25,892,768 42,460,678Long-term liabilities 10,881,009 11,095,243 10,844,069 11,027,915Deferred income 2,669 3,121 2,669 3,441Stockholders' equity 2,663,636 2,876,422 4,255,148 4,432,718

Total liabilities and stockholders' equity 40,827,479 57,842,945 40,994,654 57,924,752

Net income for the quarter 57,397 43,578 99,333 60,650


(b) The consolidated financial statements (BB - Consolidated) comprise the domestic and foreignbranches and the foreign subsidiaries: Banco do Brasil - A.G. Vienna - Austria, BB - LeasingCompany Ltd., Brazilian American Merchant Bank - BAMB and the domestic subsidiaries: BB -Administração de Ativos - Distribuidora de Títulos e Valores Mobiliários S.A., BB - Banco deInvestimento S.A., BB - Leasing S.A. - Arrendamento Mercantil and BB - Banco Popular do BrasilS.A.

The asset and liability and the income and expense accounts recording transactions between theforeign branches and subsidiaries and Banco do Brasil S.A. were eliminated on consolidation. Thetranslation into Brazilian reais of the financial statements prepared in a foreign currency is carriedout using current exchange rates, in conformity with CVM Decision 28/1986.

BB - Corretora de Seguros e Administradora de Bens S.A., BB - Administradora de Cartões deCrédito S.A., BBTUR Viagens e Turismo Ltda., COBRA Tecnologia S.A., Ativos S.A., BB -Administradora de Consórcios S.A. and Brasil Aconselhamento Financeiro e DTVM S.A. were notincluded in the consolidation, in accordance with article 23 of CVM Instruction 247/1996, as theydo not materially affect the consolidated financial statements. The investments in these companieswere recorded on the equity method of accounting and the information required by article 20 ofCVM Instruction 247/1996 and CVM Deliberation 26/1986 is presented in Notes 19 and 20,respectively.

3 Significant Accounting Practices

(a) Net income is determined on the accrual basis of accounting.

(b) The assets and liabilities in foreign currencies and those subject to indexation are adjusted inaccordance with the exchange rates or official indices as of the balance sheet date and arepresented at realizable values. The assets and liabilities with floating financial charges arerecorded at present value, calculated pro rata based on the variations in the contractual indices.Those with fixed financial charges are recorded at future value, adjusted to reflect unearnedincome or unexpired expenses.

(c) The allowance for loan losses is recorded based on the parameters of CMN Resolution2682/1999, for domestic branches and subsidiaries, as well as those abroad, taking intoconsideration the risks of the transactions based on consistent and verifiable criteria, supported byinternal and external information, and covering all aspects established in the resolution.


(d) Securities

The securities purchased for the Bank's portfolio are recorded at the actual amount paid, includingbrokerage charges and fees, and are classified based on the intention of management, in threedifferent categories:

(d.1) Trading securities: these are securities purchased to be actively and frequently traded. They areadjusted to market value on a monthly basis and increases and decreases in value are recordedin income and expense accounts for the period.

(d.2) Securities available for sale: these are securities which, although not actively and frequentlytraded, can be traded at any time. They are adjusted to market value on a monthly basis andincreases and decreases in value are recorded, net of tax effects, in a separate stockholders'equity account.

(d.3) Securities held to maturity: these are securities that the Bank intends and has the financialcapacity to hold to maturity. The financial capacity is supported by a cash flow projection thatdoes not consider the possibility of sale of these securities. They are not adjusted to marketvalue.

The mark-to-market methodology used for securities was established following consistent andverifiable criteria, which consider the average price of trading on the day of calculation or, if notavailable, pricing models that estimate the probable net realizable value.

Income accrued on the securities, irrespective of the category in which they are classified, isappropriated on a pro rata basis on the accrual basis of accounting up to the date of maturity orof final sale, on an exponential or straight-line method, based on the contractual remunerationand purchase price, and recorded directly in income for the period.

Losses with securities classified as available for sale and held to maturity, if judged not to betemporary, are recorded directly in expense for the period and a new cost basis for the asset isdetermined.

Upon sale, the difference between the sale amount and the cost of purchase plus accruedincome is considered as a result of the transaction and is recorded on the date of the transactionas a gain or loss on securities.


(e) Derivative financial instruments

Derivative financial instruments are recorded at market value at each monthly trial balance andbalance sheet date. Increases or decreases in value are recorded in income or expenseaccounts of the respective financial instruments.

Derivative financial instruments used to offset, in whole or in part, the risks arising from exposureto variations in financial asset or liability market values are considered hedge instruments andare classified according to their nature:

(e.1) Market risk hedge - increases or decreases in value of the financial instruments classified in thiscategory, as well as of the item hedged, are recorded in income and expense accounts for theperiod.

(e.2) Cash flow hedge - the effective amount of the increases or decreases in value of the financialinstruments classified in this category is recorded, net of tax effects, in a separate stockholders'equity account. The effective amount is that in which the variation of the item hedged, directlyrelated to the corresponding risk, is offset by the variation in the financial instrument used forhedge, considering the accumulated effect of the transaction. Other variations in theseinstruments are recorded directly in income or expense accounts for the period.

The mark-to-market methodology used for derivative financial instruments was establishedfollowing consistent and verifiable criteria, which consider the average price of trading on thedate of calculation or, if not available, pricing models that estimate the probable net realizablevalue, according to the characteristics of the derivative.

(f) Permanent assets

(f.1) Investments are stated at cost and, when material, are recorded on the equity method ofaccounting.

(f.2) Property and equipment is stated at cost less depreciation calculated on the straight-line methodat the following annual rates: buildings and improvements - 4%; vehicles, installations andequipment - 20%; others - 10%;

(f.3) Organization and expansion expenses recorded in deferred charges relate to: leaseholdimprovements in properties owned by third parties for the installation of facilities, amortized atrates based on the rental terms; cost of purchase and development of systems, amortized at theannual rate of 20%.


(g) Vacations, paid leave and thirteenth month salaries are accrued monthly, in accordance with theperiod of acquisition of the right.

(h) Current benefits for existing employees are recognized on the accrual basis as the services areprovided. Post-employment benefits, comprising supplementary retirement benefits, medicalassistance and other benefits for which the Bank is responsible, were calculated at December 31,2004 in accordance with criteria established by CVM Deliberation 371/2000, considering a 6.7%annual interest rate, and are being allocated monthly in accordance with this calculation, as shownin Note 23. The retirement benefit liability relating to the assumption of the obligation to employeesadmitted before April 14, 1967 was provided on the basis of an actuarial calculation consideringthe 6.0% annual interest rate established in the contract between PREVI - Caixa de Previdênciados Funcionários do Banco do Brasil and the Bank.

(i) Corporate income tax is calculated at the basic rate of 15% plus a surcharge of 10% on taxableincome above a specific limit, and the social contribution on net income is calculated at the basicrate of 9% on taxable income (Note 17(a)). Income tax and social contribution on net income taxcredits are recorded in accordance with the criteria mentioned in Note 18 and are supported by astudy of future realization prepared by management.

4 Interbank Investments

Current and long-term

BB - Domesticand foreign branches BB - Consolidated

03.31.2005 03.31.2004 03.31.2005 03.31.2004

Repurchase agreements 4,007,214 5,403,338 3,952,762 5,349,360Sales pending settlement - own operations 1,499,865 779,142 1,499,864 784,291Sales pending settlement - financed operations 2,507,349 4,624,196 2,452,898 4,565,069

Interbank deposits 18,757,788 29,133,869 13,557,549 22,739,713Foreign currency deposits 171,034 14,836,458 171,034 243,841

Total 22,936,036 49,373,665 17,681,345 28,332,914


5 Securities and Derivative Financial Instruments

Securities are classified in three categories: trading securities, securities available for sale andsecurities held to maturity, and derivative financial instruments in derivates for trading andderivatives for hedging purposes. Trading securities are adjusted to market value and theadjustments recorded as income or expense for the period while similar adjustments forsecurities available for sale are recorded in a separate stockholders' equity account. Securitiesheld to maturity are stated at cost plus income accrued in the period.

The derivative financial instruments for trading, used at the request of clients or for own account,do not comply with hedging criteria and are recorded at market value and the adjustmentsrecorded as income or expense. Derivatives for hedging purposes are used to protect exposuresto risk or to modify the characteristics of financial assets and liabilities. They are directly relatedto a specific transaction and are also adjusted to market value with contra-entry to income orexpense when a market risk hedge, and to a separate stockholders' equity account when a cashflow hedge.

The parameters for the calculation of market values of marketable securities and derivativefinancial instruments are:

. the average of the representative trading price on the day of the calculation and the dailyadjustment of future market transactions reported by ANDIMA, BM&F, BOVESPA and theBrazilian Central Bank; or

. the net probable realizable value obtained through the use of curves of future interest rates,foreign exchange rates, price and currency indices, all consistent with prices in effect duringthe year.


(a) Securities

The cost plus accrued income and market value of the securities at March 31, 2005 are as follows:

BB - domestic and foreign branches

March 31, 2005 March 31, 2004

Market value Total Total

Maturity in daysWith nomaturity 0-30 31-180 181-360 Over 360 Cost

Marketvalue

Unrealizedgain (loss) Cost

Marketvalue

Unrealizedgain (loss)

I - Trading securities 2,597 800,825 7,190,219 2,764,644 452,450 11,241,512 11,210,735 -- 12,222,254 12,254,663 --

Domestic 2,597 800,825 7,190,219 2,764,644 452,450 11,241,512 11,210,735 -- 12,222,254 12,254,663 --Financial Treasury Bills -- 770,846 5,696,987 1,774,405 200,985 8,444,072 8,443,223 -- 10,349,651 10,359,590 --Federal Treasury Bills -- 29,979 1,493,232 990,239 113,813 2,652,306 2,627,263 -- 1,555,073 1,556,943 --Federal Treasury Notes -- -- -- -- 137,652 142,671 137,652 -- 314,545 335,172 --Shares in listed companies 2,597 -- -- -- -- 2,463 2,597 -- 2,985 2,958 --

II - Securities available for sale 150,635 71,515 960,594 4,204,162 28,680,903 34,085,620 34,067,809 (20,322) 28,271,230 28,610,364 304,606

Domestic 141,008 62,205 426,720 4,089,872 27,214,930 31,895,794 31,934,735 36,430 25,740,481 26,152,173 377,164Financial Treasury Bills -- -- -- 1,401,234 20,112,244 21,502,995 21,513,478 10,483 14,124,663 14,137,568 12,905Brazilian Central Bank Notes -- -- -- 254,530 221,271 477,393 475,801 (4,102) 858,628 890,197 8,478Federal Treasury Notes -- -- -- 1,735,996 3,241,053 4,944,300 4,977,049 32,749 6,310,257 6,595,722 274,028Federal Government securities – other -- -- -- 405,752 3,599,975 3,992,003 4,005,727 13,724 4,380,852 4,462,540 81,688Debentures -- -- -- 900 26,723 27,283 27,623 339 24,179 24,774 595Agricultural debt securities -- 747 1,548 4,819 11,012 21,208 18,126 (3,083) 27,158 24,323 (2,835)Shares in investment funds 129,401 -- -- -- -- 129,401 129,401 -- 5,834 5,834 --Shares in social development funds 1,461 -- -- -- -- 1,545 1,461 (84) 1,545 -- --Shares in listed companies 10,146 -- -- -- -- 7,365 10,146 2,781 7,365 9,400 2,035

Commodities -- 61,458 425,172 286,641 2,652 792,301 775,923 (16,377) -- -- --


March 31, 2005 March 31, 2004



Marketvalue


Marketvalue


Foreign 9,627 9,310 533,874 114,290 1,465,973 2,189,826 2,133,074 (56,752) 2,530,749 2,458,191 (72,558)Eurobonds -- -- 26,888 13,496 32,794 73,601 73,178 (423) 215,667 216,162 495Brazilian foreign debt securities -- -- 374,034 100,794 1,299,735 1,830,818 1,774,563 (56,255) 1,640,889 1,563,999 (76,890)Foreign debt securities – other countries -- 9,310 132,952 -- 133,444 276,745 275,706 (1,039) 4,255 3,720 (535)Shares in equity funds 9,626 -- -- -- -- 8,662 9,626 964 8,947 9,728 781Shares in listed companies 1 -- -- -- -- -- 1 1 -- 1 1Other -- -- -- -- -- -- -- -- 660,991 664,581 3,590

III - Securities held to maturity -- 262,443 2,184,476 2,432,098 21,476,019 27,036,452 26,355,036 -- 24,956,573 24,452,905 --

Domestic -- -- 2,177,570 1,963,576 20,593,142 25,779,909 24,996,563 -- 24,956,573Debentures -- -- -- -- 47,984 50,982 47,984 -- 23,744,979Financial Treasury Bills -- -- 1,175,662 1,175,011 17,287,191 19,885,342 19,637,864 -- 49,255Federal Treasury Notes -- -- -- -- 1,801,768 2,271,842 1,801,768 -- 19,056,017Federal Government securities – other -- -- -- 516,664 1,453,883 1,989,090 1,970,547 -- 2,100,958Commodities -- 262,275 1,001,908 264,722 2,316 1,574,981 1,531,221 -- 2,538,749

Other -- -- -- 7,179 -- 7,672 7,179 -- --Foreign -- 168 6,906 468,522 882,877 1,256,543 1,358,473 -- 1,211,594 1,372,112 --

Brazilian foreign debt securities -- -- -- 468,276 881,621 1,247,984 1,349,897 -- 1,144,706 1,305,229 --Certificates of Deposit -- 23 6,906 -- -- 6,929 6,929 -- 62,696 62,691 --Foreign debt securities – other countries -- 145 -- 246 1,256 1,630 1,647 -- 1,217 1,217 --Other -- -- -- -- -- -- -- -- 2,975 2,975 --

-- --

Total 153,232 1,134,783 10,335,289 9,400,904 50,609,372 72,363,584 71,633,580 (20.322 65,450,057 65,317,932 304,606

BB - Domestic and Foreign branches


March 31, 2005 March 31, 2004



Marketvalue


Marketvalue


Total by portfolio 153,232 1,134,783 10,335,289 9,400,904 50,609,372 72,363,584 71,633,580 (20,322) 65,450,057 65,317,932 304,606

(a) Own portfolio 153,232 470,476 6,885,088 5,253,980 14,927,379 28,165,996 27,690,155 1,808 22,504,320 22,420,884 250,064(b) Subject to repurchase agreements -- 664,307 3,450,201 3,625,720 33,662,005 41,648,603 41,402,233 (22,169) 35,925,654 35,884,599 59,389(c) Deposits with the Brazilian Central Bank -- -- -- 520,079 1,659,182 2,185,010 2,179,261 -- 6,697,252 6,690,998 (4,876)(d) Pledged in guarantee -- -- -- 1,125 360,806 363,975 361,931 39 322,831 321,451 29


March 31, 2005 March 31, 2004


Maturity in yearsWith nomaturity

Due in upto one year

Due from1 to 5 years


Due after10 years Cost Market value Cost Market value

Total by category 153,232 20,870,976 43,022,731 6,713,767 872,874 72,363,584 71,633,580 65,450,057 65,317,932

I - Trading securities 2,597 10,755,688 452,450 -- -- 11,241,512 11,210,735 12,222,254 12,254,663II - Securities available for sale 150,635 5,236,271 27,731,099 76,931 872,874 34,085,620 34,067,810 28,271,230 28,610,364III - Securities held to maturity -- 4,879,017 14,839,182 6,636,836 -- 27,036,452 26,355,035 24,956,573 24,452,905


The portfolio after marking-to-market is as follows:

March 31, 2005 March 31, 2004

% %of the total of the total

portfolio portfolio

Total by category 72,314,996 100% 65,821,600 100%

I - Trading securities 11,210,735 16% 12,254,663 19%II - Securities available for sale 34,067,809 47% 28,610,364 43%III - Securities held to maturity 27,036,452 37% 24,956,573 38%


BB - Consolidated

March 31, 2005 March 31, 2004


Maturity in daysWith nomaturity 0 - 30 31 - 180 181 - 360 Over 360 Cost

Marketvalue


Marketvalue


I - Trading securities 2,597 804,999 7,201,925 2,846,863 452,450 11,341,162 11,308,834 -- 12,306,362 12,338,273 --

Domestic 2,597 800,825 7,190,219 2,775,899 452,450 11,252,763 11,221,990 -- 12,222,254 12,254,663 --Financial Treasury Bills -- 770,846 5,696,987 1,785,660 200,985 8,455,323 8,454,478 -- 10,349,651 10,359,590 --Federal Treasury Bills -- 29,979 1,493,232 990,239 113,813 2,652,306 2,627,263 -- 1,555,073 1,556,943 --Federal Treasury Notes -- -- -- -- 137,652 142,671 137,652 -- 314,545 335,172 --Shares in listed companies 2,597 -- -- -- -- 2,463 2,597 -- 2,985 2,958 --

Foreign -- 4,174 11,706 70,964 -- 88,399 86,844 -- 84,108 83,610 --Eurobonds -- 864 11,706 43,313 -- 57,022 55,883 -- 55,982 55,682 --Brazilian foreign debt securities -- 576 -- 23,876 -- 24,739 24,452 -- 22,239 22,084 --Foreign debt securities - other countries -- 2,734 -- 3,775 -- 6,638 6,509 -- 5,887 5,844 --

II – Securities available for sale 767,752 122,394 1,111,256 4,233,460 28,857,276 35,131,526 35,092,138 (41,897) 29,941,682 30,245,926 311,589

Domestic 720,775 106,473 573,787 4,113,218 27,293,324 32,786,673 32,807,577 18,395 27,189,289 27,572,685 390,741Financial Treasury Bills -- -- -- 1,421,034 20,112,244 21,522,788 21,533,278 10,491 14,152,441 14,165,554 54,986Brazilian Central Bank Notes -- -- -- 254,530 221,271 477,393 475,801 (4,103) 858,628 890,197 8,478Federal Treasury Notes -- -- -- 1,735,996 3,241,053 4,944,300 4,977,049 32,749 6,310,257 6,595,722 274,028Federal Government securities – other -- -- -- 405,752 3,599,975 3,992,003 4,005,727 13,724 4,396,801 4,478,413 81,612Debentures -- -- -- 900 105,098 105,837 105,998 161 194,906 196,114 1,208Agricultural debt securities -- 747 1,548 4,819 11,012 21,208 18,126 (3,082) 27,158 24,323 (2,835)

Shares in fixed income mutual funds -- -- -- -- -- -- -- -- 1,018 1,018 --Shares in investment funds 129,406 -- -- -- -- 129,406 129,406 -- 5,834 5,834 --Shares in social development funds 1,461 -- -- -- -- 10,321 1,461 (8,860) 10,321 -- (8,506)Shares in listed companies 420,601 -- -- -- -- 403,724 420,601 16,877 435,335 436,625 1,290

Commodities -- 105,726 560,409 289,505 2,671 974,288 958,311 (15,976) 606,683 620,232 13,549Shares in equity funds 169,307 -- -- -- -- 192,077 169,307 (22,770) 189,099 156,838 (32,261)Securities in special status company -- -- -- -- -- 808 -- (808) 808 -- (808)


March 31, 2005 March 31, 2004


Maturity in daysWith nomaturity 0 - 30 31 - 180 181 - 360 Over 360 Cost

Marketvalue


Marketvalue


Other -- -- 11,830 682 -- 12,520 12,512 (8) -- -- --Foreign 46,977 15,921 537,469 120,242 1,563,952 2,344,853 2,284,561 (60,292) 2,752,393 2,673,241 (79,152)

Eurobonds -- -- 26,888 13,496 32,794 73,601 73,178 (423) 215,667 216,162 495Brazilian foreign debt securities -- -- 377,629 100,794 1,397,688 1,923,618 1,876,111 (47,507) 1,741,928 1,670,406 (71,522)Foreign debt securities - other countries -- 9,310 132,952 -- 133,444 276,745 275,706 (1,039) -- -- ---Shares in equity funds 45,384 -- -- -- -- 40,129 45,384 5,255 43,276 48,661 --Shares in listed companies 1,593 -- -- -- -- 1,199 1,593 394 1,308 1,485 177Other -- 6,611 -- 5,952 26 29,561 12,589 (16,972) 745,959 732,807 (13,152)

III - Securities held to maturity -- 262,448 2,184,476 2,432,098 21,478,930 27,039,356 26,357,952 -- 24,959,279 24,455,622 --

Domestic -- 262,275 2,177,570 1,963,576 20,593,142 25,779,909 24,996,563 -- 23,744,979 23,080,793 --Debentures -- -- -- -- 47,984 50,982 47,984 -- 49,255 49,202 --Financial Treasury Bills -- -- 1,175,662 1,175,011 17,287,191 19,885,342 19,637,864 -- 19,056,017 18,931,151 --Federal Treasury Notes -- -- -- -- 1,801,768 2,271,842 1,801,768 -- 2,100,958 1,595,130 --Federal Government securities – other -- -- -- 516,664 1,453,883 1,989,090 1,970,547 -- 2,538,749 2,505,310 --Commodities -- 262,275 1,001,908 264,722 2,316 1,574,981 1,531,221 -- -- -- --

Other -- -- -- 7,179 -- 7,672 7,179 -- -- -- --Foreign -- 173 6,906 468,522 885,788 1,259,447 1,361,389 -- 1,214,300 1,374,829 --

Brazilian foreign debt securities -- -- -- 468,276 884,332 1,250,694 1,352,608 -- 1,147,212 1,307,735 --Certificates of deposit -- 23 6,906 -- -- 6,929 6,929 -- 62,695 62,691 --Foreign debt securities - other countries -- 148 -- 246 1,322 1,696 1,716 -- -- -- --Other -- 2 -- -- 134 128 136 -- 3,108 3,113 --

Total 770,349 1,189,841 10,497,657 9,512,421 50,788,656 73,512,044 72,758,924 (41,897) 67,207,323 67,039,821 311,589


BB - Consolidated

March 31, 2005 March 31, 2004


Maturity in daysWith nomaturity 0 - 30 31 - 180 181 - 360 Over 360 Cost Market value

Unrealizedgain (loss) Cost Market value


Total by portfolio 770,349 1,189,841 10,497,657 9,512,421 50,788,656 73,512,044 72,758,924 (41,897) 67,207,323 67,039,821 311,589(a) Own portfolio 770,349 525,534 7,043,861 5,361,951 14,930,316 29,143,082 28,632,011 (28,514) 24,140,364 24,016,217 251,714(b) Subject to repurchase agreements -- 664,307 3,453,796 3,629,266 33,838,352 41,819,977 41,585,721 (13,422) 36,046,875 36,011,155 64,722(c) Deposits with the Brazilian Central Bank -- -- -- 520,079 1,659,182 2,185,010 2,179,261 -- 6,697,253 6,690,998 (4,876)(d) Pledged in guarantee -- -- -- 1,125 360,806 363,975 361,931 39 322,831 321,451 29

BB - Consolidated

March 31, 2005 March 31, 2004


Maturity in yearsWith nomaturity

Due in up toone year



Due after10 years Cost Market value Cost Market value

Total by category 770,349 21,199,919 43,103,957 6,713,872 970,827 73,512,044 72,758,924 67,207,323 67,039,821

I - Trading securities 2,597 10,853,787 452,450 -- -- 11,341,162 11,308,834 12,306,362 12,338,273II - Securities available for sale 767,752 5,467,110 27,809,520 76,930 970,827 35,131,527 35,092,139 29,941,682 30,245,926III - Securities held to maturity - 4,879,022 14,841,987 6,636,942 -- 27,039,355 26,357,951 24,959,279 24,455,622


Notes to the Quarterly Informationat March 31, 2005 and 2004All amounts in thousands of reais unless otherwise indicated

The portfolio after marking-to-market is as follows:

March 31, 2005 March 31, 2004% of total % of totalportfolio portfolio

Total by portfolio 73,440,328 100% 67,543,478 100%

I - Trading securities 11,308,834 15% 12,338,273 18%II - Securities available for sale 35,092,138 48% 30,245,926 45%III - Securities held to maturity 27,039,356 37% 24,959,279 37%

No reclassifications of marketable securities were made between the above categories duringthe period.

(b) Derivative financial instruments

The Bank uses derivative financial instruments to manage, in a consolidated manner, itspositions and to meet clients' needs, classifying own positions into Hedging (market risk) andTrading, both with limits of approval. This information is made available to the areas of pricing,trading, controls and calculation of results, which are segregated within the Bank.

The models used to manage risks with derivatives are reviewed periodically and the decisionsmade follow the best risk/return relationship, estimating possible losses based on the analysis ofmacroeconomic scenarios

The Bank uses appropriate tools and systems to manage the derivatives. Trading in newderivatives, standardized or not, is subject to a previous risk analysis.

The hedge strategy of the equity positions is in line with the macroeconomic analyses and isapproved by management.

Risk analysis of the subsidiaries is individual and its control consolidated.

The Bank uses statistical methods and simulations to measure the risks of its positions,including derivatives, using models of values at risk sensibility and stress analysis.



Risks

The main risks inherent to derivative financial instruments resulting from the Bank's and itssubsidiaries' business are credit, market and operating risks, all similar to those related to othertypes of financial instruments.

Credit risk is the exposure to loss in the event of default by a counterparty to a transaction. Thecredit exposure in futures contracts is minimized due to daily settlement in cash. Swap contractsregistered at CETIP and at BM&F are subject to credit risk if the counterparty is unable orunwilling to comply with his contractual liabilities. Total credit exposure in swaps at March 31,2005 is R$ 949,642 (R$ 741,206 at March 31, 2004). The credit risk associated with optionscontracts is limited to the premiums paid on purchased options.

Market risk is the exposure created by a potential fluctuation in interest rates, exchange rates,quotations of goods, prices quoted on stock markets and other values, and is a function of thetype of product, the volume of operations, the term and conditions of the contract and theunderlying volatility.

Operating risk is the probability of financial losses resulting from failures or inadequacy ofpeople, processes and systems, or factors such as catastrophes or criminal activities.

The tables below show the notional amounts restated to market value and the respective netexposures in the balance sheet at March 31, 2005 for the derivative financial instrumentsclassified in conformity with their classification as Trading or Hedge instruments.



(b,1) Trading derivatives


March 31, 2005 March 31, 2004Counterparty Notional Market Notional Market

By index (*) Amount Cost value amount Cost valueExchange tradingFutures contractsPurchase commitments 1,380,977 (25,479) (25,453) 1,488,080 (26,761) (26,300)

DI E -- 731 731 4,651 (1,302) (1,302)U.S. dollar E 38,485 1,764 1,764 859,515 (12,330) (11,869)Index E -- 127 127 2,653 (2,360) (2,360)

Foreign exchange couponE 740,112 (28,101)

(28,101)621,261 (10,779) (10,779)

Commodities E -- -- -- -- 10 10Libor FI 602,380 -- 26 -- -- --

Sales commitments 2,607,631 14,236 16,074 2,893,463 (991) (1,172)DI E 668,607 7,166 7,166 1,214,427 909 909U.S. dollar E 20,130 622 622 20,461 998 817Index E -- 416 416 -- 1,673 1,673Foreign exchange coupon E 290,086 15,259 15,259 992,506 15,010 15,010Commodities E -- -- -- -- 47 47SCC E 298,773 (9,227) (9,227) 666,069 (19,628) (19,628)Libor FI 1,330,035 -- 1,838 -- -- --

Fixed-term optionsAsset position 410,451 228,702 222,463 -- -- -- Securities E 209,513 209,513 209,513 -- -- -- Currencies E 200,938 19,189 12,950 -- -- --

Liability position (473,012) (229,094) (213,549) -- -- -- Securities E (209,513) (209,513) (209,513) -- -- -- Currencies E (263,499) (19,581) (4,036) -- -- --

Options marketPurchase options 200 65 31 -- -- --

Shares E 200 65 31 -- -- --

Sales options (200) (44) (19) -- -- --Shares E (200) (44) (19) -- -- --

Over-the-counter tradingSwap contracts

Asset position 5,876,479 504,927 523,506 6,853,376 277,378 293,318DI C 2,294,266 374,304 390,515 2,249,067 162,076 160,022

FI 291,038 58,851 61,029 519,046 37,208 32,080Foreign currency C 20,050 262 116 4,701 110 146

FI 1,857,749 56,645 63,402 2,659,139 73,036 93,303Prefixed C 334,646 9,368 3,803 994,468 4,743 7,407

FI -- -- -- 5,700 (15) 3Referential Rate (TR) C -- -- -- 32,400 98 235

IGPM C 24,564 1,249 393 -- -- --




March 31, 2005 March 31, 2004Counterparty Notional Market Notional Market

By index (*) Amount Cost value amount Cost valueOther -- 1,054,166 4,248 4,248 388,855 122 122

Liability position12,091,531 (512,106) (535,356) 13,471,63

1(457,760) (471,330)

DI C 9,751,619 (316,180)

(316,629)6,779,652 (273,565) (273,488)

FI 250,595 (76,349)

(76,817)719,515 (63,110) (55,513)

Foreign currency C 120,924 (793) (399) 228,942 (3,265) (2,817)FI 687,615 (24,102) (46,671) 2,795,143 (45,064) (66,346)

Prefixed C 14,571 (235) (393) 43,631 (697) (969)

SELIC rate C 585,394 (60,820)

(60,820)1,343,211 (41,807) (41,807)

Referential Rate (TR) C 680,813 (33,627) (33,627) 751,686 (30,087) (30,225)Other -- -- -- -- 809,851 (165) (165)

(*) Counterparty: (E) Exchange, (FI) Financial Institution, (C) Customer.


March 31, 2005 March 31, 2004

Notional Market Notional MarketBy maturity amount Cost value amount Cost value

Futures contractsPurchase commitments 1,380,977 -- -- 1,488,080 (511) (50)

Up to 30 days 135,881 -- -- 700,717 -- --31 to 60 days 38,485 -- -- 146,341 -- --61 to 90 days 181,247 -- -- 15,110 (511) (50)91 to 180 days 229,933 -- -- -- -- --181 to 360 days 236,361 -- -- 308,761 -- --1 to 5 years 559,070 -- -- 317,151 -- --

Sales commitments 2,607,631 -- -- 2,893,463 183 2Up to 30 days 50,109 -- -- 677,246 52 (11)31 to 60 days 13,706 -- -- 1,345 16 (2)61 to 90 days 175,916 -- -- 210 5 --91 to 180 days 634,063 -- -- 1,062,164 110 15181 to 360 days 794,337 -- -- 343,297 -- --1 to 5 years 811,561 -- -- 809,201 -- --

Over 5 years 127,939 -- -- -- -- --




March 31, 2005 March 31, 2004


Fixed-term currency optionsAsset position 410,451 228,702 222,463 -- -- --

Up to 30 days 242,240 211,048 211,083 -- -- --31 to 60 days 70,646 1,614 1,901 -- -- --61 to 90 days 16,263 2,249 1,853 -- -- --91 to 180 days 44,823 6,958 4,662 -- -- --181 to 360 days 22,014 2,988 1,162 -- -- --1 to 5 years 14,465 3,845 1,802 -- -- --

Liability position (473,012) (229,094) (213,549) -- -- --Up to 30 days (231,753) (209,865) (209,893) -- -- --31 to 60 days (17,470) (419) (246) -- -- --61 to 90 days (23,437) (646) (123) -- -- --91 to 180 days (89,267) (6,638) (2,615) -- -- --181 to 360 days (107,082) (10,513) (721) -- -- --

1 to 5 years (4,003) (1,013) 49 -- -- --

Options marketPurchase optionsShares 200 65 31 -- -- --

Up to 30 days 200 65 31 -- -- --

Sales optionsShares (200) (44) (19) -- -- --

Up to 30 days (200) (44) (19) -- -- --

Swap contractsAsset 5,876,479 504,927 523,506 6,853,376 277,378 293,318

Up to 30 days 2,163,452 207,705 198,173 1,701,115 22,066 28,71531 to 60 days 504,849 39,040 41,464 381,950 20,745 28,47061 to 90 days 513,861 17,802 17,184 720,550 44,079 48,94591 to 180 days 772,388 66,899 71,547 1,607,325 83,123 89,088181 to 360 days 1,308,062 116,849 133,781 1,099,715 46,396 39,0791 to 5 years 613,867 56,632 61,357 1,342,721 60,969 59,021

Liability 12,091,531 (512,106) (535,356) 13,471,631 (457,760) (471,330)Up to 30 days 440,715 (69,772) (71,933) 2,838,012 (35,258) (54,850)31 to 60 days 161,488 (8,181) (9,308) 388,214 (19,193) (19,951)61 to 90 days 570,878 (74,752) (75,548) 501,348 (21,197) (24,376)91 to 180 days 4,888,346 (199,010) (200,481) 4,350,097 (201,802) (200,936)181 to 360 days 1,975,035 (71,640) (89,422) 2,082,930 (68,249) (65,597)1 to 5 years 4,055,069 (88,751) (88,664) 3,311,030 (112,061) (105,620)



BB - Consolidated

March 31, 2005 March 31, 2004

Counterparty Notional Market Notional MarketBy Index (*) amount Cost value amount Cost value

Exchange tradingFutures contractsPurchase commitments 1,380,977 (25,479) (25,453) 1,488,080 (26,761) (26,300) DI E -- 731 731 4,651 (1,302) (1,302) U.S. dollar E 38,485 1,764 1,764 859,515 (12,330) (11,869) Index E -- 127 127 2,653 (2,360) (2,360) Foreign exchange coupon E 740,112 (28,101) (28,101) 621,261 (10,779) (10,779) Commodities E -- -- -- -- 10 10 Libor FI 602,380 -- 26 -- -- --

Sales commitments 2,607,631 14,236 16,074 2,893,463 (991) (1,172) DI E 668,607 7,166 7,166 1,214,427 909 909 U.S. dollar E 20,130 622 622 20,461 998 817 Index E -- 416 416 -- 1,673 1,673 Foreign exchange coupon E 290,086 15,259 15,259 992,506 15,010 15,010 Commodities E -- -- -- -- 47 47 SCC E 298,773 (9,227) (9,227) 666,069 (19,628) (19,628) Libor FI 1,330,035 -- 1,838 -- -- --

Fixed-term optionsAsset position 410,451 228,702 222,463 -- -- -- Securities E 209,513 209,513 209,513 -- -- -- Currencies E 200,938 19,189 12,950 -- -- --

Liability position (473,012) (229,094) (213,549) -- -- -- Securities E (209,513) (209,513) (209,513) -- -- -- Currencies E (263,499) (19,581) (4,036) -- -- --

Options marketPurchase options 5,842 315 76 65,732 3,421 93 Shares E 200 65 31 -- -- -- Financial assets and goods C 5,642 250 45 65,732 3,421 93

Sales options 5,442 (294) (64) 65,732 (3,421) (93) Shares E (200) (44) (19) -- -- -- Financial assets and goods FI 5,642 (250) (45) 65,732 (3,421) (93)

Over-the-counter tradingSwap contractsAsset position 5,615,171 402,921 404,923 5,825,921 255,176 263,283 DI C 2,294,266 374,304 390,515 2,249,067 162,076 160,022

FI 271,448 50,890 51,916 499,456 31,711 24,588 Foreign currency C 20,050 262 116 -- -- --

FI 1,704,725 (36,642) (45,358) 2,308,495 59,477 75,553 Prefixed C 245,953 8,610 3,121 347,648 1,692 2,763 Referential Rate (TR) C -- -- -- 32,400 98 235

IGPM C 24,564 1,249 393 -- -- -- Other -- 1,054,165 4,248 4,220 388,855 122 122



Liability position 11,943,517 (437,732) (459,621) 13,385,682 (456,713) (469,467) DI C 9,604,970 (316,054) (316,054) 6,779,652 (273,565) (273,488)

FI 250,595 (76,349) (76,817) 719,515 (63,110) (55,513) Foreign currency C 120,924 (793) (399) 228,942 (3,265) (2,817)

FI 686,250 50,146 27,541 2,709,194 (44,017) (64,483) Prefixed C 14,571 (235) (394) 43,631 (697) (969) SELIC rate C 585,394 (60,820) (60,820) 1,343,211 (41,807) (41,807) Referential Rate (TR) C 680,813 (33,627) (32,678) 751,686 (30,087) (30,225) Other -- -- -- -- 809,851 (165) (165)


BB - Consolidated

March 31, 2005 March 31, 2004


Futures contractsPurchase commitments 1,380,977 -- -- 1,488,080 (511) (50)

Up to 30 days 135,881 -- -- 700,717 -- --31 to 60 days 38,485 -- -- 146,341 -- --61 to 90 days 181,247 -- -- -- -- --91 to 180 days 229,933 -- -- 15,110 (511) (50)181 to 360 days 236,361 -- -- 308,761 -- --1 to 5 years 559,070 -- -- 317,151 -- --

Sales commitments 2,607,631 -- -- 2,893,463 183 2Up to 30 days 50,109 -- -- 677,246 52 (11)31 to 60 days 13,706 -- -- 1,345 16 (2)61 to 90 days 175,916 -- -- 210 5 --91 to 180 days 634,063 -- -- 1,062,164 110 15181 to 360 days 794,337 -- -- 343,297 -- --1 to 5 years 811,561 -- -- 809,201 -- --

Over 5 years 127,939 -- -- -- -- --



BB - Consolidated

March 31, 2005 March 31, 2004


Fixed-term optionsAsset position 410,451 228,702 222,463 -- -- --

Up to 30 days 242,240 211,048 211,083 -- -- --31 to 60 days 70,646 1,614 1,901 -- -- --61 to 90 days 16,263 2,249 1,853 -- -- --91 to 180 days 44,823 6,958 4,662 -- -- --181 to 360 days 22,014 2,988 1,162 -- -- --1 to 5 years 14,465 3,845 1,802 -- -- --

Liability position (473,012) (229,094) (213,549) -- -- --Up to 30 days (231,753) (209,865) (209,893) -- -- --31 to 60 days (17,470) (419) (246) -- -- --61 to 90 days (23,437) (646) (123) -- -- --91 to 180 days (89,267) (6,638) (2,615) -- -- --181 to 360 days (107,082) (10,513) (721) -- -- --

(4,003) (1,013) 49Options marketPurchase optionsShares 5,842 315 76 65,732 3,421 93

Up to 30 days 2,366 195 39 56,159 2,920 2431 to 60 days 983 77 14 9,288 481 5691 to 180 days 2,109 28 12 285 20 13181 to 360 days 384 15 11 -- -- --

Sales optionsShares 5,442 (294) (64) 65,732 (3,421) (93)

Up to 30 days 1,966 (174) (27) 56,159 (2,920) (24)31 to 60 days 983 (77) (14) 9,288 (481) (56)91 to 180 days 2,109 (28) (12) 285 (20) (13)181 to 360 days 384 (15) (11) -- -- --

Swap contractsAsset 5,615,171 402,921 404,923 5,825,921 255,176 263,283

Up to 30 days 2,136,341 192,436 182,913 1,473,488 19,786 24,66931 to 60 days 453,102 24,395 26,865 209,129 10,240 17,40461 to 90 days 503,991 12,777 12,132 576,300 40,920 44,63291 to 180 days 772,215 61,873 66,532 1,299,870 82,403 86,332181 to 360 days 1,136,022 64,804 65,157 944,585 46,407 38,7821 to 5 years 613,500 46,636 51,324 1,322,549 55,420 51,464

Liability 11,943,517 (437,732) (459,621) 13,385,682 (456,713) (469,467)Up to 30 days 398,714 (49,309) (51,392) 2,838,012 (35,258) (54,850)31 to 60 days 130,009 (8,186) (9,243) 302,265 (18,146) (18,088)61 to 90 days 541,107 (65,752) (66,469) 501,348 (21,197) (24,376)



BB - Consolidated

March 31, 2005 March 31, 2004


91 to 180 days 4,844,781 (189,166) (190,411) 4,350,097 (201,802) (200,936)181 to 360 days 1,975,035 (46,640) (64,415) 2,082,930 (68,249) (65,597)1 to 5 years 4,053,871 (78,679) (77,691) 3,311,030 (112,061) (105,620)

(b.2) Hedge derivatives


March 31, 2005 March 31, 2004

Counterparty Notional Market Notional MarketBy index (*) amount Cost value amount Cost value

Exchange tradingFutures contractsPurchase commitments -- -- -- 121,891 1,750 1,750

Foreign exchange coupon E -- -- -- 121,891 1,750 1,750

Sales commitments -- -- -- 195,655 7,124 7,124Foreign exchange coupon E -- -- -- 195,655 7,124 7,124


Asset position 125,450 21,184 21,579 745,997 65,126 66,242DI C 66,647 6,653 6,957 242,273 21,667 23,177

FI 58,803 14,531 14,622 494,117 43,464 42,984 Foreign currency C -- -- -- 828 10 3

Prefixed C -- -- -- 8,779 (15) 78

Liability position (33,039) (417) (305) 63,390 (6,431) (2,254)Foreign currency C (33,039) (417) (305) 60,000 (6,272) (2,064)Prefixed C -- -- -- 3,390 (159) (190)



March 31, 2005 March 31, 2004


Futures contractsPurchase commitments -- -- -- 121,891 -- --

181 to 360 days -- -- -- 121,891 -- --




March 31, 2005 March 31, 2004


Sales commitments -- -- -- 195,655 -- --Up to 30 days -- -- -- 15,407 -- -- 1 to 5 years -- -- -- 180,248 -- --

Swap contractsAsset 125,450 21,184 21,579 745,997 65,126 66,242

Up to 30 days 23,587 3,735 3,825 53,350 (48) 50231 to 60 days 26,009 1,106 1,214 15,636 (56) 16461 to 90 days 14,600 1,631 1,709 61,560 5,571 6,21291 to 180 days 1,350 33 43 560,688 57,954 57,921181 to 360 days 59,904 14,679 14,788 23,266 573 5441 to 5 years -- -- -- 31,497 1,132 899

Liability (33,039) (417) (305) 63,390 (6,431) (2,254)Up to 30 days (14,653) (278) (226) 3,390 (159) (190)

31 to 60 days (7,972) (50) (45) -- -- -- 91 to 180 days (7,810) (68) (32) -- -- --

181 to 360 days (2,604) (21) (2) 60,000 (6,272) (2,064)

BB – Consolidated

March 31, 2005 March 31, 2004

Counterparty Notional Market Notional MarketBy index (*) amount Cost value amount Cost value

Exchange tradingFutures contractsPurchase commitments -- -- -- 121,891 1,750 1,750

Foreign exchange coupon E -- -- -- 121,891 1,750 1,750

Sales commitments -- -- -- 195,655 7,124 7,124Foreign exchange coupon E -- -- -- 195,655 7,124 7,124


Asset position 125,450 21,184 21,579 745,997 65,126 66,242DI C 66,647 6,653 6,957 242,273 21,667 23,177

FI 58,803 14,531 14,622 494,117 43,464 42,984C -- -- -- 828 10 3

Prefixed C -- -- -- 8,779 (15) 78

Liability position (33,039) (417) (305) 63,390 (6,431) (2,254)Foreign currency C (33,039) (417) (305) 60,000 (6,272) (2,064)Prefixed C -- -- -- 3,390 (159) (190)




BB - Consolidated

March 31, 2005 March 31, 2004


Futures contractsPurchase commitments -- -- -- 121,891 -- --

181 to 360 days -- -- -- 121,891 -- --

Sales commitments -- -- -- 195,655 -- --Up to 30 days -- -- -- 15,407 -- --1 to 5 years -- -- -- 180,248 -- --

Asset 125,450 21,184 21,579 745,997 65,126 66,242Up to 30 days 23,587 3,735 3,825 53,350 (48) 50231 to 60 days 26,009 1,106 1,214 15,636 (56) 16461 to 90 days 14,600 1,631 1,709 61,560 5,571 6,21291 to 180 days 1,350 33 43 560,688 57,954 57,921181 to 360 days 59,904 14,679 14,788 23,266 573 5441 to 5 years -- -- -- 31,497 1,132 899

Liability (33,039) (417) (305) 63,390 (6,431) (2,254)Up to 30 days (14,653) (278) (226) 3,390 (159) (190) 31 to 60 days (7,972) (50) (45) -- -- --61 to 90 days (7,810) (68) (32) -- -- --91 to 180 days (2,604) (21) (2) 60,000 (6,272) (2,064)

The margin given as guarantee for transactions with derivative financial instruments iscomprised of Financial Treasury Bills (LFT) amounting to R$ 361,931 (R$ 322,860 at March 31,2004).

Banco do Brasil uses derivative financial instruments to minimize the risks arising from commercialand financial operations, as well as providing for the need of its customers.



The portfolio of derivative financial instruments for hedging market risks and the items hedged areas follows:

I - Hedged item:

Market value

March 31, March 31,2005 2004

AssetForeign exchange securities 58,592 896,839

Federal Treasury Notes - D -- 606,051Brazilian Central Bank Notes - E 58,592 290,788

II - Derivatives for market risk hedge:

Notionalamount

March 31, March 31,2005 2004

LiabilityDerivative financial instruments 151,615 1,066,593

DI contracts -- 158,856Swap contracts 151,615 907,737

The effectiveness calculated for the hedge portfolio at March 31, 2005 was 91.58% (91.50% atMarch 31, 2004). This percentage complies with that established by BACEN Circular Letter3082/02, which determines that hedge effectiveness should range from 80% to 125%.

(c) Adjustment to market value - securities and derivatives

The mark-to-market accounting requirement established by Circulars Letters 3068 and 3082 andlater regulations resulted in the following income and expense being recognized in the six-monthperiod/year:\



BB-Consolidated1st quarter 2005 1st quarter 2004

Securities (4,359) (11,737)Derivatives 24,262 30,790

Total 19,903 19,053

6 Loan and Lease Operations

(a) Details of the loan portfolio and loan operations classified as "Other receivables"

BB - Domestic andForeign branches BB - Consolidated


Loan operations 77,090,664 65,352,405 77,895,547 66,450,573Loans and bills discounted 36,181,640 31,675,133 36,677,234 32,334,538Financing 15,039,290 11,780,874 15,532,699 12,484,810Rural and agribusiness financing 31,082,770 26,116,602 31,082,770 26,116,602Financing of securities 367 7,679 -- --Allowance for loan losses (5,213,403) (4,227,883) (5,397,156) (4,485,377)

Other receivables with loan characteristics 9,243,675 8,177,978 9,708,155 8,478,687Receivables from guarantees honored 82,809 27,670 82,809 27,670Advances on foreign exchange contracts 7,742,951 6,928,857 7,742,951 6,928,857Sundry 1,645,254 1,407,038 2,111,195 1,709,309Provision for other losses (227,339) (185,587) (228,800) (187,149)

Lease operations 8,794 8,834 3,520 10,241Lease operations 9,084 8,862 32,852 30,608Allowance for lease losses (290) (28) (29,332) (20,367)

Total 86,343,133 73,539,217 87,607,223 74,939,501



(b) Details of the loan portfolio by sector, including operations with loan characteristicsclassified as "Other receivables"

BB - Domestic and Foreign branches BB – Consolidated

March March March March31, 2005 % 31, 2004 % 31, 2005 % 31, 2004 %

Public sector 4,554,078 5,0 4,468,002 5,8 4,578,988 5,0 4,484,663 57,

Domestic 559,509 0,6 298,706 0,4 559,509 0,6 298,706 0,4Government 411,561 0,4 184,066 0,2 411,561 0,4 184,066 0,2

Direct administration 220,165 0,2 161,588 0,2 220,165 0,2 161,588 0,2Indirect administration 191,396 0,2 22,478 -- 191,396 0,2 22,478 --

Business entities 147,948 0,2 114,640 0,2 147,948 0,2 114,640 0,2Industry 49,885 0,1 150 -- 49,885 0,1 150 --

Commerce 110 -- -- -- 110 -- -- --Financial services 68,376 0,1 67,525 0,1 68,376 0,1 67,525 0,1Other services 29,577 -- 46,965 0,1 29,577 -- 46,965 0,1

Foreign 3,994,569 4,4 4,169,296 5,4 4,019,479 4,4 4,185,957 5,3Business entities 3,994,569 4,4 4,169,296 5,4 4,019,479 4,4 4,185,957 5,3

Public services 3,994,569 4,4 4,169,296 5,4 4,019,479 4,4 4,185,957 5,3Private sector 87,230,087 95,0 73,499,393 94,2 88,683,523 95,0 75,162,397 94,3Domestic 83,801,839 90,2 69,082,126 88,6 83,245,636 89,2 69,311,238 87,0

Rural 29,398,415 32,0 24,213,849 31,1 29,398,415 31,5 24,213,849 30,3Industry 19,267,596 21,0 16,629,314 21,3 19,413,264 20,8 16,720,553 21,0Commerce 9,856,408 10,7 7,607,864 9,8 9,988,406 10,7 7,670,731 9,6Financial services 361 -- 88 -- 361 -- 88 --Other services 8,846,854 9,7 7,648,360 9,7 9,020,381 9,7 7,683,934 9,7Individuals 15,432,305 16,8 12,982,651 16,7 15,424,809 16,5 13,022,083 16,4

Foreign 4,428,248 4,8 4,417,267 5,6 5,437,887 5,8 5,851,159 7,3BB Group 7,038 -- 83,202 0,1 23,600 -- 77,738 0,1Commerce 325,593 0,4 253,532 0,3 333,033 0,4 287,767 0,4Industry 3,316,395 3,6 3,610,896 4,6 3,947,806 4,2 4,599,833 5,7Other companies 157,607 0,2 4,251 -- 331,456 0,4 87,908 0,1Other banks -- -- 394,329 0,5 408,622 0,4 474,026 0,6Individuals 13,515 -- 22,241 -- 13,836 -- 22,326 --Other services 608,100 0,6 48,816 0,1 379,534 0,4 301,561 0,4

Total 91,784,165 100,0 77,967,395 100,0 93,262,511 100,0 79,647,060 100,0

(c) Details of the loan portfolio by risk level and maturity, including operations with loancharacteristics classified as "Other receivables"

BB - Domestic and Foreign branches - loans falling due

Total Totalportfolio portfolio

March MarchRisk level 0-15 16-30 31-60 61-90 91-180 181-360 Over 360 31, 2005 % 31, 2004 %

AA 974,382 676,214 1,686,890 1,474,670 1,794,490 1,464,323 9,484,269 17,555,238 20 16,604,922 22A 948,189 602,446 1,644,934 1,621,185 5,048,447 7,200,390 8,115,446 25,181,037 30 21,745,719 30B 936,759 795,376 1,361,810 1,427,329 4,407,024 8,899,390 11,743,756 29,571,444 34 22,852,456 31C 424,783 232,360 445,497 666,637 1,660,989 2,698,375 4,895,123 11,023,764 13 9,985,011 14D 112,903 55,125 38,094 69,921 245,350 417,737 1,304,286 2,243,416 3 1,673,515 2E 17,313 7,254 4,859 8,709 27,073 66,494 229,616 361,318 -- 232,702 --F 8,841 1,893 5,620 3,551 20,134 38,452 123,418 201,909 -- 98,914 --G 3,107 571 1,504 2,612 7,603 13,418 91,679 120,494 -- 80,390 --H 9,888 17,161 16,483 11,582 25,734 59,153 621,014 761,015 1 582,017 1

Total 3,436,165 2,388,400 5,205,691 5,286,196 13,236,844 20,857,732 36,608,607 87,019,635 100 73,855,646 100



BB - Domestic and Foreign branches - loans overdue



B 27,858 363,456 33,851 467 73 --

3 425,708 9 395,510 10

C 16,100 278,701 419,133 9,369 5,269 64 19 728,655 15 736,956 18D 6,230 91,783 124,317 234,892 34,318 4,389 251 496,180 10 502,745 12E 2,332 33,809 122,899 66,554 219,459 18,992 -- 464,052 10 326,085 8F 1,526 19,821 22,873 22,751 247,749 12,063 -

- 326,783 7 293,845 7

G 1,032 13,877 14,662 13,840247,800

9,760 --

300,971 6 274,740 7

H 6,210 177,025 77,671 60,271 283,009 1,239,851 178,144 2,022,181 42 1,581,868 38

Total 61,288 978,472 815,406 408,144 1,037,677

1,285,119 178,424 4,764,530 100 4,111,749 100

BB - Consolidated - loans falling due



AA 1,012,604 676,990 1,694,276 1,479,615 1,809,866 1,620,097 9,477,568 17,771,016 20 16,770,580 22A 954,659 604,260 1,656,756 1,624,899 5,060,067 7,235,811 8,523,740 25,660,192 29 22,171,715 30B 947,048 804,210 1,421,314 1,439,458 4,443,140 9,004,371 11,960,669 30,020,210 34 23,438,553 31C 425,980 244,028 448,513 671,729 1,677,496 2,706,924 4,934,610 11,109,280 13 10,021,704 13D 113,999 55,812 39,450 71,051 248,823 433,686 1,325,923 2,288,744 3 1,888,902 3E 17,547 7,403 5,168 8,996 27,870 67,819 231,368 366,171 -- 233,494 --F 8,930 1,931 5,717 3,642 20,387 38,836 124,001 203,444 -- 99,106 --G 3,168 606 1,568 2,672 7,761 13,678 92,061 121,514 -- 99,163 --H 13,517 17,482 17,110 12,136 27,250 61,326 781,437 930,258 1 779,549 1

Total 3,497,452 2,412,722 5,289,872 5,314,198 13,322,660 21,182,548 37,451,377 88,470,829 100 75,502,766 100

BB - Consolidated - loans overdue



B 27,864 363,545 33,857 467 73 -- 3 425,809 9 402,120 10C 6,206 280,904 422,805 9,370 5,269 64 19 734,637 15 740,755 18D 5,644 91,913 124,415 238,482 34,318 4,389 251 499,412 10 507,009 12E 2,334 33,886 122,988

66,614 222,800 18,992 7 467,621 10 327,617 8

F 1,526 19,877 22,951 22,821 248,942 12,063 --

328,180 7 294,971 7

G 1,034 13,902 14,71713,883

249,807 9,760 --

303,103 6 275,845 7

H 6,228 177,334 78,312 60,838 284,908 1,243,027 182,273 2,032,920 42 1,595,977 38

Total 60,836 981,361 820,045 412,475 1,046,117 1,288,295 182,553 4,791,682 100 4,144,294 100



(d) Details of the allowance for loan losses by risk level, including operations with loancharacteristics classified as "Other receivables"


March 31, 2005 March 31, 2004%

Risk level Allowance Balance Allowance Balance Allowance

AA 0 17,555,238 -- 16,604,922 --A 0,5 25,181,037 125,905 21,745,719 108,729B 1 29,997,152 299,972 23,247,966 232,480C 3 11,752,419 352,573 10,721,967 321,659D 10 2,739,596 273,960 2,176,260 217,626E 30 825,370 247,611 558,787 167,636F 50 528,692 264,345 392,759 196,379G 70 421,465 295,025 355,130 248,590H 100 2,783,196 2,783,196 2,163,885 2,163,885Subtotal 91,784,165 4,642,587 77,967,395 3,656,984Additional allowance foreign (i) -- 46,221 -- 46,104Additional allowance domestic (ii) -- 752,224 -- 710,410

Total 91,784,165 5,441,033 77,967,395 4,413,498

BB - Consolidated

March 31, 2005 March 31, 2004%

Risk level Allowance Balance Allowance Balance Allowance

AA 0 17,771,016 -- 16,770,580 --A 0,5 25,660,192 128,301 22,171,715 110,859B 1 30,446,019 304,460 23,840,673 238,407C 3 11,843,917 355,318 10,762,459 322,874D 10 2,788,156 278,816 2,395,911 239,591E 30 833,792 250,138 561,111 168,333F 50 531,624 265,812 394,077 197,038G 70 424,617 297,232 375,008 262,506H 100 2,963,178 2,963,178 2,375,526 2,375,526Subtotal 93,262,511 4,843,254 79,647,060 3,915,134Additional allowance foreign (i) -- 59,616 -- 67,248Additional allowance domestic (ii) -- 752,417 -- 710,511

93,262,511 5,566,288 79,647,060 4,692,893Total

(i) Additional allowance required by local legislation.

(ii) Includes R$ 517,192 at March 31, 2005 (R$ 443,278 at March 31, 2004) of adjustment to present value of the Bank's PESA riskoperations, in compliance with the recommendation of the Brazilian Central Bank; R$ 151,991 relating to interest on PROAGROoperations pending reimbursement by the Brazilian Central Bank; and R$ 41,000 relating to the estimated loss of the smallbusiness segment, due to the adoption of the new model of risk analysis to conform with the new Basel Agreement.



(e) Changes in the allowance for loan and lease losses and for operations with loancharacteristics classified as "Other receivables"

BB-Domestic and Foreign branches BB-Consolidated

1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Opening balance 5,147,493 3,834,970 5,365,196 4,195,447

Additional allowances 1,061,816 1,160,043 1,061,071 1,162,466Exchange variation onallowances - foreign

(395) (342) (193) 2,480

Loans written off (767,883) (581,173) (770,786) (667,500)Closing balance 5,441,032 4,413,498 5,655,288 4,692,893

(f) Changes in the provision for loss on other receivables without loan characteristics


1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Opening balance 1,706,591 1,035,846 1,717,785 1,046,961

Additional allowances 199,758 196,369 199,752 196,483Reclassification (i) -- (5,051) -- (5,051)Exchange variation onallowances - foreign

495 (10) 495 --

Loans written off -- -- (588) (235)Closing balance 1,906,845 1,227,154 1,917,444 1,238,158

(i) Reclassification of provisions for loss on transactions with sundry debtors which are notencompassed by the rules of CMN Resolution 2682/99.

(g) Supplementary information


1st quarter 2005 1st quarter 2005 1st quarter 2005 1st quarter 2005

Renegotiated loans 683,409 729,833 683,409 729,833Recoveries of loans written offas losses (*)

251,768 223,010 253,316 223,594

(*) Includes R$ 1,878 (R$ 12,513 at March 31, 2004) of recoveries of assignments of loans to individuals andcorporate entities which are recorded in the statement at income in the account Income from loan operations, aspermitted by CMN Resolution 2836/2001.



7 Provision for Vacation Pay, Paid Leave and Litigation

The changes in the provisions are as follows:

(a) Vacation pay (other liabilities - sundry)

Bank1st quarter 2005 1st quarter 2004

Opening balance 667,739 617,320Provision/(reversal) 152,160 129,701Provision used (237,587) (203,023)

Closing balance 582,312 543,998

(b) Paid leave (other liabilities - sundry)


Opening balance 585,864 591,669Provision/(reversal) 50,279 50,458Provision used (73,455) (67,085)


(c) Labor claims (other liabilities - sundry)


Opening balance 2,000,685 1,782,375Provision/(reversal) 102,413 59,808

Closing balance 2,103,098 1,842,183



(d) Tax claims (other liabilities - taxes and social security charges)


Opening balance 127,345 121,130Provision/(reversal) 3,144 2,450


(e) Other legal claims (other liabilities - sundry)


Opening balance 741,051 470,246Provision/(reversal) 20,574 39,592


8 Other Receivables

(a) Foreign exchange portfolio



March March March March31, 2005 31, 2004 31, 2005 31, 2004

Forward foreign exchange purchases pendingsettlement 9,010,139 8,525,222 9,010,139 8,452,777

Bills of exchange and time drafts in foreigncurrency 113,232 119,070 113,232 119,070

Receivables from sales of foreign exchange 6,673,973 17,942,069 6,673,973 17,869,623

Advances received (5,443,447) (16,331,097) (5,443,447) (16,331,097)

Foreign currency receivables 14,221 14,927 14,221 14,927

Income receivable on advances granted 75,978 70,853 75,978 70,853

Income receivable on financed imports 8 2 8 2

Total 10,444,104 10,341,046 10,444,104 10,196,155



(b) Specific credits

These are credits from the Federal Treasury of R$ 558,822 for the extension of terms of ruralfinancing (R$ 506,016 in March 2004), as determined by Law 9138/1995.

(c) SundryCurrent and long-term



Salary and other advances 180,200 187,657 180,212 187,806Accounts receivable - Federal Treasury 391,867 263,157 391,867 263,157Accounts receivable - credit card operations 1,073,068 851,038 1,073,068 851,038Accounts receivable - other 288,596 241,728 298,319 254,880Tax credits (Note 18) 7,833,086 8,993,145 7,955,833 9,115,794Sundry debtors - foreign 39,905 64,885 40,426 65,494Sundry debtors – domestic (i) 3,361,250 1,061,739 3,363,484 1,066,845Receivables from guarantee deposits (ii) 9,183,041 6,703,855 9,199,093 6,704,060Income tax and social contribution on net 279,153 49,580 296,366 72,149

income to offsetReceivables from sale of assets and rights 514,312 545,094 530,502 564,236Other 517,301 250,560 442,313 199,860

Total 23,661,779 19,212,438 23,771,483 19,345,319

(i) Includes the net amount of R$ 2,709,399 of the PREVI actuarial liability relating to the 1997 contract, less theadjustment account of this liability (Note 23(e)).

(ii) Includes R$ 7,528,483 relating to filing appeals of tax claims, R$ 1,282,786 relating to filing appeals of laborclaims and R$ 357,686 relating to other appeals, in the Banco Múltiplo.

9 Other Assets




Non-operating assets 289,011 383,260 296,840 391,070Supply materials 20,577 29,641 20,577 29,641

Total 309,588 412,901 317,417 420,711



10 DepositsCurrent and long-term



Demand deposits 29,296,550 30,180,333 29,340,311 30,306,496Related companies 1,605,946 1,211,755 1,605,947 1,211,755Individuals 9,810,039 8,693,165 9,815,974 8,696,300Corporate entities 10,025,944 14,000,729 10,063,521 14,125,025Financial institutions 180,606 130,852 180,001 129,669Government 2,368,052 1,662,024 2,368,052 1,662,024Federal Treasury 204,295 182,590 204,295 182,590Domiciled abroad 31867 19,190 31,804 19,103Restricted 3,864,926 3,418,512 3,865,842 3,418,513In foreign currency 1,187,848 849,366 1,187,848 849,366Other 17,027 12,150 17,027 12,151

Savings deposits 31,417,670 27,590,328 31,417,670 27,590,328Individuals 29,835,702 26,374,288 29,835,702 26,374,288Corporate entities 1,209,365 948,466 1,209,365 948,466Related companies 370,253 264,874 370,253 264,874Financial institutions 2,350 2,700 2,350 2,700

Interbank deposits 8,736,638 23,637,514 6,488,592 6,218,572

Time deposits 52,687,049 46,025,491 52,768,858 46,103,621Time deposits 25,025,282 23,757,212 25,107,091 23,835,342Time deposits in foreign currency 851 936 851 936Time deposits with automatic renewal 187,333 186,274 187,333 186,274Remunerated judicial deposits 17,581,458 14,624,629 17,581,458 14,624,629Special deposits relating to funds

and programs (Note 14(c)) 9,892,125 7,456,440 9,892,125 7,456,440

Deposits for investments 81,062 -- 81,062 --

Total 122,218,969 127,433,666 120,096,493 110,219,017



11 Borrowings - Foreign Borrowings


Total

Nomaturity

Up to90 days

From 91 to360 days

From 1 to3 years

From 3 to5 years

From 5 to15 years

March 31,2005

March 31,2004

Exports -- 32,773 121,195 -- -- -- 153,968 182,158Imports -- 99,607 157,444 124,885 21,231 60 403,227 361,510Foreign exchange 11,900,051 -- -- -- -- -- 11,900,051 6,274,221Specific credit lines -- 58,144 1,554 224,002 3,216,855 -- 3,500,555 3,764,202Other -- 1,582,560 1,170,796 1,199,206 -- -- 3,952,562 3,071,104

Total 11,900,051 1,773,084 1,450,989 1,548,093 3,238,086 60 19,910,363 13,653,195

BB - Consolidated

Total

Nomaturity

Up to90 days

From 91 to360 days

From 1 to3 years

From 3 to5 years

From 5 to15 years

March 31,2005

March 31,2004

Exports -- 3,530 -- -- -- -- 3,530 25,103Imports -- 49,051 89,290 124,534 21,231 60 284,166 285,674Foreign exchange 11,900,051 -- -- -- -- -- 11,900,051 6,274,221Specific credit lines -- 58,144 1,554 224,003 3,216,855 -- 3,500,556 3,764,202Other -- 630,155 882,553 -- -- -- 1,512,708 357,734

Total 11,900,051 740,880 973,397 348,537 3,238,086 60 17,201,011 10,706,934

Banco do Brasil S.A. policy in respect of its foreign borrowings is to seek the lowest possiblecost for the maturity, type of instrument, and its balance sheet profile. The Bank uses the Liborand US Treasury rates, respectively, as references for its financial and capital transactions,constantly monitoring rates in the various markets.

12 Local Onlendings - Official Institution


March March March MarchPrograms Financial charges 31, 2005 31, 2004 31, 2005 31, 2004

Federal treasury 3,595,936 1,878,190 3,595,936 1,878,192

Rural credit 3,595,936 1,834,187 3,595,936 1,834,187Farming and livestock

breeding TR or 9% p.a. 37,616 36,862 37,616 36,862PNDR (C) TJLP + 9.95% p.a. -- 2,573 -- 2,573PROFIR TJLP + 5% p.a. -- 5,259 -- 5,259Cocoa TJLP + 0.6% p.a. or 6.35% p.a. 37,744 30,625 37,744 30,625PRONAF TMS (available) or 1.0%p.a. to




March March March MarchPrograms Financial charges 31, 2005 31, 2004 31, 2005 31, 2004

4.0% p.a. (Invested) 3,237,581 1,441,292 3,237,581 1,441,292RECOOP 5.75% to 7.25% p.a. 282,995 317,576 282,995 317,576

Other funds and programs -- 44,003 -- 44,005PNDA Foreign exchange variation +

9.15% p.a. or TJLP + 9.95% p.a. -- 3,325 -- 3,327Alcohol storage TMS -- 40,678 -- 40,678

BNDES (i) 3,662,796 3,081,217 3,662,796 3,081,217

FINAME (ii) 2,918,381 2,501,513 2,926,644 2,510,132

Other institutions 443,122 533,520 443,245 533,627PROHEMP -- 1,177 1,350 1,177 1,350FBB - Fundec II -- 12,729 15,532 12,729 15,532FUNCAFÉ TR or TMS (available) or TJLP +

3% p.a. or 4% p.a. or 5% p.a.(invested) 429,039 516,350 429,039 516,350

Other -- 177 288 300 395

Total 10,620,235 7,994,440 10,628,621 8,003,168

(i) BNDES. Programs with fixed interest rates: interest paid to the BNDES varies from 3% p.a. to 7.75% p.a.. Programs with Long-Term Interest Rate (TJLP) or foreign exchange variation: interest paid to the BNDES varies from 1%

p.a. to 4% p.a.

(ii) FINAME. Programs with fixed interest rates: interest paid to BNDES/FINAME varies from 5.75% p.a. to 11% p.a.. Programs with TJLP or foreign exchange variation: interest paid to BNDES/FINAME varies from 1% p.a. to 5% p.a.



13 Funds Obtained in Foreign Capital Markets (in millions)

Transactions Coupon AmountDate offunding Maturity

a) DIRECT FUND RAISING"Global medium-term notes" program (a.1) 9.375% p.a. US$ 200 Jun/97 Jun/07"Global medium-term notes" program (a.1) 6.375% p.a. US$ 75 Apr/03 Apr/05"Global medium-term notes" program (a.1) Zero-coupon R$ 200 Dec/04 Dec/07Subordinated debt 8.5% p.a. US$ 300 Sep/04 Sep/14

b) FUND RAISING THROUGH SPCSecuritization of the flow of remittance of funds -dekasseguis (b.1) 7.875% p.a. US$ 300 Aug/01 Aug/06Securitization of the flow of electronic remittances (MT - 100) (b.2) 7.890% p.a. US$ 450 Dec/01 Dec/08Securitization of the flow of electronic remittances (MT - 100) (b.2) LIBOR 3m+0.60% p.a. US$ 300 Jul/02 Jun/09Securitization of the flow of electronic remittances (MT - 100) (b.2) 7.890% p.a. US$ 40 Sep/02 Sep/09Securitization of the flow of electronic remittances (MT - 100) (b.2) 7.26% p.a. US$ 120 Mar/03 Mar/10Securitization of the flow of electronic remittances (MT - 100) (b.2) 6.55% p.a. US$ 250 Dec/03 Dec/13Securitization of credit card receivables - Visanet (b.3) 5.911% p.a. US$ 178 Jul/03 Jun/11Securitization of credit card receivables - Visanet (b.3) 4.777% p.a. US$ 45 Jul/03 Jun/11

Total issued per program:

Foreigncurrency -

US$ Reais (i)

"Global medium-term notes" program -- 200"Global medium-term notes" program – GMTN 275 733Securitization of the flow of electronic remittances (MT - 100) 810 2,159Securitization of credit card receivables – Visanet 223 594Securitization of the flow of remittance of funds – dekasseguis 75 200Subordinated debt 300 800

Total 4,686

(i) Converted at R$ 2.6654 per US$ 1.00.

a.1) Recorded under Other liabilities – Negotiation and intermediation of securities.



b.1) Recorded under Foreign securities. The transaction was carried out through the Special-Purpose Company (SPC) “Nikkei Remittance Rights Finance Company”, incorporated under thelaws of the Cayman Islands, on July 16, 2001. The Head Office of this SPC is located at BNPParibas Private Bank & Trust Cayman Limited, P.O. Box 10632 APO 4th floor, Piccadilly Centre,Elgin Avenue, George Town, Grand Cayman, Cayman Islands, British West Indies. The capitalof the SPC is US$1,000.00, divided into 1,000 shares of US$1.00 each. Banco do Brasil S.A.(“BB”) does not hold the control, is not a shareholder, the owner, or is a beneficiary of any of theresults of operations of the SPC. On August 2, 2001, this SPC entered into an AdministrationServices Agreement with BNP Paribas Private Bank & Trust Cayman Limited. The SPC hasdeclared that it does not have any subsidiaries, employees or debt, except for the securitiesdescribed below.

The SPC was incorporated for the sole purpose of carrying out the following transactions: (a)issue and sell securities in the international market; (b) use funds raised with the issue ofsecurities to pay for the purchase of the remittance rights from BB, arising from the foreigncurrency payment orders made by people in Japan (“dekasseguis”) at BB’s branches in Japanwhose beneficiaries are individuals in Brazil; (c) pay the principal and interest on the securitiesand make other payments established in the related security issue agreements.

According to the agreements entered into, the SPC has no material assets other than the fundsobtained from the issue of its capital, the Remittance Rights, and the duties arising from theissue agreements. The SPC’s liabilities consist of the issue of the securities described in thetable below (Series 2001-1), which have the following features:

Serie Issue date Maturity date Amount (US$)Term(years)

Coupon(%) Issue price

Return tothe investor

Currentrating

2001-1 08/10/01 08/05/06 300,000,000 5 7.875 99.6850 7.99% BBBTotal 300,000,000

The Series 2001-1 pay to the international investors, every quarter, interest during the first yearand, interest and principal as from the second year. The liabilities are paid by the SPC usingfunds accumulated in its account and generated by the Remittance Rights. When the amountcorresponding to the next interest and/or amortization installment is reached in the SPC’saccount, the entire excess amount is automatically released to BB.

This structure resulted in the reduction of the Brazil risk and helped obtain an investment graderating for the transaction which, in the final analysis, reduced BB’s fund raising cost. For thebeneficiaries of the dekasseguis’ remittances in Brazil, nothing changed because even after thesale of the Remittance Rights to the SPC, BB regularly and punctually fulfills all payment orderswithin the same deadlines as previously.



Under this structure, after five years, the SPC will have repaid all interest and principal of thetransaction thus returning the full ownership of the flow of remittances to BB. Based on itsanalysis of the transaction, BB is not exposed to any potential loss.

b.2) Recorded under Foreign securities. The transaction was carried out through the SpecialPurpose Company (SPC) “Dollar Diversified Payment Rights Finance Company”, incorporatedunder the laws of the Cayman Islands on November 6, 2001. The Head Office of the SPC is atBNP Paribas Private Bank & Trust Cayman Limited, P.O. Box 10632 APO 4th floor PiccadillyCentre, Elgin Avenue, George Town, Grand Cayman, Cayman Islands, British West Indies. Thecapital of the SPC is US$1,000.00, divided into 1,000 shares of US$1.00 each. Banco do BrasilS.A. (“BB”) does not hold the control, is not a shareholder, the owner, or is a beneficiary of anyof the results of operations of the SPC. On August 2, 2001, this SPC entered into anAdministration Services Agreement with BNP Paribas Private Bank & Trust Cayman Limited.The SPC has declared it does not have any subsidiaries, employees or debt, except for thesecurities described below.

The SPC was incorporated for the sole purpose of carrying out the following transactions: (a)issue and sell securities in the international market; (b) use funds raised with the issue ofsecurities to pay for the purchase from BB of BB’s rights on payment orders issued bycorrespondent banks in the USA and by BB’s New York branch, in US dollars, to any BB branchin Brazil. (Remittance Rights); (c) pay the principal and interest on the securities and makeother payments established in the related security issue agreements.

The SPC has no material assets other than the funds obtained from the issue of its capital, theRemittance Rights, and the duties arising from the issue agreements. The SPC’s liabilitiesconsist of the five issues of securities made in the international capital market, as follows:

Serie Issue date Maturity date Amount (US$)Term

(years)Coupon

(%) Issue priceReturn to the

investorCurrentrating

2001-1 12/27/01 12/15/08 450,000,000 7 7.890 100.0000 7.89% BBB/Baa12002-1 07/03/02 06/15/09 300,000,000 7 L3M+0.60 100.0000 L3M+0.60 AAA/Aaa2002-2 09/11/02 09/15/09 40,000,000 7 7.890 100.0000 7.89% BBB/Baa12003-1 03/17/03 03/15/10 120,000,000 7 7.260 100.0000 7.26% BBB/Baa12003-2 12/19/03 12/16/13 250,000,000 10 6.550 100.0000 6.55% BBB/Baa1

Total 1,160,000,000

The liabilities arising from the securities are paid by the SPC using the funds accumulated in itsaccount. When the amount corresponding to the next interest and/or amortization installment isreached in SPC’s account, the entire excess amount is automatically released to BB.



This structure resulted in the reduction of the Brazil risk and helped obtain an investment graderating for the transaction which, in the final analysis, reduced BB’s fund raising cost. For thebeneficiaries of the dekasseguis’ remittances in Brazil, nothing changed because even after thesale of the Remittance Rights to the SPC, BB regularly and punctually fulfills all payment orderswithin the same deadlines as previously.

Under this structure, after the final maturity of each transaction, the SPC will have repaid allinterest and principal of the transaction thus returning the full ownership of the flow ofremittances to BB. Based on its analysis of the transaction, BB is not exposed to any potentialloss.

b.3) Recorded under Foreign securities. The transaction was carried out through the SpecialPurpose Company (SPC) “Brazilian Merchant Voucher Receivables”, incorporated under thelaws of the Cayman Islands on May 16, 2003. The Head Office of the SPC is at Walkers SPVlimited, P.O. Box 908 GT, Mary Street, George Town, Grand Cayman, Cayman Islands.

The capital of the SPC is US$1,000.00, divided into 1,000 shares of US$1.00 each. Banco doBrasil S.A. (“BB”) does not hold the control, is not a shareholder, the owner, or is a beneficiary ofany of the results of operations of the SPC. On July, 10, 2003, the SPC entered into anAdministration Services Agreement with Walkers SPV Limited.

The SPC was incorporated for the sole purpose of carrying out the following transactions: (a)issue and sell securities in the international market; (b) use funds raised with the issue ofsecurities to pay for the purchase of the current and future rights of Companhia Brasileira deMeios de Pagamento (“Visanet”) against Visa International Service Association on receivables(“Receivables”) arising from (i) credit or debit purchases made in Brazil, in any currencyprocessed by Visanet, using Visa cards issued by financial institutions located outside Brazil, or(ii) credit or debit purchases, processed by Visanet in foreign currency, made using Visa cardsissued by financial institutions located in Brazil; (c) pay the principal and interest on securities andmake other payments established in the related security issue agreements.

The SPC has declared that it does not have any material assets other than the funds obtainedfrom the issue of its capital and the Receivables. It also declared that it does not have anymaterial liabilities other than those established in the security issue agreements.

The SPC’s liabilities consist of two issues of securities carried out in the international capitalmarket, as follows:



Series Issue date Maturity date Amount (US$)Term

(years)Coupon

(%)Issueprice

Return tothe investor

Currentrating

2003-1 07/10/03 06/15/11 400,000,000* 8 5.911 100.00 5.955% BBB+/Baa12003-2 07/10/03 06/15/11 100,000,000** 8 4.777 95.00 5.955% BBB+/Baa1

Total 500,000,000

* Pursuant to the Series 2003 Visanet Support Agreement, BB received the amount ofUS$ 178,473,952, as described in the text below.

** Pursuant to the Series 2003 Visanet Support Agreement, BB received the amount ofUS$ 44,618,488, as described in the text below.

The liabilities arising from the securities are paid by the SPC using the funds accumulated in itsaccount. When the amount corresponding to the next interest and/or amortization installment isreached in the SPC’s account, the entire excess amount is automatically released to Visanet.

Under the structure, which included, among other agreements, the agreement called Series 2003Visanet Support Agreement, entered into on July 10, 2003 by Visanet, BB, and another party,Visanet agreed to transfer to BB the funds arising from the sale of the Receivables, at the ratio of44.618488%, calculated based on the shareholding interest of BB in Visanet on the transactionclosing date, resulting in US$ 223,092,440.00 of funds being raised by BB.

Also under the same agreement, BB agreed to periodically transfer to Visanet amounts equivalentto the Receivables held by Visanet for the account of the SPC, pursuant to the Receivablespurchase and sale agreement, at the ratio of 44.618488%.

This structure resulted in the reduction of the Brazil risk and helped obtain an investment graderating for the transaction which, in the final analysis, reduced BB’s fund raising cost.

Under this structure, after the final maturity of each transaction, the SPC will have repaid allinterest and principal of the transaction thus returning the full ownership of the Receivables toVisanet. Based on its analysis of the transaction, BB is not exposed to any potential loss.



14 Other Liabilities

(a) Foreign exchange portfolio

Current and long-termBB-Domestic and Foreign

Branches BB-Consolidated03.31.2005 03.31.2004 03.31.2005 03.31.2004

Forward foreign exchange sales pending settlement 6,501,015 17,875,742 6,501,015 17,803,296Advances in foreign currencies (6,664) (28,496) (6,664) (28,496)Import financing (3,011) (1,715) (3,011) (1,715)Foreign exchange purchase liabilities 9,184,861 8,538,174 9,184,861 8,465,729Liabilities for sales – floating rates -- 72,840 -- 72,840Advances on foreign exchange contracts (7,742,951) (6,948,067) (7,742,951) (6,948,067)Foreign currency payables 32,005 39,487 32,005 39,487Unearned income on advances granted 4,129 2,518 4,129 2,518Total 7,969,384 19,550,483 7,969,384 19,405,592

(b) Financial and development funds

Current and long-termBB-Domestic and Foreign Branches

and BB-Consolidated03.31.2005 03.31.2004

PIS/PASEP 1,395,414 1,221,296Merchant Navy 15,655 12,040Land and Agrarian Reform - BB Banco da Terra 60,916 168,922Special Lending Program for Agrarian Reform - Procera 320,592 346,445Consolidation of Family Farming (CAF) 80,245 --Fight against Poverty/Our First Land (CPR/NPT) 60,242 --Other 20,638 19,518Total 1,953,702 1,768,221

(c) Fund for Worker Assistance (FAT) and Fund to Guarantee the Increase in Employment andEarnings (FUNPROGER)

FAT is a special accounting and financial fund, established by Law 7998/90, attached to theMinistry of Labor and Employment (MTE) and managed by the Executive Council of the WorkerAssistance Fund (CODEFAT). CODEFAT is a collective, tripartite and equal level organization,composed of representatives of workers, employees and government, which acts as the managerof FAT.



The main sources of funding of FAT are contributions payable to the Social Integration Program(PIS) and to the Public Service Employees Savings Program (PASEP).

FAT's objective is to fund the Unemployment Insurance Program (with specific responsibilities forpayment of unemployment insurance benefits, professional qualification and requalification, andorientation and intermediation of employment), the Salary Bonus, and finance programs foreconomic development as well as to promote employment.

The main actions to promote employment using FAT funds are centralized in the Programs for theIncrease in Earnings (PROGER), whose resources are allocated by special deposits, establishedby Law 8352/91, in official federal financial institutions (including, among others, PROGER in theUrban and Rural categories, and the National Program to Strengthen Family Farming - PRONAF).

The Bank acts as a partner of FAT in carrying out programs for the increase in employment andearnings, through special deposits to be invested in PROGER, Urban and Rural, and inPRONAF, offering credit lines to micro and small companies, cooperatives, workers in theinformal economic sector, and rural workers.

Special deposits held by Banco do Brasil, while available, are remunerated on a pro rata basis bythe TMS (Average SELIC Rate). When they are invested in financing to support PRONAF andPROGER, they are remunerated by the TJLP (Long-term Interest Rate) during the period in whichthe financing is in effect.

The remuneration of the funds held by the Bank are paid to FAT in the month subsequent to thatof deposit. Remuneration of funds applied to finance final borrowers are paid as stipulated in eachspecific resolution.

The Fund to Guarantee the Increase in Employment and Earning (FUNPROGER) is a specialaccounting fund, established on November 23, 1999 through Law 9872, changed by Law10360/01, and regulated by CODEFAT Resolution 409/04 and is managed by the Bank with thesupervision of CODEFAT/MTE, with a balance of R$ 202,104 at March 31, 2005 (R$ 144,692 atMarch 31, 2004).



The objective of FUNPROGER is provide guarantees to entrepreneurs who do not have thenecessary guarantees of their own to contract PROGER Urbano financing, through the payment ofa commission.

The net assets of FUNPROGER are accumulated through funds arising from the differencebetween the average SELIC Rate and the Long-Term Interest Rate (TJLP) in respect of theremuneration of the special deposit balances available in the Fund for Worker Assistance (FAT).Other sources of funds are the earnings from its operations and the income on its cash resourcespaid to Banco do Brasil, the Fund manager.



Program Resolution TMS TJLP Total Return of FAT fundsAvailable (1) Invested (2) Type (*) Initial date Final date

PROGER (Rural) andPRONAF

783,681 2,618,431 3,402,112

Rural 3 129/1996133/1996

10,021 45,430 55,451 03 PAS Nov/2004 Nov/2006

Rural 4 140/1997 552,463 176,641 729,104 PU - Jun/2005Rural 5 and Pronaf 3 239/2000 48,892 18,003 66,895 05 PAS Oct/2004 Oct/2008Rural 6 271/2001 25,882 39,065 64,947 04 PAS May/2004 May/2007Rural 7 300/2002 14,179 106,162 120,341 07 PAS Jul/2005 Jul/2011Rural 8 366/2003 3,572 486,186 489,758 07 PAS Jul/2006 Jul/2012Rural 9 398/2004 915 102,174 103,089 07 PAS Jul/2007 Jul/2013Pronaf 1 173/1998 36,414 263,579 299,993 PU - Sep/2006Pronaf 2 217/1999 38,940 244,190 283,130 07 PAS Jul/2004 Jul/2010Pronaf 4 283/2002 26,921 227,546 254,467 06 PAS Jul/2005 Jul/2010Pronaf 5 303/2002 21,549 201,472 223,021 07 PAS Jul/2005 Jul/2011Pronaf 6 367/2003 3,668 546,223 549,891 07 PAS Jul/2006 Jul/2012Pronaf 7 399/2004 265 161,760 162,025 07 PAS Jul/2007 Jul/2013Proger Urbano 550,814 4,177,453 4,728,267Urban 5 228/1999 6,228 85,560 91,788 13 PSS Feb/2002 Feb/2008Urban 6 243/2000 10,119 87,640 97,759 12 PSS Jun/2003 Dec/2008Urban 7 260/2001 14,610 141,026 155,636 12 PSS Dec/2003 Jun/2009Urban 8 280/2002 10,406 224,003 234,409 12 PSS Feb/2005 Aug/2010Urban 9 307/2002 21,194 164,131 185,325 12 PSS Jun/2005 Dec/2010Urban 10 312/2003 10,494 110,608 121,102 12 PSS Sep/2005 Mar/2011Urban 11 322/2003 9,148 224,029 233,177 12 PSS Jan/2006 Jul/2011Urban 12 357/2003 4,423 334,098 338,521 12 PSS May/2006 Nov/2011Urban 13 375/2003 3,559 316,996 320,555 12 PSS Oct/2006 Apr/2012Urban 14 397/2004 28,257 380,939 409,196 12 PSS Apr/2007 Oct/2012Popular company 1 - 1sttranche

294/2002 51,498 58,174 109,672 09 PSS Nov/2004 Nov/2008

Popular company 1 - 2ndtranche

294/2002 48,736 69,692 118,428 09 PSS Apr/2005 Apr/2009

Popular company 2 338/2003 45,156 172,846 218,002 09 PSS Oct/2005 Oct/2009Small/medium sizecompany 1

297/2002 46,010 458,674 504,684 07 PSS Jan/2005 Jan/2008

Small/medium sizecompany 2

331/2003 69,512 718,206 787,718 09 PSS Nov/2004 Nov/2008


396/2004 12,322 297,250 309,572 09 PSS Nov/2005 Nov/2009


412/2004 100,016 302,296 402,312 09 PSS Nov/2005 Fev/2010

Tourism 1 323/2003 20,393 31,268 51,661 16 PSS Feb/2006 Aug/2013Tourism 2 324/2003 38,733 17 38,750 09 PSS Aug/2004 Aug/2008Other 378,514 919,992 1,298,506Electric appliances 1 360/2003 7,365 1,677 9,042 07 PSS Mar/2004 Mar/2007Export 1 347/2003 49,334 685 50,019 09 PSS Jun/2005 Jun/2009Integrate 1 372/2003 145,422 55,363 200,785 20 PSS Oct/2007 Apr/2017Residence 1 349/2003 18,891 178,901 197,792 09 PSS Nov/2004 Nov/2008Residence 2 378/2003 36,833 287,225 324,058 09 PSS Apr/2005 Apr/2009Residence 3 387/2004 16,336 299,095 315,431 09 PSS Jul/2005 Jul/2009Residence 4 405/2004 104,333 97,046 201,379 09 PSS Jan/2006 Jan/2010Total 1,713,009 7,715,876 9,428,885



(1) Funds remunerated by the TMS: average SELIC rate.(2) Funds remunerated by the TJLP: long-term Interest rate.(3) Type: PU (single payment at the end of the period), PAS (annual and successive

installments) and PSS (semiannual and successive installments).

(d) Sundry

Current and long-termBB-Domestic and Foreign

Branches BB-Consolidated03.31.2005 03.31.2004 03.31.2005 03.31.2004

Provisions for payments (*) 4,934,307 4,593,189 4,944,217 4,602,966Contracts of assumption of liabilities 1,160,339 1,242,161 592,124 650,449Provisions for contingent liabilities (Note 7) 2,876,397 2,356,142 2,911,126 2,382,291Accounts payable for payment servicesprovided

386,307 287,326 386,307 287,326

Sundry creditors – overseas 67,788 71,650 50,068 73,058

Sundry creditors – domestic 53,.614 597,941 536,659 600,212

Credit card operations 1,016,271 810,776 1,016,271 810,776

Liabilities for official agreements 73,840 80,621 73,840 80,621

Liabilities for purchase of goods and rights 220,210 -- 220,210 100,514

Funds restricted to credit operations 156,950 119,578 965,204 1,095,673

Other 8,341 110,742 117,561 135,049Total 11,433,364 10,270,126 11,813,587 10,818,935

(*) Includes R$ 3,069,836 relating to the sum of the "PREVI Actuarial Liability of the Informal Plan" (exclusiveresponsibility of the Bank) and the "CASSI Actuarial Liability" at March 31, 2005 (Note 23(e)).

(e) Subordinated debt

Current and long-termBB-Domestic and Foreign Branches

and BB-Consolidated03.31.2005 03.31.2004

Subordinated debt – FCO (i) 6,298,368 5,380,282Other subordinated debt (ii) 794,827 --Total 7,093,195 5,380,282



(i) As from June 30, 2001, as determined by CMN Vote No. 67 of June 28, 2001 and Bacen-Diret Official Letter 2001/1602 of June 29, 2001, Banco do Brasil has considered the funds fromthe Central-Western Constitutional Fund (FCO) as subordinated debt and as Level II ReferenceEquity, due to the low repayment requirement and extended period held in the Bank.(ii) On September 13, 2004, Banco do Brasil carried out its first international issue in thesubordinated debt market. The funding amounts to US$ 300 million (R$ 850,921) with a ten-yearmaturity. The issue of the securities was underwritten by Credit Suisse First Boston and BBSecurities.

15 Analysis of Income Statement Items

(a) Banking services fees

BB-Domestic and Foreign Branches BB-Consolidated1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004

Investment fund management -- -- 282,957 233,882Collection 167,875 149,148 168,120 149,521Collection services 7,879 6,302 9,266 7,635Services rendered to related companies 206,792 167,674 49,497 38,836Fund transfers 32,482 32,209 32,545 32,274Guarantees granted 22,193 26,622 22,198 26,622Check clearing services and other 136,633 129,639 136,633 129,639Examination of requests for exclusion from CCF 18,604 16,261 18,604 16,261PASEP administration 6,813 7,053 6,813 7,053Loans contracted 141,205 142,840 141,205 142,840Deposit account fees 48,310 45,330 48,310 45,330Checking account fees 22,669 28,938 22,669 28,938Fees for issuing documents 29,101 26,243 29,101 26,243Fees on register information 24,281 29,684 32,600 29,684Ouro plan 367,936 257,440 367,936 257,440Fees for official services 59,905 56,028 59,905 56,028International trade services 3,820 4,034 3,820 4,034Third party collection services 48,851 44,686 48,851 44,686Commissions for administration of

public sector debt11,929 14,357 11,929 14,357

Payments on account of third parties 31,294 31,670 31,294 31,670Credit Cards – annual fees 70,831 51,845 70,831 51,845Credit cards – fees on withdrawls and purchases 2,270 2,131 2,270 2,131Credit card – commissions of issuing bank 63,959 50,372 63,959 50,372Other 106,203 117,276 105,436 125,216Total 1,631,835 1,437,782 1,766,749 1,552,537



(b) Personnel expenses

BB-Domestic and ForeignBranches

BB-Consolidated

1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Salaries (747,101) (708,371) (759,041) (721,381)

Benefits (203,742) (181,418) (204,874) (182,462)

Social charges (295,586) (264,993) (299,860) (269,314)

Training (6,045) (6,037) (6,094) (6,087)

Directors’ fees (2,557) (1,286) (3,058) (1,397)

Personnel provisions (365,191) (272,989) (365,191) (272,989)

Provisions for labor claims (102,413) (59,808) (102,413) (59,809)

Labor claim losses (63,335) (61,027) (63,335) (61,027)

Total (1,785,970) (1,555,929) (1,803,866) (1,574,466)

(c) Other administrative expenses


BB-Consolidated

1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Water, electricity and gas (58,619) (49,595) (58,633) (49,636)Rent (63,331) (54,919) (64,653) (56,871)Leasing costs (36,597) (51,253) (36,597) (51,253)Communications (206,295) (171,167) (208,762) (172,591)Maintenance and upkeep (49,543) (42,313) (49,734) (43,026)Materials (37,516) (32,380) (38,119) (32,490)Data processing (129,272) (125,386) (132,256) (129,337)Promotion and public relations (45,927) (27,635) (47,888) (27,701)Advertising and publicity (35,444) (26,927) (35,665) (26,975)Financial system services (77,495) (66,404) (76,143) (66,949)Third party services (107,160) (81,969) (114,074) (82,256)Security services (96,021) (83,327) (96,118) (83,395)Specialized technical services (21,660) (19,226) (23,585) (21,217)Transportation (90,478) (86,660) (90,914) (86,918)Domestic travel (22,393) (13,451) (22,981) (13,734)Amortization (33,582) (16,955) (33,887) (18,877)Depreciation (139,754) (95,675) (139,850) (96,058)Expenses with tax and civil lawsuits (91,845) (27,201) (91,845) (27,201)Other (41,393) (37,595) (45,415) (39,351)Total (1,384,325) (1,110,038) (1,407,119) (1,125,836)



(d) Other operating income


BB-Consolidated

1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Recovery of charges and expenses 149,100 100,430 149,492 100,512Income from special operations 22,343 24,764 22,343 24,764Income from specific credits 14,980 11,834 14,980 11,834Income from other credit operations 7,916 6,387 7,916 6,387Income from payments of INSS benefits 58,348 11,270 58,348 11,270Income from guarantee deposits 261,895 238,262 261,895 238,262Income from securities and creditsreceivable from the Federal Treasury

24,350 14,694 24,350 14,694

Dividends received 14,276 5,022 14,276 5,022Equalization of rates – Law 8427 2,141 716 2,141 716Exchange adjustments of credit cardtransactions

8,668 8,761 8,668 8,761

Overdue advances on exchange contracts 1,676 1,689 1,676 1,689Contingent liabilities 20,932 -- 20,932 --Reversal of provisions 4,644 47,138 4,644 47,138Foreign exchange gains 193,352 2,091 193,352 2,090Taxes paid in error 229,127 -- 229,127 --Other 36,470 44,474 32,217 44,654Total 1,050,218 517,532 1,046,357 517,793



(e) Other operating expenses

BB-Domestic and Foreign Branches BB-Consolidated1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004

Fees for the use of Sisbacen (2,027) (1,590) (2,027) (1,590)Expenses on Pasep funds (130) (855) (130) (855)Collection of contributions and federaltaxes (9) (24) (9) (24)Exchange loss on profits from overseasbranches at the disposal of the Head Office (112) (61) (112) (61)Discounts granted on renegotiations -credit operations (19,903) (35,216) (19,903) (35,216)Expenses from discounts granted onrenegotiations – other credits (19) (704) (19) (704)Updating of the pension liability (45,835) (142,938) (45,835) (142,938)Interest on funds allocated for payment ofbenefits (61,770) (5,195) (61,770) (5,195)CASSI – Interest on actuarial liabilities (94,187) (69,930) (94,187) (69,930)Losses from robberies and theft (44) -- (44) --Errors and fraud (11,855) (4,496) (11,855) (4,496)Insurance premiums – BB-CPR (2,154) -- (2,154) --Expenses with savings deposits prizes BB (2,380) (5,823) (2,380) (5,823)Expenses with updates - JCP (5,895) (10,026) (5,895) (10,026)BB Personal Banking expenses (26,053) (22,586) (26,053) (22,586)Expenses with credit card operations (42,898) (71,088) (42,898) (71,088)Expenses on the Proagro funds (1,161) (598) (1,161) (598)Provision for loss of securitized credits -- (24,131) (3,685) (24,131)Provision for guarantees offered (1,216) (21,666) (1,216) (21,666)Foreign exchange losses (46,307) (215) (46,307) (215)Law 9138/95 - Restatement of funds to bereturned to the Federal Treasury (12,400) (29,545) (12,400) (29,545)Securitization dekasseguis - liabilities withthe SPC

(6,900) (11,874) (6,900) (11,874)

Securitization SWIFT MT100 - liabilitieswith the SPC

(53,267) (60,656) (53,267) (60,656)

Other (46,840) (10,960) (62,516) (50,982)Total (483,361) (530,177) (502,723) (570,199)



(f) Non-operating income


BB-Consolidated

1st quarter 2005 1st quarter 2004 1st quarter 2005 1st quarter 2004Non-operating income 111,767 28,047 114,104 29,994

Profit on the sale of assets 76,760 79 76,985 146 Capital gains 825 874 825 880

Rental income 2,252 2,150 2,252 2,150 Profit on the sale of other assets 12,111 2,028 12,113 2,154

Gains on shares and quotas 1,664 245 2,962 1,055Valuation of other assets 16,947 20,094 16,947 20,094Other non-operating income 1,208 2,577 2,020 3,515

Non-operating expenses (15,337) (13,752) (16,285) (14,531)Loss on sale of investments (7) -- (7) --Loss on sale of assets (1,812) (93) (1,812) (199)Capital losses (3,723) (3,022) (3,767) (3,055)Loss in value of other assets (8,663) (10,126) (8,680) (10,162)Losses with shares and quotas -- -- (774) (477)Other non-operating expenses (1,132) (511) (1,245) (638)

Total 96,430 14,295 97,819 15,463

16 Stockholders' Equity

(a) Stockholders' equity of R$ 14,932,899 (R$ 12,686,177 at March 31, 2004) includes net income forthe period, and the book value per share is R$ 18.68 (R$ 17.33 per share at March 31, 2004)considering the total of 799,359,738 common shares (disregarding treasury stock).

(b) The balance of 15,993,142 "B" bonds and 27,028,746 "C" bonds remains from the purchase ofsubscription bonds made by the Bank in 2004, which have their right of exercise assured up to thedates originally established – 3.31.2006 to 6.30.2006 and 3.31.2011 to 6.30.2011, respectively.The market value of each common share at 3.31.2005 was R$ 29.60 (R$ 23.28 at 3.31.2004).

(c) Capital

Capital amounts to R$ 9,864,153,395.17 and comprises 810,617,415 common shares with no parvalue. The Federal Treasury is the controlling stockholder.



(d) Treasury stock

The Bank purchased 10,234,252,464 preferred shares, equivalent to 1.44% of the total capital, asreimbursement to dissident stockholders not in agreement with the conversion of preferred sharesinto common shares, approved at the Special Preferred Stockholders' Meeting held on June 7,2002. These shares were converted into 11,257,677 common shares and remain in treasury inaccordance with article 45 of Law 6404/76.

(e) Revaluation reserves

These refer to a revaluation of assets carried out by the associated companies Visanet and KeplerWeber and by the subsidiary Cobra Tecnologia S.A.. The realizations of the reserves in the periodthrough depreciation, totaling R$ 29 (R$ 7 at March 31, 2004), were transferred to the "Retainedearnings" account.

(f) Adjustment to market value - securities and derivative financial instruments

In accordance with BACEN Circular Letters 3068/01 and 3082/02, this account records themark-to-market adjustment of securities available for sale, totaling R$ 94,799 (R$ 126,617 atMarch 31, 2004), net of tax effects. The changes in this stockholders' equity account are asfollows:

Net Changes inDecember 31, 2004 the period March 31, 2005

Securities available for sale Balance BalanceBank 74,362 (37,932) 36,430

Subsidiary and associated companies 11,118 (133,813) (122,695)Tax effects (42,895) 34,361 (8,534)

Total 42,585 137,384 (94,799)

Net Changes inDecember 31, 2003 the period March 31, 2004

Securities available for sale Balance BalanceBank 358,095 19,069 377,164

Subsidiary and associated companies 8,044 (114,085) (106,041)Tax effects (138,315) (6,191) (144,506)

Total 227,824 (101,207) 126,617



(g) Shareholding positions

As prescribed in paragraphs IV, V, VI and VII of Article 40 of the Bank's by-laws, theshareholding positions are as follows:

Paragraph IV: shareholdings of all those who hold, directly or indirectly, more than 5% of capital:

Stockholders Total shares Total - %

Federal Treasury 584,778,036 72,1Banco do Brasil Employees Retirement Fund (PREVI) 112,415,335 13,9BNDES Participações S.A. - BNDESPAR 46,964,027 5,8

Paragraph V: number and characteristics of the securities issued by the Bank and directly orindirectly held by the controlling stockholder, management and members of the Fiscal Council;and

Paragraph VI: changes in ownership of the parties referred to in the previous paragraph of thesesecurities during the preceding twelve months:

Controlling stockholder - Federal Treasury 2005 2004

Common shares (ON) 584,778,036 584,778,036

ON Shares B Bonds C Bonds

March March March March March MarchBoard of Directors Position 31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004

Bernard Appy President 1 1 -- -- -- --Rossano Maranhão Pinto Vice-president 1 1 -- -- -- --Carlos Augusto Vidotto Counselor 2 2 -- -- -- --Francisco Augusto da Costa

e Silva Counselor 2 2 -- -- -- --João Carlos Ferraz Counselor 2 2 -- -- -- --José Carlos Rocha Miranda Counselor 1 1 -- -- -- --Tarcísio José Massote de Godoy Counselor 1 1 -- -- -- --




March March March March March MarchFiscal Council Position 31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004

Marcus Pereira Aucélio President -- -- -- -- -- --Alon Feuerwerker Member -- -- -- -- -- --Rodrigo Pirajá Wienskoski Member -- -- -- -- -- --Artemio Bertholini Member -- -- -- -- -- --Vicente de Paulo Barros Pegoraro Member 1 1 -- - -- --Amaury Patrick Gremaud Deputy -- -- -- -- -- --Ernesto Rubens Gelbcke Deputy -- -- -- -- -- --Marcos de Andrade Reis Villela Deputy -- -- -- -- -- --Otávio Ladeira de Medeiros Deputy -- -- -- -- -- --Pedro Paulo Bernardes Lobato Deputy -- -- -- -- -- --

ON Shares B Bonus C Bonus

March March March March March MarchExecutive Board of Directors Position 31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004

Rossano Maranhão Pinto President 1 1 -- -- -- --Adézio de Almeida Lima Vice-president 2 2 -- -- 1 1Edson Machado Monteiro Vice-president 57 57 17 17 28 28José Luiz de Cerqueira César Vice-president -- -- -- -- -- --Luiz Eduardo Franco de Abreu Vice-president 1 1 -- -- -- --Luiz Oswaldo Sant'Iago

Moreira de Souza Vice-president 2 2 -- -- 1 1Ricardo Alves da Conceição Vice-president 371 371 111 111 185 185Antônio Francisco de Lima Neto Vice-president -- -- -- -- -- --


March March March March March MarchDirectors Position 31, 2005 31, 2004 31, 2005 31, 2004 31, 2005 31, 2004

Aldo Luiz Mendes Director -- -- -- -- -- --Augusto Braúna Pinheiro Director -- -- -- -- -- --Derci Alcântara Director 33 33 9 9 16 16Henrique Pizzolato Director 26 26 7 7 12 12Izabela Campos Alcântara Lemos Director -- -- -- -- -- --João Carlos de Mattos Director -- -- -- -- -- --José Carlos Soares Director 219 219 6 6 10 10José Gilberto Jaloretto Director -- -- -- -- -- --José Maria Rabelo Director 20 20 6 6 10 10Juraci Masiero Director -- -- -- -- -- --Luiz Carlos Silva de Azevedo Director -- -- -- -- -- --Luiz Gustavo Braz Lage Director -- -- -- -- -- --Manoel Gimenes Ruy Director 14 14 4 4 6 6Miguel Oscar Viana Peixoto Director -- -- -- -- -- --Murilo Castellano Director 3 3 -- -- 1 1Paulo César Simplício da Silva Director 29 29 8 8 14 14Paulo Euclides Bonzanini Director -- -- -- -- -- --Paulo Rogério Caffarelli Director -- -- -- -- -- --Ricardo José da Costa Flores Director 19 19 5 5 9 9William Bezerra Cavalcanti Filho Director -- -- -- -- -- --Staturory Auditor

José Luís SalinasGeneralAuditor

-- -- -- -- -- --



Paragraph VII - number of shares in the market and percentage in relation to the total issued:

BB shares Number %

Market 55,202,340 6,8Total issued 810,617,415 100,0

17 Income Tax and Social Contribution on Net Income

(a) Details of calculation basis BB – Consolidated1st quarter 2005 1st quarter 2004

Income taxSocial

contribution Income taxSocial

contributiona) Profit before taxation and after employee

profit sharing 1,782,464 1,782,464 1,129,352 1,129,352Profit before taxation 1,601,141 1,601,141 1,027,093 1,027,093

Net income of foreign entities (110,119) (110,119) (68,058) (68,058)

Intercompany eliminations 291,525 291,525 170,317 170,317

Employee profit sharing (83) (83) -- --

b) Permanent additions/(deductions) (448,183) (441,541) (443,660) (454,640)

Equity in the (earnings)/loss of subsidiaryand associated companies (391,654) (391,654) (275,785) (275,785)

Non-deductible expenses and provisions 63,672 66,787 79,453 65,518

Other additions/(deductions) (120,201) (116,674) (247,328) (244,373)

c) Temporary additions/(deductions)738,546 742,127 721,617 720,834

Allowance for loan losses 1,263,668 1,263,668 1,347,629 1,347,629

Provision for loss on securities and investments 6,829 6,829 (126) (126)

Provision for pension liabilities (469,026) (469,026) (538,763) (537,270)Provision for labor claims, tax

contingencies and contingent liabilities102,948 102,948 63,563 63,563

Amortization of goodwill on investments 398 -- 2,416 --

Other additions/(deductions) (166,271) (162,292) (153,102) (152,962)

d) Other additions/(deductions) (666,276) (667,325) (445,448) (441,334)

Foreign profits -- -- 41,863 41,863

Adjustment - BACEN Resolution 2682/99and Law 9430/99 (664,652) (664,652) (452,674) (452,674)

Other (1,624) (2,673) (34,637) (30,523)e) Taxable income 1,406,551 1,415,725 961,861 954,212f) Income tax/social contribution: 346,069 128,127 232,453 85,170

Rate of 15%/9% 212,168 128,127 145,650 86,702

Additional 10% 141,421 -- 97,071 --

Tax incentives (7,520) -- (3,415) --

Income tax on profits of foreign entities -- -- (6,853) (1,532)



(b) Details of income tax and social contribution expense:BB – Consolidated

1st quarter 2005 1st quarter 2004

Income taxSocial


contributiona) Income tax and social contribution expense per the statement of income (353,272) (128,127) (242,628) (85,170)

Provision for income tax and social contribution - present values (346,069) (128,127) (232,453) (85,170)

Foreign income tax (7,203) -- (10,175) --

b) Deferred tax liabilities (60,239) (21,831) (27,087) (10,437)

(Provision)/reversal of deferred income tax onthe adjustment of the portfolio anddepreciation (leasing operations) (1,366) -- 3,423 --

(Provision)/reversal of provision for deferredtaxes - positive MTM (13,390) (4,525) 7,036 3,079

(Provision)/reversal of the provision fordeferred income tax - sale of investmentsin installments (BB - BI) 160 58 160 58

(Provision)/reversal of provision for deferredtaxes-restatement of judicial deposits (34,683) (12,486) (37,706) (13,574)

(Provision)/reversal of provision for deferredtaxes – foreign profits (10,960) (4,878) -- --

c) Provision (a+b) (413,511) (149,958) (269,715) (95,607)

d) Deferred tax credits 2,932 1,735 (3,195) (1,980)

Recording/(reversal) of tax credits on temporaryDifferences 2,917 1,022 (4,149) (2,026)

Recording/(reversal) of tax credits on income taxand social contribution losses 2,772 711 (3,458) --

Recording/(reversal) of tax credits - negativeMTM (2,757) 2 4,412 46

e) Total income tax and social contributionexpense (c+d)

(410,579) (148,223) (272,910) (97,587)



(c) Reconciliation of income tax and social contribution expense:

BB-Consolidateda) Income tax 1st quarter 2005 1st quarter 2004

Profit before taxation and profit sharing 1,601,141 1,027,093Total income tax charge (rate of 25%) (400,285) (256,773)Effects of non-taxable income 305,804 310,291Effects of non-deductible expenses (440,933) (458,787)Effects of foreign profits (10,786) (11,021)Employee profit sharing 21 --Deferred charges on mark-to-market adjustments (523) (29)Other 128,603 139,976Fiscal incentives (workers meal program, culture andothers)

7,520 3,433

Income tax expense (410,579) (272,910)

b) Social contributionProfit before taxation and profit sharing 1,601,141 1,027,093Total social contribution charge (rate of 9%) (144,103) (92,438)Effects of non-taxable income 109,940 111,546Effects of non-deductible expenses (158,730) (165,163)Effects of foreign profits -- (2,236)Employee profit sharing 7 --Deferred charges on mark-to-market adjustments (187) (11)Other 44,850 50,715Social contribution expense (148,223) (97,587)

(d) Litigation: income tax and social contribution on net income

In February 1998, the Bank filed a legal request for full offset of prior year income tax and socialcontribution on net income losses against taxable income. Since then, the Bank has offset thesetax losses in full against income tax and social contribution taxable income and has madejudicial deposits of the taxes otherwise due (on 70% of the amount offset). These depositsprompted the Federal District 16th Court to issue a dispatch recognizing the suspension ofpayment of these taxes until final judgment of the Bank's request, based on article 151, II, of theTax Code.



The amounts relating to this matter are as follows:

March 31,2005

March 31,2004

(a) Judicial deposits 5,609,243 --Amount paid 4,175,403 --Restatement 1,433,840 --

(b) Receivables from guarantee deposits 5,609,243 4,179,048Original amounts 4,175,403 3,350,468Restatement 1,433,840 828,580

(c) 70% thereof 4,198,619 3,411,193Income tax losses incurred up to December 31, 1994 739,067 739,067Income tax losses incurred after December 31, 1994 1,626,674 1,060,510Social contribution losses incurred up to December 31, 1994 356,007 356,007Social contribution losses incurred after December 31, 1994 560,880 560,880Social contribution to offset (temporary differences up to 1998) 915,991 694,729

(d) The offset of income tax and social contribution losses results in the reduction of the deferred taxcredits.

(e) The provision relating to the judicial deposit, recorded in Provision for losses on assets withoutloan characteristics, amounts to R$ 1,433,840. Management considers this provision sufficientbased on the status of the lawsuit at March 31, 2005.

(f) In the event of an unfavorable decision, the extraordinary appeal of which was accepted by thePresident of the Federal Regional Court - First Region on November 26, 2001 and submitted tothe Federal Supreme Court for judgment, the deposits equivalent to the amount of taxesdetermined to be payable will be transferred to the Federal Revenue Secretariat; the amount ofthese deposits, net of the provision recorded, will be expensed. The resulting deferred tax asset tobe recorded in this event, arising from the reinstatement of the tax losses previously offset, will besubject to analysis in respect of its possible future realization at the time of the decision.



18 Tax credits

(a) Tax credits recorded as assets

BB - Consolidated

March 31, 2005 March 31, 2004

Income taxSocial


contribution

Nature and origin(a) Income tax and social contribution losses 3,386,403 45,985 6,785,861 --(a.1) Rate (%) 25 9 25 9(a.2) Tax credit recorded 846,601 4,139 1,696,465 --(b) Timing differences 14,161,231 11,526,428 14,127,849 11,497,218(b.1) Rate (%) 25 9 25 9(b.2) Tax credit recorded 3,540,308 1,037,379 3,531,962 1,034,750(c) Negative mark-to-market adjustments 88,705 79,221 51,914 42,135(c.1) Rate (%) 25 9 25 9(c.2) Tax credit recorded 22,176 7,130 12,979 3,792(d) Social contribution to offset -- 2,483,994 -- 2,809,573(e) Tax credits abroad 8,182 -- 23,380 --(f) Total income tax and social contribution tax

credits recorded (a.2 + b.2 + c.2 + d + e) 4,417,267 3,532,642 5,264,786 3,848,115

Pasep Cofins Pasep Cofins

(g) Negative mark-to-market adjustments 128,124 127,268 62,223 62,223(g.1) Rate (%) 0.65 4 0.65 4(g.2) Tax credit recorded 833 5,091 404 2,489(h) Total PASEP and COFINS credits

recorded (g.2) 833 5,091 404 2,489(i) Total tax credits recorded (f + h) 4,418,100 3,537,733 5,265,190 3,850,604



(b) Tax credits not recorded as assets

BB - Consolidated

March 31, 2005 March 31, 2004

Social SocialIncome tax contribution Income tax contribution

Nature and origin(a) Income tax and social contribution losses 638,940 35,623 637,905 40,040(a.1) Rate (%) 25 9 25 9(a.2) Tax credits not recorded 159,735 3,206 159,476 3,604(b) Timing differences 2,785,085 5,165,455 2,818,492 5,196,382(b.1) Rate (%) 25 9 25 9(b.2) Tax credits not recorded 696,271 464,891 704,623 467,674(c) Negative mark-to-market adjustments 36,894 36,894 13,949 13,949(c.1) Rate (%) 25 9 25 9(c.2) Tax credits not recorded 9,223 3,320 3,487 1,255(d) Accounting losses of foreign entities in countries with

favorable taxation 508,680 508,680 467,613 467,613(d.1) Rate (%) 25 9 25 9(d.2) Tax credits not recorded 127,170 45,781 116,903 42,085(e) Tax credits abroad 96,695 -- 114,009 --(f) Total income tax and social contribution credits not

recorded (a.2 + b.2 + c.2 + d.2 + e) 1,089,094 517,198 1,098,498 514,618


(g) Negative mark to market adjustments -- 856 3,108 3,108(g.1) Rate (%) 0,65 4 0,65 4(g.2) Tax credits not recorded -- 34 20 124(h) Total PASEP and COFINS tax credits not recorded (g.2) -- 34 20 124(i) Total tax credits not recorded (f + h) 1,089,094 517,232 1,098,518 514,742



(c) Changes during the period

(i) Tax credits recorded during the period

BB - Consolidated



(a) On income tax and social contributionlosses 2,772 711 -- --

(b) On timing differences 2,917 1,022 24 --(c) On negative mark-to-market adjustments 207 82 435 110(d) Tax credits abroad -- -- 5,727 --(e) Total income tax and social

contribution credits recorded (a + b + c+d) 5,896 1,815 6,186 110

PASEP COFINS PASEP COFINS

(e) On negative mark-to-market adjustments 7 12 8 51(f) Total tax credits recorded (e + f) 5,903 1,827 6,194 161

(ii) Tax credits reversed during the period

BB - Consolidated



(a) Relating to income tax and social contribution losses 325,098 -- 206,122 --

(b) Relating to timing differences -- -- 4.173 2,026(c) Relating to social contribution to offset

(MP 1858/99)--

117,301 -- 74,421(d) Relating to negative mark-to-market

adjustments 1,508 547 5,402 2,008(e) Tax credits abroad 2,521 -- -- --(f) Total reversals of income tax and

social contribution tax credits(a + b + c + d + e) 329,127 117,848 215,697 78,455




(g) Relating to negative mark-to-marketadjustments 128 789 388 2,209

(h) Total tax credits reversed (f + g) 329,255 118,637 216,085 80,664

(d) Deferred tax liabilities

BB - Consolidated

March 31, 2005 March 31, 2004


(a) Arising from sale of investments 816 294 1,458 525(b) Arising from mark-to-market adjustments 43,985 15,880 115,282 41,514(c) Arising from portfolio adjustment 30,949 -- 33,597 --(d) Arising from tax incentive depreciation 2 -- 4 --(e) Entities abroad 2,034 -- 6,669 --(f) Arising from restatement of judicial deposits 159,037 57,253 39,038 14,054(g) Arising from foreign profits 10,959 4,878 -- --(h) Total deferred income tax and social

contribution liabilities (a + b + c + d + e + f + g) 247,782 78,305 196,048 56,093


(h) Arising from mark-to-market adjustments 1,199 7,381 3,320 19,372(i) Arising from restatement of judicial deposits 4,337 26,687 1,064 6,551(j) Total deferred tax liabilities (h + i + j) 253,318 112,373 200,432 82,016



(e) Estimates of the realization of tax credits recorded (tax losses, timing differences andsocial contribution available for offset)

Banco do BrasilDecember 31, 2004

Nominal value Present value

In 2005 2,430,000 2,258,000In 2006 2,106,000 1,850,000In 2007 1,959,000 1,636,000In 2008 646,000 514,000In 2009 700,000 533,000In 2010 403,000 297,000

Total tax credits 8,244,000 7,088,000

During the first quarter of 2005, R$ 439,154 thousand of tax credits were realized by the Bank,equivalent to 18.07% of the estimated total realization for the year of R$ 2,430 million.

The above estimates of realization of tax credits were based on a technical study carried out asof December 31, 2004.

(f) Other information

(f.1) The tax credits were recorded at the current rates calculated on their respective bases. Therules established by BACEN Resolution 3059/2002 for the recording, maintenance andreversal/use of the credits are being followed.

(f.2) The tax credits recorded include Social Contribution to Offset relating to tax credits calculated atthe rate of 18% on tax losses and temporary differences existing on December 31, 1998.Provisional Measure (MP) 1.858/99 (current MP 2158-35/2001) reduced the rate of socialcontribution from 18% to 8% and authorized the maintenance of this credit classified in OtherReceivables - Sundry. At March 31, 2005, the balance of this account amounted toR$ 2,483,994.

Since January 1, 2003, the rate for social contribution on net income is 9%, in conformity withLaw 10637/2002.



(f.3) Projections of taxable income for the Bank indicate that the tax credits will be realized in up tosix years in the following proportions, according to the technical study prepared as of December31, 2004: 2005, 29%; 2006, 26%; 2007, 24%; 2008, 8%; 2009,8% and 2010, 5%. This studyalso considers the tax credits at their present value, based on the average rate of funding of theBank.

The tax credits on temporary differences are recorded based on the amounts of thenon-deductible provisions; most of these amounts are only expected to be realized in thelong-term.

(f.4) The Bank has recorded IRPJ, CSLL, PASEP and COFINS tax credits on the negativemark-to-market adjustments of securities and derivative financial instruments recorded in aseparate account in Stockholders' equity. The Bank has only recognized PASEP and COFINS taxcredits on negative mark-to-market adjustments recorded in income for the period, in compliancewith the rules included in BACEN Resolution 3059/2002 and BACEN Circular 3171/2002 (Note 3,items "d" and "e").

IRPJ, CSLL, PASEP and COFINS deferred tax liabilities have been recorded on the positivemark-to-market adjustments of securities and derivative financial instruments recorded in incomeand in a separate account in Stockholders' equity (Note 3, items "d" and "e").

19 Equity in the Earnings (Loss) of Subsidiary and Associated Companies

Significant investments in Brazil and abroad are stated on the equity method of accounting, inconformity with BACEN and CVM instructions, and are classified in an investment account inpermanent assets.

The equity accounting adjustments were recorded in the account "Equity in the earnings (loss) ofsubsidiary and associated companies" as follows:



(a) BB - Domestic and Foreign branches

Investments of Banco do Brasil S,A,

Equity in theearnings (loss) Book value

DESCRIPTION Paid incapital

Adjustedstockholder’s

equity

Ourownership

%

Dividends/ Intereston owncapital Operational

Foreignexchangevariations 3.31.2005 3.31.2004

SUBSIDIARIESBAMB – Brazilian AmericanMerchant Bank

1,132,795 1,408,768 100.00 -- 41,377 6,069 1,408,768 1,372,730

Banco do Brasil A.G. Vienna(Austria)

64,975 98,258 100.00 -- 719 (4,490) 98,258 98,136

BB – Leasing Company Ltd. -- 84,486 100.00 -- (159) 375 84,486 85,430BB – Administração de Cartõesde Crédito S.A.

9,300 26,675 100.00 9,981 1,612 -- 26,675 61,919

BB – Administradora deConsórcios S.A.

14,100 10,283 100.00 -- (1,113) -- 10,283 14,141

BB – Corretora de Seguros eAdmin. de Bens S.A.

26,918 47,292 100.00 -- 12,396 -- 47,292 44,539

BB – Administradora de Ativos –Distribuidora de Títulos eValores Mobiliários S.A.

99,628 177,988 100.00 -- 58,096 -- 177,988 169,254

BB – Banco de InvestimentoS.A.

1,589,399 2,118,804 100.00 -- 139,897 -- 2,118,804 1,915,531

BB – Leasing S.A. –Arrendamento Mercantil

61,860 23,142 100.00 -- 1,968 -- 23,142 24,534

Banco Popular do Brasil S.A. 116,550 83,199 100.00 -- (7,770) -- 83,199 24,511Cobra Tecnologia S.A. (1) 17,183 -- 99.35 545 14,350 -- -- 23,983ASSOCIATED COMPANIESCADAM – Caulim da AmazôniaS.A.

183,904 381,784 21.64 -- 1,900 -- 82,618 79,376

SUBTOTAL -- -- 10,526 263,273 1,954 4,161,513 3,914,084AbroadForeign exchange gain/losses inbranches

-- -- -- -- (43,847) -- --

Increase/decrease instockholders’ equity arising fromother changes -- -- -- -- (223) -- --TOTAL -- -- -- 10,526 263,050 (41,893) 4,161,513 3,914,084

(1) Information from the December 2004 trial balance.

(b) BB – Consolidated

Equity in theearnings (loss)

Book value

DESCRIPTION Paid incapital

Adjustedstockholder’s

equity

Ourownership

%

Dividends/Interest onown capital Operational

Foreignexchangevariations Provision 03.31.2005 03.31.2004

1) Banco do Brasil S.A.

SUBSIDIARIESBB – Administradora de Cartõesde Crédito S.A.

9,300 26,675 100,00 9,981 1,612 -- -- 26,675 61,919

BB – Administradora deConsórcios S.A.

14,100 10,283 100,00 -- (1,113) -- -- 10,283 14,141



BB – Corretora de Seguros eAdmin. de Bens S.A.

26,918 47,292 100,00 -- 12,396 -- -- 47,292 44,539

Cobra Tecnologia S.A. (1) 17,183 -- 99,35 545 14,350 -- -- -- 23,983ASSOCIATED COMPANIESCADAM – Caulim da AmazôniaS.A.

183,904 381,784 21,64 -- 1,900 -- -- 82,618 79,376

SUBTOTAL (1) - -- 10,526 29,145 -- -- 166,868 223,9582) BB-BI Banco de InvestimentoASSOCIATED COMPANIESBrasilseg Participações S.A. (3) 84,290 190,530 70,00 8,400 5,342 -- -- 133,371 121,949Cia. De Seguros Aliança do BrasilS.A. (3)

129,861 255,424 70,00 28,771 33,706 -- -- 178,797 135,117

Brasilprev (3) (B) 77,687 168,982 49,99 32,307 13,465 -- -- 88,766 79,075Brasilcap (3) 53,872 145,053 49,99 25,912 15,028 -- -- 72,512 65,646Brasilsaúde (3) (C) 39,726 39,726 49,92 569 (414) -- -- 19,688 19,838Cia. Brasileira de Meios dePagamento (3)

74,534 191,770 32,00 25,032 46,639 -- -- 61,423 23,103

Seguradora Brasileira de Créditoà Exportação (3)

9,165 14,945 12,088 100 (4) -- -- 1,806 1,516

Cibrasec (3) 68,475 53,119 10,00 465 188 -- -- 5,313 4,929Itapebi (3) 150,000 174,925 19,00 10,900 2,731 -- -- 33,693 29,665Kepler Weber (3) 51,228 117,591 24,38 232 805 -- -- 28,669 24,430Cia Bras. Soluções e Serviços (1) 8,718 14,528 37,467 -- 10 -- -- 10 216Ativos S.A. (3) 4,577 17,691 74,50 6,809 5,373 -- -- 16,223 11,737Maxblue DTVM (A) -- -- -- -- -- -- -- -- 2,781BAF Aconselhamento FinanceiroS.A. (2)

203,498 4,150 100,00 -- (23,939) -- 23,939 4,150 --

SUBTOTAL (2) -- -- -- 139,497 98,930 -- 23,939 644,421 520,0023) BAMB – Brazilian American Merchant Bank --SUBSIDIARIESBBTUR - Viagens e Turismo Ltda.(3)

12,634 13,592 99,00 -- 1,914 (71) -- 13,456 12,111

Ativos S.A. (3) 4,577 21,776 25,50 -- 1,827 (42) -- 5,553 4,018

Other -- -- -- -- -- -- -- 16 17

SUBTOTAL (3) -- -- -- -- 3,741 (113) -- 19,025 16,146

4) BB – Leasing Company Ltd.BBTUR - Viagens e Turismo Ltda. 12,634 13,592 1,00 -- 19 -- -- 136 123SUBTOTAL (4) -- -- -- -- 19 -- -- 136 123



5) BB-DTVM Distribuidora de Títulos e Valores Mobiliários

ASSOCIATED COMPANIES- (not valued on the equity method)PRONOR -- -- 12,02 -- -- -- -- 20,722 20,722 SUBTOTAL (5) -- -- -- -- -- -- -- 20,722 20,722

AbroadForeign exchange gain/losses inbranches

-- -- -- -- -- (43,847) -- -- --

Foreign exchange gain/losses insubsidiaries

-- -- -- -- -- 1,954 -- -- --

Increase/decrease instockholders’ equity arising fromother movements,TOTAL -- -- -- -- (223) -- -- -- --

-- -- -- 150,023 131,612 (42,006) 23,939 851,172 780,951

(A) On December 19, 2003, the contracts for the corporate dissolution of Maxblue Americas Holdings S,A were signed through which BB BI exchangedits 49,9% investment in this company for 100% of Maxblue DTVM. The Extraordinary General Meeting of stockholders held on May 12, 2004changed the Company's name from Maxblue DTVM S,A to "Brasil Aconselhamento Financeiro e DTVM S,A," and the Extraordinary GeneralMeeting of July 26, 2004 to "Brasil Aconselhamento Financeiro S,A,", The provision for loss on investment of R$ 3,701 has been maintained,

(B) Goodwill of R$ 4,292;(C) Negative goodwill of R$ 111;(1) Information from the December 2004 trial balance.(2) Information from the January 2005 trial balance.(3) Information from the February 2005 trial balance.

Note: The goodwill recorded on the acquisition of investments was based on the expectation of future profits and the negative goodwill on other economicreasons.



20 Related-party Transactions

The transactions carried out between companies of the group are:

March 31, 2005 March 31, 2004

Assets Income Assets Income(liabilities ) (expenses ) (liabilities ) (expenses )

Cash and cash equivalents 620 -- 917 --Foreign subsidiaries 620 -- 917 --

Short-term interbank deposits 337,920 57,850 14,800,817 90,195Foreign subsidiaries -- 44,428 14,592,617 82,388BB - Banco de Investimento S.A. -- -- 86,800 2,586BB - Leasing S.A. - Arrendamento Mercantil 297,920 13,422 121,400 5,531BB – Administração de Ativos - DTVM S.A. -- -- -- (310)BB - Banco Popular do Brasil S.A. 40,000 -- -- --

Securities 9,794 347 12,285 290Foreign subsidiaries -- 740 -- 290BB - Banco de Investimento S.A. -- -- 520 --BB - Leasing S.A. – Arrendamento Mercantil 9,794 -- 11,765 --BB - Administração de Ativos - DTVM S.A. -- (16) -- --BB - Administradora de Cartões de Crédito S.A. -- (165) -- --

Brasil Aconselhamento Financeiro S.A. -- (151) -- -- BB – Administradora de Consórcios S.A. -- (61) -- --Loan operations 93,166 173,661 75,205 1,271

Foreign subsidiaries -- 371 -- 751BB - Leasing S.A. - Arrendamento Mercantil 68,376 4,069 67,525 --BB – Administração de Ativos - DTVM S.A. 367 169,221 7,680 520Cobra Tecnologia S.A. 24,423 -- -- --

Other receivables 141,581 -- 241,350 --Foreign subsidiaries -- -- 144,891 --BB - Banco de Investimento S.A. 3,027 -- 969 --BB - Leasing S.A. - Arrendamento Mercantil 4,512 -- 2,708 --BB - Administração de Ativos - DTVM S.A. 66,853 -- 56,589 --BB – Administradora de Cartões de Crédito S.A. 10,336 -- 469 --BB - Corretora de Seguros e Adm de Bens S.A. 22,109 -- 18,670 --

Cobra Tecnologia S.A. 675 -- 2,795 --BB - Banco Popular do Brasil S.A. 15,405 -- 4,704 --BB – Administradora de Consórcios S.A. 1,377 -- 385 --Brasil Aconselhamento Financeiro S.A. 159 -- 323 --BB - Tur Viagens e Turismo Ltda. 7,532 -- 3,143 --Ativos S.A. 9,596 -- 5,704 --

Demand deposits (26,666) -- (218,094) --Foreign subsidiaries (63) -- (87) --BB - Banco de Investimento S.A. (83) -- (649) --BB - Leasing S.A. - Arrendamento Mercantil (96) -- (14) --BB – Administração de Ativos - DTVM S.A. (425) -- (446) --



March 31, 2005 March 31, 2004


BB – Administradora de Cartões de Crédito S.A. (101) -- (25,248) --BB - Corretora de Seguros e Adm de Bens S.A. (485) -- (474) --BB - Tur Viagens e Turismo Ltda. (1,734) -- (3,934) --Cobra Tecnologia S.A. (23,601) -- (187,195) --Brasil Aconselhamento Financeiro S.A. (17) -- (27) --Ativos S.A. (57) -- (20) --BB-Administradora de Consórcios S.A. (4) -- (47) --

Interbank deposits (7,328,666) -- (23,964,658) 41,232Foreign subsidiaries (7,328,666) -- (23,964,658) 41,232

Deposits received under security repurchaseagreements

(1,232,271) (44,847) (690,637) (17,447)

Foreign subsidiaries (54,452) -- (59,127) --BB - Banco de Investimento S.A. (549,837) (22,808) (1,033) (57)BB - Leasing S.A. - Arrendamento Mercantil -- (60) (580) (28)BB – Administração de Ativos - DTVM S.A. (266,278) (13,182) (346,334) (9,880)BB - Administradora de Cartões de Crédito S.A. (183,313) (1,201) (153,995) (3,078)BB - Corretora de Seguros e Adm de Bens S.A. (117,100) (5,289) (100,901) (4,345)Cobra Tecnologia S.A. (650) -- (34) --BB - Banco Popular do Brasil S.A. (48,573) (1,948) (5,262) --BB - Administradora de Consórcios S.A. (6,747) (295) (14,315) (59)

Brasil Aconselhamento Financeiro S.A. (5,321) -- -- --BB - Tur Viagens e Turismo Ltda. -- (64) (9,056) --

Funds from acceptance and issue of securities (32,629) -- (24,925) --Foreign subsidiaries (32,629) -- (24,925) --

Foreign borrowings (2,749,725) (6,066) (3,030,984) (6,511)Foreign subsidiaries (2,749,725) (6,066) (3,030,984) (6,511)

Foreign onlendings (781,873) -- (1,134,701) (8,601)Foreign subsidiaries (781,873) -- (1,094,615) (8,601)

Derivative financial instruments (110,536) (925) (20,043) 1,066Foreign subsidiaries (108,790) -- (19,618) --BB - Banco de Investimento S.A. (1,494) (1,342) -- 520BB - Leasing S.A. - Arrendamento Mercantil -- 417 -- 546BB - Administradora de Cartões de Crédito S.A. (192) -- (243) --BB - Administradora de Consórcios S.A. (60) -- (182) --

Other liabilities (761,833) -- (850,401) --Foreign subsidiaries (586,865) -- (736,637) --BB-Banco de Investimento S.A. -- -- (69) --BB - Leasing S.A. - Arrendamento Mercantil (46) -- (12) --BB - Administradora de Cartões de Crédito S.A. (11,721) -- -- --BB - Administração de Ativos - DTVM S.A. (7,146) -- (4,113) --Cobra Tecnologia S.A. (150,705) -- (107,486) --BB - Tur Viagens e Turismo Ltda. (3,367) -- (2,084) --BB-Banco Popular do Brasil S.A. (1,983) -- -- --



March 31, 2005 March 31, 2004


Reimbursement of costs -- -- -- 410 BB – Administração de Ativos – DTVM S.A. -- -- -- 410Other operating income -- 16,002 -- 4,301

Foreign subsidiaries -- 51 -- 34BB - Banco de Investimento S.A. -- 6,054 -- 1,428BB - Administração de Ativos - DTVM S.A. -- 3,572 -- --

BB – Administradora de Cartões de Crédito S.A. -- 401 -- 1,605BB - Corretora de Seguros e Adm de Bens S.A. -- 1,357 -- 1,234BB - Tur Viagens e Turismo Ltda. -- 2 -- --BB - Administradora de Consórcios S.A. -- 4,329 -- --Ativos S.A. -- 236 127

Other administrative/operating expenses -- (64,889) -- (389,262)BB – Administração de Ativos - DTVM S.A. -- (2,398) -- --

Brasil Aconselhamento Financeiro S.A. -- (3,980) -- --BB-Banco Popular do Brasil S.A. -- (1,949) -- --Cobra Tecnologia S.A. -- (56,562) -- (389,262)

Other receivables include accounts receivable from related parties, dividends and interest onown capital receivable.

Transactions carried out between the companies included in the consolidation are eliminated onconsolidation (Note 2.b).


Banco do Brasil S.A.Quarterly InformationBalance SheetIn thousands of reais

21 Operating Limits - Basel Agreement

At March 31, 2005, the referential stockholders' equity exceeded the minimum required by theBrazilian Central Bank by R$ 6,231,001 and the coefficient of capital adequacy was 15,62%(14,30% as of March 31, 2004), while the minimum required is 11%.

The risk-weighted assets are as follows:

March March31, 2005 31, 2004

Cash and cash equivalents 2,443,035 2,321,041Credits and securities issued or guaranteed by the

Brazilian Government73,133,091 70,290,700

Deposits with the Brazilian Central Bank 20,787,070 17,098,775Receivables from related companies 5,970 33,160Specific credits - rescheduling of rural credits 558,821 506,017Foreign exchange portfolio 788,419 885,603Other 1,038,285 776,638

Total subject to zero-risk 98,754,691 91,911,934

Foreign currency funds 11,376,696 6,288,845Clearing services for checks and other papers 2,442,455 2,238,354Foreign exchange portfolio 1,156,957 1,044,115Deposits with other banks 585,023 6,656,365Investments in gold 3,038 13,267

Total subject to 20% risk 15,564,169 16,240,946

Weighted amount 3,112,833 3,248,189

Funds applied in interbank deposits 13,551,578 22,706,553Foreign exchange portfolio 8,198,843 7,864,128Foreign securities 283,911 10,849Other 710,975 659,988


Weighted amount 11,372,653 15,620,759

Loan operations 77,750,911 66,319,418Property and equipment in use 2,886,027 2,844,177Leased assets 598,313 405,271


Quarterly InformationBalance SheetIn thousands of reais

March March31, 2005 31, 2004

Investments 885,369 803,831Securities 4,069,246 2,586,006Foreign exchange portfolio 299,885 402,310Memorandum accounts (8,866,709) (8,639,382)Other 14,492,713 9,731,156


Weighted amount 92,115,755 74,452,787

Deferred tax credits - income tax and social contributionon net income

7,794,993 8,789,709


Weighted amount 23,384,979 26,369,127

Total assets subject to risk weighting 236,974,915 222,636,895

Total weighted amount 129,986,220 119,690,864

The calculations of the required stockholders' equity and the adequacy coefficient are as follows:

March31, 2005

March31, 2004

(a) Assets subject to risk weighting 236,974,915 222,636,895(b) AWR (assets weighted by risk) 129,986,220 119,690,864(c) SWAP credit risk 949,642 748,448(d) Requirement of stockholders' equity on AWR (11% of b) 14,298,484 13,165,995(e) Requirement of stockholders' equity on SWAP (20% of c) 189,928 149,690(f) Requirement of stockholders' equity on interest rate exposure

351,012 330,543

(g) Required stockholders' equity (RSE): d + e + f 14,839,425 13,646,227(h) Referential equity amount (RE) 21,070,426 17,740,374

Level I 14,746,358 12,335,730Capital 9,864,153 8,366,189Capital reserves 4,763 4,754Revenue reserves 4,294,251 3,674,443Adjustment to market value - securities and derivatives (94,798) 126,617

Retained earnings 29 7



March31, 2005

March31, 2004

Income accounts 13,990,066 12,650,900 Expense accounts (13,025,487) (12,035,316) Treasury stock (125,779) (125,779)

Tax credits excluded from Level I of RE (160,840) (326,085)Level II 6,324,068 5,404,644

Subordinated debts eligible as capital (FCO) 6,298,367 5,380,282 Revaluation reserves 25,701 24,362(i) Ratio between Referential equity amount to required

stockholders' equity: RE and RSE (h/g)1.42 1.30

(j) Surplus/(insufficiency) of stockholders' equity: RE - RSE (h-g) 6,231,001 4,094,146(l) Margin/(surplus) of leverage: (j x 100)/11 56,645,464 37,219,511(m) Basel Ratio: RE x 100/(RSE/0,11) 15.62 14.30

22 Assets and Liabilities in Foreign Currencies

The balance sheet amounts in foreign currencies are as follows:

BB - Domestic and Foreignbranches BB - Consolidated


Assets in foreign currencies recorded in Brazil(except investments) 22,422,273 35,140,750 22,421,652 20,402,325

Investments in foreign currencies recorded inBrazil 11,639 12,187

----

Assets in foreign currencies recorded abroad 31,306,903 48,316,451 25,846,123 42,082,180Total 53,740,815 83,469,388 46,267,775 62,484,505

Liabilities in foreign currencies recorded inBrazil

25,001,871 30,751,563 20,878,386 25,841,879

Liabilities in foreign currencies recordedabroad

30,159,812 51,751,857 28,810,258 35,683,747

Total 55,161,683 82,503,420 49,688,644 61,525,626



23 Retirement and Pension and Health Plans - Post-Employment Benefits

(a) Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI

Banco do Brasil is the sponsor of Caixa de Previdência dos Funcionários do Banco do Brasil(PREVI) which provides participants and their dependents with benefits which are complementaryor similar to those of the Basic Government Retirement Plan. The plans offered through PREVIare of defined contribution (Plano Previ Futuro) or defined benefit (Plan 1), the latter havingadopted the capitalization method for actuarial calculations. At March 31, 2005, the number ofparticipants was 131,617, of which 76,251 are active and 55,366 retired employees.

(a.1) The funding of the vested and unvested benefits are summarized as follows:

(a) Participants employed before April 14, 1967, contemplated in the contract signed on December24, 1997 between the Bank and PREVI (Plan 1): The sponsor assumes the commitment for thepayment of benefits for this group; the mathematical reserves which guarantee the benefits arenot yet fully funded. The amount remaining from the commitments assumed for this group ofparticipants totals R$ 471,013 thousand at March 31, 2005, and relates entirely to unrecognizedactuarial losses. R$ 60,782 thousand of this amount has already been transferred by Banco doBrasil in March 2005. The pension rights of this group of participants are characterized as adefined benefit.

(b) Participants employed between April 15, 1967 and December 23, 1997 (Plan 1): activeparticipants contribute 3% of their contribution salary plus 2% of the amount of such salary thatexceeds six-month of the PREVI contribution (R$ 2,057.53 at March 31, 2005), plus 8% of theamount of such salary that exceeds the PREVI contribution. Participants receiving benefitscontribute 8% of the amount of the pension complement and the sponsor an amount equal to thecontributions of the participants. The retirement benefit of this group is characterized as a definedbenefit.

(c) Participants employed as from December 24, 1997 (Plano Previ Futuro): active participantscontribute to PREVI an amount between 7% and 17% of their contribution salary, varying basedon length of service and the amount of the contribution salary. There is no contribution for retiredparticipants. The sponsor contributes an amount equal to the contributions of the participants,limited to 14% of the total contribution payroll of these participants. The retirement benefit of thisgroup is characterized as a defined contribution.

(a.2) Effects of Benefit Plan 1, based on actuarial valuations as of December 31, 2003 and 2004carried out by an independent actuary, and of the Plano Previ Futuro as required by CVMResolution 371/00:



(a) Equity effect (reconciliation of assets and liabilities):

Plan 1March March

31, 2005 31, 2004

(1) Present value of actuarial liabilities with coverage 52,354,343 46,567,548(2) Present value of actuarial liabilities not covered -- --(3) Present value of actuarial liabilities (1 + 2) 52,354,343 46,567,548(4) Fair value of the plan assets (68,880,031) (55,714,690)(5) Present value of liabilities in excess of (less than) the

fair value of the assets (3 + 4) (16,525,688) (9,147,142)

(6) Actuarial (gains) or losses not recognized (13,877,071) (6,798,636)(7) Net actuarial liability (asset) to be provided (5 - 6) (2,648,617) (2,348,506)

The Previ Futuro Plan, being a defined contribution plan, is not required to record actuarialassets or liabilities.

(b) Amounts paid to PREVI:

March 31, 2005 March 31, 2004

Plan 1

PlanoPrevi

Futuro Total Plan 1

PlanoPrevi

Futuro Total

Sponsor contributions 107,893 12,905 120,798 118,632 8,309 126,941Amounts paid to PREVI referringto the 1997 Contract 511,191 -- 511,191 623,929 -- 623,929

Total paid to PREVI 619,084 12,905 631,989 742,561 8,309 750,870



(c) Effect on net income:

March 31, 2005 March 31, 2004

Plan 1

PlanoPrevi

Futuro Total Plan 1

PlanoPrevi

Futuro Total

(1) Cost of current service(with interest) 70,468 25,178 95,646 75,378 15,788 91,166

(2) Interest on actuarial liabilities 1,337,838 -- 1,337,838 1,190,066 -- 1,190,066(3) Expected earnings on the

plan assets 1,786,102 -- 1,786,102 1,441,119 -- 1,441,119

(4) Deferment of the net earningsfrom assets and liabilities asfrom June/2003 (2-3)

(448,264) -- (448,264) (251,053) -- (251,053)

(5) Total gross expense/(income)(1 + 2 - 3 - 4) 70,468 25,178 95,646 75,378 15,788 91,166

(6) Expected contributions fromparticipants 46,493 12,918 59,411 41,068 7,894 48,962

(7) Previ liability expense relatedto the 1997 contract 8,408 -- 8,408 106,317 -- 106,317

(8) Subtotal net expense /(income)(5 - 6 + 7) 32,383 12,260 44,643 140,627 7,894 148,521

(9) Previ management fee (5% ofthe employers’ union dues) 5,395 645 6,040 5,931 415 6,346

(10) Effect of the netexpense/(income) (8 + 9) 37,778 12,905 50,683 146,558 8,309 154,867

(a.3) The principal economic assumptions adopted for the actuarial calculations were the following:

. Real interest rate used for discounting actuarial liabilities to present value: 6.7% p.a.

. Real expected yield on plan assets: 6.7% p.a.

. Estimated salary increases: 1.4712% p.a. for Plan 1 and 3.5320% p.a. for Plano Previ Futuro

(b) Benefits of sole responsibility of the Bank

Banco do Brasil is also responsible for assistance and pension benefits for employees employedbefore April 14, 1967, not covered by the PREVI Benefits Plan, with characteristics of a definedbenefit plan, and the regime adopted for the actuarial calculations is that of capitalization. Therewere 7,866 participants on March 31, 2005.



The main benefits are: (a) retirement pensions to founder participants and pension payments tosurvivors of participants deceased prior to April 14, 1967; (b) payment of retirement supplementsto the other participants employed by Banco do Brasil who retired up to April 14, 1967 or who, onthat date, would have the right through length of service to retire and who had at least 20 years ofeffective service with the Bank; and (c) increase in retirement benefits and pension payments inexcess of those provided by the PREVI Benefit Plans, as a result of judicial and administrativedecisions due to the restructuring of job and salary plans and incentives created by the Bank.

(b.1) The cost of these benefits is totally funded by Banco do Brasil.

(b.2) Effects on the financial statements based on actuarial valuations as of December 31, 2003 and2004 carried out by an independent actuary, as required by CVM Resolution 371/00:


March MarchDescription 31, 2005 31, 2004

(1) Present value of actuarial liabilities with coverage -- --(2) Present value of actuarial liabilities not covered

(Plans without financial assets) 1,532,148 1,492,491

(3) Present value of actuarial liabilities (1 + 2) 1,532,148 1,492,491(4) Fair value of the plan assets -- --(5) Present value of liabilities in excess of the

fair value of the assets (3 + 4) 1,532,148 1,492,491

(6) Actuarial (gains) or losses not recognized 180,239 192,065(7) Net actuarial liability/(asset) to be provided (5 - 6) 1,351,909 1,300,426

(b) Amounts paid to PREVI:

March31, 2005

March31, 2004

Sponsor contributions 64,451 79,438


March31, 2005

March31, 2004

(1) Cost of current service -- --(2) Expected contributions from participants -- --(3) Interest on actuarial liabilities 37,427 36,622(4) Actuarial (gains) or losses -- --(5) Expected earnings on assets -- --(6) Effect of the expense recorded (1 - 2 + 3 + 4 - 5) 37,427 36,622



(b.3) The economic assumptions adopted for the actuarial calculations are the same as thoseadopted for the PREVI Plan 1 (item 23 (a.3)).

(c) CASSI - Caixa de Assistência dos Funcionários do Banco do Brasil

The Bank is the sponsor of a Health Plan managed by CASSI - Caixa de Assistência dosFuncionários do Banco do Brasil. The main objective is to provide coverage for expenses withthe promotion, protection, recovery and rehabilitation of a member's health and of his/herinscribed beneficiaries. At March 31, 2005, there were 153,976 participants, of which 83,654active and 70,322 retired participants and pensioners.

The Bank contributes monthly an amount equivalent to 150% of the total contributions frommembers (active and retired) and from pension beneficiaries of employees employed beforeDecember 23, 1997 and 100% of the total contributions from participants employed after thatdate. Monthly contributions from members and pension beneficiaries amount to 3% of the totalpayroll or the total retirement or pension plan benefits.

(c.1) Effects of the CASSI Plan on the financial statements, based on actuarial appraisals as ofDecember 31, 2003 and 2004 carried out by an independent actuary, as required by CVMResolution 371/00:


March31, 2005

March31, 2004

(1) Present value of actuarial liabilities with coverage -- --(2) Present value of actuarial liabilities not covered

(Plans without financial assets) 3,078,155 2,389,460

(3) Present value of actuarial liabilities (1 + 2) 3,078,155 2,389,460(4) Fair value of the plan assets -- --(5) Present value of liabilities in excess of the

fair value of the assets (3 + 4) 3,078,155 2,389,460

(6) Actuarial (gains) or losses not recognized 1,360,228 781,467(7) Net actuarial liability (asset) to be provided (5 - 6) 1,717,927 1,607,993

(b) Amounts paid to CASSI:

March31, 2005

March31, 2004

Sponsor contributions 92,389 93,789




March31, 2005

March31, 2004

(1) Cost of current service (with interest) 7,808 5,943(2) Expected contributions from participants -- --(3) Interest on actuarial liabilities 78,670 60,940(4) Actuarial (gains) or losses 15,517 8,990(5) Expected earnings on assets -- --(6) Effect of the expense recorded (1 - 2 + 3 + 4 - 5) 101,995 75,873

(c.2) The economic assumptions adopted for the actuarial calculations were the same as those appliedto the PREVI Plan 1 (item 23(a.3)).

(d) Policy for the recognition of actuarial gains and losses

In accordance with CVM Deliberation 371, the actuarial gains or losses to be recognized asincome or expense in a defined benefit plan are the amount of unrecognized gains and lossesthat exceed, in each period, the higher of the following limits:

. 10% of the present value of the total actuarial liability of the defined benefit; and

. 10% of the fair value of plan assets.

d.1) Benefits of Sole Responsibility of the Bank (Plan 1): Actuarial losses relating to thesebenefits are being recorded in the same year the actuarial calculation is made because thepersons involved are all former employees, and thus there is no remaining length of service toamortize.

d.2) Benefit Plan 1: Previ Plan 1 has assets at fair value in excess of the liabilities, thuspermitting the recording of actuarial gains. However, because of (i) the remaining pensioncommitments of the plan; (ii) the fluctuations that can affect the fair value of plan assets, and (iii)the possibility to realize actuarial gains, the Bank, conservatively, is not recording the actuarialgains arising in Plan 1 because they represent an increase in the existing actuarial assets.

d.3) Cassi Actuarial Liabilities: Actuarial losses related to these liabilities are recognized in theyear following that in which the actuarial calculation is made.



(e) Summary of the Provisions for the PREVI and CASSI Liabilities

3.31.2005

Net actuarialliability/(asset)

on January1, 2005

Expense(income)

recorded inthe incomestatement

consideringactuarial

adjustments

Sponsorcontributions

in the year

Net actuarialliability(asset)

on March31, 2005

PREVI actuarial liability in respect of the 1997contract 442,001 8,408 (511,191) (60,782)

Adjustment account of the PREVI actuarial liability (2,570,095) 23,975 (102,497) (2,648,617)PREVI actuarial liability in respect of the Informal

Plan (sole responsibility of the Bank) 1,378,933 37,427 (64,451) 1,351,909

CASSI actuarial liability 1,671,721 101,995 (55,789) 1,717,927Total 922,560 171,805 (733,928) 360,437

3.312004

Net actuarialliability/(asset)

on January1, 2004

Expense(income)

recorded inthe incomestatement

consideringactuarial

adjustments

Sponsorcontributions

in the year

Net actuarialliability(asset)

on March31, 2004

PREVI actuarial liability in respect of the 1997contract 2,508,808 106,317 (623,929) 1,991,196

Adjustment account of the PREVI actuarial liability (2,270,115) 34,310 (112,701) (2,348,506)PREVI actuarial liability in respect of the Informal

Plan (sole responsibility of the Bank) 1,343,242 36,622 (79,438) 1,300,426

CASSI actuarial liability 1,593,117 75,873 (60,997) 1,607,993Total 3,175,052 253,122 (877,065) 2,551,109

(f) PREVI contributions parity

In order to comply with the Federal Constitution, a parity was established as from April 6, 2001between the contributions from the Bank and from participants.

On April 12, 2001, the Judge of the Thirteenth Federal Court of the Federal District granted apartial injunction for a claim filed by the São Paulo Bank Employees Union against theSecretariat of Complementary Retirement Benefits and against the Fiscal Director appointed bythe Secretariat for PREVI.

The injunction suspends the decision issued by the Fiscal Director on April 6, 2001 whichauthorizes the use of R$ 2.2 billion attributable to Banco do Brasil's share in PREVI's remainingreserve balances, after the implementation of the parity, to amortize the pension liability with theentity that is the Bank's responsibility, retroactive to December 15, 2000.

While the injunction is in effect, the decision of the Fiscal Director cannot be carried out.The readjusted amount of the initial R$ 2.2 billion totals R$ 4.7 billion at March 31, 2005.



24 Compensation Paid to Employees and Management

The monthly compensation of employees and management of the Bank in Brazil is presentedbelow (in reais) in the format required by item 4, Section C of Ministry of Finance Statement ofJustification 139/88:

1st quarter2005

1st quarter2004

Lowest salaryStandard amount 780.30 719.10Semiannual bonus 195.07 179.77

Fixed amount – Trade Union Agreement 2004 30.00 --Total 1,005.37 898.87

Highest salaryStandard amount 1,079.68 995.10Amount per individual/supplement for length of service - I 374.81 345.45Amount per individual - standard amount 1,144.36 1,054.71Variable temporary supplement – commissioned position 10,426.63 9,609.83Additional per function 2,597.40 2,393.70Additional for temporary work updated 1,612.20 1,485.90Semiannual bonus 1,702.12 1,568.71

Total 18,937.20 17,453.40

Average salary 3,069.88 2,871.90

ManagementPresident 24,679.20 22,745.70Vice-president 22,235.70 20,493.60Director 18,937.20 17,453.40



25 Assignment of Employees to External Organizations

(a) With costs for the Bank

(a.1) Federal government

Assignments are regulated by article 93 of Law 8112/90 (amended by Law 9257/97), byDecree 925/93, and by PGFN/CJN Note 088/96 issued by the General Counsel of the FederalTreasury.


Number of employees assigned 12 12Cost for the period 503 494

(a.2) Labor unions

Assignments occur in cases prescribed in the Collective Labor Agreement or by commitmentsassumed as a result of salary negotiations:

1st quarter2005 1st quarter 2004

Number of employees assigned 124 101Cost for the period 2,235 1,846

(a.3) Other organizations/entities

Assignments occur as a result of agreements of strategic business interest of the Bank:


Number of employees assigned 3 3Cost for the period 210 217

(b) Without cost to the Bank


(a) Federal, state and municipal governments 319 323(b) External organizations 564 659(c) Employee entities 30 --(d) Subsidiary and associated companies 314 276

Total employees assigned 1,366 1,374



26 Commitments, Responsibilities and Contingencies

(a) Contingent liabilities

The Bank and its subsidiaries are parties in lawsuits involving labor, civil, tax and social securitycontingencies.

The Bank classifies contingencies as remote, possible and probable, based on the possibilitiesof loss determined after a legal update of each claim. This procedure complies with StatementXXII - Contingencies issued by the Institute of Independent Auditors of Brazil - IBRACON, whichrequires a provision for the total amount of the contingencies classified as probable, and doesnot require a provision to be recorded for those classified as possible and remote.

The provisions for claims are recorded taking into consideration the possibility of success by theplaintiff in the lawsuit against the Bank/subsidiary.

The provisions for labor claims are recorded considering, also, the jurisprudence applicable toeach claim.

The consolidated position of the contingent liabilities at March 31, 2005, segregated by nature ofclaim and classification of loss, as well as the provisions recorded, whose changes in the Bankare shown in Note 7, are the following:

BB - domestic andforeign branches BB - consolidated

Amount Provision Amount Provision

Labor claims 2,499,472 2,105,501 2,499,472 2,105,501Probable loss 2,105,501 2,105,501 2,105,501 2,105,501Possible loss 393,971 -- 393,971 --

Tax claims 626,475 130,489 672,172 167,183Probable loss 130,489 130,489 167,183 167,183Possible loss 495,986 - 504,989 -

Civil claims 2,056,736 770,888 2,105,158 805,471Probable loss 770,888 770,888 805,471 805,471Possible loss 1,285,848 -- 1,299,687 --

Social security claims 484 8 631 155Probable loss 8 8 155 155Possible loss 476 -- 476 --



(b) Contingent tax assets

(b.1) The Bank has filed lawsuits for reimbursement of taxes paid in error, the most important being:

. Unconstitutionality of Income Tax on Net Income paid in 1989 and in the 1st six months of1992, in the amount of R$ 10,397;

. Tax on Financial Transactions (IOF) - Law 8033/90 (Price-level restatement), in the amount ofR$ 162,353;

(b.2) The Bank recorded R$ 229,127 thousand in Other operating income relating to the recognition ofthe right to offset tax credits (CSLL) of the year 1988 in a judicial decision that has been finallyruled.

(c) Other commitments

(c.1) The Bank is the sponsor of Fundação Banco do Brasil whose purpose is the promotion, support,advancement and sponsorship of educational, cultural, social, philanthropic, andrecreational/sporting activities, as well as the promotion of research activities of a technologicaland scientific nature, and rural and urban community assistance services.

(c.2) Guarantees to third parties, for a fee and with counter-guarantees from the beneficiaries -guarantees, sureties and bonds - amounted to R$ 3,645,287 at March 31, 2005 (R$ 3,781,915 atMarch 31, 2004). A provision of R$ 19,590, recorded in "Other Liabilities", is considered sufficientto cover any potential loss arising on these guarantees.

(c.3) Available credit lines for loan and lease operations amount to R$ 22,802,078 at March 31, 2005(R$ 19,276,164 at March 31, 2004).

(c.4) The confirmed import and export letters of credit total R$ 884,745 at March 31, 2005 (R$1,212,032 at March 31, 2004).

(c.5) The Bank is the operator of the Fund for Sectorial Investments (FISET), with net assets ofR$ 2,280 (R$ 2,304 at March 31, 2004), and is the manager of the Public Service EmployeeSavings Program (PASEP), with net assets of R$ 1,395,414 at March 31, 2005 (R$ 1,221,296 atMarch 31, 2004). The Bank guarantees the latter a minimum remuneration equivalent to the Long-Term Interest Rate (TJLP).

(c.6) Despite the reduced level of risk to which its assets are subject, the Bank contracts insurancecover for its assets in amounts considered sufficient to cover any losses.



Statement of Added Value

BB-Domestic and Foreign Branches1st quarter 2005 1st quarter 2004

DESCRIPTION BALANCE % BALANCE %

Added value calculation

Net income from financial intermediation 2,580,049 2,311,194Banking service fees 1,631,835 1.437,782Other operating income (expenses), net (644,132) (1,010,051)Non-operating income, net 96,430 14,295

Added value 3,664,182 2,753,220

Equity in the earnings (loss) of subsidiary andassociated companies 221,157 190,515

Gross added value 3,885,339 2,943,735

Depreciation and amortization (173,336) (112,632)

Added value to be distributed 3,712,003 100.00 2,831,103 100.00

Distribution of added value

Employees 1,661,785 44.77 1,424,872 50.33Salaries and fees 1,165,379 1,013,856Benefits, social charges and training 418,731 370,005Employee profit sharing 77,675 41,011

Governments 1.085,638 29.25 790,646 27.93 Brazil 1,073,129 28.91 781,989 27.62

Social security contributions (INSS) on salaries 201,860 172,069Tax expenses (except income tax and social

contribution on net income) 364,307 296,221Income tax/social contribution on net income 506,962 313,699

Foreign 12,509 0.34 8,657 0.31Tax expenses (except income tax and social


Stockholders 964,580 25.98 615,585 21.74Retained earnings 964,580 615,585

Added value distributed 3,712,003 100.00 2,831,103 100.00



BB-Consolidated1st quarter 2005 1st quarter 2004

DESCRIPTION BALANCE % BALANCE %

Added value calculation

Net income from financial intermediation 2,685,301 2,413,878Banking service fees 1,766,749 1,552,537Other operating income (expenses), net (689,748) (1,063,307)Non-operating income, net 97,819 15,463

Added value 3,860,121 2,918,571

Equity in the earnings (loss) of subsidiary andassociated companies 113,545 116,423

Gross added value 3,973,666 3,034,994

Depreciation and amortization (173,737) (114,935)

Added value to be distributed 3,799,929 100.00 2,920,059 100.00

Distribution of added value

Employees 1,677,958 44.16 1,441,640 49.37Salaries and fees 1,177,821 1,026,977Benefits, social charges and training 422,378 373,652Employee profit sharing 77,759 41,011

Governments 1,157,391 30.46 862,834 29.55 Brazil 1,144,909 30.13 853,653 29.24

Social security contributions (INSS) on salaries 203,667 173,837Tax expenses (except income tax and social


Foreign 12,482 0.33 9,181 0.31Tax expenses (except income tax and social


Stockholders 964,580 25.38 615,585 21.08Retained earnings 964,580 615,585

Added value distributed 3,799,929 100.00 2,920,059 100.00


Banco do Brasil S.A.Quarterly InformationBalance SheetIn thousands of reais



Current assets 245,685,361 239,014,143 Current liabilities 245,685,361 239,014,143

Available funds 14,407,563 15,493,822 Deposits (Note 10) 116,555,464 107,504,114 Demand deposits 29,340,311 28,990,880

Short-term interbank investments (Note 4) 15,092,120 13,675,352 Savings deposits 31,417,670 31,069,451 Open market investments 3,898,310 2,678,017 Interbank deposits 3,571,051 2,599,457 Interbank deposits 11,193,810 10,997,335 Time deposits 52,145,370 44,806,219

Other deposits 81,062 38,107

Marketable securities andDerivative financial instruments (Note 5) 22,023,390 20,386,115

Funds obtained in the open market38,287,279 39,649,107

Own portfolio 13,125,443 10,471,095 Own portfolio 35,430,133 37,284,041 Subject to repurchase commitments 7,797,487 9,027,740 Third-party portfolio 2,857,146 2,365,066 Restricted deposits – Central Bank 524,402 333,204 Restricted to guarantees provided Derivative financial instruments 576,058 554,076 Notes and securities 103,831 118,049

Foreign marketable securities 103,831 118,049

Interbank accounts 23,347,967 22,106,197 Interbank accounts 1,520,579 5,879 Payments and receipts pending settlement 2,442,455 54,044 Receipts and payments pending settlement 1,520,387 5,879 Restricted deposits Correspondent banks 192 0 Central Bank deposits 20,787,070 21,930,975 National Treasury – rural credit receivable 8,409 3,829 National Housing Financing System (SFH) 2,633 1,764 Interdepartmental accounts 1,385,209 1,724,676 Interbank onlendings 5,031 4,837 Third-party funds in transit 1,331,791 1,724,558 Correspondent banks 102,369 110,748 Internal transfers of funds 53,418 118

Interdepartmental accounts 140,229 147,141 Borrowings (Note 11) 13,614,328 13,071,334 Internal transfers of funds do 140,229 147,141 Foreign borrowings 13,614,328 13,071,334

Lending operations 39,367,587 38,388,002 Local onlendings – official institutions (Note 12) 3,318,155 3,073,450 Lending operations National Treasury 3,312,941 3,068,535 Public sector (Note 6b) 1,125,732 775,794 National Economic Development Bank (BNDES) 0 0 Private sector (Note 6b) 41,279,354 40,534,409 National Industrial Financing Authority (FINAME) 3,924 3,635


Quarterly InformationBalance SheetIn thousands of reais (continued)



(Allowance for loan losses) (Notes 6e and 6f) (3,037,499) (2,922,201) Other institutions 1,290 1,280

Leasing operations (3,624) 8,085 Leases and subleases receivable Foreign onlendings 209 2,460 Public sector 22,864 20,961 Foreign onlendings 209 2,460 Private sector 247,314 233,216 (Unearned income from leasing operations) (250,747) (225,009) (Allowance for leasing losses) (Note 6e) (23,055) (21,083)

Other receivables 14,916,745 13,959,728 Derivative financial instruments (Note 5b) 570,613 445,565 Receivables on guarantees honored 82,809 70,977 Derivative financial instruments 570,613 445,565 Foreign exchange portfolio (Note 8a) 10,444,104 8,529,983 Income receivable 167,535 146,083 Other liabilities 18,359,748 17,670,286 Negotiation and intermediation of securities 61,629 235,270 Collection of taxes and social contributions 1,966,723 255,194 Specific credits (Note 8b) 279,411 271,921 Foreign exchange portfolio (Note 14a) 7,969,384 7,869,765 Special operations 1,355 1,355 Social and statutory 84,392 422,854 Sundry (Note 8c) 5,892,982 6,506,179 Taxes and social security charges 923,702 953,423 (Allowance for other losses) (Notes 6e and 6f) (2,013,080) (1,802,040) Negotiation and intermediation of securities 71,639 275,517

Financial and development funds (Note 14b) 165,524 161,857Other assets 188,324 227,740 Special operations 2,382 2,387 Shareholdings 4 4 Subordinated Debts (Note 14e) 237 210 Other assets (Note 9) 317,417 335,042 Sundry (Note 14d) 6,605,152 7,283,514 (Allowance for losses) (177,267) (186,044) Prepaid expenses 48,170 78,738

Long-term receivables 111,259,000 109,563,134 Long-term liabilities 37,479,420 41,955,512

Interbank investments (Note 4) 2,589,225 2,778,006 Deposits (Note 10) 3,541,029 8,027,728





Open market investments 54,452 53,576 Interbank deposits 2,917,541 3,169,043 Interbank deposits 2,534,773 2,724,430 Time deposits 623,488 4,858,685

Funds obtained in the open market 4,798,557 4,877,753Marketable securities andDerivative financial instruments (Note 5) 52,065,979 53,099,245

Own portfolio4,173,151 4,316,255

Own portfolio 16,038,125 16,262,042 Third-party portfolio 625,406 561,498 Subject to repurchase commitments 33,930,249 34,731,348 Restricted deposits - Central Bank 1,660,608 1,628,821 Restricted for guarantees provided 364,014 451,765 Notes and securities 747,934 657,722 Derivative financial instruments 72,983 27,269 Foreign marketable securities 747,934 657,722

Lending operations 38,572,960 36,435,164 Borrowings (Note 11) 3,586,683 3,493,557 Lending operations Foreign borrowings 3,586,683 3,493,557 Public sector (Note 6b) 3,402,131 3,384,795 Private sector (Note 6b) 37,485,486 35,238,093 (Allowance for loan losses) (Notes 6e and 6f) (2,359,657) (2,187,724)

Leasing operations 7,144 12,259 Local onlendings - official institutions (Note 12) 7,310,466 7,537,903 Leases and subleases receivable National Treasury 282,995 292,794 Public sector 37,305 32,926 National Economic Development Bank (BNDES) 3,662,796 3,559,403 Private sector 272,542 245,345 National Industrial Financing Authority (FINAME) 2,922,720 3,022,212 (Unearned income from leasing operations) (296,426) (258,205) Other institutions 441,955 663,494 (Allowance for leasing losses) (Note 6e) (6,277) (7,807)

Foreign onlendings 837 0 Foreign onlendings 837 0

Derivative financial instruments (Note 5b) Derivative financial instruments 103,212 77,615





Other receivables 18,068,692 17,238,460 Receivables on guarantees honored 0 0 Income receivable 43,944 34,023 Other liabilities 17,493,914 17,360,849 Specific credits (Note 8b) 279,411 271,921 Taxes and social security charges 29,904 26,256 Sundry (Note 8c) 17,878,501 17,074,642 Negotiation and intermediation of securities 3,271,227 3,351,345 (Allowance for other losses) (Notes 6e and 6f) (133,164) (142,126) Financial and development funds 1,788,178 1,705,344

Subordinated debts (Note 14e) 7,092,958 6,832,768 Sundry (Note 14d) 5,208,435 5,367,521

Deferred income 128,240 133,580Permanent assets 4,946,060 5,058,827 Deferred income 128,240 133,580

Investments 896,352 899,532 Stockholders' equity (Note 16) 14,932,899 14,105,696 Investments in subsidiaries and in associate companies (Note 19) Domestic 851,172 879,959 Capital 9,864,153 9,864,153 Abroad 0 0 Local residents 9,841,636 9,841,635 Other investments 229,713 229,326 Foreign residents 22,517 22,518 (Allowance for losses) (184,533) (209,753)

Property and equipment in use 2,886,026 3,052,353 Land and buildings in use 2,195,240 2,284,394 Capital reserves 4,763 4,769 Other property and equipment in use 3,872,778 3,935,690





(Accumulated depreciation) (3,181,992) (3,167,731) Revaluation reserves 25,701 25,717

Leased assets 619,437 552,646 Leased assets 748,923 676,035 Revenue reserves 4,073,673 4,211,057 (Accumulated depreciation) (129,486) (123,389)

Adjustments to market value –Securities and derivatives(Note 16e) (94,799) 42,585

Deferred charges 544,245 554,296 Organization and expansion costs 991,443 969,768 Retained earnings 964,609 0 (Accumulated amortization) (447,198) (415,472)

(Treasury stocks) (125,779) (125,779)

Total 245,685,361 239,014,143 Total 245,685,361 239,014,143




1.01.2005 to 3.31.2005 1.01.2005 to 3.31.2005 1.01.2004 to 3.31.2004 1.01.2004 to 3.31.2004

Revenue from financial intermediation 8,154,760 8,154,760 7,615,347 7,615,347Lending operations 4,546,158 4,546,158 4,198,229 4,198,229

Leasing operations 87,514 87,514 69,334 69,334Marketable securities 3,166,117 3,166,117 2,825,780 2,825,780

Derivative financial instruments (31,195) (31,195) (36,727) (36,727)Foreign exchange 0 0 251,537 251,537Compulsory investments 386,166 386,166 307,194 307,194

Expenses from financial intermediation (5,469,459) (5,469,459) (5,201,469) (5,201,469)Deposits and funds obtained in the open market (3,728,912) (3,728,912) (3,047,306) (3,047,306)Borrowings and onlendings (371,397) (371,397) (745,342) (745,342)

Leasing operations (58,288) (58,288) (49,871) (49,871)Net loss on exchange transaction (50,039) (50,039) 0 0Provision for credit losses (Note 6e) (1,260,823) (1,260,823) (1,358,950) (1,358,950)

Gross profit from financial transaction 2,685,301 2,685,301 2,413,878 2,413,878

Other operating income / expenses (1,181,979) (1,181,979) (1,402,248) (1,402,247)Services rendered (Note 14a) 1,766,749 1,766,749 1,552,537 1,522,537Personnel expenses (Note 14b) (1,803,866) (1,803,866) (1,574,466) (1,574,466)Other administrative expenses (Note 14c) (1,407,119) (1,407,119) (1,125,836) (1,125,836)Taxes (394,922) (394,922) (318,500) (318,500)

Equity in the earnings of associated and subsidiaries (Note 18) 113,545 113,545 116,423 116,423Other operating income (Note 14d) 1,046,357 1,046,357 517,793 517,793Other operating expenses (Note 14e)’ (502,723) (502,723) (570,199) (570,199)



1.01.2005 to 3.31.2005 1.01.2005 to 3.31.2005 1.01.2004 to 3.31.2004 1.01.2004 to 3.31.2004

Operating profit 1,503,322 1,503,322 1,011,630 1,011,630

Non-operating income (Note 14f) 97,819 97,819 15,463 15,463Income 0 0 29,994 29,994Expenses 0 0 (14,531) (14,531)

Income before taxes and profit sharing 1,601,141 1,601,141 1,027,093 1,027,093

Income tax and social contribution (Note 16) (558,802) (558,802) (370,497) (370,497) Income tax (413,511) (413,511) (269,715) (269,715) Social contribution (149,958) (149,958) (95,607) (95,607) Deferred tax credits 4,667 4,667 (5,175) (5,175)

Profit sharing (Note 21) (77,759) (77,759) (41,011) (41,011)

Net income 964,580 964,580 615,585 615,585

Number of shares 799,359,738 799,359,738 732,017,829 732,017,829Treasury sharesTotal shares used in the calculation of net income per shareNet income per share 1.20669 1.20669 0.84094 0.84094




Executive Board

PRESIDENTRossano Maranhão Pinto

VICE-PRESIDENTSAdézio de Almeida LimaAntônio Francisco de Lima NetoEdson Machado MonteiroJosé Luiz de Cerqueira CésarLuiz Eduardo Franco de AbreuLuiz Oswaldo Sant’Iago Moreira de SouzaRicardo Alves da Conceição

OfficersAldo Luiz MendesAugusto Braúna PinheiroDerci AlcântaraHenrique PizzolatoIzabela Campos Alcântara LemosJoão Carlos de MattosJosé Carlos SoaresJosé Gilberto JalorettoJosé Maria RabeloJuraci MasieroLuiz Carlos Silva de AzevedoLuiz Gustavo Braz LageManoel Gimenes RuyMiguel Oscar Viana PeixotoMurilo CastellanoPaulo César Simplício da SilvaPaulo Euclides BonzaniniPaulo Rogério CaffarelliRicardo José da Costa FloresWilliam Bezerra Cavalcanti Filho

Board of DirectorsBernard Appy (President)Rossano Maranhão Pinto (Vice-President)Carlos Augusto VidottoFrancisco Augusto da Costa e SilvaJoão Carlos FerrazJosé Carlos Rocha MirandaTarcísio José Massote de Godoy

Board of AuditorsMarcus Pereira Aucélio (President)Alon FeuerwerkerArtemio BertholiniRodrigo Pirajá WienskoskiVicente de Paulo Barros Pegoraro

Accounting

Gil Aurélio Garcia General AccountingContador CRC-DF 5.027/O-6 CPF 047.999.766-72

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