Slide sem t

1
3Q04 Earnings
2
highlights
R 235.6 bi
Total Assets - Largest Bank in Brazil
R 122.5 bi
Leadership in Assets Under Management
R 84.1 bi
Leadership in loan Portfolio
R 157.1 bi
Leadership in Total Funding
20.7 million
Customer Base
6.7 million
Customers in BBs Internet
38,242
Largest ATM network in Latin America
14,230
Largest network service in the country
15.2
2nd in ANBID Rank
3
result building
Spread Reduction Increase in Service
Fees Commercial Income Recovery Productivity
Ratios maintenance Growth of the Retail Credit
Portfolio Increase of Income Tax and Social
Contribution Expenses
4
solid results
Income Statement - with reallocations
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Gross Financial Margin
3,888
3,925
3,919
0.8
(0.2)
Provision for NPL
(747)
(903)
(856)
14.6
(5.3)
Net Financial Margin
3,141
3,022
3,063
(2.5)
1.4
Service Fees
1,412
1,643
1,717
21.5
4.5
Turnover Tax Expenses
(242)
(323)
(345)
42.6
6.7
Contribution Margin
4,312
4,341
4,435
2.9
2.2
Administrative Expenses
(2,931)
(3,093)
(3,129)
6.7
1.1
Commercial Income
1,381
1,248
1,307
(5.4)
4.7
Operating Income
1,213
1,003
1,256
3.5
25.1
Income before Profit Sh. Taxes Ext. Items
1,231
1,043
1,336
8.5
28.1
Income Tax and Social Contribution
(516)
(200)
(545)
5.7
173.1
Profit sharing
(50)
(140)
(67)
34.4
(52.1)
Recurrent Result
665
703
724
8.8
2.9
Extraordinary items
-

102
109
6.7
-
Net Income
665
805
833
25.2
3.4
EPS - R
0.91
1.10
1.14
25.2
3.4
ROE - (Annualized)
25.7
27.7
27.5
ROA - (Annualized)
1.3
1.4
1.4
5
new environment, new challenge
Quarterly Flow
3Q03
3Q04
Abs. Chg.
R million
Volume Assets Permanent ¹
209,072
227,099
18,027
Gross Financial Margin
3,888
3,919
31
Spread - ²
1.8597
1.7257
(0.1341)
Change G.F.M. (Distribution)
31
Gain with Volume
4,223
335
Loss with Spread
3,608
(280)
Loss with Volume and Spread
(24)
¹ Average Balance
² Gross Financial Margin / (Assets - Permanent)
Spread -
Analysis of volume and spread
3Q03 - 1.8597
(24)
(280)
3Q04 - 1.7257
335
3,888
Volume - R million
3Q04 - 227,099
3Q03 - 209,072
6
new environment, new challenge
Spread analysis -
Nominal Spread
Weighted Spread
3Q03
2Q04
3Q04
3Q03
2Q04
3Q04
Rate
1.86
1.79
1.73
1.86
1.79
1.73
Credit Operations
3.12
3.06
3.02
0.94
1.04
1.00
Individual
9.30
9.27
8.70
0.51
0.58
0.55
Corporate
2.02
1.99
1.96
0.27
0.30
0.30
Agribusiness
1.62
1.24
1.37
0.17
0.14
0.14
Other Operations
(0.53)
0.99
0.58
(0.01)
0.01
0.01
Funding
1.44
1.00
0.91
0.58
0.42
0.38
Other
1.15
1.38
1.38
0.34
0.34
0.34
Credit Operation Mix -
2Q04
3Q04
3Q03
3.6
3.5
3.5
18.2
18.5
19.2
34.3
33.1
31.7
43.9
44.8
45.6
Individual
Corporate
Agribusiness
Other Operations
7
margin growth guaranteed by business
diversification
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Gross Financial Margin
3,888
3,925
3,919
0.8
(0.2)
Provision for NPL
(747)
(903)
(856)
14.6
(5.3)
Net Financial Margin
3,141
3,022
3,063
(2.5)
1.4
Service Fees
1,412
1,643
1,717
21.5
4.5
Turnover Tax Expenses
(242)
(323)
(345)
42.6
6.7
Contribution Margin
4,312
4,341
4,435
2.9
2.2
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Service revenues
1,412
1,643
1,717
21.5
4.5
Customer Relationship Fees
407
510
514
26.3
0.8
Asset Management Fees
214
242
270
26.2
11.6
Credit Operations
142
161
161
13.1
(0.6)
Collection
130
157
158
21.7
0.8
Services to Related Companies
34
39
46
34.0
19.0
Third Party Revenue and Payments
104
104
112
8.1
8.1
Credit Cards
109
141
137
26.4
(2.9)
Others
273
289
318
16.8
10.3
8
customers loyalty and asset management leadership
Customer Base - in million
326
321
300
296
286
20.7
20.1
19.3
18.8
17.0
Asset Management - R billion
3Q03
4Q03
1Q04
2Q04
3Q04
Service Fees GFM / Customer - R ¹
¹ Customer base average of the last 4 quarters
20.2
19.9
20.0
18.9
19.0
122.5
116.9
116.0
102.7
91.8
3Q03
4Q03
1Q04
2Q04
3Q04
Market Share -
9
cost structure suitable with business generation
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Personnel Expenses
(1,681)
(1,675)
(1,744)
3.7
4.1
Salaries
(688)
(831)
(712)
3.5
(14.3)
Benefits
(163)
(191)
(182)
11.7
(4.7)
Social Charges
(278)
(312)
(300)
8.1
(3.7)
Training
(10)
(11)
(10)
(2.5)
(9.5)
Honorary of Directors and Councilmen
(1)

(2)

(3)

128.6
26.5
Provisions for Employees Expenses
(417)
(206)
(396)
(5.1)
92.3
Labor Suits
(125)
(122)
(141)
13.3
15.5
Human Resources - in thousands
2.9
2.8
2.8
2.6
2.4
98.6
98.3
98.4
93.1
92.6
92.3
90.5
90.8
85.1
82.8
81.8
81.9
82.6
80.6
79.7
10.8
10.6
10.7
10.2
10.5
3Q03
4Q03
1Q04
2Q04
3Q04
3Q03
4Q03
1Q04
2Q04
3Q04
Deposits Assets under Manag. / Employee - R
million
Total
Employees
Interns
10
cost structure suitable with business generation
Productivity Ratios
Assets per Work Force - R thousand
Work Force per Branch ¹
Customers per Work Force
¹ Branch, Advanced Service Post and Banking
Service Post
11
cost structure suitable with business generation
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Other Administrative Expenses
(1,221)
(1,381)
(1,344)
10.1
(2.7)
Telecommunications and Data Processing
(292)
(316)
(315)
8.0
(0.2)
Amortization and Depreciation
(122)
(138)
(131)
7.6
(4.9)
Security, Guard and Transport Services
(164)
(171)
(173)
5.2
1.5
Expenses with Premises and Equipment
(137)
(154)
(145)
5.8
(5.8)
Marketing and Public Relations
(102)
(104)
(132)
29.1
26.4
Expenses with Outsource Services
(96)
(121)
(127)
32.7
4.9
Other Administrative Expenses
(308)
(377)
(320)
4.2
(15.0)
Points of Service - in thousands
Customers per Point of Service
5.0
5.0
5.0
4.9
4.7
1,453
1,442
1,423
1,418
1,319
14.2
13.9
13.5
13.2
12.9
3Q03
4Q03
1Q04
2Q04
3Q04
3Q03
4Q03
1Q04
2Q04
3Q04
Credit Operations / Points of Service - R million
12
productivity equation completed by technology
Automatization
3Q04 -
3Q03 -
7.2
6.4
89.6
10.4
14.8
86.9
86.4
86.3
85.2
50.6
16.8
51.2
16.0
Electronic Transactions / Total Transactions -
15.0
11.6
ATM
Internet
Financial Manager.
Cashier
POS and Others
3Q03
4Q03
1Q04
2Q04
3Q04
56.8
56.5
56.2
56.4
55.6
3Q03
4Q03
1Q04
2Q04
3Q04
13
productivity consistent improvement
Business vs. Expenses - ()
186.9
185.2
183.7
151.4
140.7
135.2
132.1
130.3
124.3
110.3
94.6
87.7
54.8
48.5
46.2
41.0
36.6
37.5
1999
2000
2001
2002
2003
Jan/Sep
Service Revenues
Gross Financial Margin
Total
14
the bank that invests the most in Brazil
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Total Assets
215,134
227,374
235,599
9.5
3.6
Liquid Assets except Securities
29,340
30,316
35,228
20.1
16.2
Securities Portfolio
74,055
69,855
71,120
(4.0)
1.8
Credit Operations and Leasing
60,442
69,247
69,961
15.7
1.0
Tax Credit
9,897
8,971
8,505
(14.1)
(5.2)
Other Assets
41,400
48,986
50,785
22.7
3.7
Total Liabilities
215,134
227,374
235,599
9.5
3.6
Deposits
103,071
115,795
115,079
11.6
(0.6)
Other Liabilities
100,376
98,715
106,749
6.3
8.1
Shareholders Equity
11,687
12,864
13,771
17.8
7.1
Market Funding - R billion
Asset Composition -
157.1
152.9
149.5
29.4
28.9
30.2
29.9
26.6
20.5
49.6
49.4
46.5
49.7
42.0
7.7
6.4
5.5
37.1
3Q03
4Q03
1Q04
2Q04
3Q04
Interbank Deposits
Time Deposits
Money Market Borrowing
Total
Saving deposits
Demand Deposits
3Q03
2Q04
3Q04
15
liquidity preserved
Securities Portfolio
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Securities Portfolio
74,055


69,855


71,120


(4.0)
1.8
Available for trading
5,393


11,998


12,690


135.3
5.8
Available for sale
43,158


31,008


31,997


(25.9)
3.2
Held to maturity
25,109


25,146


25,945


3.3
3.2
Derivatives
396


1,702


488


23.5
(71.3)
Securities Portfolio Maturity -
3Q04
3Q03
27.0
39.6
60.4
73.0
1 to 3 years
3 to 5 years
Up to 1 year
1 to 5 years
5 to 10 years
Over 10 years
16
well balanced credit portfolio
3Q04 - Balance R 84.1 billion
Credit Portfolio
2.0
11.9
24.0
10.1
2Q04 - Balance R 83.1 billion
21.4
30.5
3Q03 - Balance R 72.6 billion
2.1
12.3
20.6
10.4
20.4
34.1
Retail
Commercial
Agribusiness
Foreign Trade
Abroad
Others
17
increase with responsibility
Credit Portfolio by Risk Level
Shares - 3Q04
8.2
10.6
4.1
2.1
91.8
89.4
97.9
95.9
Retail
Commercial
Agribusiness
Foreign Trade
BB
SFN ¹
AA-C
D-H
¹ Source Brazilian Central Bank
18
increase with responsibility
Credit Portfolio by Risk Level -
Credit Portfolio
Commercial and Foreign Trade
3Q04
3Q03
3Q04
3Q03
Retail
Agribusiness
3Q04
3Q03
3Q04
3Q03
19
delinquency under control
3Q03
4Q03
1Q04
2Q04
3Q04
R million
(A) Allowance for Loan Losses - Quarterly
(747)
(827)
(901)
(903)
(856)
(B) Allowance for Loan Losses - 12 Months
(3,101)
(3,072)
(3,337)
(3,378)
(3,487)
(C) Allowance for Loan Losses - 12 Months ¹
(3,101)
(3,072)
(3,600)
(3,786)
(3,975)
(D) Loan Portfolio
72,601
77,636
79,647
83,131
84,148
(E) Average Portfolio - 3 Months
70,484
76,550
78,823
82,283
82,942
(F) Average Portfolio - 12 Months
66,163
69,702
73,245
77,035
80,149
Expenses / Portfolio (A/E) -
1.1
1.1
1.1
1.1
1.0
Expenses / Portfolio (B/F) -
4.7
4.4
4.6
4.4
4.4
Expenses / Portfolio (C/F) -
4.7
4.4
4.9
4.9
5.0
¹ With Extraordinary Items
4.7
4.6
4.4
4.4
4.4
2.0
1.8
1.8
1.7
1.8
1.1
1.1
1.1
1.1
1.0
3Q04
3Q03
4Q03
1Q04
2Q04
Expenses / Portfolio - annualized ¹
3Q03
4Q03
1Q04
2Q04
3Q04
Expenses / Portfolio (A/E) - ²
Expenses / Portfolio (C/F) - ³
Overdue Loans / Credit Portfolio -
¹ Expenses and average portfolio of the last 12
months ² Expenses and average portfolio of the
quarter ³ Effective losses and average portfolio
of the last 12 months
Overdue Loans 15 days / Credit Portfolio
Overdue Loans 60 days / Credit Portfolio
20
increase of provisions for credit risk
Breakdown of Allowance Balance - R million
5,374
5,102
4,693
4,195
4,044
999
973
778
558
495
4,375
4,128
3,915
3,637
3,549
3Q03
4Q03
4Q04
2Q04
3Q04
Allowance Required
Additional Allowance
Total Allowance
21
ability to increase businesses with customers
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R million
Risk weighted Assets
109,121


119,966


121,391


11.2


1.2


Required Shareholders Equity
12,705


13,929


14,201


11.8


2.0


Required on weighted assets
12,003


13,196


13,353


11.2


1.2


Required on swap
173


152


223


29.0


47.3


Required on exchange exp.
-


-


-


-


-


Required on Interest on Equity
529


581


625


18.1


7.6


Referential Shareholders Equity
16,520


18,299


20,272


22.7


10.8


Tier I
11,663


12,702


13,609


16.7


7.1


Tier II
4,858


5,597


6,663


37.2


19.0


Surplus shareholders equity
3,815


4,371


6,070


59.1


38.9


Margin to leverage
34,680


39,733


55,185


59.1


38.9


BIS Ratio -
14.3


14.5


15.7


Tier I
10.1


10.1


10.5


Tier II
4.2


4.4


5.2


Capital Adequacy -
15.7
14.5
14.3
14.3
13.7
5.2
4.4
4.4
4.2
4.0
11.0
Tier I
10.5
10.1
9.9
10.1
9.7
Tier II
3Q03
4Q03
1Q04
2Q04
3Q04
22
ability to increase businesses with customers
Referential Shareholders Equity
Required Shareholders' Equity
Efect in Basel Ratio
Efect in Leverage
R million
Net Income
833
-
0.7
7,569
Change of Adj. to market value - securities and
derivatives
34
-
0.0
307
Increase of Subordinated Debt
1,066
-
0.8
9,689
Other Changes in Referential Shareholders' Equity
40
-
0.0
365
Increase of Shareholders' Equity Requirement on
Risk Weight Assets
-
157
(0.2)
(1,425)
Increase of Referential Shareholders' Equity
Requirement on Swap
-
72
(0.1)
(653)
Increase of Ref. Shareholders' Equity Req. on
Interest Rate Exposure
-
44
0.0
(400)
Quarterly Changes
1,972
273
1.3
15,452
14.5
Balance - Jun/04
18,299
13,929
39,733
Balance - Sep/04
20,272
14,201
15.7
55,185
1,972
273
1.3
15,452
Net Quarterly Changes
23
Solution in insurance and pension plan
Quarterly Flow
Change
3Q03
2Q04
3Q04
/3Q03
/2Q04
R thousand
Equity Income
57,436
61,604
64,144
11.7
4.1
Service Fees - Commission
80,898
83,696
83,504
3.2
(0.2)
Service Fees Asset Management
6,747
14,580
15,221
125.6
4.4
Insurance Added Value
145,082
159,880
162,868
12.3
1.9
Combined Ratio Evolution
Administrative Expenses / Earned Premiums -
Expenses with Market / Earned Premiums -
Retained claims / Earned Premiums -
24
Market recognition
Capitalization and Income
3Q03
4Q03
1Q04
2Q04
3Q04
Market Capitalization - R million
11,712
17,568
17,041
16,470
18,447
Free Float Capitalization - R million
848
1,272
1,234
1,192
1,339
Book Value per Share - R
15.97
16.63
17.33
17.57
18.81
Net Income per Share - R
0.91
0.87
0.84
1.10
1.14
7.38
6.77
6.38
6.05
5.00
1.44
1.34
1.34
1.28
1.00
3Q03
4Q03
1Q04
2Q04
3Q04
Price / Income 12 months
Price / Book Value
25
Investor Relations Division SBS - Quadra 1 -
Bloco C - Ed. Sede III - 17 floor 70073-901 -
Brasília (DF) Phone [phone] Fax 55
(61) 310.3735 www.bb.com.br ri_at_bb.com.br Disclai
mer - This presentation contains references and
statements, planned synergies, increasing
estimates, projections of results and future
strategy for Banco do Brasil, its Associated and
Affiliated Companies and Subsidiaries. Although
these references and statements reflect the
managements belief, it also involves imprecision
and high difficult risks to be foreseen,
consequently, it may conduct to a different
result than the one anticipated here. These
expectations are highly depended on market
conditions, on the Brazilian economic
performance, on the sector and the international
market. Banco do Brasil is not responsible for
bringing up to date any estimate in this
presentation.