Institutional Presentation 1Q16

Transcription

1 Institutional Presentation 1Q16

2 Disclaimer This presentation may include references and statements, planned synergies, 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 management s belief, they also involve estimates and unforeseen risks. Consequently, results may differ from those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market conditions. Banco do Brasil is not responsible for updating any estimate in this presentation.

3 Agenda 1 Company Profile 2 Banking Industry 3 Earnings Highlights 4 Macroeconomic Information

4 1 Company Profile

5 5 Founded in %1 controlled by the Federal Government 1st company listed on the stock exchange in Brazil Largest Bank in Latin America in total assets Acess to a broad spectrum of clients (1) As of Mar/2016.

6 6 Large, diversified and stable funding base Business diversification including: Banking Services Insurance Capital Market Asset Management Means of Payment International Franchise

7 Investment Highlights 7 1. Market Leadership 2. Solid Financial Performance 3. Focus on Services 4. Lower deliquency of the Brazilian Banking Industry 5. Stable and Diversified Funding 200(+) years of solid performance

8 8 Timeline / Governance 2014 The Board of Directors of BB approved the migration of its program of American Depositary Receipt-ADR from level I to level II % Tag Along clause 2010 Follow on (primary shares) st company listed on the stock exchange in Brazil 2005 BB Shares enter the IBRX-50 portfolio BB Shares enter the ISE portfolio BB Shares enter the IBrX portfolio BB Shares enter Dow Jones Sustainability Index (DJSI) of NY stock exchange 2006 Banco do Brasil joined Novo Mercado (BOVESPA) 2003 BB Shares enter the ITAG portfolio 1996 Capitalization and Restructuring Plan Follow on (secondary shares) Conversion of preferred shares to commom shares Private offering of subscription bonus 2009 ADR 1 Launching BB Seguridade IPO

9 Ownership Structure 9 Free Float 42.1% as of Mar/2016 Free Float Breakdown (%) Other 22.2% Treasury Shares 2.5% Foreign Investors 19.9% National Treasury 55.3% Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Foreign Investors Other

10 Global Presence 10 Banco do Brasil in the world Branches Sub-branches Representative Offices Subsidiaries and affiliates Shared Services Units Presence in 24 countries with 38 points of service

11 Presence in Brazil Our more than 63 million clients count on more than 67 thousand points of service, present in 99.8% of the Brazilian municipalities and an increasingly digital Bank. 11 NORTH 27.9% NORTHEAST 31.2% Structural data (Mar/16) Market Share 23.8% (Number of branches) Points of services 1 17,462 Branches 5,428 Clients 63,890 mil Employees 109,864 MIDWEST 26.4% SOUTH 24.8% SOUTHEAST 20.4% Brazil Total Service Network Own Service Network Branches MaisBB Network¹ Shared Service Network 2 Mar/16 17,462 5,428 14,313 35,285 Total 67,060 (1) Own Service Network (1) Banking Agents and Postal Bank branches. (2) Shared Service Network: lotteries (CEF), Banco 24h e ATM (BRB+CEF).

12 Innovation 12 Digital Experience 1 st most common APP in brazilian s home screen among all brazilian companies and 6 th overall ranking:¹ Joinville Branch Specialized Offices 16 Very Small and Small Companies branches in Brazil. Expansion project to cover all the country. 2016: Prevision of opening 37 new branches. 1. WhatsApp 2. Facebook 3. Instagram 4. Facebook Messenger 5. Youtube 6. Banco do Brasil 7. Twitter 8. Gmail 9. Chrome 10. Waze BB Estilo Digital 104 BB Estilo Digital branches². More than 500 thousand benefited clients. More than 200 Branches by the end of million benefited clients by the end of Portal Solução de Dívidas R$ 2,2 billion agreements signed since launch More than 218 thousand customers (1) Source: Mobile Time/Opinion Box Research April/2016. (2) As of May/

13 13 Innovation 13 Ourocard APP Cards Block/Unblock function Expenses in Timeline format Function New at the Market Allows questioning unrecognized purchases Tap and pay payment agility Authorization for abroad usage Automated Service Channels - Transactions Ourocard-e 100% Digital Card 212 thousand virtual cards, 118% growth compared to 1Q15 Almost 1 million transactions since launch in Aug/14 R$160 million total turnover on the last 12 months BB Digital Mobile (million transactions) Internet 28.5% Mobile 34.3% ATM¹ 19.4% Mar/16 In Branches 3.9% Others 1Q % +82.0% 1,287 1Q16 2,343 (1) Owned by BB.

14 Customer Segmentation 14 Companies Individuals Industry Services > R$ 1.5bn > R$ 2bn Large Corporate Private > R$ 2mm > R$ 400mm < R$ 1.5bn > R$ 120mm < R$ 400mm > R$ 600mm < R$ 2bn > R$ 200mm < R$ 600mm Corporate Empresarial Upper Middle Estilo / Estilo Digital > R$ 8k > R$ 25mm < R$ 120mm > R$ 25mm < R$ 200mm Empresarial Middle Personalizado / Exclusivo¹ > R$ 4k < R$ 8k > R$ 5mm < R$ 25mm Empresa > R$ 1mm < R$ 5mm Pequena Empresa Varejo > R$ 1.5k < R$ 4k < R$ 1mm Microempresa Mercado Emergente < R$ 1.5k (1) Digital service only.

15 Assets and Market Share 15 R$ Billion * 1, , , , , , % Loans 32.4% Available Funds, Short-Term Interbank Investments, Interbank and Intrabank Accounts Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Assets Market Share¹ (%) Share % - Mar/16 8.7% 13.3% 2.2% Securities and Financial Derivatives Other Permanent Assets (¹) Source: Central Bank of Brazil (*) Dec/2015

16 Loan Portfolio Broad Concept¹ R$ Billion 9.5% % 2.3% on Mar/ % % 22.5% % 46.4% % Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Corporates Individuals Agribusiness Abroad Market Share² - % (1) It includes private securities and guarantees provided. (2) It considers the classified loan portfolio.

17 17 Total Loan Portfolio - Risk Level 17 R$ Million Mar/15 Dec/15 Mar/16 Balance Provision Share % Balance Provision Share % Balance Provision Share % AA 397, , , A 96, , , B 121,121 1, ,925 1, ,445 1, C 28, , , D 4, ,033 1, , E 11,173 3, ,797 3, ,353 3, F 4,217 2, ,768 2, ,352 2, G 2,791 1, ,806 2, ,133 4, H 15,011 15, ,919 17, ,570 19, Total 682,188 25, ,849 30, ,027 34, AA-C 644,013 2, ,526 2, ,315 2, D-H 38,175 22, ,323 27, ,711 31,

18 Loans to Individuals¹ 18 R$ Million Mar/15 Dec/15 Mar/16 Payroll 59,863 62,502 62,589 Mortgage 30,386 37,169 38, % 75.9% 75.7% Salary Loans 17,631 18,610 19,161 Auto Loans 9,979 8,404 7,844 Credit Cards 21,384 23,625 22,730 Consumer Finance 5,976 7,022 7,607 Overdraft 2,550 2,272 2,830 Microcredit 1, Other 4,764 6,522 7,140 TOTAL 153, , ,054 (1) It considers the organic loan portfolio.

19 Growth in lower risk lines¹ 19 Mortgages Payroll² R$ Billion % Mar/15 Dec/15 Mar/16 Mortgages with Companies Mortgages with Individuals Mortgage with Individuals NPL +90 days (%) % Mar/15 Dec/15 Mar/16 INSS Retirees and Pensioners Private Sector Employees Civil Servants Payroll NPL +90 days (%)¹ Salary Loans Auto Loans² % Auto Loans +8.7% Total Auto Loans NPL +90 days (%) Salary Loans NPL +90 days (%) Mar/15 Dec/15 Mar/16 Mar/15 Dec/15 Mar/16 (1) Classified Loan Portfolio (2) Organic Loan Portfolio

20 Relationship 20 Individuals Portfolio¹ Individuals Portfolio Profile² Time of Relationship 4.9% 4.1% 3.9% 7.8% 8.1% 8.0% 21.0% 20.4% 19.9% Direct Consumer Credit + Auto Loans 7.3% 7.2% 7.7% 14.6% 13.9% 13.8% 66.4% 67.3% 68.2% 78.1% 78.9% 78.6% Mar/15 Dec/15 Mar/16 More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years Mar/15 Dec/15 Mar/16 Civil Servants Private Sector Employees INSS Retirees and Pensioners (1) BB Classified Loan Portfolio. (2) BB Organic Loan Portfolio.

21 Loans to Companies Broad Concept¹ % R$ Billion Mar/15 Dec/15 Mar/16 Working Capital² Investments + Private Securities Guarantees Trade Finance³ Other Corporate Portfolio by Size % on Mar/15 2.4% on Mar/15 Mar/15 Dec/15 Mar/16 Middle Market, Corporates and Government Very Small and Small Companies⁴ (1) It includes private securities and guarantees provided. (2) It includes Working Capital, Receivables, Credit Card and Overdraft Account. (3) It Includes FEC/ACE and BNDES Exim. (4) Companies with annual revenues up to R$ 25 million.

22 Very Small and Small Companies Portfolio¹ 22 Relationship Time of Relationship Amount Distribution by Time of Company Foundation Very Small and Small Companies Portfolio (R$ bn) 5.5% 3.5% 2.7% 22.0% 20.7% 19.5% 33.3% 34.5% 33.0% Total Amount R$91.1bn % 42.5% 43.4% 0.9 Mar/15 Dec/15 Mar/16 Up to 2 years From 2 to 5 years From 5 to 10 years From 10 to 20 years More than 20 years More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years (1) BB Classified Loan Portfolio - Companies with annual revenues up to R$ 25 million.

23 Carteira Companies PJ por Portfolio setor by Macro-sector 23 R$ Million Mar/15 Share % Dec/15 Share % Mar/16 Share % Oil and Gas 44, % 47, % 45, % Mining and Metallurgy 43, % 43, % 42, % Government 34, % 42, % 39, % Eletricity 39, % 40, % 39, % Foodstuffs of Vegetable Origin 36, % 37, % 33, % Transportation 29, % 33, % 32, % Automotive 26, % 28, % 26, % Services 24, % 24, % 23, % Real Estate Agents 20, % 22, % 21, % Retail Trade 20, % 19, % 18, % Foodstuffs of Animal Origin 13, % 15, % 17, % Financials Institutions 14, % 17, % 16, % Specific Activities of Construction 15, % 15, % 14, % Agricultural Inputs 11, % 11, % 11, % Textile and Clothing 12, % 11, % 11, % Pulp and Paper 11, % 10, % 9, % Electrical and Electronic Goods 10, % 9, % 8, % Chemicals 9, % 9, % 8, % Heavy Construction 9, % 8, % 7, % Telecommunication 9, % 7, % 7, % Wholesale and Various Industries 7, % 6, % 7, % Woodworking and Furniture 6, % 6, % 6, % Leather and Shoes 3, % 3, % 2, % Beverages 1, % 1, % 1, % Other Activities % % % Total 457, % 476, % 452, % Included Companies and Agro Companies Portfolio.

24 24 The Agribusiness Bank in Brazil Agribusiness Portfolio R$ Billion 9.8% growth in the past 12 months 61.2% of the total Rural Credit is at Banco do Brasil 23.1% of Banco do Brasil Credit Portfolio* *It considers Agribusiness Broad Concept Portfolio

25 Agribusiness 25 Agribusiness Loan Portfolio by Costumer Type¹ Use of Mitigators (Working Capital for Input Purchase) Harvest 15/16 (Mar/16) +9.8% Not Insured 35.2% Insured 64.8% Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Individuals Companies Market Share - % 1 st 61.2 % Market Share² Total disbursement in15/16 harvest R$ 59.8 billion (1) It includes Rural Product Bills and guarantees provided. (2) Source: Central Bank of Brazil Mar/16.

26 26 The Brazilian Foreign Trade Bank FCE/ACE ,185 Operating abroad for over 50 years, Banco do Brasil has supported Brazil's relations with its trading partners, being a reference point for entrepreneurs, investors, economic agents and foreign governments that maintain or wish to maintain investments in Brazil. 2,042 1,865 1Q15 4Q15 Contracted Amount (US$ million) 1Q16 Market share (%)

27 Sources 27 R$ Thousand Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Commercial Funding¹ 619, , , , , , ,611 Domestic Onlending 86,061 89,157 90,686 90,032 90,543 90,065 88,082 Financial and Development Funds 9,569 10,840 12,265 12,404 14,677 15,003 14,781 Subordinated Debt 47,646 49,413 49,664 50,764 54,256 54,018 51,903 Capital Eligible Debt³ 27,908 29,351 32,876 32,441 37,926 35,393 33,728 Commercial Papers ⁴ 2,475 2,549 2,622 2, ,117 2,309 HCDI domestic Foreign Borrowing² 59,487 61,654 71,829 72,547 94,590 82,306 65,668 Compulsory Deposits (78,714) (63,224) (56,613) (57,168) (60,362) (60,811) (62,613) Total 774, , , , , , ,489 (1) Includes part of the balances of Private Securities (Note 17c). (2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits. (3) From 3Q14 on, includes Capital Eligible Debt reallocated to Core Capital, as authorized by the Central Bank by Official Letter 15006/2014-BCB/DEORF/DIFIN. (4) Includes Letters of Credit and Debentures.

28 Sources 28 Commercial Funding R$ Thousand Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Demand Deposits 69,398 74,224 73,705 64,755 66,063 66,550 62,631 Savings Deposits 148, , , , , , ,919 Interbank Deposits 27,638 30,354 36,736 33,337 41,465 41,483 36,885 Time Deposits 110,622 99,889 93,304 82,126 89,068 90,890 88,433 Judicial Deposits 110, , , , , , ,140 Agribusiness Letters of Credit 104, , , , , , ,420 Mortgage Bonds 7,772 14,156 19,067 18,526 18,474 18,121 18,681 Repurchase Agreement with Private Sec.¹ 41,184 48,256 37,848 43,965 44,678 52,142 30,471 Total 619, , , , , , ,611 Foreign² R$ Thousand Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Foreign Securities 28,886 28,560 31,175 34,803 44,103 33,500 22,885 Foreign Borrowing 18,735 20,516 25,133 23,074 31,236 29,617 25,178 Foreign Onlending HCDI Abroad 4,717 4,716 6,158 5,485 7,641 7,611 7,205 Subordinated Debt Abroad 7,149 7,862 9,361 9,186 11,600 11,569 10,400 Total² 59,487 61,654 71,829 72,547 94,590 82,306 65,668 (1) Includes part of the balances of Private Securities (Note 17c). (2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits.

29 Emissões Foreign Borrowing no Exterior 30 Bonds Issued Abroad Issue Date Volume (US$ million) Currency Term in Years Maturity Coupon (%) Structure Rating ¹ (S&P / Moody s/fitch) 07/18/ BRL 10 07/18/ Senior SR / Ba2 / SR 04/29/ USD 10 04/29/ Securitization BBB+ / Ba1 / SR 10/20/2009 1,500 USD Perpetual Perpetual Perpetual SR / B2 / SR 01/22/ USD 10 01/22/ Senior BB / Ba2 / BB+ 10/05/ USD 10 10/05/ Tier II Subordinated SR / Ba3 / SR 05/26/2011 1,500 USD 10 05/26/ Tier II Subordinated SR / Ba3 / SR 11/23/ USD 5 11/23/ Senior SR / Ba2 / SR 01/20/2012 1,000 USD Perpetual Perpetual Perpetual B- / SR / SR 03/05/ USD Perpetual Perpetual Perpetual B- / SR / SR 06/19/ USD 10 06/19/ Tier II Subordinated B / Ba3 / SR 10/10/2012 1,925 USD 10 10/10/ Senior BB / Ba2 / BB+ 01/31/2013 2,000 USD Perpetual Perpetual Perpetual B- / SR / SR 07/25/ EUR 5 07/25/ Senior BB / Ba2 /BB+ 12/20/ CHF /20/ Senior BB / Ba2 / BB+ 03/26/ EUR 5 03/26/ Senior BB / Ba2 /BB+ 06/18/2014 2,500 USD Perpetual Perpetual Perpetual B- / B2 / SR (1) Ratings were revised in 03/31/2016.

30 Uses 31 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Available Funds Net Loan Portfolio (a) = (b) + (c) + (d) Classified Loan Portfolio (b) Private Securities (c) Allowance for Loan Losses (d) Adjusted Net Loan Portfolio (a) - (e)* Domestic Onlending Loans (e) Uses Indicators (%) Adjusted Net Loan Portfolio* / Commercial Funding** Commercial Funding** 107, , , , , , , , , , , , , , , , , , , , ,027 47,082 46,524 46,973 45,078 44,695 48,645 47,625 (23,757) (25,295) (26,862) (27,575) (31,926) (33,577) (35,398) 551, , , , , , , , , , , , , , , , , , , , , , , , , , , ,611

31 Compulsório Compulsory and e Direcionamento Reserve Requirements 32 Compulsory/Reserve Requirements (%) Demand Deposits 1Q15 2Q15 3Q15 4Q15 1Q16 Reserve Requirement Additional Reserve Requirement Marked to Rural Marked to Micro Finance Unmarked Savings Deposits Rural Reserve Requirement Additional Reserve Requirement Marked Unmarked Mortgage Reserve Requirement Additional Reserve Requirement Marked Unmarked Time Deposits Reserve Requirement Additional Reserve Requirement Unmarked

32 Means of Payment Banco CBSS % 66.64% Serviços Promotora 100% 100% BB ELO Cartões 49.99% 100% 100% 100% 30% 70% \ 30% 70% 28.65% 40.95% 100% Banco do Brasil BB Banco de Investimentos 50,1% 100% 100% 100% BB Adm Cartões

33 Leadership 34 Assets (R$ billion Mar/16) Loan Portfolio (R$ billion Mar/16) Deposits (R$ billion Mar/16) Assets Under Managmt.¹ (R$ billion Mar/16) 1, , % 23.4% 1 st Market Share¹ 1 st Market Share¹ 1 st Market Share¹ 1 st 1, % % Market Share¹ BB Bank A Bank B BB Bank A Bank B BB Bank A Bank B BB Bank A Bank B (1) Source: Central Bank of Brazil - Market Share as of Dec/2015. (1) Source: Central Bank of Brazil - Market Share as of Mar/16 for domestic loan portfolio. (1) Source: Central Bank of Brazil - Market Share as of Dec/2015. (1) It does not include Banco Votorantim (2) Source: Anbima - Market Share as of Mar/16.

34 Leadership 35 Insurance - Collection Cards Business 1Q16 Total turnover Rural 1 st Debit 1 st Pension Plan 1 st Credit 2 nd Premium Bonds 1 st Life 2 nd Vehicle 2 nd Source: Susep Mar/16 Source: Abecs Mar/16

35 Leadership in Foreign Trade 36 Foreign Exchange Export Contracts 1 st 1 st Foreign Exchange Import Contracts 24.7% 16.0% 19.3% 9.8% 8.1% 7.6% 14.0% 13.9% 11.5% 11.1% BB Bank 1 Bank 2 Bank 3 Bank 4 BB Bank 1 Bank 2 Bank 3 Bank 4 Source: Central Bank of Brazil YTD Mar/16

36 Awards and Achievements 37

37 Corporate Governance 38 Decisions at any level of the Company are made collectively. With the purpose of involving all the executives in the definition of strategies and approval of proposals for the different businesses of Banco do Brasil. Asset and Liabilities Management and Liquidity Committee 3 Higher Committees Global Risk Committee Investor Relations Executive Committee 14 Executive Committees Objective Mitigate risks, share visions, aggregate value and quality to the decision process and disseminate knowledge. Credit Risk Executive Committee Capital Management Executive Committee Credit Limit Executive Committee Products and Services Executive Committee Ethics Executive Committee Market and Liquidity Risk Executive Committee Related Companies Governance Executive Committee Internal Controls and Operational Risk Executive Commitee Prevention of Financial,Foreign Exchange Illicit and Information Security Executive Committee The Only Brazilian Bank listed since 2006, in this BM&F Bovespa segment, destined to companies that voluntarily adopt the best practices for corporate governance. Administrative and Operational Executive Committee Human Resources Executive Committee Credit Transactions Committee Credit Transactions Executive Committee Disciplinary Review Executive Committee 3 Other Committees Human Resources Committee Information Technology Executive Committee Asset & Liability Management and Liquidity Executive Committee Information Technology Committee

38 Banco do Brasil: Ratings 39 Standard & Poor's Q16 Long-Term - Local Currency BBB BBB BBB- BB+ BB Long-Term - Foreign Currency BBB BBB BBB- BB+ BB Moody's Financial strength C- C- C- - - Long-Term Debt - Foreign Currency Baa1 Baa2 Baa2 Baa3 Ba2 Long-Term Deposits - Foreign Currency Baa2 Baa2 Baa2 Baa3 Ba3 Long-Term Deposits - Local Currency A3 Baa2 Baa2 Baa3 Ba2 Fitch Ratings Long-Term - Local Currency BBB BBB BBB BB+ BB Long-Term - Foreign Currency BBB BBB BBB BB+ BB * Ratings were revised in May/2016.

39 2 Banking Industry

40 Concentration - % 41 Assets Loans * * 5 Largest 10 Largest 20 Largest 5 Largest 10 Largest 20 Largest Source: Central Bank of Brazil *Dec/15

41 Concentration - % 42 Deposits Assets under Management Credit Card Revenue** * 5 Largest 10 Largest 20 Largest Q16 5 Largest 10 Largest 3 largest 4 largest Source: Central Bank of Brazil *Dec/15 ** Source: CardMonitor Research as of 4Q15 per acquiring.

42 3 Earnings Highlights

43 Highlights 1Q16 / 1Q15 44 Net Interest Income Grew by 13.7% Pre-Tax and Pre-Provision Earnings Increased by 15.6%¹ Fee Income 2.5% Growth. Excluding income migrations to Cateno, growth would be 10.8%². Administrative Expenses Under control (2.5% growth) Cost to income ratio Ended the quarter at 40.8% (1) Pre-Tax and Pre-Provision Earnings accumulated in four quarters. It does not consider a portion of estimated interchange revenues that migrated to Cateno from Mar/15. (2) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

44 Net Income 45 ROE 12.0% ROE 5.6% ROE 10.5% R$ Million 2, ,073 2, ,286 (2,155) (424) 672 4Q15 Adj. Net Income NII ALL Fee Income Administrative Expenses Other 1Q16 Adj. Net Income One-Off Items 1Q16 Net Income Excluding the ALL impact on a specific case 2,648 9 (134) (424) 672 (438) ROE 10.4% 2, ,359 4Q15 Adj. Net Income NII ALL Fee Income Administrative Expenses Other 1Q16 Adj. Net Income¹ One-Off Items 1Q16 Net Income (1) It excludes the Additional ALL reversion and the Tax Effect and Statutory Profit Sharing on One-Off Items.

45 Pre-Tax and Pre-Provision Earnings 46 R$ Billion Annual change +11.7% Adjusted annual change¹ +15.6% Q15 1Q16 1Q15 1Q16 (1) Pre-Tax and Pre-Provision Earnings accumulated in four quarters. It does not consider a portion of estimated interchange revenues that migrated to Cateno from Mar/15.

46 Market Ratios 47 Earnings per Share (R$) Dividend Yield 1 (%) Q15 2Q15 3Q15 4Q15 1Q16 Earnings per Share Adjusted Earnings per Share 1Q15 2Q15 3Q15 4Q15 1Q16 (1) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica. Price/Earnings 12 months Price/Book Value Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Source: Economatica. Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Source: Economatica.

47 Delinquency Ratios¹ and Average Risk 48 Average Risk² (%) NPL Ratio +90 days (%) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Banking Industry Banco do Brasil Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Banking Industry Banco do Brasil NPL Ratio +90 days (%) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Individuals Agribusiness Companies NPL +15 Days (%) Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Individuals Companies Agribusiness (1) Classified Loan Portfolio. (2) Required Provision / BB Classified Loan Portfolio.

48 Vintages 49 Annual Vintage Individuals Loan Portfolio Annual Vintage Very Small and Small Companies Loan Portfolio

49 NPL Formation New NPL¹, Write Off and NPL Formation Rate New NPL (R$ billion) Write Off (R$ billion) Quarterly ALL/New NPL (%) New NPL / Loan Portfolio³ (%) Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio² New NPL with Past due Credits Portfolio (R$ million) Write Off (R$ million) Quarterly ALL/New NPL (%) New NPL with Past due Credits Portfolio / Loan Portfolio³ (%) Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 (1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) Estimated flow of the Renegotiated loan portfolio contracts of past due for over 90days operations. (3) It considers the Classified Loan Portfolio of the previous quarter.

50 Allowance for Loan Losses 51 Coverage Ratios (%) and ALL Balance (R$ million)¹ ,926 33,577 35,398 1,209 3,705 3,228 25,295 26,862 27,575 1,405 1,380 1,405 23,889 25,482 26,170 28,220 30,349 34,189 Additional (Complementary) Provision Required Allowance - R$ million Banking Industry + 90 days Banco do Brasil + 90 days Banco do Brasil + 15 days Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 ALL by Segment² 4, ,291 5,654 5, , , ,221 2,832 3,142 3,810 3,832 6, ,326 4,319 9,145 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 1,041 1,408 4,754 1,942 Agribusiness Individuals Companies Abroad (1) BB Classified Portfolio. (2) Quarterly ALL. It does not consider additional provision.

51 Renegotiated Overdue Loan Portfolio¹ 1Q15 4Q15 1Q16 Renegotiated Overdue Loan Portfolio - Changes Initial Balance 9,030 15,520 19,653 Contracts 1,767 6,015 3,611 Payments received minus capitalized interest (99) (1,037) (449) Write Off (514) (845) (777) Final Balance 10,183 19,653 22,038 Allowance for Loan Losses Balance 6,111 8,585 9,495 NPL + 90 days 1,588 3,171 4,303 Indicators - % ALL for Loan Losses / Loan Portfolio NPL + 90 days / Loan Portfolio ALL for Loan Losses Balance/NPL + 90 days Credits Renegotiated/Classified Loan Portfolio (1) Table according Explanatory Notes 10.k. 52 R$ Million New NPL¹, Write Off and NPL Formation Rate New NPL - Renegotiated Overdue Loan Portolio (R$ billion) Write Off (R$ billion) New NPL/Past due Renegotiated Portfolio² ALL Balance/NPL + 90 days Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 (1) Quarterly change in the balance of past-due for over 90 days operations + current quarter write off. (2) It considers the classified loan portfolio of the previous quarter.

52 Renegotiated Loan Portfolio 53 BB x Peers¹ R$ Million ,064 6,982 6,616 6, ,414 7,464 8,112 8, ,495 8,563 Peers Average - ALL Balance BB - ALL Balance Peers Average - Renegotiated Portfolio NPL +90 days (%) BB - Renegotiated Portfolio NPL +90 days (%) Mar/15 Jun/15 Sep/15 Dec/15 Mar/ Renegotiated Loan Portfolio 1Q Renegotiated Loan Portfolio 22,038 17,893 Renegotiated Loan Portfolio/Classified Loan Portfolio (%) BB Peers Average¹ (1) It corresponds to two large Brazilian private banks.

53 Allowance for Loan Losses: IFRS x BRGAAP 54 R$ million 33,577 25,295 27,749 10,579 17,411 13,577 19,133 15,653 21,565 18, IFRS ALL Balance BRGAAP ALL Balance¹ (1) BB Conglomerate from 2011 to 2013 and it does not consider BV. In 2014 and 2015, BB Multiple Bank.

54 Allowance for Loan Losses (ALL) and Loan Portfolio 55 R$ Billion Allowance for Loan Losses (12 months) / Loan Portfolio , , , , ,218 Allowance for Loan Losses (Quarterly) / Loan Portfolio , , , , ,697 19,020 20,036 21,571 23,671 27,161 1Q15 2Q15 3Q15 4Q15 1Q16 Loan Portfolio¹ Allowance for Loan Losses ALL / Loan Portfolio (%)² 5,654 5,191 5,835 6,991 9,145 1Q15 2Q15 3Q15 4Q15 1Q16 Loan Portfolio³ Allowance for Loan Losses ALL / Loan Portfolio (%)⁴ Classified Loan Portfolio Growth by Risk Level 682,188 7,303 1,320 1,180 1,135 4,341 4, , % in 12 months Mar/15 AA-C D E F G H Mar/16 (1) Average classified loan portfolio 12 months; (2) ALL accumulated in 12 months / 12 months Average Loan Portfolio; (3) 3 months Average Loan Portfolio; (4) Quarterly ALL / 3 months Average Loan Portfolio.

55 Write-off Percentage on the Classified Loan Portfolio¹ Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Banco do Brasil Peers Average² (1) Write-offs to losses accumulated in 12 months / average balance of the classified credit portfolio in 12 months. (2) It corresponds to the three largest Brazilian private banks.

56 ALL Balance Current and Past Due Operations 57 R$ Billion Q15 2Q15 3Q15 4Q15 1Q16 Additional (Complementary) Provision Current (Generic) Past Due (Specific) Total

57 Net Interest Income 58 R$ million 1Q15 4Q15 1Q16 Chg. % On 1Q15 Chg. % On 4Q15 Net Interest Income 12,562 14,267 14, Loan Operations Income 21,839 25,332 25, Funding Expenses (9,310) (11,305) (10,918) 17.3 (3.4) Institutional Funding Costs¹ (3,319) (3,830) (3,733) 12.5 (2.5) Recovery of Write-offs Loans 840 1, (30.9) Treasury Income² 2,513 2,824 2, (7.4) Global Spread (%)³ Spread by Portfolio (%) ³ Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 NIM Risk Adjusted NIM Individuals NIM Loan Operations NIM⁴ Companies NIM⁵ Agribusiness NIM (1) It Includes senior debt, subordinated debt and hybrid capital instrument (HCDI). (2) It included interest income, profitable compulsory deposits income, tax hedge, derivatives and other financial instruments that compensate the exchange rate variation in result. (3) Annualized data. (4) Series revised from 1Q15 due to methodology adjustments. (5) It does not include loans with government sector.

58 Net Interest Income 59 Revenue from Loans Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Revenue from Loans Accumulated Selic (% accumulated in 12 months)¹ Funding Costs Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Funding Expenses Institutional Funding Accumulated Selic (% accumulated in 12 months)¹ Funding Expenses % Selic (1) Source: Central Bank of Brazil

59 Fee Income 1Q15 4Q15 1Q16 Chg. On 1Q15 Chg. On 4Q15 Fee Income 5,423 5,982 5, (7.1) Account Fees 1,142 1,458 1, (1.6) Asset Management Fees Insurance, Pension and Premium Bonds (7.0) Collections Loan Fees (35.3) Credit / Debit Cards (52.9) (27.5) Billings (0.8) Interbank Fiduciary Services Consortium Capital Market (34.2) (22.8) Other R$ Million Adjusted Fee Income¹ 1Q15 4Q15 1Q16 Chg. On 1Q15 Chg. On 4Q15 Fee Income 5,016 5,982 5, (7.1) Credit / Debit Cards (27.5) (1) ) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

60 BB Seguridade 61 Adjusted Net Income (R$ million) 0.9% Q15 1Q16

61 Banco Votorantim 62 Net Income (R$ million) Q15 2Q15 3Q15 4Q15 1Q16 Delinquency and Risk Level 6.5% 5.2% 5.3% 5.7% 4.6% 10.5% 10.2% 10.3% 11.2% 9.4% 89.5% 89.8% 89.7% 88.8% 90.6% 1Q15 2Q15 3Q15 4Q15 1Q16 AA-C D-H NPL + 90 days / Loan Portfolio

62 Administrative Expenses and Cost to Income Ratio 63 R$ Million Q15 4Q15 1Q16 Personnel Expenses Other Expenses Cost to Income Ratio (%)¹ (1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations and 2015 cost to income ratio is accumulated in 12 months.

63 BIS Ratio % Tier I 11.38% Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Core Capital AT 1 Tier 2

64 Full application of Basel III rules 65 BIS Ratio 16.2 (0.7) (0.3) BIS Ratio Deductions Schedule Anticipation BIS Ratio with full deductions RWA Rules Anticipation BIS Ratio with Fully Loaded Basel III Rules Use of Tax Credits Simulated BIS Ratio under complete Basel III Rules Tier (0.7) (0.2) Tier 1 Deductions Schedule Anticipation Tier 1 with full deductions RWA Rules Anticipation Tier 1 with Fully Loaded Basel III Rules Use of Tax Credits Simulated Tier 1 under complete Basel III Rules

65 BIS III Capital Requirements % 66 Implementation Schedule Common Equity Tier I (CET1) Tier 1 Brazilian BIS Ratio Capital Conservation Buffer Additional CET1 Countercyclical Buffer (superior limit) 0.625¹ Additional CET1 Systemic (D-SIB) Buffer CET1 + Buffers Tier 1 + Buffers Brazilian BIS Ratio + Buffers ¹ ¹ ¹ (1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to Central Bank Circular 3,769/15.

66 Tax Rate 67 R$ Million EBT Effects Tax Rate Effects EBT Reallocations 1,202 Additional ALL 2,047 Tax Hedge 826 Other One-Off Items 24 Tax Base 4,100 IR/CSLL Reallocations 659 Interest on Own Capital Tax Benefit (291) Statutory Profit Sharing (135) Eq. Int. in Results of Subsidiaries and Affiliates (461) Tax Hedge (826) Tax Effect on One-Off Items (878) Other 86.8 IR/CSLL (1,845) Tax Rate: 45% Source: Income Statement with Reallocations and Explanatory Note 24.

67 Guidance Guidance 2016 Performance 2016 Guidance Revised Adjusted Return on Equity¹ Net Interest Income Unchanged Domestic Loan Portfolio² - Broad Concept Unchanged Individuals Unchanged Companies Unchanged Agribusiness Unchanged Allowance for Loan Losses³ Fee Income Unchanged Administrative Expenses Unchanged (1) Adjusted ROE estimated for 2015 uses estimated adjusted shareholders equity, free from the effects of: (i) the restatement of actuarial assets and liabilities arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies. (2) It includes private securities and guarantees provided. (3) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

68 4 Macroeconomic Information

69 Inflation and Selic Rate Q15 4Q15 1Q IPCA IBGE (% accumulated in 12 months) Selic (% - end of the period) Real Interest Rate¹ Source: Central Bank of Brazil and IBGE. Projection for 2016 and 2017, according to Boletim Focus as of 05/01/2016. (1) Real Interest Rate = Selic - IPCA

70 GDP Q15 4Q15 1Q16 Credit/GDP (% accumulated in 12 months) Public Sector Net Debt (% GDP) GDP (% accumulated in 12 months) Primary Surplus (% accumulated in 12 months) Source: Central Bank of Brazil.

71 Loans/GDP 72 Loans/GDP (%) and Evolution of Loan Portfolio of Banking Industry Q15 1Q16 Credit/GDP (% accumulated in 12 months) Loan Portfolio Banking Industry (R$ trillon) Source: Central Bank of Brazil

72 Unemployment Q15 1Q16* Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Industrial Production (% accumulated in 12 months) Unemployment Rate (% accumulated in 12 months) Consumer Expectations (INEC) Business Confidence (ICEI) Source: IBGE and Confederação Nacional da Indústria *As of 4Q15.

73 Trade Balance 74 US$ Billion Q15 4Q15 1Q16 Source: MDIC. Projection for 2016 and 2017, according to Boletim Focus as of 05/01/2016.

74 International Reserves Gross Foreign Debt (R$ billion) International Reserves (US$ billion) Source: Central Bank of Brazil.

75 Sustainable Growth Brazil has the Ideal Conditions for Sustainable Growth Only a few countries have the same potential as Brazil 76 Planting Area > 140 million ha* Australia Canada Germany GDP > US$ 1 trillion* UK Argentina France Brazil Korea Kasakhstan Italy China Russia USA Mexico Spain India Japan Urban Population > 80 million people* (2011) Indonesia Source: World Bank and FAO *2011

76 Main Pilars of Brazilian Growth 77 Agriculture Infrastructure Foreign Trade

77 Brazilian Agribusiness: Overview 78 Overview Area 8.5 million Km² Population (2015) 204 million GDP (2015) -3.8% Agribusiness GDP (2015) 1.8% Brazil s Unique Advantages Greater availability of arable land in the world at low costs Easy Access to Clean Water Supplies Competitive Prices for Land Excellent Climate Rich soil Source: Agriculture Ministry and IBGE

78 Brazilian Agribusiness: Area X Production 79 Planted Area (thousands Ha) vs Production (thousands Tons) 188, , , , , , , ,135 47,674 47,416 49,873 50,885 53,563 57,060 57,931 58,395 CAGR 54.7% CAGR 22.5% 2008/ / / / / / / /16 E Planted Area Production Source: CONAB

79 Brazilian Agribusiness: Undisputable Leadership 80 Brazil: World Commodities Ranking Production Export Coffee 1 st 1 st Orange Juice 1 st 1 st Sugar 1 st 1 st Soybean 2 nd 1 st Poultry 3 rd 1 st Beef 2 nd 1 st Corn 3 rd 1 st Source: Agriculture Ministry

80 Infrastructure: Investment Programs The Federal Government holds Investment Programs in progress 81 PIL Logistics Investment Program Stage I ( ) R$51.9 bn IN PROGRESS 7 projects - R$27.7bn Highway 5 projects - R$21.0bn Airports 7 projects - R$3.2bn TUPs* PIL Logistics Investment Program Stage II ( ) R$198.4 bn AUCTION LAUNCHED R$66.1bn Highway R$86.4bn Railroad R$37.4bn Ports R$8.5bn Airports PIEE Electricity Investment Program R$186.0 bn AUCTION LAUNCHED R$116bn Generation R$70 bn Transmission + than R$400bn Total Investment Forecast Source: Federal Government (MPOG) - Dec/15 *Private Service Terminal

81 Brazilian Foreign Trade Balance: Overview 82 Brazilian Foreign Trade Balance Evolution (US$ billion) Mar/15 Mar/16 Exports (US$ billion year accumulated) Imports (US$ billion year accumulated) Trade Balance (US$ billion year accumulated) Source: Ministry of Development, Industry and Foreign Trade.

82 Brazilian Foreign Trade Balance: Exports 83 Brazilian Exports (by country of destination¹) 17.2% 12.5% 7.5% 5.5% 3.2% 2.5% 2.3% 2.0% 2.0% 2.0% 1.9% 1.6% China USA Argentina Netherlands Japan Germany Chile Mexico Belgium South Korea Italy India Source: Ministry of Development, Industry and Foreign Trade. (1) YTD Mar/2016

83 Summary Table 84 Annual Collected Data Quarterly Data Q15 4Q15 1Q16 Economic Activity GDP (% YTD in 12 months) Family Consumption Government Consumption Gross Fixed Capital Formation Exports Imports Use of Installed Capacity (%) Economically active population - PEA (% YTD in 12 months) Unemployment Rate (% YTD in 12 months) Formal employment net creation in 12 m (thousand jobs) 1, , ,625.6 Industrial Production (% YTD in 12 months) External Sector Current Transactions (% GDP in 12 months) Direct Foreign Investment (US$ billion - year accumulated) International Reserves (US$ billion end of period) Sovereign Risk (basis points EOP) Trade Balance (US$ billion year accumulated) Exports (US$ billion year accumulated) Imports (US$ billion year accumulated) Trade Balance (US$ billion quarterly accumulated) Exports (US$ billion quarterly accumulated) Imports (US$ billion quarterly accumulated) Ptax Dollar Rate (EOP) Ptax Dollar Rate (% YTD in 12 months) All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

84 Summary Table 85 Annual Collected Data Quarterly Data Q15 4Q15 1Q16 Monetary Ratios IGP-DI FGV (% YTD in 12 months) IGP-M FGV (% YTD in 12 months) IPCA IBGE (% YTD in 12 months) Selic (EOP %) Accumulated Selic (% YTD in 12 months) Accumulated TR (exbtn) (% YTD in 12 months) TJLP - IBGE (EOP %) Libor (EOP %) Public Finance Primary Surplus (% GDP 12 months accumulated) Public Sector Gross Debt (% GDP) Public Sector Net Debt (% GDP) Credit Ratios Banking Industry Loan Portfolio (R$ billion) 3, , , , , , , ,160.7 Individuals (R$ billion) , , , , , , ,520.3 Companies (R$ billion) 1, , , , , , , ,640.4 Credit/GDP (% YTD in 12 months) - (%) Household Debt (%) Total Default (% past due loans over 90 days) All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

85 86 The largest bank in Latin America Av. Paulista 2163, 2nd Floor Cerqueira César São Paulo/SP - Brazil ri@bb.com.br +55 (11)