This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do

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2 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. 2

3 4 Earnings Highlights 19 NPL Formation by Segment 5 Net Income 20 Renegotiated Overdue Loan Portfolio 6 Earnings Breakdown 21 Net Interest Income 7 Market Ratios 22 Spread by Portfolio 8 Commercial Funding 23 Fee Income 9 Loan Portfolio 24 Administrative Expenses and Cost to Income Ratio 10 Disbursements 25 BIS Ratio 11 Individuals concentrated 26 Full Application of Basel III Rules 12 Loans to Companies 27 Guidance Disbursements for the Harvest Plan 28 Guidance Delinquency Ratio (+90 days) 29 Appendix 15 Delinquency Ratio by Segment 16 ALL Balance and Coverage Ratio 17 Average Risk and Loan Portfolio by Risk Level 18 NPL Formation

4 Earnings Highlights Adjusted Net Income Growth (R$) 3.2 Billion in the 4Q % (on 3Q17) 11.1 Billion in % (on 2016) Fee Income Growth 9.0% in 2017 over 2016 Administrative Expenses Reduction Credit Quality Improvement Cost-to-Income ratio Improvement Common Equity Tier 1 Growth -3.1% in 2017 over % NPL +90 days -0.2 p.p. (on 3Q17) 20.1 Billion ALL expenses¹ -25.5% (on 2016) Reached 38.1% -1.6 p.p. (on 4Q16) Reached 10.5% +0.4 p.p. (on 3Q17) BB Foundations Human Factor Profitability Efficiency Credit and Capital Management Services Quality Digital Transformation (1) Allowance for Loan Losses Expenses Net of Recovery of Write-offs. 4

5 Net Income +54.2% Change (%) 4Q17/4Q % R$ billion Change (%) 4Q17/4Q % % Adjusted Net Income 4Q Adjusted Net Income 9M Profitabilty Ratios¹ 2016 Net Income 4Q Net Income 9M 4Q16 3Q17 4Q Shareholders ROE % Market ROE % (1) Shareholders ROE: it does not include the core capital eligible instrument; Market ROE: it reflects the metric that the main market analysts use to project results, including the core capital eligible instrument. 5

6 Earnings Breakdown R$ billion 4Q17 (5.64) (8.24) (4.22) 3.19 (0.08) (25.27) (31.79) (15.70) (0.05) NII ALL Fee Income Administrative Expenses Other Adjusted Net Income One-Off Items Net Income 6

7 Market Ratios Earnings per Share Dividend Yield² (%) Q16 1Q17 2Q17 3Q17 4Q E¹ 2019E¹ 4Q16 1Q17 2Q17 3Q17 4Q E¹ 2019E¹ Earnings per Share - R$ Adjusted Earnings per Share - R$ 9.74 Price/Earnings 12 months Price/Book Value Q16 1Q17 2Q17 3Q17 4Q E¹ 2019E¹ 4Q16 1Q17 2Q17 3Q17 4Q E¹ 2019E¹ Source: Economatica. Source: Economatica. (1) Bloomberg estimative on February, 22, 2018 based on analysts projections average. Banco do Brasil is not responsible for this information. (2) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica. 7

8 Commercial Funding % % R$ billion Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Time Deposits Savings Deposits Agribusiness Let. Credit + Mortgage Bonds¹ Demand Deposits Rep. Agreement with Private Securities² Interbank Deposits Adjusted Net Loan Portfolio³ / Commercial Funding (1) It includes the balance of CRI (Certificates of Real Estate Receivables). (2) It includes part of the balances of the Private Securities shown on Notes to the Consolidated Financial Statements. (3) It does not include the domestic onlending loans. 8

9 Loan Portfolio Expanded View¹ R$ billion % % % Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Foreign Branches and Subsidiaries Agribusiness Individuals Companies Perfomance in 12 months (%) (1) It includes private securities and guarantees provided. 9

10 Disbursements quarterly average¹ (1Q16 base 100) Brazil Growth of 36% in 2017 Individuals Growth of 81% in Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Agribusiness Growth of 11% in 2017 Companies Growth of 31% in Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 (1) It does not include revolving lines of credit and overdraft. 10 3Q17 4Q17

11 76.4% of Individuals loans¹ concentrated in lines with better risk-adjusted return Mortgages Payroll R$ billion Individuals Market Share 7.9% +0.1% Chg. (%) on Dec/16 6.0% +7.4% % 2.8% 9.7% 2.6% 9.9% 2.5% 88.4% 87.7% 87.6% Market Share 21.7% Dec/16 Sep/17 Dec/17 Mortgage -Companies Mortgage - Individuals Individuals Mortgage NPL 90 (%)² NPL +90 days (%)² Salary Loans Dec/16 Sep/17 Private Sector Employees INSS s Retirees and Pensioners Auto Loans Dec/17 Civil Servants NPL +90 days (%)² NPL +90 days (%)² -2.4% % (1) BB Organic Portfolio. (2) BB Classified Loan Portfolio. Dec/16 Sep/17 Dec/17 Dec/16 Sep/17 Dec/17 11

12 Loans to Companies Expanded View¹ R$ billion % % Chg. (%) on Dec/ % Chg. (%) on Sep/17-9.1% -2.5% +2.1% Dec/16 Sep/17 Dec/17 Very Small and Small Companies² Middle Market, Corporates and Government (1) It includes private securities and guarantees provided. (2) Companies with annual revenues up to R$ 25 million. 12

13 Disbursements for the Harvest Plan reached R$ 41.4 billion Market Share of 60.0 % in Dec/17² Agribusiness Portfolio¹ +1.2% % +6.1% Disbursements 18/19 Harvest 2 nd half of 2017 (R$ billion) % 21.6% 61.0% +12.5% % 16.8% 68.2% R$ billion Medium Size Producers - Pronamp Small Producers - Pronaf Companies Crop 16/17 Crop 17/18 Dec/16 Dec/17 Agroindustrial Rural (1) It includes Rural Product Bills and guarantees provided. (2) Source: Brazilian Central Bank. Pre working capital for input purchase Harvest 18/19 R$ 12.5 billion available R$ 1.7 billion more than the disbursed in the Harvest of 17/18 13

14 Delinquency Ratio (+90 days)¹ Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 BB BB ex-specific case Banking Industry (1) BB Classified Loan Portfolio. 14

15 Delinquency Ratio¹ by Segment NPL Ratio +90 days (%) NPL Ratio +15 days (%) Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Individuals Companies Agribusiness Simulation ex-specific case (1) BB Classified Loan Portfolio. 15

16 ALL Balance and Coverage Ratio ,070 36,414 37,881 37,806 36,686 1,535 1,686 1,851 2,130 2,075 34,535 34,728 36,030 35,675 34,612 % R$ million Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Required Provision Minimum Provision Supplementary Provision BB +90 days BB ex-specific case BI +90 days¹ Agribusiness Foreign Companies Individuals 7, ,517 2, Q16 6,713 6,658 6, ,370 3,979 3,526 1,677 1Q17 ALL by Segment (R$ million)² 1,743 2Q17 1,627 (1) Banking Industry: Ratio created through Average Risk Index available at SGS (Time Series Management System) of the Brazilian Central Bank. (2) Quartely ALL expenses including the write-off recovery. 3Q ,637 1,075 2,744 1,606 4Q17 R$ million 16

17 Average Risk and Loan Portfolio by Risk Level Average Risk¹ (%) Loan Portfolio by Risk Level % 9.7% % 49.7% 91.5% of the transactions are concentrated in levels AA to C 10.8% Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Banco do Brasil Banking Industry AA A B C D-H (1) Required Provision / BB Classified Loan Portfolio. Source: SGS (Brazilian Central Bank). 17

18 NPL Formation Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 New NPL (R$ billion)¹ New NPL / Loan Portfolio (%)² Quarterly ALL/New NPL (%) (1) Quarterly change in the balance of transactions over 90 days past due + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter. 18

19 Companies Individuals Agribusiness NPL Formation by Segment Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 New NPL (R$ billion)¹ Quarterly ALL/New NPL (%) New NPL / Loan Portfolio (%)² (1) Quarterly change in the balance of transactions over 90 days past due + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter. 19

20 Renegotiated Overdue Loan Portfolio 4Q16 3Q17 4Q17 Credits Renegotiated When Past Due - Changes Initial Balance 25,694 27,042 25,867 Contracts 3,873 1,870 3,101 Amortization Net of Interest¹ (1,113) (773) (1,467) Write-Off (1,368) (2,273) (2,204) Past due Renegotiated Loan Portfolio (A) 27,086 25,867 25,297 ALL Balance (B) 11,925 12,415 12,440 NPL + 90 days (C) 7,375 6,360 5,918 Indicators - % ALL / Loan Portfolio (B/A) NPL + 90 days / Loan Portfolio (C/A) ALL Balance/NPL + 90 days (B/C) Credits Renegotiated/Classified Loan Portfolio NPL Formation R$ million 4Q17 Credits Renegotiated Contracts % 0 to 14 days Past due to 90 days Past due Over 90 days Past due Writen-Off Recovery Total 3, Q16 1Q17 2Q17 3Q17 New NPL (R$ billion)² New NPL / Loan Portfolio (%)³ 4Q17 (1) Principal and interest payments net of interest accrued in the period. (2) Quarterly change in the balance of over 90 days past due transactions + current quarter write-off. (3) It considers the Classified Loan Portfolio of the previous quarter. 20

21 Net Interest Income R$ million 4Q16 3Q17 4Q17 Chg. (%) on Chg. (%) on Q16 3Q Net Interest Income 15,333 14,247 14,548 (5.1) ,341 57,878 (2.5) Net Interest Income W/O Recovery 13,974 13,153 12,820 (8.3) (2.5) 54,770 52,706 (3.8) Loan Operations 25,131 21,412 19,532 (22.3) (8.8) 101,637 86,342 (15.0) Funding Expenses (10,806) (7,814) (6,469) (40.1) (17.2) (44,136) (32,441) (26.5) Financial Expense for Institutional Funding¹ ³ (3,477) (3,197) (2,823) (18.8) (11.7) (13,834) (12,426) (10.2) Treasury² ³ 3,125 2,753 2,580 (17.5) (6.3) 11,103 11, Recovery of Write-offs 1,359 1,094 1, ,571 5, (1) It includes senior bonds, subordinated debt, and Hybrid Instruments in Brazil and abroad. (2) It includes the result from interest, tax hedging, derivatives, and other financial instruments that offset the effects of the exchange rate variation in the result. (3) Series revised (Funding Expense for Institutional Funding and Treasury). Impact in all tables with those lines. 21

22 Spread by Portfolio % Net Interest Margin (NIM) Risk Adjusted NIM Q16 1Q17 2Q17 3Q17 4Q17 (1) Government loans not included. Individuals Loan Operations Companies¹ Agribusiness 22

23 Fee Income R$ million Chg. (%) on Chg. (%) on 4Q16 3Q17 4Q Q16 3Q Fee Income 6,318 6,562 6, ,794 25, Checking Account Fees 1,660 1,777 1, ,229 6, Asset Management Fees 1,069 1,419 1, (5.1) 4,267 5, Insurance, Pension and Premium Bonds (3.5) 0.2 3,123 3,048 (2.4) Loan Fees ,684 1, Credit / Debit Cards¹ (13.4) (13.6) 1,828 1, Collections (18.4) (4.5) 1,679 1,448 (13.8) Billings (0.3) 1.6 1,046 1, Capital Market Consortium National Treasury and Manag. of Official Funds (2.3) Interbank (19.7) (14.4) Other ,920 1,887 (1.7) (1) Series revised in 3Q17 in accordance with Bacen Circular Letter No. 3,828/

24 Administrative Expenses and Cost to Income Ratio¹ R$ million Employees Dec/16 Dec/17 100,622 99,161 Change (abs.) -1,461 8, % -4.4% 32,817 31,789 7,915 8,236 3,406 3,236 3,431 5,210 4,679 4,805 4Q16 3Q17 4Q17 Cost to Income Ratio (12 months) Personnel Expenses Other Administrative Expenses 12,579 12,811 20,238 18, Branches Estilo Branch Private Banking Exclusivo Office Estilo Office 5,440 4, Traditional Branches 5,053 4, Digital Service Estilo Office Government Branch Agribusiness Branch MPE² Office Points of Service 1,705 2,033 Customer Service Points Own Service Network 16,625 14,901-1,724 (1) Cost to Income Ratio: Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. (2) Very Small and Small Companies. 24

25 BIS Ratio % Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Tier II Tier I Common Equity Tier I 9.5% CET I in January/2019 New target: minimum of 11% in January/

26 CET 1 Tier 1 BIS Full Application of Basel III Rules % 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 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 Common Equity Tier I (CET1) Deductions Schedule Anticipation CET1 with full deductions RWA Rules Anticipation CET1 with Fully Loaded Basel III Rules Use of Tax Credits Simulated CET1 under complete Basel III Rules 26

27 Guidance 2017 Guidance Performance Adjusted Net Income - R$ billion 9.5 to NII (Net of Recovery of Write-offs) - % -4 to Organic Domestic Loan Portfolio - Expanded View - % -4 to Individuals - % 2 to Companies - % -11 to Rural Loans - % 6 to ALL Expenses net of Recovery of Write-offs - R$ billion to Fee Income - % 6 to Administrative Expenses - % -2.5 to

28 Guidance 2018 Guidance 2018 Adjusted Net Income - R$ billion 11.5 to 14 NII (Net of Recovery of Write-offs) - % -5 to 0 Organic Domestic Loan Portfolio - Expanded View - % 1 to 4 Individuals - % 4 to 7 Companies - % -3 to 0 Rural Loans - % 4 to 7 ALL Expenses net of Recovery of Write-offs - R$ billion -19 to -16 Fee Income - % 4 to 7 Administrative Expenses - % 1 to 4 28

29 One-Off Items Income Statement with Reallocations Main Lines Earnings Assets Breakdown

30 One-Off Items R$ million Chg. (%) on Chg. (%) on 4Q16 3Q17 4Q Q16 3Q Adjusted Net Income 1,747 2,708 3, ,171 11, One-Off Items (784) 133 (80) (89.8) (49) - Economic Plans (182) (280) (294) (1,072) (864) (19.4) Extraordinary Provision for Lawsuits (96.3) (73.4) (88.0) Additional Allowance for Loan Losses , Extraordinary Incentivated Retirement Program (1,401) (1,401) - - IPO - IRB Neonergia Proagro BB Seguridade - - (58) (58) - Tax Eff. and Stat. Prof. on One-Off Items (90.4) 48.4 (803) Net Income 963 2,841 3, ,034 11,

31 Income Statement with Reallocations Main Lines R$ million 4Q16 3Q17 4Q17 Chg. (%) on Chg. (%) on Q16 3Q Net Interest Income 15,333 14,247 14,548 (5.1) ,341 57,878 (2.5) Allowance for Loan Losses (7,486) (6,257) (5,637) (24.7) (9.9) (31,552) (25,265) (19.9) Net Financial Margin 7,847 7,990 8, ,790 32, Fee income 6,318 6,562 6, ,794 25, Contribution Margin 12,838 13,294 14, ,468 53, Administrative Expenses (8,617) (7,915) (8,236) (4.4) 4.0 (32,817) (31,789) (3.1) Commercial Income 4,125 5,251 6, ,225 21, Other Operating Income (298) (135) (90.0) Income Before Taxes 3,143 4,330 5, ,944 18, Income and Social Contribution Taxes (771) (799) (1,476) (1,179) (4,604) - Statutory Profit Sharing (184) (362) (412) (919) (1,436) 56.4 Adjusted Net Income 1,747 2,708 3, ,171 11, One-Off Items (784) 133 (80) (89.8) (49) - Net Income 963 2,841 3, ,034 11,

32 Earnings Assets Breakdown 3Q17 4Q % Retail Operations¹ 34.6% Retail Operations¹ 45.5% 49.5% 32.5% Wholesale Operations² 43.4% 51.3% 33.1% Wholesale Operations² 32.6% Agribusiness 32.3% Agribusiness 4.9% 5.3% Other Secur. + Interbank Invest. w/o Hedge Loans and Leasing Operations (1) It includes loans with individuals, very small and small companies. (2) It includes loans with Government and remaining companies. 32

33 Av. Paulista, th. floor Bela Vista São Paulo/SP - Brasil - CEP (11)