Main Indicators 3Q09 2Q09 3Q08 3Q09/3Q08 3Q09/2Q09

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1 3Q09 Results São Paulo, November 11, Banco Sofisa S.A. (Bovespa: SFSA4) announces today its results for the third quarter of 2009 (3Q09). Except where stated otherwise, all operating and financial information is denominated in Brazilian real and presented on a consolidated basis, in accordance with Brazilian Corporate Law. Message from the CEO 3Q09 Highlights Our efforts to rebuild the SME loan portfolio to pre-crisis levels began to be rewarded during 3Q09. This quarter we observed an 8.7% increase in the balance of this portfolio, while in the consumer-finance segment we originated approximately R$140.0 mn, in line with our expectations. Our results were impacted not only by the low volume of the SME loan portfolio, which is still R$600.0 mn below the balance at September 2008, but also by the provisions for non-performing loans. Another negative factor in the quarter was the high cost of funds raised through loan assignments in 4Q08. Analyzing these effects, we realized that the contraction in the SME portfolio resulted in revenue loss estimated at R$50.0 mn/year, while the expenses with non-performing loans for operations originated by the Bank were approximately R$24.0 mn higher than in the nine-month period to September In addition, the higher fixed interest rates following the crisis, which coincided with the period when we assigned part of our portfolio, generated an increase of R$18.0 mn in funding expenses in the first nine months of this year, based on a comparison of prevailing rates in the same period of 2008 with those at the start of As a result, we ended the quarter with a net loss of R$10.7 mn. These factors can be attributed to a conservative response to the international financial crisis, which had a global impact, and we already can see these effects gradually decreasing over the coming quarters. In September 2009, the balance of provisions for non-performing loans was significantly lower than in the previous 4 months, while loan volumes have been rising. Without being excessively optimistic, various indicators are pointing to better results going forward. The scale gains from growth in the SME portfolio, combined with return of provisions for non-performing loans to historical levels, should lead results to converge with Banco Sofisa s effective capacity. Gilberto Meiches CEO and IRO Loan Operations Growth in SME portfolio of 8.7% (3Q09/2Q09) Origination volume in consumer-finance segment of R$140.0 mn, replenishing the portfolio with new loans with higher spreads High collateralization: 98.0% of loan operations with guarantees Gradual increase in leverage: 3.4x (3Q09) versus 3.2x (2Q09) 94.6% of loan portfolio rated from AA to C Funding/Liquidity High liquidity: free cash of R$706.0 mn Growth in time deposits: % (3Q09/2Q09) Reduction in assigned loan portfolio (CB Resolution no advance recognition of results) Net Income Net income of R$2.0 mn in 9M09 and (R$10.7 mn) in 3Q09 Credit recovery reaches R$12.3 mn in 3Q09 (R$3.2 mn in 2Q09) Growth in SME portfolio forecasts recovery in net income Investor Relations Gilberto Meiches CEO and IRO Tel: +55 (11) / Adriana Sarinho IR Manager ri@sofisa.com.br Main Indicators 3Q09 2Q09 3Q08 3Q09/3Q08 3Q09/2Q09 Balance Sheet (R$ thousand) Free Cash (1) 705, , , % -13.5% Loan Operations 2,901,140 2,752,736 3,446, % 5.4% Funding 3,122,802 3,232,944 4,020, % -3.4% Total Deposits 1,735,435 1,538,520 2,534, % 12.8% Shareholders' Equity 842, , , % -1.0% Results (R$ thousand) Result from financial intermediation 48,455 55,541 66, % -12.8% Personnel expenses (16,921) (17,860) (15,548) 8.8% -5.3% Administrative expenses (16,522) (15,452) (12,179) 35.7% 6.9% Net Income (10,738) 2,049 21, % % Eficiency / Profitability (%) ROAE -2.3% 1.0% 9.9% p.p p.p. ROAA -1.0% 0.2% 1.7% -2.7 p.p p.p. Net Interest Margin (2) 9.8% 10.1% 7.9% +1.9 p.p p.p. Efficiency (2) 43.2% 38.4% 43.4% -0.2 p.p p.p. Basel Ratio 19.4% 20.7% 17.0% +2.4 p.p p.p. Credit Portfolio Quality (%) Provision for Loan Losses / Loan Operations 3.8% 3.2% 1.8% +2.0 p.p p.p. Delinquency Credits with more than 90 days / Loan Operations 0.8% 0.6% 0.6% +0.2 p.p p.p. (1) Cash and cash equivalents + short-term investments + securities - open market funding - Rural Product Note - subordinated quotas of Investment Funds in Credit Rights / (2) Considers the FX translation of shareholder's equity from subsidiaries as well the adjustments from accounting write-offs impacting the provision for non-performing loans (NPLs) 1

2 Company Profile Loan philosophy based on high collateralization, low risk concentration and sector diversification Operating in the financial market for 48 years, Banco Sofisa focuses on the small and medium enterprises segment (SME), which consists of companies with annual revenue from R$5 mn to R$300 mn, as well as on the consumer-finance segment, especially car loans and payroll loans. In the SME segment, Banco Sofisa serves 1,903 customers through 20 branches in 13 states of Brazil that combined account for approximately 85% of the country's GDP. Sofisa s operations are underpinned by a policy of granting loans based on strict analysis of fundamentals and secured by strong collateral (98.0% in 3Q09) and low concentration of risks, with maximum credit exposure per economic group of R$30.0 mn (3.5% of shareholders equity). In the consumer-finance segment, Sofisa offers car loans and originates payroll loans to 137,085 active customers. To support its operations and maintain adequate matching of the maturities of its assets and liabilities, Banco Sofisa continually analyzes funding alternatives, such as Eurobond issues and syndicated international loans, in addition to granting loans and other alternatives with longer maturities, for instance the Deposits with Special Guarantees (DPGE) created in March Ratings Ratings reaffirmed by all agencies Over the course of 2009, the credit-rating agencies reaffirmed their long-term credit ratings for Banco Sofisa. As shown below, Sofisa s credit ratings reflect the Bank s solid asset-quality indicators, even during periods of credit deterioration, as well as the conservative approach of management, the construction of a solid franchise in the local market and adequate liquidity and capitalization. Aa2.br/BR-1 (domestic) and Ba1 (eurobonds) A+(BRA): Stable Perspective AA-: Long Term A1: Short Term Stable Perspective Low Risk Mid Term Disclousure: Excellent September/2009 April/2009 October/2009 October/2009 Material Events in 3Q09 Distribution of IOE for 2009: awaiting Judiciary final decision on calculation base for PIS/COFINS taxes At a meeting held on September 14, 2009, the Board of Directors approved the payment of interim Interest on Equity (IOE), to be calculated towards the minimum mandatory dividend for fiscal year 2009, in the gross amount of R$3.0 mn, or R$ per common and/or preferred share. According to decision by the Regional Federal Appellate Court Region 3, this payment, which was planned for September 28, 2009, was suspended while awaiting conclusion of the discussion pending in the Federal Judiciary between Banco Sofisa and the Tax Authority to determine which of the Company s revenues should and should not be considered part of the calculation base for PIS/COFINS taxes. Banco Sofisa has taken all applicable measures to lift the suspension of the distribution of this IOE and as soon as these matters are resolved with the Judiciary a new date for continuing the IOE payment will be announced. 2

3 Operating Highlights Loan Portfolio (R$ mn) Loan portfolio begins to effectively recover Consistent growth towards leverage target (4.0x in 2010) The improvement in macroeconomic indicators in 3Q09 enabled the Bank to effectively begin a gradual recovery in its loan portfolio, though without abandoning Sofisa s conservative credit philosophy that has always guided its activities. The loan portfolio totaled R$2.9 bn at the close of 3Q09, expanding by 5.4% from R$2.7 bn at the close of 2Q09 and contracting by 15.8% in relation to the pre-crisis peak observed in the portfolio of R$3.4 bn. The SME segment grew by 8.7% in 3Q09. With these results, the Bank moves forward in its objective to gradually return to its precrisis leverage (loan-to-equity ratio) of 4.0x by the end of 2010 (3.4x in 3Q09 versus 3.2 x in 2Q09). 3, , , , , , , , , , , , , , , Q08 4Q08 1Q09 2Q09 3Q09 SME Consumer-Finance Banco Sofisa operates in the SME segment with high levels of collateralization, low concentration of operations (maximum risk per client of R$30.0 mn or 3.5% of shareholders equity) and high diversification in terms of economic sector, as shown by the charts and graphs below. In 3Q09, 98.0% of the Bank s loan operations were collateralized: Collaterals Breakdown (R$ thousand) 2Q09 % of Total 3Q09 % of Total Consumer Finance Vehicles 860, % 855, % Payroll Loans / Consumer Financing / Other 292, % 306, % SME Segment Rights on Domestic Invoices ("Duplicatas") 425, % 539, % Fiduciary Alienation 484, % 429, % Recourses against financial institutions 227, % 248, % Contracts and bank domicile restraints 69, % 75, % Receivables 263, % 295, % Warrants and pledge 82, % 64, % Postdated checks 11, % 9, % Foreign companies withdrawals 21, % 17, % Subtotal 2,738, % 2,842, % Promissory Notes 14, % 59, % Total 2,752, % 2,901, % 3

4 Following the previous quarters, in 3Q09, no economic sector in which the Bank operates accounted for more than 9.5% of the overall portfolio: 9.08% - Transportation and storage 9.32% - General Services 7.61% - Overdraft-Secured credit assignments purchased 3.68% - Comércio 3.68% - Metallurgy and mining 3.26% - Textile and clothing 2.37% - Public Sector 2.33% - Paper and pulp 1.34% - Sugar Cane, sugar and alcohol 1.71% - Plastic and rubber 15.56% - Others 40.06% - Private sector - individuals In terms of risk exposure, in 3Q09, the Bank's largest debtor represented 1.0% of the overall portfolio (3.5% of shareholders equity) and the average risk per client remained at R$900.0 thousand in line with previous quarters. % of Portfolio Risk 3Q09 Higher risk 1.0% 10 Higher risks 8.2% 20 Higher risks 13.1% 50 Higher risks 22.6% 100 Higher risks 32.2% Total Delinquency and Provisions for Losses The balance of provisions for non-performing loans stood at R$110.0 mn in the quarter (R$87.2 mn in 2Q09), equivalent to 3.8% of the total balance of loan operations (3.2% in 2Q09). Of this total, 41.0% (R$45.1 mn) was related to SME loan operations (R$29.2 mn in 2Q09), 35.7% (R$39.3 mn) to the own origination of consumer-finance loans (R$34.2 mn in 2Q09) and 23.3% (R$25.6 mn) to an operational agreement with a financial institution (R$23.7 mn in 2Q09). Of the total loan operations in 3Q09, R$2,743.7 mn (94.6% of the total in 3Q09 versus 94.7% in 2Q09) was rated from AA to C, and R$157.4 mn (5.4% of the total in 3Q09 versus 5.3% in 2Q09) was rated D to H. Generic provisions in 3Q09 increased by 9.3% (R$ 2.1 mn) in relation to 2Q09, versus an increase of 1.6% in 2Q09 in relation to 1Q09. Provisions for loan operations rated from D to H increased by 31.9% (R$20.7 mn) in 3Q09 in relation to 2Q09 (increase of 38.3% in 2Q09 versus 1Q09). Consolidated (R$ thousand) 2Q09 %Total 3Q09 %Total Generic Provisions AA A 6, % 6, % B 7, % 8, % C 7, % 9, % Subtotal - Provisions AA - C 22, % 24, % Delinquency Provision D 4, % 4, % E 10, % 6, % F 7, % 15, % G 9, % 9, % H 32, % 50, % Subtotal - Provisions D - H 64, % 85, % Total Provision 87, % 109, % PROVISION/CREDIT PORTFOLIO 3.2% - 3.8% - PROVISION D-H / CREDIT PORTFOLIO 2.4% - 3.0% - OVERDUE MORE THAN 90 DAYS /CREDIT PORTFOLIO 0.6% - 0.8% - 4

5 Loan Operations - SME Loans to the SME segment totaled R$1.7 bn or 59.9% of the total loan portfolio in 3Q09 (58.1% in 2Q09), declining by 23.1% from the portfolio s peak in 3Q08 of R$2.3 bn and increasing by 8.7% from R$1.6 bn in the previous quarter. It is important to mention that this growth allowed the Bank to reach a leverage (loan-to-equity ratio) of 3.4x (3.2x in 2Q09), in line with its goal of reaching 4.0x leverage by the end of Portfolio Breakdown (R$ thousand) 3Q09/3Q08 3Q09/2Q09 Overdraft-Secured Account 565, , , % 59.8% Working Capital 1,090, , , % 7.2% Acquired Financings 317, , , % -1.9% Others (*) 286, , , % -10.6% Total 2,261,171 1,600,116 1,738, % 8.7% (*) Includes: discounted bonds, import financing, advances to depositors, corporate check, BNDES financing, leasing operations, other credits and exchange Government Agency for Machinery and Equipment Financing - FINAME and vehicles. Delinquency and Provisions for Losses - SME The balance of provisions for non-performing loans in the SME segment stood at R$45.1 mn in the quarter (R$29.2 mn in 2Q09), equivalent to 2.6% of the total balance of loan operations in this segment (1.8% in 2Q09). Loans overdue more than 90 days represented 0.4% of the portfolio in September 2009, compared with 0.3% in June 2009, which demonstrates the preservation of portfolio quality. As in 2Q09, the Bank continued its efforts to recover credits, which amounted to R$7.8 mn in 3Q09. Note that these continuous efforts to mitigate losses have a gradual and direct impact on Sofisa s results and the amounts could become even more significant in the coming months, with a higher concentration in SME (R$ thousand) 2Q09 %Total 3Q09 %Total Generic Provisions AA A 2, % 2, % B 7, % 7, % C 6, % 7, % Subtotal - Provisions AA - C 15, % 17, % Delinquency Provision D 1, % 2, % E 4, % 2, % F % 3, % G 1, % % H 6, % 18, % Subtotal - Provisions D - H 14, % 27, % Total Provision 29, % 45, % PROVISION/CREDIT PORTFOLIO 1.8% - 2.6% - PROVISION D-H / CREDIT PORTFOLIO 0.9% - 1.6% - OVERDUE MORE THAN 90 DAYS /CREDIT PORTFOLIO 0.3% - 0.4% - 5

6 Loan Operations - Consumer Finance Consumer-finance loans accounted for R$1.16 bn or 40.1% of the total loan portfolio at the end 3Q09, compared with 41.9% in 2Q09, growing by 0.8% versus 2Q09 and declining by 1.9% in relation to 3Q08. This stability is explained by the maturing installments of R$40.0 to R$50.0 mn/month combined with management s decision to originate loan volume of R$50.0 to R$60.0 mn/month. Portfolio Breakdown (R$ thousand) 3Q09/3Q08 3Q09/2Q09 Payroll Deductible Loans (*) 338, , , % 4.9% Vehicles (**) 846, , , % -0.5% Total 1,185,287 1,152,620 1,162, % 0.8% (*) Includes: consumer finance, check credit loans, discounted notes and others (**) Includes: Leasing and Vehicle Financing The consumer-finance business is part of Sofisa s strategy to draw on its vast experience in this segment. Today, the Bank operates in the car loan and public-sector payroll-deduction loan markets. Consumer-finance activities help dilute risks and costs, with higher profitability, based on the sale of value-added products and services. The current scenario offers profitable business opportunities based on focus and specialization, transforming these services and customer service into drivers of success in this segment. Banco Sofisa consolidates these loan volumes with a high-quality origination process conducted through an in-house sales team and a national presence through various Channels: SME segment, branch offices, commercial partners (car dealerships, wholesalers and employers) and Rede Matriz. The high concentration generated by recent acquisitions and mergers in the banking system involved the country s largest institutions in complex transition processes, increasing the opportunities available. In the car loan market, the four largest lenders hold approximately 80% market share, with operations in all segments, especially the primary market of new vehicles, due to partnerships with major assemblers. The other institutions operate in niche markets, such as foreign and independent banks associated with assemblers, which operate in the dealership market, and smaller banks, which operate mainly in dealerships selling vehicles with more than 10 years of use. Sofisa operates in all segments with its in-house team, but its strategy does not include serving the two extremes of the spectrum, i.e., large dealership chains and stores specializing in older used vehicles. In the payroll loans, the Bank operates directly through Rede Matriz, in Pernambuco state, and through partnerships with selected sales promoters. These unique characteristics, the high concentration of the banking industry, the repositioning of smaller banks and the increased democratization of Cadastro Positivo (credit data resulting from the introduction of a positive credit history system), have effectively increased the opportunities for developing the consumer-finance business. Delinquency and Provisions for Losses - Consumer Finance The total balance of provisions in the consumer-finance segment in 3Q09 was R$64.8 mn. Of this total, R$39.2 mn is related to own origination, accounting for 3.4% of the total consumer-finance portfolio in 3Q09 (3.0% in 2Q09), and the remaining balance of R$25.6 mn, equivalent to 2.2% of the segment s portfolio (2.1% in 2Q09), is related to an operational agreement with a financial institution for the acquisition of car loan operations. The higher provisions for both own origination and the operational agreement reflect the maturation of these portfolios associated with the impacts of the economic crisis. Note that this operational agreement provides for, upon its termination, the minimum reimbursement of the total amount disbursed by the Bank (total origination of R$136.6 mn), corrected by 110% of the CDI rate, in the event the result is not favorable for Sofisa. In addition, the acquisitions related to this operational agreement were made only in the period from March 2008 to January 2009 and are registered in the consumer-finance portfolio, even though their characteristics are different from those established in the Bank's own origination strategy. 6

7 In line with the continuous actions to mitigate risks in the SME segment, in 3Q09, the Bank also made efforts that resulted in the recovery of R$4.5 mn in credits in the consumer-finance segment. Consumer Finance and Operational Agreement (R$ thousand) Own Origination 2Q09 Operational Agreement OVERDUE MORE THAN 90 DAYS /CREDIT PORTFOLIO 1.1% 1.3% (*) The Operational Agreement includes a credit protection clause that generated assets amounting to R$1.9 mn in 3Q09 and R$16.6 mn in 2Q09. Total Own Origination Operational Agreement Generic Provisions AA A 4, , % 4, , % B % % C 1, , % , % Subtotal - Provisions AA - C 6, , % 5, , % Delinquency Provision D 2, , % 1, , % E 4,106 1,921 6, % 2, , % F 4,480 2,919 7, % 10,340 1,749 12, % G 4,679 3,048 7, % 5,754 2,471 8, % H 12,227 14,204 26, % 12,990 19,165 32, % Subtotal - Provisions D - H 28,031 22,906 50, % 33,322 24,900 58, % Total Provision 34,184 23,740 (*) 57, % 39,263 25,578 (*) 64, % PROVISION/CREDIT PORTFOLIO 3.4% 17.9% 5.0% - 3.6% 32.6% 5.6% - PROVISION D-H / CREDIT PORTFOLIO 2.7% 17.2% 4.4% - 3.1% 31.7% 5.0% - %Total 3Q09 Total %Total Own Origination Volume The end of the liquidity crisis and availability of long-term funds, such as the Deposits with Special Guarantees (DPGE) created as of March 2009, provided the Bank with the funds needed to support a recovery in average origination volume in the consumer-finance segment of approximately R$50.0 to R$60.0 mn/month. Note that with this level of origination, this segment s total portfolio remains practically stable, given the maturing installments of R$40.0 to R$50.0 mn/month. Own Origination Q08 4Q08 1Q09 2Q09 3Q09 Own Origination of Car Loans Car leasing and loan operations, Banco Sofisa s main retail products, accounting for 73.6% of its consumer-finance portfolio, totaled R$855.8 mn in 3Q09, growing by 1.1% from R$846.4 mn in 3Q08 and practically stable compared with the R$860.4 mn in 2Q09 (-0.5%). Origination Volume (R$MN) Average Down Payment (%) % 32.0% 34.0% 7

8 Given the high quality of the credit approval process, the delinquency rate for the first installment of originated loans has remained under control and at low levels over the past few months, with further improvement in 3Q09, as shown below: Deliquency of First Installment Jan.09 Feb.09 Mar.09 Apr.09 May.09 Jun.09 Jul.09 Aug.09 Sep.09 Car Loans / Leasing 0.42% 1.27% 0.42% 0.54% 0.13% 0.89% 0.26% 0.53% 0.45% Despite the higher delinquency observed in recent months, liquidity indicators for the originated portfolio have remained adequate and aligned with the industry average. The liquidity of the car loan portfolio, as measured by the installments maturing between June 2008 and June 2009 and the respective amounts received, is demonstrated by a total balance of installments received of 97.2% in 3Q09 (97.8% in 2Q09, for installments maturing from March 2008 to March 2009), as shown in the following charts: Liquidity of the Car Loan Portfolio (Production Maturities) March 2008 to March 2009 Liquidity of the Car Loan Portfolio (Production Maturities) June 2008 to June ,343 7,944 60,430 10, , , % - Received on and before the due date 14.9% - Received after due date up to 1 day 2.2% - Overdue and not paid 81.1% - Received on and before the due date 16.1% - Received after due date up to 1 day 2.8% - Overdue and not paid On September 30, 2009, credits overdue from the origination of car loans from June 2008 to June 2009 came to 3.07% and 1.37% for credits overdue more than 90 days and 180 days (position on September 30, 2009), respectively, demonstrating the high quality of the portfolio (2.25% and 0.88% for credits overdue more than 90 days and 180 days, respectively, from March 2008 to March 2008 position on June 30, 2009). Installments Installment due untill > 90 days (R$ thousand) > 90 days (%) > 180 days (R$ thousand) > 180 days (%) 397,415 80,267 1, % % Installments Overdue from March 08 to March 09 (Production Issue) - Position R$ thousand Overdue from June 08 to June 09 (Production Issue) - Position R$ thousand Deliquency Installment due untill > 90 days (R$ thousand) > 90 days (%) Deliquency > 180 days (R$ thousand) > 180 days (%) 407,768 72,437 2, % % 8

9 Payroll-Deduction Loans Payroll-deduction loans accounted for 26.4% of the consumer-finance portfolio in 3Q09 (including consumer credit), reaching R$306.5 mn, decreasing by 9.6% from R$338.9 mn in 3Q08 and increasing by 4.9% from R$292.9 mn in 2Q09. The charts below present data for public-sector payroll loans, the main personal loan product: Origination Volume (R$MN) Origination Volume Breakdown 42.9% - Social Security 25.0% - State Govt % - Army Employees 5.7% - Federal Govt 3.0% - City Govt Funding Significant increase in time deposits: +12.1% (3Q09/2Q09) DPGE: +43.9% (3Q09/2Q09) to lengthen funding and match assets and liabilities The total funding of R$3.1 bn in 3Q09 represented contraction of 3.4% in relation to 2Q09, which resulted from the impact of Brazilian real appreciation on dollar-denominated operations in the line Foreign Borrowings and Onlending Obligations and the gradual settlement of loan operations, primarily in the consumer-finance segment, in the line Credit Assignments registered under Central Bank Resolution Meanwhile, the 22.3% reduction in relation to 3Q08 reflects the high volume of withdrawals of time deposits due to the global crisis in The Bank registered a balance of R$295.3 mn in operations involving the Deposits with Special Guarantees (DPGE), with an average term of 852 days, increasing by 43.9% versus 2Q09. The issue of DPGEs corresponds to 9.5% of overall funding, and the Bank may issue another R$2.3 bn to reach its limit of R$2.6 bn. This operation allows for lengthening funding terms and maintaining the policy of matching assets and liabilities. Funding (R$ thousand) 3Q09/2Q09 3Q09/3Q08 Demand Deposits + Other Deposits 87,223 49,727 79, % -8.7% Time Deposits + Agribusiness Letters of Credit 2,018,308 1,101,744 1,234, % -38.8% Interbank Deposits 429, , , % -70.7% Open Market Funding 374,801 35,195 48, % -87.1% Foreign Borrowings and Onlending Obligations (*) 1,048, , , % -29.6% BNDES / FINAME Onlendings 62,430 73,458 81, % 31.2% Credit Assignments - 632, , % - Time Deposit with Special Guarantee ("DPGE") - 205, , % - TOTAL 4,020,623 3,232,944 3,122, % -22.3% (*) Includes foreing loans and onlendings, promissory notes, repo, linked notes and fixed rate notes. 9

10 Deposits (R$ mn) 2, , ,735.4 The total volume of deposits ended 3Q09 at R$1.7 bn, declining by 31.5% from R$2.5 bn in 3Q08 and increasing by 12.8% from R$1.5 bn in 2Q09. Deposits by type: Time deposits (including Agribusiness Letters of Credit): total of R$1.2 bn in 3Q09, accounting for 71.1% of total deposits in the quarter (79.6% in 3Q08 and 71.6% in 2Q09), contracting by 38.8% from R$2.0 bn in 3Q08 and increasing by 12.1% from R$ 1.1 bn in 2Q09. Interbank deposits: total of R$125.9 mn, accounting for 7.3% of total deposits (16.9% in 3Q08 and 11.8% in 2Q09), contracting by 70.7% from R$429.1 mn in 3Q08 and by 30.8% from R$181.9 mn in 2Q09. The Bank opted to not renew these deposits upon maturity. However, it maintains the credit lines open with its partners to use them as the portfolio grows. Demand deposits: accounting for 4.6% of total deposits (3.4% in 3Q08 and 3.2% in 2Q09), closed 3Q09 at R$79.7 mn, down 8.7% from R$87.2 mn in 3Q08 and increasing by 60.2% from R$49.7 mn in 2Q09. Deposits with Special Guarantees (DPGE): this type of credit was launched in 2Q09, and in 3Q09 accounted for 17.0% of total deposits (13.3% in 2Q09), totaling R$295.3 mn and increasing by 43.9% from R$205.1 mn in 2Q09. The management of long-term funding operations and the maintenance of adequate maturities of assets and liabilities are shown in the chart below, which reflects the Bank s results in 3Q09. Assets and liabilities management (R$ mn) 10

11 Liquidity (R$ mn) In 3Q09, Sofisa maintained a comfortable liquidity situation, holding a cash position of R$706.0 mn, which tends to gradually decline as the loan portfolio expands. The Bank considers a cash position of R$500.0 mn enough to meet deposit maturities and loan disbursements over time. Free Cash (*) % Cash Reserve Ratio (**) (*) Cash and cash equivalents + short-term investments + securities - open market funding - rural product note - subordinated quotas of investment funds incredit rights 70% 60% 50% 40% 30% 20% 10% 0% 53.1% 40.7% 29.4% (**) Free Cash / Total Deposits Financial Highlights Net Income Weak performance reflects portfolio contraction and other impacts from the international crisis More favorable results to stem from portfolio growth and dilution of funding costs and NPL provisions Banco Sofisa ended 3Q09 with net income in the year to September of R$2.0 mn and a net loss in the quarter of R$10.7 mn. In general, the weak performance observed is mainly due to the strong contraction in the SME portfolio, as a result of the decision taken by the Bank in response to the international financial crisis. The portfolio contraction (R$545.3 mn 3Q09/3Q08 and R$693.7 mn 2Q09/3Q08) led to a decline in revenue of approximately R$50.0 mn/year. However, other factors also contributed to the lower result: a) long-term credit assignment operations conducted in 4Q08, when interest rates were higher due to the increased market volatility in that period (these assignments were performed with no advance recognition of results Central Bank Resolution 3533), creating an increase in funding costs of R$18.0 mn versus 9M08; and b) conjunctural increase in expenses with provisions for non-performing loans for operations originated by the Bank to approximately R$24.0 mn higher than in 9M08. It is important to bear in mind that the Bank has not changed its conservative credit approval philosophy, maintaining a high share of its operations collaterized. For this reason it is resuming portfolio growth gradually, which means loans volume are still below the Bank's effective capacity. The Bank expects better results in the coming quarters as a result of the scale gains provided by our larger SME portfolio, the return of provisions for non-performing loans to historical levels and the lower impact from the cost of loan assignments as the respective operations are settled upon maturity. 11

12 Gross Income from Financial Intermediation Gross Income from Financial Intermediation totaled R$48.5 mn in 3Q09, down 12.8% and 27.0% in relation to 2Q09 and 3Q08, respectively. The reduction in 3Q09 in relation to the same period last year reflects the lower revenue from loan operations following the contraction in the portfolio as of 4Q08, the higher funding costs because of the assignments carried out in 4Q08 and the higher provisions for non-performing loans. Administrative Expenses (R$ mn) Total administrative expenses came to R$33.4 mn in 3Q09, remaining practically stable compared with the same expenses posted in 2Q09 (+0.4%). 43.4% 38.4% 43.2% Personnel Expenses Administrative Expenses Efficiency Performance Return on Average Equity (ROAE) The weak performance of this indicator in the quarter (-2.3% in 3Q09) reflects the weak performance in the quarter and the other factors described above resulting from the global crisis. It is important to note once the Bank achieves its leverage target, combined with the gradual reduction in the negative impacts from assignment costs, which should be practically neutralized by 2H10, and the downward trend in delinquency, Sofisa expects to substantially increase its level of returns already by the start of the second half of Net Interest Margin (1) Net interest margin calculated on the revenue-generating assets of Banco Sofisa came to 9.8% in 3Q09, practically stable versus the 10.1% posted in 2Q09 and up 1.9 p.p. in relation to 3Q08. Efficiency Ratio (2) Banco Sofisa s efficiency ratio ended the third quarter at 43.2%, up by 4.8 p.p. in relation to 2Q09 and down by 0.2 p.p. in relation to 3Q08. The improvement over 3Q08 reflects the higher margins of loan operations, while the deterioration versus 2Q09 is explained by the lower Gross Income from Financial Intermediation mentioned above. (1) Net Interest Margin = Annualized gross income from financial intermediation + Provision for NPL / Average of revenue-generating assets. For management purposes, the calculation considers the FX translation of shareholders equity from subsidiaries as well as the adjustments from accounting write-offs impacting the provisions for NPL. / (2) Efficiency Ratio = (Personnel expenses + Other administrative expenses) / [(Gross income from financial intermediation + Provision for doubtful accounts + Revenue from services) + (Other operating revenue Other operating expenses)]. For management purposes, the calculation considers the FX translation of shareholders equity from subsidiaries as well as the adjustments from accounting write-offs impacting the provisions for NPL. 12

13 Balance Sheet Total Assets (R$ mn) Banco Sofisa s total assets ended 3Q09 at R$4.42 bn, contracting by 13.2% from R$5.09 bn at the end of 3Q08 and remaining practically stable in relation to R$4.47 bn at the end of 2Q09 (-1.2%). The reduction in comparison to 3Q08 reflects the contraction in loan operations as of 4Q08, corresponding to 62.7% of total assets in 3Q09 (59.2% in 2Q09 and 65.8% in 3Q08), partially offset by the increase in short-term interbank investments due to current market conditions (from R$119.4 thousand in 3Q08 to R$442.2 thousand in 3Q09). 3Q09 5, , , % - Loan Operations 13.6% - Securities 10.0% - Interfinancial 13.7% - Others Shareholders Equity (R$ mn) x x 3.4x Banco Sofisa s shareholders' equity stood at R$842.5 mn in 3Q09, representing reductions of 2.2% versus R$861.1 mn in 3Q08 and 1.0% from R$851.0 mn in 2Q09. The slight variation in shareholders equity in the periods mentioned reflects the purchases of Sofisa s stocks from January 2008 to March 2009, which totaled 13,905,400 preferred shares, made under the scope of the 5 stock buyback programs that have already been concluded. Shareholders' Equity Leverage As a result of the cancellation of shares held in treasury, with no capital reduction, increased Sofisa s book value per share from R$5.83 in 3Q08 to R$6.12 in 3Q09 (R$5.60 in 2Q08 to R$6.20 in 2Q09), effectively creating value for shareholders. (*) Loan Portfolio / Shareholders Equity Basel Ratio Banco Sofisa ended the third quarter with a Basel ratio of 19.4%, down 2.4 p.p. and up 1.3 p.p. in relation to 3Q08 and 2Q09, respectively. The Bank's ratio exceeds the requirements of the Central Bank of Brazil, which requires a capital adequacy ratio equal to or above 11% of risk-weighted assets. 17.0% 20.7% 19.4% The Bank believes that by achieving its ideal level of 5.0x leverage (loan-toequity ratio) by 2011, the projected adequate Basel ratio for its operations would be approximately 15.0%. 13

14 3Q09 Conference Call November 12, 2009 Portuguese English 10:00 a.m. (BR) 7:00 a.m. (US EST) 12:00 p.m. (BR) 9:00 a.m. (US EST) Dial-in: +55 (11) Dial-in: +1 (973) Code: Banco Sofisa Code: Replay for one week: +55 (11) Replay for one week: +1 (706)

15 Annex I Consolidated Balance Sheet Consolidated Balance Sheet ASSETS 3Q09 % of Total 2Q09 % of Total 3Q08 (In thousand of reais, except percentages) % of Total 3Q09/2Q09 (% Change) (% change) 3Q09/3Q08 (% Change) Cash and cash equivalents... 10, % 8, % 15, % 23.0% -28.2% Interbank investments , % 555, % 119, % -20.9% 267.7% Securities and derivatives , % 278, % 252, % -19.1% -10.7% Interbank accounts... 21, % 8, % 29, % 136.2% -28.6% Lending operations... 1,357, % 1,222, % 1,764, % 11.0% -23.1% Leasing operations , % 226, % 215, % -1.0% 4.0% Other credits , % 261, % 225, % -29.2% -17.8% Other assets... 51, % 39, % 24, % 31.7% 112.2% Current assets... 2,514, % 2,601, % 2,646, % -3.4% -5.0%. Interbank investments... 3, % - 0.0% - 0.0% 0.0% - Securities and derivatives , % 399, % 867, % -5.5% -56.4% Lending operations , % 818, % 945, % 2.0% -11.8% Leasing operations , % 379, % 426, % -5.4% -16.0% Other credits , % 123, % 53, % 59.1% 266.4% Other assets... 66, % 81, % 83, % -18.0% -19.9% Long-term assets... 1,837, % 1,802, % 2,377, % 2.0% -22.7% Investiments... 4, % 5, % 4, % -23.6% 5.6% Property and equipment... 56, % 55, % 62, % 0.7% -9.6% Deferred... 5, % 6, % 2, % -5.8% 93.1% Intangible... 2, % 1, % - 0.0% 28.9% - Permanent assets... 68, % 69, % 69, % -1.2% -1.0% Total assets... 4,420, % 4,473, % 5,092, % -1.2% -13.2%. LIABILITIES AND SHAREHOLDERS' EQUITY. Deposits... 1,130, % 1,033, % 1,897, % 9.4% -40.4% Money market funding... 48, % 35, % 374, % 37.2% -87.1% Funds from acceptance and issuance of securities... 40, % 54, % 72, % -25.4% - Interbank and Interdepartmental accounts... 2, % 8, % 1, % -72.9% 96.8% Borrowings... 50, % 71, % 102, % -28.6% -50.2% Onlendings... 45, % 133, % 114, % -65.7% -60.1% Derivatives... 6, % 11, % 8, % -40.8% -20.1% Other payables , % 423, % 334, % 51.1% 91.5% Current liabilities... 1,965, % 1,771, % 2,905, % 10.9% -32.4% Deposits , % 450, % 564, % 25.2% 0.0% Funds from acceptance and issuance of securities , % 213, % 236, % 0.0% - Onlendings , % 476, % 408, % -7.9% 7.5% Derivatives... 28, % 22, % 6, % 27.2% 346.9% Other payables , % 686, % 110, % -43.9% 248.8% Long-term liabilities... 1,611, % 1,849, % 1,325, % -12.9% 21.5% Deferred income... 1, % % % 215.6% % Minority interest % 8 0.0% % % Shareholders' equity , % 851, % 861, % -1.0% -2.2% Total liabilities and Shareholders' Equity... 4,420, % 4,473, % 5,092, % -1.2% -13.2% 15

16 Annex II Consolidated Income Statement Consolidated Income Statement 3Q09 2Q09 3Q09/2Q09 (% Change) 3Q08 3Q09/3Q08 (% Change) (In thousand of reais, except percentages) /2008 (% Change) Lending operations ,805 87, % 155, % 543, , % Leasing operations... 98,585 92, % 88, % 334,706 68, % Securities operations... 36,629 38, % 44, % 156, , % Derivatives... (28,317) (87,526) -67.6% 72, % 169,782 (23,905) 810.2% Foreign-exchange operations... 37, , % ,025 20, % Compulsory investments , % 8,387 3, % Sales operations or transfer of financial assets... 2,184 4, % % Income from financial intermediation , , % 363, % 1,222, , % Funding operations... (43,102) (38,102) 13.1% (109,861) -60.8% (352,302) (221,118) 59.3% Borrowing and onlending operations... (10,646) (9,849) 8.1% (78,329) -86.4% (290,250) (5,870) % Leasing operations... (70,490) (67,934) 3.8% (61,247) 15.1% (229,005) (39,908) 473.8% Foreign exchange operations (33,627) % (15,795) - 0.0% Sales operations or transfer of financial assets... (39,237) (41,236) -4.8% % Allowance for loan losses... (35,325) (37,887) -6.8% (14,374) 145.8% (37,594) (13,790) 172.6% Expenses on financial intermediation... (198,800) (195,008) 1.9% (297,438) -33.2% (924,946) (280,686) 229.5% Gross income from financial intermediation... 48,455 55, % 66, % 297, , % Income from services provided... 9,798 9, % 2, % 28,633 7, % Personnel expenses... (16,921) (17,860) -5.3% (15,548) 8.8% (81,229) (52,476) 54.8% Other administrative expenses... (16,522) (15,452) 6.9% (12,179) 35.7% (55,929) (48,163) 16.1% Tax expenses... (4,401) (3,784) 16.3% (3,961) 11.1% (12,700) (7,263) 74.9% Equity in results of controlled... (3,618) (6,922) -47.7% 1, % 9,159 (6,486) % Other operating income... 2, % % 4,852 10, % Other operating expenses... (23,882) (20,167) 18.4% (19,964) 19.6% (76,064) (59,454) 27.9% Other operating income (expenses)... (53,357) (54,144) -1.5% (46,630) 14.4% (183,278) (156,621) 17.0% Income from operations... (4,902) 1, % 19, % 114,460 83, % Non-operating result... (2,087) (743) 180.9% 1, % 3,079 (71) - Income before taxes and minority interest... (6,989) % 21, % 117,539 83, % Income and social contribution taxes... (1,971) 1, % 3, % (7,393) (5,459) 35.4% Provision for Income and social contribution taxes... (18,498) (19,744) -6.3% (14,661) 26.2% (70,516) (20,269) 247.9% Deferred taxes... 16,527 21, % 18, % 63,123 14, % Employees profit sharing... (1,778) - - (3,872) -54.1% (17,846) (1,931) 824.2% Minority interest in controlled companies (32) % (99) (101) -2.0% Net income... (10,738) 2, % 21, % 92,201 75, % 16

17 Annex III Consolidated Cash Flow Statement Consolidated Cash Flow Statement 3Q09 2Q (In thousand of reais, except percentages) Adjusted Net Income... 29,474 (61,056) 131,054 89,970 Net Income... (10,738) 2,049 92,201 75,634 Provision for Loan Losses... 35,325 (75,619) 37,594 13,790 Depreciation and Amortization... 1,269 1,404 4,658 5,748 Equity in the earnings of subsidiaries... 3,618 6, Previous Years Adjustment ,188 (3,399) (5,202) Changes in Assets and Obligations... (312,942) 202, ,737 (1,683,905) (Increase) Decrease in Securities and Derivatives Financial Instruments... (53,957) 214,104 (141,698) (85,976) (Increase) Decrease in Interbank Accounts... (18,348) 4,843 87,637 (97,104) (Increase) Decrease in Credit, Leasing and Other Credit Operations... (163,022) 15,502 (166,232) (1,681,262) (Increase) Decrease in Other Credit and Other Assets... 5,284 8,465 (307,424) (159,302) (Decrease) Increase in Other Obligations... (84,007) (40,127) 795, ,274 (Decrease) Increase in Deferred Income... 1, (530) 465 OPERATING ACTIVITIES - Net Cash Generated (Used)... (283,468) 141, ,791 (1,593,935) Sale of stock exchange membership certificate... - (211) - - PP&E Disposal ,744 48, Dividends received from subsidiaries and associated companies Investments... - (7,813) (53) (3,293) PP&E Acquisition... (1,756) (5,335) (69,072) (8,066) Deferred Aplications (7,292) (750) Intangible Aplications... (526) (2,776) - - Change in Minority Shareholders' Participation... (8) 4 (67) (3,835) INVESTMENT ACTIVITIES - Net Cash Generated (Used)... (1,894) (7,387) (28,269) (15,699) Increase (Decrease) in Deposits , ,433 (1,211,370) 1,290,142 Increase (Decrease) in Money Market Funding... 31,681 (16,500) (4,478) (115,284) Increase (Decrease) in Foreign Exchanges Funding ,360 (65,356) Increase (Decrease) in Borrowing and Onlending Obligations... (164,604) (157,442) 867, ,464 Increase (Decrease) in Derivative Financial Instruments (29,846) 43,526 Increase (Decrease) in Capital , ,336 Proposed Dividends (4,653) (2,197) Interest on own Capital payed and/or provisioned... - (3,000) (41,000) (18,700) Shares Buyback (29,560) (11,455) FINANCING ACTIVITIES - Net Cash Generated (Used)... 77,778 75,491 (395,484) 1,768,476 CASH AND CASH EQUIVALENTS INCREASE (DECREASE)... (207,584) 210,010 (24,962) 158,842 Cash and Cash Equivalents at the Beginning of the Period , , , ,772 Cash and Cash Equivalents at the End of the Period , , , ,614 CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE)... (207,584) 210,010 (24,962) 158,842 17