Institutional Presentation. 4Q07 Results

Transcription

1 Institutional Presentation 4Q07 Results

2 AGENDA About Banco Daycoval Page 3 Initial Public Offering (IPO) Page 8 Our Businesses Model Page 12 Results Page 19 Corporate Governance, IR, Awards and Recent News Page 40 Annexes Page 48 2

3 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR, Awards and Recent News Annexes 3

4 About Banco Daycoval Traditional Bank, with more than 40 years of experience Capital Structure reflecting the Bank s conservative approach (Basel Index always above 20%, overcoming the market s average) Excellent quality of the Loan Portfolio Family owned Bank, with professional management team committed to deliver results 4

5 Our History Commencement of activities at Daycoval DTVM in Brazil Beginning of commercial banking portfolio First branch outside São Paulo: Campinas Creation of the Daycoval Asset Management and beginning of Daycred s payroll-deduction credit activities IPO In the Lebanon, Salim A. Dayan launches the Maison Bancaire Beginning of operations of Banco Daycoval s 1st branch Beginning of trade finance operations First branch outside the State of São Paulo New head offices located at Avenida Paulista São Paulo

6 Historical Growth Shareholders Equity and Credit Portfolio: strong growth over the last 7 years, even during periods of crises Shareholders Equity R$ Million 1,518 Credit Portfolio R$ Million 3, % CAGR 48.7% CAGR 1, * Including the impact of the IPO Employees Back-office = 72% Front-office = 28%

7 Nationwide Presence Network of branches Nationwide coverage through 25 branches Manaus Belém Fortaleza Recife Maceió Salvador Brasília Goiânia Cuiabá Vitória Belo Horizonte São Paulo (4) Guarulhos Ribeirão Preto Campinas São Bernardo do Campo Rio de Janeiro Curitiba Londrina Florianópolis Porto Alegre Caxias do Sul 7

8 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR, Awards and Recent News Annexes 8

9 Motivation for the IPO Maintain the growth pace and participate in the Brazil s s strong credit expansion Capitalization to take advantage of the excellent perspective in the financial segment for the next years Interest Rates (SELIC) - % 35% Credit s Volume in Brazil R$ Billion 30% 29.00% % 25% 22,2 CAGR % 15% 15.80% 19.00% 19.10% 16.30% 17.80% 18.10% 13.20% 11.25% Source: Brazilian Central Bank Brazil Credit as a % of GDP % 10% 5% 11.25% 10.25% 9.00% 8.50% Growth Potential 125% 0% E 08E 09E 10E 11E 26% 27% 28% 31% 35% 55% Source: Brazilian Central Bank and Focus Report Notes: 1 Average of China, Thailand, Chile, Bolivia, Uruguay, Philippines, India, Argentine, Mexico and Russia in Average of Switzerland, USA, England, Germany, Denmark, Japan and Canada in Source: Economics National Research Center Emergent Market 1 Mature Market 2 9

10 Offering Summary June 2007 Offering Structure Initial Public Offering in Brazil, with international placement efforts under Rules 144A/ REG S Capital Structure (post IPO) Shares Offered 64.2 million preferred shares with 100% Tag Along rights 29% under Free Float 7% 29% Price and offering Size R$ / share Total of R$ 1.1 billion 86% primary, 14% secondary no pre-finance operation 64% Investors Book runners Foreigners (70%) and Local (30%) Daycoval Holding Financeira S/A Controlling Shareholders (Family) Free Float 10

11 IPO Strategy To grow with the same focus and proven business model The Bank will increase its network by opening new branches all over Brazil Investments in human resources by hiring new commercial managers Launch new products 11

12 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR, Awards and Recent News Annexes 12

13 Our Products Wide-range of products to meet our clients needs Middle Market Working Capital, Trade Finance, Receivables, others DayCred (Retail) Payroll-deductions, Auto-loans Asset Management Investiments 13

14 Our Businesses Model Focus on Middle Market Middle Market: significant share in Brazil s corporate loans and still expanding Credit to Companies by Size - December/07 Corporate Loans with volume up to R$ 10 million R$ Billion Under R$100 thousand R$ 192 bi 18,0% R$ 92 bi R$ 224 bi % % 16% CAGR % % Over R$10 million 37,9% From R$100 thousand to R$10 million 44,1% 29% 31% 30% 30% % % % 31% 2007(*) 30% Daycoval s s market share in the middle market segment is about 1.6% Under R$ 100 thousand From R$ 100 thousand to R$ 10 million (*) until December 2007 Source: Brazilian Central Bank 14

15 Our Businesses Model Focus on Middle Market Middle Market Competition Environment: SME Loan Portfolio (R$ MM)* 2007 % of the Total 6 Biggest Banks ,0% 8 Biggest Banks ,1% 6 Biggest Mid Size Banks** ,6% 10 Biggest Mid Size Banks** ,9% Daycoval ,5% Total % * Source: Itaú Corretora (Based on Sep 07 figures) ** Includes Daycoval 15

16 Our Businesses Model Positioning as a Bank that makes the difference Being an important alternative for the middle market companies Strong relationship with clients, involving all the hierarchic levels, including the top management Agility in the decision taking process Wide-range mix and constant control over guarantees (receivables, warrants, assets, etc.) 16

17 Our Businesses Model Focus on operations with higher returns Front-officers compensation linked to their performance Proprietary information system for the Middle Market credit analysis and monitoring Daycoval does not do credit assignments. The front office does not approve credit lines - all credit lines is granted by the back office Productivity gains through the increase of the front and back-offices team 17

18 Our Businesses Model Funding Diversification of funding sources Focus on extending average maturity and reducing rates Conservative approach (funding average term above loans average term) Credit Portfolio R$ Million 4,000 3,500 3,000 Credit Portfolio Funding 2,500 2,000 1,500 1,

19 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR, Awards and Recent News Annexes 19

20 Net Income Net income of 2007 was 129% higher than 2006 R$ Million % CAGR 37% % (*) 2005(*) 2006(*) 9M07(**) 2007(**) 4Q06(*) 4Q07(**) *Adjusted due to change in accounting practice **Ex-IPO Expenses 20

21 Return on Average Equity 1 ROAE Annualized 2007 ROAE higher than 23%, even considering the capital increase due to the IPO ROAE % -p.a (*) 2005(*) 2006(*) 9M07(**) 2007(**) 4Q06(*) 3Q07(**) 4Q07 * Adjusted due to change in accounting practice ** Ex-IPO Expenses 1 ROAE: Return on Average Net Equity, i.e., the relationship between net income in a specific period divided by average shareholders equity. 21

22 Net Interest Margin 1 NIM Annualized NIM remained above 12 %, even after increase in the average remunerated assets NIM Annualized - % -p.a M Q06 4Q07 1 Net Interest Margin (NIM): gross income from financial intermediation excluding the effects from the provision for loan losses, plus the income from foreign exchange variation on funding operations as a percentage of the average balance of remunerated assets. 22

23 Total Loan Portfolio Growth of 112% during the last 12 months and of 23% compared to last quarter R$ Million 52% CAGR 23% 3, % 3,476 2,826 1,639 1, M Q06 4Q07 23

24 Total Loan Portfolio Confirming strategy of diversify the loan portfolio: 3Q07 Loan Portfolio: Middle Market + Trade Finance = 78%; Retail = 22% 4Q07 Loan Portfolio: Middle Market + Trade Finance = 72%; Retail = 28% 3Q07 - % Total Loan Portfolio Middle Market / Others Trade Finance Middle Market / Others 72 Payroll Auto Loans Autos 4Q07 - % Total Loan Portfolio Middle Market / Others Trade Finance Payroll Payroll Auto Loans 24

25 Middle Market Clients with gross revenues between R$ 8 MM and R$ 300 MM Growth supported by new branches and increase of front-office team during the year R$ Million 37% CAGR 12% 2,007 2,256 73% 2,256 1,303 1, M Q06 4Q07 25

26 Middle Market December 2007 Commercial Portfolio 1 63% of the clients with a volume below R$ 500,000 93% of the clients have operations with a volume below R$ 4 MM Less than 2% of the clients with a volume above R$ 10 MM Final Balance R$ MM Per Per Volume Clients < 500, % 62.5% 0.5 to 1 million 7.3% 11.7% 1 to 2 million 12.6% 10.4% 2 to 3 million 11.5% 5.3% 3 to 4 million 8.3% 2.8% 4 to 5 million 6.9% 1.8% 5 to 10 million 22.7% 3.7% > 10 million 24.7% 1.8% Total 100.0% 1 Excluding FIDC. 26

27 Middle Market December 2007 Receivables represents 35% of the total guarantees of the middle market segment Mix of Guarantees - % of total guarantees of the middle market portfolio Types of receivables of the total guarantees 27 Receivables Vehicles / Real Estate Agricultural Products Financial Investments Others Equipaments / Foreign Goods Total = 35% Bank Domicile = 17% Discounted Trade Notes = 16% Collection Abroad = 2% 27

28 Trade Finance Increase of 214%, compared to 2006, in trade finance operations to middle market companies R$ Million % % CAGR % M Q06 4Q07 28

29 Daycred Payroll-Deduction Loans Growth of 130% during last 12 months R$ Million % CAGR % 130% M Q06 4Q07 29

30 Daycred Payroll-Deduction Loans Quarterly origination totaled R$ 201 million, increase of 35% in relation to 3Q07 Total Portfolio 4Q07 R$ 543 MM Total Origination 4Q07 R$ 201 MM 18% 26% 11% 6% 1% 38% INSS Federal Government Army Municipalities Others Private 27% 13% 7% 2% 22% 29% INSS Federal Government Army Municipalities Others Private Total Origination 3Q07 = R$ 149 MM 4Q07 vs. 3Q07 = +35% 30

31 Daycred Auto Loans Increase of 89% in the auto loans portfolio compared to last quarter, reaching R$ 438 million in the 4Q07 R$ Million % 11% 14% 113% % % 49 22% 76% 121% 109 6% 22% 72% 17% 73% 75% Q07 2Q07 3Q Small Vehicles Motorcycles Heavy-duty Vehicles 31

32 Daycred Auto Loans Origination totaled R$ 221 million in the quarter, growth of 69% in relation to 3Q07 Total Origination 4Q07 R$ 221 MM 12% 13% Small Vehicles Motorcycles Heavy-duty Vehicle Total Origination 2007 = R$ 443 MM Vehicles Average Age = 10 years Number of Agreements 2007 = 48,700 75% Number of Vehicles thousand units Average Ticket R$ thousand Average Term adjusted by Risk Months Q07 4Q07 3Q07 4Q07 3Q07 4Q07 32

33 Funding Total R$ 3.0 billion in line with the strategy of diversify our funding sources R$ Million 15% 8% 6% Time Deposits Foreign Borrowings 7% Borrowings and onlendings 41% CAGR 22% 2,977 64% Interfin. Deposits Deposits + Others 2,977 2,448 59% 1,868 1,868 1, M Q06 4Q07 33

34 Funding: Liabilities December 2007 Amount - R$ MM Time Deposits / DI Time Deposits 1,908.1 Total balance - R$ MM 2,141.2 Interbank Deposits Average maturity 263 days Foreing Borrowings *CDI = interbank rate Other Deposits Borrowing and onlending Total of Funding 2,977.3 Number of Clients 712 Asset Management 40% Corporate 22% Pension Funds 17% Individuals 11% Banks 10% 34

35 Ratings Fitch upgraded local rating, attributing a positive perspective Agency Ratings Last Update A : National Scale BB- : Global Scale A : Positive Perspective BB- : Global Scale Jun-07 Dec-07 A+ : Stable Perspective Mar-07 Low Risk - mid term Index no alert gaps Sep-07 35

36 Quality of Loan Losses 1 Maintenance of an excellent quality of the loan portfolio. Roughly 97% has a credit rating from AA to C LLP / Outstanding Operations > 60 days Total Loan Portfolio (unconsolidated) R$ Million 4Q % 4Q % 3,288 4Q07 Portfolio R$ MM % Provision R$ MM 2,720 AA 2 0.1% - A 1, % 7 2.9% % 981 1, % 1, % 2, % 2.0% 2.3% B 1, % 19 C % 3 D % 2 E % 6 F % 7 G 6 0.2% 4 H % Q07 1H07 9M Provisions as % of Loan Portfolio Total 3, % 75 (1) Does not include FIDC 36

37 Quality of Loan Portfolio Breakdown per segment Loan Loss Provision (LLP) balance of the auto loans increased due to strong growth of the portfolio during the year Middle Market + Trade Finance + Others Payroll Auto Loans 4Q07 Portfolio R$ MM % 4Q07 Portfolio R$ MM % 4Q07 Portfolio R$ MM % AA - C 2, % D - G % H % Total 2, % AA - C % D - G 8 1.5% H 8 1.4% Total % AA - C % D - G % H 2 0.5% Total % LLP Final Balance 4Q07 2.3% LLP Final Balance 4Q07 2.4% LLP Final Balance 4Q07 2.1% LLP Final Balance 3Q07 2.0% LLP Final Balance 3Q07 2.5% LLP Final Balance 3Q07 1.5% 37

38 Efficiency Ratio 1 Reduction of 4.2 p.p. in the last 12 months due to a rigorous cost management allied to greater income generation (1) Ex-IPO Expenses (R$ 1.4 million in the 3Q07) Efficiency Ratio - % 4Q07 4Q06 Chg.% 3Q07 Chg.% Personnel Expenses (16.4) (11.4) 43.9% (13.8) 18.8% Other Administrative Expenses (1) (15.2) (13.1) 16.0% (12.0) 26.7% Comission Expense Total (12.5) (9.0) 38.9% (7.2) 73.6% 27.3% -4.2 pp 23.1% 28.7% -2.4 pp 26.3% 2006(*) 2007(**) 4Q06(*) 4Q07 * Adjusted due to change in accounting practice ** Ex-IPO Expenses 1 Efficiency ratio is used by management to measure operating performance. 38

39 Shareholders' Equity and Basel Index (BIS) 1 High level of capitalization and low leverage was remained Shareholders Equity R$ Million BIS % Q06 2Q07 3Q07 4Q07 4Q06 2Q07 3Q07 4Q07 IPO Impact 1 Measure degree of risk of the asset structure of the Bank, as defined in the Basel Agreement 39

40 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR, Awards and Recent News Annexes 40

41 High Standards of Corporate Governance Board of Directors 2 independents 100% Tag Along (PN shares) Ethic and Conduct Manual Executive Committees Dividends Investor Relations Market Maker Professional Executives 15 seniors executives in charge of all key areas of the bank Remuneration Policy Stock option plan: Under implementation Distribution results plan: All managers are enable 41

42 Investor Relations and Share s Performance IR 4Q07 main achievements: Holding of the first Annual Analyst Meeting; First non-deal roadshow after the IPO; Attendance in 2 local and 2 international conferences; Creation and approval of the Securities Trade Policy; Held more than 40 meetings and answered about 160 calls. 8 Official Analysts Coverage's Share s Performance: December Preferred Shares (million) Share Price (DAYC4) (R$/share) Book Value (R$/share) 6.82 Avg. Daily Traded Vol. 4Q07 (R$ million) 7.92 Market Capitalization (R$ billion)

43 Acknowledgments Awards: The best bank focused on middle market Gazeta Mercantil & Austin Rating FGV & Conjuntura Econômica

44 Recent Regulatory Changes Recent changes related to the regulatory environment of the Brazilian Banking System 1) Taxes 1.1) Provisional Measure 413/08, January 3, 2008: Increase of the CSLL (Social Contribution on Net Income) rate for the financial sector. 1.2) Decree 6,399, January 3, 2008: amends the rates of Tax on Loan, Exchange and Insurance Operations, or related to Securities - Taxes on Financial Operations (IOF). 2) Payroll Loans 2.1) Normative Ruling 1, January 7, 2008: change the Normative Ruling 121, 07/01/2007 establishing procedures for payroll loans regarding deductions via discounts/retantion to pay lons of the INSS (National Institute of Social Security) beneficiaries. 3) Bank Credit Certificates (CCB) 3.1) Minutes of the meeting CVM Joint Committee 03, January 22, 2008: Exemption of Registration of Public Offering of CCB. 4) Reserve Requirements 4.1) Circular 3,375 of Central Bank of Brazil, January 31, 2008: establishes reserve requirements and mandatory cash reserve over funds from inter-bank deposits of leasing companies. 5) Accounting Rules for the Sale of Financial Assets 5.1)Brazilian Monetary Council Resolution (CMN) 3,533, as of January 31, 2008: establishes procedures regarding indexing, accounting entry and disclosure of sales operations or transfer of financial assets. Impact Not Impact 44

45 Other Recent News and Outlook Payment of a Special Profit Sharing Plan for all employees Cayman branch authorization By-Laws changes Stock Options Scenario of credit demand and spreads Funding Strategy Commitment to migrate to Level 2 of Corporate Governance 45

46 Banco Daycoval as an investment opportunity Tradition tied to a solid capital structure Track record of growth and profitability Successful business model in a segment under strong expansion New products and expansion to new regions to enhance strategy s sustainability Scale gains, maintaining a high quality in the loan portfolio Corporate Governance aligned with the best market practices 46

47 Investor Relations Phone: +55 (11) / This report may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Banco Daycoval as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the middle-market segment, the ability of Banco Daycoval to obtain funding for its operations, and amendments to Central Bank regulations. The words believe, may, could, seek, estimate, continued, anticipate, plan, expect and other similar words have the objective of identifying estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report.

48 AGENDA About Banco Daycoval Initial Public Offering (IPO) Our Businesses Model Results Corporate Governance, IR and Acknowledgments Annexes 48

49 Breakdown of the Middle Market Credit Portfolio by Sectors SERASA December/2007 COMMERCE 21.6% INDUSTRY 39.4% Trading 3.4% Ind. and processing of Ethanol 6.5% Whosale trade of food and cereals 1.6% Indunstry of autoparties and acessories 1.6% Export and import of soybeans 1.2% Eletronics industry 1.5% Consumer 1.0% Ind. of Fertilizers and Chemical Fertilizers 1.3% Other 14.4% Other 28.5% SERVICE 28.2% FINANCIAL 5.4% Holding 3.1% Trasports 2.5% PRIMARY 2.5% Education 2.0% Cooperative 1.6% INDIVIDUALS 1.7% Real Estate 1.3% Consultancy 1.2% THIRD SECTOR 1.2% Medical Services 1.2% Others 15.3% 49

50 Middle Market: Assets Geographic Distribution December 2007 São Paulo 46.8% Santa Catarina 2.7% Minas Gerais 6.4% Goiás 2.2% Paraná 6.0% Alagoas 2.0% Espirito Santo 5.1% Ceará 1.6% Pernanbuco 5.0% Maranhão 1.5% Rio Grande do Sul 4.2% Distrito Federal 0.6% Rio de Janeiro 4.1% Sergipe 0.3% Amazonas 4.1% Pará 0.1% Bahia 3.8% Paraíba 0.1% Mato Grosso 3.2% Others States 0.2% 50

51 Balance Statement (considering the IPO) Assets 4Q07 4Q06 3Q07 Current Assets 4,980,703 2,395,956 4,040,627 Cash and cash equivalents 49,589 34,017 52,823 Interbank investments 1,994, ,614 1,455,326 Securities and derivatives 164, , ,354 Interbank accounts 73,816 6,198 42,286 Lending operations 2,422,579 1,316,677 2,031,750 Other receivables 218,193 69, ,728 Other assets 57, ,360 Long-Term Assets 1,562, ,355 1,335,052 Securities & Derivative Financial Instruments 585, , ,789 Lending operations 809, , ,660 Other receivables 109,519 47, ,887 Other assets 58,200-43,716 Permanent 13,026 11,672 12,770 Investiments Property and equipment in use 12,357 10,606 12,129 Deferred charges Total Assets 6,556,648 3,087,983 5,388,449 Amounts in R$ th Liabilities 4Q07 4Q06 3Q07 Current Liabilities 3,926,264 1,945,802 2,956,230 Deposits 1,834,198 1,021,835 1,334,806 Money market funding 1,514, , ,537 Funds from acceptance and issuance of securities 3, , ,611 Interbank accounts 1, ,943 Interbranch accounts 15,028 5,954 28,524 Borrowings and onlendings 344, , ,157 Derivatives 2,567 1,320 1,185 Other payables 211,183 83, ,467 Long-term Liabilities 1,101, , ,549 Deposits 497, , ,784 Resources from Acceptance and Securities Issued 211, , ,381 Borrowings and onlendings 220, ,070 Derivatives Other payables 171, , ,991 Deferred Income 11,394 1,992 7,198 Minority Interest Shareholders Equity 1,517, ,767 1,504,222 Capital Brazilian residents 1,359, ,561 1,359,143 Capital reserves Revaluation reserves 2,071 2,199 2,097 Profit reserves 160,838 32,252 15,985 Adjustment to fair value - securities and derivatives (4,613) 5, Retained earnings - 209, ,328 Total Liabilities 6,556,648 3,087,983 5,388,449 51

52 Quarterly Income Statement Amounts in R$ th 4Q07 4Q06 Chg. % 3Q07 Chg. % Income from Financial Intermediation 242, , % 215, % Lending Operation 187, , % 157, % Securities Operations 54,732 35, % 67, % Derivatives (10,306) (1,524) n.a. (14,747) -30.1% Foreign Exchange Operations 8,604 1,672 n.a. 4, % Compulsory Investments 1,102 - n.a % Expenses of Financial Intermediation (120,016) (74,430) 61.2% (101,233) 18.6% Funding Expenses (84,797) (60,036) 41.2% (81,477) 4.1% Borrowing and Onlendings (8,038) (3,127) 157.1% (5,090) 57.9% Loan Losses Provisions (27,181) (11,267) 141.2% (14,666) 85.3% Gross Profit from Financial Intermediation 122,086 76, % 113, % Other Operating Income (Expenses) (38,925) (40,563) -4.0% (24,043) 61.9% Income from Services Provided 3,932 3, % 2, % Personnel Expenses (16,475) (11,376) 44.8% (13,778) 19.6% Other Administrative Expenses (27,704) (22,133) 25.2% (20,642) 34.2% Tax Expenses (8,526) (4,821) 76.9% (7,767) 9.8% Other Operating Income 14,954 4, % 19, % Other Operating Expenses (5,106) (10,288) -50.4% (3,789) 34.8% Income from Operation 83,161 36, % 89, % Non-operating Expenses (90) (19) n.a. (403) n.a. Income before Taxes and Minority Interest 83,071 36, % 89, % Income and Social Contribution Taxes (8,450) (2,032) 315.8% (29,716) -71.6% Provision for Income Tax (7,447) (2,096) 255.3% (26,473) -71.9% Provision for Social Contribution Tax (2,401) 64 n.a. (8,942) -73.1% Deferred Taxes 1,398 - n.a. 5, % Profit-Sharing (12,454) - n.a. (2,057) n.a. Minority interest in the income (4) (1) n.a % Net Income 62,163 34, % 57, % Interest on Shareholders Equity (42,425) (28,400) 49.4% - n.a. Earnings per Share (R$) n.a % Number of Shares 222,633,512 3,321,652 n.a. 222,633,512 n.a. 52

53 Accumulated Income Statement Chg. % Amounts in R$ th Income from Financial Intermediation 775, , % Lending Operation 617, , % Securities Operations 205, , % Derivatives (68,202) (26,595) 156.4% Foreign Exchange Operations 18,511 12, % Compulsory Investments 2,561 - n.a. Expenses of Financial Intermediation (385,373) (246,510) 56.3% Funding Expenses (300,962) (199,136) 51.1% Borrowing and Onlendings (23,560) (11,780) 100.0% Loan Losses Provisions (60,851) (35,594) 71.0% Gross Profit from Financial Intermediation 390, , % Other Operating Income (Expenses) (117,466) (105,962) 10.9% Income from Services Provided 13,470 11, % Personnel Expenses (52,762) (35,397) 49.1% Other Administrative Expenses (110,072) (71,934) 53.0% Tax Expenses (28,508) (16,671) 71.0% Other Operating Income 78,756 30, % Other Operating Expenses (18,350) (24,622) -25.5% Income from Operation 272, , % Non-operating Expenses (581) (41) n.a. Income before Taxes and Minority Interest 272, , % Income and Social Contribution Taxes (51,666) (38,781) 33.2% Provision for Income Tax (62,376) (29,668) 110.2% Provision for Social Contribution Tax (20,754) (9,113) 127.7% Deferred Taxes 31,464 - n.a. Profit-Sharing (14,511) - n.a. Minority interest in the income (8) n.a. Net Income 206,017 85, % Interest on Shareholders Equity (55,791) (28,400) n.a. Earnings per Share (R$) n.a. Number of Shares 222,633,512 3,321,652 n.a. 53

54 Quarterly and Accumulated Income Statement (Ex- IPO) 4Q07 3Q Amounts in R$ th Income from Financial Intermediation 242, , ,622 Lending Operation 187, , ,512 Securities Operations 54,732 67, ,240 Derivatives (10,306) (14,747) (68,202) Foreign Exchange Operations 8,604 4,243 18,511 Compulsory Investments 1, ,561 Expenses of Financial Intermediation (120,016) (101,233) (385,373) Funding Expenses (84,797) (81,477) (300,962) Borrowing and Onlendings (8,038) (5,090) (23,560) Loan Losses Provisions (27,181) (14,666) (60,851) Gross Profit from Financial Intermediation 122, , ,249 Other Operating Income (Expenses) (38,925) (22,642) (79,637) Income from Services Provided 3,932 2,645 13,470 Personnel Expenses (16,475) (13,778) (52,762) Other Administrative Expenses (27,704) (19,241) (72,242) Tax Expenses (8,526) (7,767) (28,508) Other Operating Income 14,954 19,288 78,756 Other Operating Expenses (5,106) (3,789) (18,351) Income from Operation 83,161 91, ,612 Non-operating Expenses (90) (403) (580) Income before Taxes and Minority Interest 83,071 90, ,032 Income and Social Contribution Taxes (8,450) (30,192) (64,528) Provision for Income Tax (7,447) (26,823) (71,832) Provision for Social Contribution Tax (2,401) (9,068) (24,159) Deferred Taxes 1,398 5,699 31,463 Profit-Sharing (12,454) (2,057) (14,511) Minority interest in the income (4) (4) (8) Net Income 62,163 58, ,985 Interest on Shareholders Equity (42,425) - (55,791) Earnings per Share (R$) Number of Shares 222,633, ,633, ,633,512 54