Banco do Brasil S.A. Financial statements (in thousands of reais) BB-Consolidated

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1 Banco do Brasil S.A. Financial statements (in thousands of reais) B A L A N C E S H E E T A S S E T S CURRENT ASSETS ,651,392 68,891,387 Available funds... 11,898,312 6,250,139 Short-term interbank investments... (Note 4)... 17,189,999 7,338,901 Open market investments... 10,604,922 1,480,319 Interbank deposits... 6,585,077 5,858,582 Marketable securities (note 5)... 18,787,632 8,746,100 Own portfolio... 8,884,457 5,469,395 Subject to repurchase commitments... 9,313,939 3,134,550 Subject to negotiation and intermediation of securities Contracts and premiums to be placed Restricted deposits - Central Bank , ,253 Restricted to guarantees provided... 3, Derivative financial instruments , (Allowance for losses) (256,158) Interbank accounts... 18,154,635 10,089,239 Payments and receipts pending settlement... 4,569,330 2,775,834 Restricted deposits Central Bank deposits... 13,532,549 7,254,380 National Treasury - rural credit receivable... 14,730 30,049 SFH - National Housing Financing System... 1,263 1,171 Interbank onlendings... 13,862 5,840 Correspondent banks... 22,901 21,965 Interdepartmental accounts ,130 64,334 Internal transfers of funds ,130 64,334 Lending operations... 26,483,391 23,410,724 Lending operations Public sector... (Note 6b)... 1,750,604 1,636,092 Private sector...(note 6b)... 26,380,300 23,187,947 (Allowance for loan losses)......(note 6e)... (1,647,513) (1,413,315) Leasing operations... 56,227 3,858 Leases and subleases receivable Public sector... 21, Private sector , ,061 (Unearned income from leasing operations)... (184,114) (198,214) (Allowance for leasing losses)... (Note 6e)... (13,517) (5,989) Other receivables... 19,483,174 12,673,982 Receivables on guarantees honored... 10,577 37,580 Foreign exchange portfolio......(note 8a1)... 14,251,793 7,757,671 Income receivable , ,541 Negotiation and intermediation of securities , ,172 Specific credits.....(note 8a2) ,336 2,247,944 Special operations... 1,352 1,352 Sundry......(Note 8a3)... 4,886,118 2,330,451 (Allowance for other losses)......(note 6e)... (217,696) (199,729) Other assets , ,110 Investments Other assets (note 8b). 417, ,283 (Allowance for losses)... (202,441) (244,742) Prepaid expenses... 42,462 15,569

2 Banco do Brasil S.A. Financial statements (in thousands of reais) B A L A N C E S H E E T A S S E T S LONG-TERM RECEIVABLES... 96,214,656 84,045,469 Interbank investments (Note 4)... 3,926 13,686 Open market investments ,686 Interbank deposits... 3, Marketable securities..... (Note 5)... 56,982,792 43,566,839 Own portfolio... 8,659,457 4,433,255 Subject to repurchase commitments... 38,548,608 31,951,071 Restricted deposits - Central Bank... 9,015,308 6,239,298 Restricted to guarantees provided ,651 1,111,311 Derivative financial instruments... 8, (Allowance for losses) (168,096) Interbank accounts Restricted deposits National Treasury - rural credit receivable Lending operations... 24,758,856 16,731,773 Lending operations Public sector... (Note 6b).. 5,004,881 3,110,199 Private sector... (Note 6b).. 21,089,251 14,417,271 (Allowance for loan losses)......(note 6e)... (1,335,276) (795,697) Leasing operations... 31, ,192 Leases and subleases receivable Public sector... 7,107 34,469 Private sector , ,771 (Unearned income from leasing operations)... (188,959) (210,471) (Allowance for leasing losses).. (Note 6e)... (7,189) (6,577) -- Other receivables... 14,436,951 23,626,142 Receivables on guarantees honored... 17, Income receivable ,112 97,340 Negotiation and intermediation of securities ,170 Specific credits......(note 8a2). 210,336 4,998,219 Special operations... 2,709 2,449 Sundry......(Note 8a3). 14,251,477 18,831,814 (Allowance for other losses).....(note 6e)... (147,283) (309,831) Other assets Prepaid expenses

3 Banco do Brasil S.A. Financial statements (in thousands of reais) B A L A N C E S H E E T A S S E T S PERMANENT ASSETS... 4,546,451 4,287,691 Investments... 1,383,770 1,189,350 Investments in associated and subsidiary companies (Note 11). Local , ,878 Foreign , Other investments , ,250 (Provision for losses)... (338,134) (250,284) Property and equipment in use... 2,304,382 2,170,980 Land and buildings in use... 2,234,640 2,109,951 Other property and equipment in use... 2,774,039 2,905,258 (Accumulated depreciation)... (2,704,297) (2,844,229) Leased assets , ,517 Leased assets , ,949 (Accumulated depreciation)... (118,531) (95,432) Deferred charges , ,844 Organization and expansion costs , ,822 (Accumulated amortization)... (272,132) (529,978) TOTAL ,412, ,224,547 The accompanying notes are an integral part of these financial statements.

4 Banco do Brasil S.A. Financial statements (in thousands of reais) B A L A N C E S H E E T L I A B I L I T I E S/S T O C K H O L D E R S' E Q U I T Y CURRENT LIABILITIES ,177, ,042,262 Deposits......(Note 8c).. 85,728,342 64,925,624 Demand deposits... 21,390,582 15,439,655 Savings deposits... 26,279,150 21,052,799 Interbank deposits... 5,536,288 4,567,160 Time deposits... 32,522,322 23,866,010 Funds obtained in the open market... 45,282,105 30,817,124 Own portfolio... 40,076,867 29,853,666 Third-party portfolio... 5,205, ,458 Notes and securities , ,514 Debentures ,881 Foreign marketable securities , ,633 Interbank accounts... 3,604,606 3,007,400 Receipts and payments pending settlement... 3,603,184 3,006,678 Correspondent banks... 1, Interdepartmental accounts , ,269 Third-party funds in transit , ,030 Internal transfers of funds... 10,707 13,239 Borrowings... 4,594, ,546 Foreign borrowings... 4,594, ,546 Local onlendings - official institutions , ,018 National Treasury , ,948 BNDES - National Economic Development Bank... 1,176 1,270 CEF - Federal Savings and Loan Bank FINAME - National Industrial Financing Authority , ,100 Other institutions... 1,788 1,686 Derivative financial instruments...(note 5) , Derivative financial instruments.. 930, Other liabilities... 19,096,233 10,757,767 Collection of taxes and social contributions... 2,667, ,069 Foreign exchange portfolio......(note 8d1).. 6,726,190 3,437,707 Social and statutory... 31,787 4,616 Taxes and social security charges... 1,249, ,979 Negotiation and intermediation of securities , ,979 Financial and development funds...(note 8d2)... 32,002 67,734 Special operations... 2,338 2,350 Sundry......(Note 8d4)... 7,978,939 4,975,333 LONG-TERM LIABILITIES... 43,733,152 36,501,188

5 Banco do Brasil S.A. Financial statements (in thousands of reais) B A L A N C E S H E E T L I A B I L I T I E S/S T O C K H O L D E R S' E Q U I T Y Deposits......(Note 8c).. 10,509,253 8,955,583 Interbank deposits... 34, ,363 Time deposits... 10,474,429 8,785,220 Funds obtained in the open market ,367,987 3,699,478 Own portfolio ,307,015 3,699,478 Third-party portfolio... 60, Notes and securities , ,150 Foreign marketable securities , ,150 Borrowings... 10,292,475 7,535,585 Foreign Borrowings... 10,292,475 7,535,585 Local onlendings - official institutions... 4,548,034 5,062,816 National Treasury , ,743 BNDES - National Economic Development Bank... 2,466,531 2,027,780 CEF - Federal Savings and Loan Bank FINAME - National Industrial Financing Authority... 1,414,496 1,344,992 Other institutions ,221 1,420,222 Foreign onlendings... 15,743 2,041 Foreign onlendings... 15,743 2,041 Derivative financial instruments...(note 5)... 11, Derivative financial instruments... 11, Other liabilities... 13,265,524 10,444,535 Taxes and social security charges Negotiation and intermediation of securities... 3,973, ,183 Financial and development funds...(note 8d2)... 1,801,370 4,876,539 Sundry......(Note 8d4)... 7,491,114 4,763,778 DEFERRED INCOME... 91,896 42,992 Deferred income... 91,896 42,992 STOCKHOLDERS' EQUITY......(Note 9)... 8,410,380 8,638,105 Capital... 7,435,544 5,587,452 Local residents... 7,433,152 5,585,654 Foreign residents... 2,392 1,798 Capital reserves... 4,754 4,754 Revaluation reserves... 34,979 33,445 Revenue reserves... Adjustment to market value - Marketable Securities and 2,179,693 2,566,620 Derivatives (1,724,287) -- Retained earnings , ,834 (Treasury stocks)... (125,573) -- TOTAL ,412, ,224,547 The accompanying notes are an integral part of these financial statements.

6 Banco do Brasil S.A. Financial Statements (in thousands of reais) STATEMENT OF INCOME REVENUE FROM FINANCIAL INTERMEDIATION... 13,529,731 6,271,878 Lending operations... 4,003,153 2,834,758 Commercial leasing... 25,829 27,984 Marketable securities... 3,811,094 1,624,879 Result with financial instruments and derivatives... (587,831) -- Foreign exchange... 5,678,655 1,482,097 Compulsory investments , ,160 Expenses from financial intermediation... (12,527,311) (5,549,372) Deposits and funds obtained in the open market... (3,478,430) (2,753,714) Borrowings and onlendings... (8,214,755) (2,290,264) Provision for credit losses... (Note 6e)... (834,126) (505,394) GROSS PROFIT FROM FINANCIAL INTERMEDIATION... 1,002, ,506 OTHER OPERATING INCOME/EXPENSES... (100,673) (263,960) Services rendered... (Note 8e)... 1,117, ,990 Personnel expenses... (Note 8f)... (1,409,674) (1,335,914) Other administrative expenses... (Note 8g)... (1,060,970) (903,615) Taxes... (168,010) (158,193) Equity in the earnings of associated and subsidiary companies (Note 11) ,832, ,010 Other operating income...(note 8h) ,171 1,401,353 Other operating expenses... (Note 8i)... (784,119) (932,591) OPERATING PROFIT , ,546 NON-OPERATING INCOME...(Note 8j)... 27,759 33,321 Non-operating income 78, ,286 Non-operating expenses (50,697) (103,965) INCOME BEFORE TAXES AND PROFIT SHARING , ,867 INCOME TAX AND SOCIAL CONTRIBUTION...(Note 10)... (299,995) (46,319) PROFIT SHARING... (24,808) -- NET INCOME , ,548 Number of shares ,275,506, ,995,705,713 Net income per 1,000 shares The accompanying notes are an integral part of these financial statements.

7 Banco do Brasil S.A. Quarter ended September 30, 2002 Financial Statements In thousands of Brazilian reais NOTES TO THE FINANCIAL STATEMENTS NOTE 1 - The Bank and its Operations Banco do Brasil S.A. is a publicly held company established under private law and subject to Brazilian corporate legislation. Its corporate purpose is to carry out asset, liability and accessory bank operations, provide bank services, intermediate and originate financial transactions in various forms and exercise any activity permitted to the institutions that are part of the Federal Finance System. It is also the main financial agent of the Federal Government as prescribed by art. 19 of Law 4595/1964. NOTE 2 - Presentation of the Financial Statements a) The financial statements of Banco do Brasil S.A. have been prepared in accordance with Law 6404/1976, in due compliance with instructions issued by the Brazilian Central Bank (BACEN), and the Brazilian Securities Commission (CVM). b) The financial statements are presented according to Brazilian corporate law. c) The financial statements present the position of the Bank s operations in Brazil and abroad (BB-Domestic and Overseas branches), as well as the consolidated figures, including domestic and overseas branches and financial subsidiaries (BB- Consolidated). The balances of foreign branches and subsidiary companies included in the balance sheet of the parent company are as follows: Foreign branches and subsidiary companies Current assets 31,339,044 22,752,353 Long-term receivables 8,793,584 5,043,488 Permanent assets 257, ,696 Total assets 40,389,859 27,989,537 Current liabilities 24,243,547 18,659,502 Long-term liabilities 9,872,409 4,662,408 Deferred income 9,874 3,328 Stockholders equity 6,222,185 4,664,299 Total liabilities and stockholders equity 40,389,859 27,989,537 Net income 41,844 (1,946) d) The Consolidated Financial Statements () comprise domestic and foreign branches, foreign subsidiary companies (Banco do Brasil - A.G. Vien - (Austria), BB-Europe N.V.S.A., BB-Leasing Company Ltd., Brasilian American Merchant Bank BAMB) and domestic subsidiary companies (BB- Administração de Ativos - Distribuidora de Títulos e Valores Mobiliários S.A., BB-Banco de Investimento S.A. and BB-Leasing S.A. - Arrendamento Mercantil), prepared in conformity with Law 6404/1976 and CVM Instruction 247/1996. The transactions, balances of accounts, and income and expenses among foreign branches, subsidiary companies and Banco do Brasil S.A. were eliminated. The translation of the financial statements prepared in a foreign currency into Brazilian reais is carried out using current rates, in conformity with CVM Decision 28/1986; The companies BB-Corretora de Seguros e Administradora de Bens S.A., BB-Adminstradora de Cartões de Crédito S.A., BBTUR Viagens e Turismo Ltda, and COBRA Computadores e Sistemas Brasileiros S.A. were not included in the consolidation as they do not materially affect the consolidated financial statements.

8 NOTE 3 - Accounting Policies a) The Bank uses the accrual basis of accounting. b) Rights and obligations in foreign currencies and those subject to indexation are adjusted in accordance with the exchange rates or official indices as of the balance sheet date and they are presented at realizable values. Rights and obligations with floating financial charges are recorded at current value and calculated pro rata based on the variations in the respective contractual indices. Those with fixed financial charges are recorded at their future value, adjusted to reflect unearned income or amounts involving unexpired expenses. c) Allowance for loan losses is made based on the parameters of CMN Resolution 2682/1999, for domestic branches and subsidiary companies, as well as facilities abroad, taking into consideration the risks of loans based on consistent criteria, supported by internal and external information, and covering all aspects set forth in the above-mentioned resolution. d) Marketable Securities: Securities purchased for own portfolio are recorded at the actual amount paid, including brokerage charges and fees, and are classified, based on the intention of Bank management, in three different categories: d.1) Trading securities: these are marketable securities acquired to be actively and frequently traded. These securities are adjusted to market value on a monthly basis and increases and decreases are recorded, respectively, in income and expense accounts for the period; d.2) Securities Available for Sale: these are marketable securities which, although not actively and frequently traded, at any time can be traded. These securities are adjusted to market value on a monthly basis, and increases and decreases are recorded, net of tax effects, in a stockholders equity account; d.3) Securities Held to Maturity: these are securities that the Bank intends and has financial capacity to hold to maturity. The financial capacity is supported by a cash flow projection that does not consider the possibility of sale of these securities. These securities are not adjusted to market value. The mark-to-market methodology applied for securities was established following consistent and verifiable criteria, which consider the average price of trading on the day of the estimate or, if it does not exist, in pricing models that estimate the probable net fair value of realization. Income accrued on marketable securities, irrespectively of the category in which they are classified, is appropriated on a pro rata basis and complies with the accrual basis of accounting, monthly and up to the maturity date or date of the final sale, on the exponential or linear method, based on the respective remuneration clauses and on the acquisition rate distributed over the period, being directly recognized in current income. Losses with securities classified as available for sale and held to maturity, if judged to be other than temporary losses, are directly recorded in results of operations for the period and create a new cost basis for the assets. Upon sale, the difference obtained between the sales value and the cost of purchase plus accrued earnings is considered as a result of the transaction and is accounted for on the date of the transaction as gain or loss with securities. e) Derivative Financial Instruments Derivative financial instruments are valued at market value, at each trial balance and balance sheet date. Increases or decreases are recorded in income or expense accounts of the related financial instruments. Derivative financial instruments used for offset, in whole or in part, the risks arising from exposures to variations in asset or liability market values are considered hedge instruments and are classified according to their characteristics: e.1) Market Risk Hedge increases or decreases in financial instruments classified in this category, as well as the item hedged, are recorded in income and expense accounts for the period; e.2) Cash Flow Hedge for the financial instruments classified in this category, the effective portion of increases or decreases is recorded, net of tax effects, in a separate stockholders equity account. The effective portion is the one in which the variation of the item hedged, directly related to the corresponding risk, is compensated with the variation in the financial instrument used for hedge, considering the accumulated effect of the operation. Other variations observed in these instruments are directly recorded in income or expense accounts for the period.

9 The mark-to-market methodology applied for derivative financial instruments was established following consistent and verifiable criteria, which consider the average price of trading on the date of the estimate or, if it does not exist, in pricing models that estimate the probable net fair value of realization according to the characteristics of the derivative. f) Permanent assets - Investments are stated at acquisition cost and, when material, adjusted using the equity method of accounting. Property and equipment are recorded at acquisition cost, less respective depreciation, which is calculated using the straight-line method at the following annual rates: buildings and improvements - 4%; vehicles, installations and equipment - 20%; other - 10%; Expenses for organization and expansion, which have been recorded in deferred charges in permanent assets, relate to: f.1) Expenditures for leasehold improvements in properties owned by third parties arising from the installation of facilities which are amortized at rates based on the rental terms; f.2) Expenses for acquisition and development of systems which are amortized at the annual rate of 20%; g) Vacations, leave of absence, and thirteenth-month salaries are accrued monthly, in accordance with the period in which they are earned; h) Short-term benefits for current employees are recognized on the accrual basis as the services are provided. The postemployment benefits, comprising complementary pension, medical assistance, and other benefits, for which the Bank is responsible, were evaluated at September 30, 2002 in accordance with criteria established in CVM Deliberation 371/2000, taking into consideration an 8% annual interest rate, and are being monthly allocated according to such evaluation, as presented in Note 16. The benefit liability relating to the assumption of the obligation to employees hired before April 14, 1967 was accrued on the basis of an actuarial calculation made as of September 30, 2002, taking into consideration the 6% annual interest rate established in the contract between PREVI and the Bank. i) Corporate income tax is determined at the basic rate of 15% plus a surcharge of 10% of taxable income, and the social contribution at the basic rate of 8% and a surcharge of 1% of taxable income (Note 8.V). The deferred tax asset recorded in accordance with the bases explained in Note 10.V is being written off from the 4 th quarter of 2001 at amounts equivalent, at least, to the rates of income tax and social contribution applied to book income before taxes. NOTE 4 Marketable Securities and Short-term Interbank Investments Current and long term Short-term interbank Investments 17,193,925 7,352,587 Repurchase agreements 10,604,922 1,494,005 Sales pending settlement own operations 6,045, ,294 Sales pending settlement financed operations 4,559,860 1,231,711 Investments in interbank deposits 6,588,992 5,781,452 Investments in foreign currency 11 77,130 NOTE 5 Marketable Securities and Derivative Financial Instruments Based on the implementation of new evaluation and accounting criteria determined by BACEN Circular Letters 3068/2001 and 3082/2002, marketable securities started to be classified in three categories: trading securities, securities available for sale and securities held to maturity and derivative financial instruments in derivative instruments for trading and derivative instruments for hedge. Adjusted to market value, trading securities adjustments were recorded in income for the period and securities available for sale were recorded in a separate stockholders equity account. Securities held to maturity were valued at their cost of acquisition plus income accrued in the period.

10 Derivative financial instruments for trading, used at the request of clients or on the Bank s own account, do not follow the hedging criteria and are accounted for at market value; their effects are directly recorded in results for the period. Derivatives for hedge are used to protect exposures to risk or to modify the characteristics of financial assets and liabilities; they are directly related to the main operation and are also adjusted to market value in contra-entry to results for the period when it is a market risk hedge and presented in a separate stockholders equity account when it is a cash flow hedge. The parameter for market value calculation of marketable securities and derivative financial instruments is as follows: 1) the average price of the negotiation, representative on the day of the estimate and the daily adjustment value of future market operations disclosed by ANDIMA, BM&F, BOVESPA and the Central Bank; 2) the net fair value of realization obtained with future interest rate curves, foreign exchange rates, price index and currencies, all in accordance with the prices practiced in the market.

11 a) Marketable securities The cost plus accrued income and the market value of marketable securities at September 30, 2002 are distributed as follows: Consolidated Maturity in days With no maturity Over 360 TOTAL Unrealized Cost Market Cost Market Cost Market Cost Market Cost Market Cost Market Gain/loss for value value value value value value value value value value value value The period Marketable Securities 422, ,079 5,901,708 5,882,626 4,635,925 4,630,493 7,971,053 7,636,778 59,386,573 53,884,412 78,317,459 72,271,388 (2,945,553) I Trading securities 5,007 4,454 1,094,169 1,094,164 2,471,817 2,470, , , ,711,778 3,710, a) Own Portfolio 5,007 4, , , , , , , , , Fixed Income Securities , , , , , , , , Domestic , , , ,131 63,763 63, , , Federal Treasury Bills , , , ,131 63,763 63, , , Foreign ,815 2,815 15,889 15,889 77,022 77, ,726 95, EUROBONDS ,239 2,239 2,548 2,548 72,914 72, ,701 77, BONDS (*) ,462 9,462 1,515 1, ,481 11, DCB BONDS(*) C BONDS(*) NMB BONDS(*) DISC BONDS(*) GLOBAL(*) OTHER ,879 3,879 1,662 1, ,552 5, Variable Income Securities 5,007 4, ,007 4, Domestic 5,007 4, ,007 4, Publicly traded shares 5,007 4, ,007 4, b) Subject to committed operations , ,340 2,062,789 2,062, ,012,145 3,012, Fixed income Securities , ,340 2,062,789 2,062, ,012,145 3,012, Domestic , ,340 2,062,789 2,062, ,012,145 3,012, Financial Treasury Bills , ,340 2,062,789 2,062, ,012,145 3,012,083 --

12 II Securities available for sale 417, ,625 4,011,308 3,993,971 1,949,005 1,952,177 7,824,239 7,489,968 34,734,370 32,321,821 48,936,115 45,990,562 (2,945,553) a) Own portfolio 417, ,625 3,918,825 3,901, , ,658 2,668,708 2,399,503 3,994,516 3,649,739 11,689,606 10,865,157 (824,449) Fixed Income Securities 81,661 7,885 3,881,701 3,872, , ,278 2,629,219 2,359,702 3,994,516 3,649,739 11,194,625 10,488,013 (706,612) Domestic 81,661 7,885 3,173,022 3,172, , ,364 2,602,887 2,336,100 3,638,172 3,471,810 9,986,659 9,474,282 (512,377) Financial Treasury Bills , , , ,899 1,273,007 1,262,143 1,373,708 1,296,499 3,161,421 3,071,913 (89,508) Central Bank Notes ,611 41, , , , ,275 (74,241) Federal Treasury Notes ,398 20,290 1,327,262 1,071,474 37,922 28,105 1,385,582 1,119,869 (265,713) Federal Public Securities - Other ,050,350 3,055,434 11,993 11, ,770,020 1,765,554 4,832,363 4,832, Federal Treasury Bonds ,538 10,684 11,538 10,684 (854) Debentures 65, , , , , ,373 (68,147) Promissory Notes ,861 2, ,861 2,842 (19) Agricultural Debt Securities ,323 4,317 8,720 8,646 2,618 2,483 26,536 21,017 42,197 36,463 (5,734) Investment Fund Quotas 16,661 7, ,661 7,885 (8,776) Foreign , , , ,914 26,332 23, , ,929 1,207,966 1,013,731 (194,235) EUROBONDS , ,721 77,388 72, ,806 16, , ,616 (20,116) BONDS ,079 26,017 53,261 27,199 (26,062) PAR BONDS (*) ,949 7,158 9,281 7,490 (1,791) DCB BONDS (*) ,584 11,575 24,041 12,032 (12,009) EI BONDS (*) , , (2,322) NMB BONDS (*) , , (7,602) IEB BONDS (25) GLOBAL (*) ,797 1, ,659 71, ,088 73,752 (79,336) CERTIFICATES OF DEPOSIT , , , ,209 (241) OTHER , , ,215 23,485 82,531 44, , ,989 (44,731) Investment Fund Quotas ,441 35, ,441 35, Variable Income Securities 334, ,740 8, , ,407 (117,970) Domestic 334, ,740 8, , ,407 (117,970) Publicly traded shares 111,405 73,349 8, ,058 74,016 (46,042) Variable income fund quotas 223, , , ,391 (71,928) Commodities ,471 28,556 82,836 83,380 39,489 39, , , Rural Bonds ,471 28,556 82,836 83,380 39,489 39, , , Marketable securities Special Regimen Partnership (808) b) Subject to committed operations ,483 92,339 1,258,637 1,270,515 4,957,734 4,895,805 20,430,273 18,906,123 26,739,127 25,164,782 (1,574,345) Fixed Income Securities ,483 92,339 1,258,637 1,270,515 4,957,734 4,895,805 20,430,273 18,906,123 26,739,127 25,164,782 (1,574,345) Domestic ,227,422 1,239,432 4,848,464 4,815,930 20,020,166 18,605,463 26,096,052 24,660,825 (1,435,227) Financial Treasury Bills ,210 77,707 4,848,464 4,815,930 13,683,653 12,964,664 18,610,327 17,858,301 (752,026) Federal Treasury Notes ,149,212 1,161, ,233,532 5,566,537 7,382,744 6,728,262 (654,482) Central Bank Notes ,981 74, ,981 74,262 (28,719)

13 Foreign ,483 92,339 31,215 31, ,270 79, , , , ,957 (139,118) EUROBONDS ,553 52,553 1,596 1, ,149 54, BONDS (*) ,951 43, ,493 44,410 (16,083) EI BONDS (*) ,446 17,446 17,697 17, C BONDS (*) ,353 97,353 97,353 97, NMB BONDS (*) ,262 10,262 10,413 10, GLOBAL (*) ,500 8, , , , ,381 (102,314) CERTIFICATES OF DEPOSITS ,930 39, ,930 39,786 (144) BONDS ,175 20,026 49,319 36,007 15,851 8,718 85,345 64,751 (20,594) c) Restricted to Central Bank , ,660 9,535,355 9,015,308 9,733,156 9,209,972 (523,184) Fixed Income Securities , ,660 9,535,355 9,015,308 9,733,156 9,209,972 (523,184) Domestic , ,660 9,535,355 9,015,308 9,733,156 9,209,972 (523,184) Financial Treasury Bills , ,660 9,363,136 8,830,383 9,560,937 9,025,047 (535,890) Federal Treasury Notes , , , ,925 12,706 d) Linked to Guarantees , , , ,651 (23,575) Fixed Income Securities , , , ,651 (23,575) Domestic , , , ,651 (23,575) Financial Treasury Bills , , , ,651 (23,575) III Securities held to maturity , , , ,553 6,029 5,988 24,652,203 21,562,591 25,669,566 22,570, a) Own portfolio , , , ,357 6,029 5,988 5,009,718 3,759,269 5,983,885 4,724, Fixed Income Securities , , , ,357 6,029 5,988 5,009,718 3,759,269 5,983,885 4,724, Domestic , , ,920,540 3,647,810 5,479,870 4,204, Debentures ,751 17,427 43,751 17, Federal Treasury Notes ,881, ,295 1,881, , Federal Treasury Securities Other , , ,994,940 2,708,088 3,554,270 3,265, Foreign , , , ,357 6,029 5,988 89, , , , EUROBONDS ,772 7,772 91,050 82, ,222 90, BONDS ,353 19,876 11,352 12,291 5,615 5, ,320 37, GLOBAL (*) ,793 2, , ,869 84, , CERTIFICATES OF DEPOSITS , ,966 60,834 60, , , OTHER ,810 32,810 5,878 5, ,588 7,590 46,290 46, b) Subject to Committed Operations ,196 43, ,642,485 17,803,322 19,685,681 17,846, Fixed Income Securities ,196 43, ,642,485 17,803,322 19,685,681 17,846, Domestic ,238,186 16,419,482 18,238,186 16,419, Financial Treasury Bills ,413,640 14,592,048 16,413,640 14,592, Federal Treasury Notes ,824,546 1,827,434 1,824,546 1,827, Foreign ,196 43, ,404,299 1,383,840 1,447,495 1,427, GLOBAL (*) ,196 43, ,404,299 1,383,840 1,447,495 1,427,036 --

14 Total by portfolio a) Own portfolio 422, ,079 4,859,869 4,840,947 1,271,299 1,254,035 2,815,522 2,546,313 9,004,234 7,409,008 18,373,124 16,287,382 (824,449) b) Subject to Committed Operations ,301,833 1,313,711 4,957,734 4,895,805 40,072,758 36,709,445 49,436,953 46,023,383 (1,574,345) c) Restricted to Central Bank , ,660 9,535,355 9,015,308 9,733,156 9,209,972 (523,184) d) Linked to Guarantees , , , ,651 (23,575) Total by category I - Trading securities 5,007 4,454 1,094,169 1,094,164 2,471,817 2,470, , , ,711,778 3,710, II - Securities available for sale 417, ,625 4,011,308 3,993,971 1,949,005 1,952,177 7,824,239 7,489,968 34,734,370 32,321,821 48,936,115 45,990,562 (2,945,553) III Securities held to maturity , , , ,553 6,029 5,988 24,652,203 21,562,591 25,669,566 22,570, Maturity in days With no maturity Falling due in up to Falling due between Falling due between Falling due after 10 TOTAL one year 1 and 5 years 1 and 10 years years Cost Market Cost Market Cost Market Cost Market Cost Market Cost Market value value value value value value value value value value value value Marketable securities 422, ,079 18,508,110 18,149,894 35,463,546 33,021,713 7,127,876 6,039,415 16,795,727 14,823,297 78,317,459 72,271,388 I - Trading securities 5,007 4,454 3,706,771 3,705, ,711,778 3,710,203 II - Securities available for sale 417, ,625 13,783,976 13,436,115 31,386,488 29,231,502 2,978,699 2,862, , ,289 48,936,115 45,990,562 III Securities held to maturity ,017,363 1,008,030 4,077,058 3,790,211 4,149,177 3,177,384 16,425,968 14,594,998 25,669,566 22,570,623 The portfolio accounting balance for the period after application of the mark-to-market method is as follows: Total by category Total % portfolio 75,370, % I - Trading securities 3,710,203 5% II - Securities available for sale 45,990,562 61% III Securities held to maturity 25,669,566 34% * Foreign debt During the period, marketable securities were not reclassified in the categories above.

15 b) Derivative Financial Instruments Banco do Brasil uses Derivative Financial Instruments (IFD) to manage, in a consolidated manner, its positions and meet clients needs, classifying own positions into Hedging (market risk and cash flow) and Trading, both with limits of approval. This information is available to the pricing, trading, controls and calculation of results areas, which are segregated in the institution. The models used in managing risks with derivatives are periodically reviewed and decisions made follow the best risk/return relation, estimating possible losses based on the analysis of macroeconomic scenarios. The Bank uses adequate tools and systems to manage the IFD. Trading of new derivatives, either standardized or not, is subject to a previous risk analysis and is subject to evaluation of the proper areas. The strategy of hedge of the equity positions complies with the macroeconomic analyses and is approved by Management. Risk evaluation of subsidiaries is individual and its management is consolidated. BB uses statistic methods and simulation to measure the risks in its positions, including derivatives, using models of risk value, sensibility and stress analysis. Risks The main risks inherent to Derivative Financial Instruments, resulting from the Bank s and its subsidiaries business are credit, market and operating risks, all similar to those related to other types of financial instruments. Market risk is the exposure created by a potential fluctuation in interest rates, exchange rates, quotation of goods, prices quoted in the share market and other amounts, and is a function of the type of product, the volume of operations, the term and conditions of the contract and the underlying volatility. Credit risk is the exposure to losses in case of default of a counterparty to the transaction. The exposure to credit risk in futures contracts is minimized due to the daily settlement in cash. Swap contracts involve credit risk if the counterparty is unable or unwilling to comply with its contractual liabilities. Total credit exposure in swaps at September 30, 2002 is R$ 720,026 thousand. The credit risk associated with options contracts is limited to the premiums paid in purchased options. The recognition of unrealized gains in these operations depends on management evaluation with regard to the possibility of receipt. Operating risk is the probability of financial losses resulting from failures or inappropriateness of persons, processes and systems, or factors such as catastrophes or criminal activities. The tables below show the referential value restated at market value and the related net exposures in the balance sheet for the derivative financial instruments classified in conformity with their denomination as hedging or trading instruments at September 30, 2002.

16 1) Trading derivatives Assets/Index Counterparty Reference value Cost value Market value Exchange trading Futures contracts Purchase commitment 1,982,417 (143,342) (143,342) DI E 659,021 4,685 4,685 U.S. Dollar E 3,659 84,448 84,448 Index E -- (138) (138) Foreign exchange coupon E 1,319,737 (232,318) (232,318) Commodities E -- (19) (19) Sales commitment 1,189,187 (107,607) (107,607) DI E 1,062,432 (814) (814) U.S. Dollar E 51,231 (135,578) (135,578) Index E Foreign exchange coupon E 75,524 28,780 28,780 Commodities E -- (9) (9) Options market Purchase options 36,124 1,326 1,306 Shares E Financial assets and goods C 35,644 1,271 1,295 Sales options 36,124 (1,309) (1,302) Shares E 480 (39) (7) Financial assets and goods FI 35,644 (1,271) (1,295) Over-the-counter trading Swap contracts Asset 4,031, , ,371 CDI rate C 197,012 (41,780) 65,982 FI 92,000 (2,095) 17,223 Foreign currency FI 3,634, , ,609 C Prefixed C 68,963 2,142 3,093 Referential Rate (TR) C 37, Liability 10,539,963 (1,157,493) (831,820) CDI Rate C 3,317,324 (79,004) (84,546) FI Foreign currency FI 2,295,619 (459,826) (297,635) C 1,148,330 (498,515) (325,018) TMS C 2,474,549 (70,899) (70,899) Referential Rate (TR) C 1,171,742 (47,330) (51,805) Other 132,399 (1,919) (1,919) Counterparty: (E) Exchange, (FI) Financial Institution, (C) Client.

17 Exchange trading Reference value Cost value Market value Futures contracts Purchase commitment 1,982, Maturity Up to 30 days 787, to 60 days 472, to 90 days 98, to 180 days 230, to 360 days 217, to 5 years 175, Sales commitment 1,189, Maturity Up to 30 days 294, to 60 days 85, to 90 days 108, to 180 days 276, to 360 days 424, Options market Purchase options Shares Maturity Up to 30 days Sales options 480 (39) (7) Shares Maturity Up to 30 days 480 (39) (7) Swap contracts Assets 4,066, , ,666 Maturity Up to 30 days 1,331,813 43,462 44, to 60 days 164,929 12,200 31, to 90 days 425,872 99, , to 180 days 1,240, , , to 360 days 567,002 63,128 43,632 1 to 5 years 336, ,929 51,141 Liabilities 10,575,608 (1,158,764) (833,115) Maurity Up to 30 days 1,299,995 (170,642) (160,795) 31 to 60 days 798,830 (62,507) (54,290) 61 to 90 days 801,547 (275,011) (197,196) 91 to 180 days 1,738,322 (329,133) (218,561) 181 to 360 days 4,346,454 (233,071) (157,193) 1 to 5 years 1,590,459 (88,400) (45,082)

18 2) Derivatives for hedge Assets/Index Counterpart Reference value Cost value Market value Traded on an exchange Futures contracts Purchase commitments 802,831 (53,401) (53,401) Exchange coupon E 802,831 (53,401) (53,401) Traded over-the-counter Swap contracts Asset position 3,300 (682) 3,418 Interbank Deposit Certificate (CDI) rate C 3,300 (682) 3,418 Liability position 885,244 (408,315) (109,596) Foreign currency FI 804,291 (342,709) (93,810) C 80,953 (65,606) (15,786) COUNTERPARTY: (E) STOCK EXCHANGE, (FI) FINANCIAL INSTITUTION, (C) CLIENT Hedges against Market Risks Reference Cost Market value value value Futures contracts Assets 802, Maturity 181 to 360 days 161, to 5 years 641, Swap contracts Assets 3,300 (682) 3,418 Maturity 181 to 360 days 3,300 (682) 3,418 Liabilities 885,244 (408,315) (109,596) Maturity 181 to 360 days 694,999 (296,371) (95,800) 1 to 5 years 190,244 (111,944) (13,796) As a consequence of mark to market requirements, gains on derivative financial instruments in the amount of R$ 446,397 thousand () were directly recorded in income accounts for the quarter. The margin deposits that guarantee transactions with derivative financial instruments consisted of Financial Treasury Bills (LTF) which amounted to R$ 710,454 thousand as of September 30, A hedge portfolio for market risks was established in September Rules set forth in BACEN Circular 3082 for the purpose of offsetting the effects of changes in market value for securities indexed to variations in the foreign exchange rate have been followed. Securities indexed to changes in the foreign exchange rate that have been hedged will remain in the Bank s portfolio identified as such until their final sale and or maturity. Any appreciation or devaluation of these securities will be recorded in the proper income or expense account in results for the period as required by Circular Derivative financial instruments used by the Bank to hedge market risks will be traded in a manner (purchase or sale of contracts) that assures the effectiveness of the hedge produced.

19 The hedge portfolio related to market risk recorded in the balance sheet as of September 2002 comprises the following : I - Item Hedged: Assets Market value Securities indexed to changes in the foreign exchange rate 1,871,847 Central Bank Notes Special Series (NBC-E) 255,898 National Treasury Notes D Series (NTN-D) 1,615,949 II - Derivatives to Hedge Market Risk: Liabilities Market value Derivative Financial Instruments 1,691,375 DDI agreements 802,831 SWAP agreements 888,544 Due to the adaptation to the new rules determined by Circular Letters 3068 and 3082, and later regulations, adjustments were made to reflect the application of new criteria of classification of the marketable securities portfolio and derivative financial instruments. With the application of these new rules, we recorded for the six-month period, in stockholders equity: as Retained Earnings the amount of R$ 108,434 thousand and as Adjustment of Marketable Securities and Derivatives to Market Value, the amount of R$ 53,793 thousand considering the market value at June 30, 2002, representing a net decrease in stockholders equity of R$ 162,227 thousand as follows: In retained earnings: Trading securities 9,510 Multiple Bank 9,510 Associated and Subsidiary Companies -- Securities available for sale (564,341) Multiple Bank (564,341) Associated and Subsidiary Companies -- Derivatives 446,397 Multiple Bank 469,104 Associated and Subsidiary Companies (22,707) Total (108,434) In Adjustment of Marketable Securities and Derivatives to Market Value : June/2002 Changes in the period September/2002 Securities available for sale Balance (A) Positive (B) Negative (C) Balance (D=A+B+C) Multiple Bank (1,482,162) 37,761 (522,207) (1,966,608) Associated and Subsidiary Companies (252,345) (2,943) (219,821) (475,109) Tax effects 64,013 17, , ,430 Total (1,670,494) 52,482 (106,275) (1,724,287)

20 NOTA 6 Loan Operations a) Composition of Loan Portfolio: Current and long-term Lending operations 51,242,247 40,142,497 Loans and bills discounted 29,417,805 23,078,788 Financing 10,696,366 7,674,098 Farm and Agribusiness financing 14,110,865 11,598,623 (Allowance for Loan losses) (2,982,789) (2,209,012) Other Receivables with Lending Characteristics 8,249,401 9,966,949 Credits relating to guarantees honored 28,178 25,841 Advances on foreign exchange 6,433,223 4,436,474 Other 1,788,000 5,492,214 Leasing operations 441, Interbank onlending 13, Total 60,008,860 50,607,020

21 b) Composition of the portfolio by business sector and maturity, including Other Receivables with lending characteristics: Operations falling due Over TOTAL TOTAL Maturity in days PUBLIC SECTOR 567,832 1,408 43, , , ,999 5,769,090 7,244,818 9,380,584 Domestic 6, , ,433 15, , ,382 4,901,383 Government 6, , ,430 15, , ,226 4,727,208 Direct Administration 1, , , , ,237 Indirect Administration 4, , ,368 1,262 3,948 53,596 4,447,971 Business , , , ,175 Manufacturing Commerce Financial Services , ,092 77,103 61,024 Other Services , , ,086 Foreign 561,196 1,396 6, , , ,873 5,010,547 6,416, ,439 Business 561,196 1,396 6, , , ,873 5,010,547 6,416, ,439 Manufacturing ,761 Other companies 5, , , , ,243 Other banks 8,968 1,396 6, , ,186 45,183 Public Services 546, , , ,856 4,905,320 6,263,872 4,271,015 PRIVATE SECTOR 3,308,771 2,407,071 4,390,596 3,416,802 8,669,593 8,537,632 21,162,875 51,893,340 40,204,770 Domestic 2,634,019 2,023,297 3,809,997 2,828,247 7,265,971 7,795,790 19,174,070 45,531,391 35,549,579 Farming 540, , , , ,405 1,240,672 9,407,914 13,406,636 10,867,116 Manufacturing 754, ,352 1,120,947 1,096,975 3,006,974 3,185,356 2,015,849 11,699,186 8,154,083 Commerce 407, , , ,536 1,138,435 1,420, ,613 5,247,137 4,107,885 Financial Services 1, , ,530 1,195 Other Services 654, , , ,564 1,050, ,302 2,999,160 6,530,095 4,700,075 Individuals 275, , , ,370 1,015,403 1,571,178 4,197,534 8,466,807 7,719,225 Foreign 674, , , ,555 1,403, ,842 1,988,805 6,361,949 4,655,191 BB Group ,368 Commerce 27,973 6, ,880 10,079 5,217 2,238 58, ,261 Manufacturing 80,201 29,206 15,709 61, ,913 48, , , ,797 Other companies 213,562 38,946 66,999 52, , , ,998 1,390,932 1,481,441 Other banks 84, , ,587 60, , , ,391 1,256, ,955 Individuals 240,080 52, , , , , ,983 1,951,478 39,309 Commerce - Other 15,320 4,091 2,961 21,747 3,853 4, , Transport Services 9, , ,214 75,067 99, , , Other Services 3, ,133 8,847 3,561 81,864 1,017,060 Total 3,876,603 2,408,479 4,434,323 3,848,713 8,948,444 8,689,631 26,931,965 59,138,158 49,585,354

22 Operations over due Over TOTAL TOTAL Maturity in days PUBLIC SECTOR ,384 3,527 35,451 Domestic ,384 3,527 33,988 Government ,773 Direct Administration ,770 Indirect Administration Business ,384 3,390 3,215 Commerce Other Services ,384 3,384 3,215 Foreign ,463 Business ,463 Other Services ,463 PRIVATE SECTOR 195, , , , , , ,658 3,874,999 3,172,131 Domestic 190, , , , , , ,451 3,842,933 3,152,918 Farming 1,545 48, ,701 86,935 85,396 61,101 85, , ,177 Manufacturing 29, , , ,942 96,060 78,591 30, , ,070 Commerce 19,023 79,004 53,420 24,138 62, ,954 15, , ,114 Financial Services ,177 Other Services 74, ,953 62, ,837 57,512 17,795 37, , ,228 Individuals 66, , , , , ,755 46,532 1,676,247 1,336,152 Foreign 4, ,083 3,346 5,132 10,303 3,207 32,066 19,212 Commerce ,898 Manufacturing 2, ,919 10,391 Other companies , ,524 9,259 3,054 18,837 4,308 Other banks Individuals 1, ,088 3,346 1, , Other Services Total 195, , , , , , ,042 3,878,526 3,207,581

23 c) Composition of the loan portfolio by risk level, including transactions with extension of credit characteristics recorded in Other Receivables and excluding intergroup operations: Loan operations falling due Total Share Over Total Risk level Portfolio % Portfolio AA 17,581,534 30% 1,504, ,103 1,209,587 1,238,175 2,037,380 1,494,798 9,542,693 18,759,030 A 25,889,162 44% 1,444,321 1,453,352 2,088,327 1,355,394 3,966,479 5,114,019 10,467,270 20,101,995 B 9,826,783 17% 526, , , ,637 1,938,878 1,345,459 4,070,824 7,029,301 C 3,305,066 6% 276, , , , , ,341 1,357,132 1,883,510 D 1,136,281 2% 52,210 21,448 55,607 88, , , , ,393 E 913,122 2% 37,059 8,227 15,862 69, ,167 91, , ,262 F 60,375 0% 3,295 1,523 3,257 3,818 3,349 8,014 37,119 40,402 G 65,506 0% 2,227 1,267 1,882 1,542 2,490 10,721 45,377 18,016 H 360,329 1% 29,645 6,131 4,955 2,612 37,344 29, , ,445 Total 59,138,158 3,876,603 2,408,479 4,434,323 3,848,713 8,948,444 8,689,631 26,931,965 49,585,354 Loan operations over due Total Share Over Total Risk level Portfolio % Portfolio AA -- 0% ,655 A 414 0% B 801,339 21% 142, ,957 75, , ,135 C 596,102 15% 24,432 82, ,871 38,514 31, ,685 D 472,184 12% 15,669 42, , ,218 44, ,112 E 322,230 8% 2,943 11,798 31,010 90, ,396 9, ,639 F 193,537 5% 1,822 6,030 9,759 14, ,043 5, ,703 G 194,615 5% 1,496 4,491 6,753 8, ,969 20, ,382 H 1,298,105 33% 6,042 27,864 88,765 70, , , ,305 1,435,211 Total 3,878, % 195, , , , , , ,042 3,207,581