Management Report of Financial Statements

Transcription

1 Management Report of Financial Statements 1 st Quarter of 2012

2 Contents History 03 Ratios 04 Ownership Structure 05 Management Structure 06 Branch Network 07 Business 08 Risk Management 09 Liquidity Risk 09 Credit Risk 10 Market Risk 10 Operational Risk 10 Internal Audit 11 Audit Committee 11 Compensation Committee 11 Ombudsman 11 Lending Operations 12 a) By Type and Industry 12 b) By Product 12 c) By Average Ticket 13 d) By Region 13 e) By Average Maturity 13 f) By Risk Concentration of the Credit Portfolio 14 Funding 14 Time Deposits Breakdown 15 a) By Currency 15 b) By Average Maturity 15 c) By Investor 15 Client Base 15 Management Report 16 Balance Sheet 20 Financial Income Statements 24 Statement of Cash Flow Indirect Method 25 Statements of Changes in Shareholders Equity 26 Statements of Added Value 27 Notes to the Financial Statements 28 2

3 History MB s Inauguration Curvelo MG The Bank originated in the 1940s, in the centralnorthern region of the state of Minas Gerais, in the city of Curvelo, where it was founded by local businessmen. In 1953, under the name Banco Mercantil de Minas Gerais, the Bank was acquired by Mr. Oswaldo de Araújo and Mr. Vicente de Araújo, who relocated its headquarters to Belo Horizonte, starting thereafter the Bank s tradition of safety and solidity based on a philosophy of ongoing growth. Over the following years, new shareholders joined management including the current Chairman of the Board of Directors and the Steering Committee, Mr. Milton de Araújo. In 1955, Banco Mercantil de Minas Gerais, as it was called at that time, acquired Banco Industrial Minas Gerais. In the 1960s, after the acquisition of the Santa Cruz and Metrópole banks in Rio de Janeiro, the number of branches increased from 4 to 52. Keeping pace with the increasing development of the country, in the 1970s, two other banks were acquired: Industrial de Campina Grande and Mercantil do Brasil, the latter name being used by the institution since then. These changes allowed the Bank to start the 1980s with approximately 100 branches. In 1999 the Bank renewed its brand and its branches in order to project a modern image to its customers and the market. Management aims to raise the value of the Mercantil do Brasil brand and strengthen its capability to provide the right services for its customer profile. Mercantil do Brasil currently has 165 branches, 04 points of banking services, 25 electronic points of services, 01 foreign branch on Grand Cayman Island, and a staff of 2,613 strategically located in the main geoeconomic centers of Brazil, mainly in the southeast of the country, especially in Minas Gerais and the interior of the state of São Paulo. Reception at head office Belo Horizonte, state of Minas Gerais 3

4 Ratios (R$ Miillion) Total Assets 13% Credit Portfolio and Recourses From Jun/2011, the balance of transferred recourses started to post their net amount. CAGR ,927 16% 10,523 CAGR ,473 24% 7, , % , % 8, % 16% 8, Mar 12 Other Liquid Assets Lending Mar 12 Credit Portfolio Assigned w/ Recourse Funding Shareholders Equity CAGR % 6, % 7, % 25% 10% 10,018 9, % Mar 12 Time Deposits Interbank Funding Other Deposits Securities Issued Abroad Mar 12 Bank Minority Net Profit Basel Index ROAE 4% 73% * 7% 7% 13.3% 13.4% 12.6% 11.6% 11.0% Mar 09 Mar 10 Mar 11 Mar 12 ROAE =Return on Average Equity * Net Profit from 1Q 2012 was impacted by COFINS tax recovery Mar 12 4

5 Ownership Structure Controlling Group ON : 57.0% PN: 6.0% Free Float ON : 43.0% PN: 94.0% 100,0% 100.0% 100.0% 100.0% 100.0% 99.9% 100.0% 76.4% 78.8% Financial Segment Activity Mar 2012 Mercantil do Brasil Distribuidora S.A. Títulos e Valores Mobiliários Securities Dealer % Mercantil do Brasil Leasing S.A. Arrendamento Mercantil Leasing Operations % Banco Mercantil de Investimentos S.A. Investment Bank 78.77% Mercantil do Brasil Financeira S.A. Crédito, Financiamento e Investimentos Mercantil do Brasil Corretora S.A. Corretora de Câmbio, Títulos e Valores Mobiliários Finance 76.41% Foreign Exchange & Securities Brokerage 99.99% Other Segment Activity Mar 2012 Mercantil do Brasil Administradora e Corretora de Seguros e Previdência Privada S.A.. Insurance Management, Brokerage in General & Private Pension % Mercantil do Brasil Imobiliária S.A. Real Estate Broker % Mercantil do Brasil Empreendimentos Imobiliários S.A. Real Estate Developments % 5

6 Management Structure BOARD OF DIRECTORS President Milton de Araújo Vice President Maurício de Faria Araújo Councillors Clarissa Nogueira de Araújo Daniela de Araújo Coelho Glaydson Ferreira Cardoso José Carneiro de Araújo José Ribeiro Vianna Neto Luiz Henrique Andrade de Araújo Marco Antônio Marques Cardoso MANAGEMENT Executive Vice President André Luiz Figueiredo Brasil Executive Directors Athaíde Vieira dos Santos Fernando Antônio Machado Carvalho Lauro Wilson da Silva Luiz Carlos de Araújo Luiz Henrique Mungo Nicácio Roberto Godoy Assumpção Taíse Christine da Cruz Valci Braga Rezende FISCAL COUNCIL MANAGEMENT President Milton de Araújo Vice Presidents Hélio de Araújo Luiz Henrique Andrade de Araújo Marco Antônio Andrade de Araújo Maurício de Faria Araújo Paulo Henrique Brant de Araújo Renato Augusto de Araújo Afrânio Eustáquio Ribeiro Dionísio Leles da Silva Filho Elie Lebbos Euler Luiz de Oliveira Penido José Régis da Silva Pontes CONTROLLER Luiz Carlos de Araújo Controller CRC MG No /O4 Organization Chart Board of Directors Executive Committee Executive Vice President (CEO) André Brasil Executive Officers Credit risk Management, Compliance and IR Athaíde Vieira Finance Roberto Assumpção Technology, Infrastructure and Client Intel Lauro Wilson Controller Luiz Carlos Araújo Customer Service and Management Luiz H. Nicácio Products Taíse Cruz Commercial Valci Rezende Credit Fernando Carvalho 6

7 Branch Network Mercantil do Brasil currently has 165 branches, 4 points of banking services, 25 electronic points of services, and 1 foreign branch on Grand Cayman Island, with 43 branches (25%) located in state capitals and 126 branches (75%) in other cities. The Bank focuses its business activities in the states of Minas Gerais, the interior of São Paulo, Rio de Janeiro, Espírito Santo, Goiás and the Federal District (Brasília), with 146 branches (86%). The southeast region of the country has 139 branches, accounting for 82% of the total. Branch in Americana, state of São Paulo Geographic Focus RN 01 PB 01 PE 01 MT 01 DF 01 BA 04 SE 01 MS 01 PR 06 GO 06 SP 56 MG 72 RJ 09 ES 02 SC 04 RS 03 7

8 Business Apart from Retail banking, Mercantil do Brasil complements its product portfolio with specific segments such as Vehicle Financing, Leasing, Securities, Insurance, Pension Plans, Automatic Payroll Deductible Loans ( Crédito Consignado ), Credit Cards and Real Estate. Retail Business focuses on Individuals, who consist predominantly of personal clients from incomegroups B and C, and selfemployed professionals. For the SME s Business, the goals are companies with annual revenues up to R$15 million. The corporate segment provides unique services to companies with annual revenues above R$15 million. In addition to the Business Platforms located in the state capitals of Minas Gerais, São Paulo and Rio de Janeiro, MB disposes of branches with unique infrastructure to serve customers with similar profiles in the cities of Anápolis, Brasília, Campinas, Curitiba, Florianópolis, Goiânia, Porto Alegre, Recife, Salvador and Vitória. The Bank's branches are able to offer all financial products and services to customers, and which are classified as follows: INDIVIDUALS Checking Accounts, Savings, Time Deposits and Funds; Personal Credit, Revolving Overdraft Facilities Individuals Vehicle Financing and Credit Card; Pension Plans, Insurance and Securities; Special Services (collection, custody, tax payments, etc.). COMPANIES Checking Accounts, Savings, Time Deposits and Funds; Working Capital, Discount of Receivables, Revolving Overdraft Facilities SME's Vehicle Financing, Brazilian National Equipment Financing Authority (FINAME) and Leasing; Bid and Performance Bonds, Trade Finance, Real Estate and Insurance; Special Services (collection, custody, tax collections, etc). 8

9 Risk Management Mercantil do Brasil has an independent risk management department whose duties include planning, controlling and mitigating liquidity, credit, market and operational risks. The department uses models and tools to ensure efficient management together with a highly trained and constantly evolving team. Monitoring is done through daily reports, associated with stress scenario simulation tools, allowing the Bank to protect itself against adverse macroeconomic situations. For more information, access the Mercantil do Brasil site ( where you be able to link at the Investor Relations area (I.R. Area) and to find the complete risk management information for each type of risk of the institution. LIQUIDITY RISK Mercantil do Brasil manages liquidity risk using methodologies and models based on the Institution's ability to pay, in light of financial planning, risk limits, and the optimization of available resources, thus enabling faster and highly reliable strategic decision making. Liquidity risk management complies with the requirements of CMN Resolution No. 2804/00 on the need for monitoring systems for positions in all financial and capital market operations, in order to identify liquidity risk arising from these exposures. In order to comply with this legislation, Mercantil do Brasil applies two models: Unhedged Flows Behaviour System and Daily Products Behaviour. The first model allows the verification of each operation by product, currency, index numbers and maturity and the second one provides statistical cash flows of assets and liabilities products. Mercantil do Brasil management tools included projected cash flow using two methodologies: one statistical and the other based on historical series of assets and liabilities products, future revenues, due dates and repurchases of time deposit transactions, lending operations, foreign borrowings, savings, demand deposits and securities. Concomitantly, stress test scenarios enable us to identify possible problems that might undermine the economic/financial equilibrium of the Institution. Mercantil do Brasil also has a contingency plan containing strategies and procedures required to at least ensure the Institution's balance in terms of ability to pay in the event of the potential problems identified in stress scenarios. R$ Thousand R$ Thousand MISMATCH Maturity Maturities 1 Assets Liabilities Balance Until 30 days 2 1,618, ,560 1,216,808 From 31 to 60 days 915, , ,274 From 61 to 90 days 742, , ,742 From 91 a 180 days 1,113, , ,428 From 181 a 360 days 1,218, , ,182 Over 360 days 3,264,891 6,634,726 (3,369,835) TOTAL 8,872,041 9,210,441 (338,400) 1 Subsequent days 2 Including savings deposits of R$ 235,589 thousand MISMATCH Currency Currency Assets Liabilities Balance PRÉ 5,032, ,521 4,191,931 IGPM 201,883 11, ,603 TR 65, ,228 (188,424) TJLP 5,296 5,430 (134) CDI 2,600,651 6,709,869 (4,109,218) SELIC 314, , ,298 IGPDI US$ 650, ,287 10,484 EURO IPCA 631,303 (631,303) TOTAL 8,872,041 9,210,441 (338,400) Note: Money Market Funding Third Parties, for the amount of R$1,529,465 thousand is not taken into account in the mismatch tables. 9

10 CREDIT RISK Credit risk refers to the possibility of a certain counterpart failing in full or in part to honor obligations relating to settlement of transactions involving trading in financial assets. Mercantil do Brasil is making structured investments to ensure continual improvement of processes and control practices, and credit risk management in line with market practices and regulatory agency requirements. In this context, credit risk management at Mercantil do Brasil covers internal factors such as an analysis of the portfolio progress, default levels, products profitability, portfolio quality and allocated capital; in addition to external factors such as monitoring macroeconomic environment and the economic sectors, interest rates, market default indictors, consumption behaviour, etc. Therefore, variations in exposure to risks affecting MB are monitored taking into account the business environment, market behaviour and our commitments to clients, shareholders, employees and other stakeholders. Mercantil do Brasil's institutional policy for Credit Risk Management was approved by the Board in the first half of 2010 and reviewed in the first half of 2011, pursuant to CMN Resolution No. 3721/09. Under Article 1 of this resolution, MB's structure is compatible with the nature of its operations and the complexity of the products and services offered, and is proportional to the scale of the economicfinancial conglomerate's exposure to credit risk. This structure is centralized in Banco Mercantil do Brasil S.A., resulting in leaner and more assertive decision making. MB's Credit Risk Management structure is responsible for identification, measurement, control and mitigation of credit risk associated with the economicfinancial conglomerate as a whole, as well as for each of its financial and nonfinancial firms individually. MARKET RISK Market risk management for all the Mercantil do Brasil companies is centralised with the Risk Unit Management, although responsibility has also been assigned to the Board of Directors, the Steering Committee, the Assets and Liabilities Committee (CAP) and the Cash Committee. Market risk is managed on the basis of the appropriate methodologies and systems in line with the nature of its operations, complexity of products, and the extent of the exposure as well as the realities of the domestic and international markets, enabling it to base strategic decisions for the Institution quickly and with a high degree of reliability. The market risk model also enables MB to monitor the sensitivity of interest rates, comparing the market's recent curve to past scenarios, thus simulating how these rates may vary and affect the bank's positions. In addition to daily monitoring of exposure to the sundry risk factors and the calculation of value at risk (V@R), stress tests are conducted in relation to the fluctuation of the main macroeconomic variables using historic scenarios or changes in assumptions. This also involves backtesting, or examining sample returns for occurrence of a number of losses greater than V@R, depending on the confidence level chosen. Pursuant to the CMN Resolution No. 3490/07, the Market Risk Regulatory Capital calculation methodology was modified, with the following main improvements: classification of the Trading and NonTrading (Banking) portfolios, and the inclusion of allocations for other risk factors, in addition to fixed interest rates, previously the only factor covered. For major price alterations, Mercantil do Brasil uses hedging as a means of protection in financial transactions to which it is exposed. Hedging strategy aims to offset, in full or in part, risks from exposure to variations in fair value or cash flows of any asset, liability, commitment, or future transaction. OPERATIONAL RISK Operational risk management is integrated with the strategies and business of the group's companies, aligning existing processes in practice with the prevailing policies. This type of engagement enables identification of areas having the greatest chances of risk and the most critical scenarios based on efficient management to control and mitigate operations risk exposure to which Mercantil do Brasil is subject. Operational Risk Management is performed jointly with managers of the units, seen as experts in processes, playing an important role in integration with the Risk Unit Management. This proximity to the focus of risk facilitates positive intervention and favours dynamic and participative management. Methodology used comprises qualitative and quantitative stages. The first stage entails surveying processes, identifying risks, evaluating controls and responses to risks (action plan). The quantitative stage consists of building a database for losses in order to record data on events arising from exposure to operational risk. Mercantil do Brasil also uses the following tools: KRIs, or Key Risk Indicators, Operational Risk Questionnaire CSA (Control Self Assessment), in order to generate information to maximize the efficacy of controls implemented and operating loss data, redirecting actions in order to reduce operational losses. 10

11 Businesscontinuity management, also covered within the ambit of Operational Risk Management, refers to preventive measures and steps taken in the event of business discontinuity, enabling the institution to continue operating at a minimum predetermined service level. On this basis, Mercantil do Brasil is striving to improve its ability to show resilience in relation to events that could disrupt its business. This will be achieved by developing a business continuity plan for processes assessed as critical in the Business Impact Analysis. To enhance the quality and effectiveness of strategies, plans and procedures introduced to ensure its business continuity, Mercantil do Brasil is constantly investing in new technologies, methodologies and staff training to reach increasingly higher standards of sustainability and perpetuity for its business. Internal Audit Internal Audit plays an important role in evaluating the Bank s risk management and its internal controls, stimulating the accomplishment of internal rules that all Mercantil do Brasil s subsidiaries are subject to. The department has highly qualified staff that performs their tests in MB s branch network and in the departments at the Headquarters, where the corporate activities are centralised. The Bank uses vanguard tools for executing, managing, supporting and documenting all of the work done. Internal Audit reports to the Board of Directors, developing a transparent and independent work in order to ensure that, as a result of its activities, improvements and progress in the bank s internal control are implemented, always adding value and contributing to achieving Mercantil do Brasil Conglomerate s goals. Audit Committee To ensure good corporate governance practices, the bank constituted its Audit Committee in the third quarter of 2011 to comply with CMN Resolution No. 3198/04, assist the Board of Directors with their duties and control the quality of financial statements and internal controls, thus helping to improve quality and reliability for Mercantil do Brasil's accounting data, control systems and risk management. Compensation Committee Our Compensation Committee was set up in September 2011 to ensure compliance with the CMN Resolution No. 3921/10 and assist the Board of Directors in defining and managing short and longterm corporate compensation policies. Ombudsman The Ombudsman Department s mission is to certify that Mercantil do Brasil customers have access to fast and efficient communication channels to complain and make suggestions related to the bank s services and products and receive adequate solutions for these demands. All actions are based on Ethics, Transparency, Independency, Impartiality and Guaranteed Response. Mercantil do Brasil's ombudsman acts directly by responding to any complaints received to identify and correct causes that gave rise to dissatisfaction and indirectly too, by detecting activities or procedures during which there may be dissatisfaction of this type, also acting as a final appellate body for clients who do not feel satisfied with the way their complaints have been handled by normal customer service channels. The Central Bank of Brazil regulatory agencies consumer defence entities (PROCON), the press and ombudsmen of other institutions forward all contacts made through them to the Ombudsman. Additionally all complaints which have been forwarded in the first place to the SAC (Customer Service Centre) and which for some reason have not been answered within 72 hours or did not receive a satisfactory reply in the opinion of the customer are also sent to the Ombudsman. Twiceyearly (at the end of each semester), the Ombudsman Department puts into circulation an Activities Report, which lists positive aspects and those aspects that can be improved by the Mercantil do Brasil departments in relation to services offered to customers. Telephone: Fax: (+55 31) Mail: Caixa Postal, 654 CEP: Belo Horizonte, MG, Brazil Internet (contact forms): mercantildobrasil.com.br / canais de atendimento / ouvidoria 11

12 CREDIT PORTFOLIO BREAKDOWN a) By Type and Industry Lending Operations (In R$ thousand, unless stated otherwise) Type / Industry Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Individual 43% 3,182,191 2,518,828 2,039,203 26% 56% Companies 57% 4,238,267 3,904,889 3,740,153 9% 13% Civil Construction 13% 962, , ,322 21% 19% Finance Activities 3% 259, , ,363 (25%) 10% Wholesale Business 3% 258, , ,246 14% 32% Retail Business 3% 249, , ,647 12% 21% Services 3% 237, , ,668 31% 41% Steel 2% 174, , ,642 7% 22% Logistics and Freight 2% 153, , ,488 (3%) (17%) Passenger Transport 2% 148, , ,544 (3%) 16% Civil Construction Materials 2% 136, , ,126 4% 5% Other 24% 1,657,040 1,525,136 1,538,107 9% 8% Total 100% 7,420,458 6,423,717 5,779,356 16% 28% Total Risk * 8,799,896 8,057,588 7,654,080 9% 15% * MB's personal loans with recourse in the market totalled R$1,379,438 thousand in March 2012 (R$ 1,633,871 thousand in December 2011 and R$ 1,874,724 thousand in March 2011). As of June 2011, this balance has been stated at its net value. b) By Products Products Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Working Capital 33% 2,322,533 2,253,243 2,126,734 3% 9% Payroll Deductibles INSS 23% 1,975,463 1,420,254 1,081,544 39% 83% Rev. Overdraft Facilities SME's 8% 581, , ,129 13% 18% Rev. Checking Account SME's 7% 496, , ,615 57% 45% Payroll Deductibles Public 6% 447, , ,240 8% 1% Personal Credit 6% 401, , ,734 22% 112% Rural Lending 4% 287, , ,720 5% 26% Vehicle Finance CDC 3% 219, , ,323 5% 3% Discounted of Receivables 3% 216, , ,943 (4%) (4%) Renegotiated Credits 2% 127, ,418 93,867 4% 36% Rev. Overdraft Facilities Individuals 2% 107,052 90,628 90,713 18% 18% Trade Finance 1% 63,353 68,939 20,374 (8%) 211% Real Estate 1% 61,567 57,890 43,786 6% 41% Installment Loans 1% 57,386 57,631 59,386 (0%) (3%) Purchased Credits 0% 24,846 39,417 87,968 (37%) (72%) Vehicles Leasing 0% 12,404 13,254 17,159 (6%) (28%) BNDES Loans 0% 5,744 7,053 13,335 (19%) (57%) Payroll Deductibles Private 0% 1,799 2,099 3,203 (14%) (44%) Other 0% 8,251 7,163 6,582 15% 25% Total 100% 7,420,458 6,423,717 5,779,356 16% 28% Total Risk * 8,799,896 8,057,588 7,654,080 9% 15% * MB's personal loans with recourse in the market totalled R$1,379,438 thousand in March 2012 (R$ 1,633,871 thousand in December 2011 and R$ 1,874,724 thousand in March 2011). As of June 2011, this balance has been stated at its net value. 12

13 c) By Average Ticket (in Brazilian reais) d) By Region Products Average Ticket Mar / 2012 Dec/ 2011 Mar / 2011 Rural Lending 2,132,365 1,950,105 1,712,178 Trade Finance 1,092,290 1,094, ,527 Real Estate 905, , ,330 Rev. Overdraft Facilities SME's 490, , ,108 Working Capital 339, , ,939 BNDES Loans 92,641 90,420 89,495 Vehicles Leasing 69,296 74,462 77,643 Rev. Checking Account SME's 49,150 30,461 30,117 Discounted of Receivables 30,359 30,916 20,183 Vehicle Finance CDC 25,340 23,825 17,407 Renegotiated Credits 13,460 12,225 8,294 Installment Loans 8,089 8,866 11,077 Payroll Deductibles Public 3,783 3,783 3,730 Payroll Deductibles Private 3,204 3,204 1,800 Personal Credit 2,642 2,423 2,432 Payroll Deductibles INSS 2,134 2,074 2,092 Rev. Overdraft Facilities Individuals 1,265 1,132 1,318 Other 2,452 2,408 1,451 State Mar / 2012 Dec / 2011 Mar / 2011 % Balance Balance Balance Minas Gerais 60% 4,444,857 3,804,011 3,337,817 São Paulo 17% 1,286,582 1,092, ,232 Goiás 4% 268, , ,226 Rio de Janeiro 3% 220, , ,452 Distrito Federal 2% 180, , ,005 Espírito Santo 1% 56,455 53,197 63,353 Other 13% 963, , ,271 Total 100% 7,420,458 6,423,717 5,779,356 Total Risk * 8,799,896 8,057,588 7,654,080 * MB's personal loans with recourse in the market totalled R$1,379,438 thousand in March 2012 (R$ 1,633,871 thousand in December 2011 and R$ 1,874,724 thousand in March 2011). As of June 2011, this balance has been stated at its net value. e) By Average Maturity and Duration The Bank s Credit Portfolio presented an average maturity of 11.7 in March 2012 (10.8 months in December 2011 and 11.1 months in March 2011). Credit Portfolio Mar / 2012 Dec/ 2011 Mar / 2011 Up to 1 year 66% 69% 68% More than 1 year 34% 31% 32% 13

14 f) By Risk Concentration of the Credit Portfolio Concentration Mar / 2012 Dec / 2011 Mar / 2011 Balance % Balance % Balance % Largest Debtor 103,447 1% 88,909 1% 58,005 1% 10 Largest Debtors 407,904 5% 392,718 6% 345,977 6% 20 Largest Debtors 650,349 9% 630,746 10% 532,433 9% 50 Largest Debtors 1,077,413 15% 1,042,813 16% 890,322 15% 100 Largest Debtors 1,461,749 20% 1,410,306 22% 1,221,340 21% Deposits Funding Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Demand Deposits 7% 502, , ,561 (8%) 5% Savings Deposits 3% 235, , ,843 3% 22% Time Deposits (CDBs) 86% 6,416,792 6,051,702 5,130,250 6% 25% Subordinated Time Deposits 1% 52,293 50,861 46,217 3% 13% Interbank Deposits 3% 239,146 58,446 57, % 316% TOTAL 100% 7,446,031 6,937,543 5,906,372 7% 26% Money Market Funding Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Third Parties 100% 1,529,651 1,034, ,335 48% 81% TOTAL 100% 1,529,651 1,034, ,335 48% 81% External Issues Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Securities Issued Abroad 18% 96,719 98, ,253 (2%) (47%) Securities Issued Abroad Subordinated Debt 84% 465, , ,468 (2%) (21%) TOTAL 102% 562, , ,721 (2%) (27%) Funds from Real Estate Notes Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Agribusiness Credit Notes (locally LCAs) 100% 143, , ,096 4% (24%) TOTAL 100% 143, , ,096 4% (24%) Borrowings and Onlendings Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Domestic Borrowings * 77% 260, ,531 15,812 (15%) 1548% Foreign Borrowings 21% 70,883 87,768 87,500 (19%) (19%) Domestic Onlendings 2% 5,717 7,154 16,632 (20%) (66%) Foreign Onlendings 0% 10,927 (100%) TOTAL 100% 337, , ,871 (16%) 158% Total Funding Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months TOTAL 100% 10,018,468 9,082,748 7,842,395 10% 28% * The increase shown in domestic borrowings reflected receivables fund (FDIC) transactions in the period, net of investments in subordinated quotas. 14

15 Time Deposits Breakdown a) By Currency Currencies Mar / 2012 % CDI 5,618,605 88% PRÉ 19,007 0% SELIC 116,977 2% IPCA 631,303 10% IGPM 11,279 0% OTHER 19,620 0% TOTAL 6,416, % b) By Average Maturity Average Maturity Mar / 2012 Dec/ 2011 Mar / 2011 Months Up to 1 year 19% 22% 25% More than 1 year 81% 78% 75% c) By Investor Investors Type Mar / 2012 Dec / 2011 Mar / 2011 Balance % Balance % Balance % Companies 2,753,566 43% 2,715,445 45% 2,528,064 49% Individual 2,042,484 32% 1,926,500 32% 1,697,852 33% Investment Funds 1,316,736 20% 1,135,839 19% 692,881 14% Institutional Investors 304,005 5% 273,918 4% 211,453 4% TOTAL 6,416, % 6,051, % 5,130, % Client Base MB Clients Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Individual 98% 1,523,521 1,362,719 1,162,001 12% 31% Companies 2% 30,415 30,463 30,216 (0%) 1% TOTAL 100% 1,553,936 1,393,182 1,192,217 12% 30% INSS Beneficiaries Mar / 2012 Dec / 2011 Mar / 2011 % % Balance Balance 1Q Months Clients * 57% 291, , ,714 7% 46% Collecting benefit only 43% 216, , ,815 6% 8% TOTAL 100% 507, , ,529 6% 27% * INSS beneficiary clients are included in "total MB clients 15

16 ECONOMIC SCENARIO AND FINANCIAL SYSTEM BANCO MERCANTIL DO BRASIL S.A. MANAGEMENT'S REPORT MARCH 2012 The international economic situation continues to be characterized by a weak performance of main economical blocks. The Chinese Economy is losing its strength, despite of its annual growth above 8%. The financial market is presenting improvement in liquidity, but the public financial weakness of european countries are still in evidence. The perseverance of inflation control and adoption of measures to enhance the brazilian economy expansion have been stimulated favourable expectations of GDP increase for 2012, regarding to the restrained performance of economic activities in the first quarter. Measures of tax exoneration to the productive sector in addition to the reduction of inflation and interest rate, the gradual depreciation of Real and the increase of wage bill results to a favourable situation to increase of economical activities. Credit is expected to grow 16% in 2012 with the economy increase of Brazilian Financial System. In the first quarter the increase was 2.0%, from 2.8% in first quarter of Credit risk provisions remained above of 5.5% from March Especially noteworthy CMN Resolution No was entry into force that introduce in the brazilian accounting standards international accounting practices (IFRS). In resume, establishes that assigned credits with recourse remains in the assets with a record of financial liabilties due to the obligation acquired and incomes and expenses related to this operation are recorded in the result by its remaining term. CORPORATE AND MARKET CONTEXT Main Events Capital Increase Capital increase in an amount of R$85,200 thousand by subscription of new preferred shares authorized in February 2012 is in final subscription stage. This Capital increase aims mostly to continue increase of business. Increase of Activities Mercantil do Brasil reached an increase of 15.5% on its lending operations in the first quarter, a higher performance than the market average (2.0%) and than private banks (1.2%). Such high performance represents a well done defined strategies and the result of efforts and investments realized. Operational Limits Opertaional Limits are calculated on a consolidated basis and its equity to risk assets ratio (as per Basel II Agreement) stood at 11.62% against the minimum requirement of 11.0%. Human Resources The adherence of Banking selfregulation and the continue training through facetoface and distance courses reaffirms the commitment of Mercantil do Brasil with the excellence client service. Training investments were made as a goal to ensure technical qualification of employees and leadership. There were 8,348 training courses of which 98% were distance courses and 2% were facetoface courses, both internal and external. Risk Management Credit, Operational, Liquidity and Market The corporate enterprise involves Risks and Credit, Operational, Market and Liquidity Risk Management at Mercantil do Brasil is part of the company s corporate culture. More detailed information may be found in note 18. Integrated Marketing Initiatives In the first quarter strategic customer relationship events were held regarding to its profile and segment. 16

17 Environmental Responsibility There were corporative initiatives of environmental responsibilty with emphasis to continue management of residues that has as main goal to minimise environment impact from Mercantil do Brasil activities, creating an environment conscience of its employees. More information about Mercantil do Brasil's environmental responsibility, investment policy and projects may be obtained from our website CONSOLIDATED FINANCIAL AND ECONOMIC PERFORMANCE Mercantil do Brasil's consolidated assets reached R$11.9 billion in the period, with the credit portfolio and time deposits showing significant advances. Assets and Liabilities Total Assets and Lending Operations Total Assets Consolidated Total Assets showed 13.3% growth in the first quarter. Current assets amounted to R$8.1 billion and were 74.0% higher than shortterm liabilities Interbank Investments and Securities totaled R$3.3 billion, an increase of 8.5% in the first quarter and were equivalent to 27.9% of total assets. Dec/09 Dec/10 Dec/11 Mar/12 In the consolidated longterm assets of Mercantil do Brasil are recorded securities classified as Held to Maturity, in an amount of R$110.4 million ( Consolidated R$5.4 million ) for which in accordance with Brazilian Central Bank Circular No. 3068/2001 the bank has the positive intention and capacity to hold it until its maturity Credit Portfolio Credit Portfolio presented an increase of 15.5% during the first quarter of 2012, reaching a share of 62.2% of Total Assets. Lending Operations classified in the lowrisk range from AA to C accounted for 92.7% of the total Credit Portfolio, against 91.8% in December 2011 and 92.1% in March Dec/09 Dec/10 Dec/11 Mar/12 Allowance for loan losses was 3.9% against 4.6% in December 2011 and 4.4% in March

18 Funding Total Deposits Time Deposits Dec/09 Dec/10 Dec/11 Mar/12 Dec/09 Dec/10 Dec/11 Mar/12 In Total Deposits and Time Deposits are included Subordinated Time Deposits, recorded in the liabilties account Subordinated Debt in an amount of R$52.3 million, R$50.9 million in December The available funding was raised both in the national and international markets, totalling R$10.5 billion, 14.9% higher than December 2011 and 29.4% in the last 12 months. A breakdown of these funds shows R$6.5 billion in time deposits, R$1.5 billion in moneymarket funding and R$502.2 million from demand deposits. Additionally, R$633.5 million were raised from foreign funding and loans Time Deposits, the Mercantil do Brasil s main source of funding, recorded a growth of 6.0% in the first quarter and 25.0%in the last 12 months. It is worth highlighting, the total funds derived from abroad, i.e., R$465.9million are recorded in Subordinate Debt, with maturities in 2020, in other words, the status of the capital for the purposes of capitalization levels in compliance with CMN Resolution No. 3444/07. Income and shareholder equity Mercantil do Brasil recorded a net income of R$10.5 million (R$12.0 million Consolidated) in the period, corresponding to R$ per share. Shareholders' Equity Shareholders Equity amounted to R$728.4 million (R$719.5 million Consolidated). Shareholders Equity Managed was in an amount of R$765.2 million. Dec/09 Dec/10 Dec/11 Mar/12 In Financial Income, the highlights were Lending and Leasing Operations in an amount of R$421.5 million, against R$342.8 million of the first quarter of 2011, an increase of 23.0%. In Financial Expenses reached R$349.5 million and accounted for 68.0% of Financial Income, against 64.5% of the first quarter of Provisons for Doubtful Accounts in an amount of R$100.1 million accounted for 19.5% of Financial Income, against 19.6% of the first quarter of Gross Financial Income stood in R$164.3 million, against R$141.8 million of the same previous period, an increase of 15.9%. Services Rendered fees recorded R$34.1 million, against R$28.9 million in March 2011, an increase of 18.0%. 18

19 Personnel Expenses accounted for R$76.9 million, against R$72.7 million in March 2011, a growth of 5.8%. Other Administrative Expenses recorded R$100.8 million, against R$87.9 million in March 2011, an increase of 14.7%. This growth are mainly related to the increase of the origination costs from lending operations of R$4.1 million and to rental expenses of R$4.0 million. Reference Shareholders Equity of R$1.1 billion includes the Consolidated Shareholders Equity from financial companies of Mercantil do Brasil and the Subordinated Debt up to the amount of R$368.1 million, pursuant to CMN Resolution No. 3444/07. INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries are described in a specific chart in notes to financial statements. CVM INSTRUCTION No. 381/2003 In accordance with CVM Instruction No. 381/2003, Mercantil do Brasil and its subsidiaries hereby announce that external auditors PricewaterhouseCoopers Auditores Independentes has been carried out exclusively external auditors services. FINAL COMMENTS Brazil has been successful in inflation control and has been creating favourable economic conditions with GDB growth expectations in 3.5% for Mercantil do Brasil is always considering economic scenarios and reaffirms the commitment to a sustainable growth of its business in accordance with the Bank Strategic and Market Planning. Belo Horizonte, March The Management 19

20 BALANCE SHEET (R$ Thousands) MB Bank ASSETS Note Mar / 12 Dec / 11 Mar / 12 Dec / 11 CURRENT 7,787,454 6,696,650 8,096,589 6,953,202 Cash 112, , , ,500 Interbank Investments (3) 2,946,520 2,682,523 2,805,112 2,540,609 MoneyMarket Investments 2,425,057 1,923,420 2,425,057 1,923,420 Interbank Deposits 521, , , ,189 Securities and Derivate Financial Instruments (4) 77, , , ,196 Own Portfolio 71, , , ,240 Derivative Financial Instruments (4.2) 161 1, ,432 Linked to Repurchased Agreements 5,009 15,222 Linked to Granted Guarantees ,687 5,653 24,524 Interbank Accounts 260, , , ,376 Payments and Receipts Pending Settlement 58, , Restricted Credits: Credit Deposits in the Central Bank 198, , , ,494 Restricted Credits: Credits Housing Finance System (SFH) Correspondents 3,250 2,680 3,250 2,680 Interbranch Accounts 3,123 5,815 3,123 5,815 Internal Transfers of Funds 3,123 5,815 3,123 5,815 Lending Operations (5.1) 3,991,201 3,181,167 4,343,659 3,505,970 Public Sector 3,078 3,008 3,078 3,008 Private Sector 4,064,150 3,354,955 4,422,035 3,684,951 Lending Operations Linked to Assignment (5.3) 111, ,955 (Allowance for Loan Losses) (5.2) (187,982) (176,796) (193,409) (181,989) Leasing Operations (5.1) (1,277) (464) Lease Operations Private Sector 7,801 7,555 (Leasing Income to be Appropriated) (7,554) (7,319) (Allowance for Doubtful Leasing Receivables) (5.2) (1,524) (700) Other Credits 304, , , ,320 Foreign Exchange Portfolio: Pending Settlement Purchased Foreign Exchange 59,075 67,637 59,075 67,637 Rights to Foreign Exchange Sold 3, , (Advances in Local Currency) (686) (398) (686) (398) Income Receivable from Advances Granted (5.1) 1,637 1,126 1,637 1,126 Income Receivable 12,744 4,283 12,929 2,140 Trading Operations 1,035 3,036 Sundry: Tax credits (6.1) 100,915 97, , ,486 Debtors for Purchase of Assets (5.1) 2,046 1,397 2,046 1,397 Recoverable Taxes (6.3) 9,031 8,081 18,650 16,809 Reimbursable Payments (6.4) Bonds and Credits Receivables (6.5) 88,427 96,309 90,529 98,421 Receivables from Subsidiaries Salary Advances and Prepayments 1,041 1,635 1,121 1,727 Net Loss Resulting from Renegotiation of Lending Operations (5.3) 3,895 3,895 Sundry Debtors 18,582 17,855 18,734 17,984 Other 4,406 1,778 4,449 1,807 (Allowance for other Credits Losses) (5.2) (1,013) (731) (1,013) (731) Other Assets 91,408 67, ,891 83,880 Other Assets 19,640 17,205 36,275 21,677 (Allowance for Devaluation) (3,036) (4,138) (3,101) (4,169) Prepaid Expenses (7) 74,804 54,907 86,717 66,372 20

21 BALANCE SHEET (R$ Thousands) MB Bank ASSETS Note Mar / 12 Dec / 11 Mar / 12 Dec / 11 NONCURRENT 3,757,729 3,474,682 3,830,734 3,569,707 LONG TERM ASSETS 3,340,010 3,078,669 3,720,631 3,458,699 Interbank Investments (3) 135, , , ,946 Interbank Deposits 135, , , ,946 Securities and Derivate Financial Instruments (4) 341, , , ,499 Own Portfolio 316, , , ,781 Derivative Financial Instruments (4.2) 2,561 12,718 2,561 12,718 Linked to the Central Bank 1,016 1,016 Linked to Granted Guaranties 21,188 21,188 Lending Operations (5.1) 2,317,482 2,132,934 2,654,971 2,484,618 Public Sector 1,449 2,159 1,449 2,159 Private Sector 2,204,740 2,237,775 2,546,891 2,595,010 Lending Operations Linked to Assignment (5.3) 202, ,683 (Allowance for Loan Losses) (5.2) (91,390) (107,000) (96,052) (112,551) Leasing Operations (5.1) (862) (504) Lease Operations Private Sector 4,413 5,435 (Leasing Income to be Appropriated) (4,413) (5,435) (Allowance for Doubtful Leasing Receivables) (5.2) (862) (504) Other Credits 382, , , ,694 Sundry: Tax credits (6.1) 143, , , ,024 Debtors for Purchase of Assets (5.1) 2,376 2,474 2,376 2,474 Debtors for Deposits in Guarantee (6.2) 180, , , ,461 Recoverable Taxes (6.3) 4,370 4,370 11,850 14,623 Reimbursable Payments (6.4) 8,602 8,602 27,495 28,059 Bonds and Credits Receivables (6.5) 32,714 41,239 52,491 45,059 Net Loss Resulting from Renegotiation of Lending Operations (5.3) 10,101 10,101 (Allowance for other Credits Losses) (5.2) (11) (6) (11) (6) Other Assets 163, , , ,446 Prepaid Expenses (7) 163, , , ,446 PERMANENT ASSETS 417, , , ,008 Investments 333, ,043 1,371 1,432 Equity in Subsidiaries In the Country: (8.1) Subsidiaries 332, ,861 Other Investments 1,485 1,485 2,981 3,024 (Provisions for civil lawsuits) (306) (303) (1,610) (1,592) Property and Equipment in Use (8.2) 42,868 42,468 48,310 47,942 Property in Use 5,336 5,336 Other fixed assets in use 91,131 88,756 92,638 90,238 (Accumulated Depreciation) (48,263) (46,288) (49,664) (47,632) Leased Property (8.3) 18,597 19,949 Leased Assets 25,112 26,474 (Accumulated Depreciation) (6,515) (6,525) Deferred (8.4) 1,258 1,747 1,258 1,747 Organisation and Expansion Costs 10,686 10,980 10,701 10,995 (Accumulated Amortisation) (9,428) (9,233) (9,443) (9,248) Intangible (8.5) 40,381 39,755 40,567 39,938 Intangible Assets 64,918 63,221 65,382 63,660 (Accumulated Amortisation) (24,537) (23,466) (24,815) (23,722) TOTAL ASSETS 11,545,183 10,171,332 11,927,323 10,522,909 21

22 B ALANCE SHEET (R$ Thousands) MB Bank LIABILITIES Note Mar / 12 Dec / 11 Mar / 12 Dec / 11 CURRENT 4,686,209 3,992,682 4,652,642 3,826,038 Deposits (9.1) 2,291,270 2,224,904 2,189,279 1,970,442 Demand Deposits 504, , , ,405 Savings Deposits 235, , , ,129 Interbank Deposits 608, , ,146 52,015 Time Deposits 941, ,830 1,212,333 1,141,893 Money Market Funding 1,568,996 1,072,637 1,529,651 1,034,709 Third Parties 1,568,996 1,072,637 1,529,651 1,034,709 Funds from Acceptance and Issuance of Securities (9.2) 198, , , ,173 Funds from Real Estate Notes 141, , , ,868 Securities Issued Abroad 56,633 57,305 56,633 57,305 Interbank Accounts 51, , Receipts and Payments Pending Settlement 51, , Interbranch Accounts 5,271 49,648 5,271 49,648 Third Party Funds in Transit 5,270 49,648 5,270 49,648 Internal Transfers of Funds 1 1 Borrowings 70,883 87, , ,100 Domestic Borrowings Other Institutions (2.2) 98, ,332 Foreign Borrowings (9.3) 70,883 87,768 70,883 87,768 Domestic Onlendings Official Institutions 4,024 4,870 4,024 4,870 Brazilian National Treasury Brazilian National Equipment Financing Authority (FINAME) 3,967 4,814 3,967 4,814 Other Institutions Derivative Financial Instruments (4.2) 15,551 11,409 15,551 11,409 Derivative Financial Instruments 15,551 11,409 15,551 11,409 Other Liabilities 480, , , ,652 Collected Taxes and Other (10.1) 33,582 5,543 33,868 5,700 Foreign Exchange Portfolio: Pending Settlement Sold Foreign Exchange 3, , Liabilities for Purchased Foreign Exchange 56,102 61,826 56,102 61,826 (Advances on Export Contracts ) (5.1) (54,582) (61,622) (54,582) (61,622) (Import Finance Foreign currency contracts) (10.2) 2,578 24,453 3,403 26,625 Social and Statutory (10.3) 13,697 22,613 12,781 21,537 Taxes and Social Security 1,583 3,961 Trading Operations Sundry: 2,693 2,931 Creditors for Prepaid Residual Value 26,734 34,321 26,734 34,321 Liabilities under Government Agreements 3,046 2,598 3,046 2,599 Liabilities for Purchase of Assets 24,971 26,440 25,659 27,181 Allowance for Payables Liabilities for Sale or Transfer of Financial Assets (5.3) 126, ,056 Subordinated Debt (9.4) 10,470 24,144 10,470 24,144 Sundry Creditors Country (10.5) 233, , , ,812 Other 1,509 2,241 1,509 2,241 22

23 B ALANCE SHEET (R$ Thousands) MB Bank LIABILITIES Note Mar / 12 Dec / 11 Mar / 12 Dec / 11 NONCURRENT 6,130,580 5,464,563 6,509,453 5,948,030 LONG TERM LIABILITIES 6,129,091 5,462,826 6,507,703 5,945,970 Deposits (9.1) 5,032,417 4,668,433 5,204,459 4,916,240 Interbank Deposits 2,709 9,072 6,431 Time Deposits 5,029,708 4,659,361 5,204,459 4,909,809 Funds from Acceptance and Issuance of Securities (9.2) 41,341 41,923 41,341 41,923 Funds from Real Estate Notes 1, , Securities Issued Abroad 40,086 41,267 40,086 41,267 Borrowings 161, ,199 Domestic Borrowings Other Institutions (2.2) 161, ,199 Domestic Onlendings Official Institutions 1,693 2,284 1,693 2,284 Brazilian National Treasury Brazilian National Equipment Financing Authority (FINAME) 1,524 2,115 1,524 2,115 Derivative Financial Instruments (4.2) 34,912 33,375 34,912 33,375 Derivative Financial Instruments 34,912 33,375 34,912 33,375 Other Liabilities 1,018, ,811 1,063, ,949 Taxes and Social Security (10.3) 88,820 86, , ,406 Sundry: Creditors for Prepaid Residual Value (5.1) 3,746 4,000 Reserve for Contingencies (10.4b) 126, , , ,879 Liabilities for Sale or Transfer of Financial Assets (5.3) 295, ,824 Subordinated Debt (9.4) 507, , , ,664 Deferred Income 1,489 1,737 1,750 2,060 Deferred Income 1,489 1,737 1,750 2,060 Shareholders' Equity Managed by the Bank 728, , , ,841 Minority Interest 45,687 45,108 Shareholders Equity (11) 728, , , ,733 Capital (11.1) 336, , , ,760 Brazilian Residents 332, , , ,760 Capital Increase 85,200 85,200 (Unrealized Capital) (81,534) (81,534) Capital Reserves (11.2) 17,443 17,443 17,443 17,443 Share Premium Reserve 17,443 17,443 17,443 17,443 Reserves Revaluation (11.3) Subsidiaries and Affiliates Profit Reserves (11.2) 363, , , ,237 Legal reserves 53,481 53,481 53,000 53,000 Statutory reserves 310, , , ,237 For Payments of Dividends 59,897 59,897 59,897 59,897 For capital increase 250, , , ,340 Adjustments Involving Valuation of Assets Retained Earnings 10,459 11,960 TOTAL LIABILITIES 11,545,183 10,171,332 11,927,323 10,522,909 23

24 FINANCIAL INCOME STATEMENTS For the first quarter of 2012 e 2011 MB Bank Events Note Mar / 12 Mar / 11 Mar / 12 Mar / 11 Financial Income 490, , , ,005 Lending Operations 391, , , ,070 Leasing Operations 2,865 2,715 Securities Operations 95,713 82,622 89, ,339 Derivative Financial Instruments (4.2) 438 (58,206) 438 (58,206) Foreign Exchange Operations Compulsory Investments 2,559 2,235 2,722 2,235 Financial Expenses (344,455) (252,058) (349,534) (257,186) Money Market Funding Operations (9.5) (245,581) (177,049) (245,465) (178,453) Borrowings, Assignments and Onlending Operations 383 1, ,233 Leasing Operations (2,309) (1,811) Foreign Exchange Operations (275) (275) Sale or Transfer of Financial Assets (1,738) (1,738) Provision for Doubtful Accounts (5.2) (97,244) (76,242) (100,130) (78,155) Gross Financial Income 145,787 97, , ,819 Other Operating Income / (Expenses) (132,646) (101,064) (143,905) (142,394) Services Rendered Fees (15.1) 30,384 26,787 34,096 28,878 Services Rendered Fees Other 16,342 13,239 19,657 15,015 Banking Services Fees 14,042 13,548 14,439 13,863 Personnel Expenses (15.2) (72,561) (69,201) (76,916) (72,713) Other Administrative Expenses (15.3) (93,981) (85,866) (100,764) (87,934) Tax Expenses (3,264) (2,809) (4,132) (3,651) Equity in Subsidiaries (8.1) 6,336 37,373 Equity equivalence 6,336 37,373 Other Operational Income 21,250 7,705 26,202 8,947 Revenues from Securitizing Company Operations (15.6) 3,434 Monetary Variation on Assets (15.5) 3,102 3,919 4,031 4,682 Recovery of Charges and Expenses (15.4) 7,204 1,923 7,589 2,277 Reversal of Provisions Other Revenues (15.7) 10,673 1,569 10,770 1,677 Other Operational Expenses (20,810) (15,053) (22,391) (15,921) Provisions and Equity Adjustments (2,613) (5,743) (3,423) (5,882) Provisions for recourses Assigned Credits (15.10) (2,751) (2,751) Discounts Granted (15.8) (5,095) (3,778) (5,296) (4,105) Monetary Variation on Liabilities (1,682) (381) (1,892) (484) Misappropriation (387) (238) (387) (238) Extraordinary Expenses (15.9) (4,905) (2,745) (5,032) (2,797) Other Expenses (3,377) (2,168) (3,610) (2,415) Operating Income 13,141 (3,959) 20,390 (575) NonOperating Result (16) Incomes 2, , Expenses (1,236) (166) (1,293) (203) Income before Taxes and Profit Sharing (3,270) 21, Income Tax and Social Contribution (16) (3,502) 16,029 (8,360) 13,160 Provision for Income Tax (999) (3,151) (4,991) (4,614) Provision for Social Contribution (549) (1,637) (2,787) (2,486) Deferred Tax Assets (1,954) 20,817 (582) 20,260 Statutory Income Sharing (176) (12) (178) Employees (176) (12) (178) Minority Interest (866) (603) Net Profit 10,456 12,583 11,957 12,583 INTEREST IN OWN CAPITAL NUMBER OF SHARES IN CIRCULATION (THOUSANDS) 35,400,000 35,400,000 NET INCOME PER SHARE R$ 0, ,