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

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Garey Anthony
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2 This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do Brasil, its Associated and Affiliated Companies, and Subsidiaries. Although these references and statements reflect the management s belief, they also involve estimates and unforeseen risks. Consequently, results may differ from those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market conditions. Banco do Brasil is not responsible for updating any estimate in this presentation. 2

3 4 Quarter Highlights 14 Very Small and Small Companies Services 5 BBAS3 15 Companies experience enhanced 6 1Q18 Highlights 16 Agribusiness 7 Net Income 17 Asset Quality 8 Fee Income 18 Administrative Expenses and Cost to Income ratio 9 Loan Portfolio 19 BIS Ratio 10 Individuals Loan Portfolio Guidance 11 Payroll and Mortgages 21 Digital Strategy 12 Auto Loans 22 Taking the bank to the costumer 13 Loans to Companies 23 Appendix 3

4 Quarter Highlights ADJUSTED NET INCOME Bi Increase of 20.3% ADMINISTRATIVE EXPENSES UNDER CONTROL Decreased by 0.2% on 1Q17 Decreased by 5.8% on 1Q17 FEE INCOME (1Q18/1Q17) Increase of 5.4% BB Foundations CREDIT DISBURSEMENTS (1Q18/1Q17) Individuals: + 5.3% Companies: % Agribusiness: % ASSET QUALITY IMPROVEMENT NPL+90 from 4.11% in jun/17 to 3.65% in mar/18 PROVISION EXPENSES¹ Redução de 18.8% on/1q17 Redução de 3.3% on/4q17 Human Factor Profitability Efficiency Credit and Capital Management Services Quality DIGITAL TRANSFORMATION Digital Transformation 3.3 million of individuals customers in the digital model Served by 4,465 specialized employees 588 digital and specialized branches² 1.9 million native digital customers Goal: 3 million by the end of 2018 (1) ALL Expenses gross of write-offs. (2) It includes Estilo, Empresa, Governo and Agribusiness branches and Private Banking, and also Exclusivo, Estilo and Very Small and Small Companies Offices. 4

5 30.mai jun jul ago set out nov dez jan fev mar abr mai jun jul ago set out nov dez jan fev mar abr may.2018 At R$ BBAS3 appreciated 143% while Ibovespa grew by 72% BBAS3 Price (R$) 44, ,63 IBOV Points ,0 34,0 29, , , , , , ,37 14, , BBAS3 BBAS3 Minimum BBAS3 Maximum Ibovespa BBAS3 Adjusted Closing Price from May 30 th, 16 to May 9 th,18. Past performance is no guarantee of future returns. This information is based on Economatica data. 5

7 Adjusted Net Income reaches R$ 3.0 billion with 13.2%¹ ROE 12.4% 13.2 % R$ billion 6.6% T16 1Q17 1Q18 Adjusted Net Income Net Income Market ROE¹ (1) Market ROE: reflects the metric that the main market analysts use to project results. 7

8 Fee Income at R$ 6.5 billion R$ billion % 6.5 1Q18/1Q17 Highlights Capital Market 34.2% Consortium 28.1% Asset Management 9.7% Checking Account 9.1% 1Q17 1Q18 Fee Income 8

9 Loan Portfolio¹ reaches R$ billion R$ billion % 6.2% -0.8% % 6.2% 26.1% % 26.9% % 40.8% % Mar/17 Dec/17 Mar/18 Foreign Branches and Subsidiaries Agribusiness Individuals Companies (1) Expanded View. 9

10 Individuals Loan Portfolio¹ % Portfolio Breakdown 23.0% 38.1% 2.6% 10.6% 25.7% Payroll Loan Salary Loan Other Mar/17 Mar/18 Mortgage Auto Loan R$ billion (1) It considers the organic Loan Portfolio. 10

11 Payroll and mortgages are highlights R$ billion Payroll Portfolio¹ Mortgage Loans¹ % % % +72.6% Mar/17 Mar/18 1Q17 1Q18 Mar/17 Mar/18 1Q17 1Q18 Balance Disbursements Balance Disbursements (1) It considers the organic Loan Portfolio. 11

Auto Loans R$ billion Mobile BB Banco Votorantim Transactions Amount 1Q17: 28% of the transactions were hired through mobile 1Q18: 53% of the transactions were hired through mobile 28.2 +10.3% +2.

12 Auto Loans R$ billion Mobile BB Banco Votorantim Transactions Amount 1Q17: 28% of the transactions were hired through mobile 1Q18: 53% of the transactions were hired through mobile % +2.1% Disbursements Since launch until 1Q18: R$ 1.2 bi disbursed 1Q18: Disbursement was 65% higher than 1Q17 Mar/17 Dec/17 Mar/ Goal: reach R$ 2 bi in disbursements Auto Loans Transaction cost 60% lower than the transaction cost in a branch Consolidated with BB 20.1% Market Share in Mar/ % Market Share Mar/18 12

13 Loans to Companies¹ at R$ billion R$ billion % -1.6% Change (%) on Dec/17-8.0% The Bank of Foreign Trade Growth of ACC/ACE transactions (1Q18/1Q17) + 100% on the contracted amount % on the portfolio balance - 0.2% Market Share 28.5% of the ACC/ACE transactions 20.0% of the Export Exchange transactions Specialized Services 1.4 thousand dedicated employees Products, services and advisory Mar/17 Dec/17 Mar/18 Very Small and Small Companies² Middle Market, Corporates and Government (1) Expanded View. (2) Companies with annual revenues up to R$ 25 million. Opportunities 41 thousand customers are importers/exporters 13 thousand contract foreign services with BB 13

14 Very Small and Small Companies Services R$ billion % 35.6% % 33.4% 1Q18 Numbers 157 specialized branches Foreign Trade Investment Working capital/receivables More than 685 thousand customers counting on specialized services 63.0% 64.5% 63% of the disbursements were receivables 86.5% are customers with relationships of over 5 years with BB Mar/17 Mar/18 14

Companies experience enhanced Presence optimization 13 Corporate Offices 69 Empresarial Offices 45 Business Platforms More than 12,000 groups and 37 thousand customers Services model improvement

15 Companies experience enhanced Presence optimization 13 Corporate Offices 69 Empresarial Offices 45 Business Platforms More than 12,000 groups and 37 thousand customers Services model improvement Reorganizing Teams Companies Visits APP Technology adds value, speeds up services and reinforce CRM Middle Office Empowers business origination and improves delivery Service Specialization More than 1,300 employees dedicated to the customers 15

Agribusiness More than R$ 1 billion in credit through mobile in 2018 First to be Digital Comfort, convenience and agility to contract Best in Class Banco do Brasil is the Bank of the Agribusiness

16 Agribusiness More than R$ 1 billion in credit through mobile in 2018 First to be Digital Comfort, convenience and agility to contract Best in Class Banco do Brasil is the Bank of the Agribusiness #VAINOAPP Agribusiness Portfolio Mar/ % R$ billion Mar/ % +6.4% Agroindustrial Rural (1) Expanded portfolio. It includes Rural Product Bills and guarantees provided. (2) Source: Brazilian Central Bank. 2017/2018 Harvest Disbursements (1Q18) % 17.3% 16.2% 20.7% 62.0% +10.8% 68.5% Crop 16/17 Crop 17/18 Medium Size Producers - Pronamp Small Producers - Pronaf Companies Leveraged businesses at specialized fairs, supporting the producer 59.0 % Market Share in Mar/18² 16

17 Asset Quality Delinquency Ratios +90 days (%) Provision balance (R$ billion) and coverage ratio (%) % Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 BB +90 days Provision Expenses (R$ billion)¹ -18.8% -3.3% Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 BB BB ex-specific case Banking Industry 1Q17 2Q17 3Q17 4Q17 1Q18 (1) ALL Expenses gross of recovery of write-offs. 17

18 Administrative Expenses and Cost to Income ratio¹ Mar/17: 99,964 employees Mar/18: 97,981 employees Decrease of 1,983 employees -2.0% % Mar/17: 4,429 Traditional branches 448 Digital and Specialized branches² Mar/18: 4,159 Traditional branches 588 Digital and Specialized branches² 1Q17 2Q17 3Q17 4Q17 1Q18 R$ billion Administrative expenses Cost to Income Ratio (12 months) Mar/17: 4,963 employees at the digital model³ Mar/18: 9,428 employees at the digital model³ Migration of 4,465 employees +90% (1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. (2) It includes Estilo, Empresa, Governo and Agribusiness branches and Private Banking, and also Exclusivo, Estilo and Very Small and Small Companies Offices. (3) Estilo branches and Exclusivo and Estilo Offices. 18

19 BIS Ratio % BIS Ratio Common Equity Tier I Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 CET 1 Target: minimum of 11% in January

20 2018 Guidance Guidance Q18 Performance Adjusted Net Income - R$ billion 11.5 to NII (Net of Recovery of Write-offs) - % -5 to Organic Domestic Loan Portfolio - Expanded View - % 1 to Individuals - % 4 to Companies - % -3 to Rural Loans - % 4 to ALL Expenses net of Recovery of Write-offs - R$ billion -19 to Fee Income - % 4 to Administrative Expenses - % 1 to

Digital Strategy Evolution High income customers in the digital model (thousand)¹ 5 million

Efficiency Increase of the service capacity per manager Customers with a manager assigned

5% in Estilo +25% in Exclusivo (1) It refers to the customers in the Estilo, Exclusivo and

21 Digital Strategy Evolution High income customers in the digital model (thousand)¹ 5 million customers with a manager assigned 421 1,260 2,445 3,262 Profitability² Up to 40% higher Efficiency Increase of the service capacity per manager Customers with a manager assigned are more Satisfied Dec/15 Dec/16 Dec/17 Mar/ % in Estilo +25% in Exclusivo (1) It refers to the customers in the Estilo, Exclusivo and Personalizado segments. (2) Managerial result generated by customer consumption of products and services, less the operating expenses. 21

Taking the bank to the costumer Transactions Mar/16 Mar/17 Mar/18 Conta Fácil Mobile 34.3% 44.9% 53.3% Internet 28.5% 24.7% 21.2% ATM 19.4% 14.2% 11.6% On-site¹ 3.9% 3.6% 3.

(2) POS, Agents in the Country and other. 28.

22 Taking the bank to the costumer Transactions Mar/16 Mar/17 Mar/18 Conta Fácil Mobile 34.3% 44.9% 53.3% Internet 28.5% 24.7% 21.2% ATM 19.4% 14.2% 11.6% On-site¹ 3.9% 3.6% 3.0% Other² 13.9% 12.5% 11.0% 1/3 of the accounts opened in BB 1.9 million native digital customers¹ In 2018: Reach 3 million digital customers (1) Cashier. (2) POS, Agents in the Country and other. 28.4% of the individual loans² were originated in the digital channels on the 1Q18 (1) Customers that started the relationship with Banco do Brasil through the Conta Fácil, from Nov/2016 to 04/30/2018. (2) Quantity of loan operations carried out via internet and mobile. It does not include credit cards and mortgage loans. 22

23 24 25 Disbursements Vintages 23

24 Disbursements quarterly average¹ (1Q16 base 100) Brazil Portfolio Individuals Portfolio % % % +5.3% Q16 1Q17 1Q18 1Q16 1Q17 1Q18 Agribusiness Portfolio Companies Portfolio % % % % 147 1Q16 1Q17 1Q18 1Q16 1Q17 1Q18 (1) Gross disbursements. Does not include revolving lines of credit and overdraft. 24

25 Delinquency 90 days Delinquency 90 days Vintages 5.00% Annual Vintage Individuals Loan Portfolio 20% Annual Vintage Very Small and Small Companies Loan Portfolio 4.00% 15% 3.00% 10% 2.00% 1.00% 5% 0.00% 0% Months Months Vintage: 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A Vintage: 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 25

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

Take care of what MATTERS to PEOPLE

Take care of what MATTERS to PEOPLE Disclaimer This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do Brasil, its Associated and Affiliated Companies,