DAYCOVAL S LOAN PORTFOLIO REACHES R$4.5 BILLION IN 2Q08

DAYCOVAL S LOAN PORTFOLIO REACHES R$4.5 BILLION IN 2Q08 São Paulo, July 30, 2008 Banco Daycoval S.A. ( Daycoval or Bank ) (Bovespa: DAYC4), one of the leading middle market lenders in Brazil and also active in loans to individuals via payroll loans and auto loans, announced today its results for the second quarter of 2008 (2Q08). Except where otherwise stated, the financial and operating information herein is presented on a consolidated basis and in Brazilian Reais. 2Q08 Conference Call July 31, 2008 English 11 am US EST 12 pm BR Tel: +1 (412) 858 4600 Code: Banco Daycoval Portuguese 9 am US EST 10 am BR Tel: +55 (11) 4688-6301 Code: Banco Daycoval Investor Relations Carlos Lazar Superintendent Gustavo Schroden Manager Natalie Ramalhoso Analyst Tel: +55 (11) 3138-1024/1025 ri@daycoval.com.br HIGHLIGHTS The loan portfolio reached R$4.5 billion, for growth of 15.8% compared with 1Q08 (and 105.8% compared with 2Q07). Middle market was the fastest-growing segment, recording an increase of 14.2% in the quarter while accounting for roughly the same share of the total portfolio; In June Daycoval received the formal approval to be an onlending agent for BNDES, the national development bank. This new product is part of the Bank s diversification strategy and creates cross-selling opportunities in the middle market segment. To match credit portfolio growth, funding rose 21.9% to R$3.9 in the quarter. In addition to focusing on time deposits, up 19.6% compared with 1Q08, the Bank successfully issued two tranches of Eurobonds in the international market, raising a total of US$225 million during June and July; Net income totaled R$62.5 million in 2Q08 (R$132.6 million in 1H08). See non-recurring effects on page 4; During 2Q08 Daycoval opened two new branches (in Campo Grande, Mato Grosso do Sul State, and the second in Campinas, São Paulo State), mainly for the middle market segment. In addition, 17 Daycred Stores focusing on loans to individuals were opened as part of an exclusive expansion pilot project; Upgrades from rating agencies and recognition as the Best Middle Market Bank by FGV/Conjuntura Econômica reflected the solidity and credibility achieved by Daycoval in its 40 years of history. Key Figures (R$ MM) 2Q08 1Q08 Chg. % 2Q07 (1) Chg. % Income from Financial Intermediation (2) 148.2 154.1-3.8% 98.6 50.3% Income from Operation 76.6 98.3-22.1% 30.7 149.5% Net Income 62.5 70.2-11.0% 46.5 34.4% Shareholders Equity 1,597.4 1,562.7 2.2% 1,451.2 10.1% Total Assets 7,971.8 7,199.3 10.7% 5,148.3 54.8% Loan Portfolio 4,493.6 3,879.7 15.8% 2,183.4 105.8% Funding 3,858.3 3,165.6 21.9% 2,172.8 77.6% Net Interest Margin (NIM) (% p.a.) 10.8% 12.0% -1.2 p.p 12.6% -1.8 p.p Return on Average Equity (ROAE) (% p.a.) 16.7% 19.4% -2.7 p.p 40.5% -23.8 p.p Efficiency Ratio (3) (%) 31.7% 27.4% 4.3 p.p 23.2% 8.5 p.p BIS Index (%) 25.6% 33.1% -7.5 p.p 51.1% -25.5 p.p (1) Net income, ROAE and Efficiency Ratio exclude IPO expense. (2) Adjusted due to reclassification of exchange-rate variation. (3) Excludes non-recurring effects of adjustment to appropriation of commissions in 2Q08 and 1Q08. Page 1 of 26

Message from Management The international financial markets displayed acute instability at moments during the first six months of 2008, owing mainly to losses recorded by some financial institutions. This was especially the case in the U.S. and Europe. In Brazil, the sound economic fundamentals achieved in recent years and strengthened by growth in 2007 have helped keep positive expectations regarding demand for credit during this year. In this context Daycoval continues to display a low level of leverage even while expanding its credit portfolio and outperforming the market average on several key performance indicators. This reflects the Bank s long track record of conservative and prudential management. At end-june 2008, with a loan portfolio of R$4.5 billion, up 29.3% compared with December 2007, the portfolio was still only about 2.8 times equity, demonstrating solid capitalization and the capacity to take advantage of the best opportunities for growth even at times of volatility. This has only been possible thanks to initiatives to develop new business both in the middle market segment, with the opening of new branches and the creation of new products, and in retail, with the opening of Daycred Stores in all parts of the country. Another important driver of growth has been the focus on funding, including international bonds issues that were successful to the point of being significantly oversubscribed. This reflected Daycoval s credibility even at a time of acute uncertainty in global markets. Other highlights of the period included recognition in the form of upgrades from the top international credit rating agencies and a new award for the best middle market bank in Brazil. With all these achievements, as we completed our first year of listing on BOVESPA we strengthened our commitment to the unremitting pursuit of high profitability with low risk, enhancement of management practices, and continuous reinforcement of transparency to the entire market. Macroeconomic Overview Domestic demand remained vigorous in the first half of 2008, as evidenced by 5.8% GDP growth year over year in the first three months. Business investment expenditures and consumer spending were both robust, driving strong demand for bank loans. Among the highlights of 2Q08 was the award of investment grade to Brazil by two important rating agencies even in a period of volatility originating in international financial markets. However, inflation measured by the official consumer price index (IPCA) accelerated to 2.87% in the first five months of the year, compared with 1.79% in the corresponding period of 2007. The trailing 12-month inflation rate has been above the mid-point of the target band since January, and the gap has steadily widened. The rate was 5.58% in the 12 months through May, up from 3.56% a year earlier. The Brazilian Central Bank responded to this inflationary pressure by opting for a strict monetary policy, raising its benchmark Selic rate 175 basis points between April and end-july to 13.0% p.a. Alongside monetary tightening, the inflow of foreign direct investment, which was US$13.9 billion in the first five months of 2008, up from US$10.5 billion a year earlier, continued to drive local currency appreciation against the US dollar, which reached 10.1% in the first half and 17.3% in the trailing 12 months (based on the end-of-period official PTAX offered rate). The Credit Market in Brazil & Growth of Credit in Proportion to GDP The credit market has continued to expand vigorously despite inflation pressure and interest rates. Consumer finance and auto loans have been key drivers of household consumption in the last six months. Demand for corporate loans has also been strong, rising 3.6% between March/08 and May/08, with working capital loans in the lead. Delinquency and default have remained stable, with 4.0% of installments over 90 days past due in May/08, down 0.3 of a percentage point compared with a year earlier. Page 2 of 26

The volume of credit in the financial system in May 2008 totaled R$1,067.0 billion, for growth of 2.1% in the month and 33.4% in 12 months. Considering non-earmarked credit only, corporate loans accounted for 52.7% and loans to individuals for 47.3%. Volume of Credit in Brazil An indicator that shows how much room for growth there still is in 1,200.0 40% the credit market is the ratio between the total volume of credit 1,000.0 and the GDP. Currently this ratio is around in the same level of 800.0 30% observed in 1994 (36.6%), registering 36.5% in Jun/08 and 600.0 20% 36.3% in May/08. 400.0 10% Loan loss provisions throughout the national financial system totaled R$55.7 billion in June, rising 3.8% in the quarter and corresponding to 5.2% of the aggregate credit portfolio, compared 200.0 0.0 0% with 5.4% in March. Volume (R$ Billion) % do GDP Management believes the probable maintenance of an austere monetary policy by the Brazilian Central Bank in the next 12 months, as expected by the markets, will be sufficient to control the inflationary pressure verified in the Brazilian economy. In this context, it is likely that the volume of credit will expand more slowly during the coming year, especially in segments of retail lending. Although monetary tightening is set to continue, Daycoval remains optimistic about the dynamism of domestic demand, the maintenance of investment expenditures at current levels, and consequently the pace of GDP growth. 1994 1996 1998 2000 2002 2004 2006 Jun 08 Page 3 of 26

Considerations on non-recurring effects and adjustments in the 2Q08 Results In light of the impact of non-recurring effects and adjustments on Daycoval s results in 2Q08, Management has provided the following chart showing the key factors to be considered. In doing so, our aim is to maintain a high standard of transparency and facilitate understanding and analysis by the market: Non-recurring items Analysis in: See: Impact Amount 1 Downgrade from A to B of risk rating for stock of auto loans in accordance with a more conservative policy of automatically attributing a minimum rating of B to all such loans from their inception. Credit Portfolio Quality Pages 10 & 11 Negative (R$3.0 million) 2 Adjustment to loan risk ratings for previous periods, doubling the number of days in arrears computed for operations maturing in more than 36 months in accordance with usual market practice and as permitted by Central Bank Resolution 2682. Credit Portfolio Quality Pages 10 & 11 Positive R$9.4 million 3 Recognition in 2Q08 of the cost of hedging a US$100 million foreign bond issue for two years. Financial Performance Page 15 Negative (R$7.3 million) 4 Adjustments to the appropriation of commissions from contracts of the retail loans, which had been paid in advance since 2007. Commission Expenses Page 16 Negative (R$5.0 million) 5 Recognition of tax credit due to the effect of the increase from 9% to 15% in the rate at which the Social Contribution on Net Income (CSLL) is levied, in accordance with Law 11.727, dated June 23, 2008. Income Tax & Social Contribution Page 16 Positive R$6.8 million (net) Other Relevant Effects Analysis in: See: Impact Amount 1 Cost of mark to market hedging for foreign issues in the amount of US$205 million. Financial Performance Page 15 Negative (R$9.1 million) 2 Exchange rate variation on investments in overseas subsidiaries & affiliates. Financial Performance Page 15 Negative (R$2.0 million) (net) 3 Effect of the increase from 9% to 15% in the rate at which the Social Contribution on Net Income (CSLL) is levied, in accordance with Law 11.727, dated June 23, 2008. Income Tax & Social Contribution Page 16 Negative (R$3.5 million) (net) Profitability Net income was R$62.5 million in 2Q08, for a decrease of 11.0% compared with the previous quarter (R$70.2 million in 1Q08) and stable compared with 4Q07 (R$62.2 million). Negative earnings growth in the quarter mainly reflected adjustments to non-recurring items reported in the period, mentioned previously and explained in this document. Considering all non-recurring items and relevant effects (which amounted to minus R$7.9 million net), net income would be R$70.4 million in the quarter. Net Income (R$ MM) 70.2 62.5 12.6 Net Interest Margin (NIM) (% p.a.) 12.0 10.8 Return on Averege Equity (ROAE) (% p.a.) 40.5 46.5 19.4 16.7 2Q07(*) 1Q08 2Q08 (*) Excludes IPO expense. 2Q07 1Q08 2Q08 2Q07 (*) 1Q08 2Q08 Page 4 of 26

Net Interest Margin (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Income from Financial Intermediation 148.2 154.1-3.8% 98.6 50.3% Gross Income from Financial Intermediation 92.0 149.2-38.3% 75.6 21.7% Exchange Rate Variation (1) 56.2 4.9 n.a. 23.0 144.3% (+) Loan Loss Privision 28.1 29.5-4.7% 10.8 160.2% Income from Financial Intermediation adjusted by Loan Loss Provision and Exchange Rate Variation (A) 176.3 183.6-4.0% 109.4 61.2% Average Remunerated Assets (B) 6,789.6 6,379.4 6.4% 3,655.9 85.7% Interbank Investments 1,756.7 2,033.0-13.6% 1,138.1 54.4% Securities and Derivatives 752.2 731.4 2.8% 525.8 43.1% Lending Operation 3,992.4 3,434.7 16.2% 1,921.2 107.8% Trade Finance 288.3 180.3 59.9% 70.8 307.2% Net Interest Margin (% p.a.) (A/B) 10.8 12.0-1.2 p.p 12.6-1.8 p.p (1) Reclassified from Other Operating Revenues/Expenses. As a result of the effects observed, annualized net interest margin (NIM), adjusted by loan loss provisions and exchange-rate variation, was 10.8% in 2Q08, down 1.2 p.p. and 1.8 p.p. from 1Q08 and 2Q07 respectively. Annualized NIM was 11.2% in the first half. Asset Breakdown Assets Breakdown 10% 28% 52% 10% Interbank Investments Lending Operation Securities and Derivatives Other Assets Assets Breakdown (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Total Assets 7,971.8 7,199.3 10.7% 5,148.3 54.8% Interbank Investments 2,248.5 2,113.5 6.4% 2,019.2 11.4% Securities and Derivatives 775.5 746.9 3.8% 724.0 7.1% Lending Operation 4,193.2 3,596.8 16.6% 2,066.5 102.9% Other Assets 754.6 742.1 1.7% 338.6 122.9% ROAE e ROAA (R$ MM) 2Q08 1Q08 Chg. % 2Q07 (1) Chg. % Net income (A) 62.5 70.2-11.0% 46.5 34.4% Average Shareholders' Equity (B) 1,583.7 1,548.3 2.3% 523.7 202.4% Average Assets (C) 7,108.3 6,844.2 3.9% 3,858.6 84.2% Return on Average Equity (ROAE) (% p.a.) (A/B) 16.7% 19.4% -2.7 p.p 40.5% -23.8 p.p Return on Average Asset (ROAA) (% p.a.) (A/C) 3.6% 4.2% -0.6 p.p 4.9% -1.3 p.p Net Income / Loan portfolio (% p.a.) 5.7% 7.4% -1.8 p.p 8.8% -3.1 p.p (1) Net Income and Average Equity exclude effects of IPO. Return on average equity (ROAE) was 16.7% in 2Q08, down 2.7 p.p. from 1Q08, reflecting the fall in net income. Return on average assets (ROAA) also fell: it was 3.6% in 2Q08, down from 4.2% in 1Q08. Lending is the main source of revenue for Daycoval, as evidenced by the ratio of net income to loans. Showing that profitability still remains high, this indicator of the return on loan assets in percentage terms was 5.7% annualized in 2Q08, compared with 7.4% in 1Q08 and 7.2% in 4Q07, all of which outperformed the peer-group average. Page 5 of 26

Operating Performance Distribution Proceeding with its plan to expand coverage nationwide, Daycoval opened two new branches in 2Q08 (in Campo Grande, Mato Grosso do Sul State, and a second branch in Campinas, São Paulo State), mainly to attend the middle market segment. The distribution network now has 27 branches for corporate customers, located in 16 states and the Federal District. The Cayman Islands branch became fully operational during 2Q08 and contributed to the success of two international bond issues during the last months. A new approach to customer relationship management was introduced in the retail segment in 2Q08, with the opening of 17 exclusive banking correspondents identified as Daycred Stores in ten different states as a pilot project to offer the full array of products and services available from the Bank. The initial focus is on loans to individuals. Among the main goals of this new type of relationships are: (i) diversification and increased granularity of retail operations; (ii) extension of Daycoval s geographical coverage without incurring increased fixed costs; (iii) reduction of the distance between retail customers and the Bank; and (iv) reduced dependency for correspondents and promoters. Daycred Stores are located in towns with at least 150,000 inhabitants and sublet to outside professionals with ample experience in the financial services industry and strong regional relationships. These professionals are responsible for origination as well as bearing the entire cost of the operation except opening the store. Their remuneration takes the form of a specific commission on each type of product, in accordance with the usual market rates and characteristics. Daycoval published its 2007 Annual Report during the period, summarizing the main events of the past calendar and financial year. Page 6 of 26

Credit Portfolio Loan Portfolio by Type (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Loans 3,105.8 2,687.9 15.5% 1,773.2 75.2% Discounted Trade Notes 269.3 234.3 14.9% 193.1 39.5% Financings / Trade Finance 1,118.5 957.5 16.8% 217.1 n.a. Total 4,493.6 3,879.7 15.8% 2,183.4 105.8% The total volume of Daycoval s credit operations was R$4,493.6 million at end-june 2008, for growth of 15.8% in the quarter. The volume of credit in the national financial system grew 11.4% between March and June 2008, according to the Brazilian Central Bank. Daycoval s lending operations grew 105.8% in the last 12 months. Middle market lending resumed a faster pace of growth after 1Q08, when expansion was limited by an even more conservative credit policy than usual as well as seasonal factors. Alongside Daycoval s experience and capacity for origination, this resumption of rapid growth was a response to the Brazilian economy s moment of expansion and confidence, which in turn reflected an increase in the amount of business investment. Total Loan Portfolio (R$ million) 4,493.6 3,879.7 3,476.0 2,826.3 2,183.4 2Q07 3Q07 4Q07 1Q08 2Q08 The volume of loans in the portfolio totaled R$3,105.8 million at end-june 2008, for growth of 15.5% in the quarter. This type of operation grew 20.9% in 1H08 and 75.2% in the last 12 months. Growth in operations linked to the vehicle segment, observed since end-2006, explains the current share of financing in the consolidated credit portfolio. In June 2008 this type of facility (financing) accounted for 24.9% of the total portfolio, unchanged from 1Q08 but up 15.0 p.p. compared with the corresponding period of 2007. The volume of financing in 2Q08 was R$1,118.5 million, up 16.8% in the quarter and 80.5% in the last six months. Another way of measuring Daycoval s lending performance is to analyze a breakdown of the portfolio by segment, as shown in the following chart: Loan Portfolio by Segment (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Middle Market / Other 2,624.2 2,298.6 14.2% 1,669.2 57.2% Trade Finance 276.9 268.4 3.2% 100.4 175.8% Payroll-Deductions 770.1 647.5 18.9% 305.0 152.5% Auto 822.4 665.2 23.6% 108.8 n.a. Total 4,493.6 3,879.7 15.8% 2,183.4 105.8% Daycoval s credit portfolio grew in step with the growth in demand for credit seen in the corporate segment throughout the national financial system in recent months. The portfolio of middle market loans plus trade finance totaled R$2,901.1 million in 2Q08, for growth of 13.0% in the quarter and 16.3% in the last six months. In the last 12 months, growth was equivalent to 63.9%. The retail portfolio (payroll and auto loans) totaled R$1.592.5 million in June 2008, for growth of 21.3% and 62.4% compared with March 2008 and December 2007 respectively. The increase in middle market lending helped maintain the composition of Daycoval s consolidated credit portfolio, reinforcing the strategy of diversifying operations without losing its corporate loans focus and expertise. At end-june 2008 middle market loans plus trade finance accounted for 64.6% of the total portfolio, assuring maintenance of the Bank s conservative credit policy, customer selectivity, and control of loan security. With regard to retail operations, it is important to highlight that the pace of growth between 1Q08 to 2Q08 was slower than 4Q07 to 1Q08. As a result, payroll and auto loans accounted in aggregate for 35.4% of the total credit portfolio at end-june 2008, practically flat on the position at end- March 2008, which was 33.8%. Page 7 of 26

Vehicles 18% Payroll Deductible 17% Trade Finance 6% June/08 Middle Market / Other 59% March/08 Vehicles 17% Middle Market / Other 59% Payroll Deductible 17% Trade Finance 7% Payroll Deductible 14% Trade Finance 5% Vehicles 5% June/07 Middle Market / Other 76% Middle Market: After a first quarter marked by caution throughout the market as well as seasonal effects, Daycoval returned growth in the middle market segment, demonstrating confidence in the fundamentals of the Brazilian economy and excelling as usual in terms of portfolio quality. The volume of loans to small and medium enterprises totaled R$2,624.2 million in June 2008, for growth of 14.2% in the quarter and 16.3% in the first six months of the year. These operations accounted for 58.4% of the Bank s total credit portfolio at the end of the second quarter, compared with 59.2% at end- March 2008. Trade Finance: Loans to finance imports and exports totaled R$276.9 million in 2Q08, for growth of 3.2% in the quarter. It is noteworthy that despite the external volatility seen in the period Daycoval opened new lines of credit and established new partnerships with correspondent banks. Another highlight was completion in May 2008 of the opening of the Cayman branch, which is already being used as an instrument for various transactions. BNDES: In June 2008 Daycoval received a formal approval to be an onlending agent by BNDES, the national development bank, and will operate with a significant volume in this segment. The BNDES lines offered by Daycoval comprise long-term financing for investment projects, and for new plant and equipment, as well as facilities designed to promote export growth and viability. Together with Daycoval s own lines of trade finance, BNDES onlending is an important instrument of crossselling to the middle market segment. The start of these operations also accords with the strategy of diversifying the Bank s product and service offering and thus expanding customer base and building stronger customer relationships. The new area is staffed by professionals with ample experience in financial markets and specialized skills in thus type of product. DayCred, the brand created for Banco Daycoval s retail business, offers loans to individuals, especially payroll loans to salaried employees in the public and private sectors, and auto loans, among other products and services. Payroll Loans: Payroll lending growth continued in 2Q08, with an increase in the number of agreements to 259 (210 in the public sector and 49 in the private sector) at end-june 2008 and in the number of correspondents (to 520 in 2Q08 from 430 in 1Q08), as well as the new Daycred Stores. This portfolio totaled R$770.1 million in 2Q08, for growth of 18.9% in the quarter and 41.9% in 1H08. Portfolio growth in the last 12 months was 152.5%. Loans extended under the new agreements drove growth in this segment during the period. At the end of 2Q08 the payroll lending portfolio comprised 223,000 contracts, for an average ticket of R$3,500, up from R$3,200 in the previous quarter. Production of Payroll-Deduction Loans (R$ MM) 201.4 202.2 174.3 149.0 Some 17,000 contracts were formalized in 2Q08, originating R$202.2 million. The fastest-growing codes were Law Courts and Legislative Bodies, which together accounted for 29.1% 83.6 of the total originated in 2Q08, compared with 7.5% in 1Q08. These codes belong to a very specific niche with an outstandingly low delinquency rate and high average ticket. Operations with INSS, the National Social Security Institute, accounted for 19.9% of originations in 2Q08 (17.2% in 1Q08) 2Q07 3Q07 4Q07 1Q08 2Q08 and for 30% of the total payroll lending portfolio at end-june 2008, compared with 32% in the previous quarter. Despite recent regulatory changes, Daycoval expects growth in its payroll lending to continue thanks to the work done to diversify the base of employers in its portfolio and hence to guarantee adequate production and returns. Page 8 of 26

Average Ticket - Payroll-Deduction (R$'000) 3.2 3.5 2.6 2.9 2.3 2Q07 3Q07 4Q07 1Q08 2Q08 Breakdown of Payroll-Deduction Portfolio - June/08 Municipalities 10% Law Courts and Legislative Bodies 11% Others 6% Private 2% INSS 30% Army 18% Federal Government 23% Auto Loans: In line with the dynamism of the automotive sector, Daycoval s portfolio of auto loans continued to grow strongly in 2Q08, totaling R$822.4 million in June for growth of 23.6% compared with 1Q08 and 87.8% compared with 4Q07. Through 146 correspondents and more than 8,000 registered dealerships, Daycoval originated R$203.6 million in 2Q08, compared with R$256.9 million in 1Q08. The quarterly drop of 20.7% in origination reflected measures taken earlier in the year to maintain the quality of auto loans in the overall product mix, including a reduction in the proportion of approvals through more rigorous credit analysis and some increases in interest rates. More than 16,000 contracts were signed in 2Q08, down from 22,000 contracts in 1Q08. Production of Auto Loans (R$ MM) 256.9 221.5 131.2 203.6 Breakdown of Auto Loans Portfolio - June/08 Heavy-duty Vehicles 15% 63.6 2Q07 3Q07 4Q07 1Q08 2Q08 Motorcycles 14% Small Vehicles 71% Small vehicles remained the main driver, accounting for 71% of total volume at end-june 2008. Heavy-duty vehicles loans again increased share, accounting for 15% of the portfolio in 2Q08, up from 13% at end-march. Daycoval s business model for the segment continued to differ from the usual market practice. A combination of nationwide coverage, strong relationships with dealerships, distribution through exclusive correspondents and thorough credit analysis assure competitiveness and attractive returns with commission costs at adequate levels. The focus remained on vehicles with ten years of use on average, since these carry lower tickets (R$9,300 on average), shorter maturities and less depreciation than the rest of the market, alongside higher spreads than new vehicles. The average spread on auto loans, considering the average installment plan of 42 months (average duration: 20 months), is approximately 0.83% per month, equivalent to 10.4% p.a. This demonstrates that despite an expected loss of about 4%, this type of loan produces returns in excess of the market average. Considering the total balance of payments receivable (PMT s) from the start of operations until March 2008, the liquidity of this portfolio remained stable on about 95% at the end of 2Q08. Liquidity of the Auto Loans Portfolio - Aug-06 to Mar-08 R$ (MM) % Accum. PMTs received in advance 50.3 37% 37% PMTs received on date of maturity 29.4 22% 59% PMTs received with delay of 30 days 36.9 27% 86% PMTs received with delay of 60 days 7.7 6% 92% PMTs received with delay of 90 days 2.3 2% 94% PMTs received with delay of 120 days 1.0 1% 94% PMTs received over 120 days 0.9 1% 95% PMT s overdue 6.8 5% 100% Liquidity of the Auto Loans Portfolio 128.4 95% Outstanding PMT s Total Amount 135.2 100% Page 9 of 26

1 0 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 0% 2Q08 Results Credit Portfolio Quality The following chart shows loan risk ratings and characteristics according to Central Bank rules, as well as the respective shares of the total portfolio and loan loss provisions in 2Q08, excluding loans assigned to the FIDC receivables investment fund (R$149.0 million): Rating Required Banco Daycoval - R$ MM LLP / Provision Loans % Provision Loans AA 0.0% 1.6 - - - A 0.5% 1,158.7 26.7% 5.8 - B 1.0% 2,982.7 68.7% 29.8 - C 3.0% 75.2 1.7% 2.3 - D 10.0% 27.0 0.6% 2.7 - E 30.0% 25.9 0.5% 7.8 - F 50.0% 16.1 0.4% 8.0 - G 70.0% 11.0 0.3% 7.7 - H 100.0% 46.4 1.1% 46.4 - Total 4,344.6 100.0% 110.5 2.5% In 2Q08 Daycoval adopted a more conservative policy by changing its auto loan risk rating policy. Each auto loan is now rated at least B for risk from the start of the operation. The ratings for the volume of existing loans have been changed accordingly. While this measure has lowered overall credit portfolio quality, Management is confident that the new rating policy reflects the characteristics of the automotive financing market more fairly and accurately. The non-recurring effect of the change on loan loss provisions in 2Q08 was negative in the amount of R$3.0 million. Another change made to the methodology for loan risk management was to double the number of days in arrears computed for operations maturing in more than 36 months, in accordance with usual market practice and as permitted by Brazilian Central Bank Resolution 2682. The change was implemented in 2Q08, with a positive non-recurring effect on loan loss provisions for periods prior to 2Q08 in the amount of R$9.4 million. 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 Provisions / Loan Portfolio (non-consolidated) - R$ MM 2,720 3,288 2,073 1,782 1,582 2.8% 2.4% 2.1% 2.0% 2.3% 3,734 2.5% 4,345 2.5% Risk Level - June/08 D-H 2.9% AA-C 97.1% 0 2006 1Q07 1H07 9M07 2007 1Q08 1H08 Loan Portfolio Provisions as % of Loan Portfolio The efficiency of Daycoval s risk assessment policy and risk management is also demonstrated by the quality of its loan portfolio: 97.1% of the loans are rated AA-C according to the methodology used by the Brazilian Central Bank (Resolution 2682). The next chart presents a breakdown of loan ratings by segment using the same criteria as above. Middle Market / Trade Finance / Others (R$ MM) Payroll-Deductions (R$ MM) Auto Loans (R$ MM) 2Q08 Loans % Provision 2Q08 Loans % Provision 2Q08 Loans % Provision AA - C 2,689.9 97.8% 25.4 AA - C 752.2 97.7% 3.9 AA - C 776.0 94.4% 8.5 D - G 33.4 1.2% 13.2 D - G 9.3 1.2% 2.6 D - G 37.4 4.5% 10.5 H 28.8 1.0% 28.8 H 8.6 1.1% 8.6 H 9.0 1.1% 9.0 Total 2,752.1 100.0% 67.4 Total 770.1 100.0% 15.1 Total 822.4 100.0% 28.0 Total Provision / Loans 2.4% Total Provision / Loans 2.0% Total Provision / Loans 3.4% Page 10 of 26

Loan Loss Provisions (LLP) (1) Loan Loss Provision (LLP) (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Balance at the Begining of the Period 95.2 74.5 27.8% 41.4 130.0% Establishment of Provision 28.1 29.5-4.7% 10.8 160.2% Middle Market + Trade Finance + Others 17.2 12.5 37.6% 7.4 132.4% Payroll-Deductions 2.8 4.0-30.0% 2.2 27.3% Auto 8.1 13.0-37.7% 1.2 n.a. Write-offs (12.8) (8.8) 45.5% (8.1) 58.0% Middle Market + Trade Finance + Others (8.7) (6.1) 42.6% (4.5) 93.3% Retail (4.1) (2.7) 51.9% (3.6) 13.9% Final Balance (R$ MM) 110.5 95.2 16.1% 44.1 150.6% Loan Loss Provision / Total Loan Portfolio (%) 2.5% 2.5% 0.0 p.p 2.1% 0.4 p.p LLP Balance / Middle Market + Trade Finance + Others (%) 2.4% 2.4% 0.0 p.p 2.0% 0.4 p.p LLP Balance / Payroll-Deductions (%) 2.0% 2.3% -0.3 p.p 3.2% -1.2 p.p LLP Balance / Auto (%) 3.4% 3.2% 0.2 p.p 1.7% 1.7 p.p Overdue Loans (2) 58.0 48.4 19.8% 18.3 216.9% Overdue Loans / LLP Balance (%) 190.5% 196.7% -6.2 p.p 241.0% -50.5 p.p W rite-offs / Total Loan Portfolio (%) 0.3% 0.2% 0.1 p.p 0.4% -0.1 p.p Recovered Loans 1.7 1.1 54.5% 3.6-52.8% (1) Banco Daycoval S.A. non-consolidated. (2) Refers to loans more than 60 days past due. Loan loss provisioning amounted in 2Q08 to R$28.1 million, down 4.7% from R$29.5 million in 1Q08. The decrease resulted mainly from reclassification of risk ratings for loans with more than 36 months outstanding, for which the number of days in arrears was doubled for the purposes of risk assessment, as permitted by Brazilian Central Bank Resolution 2682/99. Loan loss provisions for the auto loan portfolio fell from R$13.0 million in 1Q08 to R$8.1 million in 2Q08. Loan loss provision for the payroll loan portfolio fell from R$4.0 million to R$2.8 million in the same period. If this change in risk ratings had been effected in 1Q08, the amount of loan loss provision set aside in that quarter would have been R$23.8 million. In this case the ratio of total LLP to total loans would have been 2.4%, the LLP/loans ratio in payroll lending would have been 2.0%, and LLP/loans for the auto loan portfolio would have been 2.5%, including also the impacts of the downgrading from A to B in the risk rating, as previous mentioned. Loan loss provisions for the middle market portfolio amounted in 2Q08 to R$17.2 million, up from R$12.5 million in 1Q08. The increase was due mainly to growth in middle market lending plus trade finance in the period. The volume of loans written-off in 2Q08 totaled R$12.8 million, compared with R$8.8 million in 1Q08. The balance of LLP at end-june 2008 was R110.5 million, equivalent to 2.5% of the Bank s total portfolio excluding the FIDC. The LLP balance was equivalent to 190.5% of the total amount of past-due loans at the end of 2Q08, evidencing maintenance of overall credit portfolio quality. It is also important to note that debt recoveries amounting in 2Q08 to R$1.7 million, up 54.5% compared with 1Q08. Loan Portfolio Maturities Daycoval s strategy of lengthening average loan duration is linked to the fact that the initiative favors portfolio growth while also maintaining more attractive returns. In 2Q08 loan durations were unchanged compared with the previous quarter. Loans outstanding: June/08 March/08 June/07 Over 360 days 28,4% From 181 to 360 days 15,3% Up to 180 days 56,3% Over 360 days 27,6% From 181 to 360 days 15,5% Up to 180 days 56,9% Over 360 days 16,4% From 181 to 360 days 12,1% Up to 180 days 71,5% Page 11 of 26

Retail operations, which had increased as a share of the total credit portfolio until 1Q08, stabilized on this criterion in 2Q08 and as a result the rate at which duration lengthened in the period remained practically unchanged. Loans with more than 360 days outstanding accounted for 28.4% in 2Q08, compared with 27.6% in 1Q08. In June 2007 the proportion was 16.4% and retail loans accounted for 19.0% of the total credit portfolio. In 2Q08, 71.6% of outstanding loans still had 12 months or less to run, evidencing a comfortable liquidity situation for Daycoval s lending operations. The average time to maturity was approximately 6 months for loans to small and medium enterprises and about 20 months for retail (payroll and auto loans) in June 2008. Funding Because funding is a key element of Daycoval s growth strategy, the cash position is always high and diversification of funding sources remains a priority alongside adequate tenors. The highlights in 2Q08 were international funding transactions and intensification of efforts to attract new depositors. Funding (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Demand Deposits + Other Deposits 115,3 125,5-8,1% 114,3 0,9% Time Deposits 2.451,4 2.049,8 19,6% 1.449,1 69,2% Interbank Deposits 384,3 262,6 46,3% 91,5 320,0% Foreign Issuances 392,6 216,6 81,3% 358,9 9,4% Borrowing and Onlending 514,7 511,1 0,7% 159,0 223,7% Total 3.858,3 3.165,6 21,9% 2.172,8 77,6% Funding (R$ million) Funding Breakdown - 2Q08 2,172.8 2,447.8 2,977.3 3,165.6 3,858.3 3% 13% 64% Demand Deposits + Other Deposits Time deposits Interbank deposits 10% Foreign Issuances 10% Borrowing and Onlending 2Q07 3Q07 4Q07 1Q08 2Q08 The new macroeconomic scenario and the new outlook for interest rates reinforced the strategy already adopted by Management to assure funding growth aligned with growth in the credit portfolio. Total funding amounted in 2Q08 to R$3,858.4 million, for growth of 21.9% in the quarter and 29.6% in 1H08. Growth in the last 12 months was 77.6%. Deposits of all types accounted for 76.5% of total funding at end-june 2008, compared with 77.0% in 1Q08 and 78.3% in 4Q07. Time deposits performed strongly in 2Q08 as a result of efforts to attract new depositors. At end-june 2008 the volume of time deposits totaled R$2,451.4 million, for growth of 19.6% in the quarter. This type of deposit accounted for 63.5% of total funding, compared with 64.8% in 1Q08 and 64.1% in 4Q07. Time Deposit Breakdown (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Legal Entities 501,2 428,2 17,0% 403,9 24,1% Individuals 317,0 254,4 24,6% 156,4 102,7% Investment Funds 1.299,1 1.081,8 20,1% 624,6 108,0% Institutional 303,4 246,6 23,0% 170,4 78,1% Financial Institutions 30,7 38,8-20,9% 93,8-67,3% Total 2.451,4 2.049,8 19,6% 1.449,1 69,2% Among the various types of deposit, Daycoval prioritized deposits by individual and corporate customers mainly because the cost and tenor of these deposits best match the middle market portfolio. Investment funds (including exclusive funds for individual or corporate investors) remained an important source of funding in the time deposit category, accounting for 53% of the total and reaching R$1,299.1 million in 2Q08. Deposits by individuals grew 24.6% in 2Q08 and 31.4% in the last six Page 12 of 26

months, reaching R$317.0 million at end-june 2008. Deposits by pension funds totaled R$303.4 million, for growth of 23.0% in the quarter. Foreign issues were also important in 2Q08, both in pursuance of the strategy of diversifying funding sources while maintaining capital adequacy, and to sustain growth in retail operations while demonstrating Daycoval s access to international markets. They also evidenced investor confidence in the Bank s solidity even at a time of acute volatility in global markets. In June 2008 Daycoval raised US$125 million with a two-year tenor through its Cayman Islands branch, paying semiannual interests with a coupon of 6.875% and an issue price equivalent to 99.77%. This was the first tranche issued after expansion of Daycoval s Eurobond Program to US$1 billion. The Program is listed on the Irish Stock Exchange in the form of Senior Unsecured Notes. Standard & Poor s rated the Bond BB-. Foreign issues in 2Q08 totaled R$392.6 million, for growth of 81.3% in the quarter and 82.9% in 1H08. In July 2008 Daycoval issued a new tranche of the Eurobond Program, also through its Cayman Islands branch, in the amount of US$100 million with a three-year tenor, paying semiannual interests and a coupon of 7.250% and an issue price equivalent to 99.67%. More information on this issue can be found in the section on Subsequent Events. Borrowing and onlending obligations totaled R$514.7 million in 2Q08, practically without growth over 1Q08. This balance mainly comprised credit lines totaling US$127.5 million extended in 2007 up to five-year term by two multilateral lenders, Inter-American Development Bank (IDB) and International Finance Corporation (IFC). Borrowing and onlending obligations rose 19.5% in 1H08 owing to the growth in trade finance, mainly at the start of 2008. Loan Portfolio - Outstanding Operations (June/08) 4.4% 0.7% Funding - Outstanding Operations (June/08) 3.8% 3.0% 23.3% 40.3% 31.4% 41.7% 31.3% 20.1% Up to 3 months From 1 to 3 years Over 5 years From 3 to 12 months From 3 to 5 years No maturity From 3 to 12 months From 3 to 5 years Up to 3 months From 1 to 3 yeras The average duration of funding operations was 333 calendar days in 2Q08, while the average loan portfolio duration was 371 calendar days. As noted earlier, the alignment and proper matching of funding sources and duration are of paramount importance to Daycoval, given the different characteristics of the modalities of credit extended. In this context it must be stressed that the average duration of time deposits, the principal source of funding for the middle market segment, continued to exceed that of the loan portfolio. To support strong growth in retail lending, the Bank utilizes lines with longer durations such as the recent foreign issues. 350 300 250 200 150 100 50 Average Term (calendar days) 2Q07 3Q07 4Q07 1Q08 2Q08 Time Deposits Middle Market, Trade Finance and Others Loan Portfolio Total Funding / Loan Portfolio (non-consolidated) 105% 90% 91% 85% 89% 2Q07 3Q07 4Q07 1Q08 2Q08 Page 13 of 26

In June, 2008 89% of the non-consolidated loan portfolio was covered by the balance of total funding, up from 85% in 1Q08, and Daycoval also had some R$900 million in cash and equivalents. This position evidences compatibility between funding and lending in each segment, avoiding asset/liability mismatches and assuring liquidity in all operations as well as a comfortable position from which to sustain the growth expected by Management. Capital Structure Shareholders Equity Shareholders Equity totaled R$1,597.4 million at end-june 2008, for growth of 10.1% year over year taking into account the effects of the IPO held in 2Q07. Basel Index The Basel Index recorded in the 2Q08 was 25.6%. Around 3.4 p.p. of the reduction over the previous quarter is due to the non-used amount raised through its foreign branch to support credit operations in Brazil, which implied the addition of the lower absolute amount between the currency exposure in Brazil and abroad to compose the total amount of the currency exposure, according to Circular 3367/07 from Brazilian Central Bank. Had this impact been excluded, the Basel Index for 2Q08 would be 29.0%. 1,451.2 Shareholders' Equity (R$ MM) 1,562.7 1,597.4 51.1 Bis Ratio (%) 33.1 29.0 25.6 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08(*) (*) Adjusted as mentioned above. Loan Portfolio/Shareholders Equity It is important to highlight that Daycoval s leverage has behaved as expected by Management since the IPO in June 2007, evidencing the favorable conditions for sustained growth and minimizing the impact of possible market crises. At end-june 2008 the loans-to-equity ratio was 2.8, compared with 1.5 a year earlier and 2.3 in 4Q07. 1.5 Loan Portfolio / Shareholders' Equity (times) 1.9 2.3 2.5 2.8 2Q07 3Q07 4Q07 1Q08 2Q08 Page 14 of 26

Financial Performance Income from Financial Intermediation Income from Financial Intermediation (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Loans Operations 229.5 220.9 3.9% 144.9 58.4% Middle-Marlket + Trade Finance + Others 132.7 130.8 1.5% 105.6 25.7% Payroll-Deductions 52.3 46.6 12.2% 34.0 53.8% Auto 55.4 43.4 27.6% 7.0 n.a. Foreign Exchange Variation (Middle Market) (10.9) 0.1 n.a. (1.7) n.a. Securities Operations 62.0 71.8-13.6% 36.8 68.5% Derivatives (1) (41.9) 1.0 n.a. (25.8) n.a. Foreign Exchange Operations (see adjustements below) - 5.9 n.a. 3.4 n.a. Compulsory Investments 2.3 1.9 21.1% 0.5 n.a. Total 251.9 301.5-16.5% 159.8 57.6% Adjustment on Derivatives 39.0 5.2 n.a. 33.4 n.a. Adjustment on Foreign Exchange Operations 5.6 0.9 n.a. - n.a. Reclassified from Expenses from Financial Intermediation (6.7) - n.a. - n.a. Reclassified from Others Operating Income/Expenses 12.3 0.9 n.a. - n.a. Adjusted Total 296.5 307.6-3.6% 193.2 53.5% (1) Includes in 2Q08 a negative value of R$39.0 million for hedging on foreign issues. (2) Includes in 2Q08 a positive value of R$22.2 million reclassified from Other Operating Revenues and a negative value of R$9.9 million reclassified from Other Operating Expenses. Adjusted income from financial intermediation in 2Q08 was R$296.5 million, down 3.6% from 1Q08. In the last 12 months income from financial intermediation rose 53.5%, owing mainly to credit portfolio growth in the period. Income from loans operations in 2Q08 totaled R$229.5 million, up 3.9% in the quarter and 58.4% year over year. The negative impact equivalent to R$10.9 million under this heading in 2Q08 was due to exchange-rate variation on onlending operations in accordance with Brazilian Central Bank Resolution 2770. Income from trading securities amounted to R$62.0 million, down 13.6% in the quarter. This item accounted for 24.6% of the Bank s total revenue in 2Q08, compared with 23.8% in 1Q08. The adjustment to income from derivatives traded to hedge foreign issues and borrowings was R$39.0 million in 2Q08, reflecting mainly the effects of local currency appreciation against the dollar, but also the cost of mark-to-market hedging for foreign issues. It is important to stress that the balance exposed to these effects also increased significantly owing to the fundraising transactions effected in the period. The reclassifications of income from foreign-exchange transactions were also motivated by depreciation of the dollar in the period. Expenses on Financial Intermediation Expenses on Financial Intermediation (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Funds from Securities Repurchase Agreements (1) (114.2) (107.8) 5.9% (71.3) 60.2% Borrowings and Onlendings Operations (2) (10.8) (15.0) -28.0% (2.0) n.a. Foreing Exchange Operations (3) (6.7) - n.a. - n.a. Loan Loss Provision (LLP) (28.1) (29.5) -4.7% (10.8) 160.2% Total (159.8) (152.3) 4.9% (84.1) 90.0% Adjustment on Funds from Securities Repurchase Agreements 23.1 2.7 n.a. 23.0 0.4% Adjustment on Borrowings and Onlending Operations 20.8 1.3 n.a. - n.a. Adjustment on Foreign Exchange Operations 6.7 - n.a. - n.a. Adjusted Total (109.2) (148.3) -26.4% (61.1) Excludes R$23.1 million in 2Q08 relating to exchange-rate variation on foreign issues classified in Other Operating Revenues. 78.7% (2) Excludes R$20.8 million in 2Q08 relating to exchange-rate variation on foreign borrowings classified Other Operating Revenues. (3) Reclassified to Income from Financial Intermediation (Results of Foreign-Exchange Transactions). Expenses on financial intermediation adjusted in accordance with the above chart in 2Q08 was R$109.2 million, down 26.4% in the quarter. Most of the decrease was due to local currency appreciation in 2Q08. Expenses incurred with loan loss provisions amounted to R$28.1 million, down 4.7% in the quarter owing to changes in the risk rating methodology. Page 15 of 26

Expenses Personnel and Administrative Expenses (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % Personnel Expenses (17.6) (16.2) 8.6% (11.8) 49.2% Administrative Expenses (1) (17.7) (15.2) 16.4% (10.9) 62.4% Total (35.3) (31.4) 12.4% (22.7) 55.5% Commission Expenses (total) (2) (23.1) (20.5) 12.5% (3.8) n.a. Payroll-Deductions (11.5) (12.1) -4.6% (2.9) n.a. Auto Loans (11.6) (8.5) 36.7% (0.9) n.a. Adjusted Total (58.4) (51.9) 12.4% (26.5) 120.3% (1) Excludes expenses incurred with IPO in 2Q07. (2) Excludes non-recurring effects of adjustment to appropriation of commissions in the amount of R$5.0 million in 2Q08 and R$2.8 million in 1Q08. The sum of personnel and other administrative expenses was R$35.3 million in 2Q08, for growth of 12.4% in the quarter and 11.7% compared with 4Q07. It is worth recalling that the sum of these two expense items displayed practically zero growth in 1Q08 compared with 4Q07. These numbers evidence new efficiency gains in a period when growth in the credit portfolio accelerated. The expenses shown in the above chart totaled R$58.4 million, up 12.4% in the quarter. The following changes occurred in line items under this heading during 2Q08: Personnel Expenses To accompany the growth of its business, Daycoval invests in recruitment, selection and the professional development of its staff. Personnel expenses in 2Q08 totaled R$17.6 million, up 8.6% in the quarter owing mainly to expansion of the workforce. The number of employees rose 10.4% to 677, from 644 in 1Q08. This growth was in line with expectations and with the expansion of Daycoval s activities. A good portion of the new people were employed in the commercial area to contribute to growth of the credit portfolio. The sales force (front office) comprised 208 people in June 2008, up from 194 in the previous quarter. Other Administrative Expenses Other administrative expenses amounted in 2Q08 to R$17.7 million, up 16.4% in the quarter. The increase was due to the opening of new branches during the quarter, as well as investment in infrastructure and consulting services to support the growth in business activities. Other administrative expenses corresponded to 7.0% of income from financial intermediation in 2Q08, compared with 5.0% and 6.3% in 1Q08 and 4Q07 respectively. Commission Expenses Commission expenses amounted in 2Q08 to R$23.1 million, for growth of 12.5% in the quarter. During 2Q08, Daycoval did amend in the appropriation of commissions from contracts, which had been paid in advanced since 2007, in the retail segment (payroll and auto loans). The amount appropriated was R$7.3 million (R$5.9 million on payroll loans and R$1.4 million on auto loans). Excluding adjustments to commission expense due to the impact of the amend in appropriation, the amounts booked in 2Q08 and 1Q08 would have been R$25.4 million (adjustment of R$2.3 million) and R$17.7 million (adjustment of R$2.8 million) respectively. The rest of the adjustment (R$2.2 million) refers to 2007. Other Operating Revenues/Expenditures Other operating revenues in 2Q08 totaled R$67.8 million, of which R$66.1 million resulted from exchange-rate variation. Other operating expenses amounted to R$16.6 million, of which R$12.3 million resulted from exchange-rate variation. Thus excluding the effects of exchange-rate variation, the net result was a net operating expenses of R$2.9 million, up from R$2.4 million in 1Q08. The rise was due mainly to an increase in provisions for civil litigation. Income Tax & Social Contribution Another non-recurring event in 2Q08 was the recognition of R$6.8 million under the heading Deferred Taxes, due to the effect of an increase from 9% to 15% in the rate at which the Social Contribution on Net Income (CSLL) is levied (Law 11.727, dated June 23, 2008). It is noteworthy that the effect in the current social contribution provision amounted to R$ 3.5 million in 2Q08, due to the increase of this rate. Page 16 of 26

Profit Sharing Program (PSR) In 2008 Daycoval will continue to comply with the terms of its Profit Sharing Program (PSR) for all active employees. The first payment was made in 2007, amounting to some R$15 million. Provisions made for PSR plus profit sharing under a separate union agreement (PLR) amounted in 2Q08 to R$3.7 million and in 1H08 to R$7.5 million. Efficiency Ratio Efficiency Ratio (R$ MM) 2Q08 1Q08 Chg. % 2Q07 Chg. % (+) Personnel + Administrative Expenses + Commisions (1) (58.4) (51.9) 12.4% (26.5) 120.3% (+) Depreciation and Amortization 0.4 0.4-0.4 - Total expenses (A) (58.0) (51.5) 12.5% (26.1) 122.1% (+) Income from Financial Intermediation + LLP 120.3 178.7-32.7% 85.8 40.2% (+) Income from Services Provided + Fees 6.1 4.3 41.9% 3.6 69.4% (+) Exchange Rate Variation 56.2 5.0 n.a. 23.0 144.3% Total (B) 182.6 188.0-2.9% 112.4 62.5% Efficiency Ratio (A/B) (%) 31.7 27.4 4.3 p.p 23.2 8.5 p.p (1) Includes effects of adjustment to appropriation of commissions in 2Q08 and 1Q08, and excludes IPO expense in 2Q07. The efficiency ratio was 31.7% in 2Q08 and 29.6% in 1H08. Performance in this ratio was affected by the change in accounting for commissions and by non-recurring events in the period. Nevertheless, Daycoval still has one of the best efficiency ratios in its peer group. The efficiency ratio for 2Q08 and 1H08 considering provisions for expenses with the PSR and PLR profit sharing programs would be 33.8% and 31.6% respectively. Ratings In April 2008, following a review, Fitch Ratings reaffirmed the ratings it awarded Daycoval in 2007 and maintained its positive outlook. Also in April 2008, Risk Bank awarded Daycoval a low risk mid-term rating with an index of 10.69 no alert gaps, based on the financial statements for the year ending on December 31, 2007. In May 2008 Standard & Poor s upgraded from stable to positive the outlook for Banco Daycoval s counterparty credit rating on both its global scale and its Brazil national scale. At the same time Standard & Poor s reaffirmed the ratings awarded in 2007. According to S&P, We have upgraded the outlook to reflect our opinion that Banco Daycoval continues to present solid results and to benefit from growth in the Brazilian credit market. Stronger capitalization and a focused strategy have enabled the bank to grow market share in the middle market segment and diversify its product base, while also gradually improving its financial and business profile. All ratings shown in the chart on this page evidence the low level of risk and the solidity achieved by Banco Daycoval in its operations. Agencys Ratings Global Scale - Counterparty rating Long-Term BB- Short-Term B National Scale - Counterparty rating Long-Term bra Short-Term bra-2 Outlook Positive Positive Period of Balance Sheet Analyzed 12/31/2007 Rating published date 5/16/2008 The reports issued by rating agencies are taken very seriously by the financial market but should not be construed as an investment recommendation. Global Scale Foreign Currency Local Currency Long-Term BB- Long-Term BB- Short-Term B Short Term B National Scale Long-Term A (bra) Short-Term F1 (bra) National Scale Long-Term AA- Short-Term A-1 Stable Positive Stable 12/31/2007 12/31/2008 4/18/2008 4/7/2008 Low Risk - mid-term Index 10.22 No Alert Gaps 12/31/2008 July 2008 Page 17 of 26