O tempo todo com o Brasil 4Q03 Earnings
Highlights Largest Bank in Brazil in Total Assets Leadership in Assets Under Management Leadership in Credit Operations Leadership in Total Funding Customer Base Customers in BB’s Internet Largest ATM Network in Latin America Largest network service in the country 2
efficiency reflected in numbers Highlights R$ million 4Q023Q034Q03s/4Q02s/3Q03 Total Assets204,595215,134230, Credit Operations 1 62,90072,60177, Security Portfolio70,94374,05569, Deposits 2 97,253103,071110, Asset Management - R$ bi Shareholders’ Equity9,19711,68712, Market Capitalization6,69911,71217, Net Income ROE % Earnings Per Share - R$ Change % 3 1- Credit operations, Leasing operations and others credits, according Res. 2682/ Demand, Time, Savings and Interbank 3 - Net Income included 4 - Annualized
2,028 2, adding value to shareholders... Net Profit and Return On Equity R$ million Q021Q032Q033Q034Q03 Net ProfitROE % The result of the year allowed a R$ millions remuneration to shareholders in the form of Interests on Equity, as dividends. This amount is 28.7% higher than the amount paid in the year of 2002.
result building up 55 Increase in Credit Operations Expansion in Service Fees “Other Administrative Expenses” under control Pricing increase in the security portfolio Reduction in the delinquency ratios Overall enhancement in Credit Global Risk
solid results Income Statement with Reallocations 6 R$ million 1,231 1, %11.6%3,493 4, % Income Tax and Social Contribution (352) (516) (453) 28.8%-12.2%(1,188) (2,067) 74.0% Profit sharing (43) (50) (155) 258.9%210.9%(145) (273) 88.7% Recurrent Result %15.1%2,160 2, % Extraordinary items - - (128) (132) (238) 79.7% Net Income %-4.1%2,028 2, % Quarterly FlowAnnual Flow
Analysis of volume and spread ready to a new environment 7 * average R$ million 4Q023Q034Q03s/4Q02s/3Q Year Gross Financial Margin 4,148 3,888 3, %2.3%13,575 15, % Asset (-) Permanent 207, , , %5.9%181, , % Spread Annualized Quarterly FlowAnnual Flow 13,575 (241) 2,019 (36) Spread - % Volume - R$ million , ,237 Loss due to spread decrease Loss due to spread and volume increase Gain due to volume increase
asset quality preserved R$ million 8 4Q023Q034Q03s/4Q02s/3Q Year Gross Financial Margin 4,148 3,888 3, %2.3%13,575 15, % Provision for NPL (855) (747) (827) -3.3%10.7%(2,876) (3,073) 6.9% Net Financial Margin 3,293 3,141 3, %0.3%10,699 12, % Quarterly FlowAnnual Flow Q021Q032Q033Q034Q Q023Q034Q Loss / PortfolioExpenses with Provisions/Portfolio Overdue Loans/Total Credit Portfolio Overdue more than 15 days/Total Credit Portfolio Overdue more than 60 days/Total Credit Portfolio Delinquency ratio %Loss Ratio - Annualized %
margin growth guaranteed by business diversification 9 4Q023Q034Q03s/4Q02s/3Q Year Net Financial Margin 3,293 3,141 3, %0.3%10,699 12, % Service Fees 1,159 1,412 1, %7.0%4,454 5, % Turnover Tax Expenses (249) (242) (289) 15.9%19.6%(703) (1,004) 42.8% Contribution Margin 4,203 4,312 4, %1.4%14,450 16, % Quarterly FlowAnnual Flow 4Q023Q034Q03s/4Q02s/3Q Year Receitas de Prestação de Serviços1,159 1,412 1, %7.0%4,454 5, % Customers Relations Fees %10.7%1,280 1, % Management of Investment Funds %3.0% % Loan Operations %4.5% % Collection %10.3% % Services to Related Companies %-22.4% % Third Revenue and Payments %2.4% % Credit Cards %20.0% % Others %4.5%894 1, % Quarterly FlowAnnual Flow R$ million
Asset Management customers’ loyalty and asset management leadership R$ billion Customer Base - in thousands Q021Q032Q033Q034Q03 Asset ManagementMarket Share % 14,399 14,905 15,645 15,937 17, ,005 1,073 1,112 1,217 4Q021Q032Q033Q034Q03 IndividualsCompanies
cost structure suitable with business generation R$ million 4Q023Q034Q03s/4Q02s/3Q Year Contribution Margin 4,203 4,312 4, %1.4%14,450 16, % Administrative Expenses (2,728) (2,931) (3,149) 15.4%7.4%(9,761) (11,298) 15.7% Commercial Income 1,476 1,381 1, %-11.4%4,689 5, % Quarterly FlowAnnual Flow 4Q023Q034Q03s/4Q02s/3Q Year Administrative Expenses(2,728) (2,931) (3,149) 15.4%7.4%(9,761) (11,298) 15.7% Other Administrative Expenses(1,197) (1,221) (1,165) -2.7%-4.6%(4,097) (4,514) 10.2% Employees Expenses(1,504) (1,681) (1,949) 29.6%15.9%(5,548) (6,660) 20.0% Salaries(802) (779) -2.8% (2,782) (2,992) 7.6% Social Charges and Benefits(466) (495) (493) 5.7%-0.5%(1,604) (1,881) 17.2% Training(11) (10) (17) 53.7%70.9%(31) (41) 33.7% Labor Suits(86) (80) (435) 406.2%442.3%(373) (881) 136.5% Provisions for vacation/leaves(137) (292) (222) 62.7%-24.0%(753) (860) 14.3% Quarterly Flow Annual Flow 11
Points of Service - in thousands Human Resources- in thousands cost structure suitable with business generation 12 9,169 9,362 9,546 9,712 9,979 3,164 3,183 3,209 3,218 3,241 4Q021Q032Q033Q034Q03 OthersBranch Q021Q032Q033Q034Q03 EmployeesInterns
productivity equation completed by technology Automatization Electronic Transition / Operating Income - % Efficiency Ratio - % % 13 Coverage Ratio - % Service Income/Personnel Expenses Q021Q032Q033Q034Q Q021Q032Q033Q034Q % 76.9% 77.6% 79.6% 81.4% 82.5%82.4% 84.1% 84.6% 85.0% 85.2% 86.4% Charge/01JUN/01SEP/01DEC/01MAR/02JUN/02SEP/02DEC/02MAR/03JUN/03SEP/03DEC/ dec/02dec/03 ATM InternetFinancial ManagerPOSCashier Administrative Expenses / Operational Income
R$ million BB - the bank that most invests in Brazil Market Funding - R$ billion Asset Composition - % 14 dec/02sep/03dec/03s/dec/02s/sep/03 Total Assets 204, , ,144 12,5%7.0% Liquid Assets 90,343 91, , %11.8% Credit Operations 51,470 60,442 65, %8.5% Tax Credit 11,847 9,897 9, %-5.0% Other Assets 50,935 53,168 52, %-0.9% Total Liabilities 204, , , %7.0% Deposits 97, , , %6.7% Other Liabilities 98, , , %7.6% Stockholders Equity 9,197 11,687 12, %4.1% dec-02mar-03jun-03sep-03dec dec/02sep/03dec/03 Liquidity assets Credit Operations Tax Credit Other Assets Interbank Deposits Demand Deposits Savings Deposits Time Deposits Open Market Funds Total
Securities Portfolio liquidity preserved R$ million Securities Portfolio Maturity - % dec/02mar/03jun/03sep/03dec/03 Up to 1 yearUp 5 to 1 yearsUp 10 to 5 yearsOver 10 years CostMarket V.CostMarket V.CostMarket V. Securities Portfolio 72,958 70,943 74,043 74,055 69,210 69,590 Available for trading 3,584 3,585 5,372 5,393 16,054 16,095 Available for sale 43,274 41,303 43,159 43,158 27,924 28,307 Held to Maturity 25,763 25,109 24,821 Derivatives Q034Q034Q02
well balanced credit portfolio - R$ 77.6 billions Credit Portfolio Dec/02 - R$ 62.9 billions Dec/ % 22.3% 26.7% 12.1% 16.4% 2.5% 20.6% 20.9% 35.0% 9.5% 12.2% 1.9% RetailCommercialAgribusinessInternationalAbroadOthers
BBNFS Retail Portfolio by Risk Level Shares % - December/03 strong position in retail portfolio RetailCommercialAgribusinessInternational BB SFN
ability to increase businesses with customers Capital Adequacy R$ million BIS Ratio -% dec/02mar/03jun/03sep/03dec/03 Level ILevel II ,680 30, %-11.1% Coefficient K %
insurance and private pension Insurance Revenue R$ million 19 Insurance / Net Aggregated Value ,9% 71,1% 27,0% Insurance GFMOthers Total Auto Life and Others Capitalization PLans Private Pension Health Manag. Insur. Funds % 80.6% 16.6% 3.2% 75.3% 21.4%
Market recognition dec/02mar/03jun/03sep/03dec/03 PriceBook ValuePrice/BV - x Price X Book Value 20
Strategies lined up with the future 21 To add value to shareholders Adequacy between revenue and cost structures To keep BB as the main bank in foreign trade To establish BB as one of the main Banks in Capital Markets To enhance Corporate Governance practices To strength BB’s performance as a socially responsible company To stimulate banking throughout Banco Popular To strength customers relationship To keep the position of the most reminded Bank among Brazilians
Strategies lined up with the future 22 Return on equity15% Efficiency ratio61% Service Revenues / Administrative Expenses49% Customers ( Banco Popular)1 million Average customer product 4 Customers20 million Electronic transactions 88%
new site of IR
Investor Relations Division SBS - Quadra 1 - Bloco C - Ed. Sede III - 17° floor Brasília (DF) Phone: 55 (61) Fax: 55 (61) Disclaimer Disclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation. For further information access or: MD&A