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3Q03 Earnings

3Q03 Earnings. efficiency reflected in numbers. Highlights. R$ million. Change%. 3Q02. 2Q03. 3Q03. s/3Q02. s/2Q03. Total Assets. 213,412. 205,762. 215,134. 0.8. 4.6. 1. Credit Operations. 62,930. 68,662. 72,601. 15.4. 5.7. Security Portfolio. 75,770. 72,746. 74,055.

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3Q03 Earnings

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  1. 3Q03 Earnings

  2. efficiency reflected in numbers Highlights R$ million Change% 3Q02 2Q03 3Q03 s/3Q02 s/2Q03 Total Assets 213,412 205,762 215,134 0.8 4.6 1 Credit Operations 62,930 68,662 72,601 15.4 5.7 Security Portfolio 75,770 72,746 74,055 -2.3 1.8 2 Deposits 96,238 99,881 103,071 7.1 3.2 Asset Management - R$ bi 56.0 83.2 91.8 63.9 10.3 3 Shareholders’ Equity 8,410 10,872 11,687 39.0 7.5 Market Capitalization 5,629 9,582 11,712 108.1 22.2 Net Income 605 600 665 9.9 10.8 4 ROE % 32.9 24.8 25.7 Earnings Per Share - R$ 0.83 0.82 0.91 1- Credit operations, Leasings operations and others credits, according Res. 2682/99 2 - Demand, Time, Savings and Interbank 3 - Net Income included 4 - Annualized 2

  3. adding value to shareholders... Net Profit and Return On Equity R$ million 22.9 32.9 22.8 30.2 25.7 24.8 1,744 21.3 665 1,428 605 600 600 479 3Q02 4Q02 1Q03 2Q03 3Q03 Net Profit ROE % 9M02 9M03 3

  4. solid results Income Statement Including Reallocations Change% Change% 3Q02 2Q03 3Q03 on 3Q02 on 2Q03 R$ million 3,688 Gross Financial Margin 3,524 3,888 5.4 10.3 Provision for NPL -834 -863 -747 -10.5 -13.5 Net Financial Margin 2,854 2,661 3,141 10.1 18.1 Service Fees 1,118 1,343 1,412 26.4 5.2 Turnover Tax Expenses -136 -241 -242 78.3 0.1 3,763 3,836 4,312 12.4 14.6 Contribution Margin Administrative Expenses -2,503 -2,466 -2,931 17.1 18.9 Commercial Income 1,333 1,297 1,381 3.6 6.5 Operating Income 902 1,016 1,213 34.6 19.4 Income before Profit Sh,Taxes Ext.Items 930 1,058 1,231 32.4 16.4 Income Tax and Social Contribution -300 -409 -516 72.0 26.2 Profit Sharing -25 -49 -50 101.0 2.2 Recurrent Result 605 600 665 9.9 10.8 Extraordinary Items 0 0 0 0 0 Net Income 605 600 665 9.9 10.8 4

  5. ready to a new environment Analysis of volume and Spread Change% R$ million 3Q02 2Q03 3Q02 on 3Q03 3,688 Gross Financial Margin 3,524 3,888 5.4 189,979 Assets (-) Permanent * 198,267 209,071 10.0 8.00 Spread Annualized 7.30 7.60 Spread - % * Average balance Loss due to spread decrease Loss on spread decrease and volume increase 3Q02 1.941189 % (155) (16) 3Q03 1.859773 % Gain due to volume increase 3,688 371 Volume - R$ million 3Q02 189,979 3Q03 209,071 5

  6. asset quality preserved R$ million Change% 1.3% 1.4% 3Q02 2Q03 3Q03 on 3Q02 1.3% R$ million 3,688 Gross Financial Margin 3,524 3,888 5.4 1.0% 1.0% -834 Provision for NPL -863 -747 -10.4 863 855 834 747 2,854 Net Financial Margin 2,661 3,141 10.1 636 % 6.2 6.0 5.6 3Q02 4Q02 1Q03 2Q03 3Q03 5.3 5.9 5.8 5.0 NPL Expenses Expenses Portfolio 5.5 3Q02 2Q03 3Q03 R$ million 5.1 Total Credit Portfolio 63,017 68,662 72,601 4.8 3,879 3,610 3,596 Overdue Loans Overdue more than 15 days 3,683 3,497 3,494 3.5 3.3 3.2 3.2 3.0 Overdue more than 60 days 2,190 2,228 2,333 537 574 Write-offs 534 3Q02 4Q02 1Q03 2Q03 3Q03 Credit Recovery 162 207 286 Losses Balance 374 367 247 Overdue Loans/Total Credit Portfolio Overdue more than 15 days/Total Credit Portfolio Losses Balance/Total Credit Portfolio -% 1.4 2.4 2.2 Overdue more than 60 days/Total Credit Portfolio 6

  7. customers’ loyalty and asset management leadership Change.% Change % 3Q02 2Q03 3Q03 on 3Q02 3Q02 2Q03 3Q03 R$ million R$ million on 3Q02 Service Fees 1,118 1,343 1,412 26.3 2,854 Net Financial Margin 2,661 3,141 10.1 Customer Relationship Fees 326 402 407 24.8 1,118 Services Fees 1,343 1,412 26.3 Management of Investment Funds . 163 183 214 31.3 Loan Operations 93 137 142 52.7 Turnover Tax Expenses -241 -242 77.9 -136 Collection 103 120 130 26.2 Services to Related Companies 90 95 104 15.6 3,836 Contribution Margin 3,763 4,312 12.4 Credit Cards 100 115 109 9.0 Others 219 253 273 24.7 Asset Management R$ billion Customer Base - in Thousands 18.6 18.7 18.8 17.4 17,049 16,718 15.7 1,112 15,910 1,073 15,391 91.8 14,976 1,005 992 83.2 78.0 975 66.2 56.0 15,937 15,645 14,905 14,399 14,001 3Q02 4Q02 1Q03 2Q03 3Q03 3Q02 4Q02 1Q03 2Q03 3Q03 Individuals Companies Asset Management Market Share % 7

  8. cost structure suitable with business generation Change % Change% 3Q02 2Q03 3Q03 on 3Q02 R$ million 3Q02 2Q03 3Q03 on 3Q02 R$ million Administrative Expenses -2,503 -2,466 -2,931 17.1 3,836 Contribution Margin 3,763 4,312 12.4 Other Administ. Expenses -1,061 -955 -1,221 15.1 -2,503 Administrative Expenses -2,466 -2,931 17.1 Employees Expenses -1,410 -1,481 -1,681 19.2 Salaries -645 -771 -802 -24.3 1,333 Commercial Income 1,297 1,381 3.6 Social Charges and Benefits -393 -482 -496 26.2 Training -7 -8 -10 42.9 Labor Suits -105 -73 -80 -23.8 Prov. for Vacation/Leaves -257 -146 -292 13.6 Points of Service - in Thousands Human Resoucers - in Thousands 12,755 12,930 12,545 12,175 12,333 10.6 10.8 10.5 9.5 10.3 11,573 11,174 3,218 3,209 3,183 3,164 3,134 3,077 3,050 79.5 79.7 78.6 79.5 78.0 9,712 9,546 9,362 9,169 9,041 8,496 8,124 3Q02 4Q02 1Q03 2Q03 3Q03 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 Employees Interns Others Branches 8

  9. productivity equation completed by technology Automatization 14.8 17.6 4.1 3.3 84.6 85.0 85.2 84.1 16.0 14.1 82.5 82.4 81.4 9.1 11.6 78.6 76.9 76.2 52.5 51.2 73.9 mar/01 jun/01 set/01 dec/01 mar/02 jun/02 set/02 dec/02 mar/03 jun/03 set/03 sep/02 sep/03 Eletronic Transation / Operating Income - % Internet Financial Manager POS Cashier ATM Efficiency Ratio - % Coverage Ratio - % 60.9 Service Income/Personnel Expenses 90.7 59.3 58.0 57.7 86.0 57.5 84.0 56.7 80.7 79.4 79.3 54.0 77.1 9 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

  10. BB - the bank that most invests in Brazil Change.% on Sep/02 on Jun/03 Sep/02 Jun/03 Sep/03 R$ million Total Assets 213,412 205,762 215,134 0.8 4.6 94,377 79,381 91,627 -2.9 15.4 Liquid Assets Credit Operations 51,330 56,686 60,442 17.8 6.6 Tax Credit 12,461 10,433 9,897 -20.6 -5.1 Others Assets 55,245 59,261 53,168 -3.8 -10.3 Total Liabilities 213,412 205,762 215,134 0.8 4.6 Deposits 96,238 99,881 103,071 7.1 3.2 Other Liabilities 108,764 95,009 100,376 -7.7 5.6 Stockholders Equity 8,410 10,872 11,687 39.0 7.5 Market Funding – R$ billion Assets Composition - % 149.5 145.9 141.3 23.1 24.2 24.9 24.7 25.9 27.0 28.8 7.1 7.0 4.6 5.8 5.8 5.2 5.1 25.2 25.4 27.4 24.1 28.1 25.6 27.5 44.2 44.2 43.3 42.5 42.2 42.6 49.6 49.7 38.6 46.8 46.5 43.0 41.5 21.4 21.2 20.5 26.3 26.4 26.6 5.6 5.4 6.4 mar/02 jun/02 sep/02 dec/02 mar/03 jun/03 sep/03 Liquidity assets Credit Operations Interbank Demand Savings Time Open Market Total Tax Credit Other Assets Deposits Deposits Deposits Deposits Funds 10 sep/02 jun/03 sep/03

  11. liquidity preserved Securities Portfolio R$ million 3Q02 2Q03 3Q03 Cost Mark V. Cost Mark V. Cost Mark V. 2,104 2,104 Available for Trading 3,712 3,710 5,371 5,393 42,752 42,515 Available for Sale 48,936 45,990 43,159 43,157 27,640 25,974 Held to Maturity 25,669 22,571 25,109 23,837 72,495 70,594 Total 78,317 72,271 73,639 72,387 Maturity - % 1.7 1.7 1.8 3.0 12.6 8.7 13.4 22.6 20.5 13.2 8.4 10.4 58.1 70.6 64.1 61.0 45.7 47.6 26.9 25.4 22.8 21.6 19.3 18.8 jun/02 sep/02 dec/02 mar/03 jun/03 sep/03 11 Up to 1 year Up 5 to 1 years Up 10 to 5 years Up to 10 years

  12. well balanced credit portfolio Credit Portfolio Profile - R$72.6 billion - R$63.0 billion Sep/03 Sep/02 3.0% 3.6% 11.4% 19.7% 20.6% 20.3% 10.4% 12.6% 21.9% 20.4% 34.1% 21.9% Retail Commercial Agribusiness International Abroad Others 12

  13. strong position in retail portfolio Retail Portfolio Highlights R$ biillion Retail portfolio increased 20.8%, toR$ 15.0 billion from R$ 12.4 billion (sep/02 - sep/03) 7.3 6.8 2.5 2.1 2.4 1.5 Working capital operations increased 60%, reaching R$ 2.4 billion. 1.5 1.1 1.4 0.9 sep/02 dec/02 mar/03 jun/03 sep/03 Consumer Credit Overdraft Accounts Working Capital Credit Card Others 13

  14. all the time with companies Products for Companies R$ billion Portfolio for companies increased 7.1%, to R$ 14.8 billion from R$ 13.8 billion (sep/02 - sep/03) 7.5 6.0 2.6 2.7 2.0 1.9 1.9 1.4 1.3 1.3 Receivables are responsable for 50.3% of companies operations sep/02 dec/02 mar/03 jun/03 sep/03 Receivables Guaranteed account Investment Working Capital - Others Others 14

  15. BB contributes to Brazilian agribusiness growth Agribusiness Product R$ billion Leadership in Brazilian agribusiness. Market share: 70.5% 8.7 4.2 2.9 2.9 2.7 Rural portfolio increased 79.5% toR$ 24.8 billionfrom R$ 13.8 billion (sep/02 - sep/03) 2.2 sep/02 dec/02 mar/03 jun/03 sep/03 Saving MCR 6.2 PROGER/PRONAF 15

  16. Strengthening foreign trade Foreign Exchange Products Leadership in foreign Exchange - export operations. International Portfolio decreased to R$ 7.5 billion from R$ 7.9 billion (sep/02 - sep/03) R$ billion 6.7 6.3 1.5 0.7 0.1 0.1 sep/02 dec/02 mar/03 jun/03 sep/03 ACC Import Financing Others 16

  17. evolution with responsability... Credit Portfolios by Risk Level BB NFS Participation % - september/03 8.5 4.9 8,4 2.6 1.5 2.9 11.4 9.4 10.3 9.1 15.7 14.3 14,2 6.3 88.3 88.2 81.4 82.3 85.6 77.2 77,2 Retail Commercial Agrobusiness International AA-B C-D E-H SFN 17

  18. ability to increase businesses with customers Capital Adequacy R$ million BIS Ratio -% 3Q02 2Q03 3Q03 Risk weighted assets 107,797 105,974 109,121 14.3 13.8 PLE 12,472 12,350 12,705 13.4 12.2 Required on weighted assets 11,858 11,657 12,003 4.2 4.1 4.1 10.9 Required on Swap 144 166 173 3.8 Required on exchange exp 0 0 0 3.5 Required on Interest rate exp 470 528 529 Required Shareholders’ Equity 12,389 15,479 16,520 10.1 9.7 9.3 Level I 8,375 10,847 11,663 8.4 7.4 Capital and other items 10,100 11,041 11,706 Adjustment to market value -1,724 -194 -43 Level II 4,014 4,632 4,858 sep/02 dec/02 mar/03 jun/03 sep/03 Shareholders’ Equity surplus/deficit -82 3,128 3,815 Level I Level II Laverage surplus/deficit -749 28,439 34,680 K Coeficient % 10.9 13.8 14.3 . 18

  19. 2.5% 1.9% 27.0% 29.1% 68.4% 71.1% insurance and private pension Insurance Revenue 143 R$ million 135 99 66 58 51 41 35 22 20 19 17 15 11 7 5 5 4 1 1 3Q02 2Q03 3Q03 Total Auto Life and Others Capitalization Private Pension Health Management Insurance Funds Insurance / Net Value Aggregated 3Q02 3Q03 27,0% 1,9% 71,1% 19 Insurance MFB Others

  20. commitment to disclosure Meeting with analysts November 17th Brazil Day 2003 - NY November 19th V Foro Latibex - Madri November 27th APIMEC - Rio de Janeiro December 01th APIMEC - Florianópolis December 03th APIMEC - Recife 20

  21. Investor Relations Division SBS - Quadra 1 - Bloco C - Ed. Sede III - 17° floor 70073-901 - Brasília (DF) Phone: 55 (61) 310.5920 Fax: 55 (61) 310.3735 www.bb.com.br ri@bb.com.br 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.

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