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Banco do Brasil 4Q07 Results

Banco do Brasil 4Q07 Results. ROE - %. Net Income – R$ million. Net Income. 32.1. 25.5. 22.5. 19.5. 6,044. 5,748. 31.0. 29.4. 29.4. 26.7. 22.7. 26.3. 22.2. 5,058. 20.9. 1,582. 1,464. 1,409. 1,248. 1,243. 1,364. 3,665. 1,217. 1,068. Δ Recurring Net Income 56.8%.

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Banco do Brasil 4Q07 Results

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  1. Banco do Brasil 4Q07 Results

  2. ROE - % Net Income – R$ million Net Income 32.1 25.5 22.5 19.5 6,044 5,748 31.0 29.4 29.4 26.7 22.7 26.3 22.2 5,058 20.9 1,582 1,464 1,409 1,248 1,243 1,364 3,665 1,217 1,068 Δ Recurring Net Income 56.8% Δ Recurring Net Income (0.4%) 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Recurring ROE - % Recurring Net Income – R$ million

  3. Net Income Changes R$ million 2006 2007 Net Income 6,044 5,058 Main Extraordinary Effects Tax Credit RecordedPreviParity FundBM&F/Bovespa & Other Effects 1,905 899- -- 239 Early Retirement Plan Cassi RestructuringOther Effects 604 325- -- 425 Extraordinary Effects - Total (-)2,379 (+)690 Recurring Net Income 3,665 5,748

  4. Net Interest Income 322 Fee Income 92 Other Effects 86 Net Income Changes R$ million Net Income 3Q07 1,364 Administrative Expenses 340 Provisions for Credit Risk 281 ( ) Recurring Net Income 4Q07 1,243 ( ) One Time Off Items 26 Net Income 4Q07 1,217

  5. Net Interest Income R$ billion 20.8 18.1 40.0 36.7 5.5 5.2 5.2 4.8 5.0 14.7 15.1 19.2 10.3 10.1 10.0 18.6 9.6 9.5 25.3 3.7 3.5 3.9 3.5 3.7 21.6 5.1 4.8 4.7 4.6 4.6 6.6 6.5 6.1 6.1 5.8 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Net Interest Income Loan Revenues Interest Expenses Other Interest Revenues

  6. Net Interest Income 13.25 12.75 12.00 11.25 11.25 8.4 7.9 8.0 7.8 7.7 4Q06 1Q07 2Q07 3Q07 4Q07 Annualized NIM by Loan Portfolio - % NIM Annualized¹ - % Selic Rate - % 31.8 28.9 28.8 27.7 26.6 8.0 7.3 7.2 7.0 6.9 6.4 7.0 6.6 6.6 5.8 4Q06 1Q07 2Q07 3Q07 4Q07 Agribusinesses Individuals Businesses (1) Net Interest Income Over Earning Assets

  7. Long Exposure vs. Interest Rate Related to Selic - % 131.7 133.8 Investment Interest Rate 130.1 129.3 126.3 75.3 70.5 73.9 71.9 Funding Interest Rate 69.9 62.4 49.4 46.4 36.1 29.9 22.9 18.2 15.1 14.6 12.7 4Q06 1Q07 2Q07 3Q07 4Q07 Domestic Long Net Exposure - R$ billion Floating Rate Fixed Rate

  8. Loan Portfolio R$ billion Δ % over 4Q06 3Q07 20.7 7.0 160.7 (6.6) (9.4) 11.4 150.2 145.2 140.4 12.6 133.2 33.4 8.5 32.0 12.2 12.3 12.2 29.5 27.9 26.1 24.0 15.1 7.1 51.9 48.4 48.8 46.8 45.1 26.1 9.7 65.5 56.3 59.7 55.2 51.9 Sep/07 Dec/07 Dec/06 Mar/07 Jun/07 Businesses Agribusinesses Individuals Abroad

  9. Loan Portfolio - Individuals R$ billion Δ % over 4Q06 3Q07 33.4 8.5 32.0 29.5 27.9 26.1 24.0 10.2 4.9 10.5 10.1 9.9 9.6 9.5 11.9 43.3 7.9 11.0 10.2 9.3 8.3 8.7 (7.3) 2.4 2.6 2.6 39.5 17.8 2.7 2.2 4.3 3.6 3.4 227.4 31.5 3.2 3.1 2.9 0.9 1.3 1.7 2.2 Sep/07 Dec/07 Dec/06 Mar/07 Jun/07 Cars Loan Credit Card Overdraft Account Payroll Loan Others

  10. Credit Risk Average Risk - % 6.2 6.2 6.0 5.8 5.5 BB Banking Industry 5.4 5.4 5.4 5.4 5.4 Required Provision / Past Due Loan + 90 days - % 222.7 221.9 214.0 204.5 202.8 173.1 169.2 170.1 167.7 166.2 BB Banking Industry 4Q06 1Q07 2Q07 3Q07 4Q07

  11. Provision / Loan Portfolio - % Past Over Due Loans + 15 days / Loan Portfolio - % Past Over Due Loans + 60 days / Loan Portfolio - % Provision for Credit Risk and Delinquency 5.0 4.8 4.1 3.7 3.7 1,497 1,431 1,257 1,236 1,216 4Q06 1Q07 2Q07 3Q07 4Q07 6.5 6.5 6.5 6.4 6.4 Provision Expenses - R$ million 4.5 Provision Expenses / Loan Portfolio¹ - % 4.7 4.2 4.1 4.1 3.4 3.3 2.9 2.8 2.8 4Q06 1Q07 2Q07 3Q07 4Q07 (1) Average Portfolio and Expenses of the past 12 months

  12. Total Provision Required Provision Additional Provision Provisions for Credit RiskBreakdown R$ million 10,313 9,663 9,441 9,133 8,635 1,586 1,580 1,655 1,582 1,397 8,727 8,084 7,786 7,551 7,238 Dec/06 Mar/07 Jun/07 Dec/07 Sep/07

  13. Deposits R$ billion Δ % over 4Q06 3Q07 18.5 9.4 188.3 8.6 (6.4) 172.2 5.6 164.5 160.7 158.8 6.0 5.4 5.3 5.2 85.5 11.2 2.2 83.6 81.4 80.9 76.9 51.3 38.7 36.8 28.1 32.5 40.1 35.6 45.8 24.9 4.6 43.8 40.8 38.9 36.7 Dec/06 Mar/07 Jun/07 Sep/07 Dec/07 Saving Deposits Demand Deposits Time Deposits Others

  14. Products Customers Fee Income R$ million Δ % over 2006 11.4 9,902 8,888 1.1 1,085 1,073 2,590 2,498 2,437 2,377 2,287 11.9 266 2,915 280 261 279 2,607 278 769 727 716 703 672 5,901 5,280 13.3 1,491 1,556 1,460 1,394 1,337 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Others

  15. 19.1 19.1 19.1 18.3 18.1 220.1 208.9 206.9 193.1 182.7 Δ= 6.4% Δ= 20.5% Dec/06 Mar/07 Jun/07 Sep/07 Dec/07 Customers and Asset Management Asset Management Customers - million 26.0 25.2 24.9 24.6 24.4 1.7 1.6 1.6 1.6 1.6 Market Share - % Assets under Management - R$ billion 24.3 23.6 23.3 23.0 22.8 Dec/07 Dec/06 Mar/07 Jun/07 Sep/07 Individuals Businesses

  16. Insurance R$ million Added Value¹ 1,200 1,123 316 315 300 294 275 Δ= 6.8% Δ= (6.9%) Δ= (8.3)% 2006 2007 4Q06 1Q07 2Q07 3Q07 4Q07 (1) Includes equity income, fee income, commission and asset management income

  17. Credit Cards R$ million Added Value¹ 2,279 1,984 657 558 566 546 508 Δ= 14.9% Δ= 20.2% Δ= 17.7% 4Q06 2Q07 3Q07 4Q07 1Q07 2006 2007 (1) Includes fee income, financing income, equity income and others

  18. Δ= 7.8% Δ= 22.5% Debit and Credit Cards 49.3 37.9 14.3 12.3 11.5 11.1 10.9 69.1 20.2 56.4 69.1 64.1 59.8 14.1 57.0 56.4 20.2 17.8 15.7 14.4 48.9 14.1 48.9 46.3 42.3 44.1 42.3 42.6 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Credit Cards Quantity - million Revenue - R$ billion Debit Cards Quantity - million

  19. Administrative Expenses R$ million Δ % over 2006 3.3 13,296 12,878 3,665 3,331 3,362 6,219 3,232 3,149 5,608 10.9 1,729 1,516 1,519 1,572 1,401 7,270 7,077 (2.7) 1,846 1,748 1,759 1,713 1,936 2006 2007 4Q06 1Q07 2Q07 3Q07 4Q07 Personnel Expenses¹ Other Administrative Expenses¹ (1) Legal risk and extraordinary items are not included.

  20. Changes in Personnel Expenses 3Q07 1,758.9 Salary Raise (2007/2008) 82.0 Occupational Accident Insurance¹ 53.0 Workforce Increase² 61.3 Other Effects (19.0) 4Q07 1,936.3 Administrative Expenses R$ million (1) Change in the rate (1% - 3%). It includes R$26.5 million related to June to September 2007. (2) Average workforce of 4Q07 ( - ) 3Q07 = 2,841 employees, valued as of 3Q07. The 3Q07 average workforce is 78,624 against 81,465 in the 4Q07.

  21. Changes in Other Administrative Expenses 3Q07 1,571.8 Non-structure Changes 72.0 Philanthropic Contributions¹ 32.0 Temporary Workforce² 21.0 Publicity³ 19.0 Other Changes 85.2 Supplies of Funds Services 32.0 Outsourced Services 21.0 Security Guard and Properties 30.0 Other Effects 2.2 4Q07 1,729.0 Administrative Expenses R$ million (1) It includes contributions to FBB and to Children and Teenagers Rights Fund. (2) It includes temporary workforce to absorb BA and MG payroll. (3) It includes BB Public Offering and BB 200 anniversary marketing campaigns.

  22. Productivity Ratio R$ billion 130.3 127.9 130.6 127.7 113.2 107.2 108.1 110.1 2.6 2.5 2.5 2.4 2.4 2.4 2.3 2.3 2.0 1.9 4Q07 3Q07 4Q06 1Q07 2Q07 Coverage Ratio without Retirement Plan and Cassi¹ - % Fee Income Coverage Ratio¹ - % Personnel Expenses (1) Year to Date

  23. Productivity Ratio R$ billion 51.4 50.8 49.1 47.4 44.1 46.9 45.5 44.7 8.0 7.7 7.7 7.5 7.1 4.2 4.2 4.2 3.6 3.3 4Q06 1Q07 2Q07 3Q07 4Q07 Efficiency Ratio without Retirement Plan and Cassi¹ - % Administrative Expenses Efficiency Ratio¹ - % Operating Income (1) Year to Date

  24. 88.3 87.4 87.2 85.4 83.8 4Q06 1Q07 2Q07 3Q07 4Q07 Leverage Loan / Total Deposits - % BIS Ratio - % 17.3 17.2 15.9 15.7 15.6 5.5 5.6 5.3 4.9 5.2 11.6 11.6 10.6 10.7 10.5 Mar/07 Sep/07 Dec/07 Dec/06 Jun/07 Tier I Tier II

  25. Annual Estimates 2007 2008 Guidance Reported Guidance Net Interest Income / Earning Assets (NIM) 8% 7.8% 7.5% - 8% 3.7% - 4% of the 3.7% - 4% of the Provision for Credit Risk 3.7% average portfolio average portfolio Fee Income 12% - 17% 11.4% 8% in line with Administrative Expenses¹ 3.3% 7% - 10% inflation 23% - 27% ROE 25.5% 23% - 27% Loan Portfolio 25% - 30% 20.7% 25% Individuals 35% - 40% 33.3% 30% - 35% Businesses 25% - 30% 26.1% 25% - 30% 15% - 20% Total Deposits 18.5% 15% - 20% Credit Card 16.5 million 20.2 million 25 million (1) Legal risk and extraordinary items are not included.

  26. For further information access www.bb.com.br/ri Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor 70073-901 - Brasília (DF) Phone: 55 (61) 3310.3980 Fax: 55 (61) 3310.3735 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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