2Q03 Earnings
Banco do Brasil...
efficiency reflected in numbers
Highlights
R$ millions
Change %
2Q02
169,910
1Q03
209,240
2Q03
205,762
57,031
65,715
68,662
20.4
4.5
68,591
75,631
72,746
6.1
-3.8
79,710
98,130
99,881
25.3
1.8
63.6
78.0
83.2
30.8
6.7
Shareholders’ Equity
7,984
10,164
10,872
36.2
7.0
Market Capitalization
5,866
7,708
9,582
63.4
24.3
474
479
600
26.5
25.2
24.12
21.31
24.84
0.67
0.65
0.82
Total Assets
Credit Operations
1
Security Portfolio
Deposits
2
Asset Management - R$ bi
s/2Q02 s/1Q03
21.1
-1.7
3
Net Income
4
ROE %
Earnings Per Share - R$
1- Credit operations, Leasing operations and other credits, according Res. 2682/99
2 - Demand, Time, Savings and Interbank
3 - Net Income included
4 - Annualized
adding value to shareholders...
Profit and Return On Equity
R$ millions
Dividends / Interests on Legal
Capital
R$ millions
Return On Equity %
32.9
30.2
24.1
24.8
600
600
474
77.0
2H01
188.3
1H02
307.4
2H02
272.1
1H03
321.9
1H03 Profit and ROE %
479
605
21.3
1H01
R$ millions
30.0
22.7
4Q02
1Q03
1.079
3Q02
1.205
2Q02
823
20.6
1H02
2H02
1H03
2Q03
solid results...
Income Statements
Including Reallocations
Change%
2Q03 s/2Q02
2Q02
2,876
1Q03
3,917
3,524
-591
-636
Net Financial Margin
2,285
Service Fees
Change.%
1H03 s/1H02
22.5
1H02
5,680
7,441
31.0
-853
44.3
-1,184
-1,489
25.8
3,281
2,671
16.9
4,496
5,952
32.4
1,138
1,218
1,343
18.0
2,167
2,561
18.2
-152
-232
-241
59.1
-318
-473
48.9
3,272
4,267
3,773
15.3
6,346
8,040
26.7
-2,288
-2,709
-2,466
7.8
-4,499
-5,175
15.0
Commercial Income
983
1,558
1,307
32.9
1,847
2,865
55.1
Operating Income
753
1,244
1,016
34.9
1,523
2,261
48.5
Income before Profit Sh,Taxes&Ext.Items 764
1,295
1,058
38.4
1,565
2,353
50.4
-195
-687
-409
109.4
-532
-1,096
105.9
Profit Sharing
Recurrent Result
Extraordinary Items
-77
492
-18
-20
589
-110
-49
600
0
-36.5
21.9
0
-77
956
-132
-68
1,189
-110
-10.9
24.4
-17.1
Net Income
474
479
600
26.5
823
1,079
31.1
R$ millions
Gross Financial Margin
Provision for NPL
Turnover Tax Expenses
Contribution Margin
Administrative Expenses
Income Tax and Social Contribution
ready to a new environment
Analysis of Volume and Spread
Change.%
R$millions
Gross Financial Margin
Assets (-) Permanent *
2Q02
2,876
163,072
Spread Annualized
7.24
1Q03
3,917
2Q03 s/2Q02
3,524 22.5
204,076 198,267
7.90
21.6
7.30
* average balance
5
22
Gain to volume increase
2,876
621
2Q03 198,267
2Q03 1.777417 %
2Q02 1.763765 %
Gain due to rate
and volume increase
Gain to rating Increase
2Q02 163,072
Spread %
Volume - R$ millions
The contribution of
spread in the Margin
decreased to 3.44% in
2Q03 from 30.83% in
1Q03.
636
853
44.3
3,281
2,671
16.9
1.1%
855
2,285
22.5
1.4%
1.3%
0
0
1.0%
636
Net Financial Margin
591
3,524
1.4%
1.2%
834
Provision for NPL
1Q03
3,917
591
Gross Financial Margin
2Q02
2,876
593
R$ millions
Change.%
2Q03 s/2Q02
853
assets quality preserved
0
0
%
5.6
6.2
6.0
0
1Q02
5.6
3.5
2Q02
5.8
3.5
3Q02
5.9
3.3
4Q02
5.5
5.1
3.0
3.2
1Q03
2Q03
NPL /Total Credit Portfolio
Overdue more than 15 days/Total Credit Portfolio
Overdue more than 60 days/Total Credit Portfolio
3Q02
NPL Expenses
R$ millions
5.3
5.5
2Q02
R$ millions
Total Credit Portfolio
4Q02
1Q03
2Q03
Expenses Portfolio
2Q02
1Q03 2Q03
57,031
65,715 68,662
Overdue Loans
3,202
3,681
3,610
Overdue more than 15 days
3,126
3,631
3,497
Overdue more than 60 days
1,973
1,984
2,228
Write-offs
554
528
574
Credit Recovery
171
169
207
Losses Balance
383
359
367
2.0
2.2
2.2
Losses Balance/Total Credit Portfolio - %
... customers fidelity and assets management
leadership
Change.%
Change. %
2Q02 1Q03 2Q03s/ 2Q02
R$ millions
Service Fees
1,138 1,218
Customer Relationship Fees
330
387
Management of Investment
.
Funds 200
167
Loan Operations
95
111
Collection
100
107
Services to Related Companies
81
87
Credit Cards
88
107
Others
245
253
1,343
402
183
137
120
95
115
291
18.0
22.0
-8.6
44.4
20.1
17.1
31.2
18.8
R$ millions
Net Financial Margin
Service Fees
2Q02
2,285
1Q03
3,281
2Q03 s/2Q02
2,671 16.9
1,138
1,218
1,343
18.0
-152
-232
-241
59.1
3,272
4,267
3,773
15.3
Turnover Tax Expenses
Contribution Margin
Asset Management
R$ billions
Customers Base
18.6
18.7
in Thousands
0.9
1.0
1.0
1.0
1.1
17.4
17.2
15.7
13.6
2Q02
14.0
3Q02
Companies
14.4
4Q02
14.9
1Q03
Individuals
15.6
2Q03
63.6
56.0
66.2
78.0
83.2
2Q02
3Q02
4Q02
1Q03
2Q03
Asset Management
Market Share %
cost structure suitable with businesses
generation
Contribution Margin
2Q02
3,272
1Q03
4,267
Administrative Expenses
-2,288
983
R$ millions
Change.%
2Q03
s/2Q02
3,773
15.3
-2,709
-2,466
7.8
1,558
1,307
32.9
Change.%
2Q02
1Q03
2Q03 s/ 2Q02
-2,288
-2,709
-2,466
7.8
-964
-1,200
-985
2,2
Personnel Expenses
-1,324 -1,509 -1,481
Salaries
-799
-818
-831
Social Charges and benefits -384
-423
-459
Training
-8
-5
-8
Labor claims
-81
-191 -108
Others
-53
-72
-76
11.8
4.0
19.6
2.8
33.3
43.4
R$ millions
Administrative Expenses
Other Adm. Expenses
Commercial Income
Human Resources
Points of Service
11.6
12.2
12.3
12.5
12.8
3.1
3.1
3.2
3.2
3.2
Midwest
1,431
11.2
Northeast
3,080
24.1
890
7.0
Southeast
4,769
37.4
South
2,585
20.3
Total
12,755
100.0
North
8.5
2Q02
9.0
9.2
9.4
3Q02 4Q02 1Q03
Branches
Others
9.6
2Q03
in Thousands
share %
Municipalities Presence = 2,829
10.2
10.3
9.5
10.6
10.8
78.0
78.0
78.6 79.5
79.5
2Q02 3Q02 4Q02 1Q03 2Q03
Employees
Interns
productivity equation completed by technology
Automatization
jun/02
84.6
85.0
84.1
82.5
Jun/02
jun/03
6.7
8.0
14.0
6.4
11.1
15.0
17.5
15.0
53.8
52.5
82.4
Sep/02
Dec/02
Jan/03
Mar/03
Electronic Transactions /
Total Transactions - %
ATM
Cashier
Internet
Efficiency Ratio (%)
(Administrative Expenses/Operating Income)
Financial Manager
Others
Coverage Ratio (%)
Service Income/Personnel Expenses
60.9
90.7
57.7
58.0
86.0
56.7
2Q02
3Q02
4Q02
1Q03
2Q03
80.7
79.3
54.1
77.1
2Q02
3Q02
4Q02
1Q03
2Q03
BB - the bank that invests more in Brazil
R$ millions
Total Assets
Liquid Assets
Loans & Leasing Operations
Tax Credit
Other Assets
Total Liabilities
Deposits
Other Liabilities
Stockholders Equity
Jun/02
169,910
72,245
46,542
11,832
39,290
169,910
79,710
82,216
Mar/03
209,240
88,366
53,475
10,927
56,473
209,240
98,130
100,946
Jun/03
205,762
79,381
56,686
10,433
59,261
205,762
99,881
95,009
7,984
10,164
10,872
Change.%
s/jun/02 s/mar/03
21.1
-1.7
9.9
-10.2
21.8
6.0
-11.8
-4.5
50.8
4.9
21.1
-1.7
25.3
1.8
15.6
-5.9
36.2
7.0
Assets Composition (%)
147.7
Market Funding – R$ billions
43.3
42.5
44.2
44.2
42.2
38.6
25.4
27.4
24.1
25.2
25.6
27.5
7.1
7.0
5.8
5.8
5.2
5.1
24.2
23.1
25.9
24.9
27.0
28.8
mar/02 jun/02
sep/02
Other Assets
Credit Operations
dec/02 mar/03
Tax Credit
Liquidity Assets
jun/03
141.3
117.2
45.0 46.8
26.8 26.4 33.6
183 21.0 21.2 22.6
49.6
37.5
41.5
5.2 5.2 5.4
Interbank
Deposits
Demand
Deposits
Savings
Deposits
jun/02
mar/03
Time
Deposits
jun/03
Open
Market Funds
Total
investors confidence...
US$ 100 MM
Global Medium
Term Notes
6.25% a.a.
1 year
Jan/28
US$ 223 MM
VISANET
Securitization
of receivable
flows
02/Jul
US$ 120 MM
MT-100
7.26% a.a.
7 years
Mar/17
€ 150 MM
Global Medium
Term Notes
4.5% a.s.
1 year
07/ Jul
US$ 35 MM
Loan
Bladex
1 year
Mar/19
US$ 75 MM
Global Medium
Term Notes
6.375% a.a.
2 years
Apr/25
US$ 689 millions*
funded in 2003
* Without Bladex Loan
well balanced credit portfolio
Credit Portfolio Profile
Jun/02 - R$ 57.0 billions
Jun/03 - R$ 68.7 billions
2.3%
16.8%
2.8%
21.4%
12.3%
20.8%
11.0%
12.6%
21.8%
23.9%
31.3%
22.9%
Retail
Commercial
Agribusiness
International
Abroad
Others
strong position in retail portfolio
Retail Portfolio Highlights
R$ billions
7.2
6.9
2.3
2.0
2.1
1.4
jun/02
sep/02
Consumer Credit
dec/02
Overdraft Accounts
mar/03
jun/03
Working Capital
Retail Portfolio increased
17.2%,
to R$ 14.3 billions
from R$ 12.2 billions
(jun/03 - jun/02)
Credit Card operations
increased 59.6%,
reaching
R$ 1.5 billion.
... at all times with companies
Products for Companies
R$ billions
7.0
5.8
2.6
2.7
2.0
2.1
jun/02
sep/02
Receivables
dec/02
Investment
mar/03
jun/03
BB Guaranteed account
Portfolio for companies
increased 10.3%,
to R$ 15.0 billions
from R$ 13.6 billions
(jun/03 - jun/02).
Receivables
are responsable for 47%
of companies operations.
BB contributes to brazilian agribusiness growth
Agribusiness Products
R$ billions
5.2
5.4
3.1
Market share: 65%.
2.3
3.0
2.4
jun/03
jun/02
Leadership in
brazilian
agribusiness.
sep/02
MCR 6,2
dec/02
Saving
mar/03
Proger/
Pronaf
Rural portfolio increased
64.6%
from R$ 13.1 billions
to R$ 21.5 billions
(jun/02 - jun/03)
foreign trade becomes stronger
Foreign Exchange Products
R$ billions
6.8
Leadership in
Foreing Exchange export operations
5.7
Market share: 29.6%
1.5
0.6
Foreing Exchange
Portfolio increased
jun/02
sep/02
dec/02
mar/03
jun/03
to R$ 7.6 billions
from R$ 7.2 billions
ACC
(Pre-shipment export financing)
Import Financing
(jun/03 - jun/02)
evolution with responsibility...
Credit Portfolios by Risk Level
BB
NFS
5.0
8.7
Participation % - jun/03
11.1
3.8
6.7
14.7
82.2
81.5
2.7
9.0
1.8
10.3
88.2
87.8
9.7
85.3
Retail
International
E, F, G e H
Commercial Agribusiness
CeD
AA, A e B
15.1
76.3
... in a conservative way
Non Performing Loans
R$ millions
3,506
3,593
364
469
2,852
3,142
3,124
3Q/02
4Q/02
1Q/03
3,368
2,882
170
3,823
449
2,978
517
317
2,712
2,661
1Q/02
2Q/02
Minimun Provision
Additional Provision
Total Provision
3,374
2Q/03
ability to increase businesses with customers
Capital Adequacy
R$ millions
2Q02
1Q03
2Q03
Risk weighted assets
95,374 104,043 105,974
PLE
11,179 11,941 12,350
Required s/ weighted assets
10,491 11,445 11,657
Required s/ Swap
114
154
166
Required s/exchange exp
0
0
0
Required.s/ Interest rate exp
573
343
528
Required Shareholders’ Equity
11,780 14,545 15,479
Level I
7,949 10,139 10,847
Social Capital and other items 9,620 10,762 11,041
Adjustment do market value
-1,670
-623
-194
Level II
3,830
4,406
4,632
Shareholders’ Equity surplus/deficit
601
2.604
3.128 11.0
Laverage surplus / deficit
5,468 23,674 28,439
K Coefficient%
11.6
13.4
13.8
BIS Ratio -%
13.1
9.3
1Q/02
12.2
13.4
13.8
11.6
10.9
7.8
7.4
8.4
9.3
9.7
2Q/02
3Q/02
4Q/02
1Q/03
2Q/03
Level I
Level II
commitment with transparency
Meetings with analists
August 25th - APIMEC Centro Oeste, in Brasília (DF)
begin: 06h00 pm (Brazilian time)
September 03th - ABAMEC Rio de Janeiro (RJ)
begin: 05h00 pm (Brazilian time)
September 04th - APIMEC São Paulo (SP)
begin: 04h00 (Brazilian time)
Investor Relations Division
SBS - Quadra 1 - Bloco C - Ed. Sede III - 17° andar
70073-901 - Brasília (DF)
Phone: (61) 310.5920
Fax: (61) 310.3735
www.bb.com.br
[email protected]
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.