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Largest Bank in Brazil in Total Assets. R$ 116.0 bi. Leadership in ... bank that invests the most in Brazil. Market Funding - R$ billion. Asset Composition ...

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1Q04 Earnings Highlights R 231.1 bi


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    1. 1Q04 Earnings

    2. Highlights R$ 231.1 bi Largest Bank in Brazil in Total Assets R$ 116.0 bi Leadership in Assets Under Management R$ 79.6 bi Leadership in loan Portfolio R$ 150.6 bi Leadership in Total Funding 19.3 million Customer Base 6.2 million Customers in BB’s Internet 37,018 Largest ATM Network in Latin America 13,413 Largest network service in the country 2

    3. efficiency reflected in numbers R$ million Change % 1Q03 4Q03 1Q04 /1Q03 /4Q03 Total Assets 209,240 230,144 231,107 10.5 0.4 Credit Portfolio ¹ 65,715 77,636 79,647 21.2 2.6 Securities Portfolio 75,631 69,590 67,875 (10.3) (2.5) Deposits ² 98,130 110,014 110,219 12.3 0.2 Asset Management - R$ bi 78.0 102.6 116.0 48.7 13.0 Shareholders’ Equity 10,164 12,172 12,686 24.8 4.2 Market Capitalization 7,485 17,568 17,041 127.7 (3.0) Net Income 479 637 616 28.5 (3.4) ROE % ³ 21.3 23.1 21.3 1- Credit Portfolio, Leasing operations and others credits, according Res. 2682/99 2 - Demand, Time, Savings and Interbank 3 - Net Income included

    4. result building up Spread Reduction Increase of Allowance for Loan Losses Credit Delinquency under Control Growth of the Retail Credit Portfolio Increase in Service Fees Administrative Expenses Control

    5. solid results Income Statement with reallocations Quarterly Flow Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7) Provision for NPL (636) (827) (901) 41.6 9.0 Net Financial Margin 3,281 3,150 2,928 (10.7) (7.0) Service Fees 1,218 1,511 1,553 27.5 2.8 Turnover Tax Expenses (232) (289) (284) 22.5 (1.7) Contribution Margin 4,267 4,372 4,197 (1.6) (4.0) Administrative Expenses (2,709) (3,149) (2,735) 0.9 (13.1) Commercial Income 1,558 1,223 1,462 (6.1) 19.5 Operating Income 1,244 1,335 1,227 (1.4) (8.1) Income before Profit Sh.Taxes Ext. Items 1,295 1,374 1,242 (4.1) (9.6) Income Tax and Social Contribution (687) (453) (370) (46.0) (18.2) Profit sharing (20) (155) (41) 108.7 (73.6) Recurrent Result 589 765 831 41.1 8.5 Extraordinary items (110) (128) (215) 96.0 68.0 Net Income 479 637 616 28.5 (3.4)

    6. ready to a new environment Analysis of volume and spread Change % 1Q03 4Q03 1Q04 /1Q03 /4Q03 R$ million Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7) Asset (-) Permanent * 204,076 221,377 228,946 12.2 3.4 Annualized Spread 7.9 7.4 6.9 * Average balance Loss due to decrease in spread combined with volume increase Loss due to spread decrease Spread - % 1Q03 - 1.919356 Gain due to volume increase (416) (149) 1Q04 - 1.672528 3,917 477 Volume - R$ million 1Q04 - 228,946 1Q03 - 204,076

    7. deliquency under control Quarterly Flow Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7) Provision for NPL (636) (827) (901) 41.6 9.0 Net Financial Margin 3,281 3,150 2,928 (10.7) (7.0) 5.0 4.8 4.7 5.6 4.6 5.3 4.4 5.2 5.0 4.7 5.5 2.5 5.1 5.1 2.1 2.0 1.8 1.8 4.8 4.6 1.3 1.1 1.1 1.1 1.0 3.2 3.2 3.2 3.1 3.0 1Q03 2Q03 3Q03 4Q03 1Q04 1Q03 2Q03 3Q03 4Q03 1Q04 Loss / Portfolio - % ¹ Expenses Prov. / Port. - % ² Overdue Loans / Total Credit Portfolio - % Expenses Prov. / Port. - % ³ Overdue more than 15 days / Total Credit Portfolio - % ¹ Loss and average portfolio of the Last 12 months ² Loss and average portfolio of the quarter ³ Loss and average portfolio of the Last 12 months Overdue more than 60 days / Total Credit Portfolio - %

    8. margin growth guaranteed by business diversification Quarterly Flow Change % 1Q03 4T03 1Q04 / 1Q03 / 4Q03 R$ million Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7) Provision for NPL (636) (827) (901) 41.6 9.0 Net Financial Margin 3,281 3,150 2,928 (10.7) (7.0) Service Fees 1,218 1,511 1,553 27.5 2.8 Turnover Tax Expenses (232) (289) (284) 22.5 (1.7) Contribution Margin 4,267 4,372 4,197 (1.6) (4.0) Quarterly Flow Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million Service revenues 1,218 1,511 1,553 27.5 2.8 Customer Relationship Fees 387 451 481 24.4 6.8 Asset Management fees 167 220 234 40.1 6.2 Credit Operations 111 148 147 32.1 (1.2) Collection 107 143 150 40.1 4.3 Services to Related Companies 22 27 39 77.3 45.6 Third Party Revenue and Payments 87 106 106 21.6 (0.5) Credit Cards 107 130 129 20.5 (1.4) (5.8) Others 231 285 268 16.1

    9. customers’ loyalty and asset management leadership Customer Base - in millions 338 326 321 309 300 19.3 18.7 17.0 16.7 15.9 1Q03 2Q03 3Q03 4Q03 1Q04 Asset Management - R$ billion 20.2 19.0 18.8 18.6 18.7 Service Fees + GFM / Customer - R$ ¹ 116.0 102.9 ¹ Costumer base average of the last 4 quarters 91.8 83.2 78.0 1Q03 2Q03 3Q03 4Q03 1Q04 Market Share - %

    10. cost structure suitable with business generation Quarterly Flow Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million Contribution Margin 4,267 4,372 4,197 (1.6) (4.0) Administrative Expenses (2,709) (3,149) (2,735) 0.9 (13.1) Commercial Income 1,558 1,223 1,462 (6.1) 19.5 Quarterly Flow Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million Administrative Expenses (2,709) (3,149) (2,735) 0.9 (13.1) Other Administrative Expenses (1,170) (1,165) (1,126) (3.8) (3.3) Employees Expenses (1,509) (1,949) (1,574) 4.3 (19.2) Salaries (639) (894) (721) 12.9 (19.3) Benefits (158) (196) (182) 15.5 (6.9) Social Charges (239) (342) (269) 12.6 (21.3) Training (5) (17) (6) 24.0 (65.0) Honorary of Directors and councilmen (2) (2) (1) (7.9) (12.5) Provision for Employees Expensives (234) (107) (273) 16.6 154.6 Provisions for Labor Suits (191) (309) (60) (68.7) (80.6) Labor Suits (41) (82) (61) 48.8 (25.3)

    11. cost structure suitable with business generation Points of Service - in thousands 5.0 5.0 4.7 4.4 4.3 13.4 13.2 12.9 12.8 12.5 Human Resources - in thousands 1Q03 2Q03 3Q03 4Q03 1Q04 2.8 2.6 2.4 2.3 2.2 Points of Service Credit operations / Points of Service - R$ million 10.8 10.2 10..5 10.6 10.8 79.7 80.6 81.8 79.5 79.5 3Q03 1Q03 2Q03 4Q03 1Q04 Deposits + Assets under Manag/ Employee - R$ million Employees Interns

    12. productivity equation completed by technology Automatization 1Q03 - % 1Q04 - % 2.0 2.6 13.7 15.4 50.6 86.4 86.3 4.7 4.1 85.2 85.0 84.6 84.1 82.5 82.4 53.7 81.4 14.3 16.2 Electronic Transactions / Total Transactions - % 10.5 12.2 1Q03 2Q03 3Q03 4Q03 1Q04 1Q02 2Q02 3Q02 4Q02 Internet Financial Manager POS Cashier Others ATM Efficiency Ratio - % Coverage Ratio - % Administrative Expenses / Operational Income Service Income / Personnel Expenses 98.6 57.6 90.7 56.5 56.7 84.0 54.2 54.0 80.7 77.5 1Q03 2Q03 3Q03 4Q03 1Q04 1Q03 2Q03 3Q03 4Q03 1Q04

    13. BB - the bank that invests the most in Brazil Change % R$ million 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 Total Assets 209,240 230,144 231,107 10.5 0.4 Liquid Assets 88,366 102,439 104,795 18.6 2.3 Credit Operations 53,475 65,604 66,461 24.3 1.3 10,927 9,406 9,116 (16.6) (3.1) Tax Credit Other Assets 56,473 52,695 50,736 (10.2) (3.7) Total Liabilities 209,240 230,144 231,107 10.5 0.4 Deposits 98,130 110,014 110,219 12.3 0.2 Other Liabilities 100,227 107,959 108,202 8.0 0.2 Shareholders’ Equity 10,164 12,172 12,686 24.8 4.2 Asset Composition - % Market Funding - R$ billion 147.7 150.1 150.6 22.0 22.9 24.7 27.0 28.8 3.9 4.1 4.6 5.2 5.1 28.8 28.5 28.1 25.6 27.5 49.6 48.2 46.1 45.0 40.3 40.1 30.3 45.3 44.5 27.4 27.6 27.1 26.8 42.2 42.6 38.6 21.0 7.3 6.2 5.2 Demand Deposits Savings Deposits Time Deposits Open Market Funds Interbank Deposits 1Q04 1Q03 2Q03 3Q03 4Q03 Total Liquid assets Credit Operations 1Q03 4Q03 1Q04 Other Assets Tax Credit

    14. liquidity preserved Securities Portfolio Change % 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 R$ million (10.3) (2.5) Securities Portfolio 75,631 69,590 67,875 Available for trading 5,137 16,095 12,338 140.2 (23.3) Available for sale 43,352 28,307 30,266 (30.2) 6.9 Held to Maturity 26,846 24,821 24,959 (7.0) 0.6 (10.0) 11.7 Derivatives 296 368 331 Securities Portfolio Maturity - % 0.7 1.7 1.7 1.8 2.1 8.7 10.6 9.3 12.6 13.3 58.2 70.5 64.1 69.3 72.0 26.8 21.6 18.9 16.7 19.5 1Q04 1Q03 2Q03 3Q03 4Q03 Up to 1 year 1 to 5 years 5 to10 years Over 10 years

    15. well balanced credit portfolio 1Q04 - Balance R$ 79.6 billion Credit Portfolio 2.0% 12.6% 22.3% 10.3% 4Q03 - Balance R$ 77.6 billion 1.9% 12.2% 20.6% 20.2% 32.5% 9.5% 1Q03 - Balance R$ 65.7 billion 20.9% 2.7% 14.5% 20.3% 35.0% 12.3% 22.2% Retail Commercial Agribusiness Foreign Trade Abroad Others 27.9%

    16. increase with resposibility Credit Portfolio by Risk Level Shares % - 1Q04 4.7 6.7 1.6 0.6 2.5 16.5 11.0 8.5 15.3 14.5 18.6 31.1 89.0 83.9 80.9 78.8 77.9 57.9 Retail Commercial Agribusiness Foreign Trade BB NFS AA-B C-D E-H

    17. increase with resposibility Credit Portfolio by Risk Level -% Commercial and Foreign Trade Portfolio Credit Portfolio 80,0 80,0 70,0 70,0 60,0 60,0 50,0 50,0 40,0 40,0 30,0 30,0 20,0 20,0 10,0 10,0 AA A B C D E F G H AA A B C D E F G H 1Q03 1Q04 1Q03 1Q04 80,0 80,0 Retail Agribusiness 70,0 70,0 60,0 60,0 50,0 50,0 40,0 40,0 30,0 30,0 20,0 20,0 10,0 10,0 AA A B C D E F G H AA A B C D E F G H 1Q03 1Q04 1Q03 1Q04

    18. ability to increase businesses with customers Capital Adequacy Change % R$ million 1Q03 4Q03 1Q04 / 1Q03 / 4Q03 (1,1) Risk weighted Assets 104.043 120.973 119.691 15,0 Required Shareholders’ Equity 11.941 13.772 13.646 14,3 (0,9) Required on weighted assets 11.445 13.307 13.166 15,0 (1,1) Required on swap 154 152 150 (2,8) (1,2) Required on exchange exp - - - Required on Interest rate exp 343 313 331 (3,5) 5,6 Referential Shareholders’ Equity 14.545 17.162 17.740 22,0 3,4 Level I 10.139 12.147 12.336 21,7 1,6 Capital Social (623) 228 127 (120,3) (44,4) 20% Realizable Tax Credit After 5 Years - - (326) 4.406 5.015 5.405 22,7 7,8 Level II 2.604 3.391 4.094 57,2 20,7 Surplus / shareholders’ equity deficit Surplus / leverage deficit 23.673 30.825 37.220 57,2 20,7 Coefficient K % 13,40 13,71 14,30 BIS Ratio - % 14.3 14.3 13.8 13.7 13.4 4.2 4.4 4.1 4.0 4.1 10.1 9.9 9.7 9.7 9.3 1Q03 2Q03 3Q03 4Q03 1Q04 Level I Level II

    19. insurance and private pension Insurance / Net Aggregated Value Insurance Revenue 1Q04 1Q03 R$ million 3.4% 3% 16 22.4% Manag. Insur. Funds 14 16.6% 9 36 Private Pension 14 13 41 Capitalization Plans 51 80.4% 74.2% 42 GFM Others Insurance 69 Life, Health and Others 71 64 15 Auto 19 18 175 Total 170 145 1Q03 4Q03 1Q04

    20. market recognition 1.3 1.4 1.0 0.9 0.7 17.3 16.6 16.0 14.9 13.9 7.4 6.8 5.0 4.1 3.5 1Q03 2Q03 3Q03 4Q03 1Q04 Price Price / Earnings Price / BV - x Obs: Share Market Price adjusted by income

    21. new IR website

    22. For further information access www.bb.com.br/ri 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.