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Institutional Presentation 2Q17

Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

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Page 1: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Institutional

Presentation 2Q17

Page 2: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

This presentation may include references and statements,

planned synergies, estimates, projections of results, and future

strategy for Banco do Brasil, its Associated and Affiliated

Companies, and Subsidiaries. Although these references and

statements reflect the management’s belief, they also involve

estimates and unforeseen risks. Consequently, results may

differ from those anticipated and discussed here. These

expectations are highly dependent on market conditions, on

Brazil’s economic and banking system performances, as well

as on international market conditions. Banco do Brasil is not

responsible for updating any estimate in this presentation.

Disclaimer

Page 3: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Agenda 6

COMPANY PROFILE 7

Profile 8

Business diversification 9

Highlights 10

Ownership Structure 11

Presence in Brazil 12

Global Presence 13

Assets 14

Loan Portfolio 15

Total Loan Portfolio - Risk Level 16

Loan Portfolio (by closing date of the loan) 17

Gross Disbursement 18

Loans to Individuals 19

Individuals Portfolio: Lower risk lines 20

Loans to Companies 21

Companies Portfolio by Macro-sector 22

Guarantees provided and Provisions 23

Agribusiness 24

Commercial Funding 25

Sources 26

Sources 27

Current Debt Issues Abroad 28

Uses 29

Ratings 30

Leaderships 31

Corporate Governance 32

Governance Timeline 33

Customer Segmentation 34

Digital Bank 35

Digital Channels 36

Digital Strategy 37

Index

Page 4: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

High income customers 38

Small companies specialized service 39

Conta Fácil 40

Credit Card / Digital Solutions 41

Auto loans transactions - mobile 42

EARNINGS HIGHLIGHTS 43

Strategic Guidelines 44

Net Income 45

Earnings Breakdown 46

Market Ratios 47

Net Interest Income 48

Spread by Portfolio 49

Net Interest Margin 50

Earning Assets Breakdown 51

Assets and Liabilities Breakdown 52

BB’s Consolidated Net Position 53

Fee Income 54

Administrative Expenses 55

Delinquency Ratios (+90 days) 56

Delinquency Ratio by Segment 57

NPL Formation 58

NPL Formation by Segment 59

Vintages 60

ALL Balance and Coverage Ratio 61

Coverage Ratio by Segment 62

ALL Balance – Transactions 63

Provision Expenses Flow / Loan Portfolio 64

Average Risk and Loan Portfolio 65

Average Risk by Segment 66

Cost of Risk 67

Write-off 68

Renegotiated Overdue Loan Portfolio 69

Index

Page 5: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Renegotiated Loan Portfolio 70

BIS Ratio 71

Full Application of Basel III Rules 72

BIS III – Implementation Schedule 73

Guidance 2017 74

Banco Votorantim 75

MACROECONOMIC INFORMATION 76

Inflation and Selic Rate 77

Demographics: Population Pyramid 78

Population: Dependency Ratio 79

Social Security Deficit – RGPS 80

Main Pillars of Brazilian Growth 81

Sustainable Growth 82

Brazilian Agribusiness: Overview 83

PPPs in Brazil 84

Brazilian Foreign Trade Balance Evolution 85

Summary Table 86

Summary Table 87

SUSTAINABILITY 88

Socio-environmental (SER) Policy 89

SER Governance 90

SER Strategy – Agenda 30 BB 91

SER Strategy – Agenda 30 BB 92

Socio-environmental Risk Management 93

Promotion of gender equity 94

Pacts and Voluntary Commitments 95

Market Indexes and Awards 96

Index

Page 6: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Agenda01 COMPANY

PROFILE

EARNINGS HIGHLIGHTS

SUSTAINABILITY

MACROECONOMIC INFORMATION

02

03

04

Page 7: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

01COMPANY PROFILE

Page 8: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Founded in 1808

53.9% controlled by the Federal Government

1st company listed on the stock exchange in Brazil

Access to a broad spectrum of clients

8

Profile

Page 9: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Large, diversified and stable funding base

Business diversification including:

Banking

ServicesInsurance

Capital

Markets

Methods of

Payment

International

Franchise

Asset

Management

9

Page 10: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

More than 200 years of solid performance

Market

Leaderships

Solid

Financial

Performance

Focus on

Services

Stable and

Diversified

Funding

1 2 3 4

Highlights

10

Page 11: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

11

Free Float 43.2%

21.91%

21.33%

2.81%

53.95%

Local CapitalForeign CapitalShares Owned by the CompanyFederal Government

Ownership Structure

11

Total Shares

2,865,417,020

Jun/17

Federal Government:

National Treasure 50.7%

Sovereign Fund 3.2%

Free Float Breakdown (%)

20.6

Sep/16

22.4

20.4

Jun/16

23.0

19.8

Jun/17

21.9

21.3

Mar/17

21.5

21.3

Dec/16

22.2

Page 12: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Presence in BrazilBB at a Glance

Distribution Network

66,072

Branches

4,885

Customers

65,566 thousand

Employees

99,603

Market Share – 21.8%(Number of branches)

North 26.7%

Midwest 25.2%

Northeast 29.6%

Southeast 18.0%

South 22.8%

(1) Banking Agents and Postal Bank branches.

(2) Shared Service Network: lotteries (CEF), Banco 24h e ATM (BRB+CEF).

$

Own Service Network

16,098

MaisBB Network¹

13,486Shared Service Network²

36,488

12

Jun/17

Points of Service

2,117$

Page 13: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Banco do Brasil in the World

Branches

Sub-branches

Representative Offices

Subsidiaries, Affiliates and

Capital Markets Units

Shared Services Units

Global Presence

11

3

7

11

2

BB operates in 24

countries through a

network of 34 units. BB

also maintains

relationship with 880

correspondent banks in

105 countries.

13

Page 14: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

R$ billion

Mar/17

1,445.6

Jun/17Dec/16

1,402.4

Jun/16

1,448.2

Sep/16

1,401.41,445.1

19.720.320.2

19.6

Market Share (%)Assets

2.2%

38.5%

9.3%

37.1%

12.9%

Assets

14

• Loans

• Available Funds, Short-Term

Interbank Investments, Interbank

and Intrabank Accounts

• Securities and Financial

Derivatives

• Other

• Permanent Assets

Page 15: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Loan Portfolio – Broad Concept¹R$ billion

Jun/17

696.1

277.2

185.9

188.2

44.9

Mar/17

688.7

280.8

185.1

180.1

42.7

Dec/16

708.1

294.7

187.8

735.4

316.8

187.6

179.6

51.5

Jun/16

753.0

327.6

189.7

184.5

51.2

+1.1%

45.7

Sep/16

179.8

CompaniesIndividualsAgribusinessForeign Branches and Subsidiaries

-7.6-11.4-11.3

-6.9-1.2

Growth in 12 months (%)

6.4%

27.0%

26.7%

39.8%

6.8%

24.5%

25.2%

43.5%

(1) It includes private securities and guarantees provided. 15

Page 16: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

R$ million

Total Loan Portfolio - Risk Level¹

16(1) BB Classified Loan Portfolio.

Minimum Supplementary Required Minimum Supplementary Required

AA 343,702 - 49.6 307,437 - - - 48.2 297,661 - - - 46.3

A 132,192 661 19.2 92,266 461 41 502 14.5 91,552 458 46 504 14.2

B 120,082 1,201 17.4 108,754 1,088 304 1,391 17.0 133,109 1,331 493 1,824 20.7

C 39,567 1,187 5.7 68,783 2,063 1,096 3,159 10.8 63,470 1,904 1,160 3,064 9.9

D 8,465 847 1.2 16,477 1,648 246 1,894 2.6 11,911 1,191 152 1,343 1.9

E 15,443 4,633 2.2 14,175 4,253 - 4,253 2.2 12,624 3,787 - 3,787 2.0

F 5,161 2,580 0.7 6,559 3,279 - 3,279 1.0 5,943 2,971 - 2,971 0.9

G 4,537 3,176 0.7 6,493 4,545 - 4,545 1.0 7,293 5,105 - 5,105 1.1

H 22,684 22,684 3.3 17,391 17,391 - 17,391 2.7 19,283 19,283 - 19,283 3.0

Total 691,832 36,968 100.0 638,336 34,728 1,686 36,414 100.0 642,846 36,030 1,851 37,881 100.0

AA-C 635,543 3,049 91.9 577,241 3,612 1,440 5,052 90.4 585,793 3,693 1,699 5,392 91.1

D-H 56,289 33,919 8.1 61,095 31,116 246 31,362 9.6 57,053 32,338 152 32,489 8.9

Jun/16 Mar/17 Jun/17

Balance Provision Share % Balance Share % BalanceProvision

Share %Provision

Page 17: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

3.4

4.7

4.4

5.2

4.5

7.4

5.9

8.4

6.0

Dec/16

12.4

8.9

15.5

15.6

3.6

5.1

4.9

5.8

5.8

8.2

6.4

8.0

Sep/16

13.2

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

Jun/17

10.9

8.1

13.3

13.5

3.14.2

4.0

4.6

3.8

5.3

5.1

7.3

6.0

10.8

Mar/17

11.8

8.59.3

16.3

16.6

3.8

5.4

5.5

8.2

6.4

15.1

6.3

Jun/16

13.8

9.5

16.6

17.5

4.1

5.8

7.8

9.07.1

8.8

Up to 2011

2012

2013

2014

1Q15

2Q15

14.7

9.2

Loan Portfolio (by closing date of the loan)¹

17(1) BB Classified Loan Portfolio.

2016

21.5%

2015

15.9%

54.2%

Page 18: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

168

12312091

117100

3Q162Q161Q16 2Q171Q174Q16

Brazil

216184

139

97106100

2Q16 4Q16 1Q17 2Q171Q16 3Q16

171

86

140

91

157

100

3Q161Q16 2Q16 1Q17 2Q174Q16

15712111199107100

2Q171Q172Q16 3Q16 4Q161Q16

Disbursements – quarterly average¹ (1Q16 base 100)

Agribusiness

Individuals

Companies

(1) Does not include revolving lines of credit and overdraft. 18

Page 19: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

R$ million

Loans to Individuals¹

19(1) It considers the organic Loan Portfolio.

Jun/16 Mar/17 Jun/17

Payroll Loan 62,959 62,442 64,219

Mortgage 39,706 75.8% 42,635 75.9% 43,049 76.2%

Salary Loan 20,482 19,716 19,850

Auto Loan 7,333 5,769 5,432

Credit Card 22,906 23,776 23,627

Consumer Finance 7,392 5,841 6,110

Overdraft Account 2,775 2,580 2,425

Microcredit 700 602 538

Renegotiated Loan 6,876 8,049 8,139

Other 926 643 584

Total 172,054 172,054 173,972

Page 20: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

+3.9%

Jun/17Mar/17

53.7

42.6

11.0

Jun/16

51.6

39.7

11.9

43.0

10.5

53.6

Mortgage - IndividualsMortgage -Companies

2.091.29

2.15

Individuals Mortgage NPL 90 (%)²

+2.0%

Jun/17Mar/17

62.4

88.0%

9.3% 2.7%

Jun/16

63.0

88.5%

8.4% 3.0%

87.8%

64.2

9.6% 2.6%

Civil ServantsINSS´s Retirees and PensionersPrivate Sector Employees

1.451.25 1.82

NPL +90 days (%)²

-3.1%

Jun/17Mar/17

19.7

Jun/16

20.5 19.8-25.9%

Jun/17Mar/17

5.8

Jun/16

7.3

5.4

3.542.614.94

NPL +90 days (%)²

1.200.88

1.29

NPL +90 days (%)²

R$ billion

Individuals Portfolio¹: Lower risk lines of credit

Individuals

Market

Share

7.8%

Market

Share

21.6%

(1) BB Organic Portfolio. (2) BB Classified Loan Portfolio.

PayrollMortgages

Auto LoansSalary Loans

20

8.4%

Chg. (%)

on Jun/16

Page 21: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Loans to Companies – Broad Concept¹

-1.3%-15.4%

Jun/17

277.2

219.8

57.4

Mar/17

280.8

219.4

61.4

Jun/16

327.6

246.4

81.2

Middle Market, Corporates and GovernmentVery Small and Small Companies²

-29.2%

-10.8%

21

-6.5%

+0.2%

(1) It includes private securities and guarantees provided. (2) Companies with annual revenues up to R$ 25 million.

Chg. (%) on Jun/16 Chg. (%) on Mar/17

R$ billion

Page 22: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Companies Portfolio by Macro-sector¹

22

R$ million

(1) It includes Companies and Agro Companies Portfolio.

R$ million

Macro-Sector¹ Jun/16 Share % Mar/17 Share % Jun/17 Share % Jun/16 Mar/17

Public Administration 37,997 9.0 38,303 10.7 39,225 10.9 3.2 2.4

Oil and Gas 42,595 10.1 38,436 10.8 38,660 10.8 (9.2) 0.6

Metalworking and Steel 38,732 9.2 33,938 9.5 32,264 9.0 (16.7) (4.9)

Food products of Vegetable Origin 33,532 8.0 27,913 7.8 30,129 8.4 (10.1) 7.9

Eletric Utilities 38,274 9.1 30,391 8.5 29,416 8.2 (23.1) (3.2)

Transportation 27,080 6.4 25,281 7.1 25,099 7.0 (7.3) (0.7)

Services 21,525 5.1 22,099 6.2 20,729 5.8 (3.7) (6.2)

Housing 20,778 4.9 18,668 5.2 17,640 4.9 (15.1) (5.5)

Automobiles and Components 23,041 5.5 16,404 4.6 15,944 4.4 (30.8) (2.8)

Food products of Animal Origin 16,427 3.9 14,892 4.2 15,538 4.3 (5.4) 4.3

Financials 16,439 3.9 9,709 2.7 12,187 3.4 (25.9) 25.5

Retail 17,194 4.1 12,267 3.4 11,828 3.3 (31.2) (3.6)

Construction Materials 13,821 3.3 11,508 3.2 11,190 3.1 (19.0) (2.8)

Agricultural inputs 10,191 2.4 7,399 2.1 8,038 2.2 (21.1) 8.6

Telecommunication Services 5,894 1.4 5,933 1.7 7,548 2.1 28.1 27.2

Textiles 10,116 2.4 7,282 2.0 7,242 2.0 (28.4) (0.5)

Electrical and Electronic Goods 8,048 1.9 6,624 1.9 6,792 1.9 (15.6) 2.5

Pulp and Paper 8,765 2.1 6,345 1.8 6,045 1.7 (31.0) (4.7)

Chemicals 7,065 1.7 5,742 1.6 5,586 1.6 (20.9) (2.7)

Heavy Construction 7,067 1.7 4,927 1.4 4,859 1.4 (31.2) (1.4)

Wholesale and Other Industries 6,945 1.6 4,697 1.3 4,720 1.3 (32.0) 0.5

Furniture and Forest products 5,576 1.3 4,887 1.4 4,639 1.3 (16.8) (5.1)

Leather and Shoes 2,631 0.6 2,122 0.6 2,066 0.6 (21.5) (2.6)

Beverages 1,598 0.4 1,258 0.4 1,279 0.4 (20.0) 1.7

Other Activities 45 0.0 12 0.0 15 0.0 (67.5) 22.2

Total 421,374 100 357,038 100 358,679 100 (14.9) 0.5

Balance Chg. (%) on

Page 23: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Guarantees provided and Provisions

15,254

Jun/17

356

Mar/17

379

17,178

Dec/16

431

17,957

Sep/16

491

18,241

Jun/16

430

19,326

ProvisionsGuarantees Provided

2.32.22.42.72.2

Provisions/Guarantees

R$ million

23

%

Page 24: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

59.8 % Market Share²

+2.0%

Jun/17

188.2

158.2

30.0

Mar/17

180.1

152.2

27.9

Jun/16

184.5

152.6

31.9

+4.5%

RuralAgroindustrial

Agribusiness¹R$ billion

(1) It includes Rural Product Bills and guarantees provided. (2) Source: Brazilian Central Bank – Jun/2017. 24

R$ 103 billion for the

17/18 Harvest

11.5

91.5

Companies of the Agribusiness Value Chain

Rural producers and cooperatives

+3.7%

-6.0%

Chg. (%) on Jun/16

+7.5%

+3.9%

Chg. (%) on Mar/17

Page 25: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

(1) Includes the balance of CRI (Certificates of Real Estate Receivables). (2) Includes part of the balances of the Private Securities shown on Notes to the Consolidated Financial Statements number 17.

(3) It refers to Deposits + Agribusiness Letters of Credit and Mortgage Bonds quarterly cost.

+0.7%

Jun/17

588.5

19.0 24.962.4

120.8

151.0

210.5

Mar/17

584.4

18.3 20.164.0

133.7

148.9

199.4

Dec/16

613.6

20.725.6

69.3

142.0

151.8

204.2

Sep/16

619.9

23.931.6

61.6

150.6

148.7

203.5

Jun/16

624.8

27.530.4

62.5

153.5

148.4

202.5

Interbank DepositsRep. Agreement with Private Securities²Demand DepositsAgribusiness Let. Credit + Mortgage Bonds¹Savings DepositsTime Deposits

Commercial Funding

R$ billion

25

13.8

66.5

12.9

64.063.763.4

14.014.214.1

61.8

Funding Expenses % Selic³ Accumulated Selic (% YTD in 12 months)

86.889.791.6 87.2 87.5

Adjusted Net Loan Portfolio / Commercial Funding

%

Page 26: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Sources

26

R$ million

(1) Includes part of the balances of Private Securities on Notes to the Consolidated Financial Statements number 17.

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending and Subordinated Debt Abroad.

(3) Includes Financial Bonds and Debentures.

Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17

Commercial Funding¹ 669,506 638,611 624,778 619,944 613,611 584,445 588,506

Domestic Onlending 90,065 88,082 86,603 85,078 83,083 81,431 79,453

Subordinated Debt 59,936 58,049 58,648 60,027 61,976 61,123 62,306

Foreign Borrowing² 74,696 58,463 50,911 52,578 50,471 47,581 51,499

Hybrid Capital Instruments 37,342 34,806 31,068 31,825 31,466 31,206 31,753

Financial and Development Funds 15,003 14,781 13,741 14,620 14,791 14,817 14,837

Commercial Paper³ 2,243 2,309 2,393 2,673 2,734 2,812 3,088

Compulsory Deposits (60,811) (62,613) (65,404) (63,637) (63,451) (61,619) (64,659)

Total 887,979 832,489 802,737 803,107 794,680 761,795 766,782

Page 27: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Sources

27

Commercial Funding

Foreign

R$ million

(1) Includes part of the balances of the Private Securities shown on Notes to the Consolidated Financial Statements number 17. (2) Includes the balance of CRI (Certificates of Real Estate Receivables)

Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17

Foreign Securities 33,500 22,885 18,631 20,274 20,393 20,540 21,937

Foreign Borrowing 29,617 25,178 22,763 22,812 20,409 17,769 19,741

Foreign Onlending 10 0 0 0 0 0 0

Subordinated Debt Abroad 11,569 10,400 9,517 9,491 9,668 9,271 9,821

Total 74,696 58,463 50,911 52,578 50,471 47,581 51,499

Cost Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17

Savings DepositsTR + (0.5% if Selic> 8.5%, or

70% of Selic)151,845 151,919 148,368 148,681 151,763 148,910 150,982

Agribusiness Letters of Credits % of CDI 134,823 135,420 135,418 133,098 124,965 112,720 100,665

Judicial Deposits As Savings Deposits 113,652 114,140 116,655 119,281 121,969 121,931 130,514

Time Deposits % of CDI 90,890 88,463 85,834 84,199 82,234 77,511 79,969

Demand Deposits - 66,550 62,631 62,550 61,623 69,349 63,960 62,385

Rep. Agreement with Private Securities¹ % of CDI 52,142 30,471 30,415 31,621 25,591 20,135 24,898

Interbank Deposits % of CDI 41,483 36,885 27,473 23,919 20,665 18,265 18,962

Mortgage Bonds² % of CDI 18,121 18,681 18,066 17,521 17,074 21,012 20,132

Total 669,506 638,611 624,778 619,944 613,611 584,445 588,506

Page 28: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Current Debt Issues Abroad

28(1) - A: annual; S: semiannual; Q: quarterly.

Issue Date Call Date Coupon (%)¹Term in

YearsMaturity

Volume

(US$ thousand)Currency

Rating

S&P/Moody's/FitchStructure

Outstanding

amount (US$

thousands)

07/18/2007 9.750 S 10 07/18/2017 187,198 BRL SR / Ba2 / SR GMTN 105,817

04/29/2008 5.250 Q 10 06/15/2018 150,000 USD BBB / Ba1 / SR MT 100 24,000

10/20/2009 10/20/2020 8.500 S Perpetual Perpetual 1,500,000 USD SR / B2 / SR Stand Alone 1,498,500

01/22/2010 6.000 S 10 01/22/2020 500,000 USD BB / Ba2 / BB GMTN 500,000

10/05/2010 5.375 S 10 01/15/2021 660,000 USD SR / Ba3 / SR Stand Alone 660,000

05/26/2011 5.875 S 11 01/26/2022 1,500,000 USD SR / Ba3 / SR Stand Alone 1,500,000

01/20/2012 04/15/2023 9.250 S Perpetual Perpetual 1,000,000 USD B- / SR / SR Stand Alone 648,727

03/05/2012 04/15/2023 9.250 S Perpetual Perpetual 750,000 USD B- / SR / SR Stand Alone 750,000

06/19/2012 5.875 S 11 01/19/2023 750,000 USD B / Ba3 / SR Stand Alone 750,000

10/10/2012 3.875 S 10 10/10/2022 1,925,000 USD BB / Ba2 / BB Stand Alone 1,809,700

01/31/2013 04/15/2024 6.250 S Perpetual Perpetual 2,000,000 USD B- / SR / SR Stand Alone 1,988,000

07/25/2013 3.750 A 5 07/25/2018 929,775 EUR BB / Ba2 / BB GMTN 820,020

12/20/2013 2.500 A 6 06/20/2019 306,988 CHF BB / Ba2 / BB GMTN 286,937

03/26/2014 3.750 A 4 07/25/2018 417,210 EUR BB / Ba2 / BB GMTN 320,880

06/18/2014 06/18/2024 9.000 S Perpetual Perpetual 2,500,000 USD B- / B2 / SR Stand Alone 2,169,700

Page 29: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Uses

29

Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17

Available Funds 153,343 116,384 106,054 122,741 139,059 130,150 130,936

Net Loan Portfolio (a) 734,636 716,105 696,683 680,366 655,621 631,645 635,846

Classified Loan Portfolio 719,568 703,878 691,832 672,638 653,591 638,336 642,846

Private Securities 48,645 47,625 41,819 45,242 38,100 29,724 30,882

Allowance for Loan Losses (33,577) (35,398) (36,968) (37,514) (36,070) (36,414) (37,881)

Adjusted Net Loan Portfolio (a) - (b) 606,317 589,982 572,451 556,270 532,435 509,431 514,920

Domestic Onlending Loans (b) 128,319 126,122 124,232 124,096 123,186 122,215 120,926

Total 887,979 832,489 802,737 803,107 794,680 761,795 766,782

R$ million

Page 30: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Banco do Brasil: Ratings

30

Jun/13 Jun/14 Jun/15 Jun/16 Jun/17

Standard & Poor's

Long-Term - Local Currency BBB BBB- BBB- BB BB

Long-Term - Foreign Currency BBB BBB- BBB- BB BB

Moody's

Long-Term Debt - Foreign Currency Baa1 Baa2 Baa3 Ba2 Ba2

Long-Term Deposits - Foreign Currency Baa2 Baa2 Baa3 Ba3 Ba3

Long-Term Deposits - Local Currency A3 Baa2 Baa3 Ba2 Ba2

Fitch Ratings

Long-Term - Local Currency BBB BBB BBB BB BB

Long-Term - Foreign Currency BBB BBB BBB BB+ BB

Page 31: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

DepositsLoan PortfolioAssets under

Management²

(1) Comparison with the two largest Brazilian private banks.

(2) It does not include Banco Votorantim. (3) Source: Anbima - Jun/17. (4) Source: Banco Central do Brasil - Jun/17. (5) Source: Banco Central do Brasil - Mar/17. (6) Source: SUSEP – May/17.

587.3

493.6

Bank A Bank BBB

696.1

260.1

Bank ABB

442.8

352.3

Bank B

816.4

Bank A

556.5

625.5

BB Bank B

19.7%

Market Share⁴

21.3%

Market Share⁵

23.1%

Market Share³

31

BB Seguridade6

Rural

Pension Plan

Life

Premium Bonds

Vehicle

Leaderships¹R$ billion

Page 32: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Corporate Governance

Decisions at any level of the Company are made in

Committees, involving several executives in the

definition of strategies and in the approval of

transactions and operations for the different

businesses lines of Banco do Brasil.

Customer Service and

Experience Executive

Committee

Credit Transactions

Committee

Human Resources

Appealing Committee

Information

Technology Committee

Risk, Asset and Liabilities, Liquidity and Capital Management Superior Committee

1 Superior Committee¹

14 Executive Committees¹

32(1) Base date: June 30, 2017.

Profitability and

Performance Executive

Committee

Investor Relations

Executive Committee

Strategic Portfolio

Management Executive

Committee

Risck Management and

Internal Controls

Executive Committee

Asset and Liabilities,

Liquidity and Capital

Management Executive

Committee

Ethics and Discipline

Executive Committee

Prevention of Finan. and

Foreign Exch. Ilicit

transactions and Information

Security Exec. Committee

Products and Services

Executive Committee

Credit Transactions

Executive Committee

Human Resources

Executive Committee

Credit Limit Executive

Committee

Subsidiries and Affiliated Companies

Governance Executive Committee

Administrative and Operational

Executive Committee

Audit Commitee, Risk and Capital Committee, Compensation and Eligibility

Committee

3 Advisory Committees for the Board of Directors

The Only Brazilian Bank listed since 2006 in the

Novo Mercado segment which is comprised of

companies that voluntarily adopt the best

practices in corporate governance.

Other Committees

The Program for State-owned companies with

distinguished corporate governance was created by

B3 with the objective of encouraging state-owned

companies to improve their governance practices

and structures.

Page 33: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Governance Timeline

1st Brazilian

company listed on

the stock

exchange

BB Shares enter the

IBRX-50 portfolio

Bonus A

subscription

BB Shares enter

the B3 ITAG

portfolio

BB Shares enter the

ISE portfolio

Banco do Brasil

joined “Novo

Mercado” (B3)

BB Shares enter Dow Jones

Sustainability Index (DJSI) of

NY stock exchange

BB Seguridade IPO

ADR Level I

Follow on

(secondary shares)

The Board of Directors of BB

approved the upgrade of its

program of American Depositary

Receipt-ADR from level I to

level II

Inclusion of 100%

Tag Along clause

in the Bylaws.

Conversion of the

preferred shares to

common shares

Capitalization

and Restructuring

Plan

BB Shares enter the

IBrX portfolio

Private

placement of

common shares

linked to a public

offering for the

acquisition of

subscription

bonus

Follow on

(primary shares)

1995

1996

2002

1906

1998

20012003

2005

2006

2004

2009

2012

2013

2007

2010

2014

33

B3 S.A. Certification in

the Programa Destaque

em Governança de

Estatais

2017

Page 34: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Customer Segmentation

34

Companies¹ Individuals

IndustrialCommerce and

Services

> R$ 1.5bn > R$ 2bn

> R$ 400mm

≤ R$ 1.5bn

> R$ 600mm

≤ R$ 2bn

> R$ 120mm

≤ R$ 400mm

> R$ 25mm

≤ R$ 120mm

> R$ 200mm

≤ R$ 600mm

> R$ 25mm

≤ R$ 200mm

Corporate

Empresarial Upper Middle

Empresarial Middle

> R$ 5mm ≤ R$ 25mm

> R$ 1mm ≤ R$ 5mm

≤ R$ 1mm

Empresa

Pequena Empresa

Microempresa

Large CorporatePrivate

Estilo / Estilo Digital²

Personalizado /

Exclusivo²

Varejo

Annual Income ≥ R$ 10mm

Investments ≥ R$ 2mm

Monthly Income ≥ R$ 10k

Investments > R$ 150k ≤ R$ 2mm

Monthly Income ≥ R$ 4k < R$ 10k

Investments > R$ 80k ≤ R$ 150k

Monthly Income ≥ R$ 2k < R$ 4k

Investments > R$ 5k ≤ R$ 80k

Mercado EmergenteMonthly Income < R$ 2k

Investments ≤ R$ 5k

(1) Based on Companies annual revenues. (2) Digital Service only.

Page 35: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Digital

Bank

Page 36: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Digital Channels

Internet

Mobile

ATM

In Branches¹

Other2

22.8%

48.8%

13.2%

3.1%

12.1%

Transactions

(1) Branch teller. (2) POS, Banking Agents and others. 36

Jun/17

71.6%

#MaisQueDigital

12.2 millionmobile users

6.3 billionmobile transactions in 1H17,

growth of 29.0% over 1H16.

Target for 201715 million mobile users

Page 37: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Digital Strategy – Improving customer experience

Branch

Relationship Manager

DIGITAL RELATIONSHIP

Manager

Specialized

Advisory

Human Solutions Digital Solutions

Telephone

E-mail

Chat / messages

Videoconference

Documents Electronic Exchange

Double Confirmation

From 10am to 4pm From 8am to 6pm

From 10am to 4pmFrom 8am to 10pm

Ind

ivid

ua

lsC

om

pa

nie

s

37

Page 38: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

ESTILO DIGITAL³

EXCLUSIVO4

Digital service units

ESTILO DIGITAL³

EXCLUSIVO4

143 branches

552 thousand customers

6 offices

52 thousand customers

Digital service units

250 branches

3 offices

1.15 MM customers

39 offices

643 thousand customers

2017 target: 3.3 million high income customers in the digital models38

Digital Strategy Evolution

(1) Refers to the customers in the Estilo, Exclusivo e Personalizado segments. (2) Refers to the customers in the Estilo e Exclusivo segments.(3) Since Jul/17, clients with monthly income ≥ R $ 10 thousand or investments > R$ 150 thousand ≤ R$ 2 million. (4) Since Jul/17, clients with monthly income ≥ R$ 4 thousand < R$ 10 thousand or investments > R$ 80 thousand ≤ R$ 150 thousand..

4.3 MM customers

High income customers in the portfolio¹

H.I. customers in the digital model²

604 thousand customersJu

n/1

6

4.5 MM customers

High income customers in the portfolio¹

H.I. customers in the digital model²

1.8 MM customersJu

n/1

7

Page 39: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Small companies specialized service

93 Empresa Branch ²

+ 215 thousandclients benefited

32 Offices for small

companies¹

Distribution

in Brazil

(1) Customers with gross annual sales ≥ R$ 120 thousand ≤ R$ 1 million. (2) Customers with gross annual revenues > R$ 1 million.

AMPA

MT

ROAC

RR AP

MA

MS

GO

DF

TO

MG

SP

PR

SC

RS

BA

PI

CE

ALPE

SEPB

RN

ES

RJ

Until Dec/17

55 Offices for

small companies

120 Empresa

Branch

Jun/17

39

Page 40: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Conta Fácil represents 1/3 of the accounts opened in BB¹

Conta Fácil Common current account

856 thousand

1.7 million

Opening of

Full Account

through the

App

1 million Contas Fácil opened until

August 09, 2017

(1) Since the launch of the Conta Fácil (November 01, 2016 to June 30, 2017). 40

Page 41: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Credit Card / Digital Solutions

Payment with Livelo Points

APP Ourocard

Samsung Pay

Ourocard Bracelet (Launch in May 2017)

Ourocard-e

Since launch

• More than 1 million

downloads

• About 330 thousand

active customers

• Launched in March / 2017, it uses NFC technology - mobile

payment.

• First bank to introduce the concept of "loyalty wallet" in Brazil.

• Payments with NFC or MST technology.

• It complements BB's solutions and strengthens the expansion of

digital services.

• First wearable mean of payment lauched by BB.

• Can be used in Credit and Debit Functions.

• Uses NFC technology - payment by proximity.

• 2Q17 cards turnover of R$ 97 million, up 17.8% from 1Q17.

• More than 525 thousand Ourocard-e generated since launch.

41

Page 42: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Auto loans transactions exceed R$ 512 million

R$ 512 million¹

in loans

55% of transactions carried out outside the

banking hours²

1 in 3 operations are madethroughmobile

(1) Total disbursement since launch in 2015.

(2) Banking hours: business days, from 10:00 a.m. to 3:00 p.m., Brasília time.

BB was the first to

finance auto loans

through mobile in

2015

Expected

disbursement of

R$ 1 billion in 2017

From your cell

phone to your

garage

42

Page 43: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

02EARNINGSHIGHLIGHTS

Page 44: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Profitability,

efficiency, control of

delinquency and

capital

Customer

Experience

Digital

Transformation

Str

ate

gic

Gu

ide

lin

esHighlights 1H17 / 1H16

Fee Income

10.0% growth.

Net interest Income¹

Stable, growing 0.3%.

Administrative Expenses

Under control, 0.9% decline.

Cost to income ratio²

Reached 38.9%.

(1) Net of write-off recovery. (2) Cost to Income Ratio: Administrative Expenses / Operating Revenues accumulated in 12 months. Data from the

Income Statement with Reallocations.

Page 45: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Net Income

+67.3%

1H171H16

3.087

1.801

2.649

1.286

5.164

2.515

Adjusted Net Income 1QAdjusted Net Income 2Q

+4.9%

1H171H16

4.824

2.465

2.443

5.062

2.619

2.359

Net Income 1QNet Income 2Q

45

2Q16 1Q17 2Q17 1H16 1H17

Shareholders ROE % 10.3 13.7 14.1 8.8 13.7

Market ROE % 9.2 12.4 12.8 7.9 12.4

Profitability Ratios

R$ billion

Page 46: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Earnings Breakdown

46

(3.05)

(4.82)

6.32

(6.66)

14.61

2.62

(0.03)

2.65

(3.75)

(7.86)

Personnel

Expenses

(6.14)

(9.49)

Fee Income

12.41

ALL

(13.37)

NII

29.08

Net Income

5.06

One-Off Items

(0.10)

Adjusted

Net Income

5.16

Other

(7.32)

Administrative

Expenses

(15.64)

2Q17

1H17

R$ billion

Personnel

Expenses

Page 47: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Market RatiosDividend Yield² (%)Earnings per Share

Price/Book ValuePrice/Earnings 12 months

(1) Bloomberg estimative in August 08, 2017 based on analysts’ projections average. Banco do Brasil is not responsible for this information. (2) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica.

Source: Economatica.

11.59

4Q16

9.74

3Q16

6.63

2Q16

4.60

6.89

2018E¹2017E¹

8.00

2Q17

9.02

1Q17 2018E¹

0.88

2017E¹

0.97

2Q17

0.82

1Q17

1.05

4Q16

0.90

3Q16

0.74

2Q16

0.57

2017E¹

3.23

2Q17

3.26

1Q17

2.57

4Q16

3.01

3Q16

4.86

2Q16

7.62

2018E¹

3.81

2Q17

0.950.94

1Q17

0.900.86

4Q16

0.63

0.34

3Q16

0.840.80

2Q16

0.65

0.88

Adjusted Earnings per Share - R$Earnings per Share - R$

5.05

2.57

3.96

2016 2017E¹

3.914.124.55 4.54

2018E¹2015

2.84

Source: Economatica.

47

Page 48: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Net Interest Income

(1) It includes senior bonds, subordinated debt, and Hybrid Instruments in Brazil and abroad.

(2) It includes the result from interest, tax hedging, derivatives, and other financial instruments that offset the effects of the exchange rate variation on result.

(3) Series revised (Funding Expense for Institutional Funding to Treasury). Impact in all tables with those lines.

R$ million

48

Chg. (%) on

2Q16 1Q17 1H16

Net Interest Income 14,633 14,476 14,606 (0.2) 0.9 28,909 29,083 0.6

Net Interest Income W/O Recovery 13,249 13,521 13,212 (0.3) (2.3) 26,665 26,733 0.3

Loan Operations 25,311 23,611 21,786 (13.9) (7.7) 50,390 45,398 (9.9)

Funding Expenses (11,034) (9,755) (8,404) (23.8) (13.9) (21,965) (18,159) (17.3)

Financial Expense for Institutional Funding¹ ³ (3,785) (3,470) (3,146) (16.9) (9.4) (7,518) (6,616) (12.0)

Treasury² ³ 2,758 3,135 2,975 7.9 (5.1) 5,758 6,110 6.1

Recovery of Write-offs 1,384 956 1,394 0.8 45.9 2,245 2,350 4.7

1H16 1H172Q16 1Q17 2Q17Chg. (%) on

Page 49: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Spread by Portfolio

(1) Government loans not included.

2Q17

4.72

5.01

7.34

16.12

1Q17

4.83

6.05

7.67

16.11

4Q16

5.00

6.34

7.98

16.60

3Q16

4.97

6.10

7.86

16.48

2Q16

4.93

5.89

7.71

16.31

AgribusinessCompanies¹Loan OperationsIndividuals

49

%

Page 50: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Net Interest Margin¹

50

NIM ex all effects

4.96

Revolving Credit

Card Revenues

0.08

NIM ex Mix

4.88

Mix Composition

0.13

NIM

4.75

2Q17

2.56

4.75

1Q17

2.56

4.82

4Q16

2.57

5.06

3Q16

2.72

4.90

2Q16

2.10

4.89

%

Risk Adjusted NIMNet Interest Margin (NIM)

(1) Net interest income / average balance of earnings assets, annualized.

Impacts of the Quarter - Net Interest Margin

Page 51: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Earning Assets Breakdown

51

51.3%43.8%

4.9%

Other Loans and Leasing OperationsSecur. + Interbank Invest. w/o Hedge

49.8%45.4%

4.8%

36.0%

32.6%

Agribusiness

Wholesale Operations²

Retail Operations¹

31.4%

35.3%

32.4%

32.2% Agribusiness

Retail Operations¹

Wholesale Operations²

2Q171Q17

(1) Includes loans with individuals, very small and small companies. (2) Includes loans with Government and remaining companies.

Page 52: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Assets and Liabilities Breakdown

52

R$ billion

Liabilities

10.3%

0.3% 2.4%

19.0%

16.4%

24.0%

27.7%

Assets

4.9%1.0% 1.6%

10.1%

15.9%

15.2%

51.3%

US$ / Gold

CDI / TMS / FACP

IRP/TBF/TR

Price Index

W/O Index

TJLP

Fixed

Jun/17

1,610

Page 53: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

BB’s Consolidated Net Position

53

R$ billion

-7,369

11,498

379,992

-144,286-140,910

-86,947

-11,979

IRP/TBF/TRCDI / TMS / FACPW/O IndexTJLPUS$ / GoldPrice IndexFixed

Jun/17

Page 54: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

R$ million

Fee Income

54

Chg. (%) on

2Q16 1Q17 1H16

Fee Income 5,886 6,096 6,316 7.3 3.6 11,285 12,411 10.0

Checking Account Fees 1,534 1,597 1,712 11.6 7.2 2,969 3,309 11.5

Asset Management Fees 1,077 1,295 1,336 24.0 3.1 2,080 2,631 26.5

Insurance, Pension and Premium Bonds 835 763 665 (20.3) (12.9) 1,532 1,429 (6.8)

Loan Fees 444 412 550 23.8 33.5 804 963 19.7

Collections 421 383 372 (11.7) (2.7) 840 755 (10.1)

Credit / Debit Cards 337 370 370 9.9 0.1 663 740 11.6

Billings 257 273 270 4.9 (1.1) 517 543 4.9

Capital Market 192 170 180 (6.5) 5.6 320 350 9.3

National Treasury and Manag. of Official Funds 150 167 171 13.9 2.2 282 338 19.9

Consortium 123 161 175 42.6 8.6 238 336 41.0

Interbank 46 41 39 (14.7) (4.5) 89 81 (9.5)

Other 469 463 475 1.2 2.6 950 937 (1.3)

2Q16 1Q17 2Q17 1H16 1H17Chg. (%) on

Page 55: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

38.939.9

Cost to Income Ratio (12 months)

15,638

1H17

6,144

1H16

9,494

-0.9%

15,781

9,745

6,036

Personnel Expenses Other Administrative Expenses

R$ million

Administrative Expenses and Cost to Income Ratio¹

55

Jun/16 Jun/17

Points of Service

Employees

Branches

109,615 99,603

5,428 4,885

1,738 2,117

Own Service Network 17,181 16,098

7,774

3,096

2Q16

4,677

7,864

3,047

1Q17

4,817

2Q17

7,973

3,017

4,956

39.9 39.3 38.9

(1) Cost to Income Ratio: Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations.

The institutional reorganization brought an impact of

R$ 144 million in administrative expenses in 1H17.

Excluding this effect, the decline would have been

1.8% over 1H16, against 0.9% printed.

Page 56: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

3.473.29

3.50

Jun/17

4.11

Mar/17Dec/16Sep/16

3.06

Jun/16

2.85

3.26

3.70

3.89

BB BB ex-specific cases

56

3.70

3.90

3.70

3.50

3.70

Banking Industry

Delinquency Ratios (+90 days)¹

(1) BB Classified Loan Portfolio.

Page 57: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

Jun/17

6.98

8.26

2.24

9.41

6.46

Mar/17

9.97

2.30

11.09

6.94

Dec/16

8.25

1.81

9.29

5.26

Sep/16

8.47

1.79

8.47

5.97

Jun/16

1.45

7.09

4.55

5.83

Jun/17

6.08

6.21

1.39

7.35

3.34

Mar/17

5.70

1.28

6.83

3.09

Dec/16

0.99

2.67

Sep/16

0.96

5.26

2.56

Jun/16

0.95

4.82

2.37

NPL Ratio +90 days (%) NPL Ratio +15 days (%)

Simulation considering Mar/17 loan portfolio, ex-specific caseSimulation ex-specific caseAgribusinessCompaniesIndividuals

Delinquency Ratio¹ by Segment

57(1) BB Classified Loan Portfolio.

Page 58: Presentation Institutional 2Q17 - BB · Institutional Presentation 2Q17. This presentation may include references and statements, planned synergies, estimates, projections of results,

NPL Formation

1Q17

9.75

4Q16

6.97

3Q16

7.12

2Q16

9.73

1Q16

7.39

4Q15

6.22

3Q15

5.59

2Q15

4.91

2Q17

6.84

1.071.49

1.041.031.38

1.030.870.810.72

0.98 1.08

94.93

68.82

107.4393.32120.55

85.05

123.80112.32 97.40104.30105.68 97.40

1Q17

10.10

4Q16

7.63

3Q16

7.55

2Q16

10.48

1Q16

7.93

4Q15

7.13

3Q15

6.16

2Q15

5.45

2Q17

8.44

New NPL (R$ billion)¹

44.35% of the total

contracts in 2Q17were 90

days past due transactions.

Including the past

due renegotiated

loan portfolio³

58

86.43

66.47

98.1488.03108.26

78.94

115.3498.1094.7095.31

78.87

Quarterly ALL/New NPL - ex-specific cases

Quarterly ALL/New NPL (%)

1.19

1.551.131.09

1.09

1.491.101.000.890.80

1.32

New NPL / Loan Portfolio - ex-specific cases

New NPL / Loan Portfolio (%)²

(1) Quarterly change in the balance of over 90 days past due transactions + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter.

(3) Flow of the Renegotiated loan portfolio contracts of over 90 days past due transactions.

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NPL Formation by Segment

1Q17

1.87

4Q16

1.57

3Q16

1.61

2Q16

1.28

1Q16

1.70

4Q15

1.17

3Q15

1.16

2Q15

1.12

2Q17

1.76

1.000.840.850.680.930.650.650.65 0.95

89.78140.20

87.75100.3482.97113.12105.4660.72 99.12

Ind

ivid

ua

ls

Ag

rib

us

ine

ss

1Q17

6.41

4Q16

4.55

3Q16

4.63

2Q16

5.02

1Q16

4.71

4Q15

4.15

3Q15

3.61

2Q15

3.37

2Q17

4.11

New NPL (R$ billion)¹

117.12

68.14

121.2094.34

115.35100.94103.98106.13113.19 96.86

Quarterly ALL/New NPL (%) - ex-specific case

Quarterly ALL/New NPL (%)

1.50

2.571.731.691.751.581.431.261.17

1.721.72

59

Co

mp

an

ies

0.72

3Q16

0.70

2Q16

0.37

1Q16

0.98

4Q15

0.84

3Q15

0.70

2Q17

0.87

2Q15

0.40

4Q16

1.02

1Q17

59.35-46.61

104.44105.72106.18113.2876.26 86.40140.20

0.570.400.380.210.560.490.420.24

0.48

New NPL ex-specific case

New NPL / Loan Portfolio (%)²

(1) Quarterly change in the balance of over 90 days past due transactions + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter.

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Vintages

60

Annual Vintage – Individuals Loan Portfolio

0 10 20 30

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

Delin

quency

90 d

ays

Months

40 50 0

0%

Months

5%

10%

15%

20%

10 20 30 40 50

Annual Vintage – Very Small and Small Companies

Loan Portfolio

Delin

quency

90 d

ays

Vintage: 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A Vintage: 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A

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143.3

164.2159.5

146.5

167.7

167.8

159.4

173.2

163.9

180.0186.5

174.4178.4175.7

ALL Balance and Coverage Ratio

R$ million

(1) Banking Industry: Ratio created through Average Risk Index available at SGS (Time Series Management System) of the Brazilian Central Bank. 61

37,8811,851

36,030

Mar/17

36,4141,686

34,728

Dec/16

36,0701,535

34,535

Sep/16

37,514

Jun/16

36,968

Jun/17

Supplementary ProvisionMinimum ProvisionRequired Provision

(%)

BB +90 days BB ex-specific cases BI +90 days¹

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Coverage Ratio by Segment

1Q17

153.5

181.7

128.3

183.9

4Q16

228.9

145.8

199.6

3Q16

295.6

141.0

190.9

2Q16

290.0

144.9

201.3

2Q17

177.1

126.0

167.0

149.3

153.1

435.0

349.4

118.9

367.2

119.4

206.4

Foreign Branches and Subsidiaries ex-specific caseForeign

Companies ex-specific caseAgribusinessCompaniesIndividuals

62

%

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ALL Balance – Regular and Past Due Transactions

63

Jun/17

19.58

16.45

37.88

Mar/17

19.38

15.34

36.41

Dec/16

18.51

16.03

36.07

Sep/16

21.65

15.87

37.51

Jun/16

20.66

16.31

36.97

R$ billion

Regular (Generic) Past Due (Specific)Total ALL

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Provision Expenses Flow / Loan Portfolio (%)

0.700.270.450.41

1.67

0.99

0.41

0.91

0.46

1.041.05

1.83

0.55

2.21

1.150.75

1.66

0.68

2.11

1.70

0.94

0.55

-0.24

1.181.20

5,794

1,411

4,370

396

730804

2Q16

132

8,277

1,282

2Q17

6,658

1,743

3,979

188

6,644 6,713

3Q16

748

-3362,207

5,517

1,677

4Q16

60

98

7,486

606

4,370

1Q17

Individuals

Companies

Foreign

Agribusiness

ALL by Segment (R$ million)¹

Agribusiness

Individuals

Companies

Total

Foreign

64(1) Quartely ALL expenses gross of write-off recovery.

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Average Risk and Loan Portfolio by Risk Level

Loan Portfolio by Risk Level

91.1% of the

transactions are

concentrated in

levels AA to C

(1) Required Provision / BB Classified Loan Portfolio. Source: SGS (Brazilian Central Bank). 65

8.9%

9.9%

20.7%

14.2%

46.3%

D-HCBAAA

Mar/17

6.80

5.70

Dec/16

6.60

5.52

Sep/16

6.50

5.58

Jun/16

6.30

5.34

Jun/17

5.89

6.90

Banco do Brasil Banking Industry

Average Risk¹ (%)

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2Q17

5.89

2.33

9.27

5.92

1Q17

5.70

2.32

8.76

5.69

4Q16

5.52

2.27

8.50

5.33

3Q16

5.58

2.82

7.42

4.89

2Q16

5.34

2.75

6.98

4.78

Classified Loan PortfolioAgribusinessCompaniesIndividuals

Average Risk by Segment¹

66(1) Required Provision / BB Classified Loan Portfolio.

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12 months Quarterly

4.24.34.64.44.3

ALL / Loan Portfolio¹

2Q17

6.7

638.2

1Q17

6.7

644.4

4Q16

7.5

662.8

3Q16

6.6

682.0

2Q16

8.3

698.6

Allowance for Loan LossesLoan Portfolio

704.0

2Q17

27.5

657.3

1Q17

29.1

671.8

4Q16

31.6

688.8

3Q16

31.1

700.8

2Q16

30.2

Allowance for Loan LossesLoan Portfolio

1.01.01.11.0

1.2

ALL / Loan Portfolio²

(1) ALL expenses accumulated in 12 months / 12 months Average Loan Portfolio. (2) Quarterly ALL Expenses / 3 months Average Loan Portfolio.

Cost of Risk

67

R$ billion

%

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Mar/17

5.5

4.1

Dec/16

5.2

3.8

Sep/16

4.8

3.1

Jun/16

4.5

2.7

Jun/17

4.1

5.8

Peers Average²Banco do Brasil

Write-off – % of the Classified Loan Portfolio¹

68(1) Write-offs accumulated in 12 months / Classified loan Portfolio (12 months). (2) It corresponds to the three largest Brazilian private banks.

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Renegotiated Overdue Loan Portfolio

69

2Q16 1Q17 2Q17

Credits Renegotiated When Past Due - Changes

Initial Balance 22,038 27,086 26,618

Contracts 5,026 2,332 3,622

Amortization Net of Interest¹ (979) (864) (1,211)

Write-Off (1,036) (1,936) (1,986)

Past due Renegotiated Loan Portfolio (A) 25,050 26,618 27,042

ALL Balance (B) 10,369 12,314 12,924

NPL + 90 days (C) 5,642 7,410 7,094

Indicators - %

ALL / Loan Portfolio (B/A) 41.4 46.3 47.8

NPL + 90 days / Loan Portfolio (C/A) 22.5 27.8 26.2

ALL Balance/NPL + 90 days (B/C) 183.8 166.2 182.2

Credits Renegotiated/Classified Loan Portfolio 3.6 4.2 4.2

1Q17

1.97

4Q16

2.37

3Q16

2.10

2Q16

2.38

2Q17

1.67

New NPL (R$ billion)²

7.289.248.3710.786.27

New NPL / Loan Portfolio (%)³

NPL Formation

R$ million

(1) Principal and interest payments net of interest accrued in the period.

(2) Quarterly change in the balance of over 90 days past due transactions + current quarter write-off. (3) It considers the Classified Loan Portfolio of the previous quarter.

Credits Renegotiated Contracts %

0 to 14 days Past due 830 22.92

15 to 90 days Past due 811 22.40

Over 90 days Past due 1,606 44.35

Writen-Off Recovery 374 10.32

Total 3,622 100

2 transactions represent 20% of 2Q17 contracts.

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Renegotiated Loan Portfolio

70

12,292 12,924

Jun/17Dec/16

12,31410,952

Sep/16

11,92510,734

Jun/16

10,7849,760

Mar/16

10,3698,563

BB - ALL BalancePeers Average - ALL Balance

26.2

22.4

27.8

24.5

27.2

26.8

24.8

23.5

22.5

24.0

BB - Renegotiated Portfolio NPL +90 days (%)Peers Average - Renegotiated Portfolio NPL +90 days (%)

BB x Peers¹R$ million

(1) It corresponds to the two large Brazilian private banks.

Renegotiated Loan

4.2

5.2

Renegotiated Loan Portfolio/Classified Loan Portfolio (%)

2Q17

27,04222,291

BB

Peers Average¹

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%

BIS Ratio

71

16.4517.59

18.48 18.15 18.01

11.3412.18

12.79 12.41 12.42

8.42 9.07 9.59 9.20 9.18

Jun/16 Sep/16 Dec/16 Mar/17 Jun/17

Tier II Tier I Common Equity Tier I

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Simulated BIS Ratio

under complete

Basel III Rules

17.94

Use of Tax Credits

0.75

BIS Ratio with Fully

Loaded Basel III Rules

17.19

RWA Rules Anticipation

-0.28

BIS Ratio with

full deductions

17.47

Deductions Schedule

Anticipation

-0.54

BIS Ratio

18.01

Use of Tax Credits

0.71

Tier 1 with Fully

Loaded Basel III Rules

11.64

Simulated Tier 1

under complete

Basel III Rules

12.35

-0.19

Tier 1 with full

deductions

11.83

Deductions Schedule

Anticipation

-0.60

Tier 1

12.42

RWA Rules Anticipation

BIS

Full Application of Basel III Rules

Simulated CET1

under complete

Basel III Rules

9.11

Use of Tax Credits

0.69

CET1 with Fully

Loaded Basel III Rules

8.41

RWA Rules Anticipation

-0.13

CET1 with full

deductions

8.55

Deductions Schedule

Anticipation

-0.63

Common Equity

Tier I (CET1)

9.18

Tie

r1

CE

T 1

%

72

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BIS III – Implementation Schedule

(1) Additional CET1 Countercyclical Buffer not activated by the Brazilian Central Bank in 2017.

%

73

2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500

Tier 1 6.000 6.000 6.000

Brazilian BIS Ratio 9.250 8.625 8.000

Capital Conservation Buffer 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer (superior limit) 1.250¹ 1.875 2.500

Additional CET1 Systemic (D-SIB) Buffer 0.250 0.500 1.000

CET1 + Buffers 6.000¹ 8.750 10.500

Tier 1 + Buffers 7.500¹ 10.250 12.000

Brazilian BIS Ratio + Buffers 10.750¹ 12.875 14.000

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Guidance 2017

74

Guidance

2017

1H17

Performance

Revised

Guidance

Adjusted Net Income - R$ billion 9.5 to 12.5 5.2 Unchanged

NII (Net of Recovery of Write-offs) - % 0 to 4 0.3 -4 to 0

Organic Domestic Loan Portfolio - Broad Definition - % 1 to 4 -6.6 -4 to -1

Individuals - % 4 to 7 1.0 2 to 5

Companies - % -4 to -1 -14.5 -11 to -8

Rural Loans - % 6 to 9 3.7 Unchanged

ALL Expenses net of Recovery of Write-offs - R$ billion -23.5 to -20.5 -11.0 Unchanged

Fee Income - % 6 to 9 10.0 Unchanged

Administrative Expenses - % 1.5 to 4.5 -0.9 -2.5 to 0.5

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Net Income (R$ million)

Delinquency and Risk (%)

Banco Votorantim

108.2

2Q17

145.1

1Q17

127.4

4Q16

119.3

3Q16

112.1

2Q16

+34.1%

Jun/17

88.9

9.8 11.7

Sep/16

90.2

9.8

Jun/16

90.2 88.3 89.2

Mar/17Dec/16

10.8 11.1

D-H AA-C

5.5

4.54.6

5.5

4.4

NPL +90 days / Loan Portfolio

75

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03MACROECONOMIC INFORMATION

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Inflation and Selic Rate

77

2012 2013 2014 2015 2016

7.28

8.49

2.172.50

5.84 5.91

8.21

10.67

6.41

10.91

13.28

4.23

14.03

2.36

6.29

Accumulated Selic (% YTD in 12 months) IPCA (acum. 12 months % a.a.) Real Interest Rate²

7.50

3.50

3.86

2017¹

7.50

4.20

3.17

2018¹

14.11

3.00

8.84

4.84

Jun/16

12.89

9.61

Jun/17

(1) Source: Banco Central do Brasil and IBGE. Projection for 2017 and 2018, according to Boletim Focus as of August 11, 2017. (2) Real Interest Rate = Selic / IPCA

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Demographics: Population Pyramid

0 to 4

5 to 9

10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

+80

0 to 4

5 to 9

10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

+80

0 to 4

5 to 9

10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

+80

Demographics: Population Pyramid

206020151980

Subtitle: Men Women

20

15

20

60261% increase in the elder population

78

Ag

e i

n y

ears

Ag

e i

n y

ears

Ag

e i

n y

ears

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Population: Dependency Ratio¹

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

55%

66.0%

40%

45%

50%

55%

60%

65%

70%

(1) Dependency ratio measures the relative participation of the potentially non-working population (under 14 years old and above 65 years old) to be sustained by the portion of the potentially employed population (between 14 years old and 65 years old).

Fonte: IBGE Development: BB

Last moment

of

demographic

bonus.

79

43.3%

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Social Security Deficit – RGPS¹ (R$ billion)

The growing gap between the contributions and payment of social security benefits has driven the exponential

increase of the social security deficit over the last years.

Social Security Deficit – General Regime

(R$ billion - prices as of Oct/16)

(1) Social Security General Regime. Source: STN - Development: BB - * Balance accumulated in12 months .

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

No

v/2

016*

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

No

v/2

016*

120

170

220

270

320

370

420

470

520

9.3 2

3.2 29.4

34.7

29.1 4

2.3

57.5 65.4 72.0

77.6

79.9

61.1 69.0

65.9

51.2

55.8 64.2

68.3

94.5

141.7

Revenues and Social Security Benefits – General

Regime (R$ billion - prices as of Oct/16)

80

Social Security Benefits Social Security Revenue

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Main Pillars of Brazilian Growth

Agriculture InfrastructureForeign

Trade

81

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82

Sustainable Growth

Brazil

USAChina

India Russia

Argentina

Kasakhstan

Australia Canada

Germany

UKFrance

Korea

Italy

Spain

Japan

Mexico

Indonesia

Planting Area

> 140 million há¹GDP > US$ 1 trillion¹

Brazil has the ideal conditions for sustainable growth.

Only a few countries have the same potential.

Urban Population

> 80 million people¹

Source: World Bank and FAO.(1) 2011.

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Brazilian Agribusiness: Overview

Area

8.5 milllion Km²

Overview

Population (2016)

206 million

GDP (1Q17)

+1.0%¹

Agricultural GDP (1Q17)

+13.4%¹

Source: Ministério da Agricultura and IBGE.(1) Change in Quarterly flow. 83

Production

Brazil: World Commodities Ranking

Exports

Coffee

Orange Juice

Sugar

Soybean

Poultry

Beef

Corn

Source: USDA – PSD online.

Jun/17

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PPPs in Brazil can reach R$ 1.3 trillion (USD 452 billion CAPEX) over

the next years

R$ 324.8 billion in Logistics and Urban Mobility

Toll Roads

R$ 14.7billion

Toll Roads

R$ 12.1billion

Logistics: R$ 61.6 billion

Railroads

R$ 39.0billion

São Paulo Segue em Frente: R$ 13.4 billion

Bus Service

R$ 6.0billion

Ports

R$ 1.5billion

Metro Line

R$ 11.0billion

Airports

R$ 6.4billion

Regional

Airports

R$ 0.1 billion

BNDES – Expectation of investments in Urban Mobility: R$ 234 billion

R$ 688.1 billion in Water and Waste, Urbanization & Street Lighting

Water

R$ 158.7 billion

Plansab – National Plan for Sanitation: R$ 660.4 billion expected up to 2033

Street Lighting: R$ 27.8 billion

Sewage

R$ 236.2billion

Waste

R$ 30.3 billion

Drainage

R$ 89.2billion

Managment*

R$ 145.9billion

* Actions related to increase efficiency in the management and provision of services, to technical qualification of employees and to

implementation of educational campaigns, among others actions.

R$ 31.9 billion in Power Sector

Generation R$ 7.6 billion

Transmission Lines R$

24.3 billion (lot Out/16 +

2017 auctions)

R$ 251 billion* in Oil & Gas

Oil US$ 80 billion*

According to the Energy Ministry

Source: MPDG, MME, MCidades, MMA and SP Government.

Produced by: BB. ** USD = R$ 3.14 as of July 31, 2017.

84

36% 100%

50%

100%

92%

100%

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85

Brazilian Foreign Trade Balance Evolution

47.7

19.7

-4.0

Trade Balance (US$ billion – year accumulated)

2016

137.6

185.3171.5

2015

191.1

2014

229.1225.1

Exports (US$ billion – year accumulated) Imports (US$ billion – year accumulated)

2Q16

90.3

66.671.5

2Q17

107.7

23.7

36.3

Source: Ministério do Desenvolvimento, Indústria e Comércio Exterior.

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Summary Table

86All indicators were obtained from official sources such as Banco Central do Brasil, FGV (Fundação Getulio Vargas), IBGE etc.

2014 2015 2016 2Q16 1Q17 2Q17

Economic Activity

Nominal GDP in 4 Quarters (R$ in currents billion) 5,779 6,001 6,267 6,120 6,363 N/A

GDP (real % YTD in 12 months) 0.5 (3.8) (3.6) (4.8) (2.3) N/A

Family Consumption 2.3 (3.9) (4.2) (5.5) (3.3) N/A

Government Consumption 0.8 (1.1) (0.6) (1.1) (0.7) N/A

Gross Fixed Capital Formation (4.2) (13.9) (10.2) (15.0) (6.7) N/A

Exports (1.1) 6.3 1.9 7.2 (0.4) N/A

Imports (1.9) (14.1) (10.3) (18.0) (2.7) N/A

Retail Trade Sales (% YTD in 12 months) 0.9 (4.3) (6.3) (6.7) (5.2) N/A

Businessman confidence (rate - period average) 91.3 77.8 82.2 80.2 87.7 91.4

Consumer confidence (rate - period average) 93.2 72.4 74.4 68.5 83.2 81.9

Industrial Production (% YTD in 12 months) (3.0) (8.2) (6.4) (9.7) (3.5) (1.9)

Unemployment rate (% of employed population - period average) 6.8 8.3 11.3 11.2 13.2 13.3

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Summary Table

87All indicators were obtained from official sources such as Banco Central do Brasil, FGV (Fundação Getulio Vargas), IBGE etc.

2014 2015 2016 2Q16 1Q17 2Q17

External Sector

Current Transactions (% GDP in 12 months) (4.3) (3.3) (1.3) (1.7) (1.1) (0.8)

Direct Foreign Investment (US$ billion - year accumulated) 96.9 74.7 78.2 33.8 23.8 36.3

Trade Balance (US$ billion – year accumulated) (4.0) 19.7 47.7 23.7 14.4 36.3

Exports (US$ billion – year accumulated) 225.1 191.1 185.3 90.3 50.5 107.7

Basic 109.6 87.2 79.2 41.2 24.2 52.5

Manufactured 80.2 72.8 73.9 34.2 17.9 37.7

Semi-manufactured 29.1 26.5 28.0 12.8 7.2 15.1

Special Operations 6.3 4.7 4.2 2.0 1.2 2.5

Imports (US$ billion – year accumulated) 229.1 171.5 137.6 66.6 36.0 71.5

Capital Goods 29.5 23.3 18.4 10.0 3.7 7.3

Intermediary Goods 126.9 99.5 84.9 39.8 22.8 45.0

Consumer Products 33.1 26.8 21.7 10.4 5.5 11.0

Fuels 39.5 21.7 12.4 6.3 4.0 8.2

Other 0.2 0.2 0.1 0.1 0.1 0.1

International Reserves (US$ billion – end of period) 375.8 361.2 367.5 362.2 367.7 374.9

Sovereign Risk (basis points – end of period) 259 523 328 350 270 289

CDS 10Y (In base points - end of period) 259 558 360 394 319 346

Exchange Rate (R$/US$ - end of period) 2.66 3.90 3.26 3.21 3.17 3.31

Public Finance

PSGD (% GDP) 56.3 65.5 69.9 67.5 71.2 73.1

Nominal Result (R$ billion - in 12 months) (343.9) (613.0) (562.8) (600.5) (580.0) (607.5)

Nominal Result (% GDP - in 12 months) (6.0) (10.2) (9.0) (9.8) (9.1) (9.5)

Monetary Ratios

Selic (end of period %) 11.75 14.25 13.75 14.25 12.25 10.25

Accumulated Selic (% YTD in 12 months) 10.91 13.28 14.03 14.11 13.79 12.89

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04 SUSTAINABILITY

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Socio-environmental (SER) Policy

Development of

responsible socio-

environmental

businesses and

Private Social

Investment

SER Governance

and socio-

environmental risk

management

Natural

resources

conscious

consumption

For us in Banco do Brasil, socio-

environmental responsibility

means: “to have Ethics as our

commitment and Respect as our

attitude in our interactions

with employees, stakeholders,

suppliers, partners,

customers, creditors,

shareholders, competitors,

community, government and the

environment”.

89

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Board of Directors

Annually: monitor BB’s socio-environmental performance

and the initiatives in progress.

On demand: approve, within its competence, proposals to

improve of BB’s socio-environmental performance.

Board of Officers

Biannually: approve BB’s Sustainability Plan.

Semiannually: track the execution of BB’s Sustainability

Plan.

On demand: approve, within its competence, proposals to

improve of BB’s socio-environmental performance.

Strategic Committees

On demand: discuss, propose and approve, within its

competence and level of authority actions related to

sustainability.

Biannually: assess BB’s socio-

environmental performance and

present demands for

enhancement to support the

preparation of BB’s Sustainability

Plan.

Quarterly: support process of

incorporation, alignment and

dissemination of BB’s sustainability

precepts and practices; Track socio-

environmental initiatives and

implementation of the BB’s

Sustainability Plan.

Stakeholders’

Panel

Sustainability Forum / Executive

Committee

Sustainability

Development

Workshop

Teleconferences

Biannually: assess trends and

demands related to the

sustainability and propose actions

for BB’s Sustainability Plan.

On demand: alignment of procedures to

support the Business Units on the

execution of socio-environmental

actions.

SER Governance

90

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SER Strategy – Agenda 30 BB

PROSPECTION

AND CONSULT REPORTS AND

TRANSPARENCY

FEEDBACK

SOCIO-ENVIRONMENTAL PERFORMANCE

Inductor Instruments

Legislation

Specific and General Policies

Internal rules

Board of Directors

Corporate Strategy and BB’s Sustainability Plan

Performance Evaluation

Instruments: Master Plan, Balance Scorecard,

Manager Radar

Metrics: Socio-environmental indexes,

Capital Markets indexes, such as DJSI and

ISE

Annual Report

Management

Report

Intranet/Internet

Campaigns

Market Trends and

Demands / Society

Stakeholders

Panel

Capital Markets

Indexes

Sustainability

Rankings

91

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Updated every 2 years based on market and society demands

394 actions between 2005 and 2017 (5 editions)

Sixth version (2017-2019) – 82 actions

Inspired on UN Sustainable Development Goals

Followed by Sustainability Forum, Board of Officers and Board of Directors

Results presented in Annual Report

Capital Market awards: DJSI, ISE, ICO2

SER Strategy – Agenda 30 BB

Planet

Structured in 5 pillars:

Prosperity

Partnership

People

Peace

92

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Socio-environmental Risk Management

Socio-environmental Risk

Potential Losses coming from social and / or environmental impacts generated by the

institution's activities, directly or indirectly.

The procedures to manage socio-environmental risk encompass exposures on credit,

investments, insurance, operational risks, strategy risk, reputation risk and administrative

activities.

Business

Management

93

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1969

First public

contest

available for

women

1979

First woman

signed for a

lead position

in a branch

Promotion of gender equity

2006

BB signs the

“Programa

Pró-Equidade

de Gênero”

from the

Federal

Government

1987

First women

signed for a

lead position

abroad

1996

First three

woman in the

executive

manager

position

2003

First female

Senior

Director

(statutory

position)

2010

Signing up of

the UN

Women's

Empowerment

Principles

2017 Increase of gender

affirmative actions in the

programs of professional

ascent.

Extension to transgenders

of the exclusive Internal

Ombudsman channel for

women.

All executives sign up to

for the HeForShe

movement (from UN

Women).

94

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Business Letter for

the Human Rights

and for Promotion of

Decent LaborPrinciples of

Equator

1995 1997 2003

BB Letter of Socio-environmental

Responsibility Principles

2004

AGENDA

21

2005 2006 2007 2008 2009 2010 2011 2012

Business Pact

for Integrity and

Against

Corruption

2013

Sustainable Animal

Husbandry

Working Group

2014

OECD Guidelines

for Multinational

Companies

20151991 2017

Green Protocol

Pacts and Voluntary Commitments

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CORPORATE SUSTAINABILITY INDEX (ISE) – BM&F BOVESPA - 2017

12 CONSECUTIVE LISTING YEARS SINCE THE FIRST PORTFOLIO IN 2005

DOW JONES SUSTAINABILITY INDEX (DJSI) NEW YORK STOCK EXCHANGE – 2016, LISTED FOR

5 CONSECUTIVE YEARS.

BB IS A GLOBAL BENCHMARKING IN THE THEMES "CUSTOMER RELATIONSHIP MANAGEMENT",

"FINANCIAL STABILITY / SYSTEMIC RISK", "ANTICRIME POLICY & MEASURES“ "CORPORATE CITIZENSHIP

AND PHILANTHROPY", "FINANCIAL INCLUSION“ AND "CONTROVERSIAL ISSUES, DILEMMAS IN LENDING &

FINANCING."

CARBON EFFICIENT INDEX (ICO2) – BM&FBOVESPA - 2016

Market Indexes and Awards

96

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Av. Paulista, 1230

18th. floor – Bela Vista

São Paulo/SP - Brasil - CEP 01310-100

www.bb.com.br/ir [email protected] +55 (11) 4298-8000