Banco ABC - 3rd Quarter 2008 Results Presentation

3Q08 Earnings

1

Speak

Anis Chacur Neto

Sergio Lulia Jacob  ‐ Exe

Alexandre Yoshiaki Sin

s PresentationOctober 30, 2008

kers:

o – Deputy CEO

ecutive VP & IR Officer

nzato – IR Manager

3Q08 Hi

Net Income of R$48.4 million in 3Q08, grow107.7% year over year. In 2008, Interest on Eqpayment to shareholders in 3Q08 of gross IOE o

The Efficiency Ratio was 35.8% in 3Q08, fromefficiency ratios presented by the bank market.

The Credit Portfolio, including guarantees, rea2Q08 and 61 8% year over year

2

2Q08 and 61.8% year over year.

The Loan Portfolio (Resolution 2,682) grew by 9

Portfolio quality remained high, with 99.4% ofResolution 2,682), compared with 99.3% in 2Q0

The Return on Equity (ROAE) reached 16.9% in

ighlights

ing by 11.5% from R$43.4 million in 2Q08 and byuity began to be paid on a quarterly basis, with theof R$17.6 million.

35.1% in 2Q08 and 37.4% in 3Q07, one of the best

ched R$6,879.1 million, growing 5.9% in relation to

9.8% (3Q08 versus 2Q08).

f loan operations rated from AA to C (Central Bank08 and 99.3% in 3Q07.

3Q08 versus 10.1% in 3Q07 and 15.5% in 2Q08.

Ownership

Marsau Uruguay(ABC) 56.4%

3

p Structure

Free Float32.7%

Management 9.5%

Associates1.4%

Credit 

CREDIT PORFOLIO ‐ including guarantees issued

4,250.6

6,498.76,879.1

CAGR = 61.8%

82.6%

14.2%3.2%

85.1%

11.9%3.0%

86 7%

11.7% 1.6%

4

3Q07 2Q08 3Q08

*excluding guarantees issued

CONSUMER MIDDLE MARKET

86.7%

Loans per Ticket (R$ mi) 3Q

0 ‐ 500 k        

500 k ‐ 2 MM        

2 MM ‐ 5 MM        

5 MM ‐ 10 MM        

> 10 MM        

Total         

Portfolio

LOANS

3,363.1

4,854.55,329.3

CAGR = 58.5%

78.2%

17.7%4.1%

80.4%

15.5%4.1%

83.7%

14.2%2.1%

3Q07 2Q08 3Q08

WHOLESALE + L. MIDDLE

Q08 2Q08 Chg.(%) 3Q07 Chg.(%)

   265.7  241.2             10.2               90.2               NA

   594.2  242.7             144.8             187.5             216.8            

   236.6  540.2             (56.2)              400.1             (40.9)             

   786.9  730.5             7.7                 704.2             11.7              

3,445.9  3,100.0          11.2               1,981.1          68.2              

5,329.3           4,854.5                   9.8           3,363.1                58.5 

High‐quality C

*excluding guarantees issued

Credit Portfolio (*) (R$ mi)

Write Off (R$ mi)

% Port

Wholesale+L.Middle            4,165.8  1.1                             

Middle               942.7  1.4                               

Payroll               220.8  0.3                               

Total 5,329.3  2.8              

Segments

5

*excluding guarantees issued

Rating (R$ mi) * 3Q08 % Port

AA 916.3                       

A 2,393.7                    

B 1,729.4                    

C 255.3                       

D 8.7                            

E 3.4                            

F 10.8                         

G 2.1                            

H 9.6                            

Total          5,329.3              

Credit Portfolio

tfolio PLL (R$ mi) % PortfolioPast Due     

(> 91dias) (R$ mi)

% Portfolio

0.0 30.7                 0.7                   4.3                   0.1                  

0.1      21.1                 2.2                   13.1                 1.4                  

0.1      4.3                   1.9                   0.9                   0.4                  

      0.1  56.1                     1.1  18.3  0.3                  

3Q08

D-H 0.6%

AA-C 99.4%

tfolio

17.2 

44.9 

32.5 

4.8    

0.2    

0.1    

0.2    

0.0    

0.2    

100.0 

Credit 

WHOLESALE AN

CAGR = 54.1%

5,678.45,527.1

3,684.2

2,816.13,902.0 4,165.8

868.1

1,625.1 1,512.6R

6

*excluding BNDES operations

3Q07 2Q08 3Q08

Loans Guarantees issued

Wholesale + L. Middle 3Q07

Ticket 8.3

Duration * 396

Clients 446

Portfolio

ND LARGE MIDDLE

São Paulo ‐Capital38.7%

South12.9%

Rio de Janeiro12.6%

Minas Gerais +Northeast 2.6%

São Paulo ‐Countryside

33.3%

2Q08 3Q08

11.0 10.1

314 317

504 529

Credit 

MIDDL

CAGR = 96.6%

498.5

773.8

979.9

479.1754.7

942.719.4

19.1

37.2

C

7

* excluding BNDES operations

3Q07 2Q08 3Q08

Loans Guarantees issued

Middle Market 3Q07

Ticket 1.7

Duration * 166

Clients 297

Portfolio

E MARKET

São Paulo ‐Countryside

11.0%

São Paulo ‐C i l

Rio de Janeiro3.8%

South4.3%

Minas Gerais 9.2%

Capital71.7%

2Q08 3Q08

2.0 2.4

197 193

389 409

Credit 

PAYROLL‐

CAGR = 225.2%

67 9

197.8 

220.8 

8

67.9 

3Q07 2Q08 3Q08

Loans

Payroll‐Deductible 3Q07

Average Term 580

Agreements 24

Portfolio

‐DEDUCTIBLE

INSS20.6%

Others79.4%

2Q08 3Q08

751 752

4 37 39

Other A

TREASURY AND

Capital Market (R$ mi) 3Q08

Underwriting Fees and Structured Oper.

Number of trades

9

Treasury (R$ mi) 3Q08

Income

Average consolidated VaR

Activities

D CAPITAL MARKET

8 2Q08 Chg.(%) 3Q07 Chg.(%)

2.3 1.3 76.9 3.5 (34.3)

5 5 NA 5 NA

8 2Q08 Chg.(%) 3Q07 Chg.(%)

4.5 9.8 (54.5) (0.8) (656.9)

4.3 3.4 26.5 2.6 65.4

Fun

25.0% 22.1% 25

24.4% 20.2% 19

13.4% 11.3% 101.8% 2.4%

35.4% 44.0%

433,164.6

3,841.34,

International

Local

10

Sep 2007 Dec 2007 Ma

Open Market Deposits and Funding (R$ mi) 3Q08 2Q08 Chg.(%

Until 3 months 1,088.4  788.3  38

3 to 12 months 1,160.9  1,343.3  (13

1 to 3 years 665.5  614.0  8

Above 3 years 20.8  36.5  (43

Total  2,935.6  2,782.1 

Borrowing and on Lending Obligations 3Q08 2Q08 Chg.(%

Until 3 months 952.1  487.2  95

3 to 12 months 1,113.6  1,111.0  0

1 to 3 years 384.3  360.8  6

Above 3 years 73.6  78.3  (6

Total  2,523.7  2,037.3  2

nding

5.0% 28.3% 23.3%

9.0%22.4% 19.5%

0.5%10.3% 9.2%2.5%

2.7% 7.4%

3.0%

36.3% 40.6%

354.3

4,819.4

5,459.3

Corporate

Institutional

BNDES

Retail

ar 2008 Jun 2008 Sep 2008

) 3Q07 Chg.(%)

8.1 664.3 63.9

3.6) 570.1 103.6

8.4 485.8 37.0

3.0) 26.4 (21.0)

5.5  1,746.4  68.1 

) 3Q07 Chg.(%)

5.4 341.9 178.5

0.2 621.6 79.1

6.5 370.9 3.6

6.0) 83.8 (12.2)

23.9  1,418.2  77.9 

ProfiNET INCOM

Net In

terest 

Income

Other Operating Expenses

Impact of IO

Services

Loan Operations

Treasury

88.8

(27.8)

105.4

4.5

12.1

11

05Income Statement (R$ mi)

Net Interest Income after PLL

Adjustment of exchange Gains/Losses effect on Offshore Inve

Taxes adjustment of exchange effect on Offshore InvestmentNet Interest Income

Banking services feesPersonnel Expenses/Other Administrative/Tax

Other operating income/expenses

Adjustment of exchange Gains/Losses effect on Offshore Inve

Non Operating IncomeEarnings before tax Income

Taxes

Taxes adjustment of exchange effect on Offshore Investment

Profit SharingNet Income

itabilityE – R$ MILLION

Income Tax and Social 

Contribution

Profit Sharing

OE

NET INCOME

(13.9)

(22.2)

7.0

(15.2)48.4

3Q08

70.1          

estments (a) 16.6          

ts (b) 6.6             

93.3          

12.1          

(30.7)         

18.3          

estments (a) (16.6)         

1.2             

77.6          

(8.6)           

ts (b) (6.6)           

(13.9)         

          48.4 

Profi

NET INCOME – R$ MILLION

CAGR =107.7%

CAGR =92.3%

129.8

12

3Q07 2Q08 3Q08 9M07 9M08

23.343.4

67.5

48.4

itability

ROAE – p.a.

3Q07 2Q08 3Q08 9M07 9M08

10.1%

15.5%15.4%

14.7%

16.9%

Ra

NIM

5.5%

6.6% 6.5%6.2%

6.4%

13

EFFICIENCY RATIO (%) – inc

3Q07 2Q08 3Q08 9M07 9M08

3Q07 2Q08

37.4%35.1%

atios

STOCKHOLDERS’ EQUITY (R$ mi) AND BASEL INDEX (%)

19,2%1,082.9

1,131.8

1,158.826.7%

16,1%19.2%

16.7%

cluding profit sharing

2Q083Q07 3Q08

3Q08

35.8%

Ra

LOC

Agency

Aaa*

14

*Deposits in local currency

AA

Aaa

atings

CAL GLOBAL

09/15/2008

RatingsUpdate

a Br Baa2 09/15/2008

05/16/2008A‐ BB+

a.Br  Baa2 

Cont

Investor Sergio Lulia Jacob – Ex

Alexandre Sinza

Eduardo Randi

Web Site: www.a

15

Email: ri@abc

Tel.: +55 (11

tacts

Relationsxecutive VP & IR Officer

ato – IR Manager

ich – IR Analyst

bcbrasil.com.br/ir

cbrasil.com.br

1) 3170 2186

Discla

The following material, on this date, is a presentatiABC Brasil S.A. We offer no guarantee and make no dcompleteness or scope of this information.

This presentation may include forward‐looking stateregulations of the Brazilian and International securitibased on certain assumptions and analyses by theenvironment, future market conditions and expectedthe control of the Company. Important factors that mresults and the statements of expectations about futstrategy Brazilian and International economic condit

16

strategy, Brazilian and International economic conditconditions, uncertainty regarding the results of its fuintentions, among others. Considering these facsignificantly different from those shown or implicit inor results.

The information and opinions contained in thisrecommendation to potential investors and no investevents or completeness of this information or thesrelated to them or their representatives should havethe use or contents of this presentation.

aimer

on containing general information about the Bancodeclaration, implicitly or explicitly, as to the accuracy,

ements of future events or results according to thees and exchange commissions. These statements areCompany that reflect its experience, the economicd events by the company, many of which are beyondmay lead to significant differences between the actualure events or results include the company’s businesstions technology financial strategy financial markettions, technology, financial strategy, financial marketuture operations, plans, objectives, expectations andctors, the actual results of the company may ben the statement of expectations about future events

s presentation should not be understood as atment decision is to be based on the veracity, currentse opinions. No advisors to the company or partiesany responsibility for any losses that may result from