1Q04 Earnings1Q04 Earnings

HighlightsHighlights

Largest Bank in Brazil in Total Assets

Leadership in Assets Under Management

Leadership in loan Portfolio

Leadership in Total Funding

Customer Base

Customers in BB’s Internet

Largest ATM Network in Latin America

Largest network service in the country

2

efficiency reflected in numbersefficiency reflected in numbers

R$ million

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

Change %

1- Credit Portfolio, Leasing operations and others credits, according Res. 2682/992 - Demand, Time, Savings and Interbank3 - Net Income included

result building upresult 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

solid resultssolid results

Income Statementwith reallocations

1Q03 4Q03 1Q04 / 1Q03 / 4Q03

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 8.5Extraordinary items (110) (128) (215) 96.0 68.0

Net Income 479 637 616 28.5 (3.4)

Quarterly Flow Change %

R$ million

Analysis of volume and spread

ready to a new environmentready to a new environment

3,917

(416)

477

(149)

Spread - %

Volume - R$ million

1Q03 - 1.919356

1Q04 - 1.672528

1Q

04

- 2

28

,94

6

1Q

03

- 2

04

,07

6

Loss due to spread decrease

Gain due to volume increase

Loss due to decrease in spread combined with volume increase

* Average balance

R$ million 1Q03 4Q03 1Q04 /1Q03 /4Q03

Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7)

Asset (-) Permanent * 204,076 221,377 228,946 12.2 3.4Annualized Spread 7.9 7.4 6.9

Change %

deliquency under controldeliquency under control

1Q03 2Q03 3Q03 4Q03 1Q04

1Q03 2Q03 3Q03 4Q03 1Q04

Loss / Portfolio - % ¹

Expenses Prov. / Port. - % ²Overdue Loans / Total Credit Portfolio - %

Overdue more than 15 days / Total Credit Portfolio - %

Overdue more than 60 days / Total Credit Portfolio - %

1Q03 4Q03 1Q04 / 1Q03 / 4Q03

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)

Quarterly Flow Change %

R$ million

2.52.1 2.0 1.8 1.8

1.0 1.3 1.1 1.1 1.1

4.8 5.0 4.7 4.4 4.6

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

5.6 5.35.0 4.7

5.2

5.55.1

4.8 4.65.1

3.1 3.2 3.2 3.0 3.2

Expenses Prov. / Port. - % ³

margin growth guaranteed by business diversification

margin growth guaranteed by business diversification

R$ million 1Q03 4T03 1Q04 / 1Q03 / 4Q03

Gross Financial Margin 3,917 3,977 3,829 (2.2) (3.7) Provision for NPL (636) (827) (901) 41.6 9.0Net 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 %

R$ million 1Q03 4Q03 1Q04 / 1Q03 / 4Q03Service 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) Others 231 285 268 16.1 (5.8)

Quarterly Flow Change %

Asset Management - R$ billion

customers’ loyalty and asset management leadership

customers’ loyalty and asset management leadership

Customer Base - in millions

1Q03 2Q03 3Q03 4Q03 1Q04

1Q03 2Q03 3Q03 4Q03 1Q04

15.9 16.7 17.018.7 19.3

338 309 326 321 300

78.083.2

91.8102.9

116.0

Service Fees + GFM / Customer - R$ ¹

¹ Costumer base average of the last 4 quarters

18.6 18.7 18.8 19.0 20.2

Market Share - %

cost structure suitable with business generation

cost structure suitable with business generation

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

1Q03 4Q03 1Q04 / 1Q03 / 4Q03Quarterly Flow Change %

R$ million 1Q03 4Q03 1Q04 / 1Q03 / 4Q03

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)

Quarterly Flow Change %

Points of Service - in thousands

Human Resources - in thousands

cost structure suitable with business generation

cost structure suitable with business generation

12.5 12.8 12.9 13.2 13.4

4.3 4.4 4.7 5.0 5.0

1Q03 2Q03 3Q03 4Q03 1Q04

Credit operations / Points of Service - R$ million

10.6 10.8 10.8 10.2 10..5

1Q03 2Q03 3Q03 4Q03 1Q04

2.2 2.3 2.4 2.6 2.8

Employees Interns

Deposits + Assets under Manag/ Employee - R$ million

Points of Service

79.5 79.5 79.7 80.6 81.8

productivity equation completed by technology

productivity equation completed by technology

Automatization

Electronic Transactions / Total Transactions - %

Efficiency Ratio - % Coverage Ratio - %Service Income / Personnel Expenses

ATM Internet Financial Manager POS Cashier

Administrative Expenses / Operational Income

81.482.5 82.4

84.1 84.6 85.0 85.286.4 86.3

1Q03 2Q03 3Q03 4Q03 1Q041Q02 2Q02 3Q02 4Q02

50.6

12.2

16.2

4.7

13.72.6

53.7

10.5

14.3

4.1

15.42.0

1Q04 - %1Q03 - %

Others

80.790.7

84.077.5

98.6

1Q03 2Q03 3Q03 4Q03 1Q04

56.754.0

57.6

1Q03 2Q03 3Q03 4Q03 1Q04

56.5 54.2

BB - the bank that invests the most in Brazil

BB - the bank that invests the most in Brazil

Market Funding - R$ billionAsset Composition - %

Liquid assets Credit Operations

Tax Credit Other Assets

Interbank Deposits

Demand Deposits

Savings Deposits

Time Deposits

Open Market Funds

5.2 21

.0

26.8 45

.0

49.6

147.

7

7.3

27.1

27.4

48.2

40.1

150.

1

6.2

30.3

27.6 46

.1

40.3

150.

6

Total

1Q03 4Q03 1Q04

28.8

3.9

27.0 28.8 24.7 22.9 22.0

1Q03 2Q03 3Q03 4Q03 1Q04

1Q03 4Q03 1Q04 / 1Q03 / 4Q03Total 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 Tax Credit 10,927 9,406 9,116 (16.6) (3.1) 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 0.2Shareholders’ Equity 10,164 12,172 12,686 24.8 4.2

Change %R$ million

45.3

28.5

44.5

28.127.525.6

42.638.642.2

4.14.65.15.2

Securities Portfolio

liquidity preservedliquidity preserved

Securities Portfolio Maturity - %

Up to 1 year 1 to 5 years 5 to10 years Over 10 years

1.7 1.7 1.8 2.1 0.7

1Q03 2Q03 3Q03 4Q03 1Q04

1Q03 4Q03 1Q04 / 1Q03 / 4Q03

Securities Portfolio 75,631 69,590 67,875 (10.3) (2.5)

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 Derivatives 296 368 331 11.7 (10.0)

Change %R$ million

10.6

69.3

19.5

9.3

72.0

16.7

8.7

70.5

18.9

12.6

64.1

21.6

13.3

58.2

26.8

well balanced credit portfoliowell balanced credit portfolio

Credit Portfolio1Q04 - Balance R$ 79.6 billion

1Q03 - Balance R$ 65.7 billion

20.3%

22.2%

27.9%

12.3%

14.5%2.7%

22.3%

20.2%

10.3%

12.6%2.0%

32.5%

Retail Commercial Agribusiness Foreign Trade Abroad Others

20.6%

20.9%

35.0%

9.5%

12.2%1.9%

4Q03 - Balance R$ 77.6 billion

Credit Portfolio by Risk Level

Shares % - 1Q04

increase with resposibilityincrease with resposibility

AA-B C-D E-H

Retail Commercial Agribusiness Foreign Trade

11.0

2.5 1.6 0.64.7 6.7

BB NFS

31.1

8.5 14.5 16.5 15.3

57.9

89.0 83.9

78.8 77.9

18.6

80.9

Retail

Credit Portfolio

Agribusiness

Credit Portfolio by Risk Level -%Commercial and Foreign Trade Portfolio

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

AA A B C D E F G H

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

AA A B C D E F G H

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

AA A B C D E F G H

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

AA A B C D E F G H

1Q041Q03 1Q041Q03

1Q041Q031Q041Q03

increase with resposibilityincrease with resposibility

ability to increase businesses with customers

ability to increase businesses with customers

Capital Adequacy

BIS Ratio - %

Level I Level II

14.3

4.1 4.1 4.2 4.0 4.4

1Q03 2Q03 3Q03 4Q03 1Q04

13.4 13.8 13.7 14.3

1Q03 4Q03 1Q04 / 1Q03 / 4Q03Risk weighted Assets 104.043 120.973 119.691 15,0 (1,1)

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) 5,6Referential 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) Level II 4.406 5.015 5.405 22,7 7,8Surplus / shareholders’ equity deficit 2.604 3.391 4.094 57,2 20,7Surplus / leverage deficit 23.673 30.825 37.220 57,2 20,7

Coefficient K % 13,40 13,71 14,30

Change %R$ million

9.3 9.7 10.1 9.7 9.9

Required Shareholders’ Equity

insurance and private pensioninsurance and private pension

Insurance RevenueR$ million

Insurance / Net Aggregated ValueInsurance / Net Aggregated Value

Insurance GFM Others

Total

Auto

Life, Health and Others

Capitalization Plans

Private Pension

Manag. Insur. Funds

74.2%

3.4%22.4%

80.4%

3%16.6%

1Q041Q03

145

18

64

42

13

9

170

19

71

51

14

14

175

15

69

41

36

16

1Q03 4Q03 1Q04

market recognitionmarket recognition

Price Price / Earnings Price / BV - x

13.914.9

16.0 16.6 17.3

3.5 4.15.0

7.4 6.8

0.7 0.91.0

1.4 1.3

1Q03 2Q03 3Q03 4Q03 1Q04

Obs: Share Market Price adjusted by income

new IR websitenew IR website

Investor Relations DivisionSBS - 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.brri@bb.com.br

DisclaimerDisclaimer - 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.

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