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Management Report – 1st

Half 2011

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Dear Shareholders,

We present the Management Report of Banco do Brasil (BB) for the 1st half of 2011 (1H11), in accordance with the requirements of the Brazilian Corporate Law, the National Monetary Council (CMN), the Central Bank of Brazil – BCB, the Brazilian Securities and Exchange Commission – CVM and Banco do Brasil's Bylaws.

ECONOMIC ENVIRONMENT

In the international environment, the first half of 2011 was marked by continuity of doubts concerning the pace of growth of developed economies, the severe effects of the earthquake in Japan and increasing inflation on a global scale.

In general, the international outlook remained characterized by a mismatch between the pace of growth of economic activity in developed and emerging countries. In the first group, the imbalance of public accounts and the still unstable trajectory of recovery justified the maintenance of expansionary fiscal and monetary policies in the United States, which are reinforced in Japan, given the recession recorded in that economy early this year. However, in Europe, despite the difficulties in financing the debts of some countries, the European Central Bank took the first step towards the beginning of a cycle of rising interest rates.

The increase of interest rates in the Euro area and in several other countries was a response to the inflationary impacts arising from increased domestic demand, mainly due to the rise in commodity prices in the international market, especially of food.

The supply shock from food products was precisely one of the main factors that reflected negatively on the level of domestic prices, leading to inflation measured by the IPCA for values accumulated in twelve months close to the upper limit of the inflation target (6.5%).

There is also the good performance of the job market, with unemployment rates at minimum levels, high net generation of formal jobs and real income gains. These fundamentals, together with the credit market, continued to be the main domestic demand leverage vectors.

In response, the Central Bank of Brazil commenced a cycle of adjustment of the basic interest rate, raising it by 150 basis points over the half, with the rate reaching a level of 12.25% per annum. At the same time, the government implemented a series of macroprudential


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measures considered complementary to the interest rate adjustment, the most traditional monetary policy instrument.

The main mechanism for transmission of these measures to the economy is via the credit channel. Indeed, the preliminary data from the first half of 2011 confirms the slowdown in the pace of growth of concessions of loans, especially those targeting individuals.

HIGHLIGHTS OF THE PERIOD

With a net income of R$ 6.3 billion and total assets of 904.1 billion, BB ended the first half as the leader in the Banking Industry, with an emphasis on its loan operations, with a market share of 19.6%.

In April, Banco do Brasil concluded the agreement for acquisition of Banco Patagonia’s (from Argentina) shareholding control, with the payment to the sellers and transfer to BB of 366,825,016 common shares, corresponding to 51% of the capital stock and voting capital of that bank. The next step refers to the performance of a Public Offering of Compulsory Acquisition (OPA), the request for which was filed with the Comisión Nacional de Valores da Argentina (CNV) on 4.7.2011.

The "BB 2.0 Retail Transformation Program" continues to gather the main strategic actions designed to consolidate and expand BB’s leadership in the Brazilian retail banking sector. Throughout the half, new actions implemented under the program remained focused on the profitability of the client base, through excellent service, knowledge of clients (CRM), expansion of relationship and business, efficiency in processes and increase in the supply of convenience through adequacy of the customer service channels.

Several actions were adopted to review the model of service delivered to corporate clients with gross annual turnover above R$ 25 million, in order to improve the quality of service delivered, allowing advances in efficiency indicators and reinforcing BB’s competitive positioning in this market. During the half, BB implemented the review of the clients’ segmentation model from the wholesale market superintendencies and branches, besides areas dedicated to the structuring of loans for large clients.

We present below a chronological list of some events relating to BB that were highlights in the half:

acquisition, on 1/24/2011, of all the shareholding control (16.67% ON) held by Sul América Capitalização S.A. in Brasilcap, for the price of R$ 137 million;


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signing of a Share’s Sales and Purchase Agreement with Visa International Service Association for the purchase of part of the shares held by that firm in Companhia Brasileira de Soluções e Serviços - CBSS, corresponding to 4.99% of the capital stock of CBSS, valued at R$ 85.5 million on 1/24/2011;

launch of Elo Flagship and start of trading of Ourocard Elo on 04/04/2011, which is managed by the company Elo Serviços, and conclusion of the partnership of Banco do Brasil with Elo Participações - responsible for the consolidation of business related to electronic payment methods (credit cards, debit, prepaid, cobranded) – with the signing of the corporate documents on 4/29/2011;

beginning of the structuring of the company Alpha Serviços de Rede de Autoatendimento S.A, a subsidiary of Elo Participações, which will handle the sharing of ATM networks of the partner banks;

upgrading, in April/2011, of BB’s ratings by the Fitch Ratings agency, as described below:

Long-term Foreign Currency: BBB, with stable outlook (previous 'BBB-');

Short-term Foreign Currency: F2 (previous 'F3');

Long-term Domestic Currency: BBB, with stable outlook (previous 'BBB-');

Short-term Domestic Currency: F2 (previous 'F3');

Support Rating Floor: BBB (previous “BBB -“)

Long-term National Rating: AAA (bra) (previous AA+(bra);

Conclusion of the acquisition process of Banco Patagonia S.A., in 04/12/2011

signing, on 4/25/2011, of a Share’s Sales and Purchase Agreement aiming at the acquisition of 100% of EuroBank’s owner’s capital, by the amount of US$ 6 million;

acquisition, by the amount of R$ 2.8 billion, of the Banco Postal network (an operation of the Brazilian Postal and Telegraph Company – Correios), allowing BB to use its network to offer banking products and services, by 01/02/2012.

opening of the Loja Conceito in Brasilia, on 5/17/2011, becoming an unprecedented initiative in retail banking market, with a space


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where clients can experience the key attributes that make up the BB’s brand positioning;

upgrading, in June/2011, of BB's ratings by the Moody's agency, as described below:

Long-Term Deposit in Foreign Currency: Baa2, with positive outlook (previous “Baa3”);

Short-Term Deposit in Foreign Currency: Prime-2 (previous “Prime-3”);

Long-Term Foreign Currency Senior Debt: (P)Baa1, with positive outlook (previous '(P)Baa2').

STRATEGIC PLAN FOR 2011–2015 PERIOD

Aiming to maintain its leadership in the Brazilian banking industry and to reinforce its role of essential partner for the development of Brazil, Banco do Brasil prioritized the streamlining of returns, efficiency, customer care improvement and the expansion of activity in the foreign market as major strategic topics for 2011-2015 period.

The streamlining of returns will be achieved through the increase of profitable business, observing an adequate risk/return ratio. Banco do Brasil will pursue operational and business efficiency through the upgrading of business processes and models, besides the improvement of customer service that will occur through the upgrading of clients relationship.

International performance will be based on three vectors: overseas Brazilian communities, the transnationalization of Brazilian corporations, and expansion of the Brazil's business relations with the world.

Banco do Brasil’s performance as a partner in the sustainable development of the country will take place with an emphasis on activities that generate employment and income, especially: Minha Casa Minha Vida Program, Programa Nacional do Microcrédito Produtivo Orientado, support to small and micro entreprises, Programa Nacional da Agricultura Familiar – Pronaf (family farming), Fundo de Financiamento ao Estudante do Ensino Superior – FIES and encouragement to associative practices.

The mission was adjusted to align the BB’s businesses to the sustainability and the development of the country, and now reads as follows: "to be a competitive and profitable bank, to promote the sustainable development of Brazil and to perform its public role efficiently".


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BB's future vision, updated for the 2011-2015 period, maintains the commitment to performance, to employees, and to socio-environmental responsibility, emphasizing the desire to be closer to the client and to be a reference abroad. Therefore, BB's new future vision is: "to be the first bank of Brazilians, of companies and of the public sector, a reference abroad, the best bank to work for, recognized for its performance, long lasting relationships and socioenvironmental responsibility".

To achieve the strategic planning objectives, Banco do Brasil operates in several fronts of corporate management. Good practices of corporate governance, relationship with the market, internal processes, external ombudsman service, governance of technology and information, people, logistics and eco-efficiency are essential for the success of the planning.

SUSTAINABILITY

Socio-environmental responsibility is part of the Company's bicentennial tradition and is expressed in its corporate policies and strategies. Credit, granted in a responsible manner to a wide variety of productive sectors of the economy - family agriculture, other rural producers, foreign trade, micro and small enterprises - leverages the progress of the Brazilian municipalities where BB operates.

Concerned about responsible credit, Banco do Brasil does not provide credit to clients included in the list of employers that submit their workers to degrading forms of labor or keep them in conditions analogous to slave labor. This decision also applies to anyone involved in child labor and the sexual exploitation of minors.

It is a continuous challenge of Banco do Brasil to get socio-environmental responsibility to be present in all of the company's processes.

In adopting the referential of sustainability as a strategic guideline, BB seeks to assess its organizational performance not only on a basis of economic indicators, but also of indicators of a social and environmental nature, such as the defense and promotion of human rights, generation of jobs and income, and environmental conservation.

In the segment of Private clients, seeking the balance between risk and return, BB developed a stock portfolio composed of shares from companies committed to the sustainability cause. The portfolio is situated between the defensive and moderate profiles. To select the


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shares that will compose the portfolio, BB choose the most well ranked in the Sustentabilidade Empresarial – ISE, Governança Corporativa – IGC and Tag Along – ITAG indexes of BM&FBovespa.

BB'S AGENDA 21

The Sustainability Plan - BB's Agenda 21, is a pioneer initiative in business circles, involving the entire organization in initiatives in favor of sustainable development. It consists of BB's contribution to the efforts established in the Global Agenda 21, conceived during the United Nations Conference on Environment and Development – Rio-92, and that aimed to direct a new standard of development for the 21th century, the foundation of which is the synergy of environmental, social and economic sustainability.

Agenda 21 BB, established since 2005, is periodically reviewed by the Board of Officers, considering stakeholders, public agreements signed, scenarios, national and international socio-environmental references. In 2010, the review featured the participation of executives from across the company, as well as from Fundação Banco do Brasil, Cassi, Previ, BB-DTVM and Fenabb, resulting in 77 actions for the period of 2011-2013, distributed in the Processes and Management, Businesses Focused on Sustainable Development and Private Social Investment Spheres.

The results of the Sustainability Plan are monitored by the Board of Officers and published in the Annual Report, using the highest standard of the Global Reporting Initiative - GRI. In 2010, the review featured the participation of executives from across the company, as well as from Fundação Banco do Brasil, Cassi, Previ, BB-DTVM and Fenabb, resulting in 77 actions for the period of 2011-2013, distributed in the Processes and Management, Businesses Focused on Sustainable Development and Private Social Investment Spheres.

In the "Businesses Focused on Sustainable Development" sphere, special emphasis is placed on the Sustainable Regional Development Strategy - DRS, which is aimed at boosting the development of the regions where BB is present, supporting activities that promote social inclusion and the generation of jobs and income in a sustainable, inclusive and participatory manner. With this strategy, BB materializes its considerable differential, becoming an organization that seeks to catalyze various economic, social and political agents in the adoption of economically viable, environmentally correct and socially fair practices, contributing to invigorate local economies, with respect for cultural diversity.

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Its performance is based on the value chain view to refine the entire productive process, from input supply, through production, processing and storage, until the product reaches the final consumer. Actions include capacity building of beneficiaries, encouragement of associativism and cooperativism, introduction of new technologies, dissemination of the entrepreneurial culture and promotion of access to credit.

In order to further strengthen its commitment to the environment and to society in favor of sustainable development, in 2011 Banco do Brasil launched four fascicles on performance in the chain of recycling and solid waste, focusing on the 4,976 municipalities with up to 50 thousand inhabitants. With this action, BB aims to provide guidance to local governments and contribute to the preparation of the Municipal or Inter-municipal plans for Integrated Management of Solid Waste, in compliance with Law 12305/10, which established the National Policy on Solid Waste, of shared responsibility among governments, entrepreneurs and citizens.

At the end of the half, the DRS Strategy recorded 4.0 thousand business plans under implementation, involving 1.4 million beneficiaries in 4.0 thousand Brazilian municipalities, with a loan portfolio balance of R$ 10.4 billion, of which about R$ 5.8 were invested through the National Program for Strengthening of Family Farming (Pronaf). For further information, see the website www.bb.com.br/sustentabilidade

ECONOMIC-FINANCIAL PERFORMANCE

Banco do Brasil recorded a net income of R$ 6.3 billion in the half, 23.4% higher than the one recorded in the same period of last year, with an annualized return on equity of 25.4%. Net income per share was R$ 2.19 for the period.

Total assets surpassed R$ 904.1 billion, growth of 19.6% in 12 months, with a return on assets of 1.5% in the 1H11. Shareholders' equity reached R$ 54.6 billion, an increase of 38.9% in 12 months, affected by the public offering of shares, in the 2nd half of 2010, and incorporation of results.

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R$ million

Highlights

Income¹ 1H11 1H10 ∆ 1H10 (%) Net income² 6,262 5,076 23.4 Income (without Etraordinary Items) 6,153 4,383 40.4 Gross Financial Intermediation Income 15,160 11,896 27.4 Revenue from Loans 29,739 24,317 22.3 Fee Income 8,495 7,729 9.9 Income from Insurance, Pension Plans and Saving Bonds Operations 1,180 909 29.8 Administrative Expenses³ 13,136 12,441 5.6 Net Income per Share (in R$) 2.19 2.00 9.5 Return on Assets 1.5% 1.4% 0,1 p.p Return on Equity 25.4% 28.7% (3.3 p.p) Efficiency Ratio 42.4 44.5 (2.1 p.p)

R$ billion

Equity Jun/11 Jun/10 ∆ 1H10 (%) Assets 904.1 755.7 19.6 Amplified Loan portfolio4 421.3 350.5 20.2 Deposits and market funding5 589.0 510.6 15.4 Assets under Management 407.7 344.9 18.2

¹ Items based on Consolidated Statements. ² Parent Company Earnings 3 Refers to the sum of Personnel Expenses and Other Administrative Expenses. 4 Includes Private Securities and Guarantees Provided 5 Time and demand deposits, Savings deposits, Interbank deposits and Money Market Borrowings

See further information about the economic-financial performance of BB in the Management Discussion and Analysis at BB's Portal (www.bb.com.br/ri).

STOCK PERFORMANCE BB ended 1H11 with a market value of R$ 80.1 billion. In the theoretical portfolio of Ibovespa for the next four months May/11–Aug/11, BB occupies 6th place, an all-time record at Ibovespa, with a market share of 3.105%.

Banco do Brasil's shares (BBAS3) ended the first half at R$ 28.00, a growth of 20.7% in 12 months, against appreciation of 2.4% of Ibovespa.

BBAS3 was traded in all BM&FBovespa's sessions, in the daily mid amount of R$ 154.7 million in the 1H11, as opposed to R$ 94.9 million in the same period of previous year, and continues to be listed in the theoretical portfolios of the major São Paulo Stock Exchange indexes: Ibovespa, Ibrx50, IGC, ISE and Itag.

The shares of Banco do Brasil were once again listed in the ISE index of BM&FBovespa as the result of management guided by the entrepreneurial Agenda 21. Banco do Brasil strives to maintain the organization's efforts with regard to good corporate governance


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practices and sustainability, based on the balance on economic, social and environmental dimensions.

In addition to the above mentioned indexes, BBAS3 also appeared on the Dow Jones Amplified Sustainability Index, created by the New York Stock Exchange and by SAM - Sustainable Asset Management, a Swiss organization focused on sustainable investments.

In June 2011, the American Depositary Receipt – ADR Level I Program of Banco do Brasil recorded 13.4 million ADRs in circulation.

The exercise of Series C Subscriptions Warrants, issued on 06/17/1996, was in the period of april to june of 2011. Each warrant grants the right to subscribe 3.131799 common shares. The exercise of warrants generated 4,687,773 shares, and after approval by the BB, will be converted into equal number of common shares. This movement resulted in increase in BB’s capital for R$ 44.6 million.

Banco do Brasil, aligned with its profit reinvestment and dividend distribution policy, distributes 40% of the net income earned (payout) in the form of dividends and interest on own capital with quarterly periodicity. The amount of R$ 2,504.9 million was allocated to shareholders in the semester: R$ 1,044.3 million as dividends and R$ 1,460.6 million as interest on own capital. The remaining 60% of the net income were used as legal and by-laws reserves.

BUSINESS PERFORMANCE

CUSTOMER RELATIONSHIP

Banco do Brasil ended the 1H11 with a base of 55.2 million customers and 35.6 million checking accounts (33.4 million individuals checking accounts and 2.2 million business checking accounts), a growth of 1.9% in 12 months.

BB 2.0 Retail Transformation Program

Over the half, Banco do Brasil continued with the “BB 2.0 Retail Transformation Program”, the objective of which is attain a new level of strategic positioning and for the sustainability of the institution's business.

In an unprecedented model, four meetings were scheduled with the leaders of BB across the country to share information about the program. About 5.5 thousand of managers from branches and


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superintendences were to the meetings showing high level of interaction and commitment with the program’s improvement goals.

The program establishes the implementation of a set of actions to streamline the return on the client base, with better use of existing business opportunities. The actions are grouped in the following blocks:

adjustments to the client relationship model, for strengthening of contacts and business;

customer relationship management - CRM, for identification and seizing of opportunities existing in the client base;

increase in the offer of convenience and seizing of opportunities for contact with clients, due to the adequacy and integration of the customer service channels;

review of the sales and customer service dynamics, with an increase in business efficiency and agility in the response to clients;

adjustments in the sales planning and budget process, aiming at better use of the opportunities of the client base.

Among the main actions carried out under the program over the course of the half, we highlight:

conclusion of the deployment of the new model of relationship with individual clients at all of BB’s branches.

conclusion of the deployment and training of the sales force in the new business platform, a tool that rationalizes the core sales processes and builds up knowledge about opportunities with the client, boosting the assertiveness of offers;

deployment of consumption propensity models for eight banking products prioritized in the retail business operation. The new propensity models boost the assertiveness of direct marketing actions, including setting guidelines for the offer by the sales force;

review of 15 processes with high demand for customer service, reducing the total time taken for the performance of these processes by up to 60%;

achievement of the milestone of 152 branches configured with the new customer service environment. The new model adopted in the architecture of BB branches reinforces attributes of modernity and convenience for customers, while valuing the spaces reserved for doing business;


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construction of the Strategic Convenience Plan for 2011/2015 that consolidates the proposal of investments in physical channels of BB for the next five years, considering BB’s strategic positioning through the following assumptions: (i) Marketing - earning power, profitability and financial return; (ii) Positioning - visibility, brand value and presence in locations with a heavy flow of people and tourists; (iii) Development Inducer - social and banking inclusion besides citizenship, seeking to serve municipalities and communities with lower rates of development, but with medium and long-term potential;

training and up-skilling of more than 73.6 thousand employees from the network of branches in business practices and customer service (further information on training can be found in the "People" section of this report);

review of the segmentation model for companies served in the retail market, with expansion of billing contemplated for up to R$ 25 million and specialization of customer service in three segments: Microenterprise, Small Company and Company;

expansion of specialized customer service for the public sector market, especially in the Municipal Executive Branch, with the preparation of a relationship model for the larger municipalities;

adoption of a differentiated relationship model for agribusinessmen that are clients, with personalized service, supply of specific products and services and expert advice.

The search for greater client focus has also been generating adaptations in the organizational framework. BB created the Directorship of Individual Clients in May. This is another area that should contribute to increment the results achieved with the retail operation, running the institutional side of various actions originating within the BB 2.0 program and acting strategically to ensure the client vision in commercial and relationship actions.

With the adjustments made, BB’s corporate architecture geared toward retail performance achieved further specialization in: customer service and relationship with clients; sales force management; process management; and offer of convenience and channel management.

With these and other actions, the "BB 2.0 Retail Transformation Program" is already presenting some of its first results. There was


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growth of R$ 510 million in the monthly profitability of individuals retail clients in the semester. The client satisfaction index, released during the same period, and covering 2010, presented positive inflexion of 2.5% in relation to the observed in the last years.

University Niche

University students represent a very special segment, of high value. It is a segment with considerable relationship potential, as it is in the initial stage of the productive cycle, demanding solutions that create support for their personal and professional life projects. The business partnerships formed in this stage tend to be long lasting, contributing to the renewal of BB’s client base.

One of the main fronts of BB's relationship with university students is the Fund for Financing Higher Education Students - FIES, which recorded the contracting of 13,500 new operations in 1H11, totaling around R$ 560 million in the period. FIES finances up to 100% of graduation fees, with a payment deadline that is up to three times the period financed and start of payment 18 months after graduation, favoring long-term relationships.

Wholesale Clients

In the wholesale area, where BB serves clients with gross annual turnover above R$ 25 million, the review of segmentation model was concluded, which now features the Large Corporate, Corporate, Upper Middle and Middle segments.

There have been changes in the organizational model of the strategic, tactical and operational units dedicated to wholesale clients. As a result, the headquarters of the Commercial Directorship and its divisions linked to the structuring of operations, strategies with clients and distribution network were transferred from Brasilia to São Paulo, where the wholesale clients are concentrated. The superintendencies and branches were also reviewed in order to focus by client segment.

For the second half of 2011, efforts in the wholesale area will be concentrated on the training and management of talents, expansion of the centralization of middle office services, besides strategies for streamlining of returns and development of innovative products and services. These actions will afford a significant advance in the quality of customer service, reinforcing BB's leadership position with the largest companies.


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In the retail area, the delivery of service to businesses clients was changed for companies with gross annual turnover up to R$ 25 million, implementing a review of the segmentation model, which now features the Microenterprise, Small Company and Company segments.

BB has also been consolidating its market share with the credit cooperative segment, delivering solutions customized to satisfy the needs of this market. One of the most prominent solutions is the Compe/SPB (Brazilian System of Payment) Integration Service whereby its banking products could be delivered to 400.4 thousand cooperative members, associated with 337 credit cooperatives, in 1H11.

Management of Customer Service and Channels

BB makes available to its customers an access for conducting business by physical networks (branches, service centers, automated teller machines and correspondents) and virtual networks (call center, internet, mobile banking and Digital TV).

BB has the largest number of branches in Brazil in its physical network, with 5,094 thousand units, besides having 12,739 correspondents, 8,492 service points and the largest collection of automated teller machines (ATMs) in Latin America, with 43,920 of its own machines. BB has 87.9% of branches and Bank Service Points - PAB already adapted for physically handicapped people.

In the 1H11, BB opened 86 new branches, 6 of these dedicated specifically to delivery services to Estilo segment (High Income). In the period were opened 66 Electronic Service Stations as well. Furthermore, according to the strategy of expanding its presence in communities, in January 2011 BB opened branches in Morro do Alemão and Cidade de Deus, in Rio de Janeiro, contributing to banking inclusion and the sustainable development of these places.

Moreover, it is the only bank that has a network of specialized branches for the delivery of services to the public sector, present in all the Brazilian capitals and major towns and cities.

BB has two abroad networks: its own, formed by 47 service points in 23 countries, and a supplementary one, formed by 1,087 correspondent banks in 137 countries. BB's abroad network supports the internationalization process of Brazilian companies, the increase of the flow of the international trade and support to Brazilians community.

In automated teller machines, about 33.9% of all BB banking transactions are performed monthly. In order to provide more comfort


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and convenience, in the 1H11, 1,522 ATMs were modernized and over 960 were installed in new points. Up to June 30, 2011 the automated channels responded for 92.7% of all BB banking transactions.

Since the beginning of 2011, BB has centralized the tracking of the availability of all the automated teller machines in the ATM Environment Monitoring Centers, aiming to guarantee client satisfaction with this channel.

At the same time, it started the imaging monitoring of ATM rooms in large centers. In addition to cleaner rooms and available equipment, the project targets an inviting environment that favors business transactions.

By means of its virtual network, BB provides additional channels for access to banking services, such as the call center, the internet self-service (both for individuals and corporations), the mobile banking and Digital TV.

BB's internet self-service ended the 1H11 with the mark of over 800.5 million effective transactions, corresponding to 39.3% of the total of transactions and over 11.8 million customers using that channel. The Finance Manager, the self-service channel for business clients, reached 656.5 million operations, being used for more than 1,515 thousand companies.

BB mobile self-service accounted for 3.3 million of transactions carried out by over 1.3 million of customers with a mobile phone enabled to perform banking operations. Moreover, the Central de Atendimento BB (CABB) - a customer service center - carried out 54.6 million of transactions by 12.6 million of customers enabled to use this channel.

The half was also marked by innovations in the customer service provided to clients. Innovations that merit special emphasis include:

availability of access to the Finance Manager and Public Sector Self-Service via iPhone and iPod Touch. The launch of the new functionality keeps BB in line with the precursor standards of technology and security, making easier the routine of entrepreneurs and public administrators;

project Orla Rio - in 2010, Banco do Brasil and the company Orla Rio Associados signed an agreement that provides for the rental of 2 booths and 11 electronic service posts on the seafront from Copacabana to Leme, over a period of 11 years.

In an unprecedented initiative, the institution creatively occupies the space, organizing shows, holding cultural workshops and carrying out promotional actions.


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The objective of this project is to reinforce the BB’s presence in one of Brazil's most scenic locations, which receives millions of tourists on an yearly basis and has been chosen to host major international events in the coming years, such as the World Cup and the Olympics;

espaço Banco do Brasil - On May 17, BB opened the first concept store of the national financial sector in Shopping Iguatemi Brasilia. Conceived as a brand experimentation site, the store allows clients not only access ATMs and receive explanations about financial products, but can also indulge in the comfort of the environment, explore the modern and avant-garde design of the decoration, amuse themselves with games, taste a cup of legitimate Brazilian coffee and get to know the future trends and innovations of the financial market;

continuity of the Pilot Test of Sharing of the External Networks of ATMs, with the participation of Banco do Brasil S.A, Banco Bradesco S.A and Banco Santander (Brazil) S.A, aiming to evaluate the appeal to the customers of institutions, as well as technological impacts and operational implications relating to the topic. By 5/31/2011 a total of 1.7 million operations (concluded transactions and incidents) had been performed, with 452 thousand by BB clients (26.4%);

formalization, to operate throughout Brazil, of the partnership formed between BB and the loyalty program operating company Dotz, offering BB's clients more alternatives and higher speed in the accumulation of points, besides greater mix of awards to be redeemed.

Customer service through social networks, through Twitter with the profile @maisbb, and with the Mais Banco do Brasil page on Facebook proved to be effective and has been attracting more and more customers. BB has responded to questions from users with the timing that the channel requires, demonstrating its concern to satisfy the client in all contacts. In the first six months of 2011, perfil @maisbb recorded a growth of 46% in its number of followers, while on Facebook the increase in the number of fans was 82%.

The partnerships formed with the correspondents during the year made it possible to achieve an increase of 21.5% in the number of service points in the country. These new partners were responsible for an increase of 11.0% in the balance of reception of payroll loan proposals, in comparison with the previous year and for 12.0% of the accounts opened at BB.


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Within the strategy of customer service through correspondents, the major action of the half was the acquisition, by Banco do Brasil, of the right to be a partner of Empresa Brasileira de Correios e Telégrafos for the rendering of correspondent services through the Postal Bank.

The victory in the bidding process will allow BB to bring forward the strategy of extending its service points throughout the country and of being in 100% of Brazilian municipalities by 2015. Under the agreement, this target will be achieved in 2012 and, therefore, the revenues originating from this performance.

Today, BB is in 4,387 municipalities, with 53,445 service points. Correios (Brazilian Post Office Company) has 6,195 branches with the Postal Bank and is present in 95% of Brazilian municipalities.

The partnership with the Postal Bank provides the chance to offer other products, such as credit cards and prepaid cards, in addition to microcredit lines.

The commitment to consumer rights and to good customer service is manifested by transparency and objectiveness in relations with clients. BB informs the rates and tariffs practiced in a clear and direct manner. The employees receive specific training to improve customer service, such as "Brazilian Sign Language - Libras" and "Consumer Defense Code".

As an evidence of BB’s priorization of client service, in the 1H11 were hired more than 5,852 new employees, 5,757 of them allocated to work directly in the frontline of our branches, with clients.

FUNDING

Banco do Brasil, leader in the market of deposits, recorded R$ 589.0 billion in funding in 1H11, growth of 15.4% over the same period of previous year, which reflects the clients' confidence in BB. Time deposits deserve special emphasis with growth of 21.5% in 12 months.

Besides time deposits, demand deposits and saving deposits BB also exhibited growth in the last 12 months, with 9.4% and 3.6%, respectively.

In foreign funding, the highlight was BB’s Euros issue, wich attracted EUR 750 million, one of the largest ever made by a Brazilian company. Additionally, BB also performed a subordinated debt issue in the amount of US$ 1.5 billion. The financial costs were competitive in both, factors that demonstrate the market's interest in securities issued by


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BB. At the end of 1H11, the balance of overseas funding recorded US$ 31.7 billion, variation of US$ 8.1 billion or 34.3% in relation to 1H10.

Seeking to diversify its modus operandi in the market, BB offers its clients the chance to invest in Financial Bills – LF and Agricultural Credit Bills – LCA, the balances of which at the end of 1H11 were R$ 6.8 billion and R$ 4.1 billion, respectively.

ASSET MANAGEMENT

In 1H11, BB DTVM, Brazil's largest asset management, reached R$ 407.7 billion in assets under management, comprising its investment funds and managed portfolios. This volume represented an increase of 18.2% in 12 months, according to the Associação Brasileira das Entidades dos Mercados Financeiros e de Capitais – Anbima.

Please note that these figures still do not include funds managed by Banco Votorantim, that attained R$ 27.3 billion in June 2011. If 50.0% of the balance managed by BV were to be consolidated, a percentage equal to BB's interest in the latter's total equity capital, Banco do Brasil's market share would rise to 23.1%.

Aiming to increment BB’s positioning in the view of our private clients and to qualify our portfolio of products, we developed new funds that include BB Estratégia 6.

In this segment, together with BB-DTVM, we launched Fundo de Investimento Multimercado Global Acqua, a global multi-market investment fund that plans to invest part of its assets in Brazilian and global companies related to the water sector. The fund enables investors to hold a stake in the capital stock of companies from the sector of water exploration, infrastructure and distribution, with the perception that these companies are in a productive chain that requires care and on the other hand is likely to face increasing demand and a possible price hike.

Also along the lines of adding sophistication to the supply of investments for high value clients, BB adopted the new portfolio of Estilo (high income) investment funds in March, becoming more competitive, increasing revenue with bank fees and strengthening the positioning of the Estilo brand in the market.

BB DTVM, a wholly-owned subsidiary of Banco do Brasil, is a signatory of Principles for Responsible Investment - PRI, of the United Nations - UN, not acquiring interest in companies that disrespect principles relating to environmental preservation and to human and employment rights.


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LOAN PORTFOLIO

BB's loan portfolio in the amplified concept (including private securities and guarantees provided) ended the first half with a balance of R$ 421.3 billion, growth of 20.2% in relation to the same period of 2010 and with a market share of 19.6%.

During the half, transactions with individuals (amplified concept) remained prominent in the BB’s total portfolio, representing 29.1%, even after the adoption of macro-prudential measures by BACEN, which reduced the expansion of loans to individuals in the first quarter of 2011.

The payroll loan is still the most representative category in the individuals loan portfolio, with 39.1% of the total. With the client base qualification strategy and a focus on lines of lower risk, BB's payroll loan portfolio exhibited growth of 18.4% in the last 12 months, which reinforces the BB’s leadership in this segment, whose market share reached 32.6%. The loans granted to civil servants are still the most representative of BB's payroll loan portfolio, accounting for 84.4% of the total loans. The remaining loans were granted to INSS’s (National Institute of Retirement Insurance) retirees and pensioners (9.6%) and employees from the private sector (6.0%).

The balance of vehicle loan operations attained R$ 30.5 billion, an increase of 34.1% in twelve months. Of this total, R$ 15.4 billion are transactions arising from BV.

BB's mortgage loan portfolio kept the growth trend recorded in the previous semesters, ending 1H11 with a balance of R$ 4.2 billion, a growth of 99.5% in relation to 1H10. In the last 12 months, 16,097 contracts were approved for individual clients and 106 contracts were entered into with businesses.

The business loan portfolio in amplified concept ended the half with a balance of R$ 191.2 billion. The business portfolio in amplified concept accounted for 45.4% of the total loan portfolio of BB in 1H11, against 44.9% in the same period of 2010. Together, the working capital and investment lines represent 73.1% of the total business portfolio.

In the delivery of services to micro and small enterprises, Banco do Brasil continued to act as principal partner of the segment. At the end of June/2011, BB had 2 million micro and small business clients. The balance of transactions in favor of SMEs was of R$ 59.9 billion, a 14.7% increase as compared to June/2010. It is worth emphasizing the allocation of R$ 42.6 billion for working capital, which represented growth of 11.6% in relation to june of 2010. It is worth highlighting the


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BB Giro Empresa Flex credit facility, that reached a balance of R$ 12.3 billion, representing 28.8% of the working capital portfolio.

The balance of operations with working capital lines for micro and small businesses reached R$ 16.1 billion at the end of 1H11.

BB financed R$ 2.2 billion in 35 thousand operations with resources from the Constitutional Fund for Financing of the Midwest - FCO and provided services to 463 municipalities from the region. This sum represents an increase of 27.6% in relation to 1H10. We emphasize the fact that 86.6% of this total benefited micro/mini and small borrowers.

The construction of 48 ships and 3 shipyards was financed in the half through the Merchant Marine Fund – FMM, amounting to R$ 3,082 million. Accordingly the balance of financed projects corresponds to R$ 4,320 million, up 410% over 1H10.

By April /2011, Banco do Brasil had recorded a market share of 18.3% and a total disbursement of R$ 4.3 billion in the Global Ranking of BNDES fund transfers. Disbursements made with BNDES card up to April/2011 reached R$ 1.1 billion representing 59.4% of market share. In the Finame category, Banco do Brasil recorded an outlay of R$ 1.9 billion, corresponding to 43.4% of the total of BNDES’ resources released by Banco do Brasil up to April/2011. The result of the BNDES/Finame system of 2Q11 had not yet been released.

The business mortgage loan portfolio ended the half with a balance of R$ 1 billion, an increase of 283% as compared to 1H10. The performance was based largely on the strategy of partnerships with the top developers in the country. Banco do Brasil has developed an innovative business model that fulfills the needs of each company profile.

AGRIBUSINESS

Banco do Brasil continued to act as principal partner of the Brazilian agribusiness. The agribusiness portfolio in amplified concept ended the half with a balance of R$ 81.5 billion in agricultural loan and agroindustrial transactions. This sum represents an increase of 14.7% in relation to 1H10. In the total of agribusiness loan portfolio, R$ 22.3 billion refer to operations contracted with family farmers, R$ 53.3 billion with medium and large producers, R$ 4.9 billion with agricultural cooperatives.

In the contracting of rural credit loans, special emphasis is placed on the use of risk mitigation mechanisms - bad weather and prices. In June 2011, 42.7% of the agricultural costing operations were covered with


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production insurance (agricultural insurance or proagro) and 4.3% covered by price insurance (options contracts).

FOREIGN TRADE

In the foreign trade, BB maintained its leadership of the export and import exchange market, with volumes of US$ 35.7 billion and US$ 22.3 billion, respectively, and market shares of 30.3% and 23.0%, respectively. Of the total volume of foreign exchange, 11.2% refers to the companies from the Large Corporate, Corporate and Business segments. BB's activities in the financial exchange market also presented a significant increase, reaching US$ 43.7 billion in purchase and sale transactions, which means growth of 7.9% over 1H10.

In export financing, ACC/ACE operations stand out with disbursements of US$ 8.6 billion, which maintains BB's position as market leader with market share of 33.1%. Of this total, 61.3% refers to the companies from the Large Corporate, Corporate and Business segments. An all-time monthly record was recorded in April in ACC (Advances on Exchange Contracts)/ACE (Advances on Export Contracts), which reached a volume of US$ 1.9 billion. Export Financing Program (Proex) also deserves emphasis in the semester. Disbursements in the Financing category came to US$ 293.5 million together with the BNDES EXIM onlending operations, which totaled US$ 308.1 million. As regards imports, the financed volume increased 41.0% in comparison with 1H10, totaling US$ 3.0 billion.

Exchange and foreign trade online services continue to post records: 67.2% of such export exchange contracts and 45.9% of import contracts were agreed on through the Internet. BB also offers international business training services. In the period, 3.3 thousand people were trained across the whole country.

Also with respect to credit, in every financing in the project finance category, in addition to the application of the Equator Principles, BB adopts socio-environmental criteria in the evaluation of the study on the limit of credit to companies with current or projected net operating revenue above R$ 50 million and to investment projects with an amount financed by BB that is equal to or higher than R$ 2.5 million.

The table below shows the projects analyzed in light of the Equator Principles in the half:


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Equator Principles¹ R$ million

Industry Level of risk Amount Financed Number of Projects

Public Low 200 1

Energy Medium 215 2

¹ The Equator Principles are a set of socio-environmental responsibility criteria applicable to investment projects that use the standards of performance in social and environmental sustainability of the International Finance Corporation

(IFC) and of the World Bank as a reference.

Quality of the Loan Portfolio

In Banco do Brasil, the rate of 90-day-past due items reached 2.0% at the end of June 2011, as compared to 2.7% recorded in 1H10, below the market average for the period. The transactions rated at risk levels AA to C accounted for 93.6% of portfolio, against the 92.2% verified in the Brazilian Banking Industry (SFN).

Banco do Brasil intensified its supply of credit in operations with risk mitigation measures, such as payroll loans, mortgage and by strategies to mitigate price and weather conditions in agribusiness loans, thus improving the quality of the loan portfolio.

Another mechanism of major importance for enabling the contracting of investment financing operations was Fundo de Aval às Micro e Pequenas Empresas – Fampe (Guarantee Fund for Microenterprises and Small Companies). Composed by funds from Serviço Nacional de Apoio às Micro e Pequenas Empresas (Brazilian Service of Support to Micro and Small Enterprises) – Sebrae, Fampe supplements by up to 80% the value of guarantees necessary for the performance of operations with micro and small enterprises with annual gross turnover of up to R$ 2.4 million. At the end of June/11, the portfolio guaranteed by Fampe was R$ 3.9 billion, with the guaranteed amount of R$ 2.9 billion.

In January 2011, Banco do Brasil adopted new measures for the qualified expansion of business with lower risk clients. One of these consists of identifying elements in the corporate client base with the lowest potential risk, also using data from external sources. The parameters for calculation of the credit limit for these clients was adjusted to allow access to a volume of operations better suited to the risk that it presents.

Accordingly, expenses with Allowance for Loan Losses (PCLD) decreased in comparison with the same period of prior year, even with growth of 17.4% of the portfolio, which would naturally increase the balance of the allowance. Revenues with credit recovery, arising from


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efficient management of the collection process, ended 1H11 with a balance of R$ 1.8 billion.

In addition, BB continued with the model of identifying behavioral profiles of clients that could default and began to offer rescheduling of the outstanding balance preventively, before the client delays the payment of the installments.

CARDS

BB obtained a turnover of R$ 63.6 billion with cards in 1H11, growth of 28.5% in relation to 1H10. This performance enabled an advance in its market share to 21.1%, in accordance with estimated data for the period by Associação Brasileira de Empresas de Cartão de Crédito – Abecs (Brazilian Association for Credit Card Companies), maintaining BB in the leadership for the turnover in the Brazilian market of debit cards and in Visa flagship cards.

We emphasize the billing performance in business generated in a set of values through the BNDES Card and the Cartão Ourocard Agronegócios, with disbursements in 1H11 of R$ 2.2 billion and of R$ 3.3 billion, respectively.

The total card base, including credit and debit cards, reached 84.6 million plastic cards in June, recording a slight decline of 1.8% over June 2010. This decrease is resulted from the work held by Banco do Brasil to expunge of its customers base those cards which were issued but were not activated.

Consolidating the cutting-edge position in the card market, in 1H11 BB launched Ourocard Bonus Celular, Ourocard Elo, the Ourocard customizable with images to be chosen by the bearer and Ourocard Visa Rio, with promotional images from

the movie Rio. With the launch of innovative products and solutions, BB is getting increasingly closer to its clients, and was appointed the favorite card of Brazilians according to the Cardmonitor/Instituto Medida Certa survey and the best credit card by the CVA Solutions Survey.

INSURANCE, PENSION PLANS, AND SAVING BONDS

Businesses with insurance, private pension fund and saving bonds added R$ 772.6 million to BB’S income in 1H11, including ownership equity and service revenues, which represents an increase of 29.5% over 1H10. This result may be expressed by the insurance ratio, which


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represents the insurance share in Banco do Brasil's recurring net income, reaching 12.5% in 2Q11.

The consolidated net income of insurance companies was of R$ 10.2 billion in 1H11, growth of 43.2% over the same period of previous year. These results reflect the success of the corporate restructuring, started in 2008.

Since June, BB and Mapfre Group started to operate together, forming the second major Brazilian group in insurance prize revenues.

Originated from this new corporate model, the BB Mapfre SH1, responsible for life, housing and rural insurance segments, ended the first half with R$ 1.3 billion in revenues and a profit of R$ 219.6 million.

The BB Mapfre SH2, responsible for vehicles and equity insurance segments, recorded R$ 1.3 billion in billing and a net income of R$ 42.9 million. The result of both holdings mirrors the new corporate model implemented.

Brasilcap presented a revenue 19.1% higher than the 1H10, totaling R$ 1.6 billion. Its technical provisions exceeded the amount of R$ 4.3 billion, an increase of 14.5% and consolidating its leadership position in the market.

Brasilprev presented R$ 43.0 billion in managed portfolio, a growth of 59.8% in the last six months, ending the 1H11 with 25.4% of market share in the collection item (position of May/2011).

Aligned to consulting for private customers, in the field of equity preservation and protection, actions were carried out to offer residential and auto insurance. Supplementing the insurance consulting services, BB offered life insurance, all with exclusive benefits and differentials for this segment. Improvements were implemented at the central offices of the insurance companies for specialized response to the demands of this segment.

With regard to closed-end private pension plans, BB Previdência ended the half with R$ 1.3 billion in assets, 37 corporate plans by 47 sponsoring companies, 4 plans created by 4 trade and professional entities, and over 55 thousand participants.

CAPITAL MARKET

Banco do Brasil operates in the domestic capital market through BB Banco de Investimento S.A. (BB-BI). In the 1H11 30 issues of fixed-income securities were made, adding up to R$ 9.9 billion , placing BB in the first place in Consolidated Anbima ranking, with 25.9% of market


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share. In the securitization segment, BB made 2 issuances of Credit Rights Investment Fund – FIDC, 3 of Real Estate Receivables Certificates – CRI and 1 of Real Estate Funds, adding up to R$ 918.6 million.

In the stock market, BB-BI coordinated 2 share offerings that amounted to R$ 1.5 billion. In terms of distribution, in the last 12 months BB reached the first position in Anbima ranking of Variable Income, representing 61.9% of market share.

In the custody of assets in the domestic market, BB occupies 3rd place in the Anbima ranking, may/2011 position, with R$ 498 billion under custody, representing 22.6% of market share, and operates as a real estate asset depository institution. It is worth remembering that the Anbima ranking does not include the custody of the assets of the actual custodian institution and its conglomerate. Including the assets belonging to the Treasury of BB and of the Extra market Funds, total assets under custody amounted more R$ 320 billion.

In the international capital market, Banco do Brasil, through its overseas brokers BB Securities Ltd (London) and Banco do Brasil Securities LLC (New York), took part in 9 of the 48 foreign funding operations carried out by companies, banks and the Brazilian government, of which 8 had lead manager condition and 1 co-manager status. Of the total sum of approximately US$ 26.6 billion issued in the semester, BB participated in around US$ 6.4 billion. Additionally, Banco do Brasil took part in 3 operations of foreign issuers, being 1 as lead-manager and 2 as co-manager which summed US$ 2.65 billion and EUR 750 million.

In the mergers and acquisitions market , BB-BI took part in 1 consummated operation, which amounted to R$ 86 million, coming in 12th place in the Anbima ranking accumulated up to march 31th, last available data.

BB offers a share purchase and sale service by means of the network of branches, Internet (home broker) and mobile phone, that recorded a volume of R$ 1.4 billion generated in 1H11.

In the private equity and venture capital industry, BB-BI has been operating since 2004 as an investor and, as of 2007, has been providing economic and financial advisory services to private-equity investment funds. Currently, BB is quotaholder in 13 funds and advisor in 4 funds, totaling a committed capital of R$ 1,262.5 million.

The focus on the offering of Agribusiness Letters of Credit – LCA among Private customers allowed the increase in the market share in


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this market segment. There was an increase of 568% in funding when compared to the fourth quarter of 2010.

Still regarding Private customers, BB made the first issuance of Real Estate Receivables Certificates – CRI with attractive rates in relation to the market, which allowed the loyalty of these customers and increase in businesses.

SERVICES

BB Administradora de Consórcios ended the 1H11 with 284.3 thousand active quotas, growth of 75.7% in 12 months. The vehicles segment, which grew 101.3%, reaching 247.3 thousand quotas in June 2011, merits special emphasis.

In the first half of 2011, there were 94.4 thousand new consortium quotas sold, representing R$ 2,906 million in letters of credit.

In tax collection, BB accounts for 23.9% of the market at federal level. In the first half of the year were collected, among federal and state taxes, R$ 178.4 billion and R$ 8.8 billion in the municipal level.

By means of the bank collection, tax deposit form collection and standing order services, Banco do Brasil provides services to over 569 thousand companies, which brought in R$ 382.8 billion in 1H11, with a total of 489.5 million of bills. These services added R$ 1 billion in revenue, growth of 10.8% in relation to 1H10.

Authorized Direct Debit (DDA) had 1.2 million electronic drawees and 20% market share, and over 96.6 million bank payment forms were electronically processed. That service avoids payment form printing, a measure that contributes to reduce paper use, and thus benefits the environment.

Banco do Brasil processed credits originating from payroll agreements, totaling R$ 85.4 million, involving corporate clients and the public sector in the semester. All told, BB catered to 11.4 million public officials and private company employees with this service, having brought in R$ 147.4 billion.

There were detailed and complex studies of the social security situation of civil servants from two major municipalities, resulting in the presentation of Social Security Diagnoses of the Pension Regimes for Government Workers – RPPS. The Diagnosis also offers guidelines and referrals for refinement, adaptation and the legal framework of RPPS. Other services were provided to the segment, such as: financial, accounting and actuarial advice, analysis for concession of benefit,


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technical support and training for managers and board members of the RPPS.

ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE PRODUCTS AND SERVICES

Banco do Brasil has an extensive portfolio of financial products and services with socio-environmental appeal, which ranges from premium bonds, which set aside part of the management fee for socio-environmental projects, to credit lines that support the modernization of industrial parks by means of the financing of eco-efficient machinery and equipment.

BB launched the Cheque Especial PF 10 dias sem juros (Overdraft Account for Individual Clients 10 days without interest) in April 2011. The new product is exempt from the collection of interest from clients and employees that have used the overdraft limit for a period not exceeding 10 days, consecutive or alternate, considering the duration of the portion of charges. For this purpose, the client or employee should adhere to one of the Environment Bonus Service Packages. Besides the benefit of interest rate exemption, part of the revenue earned (up to 5%) with the tariffs of the Environmental Bonus Service Packages will be set aside for Programa Água Brasil (Water Brazil Program). In just over 2 months after its launch, the product obtained the adhesion of 215 thousand clients.

Two new investment funds targeting the segment of youths were launched in March 2011: BB Multimercado Balanceado LP Jovem and BB Ações Índice de Sustentabilidade Empresarial Jovem. These products are designed to engage youths in socioenvironmental issues both by the attribute of financial education, creating an investment culture, and by their environmental appeal in setting aside the monthly sum of 20% of the management fee for Programa Água Brasil.

For the beginning of next half, Banco do Brasil is preparing to operate directly in Oriented Productive Micro-credit – MPO, offering micro-credit lines geared toward the formal or informal entrepreneur with annual turnover of up to R$120 thousand.

MPO is the credit extended to meet the financial needs of small businesses, using methodology based on the direct relationship with entrepreneurs, at the place where the economic activity is executed. At least 2,500 employees will be trained to visit small businesses, carry out socioeconomic surveys, provide educational guidance on business planning, for the definition of credit and management needs focused on


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the development of the venture. MPO will initially be available in cities with more than 150 thousand inhabitants.

SOCIAL INVESTMENT

Fundação Banco do Brasil – FBB social investments, reached R$ 57.5 million in programs, actions and social technologies in the jobs generation, income and education area. The amount invested was geared principally toward communities of family farmers, agricultural extractivists, settlers, quilombolas (slave descendants), indigenous peoples and waste pickers that collect recyclable materials across the country, especially in regions with low human development rates and communities with a greater risk of social exclusion.

The actions of BB and FBB currently in progress that merit special emphasis are:

Programa Aprendiz Banco do Brasil e Estágio de Estudantes (Student Internship and Apprentice Program) – 4,778 low income teenagers trained in 1H11 and 9,496 interns developing curricular activities on BB premises;

Digital Inclusion Program – over 1.5 thousand points of digital inclusion installed, including the telecenters from Banco do Brasil's Digital Inclusion Programa, recently migrated to FBB, and the Digital Stations, all implemented in previous years. On 4.26.2011, the Board of Officers approved the migration of the Digital Inclusion Program of BB - PIDBB to Fundação Banco do Brasil, as well as the creation of the Program for Social Inclusion and Transformation by means of the Donation of Replaced Computers. In this new model, the allocation of replaced computers is expanded, fulfilling the requirements of the Digital Inclusion Program, now under the management of FBB, and of other regional and national commitments. Thus, Banco do Brasil aims to confer social benefit to the disposal of the equipment, with greater integration of actions and solutions, visibility and leverage to the program.

Centros Culturais Banco do Brasil (Banco do Brasil Cultural Centers) – 45,854 public school students took part in guided visits in 1H11 for the promotion and disclosure of culture by means of a wide variety of artistic manifestations;

Sport Sponsorship – social projects and participative promotional actions; collection of foodstuffs in sports' events; and volleyball and tennis schools for the local community from the venues of the events;


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Social Technology Bank – 239 technologies certified in the first half of 2011;

AABB-Community Program – broadcasting sport and culture to approximately 51,722 children and adolescents catered to annually;

Programa Trabalho e Cidadania (Work and Citizenship Program) – 5,897 workers obtaining benefits in projects to support the production chains of cassava cultivation, cashew cultivation and solid waste; 2,055 workers involved in projects to support sustainable regional development in the basin of Rio São Bartolomeu and in the region of Vale do Rio Doce;

Programa Reaplicação de Tecnologias Sociais (Program for Reapplication of Social Technologies) – 1,224 families of extractivists, farmers and rural micro entrepreneurs obtaining benefits from the deployment of social technologies "Integrated and Sustainable Agroecological Production (Country) and Barraginhas.

For further information visit www.fbb.org.br.

CORPORATE MANAGEMENT

CORPORATE GOVERNANCE

Banco do Brasil's corporate governance structure is comprised by: the Board of Directors, advised by the Audit Committee and Internal Audit, and the Executive Board, made up of the Board of Officers (president and 9 vice-presidents) and by 26 statutory directors. BB also has a permanent Board of Auditors.

Decisions are taken collectively at all levels of BB. With the purpose of involving the executives in the definition of strategies and approval of proposals for BB's different businesses, the Management uses committees, subcommittees and commissions at a strategic level, which ensure the agility and security for the decision making. Among the instruments used to assure good governance, it is also worth highlighting the Corporate Governance Code and the Code of Ethics.

As a good corporate governance practice, BB has introduced tools to evaluate the performance of the Board of Directors, Audit Committee and Executive Board, in order to support the preparation of internal diagnoses and the identification of measures to improve performance.

Banco do Brasil is signatory of the Anbima Code of Regulation and Best Practices for the Private Banking Activity in the Domestic Market,


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ensuring high ethical standards, maximum transparency, qualification of professionals and commitment in the quality of the recommendation of products and services.

Moreover, Banco do Brasil, its Shareholders, the Officers, and the members of the Audit Committee undertake to resolve all and any dispute or controversy related with the New Market Listing Regulation by means of the Arbitration Chamber of the Bovespa Market, in conformity with a commitment clause contained in the By-laws of Banco do Brasil.

MARKET RELATIONS

In business administration, BB has concerned itself with disclosing its activities to the market in as much detail as possible, on a timely basis and without losing quality in the information provided. In addition to the wide range of reports and information made available at the Brazilian Securities Commission (CVM) and on the Investor Relations website, Association of Capital Market Investment Analysts and Professionals (APIMEC) meetings and other events with shareholders, Banco do Brasil has been inviting the market to attend conferences whenever management finds it necessary to clarify specific topics concerning the company.

With this goal, in the 1st half of 2011 BB took part in 57 meetings with domestic investors and analysts, 12 conferences, and promoted 4 conference calls with analysts and investors, besides over 250 responses to telephone inquiries.

BB provides up-to-date information to the market at the Investor Relations site (bb.com.br/ri).

EXTERNAL OMBUDSMAN SERVICE

The complaints received by the BB Ombudsman Service have different motivations, freely portraying past experiences of consumers. After a neutral and impartial analysis, complaints become inputs for potential improvements of processes, products, services and channels of Banco do Brasil.

In the 1H11, the BB Ombudsman Service presented 28 proposals for improvements of various products and services to the Board of Directors, after negotiations of actions and deadlines with the managers in charge.


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The BB Ombudsman Service also seeks integration with the main consumer protection entities and regulatory agencies, for dialogue and refinement of positioning, implementation of shared actions and strengthening of the ombudsman culture besides respect for consumers.

Over and above complying with legal determinations, the BB Ombudsman Service represents the commitment of Banco do Brasil to good market practices, in respect of consumer rights and the constant pursuit of refinement and improvement of its relationship with the various audiences served.

INTERNAL PROCEDURES

Risk Management

At Banco do Brasil, risk management is carried out on a joint and segregated basis in relation to its business units. Risk and credit policies are specified by the BB’s Board of Directors. These policies are expressed by global risk exposure limits, which are defined by the Global Risk Committee (CRG), which is a forum composed of its president and vice-presidents. The measures for implementing and monitoring the guidelines issued by the CRG are carried out by the Credit Risk, Marked and Liquidity and Operating Subcommittees.

In the sphere of market risks, Banco do Brasil has improved management with a review of the policy for classifying Trading and Non-Trading Portfolio transactions, defined in Bacen Circular 3354/2007, a review of the parameters for measuring the quantitative requirements of risks of the Internal Market Risk Model, a review of the Market Risk Stress Testing Program and a review of the Corporate Manuals of Mark-to-Market and Modeling of Products without Defined Maturity Date, a defined maturity date, all in line with the stipulations of Bacen Circular 3478/2009, which deals with internal market risk models. With regard to liquidity risk, there was a review of the Liquidity Contingency Plan of the Financial Group and of the assumptions for the Liquidity Stress Scenario.

For credit risk management, BB uses proprietary methodologies for the risk rating of clients, which are in line with best market practices and with the concepts introduced by the Basel Accord, considering the cadastral aspects (credit score), the credit history (behavior score) with BB and the market, as well as the use of banking products. BB has also made important investments in information technology (IT) solutions to support its credit risk management process, whereas the new tools are already in the process of installation.


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Alongside credit concession standards, Banco do Brasil maintains strategies for collection and recovery of receivables based on statistical models that help discover, from the identified profile of each client, the most suitable channels and the most efficacious relationship model for resolution of the credit delinquency.

In order to manage operational risk, Banco do Brasil, following the best market practices, monitors operational loss through a systemized internal database, exposure limits and key risk indicators, besides risk matrix to assess relevant outsourced services.

Aiming at the ongoing improvement of the operating risk management, in the first half of 2011 BB reviewed specific limits to operating losses related to "Labor Issues", "Faults in Businesses", "Faults in Processes", "External Fraud and Theft", and "Internal Frauds" with the purpose of providing more expeditious proposals for mitigating measures.

Banco do Brasil also approved an eligibility plan aimed at the adoption of the advanced approach and at the improvement of operational risk management, thus seeking better allocation of its capital in line with its business requirements.

With the objective of preventing, correcting or inhibiting weak points that may generate risks for BB, and of reducing losses and strengthening the culture of risks, BB uses the Technical Risk Recommendation (RTR), issued to the process or product management areas when the need for adoption of loss mitigation actions is identified, besides guaranteeing the fulfillment of the responsibilities defined in the risk management phases. In addition to the RTRs, BB also uses Technical Control Recommendations -RTC, Technical Security Recommendations -RTS, and the recommendations of internal and external audits.

Under Pillar I of Basel II, BB is in the process of preparing to become eligible to the use of advanced approaches to measure capital requirements for the coverage of market, credit and operational risk, having continuous monitoring included in BB’s risk and IT governance, with periodic reporting to members of senior management

In relation to Pillar II, in order to ensure there is sufficient capital to bear up under the strategies and their underlying risks and to comply with the rules related to prudential banking regulations, during the first half of 2011, Banco do Brasil developed a specific capital management policy, reviewed capital monitoring indicators and upgraded the capital planning process.

For purposes of compliance with Pillar III, Banco do Brasil published the required information about risk management, Required Referential


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Equity and Referential Equity, as provided for in Bacen Circular 3477/2009.

The risk management policies of Banco do Brasil are available at the website bb.com.br/ri.

Internal Controls

With the purpose of strengthening the processes related to the generation and disclosure of information to the market, mechanisms were implemented throughout the half to ensure control efficiency, in conformity with CVM Instruction No. 480/09.

For the launch of new products on the market, BB has a system and tools for keeping track of the prospecting, development, implementation and monitoring phases, which have undergone improvements in the 1st half of 2011, aiming at making this process more secure.

A new method for management to work with abroad branches was implemented during the half, with the use of new instruments for assessing the controls existing at these units.

Banco do Brasil monitors and evaluates the most relevant processes used in all distribution network units, including its support units, such as credit, master file, opening of current accounts and preventing and fighting money laundering.

In the six-month period, 230,253 processes were verified to evaluate compliance with policies.

The purpose of this verification is to evaluate compliance with policies, standards and internal procedures in these processes, with results being reported to the respective managers so that they correct identified non-compliances and continuously improve processes.

Banco do Brasil evaluates the effectiveness of internal controls related to consolidated financial statements for each year. Regarding the consolidated financial statements for the first half, we concluded, with reasonable level of assurance, that Banco do Brasil's internal controls are adequate to its size, business complexity and risks it is exposed to.

Prevention and Avoidance of Money Laundering and Financing of Terrorism–PLD/FT

For Banco do Brasil, preventing and fighting against money laundering and financing of terrorism is a legal obligation and a commitment to the Country. In its internet website, BB discloses the policies adopted to


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prevent and avoid money laundering and financing of terrorism, and provides suggestions to customers on how to avoid being used by criminals in schemes of this nature.

In addition, BB invests to improve the mechanisms that prevent and combat money laundering and terrorism financing, and to train its employees. On-site training and internal certification in BB Prevention and Avoidance of Money Laundering and Financing of Terrorism are certified with Seal by Enccla - National Strategy for the Avoidance of Corruption and Money Laundering. The Enccla seal is granted by the Ministry of Justice to courses which should meet the requisites as defined in the National Program of Education and Training for the Avoidance of Money Laundering. - PNLD.

Additionally, from 2009 on, BB has addressed this issue in its external hiring selections.

Environment Security

In order to prevent the growth of organized crime, which also obtains capital by attacking bank facilities, Banco do Brasil permanently updates its units’ security devices around the country.

These environments' security management includes the evolution of technologies to respond to attacks and also the functions of environment monitoring and control.

Investments in security together with constant training of professionals contribute to the protection of customers, employees and society in general, as it reduces the financial return of criminal actions.

Crisis Management and Business Continuity

To guarantee the perpetuity of the Organization is one of the commitments of Banco do Brasil with the society and the country.

Banco do Brasil monitors, via media and the capillarity of its network in Brazil and the world, situations that may pose a risk to people and businesses.

Managers at several organizational levels are advised to prepare themselves to respond to situations that represent a threat to life, environment, business and the company's image, through an interdisciplinary process denominated crisis management and business continuity.


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TECHNOLOGY

Banco do Brasil sees Information Technology as a strategic factor in operating effectiveness and a key instrument for competitive distinctiveness; for this reason, it continuously invests in improving and modernizing its IT facilities, not only from the technical point of view but also from the governance and management points of view.

The major BB IT actions include new technological integration models that will permit obtaining maximum benefit from different platforms used, the online monitoring of business events that will allow real time management, a new approach to investment, with segregation into tiers and architecture guided to service, that will allow a high level of components reutilization and greater agility in developing new solutions.

In line with the "Retail Transformation Program", Banco do Brasil acts to modernize its technological architecture, with emphasis on the new business platform interface to be used by retail agencies, optimizing service time spent with our customers.

The development of IT solutions to support sales and the relationship with customers by providing information for the active monitoring of business, controllership and product and services management are the key elements for transforming the Retail area.

In order to comply with regulatory requirements, BB strongly invests in the preparation of a solid corporate technological environment, similar to the ongoing solutions to support Basel II processes in market, credit and operating segments.

New technological solutions are also being developed for our branches abroad and for corporate management.

A new and modern Data Processing Center (Datacenter) is being built in Brasília, Distrito Federal, to modernize our technological infrastructure, supporting business continuity with security and high availability. Its conclusion is expected for 2012.

In addition, a new processing architecture with site segregation and specialization, which adjusts infrastructure to the characteristics of each business, offers the means for greater assertiveness and investment effectiveness.

In order to improve these processes governance, BB started the implementation of a new IT Governance model that is adequate to the current and future needs of the Conglomerate.


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The main focus of this new model is to improve management processes of the BB IT area, in order to guarantee its alignment with the Corporate Strategy.

The new IT Governance model is prepared based on best practices and standards to increase IT area effectiveness and also its process control, ensuring technological sustainability and the perpetuity of Banco do Brasil. It will be implemented during 2011 and the first half of 2012.

LOGISTICS

Since the beginning of 2011, to further improve service processes, Banco do Brasil follows up all ATMs operation in the ATMs Environment Monitoring Centers, on a centralized basis, to ensure customers' satisfaction with this channel.

It also started to monitor, using image devices, ATM rooms in large cities. The project intends to provide, in addition to maintaining cleaner rooms and providing more equipment, a friendly environment that will allow customers to make good business.

One of the actions of the "Retail Transformation Program" includes the new setting of the branches. In the first half of 2011, BB adapted 102 premises to the new visual standard. It is a project designed to modernize the physical facilities of the branches, to offer greater comfort to clients, to install customer service environments with greater privacy and modern security devices. In 2011 it is expected that the new layout design will be expanded to as many as 565 branches.

ECOEFFICIENCY

Banco do Brasil emphasizes the Eco-efficiency Program, that aims to produce more with less, using fewer natural resources and less energy in the productive process, reducing waste and production and operation costs.

In May 2011, BB extended its selective collection program to all municipalities of Paraná State, where it operates, by forwarding waste to cooperatives and/or collectors associations.

It is worth mentioning that BB is a founding member of the Companies for Climate Program and of the Brazilian GHG Protocol Program, both targeting reflection on and proposition of actions to combat climatic changes.

In its 2011 emission inventory, based on 2010 information, BB included three new emission sources. In addition to including new sources, its


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inventory was verified by an independent party and received a golden seal, the greatest recognition level, from the GHG Brazilian Protocol Program.

Banco do Brasil has also put in place a number of steps to reduce the use of paper. Corporate systems were adjusted to preferably make double-face prints and campaigns were conducted to raise the awareness of employees.

BB carries out initiatives geared toward the rationalization of input consumption and responsible disposal of waste. One of the divisions of the program provides for the reduction of 25% in water consumption in the main buildings of BB.

Banco do Brasil has invested in new channels for processing transactions and for doing business with its customers. There is growing trend to employ channels that do not involve printing and, therefore, do not consume paper. Among such channels, we may point out the Internet, Customer Assistance, and Mobile Banking.

It is worth emphasizing the consolidation of the DDA - Authorized Direct Debit initiative, an option that allows the client to register as an electronic drawee, sparing with the need for issuance of paper bank payment slips. BB is a leader in the DDA service, and reached this position because it started providing this service for customers even before it was launched by the Brazilian Bank Federation (Febraban). This initiative, conducted only in the first half of 2011, permitted savings of 10,288,698 liters of water and 514,435 Kw (electricity), in addition to conserving 5,659 eucalyptus trees and avoiding the emission of 1,646 tons of CO2.

PEOPLE

TALENT AND CAREER MANAGEMENT

BB ended the 1st half of 2011 with 112,913 employees, as compared to 106,241 in the same period of 2010. Out of this staff, 5,852 new employees are approved in public contests, thus reinforcing BB’s commitment in improving working conditions and organizational climate to its employees, customer service and the country's development by means of generation of jobs and income.

Banco do Brasil offers to its employees the possibility of managing their professional trajectory and plan their careers. It has a Professional Rise Program and a Talent and Opportunity Bank (TAO) through which it


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identifies the most skilled employees to perform different functions in the company. In the first half of 2011, 16,608 employees were identified in TAO system and appointed to commissioned jobs.

CORPORATE UNIVERSITY

It is worth to emphasize that since 2002, Banco do Brasil maintains the Corporate University of Banco do Brasil (UniBB) to help its employees to discover and develop their talents, improve professionally and contribute to the good development of business. UniBB key role is to develop human and professional excellence by creating value in educational solutions, contributing to the improvement of organization performance and strengthening of Banco do Brasil institutional image. UniBB is a strategic resource to position Banco do Brasil in the financial industry and to strengthen its institutional image. Its actions are in line with the Corporate Strategy and contribute to put in place the BB's vision of future, achieve its strategic objectives and develop its beliefs and values, consolidating its commitment with shareholders, customers, employees and the society.

In the UniBB Portal, personal and professional development actions are disclosed and distance online training is available. This portal may be accessed both through Corporate Intranet and Internet in the address: http://uni.bb.com.br. It has an area that is open to the public and another area accessed only by our personnel.

Banco do Brasil Corporate University (UniBB) promoted, in the first half of 2011, 340,017 class trainings, self-trainings and on-site trainings, totaling 4,106 thousand hours. Average training hours per employee was 36.6 hours in the first half of 2011. Training opportunities were offered through 228 courses, of which 121 were self-instructional, 10 were on-site, 70 were class trainings and 27 were contracted in the market. In addition, external courses were contracted for punctual needs. These training actions use different teaching and supporting methods, such as: corporate TV, the web, press, booklets, etc.

In addition to skill trainings, BB offers improvement opportunities focused on continued education, such as scholarships for graduation, post-graduation (specialization, master degree and PhD) and foreign language courses. In the 1H11 BB had 8,636 scholarship employees, as graduation and post-graduation students, and 318 in foreign languages. General education at the end of the first half of 2011 was as follows: 23.0% of BB employees had completed specialization, master or PhD courses, 48.9% had completed degree courses, 27.6% had completed high school and 0.5% had completed the basic education.

http://uni.bb.com.br/


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UniBB also encourages the development of educational spaces in all BB’s units and expands BB learning community by incorporating customers, suppliers, partners, members of subsidiaries, associates and associations related to BB. It offers professional education to this public through partnerships with renowned education providers and ensures that professional development internal needs are met.

LIBRARIES

To support teaching and learning, Banco do Brasil has corporate information units (libraries) that coordinate prospection, management, and dissemination of information and knowledge activities.

The community has access to the libraries' premises to study, research and also to consult our book collection. Providing services to the community is part of the BB’s social responsibility actions.

Information units' total collection comprises over 250 thousand books with emphasis on BB’s business areas. It also has books from other areas to contribute to the integral formation of the human being. In the first half of 2011, 136,814 book were lent to users. Facilities were visited by 3,512 people and the book collection increased due to 8,216 new acquisitions and 3,187 donations.

CERTIFICATIONS

In addition, BB allows its employees to take part in the Program for Internal Certification of Knowledge, as a training and professional qualification strategy. At the end of 1H11, 163.7 thousand certifications have been given out.

BB encourages employees to obtain legal investment certificates (CPA 10 and 20) and money laundering prevention and combat certificates (PLD). At the end of the first half of 2011, 64,230 thousand employees had CPA 10 and 20 certificates and 15,250 had PLD certificates. BB is the financial institution with the greatest number of employees holding legal certificates.

PERFORMANCE MANAGEMENT

Performance of BB employees is formally monitored and evaluated through a tool denominated "Performance Management through Competences" (GDP). It gathers, in a single model, items of the Balanced Scorecard (BSC), Management through Competence,


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Management through Results and 360 Degree Evaluation. Employees' performance is evaluated from five different perspectives: financial, customers, internal processes, organizational behavior and society. Evaluation is carried out by bosses, subordinated employees, peers (colleagues) and employees themselves (self-evaluation). In the first half of 2011, 108,241 employees had their performance followed up through this tool.

In addition, the Board of Directors, Audit Committee and Executive Board's performances are annually evaluated; this initiative is a good corporate governance practice allowing internal diagnosis and identification of opportunities for improvement actions.

REMUNERATION AND BENEFITS

The table below shows the remuneration and the benefits granted to the employees:

R$ million

1H11 1H10 (%)

Payroll¹ 6,316 5,627 12.2

Supplementary Pension² 139.7 100.6 38.9

Health Care Plans² 429.6 375.4 14.4

Profit-Sharing Plan³ 927.8 767.2 20.9

Training4 26 32 (19.0)

¹ Expenses with salaries, benefits, social charges and personnel provisions. ² Funding of supplementary pension and health care plans, pursuant to Notes 22.c and 27. ³ Amount set aside for Profit and Gain Sharing, as Statement of income for the year. 4 In accordance to Note 22.c

Banco do Brasil’s structure includes the Quality of Life at Work area, which develops and manages several programs aimed at improvement in the quality of life of employees, such as PCMSO (Program for Medical Control of Occupational Health), Sesmt (Specialized Services in Safety Engineering and in Occupational Medicine of BB), Tabas (Program for the Control of Smoking), Pavas (Program for Assistance to Holdup and Kidnapping Victims), Program for Recognition of Employees and the Quality of Life at Work Program.

In order to encourage dialogue, value ethical and human relations and contribute to the improvement of policies, processes and practices of the Personnel Management and Social Environment Responsibility areas, Banco do Brasil has since 2005 an institutional channel denominated "Ouvidoria Interna" (Internal Ombudsman) available to all its employees.


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The action of the Ombudsman aims at encouraging dialogue in the work environment and strengthen participative, democratic and transparent management by mediating conflicts and caring for principles and ethical conduct.

The Ombudsman develops instruments to permit getting close to employees, instruments for participation in seminars, work meetings, visits to BB’s Units, lectures, audio and video conferences in order to publicize its action (work methodology) and strengthen the employee-Board relationship.

On a half-annual basis, the Ombudsman forwards to BB’s Board of Officers, Executive Summaries on the problems indicated by employees in the Personnel Management and Social Environmental areas.

Banco do Brasil maintains a transparent and respectful dialogue process with the representatives of its employees. It maintains a Collective Labor Agreement of national sphere, holds permanent negotiations with the trade unions and organizes theme groups with the bankers' representatives to discuss in detail topics of interest to the workers and to the company.

Moreover, BB launched both a "collective labor agreement" website on the intranet and a specific blog on the topic, aiming at the refinement of the internal communication process in favor of the consolidation and dissemination of the culture of dialogue with the trade union entities, building up interaction and serious debate on the topics involved in the process between the company and its employees.

LEGAL INFORMATION

In compliance with CVM Instruction No. 381, Banco do Brasil reports that KPMG Auditores Independentes has not provided, to BB and subsidiaries, any services that could affect its independence in relation to audit work in the first semester of 2011.

In the engagement of services not related to external audits, Banco do Brasil adopts procedures based on the applicable legislation and on internationally accepted principles that preserve the independence of the auditor. These principles consist of: (i) the auditor should not audit his own work and (ii) the auditor should not act managerially before his client nor promote the interests of his client.

In Banco do Brasil, the contracting of services related to external audit should be preceded by the opinion of the Audit Committee.


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In compliance with article 8 of Bacen Circular 3.068/2001, Banco do Brasil confirms that it has the intention and financial capacity to hold until maturity the securities classified in the "Securities Held to Maturity" category. The financial capacity is backed by a cash flow forecast that does not take into consideration the possibility of selling these securities.

According to the provisions of CVM Resolution 488/05, BB explains that there was an increase of 3.7% in investments in relation to the 1st half of 2010, emphasizing the sum of investment in real estate (renovations and constructions), in the amount of R$ 272 million, in information technology (R$ 213 million) and in equipment (R$ 49 million).

In compliance with Article 243 of Law 6404/76, BB reports that investments in subsidiary and associated companies totaled R$ 19.7 billion as of June 30, 2011.

In accordance with criteria defined by the Brazilian Statute of Micro and Small Businesses (General Law of Micro and Small Businesses), 97.7% of BB's business clients are classified as micro and small businesses. The balance of funds used by SMEs reached R$ 35.4 billion in 1H11, representing a 4.4% increase as compared to the same period of 2010. The balance of working capital operations contracted by very small companies totaled R$ 4.2 billion, and of small companies totaled R$ 20.3 billion. Investment operations aimed at very small companies reached R$ 2.4 billion; for small companies, investments reached R$ 8.1 billion.

Licitações-e, Banco do Brasil's public bidding portal, was the big winner of the V Prêmio 19 de Março (March 19 Award), granted during the VI Brazilian Congress of Auctioneers occurred in March in the city of Foz do Iguaçu (PR). Of the five awards granted to the category 'Electronic Trading Systems, Licitações-e won three: 'Greatest number of trading sessions conducted and completed in 2010'; '2010 Best Electronic Trading System'; and 'Best Interaction with the Supplier'.

Ourocard, the Favorite Card of Brazilians according to the research conducted by Cardmonitor / Instituto Medida Certa from December 2010 to January 2011, was also elected as the best credit card

MAIN AWARDS RECEIVED IN THE PERIOD


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(Brand Force), according to the research CVA Solutions carried out in February and March 2011.

Banco do Brasil was the winner of the X Prêmio e-Finance, (e-Finance Award), granted by Editora Executivos Financeiros, in the category GED-Gerenciador Eletrônico de Documentos (Electronic Document Manager), with the following cases: "Electronic Folder - Stage II" and "Servicing Center Europe - Electronic Management of Documents for the Europe Block".

Also in the X Prêmio e-Finance, Banco do Brasil won in the category Market Innovation, with the following cases: Brasília Concept Sore and New York Convenience Room.

ACKNOWLEDGMENTS

We thank the dedication and diligence of our employees and collaborators, as well as the trust of shareholders, clients and company.

Further information: Investor Relations Website (www.bb.com.br/ri).