BBM, founded in 1858. Mar/13
Bank Overview Our Business Highlight s Commercial Banking Funding Corporat e Treasury Privat e Banking Mar/13
St ruct ural Organizat ion Mariani Group Others 47% 73% 27% BBM Holding S.A. 51% Banco BBM S.A. 2% 100% BBM Adm. de Recursos DTVM S.A. Bacor Corretora de Câmbio e Val. Mobil. S.A. BBM Bank Ltd. (Bahamas) 3
Organizat ional Flow chart Board of Directors Pedro H. Mariani Edgard Lacerda Eduardo Mariani Glória Mariani Lúcio Santos Internal Audit Banco BBM Executive Board Pedro H. Mariani * Cassio von Gal Renato Muanis Sergio Freitas Pedro H. Mariani Risk and Internal Controls Cassio von Gal Funding and Institutional Relations Renato Muanis Credit Sergio Freitas* * Back Office Felipe Mescolin Proprietary Treasury Fábio Dayer Private Banking Leonardo Oliveira Credit Analysis * Coordinator of the Executive Board. * * Director of Ombudsman 4
Corporat e Governance Annually Semiannual Quarterly Monthly Weekly General Meeting of Shareholders Board of Directors Executive Committee Operational Risk & Internal Controls Committee Product Committee HR Committee Credit Committee Risk Committee Regulatory Committee Compliance Committee 5
Our Business Commercial Banking Provides credit lines in local and foreign currency for companies; Focus on companies with annual revenues exceeding R$ 200 million. Privat e Banking Provides financial advisory and wealth management services to high net-worth clients. Treasury Capital and liquidity management; Asset pricing. 6
Highlight s of Financial Perf ormance Financial Highlight s Mar/12 Jun/ 12 Dec/ 12 M ar/ 13 Total Assets (R$ Million) 3,785 2,685 2,705 3,057 Shareholders Equity (R$ Million) 538 540 543 545 Net Income (R$ Million) 11 22 43 9 Return on Average Equity 8.38% 8.04% 8.04% 6.79% Total Loan Portfolio (R$ Million) 1,036 1,200 1,341 1,229 Total Funding (R$ Million) 1,703 1,808 1,943 1,976 Liquid Assets 1,131 944 892 982 Basel Ratio (Core Tier I) 19.81% 23.85% 23.03% 23.72% Credit Leverage 1.93 2.22 2.47 2.25 NIM (before Allowances for Loan Losses) 3.97% 5.72% 5.41% 3.69% 7
Rat ings Apr/2012 Aa2.br/ BR1 Ba1/ NP Ba1/ NP Bank Deposits / Domestic Currency Deposits / Foreign Currency Bank Deposits Dec/2012 Risk: Low medium term risk Disclosure: Very Good 8
Credit Evaluat ion BBM s Credit Committee must approve the credit structure, product, payment flows and guarantees for each presented transaction; All credit approvals granted by the Committee are valid for 90 days; All transactions are evaluated by cashflow/balancesheet and quantitative model; R$ 20 million target net exposure per economic group. 9
Commercial Banking Loan Portfolio R$ Million 1,200 1,341 1,229 1,036 Mar/12 Jun/12 Dec/12 Mar/13 10
Commercial Banking Loan Portfolio Breakdow n by Transact ion Loan Portfolio Breakdow n by Sector 5% 3% 3% 2% 44% 51% 54% 54% 23% 22% 21% 24% 28% 25% 22% 19% 25% 6% 12% 15% 13% 8% 21% 18% 18% 18% 6% 5% 5% 8% 6% 5% 9% 9% 13% 9% 14% 14% 23% 14% 20% 27% 28% 31% Mar/12 Jun/12 Dec/12 Mar/13 Mar/12 Jun/12 Dec/12 Mar/13 Trade Finance Working Capital Export Credit Notes Others Agriculture Chemical and Petrochemical Food Others Construction and Engineering Sugar and Alcohol Energy 11
Commercial Banking Loan Portfolio - Quality Ratios Mar/12 Jun/12 Dec/12 Mar/13 Past Due Above 60 days 0.2% 0.1% 0.1% 0.3% Allowances for Loan Losses 3.0% 2.6% 1.6% 2.0% Loan from (D-H) 3.6% 3.0% 0.7% 2.3% Collaterals 29% 5% 38% Receivables Invent ories / Crops Assignment of shares 28% Assignment of real estate 12
Liquidit y M anagement Tot al Funding R$ Million Liquid Asset s* R$ Million 1,943 1,976 1,131 944 892 982 1,808 1,703 Mar/12 Jun/12 Dec/12 Mar/13 Mar/12 Jun/12 Dec/12 Mar/13 * Liquid Assets = Cash and cash equivalents + Short-term interbank investments (Funded position, Investments in interbank deposits and foreign currency) + Fixed Income Securities (Not considering those linked to Repo transanctions and guarantees) + Variable Income Securities(Not considering fund shares). 13
Funding Funding Breakdow n by Sector Funding Sources 36% 39% 48% 49% 22% 15% 13% 15% 13% 13% 12% 11% 27% 20% 14% 15% 24% 28% 26% 25% 20% 35% 44% 5% 5% 8% 53% 44% 35% 49% 7% 30% Mar/12 Jun/12 Dec/12 Mar/13 Mar/12 Jun/12 Dec/12 Mar/13 Individual Investors Multilateral Agencies Corporate Institutional Investors Time Deposits & Interbank Deposits Trade Finance Banknotes, Agribusiness & Real Estate Credit Bills BNDES Onlending, Demand Deposit, IFC 14
Funding Maturity Profile 1 Loan Portfolio vs. Funding 2 Asset Liability Management R$ Million 1.200, 700 727 773 743, 1.100, 1.000 900 560 800 700 418 411 410 600 500 400 300 200 100 Mar/12 Jun/12 Dec/12 Mar/13 0 Loan Portfolio Funding ¹Average term of issuance ²Not considering Demand Deposits. 15
Treasury Assets and liability management; Sets price points for other areas; Sophisticated risk management tools; VaR of 2% of shareholders equity; Activities supported by a strong research team. 16
Private Banking Provides financial advisory and w ealth management services; R$ 1.8 billion under management, grounded on: More than 150 years of experience on the Brazilian market with a high expertise on risk management; Asset s under M anagement R$ Million 1,819 Consistent performance throughout the last years; Product diversification (Open Platform); Transparency. 1,724 1,742 1,668 Mar/12 Jun/12 Dec/12 Mar/13 17
Rio de Janeiro, RJ Praça Pio X, 98, 5º, 6,º and 7º floors Zip Code 20091-040 Phone: +55 (21) 2514-8448 Fax: +55 (21) 2514-8293 Salvador, BA Rua Miguel Calmon, 398 2º floor parte Zip Code 40015-010 Phone: +55 (71) 3326-4721 (71) 3326-5583 Fax: +55 (71) 3254-2703 São Paulo, SP Av. Brigadeiro Faria Lima, 3311-15º floor Zip Code 04538-133 Phone: +55 (11) 3704-0667 +55 (11) 4064-4867 Fax: +55 (11) 3704-0502 Nassau, Bahamas Shirley House Shirley House Street, 2nd floor, P.O. N-7507 Phone: (1) (242) 356-6584 Fax: (1) (242) 356-6015 w w w.bancobbm.com.br Ombudsman: Phone: 0800 724 8448 Fax: 0800 724 8449 E-mail: ouvidoria@bancobbm.com.br www.bancobbm.com.br/ouvidoria Mar/13