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  • 1. 1 4th quarter 2010
  • 2. 2 . Who we are . Business Segments . Competitive Environment . Financial Highlights . Outlook
  • 3. 3 IPO 1989 1997 2005 20112007 History in Brazil Arab Banking Corporation and local management acquire Roberto Marinho Group´s shares The bank´s name changes to Banco ABC Brasil S.A. The bank structures its Middle Market operations Arab Bank Corporation and Roberto Marinho Group jointly initiate Banco ABC Roma SA, acting in the segments of corporate lending, trade finance and treasury 3
  • 4. 4 2006 2007 2008 2009 2010 Middle Corporate 86% 86% 2,911 4,992 6,485 84%11% 12% 13% 8,509 84% 15% 36% 11,588 86% 14% 4 Focus on Companies • Expertise in corporate credit risk analysis with remarkably low historical losses. • Wide range of products. • Winning combination of a strong controlling shareholder and an independent local Management team. 4 ABC Brasil strongly focuses on providing loans and structured products to mid-sized and large companies. Credit Portfolio Including Guarantees Issued. BRL Million.
  • 5. 5 Ownership Structure 5 Support of a strong international controlling shareholder. Local Management 11.8% Voting CapitalTotal Capital Free-float 34.3% Local Management, Directors and Employees ABC 57.8% ABC 88.2% 7.9%
  • 6. 6 Controlling Shareholder International bank headquartered in Bahrain Listed in the Bahrain stock exchange Present in 22 countries Main Shareholders Central Bank of Libya 59.3% Kuwait Investment Authority 29.7% 6 Arab Banking Corporation Total Assets: US$ 28.1 Bn Shareholders’ Equity: US$ 3.4 Bn Ratings: BB Baa3BBB Dec/2010
  • 7. 7 Successful Track Record 7 BRL million Mexican Crisis Asian Crisis Russian Crisis Devaluation of BRL “Apagão” September 11th Argentinean Crisis Presidential Elections of Lula Banco Santos Bankruptcy Subprime Growth with low losses despite adverse economic conditions. Credit Portfolio Losses / Loan Portfolio 371 727 640 1.095 1.619 2.452 2.061 1.749 2.011 2.605 2.911 4.992 6.485 8.509 11.588 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0,0% 0,7% 0,0% 0,6% 0,0% 0,1% 0,1% 0,8% 1,4% 0,0% 0,0% 0,2% 0,2% 0,6% 0,7%
  • 8. 8 RO AC AM RR PA AP MA PI CE BA MG ES RJ SP PR SC RS MS MT GO DF RN PB PE AL SE Geographical Presence And Expansion Plan 8 TO BUSINESS PLATFORMS CORPORATE MIDDLE SP Capital 3 4 SP Countryside 1 2 South 1 3 RJ 1 1 MG - 1 GO - 1 TOTAL 6 12 ABC Brasil offices New Middle Market Business Platforms Middle-West Ribeirão Preto São Paulo IV
  • 9. 9 . Who we are . Business Segments . Competitive Environment . Financial Highlights . Outlook
  • 10. 10 Business Segments 10 Total Portfolio Loan Portfolio 40.1% Corporate Companies with annual revenues over BRL 250 million Total Portfolio Loan Portfolio Middle Market Companies with annual revenues from BRL 30 to 250 million 7.5% 38.5% 5.6% 26.0% 11.6% 29.5% 11.4% BRL million 7.157,2 8.079,8 8.790,8 9.323,9 10.023,8 4Q09 1Q10 2Q10 3Q10 4Q10 4.410,4 4.950,3 5.426,1 5.784,0 6.109,0 4Q09 1Q10 2Q10 3Q10 4Q10 1.242,0 1.314,3 1.388,0 1.401,8 1.564,6 4Q09 1Q10 2Q10 3Q10 4Q10 1.173,7 1.252,2 1.346,1 1.365,3 1.520,4 4Q09 1Q10 2Q10 3Q10 4Q10
  • 11. 11 Segments Highlights 11 Corporate Middle Market 12,0 12,0 12,9 13,7 14,7 342 346 360 376 390 596 675 679 682 683 2,0 2,0 2,0 2,0 2,1 258 256 261 257 246 618 652 695 717 728 Exposure per Client Duration (days) Groups BRL million 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 4T09 1T10 2T10 3T10 4T104T09 1T10 2T10 3T10 4T10 9% 12% 20% 58% 9% 12% 22% 57% 9% 13% 21% 57% 8% 14% 21% 57% 10% 14% 20% 56% 9% 24% 9% 9% 49% 8% 24% 9% 10% 49% 6% 27% 9% 11% 48% 6% 30% 10% 10% 45% 5% 31% 10% 11% 44% 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 7,157 8,080 8,791 9,324 10,024 1,242 1,314 1,388 1,402 1,565 Belo Horizonte South Rio de Janeiro São Paulo Countryside São Paulo Capital
  • 12. 12 . Who we are . Business Segments . Competitive Environment . Financial Highlights . Outlook
  • 13. 13 Brazilian Banking Sector Competitive advantages in corporate segment Big retail banks 13 Mid-sized international banks Mid-sized family owned banks Scale Funding Products Agility Focus
  • 14. 14 Brazilian Banking Sector ABC Brasil focuses on the Corporate and Middle Market segments. Large Corporate CorporateMiddleMarketRetail Number of Clients Revenues Range (BRL Mi) 2,000+ 250- 2,000 30-250 Individuals and small companies Main Competitors Big retail banks Middle-sized international banks Big retail banks Middle-sized international banks Big retail banks Middle-sized family owned banks Big retail banks Middle-sized international banks Middle-sized family owned banks 14
  • 15. 15 . Who we are . Business Segments . Competitive Environment . Financial Highlights . Outlook
  • 16. 16 Credit Portfolio Quality 16 Loan Loss Provision (% portfolio) Write offs Brazilian Central Bank Resolution no. 2,682 Past Due(90 days) AA-C 97.9% D-H 2.1% BRL million 1,0% 1,0% 1,0% 1,1% 2,2% 2,8% 3,0% 2,6% 2,3% 1,9% 1,8% 1,6% 1,6% 0,8% 0,7% 0,7% 0,7% 1,8% 2,3% 2,3% 2,2% 1,8% 1,5% 1,3% 1,2% 1,1% 2,3% 2,4% 2,3% 2,2% 4,0% 5,2% 5,5% 4,4% 3,7% 3,3% 3,6% 3,6% 3,6% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 0,2% 0,2% 0,3% 0,3% 0,6% 1,2% 0,9% 0,6% 0,3% 0,2% 0,2% 0,1% 0,1% 0,1% 0,1% 0,1% 0,4% 1,0% 0,6% 0,5% 0,5% 0,2% 0,1% 0,1% 0,0% 0,7% 1,3% 1,0% 1,4% 1,8% 2,2% 2,3% 1,0% 0,7% 0,6% 0,6% 0,7% 0,4% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 0,0% 0,1% 0,0% 0,0% 0,1% 0,1% 0,2% 0,1% 0,2% 0,1% 0,1% 0,1% 0,0% 0,0% 0,1% 0,0% 0,3% 0,0% 0,0% 0,1% 0,3% 0,2% 0,1% 0,1% 0,7% 0,7% 0,2% 0,4% 0,5% 0,5% 0,3% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 total corporate middle
  • 17. 17 Funding 17 BRL million
  • 18. 18 Basel Index & Shareholders´ Equity 18 Capital Adequacy (BRL million) 4Q10 3Q10 4Q09 Var 4Q10 - 3Q10 Var 4Q10 - 4Q09 Capital 1,841.8 1,833.0 1,228.3 0.5% 49.9% Mininum Capital Required 1,263.4 1,195.9 922.9 5.6% 36.9% Capital Surplus 578.4 637.1 305.4 -9.2% 89.4% Basel Index 16.0% 16.9% 14.6% -4.9% 9.6% Tier I 11.7% 12.1% 14.6% -2.8% -19.8% Tier II 4.3% 4.8% 0.0% -10.3% 0.0% 1.218,4 1.312,1 1.347,9 Shareholders' Equity BRL million 14,6% 12,1% 11,7% 4,8% 4,3% 4Q09 3Q10 4Q10 Tier II Core Capital (Tier I) 16.0%16.9% 14.6%
  • 19. 19 Financial Margin 19 NIM (% p.a.) BRL million 4Q10 3Q10 Var.(%) 4Q09 Var.(%) 2010 2009 Var.(%) Financial Margin with Clients 113.3 109.7 3.2% 87.9 28.8% 421.5 348.3 21.0% Financial Margin with Market 13.1 7.2 82.3% 10.8 21.4% 43.6 27.7 57.5% Net Interest Income before Loan-Loss Provisions (LLP) 126.4 116.9 8.1% 98.7 28.0% 465.1 376.0 23.7% Loan Loss Provision (LLP) (12.7) (8.9) 42.4% (4.1) 0.0% (44.4) (53.1) -16.4% LLP (Brazilian Central Bank resolution nº 2,682) (12.7) (9.4) 35.4% (10.8) 17.3% (47.5) (63.2) -24.8% Additional LLP - 0.5 0.0% 6.8 0.0% 3.1 10.1 -69.4% Managerial Financial Margin 113.7 108.0 5.3% 94.6 20.1% 420.6 322.8 30.3%
  • 20. 20 Income from services 20 Income from services rendered (BRL million) 4Q10 3Q10 4Q09 2010 2009 Var 4Q10 - 3Q10 Var 2010 - 2009 Guarantees issued 19.6 17.4 14.1 69.8 43.7 12.2% 59.8% Capital Markets and M&A Fees 8.2 0.5 0.6 12.7 1.5 0.0% 773.5% Banking Fees 6.9 4.9 5.1 25.6 14.5 40.9% 76.8% Total 34.7 22.8 19.8 108.1 59.7 52.0% 81.3% BRL million
  • 21. 21 Expenses 21 Efficiency Ratio BRL million Expenses (BRL million) 4Q10 3Q10 4Q09 2010 2009 Var 4Q10 - 3Q10 Var 2010 - 2009 Personnel (25.7) (23.1) (20.3) (92.1) (77.9) 11.1% 18.2% Other administrative expenses (16.1) (13.7) (15.7) (57.7) (55.2) 17.0% 4.5% Profit Sharing (19.2) (15.0) (13.5) (65.1) (42.1) 28.4% 54.8% Total (61.0) (51.8) (49.4) (214.9) (175.2) 17.7% 22.6% 41,7% 38,0% 37,6% 37,0% 37,9% 40,4% 37,6% 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010
  • 22. 22 Profitability 22 BRL million NET INCOME ROAE (p.a.) * Excluding extraordinary effects of divestment of CETIP and joining of program for settlement of tax debits published by the Federal Government 44,5 46,9 50,2 51,1 54,0 141,9 202,2 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 * * 14,8% 15,2% 15,9% 15,8% 16,3% 12,1% 15,8% 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 * *
  • 23. 23 . Who we are . Business Segments . Competitive Environment . Financial Highlights . Outlook
  • 24. 24 Guidance 2011 24 Estimated Credit Portfolio 21% - 25% Corporate 18% - 23% Middle Market 35% - 40% Personnel & Other Administrative Expenses 12% - 15%
  • 25. 25 Contacts www.abcbrasil.com.br/ir 25 Investors Relations Alexandre Sinzato, CFA Head of Investor Relations Email: ri@abcbrasil.com.br Phone: +55 (11) 3170 2186 International Department Angela Martins Director International Department Email: angela.martins@abcbrasil.com.br Phone: +55 (11) 3170 2136
  • 26. 26 Investor Relations Sergio Lulia Jacob Director Vice-President and IRO Alexandre Sinzato, CFA Head of Investor Relations Web Site: www.abcbrasil.com.br/ir Email: ri@abcbrasil.com.br Phone: +55 (11) 3170-2186 26
  • 27. 27 Disclaimer The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.