São Paulo, May 11, 2010 – Banco Indusval S.A., financial institution with activities focused on middle market enterprises lending, operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and IDVL4, announces its financial results for the first quarter 2010 (1Q10).

1. 1Q10 Earnings Release
Gradual recovery from default and in profitability
São Paulo, May 11, 2010 – Banco Indusval S.A., financial institution with activities focused on
middle market enterprises lending, operating in the Brazilian market for over 40 years, listed at the
Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and IDVL4,
announces its financial results for the first quarter 2010 (1Q10).
IDVL4: R$ 8.18 per share
Closing: 05/11/2010
Total Shares: 42,475,101 Highlights
Market Cap: R$ 347.4 MM
Loan Portfolio slightly above R$ 1.7 billion, with
Conference Call:
05/12/2010 recovery in loan origination, partially offset by write-
offs.
In English
At: 11 am (US EST)/ 12 am (Brasilia)
Phone: (1 973) 935-8893
Code: 71227373 Volume of operations overdue more than 60 days fell
from 5.9% in 4Q09 to 3.5%, continuing to ease the
In Portuguese
pressure of allowance for loan losses on results.
At: 10 am (US EST)/ 11 am (Brasília)
Phone: (55 11) 2188-0155
Code: Banco Indusval
Total funding came to R$ 1.9 billion, with longer
Website: average maturities.
www.indusval.com.br/ir
Investor Relations Contacts: Net income was R$ 7.3 million in the quarter, up
66% on 4Q09.
Ziro Murata Junior – IR Officer
Maria Angela R. Valente – IR Head
Phone: 55 11 3315-6821
E-mail: mvalente@indusval.com.br
1/18

2. The financial and operating information presented in this report are based on consolidated financials prepared in local currency
(Real), according to Brazilian GAAP.
Key Indicators – R$ MM
Results 1Q10 4Q09 1Q09 1Q10/4Q09 1Q10/1Q09
Income from Financial Intermediation 35.2 27.4 28.4 28.5% 23.9%
Operating Results 10.8 4.2 5.4 157.1% 100.0%
Net Profit 7.3 4.4 8.0 65.9% -8.8%
Balance Sheet 1Q10 4Q09 1Q09 1Q10/4Q09 1Q10/1Q09
Resultados Trimestrais
Loan Portfolio 1,655.6 1,635.9 1,668.7 1.2% -0.8%
Loan Portfolio + Guarantees and L/Cs 1,719.1 1,698.7 1,735.6 1.2% -1.0%
Cash & Short Term Investments 377.3 357.2 424.0 5.6% -11.0%
Securities 979.4 725.0 167.2 35.1% 485.8%
Total Assets 3,048.6 2,730.2 2,337.1 11.7% 30.4%
Total Deposits 1,363.6 1,273.2 801.1 7.1% 70.2%
Foreign Borrowings 408.4 377.4 440.9 8.2% -7.4%
Domestic Borrowings 0.0 0.0 118.4 n.m. -100.0%
Domestic On-lending 108.7 142.6 195.4 -23.8% -44.4%
Shareholders’ Equity 430.7 432.7 451.9 -0.5% -4.7%
Performance 1Q10 4Q09 1Q09 1Q10/4Q09 1Q10/1Q09
1
Free Cash 707.1 695.9 436.0 1.6% 62.2%
2
ROAE 7.0% 4.1% 7.3% 2.8 p.p. -0.3 p.p.
NIM3 7.0% 6.7% 10.6% 0.4 p.p. -3.5 p.p.
4
NPL / Loan portfolio 3.5% 5.9% 4.2% -2.4 p.p. -0.7 p.p.
Basel Index 21.1% 22.5% 25.7% -1.5 p.p. -4.6 p.p.
5
Efficiency Ratio 61.0% 63.2% 44.5% -2.2 p.p. 16.5 p.p.
Other Information 1Q10 4Q09 1Q09
Number of Clients - Corporate Borrowers 680 660 675
Number of Employees 350 333 327
Banco Indusval Multistock (BIM) is a commercial bank with 42 years of experience in the financial markets, focusing on
local and foreign currency loan products for midsized companies. Operating with agility and quality in its services, BIM
has a credit portfolio of 680 companies and a wide range of products designed to meet the specific needs of this market
niche. To guarantee such a level of service, the Bank relies on a network of 11 branches strategically located in regions
with the maximum concentration of midsized companies in Brazil, in addition to an overseas branch and its subsidiary
Indusval Corretora de Valores, the brokerage arm that operates at the São Paulo Stock, Commodities and Futures
Exchange - BM&FBOVESPA. The Bank is a publicly-held financial institution listed at Level 1 Corporate Governance of the
BM&FBOVESPA since July 2007 and voluntarily adopts additional practices specific to companies listed in the Novo
Mercado special trading segment.
1 Short term Investments + Securities (-) Open Market (-) Derivatives
2 Annualized Return on Average Equity
3 Net Interest Margin= Gross Result from Financial Intermediation (except from Allowance for Loan Losses)/ Average Interest Earning
Assets
4 NPL (Non-Performing Loans) - Total outstanding of contracts with one of the installments overdue for more than 60 days
5 Ratio between Operating Expenses and Operating Income. A fall in this index shows improved performance
2/18

3. Management Comments
The improvement in the economic fundamentals in the first quarter of 2010 confirms the
consistency in Brazil’s economic recovery and some improvement in the international scenario,
despite concerns about a few European countries such as Portugal, Ireland, Greece and Spain,
which bring volatility to the markets and uncertainty to the moderate growth projections for the
world economy. Brazil recorded significant Gross Domestic Product growth in the last two quarters,
while the rise in job levels, the real wage bill, workers’ income levels and credit in recent years
increased the purchasing power, thus driving the economy.
In the first quarter of 2010, Banco Indusval Multistock recorded a recovery in its profitability,
posting net income of R$ 7.3 million, up 66% on 4Q09. This is due to the gradual recovery in
revenues, the decline in default rates and the reduction in administrative expenses. The quality of
the loan portfolio still reflects the impacts of the crisis, with an increase in higher-risk operations,
the D-H range – which comprises operations overdue for more than 60 days and those with regular
payments but which, after being renegotiated, were not moved to lower risk ranges as their
fundamentals did not warrant such reclassification. BIM’s strategy is to expand its loan portfolio
gradually as the recovery trend consolidates. In the first quarter, the Bank posted growth in loan
origination, which was partially offset by the write-offs of operations settled in the period or those
that were fully provisioned and written off as bad debts. Funding operations have grown steadily
and our cash position remains solid to meet the expected growth or the obligations maturing
during the year, should there be fresh turbulence.
We reaffirm our confidence that 2010 will be a more positive year, with the recovery and growth in
midsized companies and the hiring of new relationship managers to diversify and expand our client
base. We have sufficient resources and capital to accelerate the pace of business in the coming
months.
Macroeconomic Environment
Generally speaking, despite the uncertainties abroad, the economic recovery in Brazil, which began
in the last quarter of 2009, should further consolidate in 2010. In the quarter ended March 31,
2010, Gross Domestic Product and employment levels grew, while interest rate was maintained.
The concern in the domestic front is due to the increase in inflation caused by the growth in the
monetary circulation and rising commodity prices, which led the government to raise the benchmark
interest rate, the key instrument of its monetary policy, by 0.75 p.p. to reach 9.5% p.a. on April 28.
This increase had already been priced by the market and hence should not significantly affect
corporate loans. However, it should lead to a control in consumption, especially by individuals of
credit-elastic products.
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
GDP Variation (IBGE- Q on previous Q) *2.5% 2.04% -0.91% 0.46 p.p. 2.95 p.p.
Inflation Rate (IPCA – IBGE) 2.06% 1.06% 1.23% 1.00 p.p. 0.17 p.p.
FX Rate Variation (US$/ R$) 2.29% -2.10% -0.93% 4.39 p.p. -1.17 p.p.
Interest Base Rate Variation (Selic) 2.06% 2.09% 2.95% 0.03 p.p. -0.86 p.p.
Individuals Default Rate (BACEN) *7.0% 7.8% 8.4% -0.8 p.p. 0.6 p.p.
Corporates Default Rate (BACEN) *3.6% 3.8% 2.6% -0.2 p.p. 1.2 p.p.
(*) estimate or preliminary figures from the Central Bank of Brazil (BACEN)
3/18

4. Credit in Brazil
Credit Operations in the Financial System
Individuals Corporates
Resources Resources Total Credit/ GDP
Period
Non Total Non Total R$ million %
Earmarked Earmarked
earmarked earmarked
2008 Dec 394 287 138 019 532 306 476 890 218 098 694 988 1 227 294 40.8
Mar 410 968 142 109 553 077 465 180 224 634 689 814 1 242 891 41.0
2009
Dec 469 899 166 131 636 030 484 661 293 704 778 366 1 414 396 45.0
2010 Mar* 487 491 176 586 664 077 486 736 300 965 787 701 1 451 778 45.0
Variation %
In the month 2.0 2.8 2.2 0.2 0.2 0.2 1.1 -
In the quarter 3.7 6.3 4.4 0.4 2.5 1.2 2.6 --
-
In the year 3.7 6.3 4.4 0.4 2.5 1.2 2.6 -
-
In 12 months 18.6 24.3 20.1 4.6 34.0 14.2 16.8 -
4.0 p.p.
* estimate Source: BACEN
Fonte:BACEN
Preliminary data from the Brazilian Central Bank for the quarter ended March 31, 2010, put the
total loan operations in the country’s financial system at R$ 1.45 trillion, which indicates faster
growth in recent months and a credit/GDP ratio stable at 45% since November 2009, due to the
GDP growth since the last quarter of 2009.
Operations contracted with non-earmarked resources (free credit) accounted for 67% of the total
credit in the system, compared to 33% in earmarked credit, which mainly consisted of housing
loans for individuals and BNDES loans for companies. Operations with free credit, which amounted
to R$ 974 billion, increased by 2.1% in the quarter and 11.2% in 12 months, while operations with
earmarked credit, which amounted to R$ 478 billion, grew 3.9% in the quarter and 30.2% in the
year, showing that earmarked credit still accounts for the bulk of the total credit growth. In March,
both with free and earmarked credit operations rose by 1.1%, indicating a potential recovery in the
pre-crisis share between these two credit categories and increased participation of private
institutions in credit volumes.
Free-credit loans continued to be driven by increased consumption by families, which was reflected
in individual loans. In the case of companies, local currency loans grew while those denominated in
foreign currency declined, especially in March. Individual loan operations increased by 4.4% in the
quarter (and 20.1% in 12 months) to R$ 664 billion, led by housing loans, vehicle financing and
payroll-lending, while corporate loans totaled R$ 788 billion, up by 1.2% in the quarter and by
14.2% in 12 months.
BIM focuses on free-credit loans to midsized companies, mainly loan and financing agreements in
the R$ 10,000 to R$ 100 million range which, according to the Central Bank of Brazil, grew 1.2% in
the first two months of the year and 11.6% in the 12 months ended February 2010.
10,0
Default 9,0
8,0
The Central Bank figures for March 2010 7,0
show a drop in default rates, mainly in the %
6,0
individuals segment, which returned to the 5,0
4,0
December 2007 level of 7.0%. Corporate
3,0
defaults stabilized in October and have 2,0
been declining gradually since November. 1,0
Corporates Individuals Total
Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
2006 2007 2008 2009 2010
Fonte: BACEN
4/18

5. Operating Performance
Profitability
Results from Financial Intermediation – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Income from Financial Intermediation 114.4 93.3 117.7 22.7% -2.8%
Loan Operations 61.2 60.7 73.6 0.7% -16.9%
— Loans & Discounted Receivables 52.1 51.0 64.5 2.1% -19.3%
— Financing 6.5 6.0 8.8 8.5% -25.6%
— Other 2.6 3.7 0.3 -30.6% n.m.
Securities 24.3 24.9 23.5 -2.6% 3.1%
Derivative Financial Instruments 1.6 0.0 0.0 - -
Foreign Exchange Operations Result 27.3 7.6 20.5 258.3% 33.1%
Financial Intermediation Expenses 79.2 65.9 89.3 20.2% -11.3%
Money Market Funding 38.8 37.8 31.9 2.6% 21.6%
— Time Deposits 29.5 27.3 18.8 7.7% 56.9%
— Repurchase Transactions 8.3 9.2 8.1 -9.8% 2.5%
— Interbank Deposits 1.0 1.3 5.0 -23.1% -80.0%
Loans, Assignments & Onlendings 28.9 6.4 18.7 351.6% 54.5%
— Foreign Borrowings 26.3 2.2 15.0 n.m. 75.3%
— Domestic Borrowings & Onlendings 2.7 4.2 3.7 -37.3% -27.1%
Derivative Financial Instruments 0.0 5.3 7.0 -100.0% -100.0%
Allowance for Loan Losses 11.5 16.4 31.7 -29.9% -63.7%
Result from Financial Intermediation 35.2 27.4 28.4 28.5% 23.9%
Income from Financial Intermediation detailed in note 15(a) to the financial statements and
summarized above, fell 2.8% in relation to 1Q09, while increasing by 22.7% over 4Q09. This
growth was due to the slight increase in the income from loans and financing, the higher income
from foreign exchange operations, especially in Trade Finance, and the exchange variation on these
operations. As announced at the end of 2009, export financing operations
Gradual
were the first to post growth in our portfolio.
recovery in
revenues Income from Securities Operations in 1Q10 fell slightly by 2.6% from
4Q09, as a result of the oscillation in pre-fixed rates, considering that the
average balance remained practically unchanged between the periods. On
the other hand, Income from Derivative Financial Instruments grew, since Banco Indusval’s
treasury department maintains all its positions pegged to the Interbank Deposit rate. In relation to
1Q09, this income grew by 3%, due to the growth in the volume of average investments, which was
offset by the reduction in the SELIC rate in the periods.
Expenses from Financial Intermediation, detailed in note 15(b) to the financial statements,
corresponded to 69% of the income from financial intermediation in 1Q10 (71% in 4Q09 and 76%
in 1Q09), but were 20% higher than in the previous quarter.
The main reasons for the increase were: (a) the increase of around 8% in expenses with time
deposits (CDBs and DPGEs), which accompanies the increase in funding volumes; and (b) foreign
exchange variation on the foreign loans taken to sustain the expansion of the trade finance portfolio
and those taken from the IFC (A/B Loan).
Note that the foreign exchange variations on Expenses from Financial Intermediation are offset by
Income from Financial Intermediation, both in the Income from Foreign Exchange Transactions
5/18

6. (Trade Finance) and the Income from Derivative Financial Instruments (hedge operations for the
A/B Loan).
On the other hand, the 30% reduction in the Allowance for Loan Losses
Expenses as a result of the gradual improvement in default rates,
contributed to the lower ratio of Expenses from Financial Lower impact of
Intermediation to Income. In the first quarter, expenses with Allowance expenses with
for Loan Losses represented 10% of Income from Intermediation, allowance for
versus 18% in 4Q09 and 27% in 1Q09. Mandatory and complementary loan losses
provisions totaled R$ 110.7 million, equivalent to 6.7% of the Loan
Portfolio as on March 31, 2010, compared with R$ 133.4 million, or
8.2% of the portfolio on December 31, 2009, and R$ 97.8 million, or
5.9% of the portfolio on March 31, 2009.
Net Interest Margin (NIM)
Income from and Expenses with Financial 12.5%
Intermediation, detailed above, resulted in a net 10.6%
9.8%
Income from Financial Intermediation of R$ 35.2 8.5%
million, 28.5% and 23.9% higher than in 4Q09 and 7.0%
6.1% 6.7%
1Q09, respectively. 4.9% 5.1%
5.3%
The net interest margin (allowance for loan loss 4.1%
expenses deducted), though short of our goal, 0.9%
confirms the recovery trend that began in the last NIM GFM
quarter of 2009. This margin still reflects the impact
of defaults on the income from loan operations and 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
the maintenance of higher liquidity in view of the
obligations maturing during the year.
Given the need for lower allowance for loan losses, gross financial margin (GFM) improved
significantly over the previous quarters.
Efficiency Ratio
Efficiency Ratio – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Personnel Expenses 12.4 13.8 12.1 -9.7% 2.8%
Contributions and Profit-sharing 2.5 1.8 1.5 35.7% 71.2%
Administrative Expenses 9.3 9.4 11.7 -0.4% -20.0%
Taxes 3.2 2.4 3.3 32.3% -4.0%
Other Operating Expenses 3.5 4.9 0.1 -28.2% n.m.
A- Operating Expenses Total 30.9 32.2 28.6 -4.1% 8.0%
Gross Income Fin. Intermediation (w/o ALL) 46.7 43.8 60.1 6.6% -22.4%
Income from Services Rendered 2.8 2.8 2.7 0.7% 3.2%
Income from Banking Tariffs 0.2 0.2 0.2 -9.7% 20.4%
Other Operating Income 1.0 4.2 1.3 -76.6% -21.9%
B- Operating Income Total 50.7 51.0 64.3 -0.7% -21.2%
Efficiency Ratio (A/B) 61.0% 63.2% 44.5% -2.2 p.p. 16.5 p.p.
6/18

7. Operating expenses declined 4%, leading to a 2 p.p. improvement in the
Reduction in efficiency ratio in the quarter. Given that this ratio represents expenses
operating over income, the lower the percentage of expenses over operating
expenses income, the higher the efficiency of a financial institution’s operations.
contributes to In relation to the previous quarter, the control over operating expenses
Efficiency was not sufficient to compensate the 21.2% decline in operating income,
especially income from financial intermediation, resulting in a ratio of
61.0% in 1Q10.
Net Profit
Banco Indusval Multistock recorded net income of R$ 7.3 million in 1Q10,
66% higher than in 4Q09, thanks to the increase in Income from Financial 66% increase
Intermediation and the 30% reduction in allowance for loan losses. In in Net Profit
relation to 1Q09, net income fell by 8.8%. Note that the non-operating from 4Q09
income from the sale of 928,000 shares of BVM&FBOVESPA held by
Indusval Corretora added a non-recurring post-tax income of R$ 3.2 million
to the Company’s profit in 1Q09.
Loan Portfolio
Fresh loan originations in the quarter were partially offset by the write-offs of operations amounting
to R$ 34.1 million to bad debts, maintaining the Total Loan Portfolio at R$ 1.7 billion at the close of
1Q10, as detailed below:
Loan Portfolio by Product – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Loan Operations 1,348.3 1,365.6 1,413.9 -1.3% -4.6%
Loans & Discounted Receivables 1,158.9 1,141.3 986.0 1.5% 17.5%
BNDES/ Finame 85.0 116.2 196.0 -26.8% -56.6%
Direct Consumer Credit – used vehicles 12.7 16.2 51.5 -21.6% -75.3%
Financing in Foreign Currency 32.4 23.1 15.5 40.3% 109.0%
Other Financing 22.8 25.5 0.2 -10.6% n.m.
Assignment with Co-obligation 36.5 43.4 61.7 -15.9% -40.8%
FIDC 0.0 0.0 102.9 n.m. -100.0%
Advances on Foreign Exchange Contracts 300.3 270.2 254.6 11.1% 17.9%
Other Loans 7.1 0.0 0.2 n.m. n.m.
DISBURSED CREDIT OPERATIONS 1,655.6 1,635.9 1,668.7 1.2% -0.8%
Guarantees Issued (Guarantees, L/Gs and L/Cs) 63.4 62.9 66.9 0.8% -5.2%
TOTAL 1,719.1 1,698.8 1,735.6 1.2% -0.9%
Allowance for Loan Losses (110.7) (133.4) (97.8) -17.0% 13.2%
Loan operations in reais represented 80% of the loan portfolio in the quarter, compared to 20% of
foreign currency loans (trade finance), back to the traditional portfolio mix with the recovery in
export financing operations.
7/18

8. Loan Portfolio by Currency – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Local Currency - Real 1,322.9 1,342.6 1,398.6 -1.5% -5.4%
Foreign Currency 332.7 293.3 270.1 13.4% 23.1%
TOTAL 1,655.6 1,635.9 1,668.7 1.2% -0.8%
Foreign currency loans comprise trade finance operations, which are booked in reais and reflect the
growth in operations and the foreign exchange variation in the period. The portfolio balance in US
dollars increased from US$ 173.7 million in 4Q09 and US$ 116.7 million in 1Q09 to US$ 186.9
million in 1Q10, up 7.6% and 60.2%, respectively.
Loan Portfolio by Client Segment – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Middle Market 1,557.5 1,529.7 1,595.6 1.8% -2.4%
Retail 28.2 33.8 51.5 -16.6% -45.3%
Other 69.9 72.4 21.6 -3.4% 223.6%
TOTAL 1,655.6 1,635.9 1,668.7 1.2% -0.8%
Banco Indusval Multistock focuses on midsized and upper-middle companies, which represent 94%
of its Loan Portfolio. Retail operations account for around 2% and Other Credits, relating to the
acquisition of individual loan portfolio with risk covered by the assigning bank, accounted for 4% of
the portfolio. Note that the Retail portfolio represents the remaining balance of the ‘Direct
Consumer Credit – Used Vehicles’ account, which was discontinued in October 2008 and includes
loans assigned with substantial risk retention.
Loan Portfolio by Industry
Food, Beverage and Tobacco 21.7%
Agribusiness 13.1%
Civil Construction 10.3%
Automotive 5.3%
Transportation & Logistics 4.8%
Metal Industry 4.3%
Education 4.1%
Financial Institutions 3.8%
Chemical & Pharmaceutical 3.8%
Textile, Apparel and Leather 3.8%
Individuals 3.6%
Financial Services 2.9%
Oil and Biofuel 2.7%
Paper and Pulp 1.4%
Other sectors * 14.3%
TOTAL 100.0%
(*) Individual participation of less than 1.4%
8/18

9. Loan Portfolio Distribution
By Economic Activity By Segment
Individuals Other
9% Retail 4%
2%
Services
25%
Industrial
54% Middle
Market
94%
Commerce
12%
By Product By Client Concentration
Guarantees Other
issued 5% 10 largest
4% Other 18%
27%
Trade
Finance
19%
BNDES
Onlending 11 - 60
Loans &
5% 31%
Discounts
67% 61 - 160
24%
By Tenor By Guarantee
Vehicles
Real State
2% Aval on PN
+360 days 10%
19%
29% Up to 90 Monitored
days Pledge
37% 10%
Pledge /
Securities
Lien
3% 6%
Receivables
181 to 360 50%
14%
91 to 180
20%
Quality of Loan Portfolio – R$ MM
1Q10 4Q09 1Q09
% Allowance Allowance Allowance
Loan Loan Loan
Rating Required for Loan for Loan for Loan
Portfolio Portfolio Portfolio
Provision Losses Losses Losses
AA 0.0% - - - - 42.3
A 0.5% 515.2 2.6 488.8 2.4 472.9 2.4
B 1.0% 465.9 4.7 471.2 4.7 521.6 5.2
C 3.0% 449.7 13.5 494.3 14.8 497.8 14.9
D 10.0% 101.4 10.1 63.6 6.4 32.6 3.3
E 30.0% 53.6 16.1 26.2 7.9 51.1 15.3
F 50.0% 30.4 15.2 20.2 10.1 15.1 7.6
G 70.0% 7.0 4.9 6.2 4.3 8.2 5.7
H 100.0% 32.4 32.4 65.4 65.4 27.2 27.2
Compl. Allowance - - 11.2 - 17.3 16.2
Total - 1,655.6 110.7 1,635.9 133.4 1,668.7 97.8
9/18

10. Allowance for loan losses totaled R$ 110.7 million and consists of: (a) provisions regulated by
Resolution 2682 of the Central Bank of Brazil, in the amount of R$ 99.5 million in the quarter
(against R$ 116.1 million in 4Q09 and R$ 81.6 million in 1Q09); and (b) complementary provisions
of 0.7% of the loan portfolio (around 1% in 4Q09 and 1Q09) in the amount of R$ 11.2 million.
Complementary provisions are maintained for potential difficulties in the payment of renegotiated
loans and in the aging of loans overdue more than 60 days classified between D and H.
Although permitted by law, BIM adopts the practice of not revising upwards the reclassification of
renegotiated overdue loans until the credit analysis of the economic and financial fundamentals of
the debtor or the strengthening of collaterals on the operations justify such reclassification.
Therefore, despite the reduction in the volume of overdue loans, the loans classified between D and
H increased in the quarter. However, R$ 166.4 million out of the R$ 224.8 million classified in this
range is in the regular payment schedule, and only R$ 58.4 million is overdue more than 60 days
and makes up the default ratio. This ratio is calculated by summing the total of loans overdue more
than 60 or 90 days, as applicable (NPL 60 days or NPL 90 days) and dividing it by the loan portfolio
volume.
Default by Segment – R$ MM
In R$ million Overdue Contracts Outstanding (NPL)
Outstanding
> 60 days % > 90 days %
Middle Market 1,557.5 49.1 3.2% 39.6 2.5%
Retail 28.2 9.2 32.8% 7.4 26.1%
Financial Institutions – Acquired Loans 69.9 - 0.0% - 0.0%
TOTAL 1,655.6 58.4 3.5% 47.0 2.8%
Allowance for Loan Losses 110.7 - - - -
Allowance for Loan Losses / NPL - 189.7% - 235.5% -
Allowance for Loan Losses / Loan Portfolio 6.7% - - - -
The above table shows that allowance for loan losses on March 31, 2009 corresponded to 6.7% of
the loan portfolio. Loans overdue more than 60 days represent 3.5% (5.9% in 4Q09), while those
overdue more than 90 days correspond to 2.8% (5.4% in 4Q09), showing a recovery in the
scenario despite the write-off of R$ 34.1 million (around 2% of the loan portfolio on December 31,
2009) as bad debts. These refer to loans classified as H and hence are fully provisioned, for over
180 days. These write-offs reflect the period between the worsening of the global financial crisis and
the closing date of the calculation period.
As mentioned in the section on Macroeconomic Environment, data from the Central Bank of Brazil
shows that in general, corporate defaults fell gradually during the quarter and, if the
macroeconomic expectations continue, should drop further in the coming months.
10/18

11. Funding
Total Funding – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Total Deposits 1,363.6 1,273.2 801.1 7.1% 70.2%
Time Deposits 698.5 666.0 603.4 4.9% 15.8%
Time Deposits bearing FGC* Guarantee (DPGE) 572.0 505.8 0.0 13.1% n.m.
Agribusiness Letters of Credit (LCA) 8.7 10.6 17.7 -17.9% -51.0%
Interbank Deposits 42.5 51.1 129.2 -16.8% -67.1%
Demand Deposits and Other 42.0 39.7 50.8 5.8% -17.3%
Domestic Onlending 108.7 142.6 195.4 -23.8% -44.4%
Domestic Borrowings 0.0 0.0 118.4 n.m. -100.0%
Foreign Borrowings 408.4 377.4 440.9 8.2% -7.4%
Trade Finance 296.8 267.9 305.5 10.8% -2.8%
IFC A/B Loan 111.6 109.5 135.4 1.9% -17.5%
TOTAL 1,880.7 1,793.2 1,555.8 4.9% 20.9%
Funding volume has increased moderately, especially Deposits which represented 72% of total
funding. Time Deposits with Special Guarantee (DPGE) increased by 13.1% in the quarter, thanks
to longer terms, established maturity dates and lower costs than in foreign funding. At the close of
the quarter, the average term of this type of funding was 692 days, with average term of 937 days
from the issue date. Funding via the issue of CDBs grew 4.9%, with average term of 363 days
(average issue term of 581 days) as of March 31, 2010, at costs lower than for DPGEs, since they
are not guaranteed by the Credit Guarantee Fund and their maturities are slightly shorter. The
average term for funding (CDB+DPGE+LCA+CDI) was 497 days on March 31, 2010, versus 485
days on December 31, 2009.
Deposits
By Investor By Tenor
Brokerage
firms Demand
Deposits
Banks 2% 91 - 180 181 - 360
3% 13% 7%
3%
Institutional
Individuals Investors
12% 56%
Corporates <90 days
24% 34% > 360 days
46%
Funding in reais represented 78% of total funding, while foreign resources corresponded to 22%.
Foreign loans grew 8% from 4Q09, due to the renewed growth in export financing, which increased
the trade finance portfolio and, consequently, funding volumes.
11/18

12. Liquidity
Free Cash Assets and Liabilities Management (GAPS)
R$ Million
733
696 708 674 659
516
436
375
332
245
127
1Q09 4Q09 1Q10 9 0 d ays 1 8 0 d ays 3 6 0 d ays A b o ve 3 6 0 d ays
As s e ts Li abilities
On March 31, 2010, Cash totaled R$ 1.3 billion and, excluding Money Market Funding (R$ 605.6
million) and Derivatives (R$ 43.9 million), resulted in free cash of R$ 707.1 million, equivalent to
52% of total deposits and 164% of shareholders’ equity. The maintenance of this liquidity provides
the security for future business development, since the Bank is prepared for growth if the current
prospects for domestic economic and lower default in 2010 are maintained. However, if this
scenario does not materialize, the Bank is yet prepared to meet its obligations maturing during the
year.
Capital Adequacy
The Basel Accord requires banks to maintain at least 8.0% of the capital weighted by the risk in their
operations. However, the Central Bank of Brazil has stipulated that banks operating in the country
should maintain a minimum percentage of 11.0%, calculated according to the Basel Accord
regulations, which provides greater security to Brazil’s financial system against oscillations in
economic conditions.
The following table shows Banco Indusval Multistock’s position in relation to the minimum capital
requirements of the Central Bank:
Capital Adequacy – R$ MM
1Q10 4Q09 1Q09 1Q10/ 4Q09 1Q10/ 1Q09
Total Capital 443.1 451.0 471.6 -1.7% -6.0
Required Capital 231.4 220.2 202.0 5.1% 14.6%
Margin over Required Capital 211.7 230.8 269.6 -8.3% -21.5%
Basel Index 21.1% 22.5% 25.7% -1.4 p.p. -4.6 p.p.
Risk Ratings
Agency Classification Observation Last Report
B+ / Positive / B Foreign Currency
B+ / Positive / B Local Currency October/2009
brBBB+/ Positive /brA-3 Local Scale – Brazil
BBB+/ Stable/ F2 Local Scale – Brazil November/2009
10.71 RiskBank Index
Aprill/2010
Ranking: 29 December 2009
12/18

13. Indusval Multistock Corretora de Valores
Indusval S.A. Corretora de Títulos e Valores Mobiliários is undergoing an accelerated process of
modernization and business restructuring, after the strategic alliance between Banco Indusval and
Luis Fernando Monteiro de Gouvêa and Alexandre Atherino in June 2009. This process included
shifting its office to a new address at the Vila Olímpia district, which is closer to its target market.
More important, however, was the hiring of teams with market expertise to expand the product
range and the implementation of specialized tools for business management, operational platforms
for stock and derivatives trading, targeted at institutional clients and qualified individuals, and the
operations via DMA (Direct Market Access). A new homebroker system, accessible through the
Broker’s new website, is in construction.
The strengthening of the technological structure for contracting, executing and
controlling the businesses resulted in the obtaining, in February 2010, of the Execution
Broker seal from the BM&FBOVESPA, which attests to the qualification of its
professionals and of its processes and systems to trade large volumes on the BM&F
market with agility and operational efficiency.
This step was essential for repositioning Indusval Multistock Corretora de Valores in the market, and
the new structure and strategy have already brought the initial results – at the end of 2008, the
Broker was ranked 52nd on BM&F market’s general ranking, improving to 44th in the end of 2009
and 17th in March 2010.
The new strategic management seeks to expand the institutional and qualified individuals client
base and extend its services to the retail segment. Based on the tradition and strength of the
Indusval brand, the Broker plans to become a liquidity center for institutional clients. In 2009, it
even launched fixed-income products by way government bonds, targeted at the Treasury
departments of financial institutions.
Capital Market
Total Shares
On March 31, 2010, Banco Indusval S/A had a total of 42,475,101 shares, of which 27,000,000
were common shares (IDVL3) and 15,475,101 were preferred shares (IDVL4).
Share Buyback Program and Treasury Shares
As approved by the Board of Directors’ Meeting held on September 17, 2009, the 3rd Share
Buyback Program for the acquisition of up to 1,458,925 preferred shares issued by the company is
effective till September 16, 2010. Indusval S.A. CTVM is the intermediary for this program. As of
March 31, 2010, a total of 829,279 preferred shares had been acquired under of this program and
are held in treasury, thus reducing the number of outstanding shares to 41,645,822.
Free Float
Excluding from the outstanding shares, the 18,154,220 shares owned by the controlling group and
the 2,733,939 shares owned by the management, Banco Indusval has a free float of 20,757,663,
representing 48.87% of its capital stock. Of the free float, 7,309,458 common shares are owned by
the Ribeiro and Ciampolini families, who are not controlling shareholders. Deducting these from the
free float brings the preferred shares to 13,448,205, or 31.66% of the total capital, traded on the
BM&FBOVESPA.
13/18

14. Stock Option Plan
Since the launch of the Plan on March 26, 2008, the Executive Board has been granted options to
acquire 390,963 shares relating to the results of 2008. No option or profit-sharing has been granted
relating to the results of the first half of 2009, and 525,585 options were granted to the Executive
Board and Administrative Superintendents in February 2010 for the fiscal year 2009, bringing the
total options distributed to 916,521. No option has been canceled or exercised so far. It is worth
mentioning that the Executive Board has not received any cash bonus for 2009.
Shareholder Remuneration
On March 31, 2010, the Bank paid Interest on Equity in the amount of R$ 6.3 million related to
1Q10, as advance payment of the minimum mandatory dividend for 2010. This amount corresponds
to R$ 0.15015 per share or R$ 0.12763 net of withholding income tax.
27,008
25,470
6.693
6.369
15,858 6.622
6.512
11,446
10,167
R$ Million
6.876
6.550
6.039 6.817 6.257
2005 2006 2007 2008 2009 2010
1Q 2Q 3Q 4Q
Shares Performance
The shares of Banco Indusval Multistock (IDVL4) closed 1Q10 at R$ 8.55, for market cap of R$
359.5 million and Shareholders’ Equity of R$ 430.7 million, resulting in a Market Value/Book Value
ratio of 0.83. The IDVL4 shares appreciated 3.1% in 1Q10 and 57.2% in twelve months. After
adjusting for earnings, the share appreciation was 73.3% in 12 months. The Ibovespa Index
appreciated 2.6% in the quarter and 71.9% in 12 months, while the IGC and ITAG indexes rose
78.9% and 79.9%, respectively in the year.
From 31.12.2008 From 31.12.2009
250 130 IBOVESPA IDVL4
IB OVESP A IDVL4
225
120
200
110
175
150 100
125
90
100
80
75
09 /09
19 /10
29 /10
08 /10
18 /10
28 /10
10 /10
20 10
30 /10
09 /10
19 /10
29 /10
09 /10
10
08
09
09
09
09
09
09
09
09
10
10
10
3/
5/
2
1
1
1
2
2
2
3
3
4
4
4
2/
2/
3/
5/
6/
8/
9/
1/
2/
2/
3/
5/
/1
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/1
/0
/0
/0
/0
/0
/0
/1
/1
/0
/0
/0
30
30
13
30
14
28
12
26
10
25
08
25
09
14/18

15. Liquidity and Trading Volume
The preferred shares of Banco Indusval Multistock (IDVL4) were traded in 100% of the sessions in
1Q10 and in the last 12 months. In 1Q10, a total of 2,330,300 shares were traded over 2,311
transactions on the spot market, for total volume of R$ 20,032,642.00. In 12 months, around
20,871,400 shares (20,151,700 in 2009) were traded in 16,933 transactions (15,189 in 2009) on
the spot market, for total volume of R$ 160,842,031.00 (R$ 149,614,050.00 in 2009),
demonstrating the improved liquidity of IDVL4 shares with the diversification of the shareholding
base.
Dispersed Shareholding Structure
Distribution of Preferred Shares by type of investor:
03/31/2010 12/30/2009
# #
TYPE OF INVESTOR Preferred % Pref. % Total Preferred % Pref. % Total
Inv. Inv
Controlling Shareholders 4 1,038,047 6.7% 42.7% 4 1,052,147 6.8% 42.8 %
Management 10 159,570 1.0% 6.4% 10 159,570 1.0% 6.4%
Family Members 12 747,131 4.8% 18.9% 12 747,131 4.8% 19.0%
Brazilian Inst. Inv. 101 6,300,018 40.7% 14.8% 56 5,985,639 38.7% 14.1%
Foreign Investors 11 4,390,625 28.4% 10.3% 14 4,550,725 29.4% 10.7%
Brazilian Corporates 14 143,600 0.9% 0.3% 16 115,509 0.7% 0.3%
Individuals 695 1,866,831 12.1% 4.4% 971 2,437,380 15.7% 5.7%
Treasury - 829,279 5.4% 1.9% - 427,000 2.8% 1.1%
TOTAL 901 15,475,101 100% 100% 1,083 15,475,101 100% 100%
15/18

16. BALANCE SHEET
R$ '000
Assets 03/31/2009 12/31/2009 03/31/2010
Current 1,928,879 2,243,031 2,516,462
Cash 34,173 4,051 2,949
Short-term interbank investments 389,870 353,143 374,362
Open market investments 342,296 292,897 311,163
Interbank deposits 47,574 60,246 63,199
Securities and derivative financial instruments 163,732 724,906 975,295
Own portfolio 90,495 553,778 443,867
Subject to repurchase agreements 21,777 108,200 398,223
Linked to guarantees 36,761 42,478 93,303
Derivative financial instruments 14,699 20,450 39,902
Interbank accounts 11,526 1,818 4,235
Payment and receipts pending settlement 7,348 - 940
Restricted credits - Deposits with the Brazilian Central Bank 4,178 1,818 3,295
Loans 938,329 809,685 782,771
Loans - private sector 946,807 817,661 789,212
Loans - public sector 28,115 24,559 21,767
(-) Allowance for loan losses (36,593) (32,535) (28,208)
Other receivables 370,540 300,286 337,075
Foreign exchange portfolio 379,886 294,273 324,835
Income receivables 73 90 642
Negotiation and intermediation of securities 3,242 4,401 17,033
Sundry 6,276 14,741 3,708
(-) Allowance for loan losses (18,937) (13,219) (9,143)
Other assets 20,709 49,142 39,775
Other assets 19,976 49,318 40,499
(-) Provision for losses (708) (998) (1,420)
Prepaid expenses 1,441 822 696
Long term 394,523 473,952 518,989
Marketable securities and derivative financial instruments 3,465 69 4,083
Linked to guarantees 72 34 36
Derivative financial instruments 3,393 35 4,047
Interbank Accounts - 11,207 10,681
Pledged Deposits - Caixa Economica Federal - 11,207 10,681
Loans 335,111 396,617 427,513
Loans - private sector 356,357 472,449 497,331
Loans - public sector 20,925 7,538 3,479
(-) Allowance for loan losses (42,171) (83,370) (73,297)
Other receivables 53,736 64,437 75,332
Trading and Intermediation of Securities - 40 74
Sundry 53,849 68,667 75,323
(-) Allowance for loan losses (113) (4,270) (65)
Other rights 2,211 1,622 1,380
Prepaid Expenses 2,211 1,622 1,380
Permanent 13,697 13,219 13,104
Investments 1,908 1,686 1,686
Other investments 1,908 1,686 1,686
Property and equipment 11,789 11,533 11,418
Property and equipment in use 2,173 2,173 2,179
Revaluation of property in use 3,538 3,538 3,538
Other property and equipment 12,016 12,290 12,379
(-) Accumulated depreciation (5,938) (6,768) (6,970)
Leasehold Improvements - 300 292
TOTAL ASSETS 2,337,099 2,730,202 3,048,555
16/18

17. R$ '000
Liabilities 03/31/2009 12/31/2009 03/31/2010
Current 1,423,103 1,642,127 1,895,649
Deposits 545,876 709,240 725,274
Cash deposits 48,280 39,409 41,707
Interbank deposits 129,166 51,101 42,510
Time deposits 365,900 618,395 640,801
Other 2,530 335 256
Funds obtained in the open market 137,138 365,804 605,650
Own portfolio 21,753 107,885 395,980
Third party portfolio 115,385 257,919 209,670
Funds from securities issued or accepted 14,984 10,559 8,665
Agribusiness Letter of Credit 14,984 10,559 8,665
Interbank accounts 476 - 476
Receipts and payment pending settlement 476 - 476
Interdepartamental accounts 27,652 15,906 9,947
Third party funds in transit 27,652 15,906 9,947
Borrowings 425,836 356,879 389,450
Domestic Borrowings 118,412 - -
Foreign borrowings 307,424 356,879 389,450
Onlendings 120,457 65,248 42,074
BNDES 94,328 43,127 19,569
FINAME 26,129 22,121 22,505
Federal Treasure - -
Other liabilities 150,684 118,491 114,113
Social and statutory liabilities 1,237 3,070 2,352
Collection and payment of taxes and similar charges 911 391 818
Foreign exchange portfolio 65,427 25,671 22,164
Taxes and social security contributions 15,982 19,174 2,932
Negotiation and intermediation securities 36,559 29,073 24,155
Derivative financial instruments 19,912 34,946 55,228
Sundry 10,656 6,166 6,464
Long Term 461,938 655,097 721,751
Deposits 237,490
- 553,392
- 629,625
-
Time deposits 237,490 553,392 629,625
Funds from securities issued or accepted 2,703 - -
Agribusiness Letter of Credit 2,703 - -
Loan obligations 133,445 20,546 18,984
Foreign loans 133,445 20,546 18,984
Onlending operations - Governmental Bureaus 74,905 77,328 66,663
Federal Treasure - - 19,299
BNDES 16,121 6,911 3,161
FINAME 58,784 44,101 39,621
Other Institutions - 26,316 4,582
Other liabilities 13,395 3,831 6,479
Taxes and social security contributions 12,177 2,904 5,815
Derivative financial instrument 1,213 745 482
Sundry 5 182 182
Future results 166 284 423
Shareholders' Equity 451,892 432,694 430,732
Capital 370,983 370,983 370,983
Capital Reserve 304 779 1,016
Revaluation reserve 2,046 1,995 1,978
Profit reserve 79,870 62,217 63,322
Asset valuation Adjustment 900 100 331
(-) Treasury stock (3,427) (3,380) (6,898)
TOTAL LIABILITIES 2,337,099 2,730,202 3,048,555
17/18

18. INCOME STATEMENT
R$ '000
1Q09 4Q09 1Q10
Income from Financial Intermediation 117,658 93,254 114,386
Loan operations 73,599 60,703 61,153
Income from securities 23,534 24,926 24,272
Income from derivative financial instruments - - 1,638
Income from foreign exchange transactions 20,525 7,625 27,323
Expenses from Financial Intermediaton 89,277 65,897 79,167
Money market funding 31,857 37,823 38,792
Loans, assignments and onlendings 18,708 6,414 28,923
Income from derivative financial instruments 6,975 5,251 -
Allowance for loan losses 31,737 16,409 11,452
Gross Profit from Financial Instruments 28,381 27,357 35,219
Other Operating Income (Expense) (23,014) (23,152) (24,429)
Income from services rendered 2,744 2,811 2,831
Income from tariffs 162 216 195
Personnel expenses (12,079) (13,756) (12,422)
Other administrative expenses (11,666) (9,369) (9,331)
Taxes (3,320) (2,409) (3,188)
Other operating income 1,267 4,237 990
Other operating expense (122) (4,882) (3,504)
Operating Profit 5,367 4,205 10,790
Non-Operating Profit 5,303 168 (16)
Earnings before taxes ad profit-sharing 10,670 4,373 10,774
Income tax and social contribution (1,204) 1,901 (947)
Income tax (7,675) 3,219 162
Social contribution (4,552) 1,763 97
Deferred fiscal assets 11,023 (3,081) (1,206)
Contributions and Equity (1,450) (1,829) (2,482)
Net Profit for the Period 8,016 4,445 7,345
18/18