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  • 1. Conference Call 2Q10 Results 0
  • 2.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Result from Operations Indusval Multistock Corretora de Valores Share Performance 1
  • 3. Total Credit Volume and Segmentation Volume of Credit Operations R$ billion 1,529 1,410 1,227 Credit to individuals growth continues 32% 33% 936 29% supported by payroll lending, vehicle and real state financing. 29% In Corporate Credit earmarked resources 733 from BNDES still stand out. 607 67% 71% 71% 68% Public institutions account for 42.3% of total 2005 2006 2007 2008 2009 Jun/10 loans in the financial system Nonearmarked Resources Earmarked Resources Variation% Individuals Corporate Non Non Total Earmarked Earmarked Credit Jun/10 earmarked Total earmarked Total Resource Resources Resource Resources In the month 0.9 1.3 1.0 2.6 3.1 2.8 2.0 In the quarter 3.9 6.0 4.5 5.8 6.3 6.0 5.3 In the year 7.6 12.5 8.9 5.6 10.6 7.5 8.1 In 12 months 16.4 26.9 19.1 10.2 40.7 20.3 19.7 Source: Central Bank of Brazil – Credit Information System - SCR 2
  • 4. Credit Default Ratios Stabilized in Corporate Credit and continuous decline in credit to Individuals 10 9 8 7 6.6% 6 % 5 5.0% 4 3.6% 3 2 Corporate Individuals Total Source BACEN 1 0 Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2006 2007 2008 2009 2010 Default Rate on Loans to Individuals: Fast retreat from June 2009. Default Rate on Corporate Loans: Accelerated increase until September/09, with slow decline from November 2009 to March 2010, when stabilized at 3.6% 3
  • 5.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Result from Operations Indusval Multistock Corretora de Valores Share Performance 4
  • 6. Credit Loans over R$ 1.7 billion * * Including guarantees issued and L/Cs Local Currency Loans Trade Finance R$ Million R$ Million -3.7% 1,460.0 1,405.4 1,385.7 +33.5% 333.3 357.2 267.5 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10  Local currency loans maintain 80%  88% export financing (ACC/ ACE) participation in total loan portfolio  L/Cs and Import financing respond for 12% of  Prevalence of Working Capital Loans and Trade Finance business Discounts = 68% of Total Loan Portfolio  In foreign currency, portfolio growth of 3% in the  Guarantees issued in local currency represent only 4.7% of the portfolio in Reais quarter and 41% in 12 months: • US$ 136.6 million in 2Q09 • US$ 186.9 million in 1Q10 • US$ 192.1 million in 2Q10 Credit Assignment Guarantees issued and L/Cs 5
  • 7. Credit Portfolio Breakdown By Economic Activity By Currency Individuals Finance 8% Interm. Foreign 1% Currency 21% Services 23% Industry 57% Local Currency Commerce 79% 11% By Client Concentration By Tenor The average of contracts final tenors is 451 days 10 largest Above 360 Other 19% days 25% 28% Up to 90 days 38% 11 to 60 181 to 360 61 to 160 32% 15% 24% 91 to 180 19% 6
  • 8. Loan Portfolio breakdown by Industry FOOD, BEVERAGE AND TOBACCO AGRIBUSINESS 12% HEAVY CONSTRUCTION 22% 1% 1% CHEMICAL AND PHARMACEUTICA 3% AUTOMOTIVE 3% TRANSPORTATION & LOGISTICS EDUCATION 3% TEXTILE, CLOTHING & LEATHER METAL INDUSTRY 3% FINANCIAL INSTITUTIONS 4% 15% OIL AND BIOFUEL 4% FINANCIAL SERVICES 4% INDIVIDUALS 4% 10% 5% 5% INTERNATIONAL TRADE PAPER & PULP OTHER INDUSTRIES 7
  • 9. Developments in Loan Portfolio Quality Asset Quality Risk Rating Collateral Structure - Middle Market D-H Vehicles Real State 12% 10% 2% Aval PN 21% A Monitored 33% Pledge 11% Pledge/Lien Securities 6% 4% C 27% B Receivables 28% 46% NPL(*) / Total Loan (%) Allowance for Loan Losses (*) Total amount of contracts with any installment overdue above 60 days 6.9 118.2 110.7 107.8 3.5 2.6 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 Provisions of 6.4% of Loan Portfolio ensure good coverage = 51% of D-H and 245% of NPL 60 days 8
  • 10.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Result from Operations Indusval Multistock Corretora de Valores Share Performance 9
  • 11. Stable volumes, Longer tenors Total Funding Funding Breakdown R$ Million BNDES +6.1% Onlending Foreign 5% 1,880.7 1,880.6 Borrowings 1,772.3 22% Time Deposits Interbank 40% Deposits 2% Demand Deposits 2% LCA 1% DPGE(*) 2Q09 1Q10 2Q10 28%  Predominance of local currency funding  Time Deposits (CDs + DPGEs) equivalent to  73% in Deposits 68% of total funding  16% Trade Finance lines  Lengthening of average term to maturity of total  6% IFC A/B Loan deposits to 593 days in the 2Q10 from 494 days  5% BNDES onlending lines in the 1Q10:  CDBs: R$ 743.8 MM - 382 days  DPGEs: R$ 525.4 MM - 946 days  Interbank Deposits: R$ 45.7 MM - 142 days (*) Time Deposits insured by Fundo Garantidor de Crédito (FGC) 10
  • 12. Good Liquidity maintained Free Cash (*) R$ Million  Management of liquidity, interest rate, currencies and tenor 735,2 mismatch risks is our Treasury’s 707,9 695,5 main task  Free Cash:  51% of Total Deposits  162% of Shareholder’s Equity 2Q09 1Q10 2Q10 Assets and Liabilities Management R$ Million 720,1 (*) Free Cash = 586,4 558,5 533,1(Cash + Liquid Financial Assets + Securities + Derivatives) 382,7 (-) 306,8 293,2 285,8 (Open Market Funds + Derivatives) 90 days 180 days 360 days Above 360 days Assets Liabilities 11
  • 13.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Results from Operations Indusval Multistock Corretora Share Performance 12
  • 14. Financial Intermediation Profit stands complementary provisions Income from Financial Intermediation Gross Profit from Financial intermediation R$ Million R$ Million +7.8% 114,4 -3.5% 110,4 102,3 +2.9% -6.1% 32.1 35.2 33.1 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10  3.5% drop in Income from Financial  Gross Profit from Financial Intermediation Intermediation in the quarter derived from lower equivalent to 30% of Income from Financial FX variation volume on Trade Finance operations Intermediation in the 2Q10 towards 31% in the 1Q10 and 2Q09.  The FX rate effect also reflected in the reduction in Expenses with Foreign Borrowings  Increase of 10.4% in the expenses of Allowance for Loan Losses to maintain the volume of complementary allowance for loan losses in R$ 11 million and give good coverage to exposure of the loan portfolio 13
  • 15. Efficiency keeps evolving Net Operating Expenses Efficiency Ratio R$ Million In % +9.6 p.p. -5.8 61.0% p.p. 55.2% -14.6% 45.6% -14.3 24.5 24.4 % 20.9 S&P Model 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10  Net Operating Expenses reduced to 63% of  Decrease of net operating expenses offset a Result from Financial Intermediation small reduction in results of financial compared to 69% in 1Q10 and 76% in 2Q09, intermediation, with favorable impact on the as result of: efficiency ratio in the quarter.  Strict control of operating expenses  Maintaining this trend should remain as the  Increased contribution of other revenues, positive scenario persist. operating, including positive exchange variation on arbitrage operations. 14
  • 16. Recovering profitability Net Profit Net Interest Margin (NIM) R$ Million NIM GIM +2.5% 8.3 6,8% 8.1 7.3 +13.7% 4,9% 2Q09 1Q10 2Q10 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 GIM= Gross Interest Margin  Net Profit progressed due to reduction of:  NIM 0.2 p.p. drop in the quarter reflects:  14% in Net Operating Expenses; and  25% in Profit Sharing - management and employees • The increase of Trade Finance share in the average interest bearing assets;  Compensating: and  6% drop in Financial Intermediation Result; and  25% increase in Income Tax and Social Contribution • Maintenance of liquidity levels  Recurring Profit in the quarter was 22% higher than 2Q09 which had a non-recurring net income of R$ 1.3 million 15
  • 17.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Result from Operations Indusval Multistock Corretora de Valores Share Performance 16
  • 18. Investment plan maintained Challenging market in 2Q10 The brokerage firm modernization process keeps its pace with investments in technology and people to develop new products and markets within its strategic targets: • To broaden the institutional clients and qualified individual investors base • To expand to the retail segment • To become an institutional clients’ liquidity center Repositioning in the BM&F Ranking • 2Q09: 53th position • 1Q10: 17th position • 2Q10: 33th position 17
  • 19.  Credit Behavior in Brazil Loan Portfolio Funding and Liquidity Result from Operations Indusval Multistock Corretora de Valores Share Performance 18
  • 20. Capital Distribution and Free Float On August 10, 2010, the Board of Directors of Banco Indusval Multistock approved:  The cancellation of 1,262,117 preferred shares held in treasury # of Shares # of Shares Treasury # of Shares Class 06.30.2010 Cancelled 08.11.2010 Common 27,000,000 -0- 27,000,000 Preferred 15,475,101 (1,262,117) 14,212,984 TOTAL 42,475,101 (1,262,117) 41,212,984 Current free float: # of Shares Controlling # of Shares Free Class Management 08.11.2010 Shareholders Free Float Float Common 27,000,000 (17,116,173) (2,574,369) 7,309,458 27.07% Preferred 14,212,984 (1,038,047) (159,570) 13,015,367 91.52% TOTAL 41,212,984 (18,154,220) (2,733,939) 20,324,825 49.32%  The closure of the 3rd share buyback program; and,  The opening of the 4th preferred shares buyback program for the acquisition of up to 1,301,536 preferred shares in force until Aug.09,2011 to be maintained in treasury, future sale or cancellation, without capital reduction. 19
  • 21. Shareholder Remuneration BIM’s practice for shareholder remuneration in the last years is the quarterly anticipated payment of Interest on Equity 27.0 25.5 6,7 6,4 15.8 6,6 6,5 6,1 12.6 11.6 2,6 10.1 6,9 2,2 6,6 6,3 3,0 2,4 5,1 R$ MM 2,9 2,7 2,3 6,0 6,8 6,3 2,9 2,8 2,3 2005 2006 2007 2008 2009 2010 1Q 2Q 3Q 4Q Remuneration per share 2005 2006 2007 2008 2009 1H2010 R$ 0,3657 R$ 0,3249 R$ 0,3688 R$ 0,5994 R$ 0,6423 R$ 0,3022 20
  • 22. 30 / 1 1 1 06 12 1 80 90 00 10 20 30 /0 /09 IGC 13 1 / 1 ITAG IBOV IDVL4 20/01 0 / /1 27 01 0 /0 /10 03 1 / /1 IDVL4 X IBOV - 2010 10 02 / 0 1 17/02 0 / /1 24 02 0 / /1 Stock Performance 03 02 0 / /1 10 03 / 0 1 IDVL4 (adjusted to earnings) 17/03 0 IB OVESP A / /1 24 03 0 Performance (until Aug. 06.2010) / /1 31 03 0 / /1 07 03 / 0 / 1 14 04 0 IDVL4 / /1 21 04 0 / /1 28 04 0 / /1 9.72% 8.25% 8.25% 10.66% 10.16% 05 04 / 0 / 1 In 30 days 12 05 0 / /1 19 05 0 / /1 26 05 0 / /1 02 05 / 0 / 1 09 06 0 / /1 16 06 0 / /1 23 06 0 4.52% 4.57% 0.18% -0.72% -3.50% In 2010 / /1 30 06 / 0 / 1 07 06 0 / /1 14 07 0 /1 21/07 0 / /1 28 07 / 0 / 1 04 07 0 /0 /10 8/ 7.24% 29.94% 29.98% 22.13% 15.65% 10 In 12 months21
  • 23. In Summary  Credit Behavior in Brazil  Private Financial institutions start reaction, however, the public banks reach a high 42% participation in total credit in financial system.  Loan Portfolio  More positive macroeconomic scenario reflected in better SMEs performance.  Slow origination retaking, with a 2.5% portfolio QonQ growth overcoming the maturities and write-offs in the period.  Trade Finance portfolio has a faster reaction as a consequence of the scenario.  Retreated default levels maintained from March/2010.  Good loan loss allowance NPL coverage.  Funding and Liquidity  Available volumes at longer tenors.  Results  Controlled Operating Expenses contributed to better results with Net Profit 14% higher than the previous quarter and 22% above the recurring results of 2Q09. 22
  • 24. Questions and AnswersPlease note that this is the English version of the presentation. The original version is in Portuguese. If there is any discrepancy betweensuch versions, the Portuguese version shall prevail. Banco Indusval Multistock’s full financial statements will be available on our websiteat www.indusval.com.br/ir, under Financial Information – Financial Statements, as soon as they are filed with the CVM – BrazilianSecurities and Exchange Commission.Any reference or statement regarding Banco Indusval Multistock - or its subsidiaries and affiliates - anticipated synergies, growth plans,projected results and future strategies are just estimates. Although these forward-looking statements reflect management’s good faithbeliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to bematerially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to, our abilityto realize the amount of the projected synergies and in the timetable projected, as well as economic, competitive, governmental andtechnological factors affecting Banco Indusval Multistock’s operations, markets, products and prices, and other factors detailed in BancoIndusval Multistock’s filings with the CVM – Brazilian Securities and Exchange Commission which, readers are urged to read carefully, inanalyzing the forward-looking statements that are contained herein. Banco Indusval Multistock undertakes no obligation to update any ofthe projections contained herein. 23
  • 25. Investor Relations – Contact InformationZiro Murata Jr. Banco Indusval S/AIRO Rua Boa Vista, 356 – 7º andar 01014-000- São Paulo – SPPhone: (55 11) 3315-6961 BrasilE-mail: ziro@indusval.com.brMaria Angela R. Valente IR Site:Head of IR www.indusval.com.br/irPhone: (55 11) 3315-6821E-mail: mvalente@indusval.com.br 24