Banco Indusval reported financial results for 2Q10 and 1H10. Credit portfolio growth was moderate at 2.5% in the quarter, and default rates fell due to economic recovery. Net profit was R$8.3 million in 2Q10, up 13.7% from last quarter. Management comments indicated initiatives to improve products and services should have medium-term benefits, while credit to mid-sized companies grew and default rates declined.

1. 2Q10 Earnings Release
Recovering default and profitability
São Paulo, August 10, 2010 – Banco Indusval S.A., financial institution with activities primarily
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 second quarter and half year 2010 (2Q10 and 1H10).
Highlights
IDVL4: R$ 8.05 per share
Closing: 08/10/2010 Moderate 2.5% credit portfolio growth (including
Total Shares: 41,212,984
guarantees issued), in the quarter, sets it slightly
Market Cap: R$ 331,8 MM
above R$ 1.7 billion, at same level of June 2009.
Conference Calls/ Webcasts: Economic scene recovery supports default rates fall
08/11/2010 by 0.9 p.p. in the quarter and 4.3 p.p. in 12 months.
In English
Loan loss allowances cover 6.4% of credit portfolio
At: 11 am (US EST)/ 12 am (Brasilia)
Calls from Brazil: (55 11) 4688-6361 and 244.5% of Non-Performing Loans (above 60
Calls from US: (1) 786-924-6977 days)
Code: Banco Indusval
Total funding is kept at R$ 1.9 billion with extended
In Portuguese
average tenors.
At: 10 am (US EST)/ 11 am (Brasília)
Phone: (55 11) 4688-6361
Code: Banco Indusval
R$ 8.3 million profit in the quarter, 13.7% above last
quarter and 22.1% above the recurring results for
Website: www.indusval.com.br/ir 2Q09.
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 2Q10 1Q10 2Q09 2Q10/1Q10 2Q10/2Q09 1H10 1H09 1H10/ 1H09
Income from Financial Intermediation 33.1 35.2 32.1 -6.0% 3.1% 68.3 60.5 12.9%
Operating Results 12.1 10.8 7.6 12.0% 59.2% 22.9 13.0 76.2%
Net Profit 8.3 7.3 8.1 13.7% 2.5% 15.6 16.1 -3.1%
Balance Sheet 2Q10 1Q10 2Q09 2Q10/1Q10 2Q10/2Q09
Resultados Trimestrais
Loan Portfolio 1,686.6 1,655.6 1,680.4 1.9% 0.4%
Loan Portfolio + Guarantees and L/Cs 1,762.6 1,719.1 1,727.5 2.5% 2.0%
Cash & Short Term Investments 353.2 377.3 477.0 -6.4% -26.0%
Securities 937.8 979.4 829.0 -4.2% 13.1%
Total Assets 3,043.8 3,048.6 2,953.7 -0.2% 3.1%
Total Deposits 1,373.3 1,363.6 1,216.0 0.7% 12.9%
Foreign Borrowings 414.2 408.4 362.8 1.4% 14.2%
Domestic On-lending 93.1 108.7 193.5 -14.4% -51.9%
Shareholders’ Equity 429,7 430.7 452.4 -0.2% -5,0%
Performance 2Q10 1Q10 2Q09 2Q10/1Q10 2Q10/2Q09
1
Free Cash 695.5 707.1 735.2 -1.6% -5.4%
2
ROAE 7.9% 7.0% 7.4% 0.9 p.p. 0.5 p.p.
NIM3 6.8% 7.0% 9.8% -0.2 p.p. -3.0 p.p.
4
NPL / Loan portfolio 2.6% 3.5% 6.9% -0.9 p.p. -4.3 p.p.
Basel Index 20.3% 21.1% 24.1% -0.8 p.p. -3.8 p.p.
5
Efficiency Ratio 55.2% 61.0% 45.6% -5.8 p.p. 9.6 p.p.
Other Information 2Q10 1Q10 2Q09
Number of Clients - Corporate Borrowers 694 680 647
Number of Employees 349 350 342
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 694 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 economic scenario in the first half of 2010 was much more positive than in the corresponding
period in 2009. However, the euphoria surrounding the growth in the last quarter of 2009 and the
first quarter of 2010 was not maintained in the second quarter.
Our results recovered slightly, reflecting the effect of this scenario on the performance of our
midsized clients, as evident from the resumption of growth in trade finance operations and the
reduction in default levels, all of which contributed to a slight growth in our loan portfolio.
In the second half of 2009, we went through a period of reflection and a detailed review of our
business strategy to learn from our mistakes, improve our practices and redesign our future. We
fine-tuned our strategic plan and started revising our credit policies.
As a strategy for future businesses and to accompany the growth and sophistication of certain
clients and develop a client mix that will improve the quality of our loan portfolio, in July we
launched a new relationship platform for bigger clients. This platform, dedicated to companies with
annual revenue of over R$400 million, consists of professionals that are well prepared to
understand and meet the increasingly sophisticated needs of these clients. As such, we also
strengthened the structured operations department team and the credit area is going through a
restructuring process to adjust to this new business unit and the new guidelines of Brazil’s Central
Bank with regard to incorporating credit risk in the Basel II requirements.
These initiatives, which are part of the continuous development and improvement in the quality of
our products and services, are being implemented and should produce the results in the medium
term.
Macroeconomic Environment
The first quarter of 2010 was marked by the remarkable growth in Brazil’s GDP, thanks to the
monetary and tax incentive policies, whose effects on the economy were evident from the third
quarter of 2009. These non-cyclic measures included: (a) reduced interest rates on vehicle
purchases, (b) relaxing of the reserve requirements to inject liquidity into the financial system, (c)
increase in government spending; and, (d) credit expansion, mainly fueled by the performance of
BNDES portfolios and the continuous increase in housing finance.
In the second quarter, with the end of reduced interest rates and the gradual increase in reserve
requirements, combined with the higher basic interest rate to counter the inflation caused by
increased consumption, Brazil’s GDP growth slowed down. Preliminary data from the Central Bank
point to a 2.86% increase in 2Q10, versus 3.47% in 1Q10, resulting in year-to-date growth of 6.4%
- however, much higher than in the same period last year.
2Q10/ 2Q10/ 1H10/
2Q10 1Q10 2Q09 1H10 1H09
1Q10 2Q09 1H09
GDP Variation (IBGE- Q on previous Q) *2.86% 3.47% 0.84% -0.61 p.p. 2.02 p.p. *6.4 % 1.6% 4.8 p.p.
Inflation Rate (IPCA – IBGE) 1.00% 2.06% 1.32% -1.06 p.p. -0.32 p.p. 3.09% 2.54% 0.55 p.p.
FX Rate Variation (US$/ R$) 1.15% 2.29% -15.70% -1.14 p.p. 16.85 p.p. 3.46% -16.49% 19.95 p.p.
Interest Base Rate Variation (Selic) 2.23% 2.06% 2.39% 0.17 p.p. -0.16 p.p. 4.30% 5.36% 1.06 p.p.
Individuals Default Rate (BACEN) *6.6% 7.0% 8.4% -0.4 p.p. -1.8 p.p. *6.6% 8.4% -1.8 p.p.
Corporate Default Rate (BACEN) *3.6% 3.6% 3.4% 0.0 p.p. 0.2 p.p. *3.6% 3.4% 0.2 p.p.
(*) Central Bank of Brazil estimates or preliminary figures (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
Jun 434 331 147 255 581 587 464 467 230 787 695 254 1 276 841 41.8
2009
Dec 469 899 166 131 636 030 484 661 293 704 778 366 1 414 396 45.0
Mar 486 529 176 278 662 807 483 400 305 459 788 859 1 451 666 44.6
2010
Jun* 505 733 186 830 692 563 511 630 324 814 836 443 1 529 007 45.7
Variation %
In the month 0.9 1.3 1.0 2.6 3.1 2.8 2.0 0.5 p.p.
In the quarter 3.9 6.0 4.5 5.8 6.3 6.0 5.3 1.1 p.p.
In the year 7.6 12.5 8.9 5.6 10.6 7.5 8.1 0.7 p.p.
In 12 months 16.4 26.9 19.1 10.2 40.7 20.3 19.7 3.9 p.p.
* estimate Source: BACEN
Fonte:BACEN
Preliminary data from the Brazilian Central Bank for the period ended June 30, 2010, put the total
loan operations in the country’s financial system at R$1.5 trillion, with faster growth in the second
quarter and an increase in the credit/GDP ratio that reached 45.7%.
Operations contracted with non-earmarked funds (free credit) accounted for 66.5% of the total
credit, compared to 33.5% in earmarked credit, which mainly consisted of housing loans for
individuals and BNDES loans for companies. Operations with free credit, which amounted to
R$1,017 billion, increased by 4.9% in the quarter and 13.2% in 12 months, while operations with
earmarked credit, in the amount of R$512 billion, grew 6.2% in the quarter and 35.3% in the year,
showing that earmarked credit still accounts for the bulk of the total credit growth. In addition, the
government-controlled banks’ share of total loan operations climbed from 38.6% in June 2009 to
42.3% of the total credit.
BIM focuses on free-credit loans to midsized companies, a segment where agreements are mainly in
the R$10,000 to R$100 million range which, according to the Central Bank, grew by 5.9% until May
2010 and by 17.8% in the 12-month period ended May 2010.
Default
Central Bank data for June 2010 10,0
show a decline in the default rates, 9,0
8,0
thanks to the individual loans
7,0
segment, whose rate came to 6.6% 6.6
% 6,0
in June - the lowest since 2007. 5,0 5.0
4,0
On the other hand, corporate loan 3.6
3,0
defaults, which had been declining 2,0
Corporates Individuals Total
gradually since October 2009, 1,0
Dec Dec Dec Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr* May* Jun*
stabilized at around 3.6% as of March
2006 2007 2008 2009 2010
2010, much higher than the usual Source: BACEN
figures of 1.8 to 2.0% in 2007 and
2008.
4/18

5. Operating Performance
Profitability
Results from Financial Intermediation – R$ MM
2Q10/ 2Q10/ 1H10/
2Q10 1Q10 2Q09 1H10 1H09
1Q10 2Q09 1H09
Income from Financial
110.4 114.4 102.3 -3.5% 7.8% 224.7 220.0 2.2%
Intermediation
Loan Operations 65.6 61.2 71.6 7.3% -8.4% 126.8 145.2 -12.7%
Loans & Discounts Receivables 59.9 52.1 57.6 15.1% 4.1% 111.9 122.0 -8.3%
Financing 4.3 6.5 13.9 -33.7% -68.7% 10.9 22.6 -52.0%
Other 1.4 2.6 0.2 -45.3% 496.6% 4.0 0.6 590.8%
Securities 18.9 24.3 23.9 -22.1% -20.9% 43.2 47.4 -9.0%
Derivative Financial Instruments 6.8 1.6 0.0 312.1% n.m. 8.4 0.0 n.m.
FX Operations Result 19.1 27.3 6.8 -30.2% 180.3% 46.4 27.3 69.8%
Financial Intermediation
77.3 79.2 70.1 -2.4% 10.3% 156.5 159.6 -1.9%
Expenses
Money Market Funding 46.0 38.8 32.2 18.6% 42.9% 84.8 64.1 32.3%
Time Deposits 34.2 29.5 21.6 15.9% 58.3% 63.2 39.5 60.0%
Repurchase Transactions 10.6 8.3 7.2 27.7% 47.2% 18.9 15.3 23.5%
Interbank Deposits 1.2 1.0 3.4 20.0% -64.7% 2.2 8.4 -73.8%
Loans, Assign. & Onlending 18.7 28.9 (6.6) -35.3% -383.3% 47.6 12.2 290.2%
Foreign Borrowings 16.8 26.3 (9.8) -36.1% -271.4% 43.1 5.1 745.1%
Dom. Borrowings+Onlending 1.9 2.7 3.3 -29.7% -43.0% 4.5 7.0 -35.7%
Derivative Financial Instruments 0.0 0.0 16.4 n.m n.m 0.0 23.4 n.m
Allowance for Loan Losses 12.7 11.5 28.1 -10.4% -54.8% 24.1 59.9 -59.8%
Result from Financial
33.1 35.2 32.1 -6.1% 2.9% 68.3 60.5 12.8%
Intermediation
Income from Financial Intermediation, detailed in note 15(a) to the financial statements and
summarized above, fell by 3.5% from 1Q10 but grew by 7.8% over 2Q09. The decrease in the
quarterly comparison resulted mainly from foreign exchange transactions, due to the lower
exchange variation, which impacted expenses with foreign borrowings to the same amount, thus
not significantly affecting the Result from Financial Intermediation.
Income from Securities Operations dropped by 22.1% in the quarter, accompanying the pre-fixed
rates, as average balances remained practically unchanged. However, part of the results of
Securities Operations is accounted under Income from Derivative Financial Instruments since the
treasury department maintains positions pegged to the Interbank Deposit rate. Also under Income
from Derivatives the hedge result on FX and interest rates for non-trade related foreign borrowings
is accounted (IFC A/B Loan).
Comparing the past two years six-month periods ended June 30, Income from Financial
Intermediation remained stable, with revenue from foreign exchange operations compensating for
the decline in revenue from credit operations.
Expenses from Financial Intermediation, detailed in note 15(b) to the financial statements,
corresponded to 70.0% of the income from financial intermediation in 2Q10 (compared to 69.2% in
1Q10 and 68.6% in 2Q09), and 69.6% in 1H10, versus 72.5% in 1H09. These expenses fell by
2.4% from the previous quarter (10.3% higher than in 2Q09), due to the lower expenses with
Loans, Assignments and Onlending, offsetting the increase in Money Market Funding expenses. It is
important to note that a portion of the revenues from derivative financial instruments reduce the
funding costs.
5/18

6. Money Market Funding expenses increased chiefly due to: (a) the increase in the basic interest rate;
(b) higher funding terms; and, (c) higher number of business days in the period (63 days in 2Q10,
against 59 days in 1Q10), given that the variation in the average balance of deposits was around
6%.
On the other hand, in 2Q10, Expenses with Loans, Assignments and Onlending declined due to the
lower balance of the syndicated A/B Loans and the lower exchange variation in the quarter than in
1Q10, as detailed in the item Revenues.
Allowance for Loan Losses were slightly increased, in spite of the lower default levels, as
management decided to maintain the complementary provisions at R$ 11 million, on top of the
regulatory provisions of R$ 96.7 million, building total provisions to R$ 107.8 million, after the R$
15.6 million write-offs in the quarter, ensuring a good coverage to credit portfolio risk.
In the comparison between the six-month periods ended June 30, the 1.9% drop in the Expenses
from Financial Intermediation is due to the significant reduction in Loan Loss Allowance Expenses
compensating the increased in funding expenses influenced by FX variation and interest in the
period.
Net Interest Margin (NIM)
The combination of Income and Expenses with
Financial Intermediation, detailed above,
resulted in a net Income from Financial
Intermediation of R$33.1 million, 6.1% less
than in 1Q10 and 2.9% more than in 2Q09.
Year-to-date gross profit from financial 6.8%
intermediation was R$68.3 million, versus
4.9%
R$60.5 million in 1H09, a 12.8% increase.
Net Interest Margin (NIM) on allowance for
NIM GIM
loan losses was affected by the carry-forward
of deposits with longer maturity, the rise in the 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
basic interest rate and the higher number of
working days.
Efficiency Ratio
Efficiency Ratio – R$ MM
2Q10/ 2Q10/ 1H10/
2Q10 1Q10 2Q09 1H10 1H09
1Q10 2Q09 1H09
Personnel Expenses 14.3 12.4 12.9 15.4% 11.3% 26.8 25.0 7.2%
Contributions and Profit-sharing 1.9 2.5 1.1 -24.6% 78.0% 4.4 2.5 76.0%
Administrative Expenses 8.9 9.3 11.4 -4.1% -21.7% 18.3 23.1 -20.8%
Taxes 2.6 3.2 3.1 -19.1% -16.8% 5.8 6.4 -9.4%
Other Operating Expenses 0.5 3.5 0.6 -85.5% -16.7% 4.0 0.7 471.4%
A- Operating Expenses Total 28.2 30.9 29.1 -8.7% -2.8% 59.3 57.7 2.8%
Gross Income Fin. Interm.
45.7 46.7 60.3 -2.0% -24.1% 92.4 120.4 -23.3%
(w/o ALL)
Income from Services Rendered 2.6 2.8 3.3 -6.5% -21.4% 5.5 6.1 -9.8%
Income from Banking Tariffs 0.3 0.2 0.2 28.2% 58.2% 0.4 0.3 33.3%
Other Operating Income 2.5 1.0 0.0 157.4% n.m. 3.5 1.3 169.2%
B- Operating Income Total 51.2 50.7 63.8 0.9% -19.8% 101.8 128.1 -20.5%
Efficiency Ratio (A/B) 55.2% 61.0% 45.6% -5.8 p.p. 9.6 p.p. 58.1% 45.0% 13.0 p.p.
6/18

7. In the Profit and Loss Statement for 2Q10, Other Operating Expenses net of
Other Operating Revenues fell by 14.3% in the quarter and by 14.6% from
Recovering 2Q09, contributing to 5.8 p.p. improvement in the efficiency ratio in the last
Efficiency on three months. Comparing with the same quarter the previous year, despite
expense the rigorous control over the administrative, tax and other operating
control expenses, the reduction was not sufficient to offset the increase in personnel
expenses and the 20.5% reduction in operating revenues, particularly the
gross revenue from financial intermediation.
Net Profit
Banco Indusval Multistock recorded net income of R$8.3 million in 2Q10,
13.7% higher than in 1Q10, thanks to the 14.3% reduction in net Significant
operating expenses, which offset the 6.1% reduction in Income from evolution in
Financial Intermediation. Compared to 2Q09, Net Income increased by recurring
2.5%, even with the non-operating profit, net of taxes, of R$1.3 million results
from the sale of 707,000 shares of CETIP in 2Q09. Comparing the recurring
result in both periods, the increase was 22%.
Net income in 1H10 amounted to R$15.6 million, down 3.1% from the R$16.1 million in 1H09,
which included non-operating revenues of R$4.5 million, net of taxes on the sale of BM&FBOVESPA
and CETIP shares in that period. Thus, considering the recurring result, the increase was 34.5%.
Loan Portfolio
During the quarter, BIM's loan portfolio grew 1.9% for disbursed loans and 2.5% when guarantees
and L/Cs issued are considered (0.4% and 2.0% over 2Q09), driven by the higher origination of
export finance operations.
Loan Portfolio by Product – R$ MM
2Q10 1Q10 2Q09 2Q10/ 1Q10 2Q10/ 2Q09
Loan Operations 1,365.3 1,348.3 1,432.1 1.3% -4.7%
Loans & Discounted Receivables 1,204.4 1,158.9 1,080.6 3.9% 11.5%
BNDES/ Finame 72.7 85.0 193.5 -14.5% -62.4%
Direct Consumer Credit – used vehicles 9.9 12.7 26.5 -22.0% -62.6%
Financing in Foreign Currency 33.1 32.4 18.3 2.2% 80.9%
Other Financing 19.7 22.8 21.3 -13.6% -7.5%
Assignment with Co-obligation 25.5 36.5 91.9 -30.1% -72.3%
Advances on Foreign Exchange Contracts 314.1 300.3 248.2 4.6% 26.6%
Other Loans 7.2 7.1 0.0 1.4% n.m.
DISBURSED CREDIT OPERATIONS 1,686.6 1,655.6 1,680.4 1.9% 0.4%
Guarantees Issued (Guarantees, L/Gs and L/Cs) 76.0 63.4 47.1 19.9% 61.4%
TOTAL 1,762.6 1,719.1 1,727.5 2.5% 2.0%
Allowance for Loan Losses (107.8) (110.7) (118.2) -2.6% -8.8%
Loan operations in reais represented 79% of the portfolio of loans granted as of June 30, 2010, with
a slight increase in the share of foreign currency operations, which accounted for the remaining
21%.
7/18

8. Loan Portfolio by Currency – R$ MM
2Q10 1Q10 2Q09 2Q10/ 1Q10 2Q10/ 2Q09
Local Currency - Real 1,339.4 1,322.9 1,413.9 1.2% -5.3%
Foreign Currency 347.2 332.7 266.4 4.4% 30.3%
TOTAL 1,686.6 1,655.6 1,680.4 1.9% 0.4%
Foreign currency loans comprise trade finance operations, which are booked in reais and reflect the
growth in operations and foreign exchange variation in the period. The portfolio balance converted
to U.S. Dollars increased from US$186.9 million in 1Q10 to US$192.1 million in 2Q10 (US$136.6
million in 2Q09) up 2.9% in the quarter and 40.6% in 12 months, compared to an exchange
variation of 1.15% and -7.69%, respectively.
Loan Portfolio by Client Segment – R$ MM
2Q10 1Q10 2Q09 2Q10/ 1Q10 2Q10/ 2Q09
Middle Market 1,602.3 1,557.5 1,565.5 2.9% 2.4%
Retail 23.3 28.2 48.2 -17.3% -51.7%
Other 61.0 69.9 66.7 -12.7% -8.5%
TOTAL 1,686.6 1,655.6 1,680.4 1.9% 0.4%
Banco Indusval Multistock focuses on midsized companies, upper-middle included, which represent
95% of its Loan Portfolio. Retail operations, with a share of 1.4%, have been decreasing over the
quarters due to the discontinuance of used-vehicle financing in October 2008. Other Credits, related
to the acquisition of individual loan portfolio with risk covered by the assigning bank, accounted for
3.6%.
Loan Portfolio by Industry
Food, Beverage and Tobacco 21.7%
Agribusiness 14.6%
Civil Construction 10.1%
Chemical & Pharmaceutical 5.3%
Automotive 4.8%
Transportation & Logistics 4.3%
Education 4.1%
Textile, Apparel and Leather 4.0%
Metal Industry 3.7%
Individuals 3.3%
Financial Institutions 3.2%
Oil and Biofuel 3.1%
Financial Services 2.8%
Trading Companies 1.3%
Paper and Pulp 1.3%
Other sectors * 12.4%
TOTAL 100.0%
(*) Individual participation of less than 1.2% of credit portfolio
8/18

9. Loan Portfolio Distribution
By Economic Activity By Segment
Individuals
Financial 8%
Interm. 1% Other
Services
Commerce 23%
11% Middle
Market 95% Retail 1%
Industry Other 4%
57%
By Product By Client Concentration
Trade
Guarantees Other 25%
Finance
Issued 4%
BNDES 20%
Other
Onlendings
4%
4%
61 - 160 10 largest
24% 19%
Loans &
Discounts
68% 11 - 60
32%
By Tenor By Guarantee
+ 360 days
Vehicles
28%
Real State 2%
10% Aval PN
Pledge/ 21%
Lien 6%
181 to 360
15%
Monitored Receivables
Pledge 10% 47%
up to 90
days 38% Securities
91 to 180 4%
19%
Quality of Loan Portfolio – R$ MM
2Q10 1Q010 2Q09
% 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% 548.2 2.7 515.2 2.6 496.8 2.5
B 1.0% 466.9 4.7 465.9 4.7 396.7 4.0
C 3.0% 459.4 13.8 449.7 13.5 564.0 16.9
D 10.0% 95.4 9.5 101.4 10.1 42.3 4.2
E 30.0% 55.1 16.5 53.6 16.1 38.5 11.6
F 50.0% 19.9 10.0 30.4 15.2 31.2 15.6
G 70.0% 8.9 6.2 7.0 4.9 17.1 11.9
H 100.0% 32.8 32.8 32.4 32.4 51.5 51.5
Compl. Allowance - - 11.6 - 11.2 - -
Total - 1,686.6 107.8 1,655.6 110.7 1,680.4 118.2
9/18

10. Allowance for loan losses totaled R$107.8 million and consisted of: (a) regulatory provisions of
R$96.2 million in 2Q10, compared to R$99.5 million in 1Q10 and R$118.2 million in 2Q09; and (b)
voluntary complementary provisions of 0.7% of the loan portfolio as in 1Q10, in the amount of
R$11.6 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.
The Loan Portfolio balance includes loans amounting to R$171.9 million renegotiated with clients,
which, although in due course, are classified between D and H in credit ratings, until the credit
analysis of the economic and financial fundamentals of the debtor or an increase in the collaterals
justify such reclassification. Thus, despite the reduction of 24.4% in overdue loans in 2Q10 and of
61.8% in the past 12 months, the loans classified between D and H declined by a mere 5.6% in the
quarter, while increasing by 17.5% in twelve months. Of the R$212.1 million classified between D
and H (R$224.8 million in 1Q10): (a) R$166.4 million (78.5%) are in the regular payment range;
and (b) only R$44.1 million (R$58.4 million in 1Q10) are overdue more than 60 days, making up
the default ratio. This ratio is calculated by summing the total outstanding balance of loans with at
least one monthly repayment overdue more than 60 or 90 days, as applicable (NPL 60 days or NPL
90 days) and dividing it by the loan portfolio volume.
Default by Segment – R$ MM
Overdue Contracts Outstanding (NPL)
Outstanding
> 60 days > 90 days
2Q10 1Q10 2Q10 1Q10 2Q10 1Q10
Middle Market 1,602.3 1,557.5 36.1 2.3% 49.1 3.2% 29.6 1.8% 39.6 2.5%
Retail 23.3 28.2 8.0 34.2% 9.2 32.8% 6.9 29.5% 7.4 26.1%
Financial Institutions – Acquired
61.0 69.9 - 0.0% - 0.0% - 0.0% - 0.0%
Loans
TOTAL 1,686.6 1,655.6 44.1 2.6% 58.4 3.5% 36.5 2.2% 47.0 2.8%
Allowance for Loan Losses (ALL) 107.8 110.7 - - - -
Allowance for Loan Losses / NPL - - 244.5% 189.7% 295.5% 235.5%
ALL/ Loan Portfolio 6.4% 6.7% - - - -
Note that the above table shows that allowance for loan losses on June 30, 2010 corresponded to
6.4% of the loan portfolio, compared to 6.7% in 1Q10 (8.2% in 4Q09), with a reduction in loans
overdue more than 60 days, from 3.5% in 1Q10 (5.9% in 4Q09) to 2.6% in 2Q10. Non-performing
loans more than 90 days represent 2.2% of the portfolio, compared to 2.8% in 1Q10 (5.4% in
4Q09), confirming the positive reaction of midsized companies to the economic recovery. In 2Q10,
loans amounting to R$15.6 million, classified as H for 180 days, thus 100% provisioned, were
written off, bringing the total write-offs in 1H10 to R$49.7 million. Recovery of overdue loans,
though still slower than desired, totaled R$1.4 million in 2Q10 and R$3.9 million in 1H10.
As mentioned in the section on Macroeconomic Environment, data from the Central Bank of Brazil
shows that in general, corporate defaults remained stable at around 3.6% since March, maintaining
the downward trend in the coming months provided the macroeconomic expectations hold out.
10/18

11. Funding
Total Funding – R$ MM
2Q10 1Q10 2Q09 2Q10/ 1Q10 2Q10/ 2Q09
Total Deposits 1,373.3 1,363.6 1,216.0 0.7% 12.9%
Time Deposits 749.2 698.5 651.2 7.3% 15.0%
Time Deposits bearing FGC* Guarantee (DPGE) 525.4 572.0 2.0 -8.1% n.m.
Agribusiness Letters of Credit (LCA) 16.2 8.7 12.6 86.9% 28.7%
Interbank Deposits 45.7 42.5 80.1 7.5% -42.9%
Demand Deposits and Other 36.8 42.0 36.5 -12.4% 0.8%
Domestic Onlending 93.1 108.7 193.5 -14.4% -51.9%
Foreign Borrowings 414.2 408.4 362.8 1.4% 14.2%
Trade Finance 304.4 296.8 244.7 2.5% 24.4%
IFC A/B Loan 109.8 111.6 118.1 -1.6% -7.0%
TOTAL 1,880.6 1,880.7 1,772.3 0.0% 6.1%
Both the balances and the mix of local currency (78%) and foreign currency (22%) funding
remained stable in relation to the previous quarter. In comparison with the 2Q09, funding increased
by 6.1%. Time deposits in local currency continue to be the main source of funding, accounting for
73% of total funding, chiefly via the issue of CDBs (39.8%) and DPGEs (27.9%). At the close of
2Q10, the average term for total deposits was 593 days (494 days in 1Q10 and 424 in 2Q09),
increasing across the three main funding types: (a) in CDBs, from 363 days in 1Q10 to 382 days in
2Q09; (b) in DPGEs, from 692 to 946 days; and, (c) in Interbank Deposits, from 69 to 142 days.
Moreover, funding through CDB issues grew by 7.3% in 2Q10, replacing DPGE (-8.1%) due to lower
total costs and greater investor readiness for longer terms without the FGC guarantee.
Deposits
By Type By Investor By Tenor
181 to 360
Interbank Demand Other
ALC 3% 3% Individuals 19%
3%
1% 14%
91 to 180
Time
11%
Deposits Financial
(DPGEs) Inst. 5%
Institutional
38% Time
54% up to 90 +360 days
Deposits
(CDs) days 46%
Enterprises
55% 24%
24%
Foreign borrowings corresponded to 22% of total funding, up 1.4% over 1Q10 and 14.2% over
2Q09, reflecting the recovery of exports, thereby expanding the Trade Finance portfolio and,
consequently, the funding through correspondent banks. The balance of the A/B Loan from IFC fell
by 1.6% from 1Q10 and 7.0% from 2Q09, due to the half-yearly payment of interest and the
exchange variation, respectively.
11/18

12. Liquidity
Free Cash Assets and Liabilities Management (GAPS)
735.2 707.1 695.5 720,1
Assets Liabilities
586,4 558,5
533,1
382,7
306,8 293,2 285,8
2Q09 1Q10 2Q10 90 180 360 > 360 days
On June 30, 2010, Cash totaled R$1,289.5 million and, excluding Money Market Funding (R$561.4
million) and Derivatives (R$32.6 million), resulted in free cash of R$695.5 million, equivalent to
50.6% of total deposits and 161.9% of shareholders’ equity, demonstrating the healthy liquidity to
meet the obligations and the loan portfolio growth.
Capital Adequacy
The Basel Accord requires banks to maintain a minimum percentage of capital weighted by the risk in
their operations. The Central Bank of Brazil has stipulated that banks operating in the country should
maintain a minimum percentage of 11.0%, calculated according to the Basel Accord regulations,
which provides greater security to Brazil’s financial system against oscillations in economic conditions.
The following table shows Banco Indusval Multistock position in relation to the minimum capital
requirements of the Central Bank:
Capital Adequacy – R$ MM
2Q10 1Q10 2Q09 2Q10/ 1Q10 2Q10/ 2Q09
Total Capital 429.6 443.1 456.9 -3.0% -6.0%
Required Capital 232.5 231.4 208.8 0.5% 11.4%
Margin over Required Capital 197.1 211.7 248.1 -6.9% -20.6%
Basel Index 20.3% 21.1% 24.1% -0.8 p.p. -3.8 p.p.
Risk Ratings
Date of Last Financial Data
Rating Agency Ratings Observation
Report as of
B+ / Positive / B Global Scale: Foreign Currency
Standard &
B+ / Positive / B Global Scale: Local Currency Nov. 03, 2009 June 30, 2009
Poors
brBBB+/ Positive /brA-3 Local Scale - Brazil
FitchRatings BBB+/ Stable/ F2 National Scale - Brazil Nov. 19, 2009 Sept. 30, 2009
10.54 RiskBank Index
RiskBank Jul. 15, 2010 Mar. 31, 2010
Ranking: 38 Low risk for Short Term
12/18

13. Indusval Multistock Corretora de Valores
In the first half of 2010, particularly in the second quarter, the stock broking market faced a
challenging scenario, with a reduction in volumes and margins. However, the modernization and
restructuring of the brokerage firm has remained at the scheduled pace and the new specialized
teams, business management tools, as well as the stock and derivatives trading
platforms are already operational.
The ‘Execution Broker’ seal allowed Indusval Multistock Corretora de Valores to reposition
itself and expand its large volume operations, while rising up the BM&F rankings.
The investments will continue in the coming months to further improve the technological
platform and products, as well as expanding the base of institutional and qualified individual clients,
as well as services targeted at the retail segment.
Capital Market
Total Shares
On June 30, 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).
On August 10, 2010, the Company’s Board of Directors approved, ad referendum the Shareholders’
Meeting, the cancelation of 1,262,117 preferred shares (IDVL4) held in treasury, reducing the total
number of shares to 41,212,984, with no change in the volume of common shares (IDVL3), and
reducing the number of preferred shares (IDVL4) to 14,212,984.
Share Buyback Program
Under the 3rd Share Buyback Program for the acquisition of up to 1,458,925 preferred shares,
approved by the Board of Directors on September 17, 2009, 1,262,117 preferred shares (IDVL4)
were acquired, leaving a balance of 196,808 preferred shares that were cancelled as approved by
the Board of Directors.
The Board also approved the 4th Share Buyback Program for up to 1,301,536 preferred shares
(IDVL4), valid until August 9, 2011, with Indusval S.A. CTVM acting as the intermediary.
Free Float
Excluding the 18,154,220 shares owned by the controlling group, the 2,733,939 shares owned by
the management and the 1,096,044 preferred shares held in treasury from the 42,475,101 shares,
on June 30, 2010, Banco Indusval’s free float came to 20,490,898 shares, equivalent to 48.2% of
its capital stock.
With the cancellation of 1,262,117 preferred shares on August 10, 2010, the free float is
20,324,825, representing 49.3% of the total of 41,212,984 shares.
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 stock option or profit-sharing has been
granted for the results of the first half of 2009, while 525,585 options were granted to the Executive
Board and Management 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.
For the results of the 1H10, 261,960 stock options were granted to the Executive Board and
Management Superintendents to be exercised at a ration of 1/3 a year from August 2011 until
August 2015. With this distribution, the total stock options granted rises up to 1,178,810, without
any exercise until now.
Shareholder Remuneration
On June 30, 2010, the Bank paid Interest on Equity in the amount of R$6.3 million related to 2Q10,
as advance payment of the minimum mandatory dividend for 2010. This amount corresponds to
R$0.15188 per share or R$0.12910 net of withholding income tax.
27,008
25,470
6,693
6,369
15,858 6,622
6,512
6,082 12,547
11,446
10,167 6,876
2,646
2,220 6,550 6,289
3,000 2,426 5,134
R$ MM
2,900 2,730
2,320 6,039 6,817 6,258
2,900 2,791 2,322
2005 2006 2007 2008 2009 2010
1Q 2Q 3Q 4Q
Shares Performance
The shares of Banco Indusval Multistock (IDVL4) closed 2Q10 at R$7.65, for market cap of R$324.9
million and Shareholders’ Equity of R$429.7 million, resulting in a Market Value/ Book Value ratio of
0.76. The IDVL4 shares depreciated 10.53% in 2Q10 and 7.72% in 1H10, while appreciating 9.44%
in the year. In the same periods, the Ibovespa index fell by 13.41%, 11.16% and 18.40%,
respectively.
At the closing of August 10, 2010 trading session, IDVL4 shares were quoted at R$ 8,05, down by
2,90% in the year with an appreciation of 2,03% in 12 months, which earnings adjusted
appreciated 0,80% and 10,03%, respectively.
14/18

15. From 31.12.2009
130 IB OVESP A IDVL4
120
10
1
100
90
80
13 01 / 9
20 01 0
27 01 0
03/01 0
/0 /10
17 02 0
24 02 0
03 02 0
10 03 / 0
17/03 0
/0 /10
31 03 0
/0 /10
14 04 0
21 04 0
28/04 0
/0 /10
12 05 0
19 05 0
26 05 0
02 05 / 0
09/06 0
16/06 0
23/06 0
/0 /10
07 06 0
14 07 0
21 07 0
28 07 / 0
04/07 0
/0 /10
10
/ /0
/ 1
/ /1
/1
/ 1
/ /1
/ /1
/ /1
1
/ /1
/ 1
/ /1
/1
/ 1
/ /1
/ /1
/ /1
1
/1
/1
/ 1
/ /1
/ /1
/ /1
1
10 2 /
07 3 /
05 4 /
30 6 /
8/
06 12
24 3
/
30
Liquidity and Trading Volume
The preferred shares of Banco Indusval Multistock (IDVL4) were traded in 100% of the sessions in
2Q10 and in the past 12 months. In 2Q10, a total of 1.3 million IDVL4 shares were traded over 822
transactions on the spot market, for total financial volume of R$10.2 million. In the past 12 months,
the financial volume traded was R$154.0 million, with approximately 19.4 million preferred shares
over 16,235 trades.
Shareholding Dispersion
Distribution of Preferred Shares by type of investor:
06/30/2010 03/31/2010
# #
TYPE OF INVESTOR Preferred % Pref. % Total Preferred % Pref. % Total
Inv. Inv
Controlling Shareholders 4 1.038.047 6,7% 42,7% 4 1.038.047 6,7% 42,7%
Management 10 159.570 1,0% 6,4% 10 159.570 1,0% 6,4%
Family Members 12 749.231 4,8% 19,0% 12 747.131 4,8% 18,9%
Brazilian Inst. Inv. 86 6.244.388 40,4% 19,0% 101 6.300.018 40,7% 14,8%
Foreign Investors 10 4.386.425 28,3% 14,7% 11 4.390.625 28,4% 10,3%
Brazilian Corporates 13 140.000 0,9% 10,3% 14 143.600 0,9% 0,3%
Individuals 608 1.661.396 10,7% 0,3% 695 1.866.831 12,1% 4,4%
Treasury - 1.096.044 7,1% 3,9% - 829.279 5,4% 1,9%
TOTAL 743 15.475.101 100% 100% 901 15.475.101 100% 100%
15/18

16. BALANCE SHEET
R$ '000
Assets 06/30/2009 03/31/2010 06/30/2010
Current 2,567,680 2,516,462 2,531,006
Cash 4,838 2,949 6,151
Short-term interbank investments 472,169 374,362 347,061
Open market investments 374,999 311,163 287,002
Interbank deposits 97,170 63,199 60,059
Securities and derivative financial instruments 828,597 975,295 934,809
Own portfolio 448,632 443,867 491,500
Subject to repurchase agreements 341,901 398,223 300,412
Linked to guarantees 29,461 93,303 111,767
Derivative financial instruments 8,603 39,902 31,130
Interbank accounts 2,259 4,235 3,415
Payment and receipts pending settlement 545 940 2,334
Restricted credits - Deposits with the Brazilian Central Bank 1,714 3,295 1,081
Loans 929,469 782,771 828,346
Loans - private sector 922,280 789,212 840,325
Loans - public sector 29,142 21,767 17,828
(-) Allowance for loan losses (21,953) (28,208) (29,807)
Other receivables 298,963 337,075 372,762
Foreign exchange portfolio 297,497 324,835 370,408
Income receivables 123 642 77
Negotiation and intermediation of securities 6,770 17,033 5,493
Sundry 9,225 3,708 4,710
(-) Allowance for loan losses (14,652) (9,143) (7,926)
Other assets 31,385 39,775 38,462
Other assets 31,325 40,499 39,686
(-) Provision for losses (847) (1,420) (2,006)
Prepaid expenses 907 696 782
Long term 373,067 518,989 499,939
Marketable securities and derivative financial instruments 392 4,083 3,019
Linked to guarantees 38 36 37
Derivative financial instruments 354 4,047 2,982
Interbank Accounts - 10,681 9,647
Pledged Deposits - Caixa Economica Federal - 10,681 9,647
Loans 311,670 427,513 411,581
Loans - private sector 374,008 497,331 481,641
Loans - public sector 14,844 3,479 -
(-) Allowance for loan losses (77,182) (73,297) (70,060)
Other receivables 59,167 75,332 74,456
Trading and Intermediation of Securities - 74 84
Sundry 63,565 75,323 74,404
(-) Allowance for loan losses (4,398) (65) (32)
Other rights 1,838 1,380 1,236
Prepaid Expenses 1,838 1,380 1,236
Permanent 12,970 13,104 12,849
Investments 1,735 1,686 1,686
Other investments 1,735 1,686 1,686
Property and equipment 11,235 11,418 11,163
Property and equipment in use 2,173 2,179 2,179
Revaluation of property in use 3,538 3,538 3,538
Other property and equipment 11,623 12,379 12,014
(-) Accumulated depreciation (6,099) (6,970) (6,568)
Leasehold Improvements - 292 -
TOTAL ASSETS 2,953,717 3,048,555 3,043,794
16/18

17. R$ '000
Liabilities 06/30/2009 03/31/2010 06/30/2010
Current 1,844,939 1,895,649 1,897,737
Deposits 752,929 725,274 723,279
Cash deposits 34,432 41,707 36,248
Interbank deposits 80,149 42,510 45,737
Time deposits 636,272 640,801 640,755
Other 2,076 256 539
Funds obtained in the open market 561,821 605,650 561,458
Own portfolio 340,928 395,980 299,456
Third party portfolio 220,893 209,670 262,002
Funds from securities issued or accepted 10,385 8,665 16,193
Agribusiness Letter of Credit 10,385 8,665 16,193
Interbank accounts 559 476 683
Receipts and payment pending settlement 559 476 683
Interdepartamental accounts 18,307 9,947 12,066
Third party funds in transit 18,307 9,947 12,066
Borrowings 243,142 389,450 395,215
Domestic Borrowings - - -
Foreign borrowings 243,142 389,450 395,215
Onlendings 133,928 42,074 36,270
BNDES 110,296 19,569 13,973
FINAME 23,632 22,505 22,297
Other liabilities 123,868 114,113 152,573
Social and statutory liabilities 2,287 2,352 4,199
Collection and payment of taxes and similar charges 859 818 357
Foreign exchange portfolio 45,494 22,164 56,141
Taxes and social security contributions 23,282 2,932 3,489
Negotiation and intermediation securities 28,810 24,155 32,644
Derivative financial instruments 16,572 55,228 48,876
Sundry 6,564 6,464 6,867
Long Term 656,144 721,751 715,878
Deposits 450,512 629,625- 633,872
Time deposits 450,512 629,625 633,872
Funds from securities issued or accepted 2,199 - -
Agribusiness Letter of Credit 2,199 - -
Loan obligations 119,694 18,984 18,972
Foreign loans 119,694 18,984 18,972
Onlending operations - Governmental Bureaus 59,548 66,663 56,791
Federal Treasure - 19,299 17,485
BNDES 3,904 3,161 1,639
FINAME 54,876 39,621 34,316
Other Institutions 768 4,582 3,351
Other liabilities 24,191 6,479 6,243
Taxes and social security contributions 13,052 5,815 5,917
Derivative financial instrument 11,134 482 144
Sundry 5 182 182
Future results 264 423 501
Shareholders' Equity 452,370 430,732 429,678
Capital 370,983 370,983 370,983
Capital Reserve 461 1,016 1,375
Revaluation reserve 2,029 1,978 1,961
Profit reserve 82,336 63,322 65,313
Asset valuation Adjustment (12) 331 (944)
(-) Treasury stock (3,427) (6,898) (9,010)
TOTAL LIABILITIES 2,953,717 3,048,555 3,043,794
17/18

18. INCOME STATEMENT
R$ '000
2Q09 1Q10 2Q10 1H09 1H10
Income from Financial Intermediation 102,344 114,386 110,359 220,002 224,745
Loan operations 71,646 61,153 65,630 145,245 126,783
Income from securities 23,894 24,272 18,905 47,428 43,177
Income from derivative financial instruments - 1,638 6,750 - 8,388
Income from foreign exchange transactions 6,804 27,323 19,074 27,329 46,397
Expenses from Financial Intermediaton 70,204 79,167 77,300 159,481 156,467
Money market funding 32,198 38,792 45,959 64,055 84,751
Loans, assignments and onlendings (6,551) 28,923 18,679 12,157 47,602
Income from derivative financial instruments 16,421 - - 23,396 -
Allowance for loan losses 28,136 11,452 12,662 59,873 24,114
Gross Profit from Financial Instruments 32,140 35,219 33,059 60,521 68,278
Other Operating Income (Expense) (24,493) (24,429) (20,925) (47,507) (45,354)
Income from services rendered 3,365 2,831 2,646 6,109 5,477
Income from tariffs 158 195 250 320 445
Personnel expenses (12,880) (12,422) (14,333) (24,959) (26,755)
Other administrative expenses (11,425) (9,331) (8,949) (23,091) (18,280)
Taxes (3,102) (3,188) (2,580) (6,422) (5,768)
Other operating income - 990 2,548 1,267 3,538
Other operating expense (609) (3,504) (507) (731) (4,011)
Operating Profit 7,647 10,790 12,134 13,014 22,924
Non-Operating Profit 1,932 (16) (815) 7,235 (831)
Earnings before taxes ad profit-sharing 9,579 10,774 11,319 20,249 22,093
Income tax and social contribution (419) (947) (1,185) (1,623) (2,132)
Income tax (6,495) 162 (75) (14,170) 87
Social contribution (3,944) 97 (45) (8,496) 52
Deferred fiscal assets 10,020 (1,206) (1,065) 21,043 (2,271)
Contributions and Equity (1,051) (2,482) (1,871) (2,501) (4,353)
Net Profit for the Period 8,109 7,345 8,263 16,125 15,608
18/18