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					  Banco do Brasil




Performance Analysis




  1th Quarter 2006
Summary
Index of Tables ..........................................................................................................................................4
Index of Figures.........................................................................................................................................7
Presentation...............................................................................................................................................9
1 – Economic Environment ....................................................................................................................10
2 – BB Securities .....................................................................................................................................11
     2.1 Shares .........................................................................................................................................11
        2.1.1 Equity Held by Foreign Investors ....................................................................................13
     2.2 Warrants .....................................................................................................................................14
     2.3 Performance of the Shares .......................................................................................................16
3 – Corporate Governance......................................................................................................................19
4 – Other Information ..............................................................................................................................21
5 – Summarized Financial Statements ..................................................................................................23
     5.1 Summarized Balance Sheet......................................................................................................23
     5.2 Summarized Corporate Law Income Statement .....................................................................25
     5.3 Income Statement with Reallocations .....................................................................................26
        5.3.1 Details of the Reallocations..............................................................................................27
6 – Balance Sheet Analysis ....................................................................................................................29
     6.1 Breakdown .................................................................................................................................29
     6.2 Analysis of Assets.....................................................................................................................30
     6.3 Liquidity Analysis ......................................................................................................................31
     6.4 Securities Portfolio....................................................................................................................32
     6.5 Loan Portfolio ............................................................................................................................34
        6.5.1 Retail Loan Portfolio .........................................................................................................36
        6.5.2 Commercial Loan Portfolio...............................................................................................40
        6.5.3 Agribusiness Loan Portfolio ............................................................................................41
        6.5.4 Foreign Trade Loan Portfolio ...........................................................................................47
        6.5.5 Concentration of the Portfolio..........................................................................................48
     6.6 Tax Credits .................................................................................................................................49
     6.7 Analysis of Liabilities ................................................................................................................50
     6.8 Deposits and Money Market Funding......................................................................................52
        6.8.1 Foreign Borrowing ............................................................................................................54
     6.9 Shareholders’ Equity.................................................................................................................55
     6.10 BIS Ratio ...................................................................................................................................56
     6.11 Fixed Asset Ratio.....................................................................................................................58
     6.12 Risk Management ....................................................................................................................59
        6.12.1 Market Risk Management ...............................................................................................59
        6.12.2 Liquidity Risk Management ............................................................................................65
7 – Analysis of Results ...........................................................................................................................66
     7.1 Gross Financial Margin .............................................................................................................66
        7.1.1 Analysis of Uses ................................................................................................................68
        7.1.2 Analysis of Funding ..........................................................................................................71
        7.1.3 Analysis of Spread ............................................................................................................72
        7.1.4 Analytical Spread...............................................................................................................73
        7.1.5 Management Analysis of the Spread...............................................................................76
     7.2 Net Financial Margin..................................................................................................................79
        7.2.1 Retail Loan Portfolio .........................................................................................................83
        7.2.2 Commercial Loan Portfolio...............................................................................................84
        7.2.3 Agribusiness Loan Portfolio ............................................................................................85
        7.2.4 Foreign Trade Loan Portfolio ...........................................................................................87
        7.2.5 Foreign Loan Portfolio ......................................................................................................88
     7.3 Contribution Margin ..................................................................................................................89
        7.3.1 Revenues with Customer Relationship Fees..................................................................91
        7.3.2 Asset Management ............................................................................................................92
        7.3.3 Credit Cards .......................................................................................................................94
        7.3.4 Collections .........................................................................................................................95
     7.4 Commercial Income...................................................................................................................96
        7.4.1 Personnel Expenses .........................................................................................................97
        7.4.2 Other Administrative Expenses .......................................................................................99
        7.4.3 Distribution Network .......................................................................................................100
        7.4.4 Automated Channels.......................................................................................................103
        7.4.5 Productivity – Coverage Ratios .....................................................................................105
     7.5 Operating Income ....................................................................................................................107
     7.6 Net Income................................................................................................................................109
     7.7 Net Value Added ......................................................................................................................112
     7.8 Gross Value Added..................................................................................................................113
     7.9 Insurance, Pension Plans and Capitalization .......................................................................115
        7.9.1 Income Statement by Line of Business ........................................................................115
        7.9.2 Combined Ratio ...............................................................................................................116
        7.9.3 Brasilseg...........................................................................................................................117
        7.9.4 Brasilsaúde ......................................................................................................................117
        7.9.5 Aliança do Brasil..............................................................................................................117
        7.9.6 Brasilcap...........................................................................................................................118
        7.9.7 Brasilprev .........................................................................................................................118
        7.9.8 BB Previdência ................................................................................................................119
8 – Financial Statements.......................................................................................................................120
     8.1 Summarized Balance Sheet....................................................................................................120
     8.2 Summarized Corporate Law Income Statement ...................................................................122
     8.3 Income Statement with Reallocations ...................................................................................123
     8.4 Analytical Spread.....................................................................................................................124
Financial Statements.............................................................................................................................127
Index of Tables
Table 1. Main Macroeconomic Indicators..................................................................................................10
Table 2. Shareholding Breakdown ............................................................................................................11
Table 3. Shareholders by Range of Shares Owned..................................................................................11
Table 4. Free Float by Range of Shares Owned.......................................................................................11
Table 5. Tax Residence of the Investors...................................................................................................12
Table 6. Breakdown of the Warrant Holders .............................................................................................14
Table 7. B and C Series Warrants.............................................................................................................14
Table 8. Expected Dilution of Capital ........................................................................................................14
Table 9. Warrant Holders by Range of B Warrants Owned ......................................................................15
Table 10. Warrant Holders by Range of C Warrants Owned ....................................................................15
Table 11. Other Information.......................................................................................................................21
Table 12. Summarized Balance Sheet - Assets........................................................................................23
Table 13. Summarized Balance Sheet - Liabilities....................................................................................24
Table 14. Summarized Corporate Law Income Statement .......................................................................25
Table 15. Income Statement with Reallocations .......................................................................................26
Table 16. Reallocations – Other Operating Income / Expenses ...............................................................27
Table 17. Breakdown of Assets.................................................................................................................30
Table 18. Liquidity Balance .......................................................................................................................31
Table 19. Securities Portfolio by Category ................................................................................................32
Table 20. Securities Portfolio by Maturities ...............................................................................................32
Table 21. Loan Portfolio ............................................................................................................................34
Table 22. Individuals and Business Customers Loan Portfolio .................................................................34
Table 23. Loan Portfolio by Segment ........................................................................................................35
Table 24. Retail Loan Portfolio ..................................................................................................................36
Table 25. MSB Credit Products .................................................................................................................38
Table 26. BPB Highlights...........................................................................................................................39
Table 27. Commercial Loan Portfolio ........................................................................................................40
Table 28. Exports ......................................................................................................................................41
Table 29. Agribusiness Loan Portfolio by Region .....................................................................................42
Table 30. Agribusiness Loan Portfolio by Purpose ...................................................................................43
Table 31. Agribusiness Loan Portfolio by Product ....................................................................................43
Table 32. Agribusiness Loan Portfolio by Financed Items ........................................................................44
Table 33. Funds Released for the 05/06 Crop by Segment......................................................................45
Table 34. Variables Associates to Technical Risk System for Agribusiness – RTA .................................46
Table 35. Foreign Trade Loan Portfolio.....................................................................................................47
Table 36. ACC/ACE Average Volume per Contract..................................................................................47
Table 37. Concentrationof the Loan Portfolio Among the 100 Largest Borrowers ...................................48
Table 38. Concentration of the Loan Portfolio by Macro-sector................................................................48
Table 39. Liabilities....................................................................................................................................50
Table 40. Foreign Borrowing .....................................................................................................................54
Table 41. Shareholders’ Equity .................................................................................................................55
Table 42. BIS Ratio ...................................................................................................................................56
Table 43. Changes in Composition of BIS Ratio .......................................................................................57
Table 44. Fixed Asset Ratio ......................................................................................................................58
Table 45. Balance Sheet of Foreign Exchange Assets and Liabilities......................................................60
Table 46. Balance Sheet by Currencies - Assets......................................................................................61
Table 47. Balance Sheet by Currencies – Liabilities.................................................................................61
Table 48. Abroad Portfolio.........................................................................................................................63
Table 49. Average V@R, Minimum and Maximum ...................................................................................63
Table 50. Portfolios Indexed to Fixed Interest Rates ................................................................................63
Table 51. Domestic Trading Portfolio ........................................................................................................64
Table 52. International Trading Portfolio ...................................................................................................64
Table 53. Average V@R, Minimum and Maximum ...................................................................................64
Table 54. Gross Financial Margin .............................................................................................................66
Table 55. Analysis of Volume (Assets – Permanent) and Quartely Spread – 1Q05 and 1Q06................66
Table 56. Analysis of Volume (Remunerated Assets) and Annual Spread – 1Q05 e 1Q06.....................67
Table 57. Investment Rate ........................................................................................................................68
Table 58. Investment Rate on Available Funds in Foreign Currency........................................................68
Table 59. Investment Rate on Securities and Interbank Investments.......................................................68
Table 60. Securities Income......................................................................................................................68
Table 61. Investment Rate on Loans and Leasing....................................................................................69
Table 62. FX Gain (Loss) and Other FX Operations.................................................................................70
Table 63. Funding Cost .............................................................................................................................71
Table 64. Cost of Foreign Borrowing.........................................................................................................71
Table 65. Market Funding Cost .................................................................................................................71
Table 66. Investment Rates and Funding Costs .......................................................................................72
Table 67. Analytical Spread – Investment Rates ......................................................................................73
Table 68. Analytical Spread – Funding Costs ...........................................................................................74
Table 69. Reconciliation with the Gross Financial Margin ........................................................................75
Table 70. Main Components of the Spread...............................................................................................75
Table 71. Nominal Spread by Transaction ................................................................................................76
Table 72. Compositions of the Transactions .............................................................................................77
Table 73. Weighted Spread per Transaction.............................................................................................77
Table 74. Analysis of Volume and Management Spread Quarterly 1Q05 and 1Q06 (12 months) ...........77
Table 75. Net Financial Margin .................................................................................................................79
Table 76. Expenses with Allowance for Loan Losses over Portfolio.........................................................79
Table 77. Loan Portfolio by Level of Risk..................................................................................................80
Table 78. Delinquency Ratio .....................................................................................................................81
Table 79. Retail Loan Portfolio by Level Risk ...........................................................................................83
Table 80. Changes in provision levels for doubtful or non-performing loans - Retail................................83
Table 81. Commercial Loan Portfolio by Level Risk .................................................................................84
Table 82. Changes in provision levels for doubtful or non-performing loans - Commercial .....................84
Table 83. Agribusiness Loan Portfolio by Level Risk ................................................................................85
Table 84. Changes in provision levels for doubtful or non-performing loans - Agribusiness ....................86
Table 85. Foreign Trade Loan Portfolio by Risk Level ..............................................................................87
Table 86. Changes in the Allowance – Foreign Trade ..............................................................................87
Table 87. Loan Protfolio Abroad by Level of Risk .....................................................................................88
Table 88. Contribution Margin ...................................................................................................................89
Table 89. Sevices Revenues.....................................................................................................................89
Table 90. Investment Funds and Managed Portfolios by Customer .........................................................92
Table 91. Commercial Income ..................................................................................................................96
Table 92. Personnel Expenses .................................................................................................................97
Table 93. Other Administrative Expenses .................................................................................................99
Table 94. Distribution Network ................................................................................................................100
Table 95. Wholesale Pillar Branches ......................................................................................................101
Table 96. Distribution Network Abroad....................................................................................................102
Table 97. Coverage Ratios......................................................................................................................105
Table 98. Operating Income....................................................................................................................107
Table 99. Eficiency Ratio.........................................................................................................................107
Table 100. Efficiency Ratio Statement - Quarterly ..................................................................................108
Table 101. Net Income ............................................................................................................................109
Table 102. Return on Equity....................................................................................................................110
Table 103. ROE decomposition - Quarterly ............................................................................................111
Table 104. Net Value Added ...................................................................................................................112
Table 105. Gross Value Added ...............................................................................................................113
Table 106. Insurance, Pension Plans and Capitalization........................................................................115
Table 107. Income Statement by Line of Business.................................................................................115
Table 108. Brasilseg Data .......................................................................................................................117
Table 109. Brasilsaúde Data ...................................................................................................................117
Table 110. Aliança do Brasil Data ...........................................................................................................118
Table 111. Brasilcap Data .......................................................................................................................118
Table 112. Brasilprev Data ......................................................................................................................118
Table 113. BB Previdência Data .............................................................................................................119
Table 114. Balance Sheet – Assets ........................................................................................................120
Table 115. Balançe Sheet - Liabilities .....................................................................................................121
Table 116. Summarized Corporate Law Income Statement ...................................................................122
Table 117. Income Statement with Reallocations ...................................................................................123
Table 118. Analytical Spread...................................................................................................................124
Index of Figures
Figure 1. Total distribution of the Free Float .............................................................................................12
Figure 2. Free Float Distribution at the CBLC ...........................................................................................12
Figure 3. BB Shares vs. Ibovespa.............................................................................................................16
Figure 4. BB Shares in Bovespa ...............................................................................................................17
Figure 5. Finance Volume and Quantity Traded BBAS3...........................................................................17
Figure 6. Market Ratios .............................................................................................................................19
Figure 7. Earning Assets vs. Interst Bearing Liabilities .............................................................................29
Figure 8. Breakdown of Assets .................................................................................................................30
Figure 9. Liquidity Assets (-) Liquidity Liabilities .......................................................................................31
Figure 10. Securities Portfolio with Maturities between 0 and 5 years .....................................................33
Figure 11. Breakdown of the Loan Portfolio ..............................................................................................35
Figure 12. Main Retail Loan Portfolio Products.........................................................................................37
Figure 13. Main Products for Micro and Small Businesses.......................................................................38
Figure 14. Main Products for Wholesale Customers.................................................................................40
Figure 15. Trade Balancel (FOB) ..............................................................................................................41
Figure 16. Production vs. Planted Area.....................................................................................................42
Figure 17. Main Products of the Agribusiness Loan Portfolio ...................................................................44
Figure 18. Agribusiness Loan Portfolio by Funding Souces .....................................................................45
Figure 19. Equalizations Revenues...........................................................................................................45
Figure 20. Main Products of the Foreign Loan Portfolio............................................................................47
Figure 21. Breakdown of Tax Credit..........................................................................................................49
Figure 22. Changes in the Liabilities .........................................................................................................51
Figure 23. Deposits and Market Funding ..................................................................................................52
Figure 24. Market Share of BB Funding....................................................................................................53
Figure 25. Brazilian Sovereign Risk (points) vs. Marking to Market (R$ million) ......................................55
Figure 26. Bis Ratio - %.............................................................................................................................56
Figure 27. Changes in FX Exposure - %...................................................................................................60
Figure 28. Balance Sheet by Index ...........................................................................................................62
Figure 29. Mismatch Gaps by Index..........................................................................................................62
Figure 30. Availability of Free Funds – DRL % .........................................................................................65
Figure 31. Analysis of Volume (Assets – Permanent) Quarterly Spread – 1Q05 e 1Q06 ........................67
Figure 32. Securities Portfolio by Index.....................................................................................................69
Figure 33. FX Gain (Loss) and Other FX Operations................................................................................70
Figure 34. Anaysis of Spread - %..............................................................................................................72
Figure 35. Analysis of Volume and Spread of Uses and Funding Quarterly – 1Q05 and 1Q06...............78
Figure 36. Expenses with Allowance for Loan Losses over Portfolio .......................................................79
Figure 37. Breakdown of Allowances ........................................................................................................80
Figure 38. CLP/CT BB vs Banking Industry - %........................................................................................81
Figure 39. Delinquency Ratio -%...............................................................................................................82
Figure 40. Growth in Service Revenues....................................................................................................89
Figure 41. Breakdown and Performance os Services Revenues..............................................................90
Figure 42. Revenues from Relationship Fees and Customer Base..........................................................91
Figure 43. Costumer Base.........................................................................................................................91
Figure 44. Asset Management ..................................................................................................................92
Figure 45. Investment Funds and Managed Portfolios .............................................................................93
Figure 46. Investiment Funds ....................................................................................................................93
Figure 47. Managed Portfolios and Investment Clubs ..............................................................................93
Figure 48. Credit Cards .............................................................................................................................94
Figure 49. Credit Cards Sales by Brand....................................................................................................94
Figure 50. BB Collection Volume ..............................................................................................................95
Figure 51. Changes in Commercial Income ..............................................................................................96
Figure 52. Changes in Workforce..............................................................................................................97
Figure 53. Tenure ......................................................................................................................................98
Figure 54. Productivity Ratios ...................................................................................................................98
Figure 55. Total Distribution Network ......................................................................................................100
Figure 56. Distribution Network - Wholesale ...........................................................................................101
Figure 57. Distribuition Network - Government .......................................................................................101
Figure 58. Automated Teller Machines ...................................................................................................103
Figure 59. Share of Automated Transactions / Total Transactions - % ..................................................103
Figure 60. Costumer Access Options......................................................................................................104
Figure 61. Coverage Ratios.....................................................................................................................105
Figure 62. Productivity Ratios .................................................................................................................106
Figure 63. Business vs. Expenses ..........................................................................................................106
Figure 64. Efficiency Ratio - % ................................................................................................................108
Figure 65. Changes in Earnings before Taxes........................................................................................109
Figure 66. Change in Net Income ...........................................................................................................110
Figure 67. Change in ROE ......................................................................................................................110
Figure 68. Net Value Added ....................................................................................................................114
Figure 69. Gross Value Added ................................................................................................................114
Figure 70. Combined Ratio......................................................................................................................116
Presentation
The Performance Analysis is a report published quarterly and is intended for market analysts, investors
and others who need a deeper understanding of the economic and financial situation of Banco do Brasil
(BB). The report starts with an overview of the economic environment, which is followed by an analysis
of the performance of BB paper and of the main practices of corporate governance adopted by the
institution. Continuing the report, there are separate analyses of the capital structure and the results.

The reader will also find tables with historical series, from 8 periods, of the summarized balance sheet,
the summarized corporate income statement, the income statement with reallocations, the analytic
spread, and other information about profitability, productivity, quality of the loan portfolio, capital
structure, capital market, and structural data.

The Balance Sheet Analysis brings a more detailed study of the main components of the balance sheet
such as the securities portfolio, the loan portfolio, tax credits, market borrowings, and shareholders’
equity, amongst others.

The Analysis of Results shows, step by step, the items of the statement of income with reallocatons. The
cosporate income statement is submitted to these reallocations with the intention of favoring a better
understanding of the results, making the historical series more comparable and facilitating accurate
forecasts from this data.

Finally, the financial statements and the explanatory notes for the quarter under analysis are presented.

ON-LINE ACCESS

The Performance Analysis report can also be read through Banco do Brasil’s Investor Relations website.
Further information is also made available about the Bank, such as: corporate governance, interactive
balance sheets and fundamentalist indicators, news items, frequently asked questions, and the
Download Center, containing versions of this report for the Adobe® Reader® software, available in the
complete version or split into three: general information, balance sheet analysis, and complete financial
statements; the historical series in Excel, presentations to the market, Annual Report and Report on
Socioenvironmental Responsibility, the Financial Balance Sheet, audio of the teleconferences on
results, and others.

LINKS OF INTEREST

Banco do Brasil                                         www.bb.com.br/
Investor Relations                                      www.bb.com.br/appbb/portal/ri/index.jsp
Download Center (RI)                                    www.bb.com.br/appbb/portal/ri/dce/MenuCenter.jsp
Shareholder’s Room (also attends to shareholders        www.bb.com.br/appbb/portal/ri/sla/index.jsp
of other companies with custody in BB)




9 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
1 – Economic Environment
Throughout the first quarter of 2006, the economic environment was characterized by volatility in the
financial markets and in oil prices. However, the international marketable, aversion to risk and flow of
resources to emerging countries were not significantly affected.

The combination of strong foreign heated demand and prices of commodities on the rise continued
being important to set off the effects of Real appreciation upon the foreign trade balance, which
accumulated in twelve months, reached US$ 45.8 billion at the end of quarter, against US$ 44.8 billion
reached at the end of 2005, which result has also contributed to the fall in jectory of risk-country in the
period.

The evaluation the inflationary pressures at the beginning of year were punctual proved to be accurate,
as demonstrated by price indicators at the end of quarter. Besides, the foreign exchange behavior and
the good management of the monetary policy provided convergence of inflation expectations to a core
goal of 4.5% this year. In this context, the Central Bank of Brazil went ahead with gradual flexibilization
monetary policy with the Selic rate reaching 16.5% p.a last March against 18.5% p.a. in December of
last year.

Controlled inflation, the continuity of the decrease in real interest, together with credit expansion and real
growth in salaries, have been important drivers for the more accelerated growth of economy.

Table 1. Main Macroeconomic Indicators

                                                         1Q05             4Q05              1Q06        12 months
Ptax Dollar Sale                                           0.4              5.3              (7.2)            (18.5)
Accumulated IGP-DI FGV                                     1.7              1.0                0.2             (0.3)
Accumulated IGP-M FGV                                      1.5              1.0                0.7               0.4
Acumulated IPCA –IBGE                                      1.8              1.3                1.4               5.3
Accumulated Selic                                          4.2              4.3                4.0              18.9
Accumulated TR (formerly BTN)                              0.6              0.7                0.5               2.8
Ptax Dollar Sale *                                      2.6662           2.3407            2.1724         -
* Closing Rate
Source: Economática


The Selic rate was less in the 1Q06 in relation to 1Q05 and 4Q05. The behavior of the Selic rate is
reflected mainly in securities income and in the expenses with the remuneration of time deposits and
money market borrowing.

In 1Q06, appreciation of the currency is seen in relation to 1Q05 and 4Q05. The dollar ended the quarter
quoted at R$ 2.1724, against R$ 2.6662 in 1Q05 and R$ 2.3407 in 4Q05. In view of its risk
management policy of working with low foreign exchange exposure, the volatility of the foreign exchange
rate only brings about effects of a tax nature in the Bank’s results. The index that measure variation in
prices, IGP-DI, IGP-M and IPCA, showed less variation in 1Q06.




                                                      Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 10
2 – BB Securities
2.1 Shares
In March 2006, Banco do Brasil’s capital stock was R$ 10,797,336,780.83 made up of 810,617,415
ordinary shares, represented book entries and no nominal value. The largest shareholder is the National
Treasury, with 72.1% of the capital, followed by Caixa de Previdência dos Funcionários do Banco do
Brasil (Previ) with 13.9%, and BNDESPar – the equity investment company of National Bank for
Economic and Social Development – which has 5.7% of the capital. Without taking into consideration
the shares that are held in treasury, the other shares – 6.9% - are well dispersed in the market.

Table 2. Shareholding Breakdown

Shareholders                                          %
National Treasury                                   72.1
Previ                                               13.9
BNDESPar                                             5.7
Free Float                                           6.9
 Individuals                                         2.5
 Companies                                           1.0
 Foreign Capital                                     3.3
Subtotal                                            98.6
Shares in Treasury                                   1.4
Total                                              100.0


The BB shareholder base is characterized by the large number of shareholders with a small holding in
the capital. As can be seen from the table below, 262,734 shareholders (98.8%) account for 0.9% of the
capital, while 3,179 shareholders (1.2%) hold 99.1% of the total number of shares.

Table 3. Shareholders by Range of Shares Owned

Range of shares owned                   N. Shareholders          % Shareholders   Qty. Shares   % Qty. Shares
1 to 10 shares                                  178,028                    66.9       636,480             0.1
11 to 50 shares                                  58,211                    21.9     1,317,155             0.2
51 to 100 shares                                 11,446                     4.3       827,979             0.1
101 to 1,000 shares                              15,049                     5.7     4,382,627             0.5
Over 1,000 shares                                 3,179                     1.2   803,453,174            99.1
Total                                           265,913                   100.0   810,617,415           100.0


Table 4. Free Float by Range of Shares Owned

Range of shares owned                   N, Shareholders          % Shareholders   Qty, Shares   % Qty. Shares
1 to 10 shares                                  178,028                    67.0       636,480             1.1
11 to 50 shares                                  58,211                    21.9     1,317,155             2.4
51 to 100 shares                                 11,446                     4.3       827,979             1.5
101 to 1,000 shares                              15,049                     5.7     4,382,627             7.9
Over 1,000 shares                                 3,176                     1.2    48,398,074            87.1
Total                                           265,910                   100.0    55,562,315           100.0


With regard to the tax residence of the investors, it is to be noted that the quantity of shareholders
resident in Brazil is 265,727, and they hold 96.7% of the total shares, while the quantity of foreign
shareholders is 186, and they hold 3.3% of the shares.




11 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 5. Tax Residence of the Investors

                                           N. Shareholders       % Shareholders           Qty. Shares        % Qty. Shares
Brazil                                              265,727                    99.9        783,934,866                    96.7
Abroad                                                  186                      0.1        26,682,549                     3.3
Total                                               265,913                   100.0        810,617,415                   100.0


                                Total distribution of the Free Float
                 Mar/05                                Dec/05                                  Mar/06




     36.9%                                                            37.5%                                      36.7%
                             45.3%                                                48.0%
                                        49.7%




             17.7%                                              12.8%                                    15.3%


                           Private Individuals   Corporate Bodies       Foreign Capital


Figure 1. Total distribution of the Free Float

With regard to the total of the Bank’s shares that are well dispersed in the market (6.9%), that is, that is,
the free float, a predominance of foreign capital can be seen (48.0%), followed by Individuals (36.7%)
and Companies (15.3%).

The major part of the free float, 72.3% (40.2 million shares), is under custody of the Brazilian Clearing
and Depository Corporation (CBLC), distributed as shown in the following figure. It is to be noted that, of
the total shares available for trading at the CBLC, 66.4% is to be found in the possession of foreign
investors.

                               Free Float Distribution at the CBLC
                Mar/05                                  Dec/05                                    Mar/06


                                                                    17.6%                                    17.1%
                          26.2%



                                                                         13.1%                                       16.5%
   53.1%


                                           69.3%                                       66.4%
                          20.7%




                           Private Individuals   Corporate Bodies       Foreign Capital
Figure 2. Free Float Distribution at the CBLC




                                                           Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 12
2.1.1 Equity Held by Foreign Investors

The participation of foreigners in the Bank’s capital is limited to 5.6% at the most. This limitation derives
from a legal directive, expressed in Article 52 of the Transitory Constitutional Provisions Act, in the
Federal Constitution of the Federal Republic of Brazil, and represents the participation of these investors
at the time of the promulgation of the Constitution, in 1988.

According to the provisions of the article of the Constitution referred to, an increase in the percentage of
participating interests of Individuals or Companies, resident or domiciled abroad, in the capital of
financial institutions with their registered office in Brazil, is forbidden. Accordingly, any alteration will
depend on the publication of an instruction, on the initiative of the President of the Federal Republic of
Brazil.

On 04/19/2000, the National Monetary Council (CMN) approved, to be forwarded to the President of the
Republic, a proposal for increasing foreign interest in Banco do Brasil S.A’s capital stock, from the
present 5.6% up to 12.5%.

From 2002 onwards, a noteworthy increase has been noted in the participating interest of foreigners in
the Bank’s capital. BB closed 1Q06 with 3.3% of the free float in the possession of foreigners, which is
stable in relation to December 2005.

                                    Equity Held by Foreign Investors

                                                                        3.4%   3.3%
                                                                 2.8%


                                                     1.6%
                                1.0%       0.9%




                                2001       2002      2003        2004   2005   1Q06


Figure 3. Equity Held by Foreign Investors




13 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
 2.2 Warrants
In 1996, on the occasion of BB’s capital increase, three series of subscription warrants were issued: A,
B e C, to be due on 2001, 2006 and 2011, respectively. The exercise price of such warrants was
established at R$ 8.50, readjusted by IGP-DI. On 03.31.2006, the updated price was R$ 21.69. It is
worth pointing out that the period for exercising the “B” Warrants starts on March 31, 2006.

The breakdown of the warrant holders is shown in the following table:

Table 6. Breakdown of the Warrant Holders

                            %BNB         %BNC
Private Individuals             25.1        38.1
Corporate Bodies                49.1        38.5
Foreign Capital                 25.8        23.4
Total                          100.0       100.0


The “B” and “C” warrants in circulation, showed the following characteristics in March 2006:

Table 7. B and C Series Warrants

  Series          Code          Exercise Date               Quantity             Exercise Price R$          Quotation in R$
B Warrants BBAS 12             03.31 to 06.30.2006                 15,993,142                       21.68                 31.01
C Warrants BBAS 13             03.31 to 06.30.2011                 27,028,746                       21.68                 27.99


In a simulation, based on the assumption that there will be no additional capital increases before 2011
and that the total amount of "B" and "C" warrants will be exercised on maturity, the expected dilution of
BB’s capital, as per the table below, is 5.4%, of which 2.0% arises from the exercise of B warrants and
3.4% from the exercise of the C warrants.

Conversion:
1 Warrant = 1.043933 shares
Total of the Capital = 810,617,415

Table 8. Expected Dilution of Capital

Warrants                 Qty. Warrants             Qty. Shares            Dilution of Capital - %
B Series                    15,993,142               16,695,769                              2.0
C Series                    27,028,746               28,216,200                              3.4
Total                       43,021,888               44,911,969                              5.4


The basis of the Series "B" and "C" Subscription Warrants is characterized by the concentration of
warrant holders with little participation in the total of the warrants. As can be observed, in relation to the
"B" warrants, 159,493 warrant holders (99.7%) hold 13.4% of the warrants, and 485 (0.3%) warrant
holders hold 86.7% of the total. In relation to the "C" warrants, 208,910 warrant holders (99.6%) hold
12.6% of the warrants, and 893 warrant holders (0.4%) hold 87.4% of the total.




                                                                  Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 14
Table 9. Warrant Holders by Range of B Warrants Owned

Range of B Warrants Owned                             N. Warrant   % Warrant
                                                                               Qty. B Warrants   % Qty. B Warrants
                                                         Holders     Holders
1 to 10 warrants                                         129,197        80.8           402,538                 2.5
11 to 50 warrants                                         22,837        14.3           494,033                 3.1
51 to 100 warrants                                         3,786         2.4           265,763                 1.7
101 to 1,000 warrants                                      3,673         2.3           971,631                 6.1
Over 1,000 warrants                                          485         0.3        13,859,177                86.7
Total                                                    159,978       100.0        15,993,142               100.0


Table 10. Warrant Holders by Range of C Warrants Owned

                                                     N. Warrant    % Warrant
Range of C Warrants Owned                                                      Qty. C Warrants   % Qty. C Warrants
                                                        Holders      Holders
1 to 10 warrants                                        161,224         76.8           515,352                 1.9
11 to 50 warrants                                        35,537         16.9           778,055                 2.9
51 to 100 warrants                                        5,938          2.8           424,338                 1.6
101 to 1,000 warrants                                     6,211          3.0         1,678,584                 6.2
Over 1,000 warrants                                         893          0.4        23,632,417                87.4
Total                                                   209,803        100.0        27,028,746               100.0




15 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
2.3 Performance of the Shares
Market

In the 1Q06, the Brazilian stock market proved to be the financial investment that brought the best return
for its investors. In March, Ibovespa reached 37,951 points, higher than the 26,610 points in March
2005.

The behavior of the stock market over the quarter can be divided into two distinct periods. The months
of January and February were basically influenced by three factors: the optimism of investors regarding
the good economic foundations of the country, the expectation of a stronger reduction in the Selic
interest rate in the next few months, and ressumption of PIB growth 2006. Associated to this, the
American economy, in spite of the expectation of continuity of the cycle of increases in interest,
continues to show signs of strength, contributing to the maintenance of a global environment of low
aversion to risk.

After remaining positive during the two first months of the year, the stock market showed a volatile
behavior in March. The result of the month was mainly influenced by the increase in the foreign
exchange and the disclosure regarding the new increase in the interest rate of the United States of
America and other developed countries.

BB Shares

The Bank’s shares appreciation of 95.6%, while Ibovespa rose 42.6% in the last 12 months, as shown in
the following graph.

                                     BB Shares vs. Ibovespa


                                                                                                       95.6%



                                                                                                       42.6%




  Mar/05 Apr/05 Mai/05 Jun/05   Jul/05 Aug/05 Sep/05 Oct/05 Nov/05 Dec/05 Jan/06 Feb/06 Mar/06


                        Daily Volume BBAS3            BBAS3               Ibovespa
Source: Economática
Figure 3. BB Shares vs. Ibovespa




                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 16
Participation in Ibovespa

The Bovespa Index (Ibovespa) is an index that represents the Brazilian stock market, made up of debt
securities that were traded in at least 80% of the trading sessions carried out. From this, the Tradability
Index is worked out, made up by the financial volume and by the quantity traded of each security
transacted, which determines the ranking of the security’s share in the market. Out of the total of
securities, the 80% with the highest Tradability index are determined, to represent the Ibovespa index.

Throughout 2004, a gradual reduction has been seen in the participation of shares from the banking
sector in the composition of Ibovespa’s theoretical portfolio. However, a recovery is to be seen of the
participation of the sector in 2005. Banco do Brasil’s share has followed the trend verified in the sector,
closing the year with 1.0% of Ibovespa. However, for the two first quarters of 2006, BB’s participation in
the index was slightly lower than the one showed at the end of 2005, as it can be seen in the following
graphic:
                                                     BB Shares in Bovespa - %
                                                                                                                     9,100           9,501
                 8,773
                                 7,773                                            7,525              8,034
                                                   6,639          6,382

                 1.111
                                 0.967                                            0.921              1.000           0.989           0.962
                                                  0.826          0.832



               Jan/04 -         May/04 -          Sep/04 -      Jan/05 -         May/05 -          Sep/05 -         Jan/06 -       May/06 -
                Apr/04          Aug/04            Dec/04        Apr/05           Aug/05            Dec/05            Apr/06        Aug/06


                                                             BBAS3              Banking Industry


Source: Bovespa
Figure 4. BB Shares in Bovespa

The Bank’s share in Ibovespa for 2005 can be explained through the following graphs. The Bank’s
quantity of trades and the financial volume traded were higher in 1Q06 than the first period of the
previous year.

                                  Finance Volume and Quantity Traded - BBAS3

                                 Finance Volume                                                               Quantity Traded

  22,000,000                                                                      650.0
  17,000,000                                                                      550.0
                                                                                  450.0
  12,000,000
                                                                                  350.0
   7,000,000                                                                      250.0
   2,000,000                                                                      150.0
               mar/04 jun/04 sep/04 dec/04 mar/05 jun/05 sep/05 dec/05 mar/06                             /04 dec/04 mar/05 jun/05 sep
                                                                                          mar/04 jun/04 sep                          /05 dec/05 mar/06



Source: Economática
Figure 5. Finance Volume and Quantity Traded BBAS3




17 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Market capitalization reached R$ 44,364 million at the end of March 2005, against R$ 23,661 million in
the same period of the previous year, an increase of 87.5%. The price/book value ratio reached at
2.31x, against 1.58x in 1Q05, and the net income per share reached R$ 2.93 in March 2006, against R$
1.21 in March 2005.

                                                                                        Market Ratios
                                       Price / Ea rnings 12 mo nths                                                           Net Income per Share - R$



                                                                                                                                                                                      2.93
                                8.59                               8.29          8.12     8.02
                                            7.01       7.06
        6.05      6.38
                                                                                                                                                             1.80

                                                                                                                1.14                    1.21         1.27
                                                                                                      1.10                   0.96                                           0.92


       Jun/04    Sep /04 Dec/04            Mar/05 Jun/05          Sep /05 Dec/05         Mar/06       2Q 04     3Q 04        4Q 04     1Q 05        2Q 05    3Q 05        4Q 05       1Q 06




                                      Price / Book Valu e                                                                           Book Value per S hare - R$


                                                                                          2.31                                                                                                24.03
                                                                  2.06           2.00                                                                               21.05          21.08
                               1.84                                                                              18.81                                 19.26
                                                      1.64                                           17.57                    17.65         18.68
                                           1.58
       1.28     1.34




      Jun/04    Sep/04     Dec/04         Mar/05    Jun/05        Sep/05     Dec/05      Mar/06      Jun/04     Sep /04       Dec/04     Mar/05        Jun/05       Sep /05        Dec/05     Mar/06




                          Market Capitalization - R$ million                                                           Free Float Capitalization - R$ million

                                                                                                                                                                                      3,084
                                                                                         44,364
                                                                                                                                                             2,396        2,345
                                                                  34,692     33,733
                                                                                                                          1,794                     1,747
                            25,979                                                                                                     1,634
                                          23,661     25,300                                                    1,339
                18,447                                                                               1,192
       16,470


       Jun/04   Sep /04 Dec/04            Mar/05     Jun/05       Sep/05     Dec/05      Mar/06     Jun/04     Sep /04 Dec/04 Mar/05            Jun/05       Sep /05 Dec/05 Mar/06




                                       Net Pr ofit - R$ million                                              Divid ends a nd Intere st on Equity - R$ million


                                                                                         2,343
                                                                                                                                                                                    1,498

                                                                  1,438
                                                                                                                                                      870           954
                                           965       1,014
       805       833           771                                               737                                                  628
                                                                                                        450            504


       2Q 04    3Q 04          4Q 04       1Q 05     2Q 05        3Q 05          4Q 05    1Q 06        1H04            2H04          1H05            2H05        2004               200 5




                                         Divid end Yield - %                                                                         Payout Ratio - %


                                                                                         4.4
                                                                                                                                                      40.0
                                                                           3.7                                                                                                       36.1
                                                                                                        31.7           31.4            31.7                          31.5
         2.7                                             2.6
                                           2.5
                         1.9



        1H04           2H04              1H05           2H05              200 4          200 5         1H04            2H04          1H05            2H05           2004             200 5




                                                                                                  Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 18
Figure 6. Market Ratios


3 – Corporate Governance
Banco do Brasil constantly evaluates its Corporate Governance practices, with the intention of improving
the principles and mechanisms that ensure the Bank’s good government. Accordingly, various kinds of
work have been carried out in the Bank with a focus on analyzing the following points: structure of the
shareholder capital; shareholders’ rights and relations with stakeholders; transparency and audit;
management structure and effectiveness.

The Board of Directors (BD) is composed of seven members, having a one-year term of office, where
reelection is permitted until the limit of 8 (eight) consecutive years. The advisory member may return
after one year. Of the seven members, three are appointed by minority shareholders and the others by
the majority shareholder. The bank maintains a permanent statutory Audit Committee, composed of five
members, among which two are appointed by minority shareholders and the others by the controlling
shareholder. The current members of both Boards were elected by General Shareholders’ Meetings
dated April 28, 2006, the summarized decisions of which are as follows:

General Shareholders’ Meetings:

I – approve the capital budget of Banco do Brasil for the year 2006;
II – declare cognizance of the Directors’ Report and approve accounts, balance sheets, financial
statements, reports of the Audit Committee and independent auditors and report of the Audit Committee
related to the fiscal year of 2005;
III – approve the proposal for distribution for the net income of the fiscal year 2005 and dividend
distribution;
IV – elect the following members and respective deputies to compose the Audit Committee for the
2006/2007 term of office:

Member: Bruno Walter Coelho Saraiva
Deputy: Marcos Machado Guimarães

Member: José Luiz Gomes Rôlo
Deputy: Pedro Paulo Bernardes Lobato

Member: Otávio Ladeira de Medeiros
Deputy: Daniel Sigelmann

Member: Eduardo Grande Bittencourt
Deputy: Egon Handel

Member: Eustáquio Wagner Guimarães Gomes
Deputy: Alfredo Luiz Buso

V – set the remuneration of the Audit Committee members;
VI – elect the following members to compose the Board of Directors of Banco do Brasil, for the
2006/2007 term:




19 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
President: Bernard Appy
Vice-President: Rossano Maranhão Pinto
Members:       Tarcísio José Massote de Godoy
               José Carlos da Rocha Miranda
               Carlos Augusto Vidotto
               João Carlos Ferraz
               Francisco Augusto da Costa e Silva

VII – set the full annual remuneration of the members of the management units

Extraordinary Shareholders’ Meetings:

I – approve the capitalization of the reserve balance portion for expansion and the amount recorded in
capital reserves, without the issuance of new shares, raising the corporate capital of Banco do Brasil to
R$ 11,608,512,813.37 (eleven billion, six hundred and eight million, five hundred and twelve thousand,
eight hundred and thirteen Reais and thirty-seven centavos);
II – approve amendments to articles 7, 14 and 18 of the Bylaws; and
III – approve the opening of a real estate loan portfolio.




                                                       Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 20
4 – Other Information
Table 11. Other Information
                                                        2Q04      3Q04     4Q04     1Q05     2Q05     3Q05     4Q05     1Q06
Profitability
Net Income per Share - R$                                1.10      1.14     0.96     1.21     1.27     1.80     0.92     2.93
ROE – Annualized %                                       27.7      27.5     24.0     29.3     29.6     40.8     18.7     63.0
ROE – Accumulated and Annualized %                       23.9      24.5     23.0     29.3     28.6     30.5     26.8     63.0
ROA - Annualized %                                        1.4       1.4      1.3      1.6      1.7      2.4      1.2      3.7
GFM / (Assets - Permanent) – Annualized                   7.4       7.1      7.1      6.9      7.3      7.3      7.5      7.0
GFM / Remunerated Assets – Annualized                     9.2       8.8      8.7      8.4      9.0      9.0      9.2      8.5
Produtividade
Efficiency1 - %                                          55.2      52.3     59.3     50.4     47.6     44.9     50.0     48.1
Efficiency2 - %                                          59.0      56.8     62.7     56.1     49.6     54.8     53.6     51.3
Service Revenues / Personnel Expenses - %                98.1      98.4     92.5     97.9    119.6    100.8     99.5    112.1
Service Revenues / Administrative Expenses1 - %          49.3      55.6     49.0     55.0     62.5     58.5     57.0     65.0
Service Revenues / Administrative Expenses2 - %          53.1      54.9     51.2     54.4     64.0     56.3     56.4     64.1
Personnel Expenses per Collaborator - R$               17,314    17,780   18,554   17,892   18,034   18,054   19,143   18,969
Collaborators / (Branches + PAA + PAB)                     17        17       17       17       17       17       18       17
Customers per Collaborator                                224       229      234      232      234      236      243      248
Assets per Collaborator – R$ thousand                   2,536     2,614    2,654    2,683    2,499    2,594    2,688    2,819
Loan Portfolio / Points of Service – R$ million           6.0       5.9      6.1      6.4      6.6      6.4      6.9      7.1
Quality of the Loan Portfolio
Allowance / Loan Portfolio - %                            6.1       6.4      6.1      6.1      6.1      6.3      6.6      7.3
Allowance / (E + F + G + H) - %                         128,9     127,8    119,1    119,0    122,6    109,5    109,2    108.3
Portfolio Net of Allowance / Total Portfolio - %         95.0      94.8     94.9     94.8     94.9     94.5     93.4     92.7
Capital Structure
Leverage (times)                                         17.7    17.1    16.9    16.5    15.2    14.6    15.0    13.8
BIS Ratio- %                                             14.5    15.7    15.2    15.6    15.9    17.4    17.1    18.3
Total Quantity of Shares – thousand                   732,018 732,018 810,617 810,617 810,617 810,617 810,617 810,617
Quantity of Shares in Treasury – thousand              11,258 11,258 11,258 11,258 11,258 11,258 11,258 11,258
Capital Market
Price / Earnings 12 months                               6.05      6.38     8.59     7.01     7.06     8.29     8.12     8.02
Price / Book Value                                       1.28      1.34     1.84     1.58     1.64     2.06     2.00     2.31
Market Capitalization - R$ million                     16,470    18,447   25,979   23,661   25,300   34,692   33,733   44,364
Book Value per Share - R$                               17.57     18.81    17.65    18.68    19.26    21.05    21.08    24.03
Price of Share - R$                                     22.50     25.20    32.50    29.60    31.65    43.40    42.20    55.50
Structural Information
Total of Points of Service                             13,908    14,230   14,450   14,564   14,593   14,716   14,804   14,866
  Branches                                              3,618     3,662    3,722    3,786    3,814    3,857    3,894    3,923
  PAA                                                     187       188      188      185      185      186      188      190
  PAB                                                   1,520     1,495    1,455    1,400    1,358    1,318    1,300    1,273
  PAE                                                   5,280     5,461    5,614    5,665    5,657    5,643    5,668    5,700
  SAA                                                   3,285     3,406    3,455    3,519    3,572    3,706    3,749    3,775
  PAP                                                      18        18       16        9        7        6        5        5
Total of Customers – thousand                          20,055    20,607   21,089   21,219   21,910   22,329   22,907   23,259
  Individuals – thousand                               18,779    19,234   19,720   19,858   20,511   20,924   21,475   21,812
  Businesses – thousand                                 1,274     1,373    1,369    1,361    1,398    1,405    1,432    1,447
Total of Savings Accounts – thousand                   12,023    12,506   13,016   13,090   13,555   13,810   14,228   14,489
  Individuals – thousand                               11,914    12,392   12,896   12,980   13,442   13,701   14,113   14,374
  Businesses – thousand                                   109       114      120      110      114      110      115      115
Collaborators                                          89,665    90,137   90,064   91,556   93,569   94,641   94,114   93,865
  Employees                                            78,995    79,611   79,725   80,904   82,969   84,048   83,751   83,405
  Interns                                              10,670    10,526   10,339   10,652   10,600   10,593   10,363   10,460
1 Law Income Statement
2 Statement with Reallocations




21 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                         2Q04        3Q04       4Q04       1Q05       2Q05       3Q05       4Q05       1Q06
Global Ratings
 Fitch Ratings
   Individual                                              C/D         C/D        C/D        C/D        C/D        C/D        C/D        C/D
   Short-Term - Local Currency                               B           B          B          B          B          B          B          B
   Long-Term - Local Currency                              BB-         BB-         BB         BB         BB         BB         BB         BB
   Short-Term - Foreign Currency                             B           B          B          B          B          B          B          B
   Long-Term - Foreign Currency                             B+          B+        BB-        BB-        BB-        BB-        BB-        BB-
 Moody's
   Financial Strength                                       E+          E+         E+         E+         E+         E+          D          D
   Short-Term - Local Currency                             P-2         P-2        P-2        P-2        P-2        P-2        P-2        P-2
   Short-Term - Foreign Currency                            NP          NP         NP         NP         NP         NP         NP         NP
   Long-Term Debt- Foreign Currency                        Ba3         Ba2        Ba2        Ba2        Ba2        Ba1        Ba1        Ba1
   Long-Term Deposits - Local Currency                      A3          A3         A3         A3         A3         A3         A3         A3
   Long-Term Deposits - Foreign Currency                    B3          B2         B2         B2         B2         B1         B1         B1
 Standard & Poor's
   Long-Term - Local Currency                               BB          BB        BB         BB         BB         BB         BB         BB
   Long-Term - Foreign Currency                             B+          B+        BB-        BB-        BB-        BB-        BB-        BB-
National Ratings
 Fitch Atlantic Ratings
   Short-Term                                         F1+(bra)     F1+(bra)   F1+(bra)   F1+(bra)   F1+(bra)   F1+(bra)   F1+(bra)   F1+(bra)
   Long-Term                                           AA(bra)      AA(bra)    AA(bra)    AA(bra)    AA(bra)    AA(bra)    AA(bra)    AA(bra)
 Moody's
   Short-Term                                            BR-1        BR-1       BR-1       BR-1       BR-1       BR-1       BR-1       BR-1
   Long-Term                                            Aaa.Br      Aaa.Br     Aaa.Br     Aaa.Br     Aaa.Br     Aaa.Br     Aaa.Br     Aaa.Br
Compulsory Investments
 Demand Deposits
   Rate(1)                                                 45%        45%        45%        45%        45%        45%        45%        45%
   Additional(2)                                            8%         8%         8%         8%         8%         8%         8%         8%
   Compulsory Investments*                                 25%        25%        25%        25%        25%        25%        25%        25%
   Compulsory Investments (micro finance)                   0%         0%         2%         2%         2%         2%         2%         2%
   Free                                                    22%        22%        20%        20%        20%        20%        20%        20%
 Savings Deposits
   Rate(3)                                                 20%        20%        20%        20%        20%        20%        20%        20%
   Additional(2)                                           10%        10%        10%        10%        10%        10%        10%        10%
   Compulsory Investments*                                 40%        50%        50%        50%        50%        55%        55%        55%
   Free                                                    30%        20%        20%        20%        20%        15%        20%        20%
 Time Deposits
   Rate(4)                                                 15%        15%        15%        15%        15%        15%        15%        15%
   Additional(2)                                            8%         8%         8%         8%         8%         8%         8%         8%
   Free                                                    77%        77%        77%        77%        77%        77%        77%        77%
 Judicial Deposits
   Rate                                                    0%          0%         0%         0%         0%         0%         0%         0%
   Free                                                  100%        100%       100%       100%       100%       100%       100%       100%
* In BB, the compulsory investments are applied in Rural Credit.
(1) Paid over in cash without remuneration
(2) Paid over in cash at Selic rate.
(3) Paid over in cash at TR + interest of 6.17% p.a.
(4) Linked to securities




                                                                        Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 22
5 – Summarized Financial Statements
5.1 Summarized Balance Sheet
Table 12. Summarized Balance Sheet - Assets
                                                                                                                  R$ million
                                                                             Balances                        Chg.%
                                                                  Mar/05        Dec/05      Mar/06     on Mar/05   on Dec/05
ASSETS                                                           245,685       252,977     264,635           7.7          4.6
Current and Long-term Assets                                     240,739       247,397     259,111           7.6          4.7
Available Funds                                                   14,408          5,828       4,056       (71.8)       (30.4)
Short-term Interbank Investments                                  17,681        28,996      35,744        102.2          23.3
Securities                                                        74,089        66,470      68,631         (7.4)          3.3
    Securities Available for Trading                              11,309          3,077       4,327       (61.7)         40.6
    Securities Available for Sale                                 35,092        37,832      38,815          10.6          2.6
    Securities Held to Maturity                                   27,039        25,275      25,069         (7.3)        (0.8)
    Financial Derivatives                                             649           287         421       (35.2)         46.8
Interbank Accounts                                                23,348        24,404      24,912           6.7          2.1
    Deposits with the Central Bank                                20,787        23,419      21,970           5.7        (6.2)
        Compulsory Deposits on Demand Deposits and Float            7,866         9,494       7,934          0.9       (16.4)
        Compulsory Deposits on Savings Deposits                   12,921        13,925      14,036           8.6          0.8
    Other                                                           2,561           985       2,942         14.9       198.6
Intrabank Accounts                                                    140           121           12      (91.2)       (89.8)
Loans                                                             77,896        85,942      88,306          13.4          2.8
    Public Sector                                                   4,528         3,730       3,442       (24.0)        (7.7)
    Private Sector                                                78,765        88,551      92,191          17.0          4.1
    ( Allowance for Loan Losses)                                  (5,397)       (6,339)     (7,327)         35.7         15.6
Leasing                                                                  4            20          30      745.9          52.6
    Leasing and Subleasing Receivables                                580           752         822         41.7          9.2
    (Unearned Lease Income)                                         (547)         (708)       (768)         40.3          8.4
    (Allowance for Lease Losses)                                      (29)          (24)        (24)      (17.1)        (0.4)
Other Receivables                                                 32,985        35,108      36,811          11.6          4.9
    Receivable on Guarantees Honored                                    83          160         156         88.9        (2.0)
    Foreign Exchange Portfolio                                    10,444          9,156       9,130       (12.6)        (0.3)
    Income Receivable                                                 211           237         183       (13.4)       (22.8)
    Trading and Brokerage of Securities                                 62            46          66         7.6         43.3
    Specific Credits                                                  559           610         627         12.2          2.7
    Specific Operations                                                  1             1           1      (57.6)          0.0
    Tax Credits                                                     7,956         6,687       8,905         11.9         33.2
    Atuarial Assets                                                 2,709         3,869       3,865         42.7        (0.1)
    Warrants Deposits Receivable                                    9,199       11,692      12,251          33.2          4.8
    Other Credits                                                   3,907         5,558       4,812         23.2       (13.4)
    (Provision or Doubtful Receivables)                           (2,146)       (2,908)     (3,186)         48.5          9.6
      (With Loan Characteristics)                                   (229)         (328)       (380)         66.2         15.9
      (Without Loan Characteristics)                              (1,917)       (2,580)     (2,806)         46.3          8.8
Other Assets                                                          188           509         608       223.1          19.6
    Interest in Companies                                                -             0           0           -        (9.7)
    Other Assets                                                      317           319         310        (2.3)        (2.8)
    (Provision for Possible Losses)                                 (177)         (185)       (177)        (0.3)        (4.4)
    Prepaid Expenses                                                    48          374         475       886.3          26.9
Permanent Assets                                                    4,946         5,580       5,524         11.7        (1.0)
    Investments                                                       896         1,045       1,030         14.9        (1.4)
    Property and Equipment                                          2,886         3,119       3,015          4.5        (3.4)
    Leasing Assets                                                    619           812         895         44.5         10.2
    Deferred Charges                                                  544           604         584          7.3        (3.3)




23 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 13. Summarized Balance Sheet - Liabilities
                                                                                                     R$ million
                                                                  Balances                       Chg.%
                                                        Mar/05       Dec/05      Mar/06   on Mar/05     on Dec/05
LIABILITIES AND SHAREHOLDER’S EQUITY                   245,685      252,977     264,635           7.7          4.6
Current and Long-term Liabilities                      230,624      236,003     245,295           6.4          3.9
Deposits                                               120,096      137,658     139,195         15.9           1.1
    Demand Deposits                                     29,340       35,802      31,878           8.6       (11.0)
    Savings Deposits                                    31,418       32,844      32,975           5.0          0.4
    Interbank Deposits                                   6,489        5,383       5,262       (18.9)         (2.2)
    Time Deposits                                       52,769       63,495      68,948         30.7           8.6
    Investment Deposits                                     81          134         131         62.1         (2.2)
Money Market Borrowing                                  43,086       30,508      42,758         (0.8)         40.2
Funds from Acceptances and Securities Placed               852        3,166       2,789        227.4        (11.9)
    Foreign Securities                                     852        3,166       2,789        227.4        (11.9)
Interbank Accounts                                       1,521          980       1,477         (2.8)         50.7
Intrabank Accounts                                       1,385        1,973       1,273         (8.1)       (35.5)
Borrowing                                               17,201        4,858       4,031       (76.6)        (17.0)
Foreign Borrowing                                       17,201        4,858       4,031       (76.6)        (17.0)
Domestic Onlending – Official Institutions              10,629       13,370      13,053         22.8         (2.4)
    National Treasury                                    3,596        4,157       4,053         12.7         (2.5)
    BNDES                                                3,663        3,908       3,960           8.1          1.3
    Finame                                               2,927        4,750       4,720         61.3         (0.6)
    Other Institutions                                     443          556         320       (27.8)        (42.4)
Foreign Onlending                                            1            0           0       (54.4)             -
Financial Derivatives                                      674          571       1,446        114.6        153.4
Other Accounts Payable                                  35,180       42,918      39,274         11.6         (8.5)
    Collection of Taxes and Contributions                1,967          344       3,258         65.6        847.1
    Foreign Exchange Portfolio                           7,969       17,500      10,687         34.1        (38.9)
    Shareholder and Statutory Distributions                 84        1,169         229        171.5        (80.4)
    Taxes and Social Security                              954        1,599       1,503         57.7         (6.0)
    Trading and Brokerage of Securities                  3,343           58         127       (96.2)        120.0
    Financial and Development Funds                      1,954        1,932       1,981           1.4          2.5
    Perpetual Securities                                                          1,102             -            -
    Special Operations                                        2           2           2           0.0        (0.2)
    FCO (Subordinated Debt)                              7,093        7,840       8,095         14.1           3.2
    Actuarial Liabilities                                3,070        3,277       3,291           7.2          0.4
    Other Liabilities                                    8,744        9,196       8,999           2.9        (2.1)
Unearned Income                                            128          125         131           2.1          5.1
Shareholders’ Equity                                    14,933       16,850      19,209         28.6          14.0
   Capital                                               9,864       10,797      10,797           9.5            -
   (Unpaid Capital)                                           -           -           -             -            -
    Capital Reserves                                          5           5           5           0.3        (0.0)
    Revaluation Reserves                                     26          23          23         (9.3)        (0.2)
    Revenue Reserves                                     4,294        6,020       6,020         40.2             -
    Mark-to-Market – Securities and Derivatives            (95)         130         146      (253.8)          12.2
    Retained Earnings (Accumulated losses)                    -           -           1             -            -
      (Treasury Shares)                                  (126)        (126)       (126)             -            -
 Income Accounts                                           965            -       2,343        142.9             -




                                                   Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 24
 5.2 Summarized Corporate Law Income Statement
Table 14. Summarized Corporate Law Income Statement

                                                                                                           R$ million
                                                                 Quarterly Flow                   Chg. %
                                                       1Q05             4Q05       1Q06     on 1Q05         on 4Q05
Financial Intermediation Income                         8,046            8,104      9,394        16.7            15.9
   Loans                                                4,546            5,036      5,095        12.1              1.2
   Leasing                                                  29              36         38        29.5              4.6
   Securities                                           3,166            3,333      3,521        11.2              5.7
   Financial Derivatives                                  (31)           (229)      (139)       344.6          (39.4)
   Foreign Exchange Portfolio                             (50)           (501)        452   (1.002.9)         (190.2)
   Compulsory Investments                                 386              429        427        10.5            (0.5)
Financial Intermediation Expenses                     (5,361)          (6,216)    (6,556)        22.3              5.5
   Money Market Funds                                 (3,729)          (3,976)    (3,984)          6.8             0.2
   Borrowing, Assignments and Onlending                 (371)            (482)      (502)        35.1              4.0
   Allowance for Loan Losses                          (1,261)          (1,757)    (2,071)        64.2            17.8
Gross Income from Financial Intermediation              2,685            1,888      2,838          5.7           50.3
Other Operating Income (Expenses)                     (1,182)            (569)    (1,873)        58.5           229.0
   Service Revenues                                     1,767            2,001      2,103        19.0              5.1
   Personnel Expenses                                 (1,804)          (2,012)    (1,876)          4.0           (6.8)
   Other Administrative Expenses                      (1,407)          (1,498)    (1,362)        (3.2)           (9.1)
   Taxes                                                (395)            (432)      (454)        14.9              5.1
   Equity Int, in the Results of Subs, and Affil,         114              307      (154)     (235.6)         (150.2)
   Other Operating Revenues                             1,046              605      1,464        39.9           141.8
   Other Operating Expenses                             (503)              458    (1,595)       217.2         (448.0)
Operating Income                                        1,503            1,319        965      (35.8)          (26.8)
Non-operating Income                                        98              28         26      (73.1)            (6.1)
Income Before Taxes                                     1,601            1,347        991      (38.1)          (26.4)
   Income and Social Contribution Taxes                 (559)            (447)      1,542     (375.9)         (445.1)
   Statutory Profit Sharing                               (78)           (163)      (190)       144.0            16.4
Net Income                                                965              737      2,343       142.9           217.9




25 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
5.3 Income Statement with Reallocations
Table 15. Income Statement with Reallocations

                                                                                                     R$ million
                                                           Quarterly Flow                    Chg,%
                                                 1Q05               4Q05      1Q06      on 1Q05      on 4Q05
Financial Intermediation Income                   8,191             8,856      8,892         8.6            0.4
   Loans                                          4,546             5,036      5,095        12.1            1.2
   Leasing                                            29                36         38       29.5            4.6
   Securities                                     3,166             3,333      3,521        11.2            5.7
   Financial Derivatives                            (31)            (229)      (139)       344.6        (39.4)
   Foreign Exchange Portfolio                       (50)            (501)        452           -       (190.2)
   Compulsory Investments                           386               429        427        10.5          (0.5)
   FX Gain (Loss) on Foreign Investments            (40)              166      (266)       564.6       (260.4)
   Other Op, Inc, of a Fin, Intermed, Nature        184               587      (237)     (228.4)       (140.3)
Financial Intermediation Expenses               (4,100)           (4,458)    (4,486)         9.4            0.6
   Money Market Funds                           (3,729)           (3,976)    (3,984)         6.8            0.2
   Borrowing, Assignments and Onlending           (371)             (482)      (502)        35.1            4.0
Gross Financial Margin                            4,090             4,398      4,406         7.7            0.2
   Allowance for Loan Losses                    (1,061)           (1,498)    (1,345)        26.7        (10.2)
Net Financial Margin                              3,029             2,900      3,061         1.1            5.6
   Service Revenues                               1,767             2,001      2,103        19.0            5.1
   Taxes on Revenues                              (351)             (393)      (409)        16.7            4.2
Contribution Margin                               4,446             4,509      4,755         7.0            5.5
Administrative Expenses                         (2,992)           (3,268)    (3,156)         5.5          (3.4)
   Personnel Expenses                           (1,638)           (1,802)    (1,781)         8.7          (1.2)
   Other Administrative Expenses                (1,315)           (1,428)    (1,331)         1.2          (6.8)
   Other Tax Expenses                               (39)              (39)       (44)       14.3          14.0
Commercial Income                                 1,453             1,241      1,600        10.1          28.9
Legal Risk                                        (258)             (281)      (126)      (51.0)        (55.1)
   Legal Claims                                     (92)              (70)       (31)     (66.1)        (55.7)
   Labor Lawsuits                                 (166)             (211)        (95)     (42.7)        (54.9)
Other Operating Income (Expenses)                     84              359         (9)    (110.5)       (102.5)
   Eq, Interest in Resul, Subs, and Affil,          144               134        106      (26.4)        (21.3)
   FX Other Operating Income/Expenses               (60)              224      (115)        91.7       (151.2)
     Other Operating Income                         596             1,036        631         5.8        (39.1)
     Other Operating Expenses                     (656)             (812)      (746)        13.6          (8.2)
Operating Income                                  1,280             1,319      1,465        14.4          11.1
Non-operating Income                                  98                28         26     (73.1)          (6.1)
Income Before Taxes                               1,378             1,347      1,491         8.2          10.7
   Income and Social Contribution Taxes           (483)             (447)      (363)      (24.8)        (18.8)
    Interest on Own Capital Tax Benefit                -              252           -          -       (100.0)
   Statutory Profit Sharing                         (78)            (163)      (190)       144.0          16.4
Recurring Income                                    817               737        938        14.8          27.3
Non-Recurring Items                                 148                  -     1,405       852.0              -
Extraordinary Provision for Credit Risks (6)           -                       (500)           -              -
Recovery of Undue Taxes                             229                -            -          -              -
Provision for Non-recurring IR and CS               (76)               -            -          -              -
Non-recurring Pasep/Cofins                           (6)               -            -          -              -
Tax credits recorded (7)                               -               -       1,905           -              -
Net Income                                          965              737       2,343       142.9         217.9




                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 26
5.3.1 Details of the Reallocations

The adjustments made in the statement of income to arrive at the Reallocated Statement of Income are
detailed below. The adjustments do not change the final result, since they only intend to arrange
revenue and expense items more coherently, considering the performance dynamics of a financial
institution. Basically, these adjustments were intended to:

a) allow the financial margin recorded in the period to reflect, effectively, the gain from all the
remunerated assets, seeking to inform the market the spread obtained by the division of this margin by
the assets, except the permanent assets. For this, it was necessary to:

•   include in the financial margin the income recorded in Other Operating Income that had financial
    intermediation characteristics and which was derived from remunerated assets recorded in the
    Balance Sheet Under Other Assets;
•   Identify the foreign exchange gain/(loss) on financial assets and liabilities abroad in the quarter in a
    specific financial margin item (financial equity);
•   to keep in the financial margin, amounts related to negative foreign exchange adjustments that were
    recorded in other operating income and expenses to avoid inverting the balance of accounts of a
    financial intermediation nature.

b) segregate the impacts of extraordinary events in order to present recurring income of the Bank in the
period.

Reallocations in the gross financial margin

(1) The foreign exchange gain (loss) on foreign financial equity is reallocated from equity interest in the
    results of subsidiaries and affiliates for inclusion in the financial margin. This adjustment is required
    to maintain the equilibrium and coherence of the analysis of the spread, since assets and liabilities
    previously included in permanent assets are included in other balance sheet items after
    consolidation. Without reallocation the spread would be improperly reduced.

(2) The reallocations of Other Operating Income/Expenses to Other Operating Income of a financial
    intermediation nature are detailed below:

Table 16. Reallocations – Other Operating Income / Expenses
                                                                                                    R$ million
                                                       Quarterly Flow                     Chg,%
                                              1Q05               4Q05     1Q06       on 1Q05         on 4Q05
Income from Special Operations                    22                20        15          (31)          (22.9)
Income from Specific Credits                      15                17        17            12           (3.5)
FX Readjustment                                 147                550     (269)             -               -
  FX Readjustment Income                        193              (461)       806          317                -
  FX Readjustment Expense                       (46)             1,011   (1,075)        2,222                -
Total                                           184               587     (237)              -               -




27 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Reallocations in the net financial margin

(3) The expense with the Allowance for Loan Losses includes credits without characteristics of financial
    intermediation, so this part of the allowance is reallocated to Other Operating Expenses.

Reallocations in the contribution margin

(4) Considering the model used for the income statement, tax expenses on revenues were reallocated
    and included in the contribution margin.

Reallocations in the operational result

(5) The expenses with Legal Claims and Labor Lawsuits were separated in the Income Statement with
    Reallocations, into a group called Legal Risk. It aims to provide a better analysis of the
    administrative expenses and give greater transparency to this type of risk.

Itens Extraordinários

(6) In 1Q06, additional provision on the loan portfolio totaling R$ 500.0 million was recorded, in order to
    support future volatility of the loan portfolio and its required provision. The study was based on an
    analysis the behavior expenses related to the loan portfolio.

(7) Recording of R$ 1.9 billion in Tax Credit on Temporary Differences related to periods prior to 2006,
    according to CMN Resolution 3.355, of 03/31/2006




                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 28
6 – Balance Sheet Analysis
6.1 Breakdown
Banco do Brasil is the largest financial institution in Brazil, with total assets of R$ 264,635 million. In the
last 12 months, BB increased its assets by 7.7%.

The figure below shows a slight increase in the relative share of remunerated assets in the Bank’s total
assets, which rose from 81.3% to 81.5% (Mar/05 –Mar/06). This occurred due to an increase in Credit
Operations and Leasing and in Securities and Interbank Funds Applied, when compared to March 2005.
Profitable Assets had a growth of 8.0% in 12 months.

With regard to the liabilities, a reduction is seen in the relative share of interest-bearing liabilities from
69.5% to 68.0% (Mar/05 – Mar/06). This movement is explained by the decrease in money market
borrowing and foreign borrowing, due to the changes in the rules for booking foreign exchange
transactions, as commented in chapter 6.3.

                          Earning Assets vs. Interest Bearing Liabilities - %


            21.2           20.2            19.0           18.7             19.9           19.1            20.1            18.5
                   32.0            31.7            30.2            30.5                            35.8                            32.0
                                                                                   34.9                            35.4




            78.8           79.8            81.0           81.3             80.1           80.9            79.9            81.5
                   68.0            68.3            69.8            69.5            65.1                                            68.0
                                                                                                   64.2            64.6




          Jun/04          Sep/04          Dec/04          Mar/05          Jun/05          Sep/05          Dec/05          Mar/06

                                      Earning Assets                               OtherAssets
                                      R tá i
                                      Interest Bearing Liabilities                 Other Liabilities

Figure 7. Earning Assets vs. Interst Bearing Liabilities




29 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.2 Analysis of Assets
Securities showed a decrease in the participation of total assets, going down from 30.2% to 25.9%
(Mar/05 – Mar/06). The total balance of securities closed the quarter with R$ 68,631 million, 7.4% lower
than that observed in 1Q05 and 3.3% higher than that observed in 4Q05. The growth of loans stands
out, with their balance net of allowances increasing 13.4%, reaching R$ 88,336 million. Accordingly,
those transactions went up from 31.7% to 33.4% (Mar/05 - Mar/06) of total assets.

The increase in the participation of maketable assets (except securities) from 13.1% to 15.0% (Mar/06 –
Mar/06) is due, mainly, to the increase of 102.2% in short-term financial investments, which accounted
for 7.2% of total assets in 1Q05, against 13.5% in 13.5% in 1Q06. In relation to the previous quarter, a
growth of 14.3% in marketable assets (except securities) was observed.

Tax credits reached R$ 8,905 million in March 2006, an increase of 11.9% in relation to March 2005 and
of 8.25 in relation to March 2005 and of 33.2% in relation to December 2005, due to recording of Tax
Credit , according to CMN Resolution 3.355, of 03/31/2006

                                             Breakdown of Assets - %


               13.3        15.0           13.3        13.1            8.9              14.1         13.8        15.0

                                                      30.2            29.5                          26.3        25.9
               30.7        30.2           30.7                                         27.9


               30.5        29.7           31.3        31.7            34.5             32.5         34.0        33.4

               3.9         3.6            3.5         3.2             3.2               2.8         2.6          3.4
               21.5        21.6           21.1        21.8            23.8             22.7         23.3        22.3

              Jun/04      Sep/04         Dec/04      Mac/05          Jun/05            Sep/05      Dec/05       Mar/06


                         Other Assets                        Tax Credits
                         Loans and Leasing                   Securities
                         Liquidity Assets except
                       S     iti
Figure 8. Breakdown of Assets

Table 17. Breakdown of Assets
                                                                                                                         R$ million
                                         Jun/04    Sep/04       Dec/04        Mar/05      Jun/05   Sep/05    Dec/05        Mar/06
Total Assets                            227,374    235,599     239,014      245,685      233,793   245,511   252,977      264,635
 Liquidity Assets except Securities       30,316    35,228      31,868        32,089      20,843    34,628    34,824       39,800
 Securities                               69,855    71,120      73,485        74,089      68,973    68,610    66,470       68,631
 Loans and Leasing                        69,247    69,961      74,844        77,899      80,734    79,798    85,961       88,336
 Tax Credits                               8,971     8,505       8,396         7,956       7,523     6,815     6,687        8,905
 Other Assets                             48,986    50,785      50,421        53,652      55,720    55,660    59,035       58,962




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 30
6.3 Liquidity Analysis
One way of measuring the liquidity of a financial institution consists of determining the difference
between marketable assets and marketable liabilities. An analysis of the graphic below reveals an
increase of 4.1% in this index when compared to March 2005 and a reduction of 8.9% in relation to
December 2005.

                                  Liquidity Assets (-) Liquidity Liabilities
                                                                                             R$ million

                                                                                           62,145
                                                                                58,772
                                 55,765                                                                56,641
                     52,963                 53,177      54,419

                                                                    45,490




                     Jun/04      Sep/04     Dec/04      Mar/05      Jun/05      Sep/05     Dec/05      Mar/06

Figure 9. Liquidity Assets (-) Liquidity Liabilities

The reduction in movement of the liquidity balance in relation to December 2005 is due to the reduction
in foreign exchange operations sold in advance, which has mitigated the growth in interbank operations,
provided by expansion of the committed operations with third the party portfolio.

In addition, it is worth pointing out the significant reduction in foreign currency cash, in relation to March
2005, due to changes in accounting rules for foreign exchange operations, given the unification of free
and floating rate markets, as estabilish in CMN Resolution CMN 3.265, of March 04, 2005.

Table 18. Liquidity Balance
                                                                                                                         R$ million
                                          Jun/04     Sep/04      Dec/04      Mar/05      Jun/05     Sep/05      Dec/05      Mar/06
Liquidity Assets (A)                      97,779     103,297     103,472     103,993     87,495     100,646     98,036     104,660
  Available Funds                         15,841      16,669      15,494      14,408      3,464       4,939      5,828       4,056
  Interbank Investments                   14,475      18,559      16,453      17,681     17,379      29,690     28,996      35,744
  Securities (except linked to Bacen)     67,463      68,069      71,525      71,904     66,652      66,018     63,212      64,860
Liquidity Liabilities (B)                 44,816      47,533      50,295      49,574     42,005      41,874     35,891      48,019
  Interbank Deposits                       7,684       5,530       5,768       6,489      5,837       5,885      5,383       5,262
  Money Market Borrowing                  37,132      42,003      44,527      43,086     36,168      35,989     30,508      42,758
Liquidity Balance (A - B)                 52,963      55,765      53,177      54,419     45,490      58,772     62,145      56,641




31 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.4 Securities Portfolio
In March 2006, the securities portfolio released a reduction of 7.4% in relation to the 1Q05 due to the a
larger allocation of resources for loan operations. With respect to December 2005, the increase of 3.3%
is mainly due to the raise in repurchase operations.

It is worth pointing out the change in the profile of the portfolio, which comprised 6.3% of securities
available for trading and 56.6% of securities available for sale, against 15.3% and 47.4%, respectively,
in the same period of the previous year.
Table 19. Securities Portfolio by Category

                                                                                                                  R$ million
                                                                    Balances                                     Share %
                                      Jun/04 Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06 Mar/05 Dec/05
Securities                            69,855   71,120   73,485   74,089 68,973    68,610    66,470 68,631    100.0     100.0
 Available for Trading                11,998   12,690   13,163   11,309  6,087     2,722     3,077  4,327     15.3       6.3
 Available for Sale                   31,008   31,997   32,790   35,092 35,265    39,075    37,832 38,815     47.4      56.6
 Held to Maturity                     25,146   25,945   26,951   27,039 26,266    26,106    25,275 25,069     36.5      36.5
 Financial Derivatives                 1,702      488      581      649  1,355       707       287    421      0.9       0.6


In the following table, the concentration on securities with a maturity of between 0 and 5 years is
observed. As of March 2006, the concentration on securities totaled 89.3%, slightly below the 89.3%
and 89.7% share reported in March and December of 2005, respectively.


Table 20. Securities Portfolio by Maturities

                                                                                                                  R$ million
                  Up to 1 year          1 to 5 years               5 to 10 years            Over 10 years
                                                                                                                    Total
                Balance     Share %   Balance     Share %        Balance     Share %       Balance    Share %
Jun/04           14,416        21.4    45,341        67.3           7,179        10.7          416         0.6        67,353
Sep/04           15,910        22.8    46,062        65.9           7,491        10.7          446         0.6        69,910
Dec/04           21,348        29.6    44,187        61.2           6,233         8.6          441         0.6        72,208
Mar/05           21,970        30.2    43,104        59.2           6,714         9.2          971         1.3        72,759
Jun/05           18,477        27.6    40,706        60.7           6,908        10.3          921         1.4        67,012
Sep/05           16,926        25.1    42,510        63.1           7,232        10.7          651         1.0        67,320
Dec/05           17,116        26.0    41,900        63.7           6,189         9.4          567         0.9        65,771
Mar/06           18,159        26.7    42,565        62.6           6,379         9.4          873         1.3        67,977


The following figure shows the share increase of securities with maturities of 5 and 10 years, during a
12-month period, notwithstanding securities with maturities from 0 to 1 year, indicating the mid-term
extension of the portfolio.




                                                            Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 32
                    Securities Portfolio with Maturities between 0 and 10 years
                                                                                                             Consolidated Bank


           Mar/05                                        Dec/05                                           Mar/06


    9.4%                                          9.5%                                             9.5%
                                                                        26.2%                                        27.0%
                       30.6%




60.0%                                                                                           63.5%
                                          64.3%



                                    0 to 1 year          1 to 5 years           5 to 10 years



 Figure 10. Securities Portfolio with Maturities between 0 and 5 years




 33 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.5 Loan Portfolio
Banco do Brasil holds a top leadership position for loan assignment in Brazil, with a 15.5% share in the
                1
financial system , an increase of 20 base points in relation to the previous position.

The evolution of loans in the Brazilian Banking Industry (SFN) was 19.6% (Mar/05 – Mar/06), while BB
grew 15.3% in the same period. In relation to the previous quarter, loans in the Brazilian Banking
Industry grew 2.8%, while BB grew 4.4%.

Agribusiness transactions were 20.4% higher than in March 2005 and 3.8% higher than in December
2005, due to the release of funds for the 2005/2006 harvest. Besides that, there was a contribution to
the increase in loans from the debt rescheduling arising from the problems brought by the drought in the
Center-South, the loss of income due to the fall in commodity prices in the international market, and the
appreciation of the Real against the Dollar.

Loans to individuals grew 15.9% (Mar/04-Mar/05), while loans to companies grew 10.7% (Mar/04-
Mar/05); in transactions with MPE, these rose by 10.4% and the other segments by 11.0%. As to
December of 2005, transactions involving individuals presented the highest growth, 7.6%, where payroll
loan transactions can be highlighted, growing by 23.2%. It should be stressed that the Foreign Network
Portfolio has presented a decrease due to exchange appreciation, which in 1T06 alone, came to 7.2%.
The portfolio’s growth in US$ amounted to 4.2% in the quarter.

Table 21. Loan Portfolio

                                                                                                                       R$ million
                                                                                                            Chg.%
                                              Mar/05            Dec/05            Mar/06           on Dec/05         on Mar/05
Brazil                                              83,805           92,612             96,655                 4.4           15.3
    , Individuals                                   17,069           18,386             19,779                 7.6           15.9
    , Businesses                                    35,962           38,518             39,822                 3.4           10.7
      - MSE                                         13,885           15,204             15,324                 0.8           10.4
      - Other                                       22,077           23,315             24,498                 5.1           11.0
    , Agribusiness                                  30,774           35,708             37,054                 3.8           20.4
Foreign                                                9,457          9,177              8,872              (3.3)           (6.2)
Total                                               93,263          101,789            105,527                 3.7           13.2


Table 22. Individuals and Business Customers Loan Portfolio

                                                                                                                       R$ million
                                                 Retail        Wholesale      Agribusiness              Other             Total
Brazil                                          35,539            23,754            37,054                282             96,655
    Individuals                                 19,698                   -          31,247                 56             51,026
    Business Customers                          15,841            23,754             5,808                226             45,629
Foreign                                                -                 -                 -            8,872              8,872
Total                                           35,539            23,754            37,054              9,154            105,527




1
    Source: Central Bank (Dec/05 estimate).




                                                                   Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 34
 Of the total of loan transactions, 33.7% are loans to the retail segment, 22.5% to the wholesale
 segment, and 35.1% to agribusiness. The portfolio abroad, represents 8.4% of the total.

 With respect to total portfolio interest, we can highlight a growth of 20.4% in Agribusiness Portfolio,
 12.4% in Retail Portfolio, and 13.9% in Commercial Portfolio, in a 12-month period. In relation to
 December 2005, such portfolios had a growth of 3.8%, 4.6% and 7.5%, respectively. The Retail
 Portfolio showed a composition of 30.7% in March 2006, a reduction of 20 base points in one-year
 period, and an increase of 30 base points in relation to December 2005.

 From this point onwards, BB’s total loan portfolio will be shown by segment.


                                           Breakdown of the Loan Portfolio
                 Mar/05                                             Dec/05                                           Mar/06

                2.1%                                             2.4%                                               2.4%
       10.1%                                              9.0%                                               8.4%

                                 30.9%            9.5%                                30.4%           9.2%                            30.7%
9.8%




                                14.0%              35.1%                          13.6%               35.1%                         14.1%
 33.0%

       Retail             Commercial           Agribusiness               Foreign Trade                       Abroad              Other

 Figure 11. Breakdown of the Loan Portfolio

 Table 23. Loan Portfolio by Segment
                                                                                                                               R$ million
                                   Jun/04       Sep/04        Dec/04         Mar/05       Jun/05      Sep/05         Dec/05      Mar/06
 Total Portfolio                   83,131       84,148           88,554      93,263       96,129       94,685       101,789      105,527
   Retail                          25,345       26,586           27,501      28,835       30,046       30,699        30,987       32,415
   Commercial                      10,696       11,687           12,221      13,090       13,189       12,714        13,878       14,914
   Agribusiness                    25,573        25,666          30,036      30,774       32,171       31,247        35,709       37,054
   Foreign Trade                       8,810      8,507           7,992       9,179           9,489     8,713          9,623       9,695
   Abroad                          11,088       10,016            9,017       9,457           9,162     8,539          9,177       8,872
   Other                               1,619      1,686           1,786       1,928           2,072     2,773          2,415       2,578




 35 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.5.1 Retail Loan Portfolio

The retail loan portfolio comprises the products intended, mainly, for individuals and micro and small
businesses (companies with annual sales of up to R$ 10 million). In March 2006, the portfolio reached a
balance of R$ 32,415 million, which represents an increase of 12.4% in relation to the same period of
the previous year and 4.6% in relation to December 2005.

Table 24. Retail Loan Portfolio

                                                                                                         R$ million
                                  Jun/04   Sep/04   Dec/04    Mar/05     Jun/05     Sep/05      Dec/05     Mar/06
Direct Consumer Credit (CDC)       9,251    9,590    9,688    10,153     10,879      11,920     11,981     12,839
   CDC Crédito em Consignação      1,040    1,198    1,477     1,770      2,558       3,286      3,810      4,695
Receivables                        6,012    6,145    6,755     6,720      6,887       6,842      6,922      6,657
BB Giro Rápido (WCL)               3,173    3,373    3,433     3,705      3,838       3,973      3,893      4,145
Overdraft accounts                 2,740    2,813    2,347     2,709      2,638       2,666      2,227      2,625
Credit Cards                       1,742    1,842    1,994     2,074      2,089       2,218      2,489      2,585
Others                             2,428    2,823    3,285     3,474      3,715       3,080      3,474      3,564
Total                             25,345   26,586   27,501    28,835     30,046      30,699     30,987     32,415


Loans to Individuals – Banco do Brasil meets the credit needs of individuals through mass distributed
products. BB’s credit scoring system calculates pre-approved limits for Direct Consumer Finance
(CDC), overdraft account, and credit cards, based on a series of customer information.

Direct Consumer Finance transactions showed a 26.5% growth in relation to March 2005, and 7.2% in
relation to December 2005, reaching R$ 12,839 million, with an average value per transaction of R$
1,753.23 at the end of March 2006.

The increase was basically due to the growth in payroll loans, which went up from R$ 1,770 million in
March 2005 to R$ 4,695 million in March 2006, growing 165.3% in the period. It is worth to highlight that
this type of loan represents 36.6% of the Bank’s CDC portfolio. The Consumer Finance (CDC) can be
contracted through the Internet, automated teller machines and in the branch network. Besides that, it
combines low operational costs with credit that is well spread out.

In March 2006, 59.8% of the individual customers had accounts with a credit limit. Transactions in
overdraft accounts ended March 2006 with a balance of R$ 2,625 million (an 8.1% share in retail
transactions).

The balance of credit card transactions showed an increase of 24.6% (Mar/06 – Mar/05), with a balance
of R$ 2,585 million at the end of March 2006, while the quantity of cards in use rose 30.5%, going up
from 7,173 thousand to 9,358 thousand.




                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 36
                                    Main Retail Loan Portfolio Product
                                                                                       R$ million

                          CDC                                                              Credit Card


                                                          12,839                                                            2,625
                                          11,920 11,981                                                             2,489
                                 10,879                                                                     2,218
        9,590   9,688   10,153                                                              2,074   2,089
9,251                                                                              1,994
                                                                   1,742   1,842




         /04 Dec/04 Mar/05 Jun/05 Sep
Jun/04 Sep                          /05 Dec/05 Mar/06                       /04 Dec/04 Mar/05 Jun/05 Sep
                                                                   Jun/04 Sep                           /05 Dec/05 Mar/06


Figure 12. Main Retail Loan Portfolio Products




37 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Credit for micro and small businesses - In 1Q05, the Retail Portfolio incorporated about R$ 7.0 billion
in transactions based on receivables, in which about 75% are with micro and small businesses, and the
rest with medium and large businesses, formerly recorded in the Commercial Portfolio. The information
on these portfolios was processed retroactively in all the parts of this report, to ensure its comparability.

Transactions intended for micro and small businesses accounted for 44.6% of the retail portfolio in
March 2006, the same percentage registered in March 2005. In December 2005, these transactions
accounted for 46.3% of the retail portfolio. The balance of these transactions was R$ 14,457 million, a
12.3% increase in relation to March 2005 and 0.8% in relation to December 2005

Table 25. MSB Credit Products
                                                                                                          R$ million
                              Jun/04     Sep/04    Dec/04     Mar/05     Jun/05      Sep/05     Dec/05      Mar/06
Receivables                     6,012     6,145     6,755      6,720       6,887      6,842       6,922      6,657
BB Giro Rápido                  3,173     3,373     3,433      3,705       3,838      3,973       3,893      4,145
Proger Urbano Emp,              1,201     1,426     1,649      1,821       1,998      2,172       2,327      2,442
Others                            458       453       626        628         825        823       1,195      1,214
Total                          10,844    11,396    12,462     12,874     13,548      13,810      14,338     14,457


Transactions based on receivables totaled R$ 6,657 million in March 2006, a 0.9% decrease in relation
to the same period of the previous year. The main products intended for this segment are receivables,
accounting for over 91.5% of the total.

BB Giro Rápido offers financing for working capital without red tape and without requiring tangible
collateral. The transaction is divided into a part with an overdraft account and another for working
capital, paid in installments over 12 months. At the end of March 2006, this line of credit reached a
balance of R$ 4,145 million, a 11.9% increase (Mar/05 – Mar/06) and a 6.5% increase over December
2005.

The Proger Urbano Empresarial transactions use funding from the Worker’s Support Fund (FAT) to
finance projects or investment with the respective working capital, which provides for the generation of
employment and income in urban areas. These transactions showed an increase of 34.1% (Mar/05 –
Mar/06) and of 4.9% in relation to December 2005, ending the period with a balance of R$ 2,442 million.




                       Main Products for Micro and Small Businesses
                                                                                                     R$ million

                        Receivables                                           BB Giro Rápido


                  6,755 6,720 6,887 6,842 6,922 6,657                                      3,973 3,893 4,145
                                                                               3,705 3,838
    6,012 6,145                                                      3,433
                                                         3,173 3,373




             /04                      /05
    Jun/04 Sep Dec/04 Mar/05 Jun/05 Sep Dec/05 Mar/06 Jun/04 Sep                          /05
                                                               /04 Dec/04 Mar/05 Jun/05 Sep Dec/05 Mar/06




Figure 13. Main Products for Micro and Small Businesses




                                                      Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 38
Loans for the lower income population - With the Federal Government’s decision to expand the
financial services industry to the population with a lower income and to microentrepreneurs, Law
10.735/03 was passed, which makes provisions about the channeling of resources equivalent to 2% of
demand deposits taken by financial institutions towards microcredit transactions, at an interest rate of up
to 2% a month.

To maintain coherence with its corporate strategy, Banco do Brasil adopted an institutional solution
which involved the creation of a separate structure from the multiple bank, so as to guarantee the
transparency of the process, besides adapting the products, processes, credit policy and operational
costs.

Banco Popular do Brasil (BPB) was created as a wholly-owned subsidiary of Banco do Brasil through
Law 10.738/03, in the form of a multiple bank with commercial, credit, financing and investment
portfolios.

The network comprised by 5,092 service points, enabled clients to perform, during the quarter, more
than 6.2 million transactions in INSS benefit payments and titles and conventions receipt, totalizing R$
696 million in the period.


Table 26. BPB Highlights

                                  Jun/04      Sep/04      Dec/04   Mar/05    Jun/05    Sep/05    Dec/05    Mar/06
Assets - R$ thousand              125,974    129,713     147,850   155,851   151,197   158,715   136,958   146,158
Deposits - R$ thousand                123      1,377      22,568    47,569    54,690    85,151    85,337    95,075
Credit Portfolio* - R$ thousand    77,512      1,541      20,011    37,130    54,128    70,333    79,496    84,322
Points of Service                      30      1,720       5,530     6,021     5,484     4,850     5,239     5,092




39 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.5.2 Commercial Loan Portfolio

The Commercial Loan Portfolio covers the products intended mainly for medium and large-sized
companies and corporate customers. Banco do Brasil has adopted a segmentation model that has the
objective of perfecting the management of this customer base, dividing them into Industry, Commerce,
and Services lines, and into the medium, large, and corporate segments. The model helps attain a
better knowledge of the specific needs of each company and seeks to develop, diversify and achieve a
return from the business. In March 2006, the portfolio reached a balance of R$ 14,914 million, an
increase of 13.9% (Mar/05 – Mar/06) and 7.5% in relation to December 2005.

Table 27. Commercial Loan Portfolio
                                                                                                                       R$ million
                                     Jun/04         Sep/04    Dec/04     Mar/05     Jun/05       Sep/05      Dec/05      Mar/06
Working Capital – Others               3,292         3,684     3,589       4,638      4,486        4,606      4,399       5,500
Investment Finance                     2,833         2,958     3,128       3,156      3,238        3,376      3,515       3,629
Receivables                            2,347         2,884     3,386       2,976      2,779        2,811      3,398       3,183
Overdraft Accounts                     1,919         1,805     1,721       1,863      2,170        1,847      1,878       1,825
Others                                   306           356       397         456        516           74        688         776
Total                                 10,696        11,687    12,221     13,090     13,189        12,714     13,878      14,914


The product that stands out most in this portfolio is Working Capital – Others, reaching a 36.9% of the
total portfolio, an increase of 18.6% (Mar/05 – Mar/06), closing the year with R$ 5,500 million.

Receivable operations closed the month of March 2006 with a balance of R$ 3,183 million, a 7.0%
increase in relation to the same period of previous year and a reduction of 6.3% in relation to December
2005. These are short term transactions and present a low credit risk for the Bank. For the companies,
they mean an excellent alternative for working capital financing and an opportunity for boosting their
sales, offering longer terms for their customers.

                                   Main Products for Wholesale Customers
                                                                                              R$ million

                    Working Capital - Others                                                  Investiments
                                                             5,500
                                                                                                     3,376            3,515 3,629
                           4,638    4,486   4,606    4,399                         3,128 3,156 3,238
                                                                       2,833 2,958
         3,684   3,589
 3,292




         /04 Dec/04 Mar/05 Jun/05 Sep
Jun/04 Sep                          /05 Dec/05 Mar/06                           /04 Dec/04 Mar/05 Jun/05 Sep
                                                                       Jun/04 Sep                          /05 Dec/05 Mar/06


Figure 14. Main Products for Wholesale Customers

The investment transactions comprise, in the main, lines of credit intended for the expansion or
modernization of production, via the acquisition of machines and equipment, including freight vehicles.
The balance of these transactions grew 15.0% (Mar/05 – Mar/06) and 3.2% in relation December 2005,
to reach R$ 3,629 million in March 2006.




                                                                 Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 40
6.5.3 Agribusiness Loan Portfolio

Agribusiness is one of the main sectors of the Brazilian economy, of fundamental importance to the
growth of the Country. In its role as an agent of public policies, Banco do Brasil represents a link
between the government and the rural producer, acting as the largest financier of Brazilian agribusiness
in all its segments and in all stages of the productive chain, from the small farmer to the large
agroindustrial companies.

The Brazilian Trade Balance has increased as a result of the positive contribution from agribusiness.
The trade balance of this sector generated a US$ 8.3 billion surplus in 1Q06, growing 9.3% in relation to
1Q05.

                                                             Trade Balance (FOB)
                                                                                                              US$ billions


                                                                                                                            4 4 .8
                                                                                                 3 4 .1            3 8 .4
                                                                                                          3 3 .7
                                                                          1 3 .1 2 5 .8 2 4 .8
                                                 1 9 .0          2 0 .3
                                1 4 .8 (0 .7 )            2 .6                                                                       8 .3   9 .3



                                   2000             2001            2002            2003           2004               2005             1Q06

                                                                          Agribusiness           Brazil

Source: MAPA – Ministério da Agricultura, Pecuária e Abastecimento
Figure 15. Trade Balancel (FOB)

The table below shows exports broken down into the main products

Table 28. Exports
                                                                                                                                                            US$ million
                                                            2002                        2003                            2004                        2005        1Q06
Soybeans and Related Products                              6,009                       8,125                         10,048                         9,477       1,708
Meat                                                       2,751                       3,641                           6,144                        8,066       1,786
Sugar and Alcohol                                          2,263                       2,298                           3,138                        4,684       1,130
Soybeans and Related Products                              2,214                       2,620                           3,781                        3,792         885
Pulp and Paper                                             2,056                       2,831                           2,909                        3,405         957
Leather, Hides and Shoes                                   2,341                       2,465                           2,897                        3,069         835
Coffee, Mate and Spices                                    1,331                       1,424                           1,892                        2,669         671
Tobacco                                                    1,008                       1,090                           1,426                        1,707         151
Fruit Juice                                                1,134                       1,292                           1,194                        1,245         336
Other Products                                             3,732                       4,852                           5,587                        5,487       1,338
Total                                                     24,839                      30,639                         39,016                        43,601       9,797
Source: MAPA – Ministério da Agricultura, Pecuária e Abastecimento


The sector’s extremely positive performance in the last few years is due to the permanent quest for new
technologies and for valuing the services provided by the professionals from this area, always aiming at
improving profitability and continuity in the enterprises. In the following chart, the increased productivity
per planted area, as a result of gains in productivity, can be visualized.




41 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                                  Production vs. Planted Area
                              180                                                                                                              300
                              160
                                                                                                                                               250
Production (million of ton)




                              140




                                                                                                                                                     productivity (ton/ha)-%
                              120                                                                                                              200
                              100
                                                                                                                                               150
                               80
                               60                                                                                                              100
                               40
                                                                                                                                               50
                               20
                               0                                                                                                               0
                                    91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06*


                                              Production (million ton.)           Area (million ha)          Productivity (ton./ha) - %
* Prevision
Figure 16. Production vs. Planted Area

In 2005, adverse factors implied a sharp reduction in the income of rural producers. Amongst these were
the fall in productivity due to climatic problems in some regions, the low quotations for commodity prices,
and the appreciation of the Real against the Dollar, besides some phytosanitary problems.

The estimate for the 2005/2006 agricultural crop, according to CONAB, is for production to reach 123.8
million tons, 9.2% higher than that recorded in the previous crop.

Regarding the distribution of agribusiness transactions by region of the country in March 2006, it can be
seen that 90.4% is concentrated in the regions of the South, Southeast and Central-West.

Table 29. Agribusiness Loan Portfolio by Region

                                     Region                    Share - %
North                                                                       3.3
Northeast                                                                   6.3
Midwest                                                                    27.8
Southeast                                                                  22.4
South                                                                      40.3


Rural credit finances the costs of producing and marketing of agricultural products, stimulates rural
investments, including warehousing, processing and the industrial processing of agricultural products.
Furthermore, it encourages the introduction of rational methods in the productive system.

BB’s agribusiness loan portfolio grew 20.4% (Mar/05 – Mar/06) and 3.8% in relation to December 2005,
ending the period with a balance of R$ 37,054 million. Part of the growth observed in the last 12 months
is due to the process of renegotiating loans with farmers affected by the drought in 2005.

Loans for financing costs and marketing, intended to finance the goods and services needed for the
production of crops and livestock production, account for 52.7% of the agribusiness portfolio. Loans for
investments, intended for the modernization of the productive activity, accounted for 43.3% of this
portfolio and have an average term of 4 years.




                                                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 42
Table 30. Agribusiness Loan Portfolio by Purpose

                                                                                                        R$ million
                                   Jun/04     Sep/04      Dec/04    Mar/05   Jun/05   Sep/05   Dec/05     Mar/06
Costs                              11,827      11,674     14,734    14,979   15,036   13,658   16,133      15,891
Investment                         12,016      12,389     13,231    13,807   14,233   14,619   15,463      16,051
Marketing                           1,000         958      1,054       831    2,214    2,347    3,097       3,644
Other                                 730         644      1,017     1,157      687      623    1,016       1,466
Total                              25,573      25,666     30,036    30,774   32,171   31,247   35,709      37,052


The funds made available by the Bank are obtained from savings deposits (MCR 6-4), demand deposits
(MCR 6-2), the Program for Generating Employment and Income in the Rural Area (Proger Rural), the
National Program for Strengthening Family Farming, of the Ministry of Agrarian Development (Pronaf),
the Constitutional Fund for Developing the Central-West (FCO) and the National Bank for Economic and
Social Development (BNDES), amongst others.

Table 31. Agribusiness Loan Portfolio by Product

                                                                                                        R$ million
                                   Jun/04      Sep/04      Dec/04   Mar/05   Jun/05   Sep/05   Dec/05      Mar/06
Agricultural and Livestock Costs     8,329       8,409     10,773   11,020   11,460   10,280   12,342      12,381
Pronaf/Proger Rural                  6,099       5,937      7,079    7,351    7,776    7,746    8,905       9,317
BNDES/Finame Rural                   2,774       3,064      3,362    3,618    3,702    3,878    3,967       4,028
FCO Rural                            2,908       2,912      2,986    3,093    3,158    3,208    3,272       3,367
Others                               5,463       5,345      5,836    5,692    6,075    6,136    7,223       7,959
Total                               25,573     25,666      30,036   30,774   32,171   31,247   35,709      37,052


Proger Rural is a product that offers fixed credit for crop and livestock costs, as well as financial support
for fixed and semi-fixed investments, and the National Program for Strengthening Family Farming –
Pronaf aims at financing the costs of the farming business. These two products added up to R$ 9,317
million at the end of March 2006, growing 26.7% in relation to the same period of the previous year.

FCO Rural offers a financial supplement for working capital and costs for the rural producer of the
Central-West region of Brazil. Transactions in the product grew 8.9% in the past 12 months, and 2.9%
in relation to December 2005, totalling R$ 3,367 million in March 2006.

The BNDES/Finame Rural products have the objective of financing investments in the modernization of
machines and equipment intended for rural production. Transactions with these products totaled R$
4,028 million at the end of March 2006, growing 11.3% in relation to March 2005 and 1.5% in relation to
December 2005.




43 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                          Main Products of the Agribusiness Loan Portfolio
                                                                                                     R$ million

                    Agriculture and Livestocks costs                                          Pronaf/Proger Rural
                                                                                                                             8,905   9,317
                                               12,342 12,381
                               11,460
                 10,773 11,020        10,280                                                       7,351
                                                                                                            7,776   7,746
                                                                                          7,079
8,329    8,409                                                          6,099     5,937




         /04 Dec/04 Mar/05 Jun/05 Sep
Jun/04 Sep                          /05 Dec/05 Mar/06                            /04 Dec/04 Mar/05 Jun/05 Sep
                                                                        Jun/04 Sep                          /05 Dec/05 Mar/06

 Figure 17. Main Products of the Agribusiness Loan Portfolio

 The following table shows the balance of the loan transactions intended for agribusiness by item
 financed.

 Table 32. Agribusiness Loan Portfolio by Financed Items

                                                                                                                         R$ million
                                                                                                                      Chg.%
 Items Financed                       Sep/05      Part.%       Dec/05      Part.%         Mar/06      Part.% on Mar/05 on Dec/05
 Soybeans                              2,621         8.4        4,389            12.2      4,565           12.3      (8.9)         4.0
 Bovinocultura                         3,518        11.3        3,864            10.8      4,136           11.2       21.9         7.0
 Corn                                  2,465         7.9        2,899             8.1      2,820            7.6        4.1       (2.7)
 Machinery and Equipment               2,450         7.8        1,150             3.2      1,178            3.2     (60.3)         2.4
 Rice                                    869         2.8          883             2.5        947            2.6     (11.9)         7.2
 Cotton                                  857         2.7          859             2.4        787            2.1     (18.5)       (8.4)
 Fertilizers                             638         2.0          672             1.9        688            1.9     (33.1)         2.3
 Coffee                                  707         2.3          655             1.8        701            1.9       21.0         6.9
 Wheat                                   576         1.8          525             1.5        367            1.0     (23.8)      (30.0)
 Sugar Cane                              337         1.1          474             1.3        484            1.3       26.7         2.1
 Manioc                                  379         1.2          440             1.2        392            1.1        2.5      (11.0)
 Avicultura                              412         1.3          402             1.1        430            1.2     100.0          6.9
 Pork                                    221         0.7          314             0.9        359            1.0          -        14.3
 Tabbaco                                 255         0.8          261             0.7        265            0.7       43.4         1.8
 Others                               14,943        47.8       18,117            50.5     18,934           51.1       66.0         4.5
 Total                                31,247       100.0       35,906           100.0     37,052       100.0         20.4            3.2

 In its financing of Brazilian agribusiness, Banco do Brasil reaches all segments, from the small producer
 to the large agro-industrial companies. The table below reveals this work, showing that while financing
 mini and small producers account for 80.6% of the total contracts, the transactions with the other agents
 show a 73.9% share of the amount financed.




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 44
Table 33. Funds Released for the 05/06 Crop by Segment
                                                                                                                                                                                 R$ million
                                                             Qty. Contracts                                Qty. Contracts - %                        Amount Contracted Amount Contracted - %
Mini                                                                           421,617                                             38.4                                        1,421                                        8.3
Small                                                                          464,561                                             42.3                                        3,014                                       17.7
Medium and Large sized                                                         212,017                                             19.3                                       11,522                                       67.7
Cooperatives                                                                       707                                              0.1                                        1,064                                        6.3
Total                                                                     1,098,902                                               100.0                                       17,021                                   100.0


Next, the Agribusiness Loan Portfolio by Funding Sources is shown.

                                     Agribusiness Loan Portfolio by Funding Sources
                                                                                                                                                                      R$ million
                                                                      13,052
                                                             12,007
                                     9,307
                                             9,090
                                                     8,663
     6,230




                                                                                                                                                                                           5,936
    5,653




                                                                                                                                                                                                   5,628
                                                                                                                                                                                                           5,635
                                                                                                                                                                                                                   5,470
                                                                                                                                                                                          5,289
                                                                                                                 5,214
             5,111




                                                                                                         5,150
                     4,496




                                                                                                                                                  4,496
                                                                                                                                          4,407
                             4,298




                                                                                                                                 4,245




                                                                                                                                                                                  4,211
                                                                                                                                                                                  4,263
                                                                                                                                                                          4,138
                                                                                                                                 4,068




                                                                                                                                                                  3,989
                                                                                                 3,462




                                                                                                                         3,894




                                                                                                                                                          3,904
                                                                                         2,858
                                                                                 2,727




    Demand Deposits                          Saving Deposits                                     FAT                               FCO                      BNDES/Finame                      Others

                                                                               Mar/05            Jun/05              Sep/05       Dec/05            Mar/06


Figure 18. Agribusiness Loan Portfolio by Funding Souces

Investments in Savings Deposits, the main funding line of the portfolio, grew 40.2% in the last 12
months, reaching a balance of R$ 13,052 million in March 2006.

The Bank uses funds from Ouro savings accounts and the FAT (Worker’s Support Fund) in rural
financings at reduced interest rates. To make this kind of intermediation viable, the National Treasury
compensates the Bank, in the form of equalization, for the difference between the funding,
administrative and tax costs and the amount charged to the taker of the loans.

The following figure shows a history of the revenues received by way of interest rate equalization.

                                                                                 Equalization Revenues
                                                                                                                                             R$ million
                                                                                                                                                      196
                                                                                                                          173
                                                                                   146
                                       132

                                                                                                                                                                                   94
                                                                                                            75
                                                                 60                                                                         64




                                      2Q04                    3Q04                4Q04                   1Q05            2Q05             3Q05            4Q05                    1Q06

Figure 19. Equalizations Revenues




45 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
We can observe an increase of R$ 19.0 million in the installments paid to the Bank by way of
compensation in 1Q06 in relation to 1Q05. The movement observed in the graph above is mainly due to
seasonal effect of investment operation, which are received in the second and fourth quarters of each
year.

Besides the mechanisms for risk management applicable to all the Bank’s loan portfolios, the Bank
applies, in the management of the agribusiness portfolio, specific methods for identifying risks and
minimizing losses.

To define the maximum level of exposure with each customer, the Bank has developed a credit limit
system specific for the rural producer - ANC Rural Producer – that takes into account behavioral data
and the technical risk of the business.

Table 34. Variables Associates to Technical Risk System for Agribusiness – RTA

                                 Productivity                   Cost                           Price
Soil                                  •                           •
Climate                               •                           •                              •
Roads                                                             •                              •
Warehouse                                                                                        •
Technology                            •                           •
Distance                                                          •                              •
Market                                                                                           •

For measuring the technical risk of the business of each customer, BB’s system is unique. It is made up
of a microregional database including the past history of product prices, productivities observed in the
crops, and modal production costs. There are one hundred thousand production spreadsheets that
represent the various kinds of productive systems that there are in the Country.

Besides improving the quality of the assets, this database makes automating the credit process viable. A
system like this, associated with the observance of the parameters of the Federal Government’s
Agricultural Zoning, has also created the conditions for implementing a new system for rural insurance,
the Farm Gold Insurance. Launched in September 2000, this instrument protects the farmer against
losses from climatic risks.




                                                   Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 46
 6.5.4 Foreign Trade Loan Portfolio

 The balance of Banco do Brasil’s foreign trade loan portfolio ended March 2006 with R$ 9,695 million,
 an increase of 5.6% in relation to March 2005, and 0.7% in relation to December 2005. Banco do Brasil
 offers several tools to support foreign trade, such as training, consultancies that accompany, step by
 step, all the stages of an international transaction, the Foreign Trade Counter, a virtual environment for
 trade between Brazilian companies and the global market, amongst others.

 This portfolio’s main product is ACC/ACE, which accounts for 72.2% of the total. In March 2006, this
 modality reached a balance of R$ 6,996 million, a decrease of 9.8% in relation to March 2005 and an
 increase of 4.7% in relation to December 2005. In March 2006, the volume contracted through
 ACC/ACE reached US$ 2,822 million.

 Table 35. Foreign Trade Loan Portfolio

                                                                                                                                  R$ million
                                           Jun/04        Sep/04        Dec/04       Mar/05    Jun/05       Sep/05       Dec/05      Mar/06
 ACC/ACE                                     7,117         7,056         6,393       7,756     7,494        6,801        6,684           6,996
 BNDES Exim                                    740           537           699         450     1,199        1,217        2,153           1,961
 Import Finance                                947           909           896         970       791          688          762             713
 Others                                          6             6             5           3         5            7           23              26
 Total                                       8,810         8,507         7,992       9,179     9,489        8,713        9,623           9,695


                                   Main Products of the Foreign Loan Portfolio
                                                                                                                          R$ million

                             ACC/ACE                                                                   BNDES Exim


                                                                                                                                 2,153
                                                                                                                                           1,961
                          7,756    7,494
7,117    7,056                              6,801 6,684 6,996
                 6,393                                                                                                  1,217
                                                                                                              1,199
                                                                              740            699
                                                                                     537             450



         /04                      /05
Jun/04 Sep Dec/04 Mar/05 Jun/05 Sep Dec/05 Mar/06                                    /04 Dec/04 Mar/05 Jun/05 Sep
                                                                            Jun/04 Sep                          /05 Dec/05 Mar/06

 Figure 20. Main Products of the Foreign Loan Portfolio

 The table below shows details of the ACC/ACE transactions:

 Table 36. ACC/ACE Average Volume per Contract

 ACC/ACE                                                     2Q04        3Q04       4Q04     1Q05        2Q05         3Q05       4Q05        1Q06
 Volume Contractad (US$ million)                            2,285        1,995      2,359    3,057       3,168        2,839      2,808       2,822
 Quantity of Contracts                                      7,821        7,513      7,772    8,085       8,152        8,077      7,801       7,587
 Average Volume per Contract (US$ thousandl)                   292         266        303      378         388         351        359             372
 Market share - %                                             33,1         30,8      34,1     39,5         37,2        36,3       35,3           31,5*
 * Market share calculated in base of prelimirary information from Central Bank,




 47 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.5.5 Concentration of the Portfolio

BB’s business loan portfolio in Brazil showed a concentration of 29.5% in the transactions with the 100
largest borrowers at March 2006, compared to 31.8% in March 2005.

Table 37. Concentrationof the Loan Portfolio Among the 100 Largest Borrowers

Period                                1st Customer                 2nd to 20th               21st to 100th           100th Largest
Jun/04                                         2.1                       14.1                        17.7                      33.9
Sep/04                                         1.5                       14.2                        17.9                      33.5
Dec/04                                         1.3                       12.4                        16.7                      30.4
Mar/05                                         1.2                       12.7                        17.9                      31.8
Jun/05                                         1.2                       12.2                        18.9                      32.2
Sep/05                                         1.3                       11.9                        16.0                      29.2
Dec/05                                         1.3                       11.9                        16.7                      29.9
Mar/06                                         1.0                       11.1                        17.4                      29.5


The table below shows the distribution of the business loan portfolio in Brazil by macro-sector of the
economy.

Table 38. Concentration of the Loan Portfolio by Macro-sector

                                                                                                                     R$ milllion
                                                                                                                   Chg. %
                                                                                                                on         on
Macro-sector                             Mar/05      Share %    Dec/05     Share %       Mar/06    Share %
                                                                                                               Mar/05     Dec/05
Services                                    7,782        14.7      7,162          12.9     6,987        12.1     (10.2)      (2.5)
Foodstuffs of Vegetable Origin              5,225         9.9      6,150          11.1     6,724        11.7       28.7        9.3
Metalworking and Steel                      4,408         8.3      4,100           7.4     4,500         7.8        2.1        9.8
Automotive                                  3,936         7.4      4,387           7.9     4,341         7.5       10.3      (1.0)
Oil                                         3,427         6.5      3,666           6.6     3,877         6.7       13.1        5.7
Eletrical and Eletronic Goods               2,578         4.9      2,832           5.1     2,976         5.2       15.5        5.1
Foodstuffs of Animal Origin                 2,572         4.9      2,717           4.9     2,693         4.7        4.7      (0.9)
Agricultural Consumables                    2,579         4.9      2,384           4.3     2,468         4.3      (4.3)        3.5
Building                                    1,831         3.5      2,182           3.9     2,258         3.9       23.3        3.5
Textiles and Garments                       2,029         3.8      2,251           4.1     2,255         3.9       11.2        0.2
Retail Trade                                2,233         4.2      1,990           3.6     2,092         3.6      (6.3)        5.2
Pulp and Paper                              1,926         3.6      2,242           4.0     2,091         3.6        8.6      (6.7)
Transport                                   1,117         2.1      1,770           3.2     1,924         3.3       72.3        8.7
Chemicals                                   1,696         3.2      1,869           3.4     1,895         3.3       11.7        1.4
Eletricity                                  1,324         2.5      1,389           2.5     1,772         3.1       33.9      27.6
Wholesale Trade / Sundry Industries           871         1.6      1,565           2.8     1,591         2.8       82.7        1.7
Timber and Furniture                        1,203         2.3      1,354           2.4     1,395         2.4       16.0        3.1
Telecommunications                          1,254         2.4      1,074           1.9     1,110         1.9     (11.5)        3.4
Leather and Shoes                             876         1.7        918           1.7       878         1.5        0.2      (4.3)
Beverages                                     805         1.5        492           0.9       655         1.1     (18.7)      33.0
Other Activities                            3,187         6.0      3,008           5.4     3,029         5.3      (5.0)        0.7
Total                                      52,859       100.0     55,502         100.0    57,513      100.0         8.8        3.6




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 48
6.6 Tax Credits
During 1Q06, Tax Credit stocks increased by R$ 2,218 million, representing a 33.2% increase compared
with 4T05. When compared to the same period of the previous year, tax credit increased by R$ 949
million or 11.9%. The movements observed were a result of changes in the criteria for tax credit
capitalization by means of CMN Resolution 3,355, dated 03/31/2006, which allows the capitalization of
Tax Credit, for which the estimate for consumption reaches 10 years, unlike the previous ruling, which
limited it to 5 years. Thus, BB was able to capitalize the amount of R$ 1,906 million in the 1Q05 balance
sheet.

It is worth pointing out that 77.7% of the tax credits are derived from temporary differences, arising from
the tax legislation not permitting the inclusion of given revenues and expenses in the basis for
calculation at the moment when they occur (accrual basis), but only at the moment they are settled
financially (cash basis). If we disregard these tax credits, the consumption in the period came to 41.2%,
in relation to March 2005, and 6.1% in relation to December 2005. The tax credits arising from tax
losses and negative bases reduced their share in the total, going down from 31.2% in 1Q05 to 20.2% in
1Q06.


                                                 Breakdown of Tax Credit
                                                                                      R$ million

                                37.7                                                     38.6
                                                                   31.7     32.4                         33.2            33.2
                 20.2                           17.3

                 9,116                                                                                                  8,905
                                8,505          8,396              7,956
                  58             65              49                        7,523                                         140
                                                                    43       57        6,815            6,687
                                                                                         81              72             1,801
                2,765          2,638           2,601              2,484    2,357                                          46
                                                                                        2,101           2,001
                1,577          1,231            1,172             851       527          51              42
                                                                                                                        6,919
                4,571          4,571           4,574              4,578    4,581        4,581           4,572


                Jun/04         Sep/04          Dec/04             Mar/05   Jun/05      Sep/05          Dec/05           Mar/06

                         Non-temporal Dif ferences                                  Fiscal Loss and Ne gative Base
                         Social Contribution to be Compensa ted                     Ma rk- to-Ma rke t and Tax Cr edit Abr oad
                         Total Tax Cre dit                                          Income Tax / I ncome bef. Inc om e Tax - %


Figure 21. Breakdown of Tax Credit

According to the last technical study on the consumption of tax credits in the multiple bank, the timetable
of use for the coming periods forecasts consumption of R$ 1,759 million in 2006, R$ 1,735 million in
2007, R$ 2,057 million in 2008, R$ 1,894 million in 2009 and R$ 1,341 million in 2010.




49 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.7 Analysis of Liabilities
The funding obtained by the Bank through demand, savings and time deposits grew 17.9% over the
balance of March 2005. Demand deposits showed an increase of 8.7%, reaching R$ 31,878 million,
savings deposits grew 5.0%, totaling R$ 32,975 million, and time deposits showed an increase of
30.7%, reaching R$ 68,948 million in March 2006.

The increase in Open Market Funding in relation to December 2005 was derived from utilization as
funding for operations with interbank funds and Credit Operations. The reduction in 1Q06 in the item
other liabilities was mainly due to the fall in the items foreign exchange and trading and value
intermediation portfolios. The latter was for a large part reclassified as foreign securities obligations.

Table 39. Liabilities

                                                                                                         R$ million
                                  Jun/04   Sep/04    Dec/04     Mar/05     Jun/05    Sep/05     Dec/05     Mar/06
Deposits                         115,795   115,079   115,532   120,096    117,952   122,672    137,658    139,195
 Demand Deposits                  29,425    30,191    28,991    29,340     27,923    27,694     35,802     31,878
 Savings Deposits                 28,939    29,915    31,069    31,418     31,607    32,093     32,844     32,975
 Interbank Deposits                7,684     5,530     5,768     6,489      5,837     5,885      5,383      5,262
 Time Deposits                    49,747    49,444    49,665    52,769     52,520    56,907     63,495     68,948
 Investment Deposits *                 -         -        38        81         66        93        134        131
Money Market Funding              37,132    42,003    44,527    43,086     36,168    35,989     30,508     42,758
Foreign Borrowing                 15,270    16,793    17,343    18,054      5,646     5,266      8,024      6,820
Domestic Onlending                 8,448     8,778    10,611    10,629     11,823    12,147     13,370     13,053
Other Liabilities                 37,866    39,175    36,895    38,888     46,812    52,610     46,567     43,601
Shareholders’ Equity              12,864    13,771    14,106    14,933     15,393    16,826     16,850     19,209
Total Liabilities                227,374   235,599   239,014   245,685    233,793   245,511    252,977    264,635


The following figure shows the changes in the percentage share of the main liabilities in such a way as
to facilitate an understanding of the composition of the sources of financing.




                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 50
Change in the Share of the Main Liabilities - %
                           12.9         12.8         12.1         11.9     11.9     11.3    14.2     12.0
     Demand Deposits


                          Jun/04         /04
                                       Sep         Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                           12.7         12.7         13.0         12.8     13.5     13.1    13.0     12.5
      Saving
      Deposits


                          Jun/04         /04
                                       Sep         Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                           21.9         21.0         20.8         21.5     22.5     23.2     25.1    26.1
     Time Deposits


                          Jun/04         /04
                                       Sep          Dec/04       Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                           16.3         17.8         18.6         17.5     15.5     14.7     12.1    16.2
     Money Market
     Funding


                          Jun/04         /04
                                       Sep          Dec/04       Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                           6.7          7.1          7.3          7.3
    Foreign                                                                2.4              3.2      2.6
                                                                                    2.1
    Borrowing


                         Jun/04         /04
                                      Sep          Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                                                     4.4          4.3      5.1      4.9     5.3      4.9
   Domestic                3.7          3.7
   Onlending


                         Jun/04         /04
                                      Sep          Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                          20.0         19.0         17.9          18.5     22.5    23.9     20.6     18.5
   Other


                         Jun/04         /04
                                      Sep          Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06

                           5.7          5.8          5.9          6.1      6.6      6.9     6.7      7.3
    Shareholders
    Equity

                         Jun/04         /04
                                      Sep          Dec/04        Mar/05   Jun/05     /05
                                                                                   Sep     Dec/05   Mar/06


Figure 22. Changes in the Liabilities




51 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.8 Deposits and Money Market Funding
Banco do Brasil’s market funding reached R$ 182.0 million in March 2006, an increase of 11.5% in
relation to March 2005 and of 8.2% in relation to December 2005. Main funding are Open Market
Funding (R$ 42.8 billion) and Time Deposits (R$ 68.9 billion), corresponding to 61,0% of the total.

                                                 Deposits and Market Funding
                                                                                       R$ billion




                                                                                                                                            182.0
                                                                                                                            163.3

                                                                                                                                    168.2
            35.8




                            31.4
     29.3




                                   32.8

                                          33.0
                   31.9




                                                                                             69.1
                                                                                    63.6
                                                                             52.8




                                                                                                       43.1



                                                                                                                     42.8
                                                     6.5




                                                                                                              30.5
                                                           5.4

                                                                  5.3


Demand Deposits           Saving Deposits             Interbank              Time Deposits          Money Market Funding            Total
                                                      Deposits
                                                 Mar/05             Dec/05                 Mar/06

Figure 23. Deposits and Market Funding

BB’s position of leadership in market funding shows the trust that Brazilians have in the institution,
                                                                            2
accounting for 19.1% of the total funding of the Brazilian banking industry. .

The Bank is also the leader in demand deposits, with a market share of 35.6%, and in time deposits,
with 19.0%, besides a prominent position in savings, with a 19.4% share.




2
    Base: December/2005




                                                                        Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 52
                                                  Market Share3 of BB Funding
                                                                                                                                R$ million


 36.3      36.5      33.1                                   35.6
                              32.6       32.6     32.7                               19.4         19.7      19.5      19.7         19.8      19.8      19.4




                                                             35,802




                                                                                                                                                                 32,975
                                                                                                                                                       32,844
                                                                                                                                             32,093
                                                                      31,878




                                                                                                                                    31,607
                                                                                                             31,069


                                                                                                                      31,418
            30,191




                                                                                                   29,915
  29,425




                               29,340




                                                                                      28,939
                     28,991




                                         27,923


                                                  27,694
Jun/04 Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06                             Jun/04 Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06

            Demand Deposits                 Market Share - %                                   Saving Deposits                         Market Share - %


20.4       20.2                                                                      21.1        20.9       20.9      20.5
                     18.9                         18.2      19.0                                                                   19.2      18.3      18.1
                                        17.7
                              16.4
                                                                      68,948
                                                            63,495




                                                                                                                                                                 181,952
                                                                                                                                                       168,032
                                                  56,907




                                                                                                                      163,182




                                                                                                                                             158,661
                              52,769


                                         52,520




                                                                                                  157,082




                                                                                                                                   154,120
                                                                                     152,927




                                                                                                            160,059
           49,444


                     49,665
 49,747




Jun/04 Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06                            Jun/04 Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06

           Time Deposits                Market Share - %                                       Total Funding                          Market Share - %


Figure 24. Market Share of BB Funding




3
  Information about the market share within the banking industry if from Central Bank. The latest available position at the time of publishing this report
was in dec/05.




53 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.8.1 Foreign Borrowing

Its foreign borrowing demonstrates that Banco do Brasil’s credibility goes beyond the national frontiers,
making BB a very attractive investment option for international investors. The following table shows the
issues in circulation.

Table 40. Foreign Borrowing

                                                                                                        Premium
  Issue        Volume in         Term in                      Interest       Issue     Return for the
                                              Cupom (%)                                                   over     Rating    Program
   Date        US$million         years                       Interval       price      Investor (%)
                                                                                                        Treasury
06.09.97                  200            10       9.375        Half-year     99,2190           9.500          287       Ba3      GMTN
08.10.01                  300             5       7.875          Quarter     99,6850           7.990          375       BBB Dekasseguis
12.27.01                  450             7       7.890       Trimestral    100,0000           7.890          325  BBB/Baa1      MT100
07.03.02                  300             7   L3M+0.60           Quarter    100,0000           5.013         *266   AAA/Aaa      MT100
09.11.02                   40             7       7.890          Quarter    100,0000           7.890          489  BBB/Baa1      MT100
03.17.03                  120             7       7.260          Quarter    100,0000           7.260          450  BBB/Baa1      MT100
07.10.03                  178             8       5.911          Quarter    100,0000           5.955          350 BBB+/Baa1     Visanet
07.10.03                   45             8       4.777          Quarter     95,0000           5.955          350 BBB+/Baa1     Visanet
12.19.03                  250            10       6.550          Quarter    100,0000           6.550          292  BBB/Baa1      MT100
09.20.04                  300            10       8.500        Half-year     99,1740           8.625          447      Baa1 Dív, Subor,
12.17.04                 **73             3 zero-cupom                 -     62,0385          17.250       ***180          -     GMTN
                                                                                                                              Perpetual
01.23.06                  500    Perpétuo             7.950     Quarter     100,0000           7.950                    Ba1
                                                                                                                              Securities
* 492 basis points over Libor
** amount in US$ equivalent to R$ 200 million, PTAX 2,75080
*** preliminary calculation in Reais with swap into US$


At the end of the period, Banco do Brasil prepared its first issue abroad in the perpetual security market,
launched on January 2006. This issue totaled US$ 500 million, US$ 200 million higher than initially
forecast and confirmed the success of the issue whose demand was more than US$ 4.2 billion. The
issue attracted the Asiatic, European and American markets.

Perpetual Securities are borrowing instruments recognized by BIS rules and widespread in the
international banking industry in order to compound their capital base. With this issue, BB increased the
leverage capacity of its loan operations. This issued was classified as Ba1 by Moody’s agency.




                                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 54
6.9 Shareholders’ Equity
Banco do Brasil closed March 2006 with R$ 19,209 million in shareholders’ equity, an amount 28.6%
higher than in the same period of the previous year and 14.0% higher in relation to December 2005. The
growth of shareholders’ equity in the year was mainly due to the incorporation of results.

An analysis of the graph below shows the inversely perfect correlation between yhe Brazilian country
risk and the impact of marking to market on shareholders’ equity, indicating that the discount on the
securities has been decreasing because of the greater confidence of the investors in the Brazilian
market.

          Brazilian Sovereign Risk (points) vs. Marking to Market (R$ million)
             646

                          466                            456
                                           383                       411
                                                                                       343              306
                                                                                                                     234



                                                                                                        130          146
           (51)                            43
                          (17)                                       (22)              (27)
                                                        (95)
           Jun/04        Sep/04          Dec/04        Mar/04       Jun/05        Sep/05               Dec/05      Mar/06


                                     Mark to Market
                                     Brazilian Sovereign Risk

Figure 25. Brazilian Sovereign Risk (points) vs. Marking to Market (R$ million)

Table 41. Shareholders’ Equity
                                                                                                                            R$ million
                                             Jun/04     Sep/04    Dec/04     Mar/05          Jun/05     Sep/05     Dec/05     Mar/06
Shareholders’ Equity                         12,864     13,771    14,106     14,933          15,393      16,826    16,850      19,209
  Capital                                     8,366      9,857     9,864      9,864          10,797      10,797    10,797      10,797
  Reserves                                    4,674      3,226     4,325      4,325           4,743       4,743     6,048       6,048
  MtM - Securities and Derivatives              (51)       (17)       43        (95)            (22)        (27)      130         146
  (Treasury shares)                           (126)      (126)     (126)      (126)           (126)       (126)     (126)       (126)
  Income accounts                                  -       833         -        965                -      1,438         -       2,343




55 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.10 BIS Ratio
Banco do Brasil closed March 2006 with referential shareholders’ equity 29.4% higher than that seen in
March 2005, and 10.6% higher than December 2005, reaching R$ 27,263 million.

Shareholders’ Equity increased by 28.6% in relation to March 2005, mainly due to incorporation of
results, which caused an increase in K Coefficient from 15.6% to 18.3% in the last 12 months. In the
quarter, the increase in K Coefficient was of 120 base points. This ratio is higher than the 11% required
by the Central Bank and allows BB leverage of R$ 98,713 million in loan assets.

Table 42. BIS Ratio
                                                                                                                                          R$ million
                                                   Jun/04         Sep/04         Dec/04        Mar/05        Jun/05       Sep/05     Dec/05 Mar/06
APR – Risk Weight Assets                          119,966        121,391        127,179       129,986       131,205      132,194    139,598 145.339
Required Shareholders’ Equity                      13,929         14,201         14,513        14,839        14,955       15,064     15,836   16.404
 APR Requirement                                   13,196         13,353         13,990        14,298        14,433       14,541     15,356   15.987
 Swap Requirement                                     152            223            196           190           173          259        223        219
 FX Exposure Requirement                                 -              -              -             -             -            -          -          -
 Interest Rate Exposure Requirement                   581            625            326           351           349          264        258        198
Referential Shareholders’ Equity                   18,299         20,272         20,050        21,070        21,566       23,872     24,639   27.263
 Tier I                                            12,702         13,609         14,000        14,746        14,958       16,392     16,817   19.169
   Capital                                          8,366          9,857          9,864         9,864        10,797       10,797     10,797   10.797
   Retained Earnings (Accumulated Losses)                -              -              -             -             -            -          -          1
   Capital Reserves                                      5              5              5             5             5            5          5          5
   Revenue Reserves                                 4,645          3,195          4,294         4,294         4,715        4,715      6,020     6.020
   Mark-to-Market – Securities and Derivatives        (51)           (17)             43          (95)          (22)         (27)       130        146
   Treasury Shares                                  (126)          (126)          (126)         (126)         (126)        (126)      (126)      (126)
   Income Accounts                                       -           833               -          965                      1,438           -    2.343
   60% Tax Credits Realized After 5 years           (137)          (137)            (80)        (161)            (411)     (411)        (10)       (16)
 Tier II                                            5,597          6,663          6,051         6,324            6,608     7,481      7,822     8.093
   Subordinated Debt                                5,573          6,637          6,025         6,298            6,585     7,457      7,799     8.070
   Revaluation Reserves                                 24             26             26            26              23         23         23         23
Shareholders’ Equity Surplus / Deficit              4,371          6,070          5,538         6,231            6,612     8,808      8,803   10.858
Leverage Surplus / Deficit                         39,733         55,185         50,344        56,645           60,106    80,074     80,029   98.713
K Coefficient %                                         14.5            15.7          15.2         15.6           15.9       17.4      17.1       18.3


                                                        Bis Ratio - %

                                                                                                                     18.3
                                                                                         17.4         17.1
                                       15.7       15.2         15.6            15.9
                             14.5
                                                                                                                     5.4
                                                                               4.9           5.5          5.4
                              4.4       5.2       4.6           4.7
                                                                                                                             11%

                                                                               11.0      12.0         11.7           12.9
                             10.1      10.5       10.6         10.9


                            Jun/04    Set/04     Dez/04        Mar/05       Jun/05       Set/05      Dez/05         Mar/06


                                                               Tier I      Tier II
Figure 26. Bis Ratio - %




                                                                        Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 56
CMN Resolution 3059/02 determined, as from 01.01.2004, an additional allocation of capital for the
stock of tax credits that exceed a 5 year consumption period from the date of the balance sheet.
According to the instruction, 40% of the remaining balance will be deducted from Tier I capital in 2005,
60% in 2006, and so on, until it arrives at 100% in 2008.

In accordance with technical studies of tax credit consumption, the surplus in the subsidiaries was about
R$ 24 million. Accordingly, the effect on Tier I capital was a reduction of R$ 16 million. In 2006, there will
be no allocation of capital in the multiple bank because of the absence of an excess after 5 years, as
described in explanatory note 18 to the Financial Statements.

Table 43. Changes in Composition of BIS Ratio
                                                                                                                         R$ million
                                                                  Referential          Required
                                                                                                      Effect in Basel     Effect in
                                                                 Shareholders’       Shareholders’
                                                                                                           Ratio         Leaverage
                                                                    Equity              Equity
Net Income deducted of Interest on Own Capital                            4,276                   -                2.9         38,874
Increase of Subordinated Debt                                             1,772                   -                1.2         16,107
Other Changes in Referential Shareholders’ Equity                             -                   -                  -              -
60% Tax Credit after 5 years                                                145                   -                0.1          1,314
Increase of Refer, Shareholders’ Eq, Requir, on Int, Rate Exp,                -               (153)                0.2          1,391
Increase of Refer, Shareholders’ Equity Requir, on Swap                       -                  29              (0.1)          (265)
Increase of Refer, Shareholders’ Eq, Requir,on Risk Weight
                                                                                 -            1,689              (1.6)        (15,353)
Assets
Annual Changes                                                           6,192               1,565                2.7          42,067


Balance at Mar/05                                                       21,070              14,839               15.6          56,645
Balance at Mar/06                                                       27,263              16,404               18.3          98,713
Net Annual Changes                                                        6,192               1,565               2.7          42,067


In the table above, it is possible to see the determinant factors for the increase of 270 points basis in the
K-Coefficient, which grew surplus leverage by R$ 42,067 million. The main effects on leverage in last 12
months were from the income of the period, which generated a leverage surplus of R$ 38,874 million
and the increase in the Bank’s subordinated debt, which generated a surplus of R$ 16,107 million.

These factors were more than sufficient to support the increase of R$ 1,689 million in the referential
shareholders’ equity requirement on risk weighted assets and the allocation of capital for the Swap risk.
In the same period, a reduction of R$ 145 million is to be seen in the capital allocated for tax credits after
5 years, and a fall of R$ 153 million in the capital allocated for interest rate risk.




57 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
6.11 Fixed Asset Ratio
In the last 12 months, there was a reduction in the Fixed Asset Ratio of 350 base points through profit
incorporation and increase in the Subordinated Debt. With the present fixed asset level, BB may
increase its Fixed Assets by R$ 9,005 million, thus satisfying the maximum 50% limit of the Referential
Shareholders’ Equity.

Table 44. Fixed Asset Ratio
                                                                                                                R$ million
                                           Jun/04   Sep/04   Dec/04    Mar/05    Jun/05    Sep/05     Dec/05      Mar/06
 Shareholder’s Equity                      12,864   13,771   14,106    14,933     15,393    16,826    16,850       19.209
 Subordinated Debt Qualifying as Capital    5,573    6,637    6,025     6,298      6,585     7,457     7,799        8.070
  60% Tax Credits Realized After 5 years    (137)    (137)      (80)     (161)     (411)     (411)       (10)         (16)
Referential Shareholders’ Equity (A)       18,299   20,272   20,050    21,070    21,566     23,872    24,639       27.263
 Permanent Assets                           4,517    4,585    5,059     4,946      5,016     5,008     5,580        5.524
 Stock Exchange and Cetip Clearing            (2)      (2)       (2)       (2)       (2)        (2)       (2)          (2)
 Leasing Assets                             (456)    (507)     (537)     (598)     (658)     (705)     (788)         (869)
 Losses with Leasing to be Amortized         (10)     (12)      (15)       (9)      (22)      (23)       (24)         (26)
Total Fixed Assets (B)                      4,049    4,063    4,504     4,324      4,334     4,278     4,766        4.626
Fixed Asset Ratio (B/A) - %                  22.1     20.0      22.5      20.5      20.1      17.9      19.3         17,0
Margin (Surplus) - %                        5.101    6.072    5.521     6.211      6.449     7.658     7.554        9.005




                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 58
6.12 Risk Management
With the integration of the structure for managing the conglomerate’s market, liquidity, operational and
credit risks, the Risk Management became responsible for the overall management of risks. This
integration is bringing about, amongst other aspects, greater precision in the measurement of risks and
a better allocation of capital, observing the New Basel Accord, by generating an increase in the synergy
of processes and of the degree of specialization.

The Global Risk Committee (CGR) is responsible for the integrated management of the Bank’s risk,
defining exposure limits, contingency plans and risk measurement models.

Management of liquidity and market risks in Banco do Brasil is oriented by scenario analysis,
considering stress situations.

For market risk management, BB separates commercial and treasury operations from trading
operations, with their own limits and strategies.

6.12.1 Market Risk Management

BB uses statistical and simulation methodologies to measure the market and liquidity risks of its
positions. Amongst them, mention should be made of:

• Value at Risk (V@R);
• Sensitivity (parallel shift and curvature of risk factors);
• Stress Analysis.

The Value at Risk (V@R) is a measure of maximum expected loss in monetary values, under normal
market conditions, in a determined line period, with a chosen level of probability. At BB, the V@R is
measured by the historical simulation methodology, with probability of 95%, for a period of 1 (one) day.

The methodology for historical simulation uses the changes observed in interest rates, market indices,
foreign exchange rates, shares and commodities. For the Brazilian market, this model for measuring the
risk of instruments and portfolios is the most appropriate. This methodology passes through a process of
backtesting, which consists of comparing the distribution of the values calculated with the financial
results actually occurred.

With a view to determining the sensitivity of the Bank’s capital to the impacts of extreme market
movements, stress scenario tests are carried out. These scenarios are constructed from strong shocks
in the market, and are based on significant historical moments or forecast economic-and financial
scenarios.

Building the scenarios is the responsibility of the Scenarios Commission, under the coordination of the
Bank’s economics department.

Banco do Brasil adopts the policy of managing its foreign currency exposure so as not to a capital
requirement for its coverage, respecting the exposure limit of 5% in relation to the Referential
Shareholders’ Equity, as defined in CMN Resolution CMN 2891, of 09/26/2001. It is worth emphasizing
that for strategic reasons, on 03/09/2006, the Board of Directors authorized, , on Global Risk Committee
to set the maximum limit of capital consumption for foreign exchange exposure, which allows exposition
of until R$ 2 billion.

The Central Bank made optional the use of a methodology that takes into consideration exposures in
Euros, Dollars, Swiss Francs, Yens, Pounds Sterling and Gold as a single currency, incorporating the



59 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
diversification effect in the calculation of foreign exchange exposure. With the objective of improving the
management of foreign exchange risk, Banco do Brasil has adopted this methodology.

Below, we present an information balance sheet of foreign currency assets and liabilities referenced to
the American dollar, for the position at March 2006, exposing liability of US$ 693 million:

Table 45. Balance Sheet of Foreign Exchange Assets and Liabilities
                                                                                                        Multiple Bank - US$ million
                                                                                                                          03.30.06
                             ASSETS                                                      LIABILITIES
Trade Bills                                                    168 Currency Swap                                               72
DDI                                                             26 U,S, Dollar Spot                                           135
Term Market operations                                         268
Futures                                                         61

Foreign Investiment                                        1,486 Res, 2770                                                  2,420
                                                                 Debt Assumption                                              205

Other Currency Assets                                          130

Total                                                      2,139 Total                                                      2,832
FX Exposure                                                                                                                   693


The graph bellow shows the behavior of Banco do Brasil’s foreign exchange exposure since February
2005, in relation to the referential shareholders’ equity:

                                         Changes in FX Exposure - %
                                                                                                                   4.91
                                                                                                                   0.22

                                               3.46                         3.58
          3.18                        3.12                           2.91   0.23                 3.20
                      2.81    2.67             0.30                  0.24                        0.26
           0.34                       0.30              2.60                          2.56                2.44
                      0.33    0.31                      0.25                          0.26                0.27     4.69
                                               3.16                         3.35                 2.94
          2.84        2.48            2.82                           2.67
                              2.36                      2.35                          2.30                2.17



         Apr/05   May/05 Jun/05      Jul/05   Aug/05 Sep/05 Oct/05          Nov/05 Dec/05 Jan/06         Feb/06 Mar/06

                      Exposure % - Currency Basket    Exposure % - Other Currencies          Exposurse % - Total

Figure 27. Changes in FX Exposure - %

The following table shows the balance sheet of Banco do Brasil, as of March 30, 2006, setting forth the
amounts in Reais and in foreign currencies in internal and external, accounting position:




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 60
Table 46. Balance Sheet by Currencies - Assets
                                                                                                          R$ million
                                                                                                         03.30.2006
                                                                                           Foreign Currency

                                                    Balance Sheet     Local Currency    Brazil         Abroad

ASSETS                                                      264,635           226,507       10,612            27,516
Current Assets and Long-Term Receivables                    259,111           221,159       10,590            27,362
Cash and cash equivalents                                     4,056             2,558          159             1,339
'Short-term interbank investments                            35,744            21,435            -            14,309
Securities and derivative financial instruments              68,631            65,369          368             2,894
Interbank accounts                                           24,912            24,911            -                 1
Interdepartmental accounts                                       12                12            -                 -
Loan and lease operations                                    88,336            77,778        1,895             8,664
Other receivables and assets                                 37,420            29,097        8,168               154
Permanent Assets                                              5,524             5,348           21               154
  Investments                                                 1,030               985           21                24
  Property and equipment                                      3,015             2,890            -               124
  Leased assets                                                 895               895            -                 -
  Deferred charges                                              584               577            -                 7

Table 47. Balance Sheet by Currencies – Liabilities
                                                                                                          R$ million
                                                                                                         03.30.2006

                                                                                           Foreign Currency

                                                     Balance Sheet    Local Currency    Brazil         Abroad

Liabilities and Shareholder’s Equity                        264,635           226,783       14,036            23,816
Current and Long-term Liabilities                           245,295           207,448       14,036            23,811
Deposits                                                    139,195           123,564        3,258            12,373
  Demand Deposits                                            31,878            27,658        3,258               961
  Savings Deposits                                           32,975            32,975            -                 -
  Interbank Deposits                                          5,393               961            -             4,433
  Time Deposits                                              68,948            61,969            0             6,979
Money Market Borrowing                                       42,758            40,995            -             1,763
Funds from Acceptances and Securities Placed                  2,789                 -            -             2,789
Interbank Accounts                                            1,477             1,470            -                 8
Intrabank Accounts                                            1,273               196        1,076                 -
Onlending                                                    17,084            13,053          348             3,683
Financial Derivatives                                         1,446             1,446            -                 -
Other Liabilities                                            39,274            26,724        9,354             3,196
Unearned Income                                                 131               126            -                 5
Shareholders’s Equity                                        19,209            19,209            -                 -

Banco do Brasil manages its exposures on a consolidated basis, analyzing the impacts of several
scenarios and stress tests. The following graph shows Banco do Brasil’s the composition of assets and
liabilities in Brazil, detailed by indexer:




61 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                     Balance Sheet by Index4
                                                                               R$ billion – 03.30.06

                                                       Assets                  Liabilities



                                                                                   49.0               Fixed
                               Fixed
                                                       76.2


                                                                                   64.9               CDI/TMS/FACP

                       CDI/TMS/FACP                    89.2

                                                                                   56.9               IRP/TBF/TR
                           IRP/TBF/TR
                                                       34.8
                                                                                    0.1               IGP
                                     IGP                5.6                        12.7               TJLP
                                    TJLP               12.9
                                                                                   32.2              US$/Gold

                              US$/ Gold                29.6                                      w/o Index
                                                                                   21.0
                                   w/o Index                                                         Shareholders’
                                                       13.3
                                                                                   36.6              Equity; Adm.
                            Tax Credit;                                                              Pro.;Float
                            Permanent                  11.8


Figure 28. Balance Sheet by Index

The chart below shows Banco do Brasil’s net mismatches, by index in Brazil.

                                                 Mismatch Gaps by Index5
                                                                               R$ billion – 03.30.06
             27.2
                            24.3




                                               5.5            0.2
                                                                          (2.6)
                                                                                             (7.7)



                                                                                                              (22.1)
                                                                                                                        (24.8)

         CDI/TMS/FAC       Fixed               IGP            TJLP      US$/         w/o Index            IRP/TBF/TR   Other
         P
Figure 29. Mismatch Gaps by Index



4
    Visão Banco Múltiplo



                                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 62
Abroad Portfolio

The consolidated portfolio of the Foreign Network is made up of the positions of assets and liabilities,
comprising commercial, financial, derivative and securities transactions, recorded in the balance sheets
of Banco do Brasil’s units located abroad.

The following table shows the net position of the present value (MtM) and the value at risk (V@R) of the
consolidated figures of the Foreign Network at the end of the 4th quarter of 2005, calculated according
to the methodology already detailed, applying the treatment provided for in Central Bank of Brazil
circulars 3.068 and 3.082 for transactions with derivatives and with securities.

Table 48. Abroad Portfolio

                                                                                            US$ thousand
                                                                 MtM Amount                       V@R
Abroad Portfolio                                                      609,842                     12,569


The following table details the average, minimum and maximum V@R of the Foreign Network portfolio
observed between January and March 2006:

Table 49. Average V@R, Minimum and Maximum

                                                                                                thousand
Abroad Network                                 Minimum                       Average           Maximum
Abroad Network in US$                              7,521                         10,880           12,569


Fixed Interest Rate Portfolio

The risk management strategy for the set of Real-denominated operations and remunerated at pre-fixed
interest rates establishes the VaR limit definition for corrected cost portfolio, which is composed of
products recorded in the accounting by the corrected cost value. The products recorded at market value
are managed by means of Domestic Treasury specific-portfolio limits.

The V@R methodology used in managing and accompanying the limits of these portfolios is the same
as defined by the Brazilian Central Bank, through Circular 2.972 of 3.23.2000, that is, a 99% confidence
level for the period of 10 days and the allocation of the marked-to-market values by standard vertices.

Table 50. Portfolios Indexed to Fixed Interest Rates

                                                                                             R$ thousand
Fixed Interest Rate                                              Σ VP Vertices                      V@R
Cost Adjusted Portfolio                                            24,297,855                    108,856


Trading Portfolio

For the purposes of management, Banco do Brasil segregates the trading transactions from the others,
establishing specific strategies and limits. The diversification effect shows the risk reduction of the
portfolio arising from the correlations between the assets that it comprises.




63 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
The table below shows the V@R for the domestic trading portfolio by risk factor:

Table 51. Domestic Trading Portfolio

                                                                                                       R$ thousand
                                                         Domestic Trading
Risk Factor                                           MtM Amount                                               V@R
Fixed Rate                                                 14,753                                                43
Floating Rate                                                   -                                                 -
Diversification effect                                          -                                                 -
Total                                                      14,753                                                43


The table below shows the V@R for the international trading portfolio by risk factor:

Table 52. International Trading Portfolio

                                                                                                     US$ thousand
                                                        International Trading
Risk Factor                                           MtM Amount                                               V@R
US Dollar                                                  45,782                                               181
Euro                                                       (1,206)                                                17
Sterling Pound                                                 268                                                 2
Other Currencies                                               250                                                 3
Diversification effect                                           -                                              (85)
Total                                                      45,094                                               118


The table below sets out the average, minimum and maximum V@R of the international trading portfolio
observed between January and March 2006.

Table 53. Average V@R, Minimum and Maximum

                                                                                                           thousand
Trading                                     Minimun                       Average                         Maximum
Domestic (R$)                                     -                             347                             639
Internaiional (US$)                              41                             102                             191




                                                      Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 64
6.12.2 Liquidity Risk Management

Banco do Brasil maintains adequate levels of liquidity, as a result of its broad and diversified depositor
base and the quality of its assets, and of the strong control over liquidity risk, in accordance with the
Market and Liquidity Risk Policy established for the group.
The liquidity risk management instruments adopted are:

•   Short, Medium and Long Term Liquidity Forecasts.
•   Risk limits.
•   Liquidity Contingency Plan.

The main risk limits are the minimum liquidity reserve and the availability of free funds (DRL) indicator,
established by the Global Risk Committee.

The DRL is an indicator of liquidity that aims to ensure the equilibrium between the funding and
application of funds in the commercial portfolio and to guarantee the generation of structural resources
for financing liquidity, used in planning and carrying out the Bank’s budget. The new DRL limits guided
the preparation of the 2006 budget according to funding and commercial investment goals and the
Liquidity management established by the Board of Directors.
The minimum liquidity reserve is the minimum level of cash to be held by the Bank, compatible with the
degree of exposure to risk arising from the characteristics of its assets and liabilities and from the market
conditions, used as a parameter for identifying a liquidity crisis and activating the liquidity contingency
plan and, if necessary, adopting liquidity contingency measures.
In the liquidity contingency plan the actions and measures to be adopted in a liquidity crisis are defined.
A liquidity crisis, which is characterized when the short term liquidity forecast indicates levels lower than
the limit of the minimum liquidity reserve defined.
In this first quarter, there was no departure from the risk limits, thus ensuring the proper management of
the Bank's liquidity risk, as shown in the following graph.


                                   Availability of Free Funds – DRL %




                                                                                                      20%



         Fev/05 Mar/05 Abr/05 Mai/05 Jun/05        Jul/05 Ago/05 Set/05 Out/05 Nov/05 Dez/05 Mar/06

Figure 30. Availability of Free Funds – DRL %




65 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7 – Analysis of Results
7.1 Gross Financial Margin
Table 54. Gross Financial Margin

                                                                                                                R$ million
                                                                     Quarterly Flow                     Chg.%
                                                           1Q05               4Q05     1Q06        on 1Q05      on 4Q05
Financial Intermediation Income                             8,191             8,856     8,892           8,6           0,4
   Loans                                                    4,546             5,036     5,095          12,1           1,2
   Leasing                                                      29               36        38          29,5           4,6
   Securities                                               3,166             3,333     3,521          11,2           5,7
   Financial Derivatives                                      (31)            (229)     (139)         344,6        (39,4)
   Foreign Exchange Portfolio                                 (50)            (501)       452             -       (190,2)
   Compulsory Investments                                     386               429       427          10,5         (0,5)
   FX Gain (Loss) on Foreign Investments                      (40)              166     (266)         564,6       (260,4)
   Other Op, Inc, of a Fin, Intermed, Nature                  184               587     (237)       (228,4)       (140,3)
Financial Intermediation Expenses                         (4,100)           (4,458)   (4,486)           9,4           0,6
   Money Market Funds                                     (3,729)           (3,976)   (3,984)           6,8           0,2
   Borrowing, Assignments and Onlending                     (371)             (482)     (502)          35,1           4,0
Gross Financial Margin                                      4,090             4,398     4,406           7,7           0,2

The gross financial margin represents the result from financial intermediation business before provisions
for credit risks. In 1Q06, the margin was R$ 4,406 million, growing 7.7% in relation to 1Q5 and 0.2% in
relation to 4Q05.

In 1Q06, the Gross Financial Margin grew R$ 316 million in relation to 1Q05. The spread went up from
1.6938% in 1Q05 to 1.7007 in 1Q06. The growth of the margin was driven both by the rise in the
interest rates and of volume, which went up from R$ 241,493 million to R$ 259,070 million in 1Q06. We
highlight the fact that the spread between Selic and the TR was larger in this period than in 1Q05, a fact
that, combined with the index mismatch profile, increased the margin (please see figure 28). It is worth
to remind that, although exchange rate variation has impacted several items of the GFM, its effect on the
formation of the margin was small, because of BB’s low foreign exchange exposure.

The table below demonstrates the formation of the Gross Financial Margin from the changes in the
spread and from the growth in the volume of investments (Assets – Permanent Assets):

Table 55. Analysis of Volume (Assets – Permanent) and Quartely Spread – 1Q05 and 1Q06
                                                                                                                R$ million
                                                                             1Q05               1Q06            Abs. Chg.
Volume: Assets – Permanent Assets *                                       241,493          259,070                 17,577
Gross Financial Margin                                                      4,090               4,406                 316
Spread - % **                                                              1.6938           1.7007                 0.0069
Gain/(loss) with volume                                                                         4,388                 298
Gain/(loss) with spread                                                                         4,107                  17
Gain/(loss) with volume and spread                                                                                      1
* Average Balances
** Gross Financial Margin / (Assets – Permanent Assets)




                                                          Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 66
Analysis of Volume (Assets – Permanent) and Quarterly Spread – 1Q05 and 1Q06
                     Spread - %




                 1Q06 – 1.7007
                                                    17                      1
                 1Q05 – 1.6938



                                                   4,090                    298



                                                                                          Volume - R$ million

                                                                                     1Q06 – 259,070
                                                                         1Q05 – 241,493
                                      Gain/(Loss) in Volume
                                      Gain/(Loss) in Spread
                                      Gain/(Loss) in Volume and Spread


Figure 31. Analysis of Volume (Assets – Permanent) Quarterly Spread – 1Q05 e 1Q06

Considering the volume based on Remunerated Assets, spread went up from 2.0456% in 1Q05 to
2.0631% in 1Q06. The volume of Remunerated Assets was R$ 213,563 billion, compared with R$
199,964 million in 1Q05.

The table below demonstrates the formation of the Gross Financial Margin from the changes in the
spread and from the growth in the volume of investments (Remunerated Assets):

Table 56. Analysis of Volume (Remunerated Assets) and Annual Spread – 1Q05 e 1Q06
                                                                                                                R$ million
                                                                             1Q05                 1Q06          Abs. Chg.
Volume: Assets – Permanent Assets *                                        199,964              213,563            13,598
Gross Financial Margin                                                       4,090                4,406               316
Spread - % **                                                               2.0456               2.0631            0.0175
Gain/(loss) with volume                                                                           4,369               278
Gain/(loss) with spread                                                                           4,126                35
Gain/(loss) with volume and spread                                                                                      2
* Average Balances
** Gross Financial Margin / (Assets – Permanent Assets)




67 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.1.1 Analysis of Uses
The annualized investment rate of Financial Intermediation Income over Remunerated Assets increased
from 17.4% to 17.7% (Mar/05 - Mar/06). This increase is mainly due to the higher income from loan
operations and securities.
Table 57. Investment Rate
                                                                                         Average Balances in R$ million
                                                                   1Q05                   4Q05                  1Q06
Remunerated Assets                                               199,964                197,940                213,563
Fin, Interm, Income (Reallocated Income Statement)                 8,191                  8,856                  8,892
Fin, Interm, Income, / (Remunerated Assets)                          4.1                    4.5                    4.2
Fin, Interm, Income, / (Remunerated Assets)- Ann.                   17.4                   19.1                   17.7

The average balance of available funds in foreign currency showed a significant reduction due to
changes in the accounting rules for foreign exchange transactions, which allow certain asset and liability
accounts to be balanced out. The investment rate in this item in the period showed great volatility,
because of the behavior of the dollar.
Table 58. Investment Rate on Available Funds in Foreign Currency
                                                                                          Average Balances in R$ million
                                                                   1Q05                   4Q05                   1Q06
Available Funds in Foreign Currency                               11,664                   403                      245
Income from Available Funds in Foreign Currency                        6                     14                       5
Annualized Rate - %                                                 0.22                  14.41                    8.14

Securities income in 1Q06 totaled R$ 3,521 million, an amount 11.2% higher than that recorded in 1Q05
and 5.7% in relation to 4Q05. The annualized investment rate decreased 20 basis points in relation to
1Q05, reflecting the fall in Selic rate.
Table 59. Investment Rate on Securities and Interbank Investments
                                                                                         Average Balances in R$ million
                                                                   1Q05                   4Q05                  1Q06
Securities + Interbank Investments                                92,440                 94,116                 104,485
Securities Income excluding Hedges                                 3,166                  3,333                   3,521
Annualized Rate - %                                                 14.4                   14.9                    14.2

The following table shows the origin of the revenues of the securities portfolio. In 1Q06, the accrual of
revenues from the portfolio showed a decrease of 11.5% in relation to 1Q05, basically because of the
decrease in the average Selic rate. The result of marking-to-market (MTM) showed a negative effect of
R$ 2.0 million in 1Q06, against a negative effect of R$ 6.0 million in 1Q05.
Table 60. Securities Income
                                                                                                            R$ million
                                                              Quarterly Flow                            Chg.%
                                                     1Q05               4Q05               1Q06     on 1Q05    on 4Q05
Securities Income                                    3,166              3,333              3,521        11.2         5.7
 Fixed Income Securities                             2,866              2,746              2,569      (10.4)       (6.4)
   Revaluation – Curve                               2,873              2,727              2,543      (11.5)       (6.8)
   Income/Loss from Negotiation                         (1)                19                 28           -       49.8
   Mark to Market                                       (6)                (0)                (2)     (69.4)      672.1
 Others                                                300                587                952      217.6        62.2




                                                          Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 68
The figure below shows the main indices in BB’s securities portfolio.

                                                 Securities Portfolio by Index
                                                                                                       Multiple Bank– 03.30.2006
                                                                   3.6% 0.6%
                                                                0.6%
                                                             3.9%
                                                       9.1%




                                                                                   82.2%

                                        CDI/TMS        Fixed       TR and Others      Dollar   IGP-M   IPCA
Figure 32. Securities Portfolio by Index

In 1Q06, Revenues from Loans and Leasing reached R$ 4,837 million, an increase of 11.9% in relation
to 1Q05. The search for less onerous sources of financing by the borrowers contributed towards the
reduction in profitability in the period. Annualized investment rate went down from 22.8% in 1Q05 to
22.2% in 1Q06.

Table 61. Investment Rate on Loans and Leasing

                                                                                                       Average Balances in R$ million
                                                                                    1Q05                4Q05                  1Q06
Loans + Leasing                                                                    82,095              89,416                 94,036
Loans + Leasing Income                                                              4,322               4,814                  4,837
Annualized Rate - %                                                                  22.8                23.3                   22.2
*Income from recoveries of loans written off as losses are not included.




69 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
The behavior of the dollar explains the changes in the items below. The relationship of these accounts
with exchange rate variation is shown in the following figure.

Table 62. FX Gain (Loss) and Other FX Operations

                                                                                                                R$ million
                                                                         1Q05                4Q05                  1Q06
FX Gain (Loss) on Foreign Investments                                     (40)                  166                  (266)
Other FX Operations                                                       (56)                (515)                    447


                              FX Gain (Loss) and Other FX Operations




                           2Q04     3Q04    4Q04      1Q05        2Q05     3Q05    4Q05     1Q06

                                           FX Gain (Loss) on Foreign Investments
                                           Other FX Operations
                                           Dollar Variation - %


Figure 33. FX Gain (Loss) and Other FX Operations




                                                             Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 70
7.1.2 Analysis of Funding

The annualized Financial Intermediation Expenses over Remunerated Assets increased 20 basis points
in relation to 1Q05. This is mainly due to the rise in Time Deposits, which balance grew from R$ 52,769
million in March, 2005 to R$68,948 million in March 2006. When compared to 4Q05, the 60 basis points
reduction in the annualized funding rate was due to to an increase in Open Market Funding, where
funding rates are lower than the Time Deposit remuneration rates. In 1Q06, the total annualized cost of
borrowing came to 8.7%.
Table 63. Funding Cost
                                                                                                    Average Balances in R$ million
                                                                              1Q05                     4Q05                    1Q06
Remunerated Assets                                                          199,964                  197,940                   213,563
Financial Intermediation Expenses                                            (4,100)                  (4,458)                   (4,486)
Finan, Interm, Expenses, / (Remunerated Assets)                                  2.1                      2.3                       2.1
Finan, Interm, Expenses, / (Remunerated Assets)- Ann,                            8.5                      9.3                       8.7


Foreign borrowing was significantly reduced in the year, because of the change in the rules for recording
foreign exchange transactions, as previously commented, as due the depreciation of Dolar.
Table 64. Cost of Foreign Borrowing
                                                                                                    Average Balances in R$ million
                                                                              1Q05                     4Q05                    1Q06
Foreign Borrowing                                                            16,877                     4,532                    4,173
Expenses with Borrowing, Onlending, and Foreign Banks                           (66)                      (66)                     (56)
Annualized Rate - %                                                              1.6                       6.0                      5.5

A growth can be seen in the expenses with Deposits and Money Market Borrowing, whose rate fell from
9.5% in 1Q05 and 10.01% in 4Q05 to 9.0% in 1Q06. This movement is explained by the behavior of
interest rates in the last 12 months.
Table 65. Market Funding Cost
                                                                                                    Average Balances in R$ million
                                                                             1Q05                    4Q05                   1Q06
Money Market Borrowing                                                    162,228                  163,891                  178,988
Expenses withd Money Market Borrowing 5                                    (3,729)                  (3,976)                  (3,901)
Annualized Rate - %                                                            9.5                     10.1                      9.0
 Savings Deposits                                                          31,458                   32,313                   33,121
 Expenses with Savings Deposits                                              (665)                    (705)                    (669)
 Annualized Rate - %                                                           8.7                      9.0                      8.3
 Interbank Deposits                                                          6,621                    5,442                    5,056
 Expenses with Interbank Deposits                                            (101)                    (127)                    (202)
 Annualized Rate - %                                                           6.3                      9.6                     17.0
 Time Deposits                                                             51,596                   61,725                   67,378
 Expenses with Time Deposits                                               (1,269)                  (1,927)                  (1,588)
 Annualized Rate - %                                                          10.2                     12.1                      9.8
 Money Market Borrowing                                                    43,787                   32,715                   41,962
 Expenses with Money Market Borrowing                                      (1,694)                  (1,217)                  (1,442)
 Annualized Rate - %                                                          15.9                     15.7                     14.5
 Demand Deposits                                                           28,764                   31,694                   31,472


5
 Expenses with Deposits and Money Market Borrowing except Expenses with Foreign Securities, Expenses with FGC on Demand Deposits, and
Expenses with Debt Assumption Contracts.




71 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.1.3 Analysis of Spread

The overall annualized quarterly spread from financial intermediation has shown a decrease in relation
to the periods under analysis. This is basically due to an increase in operations committed before TVM,
in which Total Assets is increased, and to a growth in Financial Intermediation Expenses.

                                             Analysis of Spread - %
                             9.2                                    9.0      9.0          9.2
                                       8.8      8.7
                                                         8.4                                    8.5

                             7.4                                    7.3      7.3          7.5
                                       7.1      7.1      6.9                                    7.0




                             2Q04     3Q04     4Q04     1Q05       2Q05     3Q05      4Q05      1Q06

                                                GFM / (Assets - Permanent) - Annualized
                                                GFM / (Remunerated Assets) - Annualized


Figure 34. Anaysis of Spread - %

Table 66. Investment Rates and Funding Costs

                                                                                   1Q05                 4Q05                     1Q06
Finan, Interm, Income / (Assets – Permanent Assets)                                 3.4                   3.7                     3.4
Finan, Interm, Income / (Assets – Permanent Assets) – Ann,                         14.3                  15.5                    14.5
Finan, Interm, Expenses / (Assets – Permanent Assets)                               1.7                   1.8                     1.7
Finan, Interm,, Expenses / (Assets – Permanent Assets) – Ann,                       7.0                   7.6                     7.1
GFM / (Assets – Permanent Assets)                                                   1.7                   1.8                     1.7
GFM / (Assets – Permanent Assets) – Annualized                                      6.9                   7.5                     7.0
Finan, Interm, Income / (Remunerated Assets)                                        4.1                   4.5                     4.2
Finan, Interm, Income / (Remunerated Assets) – Annualized                          17.4                  19.1                    17.7
Finan, Interm, Expenses / (Remunerated Assets)                                      2.1                   2.3                     2.1
Finan, Interm, Expenses / (Remunerated Assets) – Annualized                         8.5                   9.3                     8.7
GFM / (Remunerated Assets)                                                          2.0                   2.2                     2.1
GFM / (Remunerated Assets) – Annualized                                             8.4                   9.2                     8.5




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 72
7.1.4 Analytical Spread

Table 67. Analytical Spread – Investment Rates

                                                                            Average Balances in R$ million
                                                                   1Q05        4Q05                    1Q06
Remunerated Assets                                               199,964     197,940               213,563
Available Funds in Foreign Currency                               11,664         403                   245
Income from Available Funds in Foreign Currency                         6         14                     5
Annualized Rate - %                                                   0.2       14.4                   8.1
Securities + Interbank Investments                                92,440      94,116               104,485
Securities Income excluding Hedges                                 3,166       3,333                 3,521
Annualized Rate - %                                                 14.4        14.9                  14.2
Loans + Leasing                                                   82,095      89,416                94,036
Loans + Leasing Income                                             4,322       4,814                 4,837
Annualized Rate - %                                                 22.8        23.3                  22.2
Remunerated Compulsory Deposit                                    13,129      13,255                14,017
Income from Compulsory Deposits                                      386         429                   427
Annualized Rate - %                                                 12.3        13.6                  12.7
Other Remunerated Assets                                             637         750                   780
Other Income with Financial Intermediation Characteristics             37         37                    32
Annualized Rate - %                                                 25.6        21.5                  17.5
Tax Credits                                                        8,127       6,720                 7,352
Other Assets                                                      33,401      37,668                38,155
Permanent Assets                                                   4,945       5,392                 5,496
TOTAL ASSETS                                                     246,437     247,720               264,566




73 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 68. Analytical Spread – Funding Costs

                                                                                      Average Balances in R$ million
                                                                    1Q05                   4Q05                    1Q06
Interest Bearing Liabilities                                      169,839                160,413                176,204
Savings Deposits                                                   31,458                 32,313                 33,121
Expenses with Savings Deposits                                       (665)                  (705)                  (669)
Annualized Rate - %                                                     8.7                    9.0                    8.3
Interbank Deposits                                                   6,621                  5,442                  5,056
Expenses with Interbank Deposits                                     (101)                  (127)                  (202)
Annualized Rate - %                                                     6.3                    9.6                  17.0
Time Deposits                                                      51,596                 61,725                 67,378
Expenses with Time Deposits                                        (1,269)                (1,790)                (1,588)
Annualized Rate - %                                                   10.2                   12.1                     9.8
Money Market Borrowing                                             43,787                 32,715                 41,962
Expenses with Money Market Borrowing                               (1,645)                (1,217)                (1,442)
Annualized Rate - %                                                   15.9                   15.7                   14.5
Foreign Borrowing                                                  16,877                   4,532                  4,173
Expenses with Foreign Borrowing, Onlending and Banks                   (66)                   (66)                   (56)
Annualized Rate - %                                                   1.58                   5.98                   5.46
Onlending                                                          10,544                 12,681                 13,310
Expenses with Onlending                                              (175)                  (287)                  (291)
Annualized Rate - %                                                   6.80                   9.37                   9.04
Financial and Development Funds + Subordinated Debt                  8,123                  9,571                  9,900
Expenses with Financial and Development Funds                        (130)                  (129)                  (155)
Annualized Rate - %                                                   6.57                   5.50                   6.41
Foreign Securities                                                     832                  1,432                  1,304
Expenses with Foreign Securities                                       (21)                 (114)                    (58)
Annualized Rate - %                                                  10.65                  35.67                  19.18
Other Liabilities                                                  62,038                 70,256                 70,517
  Demand Deposits                                                  28,764                 31,694                 31,472
  Other Liabilities                                                33,273                 38,561                 39,046
Shareholders’ Equity + Income Accounts                             14,561                 17,052                 17,845
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                        246,437                247,720                264,566




                                                       Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 74
Table 69. Reconciliation with the Gross Financial Margin

                                                                                                R$ million
                                                                  1Q05        4Q05                 1Q06
Financial Intermediation Income                                    8,191      8,856                  8,892
Income from Remunerated Assets                                     7,918      8,627                  8,821
Income from Financial Derivatives                                    (31)     (229)                  (139)
FX Gain (Loss) on Foreign Investments                                (40)       166                  (266)
Other FX Operations                                                  (56)     (515)                    447
Other Operating Income                                               147        550                  (269)
Recovery of Write-offs                                               253        258                    297
Financial Intermediation Expenses                                (4,100)    (4,458)                (4,486)
Expenses with Remunerated Liabilities                            (4,073)    (4,435)                (4,462)
Expenses with FGC on Demand Deposits                                 (15)       (15)                   (16)
Expenses with Debt Assumption Contracts                              (12)        (8)                    (8)


Table 70. Main Components of the Spread

                                                                            Average Balances in R$ million
                                                                   1Q05      4Q05                   1Q06
Gross Financial Margin                                             4,090      4,398                 4,406
Assets – Permanent Assets                                        241,493    241,188               259,070
Remunerated Assets                                               199,964    197,940               213,563




75 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.1.5 Management Analysis of the Spread

We carried out a management assessment of the financial intermediation spread, by reconciling the
management information on the loan portfolio, deposits and money market borrowing with the
accounting information.

The spread was assessed by comparing the gross financial margin of each funding product and loan
with their respective volume. The gross financial margin is determined by taking into consideration the
opportunity cost of each product. In the case of loan product, for example, the gross financial margin is
made up of the financial revenues from the product after deduction of the opportunity costs. In the case
of an investment or funding product, the margin is determined by comparing the financial expenses with
the respective opportunity revenue.

The opportunity costs and revenues of each product are determined in accordance with their
characteristics. As a general rule, the average Selic rate (TMS) is adopted as a reference point for the
opportunity cost for the greater part of the products of financial intermediation. There are, however,
exceptions such as, for example, funding from savings, where the opportunity revenue is hybrid, that is,
it is remunerated by the TMS on the free portion, by the rural CDI in the case of the portion invested in
rural credit, and by TR+6% a year, in the case of the portion intended for the compulsory deposit.
Accordingly, the gross spread of each product is determined by assessing its actual contribution to the
make-up of the result.

The table below shows the composition of the average quarterly spread, while it should be observed that
the spread on transactions with individuals – where the risk vs. return ratio is better – has been showing
a systematic reduction, because of the downturn in the interest rates. A rise in the profitability of
funding costs is to be seen, as the growth in interest rates increases the financial margin of fundings.

Table 71. Nominal Spread by Transaction
                                                                                                               %
                                                     1Q05                       4Q05                        1Q06
Nominal Spread                                       1.69                        1.82                        1.70
 Loans                                               3.00                        2.79                        2.68
  Individuals                                        8.23                        7.23                        7.12
  Businesses                                         2.08                        2.15                        2.04
  Agribusiness                                       1.67                        1.47                        1.44
  Other Transactions                                 0.38                       (0.19)                      (0.22)
 Funding                                             1.04                        0.99                        0.94
 Other                                               0.95                        2.07                        1.67


The increase in the difference between TR and TMS has kept the weighted spread on funding more
stable. This movement is natural at times of increasing interest rates. The same occurs when there is a
fall in the basic interest rate of the economy, as the TR does not usually accompany this movement.




                                                    Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 76
Table 72. Compositions of the Transactions

                                                                                                                       %
                                                                   1Q05                      4Q05                   1Q06
Composition (mix)
 Loans                                                             34.43                     37.47                  36.76
  Individuals                                                      18.32                     19.14                  18.61
  Businesses                                                       40.30                     39.40                  39.29
  Agribusiness                                                     38.15                     38.63                  39.41
  Other Transactions                                                3.23                      2.83                   2.69
 Funding                                                           41.90                     47.96                  46.98
 Other                                                             23.66                     14.57                  16.26


Table 73. Weighted Spread per Transaction
                                                                                                                       %
                                                                   1Q05                      4Q05                   1Q06
Weighted Spread                                                    1.69                      1.82                    1.70
 Loans                                                             1.03                      1.05                    0.99
  Individuals                                                      0.52                      0.52                    0.49
  Businesses                                                       0.29                      0.32                    0.29
  Agribusiness                                                     0.22                      0.21                    0.21
  Other Transactions                                               0.00                      0.00                    0.00
 Funding                                                           0.44                       0.48                   0.44
 Other                                                             0.23                      0.30                    0.27


A slight downward tendency for the weighted spread on loan transactions can be seen in the quarter.
That movement was led by loans to individuals.

Table 74. Analysis of Volume and Management Spread Quarterly 1Q05 and 1Q06 (12 months)

                                                            Gain/(Loss)
                                                                                                            Total
                                        Volume                   Spread            Volume and Spread
Investments                                        (64)                     295                       (6)             226
Funding                                            214                     (103)                     (21)              90
Total                                              150                      192                      (27)             316




77 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
     Analysis of Volume and Spread of Uses and Funding Quarterly 1Q05 and 1Q06

                           Uses                                                          Funding
  Spread- %                                              Spread- %


1Q06 – 2.6843        295           (6)             1Q05 – 1.0425                 (103)              (21)
1Q05 – 2.9961                                      1Q06 – 0.9407

                                  (64)
                     2,491                                                      1,145                214


                                         Volume - R$ million                                               Volume - R$ million
                                         4Q05 – 95,245                                                     4Q05 – 121,704
                                  4Q04 – 83,157                                                    4Q04 – 101,188
                                         Gain/(Loss) in Volume
                                         Gain/(Loss) in Spread
                                         Gain/(Loss) in Volume and Spread

   Figure 35. Analysis of Volume and Spread of Uses and Funding Quarterly – 1Q05 and 1Q06




                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 78
7.2 Net Financial Margin
Table 75. Net Financial Margin
                                                                                                                                    R$ million
                                                                    Quarterly Flow                                        Chg. %
                                                            1Q05                  4Q05                1Q06       on 1Q05             on 4Q05
Gross Financial Margin                                      4,090                  4,398               4,406              7.7                 0.2
  Allowance for Loan Losses                               (1,061)                (1,498)             (1,345)             26.7              (10.2)
Net Financial Margin                                        3,029                  2,900               3,061              1.1                 5.6


The net financial margin is obtained by deducting expenses with allowances for loan losses from the
gross financial margin. In 1Q06, the expenses with the allowances for loan losses grew 26.7% in relation
to 1Q05, mainly due to the worsening of risk in agribusiness loan portfolio. In relation to the 4Q05, there
was a reduction of 10.2 in allowances for loan losses.

The overall risk of the portfolio, measured by the ratio between the stock of provisions required
(Resolution 2682) against the total portfolio, went up from 5.2% in 1Q05 to 6.6% in 1Q05. The expenses
with allowances for loan losses were R$ 1,345 million in 1Q06, against R$1,061 million in 1Q05 and
R$1,498 million in 4Q05.

Table 76. Expenses with Allowance for Loan Losses over Portfolio
                                                                                                                                   R$ million
                                                  2Q04         3Q04          4Q04            1Q05         2Q05     3Q05           4Q05      1Q06
(A) Allowance for Loan Losses - Quarterly         (903)       (856)         (868)          (1,061)     (1,002)     (966)         (1,498)      (1,345)
(B) Allowance for Loan Losses - 12 Months       (3,378)     (3,487)       (3,528)          (3,688)     (3,786)   (3,896)         (4,527)      (4,810)
(C) Loan Potfolio                               83,131      84,148        88,554           93,312      96,129    94,685         101,789      105,502
(D) Average Portfolio – 3 Months                82,283      82,942        86,839           91,731      95,434    95,097          98,833      103,636
(E) Average Portfolio – 12 Months               77,035      80,149        82,722           85,949      89,237    92,275          95,459       97,872
Expenses over Portfolio (A/D) - %                   1.1         1.0           1.0              1.2         1.0       1.0             1.5          1.3
Expenses over Portfolio (B/E) - %                   4.4         4.4           4.3              4.3         4.2       4.2             4.7          4.9


                  Expenses with Allowance for Loan Losses over Portfolio

                      4.4           4.4         4.3        4.3           4.2               4.2         4.7       4.9


                       1.1          1.0         1.0        1.2           1.0               1.0         1.5        1.3
                                                                                                       1,498




                                                                                                                 1,345
                                                           1,061



                                                                         1,002




                                                                                           966
                       903




                                                868
                                    856




                     2Q04          3Q04       4Q04        1Q05        2Q05             3Q05          4Q05        1Q06

                             (A) Allowance for Loan Losses - Quarterly
                             Expenses over Portfolio (A/D) - %
                             Expenses over Portfolio (B/E) - %

Figure 36. Expenses with Allowance for Loan Losses over Portfolio

The graph below details the allowance for loan losses, segregating the minimum provisions required by
CMN Resolution 2682 from the total booked.




79 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                    Breakdown of Allowances
                                                                                         R$ million

                                                                                                                   7,731
                                                                                                         6,692
                                                                 5,655       5,893         5,955                        749
                                       5,374        5,365                                                 790
                            5,102
                                                                  812            956        782
                                       999           819
                            973

                                                                                                         5,901    6,982
                                                                 4,843       4,937         5,173
                             4,128     4,375        4,546



                       Jun/04         Sep/04        Dec/04       Mar/05      Jun/05        Sep/05        Dec/05         Mar/06


                                    Provision Required            Additional Provision                Total Provision


Figure 37. Breakdown of Allowances

The deterioration in credit risk in the agribusiness portfolio helped to reduce the percentage of loans
classified as risk AA-C, which fell from 91.9% in March 2005 to 89.5% in March 2006, a level that is in
line with the 89.6% observed in the loans of the Brazilian banking industry in 1Q06. In relation to
December, operations recorded in AA-C did not present a good performance, due to punctual problems
in Brazilian agribusiness. It is worth highlighting the increase in the concentration of the loans classified
in G-H, which require a larger volume of provisions. In March 2006, these transactions accounted for
4.9% of the total amount of the portfolio, against 3.7% in March 2005.

Table 77. Loan Portfolio by Level of Risk
                                                                                                                                     R$ million
                        Mar/05                                          Dec/05                                      Mar/06
                                                                                                                                            BI*
          Balance Allowance            Comp. %             Balance Allowance           Comp. %          Balance Allowance         Comp. %
AA          17,771               -           19.1            18,400            -          18.1           17,815               -      16.9    24.5
A           25,660             128           27.5            29,174          146          28.7           28,324             142      26.8    37.9
B           30,446             304           32.6            31,364          314          30.8           32,139             321      30.5    17.0
C           11,844             355           12.7            13,302          399          13.1           16,127             484      15.3    10.2
D            2,788             279            3.0             3,413          341           3.4            3,986             399       3.8     3.4
E              834             250            0.9             1,175          352           1.2            1,296             389       1.2     1.4
F              532             266            0.6               727          364           0.7              681             341       0.6     1.1
G              425             297            0.5               804          563           0.8              838             587       0.8     0.9
H            2,963           2,963            3.2             3,422        3,422           3.4            4,320           4,320       4.1     3.6
Total       93,263           4,843        100.0            101,781         5,901         100.0          105,527           6,982     100.0   100.0
AA-C        85,721             788           91.9            92,240          859          90.6           94,381             947      89.5    89.6
D-H          7,541           4,055            8.1             9,542        5,043           9.4           11,121           6,035      10.5    10.4
* Information of dec/2005


The ratio of Portfolio Net of Allowances (CLP) over the Total Portfolio (CT) expresses the overall
evaluation of the weighted portfolio, in accordance with CMN Resolution 2,682. The following chart
shows that Banco do Brasil has maintained better quality in its loan portfolio than the Brazilian banking
industry.




                                                                          Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 80
                                     CLP/CT BB vs. Banking Industry - %


                     95.0          94.8          94.9                  94.9 94.5 94.5
                            94.2          94.3          94.4 94.8 94.5                94.3 94.2 94.4
                                                                                                         93.5 93.9




                         Jun/04     Sep/04       Dec/04       Mar/05      Jun/05     Sep/05    Dec/05     Mar/06

                                                                  BB      Banking Industry


Figure 38. CLP/CT BB vs Banking Industry - %

In March 2006, past due loans and the allowance for loan losses accounted for 6.1% and 7.3% of the
portfolio, respectively. Taking into consideration only the loans past due over 60 days, the allowance for
loan losses would cover 170.4% of these transactions, compared to 193.1% in March 2005 and 165.7%
in December 2005.

Table 78. Delinquency Ratio
                                                                                                                              R$ million
                                                                  2Q04      3Q04      4Q04     1Q05      2Q05      3Q05    4Q05  1Q06
Loan Portfolio                                                   83,131    84,148    88,554   93,312    96,129   94,685 101,789 105,527
Past Due Loans                                                    4,256     4,703     4,296    4,792     4,885     5,924   5,724   6,434
Past Due Loans/Loan Portfolio - %                                   5.1        5.6      4.9      5.1       5.1       6.3     5.6     6.1


Past Due Loans + 15 days                                          4,128     4,585     4,178    4,731     4,451     5,580   5,666   6,383
Past Due Loans + 15 days/Loan Portfolio - %                         5.0        5.4      4.7      5.1       4.6       5.9     5.6     6.0


Past Due Loans + 60 days                                          2,639     2,726     2,885    2,929     2,964     3,695   4,039   4,537
Past Due Loans + 60 days/Loan Portfolio - %                         3.2        3.2      3.3      3.1       3.1       3.9     4.0     4.3


Write-off                                                           660       641      672      771       730        890    762     788
Recovery of Write-offs                                            (315)      (278)    (206)    (253)     (260)     (245)   (258)   (297)
Net Loss                                                            345       364      467      517       470        645    504     492
Net Loss/Loan Portfolio - % annualized                              1.7        1.7      2.1      2.2       2.0       2.8     2.0     1.9


Allowance                                                         5,102     5,374     5,365    5,655     5,893     5,955   6,692   7,731
Allowance/Loan Portfolio - %                                        6.1        6.4      6.1      6.1       6.1       6.3     6.6     7.3
Allowance/Past Due Loans + 15 days - %                            123.6     117.2     128.4    119.5     132.4     106.7   118.1   121.1
Allowance/Past Due Loans + 60 days - %                            193.3     197.1     186.0    193.1     198.8     161.2   165.7   170.4




81 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
The following graph shows an increase in the non-performing loans when compared to March 2005,
due, mainly, to agribusiness operations. It is worth pointing out that CMN Resolution 3,314/05, of
9.08.2005, which regulated the rescheduling of financing of agricultural costs, brought about
renegotiations of part of these transactions.

                                      Delinquency Ratio - %
                                                                     6.3                 6.1
                              5.6                                              5.6
                     5.1               4.9       5.1        5.1
                                                                     5.9                 6.0
                              5.4                                              5.6
                     5.0                         5.1
                                       4.7                  4.6                          4.3
                                                                     3.9       4.0
                     3.2      3.2      3.3       3.1        3.1

                    Jun/04   Sep/04   Dec/04   Mar/05     Jun/05   Sep/05    Dec/05    Mar/06


                                       Allowance/Loan Portfolio
                                       Allowance/Past Due Loans + 15 days
                                       Allowance/Past Due Loans + 60 days

Figure 39. Delinquency Ratio -%




                                                        Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 82
7.2.1 Retail Loan Portfolio
The retail loan portfolio, which grew 12.4% in relation to March2005 and 4.6% in relation to December
2005, has shown an improvement in risk in relation to the same period of the previous year and in
relation to December 2005. Part of the improvement in the risk of the portfolio in relation to December
can be attributed to the growth of Payroll Loans, which have the lowest level of risk, as well as the
starting up of vehicle financing operations.
Besides that, since 2005, Banco do Brasil took a series of coordinated measures to reduce the
delinquency in its loan operations. The process for collecting and recovering loans was improved, to
optimize the return of borrowed capital and maintain the customer base. Amongst the measures taken
are: automatic renegotiation of the credit through the automatic teller machines and internet; the
training of employees for credit recovert; and the changes in the focus on collecting, from “product” to
“customer”, with strategies directed to each customer profile and its historical relationship with BB.
Table 79. Retail Loan Portfolio by Level Risk
                                                                                                                               R$ million
                               Mar/05                                    Dec/05                                      Mar/06
                 Balance      Allowance Comp. %              Balance     Allowance Comp. %              Balance    Allowance Comp. %
AA                    2,573               -            8.9       3,057             -      9.9              2,713               -        8.4
A                     4,126             21         14.3          5,257            26     17.0              5,087              25       15.7
B                    12,635            126         43.8         13,108        131        42.3             14,213            142        43.8
C                     5,745            172         19.9          5,970        179        19.3              6,768            203        20.9
D                       977             98             3.4        944             94      3.0              1,085            109         3.3
E                       465            140             1.6        521         156         1.7               481             144         1.5
F                       316            158             1.1        316         158         1.0               285             143         0.9
G                       279            195             1.0        272         190         0.9               266             186         0.8
H                     1,719         1,719              6.0       1,544       1,544        5.0              1,515           1,515        4.7
Total                28,835         2,629        100.0          30,987       2,479      100.0             32,415           2,467      100.0
AA-C                 25,079            319         87.0         27,392        336        88.4             28,782            371        88.8
D-H                   3,756         2,310          13.0          3,595       2,142       11.6              3,633           2,097       11.2

The following table details the movement in allowances for loan losses in the retail portfolio, slightly
lower than in the previous period.
Table 80. Changes in provision levels for doubtful or non-performing loans - Retail
                                                                                                                               R$ million
                                                              1Q05**          2Q05              3Q05               4Q05            1Q06
Retail Loan Portfolio                                         28,835         30,046         30,699                30,987           32,415
Initial Allowance                                              2,319          2,629             2,634              2,558            2,479
1 - Risk Migration                                               520              397            430                181              165
a) Risk Deterioration                                            878              812            804                861              801
b) Risk Improvement                                             (358)          (415)            (374)              (680)            (636)
2 – New Transactions                                             274              304            213                217              220
3 – Write-offs                                                  (593)          (569)            (618)              (555)            (596)
Total (1 + 2 + 3):                                               201              132             25               (157)            (211)
Other Impacts*                                                   109           (127)            (101)                78              199
Final Allowance                                                2,629          2,634             2,558              2,479            2,467
Allowance Required by CMN Resolution 2682                      2,629          2,634             2,558              2,479            2,467
*Amortization, settlement, instllments, and charges.




83 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.2.2 Commercial Loan Portfolio

The 13.9% growth of the commercial portfolio was accompanied by a relative improvement in risk
(Mar/05 – Mar/06). At the end of March 2006, the levels of risk AA to C now comprised 95.1% of the
total of the portfolio, compared to 94.8% at the end of March 2005. Credits rated D to H decreased from
5.2% to 4.9% in the same period. In relation to September 2005, a slight improvement in risk is
observed.

Table 81. Commercial Loan Portfolio by Level Risk
                                                                                                                                   R$ million
                               Mar/05                                          Dec/05                                    Mar/06
                 Balance      Allowance Comp. %               Balance         Allowance Comp. %             Balance    Allowance Comp. %
AA                    2,741              -         20.9            3,876                -     27.9             3,803               -        25.5
A                     4,874            24          37.2            4,814             24       34.7             5,238              26        35.1
B                     4,137            41          31.6            3,943             39       28.4             4,300              43        28.8
C                       661            20           5.1                 564          17        4.1              836               25            5.6
D                       484            48           3.7                 409          41        2.9              459               46            3.1
E                        67            20           0.5                  90          27        0.6              108               32            0.7
F                        55            28           0.4                  68          34        0.5               48               24            0.3
G                         8              6          0.1                  27          19        0.2               17               12            0.1
H                        62            62           0.5                  89          89        0.6              105           105               0.7
Total                13,090           250        100.0            13,878           290       100.0            14,914          313          100.0
AA-C                 12,413            86          94.8           13,196             80       95.1            14,177              94        95.1
D-H                     677           164           5.2                 682        209         4.9              737           219               4.9

The table of changes in the allowance for loan losses shows higher provisions, when compared to the
previous period.

Table 82. Changes in provision levels for doubtful or non-performing loans - Commercial
                                                                                                                                   R$ million
                                                              1Q05**              2Q05            3Q05                4Q05            1Q06
Commercial Loan Portfolio                                      13,090            13,189         12,714            13,878               14,914
Initial Allowance                                                 505               250              253               229               290
1 - Risk Migration                                                (10)              (28)              41                42                28
a) Risk Deterioration                                              56                   73            78                97                82
b) Risk Improvement                                               (66)             (101)             (37)              (55)              (54)
2 – New Transactions                                               54                   60            44                49                77
3 – Write-offs                                                    (62)              (14)             (21)              (24)              (18)
Total (1 + 2 + 3):                                                (17)                  19            65                67                87
Other Impacts*                                                  (239)               (16)             (89)               (6)              (63)
Final Allowance                                                   250               253              229               290               313
Allowance Required by CMN Resolution 2682                         250               253              229               290               313
*Amortization, settlement, instllments, and charges.
**In 1Q05, some operations were transfered from Commercial to Retail.




                                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 84
7.2.3 Agribusiness Loan Portfolio

The agribusiness portfolio grew 20.4% (Mar/05-Mar/06) and 3.8% (Dec/05-Mar/06). In March 2006 the
loans ranked at risk levels AA-C accounted for 88.8% of the portfolio, against 95.6% in March 2005 and
90.7% in December 2005.

The ratio between the allowances required (Resolution 2682) and the stock of loans grew from 2.6% in
1Q05 to 5.4% in 4Q05 and 6.8% in 1Q06. The rise in the risk of the portfolio in the period still reflects the
effects of the drought in the states in the South region and Mato Grosso do Sul and some municipalities
in the states of São Paulo, Minas Gerais, Goiás and Mato Grosso, as well as the farmers’ marketing
problems because of the behavior of the exchange rates and the commodity prices in the international
market.

Delinquency in the agribusiness portfolio increased between July and September 2005, when CMN
Resolution 3,314/05, of 9.08.2005 was published, authorizing the rescheduling of the financings of
agricultural costs of the 2004/2005 crop. The rule covers the whole of Brazil and benefits the producers
of cotton, rice, corn, soybeans, sorghum and wheat, who will be able to reschedule their debts to March
and April 2006. The period for the farmers to sign up ended on 10.15.2005. The loans, even after being
rescheduled, continued to be counted in the requirement for rural credit. Likewise, the transactions that
were contracted in this way continue to receive equalization from the National Treasury.

Considering that there was a deterioration in risk of the outstanding transactions, from the moment they
went into arrears until the formalization of the reschedulings, the new transactions (2005/2006 crop),
suffering the effect of being dragged down, will be contracted at higher risk levels, in accordance with
the rules of Resolution 2,682/99. Accordingly, an increase in expenses with allowances for loan losses
is observed in March 2006 and it is expected that the provision level for this portfolio will remain high
until the total renegotiated loans are regularized.

Table 83. Agribusiness Loan Portfolio by Level Risk
                                                                                                            R$ million
                          Mar/05                                  Dec/05                           Mar/06
             Balance     Allowance Comp. %          Balance      Allowance Comp. %     Balance     Allowance Comp. %
AA               5,267              -     17.1          5,114              -    14.3       5,203             -       14.0
A               10,251             51     33.3         10,306          52       28.9       9,694            48       26.2
B               10,264          103       33.4         11,516         115       32.2      11,163        112          30.1
C                3,642          109       11.8          5,462         164       15.3       6,826        205          18.4
D                  737             74      2.4          1,379         138        3.9       1,758        176              4.7
E                  111             33      0.4            284          85        0.8        371         111              1.0
F                   93             46      0.3            248         124        0.7        239         119              0.6
G                  101             71      0.3            442         309        1.2        226         158              0.6
H                  308          308        1.0            958         958        2.7       1,573       1,573             4.2
Total           30,774          795      100.0         35,709        1,945     100.0      37,052       2,502       100.0
AA-C            29,425          263       95.6         32,398         331       90.7      32,886        365          88.8
D-H              1,350          532        4.4          3,311        1,614       9.3       4,166       2,137         11.2


An analysis of the following table shows that the increase in the risk of the portfolio, combined with the
renegotiation of some lines of credit, led to a greater reinforcement of provisions, both in the quarter and
when compared with the same period of the previous year




85 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 84. Changes in provision levels for doubtful or non-performing loans - Agribusiness
                                                                                                                   R$ million
                                                        1Q05             2Q05            3Q05           4Q05          1Q06
Agribusiness Loan Portfolio                            30,774          32,171          31,247          35,709          37,052
Initial Allowance                                        691              795             918           1,310           1,945
1 - Risk Migration                                        74               54             267             521             359
a) Risk Deterioration                                    278              334             600             879             561
b) Risk Improvement                                     (204)            (281)           (334)           (358)           (202)
2 – New Transactions                                      84              161             466             644             306
3 – Write-offs                                           (53)             (71)            (71)           (113)            (98)
Total (1 + 2 + 3):                                       104              144             662           1,052             567
Other Impacts*                                             0              (21)           (270)           (417)             (9)
Final Allowance                                          795              918           1,310           1,945           2,502
Allowance Required by CMN Resolution 2682                795              918           1,310           1,945           2,502
*Amortization, settlement, installments, and charges




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 86
7.2.4 Foreign Trade Loan Portfolio

The foreign trade finance portfolio recorded an increase of 5.6% (Mar/05 – Mar/06). Loans rated at
levels of risk AA to C came to 98.1 and those rated as D-H to 1.9% in the period.

Table 85. Foreign Trade Loan Portfolio by Risk Level
                                                                                                                                      R$ million
                                 Mar/05                                       Dec/05                                         Mar/06
                  Balance       Allowance      Comp.%          Balance       Allowance Comp. %                  Balance     Allwoance       Comp. %
AA                    1,621                -            17.7      1,312                 -        13.6              1,884                -       19.4
A                     3,460              17             37.7      5,060            25            52.6              4,567              23        47.1
B                     2,464              25             26.8      2,139            21            22.2              1,847              18        19.1
C                     1,383              41             15.1        906            27             9.4              1,214              36        12.5
D                        186             19              2.0        132            13             1.4               100               10             1.0
E                         10              3              0.1             7             2          0.1                 7               2              0.1
F                         31             15              0.3             8             4          0.1                 6               3              0.1
G                           1             0              0.0         10                7          0.1                 5               3              0.0
H                         22             22              0.2         48            48             0.5                64               64             0.7
Total                 9,179             143        100.0          9,623           149           100.0              9,695           160         100.0
AA-C                  8,928              83             97.3      9,417            74            97.9              9,512              78        98.1
D-H                      250             59              2.7        206            75             2.1               183               82             1.9


The table below shows the effects of the reduction of the overall volume of the Foreign Trade Loan
Portfolio on the allowances. The strong appreciation of the local currency and lower volume of new
transactions contracted brought a growth in the provisions of the portfolio in the quarter.

Table 86. Changes in the Allowance – Foreign Trade
                                                                                                                                      R$ million
                                                                 1Q05             2Q05                  3Q05               4Q05           1Q06
Foreign Trade Loan Portfolio                                    9,179             9,489                 8,713              9,623            9,695
Initial Allowance                                                 125                  143               130                123               149
1 - Risk Migration                                                (40)             (79)                  (28)                17                11
a) Risk Deterioration                                              21                  20                 26                 44                31
b) Risk Improvement                                               (61)             (99)                  (54)               (27)              (20)
2 – New Transactions                                               75                   83                55                 81                56
3 – Write-offs                                                     (7)                 (4)                (4)               (14)               (6)
Total (1 + 2 + 3):                                                 28                       1             23                 84                61
Other Impacts*                                                    (10)             (14)                  (30)               (58)              (50)
Final Allowance                                                   143                  130               123                149               160
Allowance Required by CMN Resolution 2682                         143                  130               123                149               160
*Amortization, settlement , installments, and charges




87 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.2.5 Foreign Loan Portfolio

The table below shows the risk profile of BB’s foreign loan portfolio. In March 2005, loans ranked at
levels of risk between AA and C had a 97.7% share of the total, while in March 2006, these levels of risk
showed an even greater concentration, amounting to 98.2% of this portfolio.

Table 87. Loan Protfolio Abroad by Level of Risk
                                                                                                                R$ million
                        Mar/05                                 Dec/05                                  Mar/06
           Balance     Allowance      Comp.%    Balance       Allowance Comp. %          Balance       Allwoance Comp. %
AA             5,522              -      58.4      4,937                -     53.8            4,700              -       53.0
A              2,772             14      29.3      3,576            18        39.0            3,610             18       40.7
B               718              7        7.6       410                 4      4.5             304              3            3.4
C               230              7        2.4        83                 2      0.9               98             3            1.1
D                38              4        0.4        17                 2      0.2               16             2            0.2
E                 2              1        0.0         2                 1      0.0                 2            1            0.0
F                 0              0        0.0         0                 0      0.0                 -             -           0.0
G                 5              3        0.1             -             -      0.0                 0            0            0.0
H               171          171          1.8       152            152         1.7             142          142              1.6
Total          9,457         207        100.0      9,177           179       100.0            8,872         168        100.0
AA-C           9,241             28      97.7      9,006            24        98.1            8,712             24       98.2
D-H             216          179          2.3       171            154         1.9             160          144              1.8




                                                          Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 88
7.3 Contribution Margin
Table 88. Contribution Margin
                                                                                                                      R$ million
                                                              Quarterly Flow                                 Chg. %
                                                      1Q05               4Q05                1Q06        on 1Q05       on 4Q05
Net Financial Margin                                  3,029              2,900               3,061           1.1             5.6
  Service Revenues                                    1,767              2,001               2,103          19.0             5.1
  Taxes on Revenues                                   (351)              (393)               (409)          16.7             4.2
Contribution Margin                                   4,446              4,509               4,755           7.0             5.5


Starting from the net financial margin, which expresses the Bank’s financial performance, adding the
service revenues and deducting the taxes on revenues (Pasep, Cofins and ISSQN), we obtain the
Contribution Margin.

The contribution margin totaled R$ 4,755 in 1Q06, growth of 7.0% in relation to 1Q05 and 5.5% to 4Q05.
The graph below shows the percentage growth of service revenues of one quarter in relation to those
recorded in the same period of the previous year.

                                Growth in Service Revenues - Xt/Xt-4 %

                               22.3    21.5
                                                                                                19.0
                                                                  17.4                17.6
                                                         13.8               13.7
                                               12.7




                              2Q04     3Q04    4Q04     1Q05      2Q05      3Q05      4Q05     1Q06

Figure 40. Growth in Service Revenues

Service Revenues totaled R$ 2,103 million. The table below shows a breakdown of service revenues. A
growth of 19.0% is shown in relation to 1T05 and 5.1% in relation to 4Q05. The largest revenues in this
group are the customer relationship fees and those from asset management, which account for 49.2% of
the total of service revenues in the year. Furthermore, these revenues, together with those from credit
cards, were those that showed higher growth in the period.


Table 89. Sevices Revenues
                                                                                                                     R$ million
                                                                         Quaterly Flow                         Chg. %
                                                                  1Q05             4Q05          1Q06      on 1Q05    on 4Q05
Services Revenues                                                1,767             2,001         2,103        19.0           5.1
 Customer Relantioship Fees                                        589               648           679        15.3           4.8
 Investment Fund Management Fees                                   283               310           356        25.8          14.7
 Credit Cards                                                      163               199           201        23.4           0.8
 Collections                                                       168               190           189        12.7         (0.3)
 Loan Fees                                                         149               162           135        (9.8)       (17.0)
 Fund Transfers                                                    118               131           218        85.7          66.3
 Others                                                            297               360           324          9.4        (9.8)




89 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Breakdown and Performance of Services Revenues - %

                       31.0    30.0     31.6        33.4        33.1          32.6        32.4         32.3
   Costumer
   Relationship Fees

                       2Q04    3Q04    4Q04         1Q05        2Q05         3Q05         4Q05         1Q06

   Investment Fund     14.7    15.7                 16.0         15.8         16.5         15.5         16.9
                                        14.6
   In Management
   Fees
                       2Q04    3Q04     4Q04        1Q05        2Q05         3Q05         4Q05         1Q06

  Credit Cards          8.6     8.0      9.2          9.2         8.6          9.5         10.0          9.6



                       2Q04    3Q04     4Q04        1Q05         2Q05         3Q05         4Q05         1Q06


                         9.6             10.2         9.5          9.5          9.5         9.5
                                9.2                                                                      9.0
  Collections


                        2Q04    3Q04    4Q04         1Q05         2Q05        3Q05         4Q05         1Q06


                        9.8     9.4      9.0         8.5          9.1          8.4          8.1
   Loan Fees                                                                                            6.4



                       2Q04    3Q04     4Q04        1Q05         2Q05         3Q05         4Q05         1Q06



                                                                                                        10.4
   Funds Transfer       6.3     6.5      6.8          6.7         6.4          7.0          6.6



                       2Q04    3Q04     4Q04        1Q05         2Q05         3Q05         4Q05         1Q06



                       19.9    21.2     18.6        16.8         17.6         16.5         18.0         15.4
   Others


                       2Q04    3Q04     4Q04        1Q05         2Q05        3Q05          4Q05        1Q06


Figure 41. Breakdown and Performance os Services Revenues




                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 90
7.3.1 Revenues with Customer Relationship Fees

In 1Q06, revenues from customer relationship fees totaled R$ 679 million, an expansion of 15.3% in
relation to 1Q05 and 4.8% in relation to 4Q05. The share of revenues from customer relationship fees in
the Service Revenues reached 32.3% in the quarter . The graph below shows that the revenues from
customer relationship fees have shown greater growth than the customer base, revealing that the Bank
has managed to tighten its business links with its customers.

                    Revenues from Relantioship Fees and Costumer Base
                                                        Base: 2Q04



                                                                                                    33.2%

                                                                                                    16.0%




                      2Q04      3Q04       4Q04       1Q05       2Q05        3Q05       4Q05     1Q06


                                  Revenues from Relantionship Fees               Costumer Base


Figure 42. Revenues from Relationship Fees and Customer Base

BB’s had 23.3 million current account holders in March 2006, a number that is 9.6% higher than in the
same period of the previous year.


                                                   Costumer Base
                                                                          in thousand


                                                                             20,924     21,475   21,812
                                                     19,858      20,511
                    18,779     19,234     19,720




                    1,274      1,373      1,369       1,361      1,398       1,405      1,432    1,447


                    Jun/04     Sep/04     Dec/04     Mar/05      Jun/05      Sep/05     Dec/05   Mar/06

                                               Individuals         Companies

Figure 43. Costumer Base




91 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.3.2 Asset Management

In March 2006, the Bank reached R$ 356 million in Asset Management fees, a 25.8% growth in relation
to 1Q05 and 14.7% in relation to 4Q05. The share of these fees in the total of Service Revenues
reached 16.9% in the first quarter.

BB Administração de Ativos – Distribuidora de Títulos e Valores Mobiliários (BB DTVM), a wholly-owned
subsidiary of Banco do Brasil, showed growth of 22.4% in the volume of assets under management in
the last 12 months, which totaled R$ 169.2 billion. This volume confirms BB’s leadership as the largest
asset manager in the country, with a 20.1% market share, according to Anbid’s ranking.

                                                 Asset Management
                                                                                               R$ billion

                                                          20.8       21.3           20.9
                                      20.0                                                      20.2         20.1
                           19.9                19.7


                                                                                                            169.2
                                                                                    150.4      153.5
                                                          138.2      144.8
                          116.9      122.5    124.0




                          Jun/04     Sep/04   Dec/04    Mar/05      Jun/05          Sep/05     Dec/05       Mar/06

                                       Asset Management                Market Share - %

Figure 44. Asset Management

BB DTVM has funds for different kinds of customers. According to the table below, investment funds
and managed portfolios aimed at institutional investors have the largest share in the total registered in
March 2006, with 38.1%, followed by individuals and government, with 30.0% and 16.8% respectively.
We highlight the growth of Investment Funds and Managed Portfolios addressed to Government, from
R$ 19,072 million to R$ 28,500 million (Mar05 – Mar06), a 49.4% increase in the period.

Table 90. Investment Funds and Managed Portfolios by Customer
                                                                                                                              R$ million
                                                                                                                         Chg. %
                                   Mar/05     Part. %      Dec/05       Part. %            Mar/06       Part.%      on Mar/05 on Dec/05
Institutional Investors             57,447      41.6       62,952            41.0          64,366           38.1         12.0        2.2
Individuals                         38,607      27.9       47,916            31.2          50,672           30.0         31.3        5.8
Government                          19,072      13.8       20,905            13.6          28,500           16.8         49.4       36.3
Businesses                          13,665       9.9       13,638             8.9          19,328           11.4         41.4       41.7
Foreign Investors                    8,545       6.2        8,056             5.2           6,192            3.7       (27.5)     (23.1)
Others                                 861       0.6           41             0.0              92            0.1       (89.3)     123.9
Total                              138,197     100.0      153,508        100.0         169,150           100.0          22.4       10.2




                                                                  Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 92
                               Investment Funds and Managed Portfolios
                                                                                                         R$ billion
                                                                                                         169.2
                                                                                   150.4      153.5
                                                                    144.8
                                                        138.2
                                  122.5     124.0
                        116.9                                                                            113.1
                                                                                              106.3
                                                                     98.4          101.2
                                            93.0         96.3
                                   90.2
                        86.8                                                                             112.4
                                                                                    98.8      104.2
                                                         92.7        92.9
                        80.9       83.8         86.2


                                                                                               42.3       48.1
                                                         35.0        37.4           40.4
                        30.2       31.8         32.3

                       Jun/04     Sep/04    Dec/04      Mar/05      Jun/05        Sep/05     Dec/05      Mar/06

                                            BB           Bradesco            Itaú           CEF

Figure 45. Investment Funds and Managed Portfolios

                                                  Investiment Funds
                                                                                    R$ billion
                                                                                                          160.5
                                                                                    145.1        148.4
                                                                    139.0
                                                        132.8
                                  117.4     119.1
                       111.9
                                                                                                          104.8
                                                                                    93.5          98.2
                                                                     90.8
                                                        88.9
                        78.1       80.9     84.7
                                                                                                          104.5
                                                                                    91.6          97.2
                                  77.1                   85.1        86.1                                 46.1
                        74.1                    80.5                                37.8          39.6
                                  29.7          30.0     32.7        34.9
                        28.3




                       Jun/04     Sep/04    Dec/04      Mar/05      Jun/05         Sep/05     Dec/05     Mar/06

                                                BB       Bradesco            Itaú           CEF
Figure 46. Investiment Funds

                                Managed Portfolios and Investment Clubs
                         8.8       9.3                                                                     8.6     R$ billion
                                                8.2      7.6                                      8.0      8.3
                                                                     7.6            7.7
                                                         7.4
                        6.8                                                                                  7.9
                                   6.7
                                                                                  7.2        7.0            7.8
                                                5.8                   6.9                       7.3
                                                                                    6.6
                                                                     6.1
                         5.1       5.4          5.4      5.7
                                                         5.4         5.8                          5.2
                         5.0       5.1                                              5.3
                                                4.9



                       Jun/04     Sep/04    Dec/04      Mar/05      Jun/05        Sep/05      Dec/05     Mar/06

                                           BB          Bradesco            Itaú           Unibanco
Figure 47. Managed Portfolios and Investment Clubs




93 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.3.3 Credit Cards

The revenues from credit cards in the total of service revenues was R$ 201 million in 1Q06, a growth of
23.4% in relation to 1Q05.05. The participation of these revenues in total service revenues reached
9.6% in the quarter, in relation to 9.2% in the same period of the previous year.

Banco do Brasil has expanded its credit card base by 30.6% in the last 12 months, closing the year with
9.4 million cards, as we can see in the following figure. Revenues from credit cards in 1Q06 reached
R$4,877 million, a 28.4% increase in relation to 1Q05 and a 4.7% increase in relation to 4Q05.

                                                  Credit Cards
                                                                       in million

                                                                                     9.3        9.4

                                                                          8.0
                                                               7.5
                                           6.9      7.2
                                 6.6
                        6.1




                     Jun/04     Sep/04   Dec/04    Mar/05    Jun/05     Sep/05      Dec/05     Mar/06

Figure 48. Credit Cards

                                       Credit Cards Sales by Brand
                                                                                      R$ million

                                                                                       3,838          3,967
                                                                           3,419
                                         3,126     3,147       3,233
                              2,916
                  2,697




                                                                                        818           910
                              594        646        651         653         690
                  541



                  2Q04        3Q04       4Q04      1Q05        2Q05         3Q05       4Q05           1Q06

                                                   Visa        Mastercard

Figure 49. Credit Cards Sales by Brand




                                                            Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 94
7.3.4 Collections

Revenues from collections increased 12.7% in 1Q06, in relation to the same period of the previous year,
reaching R$ 189 million at the end of the period. The total volume collected grew 8.3% in the 12-month
period. In March 2006, BB reached 410 thousand active collection agreements, against 365 thousand in
March 2005.

                                             BB Collection Volume
                                                                                     R$ million




                                                                                             84,167
                                                                                   83,862
                                                                          82,019
                                                                 80,644
                                              80,136



                                                       77,745
                                    76,526
                           71,949




                          2Q04      3Q04     4Q04      1Q05      2Q05     3Q05     4Q05     1Q06


Figure 50. BB Collection Volume




95 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.4 Commercial Income
Table 91. Commercial Income
                                                                                                               R$ million
                                                       Quarterly Flow                                 Chg. %
                                                  1Q05           4Q05                1Q06        on 1Q05        on 4Q05
Contribution Margin                                4,446            4,509             4,755           7.0             5.5
Administrative Expenses                          (2,992)          (3,268)           (3,156)           5.5           (3.4)
  Personnel Expenses                             (1,638)          (1,802)           (1,781)           8.7           (1.2)
  Other Administrative Expenses                  (1,315)          (1,428)           (1,331)           1.2           (6.8)
  Other Tax Expenses                                 (39)             (39)              (44)         14.3           14.0
Commercial Income                                  1,453            1,241             1,600          10.1           28.9


Commercial income represents the Bank’s business earnings after the deduction of the expenses
necessary for carrying on the business. As from the 2Q05 edition, the expenses with labor and civil
lawsuits, previously recorded in personnel expenses and other administrative expenses respectively,
have been separeted. These expenses have been recorded in a new group called legal risk, which
comes right after commercial income. This change aims to bring greater stability and to facilitate an
analysis of the administrative expenses, besides demonstrating the behavior of legal risk in the Bank
better.

In March 2006, the Bank recorded R$ 1,600 million in Commercial Income, against R$ 1,453 million in
March 2005, an increase of 10.1%. On the other hand, in relation to the last quarter of 2005, there was
an increase of 28.9%, mainly due to the effects derived from the decrease in administrative expenses in
the 1Q06.

                                     Changes in Commercial Income


                                                                                                   9.5%
                                                                                                      6.0%
                                                                                                      1.3%




                   2Q04       3Q04        4Q04      1Q05        2Q05         3Q05       4Q05      1Q06

                   Net Financial Margin               Contribution Margin                Commercial Income



Figure 51. Changes in Commercial Income




                                                            Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 96
7.4.1 Personnel Expenses

Personnel expenses went up from R$ 1,638 million in 1Q05 to R$ 1,781 million in 1Q06, a growth of
8.7%. In relation to 4Q05, there was a 1.2% decrease.

Table 92. Personnel Expenses
                                                                                                                                                                                                             R$ million
                                                                                                                Quarterly Flow                                                                Chg. %
                                                                                                  1Q05                           4Q05                      1Q06                     on 1Q05                      on 4Q05
Personnel Expenses                                                                            (1.638)                        (1.802)                    (1.781)                                 8,7                   (1,2)
 Salaries                                                                                       (759)                        (1.003)                      (792)                                 4,3                  (21,1)
 Benefits                                                                                       (205)                          (219)                      (218)                                 6,2                   (0,8)
 Social Charges                                                                                 (300)                          (385)                      (400)                               33,5                      4,0
 Training                                                                                         (6)                           (23)                        (8)                               38,6                   (62,9)
 Remuneration for Counselors and Directors                                                        (3)                            (3)                        (3)                                 2,7                     1,4
 Administrative Personnel Provisions                                                            (365)                          (169)                      (359)                               (1,6)                  113,3

Starting in the previous edition, the number of employees who are on leave, leave of absence and
seconded to other companies has been deducted from the workforce, in such as way as to demonstrate
the Bank’s real workforce, that is to say, the employees that are effectively contributing towards
generating results.

Banco do Brasil closed the 1Q06 with 93,865 collaborators, a workforce 0.3% lower than that recorded
in December 2005 and 2.5% higher than recorded in March 2005.


                                                                                   Changes in Workforce
                                                                                                                                               94,641




                                                                                                                                                                           94,114
                                                                                                                   93,569




                                                                                                                                                                                                        93,865
                                                                                     91,556
                            90,137




                                                        90,064
 89,665




                                                                                                                                                         84,048




                                                                                                                                                                                     83,751
                                                                                                                             82,969




                                                                                                                                                                                                                  83,405
                                                                                              80,904
                                                                 79,725
                                      79,611
          78,995
                   10,670




                                               10,526




                                                                          10,339




                                                                                                       10,652




                                                                                                                                      10,600




                                                                                                                                                                  10,593




                                                                                                                                                                                               10,363




                                                                                                                                                                                                                           10,460


      Jun/04                         Sep/04                  Dec/04                       Mar/05                            Jun/05                      Sep/05                  Dec/05                       Mar/06

                                                                                   Total        Employees                     Interns

Figure 52. Changes in Workforce

The natural renewal of the Bank’s workforce has allowed a relative stability in expenses with personnel,
even with the salary increases awarded: 12.6% in 2003, 8.5% in 2004 and 6% in 2005. It is worth to
highlight that the participation of employees up to 10 years grew from 42,5% to 47,7% of total in the last
12 months, as shown in the figure below.




97 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                                  Tenure
                    1Q05                                              4Q05                                       1Q06




   35.2%                                           32.0%                                          32.4%
                                    39.4%                                                                                       38.5%
                                                                                        44.0%




                              3.1%                        20.6%              3.4%                        19.8%           9.2%
             22.2%



                             Up to 5years          6 to 10 years        11 to 20 years     Over to 20 years

Figure 53. Tenure

Some BB productivity ratios are shown below.

                                                        Productivity Ratios
                 Assets per Employee - R$ thousand                                               Costumers per Employee


                                                                                                                                        248
                                                                     2,819                                                      243
                   2,654   2,683                          2,688
         2,614                                 2,594
 2,536                              2,499                                                                               236
                                                                                                 234             234
                                                                                                         232
                                                                                         229
                                                                                224


Jun/04   Sep/04 Dec/04     Mar/05   Jun/05     Sep/05 Dec/05       Mar/06      Jun/04    Sep/04 Dec/04 Mar/05 Jun/05 Sep/05 Dec/05 Mar/06


                                                    Employees / (Branches + PAA + PAB)


                                                                                          17,7
                                                                                17,5              17,5    17,4
                                                                        17,0
                                            16,8       16,9   16,8


                                         Jun/04     Sep/04 Dec/04 Mar/05 Jun/05          Sep/05 Dec/05 Mar/06



Figure 54. Productivity Ratios




                                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 98
7.4.2 Other Administrative Expenses

Other Administrative Expenses reached R$ 1,331 million in 1Q06, a 1.2% increase in relation to the
same period of previous year. Analyzing the first quarter, a reduction of 6.8% is seen in this item, in
relation to 4Q05. This performance is due to the Bank strong control and improvement in management
of costs that impacted the efficiency ratios positively.

Table 93. Other Administrative Expenses
                                                                                                         R$ million
                                                                 Quarterly Flow                  Chg.%
                                                        1Q05             4Q05      1Q06     on 1Q05       on 4Q05
Other Administrative Expenses                         (1,315)           (1,428)   (1,331)        1.2          (6.8)
 Telecommunications and Data Processing                 (341)             (350)     (373)        9.5            6.7
 Amortization and Depreciation                          (174)             (169)     (170)      (2.3)            0.4
 Security, Guard and Transport Services                 (187)             (197)     (185)      (0.8)          (6.0)
 Expenses with Premises and Equipment                   (175)             (182)     (191)        9.0            5.0
 Marketing and Public Relations                          (84)             (132)      (71)     (14.8)         (46.2)
 Expenses with Outsourced Services                      (138)             (144)     (129)      (6.4)         (10.3)
 Other Administrative Expenses                          (217)             (253)     (211)      (2.7)         (16.7)


The items most directly related to the running of the business (telecommunications and data processing,
surveillance, security and transport services, property and equipment) added up to R$ 749 million in
1Q06, showing growth of 6.5% in relation to the same period of last year, explained, mainly, by the
following factors:

-   2.1% expansion in the service network – opening new points of service has a direct implication for
    an increase in the greater part of the items making up administrative expenses;
-   9.6% increase in the customer base – the increase in the quantity of customers, besides the
    increase in the points of service, has an influence on the quantity of correspondence sent, data
    processing, use of the self-service channels, etc; and
-   Contractual readjustments relating to data processing.

In 1Q06, expenses with marketing and public relations decreased 14.8% in relation to 1Q05 and 46.2%
in relation to 4Q05, to total R$ 71 million. The behavior of these expenses was due mainly to the
reduction in spending on advertising, events and sponsorships, as a result of a review of contracts with
agencies and suppliers, besides the restructuring of the area.




99 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.4.3 Distribution Network

Banco do Brasil is present in 3,080 municipalities all over Brazil. At the end of March 2006, the Bank's
distribution network comprised 14,866 points of service (growing 2.1% in relation to March 2005). The
distribution network is classified as follows:

Table 94. Distribution Network

                     Jun/04               Sep/04            Dec/04            Mar/05            Jun/05       Sep/05          Dec05         Mar/06
Branches               3,618               3,662              3,722              3,786               3,814     3,857          3,894         3,923
PAA                      187                 188                188                185                 185       186            188           190
PAB                    1,520               1,495              1,455              1,400               1,358     1,318          1,300         1,273
PAE                    5,280               5,461              5,614              5,665               5,657     5,643          5,668         5,700
SAA                    3,285               3,406              3,455              3,519               3,572     3,706          3,749         3,775
PAP                       18                  18                 16                  9                   7         6              5             5
Total                13,908               14,230            14,450             14,564               14,593    14,716         14,804        14,866


The Bank’s distribution network is divided into 5 types of points of service, besides the branches:
PAA – Advanced Service Post: these are points of service intended for towns lacking banking services.
They have a small staff and electronic services;
PAB – Banking Service Post: this type of unit is located inside the premises of companies or
government offices. This service structure requires one employee and electronic services;
PAE – Electronic Service Post: the structure of services is exclusively electronic; and
SAA – Self-Service Room: exclusively electronic structure of services, installed in the main areas of the
branches; and
PAP – Payment and collection post: located mainly in government offices (town halls) for carrying out
receipts and payments. Employees and automated teller machines provide the service:

                                                    Total Distribution Network




                                                                       BB 7.5%
            North                                                                                                Northeast
                                                                                                BB 25.8%
            Branches               236                                                                           Branches            987
            Others                 864                                                                           Others         2,814
            Total                 1,100                                                                          Total          3,801
                                                                              BB 11.4%


                          Midwest                                                           BB 36.9%
                          Branches             389                                                           Southeast
                          Others              1,293
                                                                                                             Branches        1,505
                          Total               1,682
                                                                                                             Others          3,921
                                                                                         BB 19.4%            Total           5,426
                                                   South
                                                   Branches            806
                                                   Others             2,051
                                                   Total              2,857


Figure 55. Total Distribution Network




                                                                              Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 100
To provide its service to the wholesale segment, Banco do Brasil has a specific distribution network.
The staff of this network undergoes highly specialized training and works in harmony with the various
needs of this market.

The locations of the Wholesale pillar include 17 Corporate branches and 68 Business branches, which
are intended to serve companies with annual sales in accordance with the following table:

Table 95. Wholesale Pillar Branches

                                                 Industry                   Commerce                          Services
Corporate                                      Over R$ 90 million            Over R$ 150 million             Over R$ 150 million
Business                               From R$ 10 to R$ 90 million   From R$ 10 to R$ 150 million    From R$ 10 to R$ 150 million


                                         Distribution Network - Wholesale



                         North                                                         Northeast
                         Business            2                                         Business           7
                         Corporate           0                                         Corporate          1
                         Total               2                                         Total              8


                                     Midwest
                                     Business          4                            Southeast
                                     Corporate         1
                                                                                    Business         37
                                     Total             5                            Corporate        11
                                                  South                             Total            48
                                                  Business     18
                                                  Corporate     4
                                                  Total        22

Figure 56. Distribution Network - Wholesale

The Government market keeps its business focus trained on the relationship with the federal, state and
municipal government, in the spheres of the executive, legislative and judiciary branches. The
Government market’s strategy of work has ensured appropriate solutions for the specific aspects of
each one of the niches of its segment, acting to generate value through solutions with new products and
freeing processes from red tape.

The locations of the Government pillar include 36 branches, distributed as shown in the following figure:

                                       Distribuição Network - Government



                           North                                                        Northeast
                           Branches 7                                                   Branches 11
                           Others   2                                                   Others     7
                           Total    9                                                   Total     18

                                       Midwest
                                       Branches 5                                     Southeast
                                       Others   4                                     Branches 8
                                       Total    9                                     Others     8
                                                      South                           Total     16
                                                      Branches 5
                                                      Others   5
                                                      Total   10
Figure 57. Distribuition Network - Government



101 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Besides its own network, BB has bank correspondents (Aqui tem BB), which at the end of March 2006
totalized 1,762 points of service and 14,980 ATMs for receipt of payment booklets, taxes and bank titles.

Banco do Brasil’s network abroad comprises 40 points of service (17 branches, 8 sub-branches, 10
business units and offices and 5 subsidiaries) in 23 countries. To supplement its own network abroad, at
the end of 4Q05 BB maintained a relationship with 1,472 financial institutions, present in 147 countries.
This network is of great importance for complementing BB 's own network of branches abroad and for
making it possible to carry out transactions and business, for itself and for customers.

Table 96. Distribution Network Abroad

Branches                  Sub-Branches              Business Units            Subsidiaries
Amsterdam                 Cascais                   Caracas                   Banco do Brasil AG
Assunção                  Gifu                      Cidade do México          Banco do Brasil Securities LLC
Buenos Aires              Gunma*                    Hong Kong                 BB Leasing Company Ltd,
Cidade do Leste           Hamamatsu*                Lima                      BB Securities Ltd,
Frankfurt                 Ibaraki                   Luanda                    BAMB Brasilian American Merchant Bank
Grand Cayman              Nagano                    Roma
La Paz                    Nagóia*                   Xangai
Lisboa                    Santa Cruz de La Sierra   Washington
Londres                                             Seul**
Madri                                               Dubai**
Miami
Milão
Nova Iorque
Panamá
Paris
Santiago
Tóquio
* Sub-Branche being transformed in Branch,
** Unit in process of instalation




                                                          Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 102
7.4.4 Automated Channels

Banco do Brasil’s self-service network represents a strategic differential. BB’s customers have at their
disposal the largest network of automated teller machines (ATMs) in Latin America, with terminals in
Brazil and abroad. At the end of December, BB customers had at their disposal 40,957 ATMs, compared
to 39,180 in March 2005, growth of 4.5%.

                                            Automated Teller Machines




                                                                                                                   40,957
                                                                                                       40,191
                                                                                       39,856
                                                                              39,324
                                                        39,015



                                                                    39,180
                              38,153


                                       38,242




                            Jun/04 Sep/04 Dec/04 Mar/05                      Jun/05 Sep/05 Dec/05 Mar/06

Figure 58. Automated Teller Machines

This technological infrastructure has provided support for BB in its strategy for controlling costs. In
December 2005, over 523 million transactions were carried out over the ATM network, an increase of
4.8%, compared to the same period of the previous year.

The importance of this channel in BB’s transactions can be seen from the figures below, which show the
percentage of banking transactions carried out through the ATMs:

-   94.7% of the cash withdrawals;

-   83.0% of the check books delivered;

-   69.4% of the deposits; and

-   58.8% of the receipts of bills and contractual payments.

The share of automated transactions in the total of transactions carried out by BB’s customers
amounted to 88.6% in March 2006, against 87.9% in the same period of the previous year.

                 Share of Automated Transactions / Total Transactions - %

                                89,6                                                                             89,2
                                                 88,4             87,9        88,1              88,4                         88,6
                   86,9




                  Jun/04      Set/04            Dez/04           Mar/05      Jun/05         Set/05              Dez/05      Mar/06

Figure 59. Share of Automated Transactions / Total Transactions - %




103 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Besides the cashiers at the branches and the ATMs, Banco do Brasil offers several other options for
access to banking services, such as: the Internet, its Financial Manager (an Internet banking tool for
businesses), POS equipment (credit and debit card machines at the commercial establishments),
telephone, fax, and WAP.

The chart below shows that the other service channels have been gaining ground in the customers’
preference:


                                      Costumer Access Options - %
                 2.3          1.9       2.2         2.0              4.2          4.1         3.9       3.9
                5.2           5.3        6.9        6.0                           6.1
                                                                  5.9                          7.7       6.4
                13.1          10.4      11.6        12.1         11.9             11.6        10.8      11.4
                              16.8                  16.8
                16.6                    16.7                     15.9            14.8         16.6      17.2

                11.9          15.0      11.9        13.0         12.8            13.8         12.7      14.1



                51.2          50.6      50.7        50.1         49.3            49.6         48.3      47.0




               Jun/04        Sep/04    Dec/04      Mar/05        Jun/05          Sep/05      Dec/05    Mar/06
         ATM           Internet        Internet            Cashier         POS           COBAN and Others
                       Individuals     Corporate

Figure 60. Costumer Access Options

Banco do Brasil continues to be the leader on the Internet. At the end of March 2006, the number of
customers reached 8.1 million, growing 14.1% in relation to the same period of the previous year. The
above chart shows that the share of transactions carried out via the Internet has grown, gaining ground
from such important channels as cashiers and ATMs.




                                                            Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 104
7.4.5 Productivity – Coverage Ratios

The coverage ratios show the capacity for covering fixed costs using only service revenues.

As the following graph shows, coverage ratio of service revenues over personnel expenses went up
from 97.9% in 1Q05 to 112.1% in 1Q06. The growth of this ratio is explained by the growth of service
revenues and the control over personnel expenses.

Broadening the concept to the capacity for coverage of all the administrative expenses, a similar
movement can be seen, with an increase from 54.4% in 1Q05 to 64.1% in 1Q06.


                                                          Coverage Ratios - %
                                                 Services Revenues/Personnel Expenses


                                                                               119.6
                                                                                                                  112.1
                                   98.1       98.4                   97.9                 100.8       99.5
                                                          92.5




                                   2Q04       3Q04        4Q04       1Q05      2Q05        3Q05       4Q05        1Q06

                                              Services Revenues/ Administratives Expenses


                                                                               64.0                                64.1
                                                                                           57.9       56.4
                                 53.1       54.9                    54.4
                                                        51.2




                                 2Q04       3Q04        4Q04        1Q05       2Q05        3Q05       4Q05        1Q06

Figure 61. Coverage Ratios

Table 97. Coverage Ratios
                                                                                                                                           R$ million
                                                   2Q04          3Q04         4Q04             1Q05     2Q05          3Q05       4Q05         1Q06
Service Revenues                                  1,643          1,717        1,702         1,767        1,929         1,952      2,001         2,103
Administrative Expenses                         (2,832)        (2,908)      (3,065)       (2,992)      (3,035)       (3,106)    (3,268)       (3,156)
Personnel Expenses                              (1,552)        (1,603)      (1,671)       (1,638)      (1,687)       (1,709)    (1,802)       (1,781)
Legal Risk                                        (261)          (221)        (258)         (258)            22        (268)      (281)         (126)
   Legal Claims                                   (139)            (79)         (89)          (92)         (52)          (40)       (70)          (31)
   Labor Lawsuits                                 (122)          (141)        (169)         (166)            74        (228)      (211)           (95)
Service Revenues/Personnel Exp.*                   98.1           98.4         92.5          97.9        119.6         100.8       99.5         112.1
Service Revenues/Administ, Exp.**                  53.1           54.9         51.2          54.4         64.0          57.9       56.4          64.1
* In the calculation of this ratio Labor Lawsuts are included.
** In the calculation of this ratio Legal Risk is included (Legal Claims and Labor Lawsuts).




105 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
         Despite the expansion of the service network, which is necessary to meet the constant increase in the
         customer base, BB has kept its cost structure compatible with its generation of business, as seen in the
         graphs below:

                                                                       Productivity Ratios

                         Loan Portfolio / Points of Service                                                          Services Revenues / Points of Service
                                                                                                                                                                135.2    141.5
                                                                                                                                              132.2     132.7
                                                                                                     118.1      120.6    117.8       121.3
                                                                           6.9       7.1
                           6.1        6.4          6.6        6.4
 6.0         5.9

                                                                                                                                               14.6      14.7   14.8     14.9
                                                                                                                         14.5        14.6
                                                                                                                14.2
                                                                                                     13.9
                                     14.6       14.6         14.7       14.8        14.9
             14.2         14.5
13.9




Jun/04     Sep/04 Dec/04          Mar/05     Jun/05     Sep/05          Dec/05      Mar/06          Jun/04     Sep/04 Dec/04 Mar/05           Jun/05    Sep/05 Dec/05   Mar/06
           Points of Service
           Loan Portfolio / Points of Service - R$ thousand                                                 Points of Service                  Service Revenues / Points of Service

                                                                    Costumers / (Branches + PAA + PAB)


                                                                                                        4,165        4,256       4,318
                                                                                             4,090
                                                           3,855      3,931      3,951
                                              3,766




                                              Jun/04     Sep/04 Dec/04           Mar/05 Jun/05         Sep/05 Dec/05 Mar/06

         Figure 62. Productivity Ratios
                                                                                                                                         R$ million
                                                                                                                                                                 CAGR

                                                                                                                                             17,624              17.5%
                                                                                                                     16,709
                                                                    15,327                 15,464                                                                 11.8 %
                                            13,575
                                                                                                                            12,398                    12,623      6.6%
                                                                           11,298                 11,524
                   10,109                          9,645
                            9,161
                                                                                                                                     8,412
                                                                                                             7,648
                                                                                  6,607
                                                            5,491
                                    4,454
           3,760




                    2001                    2002                    2003                   2004                      2005                    1Q06*


                                 Services Revenues                      Gross Financial Margin                       Administratives Expenses

         * Annualized,
         Figure 63. Business vs. Expenses




                                                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 106
7.5 Operating Income
Table 98. Operating Income
                                                                                                                                         R$ million
                                                                               Quarterly Flow                                  Chg. %
                                                                      1Q05             4Q05            1Q06           on 1Q05             on 4Q05
Commercial Income                                                     1,453            1,241           1,600                  10.1             28.9
Legal Risk                                                            (258)            (281)           (126)                (51.0)           (55.1)
   Legal Claims                                                         (92)             (70)            (31)               (66.1)           (55.7)
   Labor Lawsuits                                                     (166)            (211)             (95)               (42.7)           (54.9)
Other Operating Income (Expenses)                                         84             359              (9)              (110.5)          (102.5)
   Equity Interest in Results of Subs, and Affil,                       144              134             106                (26.4)           (21.3)
   FX Other Operating Income/Expenses                                   (60)             224           (115)                  91.7          (151.2)
    Other Operating Income                                              596            1,036             631                   5.8           (39.1)
    Other Operating Expenses                                          (656)            (812)           (746)                  13.6            (8.2)
Operating Income                                                      1,280            1,319           1,465                  14.4             11.1

As commented in chapter 7.4 Commercial Income, civil and labor lawsuits have been separated into a
group called legal risk, with a view to demonstrating these expenses better and facilitating an analysis of
administrative expenses.

A significant decrease can be observed in the expense group called legal risk. Regarding such matter,
the sum of Civil and Labor Lawsuits showed a reduction of 51.0% in relation to the same period of last
year, and of 55.1% compared with the last quarter of 2005.

The item Equity Interest in Subsidiaries and Affiliated Company showed a decrease of 26.4% in relation
to 1Q05, partly caused by the exchange appreciation effects on non-financial Shareholder’s Equity
abroad.

The 5.8% increase in the item operational income was greatly influenced by an increase in revenues
derived from secured deposits compared to the same period in 2005. With respect to operational
expenses, part of the 13.6% increase was due to interest on equity updating in the last 12 months.

The table and the graph below show the efficiency attained by Banco do Brasil. The ratio of
administrative expenses plus legal risk to operating revenues reached 51.3% in 1Q06, a 480 basis
points reduction in relation to the same period of the previous year. The improvement shown in the
efficiency ratio in 1Q06 was caused mainly by the increases in the gross financial margin, service
revenues and other operating income.

Table 99. Eficiency Ratio
                                                                                                                                         R$ million
                                               2Q04         3Q04           4Q04        1Q05       2Q05           3Q05           4Q05         1Q06
A) Administrative Expenses                    (2,832)      (2,908)       (3,065)      (2,992)    (3,035)        (3,106)       (3,268)       (3,156)
   Personnel Expenses                         (1,552)      (1,603)       (1,671)      (1,638)    (1,687)        (1,709)       (1,802)       (1,781)
   Other Administrative Expenses              (1,242)      (1,265)       (1,358)      (1,315)    (1,314)        (1,362)       (1,428)       (1,331)
   Other Tax Expenses                             (37)         (41)          (36)         (39)       (34)           (36)          (39)          (44)
B) Legal Risk                                   (261)        (221)         (444)        (258)          22         (268)         (281)         (126)
   Legal Claims                                 (139)          (79)        (275)          (92)       (52)           (40)          (70)          (31)
   Labor Lawsuits                               (122)        (141)         (169)        (166)          74         (228)         (211)           (95)
C) Operating Income                             5,244        5,505         5,597        5,797      6,070          6,155         6,623         6,394
   Gross Financial Margin                       3,925        3,919         4,086        4,090      4,146          4,199         4,398         4,406
   Service Revenues                             1,643        1,717         1,702        1,767      1,929          1,952         2,001         2,103
   Other Operating Income                         383          457           621          596        632            692         1,036           631
   Other Operating Expenses                     (707)        (588)         (812)        (656)      (637)          (689)         (812)         (746)
Efficiency Ratio ((A+B) / C) - %                    59.0      56.8             62.7      56.1       49.6           54.8          53.6          51.3




107 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 100. Efficiency Ratio Statement - Quarterly

                                                                                                                 Effect in the
                                                      1Q05            1Q06           Abs. Chg         Chg. %
                                                                                                                         Ratio
Administrative Expenses                                 (3,250)            (3,282)           (32)          1.0            0,6
Personnel Expenses                                      (1,638)            (1,781)          (142)          8.7            2,5
Other Administrative Expenses                           (1,315)            (1,331)           (15)          1.2            0,3
Other Tax Expenses                                           (39)             (44)            (6)        14.3             0,1
Legal Risk                                               (258)              (126)            131        (51.0)           (2,3)
Operating Income                                         5,797              6,394            597         10.3            (5,2)
Gross Financial Margin                                   4,090              4,406            316           7.7           (2,9)
Service Revenues                                         1,767              2,103            336         19.0            (3,1)
Other Operating Income                                       596              631             35           5.8           (0,3)
Other Operating Expenses                                 (656)              (746)            (89)        13.6             0,9
Adm, Exp, and Oper, Inc, (consolidated effect)                                                                           (0,1)
Efficiency Ratio %                                           56.1            51.3                                        (4.7)




                                                 Efficiency Ratio - %
                                                        58.6
                                               58.2                          57.7    57.6
                            56.8     56.6                                                      57.2
                                                                    56.3


                            59.0               62.7
                                     56.8               56.1                 54.8    53.6
                                                                    49.6                       51.3




                            2Q04     3Q04      4Q04     1Q05        2Q05     3Q05    4Q05      1Q06

                                   Efficiency Ratio            Eficiency Ratio - Average 12 Months



Figure 64. Efficiency Ratio - %




                                                               Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 108
7.6 Net Income
Table 101. Net Income
                                                                                                                     R$ million
                                                                     Quarterly Flow                         Chg. %
                                                               1Q05            4Q05            1Q06     on 1Q05       on 4Q05
Operating Income                                               1,280           1,319           1,465        14.4           11.1
Non-operating Income                                               98             28              26      (73.1)           (6.1)
Income Before Taxes                                            1,378           1,347           1,491         8.2           10.7
   Income and Social Contribution Taxes                        (483)           (447)           (363)      (24.8)         (18.8)
    Interest on Own Capital Tax Benefit                             -            252               -           -        (100.0)
   Statutory Profit Sharing                                      (78)          (163)           (190)      144.0            16.4
Recurring Income                                                 817             737             938        14.8           27.3
Non-Recurring Items                                              148               -           1,405      852.0                -
Extraordinary Provision for Credit Risks (7)                        -                          (500)           -               -
Recovery of Undue Taxes (9)                                      229               -               -       (100)               -
Provision for Non-recurring IR and CS (10)                       (76)              -               -       (100)               -
Non-recurring Pasep/Cofins (11)                                   (6)              -               -       (100)               -
Tax credits recorded                                                -              -           1,905           -               -
Net Income                                                       965             737           2,343      142.9           217.9


In 1Q06, the Bank’s net income was R$ 2,343 million, against R$ 965 million in 1Q05, an increase of
142.9%. In relation to 4Q05, net income in 1Q06 was 217.9% higher. This result was caused by a
change in tax credit treatment criteria, according to CMN Resolution 3.355, of 03/31/2006. This allowed
the recording of R$ 1.9 billion of tax credit related to previous periods, an amount considered non
recurring.

The annualized Return on Equity (ROE) was 63.0% in the 1Q06, compared with 29.3% in the 1Q05

The recurring expenses with Income tax (IR) and Social Contribution (CS) in 1Q06 were lower in relation
to the same period of last year, recording 24.3%. Among other factors, the recording of tax credit on
temporary differences in the quarter, due to the publication of CMN Resolution 3.355, of 31.03.2006,
which permits the recording of tax credits whose period for realization is up to 10 years, differently from
the previous regulation, which established a period of up to 5 years.

                                      Changes in Earnings before Taxes
                                                                          R$ million

                                      37.7             34.9       32.4       38.6      33.2
                            20.2                                                                 24.3
                                               17.3


                                                                            2,533

                                                       1,601      1,760
                                     1,445                                             1,347    1,491
                           1,184               1,083



                            2Q04      3Q04     4Q04    1Q05       2Q05       3Q05      4Q05     1Q06


                                                       EBT         IR/LAIR - %

Figure 65. Changes in Earnings before Taxes




109 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Recurring Income

The recurring income for the period amounted to R$ 938 million, 14.8% higher than that recorded in the
same period of the previous year and 27.3% higher than observed in 4Q05. The recurring ROE was
22.2% p.a., against 24.5% p.a. in 1Q05 and 18.7% p.a. in 4Q05.

Extraordinary Items

The extraordinary items relating to 1Q06 are detailed in item 5.3.1 – Details of the Reallocations.
Regarding 1Q06, the Bank recorded revenues, net of taxes, of R$ 1,405 million, of which R$ 500 million
were related to reinforcement of provisions and R$ 1.905 to recording of tax credit for periods prior to
2005

The graphs that follow show the changes both in net income and recurring income, and in the
corresponding returns on shareholders’ equity.

                                          Change in Net Income
                                                                           R$ million
                                                                                            2,343
                                                                         1,438
                                                         965     1,014
                               805      724     771                               737

                                                                 1,014   873                938
                               703      833     586      817                      737

                               2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

                                              Recurring Income           Net Income

Figure 66. Change in Net Income

                                               Change in ROE - %
                                                                                             63.0

                                                                          40.8
                                27.7              24.0    29.3    29.6
                                         23.6                                        18.7

                                         27.5             24.5    29.6
                                23.9              17.9                    23.5       18.7    22.5

                                2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

                                                    Recurring ROE                ROE
Figure 67. Change in ROE

Table 102. Return on Equity
                                                                                                                       R$ million
                                2Q04            3Q04           4Q04        1Q05              2Q05     3Q05     4Q05         1Q06
Recurring Income                 703              724            586           817           1,014     873      737          938
Net Income                       805              833            771           965           1,014    1,438     737         2,343
Average Shareholders’ Equity   12,775          13,318      13,939         14,519            15,163   16,109   16,838       18,029
Recurring ROE - %                23.9            23.6          17.9         24.5              29.6     23.5     18.7         22.5
ROE - %                          27.7            27.5          24.0         29.3              29.6     40.8     18.7         63.0




                                                               Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 110
Table 103. ROE decomposition - Quarterly

                                                                1Q05                              4Q05               1Q06
                                                                NI              RI             NI            RI       NI        RI
Gross Financial Margin                                      124.4           122.6          111.5         111.5    118.5     105.7
Allowance for Loan Losses                                   (32.3)          (31.8)         (38.0)        (38.0)   (36.2)    (32.2)
Service Revenues                                              53.7            52.9           50.8          50.8     56.6      50.4
Taxes on Revenues                                           (25.3)          (25.0)         (21.3)        (21.3)   (20.8)    (18.5)
Administrative Expenses                                     (91.0)          (89.7)         (82.9)        (82.9)   (84.9)    (75.7)
Other Components of Result***                                (4.7)           (4.6)          (1.5)         (1.5)    (8.0)     (7.2)
Recurring Income **                                                           24.5                        18.7               22.5
Non-recurring Items                                            4.5                                 -               37.8
Net Income*                                                   29.3                           18.7                  63.0
* Legal Risk, Other Operating Income (expenses), non-operating income, Statutory Profit Sharing


The Analytical ROE has the aim of showing the behavior of the items that make up the Bank’s results.
According to the table above, the gross financial margin (GFM) the service revenues and the
extraordinary items were those that most contributed to the making up of the result. On the expenses
side, we can observe a larger share of administrative expenses, which has been falling systematically
throughout the years, and allowances for loan losses. Comparing 1Q06 to 1Q05, both from the point of
view of net income and of recurring income, it can be seen that the lower contribution of the GFM to
making up the ROE has been offset by the reduction in administrative expenses.




111 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
7.7 Net Value Added
The table Net Value Added shows how Banco do Brasil’s income is made up of the of the generation of
value from each of the Bank’s businesses, and then shows a breakdown of the distribution of these
proceeds. The point of view used is the gross financial margin, which includes financial intermediation
revenues and expenses, without allowances for loan losses.

Table 104. Net Value Added
                                                                                                           R$ million
                                                           Quarterly Flow                        Chg. %
                                                    1Q05            4Q05         1Q06       on 1Q05        on 4Q05
Gross Financial Margin                              4,090           4,398        4,406            7.7            0.2
Income from Non-Financial Products                  1,484           1,656            17       (98.8)         (98.9)
  Customer Relationship Fees                          589             648             -      (100.0)        (100.0)
  Investment Fund Management Fees                     283             310             -      (100.0)        (100.0)
  Loans                                               149             162             -      (100.0)        (100.0)
  Collections                                         168             190             -      (100.0)        (100.0)
  Services Provided to Related Companies              118             131             -      (100.0)        (100.0)
  Credit Cards                                        163             199             -      (100.0)        (100.0)
  Insurance                                             14              16           17         28.5           11.0
Others                                              1,121           1,543        2,849         154.1           84.6
  Insurance – Brokerage                                 81              98           99         22.3             0.6
  Insurance – Results                                   48              70           84         76.3           19.4
  Others Service Revenues                             202             247        1,987         882.8          705.8
  Equity Interest in Results of Subs,and Affil,         96              64           22             -              -
  Other Operational Revenues                          596           1,036          631            5.8        (39.1)
  Non Operation Income                                  98              28           26             -              -
Value Added                                         6,695           7,598        7,272            8.6          (4.3)
Distribution of Value Added*                      (5,731)         (6,860)      (4,929)        (14.0)         (28.1)
Operational Revenues                              (1,717)         (2,310)      (2,090)          21.7           (9.5)
  Provision for Credit Risk                       (1,061)         (1,498)      (1,345)          26.7         (10.2)
  Other Operational Income                          (656)           (812)        (746)          13.6           (8.2)
Personnel Expenses                                (1,882)         (2,175)      (2,065)            9.8          (5.0)
  Personnel Expenses                              (1,804)         (2,012)      (1,876)            4.0          (6.8)
  Statutory Profits Sharing                           (78)          (163)        (190)         144.0           16.6
Administrative Expenses                           (1,407)         (1,498)      (1,362)          (3.2)          (9.1)
Tax Expenses                                        (872)           (878)        (817)          (6.4)          (7.0)
  Taxes on Sale                                     (351)           (393)        (409)          16.7             4.2
  Other Tax Expenses                                  (39)            (39)         (44)         14.3           14.0
  Income and Social Contribution Taxes              (483)           (447)        (363)        (24.8)         (18.7)
Extraordinary Items                                   148                -       1,405              -              -
Value Added to Shareholders                          965             737        2,343          142.9          217.7




                                                      Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 112
7.8 Gross Value Added
Another way of analyzing the distribution of the value added among the Bank’s various stakeholders is
shown in the table below. Financial intermediation revenues are included in the value added, while
intermediation expenses are included in the distribution of the value added to the Bank’s different
creditors.

Table 105. Gross Value Added
                                                                                                            R$ million
                                                                 Quarterly Flow                    Chg. %
                                                          1Q05            4Q05       1Q06     on 1Q05        on 4Q05
Gross Financial Margin                                    8,191           8,856      8,892          8.6            0.4
Income from Non-Financial Products                        1,484           1,656          17     (98.8)         (98.9)
  Customer Relationship Fees                                589              648          -    (100.0)        (100.0)
  Investment Fund Management Fees                           283              310          -    (100.0)        (100.0)
  Loan Fees                                                 149              162          -    (100.0)        (100.0)
  Collections                                               168              190          -    (100.0)        (100.0)
  Services Provided to Related Companies                    118              131          -    (100.0)        (100.0)
  Credit Cards                                              163              199          -    (100.0)        (100.0)
  Insurance                                                   14              16         17           -          11.0
Other                                                     1,121           1,543      2,849       154.1           84.6
  Insurance - Brokerage                                       81              98         99       22.3             0.6
  Insurance – Results                                         48              70         84       76.3           19.4
  Other Service Revenues                                    202              247     1,987       882.8          705.8
  Equity Interest in Results of Subs, and Affil               96              64         22           -              -
  Other Operational Revenues                                596           1,036        631          5.8        (39.1)
  Non Operation Income                                        98              28         26           -          (6.1)
Value added                                             10,795           12,056    11,758           8.9          (2.5)
Distribution of Value Added*                            (9,831)        (11,319)    (9,415)        (4.2)        (16.8)
Financial Intermediation Expenses                       (4,100)         (4,458)    (4,486)          9.4            0.6
Operational Expenses                                    (1,717)         (2,310)    (2,090)        21.7           (9.5)
  Provision for Credit Risk                             (1,061)         (1,498)    (1,345)        26.7         (10.2)
  Other Operational Expenses                              (656)           (812)      (746)        13.6           (8.2)
Personnel Expenses                                      (1,882)         (2,175)    (2,065)          9.8          (5.0)
  Personnel Expenses                                    (1,804)         (2,012)    (1,876)          4.0          (6.8)
  Statutory Profits Sharing                                 (78)           (163)     (190)       144.0           16.6
Administrative Expenses                                 (1,407)         (1,498)    (1,362)        (3.2)          (9.1)
Tax Expenses                                              (872)           (878)      (817)        (6.4)          (7.0)
  Taxes on Sale                                           (351)           (393)      (409)        16.7             4.2
  Other Tax expenses                                        (39)            (39)       (44)       14.3           14.0
  Income and Social Contribution Taxes                    (483)            (447)     (363)      (24.8)         (18.7)
Extraordinary Items                                         148                -     1,405            -              -
Value Added for the Shareholders                           965             737      2,343       142.9           217.7




113 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                                                                    Net Value Added

                                 16.7                                                                  14.6         9.4           Others
                     Others                23.4    Others                                 Others
                                                                                                                                  Value Added to
                                                                             Income from Non          24.8          32.2          Shareholders
     Income from Non             22.2      14.4    Value Added to            Produtos Products
                                                                             Financial
     Financial Products                            Shareholders
                                           13.0                                                                     11.2
                                                   Tax Expenses                                                                   Tax Expenses
                                           21.0    Administrative Expenses                                          18.7          Administrative Expenses
      Gross Financial            61.1      21.0                              Gross Financial          60.6
      Margin                                                                 Margin
                                           28.1    Personnel Expenses                                               28.4          Personnel Expenses
                                           28.1


                                        1Q05                                                                 1Q06

             Figure 68. Net Value Added

                                                                   Gross Value Added

                                                  Value Added to                                                                       Value Added to
        Others            10.3            8.9                                              Others            9.1           9.4
                                                  Shareholders                                                                         Shareholders
Income from Non           13.8            8.1     Tax Expenses                   Income from Non         15.3              6.9         Tax Expenses
Financial Products                                                               Financial Products                        11.6
                                         13.0     Administrative Expenses                                                              Administrative Expenses

                                                  Personnel Expenses                                                       17.6        Personnel Expenses
                                         17.4
  Financial                                                                          Financial
  Intermediation                                                                     Intermediation      75.6
                          75.9                    Financial                                                                            Financial
  Income                                                                             Income
                                                  Intermediation                                                                       Intermediation
                                         38.0                                                                              38.2
                                                  Income                                                                               Income



                                 1Q05                                                                              1Q06

             Figure 69. Gross Value Added




                                                                             Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 114
7.9 Insurance, Pension Plans and Capitalization
Banco do Brasil, through BB Banco de Investimentos, a wholly-owned subsidiary, has a shareholding
interest in several companies in the areas of insurance, pension plans and capitalization, offering a
broad range of non-banking products. The table below details BB’s holdings in these companies,
together with the line of business in which they work:

Table 106. Insurance, Pension Plans and Capitalization

Company                                  Share %       Business                      Partnership
Brasilseg Participações S,A,               70.00       Auto Insurance                Sul América Seguros
Cia, De Seguros Aliança do Brasil S,A,     70.00       Life Insurance and Others     Aliança da Bahia
Brasilprev                                 49.99       Pension Plans                 Principal Financial Group e Sebrae
Brasilcap                                  49.99       Capitalization                Icatu Hartford, Sul América e Aliança da Bahia
Brasilsaúde                                49.92       Health Insurance              Sul América Seguros


The income statement by line of business for 1Q06 is shown below to help to understand the process
and to show greater transparency in the insurance, pension plan and capitalization business.

7.9.1 Income Statement by Line of Business

Table 107. Income Statement by Line of Business
                                                                                                                          R$ thousand
                      1Q06                                          Insurance
                                                                                                Pension
                                                                          Life and                           Capitalization Consolidated
                                                    Auto        Health               Total       Plans
                                                                           Other
Rev, from Insuran,, Pension Plans and Capit,         208,714      34,842 306,045 549,601          558,623          409,696     1,517,920
  Retained Insurance Premiums                        208,714      34,842 306,045 549,601                 -                -      549,601
  Revenues from Pension Plans                               -           -          -        -     558,623                 -      558,623
  Revenues from Capitalization                              -           -          -        -            -         409,696       409,696
Changes in Technical Provisions                     (23,100)         195 (14,451) (37,356)      (260,273)        (360,664)     (658,293)
  Insurance                                         (23,100)         195 (14,451) (37,356)               -                -      (37,356)
  Pension Plans                                             -           -          -        -   (260,273)                 -    (260,273)
  Capitalization                                            -           -          -        -            -       (360,664)     (360,664)
Benefits and Redemption Expenses                            -           -          -        -   (289,640)                 -    (289,640)
Earned Premiums                                      185,614      35,037 291,594 512,245                 -                -      512,245
Gross Inc, from Pension Plans and Capitaliz,                -           -          -        -        8,710          49,032         57,741
Retained Claims                                    (121,150)    (21,929) (84,556) (227,635)              -                -    (227,635)
Marketing Expenses                                  (23,749)     (1,649) (61,306) (86,704)       (12,130)         (28,027)     (126,860)
  Insurances                                        (23,749)     (1,649) (61,306) (86,704)               -                -      (86,704)
  Pension Plans                                             -           -          -        -    (12,130)                 -      (12,130)
  Capitalization                                            -           -          -        -            -        (28,027)       (28,027)
Administrative Expenses                             (23,151)     (3,867) (38,903) (65,921)       (37,419)         (12,454)     (115,794)
Commercial Income                                     17,565       7,593 106,828 131,986         (40,839)             8,552        99,698
Other Operating Income (Expenses)                   (14,130)     (1,873) (68,905) (84,908)         21,360           (3,537)      (67,085)
Financial Income                                      17,328       2,058     30,677   50,063       72,829           63,446       186,339
  Financial Revenues                                  19,715       2,432     43,953   66,100      372,513          129,884       568,497
  Financial Expenses                                  (2,387)      (373) (13,276) (16,037)      (299,684)         (66,437)     (382,158)
Operating Income                                      20,763       7,778     68,600   97,141       53,350           68,461       218,952
Non-operating Income                                      237           -        513      750           31                4           785
Income before Taxes                                   21,000       7,778     69,113   97,891       53,382           68,465       219,737
  Income and Social Contribution Taxes                (7,943)    (2,419) (20,797) (31,159)       (16,723)         (21,984)       (69,866)
  Profit Sharing                                      (2,645)    (1,117)     (3,516)  (7,278)      (1,100)          (2,405)      (10,782)
Net Income/ (Loss)                                    10,412       4,242     44,800   59,454       35,559           44,076       139,089
Interests of Other Shareholders                       (3,124)    (2,124) (13,440) (18,688)       (17,783)         (22,042)       (58,513)
Other Investment Changes                                                -                   -                         1,436         1,436




115 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
                      1Q06                                       Insurance
                                                                                              Pension
                                                                       Life and                            Capitalization Consolidated
                                                     Auto     Health                Total      Plans
                                                                        Other
  Equity Income Result                                7,289     2,117     31,360     40,766       17,776          23,470            82,011
  Service Revenues – Commission                      24,514     1,714     64,602     90,831        3,298           4,864            98,992
  Service Revenues – BB Fees                              -          -     3,428      3,428        8,247          19,580            31,255
  Service Revenues – Assets Management                  813       123      1,803      2,739       12,289           7,434            22,462
  Insurance Value Added                              32,616     3,954     101,193   137,763       41,610          55,348           234,720




  7.9.2 Combined Ratio

  The combined ratio shows the percentage of earned premiums used by operating expenses in the
  insurance business (retained claims, expenses with marketing and administrative expenses). The
  consolidated combined ratio rose from 87.5% in 1Q05 to 87.7% in 1Q06.

                                                Combined Ratio - %
                     Consolidated                                                                 Auto


                                       99,6                                                                     104,1
92,8                                                               94,7      93,2                                          90,5      90,5
       88,4   91,6   87,5    90,4             91,1   87,7                            87,2      90,6
                                                                                                         86,0    21,2
12,3                                   14,8                        13,3                                                    12,6      12,5
       11,5   11,6   10,6        8,1          11,1   12,9                   12,5               9,4        4,4
                                                                   11,2              12,8     11,9               12,9
                                                                            14,3                         12,3              13,1      12,8
                             27,9      28,4                                          11,5
26,7          28,2                            30,0
       28,8          28,2                            30,4


                                                                   70,1      66,3             69,3       69,3    70,0      64,8      65,3
53,8          51,8           54,5      56,4                                          62,9
       48,1          48,7                     50,0   44,4



2Q04   3Q04   4Q04   1Q05    2Q05      3Q05   4Q05   1Q06          2Q04     3Q04     4Q04     1Q05      2Q05    3Q05       4Q05      1Q06


                        Health                                                                Life and Others

                     101,3   97,3
94,7          93,7    9,6
       89,8                            88,8   84,6    78,3                                                       98,3
12,6          10,6            9,5                                                    93,8                92,1              92,3       87,0
       11,8           5,6              10,9                        91,5      85,5
5,2                          5,6              10,2                                             83,7              11,4
       5,2    5,4                      5,8            11,0                           11,0                                   10,3      13,3
                                              6,2                  11,7     10,9               11,5      10,1
                                                      4,7
                                                                   37,9              41,3                40,7    41,2      43,5
                                                                             40,3              41,4                                   44,7
                     86,1    82,2
77,0   72,8   77,7                     72,1   68,2   62,6          41,9              41,5                41,3    45,7
                                                                             34,4              30,9                        38,5       29,0

                                                                   2Q04     3Q04     4Q04     1Q05       2Q05    3Q05      4Q05      1Q06
2Q04   3Q04   4Q04   1Q05    2Q05      3Q05   4Q05   1Q06

                                                                        Administratives Expenses / Earned Premiuns - %
                                                                        Expenses for Marketing / Earned Premiuns - %
                                                                        Retained Claims / Earned Premiuns - %



  Figure 70. Combined Ratio




                                                              Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 116
7.9.3 Brasilseg

Criated in March 1997, BB Seguros/Brasilveículos is result of a partnership between Banco do Brasil
and Sul América Seguros, a company contracted in purpose to manage services related to claims and
24 hours assistence. The maily product, BB Seguro Auto, is traded throughout BB Corretora de Seguros
e Administradora de Bens S.A, the whole branches of Banco do Brasil, thelephone and Internet. The
company is currently ranked third in the auto market.

In relation to 1Q05, the insured fleet increased 7.6%, dropped 585 thousand of vehicles to 630 thousand
in March 2006. The combined ratio was slight better due the decrease of retained claims, which came
from 90.6% to 90.5% (1Q05 – 1Q06)

Table 108. Brasilseg Data

                                                                                                     R$ thousand
                                                                                            Chg. %
                                                  Mar/05          Dec/05    Mar/06    on Mar/05       on Dec/05
Fleet – thousand                                     585              625       630         7.6            0.72
Volume of the Managed Portfolio                  256,059          318,511   328,877        28.4            3.25


7.9.4 Brasilsaúde

Created in December 1995, BrasilSaúde Companhia de seguros is the result of a partnership between
Banco do Brasil and Sul America Seguros.

BrasilSaúde uses BB branches and brokers to market health insurance in the following segments:
company, professional, individual, and dental.

The number of lives insured decreased 20.6% in relation to March 2005. Therefore, a less volume of
expenses administratives and retained claims set to an improvment of the combined ratio, which
dropped from 101.3% to 78.3% (1Q05 – 1Q06).

Table 109. Brasilsaúde Data
                                                                                                     R$ thousand
                                                                                            Chg.%
                                                  Mar/05          Dec/05    Mar/06    on Mar/05       on Dec/05
Lives Insured – thousand                             102               84        81       (20.6)           (3.6)
Volume of the Managed Portfolio                   44,583           49,664    46,686          4.7           (6.0)


7.9.5 Aliança do Brasil

Founded in June 1997, Companhia de Seguros Aliança do Brasil resulted from the association between
Banco do Brasil and Aliança da Bahia. The company is the leader in the Life branch, as well as in ROE
and combined ratio , an indicator that measures the company’s operational efficiency. Aliança do Brasil
operates throughout Brazil, offering its products through Banco do Brasil branches and brokers.

The company has a diversified portfolio of products, made up of 20 types of insurance from the life and
basic lines, and offers solutions that meet the needs of individuals and businesses.

The number of policies increased 22.3% in relation to March 2005. The increase in retained claims
decreased the combined ratio, which came from 83.7% to 87.0%.




117 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Table 110. Aliança do Brasil Data
                                                                                                        R$ thousand
                                                                                                Chg.%
                                            Mar/05         Dec/05           Mar/06      on Mar/05        on Dec/05
Life Insurance Policies – thousand           1,373          1,417            1,679             22.3            18.5
Volume of the Managed Portfolio            685,264        717,094          720,132              5.1             0.4


7.9.6 Brasilcap

Brasilcap was formed in 1995, following a partnership between Banco do Brasil and Icatu Hartford, Sul
América and Aliança da Bahia. The company’s main product is Ourocap, which can only be acquired by
BB current account holders. This product is based on two forms of payment: a single installment, or in
monthly installments, with the customer competing for several prizes.

In 12 months, there was a 2.7% increase in the quantity of bonds and an increase of 22.0% in the
volume of the managed portfolio, which amounted to R$ 2,854 million in March 2005.

Table 111. Brasilcap Data
                                                                                                        R$ thousand
                                                                                              Chg, %
                                       Mar/05          Dec/05            Mar/06        on Mar/05         on Dec/05
Quantity of Bonds – thousand            2,824            2,949            2,899               2.7             (1.7)
Volume of the Managed Portfolio      2,339,324       2,875,839        2,854,379              22.0             (0.7)




7.9.7 Brasilprev

Brasilprev is a supplementary pension plan company of Banco do Brasil, in association with the
Principal Financial Group and Sebrae. Founded in 1993, it actually started marketing its products in
1995. These include the Traditional, PGBL and VGBL plans, and the company is currently ranked third
in the pension plan market.

The number of active participants increased 14.4% in relation to March 2005 and 2.4% in relation to
December 2005. Regarding the volume of managed portfolio, there was an increase of 25.1% and 5.5%
in relation to March and December 2005, respectively.

Table 112. Brasilprev Data
                                                                                                        R$ thousand
                                                                                               Chg.%
                                       Mar/05           Dec/05           Mar/06        on Mar/05         on Dec/05
Active participants – thousand           1,410           1,576             1,613              14.4               2.4
Volume of the Managed Portfolio      8,149,813       9,659,217       10,193,075               25.1               5.5




                                                     Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 118
7.9.8 BB Previdência

BB Previdência is a multisponsored pension fund created in 1994, with the objective of instituting and
managing private pension plans (annuity or income) offering benefits to public and private sector
companies, trade associations, other associations and trade unions operating in Brazil.

Its main competitive advantages are:
- lower management fees, as the institution has its own workforce which is shared with various plans;
and
- better investment rates for the assets under management, given the volumes that are invested.

The institution showed a 28.9% increse in the number of active participants in relation to March 2005
and 18.8% in relation to December 2005, to a total of 45 thousand participants at the end of March
2006. The volume of the managed portfolio amounted to R$ 919 million.

Table 113. BB Previdência Data
                                                                                               R$ thousand
                                                                                       Chg.%
                                             Mar/05           Dec/05   Mar/06    on Mar/05      on Dec/05
Active Participants - thousands                  35               38       45         28.9           18.8
Sponsors                                         54               62       67         24.1            8.1
Volume of the Managed Portfolio             658,727          856,816   919,467        39.6            7.3




119 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
8 – Financial Statements
8.1 Summarized Balance Sheet
Table 114. Balance Sheet – Assets
                                                                                                                                      R$ million
                                                   Jun/04      Sep/04      Dec/04      Mar/05      Jun/05      Sep/05      Dec/05       Mar/06
ASSETS                                            227,374     235,599     239,014     245,685     233,793     245,511     252,977      264,635
Current and long-term assets                      222,858     231,014     233,955     240,739     228,776     240,503     247,397      259,111
Available funds                                    15,841      16,669      15,494      14,408        3,464       4,939       5,828        4,056
Short-term interbank investments                   14,475      18,559      16,453      17,681      17,379      29,690      28,996       35,744
   Open market investments                           4,662       6,160       2,732       3,953       2,118       5,419       8,050      21,839
    Interbank deposits                               9,813     12,400      13,722      13,729      15,261      24,271      20,946       13,905
Marketable securities                              69,855      71,120      73,485      74,089      68,973      68,610      66,470       68,631
   Securities for trading                          11,998      12,690      13,163      11,309        6,087       2,722       3,077        4,327
   Securities available for sale                   31,008      31,997      32,790      35,092      35,265      39,075      37,832       38,815
   Securities held to maturity                     25,146      25,945      26,951      27,039      26,266      26,106      25,275       25,069
    Financial derivatives                            1,702         488         581         649       1,355         707         287          421
Interbank accounts                                 20,959      21,152      22,106      23,348      22,166      23,561      24,404       24,912
     Central Bank deposits                         18,781      18,919      21,931      20,787      19,710      21,066      23,419       21,970
     Compulsory dep, on demand, Dep & float          7,118       6,527       9,087       7,866       6,759       7,856       9,494        7,934
     Compulsórios dep, on savings dep,             11,662      12,392      12,844      12,921      12,951      13,210      13,925       14,036
     Others                                          2,178       2,232         175       2,561       2,456       2,495         985        2,942
Interdepartmental accounts                               13        108         147         140         487           45        121            12
Loans                                              69,241      69,954      74,823      77,896      80,725      79,781      85,942       88,306
     Public sector                                   4,647       4,552       4,161       4,528       3,717       3,677       3,730        3,442
     Private sector                                69,472      70,520      75,773      78,765      82,598      81,778      88,551       92,191
     (Allowance for loan losses)                   (4,877)     (5,118)     (5,110)     (5,397)     (5,590)     (5,675)     (6,339)      (7,327)
Leasing                                                   6           6          20           4           9          17          20           30
   Leasing and sub-leasing receivables                 411         472         532         580         633         677         752          822
      Public sector                                      20          40          54          60          62          76          99         106
      Private sector                                   390         432         479         520         572         601         653          716
   (Unearned lease income)                           (385)       (443)       (483)       (547)       (595)       (625)       (708)        (768)
   (Allowance for lease losses)                        (20)        (22)        (29)        (29)        (30)        (35)        (24)         (24)
Other receivables                                  32,196      33,194      31,198      32,985      35,399      33,677      35,108       36,811
   Receivable on guarantees honored                      29          41          71          83        132         143         160          156
    Foreign exchange portfolio                     11,508      11,455        8,530     10,444      11,667        9,270       9,156        9,130
    Income receivable                                  309         354         180         211         207         221         237          183
   Trading and brokerage of securities                   45          41        235           62        287         167           46           66
   Specific credits                                    516         530         544         559         576         593         610          627
   Special operations                                     1           1           1           1           1           1           1            1
   Tax credits                                       8,971       8,505       8,396       7,956       7,523       6,815       6,687        8,905
   Atuarial Assets                                     909       1,450       2,128       2,709       2,720       3,422       3,869        3,865
   Warrants Deposits Receivable                      7,750       8,127       8,789       9,199     10,138      10,874      11,692       12,251
   Other credits                                     3,746       4,437       4,268       3,907       4,541       4,739       5,558        8,678
   (Provision or doubtful receivables)             (1,587)     (1,749)     (1,944)     (2,146)     (2,394)     (2,567)     (2,908)      (3,186)
   (With loan characteristics)                       (205)       (234)       (226)       (229)       (272)       (245)       (328)        (380)
   (Without loan characteristics)                  (1,383)     (1,515)     (1,718)     (1,917)     (2,122)     (2,322)     (2,580)      (2,806)
Other assets                                           272         252         228         188         175         184         509          608
   Statutory profit sharing                               -           -           -           -           -           0           0            0
   Others                                              398         391         335         317         319         319         319          310
   (Provision for possible losses)                   (201)       (201)       (186)       (177)       (185)       (191)       (185)        (177)
   Prepaid expenses                                      76          62          79          48          41          56        374          475
Permanent assets                                     4,517       4,585       5,059       4,946       5,016       5,008       5,580        5,524
    Investments                                        823         843         900         896         960         966       1,045        1,030
      Investm, in associated and subsidiary co,        803         819         880         851         920         918         999          982
      Other investments                                234         231         229         230         225         230         231          229
      (Provision for losses)                         (215)       (208)       (210)       (185)       (185)       (182)       (184)        (181)
   Property and equipment                            2,730       2,723       3,052       2,886       2,827       2,767       3,119        3,015
      Land and buildings in use                      2,275       2,270       2,284       2,195       2,164       2,179       2,235        2,246
      Other property and equipment in use            3,446       3,534       3,936       3,873       3,922       3,914       4,326        4,310
      (Accumulated depreciation)                   (2,991)     (3,082)     (3,168)     (3,182)     (3,259)     (3,326)     (3,442)      (3,542)
   Leased assets                                       466         519         553         619         680         727         812          895
      Leases assets                                    579         636         676         749         824         890         992        1,103
      (Accumulated depreciation)                     (114)       (117)       (123)       (129)       (144)       (163)       (180)        (208)
   Deferred charges                                    498         500         554         544         549         548         604          584
      Organization and expansion costs                 882         907         970         991       1,022       1,054       1,149        1,159
      (Accumulated amortization)                     (384)       (407)       (415)       (447)       (473)       (506)       (545)        (575)




                                                                  Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 120
Table 115. Balançe Sheet - Liabilities
                                                                                                                              R$ million
                                                        Jun/04     Sep/04     Dec/04    Mar/05     Jun/05     Sep/05     Dec/05 Mar/06
LIABILITIES AND SHAREHOLDERS' EQUITY                   227,374    235,599    239,014   245,685    233,793    245,511    252,977 264,635
Current and long-term assets                           214,373    221,689    224,775   230,624    218,282    228,573    236,003 245,295
Deposits                                               115,795    115,079    115,532   120,096    117,952    122,672    137,658 139,195
   Demand deposits                                      29,425     30,191     28,991    29,340     27,923     27,694     35,802  31,878
   Savings deposits                                     28,939     29,915     31,069    31,418     31,607     32,093     32,844  32,975
    Interbank deposits                                   7,684      5,530      5,768     6,489      5,837      5,885      5,383   5,262
   Time deposits                                        49,747     49,444     49,665    52,769     52,520     56,907     63,495  68,948
    Investment deposits                                       -          -        38         81         66         93       134       131
Money market borrowing                                  37,132     42,003     44,527    43,086     36,168     35,989     30,508  42,758
   Own portfolio                                        32,371     36,679     41,600    39,603     33,637     31,308     23,122  31,249
   Third-party portfolio                                 4,761      5,324      2,927     3,483      2,532      4,681      7,386  11,509
Funds from acceptances and securities placed             1,397        768        776       852        569        558      3,166   2,789
    Foreign securities                                   1,397        768        776       852        569        558      3,166   2,789
Interbank accounts                                       1,945      2,034          6     1,521      1,902      2,059        980   1,477
   Receipts and payments pending settlement              1,945      2,034          6     1,520      1,902      2,059        979   1,476
   Correspondent banks                                        -          -         -          -          -          -         1         1
Interdepartmental accounts                               1,189      1,852      1,725     1,385      1,404      1,604      1,973   1,273
   Thrid-party funds in transit                          1,063      1,743      1,725     1,332      1,384      1,585      1,883   1,183
    Internal transfers of funds                            126        109          -         53         19         19        89        89
Borrowing                                               13,872     16,017     16,565    17,201      5,076      4,707      4,858   4,031
    Foreign borrowing                                   13,872     16,017     16,565    17,201      5,076      4,707      4,858   4,031
Domestic onlending – official institutions               8,448      8,778     10,611    10,629     11,823     12,147     13,370  13,053
    Federal Treasury                                     1,940      2,059      3,361     3,596      3,979      3,991      4,157   4,053
   National Development Bank (BNDES)                     3,322      3,484      3,559     3,663      3,674      3,779      3,908   3,960
    Fed,l Program for Capital Equip, Finan, (FINAME)     2,720      2,662      3,026     2,927      3,675      3,817      4,750   4,720
   Other institutions                                      466        574        665       443        495        560        556       320
Foreign onlending                                             1          9         2          1          1          1         0         0
Financial derivatives                                    1,996        370        523       674      1,473        664        571   1,446
Other accounts payable                                  32,599     34,780     34,508    35,180     41,915     48,171     42,918  39,274
   Collection of taxes and contributions                 2,168      2,328        255     1,967      1,852      2,614        344   3,258
    Foreign exchange portfolio                           5,480      7,509      7,870     7,969     13,845     20,011     17,500  10,687
   Stockholders and statutory distributions                644        262        423         84       887        386      1,169       229
   Taxes and social security                               984      1,013        980       954      1,064      1,362      1,599   1,503
   Trading and brokerage of securities                   4,217      3,759      3,627     3,343      2,867      2,633         58       127
    Financial and development funds                      1,825      1,814      1,867     1,954      2,029      1,919      1,932   1,981
   Special operations                                         2          2         2          2          2          2         2   1,102
   Perpetual Securities                                       -          -         -          -          -          -         -         2
   Subordineted Debt                                     5,573      6,637      6,833     7,093      7,301      7,482      7,840   8,095
   Actuarial liabilities                                 2,894      2,885      3,051     3,070      3,075      3,087      3,277   3.291
   Other liabilities                                     8,812      8,571      9,600     8,744      8,993      8,673      9,196   8.999
Deferred income                                            138        139        134       128        118        112        125       131
Shareholders’ equity                                    12,864     13,771     14,106    14,933     15,393     16,826     16,850  19,209
   Capital                                               8,366     10,302      9,864     9,864     10,797     10,797     10,797  10,797
   (Unpaid Capital)                                           -     (445)          -          -          -          -         -          -
     Capital reserves                                         5          5         5          5          5          5         5         5
     Revaluation reserves                                    24         26        26         26         23         23        23        23
     Revenue reserves                                    4,645      3,195      4,294     4,294      4,715      4,715      6,020   6,020
     Mark-to-market – securities and derivatives           (51)       (17)        43       (95)       (22)       (27)       130       146
     Retained earnings (accumulated losses)                   -          -         -          -          -          1         -         1
   (Treasury shares)                                     (126)      (126)      (126)     (126)      (126)      (126)      (126)    (126)
    Income accounts                                           -       833          -       965           -     1,438          -   2,343




121 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
8.2 Summarized Corporate Law Income Statement
Table 116. Summarized Corporate Law Income Statement
                                                                                                                          R$ million
                                                     2Q04      3Q04       4Q04       1Q05       2Q05       3Q05       4Q05    1Q06
Financial Intermediation Income                       8,159     6,941      8,003      8,046      7,936      8,993      8,104     9,394
   Loans                                              4,361     4,120      4,461      4,546      4,706      4,918      5,036     5,095
   Leasing                                               21         23         26         29         31         35        36        38
   Securities                                         2,930     2,660      2,922      3,166      2,849      3,076      3,333     3,521
   Financial Derivatives                              (194)         22       (89)       (31)       (38)       (85)     (229)     (139)
   Foreign Exchange Portfolio                           729     (224)        329        (50)       (35)       597      (501)       452
   Compulsory Investments                               312       340        353        386        423        451        429       427
Financial Intermediation Expenses                   (5,739)   (4,607)    (4,657)    (5,361)    (5,166)    (5,418)    (6,216)   (6,556)
   Money Market Funds                               (3,070)   (3,222)    (3,412)    (3,729)    (3,606)    (3,840)    (3,976)   (3,984)
   Borrowing, Assignments and Onlending             (1,467)     (315)      (357)      (371)      (337)      (412)      (482)     (502)
   Allowance for Loan Losses                        (1,201)   (1,071)      (887)    (1,261)    (1,222)    (1,166)    (1,757)   (2,071)
Gross Income from Financial Intermediation            2,421     2,334      3,346      2,685      2,770      3,574      1,888     2,838
Other Operating Income (Expenses)                   (1,276)     (969)    (2,259)    (1,182)    (1,030)    (1,104)      (569)   (1,873)
   Service Revenues                                   1,643     1,717      1,702      1,767      1,929      1,952      2,001     2,103
   Personnel Expenses                               (1,952)   (1,744)    (1,840)    (1,804)    (1,722)    (1,937)    (2,012)   (1,876)
   Other Administrative Expenses                    (1,381)   (1,344)    (1,633)    (1,407)    (1,366)    (1,401)    (1,498)   (1,362)
   Taxes                                              (360)     (385)      (406)      (395)      (440)      (455)      (432)     (454)
   Equity Int, in the Results of Subs, and Affil,       347     (275)      (149)        114      (442)        (49)       307     (154)
   Other Operating Revenues                             983     2,637      1,700      1,046      3,690      2,285        605     1,464
   Other Operating Expenses                           (555)   (1,576)    (1,633)      (503)    (2,681)    (1,500)        458   (1,595)
Operating Income                                      1,144     1,365      1,087      1,503      1,740      2,470      1,319       965
Non-operating Income                                     39         80        (4)         98         21         64        28        26
Income Before Taxes                                   1,184     1,445      1,083      1,601      1,760      2,533      1,347       991
   Income and Social Contribution Taxes               (239)     (545)      (187)      (559)      (570)      (979)      (447)     1,542
   Statutory Profit Sharing                           (140)       (67)     (125)        (78)     (176)      (116)      (163)     (190)
Net Income                                              805       833        771        965      1,014      1,438        737     2,343




                                                                Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 122
8.3 Income Statement with Reallocations
Table 117. Income Statement with Reallocations
                                                                                                                              R$ million
                                                       2Q04         3Q04       4Q04       1Q05       2Q05       3Q05       4Q05      1Q06
Financial Intermediation Income                        8,462        7,456      7,855      8,191      8,089      8,452      8,856     8,892
   Loans                                               4,361        4,120      4,461      4,546      4,706      4,918      5,036     5,095
   Leasing                                                 21           23         26         29         31         35         36        38
   Securities                                          2,930        2,660      2,922      3,166      2,849      3,076      3,333     3,521
   Financial Derivatives                               (194)            22       (89)       (31)       (38)       (85)     (229)      (139)
   Foreign Exchange Portfolio                            729        (224)        329        (50)       (35)       597      (501)        452
   Compulsory Investments                                312          340        353        386        423        451        429        427
   FX Gain (Loss) on Foreign Investments                 268        (354)      (202)        (40)     (533)      (202)        166      (266)
   Other Op, Inc, of a Fin, Intermed, Nature               35         869          54       184        686      (339)        587      (237)
Financial Intermediation Expenses                    (4,537)      (3,536)    (3,769)    (4,100)    (3,943)    (4,252)    (4,458) (4,486)
   Money Market Funds                                (3,070)      (3,222)    (3,412)    (3,729)    (3,606)    (3,840)    (3,976) (3,984)
   Borrowing, Assignments and Onlending              (1,467)        (315)      (357)      (371)      (337)      (412)      (482)      (502)
Gross Financial Margin                                 3,925        3,919      4,086      4,090      4,146      4,199      4,398     4,406
   Allowance for Loan Losses                           (903)        (856)      (868)    (1,061)    (1,002)      (966)    (1,498) (1,345)
Net Financial Margin                                   3,022        3,063      3,218      3,029      3,144      3,234      2,900     3,061
   Service Revenues                                    1,643        1,717      1,702      1,767      1,929      1,952      2,001     2,103
   Taxes on Revenues                                   (323)        (345)      (369)      (351)      (406)      (376)      (393)      (409)
Contribution Margin                                    4,341        4,435      4,551      4,446      4,667      4,810      4,509     4,755
Administrative Expenses                              (2,832)      (2,908)    (3,252)    (2,992)    (3,035)    (3,106)    (3,268) (3,156)
   Personnel Expenses                                (1,552)      (1,603)    (1,671)    (1,638)    (1,687)    (1,709)    (1,802) (1,781)
   Other Administrative Expenses                     (1,242)      (1,265)    (1,544)    (1,315)    (1,314)    (1,362)    (1,428) (1,331)
   Other Tax Expenses                                    (37)         (41)       (36)       (39)       (34)       (36)       (39)      (44)
Commercial Income                                      1,510        1,528      1,299      1,453      1,631      1,704      1,241     1,600
Legal Risk                                             (261)        (221)      (258)      (258)          22     (268)      (281)      (126)
   Legal Claims                                        (139)          (79)       (89)       (92)       (52)       (40)       (70)      (31)
   Labor Lawsuits                                      (122)        (141)      (169)      (166)          74     (228)      (211)       (95)
Other Operating Income (Expenses)                      (245)          (51)     (139)          84         86       156        359         (9)
   Eq, Interest in Resul, Subs, and Affil,                 79           79         53       144          91       153        134        106
   FX Other Operating Income/Expenses                  (324)        (131)      (191)        (60)        (5)          3       224      (115)
     Other Operating Income                              383          457        621        596        632        692      1,036        631
     Other Operating Expenses                          (707)        (588)      (812)      (656)      (637)      (689)      (812)      (746)
Operating Income                                       1,003        1,256        903      1,280      1,739      1,592      1,319     1,465
Non-operating Income                                       39           80        (4)         98         21         64         28        26
Income Before Taxes                                    1,043        1,336        899      1,378      1,760      1,655      1,347     1,491
   Income and Social Contribution Taxes                  (47)       (545)      (187)      (483)      (570)      (666)      (447)      (363)
    Interest on Own Capital Tax Benefit                  153             -       171           -       214           -       252           -
   Statutory Profit Sharing                            (140)          (67)     (125)        (78)     (176)      (116)      (163)      (190)
Recurring Income                                         856          724        586        817      1,014        873        737        938
Extraordinary Items                                      (51)         109        184        148           -       565           -    1,405
   Non Recurring Prov, for Credit Risks                     -            -       184           -          -          -          -
   Non Recurring Rever, Prov, for Credit Risks         (146)          (80)          -          -          -          -          -     (500)
   Recovery of Undue Taxes                               565             -          -       229           -       921           -          -
   Prov, for Retirement Incentive Plan                 (277)          189           -          -          -          -          -          -
   Provision for Non-recurring IR and CS               (192)             -          -       (76)          -     (313)           -          -
   Non Recurring Pasep/Cofins                               -            -          -        (6)          -       (43)          -          -
   Tax Credit Recorded                                                                                                          -    1,905
Net Income                                               805         833        771        965      1,014      1,438         737     2,343




123 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
8.4 Analytical Spread
Table 118. Analytical Spread
                                                                                      Average Balances in R$ million
                                                 2Q04    3Q04    4Q04    1Q05    2Q05      3Q05     4Q05     1Q06
Remunerated Assets                             176,216 183,393 193,649 199,964 189,646 192,275 197,940 213,563
Available Funds in Foreign Currency              7,813   9,266 10,648 11,664     7,290       536      403       245
Income from Avail, Funds in Foreign Currency       430       18      13       6     (1)         3      14          5
Annualized Rate - %                               23.9      0.8     0.5     0.2   (0.1)       2.5    14.4        8.1
Securities + Interbank Investments              83,162 87,637 91,346 92,440 83,983 93,515 94,116 104,485
Securities Income excluding Hedges               2,930   2,660   2,922   3,166   2,849     3,076    3,333    3,521
Annualized Rate - %                               14.9    12.7    13.4    14.4    14.3      13.8     14.9     14.2
Loans + Leasing                                 73,086 73,984 78,293 82,095 85,443 85,427 89,416 94,036
Loans + Leasing Income                           4,067   3,865   4,282   4,322   4,474     4,708    4,814    4,837
Annualized Rate - %                               24.2    22.6    23.7    22.8    22.6      23.9     23.3     22.2
Remunerated Compulsory Deposit                  11,614 11,946 12,760 13,129 12,237 12,065 13,255 14,017
Income from Compulsory Deposits                    312     340     353     386     423       451      429       427
Annualized Rate - %                               11.2    11.9    11.5    12.3    14.6      15.8     13.6     12.7
Other Remunerated Assets                           542     561     601     637     693       733      750       780
Other Income with Fin, Intermed, Charact,           37       40      37      37     37         35      37         32
Annualized Rate - %                               30.3    31.9    26.9    25.6    22.8      20.4     21.5     17.5
Tax Credits                                      8,913   8,651   8,333   8,127   7,535     6,926    6,720    7,352
Other Assets                                    34,189 35,055 32,820 33,401 35,807 36,388 37,668 38,155
Permanent Assets                                 4,471   4,538   4,776   4,945   5,008     5,008    5,392    5,496
TOTAL ASSETS                                   223,789 231,636 239,577 246,437 237,996 240,596 247,720 264,566

Remunerated Liabilities                        151,362 157,351 164,690 169,839 160,184 155,609 160,413 176,204
Savings Deposits                                28,392 29,718 30,452 31,458 31,447 32,077 32,313 33,121
Expenses with Savings Deposits                    (561)   (707)   (622)   (665)   (713)   (758)   (705)   (669)
Annualized Rate - %                                  8.1     9.9     8.4     8.7     9.4     9.8     9.0     8.3
Interbank Deposits                                7,580   6,279   5,502   6,621   6,060   5,992   5,442   5,056
Expenses with Interbank Deposits                    (52)    (69)    (80)  (101)     (93)  (179)   (127)   (202)
Annualized Rate - %                                  2.8     4.4     6.0     6.3     6.3   12.5      9.6   17.0
Time Deposits                                   48,928 49,164 50,078 51,596 52,809 55,201 61,725 67,378
Expenses with Time Deposits                     (1,124) (1,059) (1,113) (1,269) (1,285) (1,489) (1,790) (1,588)
Annualized Rate - %                                  9.5     8.9     9.2   10.2    10.1    11.2    12.1      9.8
Money Market Borrowing                          36,973 39,855 43,694 43,787 37,283 35,526 32,715 41,962
Expenses with Money Market Borrowing            (1,235) (1,351) (1,551) (1,645) (1,484) (1,376) (1,217) (1,442)
Annualized Rate - %                                14.0    14.3    15.0    15.9    16.9    16.4    15.7    14.5
Foreign Borrowing                               12,531 14,963 16,100 16,877 12,070        5,030   4,532   4,173
Exp, with Foreign Borr,, Onlending and Banks    (1,200)     (60)    (71)    (66)    (53)    (57)    (66)    (56)
Annualized Rate - %                               44.16    1.61    1.78    1.58    1.77    4.57    5.98    5.46
Onlending                                         8,266   8,731   9,762 10,544 11,424 12,067 12,681 13,310
Expenses with Onlending                           (159)   (139)   (151)   (175)   (140)   (208)   (287)   (291)
Annualized Rate - %                                7.91    6.52    6.35    6.80    4.99    7.07    9.37    9.04
Fin, and Develop, Funds + Subord,Debt             7,306   7,845   8,343   8,123   8,492   9,149   9,571   9,900
Expenses with Fin, and Develop, Funds             (108)   (116)   (134)   (130)   (144)   (148)   (129)   (155)
Annualized Rate - %                                6.07    6.03    6.60    6.57    6.98    6.62    5.50    6.41
Foreign Securities                                1,388     795     759     832     598     567   1,432   1,304
Expenses with Foreign Securities                    (24)    (16)    (15)    (21)    (15)    (16)  (114)     (58)
Annualized Rate - %                                7.15    8.55    7.88   10.65   10.27   11.70   35.67   19.18
Other Liabilities                               59,376 60,744 60,795 62,038 63,292 69,585 70,256 70,517
  Demand Deposits                               30,037 29,938 29,319 28,764 27,361 27,370 31,694 31,472
  Other Liabilities                             29,339 30,806 31,476 33,273 35,931 42,214 38,561 39,046
Shareholders’ Equity + Income Accounts          13,050 13,541 14,093 14,561 14,520 15,402 17,052 17,845
TOTAL LIAB, AND SHAREHOLDERS’ EQ,              223,789 231,636 239,577 246,437 237,996 240,596 247,720 264,566




                                                         Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 124
                                                                                                         Average Balances in R$ milion
                                                        2Q04       3Q04       4Q04       1Q05       2Q05      3Q05     4Q05      1Q06
Financial Intermediation Income                         8,462      7,456      7,855      8,191      8,089     8,451    8,856     8,892
Income from Remunerated Assets                          7,776      6,924      7,607      7,918      7,782     8,273    8,627     8,821
Income from Financial Derivatives                       (194)          22       (89)       (31)       (38)      (85)   (229)     (139)
FX Gain (Loss) on Foreign Investments                     268      (354)      (202)        (40)     (533)     (202)      166     (266)
Other FX Operations                                       300      (242)        317        (56)       (34)      594    (515)        447
Other Operating Income                                     (2)       828          17       147        650     (374)      550     (269)
Recovery of Write-offs                                    315        278        206        253        262       245      258        297
Financial Intermediation Expenses                     (4,537)    (3,536)    (3,769)    (4,100)    (3,943) (4,252) (4,458) (4,486)
Expenses with Remunerated Liabilities                 (4,463)    (3,517)    (3,737)    (4,073)    (3,927) (4,230) (4,435) (4,462)
Expenses with FGC on Demand Deposits                      (17)       (17)       (17)       (15)       (13)      (13)     (15)      (16)
Expenses with Debt Assumption Contracts                   (58)        (2)       (15)       (12)        (3)       (7)      (8)        (8)


Gross Financial Margin                                  3,925   3,919   4,086   4,090   4,146   4,199   4,398   4,406
Assets – Permanent Assets                             219,318 227,099 234,802 241,493 232,988 235,588 241,188 259,070
Remunerated Assets                                    176,216 183,393 193,649 199,964 189,646 192,275 197,940 213,563


Finan, Interm, Inc, / (Assets – Perman, Assets)           3.9        3.3        3.3        3.4       3.5        3.6       3.7       3.4
Finan, Inter, Inc, / (Assets – Perm, Assets) – Ann,      16.4       13.8       14.1       14.3      14.6       15.1      15.5      14.5
Finan, Inter, Exp, / (Assets – Permanent Assets)          2.1        1.6        1.6        1.7       1.7        1.8       1.8       1.7
Finan, Inter, Exp,/(Assets – Perm, Assets) – Ann,         8.5        6.4        6.6        7.0       6.9        7.4       7.6       7.1
GFM / (Assets – Permanent Assets)                         1.8        1.7        1.7        1.7       1.8        1.8       1.8       1.7
GFM / (Assets – Permanent Assets) – Ann,                  7.4        7.1        7.1        6.9       7.3        7.3       7.5       7.0
Finan, Intermed, Income / (Remunerated Assets)            4.8        4.1        4.1        4.1       4.3        4.4       4.5       4.2
Finan, Intermed, Inc, / (Remun, Assets) – Ann,           20.6       17.3       17.2       17.4      18.2       18.8      19.1      17.7
Finan, Intermed, Expenses / (Remun, Assets)               2.6        1.9        1.9        2.1       2.1        2.2       2.3       2.1
Finan, Interm, Expen,s / (Remun, Assets) – Ann,          10.7        7.9        8.0        8.5       8.6        9.1       9.3       8.7
GFM / (Remunerated Assets)                                2.2        2.1        2.1        2.0       2.2        2.2       2.2       2.1
GFM / (Remunerated Assets) – Ann,                         9.2        8.8        8.7        8.4       9.0        9.0       9.2       8.5




125 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Vice-Presidency of Finance, Capital Markets and Investor Relations

Vice-President
Aldo Luiz Mendes

Investor Relations Manager
Marco Geovanne Tobias da Silva

Divisional Managers
Gilberto Lourenço da Aparecida
Luís Gustavo do Lago Quinteiro

Analysts
Ananias Pereira da Silva Neto
Bruno Santos Garcia
Carla Sarkis Teixeira
Eduardo Amaral Pilenghi
Glauco Risperi Wermelinger
Luciana Elias Rezende Ramos
Mariana Reschke da Cunha
Raquel Castelo de Carvalho
Ricardo Borges de Araújo Rosa




                                              Banco do Brasil - Análise do Desempenho 1º Trimestre/2006 - 126
                          Financial Statements




                             th
                        1 Quarter 2006




127 - Banco do Brasil - Análise do Desempenho 1º Trimestre/2006
Banco do Brasil S.A.
Financial statements
In thousands of reais                                                                                                                           Quarter ended at 03.31.2006

BALANCE SHEET
                                                                                                     BB-Domestic and Foreign
                                                                                                            Branches                                   BB-Consolidated
ASSETS                                                                                                 03.31.2006   03.31.2005                        03.31.2006 03.31.2005

                                                                                            147.422.771 134.535.509
CURRENT ASSETS ............................................................................................................................. 138.893.009 129.480.306

                                                                                              4.051.245             14.404.154
Cash and cash equivalents ......................................................................................................................4.055.796           14.407.563

Interbank investments ..................................(Note 4)                                      40.140.414              20.561.969              31.089.280    15.157.633
                                                                                                      21.883.686
Money market .......................................................................................................            3.952.762             21.838.978     3.898.310
                                                                                                      18.256.728              16.609.207
Interbank deposits ......................................................................................................................              9.250.302    11.259.323

Securities and derivative financial
instruments .......................................................................(Note 5)              17.601.535              21.547.099     17.965.158 22.023.390
                                                                                                         11.616.414              12.533.271
Own portfolio ..............................................................................................................................    11.977.415 13.125.443
                                                                                                           4.948.416               7.793.892     4.951.345
Subject to repurchase agreements ..........................................................................................................................        7.797.487
                                                                                                              524.079                 524.402      524.079
Deposits with the Brazilian Central Bank ............................................................................................................................. 524.402
Pledged in guarantee .........................................................................                  79.972                       --     79.972                   --
Securities subject to repurchase agreements (with free movement)                                              191.219                        --    191.219                   --
Derivative financial instruments ......................................................................       241.435                 695.534      241.128             576.058

                                                                                                    24.894.933              23.332.461
Interbank accounts ............................................................................................................................... 24.912.043 23.347.967
                                                                                                      2.838.972               2.442.369               2.839.044   2.442.455
Payments and receipts pending settlement ..............................................................................................................................
Restricted deposits
                                                                                                    21.965.253              20.786.644               21.969.637 20.787.070
 Brazilian Central Bank deposits ............................................................................................................................
                                                                                                             9.935                   8.409                9.935
 National Treasury - rural credits receivable ............................................................................................................................8.409
                                                                                                             1.473                   2.633                1.473
 National Housing Financing System (SFH) ............................................................................................................................2.633
                                                                                                                  46                 5.031
Interbank onlendings ...............................................................................................................................         46           5.031
                                                                                                           79.254                  87.375
Correspondent banks ..............................................................................................................................       91.908      102.369

                                                                                                          12.409                140.229
Interdepartmental accounts ...........................................................................................................................    12.409      140.229
                                                                                                          12.409                140.229
Internal transfers of funds ............................................................................................................................. 12.409      140.229

Loan operations .............................................. (Note 6)                                 45.932.062               39.566.100              45.998.026 39.367.587
Loan operations
                                                                                                             829.311               1.117.791
 Public sector.........................................................................................................................................       831.981  1.125.732
                                                                                                        48.920.677               41.302.073              49.159.949 41.279.354
 Private sector .............................................................................................................................................
                                                                                                         (3.817.926)
(Allowance for loan losses) .....................................................................................................(2.853.764)              (3.993.904) (3.037.499)

Lease operations ........................................... (Note 6)                                          11.725                     3.340     8.548               (3.624)
Lease and sublease receivables
                                                                                                               54.009                   22.864
 Public sector ...........................................................................................................................         54.009               22.864
                                                                                                                 4.307                    2.100
 Private sector .............................................................................................................................     327.321              247.314
                                                                                                              (46.337)                (21.512)
(Unearned income from lease operations) .......................................................................................................  (356.880)            (250.747)
(Allowance for lease losses)........................................................................               (254)                   (112)  (15.902)             (23.055)

                                                                                                     14.174.822               14.796.490
Other receivables .......................................................................................................................           14.243.310 14.851.237
                                                                                                          121.369                    82.809            121.369
Receivables on guarantees honored ...........................................................................................................................          82.809
Foreign exchange portfolio ........................... (Note 8a)                                       9.129.823              10.444.104             9.129.823 10.444.104
                                                                                                          128.561                  110.156
Income receivable ..............................................................................................................................       142.894       167.535
                                                                                                              9.050                    1.969            66.326         61.629
Negotiation and intermediation of securities ...............................................................................................................................
Specific credits ..................................... (Note 8b)                                                     --            279.411                   --      279.411
                                                                                                                 575                   1.355
Special operations ................................................................................................................................        575           1.355
Sundry ........................................................... (Note 8c)                           6.026.582                5.885.642            6.027.278    5.827.474
(Provision for other losses) ................................... (Notes 6e & 6f)                      (1.241.138)              (2.008.956)          (1.244.955) (2.013.080)

                                                                                                            603.626                  183.667
Other assets ...........................................................................................................................                 608.439       188.324
Investments.............................................................................................               3                      4                3             4
Other assets .................................................. (Note 9)                                    303.415                  309.588             310.118       317.417
                                                                                                           (170.457)               (170.473)
(Provision for losses) ............................................................................................................................     (176.797)     (177.267)
                                                                                                            470.665                    44.548
Prepaid expenses ............................................................................................................................            475.115        48.170

                                                                                   118.690.364 109.413.716 120.218.262 111.258.995
LONG-TERM RECEIVABLES .............................................................................................................................

Interbank investments ........................................................... (Note 4) 4.510.485                            2.374.067              4.654.854     2.589.225
Money market ...................................................................................................... --             54.452                      --       54.452
                                                                                                          4.510.485
Interbank deposits............................................................................................                  2.319.615               4.654.854    2.534.773

Securities and derivative financial
instruments............................................................................. (Note 5) 49.852.630                   51.535.476             50.666.114    52.065.979
                                                                                                          18.595.754 15.606.513
Own portfolio .....................................................................................................................                19.282.582 16.038.125
                                                                                                          27.467.746 33.832.296                    27.566.288 33.930.249
Subject to repurchase agreements ..........................................................................................................................
                                                                                                            3.218.990               1.660.608       3.247.104      1.660.608
Deposits with the Brazilian Central Bank .............................................................................................................................
                                                                                                               390.539                364.014
Pledged in guarantee .............................................................................................................................    390.539          364.014
                                                                                                               179.601                 72.045
Derivative financial instruments.................................................................................................................... 179.601            72.983

Loan operations .................................................................... (Note 6) 41.845.581                         37.524.564                42.308.136 38.527.960
Loan operations
                                                                                                            2.585.374              3.385.163                 2.610.284             3.402.131
 Public sector .....................................................................................................................................................................................
                                                                                                          42.592.676 36.499.040                            43.030.559 37.485.486
 Private sector ........................................................................................................................................................................
                                                                                                         (3.332.469)
(Allowance for loan losses) ..................................................................................                    (2.359.639)              (3.332.707) (2.359.657)

Lease operations ................................................................... (Note 6)                    11.265                   5.454      21.226                               7.144
Lease and sublease receivable
                                                                                                                 51.891                 37.305
 Public sector ............................................................................................................................          51.891                            37.305
                                                                                                                   4.138                  2.873
 Private sector .............................................................................................................................       388.393                           272.542
                                                                                                              (44.520)                (34.546)
(Unearned income from lease operations) .......................................................................................................   (410.646)                          (296.426)
(Allowance for lease losses) .................................................................                     (244)                    (178)    (8.412)                           (6.277)

                                                                                                      22.470.403 17.974.155
Other receivables ..........................................................................................................................    22.567.932 18.068.687
                                                                                                             35.062                          --      35.062
Receivables on guarantees honored ...........................................................................................................................        --
                                                                                                             40.216                 43.835
Income receivable .............................................................................................................................      40.216     43.944
Specific credits ............................................................... (Note 8b)                 626.859                279.411           626.859    279.411
Sundry .............................................................................. (Note 8c)       23.702.958 17.776.137                     23.807.120 17.878.496
(Provision for other losses....................................... (Notes 6e & 6f)                    (1.934.692)                (125.228)      (1.941.325)   (133.164)

                                                                                             7.487.331               7.680.026
PERMANENT ASSETS ............................................................................................................................ 5.523.655                            4.946.060

                                                                                                              3.808.094              4.202.520
Investments ...........................................................................................................................                       1.030.281               896.352
Investments in subsidiary and associated companies................. (Note 19)
                                                                                                              2.274.647              2.570.001
 Domestic ....................................................................................................................................                   982.423              851.172
                                                                                                              1.494.182              1.591.512
 Foreign ...............................................................................................................................                               --                   --
                                                                                                                 193.401                 194.883
Other investments ..........................................................................................................................                     229.101              229.713
                                                                                                               (154.136)               (153.876)
(Provision for losses) .........................................................................................................................               (181.243)             (184.533)

                                                                                                    3.013.666               2.884.767                 3.014.610
Property and equipment ................................................................................................................................                            2.886.026
                                                                                                    2.246.370               2.195.240                 2.246.370
Land and buildings in use ...............................................................................................................................                          2.195.240
                                                                                                    4.303.394               3.864.781                 4.309.910
Other property and equipment in use .............................................................................................................................                  3.872.778
                                                                                                  (3.536.098)             (3.175.254)
(Depreciações acumuladas) ..........................................................................................................................(3.541.670)                   (3.181.992)

                                                                                                               88.920
Leased assets ........................................................................................................................55.356           894.927                        619.437
                                                                                                             106.161                  58.057
Leased assets ...............................................................................................................................       1.102.895                         748.923
                                                                                                             (17.241)                  (2.701)
(Accumulated depreciation) ..........................................................................................................................(207.968)                       (129.486)

                                                                                                         576.651                537.383
Deferred charges ....................................................................................................................................... 583.837                      544.245
                                                                                                      1.139.462                 974.103                1.158.765
Organization and expansion costs ..............................................................................................................................                       991.443
                                                                                                      (562.811)               (436.720)                 (574.928)
(Accumulated amortization) .....................................................................................................................................                     (447.198)

                                                                                                             273.600.466 251.629.251
Total ................................................................................................................................................    264.634.926 245.685.361




                                                                                                                                                                                                 2
Banco do Brasil S.A.
Financial statements
In thousands of reais

                                                                                                                BB-Domestic and Foreign
                                                                                                                                                        BB-Consolidated
                                                                                                                        Branches
L I A B I L I T I E S & S T O C K H O L D E R S' E Q U I T Y                                                     03.31.2006   03.31.2005            03.31.2006     03.31.2005

                                                                                                          200.393.671 200.121.472
CURRENT LIABILITIES .................................................................................................                               189.896.258    193.144.802
Deposits ................................................................ (Note 10)                               123.189.872 120.827.880           114.729.140    116.555.464
                                                                                                                    31.815.890 29.296.550
Demand deposits ......................................................................................................                               31.877.536     29.340.311
Savings deposits .......................................................................................            32.975.353 31.417.670            32.975.353     31.417.670
Interbank deposits .................................................................................                  8.986.260 7.969.037               402.251      3.571.051
Time deposits .............................................................................................         49.280.981 52.063.561            49.342.612     52.145.370
Sundry .............................................................................................                    131.388    81.062               131.388         81.062
Money market ...........................................................................                                 36.397.768   39.151.967     35.921.212     38.287.279
Own portfolio........................................................................................................... 26.812.931   36.250.222     26.346.375     35.430.133
Third-party portfolio ....................................................................................................9.389.839    2.901.745      9.379.839      2.857.146
Within free movement portfolio                                                                                              194.998            --       194.998              --
                                                                                                  402.859
Funds from acceptance and issue of securities .........................................................                                 136.460        363.786        103.831
Foreign securities...................................................................             402.859                               136.460        363.786        103.831
Interbank accounts ..................................................................................              1.471.850           1.517.538      1.477.313      1.520.579
Receipts and payments pending settlement ..................................................................        1.470.751           1.517.346      1.476.214      1.520.387
Correspondent banks .................................................................................................. 1.099                 192          1.099            192
Interdepartmental accounts ................................................................................. 1.272.575                 1.385.209      1.272.575      1.385.209
Third-party funds in transit ............................................................................    1.183.232                 1.331.791      1.183.232      1.331.791
Internal transfers of funds ....................................................................                89.343                    53.418         89.343         53.418
Borrowings............................................................ (Note 11)                                       2.836.617      15.124.124      1.647.800     13.614.328
Foreign borrowings ....................................................................................                2.836.617      15.124.124      1.647.800     13.614.328

Local onlendings - official institutions
institutions .............................................................(Note 12)                                       8.955.981 3.314.108        8.960.896  3.318.155
National Treasury ................................................................................................ 4.053.193        3.312.941        4.053.193  3.312.941
                                                                                                                          3.405.306         --       3.405.306
National Bank for Economic and Social Development (BNDES) .................................................................................................................... --
                                                                                                                          1.177.674         --       1.182.446
National Industrial Financing Authority (FINAME)...........................................................................................................           3.924
Other institutions ........................................................................................................ 319.808     1.167           319.951       1.290
Foreign onlendings ...............................................................                                      219.783         546.962             95             209
Foreign onlendings.................................................................................................     219.783         546.962             95             209
Derivative financial instruments............................ (Note 5b)                                                 1.271.956        646.303       1.270.517       570.613
Derivative financial instruments.................................................................                      1.271.956        646.303       1.270.517       570.613
Other liabilities ............................................................................................       24.374.410 17.470.921           24.252.924     17.789.135
Collection and payment of taxes and social contributions ..........................................                   3.257.303  1.966.211            3.257.686      1.966.723
Foreign exchange portfolio ............................................... (Note 14a)                                10.686.527  7.969.384           10.686.527      7.969.384
Social and statutory ...............................................................................................    228.473     84.392              229.104         84.392
                                                                                                                      1.254.824
Taxes and social security contributions .......................................................................................    771.663            1.446.993        923.702
Negotiation and intermediation of securities ................................................................. 70.091   6            5.668              127.165         71.639
Financial and development funds ............................ (Note 14b)                                                 105.284    165.524              105.284        165.524
Special operations..............................................................................                                     2.382                               2.382
Subordinated debt................................................. (Note 14e)                                                 --       237                    --           237
Hibrid instruments and capital debts .....................................                                            1.102.105          --           1.102.105              --
Sundry ................................................................ (Note 14d)                                    7.069.803  6.505.460            7.298.060      6.605.152

LONG-TERM LIABILITIES ..............................................................................                  53.866.870      36.446.640     55.398.743     37.479.420

Deposits ................................................................ (Note 10)                                  20.016.455        1.391.089     24.465.423      3.541.029
Interbank deposits .....................................................................................                410.680          767.601      4.859.649      2.917.541
Time deposits ...................................................................................................... 19.605.775          623.488     19.605.774        623.488

                                                                                                                         6.836.369 4.798.557
Deposits received under security repurchase agreements.................................................................................      6.836.369               4.798.557
Own portfolio........................................................................................................... 4.707.266 4.173.151 4.707.266               4.173.151
                                                                                                                         2.129.103
Third-party portfolio ....................................................................................................           625.406 2.129.103                 625.406

                                                                                                  200.000
Funds from acceptance and issue of securities ..............................................................                            747.934       2.424.828      4.017.314
Foreign securities............................................                                    200.000                               747.934       2.424.828      4.017.314

Borrowings ......................................................... (Note 11)                                     5.383.702           4.786.239      2.382.910      3.586.683
Foreign Borrowings ............................................................................................... 5.383.702           4.786.239      2.382.910      3.586.683

Local onlendings - official
institutions ...........................................................................(Note 12)                      4.087.373       7.306.127      4.091.871      7.310.466
National Treasury ........................................................................................................     --        282.995              --       282.995
                                                                                                                             554.352  3.662.796         554.352
National Economic Development Bank (BNDES) ......................................................................................................................... 3.662.796
                                                                                                                          3.533.021   2.918.381      3.537.519
National Industrial Financing Authority (FINAME) ........................................................................................................................ 2.922.720
Other institutions .........................................................................................................       --   441.955                    --       441.955

Foreign onlendings ............................................................................                          849.397          235.957           382               837
                                                                                                                         849.397
Foreign onlendings .........................................................................................................              235.957           382               837

Derivative financial instruments........................... (Note 5b)                                               175.730               103.212       175.730         103.212
                                                                                                                    1
Derivative financial instruments..................................................................................... 75.730              103.212       175.730         103.212

Other liabilities ................................................................................................ 16.317.844          17.077.525     15.021.230     14.121.322
                                                                                                                            --
Taxes and social security contributions .....................................................................................                   --        56.451         29.904
Negotiation and intermediation of securities ...............................................................        1.613.142           3.268.485              --         1.847
Financial and development funds ............................ (Note 14b)                                             1.876.037           1.788.178      1.876.037      1.788.178
Special operations..............................................................................                        2.382                              2.382
Subordinated debt................................................. (Note 14e)                                       8.094.798           7.092.958      8.094.798      7.092.958
Sundry ................................................................ (Note 14d)                                  4.731.485           4.927.904      4.991.562      5.208.435

DEFERRED INCOME .............................................................                                           130.873           128.240       130.873         128.240
Deferred income ........................................................................                                130.873           128.240       130.873         128.240

STOCKHOLDERS' EQUITY .................................... (Note 16)                                                 19.209.052         14.932.899     19.209.052     14.932.899

Capital ................................................................................................................. 10.797.337    9.864.153     10.797.337      9.864.153
Local residents ...........................................................................................               10.751.490    9.841.636     10.751.490      9.841.636
Foreign residents .....................................................................................                       45.847       22.517         45.847         22.517

Capital reserves ................................................................................................          4.778            4.763          4.778           4.763

Revaluation reserves .....................................................................................                23.310           25.701         23.310          25.701

Revenue reserves ..............................................................................................      6.020.150          4.294.251      6.020.150      4.294.251

Adj. to mkt value - securities & derivative fin. instr..(Note 16i)                                                      145.800           (94.799)      145.800          (94.799)

Retained earnings (accumulated losses) ........................................                                      2.343.456            964.609      2.343.456        964.609

(Treasury stock) ..................................................................................                    (125.779)         (125.779)      (125.779)      (125.779)

Total .................................................................................................................. 273.600.466 251.629.251     264.634.926    245.685.361

The accompanying notes are an integral part of these financial statements.


                                                                                                                                                                                  4
Banco do Brasil S.A.
Financial Statements
Business corporation act (in thousands of reais)                                                                                                                                      Period ended at 03.31.2006

STATEMENT OF INCOME
                                                                                                                                                         BB-Domestic and Foreign
                                                                                                                                                                 Branches                                              BB-Consolidated
                                                                                                                                                     1st Quarter/2006    1st Quarter/2005                     1st Quarter/2006   1st Quarter/2005

INCOME FROM FINANCIAL INTERMEDIATION.....................................................................................................................9.357.132                        8.052.707                      9.471.401           8.154.760
                                                                                                                                                         5.051.107
  Loans ................................................................................................................................................................................. 4.508.028                      5.095.441           4.546.158
                                                                                                                                                              11.500
  Leases.................................................................................................................................................................                     6.321                        115.065              87.514
  Securities .......................................................................................................................................... 3.555.448                         3.179.783                      3.521.208           3.166.117
  Derivative financial instruments................................................................................................                        (137.830)                         (27.591)                      (138.685)            (31.195)
                                                                                                                                                            450.319
 Foreign exchange, net .........................................................................................................................................                                  --                       451.784                   --
                                                                                                                                                            426.588
 Compulsory deposits ..............................................................................................................................................                         386.166                        426.588             386.166

                                                                                                                                                      (6.555.428)      (5.472.658)
EXPENSES FROM FINANCIAL INTERMEDIATION........................................................................................................................................ (6.633.571)                                                   (5.529.626)
                                                                                                                                                      (3.990.057)      (3.787.954)
 Deposits and funds obtained in the money market ......................................................................................................................................... (3.983.672)                                       (3.789.079)
                                                                                                                                                         (501.672)
 Borrowings and onlendings ...........................................................................................................................................   (371.163)           (501.868)                                         (371.397)
 Leases.................................................................................................................................................. (7.215)          (2.788)            (77.211)                                          (58.288)
 Foreign exchange, net ...................................................................................................................                      --        (49.195)                  --                                          (50.039)
 Allowance for loan losses ..............................................................................(Note 6e & 6f)                               (2.056.484)      (1.261.558)         (2.070.820)                                       (1.260.823)

NET FINANCIAL INTERMEDIATION INCOME...............................................                                                                               2.801.704               2.580.049                       2.837.830           2.625.134

                                                                                                                                                       (1.894.729) (1.116.410)
OTHER OPERATING INCOME (EXPENSES)................................................................................................................................................... (1.873.303)                                             (1.121.812)
 Banking service fees ............................................................................................... (Note 15a)                        1.934.485   1.631.835             2.102.901                                           1.766.749
 Personnel expenses................................................................................................ (Note 15b)                         (1.855.942) (1.785.970)          (1.875.557)                                          (1.803.866)
 Other administrative expenses .......................................................................... (Note 15c)                                   (1.344.745) (1.384.325)          (1.361.883)                                          (1.407.119)
 Taxes ................................................................................................................................................ (433.962)    (365.964)             (453.574)                                           (394.922)
                                                                                                                                                          (37.594)    221.157              (154.290)
 Equity in the earnings (loss) of subsidiary and associated companies.. (Note 19) ...................................................................................................................................                           113.545
 Other operating income .......................................................................................... (Note 15d)                           1.459.121   1.050.218             1.463.761                                           1.046.357
 Other operating expenses ..................................................................................... (Note 15e)                             (1.616.092)   (483.361)          (1.594.661)                                            (442.556)

                                                                                                                                   906.975
NET OPERATING INCOME ...................................................................................................................................                                 1.463.639                          964.527          1.503.322

NON-OPERATING INCOME ................................................(Note 15f)                                                                         25.019                             96.430                            26.303             97.819
 Income................................................................................................................................................ 53.537                            111.767                            55.071            114.103
 Expenses............................................................................................................................................ (28.518)                            (15.337)                          (28.768)           (16.284)

                                                                                                        931.994
PROFIT BEFORE TAXATION AND PROFIT SHARING .........................................................................................                                                      1.560.069                          990.830          1.601.141

INCOME TAX AND SOCIAL CONTRIBUTION ON NET INCOME (Note 17) .....................................................................                      1.599.658   (517.814)                                              1.541.550            (558.802)
 Income tax ............................................................................................................................................(588.959) (377.545)                                               (635.025)           (413.511)
  Social contribution on net income ...........................................................................................                         (221.179) (137.217)                                               (236.675)           (149.958)
  Deferred tax credits ........................................................................................................................ 2.409.796           (3.052)                                              2.413.250               4.667

PROFIT SHARING ...............................................................................................                                                     (188.983)               (77.675)                       (189.711)             (77.759)

                                                                                                                                               2.342.669                              964.580                           2.342.669
NET INCOME ...............................................................................................................................................................................................................................     964.580

Number of shares .......................................................................................................................................................810.617.415      810.617.415                     810.617.415          810.617.415
Treasury stock ...................................................................................................................................                     (11.257.677)     (11.257.677)                    (11.257.677)         (11.257.677)
Total shares used in calculation of net income per share .............................................................                                                  799.359.738      799.359.738                     799.359.738          799.359.738
Net income per share .........................................................................................................................                                2,93             1,21                            2,93                 1,21
                 Banco do Brasil S.A.                                                                                                                                                                                                                                                               Quarter ended at 03.31.2006
                 Financial Statements
                 Business corporation act (in thousands of reais)
                                                                                                                                                              STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                                                                                                                                                                                                           Revenue reserves                   Adjustment to Market
                                                                                                                                                                                                   Reavalution                                                 Value - Marketeable
                                                                                                                                                            Capital            Capital             Reserves in                               Expansion      Securities and Derivatives
                                                                           EVENT S                                                                                            Reserves              subsidiary     Legal       Statutory      Reserves       Banco        Subsidiary     Retained      Treasury         Total
                                                                                                                                                                                                  and associated                                            Múltiplo    and associated   Earning        Stock
                                                                                                                                                                                                    companies                                                             companies
                 Balances at 12.31.2004 .........................................................                                                        9.864.153                       4.769           25.717    585.997       347.291      3.360.963        46.796          (4.211)           --      (125.779)    14.105.696
                 Capital increase...........................................................................................                                               --               (6)               --         --             --             --           --              --           --              --           (6)
                 Adjustment to revaluation reserve                                                                                                                         --                --              13          --             --             --           --              --           --              --           13
                 Realization of revaluation reserve in subsidiary and associated companies ...(Note 16e)............................................                       --                --             (29)         --             --             --           --              --       29,00               --            0
                 Adjustment to market value - securities and derivative financial instruments ........                                                                     --
                                                                                                                                      .....(Nota 16f)...................................     --               --                        --             --     (37.932)       (133.813)           --              --     (171.745)
                                                                                                                                                                           --
                 Tax effect on adjustments - securities and derivative financial instruments.......(Note 16f)......................................................................          --               --          --            --             --      14.040          20.321            --              --       34.361
                 Net income for the period ..........................................................................................                                      --                --               --          --            --             --           --              --     964.580               --      964.580
                 Balances at 31.03.2005 ......................................................................................                           9.864.153                       4.763           25.701    585.997       347.291      3.360.963        22.904        (117.703)     964.609       (125.779)    14.932.899
                 Changes in the period...................................................................................                                                 --                (6)             (16)         --            --             --      (23.892)       (113.492)     964.609              --       827.203
                 Balances at 12.31.2005 ............................................................................                        10.797.337                           4.778                   23.351    793.677       471.899      4.754.574        36.847          93.080            --      (125.779)    16.849.764
                 Revaluations in subsidiary and associated companies..(Note 16e).................................................................              --                     --                    (41)          --            --             --           --              --          41               --            --
                 Adjustment to market value - securities and derivative financial instruments .(Note 16f)...................................                   --                     --                      --          --            --             --      14.864           6.673            --              --       21.537
                 Tax effect on adjustments - securities and derivative financial instruments....(Note 16f)......................................................................
                                                                                                                                                               --                     --                      --          --            --             --      (5.527)           (137)           --              --       (5.664)
                 Prescribed dividends.............................................................................                                             --                     --                      --          --            --             --           --              --         746               --          746
                 Net income for the period .............................................................................                                       --                     --                      --          --            --             --           --              --   2.342.669               --    2.342.669
                 Balances at 03.31.2006 .....................................................................................               10.797.337                           4.778                   23.310    793.677       471.899      4.754.574        46.184          99.616    2.343.456       (125.779)    19.209.052
                 Changes in the period...................................................................................                                     --                     --                     (41)         --            --             --        9.337           6.536    2.343.456              --     2.359.288
                 The accompanying notes are an integral part of these financial statements.




                                                                                                                                                                                                                                                                                                                          6




13/5/200618:13
Banco do Brasil S.A.
Financial Statements
In thousands of reais                                                                                                                                 Quarter ended at 03.31.2006

STATEMENT OF CHANGES IN FINANCIAL POSITION

                                                                                                  BB-Domestic and Foreign Branches                              BB-Consolidated
                                                                                                   1st quater/2006 1st quarter/2005                     1st quater/2006   1st quarter/2005

FINANCIAL RESOURCES WERE PROVIDED BY ............................................................................................
                                                                            16.974.437                        8.119.908                                     17.333.940          8.484.306

Net income .................................................................................................................
                                                                                                                 2.342.669             964.580               2.342.669              964.580

Adjustments to net income ............................................................................................
                                                                                                                   48.365                        (55.596)      111.263               105.327
Depreciation and amortization .....................................................................              169.351                        173.335        169.467               173.738
Depreciation of leased assets ............................................................................................
                                                                                                                     7.215                             --       70.519                46.262
Amortization of losses ..........................................................................................................
                                                                                                                           --                          --        2.945                 2.041
Equity in the earnings (loss) of subsidiary and associated companies.........................................................................
                                                                                                                   37.594                      (221.157)       154.290              (113.545)
Excess depreciation ................................................................................................... --                             --      (15.209)               (3.230)
Changes in the currency exchange rate ............................................................................
                                                                                                               (155.443)                         (41.471)     (263.498)              (34.131)
Provision for loss on investments ............................................................                             --                     11.979        (1.248)               11.454
Disposals of fixed assets .........................................................................................................................
                                                                                                                   (4.491)                        17.935        (4.491)               17.935
Other adjustments ............................................................................................................................... 3.783
                                                                                                                   (5.861)                                      (1.512)                4.803

Changes in deferred income..................................................................                       6.310                  (5.340)                6.310                (5.340)

Adj. to market value - Securities & derivative financial instr............                                        15.873                (94.094)                15.873              (137.384)

Third party funds:

Increase in liabilities................................................................................ 14.537.467                          7.195.987  14.661.051               7.290.379
Deposits ..................................................................................................................................
                                                                                                                       999.478              4.695.709    1.536.304              4.564.650
Deposits received under security repurchase agreements....................................................................................................
                                                                                                                  12.051.845                        -- 12.249.321                       --
Funds from acceptance and issue securities ........................................................                              --            25.219            --                75.993
Interbank and interdepartmental accounts ...............................................................                         --         1.172.197            --             1.175.234
Borrowings and onlendings ..........................................................................                   609.235                337.498            --               651.974
Derivative financial instruments ......................................................................................876.909                226.632      875.426                150.645
Other liabilities ..................................................................................................................
                                                                                                                                 --           738.732            --               671.883

Decrease in current assets and long-term receivables ..................................................................................
                                                                                                                            --      35.929                           --              39.463
Lease operations..............................................................................                              --      12.338                           --              16.824
Other receivables .................................................................................................................
                                                                                                                            --      23.591                           --              22.639

Disposal of assets and investments ..................................................................................
                                                                                                                 23.067                    77.947               37.734               87.290
Non-operating assets ........................................................................................................
                                                                                                                         --                22.580                   62               22.672
Property and equipment in use ..................................................................................................................
                                                                                                                 23.067                    55.367               23.067               55.367
Leased assets ...............................................................................................            --                      --             14.605                9.251

Revaluation reserve recognized by the equity method of accounting ..............................................................
                                                                                    41                             (16)                                             41                   (16)

Dividends received from subsidiary/associated companies ............................................................... 511
                                                                                        645                                                                    153.319              130.238

Interest on own capital receivable .............................................................................. -
                                                                                                                -                               --               5.680                 9.769
FINANCIAL RESOURCES WERE USED FOR: .....................................................................................................
                                                                               18.751.131                        9.192.277                                   19.105.807     9.570.565

Investments ...........................................................................................................
                                                                                                                      59.401                       75.404      207.887       179.487
Non-operating assets............................................................................................................
                                                                                                                               --                   7.057          292         7.145
Property and equipment in use ........................................................................................................................
                                                                                                                      51.914                       50.727       51.914        50.727
Leased assets ...................................................................................................... 7.487                         17.620      155.681       121.115
Investments ......................................................................................................................................
                                                                                                                               --                       --           --          500

Deferred charges ..................................................................................................................
                                                                                                                 61.696                        23.738           61.665         23.570

Increase in current assets and long-term receivables ................................................................................................ 13.486.511
                                                                                                                14.428.371                    7.609.453                     7.926.483
Interbank investments.........................................................................................   8.084.476                    1.122.190  6.748.212          1.227.986
Securities and derivative financial instruments.............................................. 2.139.338                                         831.884  2.161.156            604.009
Interbank and interdepartmental accounts..........................................................................  400.722                   1.227.733    399.226          1.234.859
Loan operations...................................................................................................................
                                                                                                                 2.422.170                    3.026.595  2.364.531          3.072.380
Lease operations ....................................................................................                   6.342                         --    10.265                  --
Other assets ................................................................................................................................ 1.401.051
                                                                                                                 1.277.188                               1.703.245          1.787.249
Other receivables.....................................................................................................................
                                                                                                                      98.135                          --    99.876                  --

Decrease in liabilities .........................................................................................  4.201.663                    1.483.682  5.349.744        1.441.025
Deposits received under security repurchase agreements......................................................................................................
                                                                                                                                 --             1.483.682          --       1.441.025
Funds from acceptance and issue of securities .................................................................         17.217                          --   377.037                --
Interbank and interdepartmental accounts.........................................................................     208.565                           --   203.111                --
Borrowings and onlendings ....................................................................................                   --                     -- 1.144.791                --
Other liabilities..............................................................................................................................
                                                                                                                   3.975.881                            -- 3.624.805                --

Increase (decrease) in cash and cash equivalents.................................... (1.776.694)                                           (1.072.369)       (1.771.867)   (1.086.259)
Change in cash and cash equivalents:
At the beginning of the period ...........................................................................................................................
                                                                                                             5.827.939                    15.476.523          5.827.663    15.493.822
At the end of the period ............................................................................................................................
                                                                                                             4.051.245                    14.404.154          4.055.796    14.407.563
.
                                                                                                           (1.776.694)
Increase/(Decrease) in cash and cash equivalents .........................................................................                 (1.072.369)       (1.771.867)   (1.086.259)
The accompanying notes are an integral part of these financial statements.
-   -   -
-   -   -
Banco do Brasil S.A.
Notes to the Financial Statements
In thousands of reais                                             Quarter ended at 03.31.2006


NOTES DO THE FINANCIAL STATEMENTS

Note 1 – The Bank and its Operations
Note 2 – Presentation of the Financial Statements
Note 3 – Accounting Practices
Note 4 – Interbank Investments
Note 5 – Securities and Derivative Financial Instruments
Note 6 – Loan and Lease Operations
Note 7 – Provisions for Vacation Pay, Paid Leave and Litigation
Note 8 – Other Receivables
Note 9 – Other Assets
Note 10 – Deposits
Note 11 – Borrowings - Foreign Borrowings
Note 12 – Local Onlendings - Official Institutions
Note 13 – Funds Obtained in Foreign Capital Markets
Note 14 – Other liabilities
Note 15 – Analysis of Income Statement Items
Note 16 – Stockholders' Equity
Note 17 – Income Tax and Social Contribution on Net Income
Note 18 – Tax Credits
Note 19 – Equity in the Earnings (Loss) of Subsidiary and Associated Companies
Note 20 – Related-party Transactions
Note 21 – Operating Limits - Basel Agreement
Note 22 – Balance Sheet by Currency and Foreign Exchange Exposure
Note 23 – Retirement and Pension and Health Plans - Post-Employment Benefits
Note 24 – Compensation Paid to Employees and Management
Note 25 – Assignment of Employees to External Organizations
Note 26 – Commitments, Responsibilities and Contingencies
Note 27 – Reclassifications for Comparative Purposes


NOTE 1 - The Bank and its Operations

Banco do Brasil S.A. is a publicly listed company established under private law, with both public and private
stockholders, and subject to the requirements of Brazilian corporate legislation. Its corporate purpose is to carry
out all the asset, liability and accessory banking operations, to provide banking services, intermediate and
originate financial transactions in various forms and perform any activity permitted to the institutions that are
part of the National Finance System. It is also the main financial agent of the Brazilian Federal Government and
is therefore required to carry out the functions attributed to it by law, specifically those of Art. 19 of Law
4595/1964.


NOTE 2 – Presentation of the Financial Statements

2.a) The financial statements of Banco do Brasil S.A. have been prepared in accordance with the requirements
of Law 6404/1976 and the rules and instructions issued by the Brazilian Central Bank (BACEN) and the
Brazilian Securities Commission (CVM). The financial statements labeled "BB - Domestic and Overseas
branches" include the Bank's operations in Brazil and its branches abroad. The consolidated amounts ("BB -
Consolidated") also include the financial subsidiaries and the foreign special purpose entities. The balances of
foreign branches and subsidiaries included in the financial statements of "BB - Domestic and Overseas
branches" and "BB - Consolidated", respectively, are as follows:




                                                                                                        9
                                                                                   Foreign branches and
                                                Foreign branches                        subsidiaries
                                             03.31.2006      03.31.2005            03.31.2006     03.31.2005
Current assets                               28,753,882      30,531,297            28,924,461     30,244,351
Long-term receivables                        11,302,177      10,114,213            11,637,779     10,539,935
Permanent assets                                133,828         181,969               154,335        210,368
Total assets                                 40,189,887      40,827,479            40,716,575     40,994,654

Current liabilities                          31,042,196        27,280,165          30,034,956      25,892,768
Long-term liabilities                         6,697,603        10,881,009           6,737,349      10,844,069
Deferred income                                   4,679             2,669               4,679           2,669
Long-term liabilities                         2,445,409         2,663,636           3,939,591       4,255,148
Total liabilities and stockholders'          40,189,887        40,827,479          40,716,575      40,994,654
equity

Net income for the quarter                        46,582            57,397              71,736           99,333

2.b) The consolidated financial statements (BB - Consolidated) comprise the domestic and foreign branches
and the foreign subsidiaries: Banco do Brasil - A.G. Vienna - Austria, BB - Leasing Company Ltd., Brazilian
American Merchant Bank - BAMB and the domestic subsidiaries: BB - Administração de Ativos - Distribuidora
de Títulos e Valores Mobiliários S.A., BB - Banco de Investimento S.A., BB - Leasing S.A. - Arrendamento
Mercantil and BB - Banco Popular do Brasil S.A. In order to comply with CVM Instruction No. 408, of August
18, 2004, the following Foreign Special Purpose Entities (EPE) have been included in the consolidation: Dollar
Diversified Payment Rights Finance Company and Nikkei Remittance Rights Finance Company. The asset and
liability and the income and expense accounts recording transactions between the foreign branches and
subsidiaries and Banco do Brasil S.A. were eliminated on consolidation. The translation into Brazilian reais of
the financial statements prepared in a foreign currency is carried out using current exchange rates, in
conformity with CVM Decision 28/1986. BB - Corretora de Seguros e Administradora de Bens S.A., BB -
Administradora de Cartões de Crédito S.A., BBTUR Viagens e Turismo Ltda., Cobra Tecnologia S.A., Ativos
S.A. and BB - Administradora de Consórcios S.A. were not included in the consolidation, in accordance with
article 23 of CVM Instruction 247/03.27.1996, as they do not materially affect the consolidated financial
statements, and Brasil Aconselhamento Financeiro S.A was also not included because it is in liquidation. The
investments in these companies were recorded on the equity method of accounting and the information
required by article 20 of CVM Instruction 247/02.051996 and CVM Deliberation 26/02.05.1986 is presented in
Notes 19 and 20, respectively.

NOTE 3 – Accounting practices

3.a) Net income is determined on the accrual basis of accounting.

3.b) The assets and liabilities in foreign currencies and those subject to indexation are adjusted in accordance
with the exchange rates or official indices as of the balance sheet date and are presented at realizable values.
The assets and liabilities with floating financial charges are recorded at present value, calculated pro rata
based on the variations in the contractual indices. Those with fixed financial charges are recorded at future
value, adjusted to reflect unearned income or unexpired expenses.

3.c) The allowance for loan losses is recorded based on the parameters of CMN Resolution 2682/1999, for
domestic branches and subsidiaries, as well as those abroad, taking into consideration the risks of the
transactions based on consistent and verifiable criteria, supported by internal and external information, and
covering all aspects established in the resolution..

3.d) Securities:
The securities purchased for the Bank's portfolio are recorded at the actual amount paid, including brokerage
charges and fees, and are classified based on the intention of management, in three different categories:




                                                                                                    10
3.d.1) Trading securities: these are securities purchased to be actively and frequently traded. They are
adjusted to market value on a monthly basis and increases and decreases in value are recorded in income
and expense accounts for the period;

3.d.2) Securities available for sale: these are securities which, although not actively and frequently traded,
can be traded at any time. They are adjusted to market value on a monthly basis and increases and
decreases in value are recorded, net of tax effects, in a separate stockholders' equity account;

3.d.3) Securities held to maturity: these are securities that the Bank intends and has the financial capacity to
hold to maturity. The financial capacity is supported by a cash flow projection that does not consider the
possibility of sale of these securities. They are not adjusted to market value.

The mark-to-market methodology used for securities was established following consistent and verifiable
criteria, which consider the average price of trading on the day of calculation or, if not available, pricing
models that estimate the probable net realizable value.

Income accrued on the securities, irrespective of the category in which they are classified, is appropriated on
a pro rata basis on the accrual basis of accounting up to the date of maturity or of final sale, on an
exponential or straight-line method, based on the contractual remuneration and purchase price, and
recorded directly in income for the period.

Losses with securities classified as available for sale and held to maturity, if judged not to be temporary, are
recorded directly in expense for the period and a new cost basis for the asset is determined.

Upon sale, the difference between the sale amount and the cost of purchase plus accrued income is
considered as a result of the transaction and is recorded on the date of the transaction as a gain or loss on
securities.

3.e) Derivative financial instruments:
Derivative financial instruments are recorded at market value at each monthly trial balance and balance
sheet date. Increases or decreases in value are recorded in income or expense accounts of the respective
financial instruments.

The mark-to-market methodology used for derivative financial instruments was established following
consistent and verifiable criteria, which consider the average price of trading on the date of calculation or, if
not available, pricing models that estimate the probable net realizable value, according to the characteristics
of the derivative.

Derivative financial instruments used to offset, in whole or in part, the risks arising from exposure to
variations in financial asset or liability market values are considered hedge instruments and are classified
according to their nature:

3.e.1) Market risk hedge - increases or decreases in value of the financial instruments classified in this
category, as well as of the item hedged, are recorded in income and expense accounts for the period;

3.e.2) Cash flow hedge - the effective amount of the increases or decreases in value of the financial
instruments classified in this category is recorded, net of tax effects, in a separate stockholders' equity
account. The effective amount is that in which the variation of the item hedged, directly related to the
corresponding risk, is offset by the variation in the financial instrument used for hedge, considering the
accumulated effect of the transaction. Other variations in these instruments are recorded directly in income
or expense accounts for the period.

3.f) Permanent assets:

3.f.1) Investments are stated at cost and, when material, are recorded on the equity method of accounting;

3.f.2) Property and equipment is stated at cost less depreciation calculated on the straight-line method at the
following annual rates: buildings and improvements - 4%; vehicles, installations and equipment - 20%; others
- 10%;




                                                                                                     11
3.f.3) Organization and expansion expenses recorded in deferred charges relate to: leasehold improvements
in properties owned by third parties for the installation of facilities, amortized at rates based on the rental
terms; cost of purchase and development of systems, amortized at the annual rate of 20%.

3.g) Vacations, paid leave and thirteenth month salaries are accrued monthly, in accordance with the period of
acquisition of the right.

3.h) Current benefits for existing employees are recognized on the accrual basis as the services are
provided. Post-employment benefits, comprising supplementary retirement benefits, medical assistance and
other benefits for which the Bank is responsible, were calculated at December 31, 2005 in accordance with
criteria established by CVM Deliberation 371/2000, considering a 6.3% annual interest rate, and are being
allocated monthly in accordance with this calculation, as shown in Note 23.

3.i) Corporate income tax is calculated at the basic rate of 15% plus a surcharge of 10% on taxable income
above a specific limit, and the social contribution on net income is calculated at the basic rate of 9% on
taxable income (Note 17(a)). Income tax and social contribution on net income tax credits are recorded in
accordance with the criteria mentioned in Note 18 and are supported by a study of future realization
prepared by management.


NOTE 4 – Interbank Investments

                                                                     Current and long-term
                                                         BB - Domestic
                                                      and foreign branches               BB - Consolidated
                                                    03.31.2006       03.31.2005      03.31.2006     03.31.2005
Repurchase agreements                               21,883,686        4,007,214      21,838,978      3,952,762
   Sales pending settlement - own operations        11,956,623        1,499,865      11,956,623      1,499,864
   Sales pending settlement - financed operations    9,927,063        2,507,349       9,882,355      2,452,898
Interbank deposits                                  20,445,728       18,757,788      13,905,156     13,623,062
Foreign currency deposits                            2,321,485          171,034               --       171,034
Total                                               44,650,899       22,936,036      35,744,134     17,746,858


NOTE 5 – Securities and Derivative Financial Instruments

Securities are classified in three categories: trading securities, securities available for sale and securities
held to maturity, and derivative financial instruments in derivates for trading and derivatives for hedging
purposes. Trading securities are adjusted to market value and the adjustments recorded as income or
expense for the period while similar adjustments for securities available for sale are recorded in a separate
stockholders' equity account. Securities held to maturity are stated at cost plus income accrued in the period.

The derivative financial instruments for trading, used at the request of clients or for own account, do not
comply with hedging criteria and are recorded at market value and the adjustments recorded as income or
expense. Derivatives for hedging purposes are used to protect exposures to risk or to modify the
characteristics of financial assets and liabilities. They are directly related to a specific transaction and are
also adjusted to market value with contra-entry to income or expense as they are considered a market risk
hedge.

The parameters for the calculation of market values of marketable securities and derivative financial
instruments are:
- the average of the representative trading price on the day of the calculation and the daily adjustment of
future market transactions reported by ANDIMA, BM&F, BOVESPA and the Brazilian Central Bank; or
- the net probable realizable value obtained through the use of curves of future interest rates, foreign exchange
rates, price and currency indices, all consistent with prices in effect during the year.

5.a) Securities


                                                                                                     12
The cost (plus accrued income) and market value of the securities at March 31, 2006 are as follows

                                                                                       BB - domestic and foreign branches
                                                                                                                    03.31.2006                                                                                      03.31.2005
                                                                                    Market value                                                               Total                                                   Total

                                              With no                                                                                                         Market         Unrealized gain                       Market       Unrealized gain
                                              maturity             0-30              31-180         181-360          Over 360               Cost              value              (loss)                Cost        Value            (loss)
             Maturity in days
1 - Trading securities                                   --               --           804,810       941,287            2,495,535          4,213,443          4,241,632                   --        11,241,512      11,210,735                   --
Domestic                                                 --               --                 --      941,287            2,495,535          4,213,443          4,241,632                   --        11,241,512      11,210,735                   --
 Financial Treasury Bills                                --               --             1,821             --             394,469            396,137            396,290                   --         8,444,072       8,443,223                   --
 Federal Treasury Bills                                  --               --           802,989       941,287            2,038,206          3,753,952          3,782,482                   --         2,652,306       2,627,263                   --
 Federal Treasury Notes                                  --               --                 --            --              62,860             63,354             62,860                   --           142,671         137,652                   --
 Shares in listed companies                              --               --                 --            --                   --                 --                 --                  --             2,463           2,597                   --

2 - Securities available for sale                 25,083           856,542            5,064,308    6,336,118           25,444,028         37,481,935         37,726,079           153,310           34,085,620      34,067,809            (20,322)
Domestic                                          17,576           853,479            4,864,119    6,124,890           24,090,018         35,785,456         35,950,082             73,793          31,895,794      31,934,735              36,430
 Financial Treasury Bills                              --          517,242            3,532,718    5,148,531           19,131,853         28,161,687         28,330,344           168,655           21,502,995      21,513,478              10,483
 Brazilian Central Bank Notes                          --                --                   --           --              33,597             33,616             33,597                (19)                  --              --                  --
 Federal Treasury Notes                                --                --                   --     169,560                    --           172,656            169,560            (3,096)             477,393         475,801             (4,102)
 Federal Government securities – other                 --                --             190,987            --           3,721,462          3,962,336          3,912,449           (49,887)           4,944,300       4,977,049              32,749
 Debentures                                            --                --                   --     440,815            1,157,814          1,587,847          1,598,629             10,782           3,992,003       4,005,727              13,724
 Agricultural debt securities                          --                --                   --           --              31,803             33,034             31,803            (1,231)              27,283          27,623                 339
 Shares in investment funds                            --              778                1,087        4,259                8,243             16,769             14,367            (2,402)              21,208          18,126             (3,083)
 Shares in social development funds               12,334                 --                   --           --                   --            12,334             12,334                  --            129,401         129,401                   --
 Shares in listed companies                          481                 --                   --           --                   --             1,545                481            (1,064)               1,545           1,461                 (84)
 Rural Product Bills (Commodities)                 4,761                 --                   --           --                   --             7,364              4,761            (2,603)               7,365          10,146               2,781
                                                       --          335,459            1,139,327      361,725                5,246          1,887,100          1,841,757           (45,343)             792,301         775,923            (16,377)

Foreign                                            7,507             3,063             200,189       211,228            1,354,010          1,696,479          1,775,997            79,517            2,189,826       2,133,074            (56,752)
 Eurobonds                                             --                --             15,302         4,300                    --            19,765             19,602             (163)               73,601          73,178               (423)
 Brazilian foreign debt securities                     --              966              16,327       163,957            1,352,701          1,454,659          1,533,951            79,291            1,830,818       1,774,563            (56,255)
 Foreign debt securities – other countries             --            2,097             168,560        42,971                1,309            215,483            214,937             (546)              276,745         275,706             (1,039)
 Shares in equity funds                            7,506                 --                  --            --                   --             6,572              7,506               934                8,662           9,626                 964
 Shares in listed companies                            1                 --                  --            --                   --                 --                 1                 1                    --              1                   1

3 - Securities held to maturity                          --         32,490            1,411,972    1,823,343           21,563,802         25,065,418         24,831,607                   --        27,036,452      26,355,036                   --
Domestic                                                 --          1,875            1,401,080    1,823,111           20,829,558         24,348,964         24,055,624                   --        25,779,909      24,996,563                   --
 Debentures                                              --              --                   --           --                   --                 --                 --                  --            50,982          47,984                   --
 Financial Treasury Bills                                --              --           1,398,239    1,398,338           18,037,432         20,848,215         20,834,009                   --        19,885,342      19,637,864                   --
 Federal Treasury Notes                                  --              --                   --           --           2,196,897          2,475,611          2,196,897                   --         2,271,842       1,801,768                   --
 Federal Government securities – other                   --              --                   --     422,838              590,646          1,013,466          1,013,484                   --         1,989,090       1,970,547                   --
 Commodities                                             --          1,875                2,841        1,935                4,583             11,672             11,234                   --         1,574,981       1,531,221                   --
 Other                                                   --              --                   --           --                   --                 --                 --                  --             7,672           7,179                   --

Foreign                                                --           30,615               10,892          232              734,244            716,454            775,983                 --           1,256,543       1,358,473                  --
 Eurobonds                                             --                --                   --           --              13,218             13,224             13,218                 --                   --              --                 --
 Brazilian foreign debt securities                     --           20,727                    --           --             720,828            682,035            741,555                 --           1,247,984       1,349,897                  --
 Certificates of deposit                               --                --                   --           --                   --                 --                 --                --               6,929           6,929                  --
 Foreign debt securities – other countries             --              196                    --         232                  198                611                626                 --               1,630           1,647                  --
 Other                                                 --            9,692               10,892            --                   --            20,584             20,584                 --                   --              --                 --
Total                                             25,083           889,032            7,281,090    9,100,748           49,503,365         66,851,629         66,799,318           153,310           72,363,584      71,633,580            (20,322)



                                                                                                                   03.31.2006                                                                                      03.31.2005
                                                                                     Market value                                                            Total                                                   Total

                                                With no                                                                                                 Market          Unrealized gain                           Market        Unrealized gain
                                                maturity              0-30            31-180        181-360          Over 360             Cost          Value               (loss)                  Cost          Value             (loss)
              Maturity in days
Total by portfolio                                   25,083           889,032         7,281,090     9,100,748           49,503,365        66,851,629 66,799,318                153,310           72,363,584       71,633,580              (20,322)
a) Own portfolio                                     25,083           889,032         5,969,392     4,821,217           18,286,944        30,138,835 29,991,670                 48,944           28,165,996       27,690,155                  1,808
b) Subject to repurchase agreements                           --               --     1,155,500     3,814,684           27,623,571        32,499,800 32,593,755                103,780           41,648,603       41,402,233              (22,169)
c) Deposits with the Brazilian Central Bank                   --               --        75,863       464,847            3,202,633         3,742,572     3,743,343                 497             2,185,010       2,179,261                     --
d) Pledged in guarantee                                       --               --        80,334               --          390,217           470,422          470,550                89              363,975         361,931                     39


                                                                                                                       03,31.2006                                                                                          03.31.2005
                                                                                               Market value                                                                       Total                                      Total

                                               With no                 Due in up                Due from               Due from            Due after                                      Market                   Cost              Market
                                               maturity               to one year              1 to 5 years          5 to 10 years         10 years                   Cost                Value                                      Value
              Maturity in years
Total by category                                    25,083           17,270,870                     42,387,251            6,341,267             774,847             66,851,629                66,799,319         72,363,584            71,633,580
1 - Trading securities                                        --      1,746,097                       2,495,535                      --                 --            4,213,443                 4,241,631         11,241,512            11,210,735
2 - Securities available for sale                    25,083           12,256,968                     24,368,979              300,201             774,847             37,572,768                37,726,078         34,085,620            34,067,810
3 - Securities held to maturity                               --      3,267,805                      15,522,737            6,041,066                    --           25,065,418                24,831,608         27,036,452            26,355,035




                                                                                                                                                                                                                   13
The portfolio after marking-to-market is as follows:
                                                                                                                  03.31.2006                                                         03.31.2005
                                                                                                                                     % of the                                                 % of the
                                                                                                                                         total                                                     total
                                                                                                                                     portfolio                                              portfolio %

Total by category                                                                                      67,033,129                            100%                        72,314,996                          100%
1 – Trading securities                                                                                  4,241,632                              6%                        11,210,735                           16%
2 – Securities available for sale                                                                      37,726,079                             56%                        34,067,809                           47%
3 – Securities held to maturity                                                                        25,065,418                             37%                        27,036,452                           37%

                                                                                           BB – Consolidated
                                                                                                       03.31.2006                                                                           03.31.2005
                                                                          Market value                                                       Total                                             Total

                                              With no                                                                    Cost              Market      Unrealized gain           Cost      Market       Unrealized gain
                                              maturity        0-30         31-180        181-360       Over 360                            Value           (loss)                          Value            (loss)
              Maturity in days
1 - Trading securities                               607        1,961       807,080    1,021,744          2,495,535           4,299,778       4,326,928                --     11,341,162 11,308,834                    --
Domestic                                             607            --      804,810      941,287          2,495,535           4,214,063       4,242,240                --     11,252,763 11,221,990                    --
 Financial Treasury Bills                              --           --        1,821            --           394,468             396,137         396,289                --      8,455,323 8,454,478                     --
 Federal Treasury Bills                                --           --      802,989      941,287          2,038,207           3,753,952       3,782,483                --      2,652,306 2,627,263                     --
 Federal Treasury Notes                                --           --            --           --            62,860              63,354          62,860                --        142,671    137,652                    --
 Shares in listed companies                          607            --            --           --                 --                620             607                --          2,463      2,597                    --
Foreign                                                --       1,961         2,270       80,457                  --             85,715          84,688                --         88,399     86,844                    --
 Eurobonds                                             --         833         2,270       54,850                  --             58,538          57,953                --         57,022     55,883                    --
 Brazilian foreign debt securities                     --       1,128             --      25,607                  --             27,177          26,735                --         24,739     24,452                    --
 Foreign debt securities – other countries             --           --            --           --                 --                  --              --               --          6,638      6,509                    --

2 - Securities available for sale                761,365      857,343     5,101,613    6,336,118         25,758,655       38,587,180         38,815,096         227,913       35,131,526 35,092,138             (41,897)
Domestic                                         718,584      854,280     4,898,116    6,124,890         24,266,677       36,749.199         36,862,547         113,347       32,786,673 32,807,577               18,395
 Financial Treasury Bills                              --     517,242     3,532,718    5,148,531         19,168,102       28,197,940         28,366,593         168,654       21,522,788 21,533,278               10,491
 Federal Treasury Bills                                --           --            --           --            33,598           33,616             33,598              (19)              --         --                   --
 Brazilian Central Bank Notes                          --           --            --     169,560                  --         172,656            169,560          (3,096)         477,393    475,801              (4,103)
 Federal Treasury Notes                                --           --      190,987            --         3,721,462        3,962,336          3,912,449         (49,887)       4,944,300 4,977,049                32,751
 Federal Government securities – other                 --           --            --     440,815          1,157,814        1,587,847          1,598,629           10,782       3,992,003 4,005,727                13,724
 Debentures                                            --           --       33,739            --           160,875          194,313            194,614              301         105,837    105,998                  161
 Agricultural debt securities                          --         778         1,087        4,259              8,243           16,769             14,367          (2,402)          21,208     18,126              (3,083)
 Shares in investment funds                       14,987            --            --           --             8,157           22,712             23,144              432         129,406    129,406                    --
 Shares in social development funds                  481            --            --           --                 --          10,321                481          (9,840)          10,321      1,461              (8,861)
 Shares in listed companies                      512,144            --            --           --                 --         469,472            512,144           42,672         403,724    420,601               16,877
 Shares in privately-held companies                2,986            --            --           --                 --           2,749              2,986              237               --         --                   --
 Shares in equity funds                          187,986            --            --           --             3,180          189,502            191,166            1,664         192,077    169,307             (22,770)
 Rural Product Bills (Commodities)                     --     335,760     1,139,440      361,725              5,246        1,887,513          1,842,171         (45,343)         974,288    958,311             (15,976)
 Securities in special status company                  --           --            --           --                 --             808                  --           (808)             808          --               (808)
 Other                                                 --         500           145            --                 --             645                645                --         12,520     12,512                   (8)
Foreign                                           42,781        3,063       203,497      211,228          1,491,978        1,837,981          1,952,547         114,566        2,344,853 2,284,561              (60,292)
 Eurobonds                                             --           --       15,302        4,300                  0           19,765             19,602            (163)          73,601     73,178                (423)
 Brazilian foreign debt securities                     --         966        19,255      163,957          1,451,243        1,530,417          1,635,421         105,004        1,923,618 1,876,111              (47,507)
 Foreign debt securities - other countries             --       2,097       168,560       42,971              1,309          215,483            214,937            (546)         276,745    275,706              (1,039)
 Shares in equity funds                           39,885            --            --           --                 --          32,210             39,885            7,675          40,129     45,384                5,255
 Shares in listed companies                        2,896            --            --           --                 --             977              2,896            1,919           1,199      1,593                  394
 Other                                                 --           --          380            --            39,426           39,129             39,806              677          29,561     12,589             (16,972)

3 - Securities held to maturity                          --    32,493     1,412,021    1,826,313         21,563,888       25,068,518         24,834,714                --     27,039,356 26,357,952                    --
 Domestic                                                --     1,875     1,401,080    1,823,111         20,829,558       24,348,963         24,055,623                --     25,779,909 24,996,563                    --
 Debentures                                              --         --            --           --                 --               --                 --               --         50,982     47,984                    --
 Financial Treasury Bills                                --         --    1,398,239    1,398,338         18,037,432       20,848,215         20,834,008                --     19,885,342 19,637,864                    --
 Federal Treasury Notes                                  --         --            --           --         2,196,897        2,475,611          2,196,897                --      2,271,842 1,801,768                     --
 Federal Government securities – other                   --         --            --     422,838            590,646        1,013,465          1,013,484                --      1,989,090 1,970,547                     --
 Commodities                                             --     1,875         2,841        1,935              4,583           11,672             11,234                --      1,574,981 1,531,221                     --
 Other                                                   --         --            --           --                 --               --                 --               --          7,672      7,179                    --
Foreign                                                  --    30,618        10,941        3,202            734,330          719,555            779,091                --      1,259,447 1,361,389                     --
 Brazilian foreign debt securities                       --         --            --           --            13,218           13,224             13,218                --              --         --                   --
 Certificates of deposit                                 --    20,727             --       2,954            720,828          684,989            744,509                --      1,250,694 1,352,608                     --
 Foreign debt securities - other countries               --         --            --           --                 --               --                 --               --          6,929      6,929                    --
 Other                                                   --       198            49          232                198              661                677                --          1,696      1,716                    --
 Brazilian foreign debt securities                       --     9,693        10,892           16                 86           20,681             20,687                --            128        136                    --

Total                                            761,972      891,797     7,320,714    9,184,175         49,818,079       67,955,476         67,976,738         227,913       73,512,044 72,758,924             (41,897)




                                                                                                     03,31.2006                                                                            03.31.2005
                                                                          Market value                                                     Total                                             Total

                                              With no                                                                                 Market         Unrealized gain                      Market        Unrealized gain
                                              maturity        0-30         31-180        181-360       Over 360        Cost           Value              (loss)               Cost        Value             (loss)
              Maturity in days
Total by portfolio                               761,972      891,797     7,320,714      9,184,175        49,818,079   67,955,476 67,976,738               222,913          73,512,044   72,758,924             (41,897)
a) Own portfolio                                 761,972      891,797     6,006,088      4,904,645        18,475,005   31,138,808 31,039,509                97,833          29,143,082   28,632,011             (28,514)
b) Subject to repurchase agreements                      --          --   1,158,429      3,814,684        27,722,113   32,575,559 32,695,225               129,494          41,819,977   41,585,721             (13,422)
c) Deposits with the Brazilian Central Bank              --          --      75,862        464,847         3,230,744    3,770,687      3,771,453              497            2,185,010    2,179,261                    --




                                                                                                                                                                                           14
d) Pledged in guarantee                         --        --       80,334               --         390,217          470,422         470,551             89             363,975     361,931                    39



                                                                                               03.31.2006                                                                                03.31.2005
                                                                       Market value                                                                   Total                                Total

                                    With no           Due in up          Due from               Due from           Due after                                  Market              Cost             Market
                                    maturity         to one year        1 to 5 years          5 to 10 years        10 years               Cost                Value                                Value
              Maturity in years
Total by category                       761,972      17,396,686         42,565,362                  6,379,327           873,389          67,955,476             67,976,738       73,512,044           72,758,924
1 - Trading securities                         607   1,830,785              2,495,534                         --               --         4,299,778              4,326,928       11,341,162           11,308,834
2 - Securities available for sale       761,365      12,295,074         24,547,091                   338,175            873,389          38,587,180             38,815,096       35,131,527           35,092,139
3 - Securities held to maturity                 --   3,270,827          15,522,737                  6,041,152                  --        25,068,518             24,834,714       27,039,355           26,357,951




The portfolio after marking-to-market is as follows:

                                                                                                   03.31.2006                                                03.31.2005
                                                                                                           % total                                                   % total
                                                                                                          portfolio                                                 portfolio
Total by portfolio                                                                           68,210,542        100%                                    73,440,328        100%
1 – Trading securities                                                                        4,326,928           6%                                   11,308,834          15%
2 – Securities available for sale                                                            38,815,096          57%                                   35,092,138          48%
3 – Securities held to maturity                                                              25,068,518          37%                                   27,039,356          37%

No reclassifications of marketable securities were made between the above categories during the period.


5.b) Derivative financial instruments

The Bank uses derivative financial instruments to manage, in a consolidated manner, its positions and to
meet clients' needs, classifying own positions into Hedging (market risk) and Trading, both with limits of
approval. This information is made available to the areas of pricing, trading, controls and calculation of
results, which are segregated within the Bank.
The models used to manage risks with derivatives are reviewed periodically and the decisions made follow
the best risk/return relationship, estimating possible losses based on the analysis of macroeconomic
scenarios.
The Bank uses appropriate tools and systems to manage the derivatives. Trading in new derivatives,
standardized or not, is subject to a previous risk analysis o.
The hedge strategy of the equity positions is in line with the macroeconomic analyses and is approved by
management.
Risk analysis of the subsidiaries is individual and its control consolidated.
The Bank uses statistical methods and simulations to measure the risks of its positions, including derivatives,
using models of values at risk sensibility and stress analysis.


Risks

The main risks inherent to derivative financial instruments resulting from the Bank's and its subsidiaries'
business are credit, market and operating risks, all similar to those related to other types of financial
instruments.
Market risk is the exposure created by a potential fluctuation in interest rates, exchange rates, quotations of
goods, prices quoted on stock markets and other values, and is a function of the type of product, the volume
of operations, the term and conditions of the contract and the underlying volatility.
Credit risk is the exposure to loss in the event of default by a counterparty to a transaction. The credit
exposure in futures contracts is minimized due to daily settlement in cash. Swap contracts registered at
CETIP and at BM&F are subject to credit risk if the counterparty is unable or unwilling to comply with his
contractual liabilities. Total credit exposure in swaps at March 31, 2006 is R$ 1,095,638 (R$ 949,642 at
March 31, 2005). The credit risk associated with options contracts is limited to the premiums paid on
purchased options.
Operating risk is the probability of financial losses resulting from failures or inadequacy of people, processes
and systems, or factors such as catastrophes or criminal activities.



                                                                                                                                                                                  15
The tables below show the notional amounts, as cost or market value, and the respective net exposures in
the balance sheet at March 31, 2006 for the derivative financial instruments classified in conformity with their
classification as Trading or Hedge instruments.


                                                  BB - Domestic and Foreign branches                                                                  BB-Consolidated

                                             03.31.2006                                 03.31.2005                                    03.31.2006                                03.31.2005

By index                Counte    Notional       Cost         Market        Notional        Market        Market        Notional        Cost          Market        Notional         Cost         Market
                         rparty   Amount                      value         amount          value         Value         Amount                        Value         Amount                        Value
Exchange trading
Futures contracts
Purchase commitments                658,917     (52,435)      (52,482)       1,380,977      (25,479)      (25,453)        641,544        (52,435)      (52,472)      1,380,977       (25,479)     (25,453)
DI                        B               --       2,082         2,082               --          731           731              --          2,082         2,082              --           731          731
U,S, dollar               B               --    (24,428)      (24,428)          38,485         1,764         1,764              --       (24,428)      (24,428)         38,485          1,764        1,764
Índex                     B               --         (49)          (49)              --          127           127              --            (49)          (49)             --           127          127
Foreign exchange          B         343,041     (36,757)      (36,757)         740,112      (28,101)      (28,101)        343,041        (36,757)      (36,757)        740,112       (28,101)     (28,101)
coupon
Libor                    (IF)       232,361          (1)          (48)        602,380                --         26        214,988             (1)          (38)         602,380              --        26
SCC                       B          83,515       6,718         6,718               --               --          --        83,515          6,718         6,718                --             --         --

Sales commitments                  5,360,905     (1,781)           614       2,607,631       14,236        16,074        5,360,905        (1,781)           614      2,607,631           14,236    16,074
DI                        B        3,184,589    (24,755)      (24,755)         668,607        7,166         7,166        3,184,589       (24,755)      (24,755)        668,607            7,166     7,166
U,S, dollar               B          301,585       1,544         1,544          20,130          622           622          301,585          1,544         1,544         20,130              622       622
Índex                     B                --        (58)          (58)              --         416           416                --           (58)          (58)             --             416       416
Foreign exchange          B          202,599      21,488        21,488         290,086       15,259        15,259          202,599         21,488        21,488        290,086           15,259    15,259
coupon
SCC                        B               --          --           --         298,773       (9,227)       (9,227)               --              --          --        298,773        (9,227)      (9,227)
Commodities               B                --         (1)          (1)               --           --             --              --             (1)         (1)              --
Libor                    (IF)      1,672,132           --       2,395        1,330,035            --         1,838       1,672,132               --      2,395       1,330,035               --     1,838

Fixed-term options
Asset position                      678,749      60,468        68,027         410,451       228,702       222,463         678,749         60,468        68,027          410,451      228,702      222,463
Securities                B          51,825      51,825        51,825         209,513       209,513       209,513          51,825         51,825        51,825          209,513      209,513      209,513
Currencies                B         626,924       8,643        16,202         200,938        19,189        12,950         626,924          8,643        16,202          200,938       19,189       12,950

Liability position                  646,524     (97,852)      (83,411)       (473,012) (229,094) (213,549)                646,524        (97,852)      (83,411)      (473,012) (229,094) (213,549)
Securities                B         (51,825)    (51,825)      (51,825)       (209,513) (209,513) (209,513)                (51,825)       (51,825)      (51,825)      (209,513) (209,513) (209,513)
Currencies                B         698,349     (46,027)      (31,586)       (263,499) (19,581)    (4,036)                698,349        (46,027)      (31,586)      (263,499) (19,581)    (4,036)

Options market
Purchase options                       8,696            87          87             200             65           31          10,439             152         147            5,842            315         76
Shares                    B                --            --          --            200             65           31               --              --          --             200             65         31
Financial assets &
derivatives                            8,696            87          87                 --            --            --       10,439             152         147            5,642            250         45

Short Position                     (370,787) (816,028) (823,012)                 (200)          (44)          (19)       (369,044)      (816,093)     (823,073)           5,442           (294)       (64)
Shares                    B        (379,483) (815,941) (822,925)                 (200)          (44)          (19)       (379,483)      (815,941)     (822,925)           (200)            (44)       (19)
Financial assets &
derivatives                            8,696        (87)          (87)                 --            --            --       10,439          (152)         (148)           5,642           (250)       (45)

Over-the-counter
trading
Swap contracts”
Asset position                     2,072,495    292,044       336,574        5,876,479      504,927       523,506        2,001,703       292,156       336,207       5,615,171       402,921      404,923
DI                        C        1,523,306    266,899       289,593        2,294,266      374,304       390,515        1,523,305       266,899       289,593       2,294,266       374,304      390,515
                          IF               --         --            --         291,038       58,851        61,029                --            --            --        271,448         50,890       51,916
Foreign currency          C           36,071        701           177           20,050          262           116           36,071           701           177          20,050            262          116
                          IF          77,548     20,194        40,955        1,857,749       56,645        63,402           77,548        20,194        40,955       1,704,725       (36,642)     (45,358)
Prefixed                  C          435,570      4,250         5,849          334,646        9,368         3,803          364,779         4,362         5,482         245,953          8,610        3,121
IGPM                      C                --         --            --          24,564        1,249           393                --            --            --         24,564          1,249          393
Other                     --               --         --            --       1,054,166        4,248         4,248                --            --            --      1,054,165          4,248        4,220

Liability position                15,742,292 (528,524) (529,800)            12,091,531 (512,106) (535,356)              15,742,292      (528,524)     (529,800)     11,943,517 (437,732) (459,621)
DI                        C       12,031,117 (379,043) (379,375)             9,751,619 (316,180) (316,629)              12,031,117      (379,043)     (379,375)      9,604,970 (316,054) (316,054)
                          IF         605,856 (46,669) (53,841)                 250,595 (76,349) (76,817)                   605,856       (46,669)      (53,841)        250,595 (76,349) (76,817)
Foreign currency          C          546,212 (14,475)    (7,394)               120,924     (793)     (399)                 546,212       (14,475)       (7,394)        120,924     (793)     (399)
                          IF           1,710   (1,140)   (1,140)               687,615 (24,102) (46,671)                     1,710        (1,140)       (1,140)        686,250    50,146    27,541
Prefixed                  C           77,422     (999)   (1,852)                14,571     (235)     (393)                  77,422          (999)       (1,852)         14,571     (235)     (394)
TMS                       C        2,151,074 (77,058) (77,058)                 585,394 (60,820) (60,820)                 2,151,074       (77,058)      (77,058)        585,394 (60,820) (60,820)
Referential rate (TR)     C          328,901   (9,140)   (9,140)               680,813 (33,627) (33,627)                   328,901        (9,140)       (9,140)        680,813 (33,627) (32,678)

Forwards contracts”
Asset position                     1,874,052      2,427        16,348                  --            --            --    1,874,025         2,427        16,348                 --            --            --
Foreign currency          IF         920,720      1,521        15,442                  --            --            --      920,693         1,521        15,442                 --            --            --
Other                     --         953,332        906           906                  --            --            --      953,332           906           906                 --            --            --

Liability position                 1,220,797     (5,847)      (10,967)                 --            --            --    1,128,198        (3,848)       (9,467)                --            --            --
Foreign currency          IF         786,477     (5,843)      (10,963)                 --            --            --      693,878        (3,844)       (9,463)                --            --            --
Other                     --         434,320         (4)           (4)                 --            --            --      434,320            (4)           (4)                --            --            --




                                                  BB- Domestic and Foreign branches                                                                   BB-Consolidated

                                             03.31.2006                                 03.31.2005                                    03.31.2006                                03.31.2005

By maturity                       Notional       Cost         Market        Notional        Cost          Market        Notional        Cost          Market        Notional         Cost         Market
                                  Amount                      value         Amount                        value         Amount                        value         Amount                        value
Forwards contracts
Sales commitments                   658,917              --            --    1,380,977               --            --     641,544                --            --    1,380,977
Up to 30 days                         6,513              --            --      135,881               --            --       6,513                --            --      135,881               --            --
31 to 60 days                        21,568              --            --       38,485               --            --      21,568                --            --       38,485               --            --
61 to 90 days                        82,520              --            --      181,247               --            --      82,520                --            --      181,247               --            --
91 to 180 days                       69,491              --            --      229,933               --            --      69,491                --            --      229,933               --            --
181 to 360 days                      91,757              --            --      236,361               --            --      91,757                --            --      236,361               --            --
1 to 5 years                        369,695              --            --      559,070               --            --     369,695                --            --      559,070               --            --




                                                                                                                                                                                    16
Over 5 years                       17,373               --            --              --            --            --              --              --            --

Sales commitments               5,360,905               --            --    2,607,631               --            --    5,360,905                 --            --    2,607,631               --            --
Up to 30 days                           --              --            --       50,109               --            --            --                 -             -       50,109               --            --
31 to 60 days                     301,585               --            --       13,706               --            --      301,585                 --            --       13,706               --            --
61 to 90 days                     173,729               --            --      175,916               --            --      173,729                 --            --      175,916               --            --
91 to 180 days                    907,190               --            --      634,063               --            --      907,190                 --            --      634,063               --            --
181 to 360 days                 1,120,506               --            --      794,337               --            --    1,120,506                 --            --      794,337               --            --
1 to 5 years                    2,705,883               --            --      811,561               --            --    2,705,883                 --            --      811,561               --            --
Over 5 years                      152,012               --            --      127,939               --            --      152,012                 --            --      127,939               --            --

Fixed-term options
Security maturity
Asset position                     51,825        51,825        51,825        209,513       209,513       209,513           51,825          51,825        51,825          209,513      209,513      209,513
Up to 30 days                      51,825        51,825        51,825        209,513       209,513       209,513           51,825          51,825        51,825          209,513      209,513      209,513

Liability position               (51,825)       (51,825)      (51,825)      (209,513) (209,513) (209,513)                (51,825)         (51,825)      (51,825)      (209,513) (209,513) (209,513)
Up to 30 days                    (51,825)       (51,825)      (51,825)      (209,513) (209,513) (209,513)                (51,825)         (51,825)      (51,825)      (209,513) (209,513) (209,513)

Currency maturity
Asset position                   626,924           8,643       16,202        200,938        19,189        12,950         626,924             8,643       16,202          200,938          19,189    12,950
Up to 30 days                    340,933           2,278        2,677         32,727         1,535         1,570         340,933             2,278        2,677           32,727           1,535     1,570
31 to 60 days                     41,229             735          773         70,646         1,614         1,901          41,229               735          773           70,646           1,614     1,901
61 to 90 days                     11,465             322          367         16,263         2,249         1,853          11,465               322          367           16,263           2,249     1,853
91 to 180 days                    50,920           8,527        7,917         44,823         6,958         4,662          50,920             8,527        7,917           44,823           6,958     4,662
181 to 360 days                  163,480         (2,827)        3,782         22,014         2,988         1,162         163,480           (2,827)        3,782           22,014           2,988     1,162
1 to 5 years                      18,897           (392)          686         14,465         3,845         1,802          18,897             (392)          686           14,465           3,845     1,802

Liability position               698,349        (46,027)      (31,586)      (263,499)      (19,581)       (4,036)        698,349          (46,027)      (31,586)      (263,499)       (19,581)      (4,036)
Up to 30 days                    177,631         (6,355)       (5,774)       (22,240)         (352)         (380)        177,631           (6,355)       (5,774)       (22,240)          (352)        (380)
31 to 60 days                     68,625         (3,362)       (3,419)       (17,470)         (419)         (246)         68,625           (3,362)       (3,419)       (17,470)          (419)        (246)
61 to 90 days                     73,391         (4,797)       (4,212)       (23,437)         (646)         (123)         73,391           (4,797)       (4,212)       (23,437)          (646)        (123)
91 to 180 days                   199,472        (13,253)       (9,530)       (89,267)       (6,638)       (2,615)        199,472          (13,253)       (9,530)       (89,267)        (6,638)      (2,615)
181 to 360 days                  163,500        (15,717)       (6,959)      (107,082)      (10,513)         (721)        163,500          (15,717)       (6,959)      (107,082)       (10,513)        (721)
1 to 5 years                      15,730         (2,543)       (1,692)        (4,003)       (1,013)            49         15,730           (2,543)       (1,692)        (4,003)        (1,013)           49

Options market
Purchase options
Shares                              8,696              87          87            200            65            31           10,439               152         147            5,842            315         76
Up to 30 days                       8,696              87          87            200            65            31            9,650               132         120            2,366            195         39
61 to 90 days                           --              --          --             --            --            --               --                --          --             983             77         14
91 to 180 days                          --              --          --             --            --            --             203                17          11            2,109             28         12
181 to 360 days                         --              --          --             --            --            --             586                 3          16              384             15         11

Sales options
Shares                          (370,787)      (816,028)     (823,012)          (200)          (44)          (19)       (369,044)        (816,093)     (823,073)           5,442           (294)       (64)
Up to 30 days                    (84,627)      (203,148)     (205,393)          (200)          (44)          (19)        (83,673)        (203,193)     (205,426)           1,966           (174)       (27)
31 to 60 days                    (48,740)      (107,975)     (109,114)             --            --            --        (48,740)        (107,975)     (109,114)               --             --         --
61 to 90 days                          --             --            --             --            --            --              --               --            --             983            (77)       (14)
91 to 180 days                  (235,100)      (499,905)     (503,488)             --            --            --       (234,897)        (499,922)     (503,499)           2,109            (28)       (12)
181 to 360 days                   (2,320)        (5,000)       (5,017)             --            --            --         (1,734)          (5,003)       (5,034)             384            (15)       (11)

Swap contracts
Asset                           2,072,495       292,044       336,574       5,876,479      504,927       523,506        2,001,703         292,156       336,207       5,615,171       402,921      404,923
Up to 30 days                     556,134        50,015        59,490       2,163,452      207,705       198,173          556,134          50,015        59,490       2,136,341       192,436      182,913
31 to 60 days                     268,029         3,502         5,533         504,849       39,040        41,464          268,029           3,502         5,533         453,102        24,395       26,865
61 to 90 days                     121,698        12,310        13,931         513,861       17,802        17,184          121,698          12,310        13,931         503,991        12,777       12,132
91 to 180 days                     77,085         6,280         7,460         772,388       66,899        71,547           77,085           6,280         7,460         772,215        61,873       66,532
181 to 360 days                   448,852        27,711        30,328       1,308,062      116,849       133,781          378,060          27,823        29,961       1,136,022        64,804       65,157
1 to 5 years                      600,697       192,226       219,832         613,867       56,632        61,357          600,697         192,226       219,832         613,500        46,636       51,324

Liability                      15,742,292 (528,524) (529,800)              12,091,531 (512,106) (535,356)              15,742,292        (528,524)     (529,800)     11,943,517 (437,732) (459,621)
Up to 30 days                     657,525 (31,869) (34,089)                   440,715 (69,772) (71,933)                   657,525         (31,869)      (34,089)        398,714 (49,309) (51,392)
31 to 60 days                     400,395 (17,672) (16,718)                   161,488   (8,181)   (9,308)                 400,395         (17,672)      (16,718)        130,009   (8,186)   (9,243)
61 to 90 days                     391,241 (39,782) (40,223)                   570,878 (74,752) (75,548)                   391,241         (39,782)      (40,223)        541,107 (65,752) (66,469)
91 to 180 days                  7,235,137 (253,704) (251,556)               4,888,346 (199,010) (200,481)               7,235,137        (253,704)     (251,556)      4,844,781 (189,166) (190,411)
181 to 360 days                 2,461,259 (76,887) (77,866)                 1,975,035 (71,640) (89,422)                 2,461,259         (76,887)      (77,866)      1,975,035 (46,640) (64,415)
1 to 5 years                    4,596,735 (108,610) (109,348)               4,055,069 (88,751) (88,664)                 4,596,735        (108,610)     (109,348)      4,053,871 (78,679) (77,691)

Forward contracts
Asset                           1,874,052          2,427       16,348                 --            --            --    1,874,025            2,427       16,348                 --            --            --
Up to 30 days                     535,162          1,608        3,839                 --            --            --      535,162            1,608        3,839                 --            --            --
31 to 60 days                     202,905          2,080        3,968                 --            --            --      202,885            2,080        3,968                 --            --            --
61 to 90 days                     370,279            794        2,791                 --            --            --      370,272              794        2,791                 --            --            --
91 to 180 days                    472,251            157        4,163                 --            --            --      472,251              157        4,163                 --            --            --
181 to 360 days                   291,705        (2,192)        1,567                 --            --            --      291,705          (2,192)        1,567                 --            --            --
1 to 5 years                        1,750            (20)          20                 --            --            --        1,750              (20)          20                 --            --            --

Liability                       1,220,797        (5,847)      (10,967)                --            --            --    1,128,198          (3,848)       (9,467)                --            --            --
Up to 30 days                     888,015             66       (2,582)                --            --            --      802,476              873       (2,088)                --            --            --
31 to 60 days                     113,933        (1,033)       (1,564)                --            --            --      113,902          (1,033)       (1,564)                --            --            --
61 to 90 days                      14,478          (351)       (1,194)                --            --            --       14,461            (351)       (1,194)                --            --            --
91 to 180 days                     47,678          (803)       (1,401)                --            --            --       47,589            (801)       (1,401)                --            --            --
181 to 360 days                   124,947           (91)         (812)                --            --            --      124,766             (83)         (811)                --            --            --
1 to 5 years                       27,837        (2,785)       (2,438)                --            --            --       25,004          (2,453)       (2,409)                --            --            --
5 to 10 years                       3,909          (850)         (976)                --            --            --                                                            --            --            --




5b,2) Hedge derivatives:
                                                  BB - Domestic and Foreign branches                                                                   BB-Consolidated

                                           03.31.2006                                  03.31.2005                                      03.31.2006                                03.31.2005

By index             Counte    Notional         Cost         Market        Notional        Market        Market        Notional          Cost          Market        Notional         Cost         Market
                      rparty   Amount                        value         amount          value         Value         Amount                          Value         Amount                        Value
Over-the-counter
trading
Swap contracts
Asset position                            --            --            --     125,450        21,184        21,579                  --              --            --       125,450          21,184    21,579
DI                     C                  --            --            --      66,647         6,653         6,957                  --              --            --        66,647           6,653     6,957




                                                                                                                                                                                     17
                     IF              --          --            --      58,803      14,531     14,622              --            --            --        58,803         14,531     14,622
                                                                                                                                                                            --         --
Liability position                   --          --            --     (33,039)       (417)     (305)              --            --            --       (33,039)         (417)      (305)
Foreign currency     C               --          --            --     (33,039)       (417)     (305)              --            --            --       (33,039)         (417)      (305)




                                           BB - Domestic and Foreign branches                                                        BB-Consolidated

                                      03.31.2006                               03.31.2005                              03.31.2006                             03.31.2005

By maturity               Notional        Cost        Market        Notional      Market     Market    Notional          Cost        Market        Notional        Cost          Market
                          Amount                      value         amount        value      Value     Amount                        Value         Amount                        Value
Swap contracts
Asset                                --          --            --     125,450      21,184     21,579              --            --            --       125,450         21,184     21,579
Up to 30 days                        --          --            --      23,587       3,735      3,825              --            --            --        23,587          3,735      3,825
31 to 60 days                        --          --            --      26,009       1,106      1,214              --            --            --        26,009          1,106      1,214
61 to 90 days                        --          --            --      14,600       1,631      1,709              --            --            --        14,600          1,631      1,709
91 to 180 days                       --          --            --       1,350          33         43              --            --            --         1,350             33         43
181 to 360 days                      --          --            --      59,904      14,679     14,788              --            --            --        59,904         14,679     14,788

Liability                            --          --            --     (33,039)       (417)     (305)              --            --            --       (33,039)         (417)      (305)
Up to 30 days                        --          --            --     (14,653)       (278)     (226)              --            --            --       (14,653)         (278)      (226)
31 to 60 days                        --          --            --      (7,972)        (50)      (45)              --            --            --        (7,972)          (50)       (45)
61 to 90 days                        --          --            --      (7,810)        (68)      (32)              --            --            --        (7,810)          (68)       (32)
91 to 180 days                       --          --            --      (2,604)        (21)       (2)              --            --            --        (2,604)          (21)        (2)


The margin given as guarantee for transactions with derivative financial instruments is comprised of
Financial Treasury Bills (LFT) amounting to R$ 470,551 (R$ 361,931 at March 31, 2005),

The following tables show the derivative financial instruments portfolio for market risk hedges and the
respective hedged items, which terminated on October 13, 2005 because of the maturity of the
securities comprising the hedged item.
                                                                                             BB-Consolidated
- Hedged item”:
                                                                                               Market Value
Asset                                                                                    03.31.2006 03.31.2005
Foreign exchange securities                                                                       --      58,592
  NBC-E                                                                                           --      58,592

- Derivatives for market risk hedge:                                                                                                          BB-Consolidated
:
                                                                                                                                         Notional amount
Liability                                                                                                                             03.31.2006 03.31.2005
Derivative financial instruments                                                                                                               --    151,615
  Swap contracts                                                                                                                               --    151,615

5.c) Adjustment to market value - securities and derivatives

The mark-to-market accounting requirement established by Circulars Letters 3068 and 3082 and later
regulations resulted in the following income and expense being recognized in the period:


                                                                                                                         BB-Consolidated
                                                                                                                   st               st
                                                                                                                  1 quarter/2006  1 quarter/2005
Securities                                                                                                                 8,697         (4,359)
Derivatives                                                                                                               21,931          24,262
Total                                                                                                                     30,628          19,903




                                                                                                                                                                  18
NOTE 6 – Loan and Lease Operations


6.a) Details of the loan portfolio and loan operations classified as "Other receivables":

                                                        BB- Domestic and
                                                         Foreign branches            BB-Consolidated
                                                      03.31.2006 03.31.2005       03.31.2006 03.31.2005
Loan operations                                       87,777,643 77,090,664       88,306,162 77,895,547
Loans and bills discounted                            36,884,364 36,181,640       37,142,233 36,677,234
Financing                                             21,144,453 15,039,290       21,591,725 15,532,699
Rural and agribusiness financing                      36,898,815 31,082,770       36,898,815 31,082,770
Financing of securities                                       406         367              --          --
(Allowance for loan losses)                           (7,150,395) (5,213,403)     (7,326,611) (5,397,156)
Other receivables with loan
Loan characteristics                                   8,811,590     9,243,675      9,459,757 9,708,155
Receivables from guarantees honored                      156,430        82,809        156,430      82,809
Advances on foreign exchange contracts                 6,834,853     7,742,951      6,834,853 7,742,951
Sundry                                                 2,200,245     1,645,254      2,848,788 2,111,195
(Provision for other losses)                           (379,938)     (227,339)      (380,314) (228,800)
Lease operations                                          22,990         8,794          29,774      3,520
Lease operations                                          23,488         9,084          54,088     32,852
(Allowance for lease losses)                               (498)         (290)        (24,314)   (29,332)
Total                                                 96,612,223    86,343,133     97,795,693 87,607,223


6.b) Details of the loan portfolio by sector, including operations with loan characteristics classified as
"Other receivables":

                           BB- Domestic and Foreign branches           BB-Consolidated
                            03.31.2006   % 03.31.2005      %   03.31.2006   % 03.31.2005    %
PUBLIC SECTOR                3,448,764 3.5 4,554,078      5.0   3,476,346 3.5 4,578,988 5.0
Domestic                       446,462 0.5     559,509    0.6     446,462 0.5     559,509 0.6
Government                     206,009 0.2     411,561    0.4     206,009 0.2     411,561 0.4
 Direct administration         185,795 0.2     220,165    0.2     185,795 0.2     220,165 0.2
 Indirect administration        20,214    --   191,396    0.2      20,214    --   191,396 0.2
Business entities              240,453 0.3     147,948    0.2     240,453 0.3     147,948 0.2
 Industry                      152,932 0.2      49,885    0.1     152,932 0.2      49,885 0.1
 Commerce                            --   --        110     --          --   --        110   --
 Financial services             68,765 0.1      68,376    0.1      68,765 0.1      68,376 0.1
 Other services                 18,756    --    29,577      --     18,756    --    29,577    --
Foreign                      3,002,302 3.0 3,994,569      4.4   3,029,884 3.0 4,019,479 4.4
Business entities            3,002,302 3.0 3,994,569      4.4   3,029,884 3.0 4,019,479 4.4
 Industry                      165,541 0.2            --    --    354,453 0.3            --  --
 Other services              2,836,761 2.8 3,994,569      4.4   2,675,431 2.7 4,019,479 4.4
PRIVATE SECTOR             100,694,289 96.5 87,230,087 95.0 102,050,586 96.5 88,683,523 95.0
Domestic                    95,539,926 91.7 82,801,839 90.2    96,208,471 91.2 83,245,636 89.2
Rural                       34,242,246 32.9 29,398,415 32.0    34,242,246 32.5 29,398,415 31.5
 Industry                   22,580,067 21.7 19,267,596 21.0    22,819,684 21.6 19,413,264 20.8
 Commerce                   11,311,333 10.9 9,856,408 10.7     11,486,876 10.9 9,988,406 10.7
 Financial services                194    --        361     --        194    --        361   --
 Other services              9,666,926 9.3 8,846,754      9.7   9,794,843 9.3 9,020,381 9.7
  Individuals               17,739,159 16.9 15,432,305 16.8    17,864,628 16.9 15,424,809 16.5
Foreign                      5,154,363 4.8 4,428,248      4.8   5,842,115 5.3 5,437,887 5.8
BB Group                        38,300    --      7,038     --     12,321    --    23,600    --


                                                                                               19
 Commerce                         595,271 0.5      325,593   0.4     667,782 0.6      333,033 0.4
  Industry                      3,762,037 3.5 3,316,395      3.6   4,243,438 3.8 3,947,806 4.2
  Other companies                  70,986 0.1      157,607   0.2      70,986 0.1      331,456 0.4
  Other banks                     503,402 0.5            --    --    504,343 0.5      408,622 0.4
  Individuals                       8,237     --    13,515     --      8,326     --    13,836     --
  Other services                  176,130 0.2      608,100   0.6     334,919 0.3      379,534 0.4
 Total                        104,143,054 100.0 91,784,165 100.0 105,526,932 100.0 93,262,511 100.0

6.c) Details of the loan portfolio by risk level and maturity, including operations with loan
characteristics classified as "Other receivables":
                                           BB- Domestic and Foreign branches
                                                  Loans falling due
Risk                                                                  Over 360                Total                Total
Level       0-15     16-30     31-60     61-90   91-180    181-360                         portfolio    %       portfolio    %

                                                                                         03.31.2006           03.31.2005
 AA       963,493   613,729 1,076,300 1,341,384    2,580,897    2,564,990    8,554,416    17,695,209    18     17,555,238  20
  A     1,004,709   911,124 1,496,835 1,711,802    4,315,412    7,860,051   10,435,593    27,735,526    29     25,181,037  29
  B       919,177   583,307   872,001 1,345,882    2,693,911   10,811,527   14,192,659    31,418,464    33     29,571,444  34
  C       448,197   268,611   465,069   584,921    1,267,294    4,060,377    8,052,188    15,146,657    15     11,023,764  13
  D        86,477    38,628    82,341   127,508      168,860      645,265    2,101,665     3,250,744     3      2,243,416   3
  E        23,061     9,205    10,697     8,857       27,216       97,656      539,426       716,118     1        361,318   --
  F         5,011     2,086     5,096     3,677       11,259       35,044      193,998       256,171     --       201,909   --
 G          3,750       830     2,013     3,542        7,733       15,812      368,038       401,718     --       120,494   --
  H        15,580     4,744     9,859    13,779       30,266       69,534      992,667     1,136,429     1        761,015   1
Total   3,469,455 2,432,264 4,020,211 5,141,352   11,102,848   26,160,256   45,430,650    97,757,036   100     87,019,635 100

                                          BB- Domestic and Foreign branches
                                                   Loans overdue
Risk                                                                 Over 360                 Total                Total
Level       0-15     16-30     31-60     61-90   91-180    181-360                         portfolio    %       portfolio    %

                                                                                         03.31.2006           03.31.2005
 B        21,266   339,099    30,024      9,204        1,275          128          66        401,062     6        425,708   9
 C        16,837   339,927   439,848     38,344       45,215        1,655          14        881,840    14        728,655  15
 D         5,248   140,156   151,382    251,277       96,852       26,075         528        671,518    11        496,180  10
 E         1,686    52,794    61,229     83,787      308,715       51,000           --       559,211     9        464,052  10
 F           601    21,889    23,329     30,142      284,792       55,603       3,260        419,616     7        326,783   7
 G           639    15,735    16,540     17,520      291,522       79,379      10,862        432,197     7        300,971   6
 H         3,953    96,513   104,645     90,475      460,274    1,979,450     285,264      3,020,574    46      2,022,181  43
Total     50,230 1,006,113   826,997    520,749    1,488,645    2,193,290     299,994      6,386,018   100      4,764,530 100


                                                     BB-Consolidated
                                                     Loans falling due
Risk                                                                            Over          Total                Total
Level       0-15     16-30     31-60     61-90      91-180      181-360          360       portfolio    %       portfolio    %
                                                                                         03.31.2006           03.31.2005
 AA       974,410   615,711 1,082,002 1,345,515    2,592,709    2,552,454    8,652,120    17,814,921    18     17,771,016    20
  A     1,015,214   914,846 1,504,391 1,719,197    4,346,967    8,081,790   10,741,745    28,324,150    29     25,660,192    29
  B       925,791   590,294   886,399 1,359,301    2,730,420   10,884,287   14,361,347    31,737,839    32     30,020,210    34
  C       450,641   270,394   473,358   591,697    1,292,562    4,087,476    8,073,863    15,239,991    16     11,109,280    13
  D        88,335    39,791    84,873   129,984      177,429      663,090    2,123,364     3,306,866     3      2,288,744     3
  E        23,292    10,071    11,707     9,142       30,020      102,713      544,936       731,881     1        366,171     --
  F         5,100     2,120     5,183     3,755       11,466       35,369      194,450       257,443     --       203,444     --
 G          3,812       856     2,067     3,594        7,882       16,044      368,264       402,519     --       121,514     --
  H        23,111     4,931    10,251    14,136       31,231       70,993    1,122,340     1,276,993     1        930,258     1
Total   3,509,706 2,449,014 4,060,231 5,176,321   11,220,686   26,494,216   46,182,429    99,092,603   100     88,470,829   100




                                                                                                              20
                                                           BB-Consolidated
                                                            Loans overdue
Risk                                                                             Over 360         Total               Total
Level            0-15     16-30     31-60     61-90       91-180     181-360                   portfolio    %      portfolio    %
                                                                                             03.31.2006          03.31.2005
 B              21,714   339,176    29,582     9,204         1,284         128         66        401,154     6       425,809     9
 C              17,109   345,051   440,078    38,344        45,215       1,655         14        887,466    14       734,637    15
 D               5,265   140,640   157,988   251,338        96,852      26,244        528        678,855    11       499,412    11
 E               1,687    52,883    61,735    87,715       308,751      51,000          --       563,771     9       467,621    10
 F                 605    21,932    23,473    30,565       288,437      55,603      3,260        423,875     7       328,180     7
 G                 639    15,769    16,594    17,609       295,090      79,379     10,861        435,941     7       303,103     6
 H               3,958    96,732   105,020    90,791       464,879   1,996,514    285,373      3,043,267    46     2,032,920    42
Total           50,977 1,012,183   834,470   525,566     1,500,508   2,210,523    300,102      6,434,329   100     4,791,682   100


6.d) Details of the allowance for loan losses by risk level, including operations with loan
characteristics classified as "Other receivables":

                                         BB- Domestic and Foreign branches
        Risk                   %
        Level              Allowance                 Balance            Allowance              Balance           Allowance
                                                   03.31.2006           03.31.2006           03.31.2005          03.31.2005
       AA                0                         17,695,209                    --          17,555,238                   --
        A               0.5                        27,735,526              138,678           25,181,037             125,905
       B                 1                         31,819,526              318,195           29,997,152             299,972
       C                 3                         16,028,497              480,855           11,752,419             352,573
       D                10                          3,922,262              392,226            2,739,596             273,960
        E               30                          1,275,329              382,599              825,370             247,611
        F               50                            675,787              337,893              528,692             264,345
       G                70                            833,915              583,740              421,465             295,025
       H                100                         4,157,003            4,157,003            2,783,196           2,783,196
   Subtotal                                       104,143,054            6,791,189           91,784,165           4,642,587
 Additional allowance foreign *                             --              29,729                    --             46,221
 Additional allowance domestic **                           --             709,912                    --            752,224
     Total                                        104,143,054            7,530,830           91,784,165           5,441,032

                                                       BB-Consolidated
        Risk                 %
        Level            Allowance                   Balance            Allowance              Balance           Allowance
                                                   03.31.2006           03.31.2006           03.31.2005          03.31.2005
      AA                0                          17,814,921                    --          17,771,016                   --
       A              0.5                          28,324,150              141,621           25,660,192             128,301
       B                1                          32,138,993              321,390           30,446,019             304,460
       C                3                          16,127,457              483,824           11,843,917             355,318
       D               10                           3,985,721              398,572            2,788,156             278,816
       E               30                           1,295,652              388,695              833,792             250,138
       F               50                             681,318              340,659              531,624             265,812
       G               70                             838,460              586,922              424,617             297,232
       H              100                           4,320,260            4,320,260            2,963,178           2,963,178
    Subtotal                                      105,526,932            6,981,943           93,262,511           4,843,255
 Additional allowance foreign *                             --              39,234                    --             59,616
 Additional allowance domestic                              --             710,062                    --            752,417
 **
     Total                                        105,526,932            7,731,239           93,262,511           5,655,288


                                                                                                                 21
* Additional allowance required by local legislation.
** In the first quarter of 2006, the Bank concluded a specific appraisal of its credit portfolio based on
historical data. The work identified expressive variations in the delay flow of operations, resulting in a
consequent impact upon provision. Cash volatilities almost always cannot be identified upon a previous risk
and scenario analysis. Along the time, the Bank is implementing betterments in its systems, methodologies
and processes with the purpose of improving credit risk management. Besides betterments implemented, it
was identified a need to establish a provision besides the minimum provided for by CMN Resolution 2682/99,
in order to prudently reflect the risks existent in the Portfolio. Thus, Banco do Brasil, based on the prudence
principle, establishes in the trial balance as of March /2006, a provision exceeding the minimum required by
CMN Resolution 2.682/99, in the value of R$ 500 million, with the purpose of adjusting the Bank to the
expectations of credit portfolio realization. It also contemplates an installment of R$ 184,380 thousand
related to charges upon operations included in Proagro, pending reimbursement by the Central Bank.


6.e) Changes in the allowance for loan and lease losses and for operations with loan characteristics
classified as "Other receivables":

                                                  BB- Domestic and Foreign
                                                         branches                           BB-Consolidated
                                                   1st quarter/2006 1st quarter/2005   1st quarter/2006 1st quarter/2005
Opening balance                                       6,484,244         5,147,493         6,691,651         5,365,196
Additional allowances                                 1,830,297         1,061,817         1,844,594         1,061,071
Exchange variation on allowances - foreign               (5,544)            (395)           (16,534)            (193)
Loans written off                                     (778,167)         (767,883)         (788,472)         (770,786)
Closing balance                                       7,530,830         5,441,032         7,731,239         5,655,288


6.f) Changes in the provision for loss on other receivables without loan characteristics:

                                                  BB- Domestic and Foreign
                                                         branches                           BB-Consolidated
                                                   1st quarter/2006 1st quarter/2005   1st quarter/2006 1st quarter/2005
Opening balance                                       2,569,412         1,706,591         2,579,850         1,717,785
Additional allowances                                   226,187           199,759           226,225           199,752
Exchange variation on allowances - foreign                  384               495               384               495
Loans written off                                           (91)                --            (493)             (588)
Closing balance                                       2,795,892         1,906,845         2,805,966         1,917,444


6.g) Supplementary information:

                                                  BB- Domestic and Foreign
                                                         branches                           BB-Consolidated
                                                   1st quarter/2006 1st quarter/2005   1st quarter/2006 1st quarter/2005
Renegotiated loans                                    1,363,739           682,947         1,363,739            682,947
Recoveries of loans
written off*                                             296,181          251,768            296,632           253,316

* Recorded in the statement of income in the account “Income from loan operations”, as permitted by CMN
Resolution 2836/05.30.2001, where R$ 4,346 thousand (R$ 1,878 thousand in 03.31.2005) refer to loans to
individuals and corporate entities.




                                                                                                          22
NOTE 7 – Provision for Vacation Pay, Paid Leave and Litigation

The changes in the provisions are as follows:
                                                                                  Banco Múltiplo
                                                                                  (Multiple Bank)
                                                                              1st quarter/2006 1st quarter/2005
7.a) Vacation pay (other liabilities - sundry)
Opening balance                                                                     722,468          667,739
Provision/(reversal)                                                                142,920          152,160
Provision used                                                                    (250,127)        (237,587)
Closing balance                                                                     615,261          582,312

7.b) Paid leave (other liabilities - sundry)
Opening balance                                                                    585,917            585,864
Provision/(reversal)                                                                 49,390             50,279
Provision used                                                                     (69,609)           (73,455)
Closing balance                                                                    565,698            562,688

7.c) Labor claims (other liabilities - sundry)
Opening balance                                                                  2,126,608         2,000,685
Provision/(reversal)                                                                31,727           102,413
Closing balance                                                                  2,158,335         2,103,098

7.d) Tax claims (other liabilities - taxes and social security charges)
Opening balance                                                                      27,730           127,345
Provision/(reversal)                                                                  1,626             3,144
Provision used                                                                           (2)                --
Closing balance                                                                      29,354           130,489

7.e) Other legal claims (other liabilities - sundry)
Opening balance                                                                    857,922            741,051
Provision/(reversal)                                                                 32,242             68,138
Provision used                                                                     (15,132)           (47,564)
Closing balance                                                                    875,032            761,625


NOTE 8 – Other Receivables

8.a) Foreign exchange portfolio
                                                                          Current and long-term
                                                                  BB- Domestic and Foreign branches
                                                                         and BB-Consolidated
                                                                        03.31.2006         03.31.2005
Forward foreign exchange purchases pending settlement                    7,970,887           9,010,139
Bills of exchange and time drafts in foreign currency                       87,995             113,232
Receivables from sales of foreign exchange                               9,553,210           6,673,973
Advances received                                                      (8,588,013)         (5,443,447)
Foreign currency receivables                                                14,123              14,221
Income receivable on advances granted                                       91,612              75,978
Income receivable on financed imports                                            9                   8
Total                                                                    9,129,823         10,444,104




                                                                                                 23
8.b) Specific credits
These are credits from the Federal Treasury of R$ 626,859 for the extension of terms of rural
financing (R$ 558,822 at 03.31.2005), as determined by Law 9138/1995.


8.c) Sundry
                                                                                 Current and long-term
                                                                       BB- Domestic and
                                                                       Foreign branches          BB-Consolidated
                                                                     03.31.2006 03.31.2005 03.31.2006 03.31.2005
Salary and other advances                                               229,600      180,200      229,656   180,212
Accounts receivable - Federal Treasury                                  344,577      391,867      344,577   391,867
Accounts receivable - credit card operations                          1,494,393    1,073,068    1,494,393 1,073,068
Accounts receivable - other                                             404,870      288,596      413,516   298,319
Tax credits (Note 18)                                                 8,808,858    7,833,086    8,905,447 7,955,833
Sundry debtors - foreign                                                 19,560       39,905       19,667    40,426
Sundry debtors – domestic *                                           4,723,427    3,361,250    4,696,981 3,363,484
Receivables from guarantee deposits **                               12,193,775    9,183,041 12,251,207 9,199,093
Income tax and social contribution on net income to offset              816,466      279,153      831,170   296,366
Receivables from sale of assets and rights                              459,419      514,312      460,722   530,502
Other                                                                   234,595      517,301      187,062   376,800
Total                                                                29,729,540 23,661,779 29,834,398 23,705,970

* Includes the net amount of R$ 3,865,470 thousand equivalent to the total of the Actuarial Asset CVM No.
371 and of the Actuarial Asset relating to the 1997 Contract (R$ 2,709,399 at 03.31.2005, relating to the sum
of Actuarial Asset CVM No. 371 anf of the PREVI actuarial liability relating to the 1997 contract), as shown in
Note 23.e.

** Includes R$10,184,935 (R$ 7,528,483 at 03.31.2005) relating to filing appeals of tax claims (Note 17.d),
R$ 1,404,727 (R$ 1,282,786 at 03.31.2005) relating to filing appeals of labor claims and R$ 596,638 (R$
357,686 at 03.31.2005) relating to other appeals, in the Multiple Bank.


NOTE 9 - Other Assets
                                                                     Current and long-term
                                                BB- Domestic and Foreign
                                                       branches                           BB-Consolidated
                                                 03.31.2006          03.31.2005        03.31.2006    03.31.2005
Non-operating assets                                275,333             289,011           282,036       296,840
Supply materials                                     28,082              20,577            28,082         20,577
Total                                               303,415             309,588           310,118       317,417


NOTE 10 – Deposits
                                                                          Current and long-term
                                                         BB- Domestic and Foreign
                                                                branches                    BB-Consolidated
                                                             03.31.2006   03.31.2005      03.31.2006 03.31.2005
Demand deposits                                              31,815,890   29,296,550      31,877,536 29,340,311
  Related companies                                             864,026    1,605,946         864,026   1,605,947
  Individuals                                                10,144,762    9,810,039      10,151,305   9,815,974
  Corporate entities                                         10,930,343   10,025,944      10,983,656 10,063,521
  Financial institutions                                        146,908      180,606         147,839     180,001



                                                                                                        24
    Government                                          2,002,947       2,368,052         2,002,947      2,368,052
    Federal Treasury                                      275,689         204,295           275,689        204,295
    Domiciled abroad                                       11,386          31,867            11,298         31,804
    Restricted                                          4,168,585       3,864,926         4,169,532      3,865,842
    In foreign currency                                 3,257,036       1,187,848         3,257,036      1,187,848
    Other                                                  14,208          17,027            14,208         17,027
Savings deposits                                       32,975,353      31,417,670        32,975,353     31,417,670
    Individuals                                        30,979,695      29,835,702        30,979,695     29,835,702
    Corporate entities                                  1,617,920       1,209,365         1,617,920      1,209,365
    Related companies                                     375,351         370,253           375,351        370,253
    Financial institutions                                  2,387           2,350             2,387          2,350
Interbank deposits                                      9,396,940       8,736,638         5,261,900      6,488,592
Time deposits                                          68,886,756      52,687,049        68,948,386     52,768,858
Time deposits                                          33,609,130      25,025,282        33,670,760     25,107,091
    Time deposits in foreign currency                          46             851                46            851
    Time deposits with automatic renewal                  182,735         187,333           182,735        187,333
    Remunerated judicial deposits                      21,699,675      17,581,458        21,699,675     17,581,458
    Special deposits relating to funds
    and programs (Note 14(c))                         13,395,170        9,892,125        13,395,170   9,892,125
Deposits for investments                                 131,388           81,062           131,388      81,062
Total                                                143,206,327      122,218,969       139,194,563 120,096,493


NOTE 11 - Borrowings - Foreign Borrowings

                                                            BB- Domestic and Foreign branches
                                         Up to       From 91 to From 1 to From 3 to From 5 to   Total           Total
                                        90 days        360 days   3 years   5 years 15 years 03.31.2006      03.31.2005
Exports                                     89,787     140,262          --       --         --    230,049       153,968
Imports                                    107,863      86,224     77,793     9,364      2,112    283,356       403,227
Bankers*                                   181,826           --         --       --         --    181,826    11,900,051
Onlend to the public sector                273,633     190,128    611,431    88,951 1,637,863    2,802,006    3,500,555
Borrowings from BB Group companies         874,703           -- 2,956,188         --        --   3,830,891    2,429,724
overseas
Borrowings by BB Group companies           277,679     614,512          --       --         --    892,191     1,522,838
overseas
Total                                  1,805,491     1,031,126 3,645,412     98,315 1,639,975    8,220,319   19,910,363

                                                                      BB-Consolidated
                                         Up to       From 91 to From 1 to From 3 to From 5 to   Total      Total
                                        90 days        360 days   3 years   5 years 15 years 03.31.2006 03.31.2005
Exports                                         --           --         --       --         --          --        3,530
Imports                                     85,337      35,535     33,189     9,364      2,112    165,537       284,166
Bankers*                                   181,826           --         --       --         --    181,826    11,900,051
Onlend to the public sector
                                           273,633     190,128    611,431    88,951 1,637,863    2,802,006    3,500,556
Borrowings by BB Group companies           266,828     614,513          --        --        --     881,341    1,512,708
overseas
Total                                      807,624     840,176    644,620    98,315 1,639,975    4,030,710   17,201,011

* The reduction in 2005 resulted from the implementation of Bacen Resolution No. 3.265, of March
4, 2005, which unified the floating exchange rate and free exchange rate markets.

Banco do Brasil S.A. policy in respect of its foreign borrowings is to seek the lowest possible cost for the
maturity, type of instrument, and its balance sheet profile. The Bank uses the Libor and US Treasury rates,


                                                                                                        25
respectively, as references for its financial and capital transactions, constantly monitoring rates in the various
markets


NOTE 12 - Local Onlendings - Official Institution

                                                                           BB- Domestic and
Programs                               Financial charges                   Foreign branches      BB-Consolidated
                                                                        03.31.2006 03.31.2005 03.31.2006 03.31.2005
Federal treasury                                                         4,053,193    3,595,936 4,053,193 3,595,936
 Rural credit                                                            4,053,193    3,595,936 4,053,193 3,595,936
 Farming/livestock breeding            TR or 9% p,a,                        38,698       37,616    38,698    37,616
 Cocoa                            TJLP + 0,6% p,a, or 6,35%                 41,393       37,744    41,393    37,744
                                            p,a,
 Pronaf                          TMS (available) or 1,0% p,a, to         3,717,720      3,237,581       3,717,720    3,237,581
                                     7,25% p,a,(Invested)
 Recoop                              55,75% to 7,25% p,a,                  255,382        282,995         255,382      282,995
BNDES                                           *                        3,959,658      3,662,796       3,959,658    3,662,796
Finame                                         **                        4,710,695      2,918,381       4,719,965    2,926,644
Other institutions                             --                          319,808        443,122         319,951      443,245
Prohemp funds                                  --                              992          1,177             992        1,177
FBB - Fundec II                                --                           10,065         12,729          10,065       12,729
Funcafé                         TR or TMS (available) or TJLP +
                                  3% p,a, or 4% p,a, or 5% p,a,           308,588         429,039        308,588          429,039
                                           (Invested)
Other                                             --                           163            177        306        300
Total                                                                   13,043,354     10,620,235 13,052,767 10,628,621
* BNDES
- Programs with fixed interest rates: interest paid to the BNDES varies from 3% p.a. to 7.75% p.a..
- Programs with Long-Term Interest Rate (TJLP) or foreign exchange variation: interest paid to the BNDES
varies from 0.5% p.a. to 5.5% p.a.
** Finame
- Programs with fixed interest rates: interest paid to BNDES/FINAME varies from 3.75% p.a. to 11% p.a.
- Programs with TJLP or foreign exchange variation: interest paid to BNDES/FINAME and BNDES/EXIM
varies from 1% p.a. to 11.47% p.a.


NOTE 13 – Funds Obtained in Foreign Capital Markets (in millions)
                                                                                                           Date of
Transactions                                                                  Coupon           Amount      funding    Maturity
a) DIRECT FUND RAISING
"Global medium-term notes" program (a.1)                                9.375% p.a.           US$ 200     Jun/97      Jun/07
"Global medium-term notes" program (a.1)                                Zero-cupom            R$ 200      Dec/04      Dec/07
Subordinated debt                                                       8.5% p. a.            US$ 300     Set/04      Sep/14
Perpetual bonus (a.2)                                                   7.95% p.a.            US$ 500     Jan/06      perpetual

b) FUND RAISING THROUGH SPC
Securitization of the flow of remittance of funds -dekasseguis (b.1)    7.875% p.a.           US$ 300     Ago/01      Aug/06
Securitization of the flow of electronic remittances (MT - 100) (b.2)   7.890% p.a.           US$ 450     Dec/01      Dec/08
Securitization of the flow of electronic remittances (MT - 100) (b.2)   Libor 3m+0.60% p.a.   US$ 300     Jul/02      Jun/09
Securitization of the flow of electronic remittances (MT - 100) (b.2)   7.890% p.a.           US$ 40      Sep/02      Sep/09
Securitization of the flow of electronic remittances (MT - 100) (b.2)   7.26% p.a.            US$ 120     Mar/03      Mar/10
Securitization of the flow of electronic remittances (MT - 100) (b.2)   6.55% p.a.            US$ 250     Dec/03      Dec/13
Securitization of credit card receivables - Visanet (b.3)               5.911% p.a.           US$ 178     Jul/03      Jun/11
Securitization of credit card receivables - Visanet (b.3)               4.777% p.a.           US$ 45      Jul/03      Jun/11




                                                                                                                     26
Total issued per program:
                                                                                         Foreign currency      Reais*
"Global medium-term notes" program                                                                       --       200
"Global medium-term notes" program – GMTN                                                      US$     200        434
Securitization of the flow of electronic remittances (MT - 100)                                US$ 1,160        2,519
Securitization of credit card receivables – Visanet                                            US$     223        484
Securitization of the flow of remittance of funds – dekasseguis                                US$     300        651
Subordinated debt                                                                              US$     300        651
Perpetual bonus                                                                                US$     500      1,086
Total                                                                                                           6,025

* Converted at R$ 2.1716 per US$ 1.00.

a.1) Recorded under Other Obligations – Value Negotiation and Intermediation.

a.2) On January 23, 2006, Banco do Brasil S.A concluded a foreign funding in the amount of US$
500,000,000.00 through launching of perpetual securities. The operation has a redemption option by
                                               th
initiative of the issuer ("call") as from the 5 year, and, quarterly, each interest payment date thereafter.
The issue price was of 100% and coupon, quarterly, of 7.95% p.a. was the lower price ever paid by a
Brazilian issuer until that date.

b.1) Recorded under Foreign marketable securities. The transaction was carried out through the Special-
Purpose Company (SPC) “Nikkei Remittance Rights Finance Company”, incorporated under the laws of the
Cayman Islands, on July 16, 2001. The Head Office of this SPC is located at BNP Paribas Private Bank &
Trust Cayman Limited, P.O. Box 10632 APO 3rd floor, Royal Bank House, Shedden Road, George Town,
Grand Cayman, Cayman Islands, British West Indies. The capital of the SPC is US$1,000.00, divided into
1,000 shares of US$1.00 each. Banco do Brasil S.A. (“BB”) does not hold the control, is not a shareholder,
the owner, or is a beneficiary of any of the results of operations of the SPC. On August 2, 2001, this SPC
entered into an Administration Services Agreement with BNP Paribas Private Bank & Trust Cayman Limited.
The SPC has declared that it does not have any subsidiaries, employees or debt, except for the securities
described below.
The SPC was incorporated for the sole purpose of carrying out the following transactions: (a) issue and sell
securities in the international market; (b) use funds raised with the issue of securities to pay for the purchase
of the remittance rights from BB, arising from the foreign currency payment orders made by people in Japan
(“dekasseguis”) at BB’s branches in Japan whose beneficiaries are individuals in Brazil; (c) pay the principal
and interest on the securities and make other payments established in the related security issue agreements.
According to the agreements signed, EPE does not have any significant asset other than the resources
arising from its equity issued, the remittance rights and the liabilities arising from the issuance contracts. The
EPE liability is composed of the issuance of marketable securities, as described in the table below (“Series
2001-1“), with the following characteristics:

                                                                  Term    Coupon               Return to       Current
Serie  Issue date Maturity                 Amount (US$)           (year   (%)      Issue       the              rating
                  date                                            s)               price       investor
2001-1 10/08/01     05/08/06                300,000,000              5     7.875     99,6850     7.99%         BBB
                  Total                     300,000,000

The Series 2001-1 pay to the international investors, every quarter, interest during the first year and, interest
and principal as from the second year. The liabilities are paid by the SPC using funds accumulated in its
account and generated by the Remittance Rights. When the amount corresponding to the next interest
and/or amortization installment is reached in the SPC’s account, the entire excess amount is automatically
released to BB.
This structure resulted in the reduction of the Brazil risk and helped obtain an investment grade rating for the
transaction which, in the final analysis, reduced BB’s fund raising cost. For the beneficiaries of the
dekasseguis’ remittances in Brazil, nothing changed because even after the sale of the Remittance Rights to
the SPC, BB regularly and punctually fulfills all payment orders within the same deadlines as previously.
Under this structure, after five years, the SPC will have repaid all interest and principal of the transaction thus
returning the full ownership of the flow of remittances to BB. Based on its analysis of the transaction, BB is
not exposed to any potential loss.




                                                                                                              27
b.2) Recorded under Foreign marketable securities. The transaction was carried out through the Special
Purpose Company (SPC) “Dollar Diversified Payment Rights Finance Company”, incorporated under the
laws of the Cayman Islands on November 6, 2001. The Head Office of the SPC is at BNP Paribas Private
Bank & Trust Cayman Limited, P.O. Box 10632 APO 3rd floor Royal Bank House, Shedeen Road, George
Town, Grand Cayman, Cayman Islands, British West Indies. The capital of the SPC is US$1,000.00, divided
into 1,000 shares of US$1.00 each. Banco do Brasil S.A. (“BB”) does not hold the control, is not a
shareholder, the owner, or is a beneficiary of any of the results of operations of the SPC. On August 2, 2001,
this SPC entered into an Administration Services Agreement with BNP Paribas Private Bank & Trust
Cayman Limited. The SPC has declared it does not have any subsidiaries, employees or debt, except for the
securities described below.
The SPC was incorporated for the sole purpose of carrying out the following transactions: (a) issue and sell
securities in the international market; (b) use funds raised with the issue of securities to pay for the purchase
from BB of BB’s rights on payment orders issued by correspondent banks in the USA and by BB’s New York
branch, in US dollars, to any BB branch in Brazil. (Remittance Rights); (c) pay the principal and interest on
the securities and make other payments established in the related security issue agreements
The SPC has no material assets other than the funds obtained from the issue of its capital, the Remittance
Rights, and the duties arising from the issue agreements. The SPC’s liabilities consist of the five issues of
securities made in the international capital market, as follows:

                                              Term              Coupon                   Return to       Current
 Serie Issue date Maturity date Amount (US$) (years)              (%)       Issue price the investor      rating
2001-1 12/27/01     12/15/08      450,000,000   7                7.890       100,0000     7.89%         BBB/Baa1
2002-1 07/03/02     06/15/09      300,000,000   7              L3M+0.60      100,0000    L3M+0.60       AAA/Aaa
2002-2 09/11/02     09/15/09       40,000,000   7                7.890       100,0000     7.89%         BBB/Baa1
2003-1 03/17/03     03/15/10      120,000,000   7                7.260       100,0000     7.26%         BBB/Baa1
2003-2 12/19/03     12/16/13      250,000,000  10                6.550       100,0000     6.55%         BBB/Baa1
                  Total         1,160,000,000

The liabilities arising from the securities are paid by the SPC using the funds accumulated in its account.
When the amount corresponding to the next interest and/or amortization installment is reached in SPC’s
account, the entire excess amount is automatically released to BB.
This structure resulted in the reduction of the Brazil risk and helped obtain an investment grade rating for the
transaction which, in the final analysis, reduced BB’s fund raising cost. For the beneficiaries of the dekasseguis’
remittances in Brazil, nothing changed because even after the sale of the Remittance Rights to the SPC, BB
regularly and punctually fulfills all payment orders within the same deadlines as previously.
Under this structure, after the final maturity of each transaction, the SPC will have repaid all interest and
principal of the transaction thus returning the full ownership of the flow of remittances to BB. Based on its
analysis of the transaction, BB is not exposed to any potential loss.

b.3) Recorded in Other liabilities – Contracts for assumption of liabilities – Foreign transactions. The
transaction was carried out through the Special Purpose Company (SPC) “Brazilian Merchant Voucher
Receivables”, incorporated under the laws of the Cayman Islands on May 16, 2003. The Head Office of the
SPC is at Walkers SPV limited, P.O. Box 908 GT, Mary Street, George Town, Grand Cayman, Cayman
Islands.
The capital of the SPC is US$1,000.00, divided into 1,000 shares of US$1.00 each. Banco do Brasil S.A. (“BB”)
does not hold the control, is not a shareholder, the owner, or is a beneficiary of any of the results of operations
of the SPC. On July, 10, 2003, the SPC entered into an Administration Services Agreement with Walkers SPV
Limited.
The SPC was incorporated for the sole purpose of carrying out the following transactions: (a) issue and sell
securities in the international market; (b) use funds raised with the issue of securities to pay for the purchase of
the current and future rights of Companhia Brasileira de Meios de Pagamento (“Visanet”) against Visa
International Service Association on receivables (“Receivables”) arising from (i) credit or debit purchases made
in Brazil, in any currency processed by Visanet, using Visa cards issued by financial institutions located outside
Brazil, or (ii) credit or debit purchases, processed by Visanet in foreign currency, made using Visa cards issued
by financial institutions located in Brazil; (c) pay the principal and interest on securities and make other
payments established in the related security issue agreements




                                                                                                       28
The SPC stated that it does not have any significant assets other than the funds from the issue of its capital
and from the Receivables. It also stated that it does not have significant liabilities other than the obligations
arising from the contracts for issue of securities.
The SPC’s liabilities consist of two issues of securities carried out in the international capital market, as
follows:

                                                   Term Coupon                      Return to      Current rating
  Serie   Issue date Maturity date   Amount (US$) (years) (%)             Issue    the investor
                                                                          price
2003-1    07/10/03     06/15/11      400,000,000*      8      5.911     100,0000     5.955%         BBB+/Baa1
2003-2    07/10/03     06/15/11      100,000,000**     8      4.777      95,0000     5.955%         BBB+/Baa1
                     Total            500,000,000

* Pursuant to the Series 2003 Visanet Support Agreement, BB received the amount of US$ 178,473,952, as described in
the text below.
** Pursuant to the Series 2003 Visanet Support Agreement, BB received the amount of US$ 44,618,488, as described in
the text below.

The liabilities arising from the securities are paid by the SPC using the funds accumulated in its account.
When the amount corresponding to the next interest and/or amortization installment is reached in the SPC’s
account, the entire excess amount is automatically released to Visanet..
Under the structure, which included, among other agreements, the agreement called Series 2003 Visanet
Support Agreement, entered into on July 10, 2003 by Visanet, BB and Bradesco, Visanet agreed to transfer to
BB the funds arising from the sale of the Receivables, at the ratio of 44.618488%, calculated based on the
shareholding interest of BB in Visanet on the transaction closing date, resulting in US$ 223,092,440.00 of funds
being raised by BB..
Also under the same agreement, BB agreed to periodically transfer to Visanet amounts equivalent to the
Receivables held by Visanet for the account of the SPC, pursuant to the Receivables purchase and sale
agreement, at the ratio of 44.618488%.
This structure resulted in the reduction of the Brazil risk and helped obtain an investment grade rating for the
transaction which, in the final analysis, reduced BB’s fund raising cost.
Under this structure, after the final maturity of each transaction, the SPC will have repaid all interest and
principal of the transaction thus returning the full ownership of the Receivables to Visanet. Based on its
analysis of the transaction, BB is not exposed to any potential loss.


NOTE 14 - Other Liabilities

14.a) Foreign exchange portfolio
                                                                             Current and long-term
                                                                       BB- Domestic and Foreign branches
                                                                             and BB-Consolidated
                                                                              03.31.2006         03.31.2005
Forward foreign exchange sales pending settlement                               9,381,551          6,501,015
Advances in foreign currencies                                                    (32,574)            (6,664)
Import financing                                                                   (9,375)            (3,011)
Foreign exchange purchase liabilities                                           8,160,981          9,184,861
Advances on foreign exchange contracts                                        (6,834,853)        (7,742,951)
Foreign currency payables                                                           17,029            32,005
Unearned income on advances granted                                                  3,768              4,129
Total                                                                         10,686,527           7,969,384



14.b) Financial and development funds
                                                                                Current and long-term



                                                                                                       29
                                                                     BB- Domestic and Foreign branches
                                                                           and BB-Consolidated
                                                                          03.31.2006          03.31.2005
PIS/PASEP                                                                  1,477,600           1,395,414
Merchant Navy                                                                  8,352              15,655
Land and Agrarian Reform - BB Banco da Terra                                  94,542              60,916
Special Lending Program for Agrarian Reform – Procera                        376,139             320,592
Consolidation of Family Farming (CAF)                                              --             80,245
Fight against Poverty/Our First Land (CPR/NPT)                                     --             60,242
Other                                                                         24,688              20,638
Total                                                                      1,981,321           1,953,702


14.c) Fund for Worker Assistance (FAT) and Fund to Guarantee the Increase in Employment and
Earnings (FUNPROGER)

FAT is a special accounting and financial fund, established by Law 7998/90, enacted on 01/11/90, attached to
the Ministry of Labor and Employment (MTE) and managed by the Executive Council of the Worker Assistance
Fund (CODEFAT). CODEFAT is a collective, tripartite and equal level organization, composed of
representatives of workers, employers and government, which acts as the manager of FAT.
The main sources of funding of FAT are contributions payable to the Social Integration Program (PIS) and to
the Public Service Employees Savings Program (PIS/PASEP).
FAT's objective is to fund the Unemployment Insurance Program (with specific responsibilities for payment of
unemployment insurance benefits, professional qualification and requalification, and orientation and
intermediation of employment), the Salary Bonus (paragraph 3 of article 239 of the Federal Constitution), and
finance programs for economic development as well as to promote employment.
The main actions to promote employment using FAT funds are centralized in the Programs for the Increase in
Earnings (PROGER), whose resources are allocated by special deposits, established by Law 8352/91, in
official federal financial institutions (including, among others, PROGER in the Urban – Investment and Working
Capital– and Rural, the National Program for Strengthening of Family Farming – PRONAF, the program that
allocates resources for the purchase of construction materials – FAT Housing, in addition to the special lines
such as FAT Rural and Urban Integration and FAT Digital Inclusion).
Banco do Brasil has a partnership with FAT in the conduct of the employment and income generation
programs, through special deposits to be applied in Proger, Urban and Rural, in Pronaf, in FAT Housing and in
the special lines mentioned above; for this purpose, the Bank offers credit lines directed to mini and small
companies, cooperatives, informal economy and rural workers.
The FAT special deposits, allocated with Banco do Brasil, while available, incur interest on a daily “pro rata”
basis using the TMS (Average Selic Rate). As they are applied in loans, the interest rate is changed to the
TJLP (Long-term Interest Rate) during the effective period of the loans.
The income on the Bank’s funds is paid to FAT on a monthly basis, as established in CODEFAT Resolution No.
439, of June 2, 2005.
The Guarantee Fund for Generation of Employment and Earnings (Funproger) is a special accounting fund
established on November 23, 1999 by Law 9872, amended by Law 10360, of 12.27.2001, and by Law 11110,
of 04.25.2005 and regulated by Codefat Resolution 409/04, and is managed by Banco do Brasil under the
supervision of Codefat/MTE, whose balance at March 31, 2006 is R$ 238,931 thousand (R$ 202,104 thousand
at March 31, 2005).
The objective of FUNPROGER is provide guarantees to entrepreneurs who do not have the necessary
guarantees of their own to contract PROGER Urbano financing, through the payment of a commission.
The net assets of FUNPROGER are accumulated through funds arising from the difference between the
average SELIC Rate and the Long-Term Interest Rate (TJLP) in respect of the remuneration of the special
deposit balances available in the FAT. Other sources of funds are the earnings from its operations and the
income on its cash resources paid to Banco do Brasil, the Fund manager.




                                                                                                   30
                               Resolution/      TMS             TJLP                          Return of FAT funds
          Program                TADE        Available (1)   Invested (2)     Total

PROGER (Rural) and PRONAF                        1.006.768      5.257.409    6.264.177   Type (*) Initial date Final date
Pronaf Custeio                  04/2005            445,088      1,935,507    2,380,595      RA(**)     11/2005          --
Pronaf Investimento             05/2005            116,861      1,928,507    2,045,368      RA(**)     11/2005          --
Giro Rural                      03/2005            415,203        598,968    1,014,171     SD(***)     09/2006   07/2008
Rural Custeio                   02/2006                844         20,620       21,464      RA(**)     11/2005          --
Rural Investimento              13/2005             28,772        773,807      802,579      RA(**)     11/2005          --
Proger Urbano                                      369,807      5,033,398    5,403,205
Urbano Investimento             18/2005            164,759      2,694,647    2,859,406      RA(**)     11/2005          --
Urbano Capital de Giro          15/2005            196,068      2,168,439    2,364,507      RA(**)     11/2005          --
Empreendedor Popular            01/2006              8,980        170,312      179,292      RA(**)     11/2005          --
Other                                              194,950        992,398    1,187,348
Electric appliances             360/2003                25            432          457      RA(**)     11/2005          --
Exports                         027/2005             2,518          1,981        4,499      RA(**)     11/2005          --
Rural Area Integration          026/2005            20,994        281,767      302,761      RA(**)     11/2005          --
Urban Area Integration          025/2005           114,350        103,756      218,106      RA(**)     11/2005          --
Housing - Construction
material                        04/2006             33,372        602,883      636,255      RA(**)     11/2005          --
Digital Inclusion               09/2005             23,691          1,579       25,270      RA(**)     11/2005          --
Total                                            1,571,525     11,283,205   12,854,730

(1) Funds remunerated by the TMS: average SELIC rate
(2) Funds remunerated by the TJLP: long-term Interest rate
(*) Type: PU (single payment at the end of the period), PAS (annual and successive installments) and PSS
(semiannual and successive installments).
(**) Automatic return (Monthly, 1% over total balance)
(***) Available balance


14.d) Sundry
                                                                          Current and long-term
                                                                BB- Domestic and
                                                                Foreign branches         BB-Consolidated
                                                              03.31.2006 03.31.2005 03.31.2006 03.31.2005
Provisions for payments (*)                                    5,282,149 4,934,307      5,284,648 4,944,217
Creditors by residual value advances                                  370           --      142,912        105,490
Contracts of assumption of liabilities                            869,059 1,160,339         430,404        592,124
Provisions for contingent liabilities (Note 7)                  3,041,241 2,876,397       3,070,243 2,911,126
Accounts payable for payment services provided                    409,474    386,307        409,474        386,307
Sundry creditors – overseas                                        37,667      67,788        38,669         50,068
Sundry creditors – domestic                                     1,154,646    532,614      1,164,011        536,659
Credit card operations                                            688,865 1,016,271         688,865 1,016,271
Liabilities for official agreements                                68,868      73,840        68,868         73,840
Liabilities for purchase of goods and rights                      163,679    220,210        163,679        220,210
Funds restricted to credit operations                              79,644    156,950        822,334        965,204
Other                                                               5,626       8,341         5,515         12,071
Total                                                          11,801,288 11,433,364 12,289,622 11,813,587
* Includes R$ 3.290.966 thousand(R$ 3,069,836 thousand at March 31, 2005) relating to "PREVI Actuarial
Liability of the Informal Plan" (exclusive responsibility of the Bank) and the "Cassi Actuarial Liability" at March
31, 2006 (Note 23.e).




                                                                                                             31
14.e) Subordinated debt
                                                                          Current and long-term
                                                                    BB- Domestic and Foreign branches
                                                                          and BB-Consolidated
                                                                          03.31.2006          03.31.2005
Subordinated debt – FCO *                                                  8,070,083            6,298,368
Other subordinated debt **                                                    24,715              794,827
Total                                                                      8,094,798            7,093,195

* As from June 30, 2001, as determined by CMN Vote No. 67 of June 28, 2001 and Bacen-Diret Official
Letter 2001/1602 of June 29, 2001, Banco do Brasil has considered the funds from the Central-Western
Constitutional Fund (FCO) as subordinated debt and as Level II Reference Equity, because of their low level
of obligation and length of term in the Bank.
On September 13, 2004, Banco do Brasil carried out its first international issue in the subordinated debt
market. The funding amounts to US$ 300 million (R$ 850,921 thousand) with a ten-year maturity. As
authorized by the Central Bank of Brazil, the Bank started to consider the amount of this funding, net of the
value of free repurchase, as Level II Reference Equity.
** Free repurchase amount.


NOTE 15 – Analysis of Income Statement Items

15.a) Banking services fees
                                                           BB- Domestic and
                                                           Foreign branches                BB-Consolidated
                                                         1st quarter/06 1st quarter/05   1st quarter/06 1st quarter/05
Investment funds *                                          224,489              --         355,872        282,957
Collections                                                 189,275        167,875          189,439        168,120
Collection services                                           6,793          7,879            8,108          9,266
Services rendered to related companies                       46,085        206,792           60,135         49,497
Fund transfers                                               31,805         32,482           31,881         32,545
Guarantees granted                                           12,251         22,193           12,272         22,198
Settlement and transfer of funds systems                    173,429        136,633          173,429        136,633
Examination of requests for exclusion from CCF               19,892         18,604           19,892         18,604
PASEP administration                                          6,536          6,813            6,536          6,813
Loans contracted                                            188,832        141,205          188,832        141,205
Deposit account fees                                         61,220         48,310           61,220         48,310
Checking account fees                                        35,230         22,669           35,230         22,669
Fees for issuing documents                                   28,284         29,101           28,284         29,101
Fees on register information                                 28,125         24,281           28,125         32,600
Ouro plan                                                   393,350        367,936          393,350        367,936
Fees for official services                                   85,645         59,905           85,645         59,905
International trade services                                  5,853          3,820            5,853          3,820
Third party collection services                              53,464         48,851           53,464         48,851
Commissions for administration of public sector debt         11,922         11,929           11,922         11,929
Payments on account of third parties                         34,719         31,294           34,719         31,294
Credit cards – annual fees                                   78,304         70,831           78,304         70,831
Credit cards –fees on withdrawals and purchases               4,049          2,270            4,049          2,270
Credit cards – commissions of issuing bank                   82,535         63,959           82,535         63,959
Other services                                              132,398        106,203          153,803        105,436
Total                                                     1,934,485      1,631,835        2,102,899      1,766,749

* According to a service agreement signed between the Bank and the funds, as from July 1, 2005 the Bank
has been receiving the fees for the distribution and record of investment fund quotas, which were previously
paid to DTVM, directly from the funds.




                                                                                                        32
15.b) Personnel expenses
                                            BB- Domestic and Foreign
                                                   branches                                  BB-Consolidated
                                               1st quarter/06     1st quarter/05        1st quarter/06       1st quarter/05
Salaries                                         (778,339)           (747,101)            (791,625)            (759,041)
Benefits                                         (216,330)           (203,742)            (217,613)            (204,874)
Social charges                                   (395,681)           (295,586)            (400,284)            (299,860)
Training                                           (8,374)             (6,045)              (8,446)              (6,094)
Directors’ fees                                    (2,771)             (2,557)              (3,142)              (3,058)
Personnel provisions                             (359,428)           (365,191)            (359,428)            (365,191)
Provisions for labor claims                       (31,727)           (102,413)             (31,727)            (102,413)
Labor claim losses                                (63,292)            (63,335)             (63,292)             (63,335)
Total                                          (1,855,942)         (1,785,970)          (1,875,557)          (1,803,866)


15.c) Other administrative expenses
                                                         BB- Domestic and
                                                         Foreign branches                       BB-Consolidated
                                                      1st quarter/06   1st quarter/05       1st quarter/06   1st quarter/05
Water, electricity and gas                               (69,316)          (58,619)            (69,367)         (58,633)
Rent                                                     (67,891)          (63,331)            (69,169)         (64,653)
Leasing costs                                            (18,307)          (36,597)            (18,307)         (36,597)
Communications                                          (221,326)         (206,295)           (224,173)        (208,762)
Maintenance and upkeep                                   (50,763)          (49,543)            (51,021)         (49,734)
Materials                                                (31,686)          (37,516)            (31,784)         (38,119)
Data processing                                         (146,536)         (129,272)           (149,283)        (132,256)
Promotion and public relations                           (31,212)          (45,927)            (32,040)         (47,888)
Advertising and publicity                                (39,166)          (35,444)            (39,180)         (35,665)
Financial system services                                (87,762)          (77,495)            (85,859)         (76,143)
Third party services                                    (112,188)         (107,160)           (116,831)        (114,074)
Security services                                       (106,450)          (96,021)           (106,486)         (96,118)
Specialized technical services                           (11,402)          (21,660)            (11,977)         (23,585)
Transportation                                           (78,767)          (90,478)            (78,994)         (90,914)
Domestic travel                                          (15,268)          (22,393)            (15,737)         (22,981)
Amortization                                             (43,343)          (33,582)            (43,582)         (33,887)
Depreciation                                            (126,008)         (139,754)           (126,091)        (139,850)
Expenses with tax and civil lawsuits                     (31,114)          (91,845)            (31,114)         (91,845)
Other                                                    (56,240)          (41,393)            (60,888)         (45,415)
Total                                                 (1,344,745)       (1,384,325)         (1,361,883)      (1,407,119)


15.d) Other operating income
                                                                BB- Domestic and
                                                                Foreign branches                  BB-Consolidated
                                                          1st quarter/06 1st quarter/05      1st quarter/06 1st quarter/05
Recovery of charges and expenses                                 85,037       149,100              85,073         149,492
Income from special operations                                   15,455        22,343              15,455          22,343
Income from specific credits                                     16,708        14,980              16,708          14,980
Income from other credit operations                                 225         7,916                 225           7,916
Income from payments of INSS benefits                            71,296        58,348              71,296          58,348
Income from guarantee deposits                                  323,169       261,895             323,169         261,895
Income from securities and credits receivable from the           37,431        24,350              37,431          24,350
Federal Treasury
Dividends received                                                15,665           14,276           15,665         14,276
Equalization of rates – Law 8427                                   3,020            2,141            3,020          2,141
PREVI – Benefit Plan 1                                            14,468            8,668           14,468          8,668
Exchange adjustments of credit card transactions                   2,477            1,676            2,477          1,676



                                                                                                             33
Overdue advances on exchange contracts                                  5,462          20,932             5,462          20,932
Reversal of provisions                                                  2,205           4,644             2,205           4,644
Foreign exchange gains                                                806,314         193,352           806,314         193,352
Taxes paid in error (Note 27.b)                                        13,655         229,127            13,655         229,127
Other                                                                  46,534          36,470            51,138          32,217
Total                                                               1,459,121       1,050,218         1,469,442       1,046,357

15.e) Other operating expenses
                                                                     BB- Domestic and
                                                                     Foreign branches                   BB-Consolidated
                                                                  1st quarter/06 1st quarter/05     1st quarter/06 1st quarter/05
Fees for the use of Sisbacen                                           (3,946)         (2,027)           (3,946)          (2,027)
Expenses on Pasep funds                                                   (40)           (130)              (40)            (130)
Collection of contributions and federal taxes
                                                                           (15)            (9)               (15)             (9)
Exchange loss on profits from overseas branches at the
disposal of the Head Office                                               (388)          (112)             (388)           (112)

Discounts granted on renegotiations - credit operations               (19,096)       (19,903)           (19,096)         (19,903)
Expenses from discounts granted on renegotiations – other
credits                                                                  (151)           (19)              (157)             (19)
Updating of the pension liability                                     (36,477)       (45,835)           (36,477)         (45,835)

Interest on funds allocated for payment of benefits                   (70,903)       (61,770)           (70,903)         (61,770)
CASSI – Interest on actuarial liabilities (Adjustments arising        (94,967)       (94,187)           (94,967)         (94,187)
    from CVM Resolution 371)
Losses with holdups and burglaries                                    (73,384)           (37)           (73,384)             (37)
Errors and fraud                                                       (1,580)           (44)            (1,580)             (44)
Expenses with BB premium savings account                              (15,802)       (11,855)           (15,802)         (11,855)
Expenses with restatement – interest on own capital                         --        (2,154)                 --          (2,154)
BB Personal Banking expenses                                                --        (2,380)                 --          (2,380)
Expenses with credit card operations                                  (21,572)        (5,895)           (21,572)          (5,895)
Expenses with Proagro funds                                           (13,313)       (26,053)           (13,313)         (26,053)
Provision for devaluation of securitized credits                      (52,300)       (42,898)           (52,300)         (42,898)
Provision for guarantees provided                                      (1,243)        (1,161)            (1,243)          (1,161)
Foreign exchange losses                                                    (8)             --            (1,751)          (3,685)
Law 9138/95 - Restatement of funds to be returned to the               (8,215)        (1,216)            (8,215)          (1,216)
Federal Treasury
Securitization dekasseguis – liabilities with the SPC              (1,075,242)       (46,307)        (1,075,242)         (46,307)

Securitization SWIFT MT100 – liabilities with the SPC            (11,931)      (12,400)        (11,931)    (12,400)
Other                                                              (2,212)      (6,900)              --          --
Fees for the use of Sisbacen                                     (40,243)      (53,267)              --          --
Expenses on Pasep funds                                          (73,064)      (46,803)        (92,339)    (62,479)
Total                                                        (1,616,092)      (483,361)     (1,594,661)   (442,556)
* These obligations are classified as “Foreign marketable securities” in the consolidated statements because of the
consolidation of the foreign special purpose entities.

15.f) Non-operating income
                                                       BB- Domestic and Foreign
                                                                branches                              BB-Consolidated
                                                        1º trim/2006  1º trim/2005                1º trim/2006 1º trim/2005
Non-operating income                                          53,537       111,767                      55,071      114,104
Profit on the sale of assets                                  14,058        76,760                      14,058       76,985
Capital gains                                                  1,854           825                       1,854          825
Rental income                                                  2,345         2,252                       2,345        2,252

Valuation of other assets                                        20,419           12,111               20,446            12,113



                                                                                                                    34
Gains with shares and quotas                               668            1.664           2.006            2.962
Profit on the sale of other assets                      11.255           16.947          11.255           16.947
Other non-operating income                               2.938            1.208           3.107            2.020
Non-operating expenses                                (28.518)         (15.337)        (28.768)         (16.285)
Loss on sale of investments                                 (6)              (7)             (6)              (7)
Loss on sale of assets                                   (888)          (1.812)           (888)          (1.812)
Capital losses                                        (11.666)          (3.723)        (11.666)          (3.767)
Loss in value of other assets                         (14.946)          (8.663)        (15.106)          (8.680)
Losses with shares and quotas                                --               --            (90)           (774)
Other non-operating expenses                           (1.012)          (1.132)         (1.012)          (1.245)
Total                                                   25.019           96.430          26.303           97.819


NOTE 16 – Stockholders' Equity

16.a) Stockholders' equity of R$ 19,209,052 thousand (R$ 14,932,899 thousand at March 31, 2005),
equivalent to a net book value of R$ 24.03 per share (R$ 18.68 per share at March 31, 2005) considering the
total of 799,359,738 common shares (disregarding treasury stock). The market value of the common share at
March 31, 2006 was R$ 55,50 (R$ 29,60 at March 31, 2005).

16.b) Of the subscription bonuses issued by the Bank, the remaining balance of 15,993,142 “B” Bonus and
27,028,746 “C” Bonus can be exercised up to the original terms – 03.31.2006 to 06.30.2006 and 03.31.2011
to 06.30.2011, respectively.

16.c) Capital
Capital is R$ 10,797,337 thousand and comprises 810,617,415 common shares with no par value. The
Federal Treasury is the controlling stockholder.

16.d) Treasury stock
The Bank purchased 10,234,252,464 preferred shares, equivalent to 1.44% of the total capital, as
reimbursement to dissident stockholders not in agreement with the conversion of preferred shares into
common shares, approved at the Special Preferred Stockholders' Meeting held on June 7, 2002. These
shares were converted into 11,257,677 common shares and remain in treasury in accordance with article 45
of Law 6404/76.

16.e) Revaluation reserves
These refer to a revaluation of assets carried out by the associated companies Kepler Weber and by the
subsidiary Cobra Tecnologia S.A. The realizations of the reserves in the period, totaling R$ 41 thousand (R$ 29
thousand at March 31, 2005), were transferred to the "Retained earnings" account.

16.f) Mark-to-Market – Securities and Derivatives
In accordance with BACEN Circular Letters 3068/01 and 3082/02, this account records the mark-to-
market adjustment of securities available for sale, totaling R$ 145,800 thousand (R$ 94,799
thousand at March 31, 2005), net of tax effects, as per changes in the stockholders' equity account
“Mark-to-Market – Securities and Derivatives”:

                                         12.31.2005                Net changes              03.31.2006
Securities available for sale             Balance                 in the quarter             Balance
Multiple Bank                                58,929                    14,864                  73,793
Subsidiaries and affiliates                109,046                       6,673               115,719
Tax effects                                (38,048)                    (5,664)               (43,712)
Total                                      129,927                     15,873                145,800

                                         12.31.2004                Net changes               03.31.2005
Securities available for sale             Balance                 in the quarter              Balance
Multiple Bank                              74,362                      (37,932)                   36,430
Subsidiaries and affiliates                11,118                     (133,813)                (122,695)


                                                                                                   35
Tax effects                                   (42,895)                         34,361                     (8,534)
Total                                           42,585                      (137,384)                    (94,799)

16.g) Shareholding positions
As prescribed in paragraphs IV, V, VI and VII of Article 40 of the Bank's by-laws, the shareholding positions
are as follows:

Paragraph IV: shareholdings of all those who hold, directly or indirectly, more than 5% of capital:

Stockholders                                                                         Total shares               % Total
Federal Treasury                                                                      584,778,036                  72.1
Banco do Brasil Employees Retirement Fund (PREVI)                                     112,415,335                  13.9
BNDES Participações S.A. – BNDESPAR                                                    46,604,052                   5.7


Paragraph V: number and characteristics of the securities issued by the Bank and directly or indirectly held
by the controlling stockholder, management and members of the Fiscal Council; and

Paragraph VI: changes in ownership of the parties referred to in the previous paragraph of these securities
during the preceding twelve months:

Controlling stockholder - Federal Treasury                                                   2006               2005
Common shares (ON)                                                                    584.778.036        584.778.036


Board of Directors                        Position          Common Shares            B Bonds              C Bonds
                                                           03.31.06 03.31.05    03.31.06 03.31.05    03.31.06 03.31.05
Bernard Appy                              President              01       01           --       --          --       --
Rossano Maranhão Pinto                    Vice-President         01       01           --       --          --       --
Carlos Augusto Vidotto                    Counselor              02       02           --       --          --       --
Francisco Augusto da Costa e Silva        Counselor              02       02           --       --          --       --
João Carlos Ferraz                        Counselor              02       02           --       --          --       --
José Carlos Rocha Miranda                 Counselor              01       01           --       --          --       --
Tarcísio José Massote de Godoy            Counselor              01       01           --       --          --       --


Fiscal Council                            Position          Common Shares            B Bonds              C Bonds
                                                           03.31.06 03.31.05    03.31.06 03.31.05    03.31.06 03.31.05
Rodrigo Pirajá Wienskoski                 President               --       --          --       --          --       --
Alon Feuerwerker                          Membrer                 --       --          --       --          --       --
Artemio Bertholini                        Membrer                 --       --          --       --          --       --
Otavio Ladeira de Medeiros                Member                  --       --          --       --          --       --
Vicente de Paulo Barros Pegoraro          Member                 01       01           --       --          --       --
Amaury Patrick Gremaud                    Deputy                  --       --          --       --          --       --
Ernesto Rubens Gelbcke                    Deputy                  --       --          --       --          --       --
Henrique Jager                            Deputy
Marcus Pereira Aucélio                    Deputy                 --        --         --        --         --        --
Pedro Paulo Bernardes Lobato              Deputy                 --        --         --        --         --        --


Executive Board of Directors              Position          Common Shares            B Bonds              C Bonds
                                                           03.31.06 03.31.05    03.31.06 03.31.05    03.31.06 03.31.05
Rossano Maranhão Pinto                    President              01       01           --       --          --       --
Adézio de Almeida Lima                    Vice-President         02       02           --       --         01       01
Aldo Luiz Mendes                          Vice-President          --       --          --       --          --       --
Antônio Francisco de Lima Neto            Vice-President          --       --          --       --          --       --
José Luiz de Cerqueira César              Vice-President          --       --          --       --          --       --
José Maria Rabelo                         Vice-President         20       20           6        6          10       10
Luiz Oswaldo Sant’Iago Moreira de Souza   Vice-President         02       02           --       --         01       01
Ricardo Alves da Conceição                Vice-President        371      371         111      111         185      185


Directors                                 Position         Common Shares            B Bonds              C Bonds



                                                                                                           36
                                                             03.31.06    03.31.05    03.31.06 03.31.05     03.31.06     03.31.05
Augusto Braúna Pinheiro                    Director                 --          --          --        --          --           --
Clara da Cunha Lopes                       Director                 --          --          --        --          --           --
                                           (Temporary)
Derci Alcântara                            Director                33          33          9          9          16           16
Expedito Afonso Veloso                     Director                 --          --         --         --          --           --
Francisco Cláudio Duda                     Director                 2           --         2          --          1            --
Glauco Cavalcante Lima                     Director                22          22          6          6          11           11
Izabela Campos Alcântara Lemos             Director                 --          --         --         --          --           --
José Carlos Soares                         Director               219         219          6          6          10           10
Juraci Masiero                             Director                 --          --         --         --          --           --
Luiz Gustavo Braz Lage                     Director                 --          --         --         --          --           --
Maria da Glória Guimarães dos Santos       Director                 --          --         --         --          --           --
Manoel Gimenes Ruy                         Director                14          14          4          4           6            6
Marco Antônio Ascoli Mastroeni             Director                 --          --         --         --          --           --
Maria da Graça França                      Director                 --          --         --         --          --           --
Maurício Doft Sotta                        Director                 2           2          --         --          --           --
Milton Luciano dos Santos                  Director                 --          --         --         --          --           --
Nilo José Panazzolo                        Director                 --          --         --         --          --           --
Paulo Euclides Bonzanini                   Director                 --          --         --         --          --           --
Paulo Rogério Caffarelli                   Director                 --          --         --         --          --           --
Ricardo José da Costa Flores               Director                19          19          5          5           9            9
Sandro Kohler Marcondes                    Director                 1           --         --         --          --           --
Sérgio Ricardo Miranda Nazaré              Director                 --          --         --         --          --           --
William Bezerra Cavalcanti Filho           Director                 --          --         --         --          --           --

Statutory Auditor
José Luis Prola Salinas                    General Auditor          --          --         --         --          --           --

Paragraph VII - number of shares in the market and percentage in relation to the total issued:
BB shares                                                                        Number                                       %
Market                                                                        799,359,738                                   98.6
Total issued                                                                  810,617,415                                   100


NOTE 17 – Income Tax and Social Contribution on Net Income
17.a) Details of calculation basis
                                                                                  BB-Consolidated
                                                                        st                      st
                                                                       1 quarter 2006          1 quarter 2005
                                                                    Income       Social     Income      Social
                                                                      Tax     Contribution    Tax    Contribution
a) Profit before taxation and after employee
   profit sharing:                                                   1,193,504        1,193,504     1,782,464          1,782,464
   - Profit before taxation                                            990,831          990,831     1,601,141          1,601,141
   - Net income of foreign entities                                    (81,770)         (81,770)    (110,119)          (110,119)
   - Intercompany eliminations                                         284,529          284,529       291,525            291,525
   - Employee profit sharing                                               (86)             (86)          (83)               (83)
b) Permanent additions/(deductions):                                 (151,098)        (146,754)     (448,183)          (441,541)
   - Equity in the (earnings)/loss of subsidiary and                 (125,648)        (125,648)     (391,654)          (391,654)
     associated companies
   - Non-deductible expenses and provisions                            129,523          129,523        63,672             66,787
   - Other additions/(deductions)                                    (154,973)        (150,628)     (120,201)          (116,674)
c) Temporary additions/(deductions):                                 2,003,862        2,116,593       738,546            742,127
   - Allowance for loan losses                                       2,066,403        2,089,080     1,263,668          1,263,668
   - Provision for loss on securities and investments                       133              133        6,829              6,829
   - Provision for pension liabilities                                 (29,971)         (29,971)    (469,026)          (469,026)
   - Provision for labor claims, tax
     contingencies and contingent liabilities                           30,242            30,242      102,948            102,948
   - Amortization of goodwill on investments                               398                 --         398                  --
   - Other additions/(deductions)                                     (63,343)            27,109    (166,271)          (162,292)
d) Other additions/(deductions)                                      (770,723)         (771,707)    (666,276)          (667,325)
   - Foreign profits                                                         --                --           --                 --
   - Adjustment - BACEN Resolution 2682/99
     and Law 9430/99                                                 (771,363)         (771,363)    (664,652)          (664,652)



                                                                                                                  37
    - Other                                                             640              (344)       (1,624)       (2,673)
e) Taxable income                                                2,275,545           2,391,636    1,406,551     1,415,725
f) Income tax/social contribution:                                 564,339             215,708      346,069       128,127
    - Rate of 15% / 9%                                             343,499             215,708      212,168       128,127
    - Additional 10%                                               228,981                   --     141,421             --
    - Tax incentives                                                (8,141)                  --      (7,520)            --
    - Income tax on profits of foreign entities                           --                 --           --            --

17.b) Details of income tax and social contribution expense
                                                                               BB-Consolidated
                                                                      st                        st
                                                                    1 quarter 2006             1 quarter 2005
                                                                 Income       Social       Income       Social
                                                                   Tax      Contribution      Tax     Contribution
a) Present values                                                 (572,875)    (215,708) (353,272)        (128,127)
   - Domestic income tax and social contribution                  (564,339)    (215,708) (346,069)        (128,127)
   - Foreign income tax                                             (8,536)             --    (7,203)             --
b) Deferred tax liabilities                                        (62,150)      (20,967)    (60,239)      (21,831)
   - Provision)/reversal of deferred income tax on the
     adjustment of the portfolio and depreciation (leasing
     operations)                                                    (2,841)                  --     (1,366)               --
   - (Provision)/reversal of provision for deferred taxes -
     positive MTM                                                  (10,063)            (3,218)     (13,390)          (4,525)
   - (Provision)/reversal of the provision for deferred income
     tax - sale of investments in installments (BB - BI)               160                  57          160              58
   - (Provision)/reversal of provision for deferred taxes -
      restatement of judicial deposits                             (46,575)           (16,767)     (34,683)         (12,486)
   - (Provision)/reversal of provision for deferred taxes –
      foreign profits                                               (8,190)            (3,852)     (10,960)          (4,878)
   - (Provision)/reversal of provision for deferred income tax
      on transactions carried out in the
      futures market                                                 5,359               2,813            --            --
c) Provision (a+b)                                               (635,025)           (236,675)    (413,511)     (149,958)
d) Deferred tax credits                                          1,612,249             801,001        2,932         1,735
   - Recording/(reversal) of tax credits on temporary
     Differences                                                     3,169                   --       2,917           1,022
   - Recording/(reversal) of tax credits
     on income tax and social
     contribution losses                                         1,563,403            784,123         2,772             711
   - Recording/(reversal) of tax credits
      - negative MTM                                                 1,918                 826      (2,757)               2
   - Recording/(reversal) of tax credits on
      transactions carried out in the futures market                43,759             16,052
e) Total income tax and social contribution expense (c+d)          977,224            564,326     (410,579)     (148,223)

17.c) Reconciliation of income tax and social contribution expense
                                                                                         BB-Consolidated
                                                                                st                        st
                                                                               1 Quarter 2006            1 Quarter 2005
a) Income tax
   Profit before taxation and profit sharing                                               990,831             1,601,141
    - Total income tax charge (rate of 25%)                                              (247,708)             (400,285)
    - Effects of non-taxable income                                                        174,909               305,804
    - Effects of non-deductible expenses                                                 (674,465)             (440,933)
    - Effects of foreign profits                                                           (10,034)              (10,786)
    - Employee profit sharing                                                                    22                    21
    - Deferred charges on mark-to-market adjustments                                          (175)                 (523)
    - Other                                                                              1,726,534               128,603
    - Fiscal incentives (workers meal program, culture and others)                            8,141                 7,520
   Income tax expense                                                                      977,224             (410,579)



                                                                                                               38
b) Social contribution
   Profit before taxation and profit sharing                                       990,831            1,601,141
   - Total social contribution charge (rate of 9%)                                (89,175)            (144,103)
   - Effects of non-taxable income                                                  60,866              109,940
   - Effects of non-deductible expenses                                          (242,807)            (158,730)
   - Employee profit sharing                                                              8                   7
   - Deferred charges on mark-to-market adjustments                                    (63)               (187)
   - Other                                                                         835,497               44,850
   Social contribution expense                                                     564,326            (148,223)


17.d) Litigation: income tax and social contribution on net income social

In February 1998, the Bank filed a legal request for full offset of prior year income tax and social contribution
on net income losses against taxable income. Since then, the Bank has offset these tax losses in full against
income tax and social contribution taxable income and has made judicial deposits of the taxes otherwise due
(on 70% of the amount offset). These deposits prompted the Federal District 16th Court to issue a dispatch
recognizing the suspension of payment of these taxes until final judgment of the Bank's request, based on
article 151, II, of the Tax Code.

The amounts relating to this matter are as follows:
                                                                                  03.31.2006        03.31.2005
a) Judicial deposits                                                               7,723,039         5,609,243
    - Original amounts                                                             5,392,040         4,175,403
    - Restatement                                                                  2,330,999         1,433,840
b) 70% thereof                                                                     5,309,444         4,198,619
    - Income tax losses incurred up to December 31, 1994                             739,067           739,067
    - Income tax losses incurred after December 31, 1994                           2,262,966         1,626,674
    - Social contribution losses incurred up to December 31, 1994                    356,007           356,007
    - Social contribution losses incurred after December 31, 1994                    560,880           560,880
    - Social contribution to offset (temporary differences up to 1998)             1,390,524           915,991
c) The offset of income tax and social contribution losses results in the reduction of the deferred tax credits.
d) The provision relating to the judicial deposit, recorded in Provision for losses on assets without loan
characteristics, amounts to R$ 2,330,999 thousand. Management considers this provision sufficient based
on the status of the lawsuit at March 31, 2006.
e) In the event of an unfavorable decision to the extraordinary appeal which was accepted by the President
of the Federal Regional Court - First Region on November 26, 2001 and submitted to the Federal Supreme
Court for judgment, the deposits equivalent to the amount of taxes determined to be payable will be
transferred to the Federal Revenue Secretariat; the amount of these deposits, net of the provision recorded,
will be expensed. The recording of the related tax credits as income will depend on an analysis of their future
realization in up to 10 years, as defined by CMN Resolution 3355/2006.
f) In September 2005, the Bank offset the balance of the tax losses and related tax credits recorded
as assets. From October 2005, the income tax has been fully paid through the Document for
Receipt of Collection of Federal Income (DARF).




                                                                                                     39
NOTE 18 – Tax credits

18.a) Tax credits recorded as assets
                                                                              BB-Consolidated
                                                                   03.31.2006                   03.31.2005
                                                             Income        Social         Income        Social
Nature and origin:                                             Tax      Contribution        Tax      Contribution
a) Income tax and social contribution losses                    172,839        25,947     3,386,403        45,985
    a.1) Rate (%)                                                    25             9            25             9
    a.2) Tax credit recorded                                     43,210         2,335       846,601         4,139
b) Timing differences                                        20,395,555    20,226,262    14,161,231    11,526,428
    b.1) Rate (%)                                                    25             9            25             9
    b.2) Tax credit recorded                                  5,098,889     1,820,364     3,540,308     1,037,379
c) Negative mark-to-market adjustments                          164,932       158,081        88,705        79,221
    c.1) Rate (%)                                                    25             9            25             9
    c.2) Tax credit recorded                                     41,233        14,227        22,176         7,130
d) Social contribution to offset                                      --    1,801,072             --    2,483,994
e) Negative futures market adjustments                          175,035       178,354
     e.1) Rate (%)                                                   25             9             --             --
     e.2) Tax credit recorded                                    43,759        16,052             --             --
f) Tax credits abroad                                             7,609             --        8,182              --
g) Total income tax and social contribution tax recorded
   (a.2 + b.2 + c.2 + d + e.2 + f)                            5,234,700     3,654,050     4,417,267     3,532,642
                                                                 Pasep         Cofins        Pasep         Cofins
h) Negative mark-to-market adjustments                          172,055       172,055       128,124       127,268
    h.1) Rate (%)                                                  0,65             4          0,65             4
    h.2) Tax credit recorded                                      1,118         6,881           833         5,091
i) Negative futures market
   adjustments                                                  187,052       187,052             --             --
    i.1) Rate (%)                                                  0,65             4             --             --
    i.2) Tax credit recorded                                      1,216         7,482             --             --
j) Total PASEP and COFINS credits recorded
    (h.2 + i.2)                                                   2,334        14,363           833         5,091
k) Total tax credits recorded (g + j)                         5,237,034     3,668,413     4,418,100     3,537,733

18.b) Tax credits not recorded as assets
                                                                             BB-Consolidated
                                                                   03.31.2006                   03.31.2005
                                                             Income        Social         Income        Social
Nature and origin:                                             Tax      Contribution        Tax      Contribution
a) Income tax and social contribution losses                   124,834         84,180       638,940         35,623
   a.1) Rate (%)                                                    25              9            25              9
   a.2) Tax credits not recorded                                31,208          7,576       159,735          3,206
b) Timing differences                                           95,967         85,836     2,785,085      5,165,455
   b.1) Rate (%)                                                    25              9            25              9
   b.2) Tax credits not recorded                                23,992          7,725       696,271        464,891
c) Negative mark-to-market adjustments                             457            457        36,894         36,894
   c.1) Rate (%)                                                    25              9            25              9
   c.2) Tax credits not recorded                                   114             41         9,223          3,320
d) Accounting losses of foreign entities in countries with
   favorable taxation                                           377,636       377,636       508,680         508,680
   d.1) Rate (%)                                                     25             9            25               9



                                                                                                       40
   d.2) Tax credits not recorded                                 94,409         33,987     127,170           45,781
e) Tax credits abroad                                            74,588              --     96,695                --
f) Total income tax and social contribution credits not
   recorded (a.2 + b.2 + c.2 + d.2 + e)                         224,311         49,329    1,089,094         517,198
                                                                 Pasep          Cofins       Pasep           Cofins
g) Negative mark to market adjustments                             479             479            --            856
   g.1) Rate (%)                                                   0,65              4         0,65               4
   g.2) Tax credits not recorded                                      3             19            --             34
h) Total PASEP and COFINS tax credits
   not recorded (g.2)                                                 3             19            --             34
i) Total tax credits not recorded (f + h)                       224,314         49,348    1,089,094         517,232


18.c) Changes during the period

Tax credits recorded during the period                                              BB-Consolidated
                                                                    03.31.2006                  03.31.2005
                                                              Income        Social        Income        Social
                                                                Tax      Contribution       Tax      Contribution
a) On income tax and social contribution losses                    3,169             --       2,772            711
b) On timing differences                                       1,563,404       784,123        2,917         1,022
c) On negative mark-to-market adjustments                            306           123          207             82
d) Tax credits abroad                                              3,493             --           --             --
e) Negative futures
    market adjustments                                           43,759         16,052            --              --
f) Total income tax and social contribution tax
   recorded (a + b + c + d + e)                               1,614,131        800,298        5,896           1,815
                                                                 Pasep          Cofins       Pasep          Cofins
g) Relating to negative mark-to-market adjustments                    --             3            7              12
h) Relating to negative futures
   market adjustments                                               646          3,974            --              --

i) Total tax credits recorded (f + h)                         1,614,777        804,275        5,903           1,827

Tax credits reversed during the period                                          BB-Consolidated
                                                                    03.31.2006                 03.31.2005
                                                              Income        Social       Income        Social
                                                                Tax       Contribution     Tax      Contribution
a) Relating to income tax & social contribution losses                 --             --   325,098              --
b) Relating to timing differences                                      --             --         --             --
c) Relating to social contribution to offset (MP 1.858/99)             --      200,154           --      117,301
d) Relating to negative mark-to-market adjustments                  359             189      1,508            547
e) Tax credits abroad                                                  --             --     2,521              --
f) Arising from futures market
   transactions                                                       --             --           --              --
g) Total reversals of income tax and
   social contribution tax credits ( a + b + c + d + e + f)         359        200,343     329,127          117,848
                                                                 Pasep          Cofins       Pasep          Cofins
h) Relating to negative mark-to-market adjustments                   39            242         128              789
i) Total tax credits reversed (g + h)                               398        200,585     329,255          118,637




                                                                                                       41
18.d) Deferred tax liabilities
                                                                               BB-Consolidated
                                                                    03.31.2006                  03.31.2005
                                                              Income         Social       Income        Social
                                                                Tax       Contribution      Tax      Contribution
a) Arising from sale of investments                                   111            40         816            294
b) Arising from mark-to-market adjustments                        84,743         30,500      43,985         15,880
c) Arising from leasing portfolio adjustment                      38,715              --     30,949              --
d) Arising from tax incentive depreciation                              2             --          2              --
e Entities abroad                                                   2,550             --      2,034              --
f) Arising from restatement of judicial deposits                 346,554        124,759     159,037         57,253
g) Arising from foreign profits                                     8,190         3,852      10,959          4,878
h) Arising from futures market
transactions                                                           --            --           --             --
i) Total deferred income tax and social
   contribution liabilities (a + b + c + d + e + f + g + h)      480,865       159,151      247,782          78,305
                                                                 Pasep          Cofins       Pasep          Cofins
j) Arising from mark-to-market adjustments                         2,310        14,217         1,199          7,381
k) Arising from restatement of judicial deposits                   9,450        58,153         4,337         26,687
l) Arising from futures market
   transactions                                                        --            --           --             --
m) Total deferred tax liabilities (i + j + k + l)                492,625       231,521      253,318         112,373


18.e) Estimates of the realization of tax credits recorded (tax losses, timing differences, negative mark-to-market
adjustments on derivatives and social contribution available for offset)
                                                                                 Banco Múltiplo (Multiple Bank)
                                                                                              03.31.2006
                                                                                    Nominal              Present
                                                                                      Value               Value
    In 2006                                                                         1,759,000          1,672,000
    In 2007                                                                         1,735,000          1,644,000
    In 2008                                                                         2,057,000          1,922,000
    In 2009                                                                         1,894,000          1,863,000
    In 2010                                                                         1,341,000            817,000
    Total tax credits                                                               8,786,000          7,918,000


In the 1st quarter of 2006, it was observed the realization of tax credits in the Multiple Bank in the amount of
R$ 200,154 thousand, corresponding to 9.75% of the forecast (R$ 2,053,000 thousand).
The above estimates of realization of tax credits were based on a technical study carried out as of December
31, 2005


18.f) Other information

18.f.1) The tax credits were recorded at the current rates calculated on their respective bases and the
recording, maintenance and reversal/use of the credits are being followed according to Resolution 3059, of
December 20, 2002 of the National Monetary Council, changed to Resolution CMN 3355, of March 31, 2006.

18.f.2) The tax credits recorded include Social Contribution to Offset relating to tax credits calculated at the
rate of 18% on tax losses and temporary differences existing on December 31, 1998. Provisional Measure
(MP) 1.858/99 (current MP 2158-35/2001) reduced the rate of social contribution from 18% to 8% and




                                                                                                       42
authorized the maintenance of this credit classified in Other Receivables - Sundry. At March 31, 2006, the
balance of this account amounted to R$ 1,801,072 thousand.

Since January 1, 2003, the rate for social contribution on net income is 9%, in conformity with Law
10637/2002

18.f.3) The projections of offset of tax credits recorded as assets in the Multiple Bank are classified in two
groups. The first arises from tax losses (income tax and social contribution on net income losses) and Social
Contribution on Net Income (CSLL) to offset, whose projection for offset is linked to the ability to generate
IRPJ and CSLL taxable income in future years. The second group arises from temporary differences, whose
ability for offset arises from changes in the provisions (estimates of realization, of reversals, write-offs and
use).

18.f.4) In September 2005, the Multiple Bank offset the balance of the IRPJ tax credits arising from tax losses.
The realization of the nominal amounts of the other tax credits recorded as assets, based on a technical study
prepared by the Multiple Bank (as of March 31, 2005), is estimated in five years, in the following proportions:

                                                CSLL to offset               Temporary differences
In 2006                                             33%                                17%
In 2007                                             28%                                18%
In 2008                                             33%                                21%
In 2009                                              6%                                25%
In 2010                                               --                               19%

This study also shows the tax credits recorded as assets at present values based on the average funding
rate of the Multiple Bank.

18.f.5) The Bank has recorded IRPJ, CSLL, Pasep and Cofins tax credits on the negative
mark-to-market adjustments of securities and derivative financial instruments recorded in a separate account in
Stockholders' equity. The Bank has only recognized Pasep and Cofins tax credits on negative mark-to-market
adjustments recorded in income for the period, in compliance with the rules included in CMN Resolution
3059/2002 and BACEN Circular 3171/2002 (Note 3, items "d" and "e").

IRPJ, CSLL, Pasep and Cofins deferred tax liabilities have been recorded on the positive mark-to-market
adjustments of securities and derivative financial instruments recorded in income and in a separate account in
Stockholders' equity (Note 3, items "d" and "e").

18.f.6) The Bank has recorded IRPJ, CSLL, PASEP and COFINS tax credits on the net negative adjustment
of operations to be recorded in future markets in the period of 01.01.2005 to 02.28.2006 (effective term of
taxation by the cash basis accounting). Assets will vary in the extent that operations generating said
adjustment shall be liquidated.


NOTE 19 – Equity in the Earnings (Loss) of Subsidiary and Associated Companies

Significant investments in Brazil and abroad are stated on the equity method of accounting, in
conformity with BACEN and CVM instructions, and are classified in an investment account in
permanent assets.

The equity accounting adjustments were recorded in the account "Equity in the earnings (loss) of
subsidiary and associated companies" as follows:




                                                                                                    43
19.a) BB - Domestic and Foreign branches
                                                              Paid in              Adjusted              Our owner- Dividend                  Equity in the              Book value         Book value
                                                              capital l          stockholder’s              ship        s/                   earnings (loss)
                                                                                     equity                         Interest
                                                                                                                    on own
                                                                                                                     capital
                      DESCRIPTION                                                                            %-                                         Foreign              03.31.2006     03.31.2005
                                                                                                                                    Operational        exchange
                                                                                                                                                       variations
      SUBSIDIARIES
BAMB-Brasilian American Merchant Bank                               922,930          1,341,442            100.00             --            23,002            (99,469)         1,341,442       1,408,768
Banco do Brasil AG. Viena (Áustria)                                  49,507             78,636            100.00             --             1,193             (3,998)            78,636          98,258
BB – Leasing Company Ltd.                                                 --            74,104            100.00             --               959             (5,669)            74,104          84,486
BB – Administradora de Cartões de Crédito S.A.                        9,300             26,263            100.00             --             1,497                  --            26,263          26,675
BB – Administradora de Consórcios S.A.                               14,100             19,442            100.00             --             4,995                  --            19,442          10,283
BB – Corretora de Seguros e Administradora de Bens S.A.              26,918             49,213            100.00             --            15,919                  --            49,213          47,292
BB –Administração de Ativos - Distribuidora de
 Títulos e Valores Mobiliários S.A.                               99,628               197,417            100.00             --          79,111                    --           197,417         177,988
BB – Banco de Investimento S.A.                                1,589,399             1,867,220            100.00             --        147,411                     --         1,867,220       2,118,804
BB – Leasing S.A. - Arrendamento Mercantil                        61,860                26,116            100.00             --           1,093                    --            26,116          23,142
Banco Popular do Brasil S.A.                                     144,529                42,001            100.00             --        (14,822)                    --            14,021          83,199
Cobra Tecnologia S.A.(1)                                          17,183                     --            99,35           645         (18,969)                    --                 --              --
      ASSOCIATED COMPANIES
Cadam S.A.                                                          183,904              346,372           21,64             --         (2,270)                    --            74,955          82,618
    SUBTOTAL                                                              --                   --              --          645         239,119              (109,136)         3,768,829       4,161,513

Abroad
Foreign exchange gain/losses in branches                                    --                 --              --            --                 --          (164,297)                 --                 --
Increase/decrease in stockholders’
equity arising from other changes                                           --                 --              --            --            (3,280)                 --                 --                 --
TOTAL                                                                       --                 --              --          645         235,839              (273,433)         3,768,829       4,161,513


19.b) BB – Consolidated
                                                          Paid in         Adjusted    Our   Divi-dends/                        Equity in the                                 Book value     Book value
                                                          capital        stockholde ownersh Interest on                       earnings (loss)
                    DESCRIPTION                                           r’s equity  ip%       own                      Operational Foreign                 (Goodwill/
                                                                                              capital                                 exchange                Negative
                                                                                                                                      variations              goodwill)
                                                                                                                                                                (A))    03.31.2006          03.31.2005
1) Interest - BB-Multiple Bank
     SUBSIDIARIES
BB – Administradora de Cartões de Crédito S.A.               9,300           26,263        100.00                   --            1,497                --               --        26,263         26,675
BB – Administradora de Consórcios S.A.                      14,100           19,442        100.00                   --            4,995                --               --        19,442         10,283
BB – Corretora de Seguros e Admin. de Bens S.A.             26,918           49,213        100.00                 --           15,919                  --               --        49,213         47,292
Cobra Tecnologia S.A. (1)                                   17,183                --        99.35               645          (18,969)                  --               --             --             --
    ASSOCIATED COMPANIES
Cadam S.A.                                                 183,904          346,372         21.64                 --          (2,270)                  --               --        74,955         82,618
    SUBTOTAL (1)                                                 --               --                            645             1,172                  --               --       169,873        166,868
2) BB-BI Banco de Investimento
     ASSOCIATED COMPANIES
Brasilseg Participações S.A. (3)                            84,290          208,202         70.00            10,500             7,288                  --             --         145,741        133,371
Cia. De Seguros Aliança do Brasil S.A. (3)                 129,861          264,856         70.00            36,306            31,359                  --             --         185,399        178,797
Brasilprev (3)(B)                                           77,687          219,922         49.99            32,017            17,776                  --        (2,701)         112,640         88,766
Brasilcap (3)                                               79,054          169,213         49.99            42,179            23,470                  --             --          84,590         72,512
Brasilsaúde (3)(C)                                          39,726           43,234         49.92             4,248             2,118                  --           111           21,471         19,688
Cia. Brasileira de Meios de Pagamento (3)                   74,534          468,600         32.00                 --           29,287                  --             --         150,091         61,423
Seguradora Brasileira de Crédito à Exportação (3)            9,165           14,591        12.088               290                32                  --             --           1,764          1,806
Cibrasec (3)                                                     --               --            --                --                --                 --             --               --         5,313
Itapebi (3)                                                150,000          199,684         19.00            10,078             2,825                  --             --          37,940         33,693
Kepler Weber (3)                                            86,230           67,721         24.38                 --          (2,589)                  --             --          16,510         28,669
Cia. Brasileira de Soluções e Serviços(1)                    8,720           26,019        40.345             1,370             2,353                  --             --           7,405             10
Ativos S.A. (3)                                              4,577           14,276         74.50            14,213             5,357                  --             --          10,809         16,223
BAF S.A. (2)                                               203,498            4,369        100.00                 --                --                 --             --           4,369          4,150
     SUBTOTAL (2)                                                --               --            --          151,201          119,276                   --        (2,590)         778,729        644,421
3) BAMB - Brasilian American Merchant Bank
SUBSIDIARIES
BBTUR – Viagens e Turismo Ltda. (3)                          9,633            9,632         99.00                   --            (302)              733                --         9,536         13,456
Ativos S.A. (3)                                              4,577           14,276        24.286                   --            1,479               61                --         3,467          5,553
Other                                                            --               --            --                  --                --               --               --             --            16
     SUBTOTAL (3)                                                   --              --              --              --            1,177              794                --        13,003         19,025
4) BB - Leasing Company Ltd.
ASSOCIATED COMPANIES
BBTUR – Viagens e Turismo Ltda.                              9,633               9,632       1,.00                  --                4                --               --            96            136
     SUBTOTAL (4)                                                   --              --              --              --                4                --               --            96            136
5) Participação da BB-Administração de Ativos - Distribuidora de Títulos e Valores Mobiliários S.A
    ASSOCIATED COMPANIES- (not valued
on the equity method)
Pronor                                                              --              --      12,02                   --                --               --               --        20,722         20,722




                                                                                                                                                                                      44
     SUBTOTAL (5)                                                 --           --         --           --              --             --           --      20,722          20,722
Abroad
Foreign exchange gain/losses in branches                          --           --         --           --              --     (164,297)             --           --             --
Foreign exchange gain/losses in subsidiaries                      --           --         --           --              --     (109,136)             --           --             --
Increase/decrease in stockholders’ equity arising from
other movements                                                                                                  (3,280)
TOTAL                                                             --           --         --    151,846         118,349       (272,639)       (2,590)     982,423         851,172
(A) The agreements for dissolution of the partnership in Maxblue Américas Holdings S.A. were signed on December 19, 2003, through which BB BI assigned its
49.90% interest in the Company in exchange for a 100% interest in Maxblue DTVM S.A. The Extraordinary General Meeting of shareholders held on December 5,
2004 changed the name of Maxblue DTVM S.A. to ¨Brasil Aconselhamento Financeiro e DTVM S.A. As from the 2nd half of 2005, the Company has not been
recorded on the equity method of accounting. A provision for loss of R$ 3,920 thousand was recorded. .
(1)   Information regarding balance sheet at Dec/2005
(2)   Information regarding balance sheet at May/2005.
(3)   Information regarding balance sheet at Feb/2006.
Obs.: The goodwill recorded on the acquisition of investments was based on the estimate of future profitability and the negative goodwill was based on other economic reasons




NOTE 20 – Related-party Transactions

The transactions carried out between companies of the group are:

                                                                                                    March 31, 2006                                March 31, 2005
                                                                                                  Assets       Income                           Assets       Income
                                                                                               (liabilities) (expenses)                      (liabilities) (expenses)
Cash and cash equivalents                                                                                407                      --                    620          --
Foreign subsidiaries                                                                                     407                      --                    620          --
Short-term interbank deposits                                                                      2,918,242                101,498               449,014       57,850
Foreign subsidiaries                                                                               2,321,485                 79,961                       --    44,427
BB-Leasing S.A. – Arrendamento Mercantil                                                             506,636                 21,537               297,920       13,423
BB-Banco Popular do Brasil S.A.                                                                       90,044                      --               40,000            --
Dollar Diversified Payment Rights Finance Company                                                         77                      --              111,094            --
Securities                                                                                           164,871                    412                  9,794         347
Foreign subsidiaries                                                                                             --               525                     --       740
BB-Leasing S.A. – Arrendamento Mercantil                                                                   367                      --               9,794           --
BB-Administração de Ativos - DTVM S.A.                                                                       --                  (25)                     --       (16)
BB-Administradora de Cartões de Crédito S.A.                                                                 --                  (88)                     --     (165)
Brasil Aconselhamento Financeiro S.A.                                                                        --                     --                    --     (151)
BB-Administradora de Consórcios S.A.                                                                         --                     --                    --       (61)
Dollar Diversified Payment Rights Finance Company                                                     164,504                       --                    --         --
Loan operations                                                                                         69,171                 3,600               93,166      173,662
Subsidiárias no exterior                                                                                     --                  509                      --       371
BB-Leasing S.A. – Arrendamento Mercantil                                                                68,765                 3,046               68,376        4,069
BB-Administração de Ativos - DTVM S.A.                                                                     406                     45                   367    169,222
Cobra Tecnologia S.A.                                                                                        --                     --             24,423            --
Other receivables                                                                                     119,266                       --            207,100            --
BB-Banco de Investimento S.A.                                                                              942                      --               3,027           --
BB-Leasing S.A. – Arrendamento Mercantil                                                                 3,858                      --               4,512           --
BB-Administração de Ativos - DTVM S.A.                                                                   2,761                      --             66,853            --
BB-Administradora de Cartões de Crédito S.A.                                                               213                      --             10,336            --
BB-Corretora de Seguros e Administradora de Bens S.A.                                                   22,697                      --             22,109            --
Cobra Tecnologia S.A.                                                                                      609                      --                  675          --
BB-Banco Popular do Brasil S.A.                                                                          4,201                      --             15,405            --
BB-Administradora de Consórcios S.A.                                                                       521                      --               1,377           --
Brasil Aconselhamento Financeiro S.A.                                                                        --                     --                  159          --
BB-Tur Viagens e Turismo Ltda.                                                                          14,139                      --               7,532           --
Ativos S.A.                                                                                             19,392                      --               9,596           --
Dollar Diversified Payment Rights Finance Company                                                             2                     --                    3          --
Nikkei Remittance Rights Finance Company                                                                49,931                      --             65,516            --
Demand deposits                                                                                       (21,815)                      --           (26,666)            --
Foreign subsidiaries                                                                                       (89)                     --                 (63)          --
BB-Banco de Investimento S.A.                                                                            (132)                      --                 (83)          --
BB-Leasing S.A. – Arrendamento Mercantil                                                                   (33)                     --                 (96)          --
BB-Administração de Ativos – DTVM S.A.                                                                     (60)                     --                (425)          --



                                                                                                                                                                45
BB-Banco Popular do Brasil S.A.                                  (4)         --              --
BB-Administradora de Cartões de Crédito S.A.                    (47)         --           (101)               --
BB-Corretora de Seguros e Administradora de Bens S.A.          (603)         --           (485)               --
BB-Tur Viagens e Turismo Ltda.                               (6,065)         --         (1,734)               --
Cobra Tecnologia S.A.                                       (14,765)         --        (23,601)               --
Brasil Aconselhamento Financeiro S.A.                             --         --            (17)               --
Ativos S.A.                                                     (11)         --            (57)               --
BB-Administradora de Consórcios S.A.                             (6)         --             (4)               --
Interbank deposits                                      (10,342,126)         --     (7,328,666)               --
Foreign subsidiaries                                    (10,342,126)         --     (7,328,666)               --
Deposits received under security repurchase                (782,283)   (37,522)     (1,232,271)         (44,847)
agreements
Foreign subsidiaries                                        (44,708)           --      (54,452)                 --
BB-Banco de Investimento S.A.                              (188,340)   (12,247)       (549,837)         (22,808)
BB-Leasing S.A. – Arrendamento Mercantil                       (513)        (68)             --              (60)
BB-Administração de Ativos – DTVM S.A.                     (271,088)   (15,643)       (266,278)         (13,182)
BB-Administradora de Cartões de Crédito S.A.               (112,011)    (1,323)       (183,313)          (1,201)
BB-Corretora de Seguros e Administradora de Bens S.A.      (126,845)    (5,954)       (117,100)          (5,289)
Cobra Tecnologia S.A.                                             --           --         (650)                 --
BB-Banco Popular do Brasil S.A.                             (16,615)      (803)        (48,573)          (1,948)
BB-Administradora de Consórcios S.A.                        (20,032)      (869)         (6,747)            (295)
Brasil Aconselhamento Financeiro S.A.                             --           --       (5,321)                 --
BB-Tur Viagens e Turismo Ltda.                               (2,131)      (615)              --              (64)
Funds from acceptance and issue of securities               (39,073)           --      (32,629)                 --
Foreign subsidiaries                                        (39,073)           --      (32,629)                 --
Foreign borrowings                                       (4,222,645)           --   (2,749,725)          (6,066)
Foreign subsidiaries                                     (4,222,645)           --   (2,749,725)          (6,066)
Foreign onlendings                                       (1,068,703)           --     (781,873)                 --
Foreign subsidiaries                                     (1,068,703)           --     (781,873)                 --
Derivative financial instruments                             (1,829)        391       (110,536)            (924)
Foreign subsidiaries                                         (1,500)           --     (108,790)                 --
BB-Banco de Investimento S.A.                                     --           --       (1,494)          (1,341)
BB-Leasing S.A. – Arrendamento Mercantil                          --        391              --              417
BB-Administradora de Cartões de Crédito S.A.                    (17)           --         (192)                 --
BB-Administradora de Consórcios S.A.                           (312)           --          (60)                 --
Other liabilities                                        (2,757,686)           --   (4,031,213)                 --
Foreign subsidiaries                                       (438,681)           --     (586,865)                 --
BB-Leasing S.A. – Arrendamento Mercantil                        (23)           --          (46)                 --
BB-Administradora de Cartões de Crédito S.A.                (47,724)           --      (11,721)                 --
BB-Administração de Ativos – DTVM S.A.                       (7,741)           --       (7,146)                 --
Cobra Tecnologia S.A.                                       (34,621)           --     (150,705)                 --
BB-Tur Viagens e Turismo Ltda.                               (2,162)           --       (3,367)                 --
BB-Banco Popular do Brasil S.A.                              (1,906)           --       (1,983)                 --
Dollar Diversified Payment Rights Finance Company        (2,130,858)           --   (2,935,900)                 --
Nikkei Remittance Rights Finance Company                    (93,970)           --     (333,480)                 --
Other operating income                                            --     19,785              --           16,001
Foreign subsidiaries                                              --          25             --                51
BB-Banco de Investimento S.A.                                     --      8,419              --            6,054
BB-Administração de Ativos – DTVM S.A.                            --      4,708              --            3,572
BB-Administradora de Cartões de Crédito S.A.                      --        531              --              401
BB-Corretora de Seguros e Administradora de Bens S.A.             --      1,894              --            1,357
BB-Tur Viagens e Turismo Ltda.                                    --           7             --                 1
BB-Administradora de Consórcios S.A.                              --      1,823              --            4,329
Ativos S.A.                                                       --        973              --              236
Dollar Diversified Payment Rights Finance Company                 --      1,405              --                 --
Other administrative/operating expenses                           --   (91,045)              --        (125,056)
BB-Administração de Ativos – DTVM S.A.                            --    (2,326)              --          (2,398)
Brasil Aconselhamento Financeiro S.A.                             --    (3,980)              --          (3,980)




                                                                                                  46
BB-Banco Popular do Brasil S.A.                                         --      (2,619)              --         (1,949)
Cobra Tecnologia S.A.                                                   --     (39,665)              --        (56,562)
Dollar Diversified Payment Rights Finance Company                       --     (40,243)              --        (53,267)
Nikkei Remittance Rights Finance Company                                --      (2,212)              --         (6,900)

Other receivables include accounts receivable from related parties, dividends and interest on own capital
receivable.
Transactions carried out between the companies included in the consolidation are eliminated on
consolidation (Note 2.b).

Nota 21 – Operating Limits – Basle Agreement

At March 31, 2006, the referential stockholders' equity exceeded the minimum required by the Brazilian Central
Bank by R$ 10,858,431 and the coefficient of capital adequacy was 18.28% (15.62% as of March 31, 2005),
while the minimum required is 11%.

The risk-weighted assets are as follows:


                                                                             March 31, 2006           03.31.2005
Cash and cash equivalents                                                         2,686,152            2,443,035
Credits and securities issued or guaranteed by the                               85,658,835           73,133,091
  Brazilian Government
Deposits with the Brazilian Central Bank                                          21,969,637          20,787,070
Receivables from related companies                                                     6,712               5,970
Specific credits - rescheduling of rural credits                                     626,859             558,821
Foreign exchange portfolio                                                           630,952             788,419
Other                                                                              1,306,807           1,038,285
Total subject to zero-risk                                                       112,885,955          98,751,691

Foreign currency funds                                                                44,276          11,376,696
Clearing services for checks and other papers                                      2,839,043           2,442,455
Foreign exchange portfolio                                                           896,582           1,156,957
Deposits with other banks                                                          1,321,108             585,023
Investments in gold                                                                    4,260               3,038
Total subject to 20% risk                                                          5,105,269          15,564,169
Weighted amount                                                                    1,021,054           3,112,833

Funds applied in interbank deposits                                               13,848,516          13,551,578
Foreign exchange portfolio                                                         7,355,972           8,198,843
Foreign securities                                                                   215,598             283,911
Other                                                                                266,832             710,975
Total subject to 50% risk                                                         21,686,918          22,745,307

Weighted amount                                                                   10,843,459          11,372,653

Loan operations                                                                   88,166,732          77,750,911
Property and equipment in use                                                       3,014,610           2,886,027
Leased assets                                                                         868,729             598,313
Investments                                                                         1,019,298             885,369
Securities                                                                          3,993,423           4,069,246
Foreign exchange portfolio                                                            246,317             299,885
Memorandum accounts                                                               (9,077,023)         (8,866,709)
Other                                                                             18,574,989          14,492,713
Total subject to 100% risk                                                       106,807,075          92,115,755



                                                                                                          47
Weighted amount                                                              106,807,075         92,115,755

Deferred tax credits - income tax and social contribution                      8,889,176           7,794,993
on net income
Total subject to 300% risk                                                     8,889,176          7,794,933
Weighted amount                                                               26,667,528         23,384,979

Total assets subject to risk weighting                                       255,374,393        236,974,915
Total weighted amount                                                        145,339,116        129,986,220

The calculations of the required stockholders' equity and the adequacy coefficient are as follows:
                                                                       March 31, 2006              03.31.2005

A) Assets subject to risk weighting                                        255,374,392          236,974,915
B) AWR (assets weighted by risk)                                           145,339,115          129,986,220
C) SWAP credit risk                                                           1,095,638              949,642
D) Requirement of stockholders' equity on AWR (11% of b)                     15,987,303           14,298,484
E) Requirement of stockholders' equity on SWAP (20% of c)                       219,128              189,928
F) Requirement of stockholders' equity on interest rate exposure                198,002              351,012
G) Required stockholders' equity (RSE): d + e + f                            16,404,432           14,839,425
H) Referential equity amount (RE)                                            27,262,863           21,070,426
   Level I                                                                   19,169,470           14,746,358
     Capital                                                                 10,797,337            9,864,153
     Capital reserves                                                              4,778                4,763
     Revenue reserves                                                         6,020,150            4,294,251
       Adjustment to market value - securities and derivatives                  145,800              (94,798)
       Retained earnings (accumulated losses)                                        787                   29
       Credit Income Accounts                                                16,074,046           13,990,066
       Debit Income Accounts                                               (13,731,377)         (13,025,487)
       Treasury stock                                                         (125,779)            (125,779)
       Tax credits excluded from Level I of RE                                  (16,272)           (160,840)
   Level II                                                                   8,093,393            6,324,068
     Subordinated debts eligible as capital                                   8,070,083            6,298,367
       - Funds obtained from the FCO                                          7,445,700            6,298,367
       - Funds obtained abroad                                                  624,383                     --
       Revaluation reserves                                                       23,310               25,701
I) Ratio between Referential equity amount to required
         stockholders' equity: RE and RSE (h/g)                                   1,66                 1,42
J) Surplus/(insufficiency) of stockholders' equity: RE - RSE (h-g)          10,858,431            6,231,001
L) Margin/(surplus) of leverage: (j x 100)/11 (“J” x 100)/11                98,713,011           56,645,464
M) Basel Ratio: RE x 100/(RSE/0,11)                                              18,28                15,62




                                                                                                 48
NOTE 22 – Balance Sheet by Currency and Foreign Exchange Exposure

The purpose of this balance sheet is to show the assets and liabilities in foreign currency in Brazil
and abroad.
                                                                           BB – Consolidated
                                                                   March 31, 2006                              March 31, 2006

                                                Balance          Local           Foreign currency           Foreign currency
                                                Sheet            currency        Brazil    Abroad           Brazil       Abroad
ASSETS                                           264,634,926   226,507,104    10,611,555 27,516,267       245,685,361 27,588,226
Current Assets and Long-Term Receivables         259,111,271   221,159,214    10,590,124 27,361,932       240,739,301 27,388,531
Cash and cash equivalents                          4,055,796     2,557,662       158,643    1,339,491      14,407,563      606,118
Short-term interbank investments                  35,744,134    21,434,859              -- 14,309,275      17,746,858 13,655,841
Securities and derivative financial instruments   68,631,273    65,368,530       368,389    2,894,354      74,089,369    3,753,033
Interbank accounts                                24,912,043    24,910,739              --      1,304      23,347,967        2,796
Interdepartmental accounts                            12,409        12,409              --          --        140,229            --
Loan and lease operations                         88,335,936    77,777,580     1,894,791    8,663,565      77,899,067    9,189,395
Other receivables and assets                      37,419,680    29,097,435     8,168,302      153,943      33,108,248      181,348
Permanent Assets                                   5,523,655     5,347,890        21,431      154,334       4,946,060      199,695
  Investments                                      1,030,281       985,304        21,431       23,546         896,352       32,060
  Property and equipment                           3,014,610     2,890,326              --    124,284       2,886,026      167,635
  Leased assets                                      894,927       894,927              --          --        619,437            --
  Deferred charges                                   583,837       577,333              --      6,504         544,245            --

LIABILITIES                                     264,634,926    226,782,890    14,035,880    23,816,155    245,685,361    28,716,766
Current and Long-Term Liabilities               245,295,001    207,447,645    14,035,880    23,811,475    230,624,222    28,716,766
Deposits                                        139,194,563    123,563,703     3,258,012    12,372,848    120,096,492    15,849,163
  Demand deposits                                31,877,536     27,658,429     3,257,966       961,141     29,340,311     1,080,302
  Savings deposits                               32,975,353     32,975,353             --            --    31,417,670             --
  Interbank deposits                              5,393,288        960,634             --    4,432,654      6,569,654     5,775,251
  Time deposits                                  68,948,386     61,969,287            46     6,979,053     52,768,858     8,993,610
Deposits received under security repurchase      42,757,581     40,994,785             --    1,762,796     43,085,836     1,201,428
agreements
Funds from acceptance and issue of securities     2,788,614              --            --    2,788,614      4,121,145     4,121,145
Interbank accounts                                1,477,313      1,469,723             --        7,590      1,520,579         8,913
Interdepartmental accounts                        1,272,575        196,383     1,076,192             --     1,385,209             --
Borrowing and onlendings                         17,083,954     13,052,768       347,841     3,683,345     27,830,678     5,013,263
Derivative financial instruments                  1,446,247      1,446,247             --            --       673,825             --
Other liabilities                                39,274,154     26,724,036     9,353,835     3,196,283     31,910,457     2,522,855

DEFERRED INCOME                                     130,873        126,193             --        4,680        128,240             --

STOCKHOLDERS' EQUITY                             19,209,052     19,209,052             --            --    14,932,899             --


Banco do Brasil does not follow the policy of incurring exposure in foreign currency which requires
capital for its coverage, and stays within the 5% exposure limit in relation to the Reference Equity,
as prescribed by CMN Resolution No. 2.891, of September 26, 2001. The foreign exchange
exposure at March 31, 2006 was R$ 1,339,036 thousand (R$ 745,014 thousand at March 31,
2005).

The Brazilian Central Bank authorized the use of a methodology which considers the exposure in
Euro, U.S. dollar, Swiss franc, Yen, Pound sterling and Gold as one currency, incorporating the
diversification effect in the calculation of the foreign exchange exposure. In order to improve
foreign exchange risk management, Banco do Brasil adopted this methodology.


NOTE 23 – Retirement and Pension and Health Plans - Post-Employment Benefits

23.a)    Caixa de Previdência dos Funcionários do Banco do Brasil – Previ
Banco do Brasil is the sponsor of Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI) which
provides participants and their dependents with benefits which are complementary or similar to those of the
Basic Government Retirement Plan. The plans offered through PREVI are of defined contribution (Plano



                                                                                                                    49
Previ Futuro) or defined benefit (Plan 1), the latter having adopted the capitalization method for actuarial
calculations. At March 31, 2006, the number of participants was 135,885, of which 46,088 are active (Plano
1), 33,457 actives 885 participants: 46,088 ativos do Plano de Benefícios n.º 1, 33,457 actives (Plano Previ
Futuro) and 56,340 retired employees.


23.a.1) The funding of the vested and unvested benefits is summarized as follows:
a) Participants employed before April 14, 1967, who were not retired and who were not in a position on that
date to request their retirement, contemplated in the contract signed on December 24, 1997 between the
Bank and PREVI (Plan 1): The sponsor assumes the commitment for the payment of pensions for this group;
the mathematical reserves which guarantee the benefits are not fully funded. The pension rights of this group
of participants are characterized as a defined benefit.
b) Participants employed between April 15, 1967 and December 23, 1997 (Plan 1): active participants
contribute 3% of their contribution salary plus 2% of the amount of such salary that exceeds six months of
the PREVI contribution (R$ 2,200.06 at March 31, 2006), plus 8% of the amount of such salary that exceeds
the PREVI contribution. Participants receiving benefits contribute 8% of the amount of the pension complement
and the sponsor an amount equal to the contributions of the participants. The retirement benefit of this group
is characterized as a defined benefit.
c) Participants employed as from December 24, 1997 (Plano Previ Futuro): active participants contribute to
PREVI an amount between 7% and 17% of their contribution salary, varying based on length of service and
the amount of the contribution salary. There is no contribution for retired participants. The sponsor
contributes an amount equal to the contributions of the participants, limited to 14% of the total contribution
payroll of these participants. The retirement benefit of this group is characterized as a defined contribution.

23.a.2) Effects of Benefit Plan 1, based on actuarial valuations as of December 31, 2004 and 2005 carried out
by an independent actuary, and of the Plano Previ Futuro as required by December 13, 2000 CVM Resolution
371/00:
a) Equity effect (reconciliation of assets and liabilities):
                                                                                      March              March
Specification                                                                        31,2006            31,2006
                                                                                      Plan 1             Plan 1
1) Present value of actuarial liabilities with coverage                                58,033,630         52,354,343

2) Present value of actuarial liabilities not covered                                            --                    --

3) Present value of actuarial liabilities (1 + 2)                                      58,033,630         52,354,343

4) Fair value of the plan assets                                                      (81,439,183)      (68,880,031)
5) Present value of liabilities in excess of (less than) the fair value of the
                                                                                      (23,405,553)      (16,525,688)
assets (3 + 4)
6) Actuarial (gains) or losses not recognized                                         (20,217,605)      (13,877,071)

7) Net actuarial liability (asset) to be recorded (5 - 6)                              (3,187,948)        (2,648,617)


The Previ Futuro Plan, being a defined contribution plan, is not required to record actuarial assets or liabilities.

b) Amounts paid to PREVI:
                                                         March 31, 2006                       03.31.2005
Specification                                                  Plano                           Plano
                                                    Plan 1      Previ     Total     Plan 1      Previ          Total
                                                               Futuro                          Futuro
Sponsor contributions                               113,415      17,249   130,664   107,893      12,905        120,798



                                                                                                          50
        Amounts paid to PREVI referring to the
                                                                     --            --            --   511,191              --        511,191
        1997 Contract
        Total paid to PREVI                                 113,415        17,249         130,664     619,084       12,905           631,989

        c) Effect on net income:
                                                                     March 31, 2006                             03.31.2005
        Specification                                                     Plano                                   Plano
                                                            Plan 1         Previ         Total        Plan 1       Previ             Total
                                                                          Futuro                                  Futuro
        1) Cost of current service (with interest)           (67,603)     (33,614)      (101,217)      (70,468)   (25,178)           (95,646)

        2) Interest on actuarial liabilities              (1,400,921)              -- (1,400,921) (1,337,838)           -- (1,337,838)

        3) Expected earnings on the plan assets            1,995,561               --   1,995,561     1,786,102         --       1,786,102
        4) Deferment of the net earnings from assets
        and liabilities as from June/2003 (2+3)              594,640               --    594,640       448,264          --           448,264

        5) Total gross (expense)/income (1 - 2 - 3 + 4)      (67,603)     (33,614)      (101,217)      (70,468)   (25,178)           (95,646)

        6) Expected contributions from participants           49,306       17,227         66,533        46,493     12,918             59,411
        7) Previ Liabilities/Assets (expense)/income
                                                              (3,663)              --     (3,663)       (8,408)         --            (8,408)
        (1997 Agreement)

        8) Subtotal net (expense) /income (5 + 6 + 7)        (21,960)     (16,387)       (38,347)      (32,383)   (12,260)           (44,643)

        9) Previ management fee (5% of the
        employers’ union dues)                                (5,671)        (862)        (6,533)       (5,395)      (645)            (6,040)

        10) Effect of the net
        (expense)/income (8 + 9)                             (27,631)     (17,249)       (44,880)      (37,778)   (12,905)           (50,683)



        23.a.3) The principal economic assumptions adopted for the actuarial calculations were the following:

                                                                                                        March 31,       March 31,
        Specification
                                                                                                        2006            2005
        - Real interest rate used for discounting actuarial liabilities to present value                    6.3% a.a.            6.7% a.a.
        - Real expected yield on plan assets                                                                6.3% a.a.            6.7% a.a.

        - Estimated salary increases:
             - Plan 1                                                                                    1.3154% a.a.   1.4712% a.a.
             - Plano Previ Futuro                                                                        3.3914% a.a.   3.5320% a.a.



23.b)   Benefits of sole responsibility of the Bank


        Banco do Brasil is also responsible for assistance and pension benefits for employees employed
        before April 14, 1967, not covered by the PREVI Benefits Plan, with characteristics of a defined
        benefit plan, and the regime adopted for the actuarial calculations is that of capitalization. There
        were 8,656 retired employees and surviving spouses on March 31, 2005.

        The main benefits are: (a) retirement pensions to founder participants and pension payments to
        survivors of participants deceased prior to April 14, 1967; (b) payment of retirement supplements to



                                                                                                                                51
the other participants employed by Banco do Brasil who retired up to April 14, 1967 or who, on that
date, would have the right through length of service to retire and who had at least 20 years of effective
service with the Bank; and (c) increase in retirement benefits and pension payments in excess of
those provided by the PREVI Benefit Plans, as a result of judicial and administrative decisions due to
the restructuring of job and salary plans and incentives created by the Bank.

23.b.1) The cost of these benefits is totally funded by Banco do Brasil.

23.b.2) Effects on the financial statements based on actuarial valuations as of December 31, 2004 and 2005
carried out by an independent actuary, as required by CVM Resolution 371:

a) Equity effect (reconciliation of assets and liabilities):
                                                                                      March 31,        March 31,
Specification
                                                                                        2006             2005
1) Present value of actuarial liabilities with coverage                                           --               --
2) Present value of actuarial liabilities not covered
                                                                                        1,588,703       1,532,148
   (Plans without financial assets)
3) Present value of actuarial liabilities (1 + 2)                                       1,588,703       1,532,148
4) Fair value of the plan assets                                                                  --               --
5) Present value of liabilities in excess of the
                                                                                        1,588,703       1,532,148
  fair value of the assets (3 + 4)
6) Actuarial (gains) or losses not recognized                                             188,887           180,239
7) Net actuarial liability/(asset) to be recorded (5 - 6)                               1,399,816       1,351,909

b) Amounts paid to PREVI:
                                                                                       March 31,        March 31,
Specification
                                                                                           2006             2005
Total benefits paid to Previ                                                               66,448            64,451


c) Effect on net income::
                                                                                       March 31,        March 31,
Specification
                                                                                           2006             2005
1) ) Cost of current service                                                                    --                --
2) Expected contributions from participants                                                     --                --
3) Interest on actuarial liabilities                                                     (36,431)           (37,427)

4) Actuarial gains or (losses)                                                                  --                --

5) Expected earnings on assets                                                                  --                --
6) Effect of the expense recorded (1 - 2 + 3 + 4 - 5)                                    (36,431)           (37,427)


23.b.3) The economic assumptions adopted for the actuarial calculations are the same as those adopted for
the PREVI Plan 1 (item 24 (a.3)).

23.c)   Cassi - Caixa de Assistência dos Funcionários do Banco do Brasil



The Bank is the sponsor of a Health Plan managed by CASSI - Caixa de Assistência dos Funcionários do
Banco do Brasil. The main objective is to provide coverage for expenses with the promotion, protection,



                                                                                                       52
recovery and rehabilitation of a member's health and of his/her inscribed beneficiaries. At March 31, 2006,
there were 158,721 participants, of which 86,813 active and 71,908 retired participants and pensioners.

The Bank contributes monthly an amount equivalent to 150% of the total contributions from
members (active and retired) and from pension beneficiaries of employees employed before
December 23, 1997 and 100% of the total contributions from participants employed after that date.
Monthly contributions from members and pension beneficiaries amount to 3% of the total payroll or
the total retirement or pension plan benefits.

23.c.1) Effects of the CASSI Plan on the financial statements, based on actuarial appraisals as of December
31, 2004 and 2005 carried out by an independent actuary, as required by CVM Resolution 371/12.13.2000:
:
a) Equity effect (reconciliation of assets and liabilities):
                                                                                    March 31,      March 31,
 Specification
                                                                                         2006          2005
1) Present value of actuarial liabilities with coverage                                         --              --
2) Present value of actuarial liabilities not covered
                                                                                     3,232,214        3,078,155
   (Plans without financial assets)
3) Present value of actuarial liabilities (1 + 2)                                    3,232,214        3,078,155

4) Fair value of the plan assets                                                                --              --

5) Present value of liabilities in excess of the fair value of the assets (3 + 4)    3,232,214        3,078,155

6) Actuarial (gains) or losses not recognized                                        1,341,064        1,360,228

7) Net actuarial liability (asset) to be recorded (5 - 6)                            1,891,150        1,717,927


b) Amounts paid to Cassi:
Specification                                                                       March 31,         March 31,
                                                                                      2006                2005
Sponsor contributions                                                                   99,313             92,389

The amounts of R$ 99,313 thousand and R$ 92.389 thousand comprise Employer Contributions for
Active employees and Pensioners, as follows: at March 31, 2006– Active employees R$ 39,378
thousand and Pensioners R$ 59.935, and March 31, 2005 – Active employees R$ 36,600 thousand
and Pensioners R$ 55,789 thousand.



c) Effect on net income:
Specification                                                                         March 31,        March 31,
                                                                                          2006             2005
1) Cost of current service (with interest)                                               (9,271)            (7,808)

2) Expected contributions from participants                                                      --                 --

3) Interest on actuarial liabilities                                                    (77,835)           (78,670)

4) Actuarial (gains) or losses                                                          (17,132)           (15,517)

5) Expenses with current employees                                                      (39,378)           (36,600)

6) Expected earnings on assets                                                                   --                 --




                                                                                                      53
    7) Effect of the expense recorded (1 - 2 + 3 - 4 – 5 - 6)                                                   (143,616)         (138,595)



23.c.2) The economic assumptions adopted for the actuarial calculations were the same as those applied to the
PREVI Plan 1 (item 23.a.3).



23.d) Policy for the recognition of actuarial gains and losses
In accordance with CVM Deliberation 371, the actuarial gains or losses to be recognized as income
or expense in a defined benefit plan are the amount of unrecognized gains and losses that exceed,
in each period, the higher of the following limits:

.     10% of the present value of the total actuarial liability of the defined benefit; and
.     10% of the fair value of plan assets.

23.d.1) Benefits of Sole Responsibility of the Bank (Plan 1): Actuarial losses relating to these benefits are
being recorded in the same year the actuarial calculation is made because the persons involved are all former
employees, and thus there is no remaining length of service to amortize.

23.d.2) Benefit Plan 1: Previ Plan 1 has assets at fair value in excess of the liabilities, thus permitting the
recording of actuarial gains. Face (i) the remaining pension commitments of the plan; (ii) the fluctuations that
can affect the fair value of plan assets and (iii) the possibility to realize actuarial gains, the Bank,
conservatively, is not recording in the quarter the actuarial gains.

23.d.3) Cassi Actuarial Liability: the actuarial losses relating to this liability are recognized over the average
remaining work period estimated for the employees participating in the plan (15.5 years).

23.e) Summary of the Provisions for the PREVI and CASSI Liabilities

                                                          1º Trimestre 2006
                                                                (Expense)            Transfer
                                                                  income             between      Unrecogni
                                              Net actuarial                                           zed                    Net actuarial
                                                              recorded in         unamortized                      Sponsor
                                                liability/                                          actuarial                  liability
                                                               the income         reserves and                     contribu-
                 Specification                   (asset)                                          (losses)/ga                  (asset)
                                                                statement           advanced                     tions made
                                               on January                                              ins                   on March 31,
                                                              considering         amortization                   in the year
                                                 1, 2006                                                                         2006
                                                                 actuarial
                                                              adjustments
                                                                                                                                      F=
                                                   A               B                   C              D              E
                                                                                                                                 (A-B+C+D+E)

Actuarial asset CVM No. 371                   (3,187,948)                    --              --            --               --    (3,187,948)

Actuarial asset 1997 contract                   (681,185)           (3,663)                  --            --               --     (677,522)

- Advanced amortization (1997 contract)       (9,996,980)          234,073             287,917             --               --    (9,943,136)

    - Unamortized reserves (1997 contract)    10,116,917          (237,736)           (287,917)      13,330                 --    10,080,066

- Unrecognized actuarial losses (1997
         contract)
                                                (801,122)                    --              --     (13,330)                --     (814,452)

PREVI actuarial liability in respect of the
Informal Plan (sole responsibility of the       1,429,833          (36,431)                  --            --       (66,448)       1,399,816
Bank)

CASSI actuarial liability                       1,846,847         (104,238)                  --            --       (59,935)       1,891,150




                                                                                                                             54
                                                                  1st quarter 2005
                                                                                (Expense) income
                                                           Net actuarial                                                   Net actuarial
                                                                                    recorded in     Sponsor contribut-
                                                         liability/ (asset)                                              liability (asset)
                      Specification                         on January
                                                                              the income statement   ions made in the
                                                                                                                           on March 31,
                                                                              considering actuarial        year
                                                              1, 2005                                                          2005
                                                                                   adjustments
                                                                 A                     B                    C             D=(A-B+C)

      Actuarial asset CVM No. 371                          (2,570,095)                (23,975)           (102,497)       (2,648,617)

      PREVI actuarial liability in respect of the 1997
      contract
                                                               442,001                 (8,408)           (511,191)           (60,782)

      - Advanced amortization (1997 Agreement)              (9,044,502)               (295,981)           (236,741)        (9,577,224)

      - Unamortized reserves (1997 Agreement)                 9,486,503                304,389            (274,450)          9,516,442

      PREVI actuarial liability in respect of the
      Informal Plan (sole responsibility of the Bank)
                                                             1,378,933                (37,427)            (64,451)         1,351,909

      CASSI actuarial liability                              1,671,721               (101,995)            (55,789)         1,717,927



      23.f)     PREVI contributions parity

      On December 16, 2000 parity between the Bank contributions and those of the participants was
      instituted in compliance with that established in the Brazilian Federal Constitution,

      On April 12, 2001, the Honorable Federal Judge of the 13th Federal District Court of the Justice
      Department of the Federal District partially granted the motion for a collective writ of mandamus
      lodged by the São Paulo Banking Establishments Workers´ Union – SEEB against the Supplemental
      Social Security Secretary and the Tax Director, appointed by that Secretary to the Caixa de
      Previdência dos Funcionários do Banco do Brasil - Previ.

      The writ suspends the decision issued by the Tax Director appointed by that Secretary to the Caixa de
      Previdência dos Funcionários do Banco do Brasil - Previ, on April 6, 2001, which authorized the use
      of R$ 2.2 billion derived from the portion attributable to the Banco do Brasil in the reserve balance
      remaining in Previ, after implementation of parity for amortization of the social security liability liable by
      the Bank to that Entity, retroactive to December 15, 2000.

      According to that disclosed in the Relevant Fact issued on May 3, 2006, an agreement was signed,
      with the consent of the Caixa de Previdência dos Funcionários do Banco do Brasil - Previ, with the
      Banking Establishment Workers’ Union of Brasília, São Paulo and Rio de Janeiro, for the purpose of
      overcoming litigation, by using the amount in question to fulfill the purpose of improving the Benefits
      Plan and amortize the social security liability or reduce/offset future Bank contributions.

      Therefore there will be a positive impact on the Bank results in the amount of roughly R$ 880 million
      net of taxes owed to the agreement after approval of the amendments to the First Benefits Plan by the
      Supplemental Social Security Secretary (SPC) protocol withdrawing the writs of mandamus filed in the
      courts, which took place on May 4, 2006 and May 5, 2006 respectively.


NOTE 24 – Compensation Paid to Employees and Management


      The monthly compensation of employees and management of the Bank in Brazil is presented below (in
      reais) in the format required by item 4, Section C of Ministry of Finance Statement of Justification 139/88:



                                                                                                                          55
Lowest salary                                                          1st quarter/2006     1st quarter/2005
Standard amount                                                                  827,40               780,30
Semiannual bonus                                                                 206,85               195,07
Fixed amount – Trade Union Agreement 2004                                         31,80                30,00
Total                                                                          1,066,05             1,005,37

Highest salary
Standard amount                                                                  1,144,50          1,079,68
Amount per individual/supplement for length of service - I                         395,51            374,81
Amount per individual - standard amount                                          1,213,06          1,144,36
Variable temporary supplement – commissioned position                           11,054,14         10,426,63
Additional per function                                                          2,753,40          2,597,40
Additional for temporary work updated                                            1,709,10          1,612,20
Semiannual bonus                                                                 1,803,89          1,702,12
Total                                                                           20,073,60         18,937,20

Average salary                                                                   3,219,03          3,069,88

Management

President                                                                       26,160,00         24,679,20
Vice-President                                                                  23,570,10         22,235,70
Director                                                                        20,073,60         18,937,20



NOTE 25 – Assignment of Employees to External Organizations

25.a) With costs for the Bank
a) Federal government
Assignments are regulated by article 93 of Law 8112/90 (amended by Law 9257/97), by
Decree 925/93, and by PGFN/CJN Note 088/96 issued by the General Counsel of the Federal
Treasury.

                                                             1st quarter/2006               1st quarter/2005
Number of employees assigned                                               15                             12
Cost for the period                                          R$ 639 thousand                R$ 503 thousandl

b Labor unions
Assignments occur in cases prescribed in the Collective Labor Agreement or by commitments
assumed as a result of salary negotiations:
:
                                                       1st quarter/2006           1st quarter/2005
Number of employees assigned                                        131                        124
Cost for the period                                   R$ 2,578 thousand          R$ 2,235 thousand


c) Other organizations/entities
Assignments occur as a result of agreements of strategic business interest of the Bank:
                                                            1st quarter/2006                1st quarter/2005
Number of employees assigned                                                 3                             3
Cost for the period                                         R$ 233 thousand                 R$ 210 thousand
25.b) Without cost to the Bank

                                                             1st quarter/2006               1st quarter/2005


                                                                                                 56
      a) Federal, state and municipal governments                                      360                                    319
      b) External organizations                                                        671                                    564
      c) Employee entities                                                              33                                     30
      d) Subsidiary and associated companies                                           321                                    314

      Total employees assigned                                                       1.534                                 1.366



NOTE 26 – Commitments, Responsibilities and Contingencies


      26.a) Contingent liabilities

      The Bank and its subsidiaries are parties in lawsuits involving labor, civil, tax and social security
      contingencies.

      The Bank classifies contingencies as remote, possible and probable, based on the possibilities of loss
      determined after a legal update of each claim.

      This procedure complies with Statement XXII - Contingencies issued by the Institute of Independent
      Auditors of Brazil - IBRACON, which requires a provision for the total amount of the contingencies
      classified as probable, and does not require a provision to be recorded for those classified as
      possible and remote.

      The provisions for claims are recorded taking into consideration the possibility of success by the
      plaintiff in the lawsuit against the Bank/subsidiary.

      The provisions for labor claims are recorded considering, also, the jurisprudence applicable to each
      claim.
      The consolidated position of the contingent liabilities at March 31, 2006, segregated by nature of
      claim and classification of loss, as well as the provisions recorded, whose changes in the Bank are
      shown in Note 7, are the following:
                                      BB - domestic and foreign branches                      BB – Consolidated
                                      March 31, 2006       March 31, 2005             March 31, 2006      March 31, 2005
                                     Amount Provision Amount Provision               Amount Provision Amount Provision
     1 – Labor claims                2,441,103   2,499,472   2,160,649   2,105,501   2,441,103   2,499,472   2,160,649   2,105,501
         Probable loss               2,160,649   2,105,501   2,160,649   2,105,501   2,160,649   2,105,501   2,160,649   2,105,501
         Possible loss                280,454     393,971           --          --    280,454     393,971           --          --
     2 – Tax claims                   233,153     626,475      29,934     130,489     302,432     672,172      73,319     167,183
         Probable loss                 29,934     130,489      29,934     130,489      73,319     167,183      73,319     167,183
         Possible loss                203,219     495,986           --          --    229,113     504,989           --          --
     3 – Civil claims                2,170,945   2,056,736    880,592     770,888    2,215,204   2,105,158    909,594     805,471
         Probable loss                 880,592     770,888    880,592     770,888      909,594     805,471    909,594     805,471
         Possible loss               1,290,353   1,285,848          --          --   1,305,610   1,299,687          --          --
     4 – Social security claims           478         484           --          8         478         631           --        155
         Probable loss                      --          8           --          8           --        155           --        155
         Possible loss                    478         476           --          --        478         476           --          --




      26.b) Contingent tax assets



                                                                                                                    57
26.b.1) The Bank has filed lawsuits for reimbursement of taxes paid in error, the most important being:

- Unconstitutionality of Income Tax on Net Income paid in 1989 and in the 1st six months of 1992, in the
amount of R$ 11,296 thousand;
- Tax on Financial Transactions (IOF) - Law 8033/90 (Price-level restatement), in the amount of R$ 176,027
thousand;

26.c) Other commitments

26.c.1) The Bank is the sponsor of Fundação Banco do Brasil whose purpose is the promotion, support,
advancement and sponsorship of educational, cultural, social, philanthropic, and recreational/sporting activities,
as well as the promotion of research activities of a technological and scientific nature, and rural and urban
                                             st
community assistance services. During the 1 quarter 2006, the Bank contributed with R$ 10,000 thousand to
the Fundação Banco do Brasil.
26.c.2) Guarantees to third parties, for a fee and with counter-guarantees from the beneficiaries - guarantees,
sureties and bonds - amounted to R$ 2,457, 286 thousand at March 31, 2006 (R$ 3,645,287 thousand at
December 31, 2004). A provision of R$ 17,757 thousand, recorded in "Other Liabilities", is considered sufficient
to cover any potential loss arising on these guarantees.
26.c.3) Available credit lines for loan and lease operations amount to R$ 24,748,028 thousand at March 31,
2006 (R$ 22,802,078 thousand at March 31, 2005).
26.c.4) The confirmed import and export letters of credit total R$ 872,421 thousand at March 31, 2006 (R$
884,745 thousand at March 31, 2005).
26.c.5) The Bank is the operator of the Fund for Sectorial Investments (FISET), with net assets, at March 31,
2006, of R$ 2,276 thousand (R$ 2,280 thousand at March 31, 2005), and is the manager of the Public Service
Employee Savings Program (PASEP), with net assets of R$ 1,477,600 thousand at March 31, 2006
(R$ 1,395,414 thousand at March 31, 2005). The Bank guarantees the latter a minimum remuneration
equivalent to the Long-Term Interest Rate (TJLP).
26.c.6) Despite the reduced level of risk to which its assets are subject, the Bank contracts insurance cover for
its assets in amounts considered sufficient to cover any losses.


NOTE 27 – Reclassifications for Comparative Purposes


Due to the consolidation of the special purpose entities, Dollar Diversified Payment Rights
Finance Company and Nikkei Remittance Rights Finance Company, in conformity with CVM
Instruction No. 408 of August 18, 2004, the following reclassifications were made in the March 31,
2005 balances for comparative purposes:

                                                              Previous                            Reclassified
            Balance Sheet                                    disclosure     Reclassifications      balances

Short-term interbank investments
Interbank deposits                                             13,728,582             65,514         13,794,096

Other receivables
Sundry                                                         23,771,483            (65,514)        23,705,970

Funds from acceptance and issue of securities
Foreign securities                                                851,765          3,269,380          4,121,145

Other liabilities
Negotiation and intermediation of securities                    3,342,866         (3,269,380)              73,486




                                                                                                      58
            Statement of Income

Income from Financial Intermediation
Securities                                                        (3,728,912)             (60,167)           (3,789,079)

Other operating income (expenses)
Securities (see original)                                           1,056,126                   2,178          1,058,303
Other operating expenses                                            (502,723)                  57,990          (444,734)




Statement of Added Value
                                      BB-Domestic and Foreign Branches                         BB-Consolidated
                                      1st quarter/2006       1st quarter/2005     1st quarter/2006        1st quarter/2005
                                     BALANCE       %        BALANCE       %      BALANCE       %         BALANCE       %

Added value calculation

Net income from financial
intermediation                       2,801,704               2,580,049            2,837,830               2,625,134
Banking service fees                 1,934,485               1,631,835            2,102,901               1,766,749
Other operating income (expenses),
net                                (1,332,365)               (644,132)           (1,323,110)              (629,581)
Non-operating income, net               25,019                  96,430                26,303                 97,819

Added value                           3,428,843              3,664,182            3,643,924               3,860,121

Equity in the earnings (loss) of
subsidiary and associated               (37,594)              221,157             (154,290)                113,545
companies

Gross added value                     3,391,249              3,885,339            3,489,634               3,973,666

Depreciation
and amortization                      (169,351)              (173,336)            (169,673)               (173,737)

Distribution of added value           3,221,898 100.00       3,712,003 100.00     3,319,961 100.00        3,799,929 100.00


Employees                             1,836,067    56,99     1,661,785   44,77    1,854,398      55,86    1,677,958   44,16
  Salaries and fees                   1,154,497              1,165,379            1,168,154               1,177,821
  Benefits, social charges and
training                                492,587               418,731               496,533                422,378
  Employee profit sharing               188,983                77,675               189,711                 77,759

Governments                             (956,838) (29,70)    1,085,638   29,25    (877,106) (26,42)       1,157,391   30,46
Brazil                                  (967,389) (30,03)    1,073,129   28,91    (888,352) (26,76)       1,144,909   30,13
Social security contributions (INSS)      208,858              201,860              210,870                 203,667
on salaries
Tax expenses (except income tax
and social contribution on net            432,803             364,307               452,361                393,225
income))
Income tax/social contribution on net
income                                (1,609,050)             506,962            (1,551,583)               548,017
Foreign                                    10,551    0,33      12,509     0,34        11,246      0,34      12,482     0,33



                                                                                                              59
Tax expenses (except income tax
and social contribution on net             1,159               1,657              1,213               1,697
income)
Income tax/social contribution on net
income                                     9,392              10,852             10,033              10,785

Stockholders                            2,342,669   72,71    964,580   25,98   2,342,669   70,56    964,580   25,38
Retained earnings                       2,342,669            964,580           2,342,669            964,580

Added value distributed                 3,221,898 100.00    3,712,003 100.00   3,319,961 100.00    3,799,929 100.00




                                                                                                       60
EXECUTIVE BOARD

CEO
Rossano Maranhão Pinto

VICE-PRESIDENTS
Adézio de Almeida Lima
Aldo Luiz Mendes
Antônio Francisco de Lima Neto
José Luiz de Cerqueira César
José Maria Rabelo
Luiz Oswaldo Sant’Iago Moreira de Souza
Ricardo Alves da Conceição

BOARD OF OFFICERS
Augusto Braúna Pinheiro
Clara da Cunha Lopes (Interim)
Derci Alcântara
Expedito Afonso Veloso
Francisco Cláudio Duda
Glauco Cavalcante Lima
Izabela Campos Alcântara Lemos
José Carlos Soares
Juraci Masiero
Luiz Gustavo Braz Lage
Manoel Gimenes Ruy
Marco Antônio Ascoli Mastroeni (Substitute)
Maria da Graça França
Miguel Oscar Viana Peixoto
Milton Luciano dos Santos
Nilo José Panazzolo
Paulo Euclides Bonzanini
Paulo Rogério Caffarelli
Ricardo José da Costa Flores
Sandro Kohler Marcondes
Sérgio Ricardo Miranda Nazaré
William Bezerra Cavalcanti Filho

BOARD OF DIRECTORS
Bernard Appy (Presidente)
Rossano Maranhão Pinto (Vice-Presidente)
Carlos Augusto Vidotto
Francisco Augusto da Costa e Silva
João Carlos Ferraz
José Carlos Rocha Miranda
Tarcísio José Massote de Godoy

BOARD OF AUDITORS
Rodrigo Pirajá Wienskoski (Presidente)
Artemio Bertholini
Otavio Ladeira de Medeiros
Vicente de Paulo Barros Pegoraro
Amaury Patrick Gremaud (suplente)

ACCOUNTING
Gil Aurélio Garcia
Contador Geral
Contador CRC-DF 5.027/O-6
CPF 047.999.766-72




                                              190

				
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