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1 Investor Presentation 2Q11

2 q11 investor presentation

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Page 1: 2 q11 investor presentation

1

Investor Presentation 2Q11

Page 2: 2 q11 investor presentation

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. Who we are

. Business Segments

. Competitive Environment

. Financial Highlights

Page 3: 2 q11 investor presentation

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Ownership Structure

3

ABC Brasil

Local Management11.8%

Voting CapitalTotal Capital

Free-float34.2%

Local Managementand Directors

57.8%ABC

88.2%ABC

8.0%

Arab Banking Corporation(Parent Company)

59.4%CentralBank of Libya

29.7%Kuwait

InvestmentAuthority

Free-float10.9%

Local Global

Aa1.Br Baa3

AA- BB+

Investment grade

Page 4: 2 q11 investor presentation

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89%

86%84%

84%

86%86%

11%

11%

12%

14%

14%14%

2006 2007 2008 2009 2010 Jun/11

Middle Market

Corporate

11,588

8,509

6,485

4,992

2,911

12,2355.6%

4

Focus on Companies

4

ABC Brasil strongly focuses on providing loans and structured products to mid-sized and large companies

Credit PortfolioIncluding Guarantees Issued

BRL million

Page 5: 2 q11 investor presentation

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Geographical Presenceand Expansion Plan

5

Business Platforms

Corporate Middle

São Paulo Capital 3 4

São Paulo Countryside 1 2

South 1 3

Rio de Janeiro 1 1

Minas Gerais - 1

Midwest - 1

TOTAL 6 12

Presence in 20 cities

Offices

São Paulo Capital São Paulo

São PauloCountryside

Campinas, Ribeirão Preto, Taubaté, Sorocaba, São José do Rio Preto and Bauru

South Curitiba, Londrina, Blumenau, Criciúma, Porto Alegre, Caxias do Sul and Novo Hamburgo

Rio de Janeiro Rio de Janeiro

Minas Gerais Belo Horizonte and Uberlândia

Midwest Brasília, Goiânia and Cuiabá

RO

AC

AM

RR

PA

AP

MA

PI

CE

BA

MG

ES

RJSP

PR

SC

RS

MS

MT

GO

DF

RNPB

PE

AL

SE

TO

ABC BrasilOffices

Note: Cities in bold indicate where there was office opened in 2011

Presence in 20 cities and 6 newOffices opened in 2011

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. Who we are

. Business Segments

. Competitive Environment

. Financial Highlights

Page 7: 2 q11 investor presentation

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Business Segments

7

BRL million

Loan Portfolio

CorporateCompanies with annual revenues

over BRL 250 million

Loan Portfolio

MiddleCompanies with annual revenues

from BRL 30 to 250 million

Total Portfolio Total Portfolio

19.7%

2.0%

23.4%

6.3%

6.7%

-2.0%

24.8%

6.7%

8,790.8 9,323.9

10,023.8 10,314.3 10,522.1

2Q10 3Q10 4Q10 1Q11 2Q11

1,388.0 1,401.7 1,564.5 1,611.3 1,712.6

2Q10 3Q10 4Q10 1Q11 2Q11

5,426.1 5,784.0 6,109.0 5,905.2 5,788.7

2Q10 3Q10 4Q10 1Q11 2Q11

1,346.1 1,365.3 1,520.4 1,573.9 1,680.0

2Q10 3Q10 4Q10 1Q11 2Q11

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Segments Highlights

8

Minas Gerais / Goiás

South

Rio de Janeiro

São Paulo Countryside

São Paulo Capital

Corporate Middle Market

8,791 10,314 10,522 1,388 1,611 1,713

Average

Ticket

(BRL Million)

Average Tenor

(days)

Total Number

of Clients

Clients with

Credit Exposure

48% 43% 43%

11% 13% 12%9%10% 10%

27%29% 28%6%

5%7%

Jun/10 Mar/11 Jun/11

57% 54% 54%

21%21% 20%

13%15% 17%9%

10% 10%

Jun/10 Mar/11 Jun/11

360385 367 261

234 234

2.3 2.1 2.0

558 509 524

612 750 840

15.8 20.3 20.1

699 717 728 740 930 1,040

Jun/10 Mar/11 Jun/11 Jun/10 Mar/11 Jun/11

Credit Portfolio

(BRL Million)

BRL million

Page 9: 2 q11 investor presentation

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. Who we are

. Business Segments

. Competitive Environment

. Financial Highlights

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Brazilian Banking Sector

ABC Brasil focuses on the Corporate and Middle Market segments

Larg

e

Corp

orate

Corp

orate

Mid

dle

Market

Reta

il

Number of Clients

Revenues Range

2,000+

250-2,000

30-250

Individuals andsmall companies

Main Competitors

Big retail banks

Middle-sized international banks

Big retail banks

Middle-sized international banks

Big retail banks

Middle-sized family owned banks

Big retail banks

Middle-sized international banks

Middle-sized family owned banks

10

BRL million

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. Who we are

. Business Segments

. Competitive Environment

. Financial Highlights

Page 12: 2 q11 investor presentation

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Credit Portfolio Quality

Loan Loss Reserves (% portfolio)

Write Off

Past Due (90 days)

Brazilian Central BankResolution 2682

0.66%

1.27%

0.95%

1.84%

2.28%

1.04%

0.69%0.60% 0.71%

0.39%0.57%

0.40%0.21%

0.34%

0.64%

1.18%

0.65%0.57%

0.11% 0.17% 0.15%

0.12% 0.10%0.38%

0.98%

0.52% 0.51%

0.05% 0.06% 0.08%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

MiddleTotalCorporate

2.30% 2.24%

4.03%

5.54%

3.65%3.33%

3.60% 3.59% 3.45%

1.03% 1.05%

2.23%

2.98%

2.25%1.92% 1.62% 1.72% 1.69%

0.79%0.74%

1.80%2.29%

1.83%

1.13%1.22% 1.18%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4T10 1Q11 2Q11

Middle

Total

Corporate

0.08%

0.26%

0.13%

0.75% 0.69%

0.21%

0.50%

0.27%

0.47%

0.32%

0.04%0.11%

0.04% 0.04%

0.16%

0.28%

0.09%

0.32%

0.12%0.16%

0.08% 0.10% 0.06%

0.03% 0.08%0.01% 0.00%

0.13%

0.04%

0.27%

0.00%0.07% 0.03% 0.00% -0.01%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Middle

Total

Corporate

AA-C 98.1%

D-H 1.9%

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2Q10 3Q10 4Q10 1Q11 2Q11

1,862.6 1,924.5 1,723.3 1,792.5 1,938.8

3,583.6 3,113.9 3,314.7 3,271.6 3,525.7

1,796.1 2,140.5 2,386.7 2,387.7 2,240.9

1,816.2 1,827.6 1,836.3 1,872.9 1,886.1

9,058.6 9,006.4 9,261.0 9,324.7 9,591.5 Total

16% 14% 14% 14% 15%

6% 6% 5% 5% 5% Subordinated Debt

Shareholders´ Equity

20% 24% 26% 26% 23%BNDES

20% 21% 19% 19% 20% International

12% 10% 11% 11% 10%

11%9% 9% 9% 10%

9%6% 6% 7% 7%

8%

10% 10% 8% 10% Individual Investors

Financial Institutions

Institutional Investors

Corporate Investors

Funding

13

BRL million

37%35%36%35%40%

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Basel Index & Shareholders Equity

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12.5% 12.1% 11.7% 11.6% 11.6%

5.2% 4.8% 4.3% 4.1% 3.8%

2Q10 3Q10 4Q10 1Q11 2Q11

Tier II

Tier I (Core Capital)

Shareholders´ Equity(BRL Million)

17.7% 16.9% 16.0% 15.7% 15.4%

1,279.1 1,312.1

1,347.9 1,384.3

1,424.2

Capital Adequacy (BRL million) 2Q11 1Q11 2Q10Chg(%)/p.p.

2Q11/1Q11

Chg(%)/p.p.

2Q11/2Q10

Capital 1,886.4 1,866.1 1,821.8 1.1% 3.5%

Mininum Capital Required 1,348.1 1,305.8 1,128.0 3.2% 19.5%

Capital Surplus 538.3 560.3 693.8 -3.9% -22.4%

Basel Index 15.4% 15.7% 17.7% -0.3 -2.3

Tier I (Core Capital) 11.6% 11.6% 12.5% 0.0 -0.9

Tier II 3.8% 4.1% 5.2% -0.3 -1.4

BRL million

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Financial Margin

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BRL million

NIM (% p.a.)

5.3% 5.1% 5.4% 5.6% 5.5% 5.5% 5.5%

2Q10 3Q10 4Q10 1Q11 2Q11 6M10 6M11

2Q11 1Q11 Chg (%) 2Q10 Chg (%) 6M11 6M10 Chg (%)

Net Interest Income before Loan Loss Provision (LLP) 133.5 135.4 -1.4% 108.5 23.1% 268.9 221.8 21.2%

Financial Margin w ith Clients 118.7 121.8 -2.6% 104.7 13.3% 240.5 198.5 21.1%

Financial Margin w ith Market 14.9 13.5 9.9% 8.6 73.1% 28.4 23.3 21.9%

Managerial Loan Loss Provision (LLP) (5.7) (12.7) -55.2% (10.9) -47.7% (18.4) (25.0) -26.2%

Published Loan Loss Prov ision (LLP) (1.7) (12.3) -86.2% (9.0) -81.0% (14.0) (22.8) -38.4%

Gain (Loss) w ith Assets Held for Sale (4.0) (0.4) 940.6% (1.9) 109.5% (4.4) (2.2) 101.6%

Managerial Financial Margin 127.8 122.6 4.2% 97.6 31.0% 250.5 196.8 27.2%

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Income from Services

16

BRL million

Banking Service Fees (BRL million) 2Q11 1Q11 Chg (%) 2Q10 Chg (%) 6M11 6M10 Chg (%)

Guarantees Issued 22.6 20.8 8.5% 16.5 36.8% 43.4 31.4 38.3%

Capital Markets and M&A Fees 2.8 2.0 40.1% 1.6 77.5% 4.8 4.0 19.8%

Banking Tariffs 5.4 6.8 -19.9% 8.1 -32.9% 12.3 15.2 -19.5%

Total 30.9 29.6 4.1% 26.2 17.7% 60.5 50.6 19.5%

7,4129,886

12,355 14,050 14,882 16,509 17,43619,570 20,826 22,587

2,587

3,069

3,7295,113

7,1058,119 4,947

6,9056,804

5,450

303

485

29

6342,444

1,589 459

8,1832,013 2,820

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Capital Markets and M&A Fees

Banking Tariffs

Guarantees Issued

14.0% 14.4%15.9%

17.3%

20.5% 20.1%

17.5%

23.4%

19.6% 19.1%Income from Services

Total of Revenues

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Expenses

17

BRL million

Efficiency Ratio

Expenses (BRL million) 2Q11 1Q11 Chg (%) 2Q10 Chg (%) 6M11 6M10 Chg (%)

Personnel (27.4) (26.2) 4.6% (22.4) 22.3% (53.5) (43.3) 23.6%

Other administrativ e ex penses (16.9) (15.4) 10.3% (13.5) 25.0% (32.3) (27.9) 15.8%

Profit Sharing (16.8) (17.6) -4.9% (15.4) 8.5% (34.4) (30.9) 11.3%

Total (61.1) (59.1) 3.3% (51.4) 18.9% (120.2) (102.1) 17.7%

37.6% 37.0% 37.9% 37.7% 38.8% 37.8% 38.2%

2Q10 3Q10 4Q10 1Q11 2Q11 6M10 6M11

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Profitability

18

BRL million

Net Income ROAE (p.a.)

50.2 51.1 54.0 56.7 60.2

97.1116.9

2Q10 3Q10 4Q10 1Q11 2Q11 6M10 6M11

15.9% 15.8% 16.3% 16.6% 17.2%15.6%

16.9%

2Q10 3Q10 4Q10 1Q11 2Q11 6M10 6M11

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Sergio Lulia Jacob Financial Vice-President

Alexandre Sinzato, CFA Head of Investor Relations

Web Site: www.abcbrasil.com.br/irEmail: [email protected]: +55 (11) 3170-2186

19

Investor Relations

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IPO

1989 1997 2005 20112007

Appendix – History in Brazil

Arab Banking

Corporation and local

management acquire

Roberto Marinho

Group’s shares

The bank’s name

changes to

Banco ABC Brasil S.A.

The bank

structures its

Middle Market

operations

Arab Banking Corporation and

Roberto Marinho Group jointly

initiate Banco ABC Roma

S.A., acting in the segments of

corporate lending, trade

finance and treasury

20

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Appendix – Controlling Shareholder

International bank headquartered in Bahrain

Listed in the Bahrain stock exchange

Present in 22 countries

Main Shareholders

Central Bank of Libya 59.4%

Kuwait Investment Authority 29.7%

Free-float 10.9%

21

Total Assets: US$ 28.0 Bn

Shareholders’ Equity: US$ 3.6 Bn

BIS Ratio of 23.0% | Core capital (Tier I) of 18.7%

More than 70% of liquid assets to deposits ratio

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Disclaimer

The following material, on this date, is a presentation containing general information about theBanco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly orexplicitly, as to the accuracy, completeness or scope of this information.

This presentation may include forward-looking statements of future events or results accordingto the regulations of the Brazilian and International securities and exchange commissions.These statements are based on certain assumptions and analyses by the Company that reflectits experience, the economic environment, future market conditions and expected events bythe company, many of which are beyond the control of the Company. Important factors thatmay lead to significant differences between the actual results and the statements ofexpectations about future events or results include the company’s business strategy, Brazilianand International economic conditions, technology, financial strategy, financial marketconditions, uncertainty regarding the results of its futureoperations, plans, objectives, expectations and intentions, among others. Considering thesefactors, the actual results of the company may be significantly different from those shown orimplicit in the statement of expectations about future events or results.

The information and opinions contained in this presentation should not be understood as arecommendation to potential investors and no investment decision is to be based on theveracity, current events or completeness of this information or these opinions. No advisors tothe company or parties related to them or their representatives should have any responsibilityfor any losses that may result from the use or contents of this presentation.