2 q12 investor presentation

1

Investor Presentation 2Q12

2

. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

3

89%87%

85%84%

87%86%

87%

11%

11%

12%

14%

13%

14%

13%

2006 2007 2008 2009 2010 2011 Jun/12

Middle Market

Corporate

11,762

8,651

6,660

5,227

3,045

13,169

13.4%

(BRL Million)14,938

3

Focus on Companies

3

Expanded Credit Portfolio*

Banco ABC Brasil offers commercial banking services to Corporate (annual revenues above BRL 250 mi) and Middle Market clients (annual revenues between BRL 30 and 250 mi). The Bank advises on underwriting activities and mergers and acquisitions, offers commercial loans, treasury services, and international lines of credit.

Distinct strategies for each business segment:

• Increase profitability per client in Corporate, through increased cross-selling of products;

• Grow the number of clients in the Middle Market; Portfolio Mix: increase in Middle Market participation.

* Includes Loans, Guarantees Issued and Corporate Securities portfolios

4

54% 54% 53%

20% 20% 22%17%16%

16%9%10%

9%

Jun/11 Mar/12 Jun/12

10,522 11,462 12,524

Corporate (annual revenues above BRL 250 mi)

4

Average Ticket

(BRL Million)

Average Tenor

(days)

Total Number

of Clients

Clients with

Credit Exposure


South

Rio de Janeiro

São Paulo Countryside

São Paulo Capital

Corporate Securities

(BRL Million)


Loans and

Guarantees Issued

(BRL Million)

Strategy: Grow the profitability per client, through increasing cross-selling of products.

Products:

• loans denominated in BRL and foreign currencies

• trade finance

• underwriting and structuring advisory services for capital markets transactions

• arrangement of syndicated loans in Brazil and abroad

• BNDES onlending transactions

• M&A transactions

• treasury products

728 708 734

524 533 535

20.1 21.5 23.4

367 343 329

234 358 536

5

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 Brasil

Offices

Middle Market (annual revenues between BRL 30 and 250 mi)

5

Strategy: Grow the number of clients, mainly in new regions.


Average Ticket

(BRL Million)

Average Tenor

(days)

Total Number

of Clients

Clients with

Credit Exposure

Minas Gerais / Goiás

South

Rio de Janeiro

São Paulo Countryside

São Paulo Capital

Loans and

Guarantees Issued

(BRL Million)

43% 40% 41%

12% 13% 13%10% 10% 9%28%

28% 27%7%

9% 10%


1,713 1,895 1,878

1,040 1,156 1,154

840 965 949

2.0 2.0 2.0

234 207 212

3NEW

BUSINESSPLATFORMS

CENTRO-OESTERIBEIRÃO PRETOSP 4

6BUSINESS

PLATFORMSIN EVOLUTION

(+ RMs)(> Efficiency)

MINAS GERAISRIO DE JANEIROCAMPINASPARANÁSANTA CATARINARIO GRANDE DO SUL

3MATUREBUSINESS

PLATFORMS(> Efficiency)

SP 1SP 2SP 3

6





. Key attributes

7

Funding & Ratings

7

(BRL Million)

InvestmentGrade

InvestmentGrade

Local Global

brAA+ BBB-

Aa1.br Baa3

AA- BB+

Diversified funding with access to local and international sources 2Q11 3Q11 4Q11 1Q12 2Q12

1,940.2 2,156.3 1,647.3 1,781.9 2,140.0

3,531.5 3,798.3 4,045.5 4,976.9 5,353.4

2,240.9 2,317.3 2,181.5 2,060.1 2,279.1

1,878.9 2,065.7 2,085.3 2,137.2 2,227.0

9,591.5 10,337.6 9,959.6 10,956.1 11,999.6 Total

15% 14% 15% 14% 13%

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

Shareholders´ Equity

23% 22% 22% 19% 19%BNDES

20% 21%16% 16% 18% International

10% 12% 10% 9% 9%

10%10% 11% 10% 9%

7%7% 10% 13% 11%10%8% 10%

10% 10%

3% 6% Local Bonds (Letras Financeiras)Individual Investors

Financial Institutions

Institutional InvestorsCorporate Investors

37% 37% 41% 45% 45%

8

Assets & Liabilities by maturity

8

(As of June, 2012)

3,8463,611

1,905

2,596

681261

1,515

3,856

2,988

1,874

330771

2,331

(245) (1,084)

722 351

(510)

1-30 days 31-180 days 181-360 days 1-3 years 4-5 years >5 years

Assets Liabilites Gap

2,3312,085

1,002

1,7242,075

1,565

Accumulated Gap(BRL Million)

9

Basel Index & Shareholders´ Equity

9

11.6% 11.4% 11.3% 11.1% 10.2%

3.8% 4.4% 4.3% 4.1% 4.0%

2Q11 3Q11 4Q11 1Q12 2Q12

Tier II

Tier I (Core Capital)

Shareholders´ Equity(BRL Million)

15.4% 15.8% 15.6% 15.2%14.2%

1,424.2 1,460.2

1,499.6 1,535.6

1,565.8

Capital Adequacy (BRL million) Jun/12 Mar/12Chg 3M

(%) / p.p.Jun/11

Chg 12M

(%) / p.p.

Capital 2,180.8 2,092.0 4.2% 1,886.4 15.6%

Mininum Capital Required 1,687.7 1,518.3 11.2% 1,346.9 25.3%

Capital Surplus 493.0 573.7 -14.1% 539.5 -8.6%

Basel Index 14.2% 15.2% -1.0 15.4% -1.2

Tier I (Core Capital) 10.2% 11.1% -0.9 11.6% -1.4

Tier II 4.0% 4.1% -0.1 3.8% 0.2

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. Key attributes

11 11

Credit Portfolio Quality

Past Due above 90 days (% of loan portfolio)

Loan Loss Reserve (% of loan portfolio)

0.65% 0.60%0.71%

0.39%0.57%

0.40%0.51% 0.50%

0.87%1.02%

0.31% 0.21% 0.21% 0.11% 0.17% 0.15% 0.19% 0.21%

0.57% 0.52%

0.23% 0.12% 0.09% 0.05% 0.06% 0.08% 0.09% 0.11%

0.47%0.39%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Middle

Total

Corporate

3.33% 3.64% 3.63% 3.60% 3.59% 3.45%3.02% 3.00%

3.68%4.06%

1.86% 1.74% 1.64% 1.62% 1.72% 1.69% 1.69% 1.73% 1.95% 2.04%

1.52% 1.29% 1.17% 1.13% 1.22% 1.18% 1.30% 1.33% 1.41% 1.48%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Middle

Total

Corporate

12 12

Credit Portfolio Quality

Transactions between D-H rating (Resolution 2682 of Brazilian Central Bank)

Write Off in the quarter (% of loan portfolio)

0.37%0.50% 0.46%

0.27%

0.47%0.32%

0.77%0.57%

0.22% 0.21%0.29%0.10% 0.15% 0.08% 0.10% 0.06%

0.24% 0.15%0.06% 0.08%0.27%

0.00% 0.07% 0.03% 0.00% -0.01% 0.08% 0.02% 0.01% 0.04%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Middle

Total

Corporate

3.1% 3.0%

2.4%

2.1%2.0% 1.9% 2.0%

2.4%

2.7% 2.5%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

D-H

13

Financial Margin

13

NIM (% p.a.)

(BRL million) 2Q12 1Q12 Chg (%) 2Q11 Chg (%) 6M12 6M11 Chg (%)

Net Interest Income before Loan Loss Provision (LLP) 144.4 140.9 2.5% 133.5 8.1% 285.3 268.9 6.1%

Shareholders´ Equity remunerated at CDI rate 32.0 36.8 -12.9% 38.8 -17.4% 68.8 74.4 -7.4%

Financial Margin w ith Clients 89.6 84.9 5.6% 79.9 12.2% 174.5 166.1 5.0%

Financial Margin w ith Market 22.7 19.3 18.1% 14.9 53.2% 42.0 28.4 48.1%

Loan Loss Provision (LLP) (28.7) (23.7) 20.8% (1.7) 1582.4% (52.4) (14.0) 273.4%

Managerial Financial Margin 115.7 117.2 -1.2% 131.8 -12.2% 232.9 254.8 -8.6%

5.5% 5.7% 5.5% 5.3% 5.0%5.5%

5.1%

2Q11 3Q11 4Q11 1Q12 2Q12 6M11 6M12

14

Income from Services

14

Banking Service Fees (BRL million) 2Q12 1Q12 Chg (%) 2Q11 Chg (%) 6M12 6M11 Chg (%)

Guarantees Issued 26.0 24.2 7.7% 22.6 15.2% 50.2 43.4 15.6%

Capital Markets and M&A Fees 2.0 1.9 5.1% 2.8 -29.4% 3.9 4.8 -19.6%

Banking Tariffs 4.1 3.3 24.7% 5.4 -24.8% 7.4 12.3 -39.7%

Total 32.1 29.3 9.5% 30.9 4.1% 61.4 60.5 1.6%

14.9 16.5 17.419.6 20.8 22.6 23.5 23.8 24.2

26.0

7.18.1 4.9

6.96.8

5.4 4.2 3.8 3.3

4.1

2.4

1.60.5

8.22.0 2.8 2.4

7.2

1.9

2.0

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Capital Markets and

M&A Fees

Banking Tariffs

Guarantees Issued

(BRL Million)

Income from Services

Total of Revenues

20.5% 20.1%17.6%

23.8%

19.7% 20.3%18.3%

20.6%18.3% 19.0%

15

Expenses

15

Efficiency Ratio (Cost/Income)

Expenses (BRL million) 2Q12 1Q12 Chg (%) 2Q11 Chg (%) 6M12 6M11 Chg (%)

Personnel (32.2) (31.1) 3.6% (27.4) 17.8% (63.3) (53.5) 18.3%

Other administrativ e ex penses (19.6) (15.7) 25.2% (16.9) 15.9% (35.3) (32.3) 9.3%

Profit Sharing (13.1) (10.0) 30.8% (16.8) -21.7% (23.1) (34.4) -32.7%

Total (65.0) (56.8) 14.4% (61.1) 6.4% (121.8) (120.2) 1.3%

38.8% 36.4% 37.9%33.9% 36.9% 38.2% 35.5%

2Q11 3Q11 4Q11 1Q12 2Q12 6M11 6M12

16

Profitability

16

Net Income (BRL Million) ROAE (% p.a.)

60.2 58.5 60.6 56.9 55.0

116.9 111.9

2Q11 3Q11 4Q11 1Q12 2Q12 6M11 6M12

17.2% 16.2% 16.4%15.0% 14.2%

16.9%14.6%

2Q11 3Q11 4Q11 1Q12 2Q12 6M11 6M12

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. Key attributes

18

Ownership Structure

18

ABC Brasil

Local Management 11.8%

Voting Capital Total Capital

Free-float 34.0%

Local Management and Directors

58.0% ABC

88.2% ABC

8.0%

59.4% Central Bank of Libya

29.7% Kuwait

Investment Authority

Free-float 10.9%

Arab Banking Corporation (Parent Company)

International bank headquartered in Bahrain

19

Controlling Shareholder

International bank headquartered in Bahrain

Listed on the Bahrain stock exchange

Main Shareholders

Central Bank of Libya 59.4%

Kuwait Investment Authority 29.7%

Free-float 10.9%

19

Total Assets: US$ 24.4 Bn

Shareholders’ Equity: US$ 3.7 Bn

BIS Ratio: 23.0%

Core capital (Tier I): 18.6%

(As of June, 2012)

20





. Key attributes

21

Key Attributes

21

Expertise in Corporate

Credit Risk Assessment

Agile Decision Making &

Experienced Management

Sophisticated

and

Diversified

Products

Investment

Grade

Ratings

Strong Business Origination

Capacity

Strong Sponsor &

Independent Management

22

Sergio Lulia Jacob Financial Vice-President

Alexandre Sinzato, CFA Head of Investor Relations

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

22

Investor Relations

23

Expanded Credit Portfolio

23

(BRL million) Jun/12 Mar/12 Chg 3M (%) Jun/11 Chg 12M (%)

Loans 8,519.8 7,783.5 9.5% 7,468.7 14.1%

Corporate 6,680.2 5,923.8 12.8% 5,788.7 15.4%

Middle 1,839.6 1,859.7 -1.1% 1,680.0 9.5%

Guarantees issued 5,882.3 5,573.7 5.5% 4,766.1 23.4%

Corporate 5,843.8 5,538.5 5.5% 4,733.4 23.5%

Middle 38.6 35.2 9.7% 32.6 18.1%

Loans + Guarantees Issued 14,402.1 13,357.2 7.8% 12,234.8 17.7%

Corporate 12,524.0 11,462.3 9.3% 10,522.2 19.0%

Middle 1,878.2 1,894.9 -0.9% 1,712.6 9.7%

Corporate Securities 536.0 357.6 49.9% 233.7 129.3%

Expanded Credit Portfoliio 14,938.1 13,714.8 8.9% 12,468.5 19.8%

24 24

Appendix - Corporate Structure

Mesa Cliente Credit Middle

Market

Credit Corporate

CEO

Anis Chacur Neto

Auditing Commitee

Financial Control

Group Audit /

Bahrain

Internal Auditing

Commercial Corporate VP

Jose Eduardo C. Laloni

Compliance

Commercial

Corporate

Financial & Admin. VP

Sergio R. Borejo

Capital Markets Products

Financial

Institutions

Treasury & IR VP

Sergio Lulia Jacob

Investor Relations

Treasury

Commercial Middle VP

Gustavo A. Lanhoso

Commercial Middle

Back Office

Information

Technology

HR & Marketing

Dealing Desk

Board

Investment Banking

Business

Intelligence

Risk VP

Renato Pasqualin

Sobrinho

Risk

Legal

25 25

Members

-Anwar Ali Al Mudhaf ABC Brasil Chairman & Arab Banking

Corporation Board Member, Kuwaiti

-Roy Hannay Gardner Arab Banking Corporation executive, Scottish

-Asaf Mohyuddin Arab Banking Corporation executive, Pakistani

-Tito Enrique da Silva Neto Former CEO of ABC Brasil, Brazilian

-Ricardo Alves Lima Brazilian

-Edgar Uchôa Brazilian

Appendix - Board of Directors

26

Appendix - Brazilian Banking Sector

ABC Brasil focuses on the Corporate and Middle Market segments

Larg

e

Corp

orate

C

orp

orate

M

idd

le M

arket

Reta

il

Number of Clients

2,000+

250- 2,000

30-250

Individuals and small companies

Big retail banks

Middle-sized international banks

Big retail banks


Big retail banks

Middle-sized family owned banks

Big retail banks


Middle-sized family owned banks

26

(BRL Million)

Annual Revenues Main Competitors

27

IPO

1989 1997 2005 2012 2007

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

27

28

Disclaimer

The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.

Economy & Finance

2 q12 investor presentation