Institutional Presentation September 2011 Agenda Page 3 Brazilian - - PowerPoint PPT Presentation

September 2011

Institutional Presentation

2

Agenda

Overview and Market Capital Brazilian Credit Market Peers Results

Page 3 Page 4 Page 32 Page 8

Appendix

Page 36

3

Brazilian Credit Market

Credit Evolution in Brazil (% of GDP)

36.6 32.0 28.8 26.8 27.9 24.9 26.4 24.7 22.0 24.0 24.5 28.1 30.7 34.8 41.3 45.0 46.4 48.4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 9M11

The balance of the financial system was R$1,929.0 billion in September, representing 48.4% of GDP. The average annual interest rate on the credit operations reached 39.0%. The rate for the corporate segment reached 30.0%, whereas for the individuals segment it was 45.7%. The average maturity of credit operations rose to 493 days in August, the maturity for the corporate segment reached 407 days and it was 583 days for individuals. The default rate on credit operations in arrears for more than ninety days was 5.3% in July. The rate related to corporate loans remained stable at 3.8%, and those for operations involving individuals was 6.8%. Copom 162nd Copom Meeting Minutes (*)

(*) Source: Brazil Central Bank

Name / Title Years on Daycoval Sasson Dayan, CEO 42 Morris Dayan, Executive and Investor Relations Officer 18 Salim Dayan, Executive Officer 19 Carlos Moche Dayan, Executive Officer 17 Regina Maciel Nogueira, Officer 20 Nilo Cavarzan, Officer 6 Albert Rouben, Officer 11

Board of Directors Board of Executive Officers

Corporate Governance

4

Representative of the Controlling Shareholder

Rony Dayan

Chairman Representative of the Controlling Shareholder Sasson Dayan

Independent Member Gustavo Henrique de Barroso Franco Independent Member Peter M. Yu

Policy on Securities Exchange

Executive Committe 100% Tag Along (PF Shares) Risk Management Prevention of Money Laundering (PML)

Manual of Conduct and Ethics

Ranking Daycoval Private National Banks National Banks Net Income 13º 18º Shareholders’ Equity 16º 22º Total Deposits 18º 25º Total Assets 21º 26º

Rating

Financial System Ranking

5

Source: Brazil Central Bank – June 2011

Daycoval’s Market Capital and Capital Structure

Stock Performance – 3Q11 6

First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 18 local and international brokerage firms. Free Float: 54.7 million shares.

Capital Structure – September 2011

Total Shares: 216.3 million shares.

DAYC4 (R$) 3Q11 2Q11

• Chg. %

Closing Quotation 8.50 9.80

• 13.3%

High for the quater 9.75 12.40

• 21.4%

Average for the quarter 8.57 11.09

• 22.7%

Low for the quarter 7.90 9.50

• 16.8%

Book Value 8.79 8.55 2.8% Market Value (R$)Million 1,838.80 2,119.98

• 13.3%

31 Branches

SÃO PAULO – SP HD Av. Paulista IFP Promotora de

Serviços de Intermediação Financeira Ltda, is a financial intermediation company created to promote operations for

• individuals. It has 52

stores in operation

throughout Brazil.

14 Daypag Offices

in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Americana, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu e Detran São Paulo

11 exchange bureaus in São

Paulo and one

correspondent foreign exchange

desks distributed strategically in São Paulo and Rio de Janeiro

Distribution: More than 100 points of Sale

7

SP - ALPHAVILLE ES - VITÓRIA CE - FORTALEZA SP - BOM RETIRO MG - BELO HORIZONTE PE - BOA VIAGEM SP - BRÁS RJ - RIO DE JANEIRO PE - RECIFE SP - CAMPINAS PR - LONDRINA RN - NATAL SP - FARIA LIMA PR - CURITIBA SE- ARACAJU SP - GUARULHOS RS - CAXIAS DO SUL DF - BRASÍLIA SP - RIBEIRÃO PRETO RS - PORTO ALEGRE MS - CAMPO GRANDE SP - SÃO BERNARDO SC - FLORIANÓPOLIS MT - CUIABÁ SP - SOROCABA AL - MACEIÓ AM - MANAUS SP - UBERLÂNDIA BA - SALVADOR PA - BELÉM

Key Figures 3Q11

Total Assets R$ 11,502.4 million Expanded Loan Portfolio R$ 7,794.0 million Loan Portfolio R$ 6,962.9 million Funding R$ 7,041.7 million Shareholders’ Equity R$ 1,903.4 million Basel Index 16.6% (Tier I)

3Q11 9M11

Net Income R$ 95.7 million R$ 214.3 million ROAE 22.0% 15.9% ROAA 3.6% 2.8% NIM-AR (*) 11.7% 11.3% Efficiency Ratio 30.8% 31.6%

(*) New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations,

DAYC4 swaps, portfolio transfers to other banks and matched operations — repurchase agreements-tri-party repos outstanding.

8

9

Loan Portfolio: growth in line with the funding operations

3,705.5 3,814.9 5,567.4 5,186.0 6,962.9 2008 2009 2010 9M10 9M11

Loan Portfolio – R$ Million

CAGR 22.6% 34.3%

Loan Portfolio by Segment (R$ mn) 2008 2009 2010 9M10 9M11

Middle Market 2,028.4 2,042.7 3,380.6 3,035.2 3,987.1 Trade Finance 196.7 188.9 332.5 292.2 697.1 Total Portfolio Middle Market 2,225.1 2,231.6 3,713.1 3,327.4 4,684.2 Payroll Loans 707.2 980.8 1,308.4 1,352.4 1,657.4 Auto Loans 767.6 578.4 503.3 470.9 570.6 Direct Credit to Consumers (DCC) 5.6 24.0 42.6 35.3 50.7

Total 3,705.5 3,814.9 5,567.4 5,186.0 6,962.9

10

Expanded Loan Portfolio: growth higher than the market average

Expanded Loan Portfolio – R$ Million

Loan Portfolio by Segment (R$ mn) 2008 2009 2010 9M10 9M11

Middle Market 2,028.4 2,042.7 3,380.6 3,035.2 3,987.0 Trade Finance 196.7 188.9 332.5 292.2 697.1 Avals and Sureties Granted 38.6 88.2 249.4 170.1 378.1 Receivables purchase 0.0 29.2 214.3 129.2 370.6 Total Portfolio Middle Market 2,263.7 2,349.0 4,176.8 3,626.7 5,432.8 Payroll Loans 707.2 980.8 1,308.4 1,352.4 1,657.4 Payroll Loans Portfolio Assignments 151.2 71.0 167.9 30.6 72.8 Total Payroll Loans 858.4 1,051.8 1,476.3 1,383.0 1,730.2 Auto Loans 767.6 578.4 503.3 470.9 570.6 Auto Loans Portfolio Assignments 124.1 59.0 23.5 30.3 9.7 Total Auto Loans 891.7 637.4 526.8 501.2 580.3 Direct Credit to Consumers (DCC) 5.6 24.0 42.6 35.3 50.7

Total 4,019.4 4,062.2 6,222.5 5,546.2 7,794.0

4,019.4 4,062.2 6,222.5 5,546.2 7,794.0 2008 2009 2010 9M10 9M11

Expanded Loan Portfolio – R$ Million

Expanded Loan Portfolio: growth of 40.5% during the last 12 months

11 69.7% 22.2% 7.4% 0.7%

M iddle M a rket Pa yroll Loa ns A uto Loa ns DCC Breakdown Expanded Loan Portfolio 9M10

65.4% 24.9% 9.0% 0.7%

Middle Market Payroll Loans Auto Loans DCC

Breakdown Expanded Loan Portfolio 9M11

CAGR 14.5% 40.5%

12

All credit decision making is concentrated at the headquarters. Decisions about new operations are based on updated registration information, with systemic blocking in the case of out of date financial data. Analysis of the economic group's exposure is comprehensive, taking into consideration its registration, marketing, economic and financial aspects. Direct and indirect risk analysis (originator that acts as loan taker with other clients). Operations with 100% guarantees that are monitored in terms of liquidity, market value and degree of adequacy. All active clients are monitored regularly and, in the event any restrictions are noted, preventive actions are adopted as necessary.

Middle Market: Credit analysis

Middle Market: increase of 49.8% over the past 12 months, currently representing 69.7%

• f the total portfolio

13

Middle Market Portfolio – R$ Million 2,264 2,349 4,177 3,627 5,433 2008 2009 2010 9M10 9M11 Guarantees Breakdown – Sept/11 Sectors Breakdown – Sept/11 Geographic Distribution – Sept/11 Breakdown Portfolio Middle Market (R$ mn) Sept./11 % Loan

• Chg. % x

June/11

Working Capital 2,379.0 43.8% 6.6% Guaranteed Account 1,307.5 24.1% 17.1% Trade Finance 697.1 12.8% 28.5% Avals and Sureties 378.1 7.0% 19.5% Receivables Purchase 370.6 6.8% 30.1% BNDES 300.5 5.5% 2.4%

TOTAL Middle Market 5,432.8 100.0% 13.5%

Daycred Payroll: INSS and Army continue to drive growth

627 583 1,318 416 361

2008 2009 2010 9M10 9M11 858.4 1,051.8 1,476.3 1,383.0 1,730.0

2008 2009 2010 9M10 9M11

(*) Includes credit assignments in all of the quarters (R$ 72.8 million in 9M11)

Total Origination – R$ Million Total Loan Portfolio (*) – R$ Million Total Loan Portfolio (*) – R$ 1,730 mn – September/11 - % Total Origination – R$ 361 mn – September/11- %

14

892 637 527 501 580 2008 2009 2010 9M10 9M11

Daycred Auto Loans: new origination strategy

664 84 195 59 99 2008 2009 2010 9M10 9M11

Total Loan Portfolio (*) – R$ Million Total Origination – R$ Million Liquidity of Auto Loans Portfolio September/11 – R$ Million

15

Origination Last 12 months (*)

81.4% 18.6%

Small Vehicles Heavy-duty Vehicles

(*) We have not financed motorcycles since October 2009

(*) Includes credit assignments in all of the quarters (R$ 9.7million in 9M11)

Liquidity of the Auto Loans Portfolio - Oct-08 to Jun-11 R$ % Accum.

PMTs received in advance 70,459,580 35.0% 35%

PMTs received on date of maturity 31,805,299 15.8% 51%

PMTs received with delay of 30 days 63,178,321 31.4% 82%

PMTs received with delay of 60 days 15,258,441 7.6% 90%

PMTs received with delay of 90 days 6,429,944 3.2% 93%

PMTs received with delay of 120 days 2,633,736 1.3% 94%

PMTs received over 120 days 3,509,982 1.7% 96%

PMT´s overdue 8,223,767 4.0% 100%

Liquidity of the Auto Loans Portfolio 193,275,304 96.0%

Outstanding PMT´s Total Amount 201,499,070 100.0%

Direct Credit to Consumers (DCC): product that complements the Bank’s

• perations for individuals

Direct Credit to Consumers

Financing of goods and services through partnerships with a number of retailers, such as home furnishings, Appliances, etc. Payment guaranteed by “pre-dated” checks at rates and Terms that are competitive with the market. Partnerships with many shops, seeking to increase sales,

• ffering the end consumer greater purchasing facilities.

Total Loan Portfolio - R$ Million

5.6 24.0 42.6 35.3 50.7

2008 2009 2010 9M10 9M11

16

17

Funding: strong growth of 36.1% during the last 12 months

Funding – R$ Million

36.1% CAGR 17.0%

Funding (R$ mn) 2008 2009 2010 9M10 9M11

• Chg. %

Total Deposits 1,757.0 2,381.8 3,193.9 3,247.9 4,121.8 26.9%

Demand Deposits + Other Deposits 114.0 124.7 204.2 334.0 219.4

• 34.3%

Time Deposits 1,179.4 2,122.5 2,790.8 2,885.6 3,501.4 21.3% Interbank Deposits 463.6 134.6 198.9 28.3 401.0 n.a

Letter of Credit - Agribusiness

• -

49.8

n.a

Borrowing and Onlending 730.5 875.6 1,379.7 1,269.8 1,767.0 39.2% Foreign Issuances 785.5 373.4 664.3 656.0 1,034.0 57.6% Banknotes

• -

3.2 1.0 69.1 n.a Total 3,273.0 3,630.8 5,241.1 5,174.7 7,041.7 36.1%

18

1,757 2,382 3,194 3,248 4,122 2008 2009 2010 9M10 9M11

Total Deposits Breakdown – September/11 Total Deposits Breakdown – September/10 Total Deposits - R$ Million

Total Deposits: growth of 26.9% over the past 12 months 37.9% 16.2% 27.9% 7.8% 10.2%

Corporates + Demand Deposits Individuals Investment Funds Institutional Financial Institutions + Interbank Deposits

47.6% 18.2% 25.0% 8.1% 1.1%

Corporates + Demand Deposits Individuals Investment Funds Institutional Financial Institutions + Interbank Deposits

Long Term Funding

19

Date of Transaction Maturity Amount (US$ mn)

International Finance Corporation (IFC) December/2007 January/13 (due of last tranche) 115 Syndicated Loan (IFC) June/2010 June/14 (due of last tranche) 165 Eurobond March/2010 March/2015 300 Syndicated Loan (IIC) November/2010 November/15 (due of last tranche) 112.5 Eurobond January/2011 January/2016 300

Long Term Funding - R$ Million

20

Issuance of Banknotes

Banknote Issue of September 15, 2011 (1stIssue) Issuer Banco Daycoval S.A. Issue Denominations R$ 249.9 million Ranking Status Exclusively book value, without the issue of certificates Term November 15, 2013 Lead Coordinator Coordinator

First bank to conduct a public issuance of Banknotes, in the amount of R$ 249.9 million maturing in 2 years, concluded on October 18th, 2011.

30.8% 36.4% 25.2% 6.9% 0.7%

Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years

Outstanding Operations (Loan Portfolio) 9M11 - % Outstanding Operations (Funding) 9M11 - %

21.5% 32.3% 28.1% 17.2% 0.9%

Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years

Liquidity: positive gap of 103 days between the duration of the credit and funding

• perations

21

Maturity of 67.2%

• ver the next 12

months Maturity of 53.8%

• ver the next 12

months

(1) From September, 2011 (2) Excludes BNDES and Avals and Sureties

Loan Portfolio by Segment Average term to Maturity (1) days R$ mm Total Portfolio Middle Market

202 4,684.2

Payroll Loans

714 1,657.4

Auto Loans

489 570.6

DCC + Other

225 50.7

Total Loan Portfolio

396 6,962.9

Funding Average term to Maturity (1) days R$ mm Time Deposits

202 3,720.8

Interbank Deposits

277 401.0

Banknotes + Letter of Credit - Agribusiness

640 118.9

Foreign Issuances

1,153 1,034.0

Borrowing and Onlending (2)

1,016 1,468.5

Total Funding 499 6,743.2

22

Liquidity

9M11 Cash Breakdown (%) 9M11 Total Assets Breakdown (%) Total Assets - R$mn

September/11 R$ mn Cash 1,378.0 Liquid Assets 1,773.4 Total Assets 11,502.4

6,831 7,061 8,939 9,329 11,502 2008 2009 2010 9M10 9M11 65.9% 34.1%

Overnight Repos (Selic) Federal Government Bonds

55.9% 22.1% 14.9% 7.1%

Lending Operation Interbank Investments Other Assets Securities and Derivatives

23

36 91 138 241 238 643 1,158 1,261

2004 2005 2006 2007 2008 2009 2010 9M11

Daycoval Asset Management

Daycoval Asset Management offers a variety of investment funds and differentiated products such as portfolio administration. At the present time we have eleven open funds and twelve closed funds. Asset ended September 2011 with a total of funds generated and/or administered of R$ 1,261.0 million.

Assets Under Management – R$ Million

Quality of Loan Portfolio: Provision constitution is adequate

24

Provision Total Loan Portfolio

September/11

Portfolio R$ mn % Provision R$ mn Total Provision / Loan(%) Middle Market + Trade Finance 4,684.2 67.8 101.3 2.2 Payroll 1,657.4 24.0 41.6 2.5 Auto Loans 435.8 6.3 25.9 5.9 CDC Retailers / Other 50.7 0.7 4.8 9.5 Subtotal 6,828.1 98.8 173.6 2.5 Credit Assignments 82.5 1.2 0.5 0.6 Total 6,910.6 100.0 174.1 2.5

Total Provision / Loan Porfolio (%)

Establishment of Provision - R$ mn 2008 2009 2010 9M10 9M11 Middle Market + Trade Finance 103.0 112.4 80.7 66.5 59.9 Payroll 18.8 28.6 31.1 23.2 32.3 Auto Loans 54.8 96.6 32.5 27.6 18.9 Direct Credit to Consumers 0.3 1.9 2.9 2.1 4.8 Total 176.9 239.5 147.2 # 119.4 115.9

183 203 170 160 174 177 240 147 119 116 2008 2009 2010 9M10 9M11

Balance of Provision Establishment of Provision

Balance and Establishment of Provision - R$ Million

(*) Unconsolidated

25

Quality of Loan Portfolio (*)

Past due operations more than 60 days Past due operations more than 14 days

(*) Unconsolidated

26

Quality of Loan Portfolio (*)

Recovered Loans - R$ mn 9M10 9M11 Middle Market + Trade Finance 16.4 18.0 Retail 9.6 11.6 Total 26.0 29.6 Write-offs - R$ mn 9M10 9M11 Total (162.4) (112.1) Loan E-H - R$ mn 3 T 9M10 9M11 Middle Market + Trade Finance 83.1 71.9 Payroll 26.0 40.0 Auto 39.1 28.4 DCC 2.3 5.5 Total 150.5 145.8

(*) Unconsolidated

27

Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 119.1% of the E-H portfolio

LLP / Loan E H (%) 9M10 9M11 Total 106.2% 119.1%

Efficiency Ratio: despite the 8.1 p.p. increase during last 12 months, this ratio remains stable, proving the adequate manner in which we manage operating costs.

Efficiency Ratio %

28

33.0 22.5 24.6 23.5 31.6 2008 2009 2010 9M10 9M11

Expenses (R$ mn) 2008 2009 2010 9M10 9M11 Personnel Expenses (exclude IFP) (71.0) (63.9) (91.3) (65.8) (86.1) Administrative Expenses (exclude IFP) (87.8) (65.8) (83.7) (58.7) (86.8) Subtotal Expenses (exclude IFP) (158.8) (129.7) (175.0) 124.5 172.9 Personnel Expenses - IFP

• (3.0)

(0.2) (6.5) Administrative Expenses - IFP

• (1.0)
• (4.1)

Subtotal

• (4.0)

(0.2) (10.6) Comission Expenses (total retail) (84.8) (43.7) (29.9) (21.5) (36.4) Total (243.6) (173.4) (208.9) (146.2) (219.9) Efficiency Ratio (%) 33.0 22.5 24.6 23.5 31.6 Efficiency Ratio (considering Profit Sharing) (%) 35.3 24.4 28.2 26.7 35.3

2.3 2.3 3.1 2.9 3.6

2008 2009 2010 9M10 9M11

1,607.0 1,692.7 1,777.8 1,735.6 1,903.4 2008 2009 2010 9M10 9M11

Shareholders’ Equity – R$ Million Loan Portfolio / Shareholders’ Equity - times

Capital Structure: maintenance of low leverage

29

30

Basel Index

Basel Index % - Tier I In 3Q11 the Basel II Ratio, calculated based

• n the standardized approach and reflecting

the changes required under Bacen circular letter 3515/2010, reached 16.6%, an increase

• f 1.8 p.p. in comparison to 2Q11. Had the

same calculation formula as applied in 2Q11 been used, the Basel Ratio would have been 17.8% in 3Q11 Basel Ratio considering the conversion of the warrants in the amount of R$ 536.0 million

Current net equity (September/11)

1,903.4

Capital Increase (exercising the warrants)

536.0

Restated net equity

2,439.4

Basel Ratio after the conversion

21.3%

16.6 21.3

9M11 9M11 (*)

Basel Index % - Tier I

(*) If we take into consideration the conversion of the warrants in the amount of R$ 536.0 million, which could be

done at any moment between March 2011 through March 2014

28.2 28.6 19.9 21.2 16.6 2008 2009 2010 9M10 9M11

31

Return on Average Equity (ROAE) - % Net Interest Margin Adjusted and Recurring (NIM-AR) (1) - % Return on Average Assets (ROAA) - % Net Income – R$ mn

Profitability: Net Income of R$214.3 million, in 9M11

(1) New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations,

DAYC4 swaps, portfolio transfers to other banks and matched operations — repurchase agreements-tri-party repos outstanding

200.2 211.1 274.7 203.8 214.3 2008 2009 2010 9M10 9M11 12.6 12.9 16.0 16.3 15.9 2008 2009 2010 9M10 9M11 2.8 3.3 3.3 3.4 2.8 2008 2009 2010 9M10 9M11 12.2 12.6 11.2 11.4 11.3 2008 2009 2010 9M10 9M11

Peer Analysis – June 2011

32

Shareholders’Equity (R$ Million) (1) Loan Portfolio / Shareholders’Equity – times (1) Basel Index (%) (1)

(1) Source: Bank’s reports as of June 2011

Loan Portfolio (R$ Million) (1) Loan Loss Provisions / Credit Portfolio (%) (1)

Peer Analysis – June 2011

(1) Source: Bank’s reports as of June 2011

Growth of Total Credit Portfolio YoY - (%) (1)

33

34

1H11 Net Income (R$ Million) (1) 2Q11 Net Income - R$ Million (1) 1H11 Net Income / Loan Porfolio - (%) (1)

Peer Analysis – June 2011

(1) Source: Bank’s reports as of June 2011

35

Return on Average Assets (ROAA) - % (1) Efficiency Ratio - % (1)

Peer Analysis – 2Q11

Net Interest Margin (NIM) - % (1)

(2) NIM-AR: New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks

and matched operations — repurchase agreements-tri-party repos outstanding.

(1) Source: Bank’s reports as of June 2011

Return on Average Equity (ROAE) - % (1)

(2) (2)

Daycoval’s Strengths

Growth capability with reduced costs Low leverage level Access to diversified funding sources Experienced management team compromised with corporate governance Recognized as one of the best Brazilian Middle Market Banks Conservative profile and solid capital structure Strict credit policy

36

37

Recurring Key Figures 2010 1Q11 2Q11 3Q11 9M11

Net Income (R$ mn) 274.7 43.5 75.2 95.7 214.3 Hedge/MTM (R$ mn) 4.4 (13.2) 3.7 19.4 9.9 Swap DAYC4 (R$ mn) 15.5 (6.4) (12.4) (11.2) (30.0) Adjusted Net Income (R$ MM) 254.8 63.1 83.9 87.5 234.4 Adjusted ROAA (%) 3.1% 2.7% 3.3% 3.3% 3.1%

Adjusted ROAE (%) 14.8% 14.9% 19.7% 19.9% 17.4%

Adjusted Eficiency Ratio (%) 25.6 31.8 29.7 32.5

31.4 NIM-AR - % p.y 11.2 10.9 12.3 11.7 11.3

Recurring Key Figures

38

Recurring Adjusted Net Interest Margin - (NIM-AR) - (R$ mn) 2008 2009 2010 1Q11 2Q11 3Q11 9M11 Income from Financial Intermediation adjusted by Loan Loss Provision and Exchange Rate Variation 706.5 742.6 804.6 168.9 226.7

253.0 648.7

Hedge/MTM (12.2) 13.3 7.4 (22.0) 6.1

32.3 16.4

Swap DAYC4 0.0 0.0 25.8 (10.7) (20.7)

(18.7) (50.1)

Credit Assigments 13.7 - 16.3 (2.6) (2.2) (1.3) (6.1) Recurring Adjusted Income from Financial Intermediation (A) 705.0 729.3 755.1 204.2 243.5

240.7 688.5

Average Remunerated Assets 6,682.1 6,130.1 7,764.0 8,741.9 9,151.9

9,679.6 9,191.1

(-) repurchase agreements-tri-party repos outstanding (922.6) (363.4) (1,019.7) (963.3) (874.1)

(1,100.1) (979.1)

Average Remunerated Assets (C) 5,759.5 5,766.7 6,744.3 7,778.6 8,277.8

8,579.5 8,212.0

Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/C) 12.2% 12.6% 11.2% 10.9% 12.3% 11.7% 11.3%

Recurring Adjusted Net Interest Margin – (NIM-AR)

(*) Unconsolidated

Quality of Loan Portfolio (*) : establishment of Provision R$ (mn)

2007 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09 3Q09 4Q09 2009 1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 9M11 Middle Market + Trade Finance 38.4 12.5 17.1 28.9 44.4 102.9 38.8 41.2 36.8

• 4.1 112.7

17.2 12.2 37.1 14.2 80.7 24.5 15.3 20.1 59.9 Payroll 13.1 4.0 2.8 7.4 4.6 18.8 7.0 7.1 6.0 8.5 28.6 7.1 7.5 8.6 7.9 31.1 9.8 9.6 12.8 32.2 Auto Loans 9.3 13.0 8.1 15.2 18.5 54.8 29.2 30.5 24.9 12.0 96.6 12.8 9.1 5.8 4.8 32.5 7.0 6.5 5.4 18.9 Direct Credit to Consumers + Other

• 0.1

0.1 0.2 0.4 0.2 0.3 0.5 0.6 1.6 0.7 0.7 0.6 0.9 2.9 1.3 1.7 1.9 4.9 Establishment of Provision 60.8 29.5 28.1 51.6 67.7 176.9 75.2 79.1 68.2 17.0 239.5 37.8 29.5 52.1 27.8 147.2 42.6 33.1 40.2 115.9

(*) Unconsolidated

Quality of Loan Portfolio (*): Past due operations more than 60 days

3Q11

Net Income – (R$ mn)

57.7 62.2 70.2 62.5 41.7 20.4 48.0 38.542.0 82.5 54.6 64.2 85.0 70.9 43.5 75.2 95.7 231.0 200.2211.1 274.7 214.3

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 2007 2008 2009 2010 9M11

36

Quality of Loan Portfolio - Loan Loss Provision

2.3% 2.1% 2.0% 2.3% 2.6% 2.5% 3.4% 5.3% 7.1% 7.9% 7.8% 5.6% 4.6% 3.5% 3.2% 3.1% 3.0% 2.9% 2.5%

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

LLP/Loan Portfolio

37

Balance Sheet

Amounts in R$’000

Assets 3Q11 2Q11 3Q10 Current Assets 8,019,265 7,549,196 6,451,247 Cash and Cash Equivalents 15,038 13,224 62,038 Interbank Investments 2,505,003 2,611,276 2,464,792 Securities and Derivatives 163,556 213,173 222,204 Interbank Accounts 106,890 98,210 17,172 Lending Operations 4,247,648 3,836,511 3,177,214 Other Receivables 902,543 707,998 446,119 Other Assets 78,587 68,804 61,708 Long-Term Assets 3,471,963 3,463,689 2,867,541 Interbank Investments 33,912 140,032 19,202.00 Securities and Derivatives 658,176 756,405 902,991 Lending Operations 2,184,889 2,063,005 1,632,459 Other Receivables 531,988 446,180 280,141 Other Assets 62,998 58,067 32,748 Permanent 11,125 11,102 10,425 Investments 581 581 391 Property and Equipment in Use 10,523 10,496 9,989 Intangible 21 25 45 Total Assets 11,502,353 11,023,987 9,329,213 Liabilities 3Q11 2Q11 3Q10 Current Liabilities 5,869,243 5,189,817 4,506,512 Deposits 2,620,308 2,568,795 1,758,016 Money Market Funding 1,587,261 1,442,908 1,724,217 Funds from Acceptance and Issuance of 58,387 200,208 169,777 Interbank Accounts 19,517.00 13,096 4,605 Interbranch Accounts 17,365 4,335 10,597 Borrowings and Onlendings 1,209,492 645,625 623,330 Derivatives 54,144 50,627 14,306 Provisions of Insurance and Pension 23,080 22,330 20,548 Other payables 279,689 241,893 181,116 Long-term Liabilities 3,715,108 3,977,812 3,082,204 Deposits 1,501,551 1,571,612 1,489,837 Funds from Acceptance and Issuance of 1,094,530 895,875 487,230 Borrowings and Onlendings 557,478 830,775 646,500 Derivatives 7,843 155,716 34,445 Other Payables 553,706 523,834 424,192 Deferred Income 14,014 13,355 4,275 Minority Interest 623 625 582 Shareholders´ Equity 1,903,365 1,842,378 1,735,640 Capital of Brazilian Residents 1,359,143 1,359,143 1,359,143 Capital Reserves

• -

192 Revaluation Reserves 1,339 1,365 1,467 Profit Reserves 405,910 399,954 252,190 ( - ) Treasury Stocks (6,183) (7,700) (7,900) Adjustments of Shareholders' Equity Securities and Derivatives Available for 406 (3,307) 4,057 Total Liabilities 11,502,353 11,023,987 9,329,213

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Income Statement

Amounts in R$’000

3Q11 2Q11

• Var. %

3Q10

• Var. %

9M11 9M10

• Var. %

Income from Financial Intermediation 818,969 327,570 150.0% 321,693 154.6% 1,431,302 916,186 56.2% Lending Operation 421,518 340,903 23.6% 252,918 66.7% 1,050,832 686,522 53.1% Securities Operations 108,390 86,985 24.6% 101,952 6.3% 278,377 232,535 19.7% Derivatives 224,908 (106,766)

• 310.7%

(33,177) n.a. 23,537 (17,454) n.a. Foreign Exchange Operations 64,153 6,448 n.a

• n.a.

78,556 14,583 438.7% Expenses of Financial Intermediation (605,576) (207,033) 192.5% (203,797) 197.1% (1,022,558) (520,376) 96.5% Funding Expenses (371,870) (157,607) 135.9% (133,566) 178.4% (672,502) (349,291) 92.5% Borrowing and Onlendings (194,070) (16,354) n.a. (17,640) n.a. (230,919) (51,203) 351.0% Loan Losses Provisions (39,636) (33,072) 19.8% (52,123)

• 24.0%

(119,137) (119,414)

• 0.2%

Gross Profit from Financial Intermediation 213,393 120,537 77.0% 117,896 81.0% 408,744 395,810 3.3% Other Operating Income (Expenses) (67,302) 13,496 n.a. 15,746

• 527.4%

(73,160) (89,875)

• 18.6%

Income from Services Provided 16,488 13,845 19.1% 9,925 66.1% 43,262 24,261 78.3% Personnel Expenses (35,119) (28,903) 21.5% (22,736) 54.5% (92,647) (65,955) 40.5% Other Administrative Expenses (48,468) (38,557) 25.7% (30,098) 61.0% (127,252) (80,252) 58.6% Tax Expenses (14,210) (12,851) 10.6% (11,634) 22.1% (39,204) (29,696) 32.0% Other Operating Income 32,497 106,447

• 69.5%

96,843

• 66.4%

208,051 109,788 89.5% Other Operating Expenses (18,490) (26,485)

• 30.2%

(26,554)

• 30.4%

(65,370) (48,021) 36.1% Income from Operation 146,091 134,033 9.0% 133,642 9.3% 335,584 305,935 9.7% Non-operating Expenses (2,129) (1,064) 100.1% (1,435) 48.4% (4,775) (8,025)

• 40.5%

Income before Taxes and Minority Interest 143,962 132,969 8.3% 132,207 8.9% 330,809 297,910 11.0% Income and Social Contribution Taxes (36,154) (51,829)

• 30.2%

(39,890)

• 9.4%

(90,722) (74,386) 22.0% Provision for Income Tax (18,885) (35,790)

• 47.2%

(22,596)

• 16.4%

(69,847) (46,668) 49.7% Provision for Social Contribution Tax (11,612) (21,432)

• 45.8%

(13,436)

• 13.6%

(41,949) (27,909) 50.3% Deferred Taxes (5,657) 5,393

• 204.9%

(3,858) 46.6% 21,074 191 n.a. Profit-Sharing (12,097) (5,930) 104.0% (7,294) 65.8% (25,703) (19,681) 30.6% Minority Interest (13) (12) 8.3% (11) 18.2% (38) (29) 31.0% Net Income 95,698 75,198 27.3% 85,012 12.6% 214,346 203,814 5.2% Interest on Shareholders´ Equity (39,445)

• n.a.

(23,909)

• (65,244)

(71,506) 0.09

• Earnings per Share (R$)
• 0.35

27.2% 0.39 n.a. 0.99 0.95 0.05 Number of Shares 215,662,382 215,499,881 n.a. 215,478,453 n.a. 215,662,382 215,478,453 n.a.

Investor Relations

Phone: +55 (11) 3138.1024/1025/1039 ri@daycoval.com.br

“This report may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Banco Daycoval as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the middle-market segment, the ability of Banco Daycoval to obtain funding for its operations, and amendments to Central Bank regulations. The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying estimates and

• projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the

environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report”.

9M11 Institutional Presentation

40