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

Institutional Presentation

June 2011

2

Agenda

Overview and Market Capital Brazilian Credit Market Peers 2Q11 Results

Page 3 Page 4 Page 28 Page 9

Appendix

Page 32

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 47.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H11

Brazilian Credit Market

Credit Evolution in Brazil (% of GDP) Total credit operations of the financial system - R$Billion

Source: Brazil Central Bank 3

Financial System Total Credit Operations vs. Banco Daycoval (% p.y.) 498.7 607.0 732.6 935.9 1,227.3 1,414.3 1,705.8 1,834.0

2004 2005 2006 2007 2008 2009 2010 1H11 40 51 67 112 15

• 1

53 14 19 22 21 28 31 15 21 8

2004 2005 2006 2007 2008 2009 2010 1H11 Daycoval Loan Portfolio Brazilian Credit Volume

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 Shareholders’ Equity 16º 22º Net Income 18º 24º Total Deposits 20º 27º Total Assets 24º 28º

Rating

Financial System Ranking

5

Source: Brazil Central Bank – March 2011

Global Scale Long Term Baa3 Short TermPrime-3 National Scale Long Term Aa1 Short TermBR1 Stable Investment Grade June2011 Global Scale Long Term BB Short Term B National Scale Long Term brAA- Short Term brA-1 Positive December 2010 Global Scale Long Term BB Short TermB National Scale Long Term A+(bra) Short TermF1 (bra) Stable May 2011

Low Risk – Mid- Term Index 10.40

April 2011

Daycoval’s Market Capital and Capital Structure

Stock Performance – 2Q11

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 – June 2011

Total Shares: 216.3 million shares.

DAYC4 (R$) 2Q11 1Q11

• Chg. %

Closing Quotation 9.80 12.20

• 19.7%

High for the quater 12.40 12.95

• 4.2%

Average for the quarter 11.09 12.04

• 7.9%

Low for the quarter 9.50 11.07

• 14.2%

Market Value (R$)Million 2,119.98 2,639.16

• 19.7%

65.8% 8.5% 0.4% 25.3%

Daycoval Holding Financeira S/A Controlling Shareholders (Family) + Daycoval Expert Treasury Free-Float

7

Profitability Funds June 2011 Assets Under Management R$ Million Daycoval Renda Fixa 0.96% 148.74 % CDI 100.74% Daycoval Prev. F.I. Renda Fixa 0.93% 22.73 % CDI 97.68% Multifunds Daycoval Multifunds 0.773% 13.48 % CDI 81.21% Parnamirim 0.926% 288.35 % CDI 97.35% Oasis 1.055% 74.85 % CDI 110.84% Daycoval Classic Fim Cred. Priv 1.011% 154.35 %CDI 106.28% Apache Fim 0.975% 14.64 %CDI 102.47% Stocks Daycoval Target

• 1.47%

26.08 Diferença Ibovespa 1.96%

36 91 138 241 238 643 1,158 1,128 2004 2005 2006 2007 2008 2009 2010 1H11

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 eight open funds and twelve closed funds. Asset ended June 2011 with a total of funds generated and/or administered of R$ 1,128.2 million. Assets Under Management – R$ Million

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 56

stores in operation

throughout Brazil.

10 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

8

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 2Q11

Total Assets R$ 11,024.0 million Expanded Loan Credit Portfolio R$ 7,066.9 million Funding R$ 6,712.9 million Shareholders’ Equity R$ 1,842.4 million Basel Index 18.4%

2Q11 1H11

Net Income R$ 75.2 million R$ 118.7 million ROAE 17.6% 13.6% ROAA 3.0% 2.4% NIM-AR (*) 12.3% 11.5% Efficiency Ratio 27.9% 32.0%

(*) 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.

9

10

Loan Portfolio: growth higher than the market average

Expanded Loan Portfolio – R$ Million

Loan Portfolio by Segment (R$ mn) 2Q11 1Q11

• Chg. %

2Q10

• Chg. %

Middle Market / Other 3,641.8 3,564.1

2.2% 2,591.5 40.5%

Trade Finance 542.6 375.8

44.4% 281.7 92.6%

Avals and Sureties Granted 316.3 247.7

27.7% 124.1 154.9%

Receivables purchase

284.8 214.7 32.7% 57.8 n.a Total Portfolio Middle Market 4,785.5 4,402.3 8.7% 3,055.1 56.6%

Payroll Loans 1,586.8 1,486.1

6.8% 1,196.1 32.7%

Payroll Loans Portfolio Assignments 96.7 130.7

• 26.0%

42.0 130.2% Total Payroll Loans 1,683.5 1,616.8 4.1% 1,238.1 36.0%

Auto Loans 536.7 513.9

4.4% 486.1 10.4%

Auto Loans Portfolio Assignments 13.2 18.0

• 26.7%

38.2

• 65.4%

Total Auto Loans 549.9 531.9 3.4% 524.3 4.9% Direct Credit to Consumers (DCC) 48.0 45.2 6.2% 27.1 77.1%

Total 7,066.9 6,596.2 7.1% 4,844.6 45.9%

4,765 5,485 6,031 6,447 6,957 80 61 191 149 110 2Q10 3Q10 4Q10 1Q11 2Q11

Loan Portfolio Credit Assignments

5,546 4,845 Loan Portfolio – R$ Million

7.1% 45.9%

6,222 6,596 7,067

Expanded Credit Portfolio: growth of 7.1% during the quarter

11 67.7% 23.8% 7.8% 0.7%

Middle Market Payroll Loans Auto Loans DCC Breakdown Loan Portfolio (*) 1Q11

66.7% 24.5% 8.1% 0.7%

Middle Market Payroll Loans Auto Loans DCC

Breakdown Loan Portfolio (*) 2Q11

(*)Includes Credit Assignments, sureties and avals granted and the purchase of credit reghts

Middle Market: increase of 56.6% over the past 12 months, currently representing 67.7%

• f the total portfolio

Breakdown Portfolio Middle Market 2Q11 (million)

Working Capital R$ 2,231.2 46.7% Guaranteed Account R$ 1,117.0 23.3% Trade Finance R$ 542.6 11.3% Avals and Sureties R$ 316.3 6.6% BNDES R$ 293.6 6.1% Receivables Purchase R$ 284.8 6.0% TOTAL R$ 4,785.5 100.0%

12

Middle Market Portfolio – R$ Million 3,055 3,627 4,177 4,402 4,786 2Q10 3Q10 4Q10 1Q11 2Q11

53.7% 15.6% 4.6% 13.5% 5.9% 6.7%

Receivables Vehicles / Real Estate Agricultural Products Financial Investments Equipments / Foreign goods Other

Guarantees Breakdown – 2Q11

45.1% 31.9% 17.9% 5.1%

Industry Services Commerce Other Sectors Breakdown – 2Q11

58.4% 13.2% 13.3% 5.7% 9.4%

Southeast South Northeast Mid-West North

Geographic Distribution – 2Q11

Daycred Payroll: INSS and Army continue to drive growth

301 416 386 419 313

2Q10 3Q10 4Q10 1Q11 2Q11 1,238 1,383 1,476 1,617 1,684

2Q10 3Q10 4Q10 1Q11 2Q11

(*) Includes credit assignments in all of the quarters (R$ 96.7million in 2Q11)

38.2% 34.3% 12.0% 7.7% 4.3%3.1% 0.4%

INSS Army State Government Law Courts and Legislative Bodies Municipalities Other Private

34.8% 48.2% 7.7% 4.9%0.8%3.6%

INSS Army State Government Law Courts and Legislative Bodies Municipalities Private + Other Total Origination – R$ Million Total Loan Portfolio (*) – R$ Million Total Loan Portfolio (*) – R$ 1,684mn – 2Q11 - % Total Origination – R$ 313 mn – 2Q11- %

13

524 501 527 532 550 2Q10 3Q10 4Q10 1Q11 2Q11

Daycred Auto Loans: new origination strategy

37 59 72 76 80 2Q10 3Q10 4Q10 1Q11 2Q11

Total Loan Portfolio (*) – R$ Million Total Origination – R$ Million Liquidity of Auto Loans Portfolio 2Q11 – R$ Million

Liquidity Receiving Paid Past due more than 90 days Ratio Delinquency /Total Loan

Loan Portfolio 1,611 1,437 174 10.8% Old Loan 1,422 1,260 162 11.4% New Loan 156 149 6 4.1%

(*) Includes credit assignments in all of the quarters (R$ 13.2million in 2Q11)

14

Origination Last 12 months (*)

86.4% 13.6%

Small Vehicles Heavy-duty Vehicles

(*) We have not financed motorcycles since October 2009

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

27.1 35.3 42.6 45.2 48.0

2Q10 3Q10 4Q10 1Q11 2Q11

15

16

Funding (R$ mn) 2Q11 1Q11

• Chg. %

Total Deposits 4.140,4 3.422,4 21,0% Demand Deposits + Other Deposits 333,5 230,0 45,0% Time Deposits 3.441,5 2.935,4 17,2% Interbank Deposits 365,4 257,0 42,2% Borrowing and Onlending 1.476,4 1.411,4 4,6% Foreign Issuances 1.054,1 1.074,6

• 1,9%

Banknotes + Letter of Credit - Agribusiness 42,0 7,3 n.a. Total 6.712,9 5.915,7 13,5% Funding – R$ Million 5,916 5,175 5,241 4,842

57% 63% 61% 58% 62% 28% 25% 26% 24% 22% 15% 12% 13% 18% 16%

2Q10 3Q10 4Q10 1Q11 2Q11 Foreign Issuances Borrowing and Onlending Total Deposits

13.5% 38.6%

6,713

Funding: strong growth of 13.5% during the quarter

17

2,775 3,248 3,194 3,422 4,140 2Q10 3Q10 4Q10 1Q11 2Q11

Total Deposits Breakdown – 2Q11

41.8% 18.8% 27.0% 4.7% 7.7%

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

Total Deposits Breakdown – 1Q11

41.0% 16.2% 26.6% 7.4% 8.8%

Corporates + Demand Deposits Individuals Investment Funds Institutional Financial Institutions + Interbank Deposits Total Deposits - R$ Million

Total Deposits: growth of 49.2% over the past 12 months

Foreign Currency Funding

Foreign Issuances and Borrowing and Onlending - R$ Million

34% 34% 32% 43% 42% 66% 66% 68% 57% 58% 2Q10 3Q10 4Q10 1Q11 2Q11

Borrowing and Onlending Foreign Issuances

2,066.9 1,925.8 2,044.0 2,486.0 2,530.5

18

Date of Transaction Maturity Amount (US$ mn)

Eurobond July/2008 July/2011 100 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

32.7% 33.2% 25.9% 7.4% 0.9%

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) 2Q11 - % Outstanding Operations (Funding) 2Q11 - %

19.7% 28.6% 32.2% 18.0% 1.5%

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 86 days between the duration of the credit and funding

• perations

19

Maturity of 65.9%

• ver the next 12

months Maturity of 48.3%

• ver the next 12

months

Funding Average term to Maturity (1) days Time Deposits 234 Interbank Deposits 378 Banknotes 653 Foreign Issuances 982 Borrowing and Onlending (2) 414

Total Funding 500

Loan Portfolio by Segment Average term to Maturity (1) days Total Portfolio Middle Market 210 Payroll Loans 719 Auto Loans 468 DCC + Other 221

Total Loan Portfolio 414

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

20

Liquidity

2Q11 Cash Breakdown (%) 2Q11 Total Assets Breakdown (%) 2Q11 Total Assets - R$mn 62.4% 37.6%

Overnight Repos (Selic) Federal Government Bonds

2Q11 R$ mn Cash 1,590.0 Liquid Assets 2,279.5 Total Assets 11,024.0

8,814 9,329 8,939 9,787 11,024 2Q10 3Q10 4Q10 1Q11 2Q11

53.5% 25.0% 12.7% 8.8%

Operações de Crédito Aplicações Interfinanceiras de Liquidez Outros Ativos Títulos e Valores Mobiliários e Derivativos

Quality of Loan Portfolio (*): Provision constitution is comfortable

Total Provision / Loan Porfolio (%)

(*) Unconsolidated

21

Provision Total Loan Portfolio

2Q11

Portfolio R$ mn % Provision R$ mn Total Provision / Loan(%) Middle Market + Trade Finance 4,184.4 66.0 116.4 2.8 Payroll 1,586.8 25.0 36.0 2.3 Auto Loans 414.0 6.5 27.9 6.7 CDC Retailers / Other 48.0 0.8 3.9 8.1 Subtotal 6,233.2 98.3 184.2 3.0 Credit Assignments 109.9 1.7 0.6 0.5 Total 6,343.1 100.0 184.8 2.9

3.4 3.2 3.1 3.0 2.9 2.9 2.9 2.9 2.9 2.8 2.2 2.1 2.2 2.1 2.3 12.7 10.4 8.2 7.3 6.7 7.4 5.9 5.4 6.4 8.1 2Q10 3Q10 4Q10 1Q11 2Q11

Establishment of Provision - R$ mn 2Q10 3Q10 4Q10 1Q11 2Q11 Middle Market + Trade Finance 12.2 37.1 14.2 24.5 15.3 Payroll 7.5 8.6 7.9 9.8 9.6 Auto Loans 9.1 5.8 4.8 7.0 6.5 Direct Credit to Consumers 0.7 0.6 0.9 1.3 1.7 Total 29.5 52.1 27.8 42.6 33.1

153 160 170 178 184 30 52 28 43 33 2Q10 3Q10 4Q10 1Q11 2Q11

Balance of Provision Establishment of Provision

Balance and Establishment of Provision - R$ Million

(*) Unconsolidated

22

Quality of Loan Portfolio (*)

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

(*) Unconsolidated

23

Quality of Loan Portfolio (*)

Recovered Loans - R$ mn 2Q10 1Q11 2Q11 (%) Loan Middle Market + Trade Finance 9.9 1.2 14.4 0.3 Retail 3.1 3.2 4.2 0.2 Total 13.0 4.4 18.6 0.3 Write-offs - R$ mn 2Q10 1Q11 2Q11 (%) Loan Total (51.8) (34.6) (26.7) 0.4 Loan E-H - R$ mn 3 T 2Q10 1Q11 2Q11 (%) Loan Middle Market + Trade Finance 92.7 94.1 91.3 2.2 Payroll 24.1 29.5 32.1 2.0 Auto 51.0 32.7 31.4 7.6 DCC 2.2 3.3 4.6 9.6 Total 170.0 159.6 159.4 2.6%

(*) Unconsolidated

24

Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 115.6% of the E-H portfolio

LLP / Loan E H (%) 2Q10 1Q11 2Q11 Total 90.2% 111.4% 115.6%

Efficiency Ratio: is at a stable level, proving our adequate management of operating costs

2Q11 1Q11

• Chg. %

2Q10

• Chg. %

Personnel Expenses (exclude IFP) (26.7) (26.4) 1.1% (21.8) 22.5% Administrative Expenses (exclude IFP) (25.7) (29.3)

• 12.3%

(18.3) 40.4% Subtotal Expenses (exclude IFP) (52.4) (55.7)

• 5.9%

(40.1) 30.7% Personnel and Administrative Expenses - IFP (2.2) (2.2) 0.0%

• n.a.

Administrative Expenses - IFP (1.3) (1.4)

• 7.1%
• n.a.

Subtotal (3.5) (3.6)

• 2.8%
• n.a.

Comission Expenses (total retail) (11.6) (9.5) 22.1% (6.5) 78.5% Total (67.5) (68.8)

• 1.9%

(46.6) 44.8% Efficiency Ratio (%) 27.9 37.6

• 9.7 p.p

24.1 3.8 p.p Efficiency Ratio (considering Profit Sharing) (%) 30.3 41.8

• 11.5 p.p

27.1 3.2 p.p

24.1 20.4 27.8 37.6 27.9 24.2 23.2 24.6 26.9 27.7 2Q10 3Q10 4Q10 1Q11 2Q11

Efficiency Ratio Average Past 12 months

Efficiency Ratio %

25

2.6 2.9 3.0 3.3 3.4

2Q10 3Q10 4Q10 1Q11 2Q11 22.3 21.2 19.9 18.0 18.4 2Q10 3Q10 4Q10 1Q11 2Q11

1,668.0 1,735.6 1,777.8 1,791.2 1,842.4 2Q10 3Q10 4Q10 1Q11 2Q11

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

Capital Structure: maintenance of low leverage

26

27

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

64.2 85.0 70.9 43.5 75.2 118.8 118.7 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 16.0 21.4 17.0 10.1 17.6 14.5 13.6 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 11.5 12.3 11.5 10.9 12.3 11.3 11.5 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 3.2 3.8 3.1 1.8 3.0 3.2 2.4 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11

Profitability: Net Income of R$75.2 million, significant growth of 72.9% compared to 1Q11

(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

Peer Analysis – June 2011

28

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)

29

30

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

31

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

32

33

Recurring Adjusted Net Interest Margin – (NIM-AR)

Recurring Adjusted Net Interest Margin - (NIM-AR) - (R$ mn) 2009 1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 Income from Financial Intermediation adjusted by Loan Loss Provision and Exchange Rate Variation 742.6 162.7 183.9 246.0 211.9 804.6 168.9 226.7 Hedge/MTM 13.3 (3.8) 8.1 21.9 (18.8) 7.4 (22.0) 6.1 Swap DAYC4

• 0.7

(5.4) 18.8 11.7 25.8 (10.7) (20.7) Credit Assigments

• - - -

16.3 16.3 (2.6) (2.2) Recurring Adjusted Income from Financial Intermediation (A) 729.3 165.8 181.2 205.3 202.7 755.1 204.2 243.5 Average Remunerated Assets 6,130.1 6,388.3 7,547.0 8,454.0 8,618.1 7,764.0 8,741.9 9,151.9 (-) repurchase agreements-tri-party repos outstanding (363.4) (371.0) (964.3) (1,459.1) (1,284.4) (1,019.7) (963.3) (874.1) Average Remunerated Assets (C) 5,766.7 6,017.3 6,582.7 6,994.9 7,333.7 6,744.3 7,778.6 8,277.8 Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/C) 12.6% 11.5% 11.5% 12.3% 11.5% 11.2% 10.9% 12.3%

34

Overview of Quality Loan Portfolio

Overview of Quality Loan Portfolio 2Q11 1Q11

• Chg. %

2Q10

• Chg. %

Loan Portfolio R$ (mn) 6,233.2 5,848.6 6.6% 4,394.5 41.8% Establishment of Provision R$ (mn) 33.1 42.6

• 22.3%

29.5 12.2% Final Balance LLP (R$ mn) 184.2 177.8 3.6% 153.3 20.2% Final Balance Loan EH R$ (mn) 159.4 159.6

• 0.1%

169.9

• 6.2%

Overdue Loans more than 14 days past due R$ (mn) 99.5 93.1 6.9% 91.2 9.1% Overdue Loans more than 60 days past due R$ (mn) 66.1 57.4 15.2% 60.2 9.8% Establishment of Provision/Loan Portfolio (%) 0.5% 0.7%

• 0.2 p.p

0.7%

• 0.2 p.p

Final Balance LLP/Loan Portfolio (%) 3.0% 3.0%

• 3.5%
• 0.5 p.p

Final Balance Loan EH/Loan Porfolio (%) 2.6% 2.7%

• 0.1 p.p

3.9%

• 1.3 p.p

Overdue Loans more than 14 days past due / Loan Portfolio (%) 1.6% 1.6%

• 2.1%
• 0.5 p.p

Overdue Loans more than 60 days past due / Loan Portfolio (%) 1.1% 1.0% 0.1 p.p 1.4%

• 0.3 p.p

Final Balance LLP / Overdue Loans more than 14 days past due R$ (MM) 185.1% 191.0%

• 5.9 p.p

168.1% 17.0 p.p Final Balance LLP / Overdue Loans more than 60 days past due R$ (MM) 278.7% 309.8%

• 31.1 p.p

254.7% 24.0 p.p Final Balance LLP / Loan EH (%) 115.6% 111.4% 4.2 p.p 90.2% 25.4 p.p Write-offs R$ (mn) (26.7) (34.6)

• 22.8%

(51.8)

• 48.5%

Recovered Loans R$ (mn) 18.6 4.4 322.7% 13.0 43.1%

35

Balance Sheet

Amounts in R$’000

Assets 2Q11 1Q11 2Q10 Current Assets 7,549,196 6,458,071 6,436,299 Cash and Cash Equivalents 13,224 24,373 58,306 Interbank Investments 2,611,276 1,871,110 3,021,014 Securities and Derivatives 213,173 238,833 172,996 Interbank Accounts 98,210 98,677 11,428 Lending Operations 3,836,511 3,636,460 2,761,494 Other Receivables 707,998 527,561 352,439 Other Assets 68,804 61,057 58,622 Long-Term Assets 3,463,689 3,318,544 2,366,828 Interbank Investments 140,032 91,011 2,549 Securities and Derivatives 756,405 882,743 581,463 Lending Operations 2,063,005 1,954,851 1,486,474 Other Receivables 446,180 347,829 267,980 Other Assets 58,067 42,110 28,362 Permanent 11,102 10,471 10,334 Investments 581 582 391 Property and Equipment in Use 10,496 9,862 9,889 Intangible 25 27 54 Total Assets 11,023,987 9,787,086 8,813,461 Liabilities 2Q11 1Q11 2Q10 Current Liabilities 5,189,817 4,266,531 3,872,569 Deposits 2,568,795 1,987,772 1,334,269 Money Market Funding 1,442,908 1,220,835 1,691,890 Funds from Acceptance and Issuance of 200,208 171,991 15,868 Interbank Accounts 13,096 5,630 3,595 Interbranch Accounts 4,335 13,230 4,428 Borrowings and Onlendings 645,625 652,735 634,804 Derivatives 50,627 21,702 5,563 Provisions of Insurance and Pension Plans 22,330 21,565 20,019 Other payables 241,893 171,071 162,133 Long-term Liabilities 3,977,812 3,722,465 3,268,458 Deposits 1,571,612 1,434,628 1,440,687 Funds from Acceptance and Issuance of 895,875 909,888 696,222 Borrowings and Onlendings 830,775 758,659 720,058 Derivatives 155,716 113,083 14,455 Other Payables 523,834 506,207 397,036 Deferred Income 13,355 6,274 3,848 Minority Interest 625 612 570 Shareholders´ Equity 1,842,378 1,791,204 1,668,016 Capital of Brazilian Residents 1,359,143 1,359,143 1,359,143 Capital Reserves

• -

192 Revaluation Reserves 1,365 1,391 1,492 Profit Reserves 399,954 426,978 253,598 ( - ) Treasury Stocks (7,700) (7,900) (11,706) Adjustments of Shareholders' Equity Evaluation Securities and Derivatives Available for Sale (3,307) (6,107) (66) Retained Earnings 92,923 17,699 65,363 Total Liabilities 11,023,987 9,787,086 8,813,461

36

Income Statement

Amounts in R$’000

2Q11 1Q11

• Var. %

2Q10

• Var. %

1H11 1H10

• Var. %

Income from Financial Intermediation 327,570 284,763 15.0% 323,752 1.2% 612,333 594,493 3.0% Lending Operation 340,903 288,411 18.2% 234,274 45.5% 629,314 433,604 45.1% Securities Operations 86,985 83,002 4.8% 75,152 15.7% 169,987 130,583 30.2% Derivatives (106,766) (94,605) 12.9% 8,358 n.a. (201,371) 15,723 n.a. Foreign Exchange Operations 6,448 7,955

• 18.9%

5,968 8.0% 14,403 14,583

• 1.2%

Expenses of Financial Intermediation (207,033) (209,949)

• 1.4%

(170,746) 21.3% (416,982) (316,579) 31.7% Funding Expenses (157,607) (143,025) 10.2% (122,958) 28.2% (300,632) (215,725) 39.4% Borrowing and Onlendings (16,354) (20,495)

• 20.2%

(18,278)

• 10.5%

(36,849) (33,563) 9.8% Loan Losses Provisions (33,072) (46,429)

• 28.8%

(29,510) 12.1% (79,501) (67,291) 18.1% Gross Profit from Financial Intermediation 120,537 74,814 61.1% 153,006

• 21.2%

195,351 277,914

• 29.7%

Other Operating Income (Expenses) 13,496 (19,354) n.a. (52,714)

• 125.6%

(5,858) (105,621)

• 94.5%

Income from Services Provided 13,845 12,929 7.1% 7,202 92.2% 26,774 14,336 86.8% Personnel Expenses (28,903) (28,625) 1.0% (21,793) 32.6% (57,528) (43,219) 33.1% Other Administrative Expenses (38,557) (40,227)

• 4.2%

(24,766) 55.7% (78,784) (50,154) 57.1% Tax Expenses (12,851) (12,143) 5.8% (9,202) 39.7% (24,994) (18,062) 38.4% Other Operating Income 106,447 69,107 54.0% 6,984 n.a. 175,554 12,945 n.a. Other Operating Expenses (26,485) (20,395) 29.9% (11,139) 137.8% (46,880) (21,467) 118.4% Income from Operation 134,033 55,460 141.7% 100,292 33.6% 189,493 172,293 10.0% Non-operating Expenses (1,064) (1,582)

• 32.7%

(4,034)

• 73.6%

(2,646) (6,590)

• 59.8%

Income before Taxes and Minority Interest 132,969 53,878 146.8% 96,258 38.1% 186,847 165,703 12.8% Income and Social Contribution Taxes (51,829) (2,739) n.a. (26,344) 96.7% (54,568) (34,496) 58.2% Provision for Income Tax (35,790) (15,172) 135.9% (14,402) 148.5% (50,962) (24,072) 111.7% Provision for Social Contribution Tax (21,432) (8,905) 140.7% (8,691) 146.6% (30,337) (14,473) 109.6% Deferred Taxes 5,393 21,338

• 74.7%

(3,251) n.a. 26,731 4,049 n.a. Profit-Sharing (5,930) (7,676)

• 22.7%

(5,747) 3.2% (13,606) (12,387) 9.8% Minority Interest (12) (13)

• 7.7%

(9) 33.3% (25) (18) 38.9% Net Income 75,198 43,450 73.1% 64,158 17.2% 118,648 118,802

• 0.1%

Interest on Shareholders´ Equity

• (25,799)
• (23,067)
• (25,799)

(47,598)

• Earnings per Share (R$)

0.35 0.20 73.1% 0.30 n.a. 0.55 0.55

• Number of Shares

215,499,881 215,478,453 n.a. 215,070,120 n.a. 215,499,881 215,070,120 n.a.

37

Breakdown of Middle Market Credit Portfolio by Sectors

Serasa - June 2011

COMMERCE 17.8% INDUSTRY 45.1% Trading 1.4% Sugar and Alcohol Mill 5.1% Commerce of new vehicles 1.3%

• Ind. of eletronics products

4.9% Commerce of foodstuffs 0.9%

• Ind. of smal vehicles

3.2% Commerce of cosmetics 0.9%

• Ind. of inner tube

2.2% Commerce of Import and Export of soy 0.9%

• Ind. of meat

1.4% Other 12.4%

• Ind. of clothes in general

1.1% Other 27.2% SERVICE 31.9% FINANCIAL 1.2% Transportation 6.9% Holding 5.2% PRIMARY 1.2% Real Estate and Home Builders 3.2% TV Chanel 1.4% INDIVIDUALS 2.3% Mixed cooperative 1.1% Other 14.1% THIRD SECTOR 0.5%

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”.

2Q11 Institutional Presentation

38