Institutional Presentation June 2010 Agenda Page 3 Brazilian - - PowerPoint PPT Presentation

Institutional Presentation

June 2010

Overview and Strategy Brazilian Credit Market

Agenda

Appendix 2Q10 Results

Page 3 Page 8 Page 34 Page 17

2

Overview and Strategy Brazilian Credit Market

Agenda

Appendix 2Q10 Results

Page 3 Page 8 Page 34 Page 17

3

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 45.7 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun/10

Overview of the Brazilian Credit Market

Credit Evolution in Brazil (% of GDP)

4

Loan to Companies up to R$ 100 million – R$ Billion

30% 31% 30% 29% 29% 30% 30% 70% 69% 70% 71% 71% 70% 70%

2004 2005 2006 2007 2008 2009 May-10 Up R$ 100.000 From R$ 100.000 to R$ 10 million 179.6 211.3 250.8 315.5 388.8 424.0 446.9 498.7 607.0 732.6 935.9 1,227.3 1,414.3 1,529.1

2004 2005 2006 2007 2008 2009 Jun-10

Total credit operations of the financial system - R$Billion

Source: Brazil Central Bank– March 2010

217 263 341 474 661 993 1,680 3,574 4,020 4,033 4,787

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10

Brazilian Credit Market vs. Banco Daycoval

Banco Santos Crisis / Beginning of Payroll Loans 3% 14% 9% 19% 22% 21% 28% 31% 15% 8% 21% 29% 39% 40% 51% 67% 112% 15%

• 1%

19% 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10 Brazilian Credit Volume Daycoval Loan Portfolio

Financial System Total Credit Operations vs. Banco Daycoval (% p.a.)

Branch Expansion Program IPO

5

Total Loan Portfolio(1) - R$ Million

World Crisis (1) Includes Avals and Sureties

Consistent Funding in Good and Bad Times

180 217 318 498 754 1,226 1,868 2,977 3,273 3,509 4,725

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10

Eurobond US$ 65 mn Banco Santos Crisis / Creation of Daycoval Asset Management IPO / AB Loan-IFC US$ 115 mn Eurobond US$ 225 mn / World Crisis Private Placement R$ 410 mn

CAGR 00 – 09: 39.1%

6

Total Funding1 - R$ Million

1 Funding = Total Deposits + Foreign Issuances +

Borrowing and Onlendings (does not include FIDC)

Eurobond US$ 120 mn / FIDC Middle Eurobond US$ 300 MM / Syndicated Loan (IFC) US$165 MM

7

Financial System Ranking

Daycoval Ranking

Private National Banks Total Assets 25º Total Funding 26º Shareholders’ Equity 14º Net Income 16º

Source: Brazil Central Bank– March 2010

Recognized in the market for its conservative profile, solid stance, credibility and excellence in the management of its businesses. Tradicional Bank, with over 40 years of operation.

Overview and Strategy Brazilian Credit Market

Agenda

Appendix 2Q10 Results

Page 3 Page 8 Page 34 Page 17

8

29 Branches

Maceió - AL Manaus - AM Porto Alegre - RS Recife - PE Rio de Janeiro - RJ Salvador - BA Vitória - ES Ribeirão Preto - SP São Bernardo - SP

São Paulo – SP - HQ

Caxias do Sul - RS Cuiabá - MT Curitiba - PR Florianópolis - SC Fortaleza - CE Aracaju - SE Belém - PA Belo Horizonte - MG Brasília - DF Campinas - SP Bom Retiro Brás Alphaville

690 employees

Faria Lima

National Presence

Londrina - PR Natal - RN

Recently

• pened

two exchange bureaus on Avenida Paulista, Brazil’s major business hub. Seven Daypag offices in major cities

• f São Paulo State: Osasco, Barueri,

Guarulhos, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu, and Detran São Paulo

Campo Grande - MS Goiânia - GO Guarulhos - SP

Distribution and New Service Outlets

9

Daycoval’s Market Capital and Corporate Structure

Stock Performance– 2Q10

10

First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 16 local and international brokerage firms. Free Float: 54,4 million shares.

Capital Structure – June/10

DAYC4 (R$) 2Q10 1Q10

• Chg. %

2Q09

• Chg. %

Closing Quotation 8.80 10.12

• 13.0%

7.10 23.9% High for the quarter 10.25 10.24 0.1% 7.60 34.9% Average for the quarter 9.12 9.88

• 7.7%

6.61 37.9% Low for the quarter 7.90 8.89

• 11.1%

4.85 62.9% Book Value 7.71 7.97

• 3.26%

7.33 5.18% Market Value(RS) Million 1,903.6 2,189.2

• 13.1%

1,580.7 20.4%

Total Shares: 216.3 million shares.

65.8% 8.4% 0.6% 25.2%

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

Daycoval’s Strategy

11

Pursue higher returns with the lowest possible risk Maintain Low Leverage and High Liquidity policy Maintain the quality of collaterals Long term funding to match the growing payroll portfolio strategy

• Focus and expected share gain

along next years

• Participate in the market

expansion

• Grow origination

Auto Payroll Middle Market

11

12

Executive Board Committee

Aproves operations above R$ 1 million.

Credit Committee

Define the approval of limits and hierarchies, monitor the performance of the credit portfolio and approve

• perations of up to R$ 1 million.

Credit Director and Analyst

Conducts the company’s economic-financial analysis, analyzes documentation and issues opinions as the Director of Credit. Together, they discuss the risks of each operation and propose them to the Credit Committee.

Sales Manager

Visits clients, prepares the credit visit report, the structure of the operation and the interaction with the internal analysis team. Is not in the credit hierarchy.

Cross selling of credit products and financial services. Proactive in the management of portfolio risks, with strict control of guarantees. Expertise and flexibility to structure transactions. Strong and specialized front-office team. Partnership posture with the clients, with special solutions for each requirement.

Loan: agile and efficient

Centralized back-office at headquarters.

13

Business Strategy : New Products Credit to individuals

Daypag meets the financing needs of car license agents, expediters and driving schools in São Paulo State by extending loans for clients to pay vehicle registration fees (road tax, compulsory third-party liability insurance, fines etc.) and facilitating payments by wire transfer. Prepaid card, rechargeable in another currency that allows withdrawals and purchases in licensed establishments to VISA worldwide. New Exchange Bureau, partners with travel agencies, brokers and other financial instituion’s.

14

Business Strategy : New Credit Products and Technology to companies

Long-term financing for investment in the business. Acquisition of new machinery and equipment. Practicality in controlling costs for company, with benefits package and benefits. Makes it possible companies and individuals to electronically received all bank payment slips, facilitating day-to-day operations. Internet Banking: secure, modern, efficient and easy navigation.

15

Created in 2004 to service clients of the Bank who wanted sophisticated products designed according to their individual profiles. Each Fund has its own manager who has deep understanding of the capital markets and is fully dedicated to obtaining the maximum returns possible. In June/2010, net assets totaled approximately R$ 785 million.

Profitability Funds Assets Under Mannagement R$ Million Year Daycoval Renda Fixa 73.8 5.45% % CDI 102.87% Multifunds Daycoval Multifunds 17.7 4.77% % CDI 90.66% Parnamirim 148.5 5.84% % CDI 111.12% Stocks Daycoval Target 22.0

• 0.91%

% Ibovespa

• 0.05%

36 91 138 241 238 643 784 2004 2005 2006 2007 2008 2009 1H10

Assets Under Management – R$ MM

Ratings

Global Scale Long Term BB Short Term B National Scale Long Term brAA- Short Term brA‐2 Stable November 2009 Global Scale Long Term BB Short Term B National Scale Long Term A+ (bra) Short Term F1 (bra) Stable December 2009 Low Risk – Mid-Term Index 11.40 General Rank: march/10 8 July 2010

16

Overview and Strategy Brazilian Credit Market

Agenda

Appendix 2Q10 Results

Page 3 Page 8 Page 34 Page 17

17

18

Key Figures (R$ MM)

June 2010

Total Assets R$ 8,813.5 million Loan Portfolio R$ 4,786.8 million Funding R$ 4,725.5 million Net Income (quarter) R$ 64.2 million Shareholders’ Equity R$ 1,668.0 million ROAE (quarter) 16.0% NIM-A (1) (quarter) 11.7% Efficiency Ratio 24.1% BIS Index 22.3%

(1) New methodology excluding repurchase agreements – tri-party repos outstanding

19

Funding: strong growth of funding with diversification of sources

Funding – R$ Million

62% 65% 68% 60% 59% 20% 17% 11% 22% 15% 18% 18% 21% 18% 26% 2Q09 3Q09 4Q09 1Q10 2Q10

Borrowing and Onlending Total Deposits Foreign Issuances

3,264 4,172 3,509 3,567 4,725

13.3 % 44.8 % Breakdown of Funding Funding (R$ MM) 2Q10 1Q10

• Chg. %

Total Deposits 2,775.0 2,505.7 10.7% Demand Deposits + Other Deposits 164.8 150.5 9.5% Time Deposits 2,552.4 2,246.6 13.6% Interbank Deposits 57.8 108.6

• 46.8%

Foreign Issuances 712.1 902.8

• 21.1%

Borrowing and Onlending 1,238.4 763.4 62.2% Total 4,725.5 4,171.9 13.3% Total Deposits Breakdown – R$ 2,775.0 Million

49.0% 20.6%

19.0% 9.2% 2.2% Corporates Individuals Investment Funds Institutional Financial Institutions

20

Foreign Currency Funding demand exceeds expectations with

attractive rates even at times of economic turbulence

Foreign Issuances and Borrowing and Onlending - R$ Million Date of Transaction Maturity Amount (US$ MM) Eurobonds June/2008 June/2010  125 Paid Inter-American Investment Corporation (IIC) September/2007 September/2010

(due date of last tranche)

52.5 Eurobonds July/2008 July/2011 100 International Finance Corporation (IFC) December/2007 January/2013

(due date of last tranche)

115 Syndicated Loan (IFC) June/2010 June/2014

(due date of last tranche)

165 Eurobonds March/2010 March/2015 300

76.7% 33.3% 51.8% 33.1% 54.2% 36.5% 23.3% 66.7% 48.2% 66.9% 45.8% 63.5%

2006 2007 2008 2009 1Q10 2Q10

Foreign Issuances Borrowing and Onlending

519.7 645.4 1,515.9 1,127.0 1,666.2 1,950.5

Liquidity: high capitalization and positive gap in duration between credit

and funding operations

Cash Evolution - R$ Million Cash / Total Deposits – % % Loan Portfolio - Outstanding Operations – 2Q10 % Funding - Outstanding Operations – 2Q10

21 31.9% 33.7% 26.7% 6.9% 0.8%

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

Average Term of Loan Portfolio: 400 days

3.5% 18.5% 20.0% 32.3% 24.7% 1.0%

No maturity Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years

Average Term of Funding Portfolio: 561 days

1,511.2 1,708.7 1,372.1 1,833.3 1,581.2 2Q09 3Q09 4Q09 1Q10 2Q10

74.4 73.3 57.6 73.2 57.0 2Q09 3Q09 4Q09 1Q10 2Q10

62.6% 25.9% 11.0% 0.5%

Middle Market + TradeFinance + Avals and Sureties Payroll Auto Loans DCC

Loan Portfolio - R$ Million Breakdown of Loan Portfolio – 2Q10 (*) R$ Million

(*) includes credit assignments Credit assignments

22

Loan Portfolio: robust growth, reaching 31% in past 12 months

3,455 3,611 3,903 4,178 4,707 199 163 130 104 80

2Q09 3Q09 4Q09 1Q10 2Q10

11.8 % 31.0%

3,654 3,744 4,033 4,282

Loan Portfolio (includes Avals and Sureties)

4,787

Average Ticket – Middle Market + Trade Finance – 2Q10 Final Balance R$ Per Volume Per Client

< 500,000 5.9% 61.4% 500,000 to 1 million 6.7% 12.0% 1 to 3 million 21.7% 16.5% 3 to 5 million 13.1% 4.4% 5 to 10 million 19.6% 3.6% > 10 million 33.0% 2.1%

Total 100.0%

Geographic Distribution – Middle Market – 2Q10

Middle Market: growth of 17.3% compared with 1Q10, and increased

share of total portfolio

23

44% 31% 18% 7% Industry Services Commerce Other

57% 14% 13% 8% 8% Southeast South Northeast Mid-West North 1,810 1,905 2,131 2,338 2,715 155 185 189 218 282

2Q09 3Q09 4Q09 1Q10 2Q10

Middle Market + Avals and Sureties Trade Finance

2,556 2,320 2,090 1,965 2,997

17.3 % 52.5 % Middle Market + Trade Finance - R$ Million Sectors Breakdown – Middle Market – 2Q10

Daycred Payroll: INSS and Army continue to drive growth

24

Total Origination – R$ Million Total Origination 2Q10 – R$ 301 MM - % Total Loan Portfolio (*) - R$ Million Total Loan Portfolio 2Q10 – R$ 1,238 MM- %

(*) Includes credit assignments in all of the quarters (R$ 42.0 million in 2Q10)

139 158 203 215 301 2Q09 3Q09 4Q09 1Q10 2Q10

899 957 1,052 1,126 1,238 2Q09 3Q09 4Q09 1Q10 2Q10

37.5% 29.2% 14.0% 8.8% 6.5% 3.3% 0.7%

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

28.1% 44.4% 15.1% 8.3% 3.3% 0.8%

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

9.9 % 37.7 %

Daycred Vehicles: new strategy to grow origination of auto loans

19 18 26 28 37 2Q09 3Q09 4Q09 1Q10 2Q10

Total Origination - R$ Million Total Loan Portfolio (*) – R$ Million

774 706 637 575 524 2Q09 3Q09 4Q09 1Q10 2Q10

Total Loan Portfolio 2Q10 - R$ 524 MM -%

Liquidity of Auto Loans Portfolio - Aug/06 to Mar/10 R$ MM % % Accum.

PMT´s received in advance 372.4

33.9% 34%

PMT´s received on date of maturity 137.1

12.5% 46%

PMT´s received with delay of 30 days 321.6

29.3% 76%

PMT´sreceived with delay of 60 to 120 days 131.1

11.9% 88%

PMT´s received with delay over 120 days 27.7

2.5% 90%

PMT´s overdue 108.1

9.8% 100%

Liquidity of the Auto Loans Portfolio 989.9 90.2% Outstanding PMT´s Total Amount 1,098.0 100.0%

(*) Includes credit assignments in all of the quarters (R$ 38 million in 2Q10)

67.0% 21.0% 12.0%

Small Vehicles Heavy-duty Vehicles Motorcycles

• 32.3%
• 8.8 %

25

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

Bank´s operations 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

26

15.5 21.5 24.0 25.3 27.1 2Q09 3Q09 4Q09 1Q10 2Q10

74.9% 7.1%

Quality of Loan Portfolio (*) : debt recovery remains high in 2Q10

Write-offs - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance (26.4) (29.8) (37.6) (32.3) (26.1) Retail (21.9) (29.7) (34.5) (32.8) (25.7) Total (48.3) (59.5) (72.1) (65.1) (51.8) Write-offs / Total Loan Portfolio (%) 1.5 1.8 2.0 1.7 1.2

(*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

27

Recovered Loans - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 Total 7.1 12.6 7.7 6.1 13.0

Establishment of Provision - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 Middle Market + Trade Finance 41.0 36.8 (4.1) 17.2 12.2 79.7 29.4 Payroll 7.1 6.0 8.5 7.1 7.5 14.1 14.6 Auto Loans 30.5 24.9 12.0 12.8 9.1 59.7 21.9 Direct Credit to Consumers 0.5 0.5 0.6 0.7 0.7 0.8 1.4 Total 79.1 68.2 17.0 37.8 29.5 154.3 67.3

28

Past due operations > 60 days - R$MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance 120.4 123.1 66.8 44.2 38.3 Payroll 6.5 6.2 6.8 6.3 6.6 Auto Loans 25.7 25.3 21.4 17.3 14.0 DCC 0.5 0.6 0.9 1.1 1.3 Total 153.1 155.2 95.9 68.9 60.2

Overdue Loans (*) - R$ MM - significant fall in past-due loans

Past due operations > 14 days - R$MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance 183.1 148.9 86.1 63.7 57.8 Payroll 10.3 9.5 10.6 9.2 9.3 Auto Loans 37.8 36.8 32.2 27.5 22.4 DCC 0.7 1.0 1.2 1.5 1.7 Total 231.9 196.2 130.1 101.9 91.2

(*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

29

Credit Portfolio Quality (*) – Required Provision

June/2010

Rating Required Banco Daycoval - R$ MM Provision Loans % Provision

AA 0.0% 117.3 2.6%

• A

0.5% 1,985.7 44.4% 9.9 B 1.0% 1,896.2 42.4% 19.0 C 3.0% 169.1 3.8% 5.1 D 10.0% 56.3 1.3% 5.6 E 30.0% 50.1 1.1% 15.0 F 50.0% 33.4 0.7% 16.7 G 70.0% 14.7 0.3% 10.3 H 100.0% 71.7 1.6% 71.7 Subtotal 4,394.5 98.2% 153.3 Credit Assignments 80.2 1.8% 0.6 Total 4,474.7 100.0% 153.9 Total Provision / Loans 3.4%

(*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

Efficiency Ratio: down 3.2 p.p in 2Q10, evidencing profitability of

• perations

2Q10 1Q10

• Chg. %

2Q09

• Chg. %

1H10 1H09

• Chg. %

Personnel Expenses (21.8) (21.4) 1.7% (15.5) 40.6% (43.2) (30.7) 40.8% Other Administrative Expenses (18.3) (17.4) 5.4% (17.2) 6.7% (35.7) (32.6) 9.3% Subtotal (40.1) (38.8) 3.4% (32.7) 22.8% (78.9) (63.3) 24.5% Payroll (3.6) (4.9)

• 26.8%

(6.0)

• 40.2%

(8.5) (12.6)

• 32.6%

Auto Loan (2.5) (2.8)

• 10.7%

(4.8) 47.9% (5.3) (10.2)

• 48.5%

DCC (0.4) (0.3) 33.3% (0.3) 33.3% (0.7) (0.5) n.a. Comission Expenses (total)(1) (6.5) (8.0)

• 18.5%

(11.1)

• 41.3%

(14.5) (23.3)

• 37.6%

Total (46.6) (46.8)

• 0.4%

(43.8) 6.5% (93.4) (86.6) 7.7%

Efficiency Ratio - %

30

22.7 27.3 24.1 22.2 25.6 28.0 23.8 24.2 28.0 24.2 2Q09 1Q10 2Q10 1H09 1H10

Quartely Last 12 months

Profitability: net income up 17.4% and ROAE rises to 16%

Return on Average Equity (ROAE) - % Net Income - R$ Million Net Interest Margin (NIM) - %

31 38.5 42.0 82.5 54.6 64.2 86.6 118.8 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 9.8 10.7 21.4 13.6 16.0 10.9 14.5 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 13.0 12.2 13.0 10.6 10.1 12.6 10.2 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

Net Interest Margin (NIM-A) (1) - %

13.6 12.4 13.9 11.3 11.7 13.6 11.3 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

(1) New methodology excluding repurchase agreements – tri-party repos outstanding.

1.9 2.0 2.1 2.2 2.6

2Q09 3Q09 4Q09 1Q10 2Q10

Capital Structure: leverage remains low despite fall in Basel ratio

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

1,631.1 1,646.3 1,692.7 1,723.6 1,668.0 2Q09 3Q09 4Q09 1Q10 2Q10 30.5 29.3 28.6 27.2 22.3 2Q09 3Q09 4Q09 1Q10 2Q10

(*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

32

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

33

Overview and Strategy Brazilian Credit Market

Agenda

Appendix 2Q10 Results

Page 3 Page 8 Page 34 Page 17

34

Daycoval’s Financial Highlights

6,557 7,199 7,972 8,085 6,8316,728 6,196 6,177 7,061 7,633 8,814

4.5 4.2 3.6 2.5 1.2 2.9 2.5 2.8 5.3 3.3 3.2 2 4 6 8 10 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Total Assets ROAA

62.2 70.2 62.5 47.1 20.4 48.0 38.5 42.0 82.5 54.6 64.2 17.1 19.4 16.7 15.6 9.4 12.3 9.8 10.7 21.4 13.6

16.0

5 10 15 20 25 30 10 20 30 40 50 60 70 80 90 100 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Net Income ROAE

35.8 33.1 25.6 25.6 28.2 30.1 30.5 29.3 28.6 27.2 22.3 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 12.7 12.0 10.8 9.8 11.4 12.6 13.0 12.2 13.0 10.6 10.1 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

BIS Ratio (%) Total Assets (R$ MM) & ROAA (%) Net Income(R$ mn) & ROAE (%) Net Interest Margin (NIM) %

35

Serasa – June 2010

Breakdown of the Middle Market Credit Portfolio by Sectors

COMMERCE 18.4% INDUSTRY 43.5% Commerce of Pharmacy products 1.3% Sugar and Alcohol Mill 5.6% Commerce of Imp/Exp of Soyvean 0.9% Ind of Small Vehicles 5.0% Wholesale Trading of Foodstuffs and Cereals 1.2%

• Ind. of Clothes in General

1.4% Commerce of Agricultural Products 1.9%

• Ind. of Electronic Products in General

4.0% Commerce of Clothes in General 1.1%

• Ind. of Flooring and Tiles

1.4% Other 12.0%

• Ind. of Fuel and Lubricant

1.0%

• Ind. of Plastics

1.0%

• Ind. of Meat

1.0% Other 26.1% SERVICE 31.3% FINANCIAL 2.2% Transportation 4.7% Electricity Distribution 1.9% PRIMARY 1.4% Holding 3.1% Mixed Cooperative 1.6% INDIVIDUALS 2.8% Real Estate and Home Builders 1.5% Medical Services 1.6% THIRD SECTOR 0.4% Contractor 1.7%

36

Middle Market: Assets Geographic Distribution

June 2010

37

São Paulo 46.7% Rio de Janeiro 3.0% Amazonas 6.0% Mato Grosso 3.0% Santa Catarina 5.1% Ceará 2.2% Pernambuco 4.9% Pará 1.9% Paraná 4.6% Bahia 1.6% Rio Grande do Sul 4.5% Distrito Federal 0.8% Minas Gerais 4.5% Sergipe 0.6% Goiás 3.6% Rondônia 0.3% Alagoas 3.3% Paraíba 0.2% Espírito Santo 3.0% Other States 0.5%

Balance Sheet

June 2010

Amounts in R$’000

38

Income Statement

Amounts in R$’000

39

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”.

2Q10 Institutional Presentation

40