4 q11 investor presentation

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Investor Presentation 4Q11

2

. Who we are

. Business Segments

. Competitive Environment

. Financial Highlights

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89%

86%84%

84%

86%

85%

11%

11%

12%

14%

14%

15%

2006 2007 2008 2009 2010 2011

Middle Market

Corporate

11,588

8,509

6,485

4,992

2,911

12,85511%

(BRL Million)

3

Focus on Companies

3

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

Credit Portfolio Including Guarantees Issued

4

Ownership Structure

4

ABC Brasil

Local Management 11.8%

Voting Capital Total Capital

Free-float 34.0%

Local Management and Directors

57.9% ABC

88.2% ABC

8.1%

Arab Banking Corporation (Parent Company)

59.4% Central Bank of Libya

29.7% Kuwait

Investment Authority

Free-float 10.9%

International bank headquartered in Bahrain

Local brAA+ Aa1.Br AA-

Global BBB- Baa3 BB+Investment

GradeInvestment

Grade

5

Geographical Presence and 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 23 cities Offices

São Paulo Capital São Paulo

São Paulo Countryside

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

South

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

Rio de Janeiro Rio de Janeiro

Minas Gerais Belo Horizonte and Uberlândia

Midwest Brasília, Goiânia, Campo Grande and Cuiabá

Note: Cities in bold indicate new offices opened in 2011.

Presence in 23 cities and 9 new offices opened in 2011

RO

AC

AM

RR

PA

AP

MA

PI

CE

BA

MG

ES

RJ SP

PR

SC

RS

MS

MT

GO

DF

RN PB

PE

AL

SE

TO

ABC Brasil Offices

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. Who we are

. Business Segments



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Business Segments

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Loan Portfolio

Corporate Companies with annual revenues

over BRL 250 million

Loan Portfolio

Middle Market Companies with annual revenues

from BRL 30 to 250 million

Total Portfolio Total Portfolio

21.8%

5.9%

-4.9%

-3.2%

22.7%

6.2%

(BRL Million)

9.2%

2.1%

10,023.8 10,314.3 10,522.1 10,729.3 10,949.8

4Q10 1Q11 2Q11 3Q11 4Q11

1,564.6 1,611.3 1,712.6 1,799.7 1,905.0

4Q10 1Q11 2Q11 3Q11 4Q11

6,109.0 5,905.2 5,788.7 5,997.3 5,807.6

4Q10 1Q11 2Q11 3Q11 4Q11

1,520.4 1,573.9 1,680.0 1,756.6 1,866.3

4Q10 1Q11 2Q11 3Q11 4Q11

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Segments Highlights

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Minas Gerais / Goiás

South

Rio de Janeiro

São Paulo Countryside

São Paulo Capital

Corporate Middle Market

Average Ticket

(BRL Million)

Average Tenor

(days)

Total Number

of Clients

Clients with

Credit Exposure

Dec/10 Sep/11 Dec/11 Dec/10 Sep/11 Dec/11

Credit Portfolio

(BRL Million) 1,565 1,800 1,905 10,024 10,729 10,950

728 738 717

542 520 518

18.5 20.6 21.1

390 362 364

898 1,104 1,162

690 839 892

2.3 2.1 2.1

246 225 211

56% 55% 55%

20% 19% 19%

14% 16% 16% 10% 10% 10%

Dec/10 Sep/11 Dec/11

44% 42% 40%

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

31% 28% 30% 5% 9% 9%

Dec/10 Sep/11 Dec/11

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. Who we are

. Business Segments



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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

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BRL million

(BRL Million)

Annual Revenues Main Competitors

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. Who we are

. Business Segments



12 12

Credit Portfolio Quality

Past Due above 90 days (% of loan portfolio)

0.66%

1.27%0.95%

1.84%

2.28%

1.04%0.69%

0.60% 0.71%0.39% 0.40% 0.50%

0.21%0.34%

0.64%

1.18%

0.65%0.57%

0.11% 0.15% 0.21%

0.12% 0.10% 0.38%

0.98%

0.52% 0.51%0.05% 0.08% 0.11%

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

Middle

Total

Corporate

2.30% 2.24%

4.03%

5.54%

3.65%3.33% 3.60% 3.45%

3.00%

1.03% 1.05%

2.23%2.98%

2.25%1.92% 1.62% 1.69% 1.73%

0.79% 0.74%1.80%

2.29%1.83%

1.13% 1.18%1.33%


Middle

Total

Corporate

Loan Loss Reserve (% of loan portfolio)

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Credit Portfolio Quality

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

0.08%

0.26%0.13%

0.75%0.69%

0.21%

0.50%

0.27%

0.47%

0.32%

0.77%

0.57%

0.04%

0.11%0.04% 0.04%

0.16%

0.28%

0.09%

0.32%

0.12%0.16%0.08% 0.06%

0.24%0.15%

0.03%0.08%

0.01% 0.00%0.13%

0.04%

0.27%

0.00%0.07% 0.03% -0.01%0.05%

0.02%


Middle

Total

Corporate

0.5% 0.6% 0.7% 0.6%

2.4%

4.1%

6.1%5.0%

4.1%3.1% 3.0%

2.4% 2.1% 2.0% 1.9% 2.0% 2.4%


D-H

Write Off in the quarter (% of loan portfolio)

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Funding

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(BRL Million)

4Q10 1Q11 2Q11 3Q11 4Q11

1,723.3 1,792.5 1,938.8 2,156.3 1,647.3

3,314.7 3,271.6 3,525.7 3,798.3 4,045.5

2,386.7 2,387.7 2,240.9 2,317.3 2,181.5

1,836.3 1,872.9 1,886.1 2,065.7 2,085.3

9,261.0 9,324.7 9,591.5 10,337.6 9,959.6 Total

14% 15% 15% 14% 15%

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

Shareholders´Equity

26% 26% 23% 22% 22%BNDES

19% 19% 20% 21% 16% International

11% 11% 10% 12% 10%

9% 9% 10%10% 11%

6% 7% 7%7% 10%

10% 8% 10%8% 10%

Individual Investors

Financial Institutions

Institutional Investors

Corporate Investors

36% 35% 37%37% 41%

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Basel Index & Shareholders´ Equity

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Capital Adequacy (BRL million) 4Q11 3Q11 4Q10Chg(%)/pp

4Q11/3Q11

Chg(%)/pp

4Q11/4Q10

Capital 2,072.5 2,025.7 1,841.8 2.3% 12.5%

Mininum Capital Required 1,457.9 1,410.9 1,263.4 3.3% 15.4%

Capital Surplus 614.5 614.9 578.4 -0.1% 6.2%

Basel Index 15.6% 15.8% 16.0% -0.2 -0.4

Tier I (Core Capital) 11.3% 11.4% 11.7% -0.1 -0.4

Tier II 4.3% 4.4% 4.3% -0.1 0.0

11.7% 11.6% 11.6% 11.4% 11.3%

4.3% 4.1% 3.8% 4.4% 4.3%

4Q10 1Q11 2Q11 3Q11 4Q11

Tier II

Tier I (Core Capital)

Shareholders' Equity(BRL Million)

16.0% 15.7% 15.4% 15.8% 15.6%

1,347.9 1,384.3

1,424.2 1,460.2

1,499.6

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Financial Margin

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NIM (% p.a.)

(BRL million) 4Q11 3Q11 Chg (%) 4Q10 Chg (%) 2011 2010 Chg (%)

Net Interest Income before Loan Loss Provision (LLP)143.8 146.8 -2.0% 126.4 13.8% 559.5 465.1 20.3%

Financial Margin w ith Clients 131.1 137.2 -4.4% 113.3 15.7% 508.8 421.5 20.7%

Financial Margin w ith Market 12.7 9.6 32.2% 13.1 -3.0% 50.7 43.6 16.3%

Loan Loss Provision (LLP) (13.8) (24.6) -43.8% (12.7) 8.6% (52.4) (44.4) 18.0%

Managerial Financial Margin 130.0 122.2 6.4% 113.6 14.4% 507.0 420.6 20.5%

5.4% 5.6% 5.5% 5.7% 5.5% 5.4% 5.6%

4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011

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Income from Services

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Banking Service Fees (BRL million) 4Q11 3Q11 Chg (%) 4Q10 Chg (%) 2011 2010 Chg (%)

Guarantees Issued 23.8 23.5 1.6% 19.6 21.7% 90.7 68.4 32.6%

Capital Markets and M&A Fees 7.2 2.4 206.9% 8.2 -11.6% 14.4 12.7 13.8%

Banking Tariffs 3.8 4.2 -10.8% 6.9 -45.3% 20.3 27.1 -25.2%

Total 34.8 30.0 15.9% 34.7 0.5% 125.4 108.1 15.9%

7.49.9

12.4 14.1 14.9 16.5 17.4 19.6 20.8 22.6 23.5 23.8

2.63.1

3.75.1

7.18.1 4.9

6.96.8 5.4 4.2 3.8

0.3

0.5

0.0

0.62.4

1.6 0.5

8.22.0 2.8 2.4

7.2

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

Capital Markets and M&A Fees

Banking Tariffs

Guarantees Issued(BRL million)

14.0%14.4%15.9%17.3%20.5%20.1%

17.6%

23.8%19.7%20.3%

18.3%20.6%

Income from ServicesTotal of Revenues

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Capital Markets and M&A

BRL 100,000,000

Debentures

Coordinator

December 2011

BRL 15,000,000

Debentures

Coordinator

July 2011

BRL 484,200,000

Promissory Notes

Coordinator

June 2011

BRL 65,000,000

Promissory Notes

Coordinator

April 2011

BRL 40,000,000

Promissory Notes

Coordinator

February 2011

BRL 20,000,000

Debentures

Coordinator

November 2011

BRL 450,000,000

Promissory Notes

Coordinator

December 2011

BRL 10,000,000

Promissory Notes

Coordinator

December 2011

BRL 60,000,000

Debentures

Coordinator

October 2011

BRL 156,000,000

Joint Venture

Financial Advisor

July 2011

2011 2010

# of Transactions 20 24

Revenues (BRL million) 14.4 12.7

Sale of Grupo Melhoramentos’ stake

in Lafarge Brasil

Financial Advisor

February 2011

Corporate Spin-off of Companhia Agrícola Caiuá

Financial Advisor

December 2011

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Expenses

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Efficiency Ratio

Expenses (BRL million) 4Q11 3Q11 Chg (%) 4Q10 Chg (%) 2011 2010 Chg (%)

Personnel (32.3) (28.2) 14.6% (25.7) 25.8% (114.0) (92.1) 23.8%

Other administrativ e ex penses (16.0) (16.6) -3.7% (16.1) -0.4% (64.9) (57.7) 12.5%

Profit Sharing (18.0) (17.0) 6.3% (19.2) -6.2% (69.4) (65.1) 6.6%

Total (66.3) (61.8) 7.4% (61.0) 8.8% (248.3) (214.9) 15.5%

37.9% 37.7% 38.8% 36.4% 37.9% 37.6% 37.7%

4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011

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Profitability

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

54.0 56.7 60.2 58.5 60.6

202.2236.0

4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011

16.3% 16.6% 17.2% 16.2% 16.4% 15.8% 16.6%

4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011

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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

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Investor Relations

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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

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Appendix – Controlling Shareholder

International bank headquartered in Bahrain

Listed in the Bahrain stock exchange

Present in 21 countries

Main Shareholders

Central Bank of Libya 59.4%

Kuwait Investment Authority 29.7%

Free-float 10.9%

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Total Assets: US$ 25.0 Bn

Shareholders’ Equity: US$ 3.6 Bn

BIS Ratio of 24.3% | Core capital (Tier I) of 19.2%

64% of deposits in liquid assets

(As of Dec 31st, 2011)

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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

4 q11 investor presentation