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

Institutional Presentation December 2010

Agenda Page 3 Brazilian Credit Market Foreign Currency Funding Page 16 Key Figures Page 5 Liquidity Page 17 Corporate Governance and Financial Page 6 System Ranking Page 18 Asset Management Distribution Page 7 Page 19 Quality of Loan Portfolio Loan Credit Portfolio Page 9 Page 23 Efficiency Ratio Middle Market Portfolio Page 11 Capital Structure Page 24 Daycred - Payroll Page 12 Page 25 Profitability Daycred – Auto Loans Page 13 Page 26 Peers Daycred – DCC Page 14 Funding Page 15 2

Overview of the Brazilian Credit Market Credit Evolution in Brazil (% of GDP) 46.6 45.0 41.3 36.6 34.8 32.0 30.7 28.8 28.1 27.9 26.8 26.4 24.9 24.7 24.5 24.0 22.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Nov/10 Total credit operations of the financial system - R$Billion Loan to Companies up to R$ 100 million – R$ Billion 1,704.0 1414.3 499.5 1227.3 423.9 395.9 72% 935.9 315.8 70% 71% 732.6 250.8 211.3 70% 607.0 498.7 69% 70% 29% 30% 28% 30% 31% 30% 2005 2006 2007 2008 2009 Nov-10 2004 2005 2006 2007 2008 2009 Nov-10 Up R$ 100.000 From R$ 100.000 to R$ 10 million 3 Source: Brazil Central Bank

Brazilian Credit Market vs. Banco Daycoval Financial System Total Credit Operations vs. Banco Daycoval (% p.a.) Total Loan Portfolio - R$ Million CAGR 04-10: 45.3% 6,222 112% 4,033 4,020 3,574 67% 53% 51% 40% 1,680 31% 28% 22% 19% 21% 17% 993 15% 15% 661 -1% 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Banco Santos Crisis / Brazilian Credit Volume Daycoval Loan Portfolio World Crisis Beginning of Payroll IPO Loans Branch Expansion Program 4

Key Figures 4Q10 Total Assets R$ 8,938.5 million Loan Portfolio R$ 6,222.5 million Funding R$ 5,241.1 million Shareholders ’ Equity R$ 1,777.8 million Basel Index 19.9% 4Q10 2010 Net Income R$ 70.9 million R$ 274.7 million ROAE 17.0% 16.0% ROAA 3.1% 3.3% NIM-A (*) 12.1% 11.9% Efficiency Ratio 27.8% 24.6% (*) New methodology excluding repurchase agreements – tri-party repos outstanding 5

Corporate Governance and Financial System Ranking Board of Executive Officers Board of Directors Years on Chairman Name / Title Daycoval Representative of the Controlling Sasson Dayan, CEO 42 Shareholder Sasson Dayan Morris Dayan, Executive and 18 Investor Relations Officer Salim Dayan, Executive Officer 19 Carlos Moche Dayan, Executive Officer 17 Representative of the Independent Independent Member Regina Maciel Nogueira, Officer 20 Controlling Shareholder Member Nilo Cavarzan, Officer 6 Gustavo Henrique de Rony Dayan Peter M. Yu Barroso Franco Albert Rouben, Officer 11 Rating Ranking Daycoval Ranking Daycoval (*) Private National Banks Net Income 12º Global Scale Global Scale Low Risk – Mid-Term Long Term BB Long Term BB Shareholders ’ Equity 16º Index 11.40 Short Term B Short Term B Total Deposits 19º General Rank: National Scale National Scale Março/10 Total Assets 23º Long Term brAA- Long Term A+ (bra) 8 Short Term brA‐1 Short Term F1 (bra) Source: Brazil Central Bank – September 2010 Positive Stable July 2010 December 2010 November 2010 6

More than 100 points of distribution 30 Branches SÃO PAULO – SP HD Av. Paulista SP - ALPHAVILLE RJ - RIO DE JANEIRO PR - LONDRINA SP - BOM RETIRO AL - MACEIÓ RS - CAXIAS DO SUL SP - BRÁS BA - SALVADOR SC - FLORIANÓPOLIS SP - CAMPINAS CE - FORTALEZA DF - BRASÍLIA SP - FARIA LIMA PE - BOA VIAGEM GO - GOIÂNIA SP - GUARULHOS PE - RECIFE MS - CAMPO GRANDE SP - RIBEIRÃO PRETO RN - NATAL MT - CUIABÁ SP - SÃO BERNARDO RS - PORTO ALEGRE AM - MANAUS ES - VITÓRIA SE- ARACAJU PA - BELÉM MG - BELO HORIZONTE PR - CURITIBA IFP Promotora de 11 Daypag Offices Serviços de 3 exchang in São in major cities of São Intermediação Paulo and 2 Paulo State: Osasco, Financeira Ltda, is a correspondent Barueri, Guarulhos, financial intermediation foreign exchange Americana, Atibaia, company created to Campinas, Ribeirão desks distributed promote operations for Preto, Mogi Guaçu e strategically in São individuals. It has 57 Detran São Paulo Paulo and Rio de stores in operation Janeiro throughout Brazil. 7

Daycoval’s Market Capital and Ownership Breakdown Stock Performance – December 2010 Ownership Breakdown – December 2010 Daycoval Holding DAYC4 (R$) 4Q10 3Q10 Chg. % 2010 2009 Chg. % Financeira S/A Closing Quotation 12.95 11.14 16.2% 12.95 9.78 32.4% 25.4% Controlling High for the quater 13.05 11.14 17.1% 13.05 9.80 33.2% Shareholders (Family) Average for the quarter 12.13 9.55 27.0% 10.16 7.18 41.5% 65.8% + Daycoval Expert 0.4% 8.4% Low for the quarter 11.00 8.30 32.5% 7.90 3.90 102.6% Treasury Book Value 8.30 8.10 2.5% 8.30 7.90 5.1% Market Value (R$)Million 2,801.40 2,409.86 16.2% 2,801.40 2,115.65 32.4% Free-Float Total Shares: 216.3 million shares. Free Float: 54.9 million shares. First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 18 local and international brokerage firms. 8

Loan Portfolio : robust growth of 53.2% during the last 12 months Middle Direct Credit As of December , 2010 Payroll Loans Total Auto Loans Market To Consumers Loan Portfolio – R$ Million % of Credit Portfolio 67.1% 23.7% 8.5% 0.7% 100.0% 53.2 % Portfolio (R$ mn) 4,176.8 1,476.3 526.8 42.6 6,222.5 12.2% 6,222 15.2% vs 3Q10 6.7% vs 3Q10 5.1% vs 3Q10 20.7% vs 3Q10 12.2% vs 3Q10 Growth 191 5,546 77.8% vs 4Q09 40.4% vs 4Q09 -17.4% vs 4Q09 77.5% vs 4Q09 53.2% vs 4Q09 4,845 61 4,314 80 4,062 Working Loans to INSS, 6,031 104 5,485 Capital, Loans to Small Armed Forces, 4,765 130 Vehicles, Courts, Private Receivables In-store 4,210 Products Companies, 3,932 financing, Motorcycles, financing Federal Gov, trade finance, Heavy-duty Municipalities, BNDES sureties Vehicles among other & avals 4Q09 1Q10 2Q10 3Q10 4Q10 Loan Portfolio Credit Assignments 9

Loan Portfolio : growth in the Middle Market portfolio over the last 12 months Breakdown Loan Portfolio (*) 4Q09 Breakdown Loan Portfolio (*) 4Q10 0.6% 0.7% 8.5% Middle Market Middle Market 15.7% Payroll Loans Payroll Loans 23.7% 57.8% Auto Loans 67.1% 25.9% Auto Loans DCC DCC Breakdown Portfolio Middle Market 4Q10 (million) Working Capital R$ 2,033.3 48.7% Guaranteed Account R$ 1,080.9 25.9% Trade Finance R$ 332.5 8.0% BNDES R$ 266.4 6.4% Avals and Sureties R$ 249.4 6.0% Receivables Purchase R$ 214.3 5.0% TOTAL R$ 4,176.8 100.0% (*)Includes Credit Assignments 10

Middle Market : significant increase of 77.8% over the last 12 months, currently representing 67.1% of the total portfolio Middle Market Portfolio – R$ Million Guarantees Breakdown – 4Q10 Receivables 4,177 7.0% 5.3% 3,627 Vehicles / Real Estate 11.6% 3,055 Agricultural Products 55.3% 2,587 5.7% 2,349 Financial Investments Equipments / Foreign 15.1% goods 4Q09 1Q10 2Q10 3Q10 4Q10 Other Sectors Breakdown – Middle Market – 4Q10 Geographic Distribution – Middle Market – 4Q10 6% 10% Southeast 5% Industry South 18% Services 15% 42% 57% Northeast Commerce Mid-West 13% 34% Other North 11

Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) – R$ Million Total Loan Portfolio (*) – R$ 1,476 mn – 4Q10 - % INSS 1,476 5.3% 2.6% 0.5% 1,383 1,238 Army 8.1% 1,126 1,052 State Government 38.1% 12.5% Law Courts and Legislative Bodies Municipalities 4Q09 1Q10 2Q10 3Q10 4Q10 32.9% Other (*) Includes credit assignments in all of the quarters (R$ 167.9 million in 4Q10) Private Total Origination – R$ 386 mn – 4Q10- % Total Origination – R$ Million INSS 7.6% 0.4% 1.3% 416 386 Army 8.1% 301 State Government 39.6% 215 203 Law Courts and Legislative Bodies 43.0% Municipalities Private + Other 4Q09 1Q10 2Q10 3Q10 4Q10 12

Daycred Auto Loans: reverse contraction in this portfolio Total Loan Portfolio (*) – R$ Million Total Origination – R$ Million 72 59 637 37 575 527 524 28 26 501 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 (*) Includes credit assignments in all of the quarters (R$ 23.5 million in 4Q10) Liquidity of Auto Loans Portfolio 4Q10 – R$ Million Past due more Ratio Liquidity Liquidity Receiving Paid than 90 days Total Loan Loan Portfolio 1,355 1,215 140 10.3% Old Loan 1,249 1,115 134 10.7% New Loan 88 84 4 4.2% 13

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, offering the end consumer greater purchasing facilities. Total Loan Portfolio - R$ Million 42.6 35.3 27.1 25.3 24.0 4Q09 1Q10 2Q10 3Q10 4Q10 14