HSBC J.P. Morgan Standard Chartered Bank - bicbanco

small-sized companies (including discounted trade receivables). Sul Financeira has two subsidiaries, Sul Financeira
Promotora de Vendas Ltda. and Sul Financeira Cobrança Ltda., and 72 employees. Sul Financeira has negative
shareholders’ equity in an amount of R$100.9 million. The purchase agreement provides that the Bank will acquire
Sul Financeira for R$1.00. The Central Bank issued a conditional approval for the acquisition on April 12, 2010.
The approval is conditioned on the Bank capitalizing Sul Financeira in the amount of R$150 million. The Bank is
working to implement its risk assessment policies and procedures at Sul Financeira so that it is able to capitalize Sul
Financeira as permitted by applicable regulations and commence operations. The Bank will not acquire the portfolio
of Sul Financeira pursuant to the terms of the purchase agreement.
The following table shows the Bank’s main consolidated financial and operational information as of for the
periods indicated:
As of and for the Year ended
December 31,
2009 2008 2007
CAGR
2007/2009
(%)
(In R$ millions, except as otherwise indicated)
Available cash (1) ................................................................................. 1,460.0 1,964.3 591.2 57.1
Total credit portfolio .......................................................................... 9,119.2 8,066.4 7,617.9 9.4
Total assets ......................................................................................... 11,399.7 12,007.3 10,992.1 1.8
Total deposits ..................................................................................... 5,811.5 4,444.1 4,412.3 14.8
Total fund raising (2) ............................................................................ 8,661.1 8,829.3 6,936.3 11.7
Reference shareholders’ equity (3) ....................................................... 1,961.0 2,006.2 1,770.0 5.3
Shareholders’ equity (4) ........................................................................ 1,766.4 1,685.1 1,563.4 6.3
Net profit ............................................................................................ 318.2 320.5 181.9 32.3
Return on average total assets (%) (5) .................................................. 2.7 2.8 2.1 —
Return on average shareholders’ equity(%) (6) .................................... 18.4 19.7 18.7 —
Credit coverage ratio (7) ....................................................................... 2.6 2.5 2.5 —
Credit portfolio write-off (8) ................................................................. 1.9 1.3 1.6 —
Basel Accord ratio (%)....................................................................... 16.0 19.3 19.4 —
Efficiency ratio (%) (9) ......................................................................... 38.0 38.6 44.2 —
Number of employees ........................................................................ 747 819 823 (4.7)
Total credit portfolio per employee (10) ............................................... 12.2 9.8 9.3 14.5
______________________
Notes:
(1) Corresponds to the sum of cash and cash equivalents, open-market investments in interbank deposits (except deposits for coverage of swap
operations) and own portfolio – trading and available for sale.
(2) Corresponds to the sum of (i) total deposits, (ii) funds and issue of securities accepted, (iii) borrowings, (iv) on-lending from Brazil and
abroad, (v) FIDC, and (vi) subordinated debt.
(3) Tier I capital, added to Tier II capital, as defined by the Central Bank.
(4) The shareholders’ equity as calculated by Brazilian GAAP.
(5) Net income as a percentage of average total assets of December of the prior year and final month of the current year. In relation to 2007,
the average of total assets was calculated according to the average of the final and monthly total assets for the year starting December 2006
and ending December 2007, due to the capital increase of R$400 million approved in May 2007 and the IPO in October 2007 which
totalled R$492.9 million.
(6) Net income as a percentage of average shareholder’s equity of December of the prior year and final month of the current year. In relation
to 2007, the average of shareholders’ equity was calculated according to the average of the final and monthly shareholders’ equity for the
year starting December 2006 and ending December 2007, due to the capital increase of R$400 million approved in May 2007 and the IPO
in October 2007 which totalled R$492.9 million.
(7) Corresponds to allowance for loan losses as a percentage of the credit portfolio referring to overdue loans of more than 15 days, pursuant
to the explanatory note 9 of the Bank’s financial statements.
(8) Corresponds to the write-offs for the relevant period, according to the explanatory note 9 of the Bank’s financial statements, expressed as
an average percentage of the credit portfolio, which is the average in the period.
(9) Efficiency ratio is defined as the sum of “personnel expenses,” “other administrative expenses” and “taxes” divided by the sum of gross
profit from financial operations plus “service fee income.”
(10) Total credit assignment in R$ is divided by the number of employees.
AMR-248898-v2
- 2 -
95-40469277