HSBC J.P. Morgan Standard Chartered Bank - bicbanco

Average
balance
Year ended December 31.
2008 2007
Income
(expense)
Average
rate (%) (1)
Average
balance
Income
(expense)
Average
rate (%) (1)
(In R$ millions. except for percentages)
Revenue-generating assets
Loans (2) ....................................................................... 7,460.1 1,788.8 24.0% 4,739.6 1,002.10 21.1
Leasing operations ...................................................... 57.1 12.7 22.3% 272.9 2.8 1
Marketable securities transactions and derivative
financial instruments (3) ............................................ 1,661.1 289.7 17.4% 2,215.3 70.1 3.2
Foreign exchange transactions .................................... 728.8 76.3 10.5% 862.6 67.1 7.8
Mandatory investments ............................................... 344.8 26.8 7.8% 227.3 16.5 7.3
Total revenue-generating assets ........................... 10,251.8 2,194.3 21.4% 8,317.7 1,158.6 13.9
Expense-generating liabilities
Funding operations .....................................................
Time deposits .............................................................. 4,647.87 (573.2) (12.3)% 2,953.6 (333.5) (11.2)
Money market funding ................................................ 312.85 (29.8) (9.5)% 1,443.0 (143) (9.9)
Savings deposits.......................................................... 178.95 (2.9) (1.6)% 161.9 (2.3) (1.4)
Interbank deposits ....................................................... 244.93 (31.7) (12.9)% 152.8 (18.4) (12.1)
Funds from acceptance and issuance of securities ...... 818.12 (108.7) (13.3)% 538.1 (3.2) (0.6)
Total funding ......................................................... 6,202.7 (746.3) (13.3)% 5,249.4 (500.4) (9.5)
Loans and on-lending
Foreign loans (4) ........................................................... 2,085.3 (412.1) (19.8)% 1,398.0 39.7 2.8
Domestic on-lending ................................................... 26.1 (2.3) (8.8)% 83.8 (6.5) (7.8)
Total loans and on-lending.................................... 2,111.4 (414.4) (19.6)% 1,481.8 33.2 2.2
Total expense-generating liabilities ............................. 8,323.9 (1,160.7) (13.9)% 6,731.3 (467.3) (6.9)
Gross profit from financial operations (before
provisions) ................................................................. 1,033.6 691.2
______________________
Notes:
(1) Average rates include interest income or expenses. capital gains or losses and mark to market of marketable securities. assets and
liabilities.
(2) Average balances refer to loans and other receivables included as part of the Bank’s credit portfolio. and profit includes financial income
from both loans and other receivables.
(3) Average balance refers to transactions involving marketable securities and derivative financial instruments and interbank deposits.
(4) In order to better reflect their effects on average rates of income and expenses generated. the amounts regarding foreign exchange
variations of R$328.9 million in December 31. 2008 and R$189.9 million in December 31. 2007 have been reallocated among foreign
exchange earnings and losses and expenses on foreign borrowings.
Variations on Interest Revenue and Expenses—Analysis of Volume and Rates
The tables below set forth the variations of the Bank’s consolidated revenues in view of the fluctuations of
volumes and interest rates, for the periods indicated. The fluctuations of volumes and interest rates were calculated
based on (i) changes in average balances in the period and (ii) changes in nominal interest rates on revenuegenerating
assets and expense-generating liabilities. The net variation results from the sum of these variations of
volume and interest rate:
December 31, 2008 / 2007
Increase (decrease) due to changes in:
Average
Volume Average Rate Net Variation
(In R$ millions)
Revenue-generating assets
Loans (1) ................................................................................................................................ 652.3 134.4 786.7
Leasing operations (2) ............................................................................................................ (48.2) 58.0 9.9
Marketable securities transactions and derivative financial instruments ........................... (96.7) 316.3 219.6
Foreign exchange transactions ............................................................................................ (14.0) 23.2 9.2
Mandatory investments ....................................................................................................... 9.1 1.1 10.3
Total revenue-generating assets ....................................................................................... 502.8 533.0 1,035.8
Expense-generating liabilities
Time deposits ...................................................................................................................... (209.0) (30.8) (239.7)
Money-market funding ........................................................................................................ 107.5 5.6 113.2
Savings deposits .................................................................................................................. (0.3) (0.3) (0.6)
Interbank deposits ............................................................................................................... (11.9) (1.4) (13.3)
AMR-248898-v2
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