Banco Santander (Brasil) S.A. September, 2010 2 Disclosure This presentation was prepared by Banco Santander (Brasil) S.A. It is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy any security. It may contain forecasts about future events. These predictions/estimates evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of the Company may differ from current expectations. Past performance and/or these predictions are not guarantee of future performance. The Company is not obliged to update the presentation/such forecasts in light of new events or circumstances. © 2010 by Banco Santander (Brasil) S.A.. All Rights Reserved. 3 Table of Contents Santander – Worldwide Santander – Latin America Santander – Brasil Annexes 4 Grupo Santander is one of the largest financial groups in the world Significant presence in Europe One of the largest banks in the world and America 1H10 (US$ million) Market Capitalization (US$ billion)¹ Assets 1,497,092 ICBC (China) 212,3 China Construction Bank 196,8 Loans 893,184 HSBC 179,9 Shareholder’s equity1 89,620 JPMorgan Chase 157,8 Total managed funds2 1,676,088 Bank of America 136,2 Wells Fargo 134,1 Attributable profit 5,879 Bank of China 127,1 Citigroup 113,2 Santander 103,7 1) Source: Bloomberg - Ranking of 09.08.2010 1. Does not include minority interests. 2. Includes Total Assets, Mutual and Pension Funds and Managed Portfolios. 5 Profits by business areas and segments Profit by Business Areas Profit by Business Segments Wholesale Sovereign Asset Mngt. and Insurance Others Continental 24% Latin 3% Europe 4% America 15% 43% 22% Brazil 17% 72% United Kingdom Commercial Banking 6 Table of Contents Santander – Worldwide Santander – Latin America Santander – Brazil Annexes 7 Santander is present in the main Latin America countries and is the leader financing franchise operating in the region… Latin America represents 37% of Santander’s world results US$ million 1H10 Loans 143,086 Puerto Rico Deposits 156,928 Mutual and Pension Funds¹ 91,752 Mexico Brazil Net Attributable Income 2,856 Colombia Jun/10 Peru Branches 5,757 Employees 86,734 Chile Uruguay Customers (million) 38.8 Argentina 1. Includes Managed Portfolios 8 ... and counts on a significant market share in the countries in which it operates Share Share Clients (MM) Branches¹ Jun-10 Loans Savings² Brazil 23.5 3,588 11.0% 7.9% Mexico 8.8 1,092 13.2% 15.5% Chile 3.2 499 20.3% 18.4% Argentina 2.2 316 10.1% 9.6% Puerto Rico 0.4 130 8.3% 13.5% Colombia 0.4 76 3.0% 2.9% Uruguay 0.3 42 16.6% 17.0% Latin America 38.8 5,757 11.4% 9.1% 1. Includes branches and mini branches. 2. Deposits + Mutual Funds (*) Share of loans and savings of Brazil, Mexico, Chile and Uruguay: data Jun/10. Colombia: data May/10. Argentina: data Apr/10. Puerto Rico: data Mar/10. Peru: information not available. 9 Table of Contents Santander – Worldwide Santander – Latin America Santander – Brazil - Governance/Strategy - Business - Results in IFRS Annexes 10 Corporate Governance The Bank is managed by the Board of Directors and the Executive Board, supported by specialized committees Banco Santander believes that a good corporate governance is a competitive advantage and strategic element supported by two pillars: shareholder rights and transparency In line with the corporate governance best practices, Banco Santander’s units are listed in BM&FBOVESPA and in the NYSE Level 2 of BM&FBOVESPA with 100% of Tag Along Board of Directors 3 Executive Board 3 Board Members of 3 Independent Board Members Grupo Santander Spain Members 11 Franchise Santander is the 3rd largest Brazilian private bank in total assets, with a market share¹ in loans of 11% in the Brazilian banking system Market share 1H10 R$ million Number of branches Jun/2010 Total Country Loans 146,529 Market Share: 12% North: 5% of GDP Funding from Clients² 135,744 Market Share: 5% Total Funding + AUM 245,237 Northeast: 13% of GDP Net Profit 3,529 Market Share: 7% Strong distribution platform… Middle-west: 9% of GDP Market Share: 5% Bank with one of the highest numbers of point of sales in South/Southeast (73% of GDP) Southeast: 57% of GDP Market Share: 15% 2,097 1,491 18,117 Branches Mini ATM’s branches South: 16% of GDP Market Share: 9% +10.5 million account holders³, an increment of 263 thousand account holders in 1H10 Source: The Brazilian Central Bank and IBGE. GDP date: 2007 1. Santander’s market share in total loans of private sector: 16.5% (jun/10) 2. Demand Deposits + Time Deposits + Savings + Debentures + Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA) 3. Current account holders within 30 days, according to Central Bank as of Jun/2010 12 Integration Process - Status 1st and 2nd Stages concluded 3rd Stage Aug/08 Jun/10 Dec/10 1H11 I Senior Management Integrated II Centralized areas integrated . Risk Management, Human Resources, Marketing Auditing financial Control, Compliance, etc. Re-branding IIIIII Wholesale, Private & Asset integrated VI . GB&M, Corporate and Middle VIII Re-branding IV Credit card system V ATMs integrated IX Unified Customer Services . ATMs platform . 95% of volume . Upgrade on branches infrastructure VI Insurance System X Tests and Simulations Technology migration VII New commercial model 13 Integration Process - Synergies Synergies R$ million +246 1,446 We obtained cost 1,200 synergies of 1,000 800 R$ 1,446 million R$ 246 million above expectations 2009 1Q10 2Q10 2Q10 Estimates Actual 14 Santander Acquiring / “Conta Integrada” Better than expected results in the first months of operation FINANCIAL ACQUIRING SERVICES Results 2012 SERVICES (%) until 21/jul Goals Affiliated Merchants 51 300 17.0% (thousand) New Accounts 8 150 5.3% Santander Acquiring (thousand) 3 months of Santander Mastercard Conta Integrada operation Operations started in VISA July 2010 15 Table of Contents Santander – Worldwide Santander – Latin America Santander – Brazil - Governance/Strategy - Business - Results in IFRS Annexes 16 Managerial Loan Portfolio¹ - IFRS R$ billion 9.2% 4.7% Y-o-Y Q-o-Q R$ million Jun.10 Jun.09 Variation Variation 146.5 134.2 132.9 138.4 139.9 Individuals 45,910 41,217 11.4% 4.4% Consumer 26,119 24,593 6.2% 2.4% Finance SMEs 32,260 31,845 1.3% 4.7% Corporate 42,240 36,519 15.7% 6.7% Jun.09 Sep.09 Dec.09 Mar.10 Jun.10 Total IFRS 146,529 134,173 9.2% 4.7% Corporate Individuals 29% 31% Total IFRS including 149,974 135,986 10.3% 5.3% acquired portfolio² SMEs Consumer 22% Finance 18% 1. Loans for the year 2009 have been reclassified for comparison purposes with the current period, due to re-segmentation of clients occurred in 2010 2. Portfolio acquired from other banks 17 Managerial Loan Portfolio - BR GAAP¹ R$ billion 9.9% 4.7% Y-o-Y Q-o-Q R$ million Jun.10 Jun.09 Variation Variation 144.1 150.8 137.3 136.2 142.0 Individuals 49,268 42,937 14.7% 6.1% Consumer 28,554 26,507 7.7% 2.6% Finance SMEs 32,260 31,845 1.3% 4.7% Corporate 40,756 35,980 13.3% 4.4% Jun.09 Sep.09 Dec.09 Mar.10 Jun.10 Total BR GAAP 150,837 137,268 9.9% 4.7% Corporate Individuals 27% 33% Quarterly Loan Growth 1Q10 2Q10 Santander 1.5% 4.7% SMEs Consumer Private Sector banks (*) 3.6% 4.5% 21% Finance 19% 1. The credit portfolio in BR GAAP is higher than in IFRS because it includes loan portfolio acquired from other banks and consolidates the credit portfolio of our consumer finance joint ventures. (*) Brazilian Central Bank Data. 18 Deposits and Assets Under Management (AUM) R$ billion 4.0 % 2.0% Y-o-Y Q-o-Q R$ million Jun.10 Jun.09 Variation Variation 235.7 243.1 239.5 240.3 245.2 Demand 13,888 14,121 -1.7% 1.4% 85.5 93.1 98.4 106.6 109.5 Savings 26,721 21,411 24.8% 3.6% Time 60,051 87,463 -31.3% -12.0% 150.2 150.0 141.1 133.8 135.7 Others¹ 35,084 27,202 29.0% 34.8% Jun.09 Sep.09 Dec.09 Mar.10 Jun.10 Funding from 135,744 150,197 -9.6% 1.5% AUM Funding from Clients¹ Clients AUM 109,493 85,503 28.1% 2.7% Demand 6% Savings Total 245,237 235,700 4.0% 2.0% 11% AUM 45% Time 24% Others¹ 14% 1. Debentures repurchase agreement, Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA) 19 Quality of Loan Portfolio - IFRS Delinquency ratio¹ (%) Coverage ratio² (%) 9.7 9.3 8.8 8.8 8.2 7.7 7.0 7.2 7.0 101% 102% 103% 102% 6.6 97% 6.1 5.7 5.3 5.3 5.1 2Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Individuals Corporate Total 1. (Nonperforming loans over 90 days + performing loans with high delinquency risk) / managerial loan portfolio 2. Allowance for Loan Losses / nonperforming loans over 90 days + performing loans with high delinquency risk 20 Quality of Loan Portfolio - BR GAAP Delinquency Over 90¹ (%) NPL Over 60² (%) Coverage Ratio Over 90³ 9.2 9.4 9.2 7.9 7.8 8.7 7.4 7.2 8.0 7.6 7.7 6.5 6.7 128% 6.2 6.8 120% 5.9 6.4 108% 113% 5.4 97% 4.7 5.6 6.2 5.1 5.3 6.1 4.2 4.7 3.7 4.4 3.0 3.6 2Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Individuals Corporate Total Individuals Corporate Total 1.