Consolidated financial statements prepared in accordance with accounting practices established by Brazilian Corporation Law Banco Santander (Brasil) S.A. March 31, 2010 BANCO SANTANDER (BRASIL) S.A. (current name of Banco Santander S.A.) AND SUBSIDIARY COMPANIES THE FINANCIAL STATEMENTS ON MARCH 31, 2010 AND 2009 AND ON DECEMBER 31, 2009 SUMMARY Pages Performance Review.......................................................................................................................................................................................1 Independent Auditors' Report................................................................................................................................................................................11 ......................................... Financial Statements Balance Sheets..............................................................................................................................................................................................12.............................................. Statements of Income........................................................................................................................................................................................16 ................................................... Statements of Changes in Stockholders' Equity...............................................................................................................................................................17 ................ Statements of Cash Flow.....................................................................................................................................................................................18 ................... Notes to the Financial Statements Note 1 . Operations................................................................................................................................................................................................19 ........................................... Note 2 . Corporate Restructuring...................................................................................................................................................................................19 ................................................. Note 3 . Presentation of Financial Statements......................................................................................................................................................................21 ................................................... Note 4 . Significant Accounting Practices..........................................................................................................................................................................21 ................................................... Note 5 . Cash and Cash Equivalents.................................................................................................................................................................................23 Note 6 . Interbank Investments.....................................................................................................................................................................................23 ................................................... Note 7 . Securities and Derivative Financial Instruments...........................................................................................................................................................24 ................................................... Note 8 . Interbank Accounts........................................................................................................................................................................................33 ................................................... Note 9 . Credit Portfolio and Allowance for Losses.................................................................................................................................................................33 ................................................... Note 10 . Foreign Exchange Portfolio................................................................................................................................................................................35 ................................................... Note 11 . Trading Account...........................................................................................................................................................................................35 ................................................. Note 12 . Tax Credits...............................................................................................................................................................................................36 ............................................. Note 13 . Other Receivables - Other.................................................................................................................................................................................37 ................................................... Note 14 . Other Assets..............................................................................................................................................................................................37 .............................................. Note 15 . Foreign Branches..........................................................................................................................................................................................37 .................................................. Note 16 . Investments in Affiliates and Subsidiaries................................................................................................................................................................38 ................................................... Note 17 . Property and Equipment....................................................................................................................................................................................40 ................................................... Note 18 . Intangible................................................................................................................................................................................................40 ............................................ Note 19 . Money Market Funding and Borrowings and Onlendings........................................................................................................................................................41 ................................................... Note 20 . Tax and Social Security...................................................................................................................................................................................43 ................................................... Note 21 . Subordinated Debts .......................................................................................................................................................................................44 ................................................... Note 22 . Other Payables - Other....................................................................................................................................................................................44 ................................................... Note 23 . Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security......................................................................44....................................................................................................... Note 24 . Stockholders’ Equity......................................................................................................................................................................................47 ................................................... Note 25 . Operating Ratios..........................................................................................................................................................................................48 .................................................. Note 26 . Related-Party Transactions................................................................................................................................................................................48 ................................................... Note 27 . Income from Services Rendered and Banking Fees............................................................................................................................................................52 ................................................... Note 28 . Personnel Expenses........................................................................................................................................................................................52 ................................................... Note 29 . Other Administrative Expenses.............................................................................................................................................................................52 ................................................... Note 30 . Tax Expenses..............................................................................................................................................................................................52