1

Investor Presentation3Q2010

2

. Who we are

. Business Segments

. Competition

. Financial Highlights

3

IPO

1989 1991 1997 2005 2006 20102007

History in Brazil

Arab Banking

Corporation and local

management acquire

Roberto Marinho

Group´s shares

Current

management starts

running the bank

The bank´s name

changes to

Banco ABC Brasil

S.A.

The bank

structures its

Middle Market

operations

Arab Bank Corporation and

Roberto Marinho Group jointly

initiate Banco ABC Roma SA,

acting in the segments of

corporate lending, trade finance

and treasury

3

4

Focus on Companies

• Expertise in corporate credit risk analysis with remarkablylow historical losses.

• Wide range of products.

• Winning combination of a strong controlling shareholderand an independent local Management team.

4

ABC Brasil strongly focuses on providing loans and structured products to mid-sized and large companies.

Middle Market

Other

Corporate

29.9%

100%94.0%

88.5%

86.3% 2,011

2,6052,911

4,992

6,485

84.3%

6.0%11.0%

11.8%

12.5%

8,509

Credit PortfolioIncluding Guarantees Issued.

BRL Million.

84.1%

14.6% 31.2%

26.0%

10,725

13.1%

86.9%

0.5%

1.9%

3.2%

1.3%

2004 2005 2006 2007 2008 2009 3Q10Sep10

5

ROAC

AM

RR

PA

AP

MA

PI

CE

BA

MGES

RJ

SP

PR

SC

RS

MS

MT

GO

DF

RN

PB

PE

ALSE

Geographical presence

5

•Banco ABC Brasil has businessplatforms in seven states thatare responsible for 70% of theBrazilian GDP.

•From these business platformsother states are covered.

TO

BUSINESS PLATFORMS

CORPORATE MIDDLE

SP Capital 3 3

SP Countryside 1 1

South 1 3

RJ 1 1

MG - 1

GO - 1

TOTAL 6 10

ABC Brasil offices

6

Ownership Structure

Local Management

14.4%

ABC85.6%

Voting Capital

ABC

56.5%Local

Management

9.5%

Associates

1.0%Free float33.0%

Total Capital

6

Support of a strong international controlling shareholder.

7

Controlling Shareholder

International bank headquartered in Bahrain

Listed in the Bahrain stock exchange

Present in 21 countries

Main Shareholders

Central Bank of Libya 41.6%

Kuwait Investment Authority 29.7%

Abu Dhabi Investment Authority 17.7%

7

Arab Banking Corporation

Total Assets: US$ 26.8 Bn

Shareholders’ Equity: US$ 3.4 Bn

Ratings:

BBB+ A3BBB+

3Q10

8

Ratings

Strong controlling shareholder Access to attractive funding

Independent management Agile decision making process

Successful track record Outstanding performance in corporate credit

Local Global

Aa1.Br Baa3

AA- BB+

Our high rating is a consequence of the combination of independent management, successful track record and a strong controlling shareholder.

8

Investment grade

9

Corporate Governance

ABC Brasil is listed at Bovespa Nivel 2 and has always followed strict CorporateGovernance practices, with shareholders represented in the Board of Directors.

Members

• 3 representing ABC

• CEO

• 2 independent members

Main responsibilities

Overall business guidelines, including its long-term

strategy and performance control and monitoring.

Election and removal of the members of the Executive

Board and monitoring the performance of their duties.

Board of Directors

Board Risk Committee

Audit ABC Brasil’s management, review the Bank’s

financial statements and report their conclusions to

the Bank’s shareholders.

Fiscal Council

• 4 members of the Board

of Directors

• 2 representing ABC

• 1 representing minority

shareholders

Delegate Credit Limits to Credit Committees.

Approval of specific transactions that exceeds the

delegated limits.

Risk Management Guidelines.

9

Review financial statements

Assess the effectiveness of internal and independent

audits

Audit Comitee

• 2 independent members

of the Board of Directors

• 1 accounting specialist

10

Corporate Governance

10

ABC Brasil’s decision process is based on committees and no one has theauthority to individually approve a transaction or a product.

Main committees:

Credit CorporateCommittee

ProductsCommittee

TechnologyCommittee

Credit MiddleCommittee

ComplianceCommittee

ALCO

ResultsCommittee

Executive DirectorsMeeting

11

Successful Track Record

11

371727 640

1,0951,619

2,4522,061

1,7492,011

2,6052,911

4,992

6,485

8,509

0.0%0.7% 0.0%

0.6%0.0% 0.1% 0.1%

0.8%1.4%

0.0% 0.0% 0.2% 0.2% 0.6%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Credit Portfolio Losses / Credit PortfolioBRL million

Mexican

Crisis

Asian

Crisis

Russian

Crisis

Devaluation

of BRL

“Apagão”

September

11th

Argentinean

Crisis

Presidential

Elections of

Lula

Banco Santos

Bankruptcy

Subprime

Growth with low losses despite adverse economic conditions.

Losses / Loan Portfolio

12

. Who we are

. Business Segments

. Competition

. Financial Highlights

13

CorporateCompanies with annual revenues over BRL 250 million

13

CREDIT PORTFOLIO (BRL million)GEOGRAPHICAL DISTRIBUTION

Focus, agility and expertise in credit analysis are key differentiating features.

6.1%

6,305.0 7,157.2 8,079.8 8,790.8 9,323.9

3.858,6 4.410,4 4.950,3 5.426,1 5.784,0

2.446,4 2.746,8

3.129,4 3.364,7

3.539,9

3Q09 4Q09 1Q10 2Q10 3Q10

Guarantees issued

Loans

São Paulo -Capital; 57%

São Paulo -Countryside;

21%

Rio de Janeiro; 14%

South; 8%

3Q09 2Q10 3Q10

Average Ticket (BRL million) 11.5 12.9 13.7

Duration (days) 322 360 376

Groups 549 679 682

14

Middle MarketCompanies with annual revenues from BRL 30 to 250 million

14

CREDIT PORTFOLIO (BRL million)GEOGRAPHICAL DISTRIBUTION

Besides expertise in credit analysis, state of the art collateral controls are essential.

Sep 10Sep 09

São Paulo - Capital; 45%

São Paulo -Countryside; 10%

Rio de Janeiro; 10%

South; 30%

BH; 6%

3Q09 2Q10 3Q10

Average Ticket (BRL million) 1.8 2.0 2.0

Duration (days) 241 261 257

Groups 547 695 717

1.0%

984.4 1,242.0 1,314.3 1,388.0 1,401.8

932,5 1.173,7 1.252,2 1.346,1 1.365,3

51,9

68,3 62,1

41,9 36,4

3Q09 4Q09 1Q10 2Q10 3Q10

Guarantees issued

Loans

55,8% 44,7%

44,2% 55,3% Other

SP Capital

15

Other Activities

Treasury

Investment Banking

Pricing & Asset Liability Management

Proprietary Trading

Hedge & Derivatives

15

FIDC

Debentures

Promissory Notes

Capital Markets

M&A

ABC Brasil is prepared to meet the growing demand of companies for sophisticated financial products in a developing capital markets scenario in Brazil.

16

. Who we are

. Business Segments

. Competition

. Financial Highlights

17

Brazilian Banking SectorCompetitive advantages in corporate segment

Big retailbanks

17

Mid-sizedinternational banks

Mid-sized familyowned banks

Scale

Funding

Products

Agility

Focus

18

Larg

e

Corp

orate

Corp

orate

Mid

dle

Market

Revenues Range (BRL Mi)

2,000+

250-2,000

30-250

Individuals and small companies

Reta

il

Main Competitors

Big retail banks

Middle-sized international banks

18

Big retail banks

Middle-sized international banks

Big retail banks

Middle-sized family owned banks

Big retail banks

Middle-sized international banks

Middle-sized family owned banks

NUMBER OF CLIENTS

ABC Brasil focuses on the Corporate and Middle Market segments.

Brazilian Banking Sector

19

. Who we are

. Business Segments

. Competition

. Financial Highlights

20

Credit Portfolio Quality

20

Ratings according to Brazilian Central Bank resolution nº 2.682. Percentage

of portfolio.

Segments

Loan

Portfolio *

(BRL million)

Write Off

(BRL million)

Write Off /

Loan Portfolio

LLR **

(BRL million)

LLR ** /

Loan Portfolio

Past Due >

90 days

(BRL million)

Past Due >

90 days /

Loan Portfolio

Corporate 5,784.0 4.3 0.07% 67.5 1.17% 5.2 0.09%

Middle Market 1,365.3 6.2 0.46% 49.6 3.63% 9.7 0.71%

Total - 3Q10 7,149.4 10.6 0.15% 117.0 1.64% 14.9 0.21%

D-H 2.4%

AA-C 97.6%

* Excluding guarantees issued.** Loan Loss Reserves.

20022003

20042005

20062007

20082009

0.1%

0.7%

1.2%

0.0%0.0% 0.2%

0.2%0.6%

1.8%

2.7%

1.6%

1.2% 1.4%

1.0%

2.2% 2.3%

Losses Loan loss reserves

Percentage of portfolio.

21

Credit Portfolio Quality

20

1,03% 0,99% 0,98% 1,05%

2,23%

2,81%2,98%

2,64%

2,25%

1,92%1,78%

1,64%

0,21% 0,25% 0,28% 0,34%

0,64%

1,18%

0,95%

0,65% 0,57%

0,33%0,23% 0,21%

0,17% 0,11% 0,04%

0,05% 0,04%0,16%

0,17%0,28% 0,09%

0,32%0,12% 0,15%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Loan Loss Reserves

NPL (over 91 days)

Write Off

0.87%0.71% 0.68% 0.74%

1.80%

2.30% 2.31%2.16%

1.83%

1.52%

1,29%1,17%

0.14%0.05%

0.15% 0.10%

0.38%

0.98%

0.61%

0.38%0.51%

0.23%0,12% 0,09%

0.04% 0.08%0.01% 0.03% 0.00% 0.00%

0.13% 0.15%0.04%

0.27%

0,00%0,07%

2.30% 2.39% 2.33% 2.24%

4.03%

5.23%5.54%

4.39%

3.65%3.33%

3,64% 3,63%

0.66%

1.27%0.95%

1.39%

1.84%

2.22% 2.28%

1.06%0.69% 0.65% 0,60% 0,71%

0.08%0.26% 0.20% 0.15% 0.13%

0.75%

0.13%

0.69%

0.21%0.37% 0,50% 0,46%

CORPORATE MIDDLE MARKET

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

22

Funding

22

Strong funding supply with attractive prices in both local and international markets.

BRL million

23

Shareholder’s equity and Basel index

23

An offshore issuance of Subordinated Notes was concluded on April 8th in the amount of USD300 million,raising the bank´s capital and its ability to leverage.

410 405422

439459

483

1.083 1.0861.107

1.1321.159 1.162 1.175

1.1591.182

1.2181.247

1.2791.312

14,0%

13,4%

14,0% 13,9%

13,2%13,6%

26,7%

23,1%

20,7%

19,2%

16,7%

18,0% 18,1%17,9%

15,4%

14,6%

13,3%

17,8%

16,9%

12,0%

14,0%

16,0%

18,0%

20,0%

22,0%

24,0%

26,0%

28,0%

-

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Shareholder's equity (BRL M) Basel Index

IPO

Sub.

Debt

24

Revenues

24

MANAGERIAL NET INTEREST INCOME

INCOME FROM SERVICES RENDERED

* Treasury result with managerial adjustments

NIM (p.a.)

NII (BRL million) 3Q10 2Q10 Chg.(%) 3Q09 Chg.(%) 9M10 9M09 Chg.(%)

Financial Margin with Clients 109.7 104.7 4.8 86.0 27.6 308.2 260.4 18.4

Treasury * 7.2 8.6 7.8 30.5 16.9

Net Interest Income before Loan-Loss Provisions (LLP) 116.9 113.3 3.2 93.8 24.6 338.7 277.2 22.2

LLP (8.9) (9.0) (1.1) (8.6) 3.5 (31.7) (49.1) (35.4)

LLP (Brazilian Central Bank resolution nº 2,682) (9.4) (11.6) (19.0) (17.0) (44.7) (34.8) (52.4) (33.6)

Additional LLP 0.5 2.6 8.4 3.1 3.4

Total 108.0 104.3 3.5 85.2 26.8 307.0 228.2 34.5

Income from services rendered (BRL million) 3Q10 2Q10 Chg.(%) 3Q09 Chg.(%) 9M10 9M09 Chg.(%)

Guarantees issued 17.4 16.5 5.7 12.4 41.1 48.8 29.7 64.7

Underwriting Fees and M&A 0.5 1.6 0.0 4.5 0.8

Banking Fees 4.8 8.1 (40.3) 3.7 29.8 20.1 9.4 113.8

Total 22.7 26.2 (13.2) 16.1 41.1 73.4 39.9 84.1

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

5,6% 5,5% 5,7%5,3% 5,1%

5,6% 5,3%

25

Expenses

25

PERSONNEL, ADMINISTRATIVE AND PROFIT-SHARING EXPENSES

EFFICIENCY RATIO(including profit sharing)

Expenses (BRL million) 3Q10 2Q10 Chg.(%) 3Q09 Chg.(%) 9M10 9M09 Chg.(%)

Personnel (23.1) (22.4) 3.2 (19.5) 18.4 (66.4) (57.6) 15.3

Other administrative expenses (13.7) (13.5) 1.8 (14.1) (2.5) (40.6) (39.6) 2.5

Profit Sharing (15.0) (15.4) (11.8) 27.1 (45.8) (28.5) 60.7

Total (51.8) (51.3) 1.1 (45.4) 14.2 (152.8) (125.7) 21.6

41,6% 41,7%38,0% 37,6% 37,0%

39,9%37,3%

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

26

Profitability

26

NET INCOMEBRL million

ROAE(p.a.)

* Excluding extraordinary effects of divestment of participation in CETIP and adhesion to the Federal Government´s program for settlement of tax debits.

*

*38,1

44,5 46,9 50,2 51,1

97,4

148,2

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

13,0%

14,8% 15,2%15,9% 15,8%

11,1%

15,7%

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

27

High Rating with Strong Sponsor &

Independent Management

High Level of Corporate

Governance

Expertise in Corporate Credit Risk Assessment

Agile Decision Making &

Experienced Management

Sophisticated and

Diversified Products

Strong Business

Origination Capacity

Compelling investment case

27

28

Investor Relations

Sergio Lulia Jacob Director Vice-President and IRO

Alexandre Sinzato, CFA Head of Investor Relations

Web Site: www.abcbrasil.com.br/irEmail: ri@abcbrasil.com.brPhone: +55 (11) 3170-2186

28

29

Credit Middle Market

Credit Corporate

Deputy CEOAnis Chacur Neto

Auditing Committee

InformationTechnology

Financial Control

Group Audit / Credit Group

Bahrein

Internal Auditing

Board

Commercial Corporate VPJose Eduardo C. Laloni

Legal

Risk

Compliance

Capital Markets

Investment Banking

CFO / COOSergio R. Borejo

Treasury & IR VPSergio Lulia Jacob

Commercial Middle VPGustavo A. Lanhoso

CommercialMiddle Market

Back Office

Human Resources

CEOTito Enrique da Silva Neto

CommercialCorporate

International / FI

Treasury

Investor Relations

Products

Appendix – Corporate Structure

29

Business Intelligence