presentation 2q10

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Conference CallConference Call

2Q10 Results2Q10 Results

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Credit Behavior in BrazilCredit Behavior in Brazil

Loan Portfolio

Funding and Liquidity

Result from Operations

Indusval Multistock Corretora de Valores

Share Performance

2

733607

2005 2006 2007 2008 2009 Jun/10

Nonearmarked Resources Earmarked Resources

Volume of Credit OperationsR$ billion

Credit to individuals growth continues supported by payroll lending, vehicle and real

state financing.

In Corporate Credit earmarked resources from BNDES still stand out.

Public institutions account for 42.3% of total loans in the financial system

936

1,2271,410

29%

71%

29%

68%

32%

71%

19.720.340.710.219.126.916.4In 12 months8.17.510.65.68.912.57.6In the year5.36.06.35.84.56.03.9In the quarter2.02.83.12.61.01.30.9In the month

TotalEarmarked Resources

Non earmarked Resources

TotalEarmarked Resource

Non earmarked Resource

Jun/10Total Credit

CorporateIndividualsVariation%

1,529

67%

33%

Total Credit Volume and SegmentationTotal Credit Volume and Segmentation

Source: Central Bank of Brazil – Credit Information System - SCR

3

0

1

2

3

4

5

6

7

8

9

10

Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2006 2007 2008 2009 2010

Corporate Individuals Total

Sour

ce B

ACEN

%

Stabilized in Corporate Credit and continuous decline in credit to Individuals

Default Rate on Loans to Individuals: Fast retreat from June 2009.

Default Rate on Corporate Loans: Accelerated increase until September/09, with slow declinefrom November 2009 to March 2010, when stabilized at 3.6%

Credit Default RatiosCredit Default Ratios

6.6%

5.0%

3.6%

4

Credit Behavior in Brazil

Loan PortfolioLoan Portfolio




Share Performance

5

Local currency loans maintain 80% participation in total loan portfolio

Prevalence of Working Capital Loans and Discounts = 68% of Total Loan Portfolio

Guarantees issued in local currency represent only 4.7% of the portfolio in Reais

88% export financing (ACC/ ACE)

L/Cs and Import financing respond for 12% of Trade Finance business

In foreign currency, portfolio growth of 3% in the quarter and 41% in 12 months:

• US$ 136.6 million in 2Q09• US$ 186.9 million in 1Q10• US$ 192.1 million in 2Q10

Local Currency Loans Trade Finance

357.2333.3267.5

2Q09 1Q10 2Q10

+33.5%1,405.41,385.71,460.0

2Q09 1Q10 2Q10

-3.7%

Credit Assignment Guarantees issued and L/Cs

R$ MillionR$ Million

Credit Loans over R$ 1.7 billion *Credit Loans over R$ 1.7 billion ** Including guarantees issued and L/Cs

6

10 largest19%

11 to 6032%61 to 160

24%

Other25%

Industry57%

Commerce11%

Services23%

Individuals8%Finance

Interm.1%

Foreign Currency

21%

Local Currency

79%

Above 360 days 28%

181 to 360 15%

91 to 180 19%

Up to 90 days38%

Credit Portfolio BreakdownCredit Portfolio Breakdown

By Client Concentration

By Economic Activity By Currency

By TenorThe average of contracts final tenors is 451 days

7

22%

10%5%5%

4%4%

3%

12%

1% 1%

15%

3%

4%

4%

3%

3%

FOOD, BEVERAGE AND TOBACCO

AGRIBUSINESS

HEAVY CONSTRUCTION

CHEMICAL AND PHARMACEUTICA

AUTOMOTIVE

TRANSPORTATION & LOGISTICS

EDUCATION

TEXTILE, CLOTHING & LEATHER

METAL INDUSTRY

FINANCIAL INSTITUTIONS

OIL AND BIOFUEL

FINANCIAL SERVICES

INDIVIDUALS

INTERNATIONAL TRADE

PAPER & PULP

OTHER INDUSTRIES

Loan Portfolio breakdown by Industry Loan Portfolio breakdown by Industry

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Allowance for Loan LossesNPL(*) / Total Loan (%)

Asset Quality

3.5

6.9

2.6

2Q09 1Q10 2Q10

Collateral Structure - Middle Market

Aval PN21%

Securities4%

Monitored Pledge

11%

Real State10%

Vehicles2%

Pledge/Lien6%

Receivables46%

Risk Rating

A33%

D-H12%

B28%

C27%

Developments in Loan Portfolio QualityDevelopments in Loan Portfolio Quality

(*) Total amount of contracts with any installment overdue above 60 days

Provisions of 6.4% of Loan Portfolio ensure good coverage = 51% of D-H and 245% of NPL 60 days

110.7118.2107.8

2Q09 1Q10 2Q10

9


Loan Portfolio

Funding and LiquidityFunding and Liquidity



Share Performance

10

Time Deposits

40%

DPGE(*)28%

Interbank Deposits

2%Demand Deposits

2% LCA1%

BNDES Onlending

5%Foreign Borrowings

22%

Predominance of local currency funding 73% in Deposits 16% Trade Finance lines 6% IFC A/B Loan 5% BNDES onlending lines

Total Funding Funding Breakdown

1,880.61,880.71,772.3

2Q09 1Q10 2Q10

+6.1%

Time Deposits (CDs + DPGEs) equivalent to 68% of total funding

Lengthening of average term to maturity of total deposits to 593 days in the 2Q10 from 494 days in the 1Q10: CDBs: R$ 743.8 MM - 382 days DPGEs: R$ 525.4 MM - 946 days Interbank Deposits: R$ 45.7 MM - 142 days

Stable volumes, Longer tenorsStable volumes, Longer tenors

R$ Million

(*) Time Deposits insured by Fundo Garantidor de Crédito (FGC)

11

382,7

293,2

533,1558,5

306,8 285,8

720,1

586,4

90 days 180 days 360 days Above 360 days

Assets Liabilities

735,2 707,9 695,5

2Q09 1Q10 2Q10

Free Cash (*)

Assets and Liabilities Management

Good Liquidity maintainedGood Liquidity maintained

R$ Million

R$ Million

Management of liquidity, interest rate, currencies and tenor mismatch risks is our Treasury’s main task

Free Cash:

51% of Total Deposits

162% of Shareholder’s Equity

(*) Free Cash =

(Cash + Liquid Financial Assets + Securities + Derivatives)

(-)

(Open Market Funds + Derivatives)

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Loan Portfolio


Results from OperationsResults from Operations

Indusval Multistock Corretora

Share Performance

13

102,3114,4 110,4

2Q09 1Q10 2Q10

Financial Intermediation Profit stands complementary provisionsFinancial Intermediation Profit stands complementary provisions

+7.8%

33.135.232.1

2Q09 1Q10 2Q10

+2.9%

Income from Financial IntermediationR$ Million R$ Million

Gross Profit from Financial intermediation

-3.5%

3.5% drop in Income from Financial Intermediation in the quarter derived from lower FX variation volume on Trade Finance operations

The FX rate effect also reflected in the reduction in Expenses with Foreign Borrowings

Gross Profit from Financial Intermediation equivalent to 30% of Income from Financial Intermediation in the 2Q10 towards 31% in the 1Q10 and 2Q09.

Increase of 10.4% in the expenses of Allowance for Loan Losses to maintain the volume of complementary allowance for loan losses in R$ 11 million and give good coverage to exposure of the loan portfolio

-6.1%

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20.924.424.5

2Q09 1Q10 2Q10

Efficiency keeps evolvingEfficiency keeps evolving

-14.6%

Net Operating Expenses Efficiency RatioIn %R$ Million

-14.3%

55.2%61.0%

45.6%

2Q09 1Q10 2Q10

S&

P M

odel

+9.6 p.p.

-5.8 p.p.

Net Operating Expenses reduced to 63% of Result from Financial Intermediation compared to 69% in 1Q10 and 76% in 2Q09, as result of: Strict control of operating expenses Increased contribution of other revenues,

operating, including positive exchange variation on arbitrage operations.

Decrease of net operating expenses offset a small reduction in results of financial intermediation, with favorable impact on the efficiency ratio in the quarter.

Maintaining this trend should remain as the positive scenario persist.

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R$ Million

NIM 0.2 p.p. drop in the quarter reflects:

• The increase of Trade Finance share in the average interest bearing assets; and

• Maintenance of liquidity levels

Net Profit Net Interest Margin (NIM)

Recovering profitabilityRecovering profitability

8.1 7.3 8.3

2Q09 1Q10 2Q10

+2.5%

+13.7% 6,8%

4,9%

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

NIM GIM

GIM= Gross Interest Margin

Net Profit progressed due to reduction of: 14% in Net Operating Expenses; and 25% in Profit Sharing - management and employees

Compensating: 6% drop in Financial Intermediation Result; and 25% increase in Income Tax and Social Contribution

Recurring Profit in the quarter was 22% higher than 2Q09 which had a non-recurring net income of R$ 1.3 million

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Loan Portfolio



Indusval Multistock Indusval Multistock CorretoraCorretora de de ValoresValores

Share Performance

17

Investment plan maintained Investment plan maintained

Challenging market in 2Q10

The brokerage firm modernization process keeps its pace with investments in technology and people to develop new products and markets within its strategic targets:

• To broaden the institutional clients and qualified individual investors base

• To expand to the retail segment

• To become an institutional clients’ liquidity center

Repositioning in the BM&F Ranking

• 2Q09: 53th position



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Loan Portfolio




Share PerformanceShare Performance

19

Current free float:

Capital Distribution and Free FloatCapital Distribution and Free Float

41,212,984(1,262,117)42,475,101TOTAL14,212,984(1,262,117)15,475,101Preferred27,000,000-0-27,000,000Common

# of Shares08.11.2010

# of Shares Treasury Cancelled

# of Shares 06.30.2010Class

On August 10, 2010, the Board of Directors of Banco Indusval Multistock approved:

The cancellation of 1,262,117 preferred shares held in treasury

20,324,82513,015,3677,309,458

# of SharesFree Float

49.32%(2,733,939)(18,154,220)41,212,984TOTAL91.52%(159,570)(1,038,047)14,212,984Preferred27.07%(2,574,369)(17,116,173)27,000,000Common

Management FreeFloat

ControllingShareholders

# of Shares08.11.2010Class

The closure of the 3rd share buyback program; and,

The opening of the 4th preferred shares buyback program for the acquisition of up to 1,301,536 preferred shares in force until Aug.09,2011 to be maintained in treasury, future sale or cancellation, without capital reduction.

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BIM’s practice for shareholder remuneration in the last years is the quarterly anticipated payment of Interest on Equity

2,9 2,8 2,36,0 6,8 6,3

2,9 2,7 2,3

6,66,9

6,3

3,0 2,4 5,1

6,56,6

2,62,2

6,1

6,46,7

2005 2006 2007 2008 2009 2010

1Q 2Q 3Q 4Q

11.610.1

15.8

25.5R

$ M

M

27.0

12.6

Shareholder RemunerationShareholder Remuneration

Remuneration per share2005 2006 2007 2008 2009 1H2010

R$ 0,3657 R$ 0,3249 R$ 0,3688 R$ 0,5994 R$ 0,6423 R$ 0,3022

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Stock PerformanceStock PerformanceIDVL4 X IBOV IDVL4 X IBOV -- 20102010

10.66%

10.16%

9.72%

8.25%

8.25%

In 30 days

7.24%-3.50%IDVL4

29.94%

29.98%

22.13%

15.65%

In 12 months

4.52%

4.57%

-0.72%

0.18%

In 2010

ITAG

IGC

IBOV

IDVL4 (adjusted to earnings)

Performance (until Aug. 06.2010)

80

90

100

110

120

130

30/12

/0906

/01/10

13/01

/1020

/01/10

27/01

/1003

/02/10

10/02

/1017

/02/10

24/02

/1003

/03/10

10/03

/1017

/03/10

24/03

/1031

/03/10

07/04

/1014

/04/10

21/04

/1028

/04/10

05/05

/1012

/05/10

19/05

/1026

/05/10

02/06

/1009

/06/10

16/06

/1023

/06/10

30/06

/1007

/07/10

14/07

/1021

/07/10

28/07

/1004

/08/10

IBOVESPA IDVL4

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In SummaryIn Summary

Credit Behavior in BrazilPrivate Financial institutions start reaction, however, the public banks reach a high 42%

participation in total credit in financial system.

Loan PortfolioMore positive macroeconomic scenario reflected in better SMEs performance.Slow origination retaking, with a 2.5% portfolio QonQ growth overcoming the maturities and

write-offs in the period. Trade Finance portfolio has a faster reaction as a consequence of the scenario. Retreated default levels maintained from March/2010.Good loan loss allowance NPL coverage.

Funding and Liquidity Available volumes at longer tenors.

ResultsControlled Operating Expenses contributed to better results with Net Profit 14% higher than

the previous quarter and 22% above the recurring results of 2Q09.

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Please note that this is the English version of the presentation. The original version is in Portuguese. If there is any discrepancy between such versions, the Portuguese version shall prevail. Banco Indusval Multistock’s full financial statements will be available on our website at www.indusval.com.br/ir, under Financial Information – Financial Statements, as soon as they are filed with the CVM – Brazilian Securities and Exchange Commission. Any reference or statement regarding Banco Indusval Multistock - or its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies are just estimates. Although these forward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to, our ability to realize the amount of the projected synergies and in the timetable projected, as well as economic, competitive, governmental and technological factors affecting Banco Indusval Multistock’s operations, markets, products and prices, and other factors detailed in Banco Indusval Multistock’s filings with the CVM – Brazilian Securities and Exchange Commission which, readers are urged to read carefully, in analyzing the forward-looking statements that are contained herein. Banco Indusval Multistock undertakes no obligation to update any of the projections contained herein.

Questions and AnswersQuestions and Answers

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Investor Relations Investor Relations –– Contact InformationContact Information

Ziro Murata Jr.IROPhone: (55 11) 3315-6961E-mail: [email protected]

Maria Angela R. ValenteHead of IR Phone: (55 11) 3315-6821E-mail: [email protected]

Banco Indusval S/ARua Boa Vista, 356 – 7º andar01014-000- São Paulo – SPBrasil

IR Site: www.indusval.com.br/ir

presentation 2q10

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