Banco do Brasil - Financial Statements

Transcription

Consolidated Financial Statements
st
1 quarter 2016
Financial
Statements
1st quarter 2016
0
Index
st
1 quarter 2016
INDEX
Index .............................................................................................................................................................1
Financial Statements ...................................................................................................................................3
BALANCE SHEET.....................................................................................................................................3
STATEMENT OF INCOME .......................................................................................................................7
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY .................................................................8
STATEMENT OF CASH FLOWS..............................................................................................................9
STATEMENT OF VALUE ADDED ......................................................................................................... 10
Notes to the Consolidated Financial Statements .................................................................................. 11
1 - THE BANK AND ITS OPERATIONS ................................................................................................ 11
2 - COMPANY RESTRUCTURING........................................................................................................ 11
3 - PRESENTATION OF FINANCIAL STATEMENTS ........................................................................... 12
4 - DESCRIPTION OF SIGNIFICANT ACCOUNTING POLICIES ........................................................ 17
5 - INFORMATION BY SEGMENT ........................................................................................................ 23
6 - CASH AND CASH EQUIVALENTS .................................................................................................. 35
7 - SHORT-TERM INTERBANK INVESTMENTS.................................................................................. 35
8 - SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS ...................................................... 36
9 - INTERBANK ACCOUNTS ................................................................................................................ 43
10 - LOAN OPERATIONS ...................................................................................................................... 45
11 - OTHER RECEIVABLES ................................................................................................................. 51
12 - FOREIGN EXCHANGE PORTFOLIO ............................................................................................ 52
13 - OTHER ASSETS ............................................................................................................................ 53
14 - INVESTMENTS............................................................................................................................... 54
15 - PROPERTY AND EQUIPMENT ..................................................................................................... 60
16 - INTANGIBLE ASSETS ................................................................................................................... 60
17 - DEPOSITS AND SECURITIES SOLD UNDER REPURCHASE AGREEMENTS ......................... 61
18 - BORROWINGS AND ONLENDINGS ............................................................................................. 65
19 - FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES ............................................. 67
20 - OTHER LIABILITIES ....................................................................................................................... 68
1
st
1 quarter 2016
21 - OTHER OPERATING INCOME/EXPENSES ................................................................................. 72
22 - NON-OPERATING INCOME .......................................................................................................... 74
23 - SHAREHOLDERS' EQUITY ........................................................................................................... 75
24 - TAXES ............................................................................................................................................ 80
25 - RELATED PARTY TRANSACTIONS ............................................................................................. 83
26 - EMPLOYEE BENEFITS .................................................................................................................. 85
27 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES, LEGAL LIABILITIES - TAXES AND
SOCIAL SECURITY ............................................................................................................................... 95
28 - RISK AND CAPITAL MANAGEMENT ............................................................................................ 98
29 - STATEMENT OF COMPREHENSIVE INCOME .......................................................................... 106
30 - OTHER INFORMATION ............................................................................................................... 107
Report of the Independent Auditors ..................................................................................................... 110
Members of Management ...................................................................................................................... 113
2
Financial Statements
st
1 quarter 2016
In thousands of Reais, unless otherwise stated
BALANCE SHEET
ASSETS
Note
CURRENT ASSETS
Cash and cash equivalents
Short-term interbank investments
6
7.a
Open market investments
Interbank deposits
Securities and derivative financial instruments
8
Own portfolio
Subject to repurchase agreements
Pledged in guarantee
Derivative financial instruments
Interbank accounts
Mar 31, 2016
Mar 31, 2015
Restated
Dec 31, 2015
794,044,220
771,228,599
781,341,718
22,244,838
18,054,422
16,130,100
360,672,687
351,419,935
348,398,818
320,732,915
303,356,591
308,838,003
39,939,772
48,063,344
39,560,815
28,255,045
24,273,925
30,917,833
23,699,895
20,534,138
25,247,605
1,447,510
1,257,846
1,655,295
105,260
113,777
2,269,990
3,002,380
2,368,164
1,744,943
69,860,300
65,050,180
64,031,849
Payments and receipts pending settlement
9.a
3,029,916
7,252
3,719,204
Restricted deposits
9.b
65,277,643
63,361,321
59,106,731
62,612,540
60,810,918
56,612,772
122,884
54,205
130,130
2,542,219
2,496,198
2,363,829
Deposits with Banco Central do Brasil
National Treasury - rural credits resources
National Housing Finance System
Interbank onlendings
1,469
--
1,114
Correspondent banks
1,551,272
1,681,607
1,204,800
193,653
597,676
196,501
193,653
597,676
196,501
190,567,698
188,807,055
189,308,185
2,210,829
2,438,099
2,420,477
200,326,770
196,989,843
195,334,839
243
431
213
(11,970,144)
(10,621,318)
(8,447,344)
327,804
Interdepartmental accounts
Internal transfers of funds
Loan operations
10
Public sector
Private sector
Loan operations linked to assignment
(Allowance for loan losses)
Leasing transactions
301,554
318,349
Private sector
339,682
352,475
346,982
(Allowance for leasing transactions losses)
(38,128)
(34,126)
(19,178)
121,420,632
122,226,217
131,506,096
10
Other receivables
Receivables from guarantees honored
Foreign exchange portfolio
12.a
Accrued income
Securities trading
Sundry
11.b
(Allowance for other losses)
Other assets
Assets not for own use and materials in stock
(Allowance for impairment)
Prepaid expenses
13
578,772
397,550
202,339
23,082,698
19,847,057
20,273,324
2,538,212
2,784,436
2,718,635
496,145
308,180
265,994
96,522,143
100,389,034
109,375,671
(1,797,338)
(1,500,040)
(1,329,867)
527,813
480,840
524,532
334,971
332,533
349,070
(123,397)
(120,940)
(129,643)
316,239
269,247
305,105
See the accompanying notes to the financial statements.
3
st
1 quarter 2016
ASSETS
Note
NON-CURRENT ASSETS
LONG-TERM RECEIVABLES
7.a
Open market investments
Interbank deposits
8
Own portfolio
Interbank accounts
Restricted deposits
9.b
National Treasury - rural credits resources
Interbank onlendings
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Restated
610,837,435
629,900,158
589,084,189
579,460,537
597,797,430
557,875,109
1,129,130
1,321,852
1,127,568
168,552
960,578
174,225
1,147,627
220,041
907,527
93,366,835
93,011,125
84,605,247
72,069,569
17,810,160
2,921,775
71,087,575
16,939,716
3,989,966
60,351,952
10,912,487
12,402,265
565,331
993,868
938,543
385,183
8,181
358,235
99
420,811
138,521
8,181
377,002
99
358,136
138,521
282,290
Loan operations
Public sector
Private sector
Loan operations linked to assignment
(Allowance for loan losses)
10
419,597,717
74,088,325
367,442,958
320,396
(22,253,962)
439,070,732
76,374,043
384,232,452
332,860
(21,868,623)
417,133,309
64,271,789
370,154,512
306,660
(17,599,652)
Private sector
(Allowance for leasing transactions losses)
10
395,318
416,243
(20,925)
507,440
522,360
(14,920)
527,719
536,751
(9,032)
64,570,309
1,311,560
40,558
1,179,383
344,699
62,292,171
(598,062)
63,512,259
1,573,065
36,398
1,344,984
334,604
61,040,381
(817,173)
53,990,320
-37,536
1,032,548
1,591,775
51,797,955
(469,494)
16,045
16,045
15,787
15,787
70,135
70,135
31,376,898
32,102,728
31,209,080
15,563,772
15,401,200
15,257,800
143,400
216,833
(54,261)
15,452,248
15,281,217
15,100,387
180,830
225,300
(54,269)
13,952,804
13,809,449
13,577,830
231,619
197,607
(54,252)
7,159,486
6,780,845
9,403,055
(9,024,414)
7,323,034
6,796,594
9,336,493
(8,810,053)
7,040,631
6,402,943
8,859,765
(8,222,077)
Other receivables
Accrued income
Securities trading
Specific credits
Sundry
(Allowance for other losses)
Other assets
Prepaid expenses
12.a
11.a
11.b
13
PERMANENT ASSETS
Investments
Associates and joint ventures
Domestic
Abroad
Other investments
(Accumulated impairment)
14.a
14.c
Property and equipment
Land and buildings
Other property and equipment
(Accumulated depreciation)
15
Intangible
16
Intangible assets
(Accumulated amortization)
Deferred
Organization and expansion costs
(Accumulated amortization)
TOTAL ASSETS
8,638,956
9,310,872
10,191,168
17,637,798
(8,998,842)
17,543,048
(8,232,176)
17,045,672
(6,854,504)
14,684
1,587,621
(1,572,937)
16,574
1,588,601
(1,572,027)
24,477
1,605,810
(1,581,333)
1,404,881,655
1,401,128,757
1,370,425,907
4
st
1 quarter 2016
LIABILITIES/SHAREHOLDERS’ EQUITY
Note
CURRENT LIABILITIES
Deposits
Mar 31, 2016
Mar 31, 2015
Restated
Dec 31, 2015
938,008,275
909,357,947
904,723,361
397,930,613
406,119,891
403,984,256
Demand deposits
62,631,054
66,549,760
73,704,884
Savings deposits
151,919,172
151,845,281
144,089,086
31,986,510
35,863,954
30,033,534
Time deposits
151,363,934
151,860,896
156,156,752
Other deposits
29,943
--
--
320,626,154
294,973,701
299,403,708
14,902,976
30,332,240
14,459,736
305,723,178
264,641,461
284,943,972
36,776,073
43,600,506
41,517,886
31,345,769
31,127,215
26,386,150
5,430,304
12,473,291
15,127,725
--
--
4,011
2,489,082
30,621
2,774,240
2,476,118
34
2,753,422
12,964
30,587
20,818
17.a
Interbank deposits
Securities sold under repurchase agreements
17.c
Own portfolio
Third-party portfolio
Funds from acceptance and issuance of securities
19
Bonds backed by real estate, mortgage and other credits
Foreign securities
Certificates of structured operations
Interbank accounts
Receipts and payments pending settlement
9.a
Correspondent banks
Interdepartmental accounts
3,874,647
5,438,786
4,118,051
Third-party funds in transit
3,869,933
5,438,146
4,111,162
Internal transfers of funds
4,714
640
6,889
20,845,824
22,214,249
18,976,030
20,845,824
22,214,249
18,976,030
38,363,266
39,015,494
35,291,927
196
--
429
BNDES
10,191,956
11,394,421
14,369,710
Caixa Econômica Federal
20,686,877
19,690,627
14,232,878
Finame
5,470,329
5,696,559
5,971,741
Other institutions
2,013,908
2,233,887
717,169
Borrowings
18.a
Foreign borrowing
Domestic onlending - official institutions
18.b
National Treasury
Foreign onlending
18.b
95
9,916
95
8.d
2,375,127
1,967,562
2,970,152
114,727,394
95,987,221
95,687,016
4,178,985
398,229
4,412,615
12.a
22,167,222
13,737,534
14,409,414
741,115
1,588,380
2,093,511
20.a
20,586,294
19,149,334
21,082,583
884,714
563,939
596,031
Financial and development funds
20.b
9,484,657
10,021,062
7,960,086
Subordinated debts
20.c
1,755,528
1,845,639
1,698,140
Equity and debt hybrid securities
20.d
233,367
121,313
951,323
Other liabilities
20.e
54,695,512
48,561,791
42,483,313
Other liabilities
Billing and collection of taxes and contributions
Shareholders and statutory distributions
Taxes and social security
Securities trading
5
st
1 quarter 2016
LIABILITIES/SHAREHOLDERS’ EQUITY
Note
Mar 31, 2016
Mar 31, 2015
Restated
Dec 31, 2015
NON-CURRENT LIABILITIES
382,717,589
410,234,637
382,104,507
LONG-TERM LIABILITIES
382,264,059
409,775,429
381,683,875
Deposits
Interbank deposits
Time deposits
17.a
56,108,132
4,898,884
51,209,248
58,299,827
5,618,593
52,681,234
62,440,476
6,702,594
55,737,882
Own portfolio
17.c
33,782,205
33,782,205
--
38,547,947
38,547,900
47
29,762,011
29,762,011
--
19
142,519,253
124,934,851
17,454,517
129,885
144,960,986
123,923,197
21,026,465
11,324
129,608,762
113,565,448
16,039,190
4,124
Borrowings
Domestic loans - other institutions
Foreign borrowing
18.a
4,384,761
52,277
4,332,484
7,441,111
38,494
7,402,617
6,157,413
-6,157,413
Domestic onlending - official institutions
National Treasury
BNDES
Finame
18.b
49,719,054
190,735
26,207,886
23,320,433
51,049,914
178,145
26,586,982
24,284,787
55,394,101
296,260
27,894,144
27,203,697
Foreign onlending
18.b
382
382
382
8.d
1,260,516
1,321,610
1,331,367
20.d
94,489,756
636,270
685,450
101,576
5,296,382
2,197
50,147,141
6,990,745
108,153,652
1,862,406
784,824
107,822
4,981,462
2,187
52,172,117
7,745,195
96,989,363
2,834,812
819,283
127,739
4,304,693
2,158
47,966,101
5,317,400
20.c and
20.d
25,627,776
27,293,304
24,776,309
5,002,219
13,204,335
10,840,868
453,530
459,208
420,632
84,155,791
81,536,173
83,598,039
60,000,000
48,043,731
11,956,269
60,000,000
47,321,901
12,678,099
54,000,000
42,971,511
11,028,489
8,100,000
8,100,000
8,100,000
15,740
14,326
13,992
2,713
2,730
2,788
29,060,181
29,031,090
25,393,416
(16,312,045)
(17,042,671)
(10,174,852)
1,667,695
--
4,623,836
(1,691,986)
(1,697,380)
(1,629,765)
3,313,493
3,128,078
3,268,624
1,404,881,655
1,401,128,757
1,370,425,907
Funds from acceptance and issuance of securities
Bonds backed by real estate, mortgage and other credits
Foreign securities
Other liabilities
Taxes and social security
Securities trading
Financial and development funds
Special operations
Subordinated debts
Equity and debt hybrid securities
Debt instruments eligible as capital
Other liabilities
12.a
20.a
20.b
20.c
20.e
DEFERRED INCOME
SHAREHOLDERS' EQUITY
23
Capital
Local residents
Domiciled abroad
Instruments qualifying to common equity tier 1 capital
Capital reserves
Revaluation reserves
Profit reserves
Accumulated other comprehensive income
Retained earnings/accumulated losses
(Treasury shares)
Noncontrolling interests
TOTAL LIABILITIES
23.c
6
st
1 quarter 2016
STATEMENT OF INCOME
Note
INCOME FROM FINANCIAL INTERMEDIATION
34,345,206
1st quarter/2015
Restated
46,655,991
20,412,315
27,598,402
1st quarter/2016
Loan operations
10.b
10.i
94,847
112,978
Securities
8.b
11,536,664
16,362,618
8.e
(302,795)
611,951
Foreign exchange results
12.b
630,277
305,180
Compulsory investments
9.c
1,390,177
1,190,489
583,721
474,373
(26,903,604)
(40,941,775)
Operations of sale and transfer of financial assets
EXPENSES FROM FINANCIAL INTERMEDIATION
Deposits and securities sold under repurchase agreements
17.d
(23,944,081)
(21,959,420)
Borrowings and onlendings
18.c
4,231,718
(13,299,624)
10.i
(55,375)
(71,510)
Allowance for loan losses
10.f and 10.g
OTHER OPERATING INCOME/EXPENSES
(8,837)
(6,735)
(7,127,029)
(5,604,486)
7,441,602
5,714,216
(3,378,509)
(4,043,276)
Service fee income
21.a
3,619,115
3,834,015
Bank fee income
21.b
1,938,658
1,589,067
Personnel expenses
21.c
(5,175,668)
(4,900,864)
Other administrative expenses
21.d
(3,801,922)
(3,736,846)
Tax expenses
24.c
(1,387,165)
(1,586,037)
Equity in associates and joint ventures
14
1,024,064
997,442
Other operating income
21.e
2,858,536
2,643,841
Other operating expenses
21.f
(2,454,127)
(2,883,894)
4,063,093
1,670,940
36,592
5,771,918
OPERATING INCOME
NON-OPERATING INCOME
22
Incomes
68,029
5,815,168
(31,437)
(43,250)
4,099,685
7,442,858
(1,044,841)
(492,066)
EMPLOYEE AND DIRECTORS PROFIT SHARING
(306,317)
(727,538)
NON-CONTROLLING INTERESTS
(389,476)
(404,904)
NET INCOME
2,359,051
5,818,350
2,792,561,206
2,796,086,165
0.83
2.03
Expenses
PROFIT BEFORE TAXATION AND PROFIT SHARING
INCOME TAX AND SOCIAL CONTRIBUTION
EARNINGS PER SHARE
Weighted average number of shares - basic and diluted
Basic and diluted earnings per share (R$)
24.a
23.f
7
st
1 quarter 2016
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
BB Consolidated
Note
Balances at Dec 31, 2014
Instrument
Qualifying as
Common
Equity Tier 1
Capital
Capital
Accumulated Other
Comprehensive Income
Profit Reserves
Capital
Reserves
Revaluation
reserves
Legal
Reserve
Statutory
reserves
Associates
and
subsidiaries
Banco do
Brasil
Retained
earnings/
accumulated
losses
Treasury
shares
Noncontrolling
Interest
Total
54,000,000
8,100,000
10,773
2,805
5,468,217
21,157,294
(9,437,805)
(160,035)
(1,621,507)
--
3,093,452
80,613,194
Accumulated other comprehensive income of securities and derivative
financial instruments, net of taxes
--
--
--
--
--
--
(585,179)
8,167
--
--
--
(577,012)
Share-based payment transactions
--
--
3,219
--
--
--
--
--
4,454
--
--
7,673
Repurchase of shares program
--
--
--
--
--
--
--
--
(12,712)
--
--
(12,712)
Expired dividends/interest on own capital
--
--
--
--
--
--
--
--
--
2,037
--
2,037
Realization of revaluation reserve in subsidiary/associated companies
--
--
--
(17)
--
--
--
--
--
17
--
--
Change in noncontrolling interest
--
--
--
--
--
--
--
--
--
--
175,172
175,172
Net income for the period
23.h
--
--
--
--
--
--
--
--
--
5,818,350
--
5,818,350
Interest on instruments elegible to common equity
--
--
--
--
--
--
--
--
--
(113,069)
--
(113,069)
Unrealized results
--
--
--
--
--
29,365
--
--
--
(29,365)
--
--
--
--
--
--
--
(1,261,460)
--
--
--
--
--
(1,261,460)
Allocation
- Dividends
23.g
- Interest on own capital
23.g
--
--
--
--
--
--
--
--
--
(1,054,134)
--
(1,054,134)
54,000,000
8,100,000
13,992
2,788
5,468,217
19,925,199
(10,022,984)
(151,868)
(1,629,765)
4,623,836
3,268,624
83,598,039
--
--
3,219
(17)
--
(1,232,095)
(585,179)
8,167
(8,258)
4,623,836
175,172
2,984,845
60,000,000
8,100,000
14,326
2,730
6,173,642
22,857,448
(16,678,569)
(364,102)
(1,697,380)
--
3,128,078
81,536,173
Accumulated other comprehensive income of securities and derivative
financial instruments, net of taxes
--
--
--
--
--
--
493,963
236,663
--
--
--
730,626
Share-based payment transactions
--
--
1,414
--
--
--
--
--
5,394
--
--
6,808
Expired dividends/interest on own capital
--
--
--
--
--
--
--
--
--
4,016
--
4,016
Realization of revaluation reserve in subsidiary/associated companies
--
--
--
(17)
--
--
--
--
--
17
--
--
Change in noncontrolling interest
--
--
--
--
--
--
--
--
--
--
185,415
185,415
Balances at Mar 31, 2015
Changes in the period
Net income for the period
23.h
--
--
--
--
--
--
--
--
--
2,359,051
--
2,359,051
Interest on instruments elegible to common equity
--
--
--
--
--
--
--
--
--
(19,559)
--
(19,559)
Unrealized results
--
--
--
--
--
29,091
--
--
--
(29,091)
--
--
--
--
--
--
--
--
--
--
--
(646,739)
--
(646,739)
60,000,000
8,100,000
15,740
2,713
6,173,642
22,886,539
(16,184,606)
(127,439)
(1,691,986)
1,667,695
3,313,493
84,155,791
--
--
1,414
(17)
--
29,091
493,963
236,663
5,394
1,667,695
185,415
2,619,618
Allocation
- Interest on own capital
Changes in the period
23.g
8
st
1 quarter 2016
STATEMENT OF CASH FLOWS
Note
Cash flows from operating activities
Income before taxation and profit sharing
Adjustments to income before taxation and profit sharing
Provision for credits, leasing and other credits
Depreciation and amortization
(Revenues) / Expenses from impairment
Equity in subsidiaries and associates
(Gain) Loss on the disposal of assets
(Gain) Loss on the disposal of investments
Capital (gain) loss
Foreign currency exchange results
Provision (Reversal) for devaluation of other assets
Amortization of goodwill
Expenses with civil, labor and tax provisions
Adjustment of actuarial assets/liabilities and surplus allocation funds
Commissions income deferred
Effect of changes in foreign exchange rates in cash and cash equivalents
Non-controlling interests
Other adjustments
Income adjusted before taxation and profit sharing
Equity variations
(Increase) Decrease in short-term interbank investments
(Increase) Decrease in trading securities and derivative financial instruments
10.f and 10.g
21.d
15 and 16
14.a
22
22
22
1st quarter/2016
1st quarter/2015
4,099,685
7,442,858
10,975,146
(6,322,159)
7,127,029
5,604,486
1,066,243
1,008,331
--
(2,409)
(1,024,064)
(997,442)
(3,193)
(3,465)
--
(1,356)
(25,287)
(5,752,333)
(1,258,969)
1,694,347
22
3,240
360
14.d
27 (e.1)
26
52,274
50,550
725,486
1,129,748
(139,831)
(505,742)
(109,153)
(191,396)
4,984,290
(7,844,539)
(389,476)
(404,904)
(33,443)
(106,395)
15,074,831
1,120,699
(23,395,517)
5,478,056
(33,499,922)
(34,521,849)
(103,897)
1,340,687
(Increase) Decrease in interbank and interdepartmental accounts
(Increase) Decrease in compulsory deposits with Banco Central do Brasil
(Increase) Decrease in loan operations
(Increase) Decrease in leasing transactions
(Increase) Decrease in other receivables net of deferred taxes
(Increase) Decrease in other assets
(1,737,101)
(1,868,264)
(47,278)
(59,988)
Income tax and social contribution paid
(Decrease) Increase in deposits
(Decrease) Increase in securities sold under repurchase agreements
(Decrease) Increase in funds from acceptance and issuance of securities
(Decrease) Increase in borrowings and onlendings
(Decrease) Increase in other liabilities
(Decrease) Increase in deferred income
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
(1,847,150)
(3,531,209)
(10,380,973)
(1,751,332)
20,886,711
35,245,285
(9,266,166)
23,535,874
(5,158,715)
4,439,536
7,714,109
1,147,549
(1,801,622)
6,611,465
10,816,001
(17,123,202)
103,164
(30,613)
933,000
(7,951,145)
(5,678)
(4,738)
(8,320,686)
6,598,755
(12,814,485)
(12,921,780)
9,557,447
6,927,753
Cash flows from investing activities
Increase in securities available for sale
Decrease in securities available for sale
Increase in securities held to maturity
Decrease in securities held to maturity
Dividends received from associated and subsidiaries companies
Acquisition of property, plant and equipment in use
Disposal of property, plant and equipment in use
(Acquisition) Disposal of investments
Acquisition of intangible assets
Disposal of intangible assets/deferred assets
Funds from partnership in the card segment
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
(1,676,324)
--
1,792,825
79,574
1,055,753
943,058
(192,496)
(234,305)
75,772
1,695
(124,160)
(214,245)
(112,166)
(85,985)
--
735
--
2,314,674
(2,437,834)
(3,188,826)
185,415
175,172
Cash flows from financing activities
Change in non-controlling interests
(Decrease) Increase in subordinated debts
(Decrease) Increase in equity and debt hybrid securities
(Acquisition) Disposal of treasury shares
Dividends paid
Interest on own capital paid
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
Net variation of cash and cash equivalents
At the beginning of the period
Effect of changes in foreign exchange rates in cash and cash equivalents
At the end of the period
Increase (Decrease) in cash and cash equivalents
(1,886,811)
424,624
(2,536,198)
4,755,168
5,394
(8,258)
--
(251,260)
(274,466)
(1,054,134)
(4,506,666)
4,041,312
(15,265,186)
7,451,241
102,707,171
61,859,479
(4,984,290)
7,844,539
82,457,695
77,155,259
(15,265,186)
7,451,241
9
st
1 quarter 2016
STATEMENT OF VALUE ADDED
Note
Income
1st quarter/2015
Restated
1st quarter/2016
33,070,257
51,857,108
Income from financial intermediation
34,345,206
46,655,991
Income from service and bank fees
5,557,773
5,423,082
(7,127,029)
(5,604,486)
51,833
5,791,686
Capital gains
22
Other income/(expenses)
Expenses from financial intermediation
Inputs purchased from third parties
242,474
(409,165)
(19,776,575)
(35,337,289)
(2,204,557)
(2,209,427)
Materials, water, electric power and gas
21.d
(182,054)
(150,575)
Expenses with outsourced services
21.d
(416,190)
(397,114)
Communications
21.d
(303,535)
(342,459)
Data processing
21.d
(160,420)
(185,695)
Transportation
21.d
(265,760)
(303,864)
Security services
21.d
(276,526)
(256,049)
Financial system services
21.d
(188,544)
(176,472)
Advertising and marketing
21.d
(57,989)
(58,957)
(353,539)
(338,242)
Other
Gross added value
11,089,125
14,310,392
(1,118,517)
(1,058,881)
Value added produced by entity
9,970,608
13,251,511
Value added received through transfer
1,024,064
997,442
1,024,064
21.d
997,442
Added value to distribute
10,994,672
100.00%
14,248,953
100.00%
Value added distributed
10,994,672
100.00%
14,248,953
100.00%
4,895,655
44.53%
5,024,572
35.26%
Personnel
Salaries and fees
3,205,023
3,060,434
Employee and directors profit sharing
306,317
727,538
Benefits and training programs
694,979
640,485
FGTS (government severance indemnity fund for employees)
174,013
164,356
Other charges
515,323
Taxes, rates and contributions
3,018,335
Federal
2,675,286
State
Municipal
Interest on third parties' capital
Rent
Interest on own capital
431,759
27.45%
2,681,934
70
79
342,979
306,475
332,155
21.d
332,155
23.g
2,748,527
3.02%
319,192
25.00%
6,223,255
357,957
610,317
Other shareholders’ interest on own capital
288,782
443,817
Federal government dividends
--
730,354
Dividends for other shareholders' dividends
--
531,106
Retained earnings
Non-controlling interest in retained earnings
2.24%
319,192
Federal government's interest on own capital
Interest on the instrument eligible to the federal government's
common equity tier 1 capital
18.82%
2,375,380
19,558
113,069
1,692,754
3,389,688
389,476
404,904
43.68%
10
Notes to the Consolidated Financial Statements
st
1 quarter 2016
1- THE BANK AND ITS OPERATIONS
Banco do Brasil S.A. (Banco do Brasil or the Bank) is a publicly traded company established under private law, with
both public and private shareholders, and is subject to the requirements of Brazilian corporate legislation. It is
headquartered in Setor de Autarquias Norte, Quadra 5, Lote B, Torre I, Edifício Banco do Brasil, Brasília, Distrito
Federal, Brazil. Its purpose is to carry out all asset, liability and accessory banking operations, to provide banking
services, to promote financial intermediation and to originate financial transactions in various forms, including foreign
exchange transactions and supplementary activities, and to practice any of the activities permitted for institutions that
are part of the National Financial System. It is also the main financial agent of the Brazilian Federal Government and
is therefore required to carry out the functions attributed to it by law, specifically those of article 19 of Law
4,595/1964.
2- COMPANY RESTRUCTURING
Partnership in the card segment
BB Elo Cartões and Cielo S.A.
On November 19, 2014, the Bank announced to the market that BB Elo Cartões Participações S.A. (BB Elo Cartões),
its wholly-owned subsidiary, and Cielo S.A. signed on this date the Association Agreement to form a new strategic
partnership in the electronic payment industry.
The equity interest of BB Elo Cartões and Cielo in the Company was authorized by Banco Central do Brasil on
December 30, 2014.
The creation of the company, arising from the partnership, was regarded as permitted under the Conselho
Administrativo de Defesa Econômica, after expiry of the period laid down in article 65 of Law 12,529/2011, went on
without any appeals or avocation of the case by the Administrative Court.
On February 27, 2015, after approval by the relevant regulators, supervisors and inspection, and subject to the
fulfillment of all contractual conditions precedent to the closing of the transaction, BB Elo Cartões and Cielo
completed the formation of the strategic partnership, forming a new company called Cateno Gestão de Contas de
Pagamento S.A. (Cateno).
Under the terms of the Agreement, the new company has the right, transferred by BB Elo Cartões, to exploit the
activities of management of post-paid accounts transactions and management of the functionality of purchasing via
debit of its payment arrangements. In addition, the new deal aims, among its objectives, to perform associations with
other partners in order to leverage opportunities related to the electronic payment niche market, seeking to obtain
synergy gains and optimizing the structuring of new businesses in the segment.
The injection of this intangible asset to Cateno’s shareholders’ equity represented R$ 11,572,000 thousand,
according to the technical report of appraisal performed by an independent company. In return, and for equalization
of the intended equity interests, Cateno gave to BB Elo Cartões R$ 4,640,951 thousand in cash, related to the
payment of taxes on the operation, and R$ 3,459,449 thousand in debentures from Cielo. The amount of 3,471,600
thousand was kept to compose the equity interest of BB Elo Cartões in Cateno.
The total capital was divided in the proportion of 30% for BB Elo Cartões and 70% for Cielo. However, taking into
account the indirect holding of the Bank in Cielo, through BB Banco de Investimento S.A., the total indirect holding of
the Bank in Cateno, on the date of acquisition, was distributed as follows:
Holding of the Bank - %
Total Capital
Common shares (ON)
Preferred shares (PN)
Total
42.27
100.00
50.13
Due to the conclusion of the transaction, the amount of R$ 3,211,700 thousand impacted the Bank's results from the
1st quarter 2015, as shown in the following table:
11
st
1 quarter 2016
1) BB Elo Cartões’ capital gain
11,572,000
2) Taxes
(4,640,951)
3) Effect in BB Elo Cartões’ income, net of tax effects (1+2)
4) Unrealized result (50.13% of item 3)
5) Effect in the Consolidated income (3+4)
6,931,049
(3,474,189)
3,456,860
6) Profit sharing, net of tax effects
(245,160)
7) Effect in the Consolidated net income (5+6)
3,211,700
3 - PRESENTATION OF FINANCIAL STATEMENTS
The consolidated financial statements have been prepared in accordance with the accounting guidelines derived from
Brazilian corporation law, the rules and instructions issued by the National Monetary Council (Conselho Monetário
Nacional - CMN), the Central Bank of Brazil (Banco Central do Brasil - Bacen) and the Securities and Exchange
Commission of Brazil (Comissão de Valores Mobiliários - CVM), as applicable. In the consolidated financial
statements, there was a reclassification of the Instrument qualifying as CET1 – hybrid capital and debt instrument to
Shareholder's equity. This adjustment is also performed in the prudential financial statements and to IFRS to improve
the quality and transparency of these consolidated financial statements.
The preparation of financial statements in accordance with accounting practices adopted in Brazil, applicable to
financial institutions, requires that Management use judgment in the determination and recording of accounting
estimates, when applicable. Significant assets and liabilities subject to these estimates and assumptions include: the
residual value of fixed assets, the allowance for loan losses, deferred tax assets, provision for labor, civil and tax
demands, valuation of financial instruments, assets and liabilities relating to post-employment benefits and other
provisions. The final amounts of transactions involving these estimates are only known upon their settlement.
The consolidated financial statements include the operations of the Bank performed by their domestic agencies and
abroad and also include the operations of the Bank’s controlled entities, as well as of the special purpose entities
(Dollar Diversified Payment Rights Finance Company and Loans Finance Company Limited) and of the investment
financial funds (Fênix Fundo de Investimento em Direitos Creditórios do Varejo, Fundo de Investimento em Direitos
Creditórios da Companhia Pernambucana de Saneamento - Compesa and BB FIA BDR Nível I) which the Bank
controls directly or indirectly. The consolidated financial statements reflect the assets, liabilities, income and
expenses of Banco do Brasil and its controlled entities.
In the preparation of the consolidated financial statements, amounts resulting from transactions between
consolidated companies, including the equity interest held by one in another, balances of balance sheet accounts,
revenues, expenses and unrealized profits, net of tax effects, were eliminated. Non-controlling interest in net equity
and in income of the controlled entities were separately disclosed in the financial statements. Leasing transactions
were considered based on the financial method, and the amounts were reclassified from the Leased assets line to
the Leasing transactions line, after deduction of residual amounts received in advance. The profit and loss with
foreign exchange from branches operations are presented in the groupings of income in which the charges and
income on these transactions are recognized. The foreign exchange profit and loss on overseas investments are
presented in the grouping of Borrowings and Onlendings, in order to eliminate the effect of protection for the
exchange rate fluctuations of these investments.
The Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC) is responsible
for issuing accounting standards and interpretations, based on international accounting standards, approved by the
CVM. Bacen adopted the following pronouncements of the CPC, applied by the Bank, as applicable: CPC 00 (R1) Conceptual framework, CPC 01 – Decrease in recoverable amount of assets, CPC 03 - Statement of cash flows
(DFC), CPC 05 – Related party disclosures, CPC 10 (R1) – Share-based payment, CPC 23 – Accounting policies,
changes in accounting estimates and errors, CPC 24 – Events after the reporting period, CPC 25 - Provisions,
contingent liabilities and contingent assets and CPC 33 (R1) - Employee benefits.
Additionally, Bacen issued CMN Resolution No. 3,533/2008, which became effective in January 2012 and
established procedures for classification, accounting and disclosure of sale and transfer transactions related to
financial assets. This Resolution establishes the criteria for the derecognition of financial assets as specified in the
CPC 38 – Financial instruments: recognition and measurement.
12
st
1 quarter 2016
The Bank has also applied the following pronouncements which do not conflict with the Bacen rules, as established
by article 22, paragraph 2 of Law 6,385/1976: CPC 09 – Value Added Statement, CPC 12 – Adjustment at Present
Value, CPC 22 – Information by Segment, CPC 36 (R3) – Consolidated Financial Statements and CPC 41 – Income
per Share.
The application of other standards, which depend on Bacen’s regulations, results primarily in immaterial adjustments
or in changes in disclosure, except the following pronouncements, that may result in significant impacts on the
financial statements:
CPC 04 (R1) – Intangible assets and CPC 15 (R1) - Business combinations - a) reclassification of intangible assets
identified in the acquisition of the equity interest in Banco Votorantim, in 2009, as well as in acquisition of controlling
interest of Banco Patagonia, in 2011, and of BB Americas, in 2012, from the investment account to the account of
Intangible assets, in the group of Non-current assets – permanent; b) derecognition of goodwill amortization
expenses from acquisitions; and c) recognition of amortization expenses of intangible assets with definite useful lives,
identified in the acquisitions.
CPC 18 (R2) – Investments in associates and joint ventures – a) recording at fair value of the equity interests
received in the partnership of the formation of the joint ventures BB Mapfre SH1 and SH2, on June 30, 2011; b) writeoff of the book value of the assets contributed by the Bank including any goodwill; and, c) recognition of the result of
the transaction in the new constituted companies by the proportion of the equity interest.
CPC 38 - Financial instruments: recognition and measurement - adjustment in the allowance for loan losses, due to
the adoption of the incurred loss criteria instead of the expected loss criteria.
These financial statements were approved by the Executive Board of Directors on May 10, 2016.
a) Equity interest included in the consolidated financial statements, segregated by business
segments:
Mar 31, 2016
Activity
Banking Segment
Banco do Brasil - AG
BB Leasing Company Ltd.
BB Leasing S.A. - Arrendamento Mercantil
BB Securities Asia Pte. Ltd.
Banco do Brasil Securities LLC.
BB Securities Ltd.
BB USA Holding Company, Inc.
Brasilian American Merchant Bank
Banco do Brasil Americas
Besc Distribuidora de Títulos e Valores Mobiliários S.A.
Banco Patagonia S.A.
Investment Segment
BB Banco de Investimento S.A.
Segment of Fund Management
BB Gestão de Recursos-Distribuidora de Títulos e Valores
Mobiliários S.A.
Segment of Insurance, Private Pension Fund and
Capitalization
BB Seguridade Participações S.A. (1)
BB Cor Participações S.A. (1)
BB Corretora de Seguros e Administradora de Bens S.A. (1)
BB Seguros Participações S.A. (1)
Segment of Payment Methods
BB Administradora de Cartões de Crédito S.A.
BB Elo Cartões Participações S.A.
Other Segments
Ativos S.A. Securitizadora de Créditos Financeiros
Ativos S.A. Gestão de Cobrança e Recuperação de Crédito
BB Administradora de Consórcios S.A.
BB Tur Viagens e Turismo Ltda. (2)
BB Asset Management Ireland Limited
BB Tecnologia e Serviços S.A.
Dec 31, 2015
% of Total Share
Mar 31, 2015
Banking
Leasing
Leasing
Broker
Broker
Broker
Holding
Banking
Banking
Asset Management
Banking
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.62%
58.96%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.62%
58.96%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.62%
58.96%
Investment Bank
100.00%
100.00%
100.00%
Asset Management
100.00%
100.00%
100.00%
Holding
Holding
Broker
Holding
66.36%
66.36%
66.36%
66.36%
66.25%
66.25%
66.25%
66.25%
66.25%
66.25%
66.25%
66.25%
Service Rendering
Holding
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Credits Acquisition
Credits Acquisition
Consortium
Tourism
Credits Acquisition
IT
100.00%
100.00%
100.00%
100.00%
100.00%
99.97%
100.00%
100.00%
100.00%
100.00%
100.00%
99.97%
100.00%
100.00%
100.00%
100.00%
-99.97%
(1) Refers to the percentage of the equity interest, considering the acquisition of shares by the invested entity held in treasury.
(2) The financial statements refers to February/2016.
13
st
1 quarter 2016
b) Information for comparability purposes
On May 31, 2015, the Bank prepared its consolidated financial statements including the assets, liabilities, income and
expenses of joint ventures proportionally to the direct or indirect equity interest held in each of them, according to
article 3 from CMN Resolution No. 2,723/2000, revoked by CMN Resolution No. 4,403/2015. The consolidated
financial statements also included the assets, liabilities, income and expenses of some associates determined by
Bacen.
Considering this revocation, from Dec 31, 2015, the consolidated financial statements started to be prepared in
accordance with article 249 from Law 6,404/1976 and with CPC 36 (R3) – Consolidated financial statements,
including the assets, liabilities, income and expenses of Banco do Brasil and its controlled entities.
According to CPC 19 (R2) – Joint Arrangements, it is required to use the equity method, and the option for
proportional consolidation method of joint ventures is not allowed.
O CPC 36 (R3) was applied retrospectively, considering certain simplifications contained in the transitional rules of
that pronouncement and in accordance with CPC 23 - Accounting policies, changes in accounting estimates and
errors. The Bank recorded its investments in associates and joint ventures using the equity method from the earliest
period presented. The initial investment was measured as the sum of the book value of the assets and liabilities that
the Bank had previously proportionally consolidated, including any goodwill.
So the balance amounts and the results related to March 31, 2015 are being presented again retrospectively,
considering the exclusion of equity interests listed below, which started being consolidated by the equity method.
Equity interest not included in the consolidated financial statements, segregated by business
segments
Mar 31, 2016
Activity
Banking Segment
Banco Votorantim S.A.
Investment Segment
Kepler Weber S.A.
Companhia Brasileira de Securitização - Cibrasec
Neoenergia S.A.
Segment of Insurance, Private Pension Fund and
Capitalization
BB Mapfre SH1 Participações S.A. (1)
Brasildental Operadora de Planos Odontológicos S.A. (1)
Companhia de Seguros Aliança do Brasil (1)
Mapfre Vida S.A. (1)
Brasilprev Seguros e Previdência S.A. (1)
Brasilcap Capitalização S.A. (1)
Mapfre BB SH2 Participações S.A. (1)
Aliança do Brasil Seguros S.A. (1)
Brasilveículos Companhia de Seguros (1)
Mapfre Seguros Gerais S.A. (1)
BB Mapfre Assistência S.A. (1)
Votorantim Corretora de Seguros S.A.
Seguradora Brasileira de Crédito à Exportação - SBCE
IRB - Brasil Resseguros S.A. (1)
Segment of Payment Methods
Cateno Gestão de Contas de Pagamento S.A. (1)
Elo Participações S.A.
Companhia Brasileira de Soluções e Serviços CBSS - Alelo
Elo Serviços S.A.
Cielo S.A. (1)
Tecnologia Bancária S.A. - Tecban
Dec 31, 2015
Mar 31, 2015
% of Total Share
Banking
50.00%
50.00%
50.00%
Industry
Credits Acquisition
Energy
17.46%
12.12%
11.99%
17.46%
12.12%
11.99%
17.46%
12.12%
11.99%
Holding
Service Rendering
Insurance Company
Insurance Company
Pension/Insurance
Capitalization
Holding
Insurance Company
Insurance Company
Insurance Company
Service Rendering
Broker
Insurance Company
Reinsurer
49.77%
49.77%
49.77%
49.77%
49.77%
44.24%
33.18%
33.18%
33.18%
33.18%
33.18%
50.00%
12.09%
13.55%
49.68%
49.68%
49.68%
49.68%
49.68%
44.16%
33.13%
33.13%
33.13%
33.13%
33.13%
50.00%
12.09%
13.53%
49.68%
49.68%
49.68%
49.68%
49.68%
44.16%
33.13%
33.13%
33.13%
33.13%
33.13%
50.00%
12.09%
13.53%
Service Rendering
Holding
Service Rendering
Service Rendering
Service Rendering
Service Rendering
50.11%
49.99%
49.99%
33.33%
28.73%
12.52%
50.11%
49.99%
49.99%
33.33%
28.72%
12.52%
50.13%
49.99%
49.99%
33.33%
28.75%
13.53%
(1) Refers to the percentage of the equity interest, considering the acquisition of shares by the invested entity held in treasury.
The effects of CPC 36 (R3) application on the consolidated financial statements are presented below.
14
st
1 quarter 2016
Restated balance sheet
Mar 31, 2015
Adjustments
Original report
CURRENT ASSETS and LONG-TERM RECEIVABLES
Restated balances
1,501,811,020
(162,594,193)
16,536,604
(406,504)
16,130,100
Short-term Interbank Investments
351,658,176
(2,131,790)
349,526,386
Securities and Derivative Financial Instruments
235,999,192
(120,476,112)
115,523,080
64,682,415
(33,254)
64,649,161
Loan operations and Leasing transactions
631,542,180
(24,245,163)
607,297,017
Other Receivables
197,641,607
(12,145,191)
185,496,416
3,750,846
(3,156,179)
594,667
Cash and Cash Equivalents
Interbank Accounts
Other Assets
PERMANENT ASSETS
1,339,216,827
21,854,684
9,354,396
31,209,080
Investments
3,584,912
10,367,892
13,952,804
Property and Equipment
7,504,117
(463,486)
7,040,631
10,728,629
(537,461)
10,191,168
37,026
(12,549)
24,477
TOTAL ASSETS
1,523,665,704
(153,239,797)
1,370,425,907
CURRENT LIABILITIES and LONG-TERM LIABILITIES
1,439,633,857
(153,226,621)
1,286,407,236
Deposits
468,005,995
(1,581,263)
466,424,732
Securities Sold Under Repurchase Agreements
338,906,729
(9,741,010)
329,165,719
Funds from Acceptance and Issuance of Securities
183,328,583
(12,201,935)
171,126,648
2,774,240
Intangible
Deferred
Interbank Accounts
2,774,586
(346)
Interdepartmental Accounts
4,206,078
(88,027)
4,118,051
Borrowings
29,156,933
(4,023,490)
25,133,443
Domestic Onlending - Official Institutions
92,614,783
(1,928,755)
90,686,028
477
--
477
5,632,137
(1,330,618)
4,301,519
315,007,556
(122,331,177)
192,676,379
433,808
(13,176)
420,632
83,598,039
--
83,598,039
1,523,665,704
(153,239,797)
1,370,425,907
Foreign Onlending
Derivative Financial Instruments
Other Liabilities
DEFERRED INCOME
TOTAL LIABILITIES
15
st
1 quarter 2016
Restated statement of income
1st quarter/2015
Original report
Adjustments
Restated balances
50,422,332
(3,766,341)
46,655,991
29,321,943
(1,723,541)
27,598,402
257,455
(144,477)
112,978
16,973,308
(610,690)
16,362,618
903,370
(291,419)
611,951
Foreign exchange results
423,996
(118,816)
305,180
Compulsory investments
1,190,489
--
1,190,489
Loan operations
Securities
129,794
344,579
474,373
1,221,977
(1,221,977)
--
EXPENSES FROM FINANCIAL INTERMEDIATION
(45,569,488)
4,627,713
(40,941,775)
Deposits and securities sold under repurchase agreements
(23,556,530)
1,597,110
(21,959,420)
(15,076,205)
1,776,581
(13,299,624)
(213,723)
142,213
(71,510)
(20,943)
14,208
(6,735)
Financial income from insurance, pension plans and capitalization
Financial expenses from technical provisions of insurance, pension
plans and capitalization
OTHER OPERATING INCOME/EXPENSES
Service fee income
Bank fee income
(753,155)
753,155
--
(5,948,932)
344,446
(5,604,486)
4,852,844
861,372
5,714,216
(2,650,659)
(1,392,617)
(4,043,276)
4,654,219
(820,204)
3,834,015
1,655,246
(66,179)
1,589,067
Personnel expenses
(5,189,429)
288,565
(4,900,864)
(4,121,966)
385,120
(3,736,846)
Tax expenses
(1,845,556)
259,519
(1,586,037)
1,707,803
(710,361)
997,442
1,153,478
(1,153,478)
--
3,139,826
(495,985)
2,643,841
(3,804,280)
920,386
(2,883,894)
OPERATING INCOME
2,202,185
(531,245)
1,670,940
NON-OPERATING INCOME
5,770,561
1,357
5,771,918
5,844,393
(29,225)
5,815,168
(73,832)
30,582
(43,250)
PROFIT BEFORE TAXATION AND PROFIT SHARING
7,972,746
(529,888)
7,442,858
INCOME TAX AND SOCIAL CONTRIBUTION
(984,183)
492,117
(492,066)
EMPLOYEE AND DIRECTORS PROFIT SHARING
(765,309)
37,771
(727,538)
NON-CONTROLLING INTERESTS
(404,904)
--
(404,904)
NET INCOME
5,818,350
--
5,818,350
Equity in associates and subsidiaries
Financial income from insurance, pension plans and capitalization
Other operating income
Other operating expenses
Incomes
Expenses
Restated statement of cash flows
1st quarter/2015
CASH PROVIDED BY OPERATING ACTIVITIES
CASH USED IN BY INVESTING ACTIVITIES
Original report
Adjustments
Restated balances
8,923,601
(2,324,846)
6,598,755
(3,851,945)
663,119
(3,188,826)
CASH PROVIDED BY FINANCING ACTIVITIES
4,084,393
(43,081)
4,041,312
Increase (Decrease) in cash and cash equivalents
9,156,049
(1,704,808)
7,451,241
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1 quarter 2016
Restated statement of value added
1st quarter/2015
Income
Expenses From Financial Intermediation
Original report
Adjustments
Restated balances
56,834,174
(4,977,066)
51,857,108
(39,620,556)
4,283,267
(35,337,289)
(2,209,427)
Inputs Purchased from Third Parties
(2,452,747)
243,320
Gross Added Value
14,760,871
(450,479)
14,310,392
(1,115,099)
56,218
(1,058,881)
Value Added produced by Entity
13,645,772
(394,261)
13,251,511
1,707,803
(710,361)
997,442
Added Value to Distribute
15,353,575
(1,104,622)
14,248,953
Value Added Distributed
Value Added received through transfer
15,353,575
(1,104,622)
14,248,953
Personnel
5,306,743
(282,171)
5,024,572
Taxes, Rates and Contributions
3,477,735
(795,801)
2,681,934
Interest on Third Parties' Capital
345,842
(26,650)
319,192
6,223,255
--
6,223,255
Interest on Own Capital
4 - DESCRIPTION OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted by Banco do Brasil are applied consistently in all periods presented in these
financial statements and applied to all the entities of the Conglomerate.
a) Statement of income
In accrual basis accounting, revenues and expenses are reported in the closing process of the period in which they
are incurred, regardless of receipt or payment. The operations with floating rates are adjusted pro rata die, based on
the variation of the indexes agreed, and operations with fixed rates are recorded at future redemption value, adjusted
for the unearned income or prepaid expenses for future periods. The operations indexed to foreign currencies are
converted at the reporting date using current rates.
b) Present value measurement
Financial assets and liabilities are presented at present value due to the application of the accrual basis in the
recognition of their interest income and expenses.
Non-contractual liabilities are primarily represented by provisions for lawsuit and legal obligations, for which the
disbursement date is uncertain and is not under the Bank's control. They are measured at present value because
they are initially recognized at estimated disbursement value on the valuation date and are updated monthly.
c) Cash and cash equivalents
Cash and cash equivalents comprise available funds in local currency, foreign currency, investments in gold,
investments in repurchase agreements – own resources, interbank deposits and investments in foreign currencies,
with high liquidity and insignificant risk of change in fair value, with maturity at time of acquisition not exceeding 90
days.
d) Short-term interbank investments
Short-term interbank investments are recorded at their investment or acquisition amount, plus income accrued up to
the balance sheet date and adjustments for allowance for losses.
e) Securities
The securities purchased for the Bank's portfolio are recorded at the actual amount paid, including brokerage charges
and fees, and are classified based on management’s intention, in one of three categories, according to Bacen
Circular 3,068/2001:
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1 quarter 2016
Trading Securities: these are securities purchased to be actively and frequently traded. They are adjusted monthly to
market value. The increases and decreases in value are recorded in income and expense accounts for the period;
Securities available for sale: these are securities that may be traded at any time, but are not acquired to be actively
and frequently traded. They are adjusted monthly to market value and their increases and decreases in value are
recorded, net of tax effects, in Accumulated other comprehensive income in Shareholders' equity; and
Securities held to maturity: these are securities that the Bank owns and has the financial capacity and intent to hold
to maturity. These securities are not adjusted to market value. The Bank's financial capacity to hold to maturity is
supported by a cash flow projection that does not consider the possibility of sale of these securities.
The mark-to-market methodology used for securities was established following consistent, verifiable criteria, which
consider the average price of trading on the day of calculation or, if not available, the indicative price reported by
Anbima, or relationship between the unit price and the latest business value in the last 30 day, or the net expected
realizable value obtained through pricing models, using credit risk curves, future values of interest rates, foreign
exchange rates, price and currency indices, and similar financial instruments.
Income accrued on the securities, irrespective of the category in which they are classified, is appropriated on a pro
rata die basis on an accrual basis until the date of maturity or final sale, using the cumulative or straight-line method,
based on the contractual remuneration and purchase price, and recorded directly in the statement of income for the
period.
Impairment of securities classified as available for sale and held to maturity, if considered not to be temporary, are
recorded directly in expense for the period and a new cost basis for the asset is determined.
Upon sale, the difference between the sale amount and the cost of purchase plus accrued income is considered as a
result of the transaction and is recorded on the date of the transaction as a gain or loss on securities.
f) Derivative financial instruments
Derivative financial instruments are adjusted to market value at each monthly trial balance and balance sheet date.
Increases or decreases in value are recorded in the appropriate income or expense accounts.
The mark-to-market methodology used for derivative financial instruments was established following consistent and
verifiable criteria, which consider the average price of trading on the date of calculation or, if not available, pricing
models that estimate the expected net realizable value, or the price of a similar financial instrument, considering at
least, the payment or maturity date, the credit risk and currency or index.
Derivative financial instruments used to offset, in whole or in part, the risks arising from exposure to variations in the
market value or asset cash flow or financial liabilities, commitment or future transaction, are considered hedge
instruments and are classified according to their nature:
Market Risk Hedge: increases or decreases in value of the financial instruments, as well as of the hedged item, are
recorded in income/expense accounts for the period; and
Cash Flow Hedge: the effective portion of the increases or decreases in value of the derivative financial instruments
classified in this category are recorded, net of tax effects, in Accumulated other comprehensive income in
Shareholders' equity. The effective amount is that in which the variation of the hedged item, directly related to the
corresponding risk, is offset by the variation in the financial instrument used for the hedge, considering the
accumulated effect of the transaction. Other variations in these instruments are recorded directly in the statement of
income for the period.
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1 quarter 2016
g) Loan and leasing operations, advances on foreign exchange contracts, other receivables with
loan characteristics and allowance for loan losses
Loans, leases, advances on foreign exchange contracts and other receivables with loan characteristics are classified
according to Management's judgment with respect to the level of risk, taking into consideration market conditions,
past experience and specific risks in relation to the operation, to borrowers and guarantors, observing the parameters
established by CMN Resolution 2,682/1999, which requires periodic analyses of the portfolio and its classification into
nine levels, ranging from AA (minimum risk) to H (maximum risk), as well as the classification of operations more than
15 days overdue as non-performing. For atypical transactions with a term of more than 36 months, there is a double
counting on the days-past-due intervals defined for the nine levels of risk, as permitted by CMN Resolution
2,682/1999.
Income from loans overdue for more than 60 days, regardless of their risk level, will only be recognized as income
when effectively received.
Operations classified at level H, which remain in this classification for 180 days, are written off against the existing
allowance.
Renegotiated operations are maintained, at a minimum, at the same level at which they were rated on the date of
renegotiation. The renegotiations of loans already written off against the allowance are rated as H level and any gains
from renegotiation are recognized as income when effectively received. Reclassification to a lower risk category is
allowed when there is significant amortization of the operation or when new material facts justify a change in risk
level, according to CMN Resolution 2,682/1999.
Allowance for loan losses, considered sufficient by management, satisfies the minimum requirement established by
the aforementioned CMN Resolution 2,682/1999 (Note 10.e).
h) Taxes
Taxes are calculated based on the rates shown in the table below:
Taxes
Rate
Income Tax (15.00% + additional 10.00%)
25.00%
Social Contribution on Net Income (CSLL) (1)
20.00%
Social Integration Program/Public servant fund program (PIS/Pasep) (2)
Contribution to Social Security Financing - (Cofins) (2)
Tax on services of any kind - (ISSQN)
0.65%
4.00%
Up to 5.00%
(1) Rate applied to financial companies and to non-financial companies in the areas of private insurance and capitalization, since September 01, 2015
(the rate was 15% until August 31, 2015). In January 2019, the rate will return to 15%. For others non-financial companies, the CSLL rate is 9%.
(2) For non-financial firms that have opted for the non-cumulative regime of calculation, the PIS/PASEP rate is 1.65% and the Cofins rate is 7.6%.
Deferred tax assets (tax credits) and deferred tax liabilities are recorded by applying the current rates of taxes on
their respective bases. For the recording, maintaining and writing-off of deferred tax assets, the Bank follows the
established criteria by CMN Resolution 3,059/2002, amended by Resolutions CMN No. 3,355/2006, CMN 4,192/2013
and CMN 4,441/2015 and they are supported by a study of their realizability. Tax credits resulting from the increase
of the social contribution rate from 15% to 20% are being recognized in an amount sufficient for consumption by the
end of the term of the new rate (December 31, 2018), according to Law 13,169/2015.
i) Prepaid expenses
These expenses refer to the application of payments made in advance, for which the benefits or the services will
occur in subsequent periods. Prepaid expenses are recorded at cost and amortized as incurred.
j) Permanent assets
Investments: investments in subsidiaries and associates in which the Bank has significant influence or an ownership
interest of 20% or more of the voting shares, and in other companies which are part of a group or are under common
control are accounted for by the equity method based on the Shareholders’ equity of the subsidiary or associates.
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1 quarter 2016
In the consolidated financial statements, the subsidiaries are fully consolidated and the associates and joint ventures
are presented under the equity method.
Goodwill, the premium paid over the book value of the investment acquired due to expectations of future profitability,
is based on a financial-economic assessment which substantiate the purchase price of the business and is amortized
based on annual income projections as per the assessment. Goodwill is tested for impairment annually.
The statements of the branches and subsidiaries abroad are adapted to the prevailing accounting criteria in Brazil
and translated into Brazilian Reais using current exchange rates, in conformity with Bacen Circulars 2,397/1993 and
2,571/1995, and their impacts are recorded in the statement of income for the period.
Other permanent investments are valued at acquisition cost, less allowance for impairment losses, as applicable.
Property and equipment: property and equipment are stated at cost less depreciation, calculated using the straightline method at the following annual rates: buildings and improvements - 4%; vehicles - 20%; data processing systems
- 20% and others - 10% (Note 15).
Deferred: deferred assets are recorded at cost of acquisition or formation, net of accrued amortization. They are
composed mainly of restructuring costs, and the expenditures, up to September 30, 2008, with: third party properties,
as a result of opening branches, which are amortized according to rates based on rental terms, limited to 10 years;
and with the acquisition and development of information systems, which are amortized at 10% per annum (p.a.). New
values are not recorded in deferred assets, in accordance with Resolution CMN 3,617/2008. New values are not
recorded in deferred assets, in accordance with Resolution CMN 3,617/2008.
Intangible: intangible assets consist of rights over intangible assets used in the running of the Bank, including
acquired goodwill.
An asset meets the criteria for identification as an intangible asset, when it is separable, i.e, it can be separated from
the entity and sold, transferred or licensed, rented or exchanged, individually or jointly with a contract, related assets
or liabilities, regardless of the intention for use by the entity; or results from contractual rights or other legal rights,
regardless of whether these rights are transferable or separable from the entity or other rights and obligations.
Intangible assets with finite useful lives compromise: disbursements for the acquisition of rights to provide banking
services (rights to managing payrolls), amortized over the terms of contracts; goodwill paid on the acquisition of
merged company (Banco Nossa Caixa), amortized based on projections of annual results set in the economicfinancial study; software, amortized on a straight-line basis at a rate of 10% per year from the date it is available for
use. Intangible assets are adjusted by allowance for impairment losses, if applicable (Note 16). The amortization of
intangible assets is recorded in the Other administrative expenses account.
k) Impairment of non-financial assets
At the end of each reporting period, the Bank assesses whether there is any indication that a non-financial asset may
be impaired based on internal and external sources of information. If there is an indication that an asset may be
impaired, the Bank estimates the recoverable amount of the asset. The recoverable amount of the asset is the higher
of: i) its fair value less costs to sell it; and ii) its value in use.
The Bank tests, at least annually, the recoverable amount of intangible assets not yet available for use and goodwill
on acquisition of investments, regardless whether there is an indication of impairment or not. This test can be applied
any time during the year, provided it is performed at the same period every year.
If the recoverable amount of the asset is less than its carrying amount, the asset's carrying amount is reduced to its
recoverable amount through a provision for impairment, which is recognized in the Income statement.
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Methodologies in assessing the recoverable amount of the main non-financial assets:
Property and equipment in use
Land and buildings - in determining the recoverable amount of land and buildings, technical assessments are carried
out in accordance with the rules of the Brazilian Association of Technical Standards - ABNT.
Data processing systems - in determining the recoverability, the market value is considered, if it is available, or the
recoverable value for use in the operations of the Bank. Otherwise the calculation considers the projection of cash
flows arising from the use of each asset during its useful life, discounted to present value based on the rate of the
Interbank Deposit Certificate - CDI.
Other assets - although they are subject to impairment testing, other assets have little value individually and, given
the cost-effectiveness, the Bank does not assess the recoverable value of these items individually. However, the
Bank conducts inventory each year, and lost or damaged goods are properly derecognized.
Investments and goodwill on acquisition of investments
The methodology for calculating the recoverable amount of goodwill and investments for future profitability consists of
measuring the expected result of the investment using discounted cash flow (DCF). To measure this result, the
assumptions made are based on (i) operational projections, results and investment plans, (ii) macroeconomic
scenarios developed by the Bank, and (iii) internal methodology for calculating the cost of capital based on the
Capital Asset Pricing Model - CAPM.
Intangible
Rights to Managing Payrolls - The model for assessing the recoverable amount of the rights to managing payroll
involves monitoring contracts performance, that are calculated from the contribution margins of customer relationship
related to each contract in order to check if the projections that justified the acquisition of assets match the observed
performance. For the contracts that do not achieve the expected performance levels, a provision for impairment loss
is recognized.
Software - Software, substantially developed by the Bank in accordance with its needs, constantly receives
investments for modernization and adaptation to new technologies and business requirements. Considering that
there are no similar products on the market and considering the high cost to deploy metrics that allow calculation of
its value in use, the impairment test for software evaluates its usefulness to the company so that when software is
retired, its value is derecognized.
Goodwill on acquisition of merged company - The methodology for calculating the recoverable amount of goodwill on
the acquisition of Banco Nossa Caixa, merged into Banco do Brasil in November 2009, is to compare the value of the
goodwill paid, less the accumulated amortization, with the present value of the results of the Bank estimated for the
state of São Paulo, discounting the assets with finite useful lives. The projections are derived from the observed
results and assumptions of profitability growth for the Bank and are discounted at the rate of cost of capital calculated
using an internal methodology, based on Capital Asset Pricing Model – CAPM.
The losses recorded in the Statement of Income to adjust the recoverable value of these assets, if any, are stated in
the respective notes.
l) Employee benefits
Employee benefits related to short-term benefits for current employees are recognized on the accrual basis as the
services are provided. Post-employment benefits, comprising supplementary retirement benefits and medical
assistance for which the Bank is responsible, are assessed in accordance with criteria established by CPC 33 (R1) Employee benefits, approved by CVM Resolution 695/2012 (Note 26) and by the Resolution CMN 4,424/2015. The
evaluations are performed semiannually.
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1 quarter 2016
In defined-contribution plans, the actuarial risk and the investment risk are borne by the plan participants.
Accordingly, cost accounting is based on each period's contribution amount representing the Bank's obligation.
Consequently, no actuarial calculation is required when measuring the obligation or expense, and there are neither
actuarial gains nor losses.
In defined benefit plans, the actuarial risk and the investment risk value of plan assets fall either partially or fully on
the sponsoring entity. Accordingly, cost accounting requires the measurement of plan obligations and expenses, with
a possibility of actuarial gains and losses, leading to the register of a liability when the amount of the actuarial
obligation exceeds the value of plan assets, or an asset when the amount of assets exceeds the value of plan
obligations. In the latter instance, the asset should be recorded only when there is evidence that it can effectively
reduce the contributions from the sponsor or will be refundable in the future.
The Bank recognizes the components of defined benefit cost in the period in which the actuarial valuation was
performed, in accordance with criteria established by CPC 33 (R1) -Employee benefits, as follows:


the current service cost and the net interest on the net defined benefit liability (asset) are recognized in
profit or loss; and
the remeasurements of the net defined benefit liability (asset) are recognized in other comprehensive
income, in the Bank’s equity, net of tax effects.
Contributions to be paid by the Bank to medical assistance plans in some cases will continue after the employee’s
retirement. Therefore, the Banks obligations are evaluated by the present actuarial value of the contributions to be
paid over the expected period in which the plan participants and beneficiaries will be covered by the plan. Such
obligations are evaluated and recognized under the same criteria used for defined benefit plans.
m) Deposits and securities sold under repurchase agreements
Deposits and securities sold under repurchase agreements are recorded at the amount of the liabilities and include,
when applicable, related charges up to the balance sheet date, on a daily pro rata die basis.
n) Provisions, contingent assets and liabilities and legal obligations
The recognition, measurement and disclosure of provisions, contingent assets and liabilities and legal obligations are
made in accordance with the criteria defined by CPC 25 – Provisions, Contingent Assets and Contingent Liabilities,
approved by CMN Resolution 3,823/2009 (Note 27).
Contingent assets are not recognized in the financial statements however when there is evidence assuring their
realization, usually represented by the final judgment of the lawsuit and by the confirmation of the capacity for its
recovery by receipt or offsetting by another receivable, are recognized as assets.
Contingent liabilities are recognized in the financial statements when, based on the opinion of legal advisor and
Management, the risk of loss of legal or administrative proceedings is considered probable, with a probable outflow of
financial resource for the settlement of the obligation and when the amounts involved are measurable with sufficient
assurance, being quantified when judicial noticed and revised monthly as follows:
Aggregated Method: cases that are similar and recurring in nature and whose values are not considered relevant.
Provisions are based on statistical data. It covers civil, tax or labor judicial proceedings (except labor claims filed by
trade unions and all proceedings classified as strategic) with probable value of award, estimated by legal advisors, up
to R$ 1 million.
Individual Method: cases considered unusual or whose value is considered relevant by our legal counsel. Provisions
are based on: the amount claimed; probability of an unfavorable decision; evidence presented; evaluation of legal
precedents; other facts raised during the process; judicial decisions made during the course of the case; and the
classification and the risk of loss of legal actions.
Contingent liabilities considered as possible losses are not recognized in the financial statements, they are disclosed
in notes, while those classified as remote do not require provisioning or disclosure.
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1 quarter 2016
Legal obligations (fiscal and social security) are derived from tax obligations provided in the legislation, regardless of
the probability of success of lawsuits in progress, and have their amounts recognized in full in the financial
statements.
o) Debt instrument issue expense
Expenses related to transactions involving the issue of debt instruments are capitalized and presented as a reduction
of the corresponding liability. The expenses are recognized in the income statement over the term of the transaction.
p) Other assets and liabilities
Other assets are stated at their realizable amounts, including, when applicable, related income and monetary and
exchange variations on a pro rata die basis, and allowance for losses, when deemed appropriate. Other liabilities are
stated at their known and measurable amounts, plus, when applicable, related charges and monetary and exchange
variations on a pro rata die basis.
q) Earnings per share
Earnings per share is disclosed in accordance with CPC 41 – Earnings per Share, approved by Resolution
CVM 636/2010. The Bank's basic and diluted earnings per share were calculated by dividing the net profit attributable
to shareholders by the weighted average number of total common shares, excluding treasury shares (Note 23.f). The
Bank has no outstanding options, bonus of subscription nor its equivalents which provide their holders the right to
acquire shares. Thus, the basic and diluted earnings per share are equal.
5- INFORMATION BY SEGMENT
The segment information were prepared based on the criteria applied by the chief operating decision maker in
assessing performance, in deciding how to allocate resources for investment and other purposes, also considering
the regulatory environment and the similarities between goods and services. These information are prepared based
on internal management reports (Management Information), which are reviewed regularly by Management.
The accounting practices adopted in the Management Information are different from those presented in the
description of significant accounting policies of BB-Consolidated (Note 4.j) because the investments in joint ventures
are consolidated proportionally to the holdings by the Bank.
The Bank's operations are mainly made in Brazil. They are basically divided into five segments: banking,
investments, fund management, insurance (insurance, pension and capitalization) and payment methods. In addition,
the Bank participates in other business activities, such as consortium and other services, that were aggregated in
"Other Segments".
The measurement of managerial income and of managerial assets and liabilities by segment takes into account all
income and expenses as well as all assets and liabilities recorded by the companies that comprise each segment, as
presented in Note 3. There are no common income or expenses nor common assets or liabilities allocated between
the segments, for any distribution criteria.
Transactions between segments are eliminated in the column “Intersegment transactions”. They are conducted under
terms and rates consistent with those applied with third parties, when applicable. These transactions do not involve
payment risks.
Revenues from transactions with a single customer does not amount to ten percent or more of the Bank’s revenues.
a) Banking segment
Responsible for the most significant portion of Banco do Brasil results, predominantly from operations in Brazil, this
segment involves a large diversity of products and services, such as deposits, loans and services that are made
available to customers by means of a wide variety of distribution channels, located in the country and abroad.
23
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1 quarter 2016
The operations of the banking segment include business with the retail, wholesale and government markets, carried
out through the branch network and customer service teams, and business with micro-entrepreneurs and the with the
low income population, undertaken through banking correspondents.
b) Investments segment
Responsible for operations in the domestic capital markets, being active in the intermediation and distribution of
debts in the primary and secondary markets, as well as being responsible for equity investments and the rendering of
some financial services.
The income from financial intermediation of this segment is a result of the revenues accrued on investments in
securities less the interest expenses on funding from third parties. The principal equity investments are those in the
associates and subsidiary companies. Financial service fee income is derived from economic/financial advisory
services and the underwriting of fixed and variable income.
c) Fund management segment
Responsible for operations inherent to the purchase, sale and custody of securities, portfolio management, and
management of investment funds and clubs. Revenues mainly derived from commissions and management fees
charged to investors for services rendered.
d) Insurance, pension, and capitalization segment
In this segment, the products and services offered are related to life, property and automobile insurance,
complementary private pension plans and capitalization plans.
Income is derived mainly from revenues from insurance premiums issued, contributions for private pension plans,
capitalization bonds and investments in securities, net of commercialization expenses, technical provisions and
expenses related to benefits and redemptions.
e) Payment methods segment
This segment is responsible for the funding, transmission, processing and settlement of operations via electronic
means.
Revenues are derived mainly from commissions and management fees charged to commercial and banking
establishments for the services rendered, as well as income from rent, installation and maintenance of electronic
terminals.
f) Other segments
Other segments comprise the consortium and other services segments, which have been aggregated as they are not
individually significant.
Their revenues are originated mainly from rendering services not covered in previous segments, such as: credit
recovery; consortium administration; development, manufacture, commercialization, rent and integration of digital
electronic systems and equipment, peripherals, programs, inputs and computing supplies; and intermediation of air
tickets, lodging and organization of events.
24
st
1 quarter 2016
g) Breakdown of managerial income by segment
Banking
Income from loans and leases
Loans and discounted securities
Financing
Leasing
Other
Securities
Interbank investments
Fixed-income securities
Variable-income securities
Income from exchange operations and Compulsory deposits
Financial results from insurance, pension and capitalization operations
Investments
Fund Menagement
1st quarter/2016
Insurance, pension
Payment methods
and capitalization
1,730,122
87,007
----------32,810
87,007
--32,810
87,007
--------1,697,312
--
24,701
-----24,616
9,636
11,497
3,483
-85
---
Intersegment
transactions
(126,013)
(18,385)
(268)
--(18,117)
(129,250)
(129,558)
308
--(88)
-21,710
Management
Information
37,590,028
22,225,134
13,339,117
6,309,178
117,923
2,458,916
11,884,467
10,395,769
3,759,528
(2,270,830)
(401,761)
1,960,547
202,619
1,719,022
Other Segments
35,810,189
22,243,519
13,339,385
6,309,178
117,923
2,477,033
11,804,851
10,495,465
3,624,177
(2,314,791)
(401,350)
1,960,550
202,619
--
43,953
-----44,364
297
3,013
41,054
(411)
----
20,069
-----20,069
19,929
716
(576)
-----
(28,097,523)
(24,970,499)
(6,471,385)
(11,347,428)
(6,278,641)
(687,573)
(185,472)
4,094,748
(7,212,935)
(8,837)
--
(103,909)
(99,776)
(99,776)
-----(4,133)
---
(4)
-------(4)
---
(1,166,932)
---------(1,166,932)
------------
(30,135)
(30,276)
--(27,956)
-(2,320)
-141
---
213,141
187,938
106,896
81,015
27
--25,203
----
(29,185,362)
(24,912,613)
(6,464,265)
(11,266,413)
(6,306,570)
(687,573)
(187,792)
4,119,951
(7,216,931)
(8,837)
(1,166,932)
7,552,168
2,522,675
41,551
575,421
31,836
1,873,867
1,895,733
(1,249)
-3,135,009
278,204
154,963
---154,963
13,269
(4,988)
-114,960
391,607
285,688
-249,448
-36,240
102,436
--3,483
1,717,935
546,946
-322,641
215,760
8,545
-848
1,086,593
83,548
1,510,286
1,274,670
1,253,940
--20,730
-(37,969)
-273,585
615,698
342,065
-480
-341,585
-61
-273,572
(585,042)
(344,190)
-(1,856)
-(342,334)
--52,033
(292,885)
11,480,856
4,782,817
1,295,491
1,146,134
247,596
2,093,596
2,011,438
(43,297)
1,138,626
3,591,272
(13,360,760)
(5,213,804)
(2,955,525)
(811,638)
(281,568)
(1,266,956)
(2,831,269)
(140,533)
(17,977)
(15,514)
(27,310)
(859)
(14,269)
(64,604)
(76,285)
(21,120)
(12,620)
--(27,059)
(15,486)
(658,377)
(138,544)
(175,098)
(28,324)
(4,733)
(175,483)
(136,195)
(905,010)
(77,276)
(145,127)
(37,873)
(4,049)
(146,978)
(493,707)
(369,891)
(89,002)
(74,422)
(555)
(2,509)
(52,835)
(150,568)
497,914
2,145
349,115
---146,654
(15,012,942)
(5,555,578)
(3,029,191)
(905,700)
(293,718)
(1,683,580)
(3,545,175)
Profit before tax and profit sharing
1,904,074
77,715
335,387
1,622,748
692,283
240,373
--
4,872,580
Income tax and social contribution
Profit sharing
Non-controlling Interests
(663,484)
(328,678)
(67,618)
(28,457)
---
(150,729)
(461)
--
(641,009)
(4,811)
(321,858)
(240,155)
26
--
(65,985)
(310)
--
----
(1,789,819)
(334,234)
(389,476)
844,294
49,258
184,197
655,070
452,154
174,078
--
2,359,051
Expenses of market funding
Deposits
Acceptance and issuance of securities
Subordinated debt abroad and Equity and debt hybrid securities
Other
Loans, assignments, onlending and leases
Allowance/Reversal for loan losses
Interest and inflation adjustment of technical reserves
Other Income
Income from service fees
Card income
Fund Management
Insurance, pension and capitalization
Other
Income from fees, rates and commissions
Equity in the earnings/(loss) of subsidiaries and associates
Results from insurance, pension plan and capitalization operations
Other
Other expenses
Personnel expenses
Amortization
Depreciation
Tax expenses
Other
Net Income
25
st
1 quarter 2016
Banking
Loans and Discounted Securities
Financing
Leasing
Other
Securities
Interbank Investments
Deposits
Other
Other Income
Card income
Fund Management
Other
Other
Other expenses
Personnel expenses
Amortization
Depreciation
Tax expenses
Other
Profit sharing
Net Income
Investments
Fund Menagement
1st quarter/2015
Insurance,
pension and
Payment methods
capitalization
1,203,928
27,326
----------3,050
27,326
--3,050
27,326
--------1,200,878
--
49,130,848
29,577,109
12,923,363
13,231,354
257,455
3,164,937
16,905,993
8,843,157
3,950,650
4,112,186
903,505
1,614,447
129,794
--
40,346
-----40,660
464
2,169
38,027
(314)
----
19,225
-----19,225
15,509
4,443
(727)
-----
(43,157,206)
(23,602,189)
(7,888,189)
(9,539,661)
(5,339,533)
(653,273)
(181,533)
(13,588,318)
(5,945,756)
(20,943)
--
(67,631)
(63,574)
(63,574)
-----(4,057)
---
(15)
-------(15)
---
(753,155)
---------(753,155)
7,098,433
2,740,474
450,245
518,173
34,601
1,737,455
1,558,689
(4,715)
-2,803,985
305,767
204,558
---204,558
8,684
(1,649)
-94,174
350,432
260,179
-226,884
-33,295
87,873
--2,380
(13,073,173)
(4,942,156)
(2,973,176)
(762,834)
(272,054)
(967,546)
(3,155,407)
(140,639)
(15,470)
(18,012)
(23,759)
(770)
(20,103)
(62,525)
(1,098)
Other Segments
Intersegment
transactions
Management
Information
37,649
-----37,228
7,261
1,769
28,198
179
242
---
(36,990)
2,289
(256)
(49)
-2,594
(60,174)
(86,808)
26,634
--(204)
-21,099
50,422,332
29,579,398
12,923,107
13,231,305
257,455
3,167,531
16,973,308
8,779,583
4,016,041
4,177,684
903,370
1,614,485
129,794
1,221,977
(130)
-------(130)
---
(8,968)
(9,994)
--(9,994)
---1,026
---
125,120
119,227
67,359
75,189
37
-(23,358)
5,893
----
(43,861,985)
(23,556,530)
(7,884,404)
(9,464,472)
(5,349,490)
(653,273)
(204,891)
(13,582,425)
(5,948,932)
(20,943)
(753,155)
1,706,657
476,888
-258,401
217,016
1,471
-786
1,094,030
134,953
7,029,458
989,726
945,451
--44,275
-241
-6,039,491
550,476
338,634
---338,634
-5,637
-206,205
(540,651)
(356,240)
-(1,905)
-(354,335)
--59,448
(243,859)
16,500,572
4,654,219
1,395,696
1,001,553
251,617
2,005,353
1,655,246
300
1,153,478
9,037,329
(70,166)
(19,423)
(12,903)
--(24,286)
(13,554)
(620,171)
(130,696)
(176,604)
(18,802)
(4,756)
(146,925)
(142,388)
(1,300,046)
(68,188)
(88,300)
(22,901)
(6,532)
(633,909)
(480,216)
(336,499)
(78,270)
(63,092)
(703)
(1,989)
(52,787)
(139,658)
452,521
1,946
325,221
---125,354
(15,088,173)
(5,252,257)
(3,006,866)
(828,999)
(286,101)
(1,845,556)
(3,868,394)
137,843
299,476
1,537,259
5,756,608
242,658
--
7,972,746
1,774,847
(752,041)
(84,678)
(52,626)
---
(118,756)
(389)
--
(559,717)
(10,698)
(320,221)
(1,952,469)
(746)
--
(75,462)
(1,435)
(5)
----
(984,183)
(765,309)
(404,904)
937,030
85,217
180,331
646,623
3,803,393
165,756
--
5,818,350
26
st
1 quarter 2016
h) Breakdown of managerial assets and liabilities by segment
Banking
Current assets and long-term receivables
Securities
Trading securities
Securities available for sale
Securities held to maturity
Interbank and interdepartmental accounts
Loan Operations and Leasing transactions, net of allowance for losses
Financing
Other receivables with loan characteristics
Leasing
Loan operations
Other receivables and leasing transactions
Other receivables
Other assets
Investments
Fund Menagement
Mar 31, 2016
Insurance,
pension and
Payment methods
capitalization
151,368,858
11,817,545
238,666
143,614
1,162,527
1,650,247
136,025,095
2,934,824
127,382,838
102
31,198
-8,611,059
2,934,722
-31,792
---7
-------7
------9,541,937
7,031,066
4,400,633
25,995
1,413,320,041
22,338,269
372,950,724
128,637,025
7,441,115
119,942,885
1,253,025
5,027,876
70,659,907
632,512,757
245,379,727
421,775,671
320,639
835,371
(35,798,651)
(35,730,708)
(67,943)
180,392,054
801,429
2,332,928
14,609
5,694
1,507,527
65,603
1,441,924
-650
---------786,775
17,673
812,015
1,586
402,830
7,722
-17
7,705
----------398,683
1,194
30,035,945
14,184,565
14,010,599
246,907
(72,941)
7,152,334
8,677,308
21,738
4,802,585
4,770,445
3,465,234
1,309,962
(4,751)
20,549
11,591
--
23,682
23,682
-23,700
(18)
----
718,691
155,622
108,049
60,684
(13,111)
139,954
423,115
--
TOTAL ASSETS
1,443,355,986
7,135,513
835,697
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
Technical provisions for insurance, pension plans and capitalization
Subordinated debts and equity and debt hybrid securities
Other
1,360,756,972
455,568,369
377,290,100
186,579,543
6,381,118
26,827,121
89,869,445
5,019,457
213,221,819
-61,981,467
151,240,352
3,926,183
3,412,963
---154,951
-715
357,554
--357,554
473,895
Permanent assets
Investments
Investments in subsidiaries and associates
Other investments
Accumulated Impairment
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Other Segments
Intersegment
transactions
Management
Information
6,842,337
10,219
285,746
985,427
985,427
----2,953,036
2,953,036
------2,545,277
62,632
(13,233,936)
(24,801)
(6,594,714)
(2,059,758)
(664,274)
(1,395,484)
-(1,366)
-(3,010,502)
(2,961,829)
(48,673)
-----(1,541,863)
(932)
1,573,259,788
22,722,162
369,863,054
268,037,862
135,210,811
120,020,540
12,806,511
5,058,952
70,659,907
632,455,298
245,370,934
421,726,998
320,639
835,378
(35,798,651)
(35,730,708)
(67,943)
199,153,929
5,308,624
1,079,656
702,126
726,191
1,265
(25,330)
228,102
149,428
--
353,065
290,949
-290,949
-56,078
6,038
--
(16,678,007)
(16,678,007)
(16,678,007)
------
20,335,617
3,449,382
1,632,066
1,933,467
(116,151)
7,597,017
9,267,480
21,738
152,087,549
12,897,201
7,195,402
(29,911,943)
1,593,595,405
519,872
-------519,872
--519,872
144,804,064
394
------144,803,670
137,848,805
-6,954,865
6,210,239
--1,406,377
-1,335,922
--3,467,940
--3,467,940
3,687,202
--3,145,632
-61,071
--480,499
--480,499
(10,937,881)
(3,651,856)
(5,514,532)
--(57,450)
-(1,365)
(1,712,678)
(11,112)
-(1,701,566)
1,508,966,651
455,329,870
371,775,568
191,131,552
6,381,118
28,321,615
89,869,445
5,018,807
361,138,676
137,837,693
61,981,467
161,319,516
--
--
--
--
--
(932)
472,963
82,125,119
3,209,330
315,825
7,283,485
6,686,962
3,508,200
(18,973,130)
84,155,791
1,443,355,986
7,135,513
835,697
152,087,549
12,897,201
7,195,402
(29,911,943)
1,593,595,405
27
st
1 quarter 2016
Banking
Securities
Trading securities
Financing
Leasing
Loan operations
Other receivables
Other assets
Investments
Fund Menagement
Dec 31, 2015
Insurance,
pension and
Payment methods
capitalization
146,093,675
12,747,355
180,153
173,296
1,668,826
525,161
129,887,846
3,901,426
114,352,196
325,744
3,417,303
1,055,790
12,118,347
2,519,892
-61,268
------------------10,574,438
8,071,210
3,782,412
14,994
1,409,073,850
18,133,602
361,260,988
124,492,021
9,306,703
111,259,972
3,925,346
4,637,397
66,042,169
650,686,508
255,485,376
428,031,499
333,291
971,490
(34,135,148)
(34,072,735)
(62,413)
183,060,716
760,449
2,329,479
7,929
5,516
1,426,399
85,061
1,341,338
-1,278
---------868,725
19,632
1,240,081
77
910,185
16,685
9,638
21
7,026
----------312,199
935
29,586,286
12,900,909
12,718,420
255,374
(72,885)
7,314,359
9,347,037
23,981
4,494,814
4,461,766
3,209,678
1,256,839
(4,751)
21,710
11,338
--
23,682
23,682
1
23,700
(19)
----
704,052
250,811
196,509
63,803
(9,501)
114,139
339,102
--
TOTAL ASSETS
1,438,660,136
6,824,293
1,263,763
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
Other
1,358,397,939
465,860,141
352,869,871
197,760,042
5,511,011
31,574,204
91,908,322
4,747,983
208,166,365
-64,907,232
143,259,133
3,937,451
3,014,721
-788
-101,068
-251
820,623
--820,623
1,132,134
-------1,132,134
--1,132,134
Permanent assets
Investments
Other investments
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Other Segments
Intersegment
transactions
Management
Information
7,173,216
5,501
377,959
621,833
467,560
154,273
---3,212,445
3,212,445
------2,891,602
63,876
(15,830,164)
(142,051)
(6,287,566)
(2,170,536)
(270,266)
(1,900,184)
(86)
(1,873)
-(3,284,977)
(3,222,024)
(62,953)
-----(3,942,715)
(446)
1,562,827,492
18,358,507
358,461,069
258,175,674
124,276,636
115,328,513
18,570,525
4,698,070
66,042,169
650,613,976
255,475,797
427,968,546
333,291
971,490
(34,135,148)
(34,072,735)
(62,413)
201,836,175
4,641,852
1,078,740
550,904
508,230
42,982
(308)
358,915
168,921
--
360,083
296,361
-296,361
-57,212
6,510
--
(15,036,138)
(15,036,138)
(15,036,138)
------
21,211,519
3,448,295
1,596,700
1,939,059
(87,464)
7,866,335
9,872,908
23,981
146,797,727
13,826,095
7,533,299
(30,866,302)
1,584,039,011
140,402,507
386
------140,402,121
131,546,178
-8,855,943
7,536,739
462
-479,284
-2,355,094
--4,701,899
--4,701,899
4,136,328
--3,447,244
-48,073
-4
641,007
--641,007
(13,522,313)
(3,557,918)
(5,393,427)
--(72,511)
-(1,872)
(4,496,585)
(14,032)
-(4,482,553)
1,502,020,785
465,317,792
347,476,444
201,687,358
5,511,011
34,005,928
91,908,322
4,746,366
351,367,564
131,532,146
64,907,232
154,928,186
482,500
--
--
--
--
--
(447)
482,053
79,779,697
2,886,842
131,629
6,395,220
6,289,356
3,396,971
(17,343,542)
81,536,173
1,438,660,136
6,824,293
1,263,763
146,797,727
13,826,095
7,533,299
(30,866,302)
1,584,039,011
28
st
1 quarter 2016
Banking
Securities
Trading securities
Financing
Leasing
Loan operations
Other receivables
Other assets
Investments
Fund Menagement
Mar 31, 2015
Insurance,
pension and
Payment methods
capitalization
120,709,265
14,362,110
190,659
189,786
1,621,110
77,356
106,419,976
3,598,542
92,672,701
892,701
2,694,351
15,762
11,052,924
2,690,079
--------------------9,699,687
10,474,818
2,777,833
21,608
1,369,887,099
16,167,215
353,533,246
121,353,586
11,670,453
105,515,214
4,167,919
3,754,142
64,682,415
631,638,959
250,439,283
407,564,291
348,603
1,054,153
(27,767,371)
(27,725,380)
(41,991)
177,889,505
868,031
2,183,880
23,868
5,013
1,420,943
69,522
1,351,421
-1,209
---------700,706
32,141
573,736
866
360,955
26,971
20,417
27
6,527
----------184,007
937
30,605,113
13,306,041
13,153,130
223,847
(70,936)
7,052,846
10,211,101
35,125
4,064,553
4,035,487
2,845,232
1,195,006
(4,751)
19,721
9,345
--
22,088
22,088
-22,107
(19)
----
745,689
271,918
220,985
60,184
(9,251)
81,375
392,396
--
TOTAL ASSETS
1,400,492,212
6,248,433
595,824
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
Other
1,318,270,716
468,494,486
341,891,500
181,401,383
6,980,664
27,657,721
92,615,260
5,633,347
193,596,355
-59,247,640
134,348,715
3,054,396
2,001,958
-1,398
-67,073
-18
983,949
--983,949
283,859
-------283,859
--283,859
Permanent assets
Investments
Other investments
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Other Segments
Intersegment
transactions
Management
Information
4,127,382
2,544
306,023
498,798
398,355
100,443
-366
-1,610,773
1,610,773
------1,657,645
51,233
(10,032,452)
(38,334)
(4,245,527)
(1,074,114)
(306,828)
(519,291)
(247,995)
(1,227)
-(1,707,552)
(1,617,081)
(48,741)
(41,730)
----(2,964,761)
(937)
1,501,811,020
16,536,604
351,658,176
232,244,702
105,417,321
109,157,927
17,669,454
3,754,490
64,682,415
631,542,180
250,432,975
407,515,550
306,873
1,054,153
(27,767,371)
(27,725,380)
(41,991)
197,641,607
3,750,846
1,068,643
645,108
536,758
119,141
(10,791)
311,910
109,724
1,901
298,580
253,231
-253,231
-38,265
7,084
--
(14,949,982)
(14,948,961)
(14,948,794)
(167)
--(1,021)
--
21,854,684
3,584,912
1,807,311
1,873,349
(95,748)
7,504,117
10,728,629
37,026
121,454,954
15,430,753
4,425,962
(24,982,434)
1,523,665,704
114,935,502
435
------114,935,067
108,989,098
-5,945,969
9,779,463
----2,330,576
--7,448,887
--7,448,887
2,446,933
--1,925,802
-6,307
--514,824
--514,824
(9,137,012)
(2,490,884)
(2,984,771)
--(904,744)
-(1,228)
(2,755,385)
(7,396)
(169,517)
(2,578,472)
1,439,633,857
468,005,995
338,906,729
183,328,583
6,980,664
29,156,933
92,615,260
5,632,137
315,007,556
108,981,702
59,078,123
146,947,731
434,744
--
--
--
--
--
(936)
433,808
81,786,752
3,194,037
311,965
6,519,452
5,651,290
1,979,029
(15,844,486)
83,598,039
1,400,492,212
6,248,433
595,824
121,454,954
15,430,753
4,425,962
(24,982,434)
1,523,665,704
29
st
1 quarter 2016
i) Reconciliation of managerial income by segment with the accounting income
37,590,028
22,225,134
13,339,117
6,309,178
117,923
2,458,916
11,884,467
10,395,769
3,759,528
(2,270,830)
(401,761)
1,960,547
202,619
1,719,022
(1,551,592)
(1,717,972)
(363,162)
(1,221,514)
(23,076)
(110,220)
(373,594)
(203,105)
(165,475)
(5,014)
98,966
59,906
381,102
--
---------------
---------------
1st quarter/2016
Adjustments
Insurance, pension
and capitalization
(1,701,045)
-----(3,733)
-(3,733)
----(1,697,312)
(29,185,362)
(24,912,613)
(6,464,265)
(11,266,413)
(6,306,570)
(687,573)
(187,792)
4,119,951
(7,216,931)
(8,837)
(1,166,932)
1,123,260
976,966
62,357
514,928
398,610
-1,071
56,392
89,902
---
------------
------------
11,480,856
4,782,817
1,295,491
1,146,134
247,596
2,093,596
2,011,438
(43,297)
1,138,626
3,591,272
(494,711)
(58,932)
(7,932)
(11,807)
59,382
(98,575)
(72,780)
46,274
-(409,273)
189,816
------294,253
-(104,437)
(15,012,942)
(5,555,578)
(3,029,191)
(905,700)
(293,718)
(1,683,580)
(3,545,175)
816,591
172,154
132,957
3,154
3,853
48,782
455,691
4,872,580
Management
Information
Financing
Leasing
Other
Securities
Deposits
Other
Other Income
Card income
Fund Management
Other
Other
Other expenses
Personnel expenses
Amortization
Depreciation
Tax expenses
Other
Profit sharing
Net Income
BB Consolidated
35,071
-----35,071
-35,071
------
(4,893)
-----(4,893)
(7)
(1,403)
(3,483)
-----
Intersegment
transactions
(22,364)
-----(654)
-(654)
----(21,710)
1,166,932
---------1,166,932
------------
------------
(8,434)
(8,434)
(6,570)
(1,864)
--------
(26,903,604)
(23,944,081)
(6,408,478)
(10,753,349)
(5,907,960)
(687,573)
(186,721)
4,176,343
(7,127,029)
(8,837)
--
-----------
(429,955)
59,083
-(322,641)
390,269
(8,545)
-598,897
(1,086,593)
(1,342)
(1,346,534)
(1,274,542)
(1,253,940)
--(20,602)
-127,998
-(199,990)
(5,150)
(168)
---(168)
-(61)
-(4,921)
114,081
110,857
-1,856
-109,001
--(52,033)
55,257
9,508,403
3,619,115
33,619
813,542
697,247
2,074,707
1,938,658
1,024,064
-2,926,566
60,353
4,729
3,787
392
859
1,938
48,648
--------
486,795
126,490
125,427
26,036
4,685
110,600
93,557
878,530
76,537
144,823
37,873
4,049
135,029
480,219
3,637
-1,072
--66
2,499
(83,283)
-(62,280)
---(21,003)
(12,850,319)
(5,175,668)
(2,683,405)
(838,245)
(280,272)
(1,387,165)
(2,485,564)
(106,452)
250,169
--
(477,273)
(432,933)
(6,406)
--
4,099,685
(1,789,819)
(334,234)
(389,476)
111,360
23,132
--
(487)
---
----
452,383
4,811
--
181,288
(26)
--
434
---
----
(1,044,841)
(306,317)
(389,476)
2,359,051
28,040
249,682
--
(20,079)
(251,671)
(5,972)
--
2,359,051
Banking
Investments
Fund Menagement
Payment methods
Other Segments
34,345,205
20,507,162
12,975,955
5,087,664
94,847
2,348,696
11,536,664
10,192,657
3,623,334
(2,279,327)
(302,795)
2,020,453
583,721
--
30
st
1 quarter 2016
50,422,332
29,579,398
12,923,107
13,231,305
257,455
3,167,531
16,973,308
8,779,583
4,016,041
4,177,684
903,370
1,614,485
129,794
(2,496,055)
(1,868,064)
(328,255)
(988,571)
(144,477)
(406,761)
(562,335)
(153,630)
(404,363)
(4,342)
(291,419)
(118,816)
344,579
--------------
--------------
1st quarter/2015
Adjustments
Insurance,
pension and
capitalization
(1,203,928)
-----(3,050)
-(3,050)
-----
1,221,977
--
--
--
(43,861,985)
(23,556,530)
(7,884,404)
(9,464,472)
(5,349,490)
(653,273)
(204,891)
(13,582,425)
(5,948,932)
(20,943)
(753,155)
2,146,430
1,576,590
53,071
394,388
1,127,557
-1,574
211,291
344,341
14,208
--
------------
16,500,572
4,654,219
1,395,696
1,001,553
251,617
2,005,353
1,655,246
300
(308,617)
(54,416)
(6,529)
(11,118)
69,509
(106,278)
(66,179)
68,423
Management
Information
Financing
Leasing
Other
Securities
Financial results from insurance, pension and capitalization
operations
Deposits
Other
Other Income
Card income
Fund Management
Other
Results from insurance, pension plan and capitalization
operations
Other
Other expenses
Personnel expenses
Amortization
Depreciation
Tax expenses
Other
Banking
Fund
Menagement
Investments
Payment methods
Other Segments
BB Consolidated
Intersegment
transactions
11,025
-----11,025
-11,025
-----
(29,188)
-5,892
--(5,892)
(29,188)
-(990)
(28,198)
----
(48,195)
46
(5,892)
49
-5,889
(27,142)
-(27,142)
-----
46,655,991
27,711,380
12,594,852
12,242,783
112,978
2,760,767
16,362,618
8,625,953
3,591,521
4,145,144
611,951
1,495,669
474,373
(1,200,878)
--
--
(21,099)
--
------------
753,155
---------753,155
130
-------130
---
(25)
-------(25)
---
20,520
20,520
(3,059)
218
--23,361
-----
(40,941,775)
(21,959,420)
(7,834,392)
(9,069,866)
(4,221,933)
(653,273)
(179,956)
(13,371,134)
(5,604,486)
(6,735)
--
194,706
------264,514
---(190)
-190
---
(390,752)
114,793
-(258,401)
374,665
(1,471)
-604,685
(1,166,318)
(989,616)
(945,451)
--(44,165)
-65,157
(7,097)
(135)
---(135)
-(5,637)
57,039
109,170
-1,905
-107,265
---
14,879,533
3,834,015
443,716
733,749
695,791
1,960,759
1,589,067
997,442
1,153,478
--
--
--
(1,094,030)
--
--
(59,448)
--
9,037,329
(256,445)
(69,808)
--
(16,200)
(241,859)
(1,325)
7,317
8,459,009
(15,088,173)
(5,252,257)
(3,006,866)
(828,999)
(286,101)
(1,845,556)
(3,868,394)
715,477
158,090
133,005
2,428
2,507
58,350
361,097
56,045
4,340
5,888
295
770
1,821
42,931
--------
432,871
121,345
118,175
16,047
4,739
101,359
71,206
761,287
67,617
88,186
22,901
6,532
97,682
478,369
966
-580
--307
79
(29,364)
-(16,933)
---(12,431)
(13,150,891)
(4,900,865)
(2,677,965)
(787,328)
(271,553)
(1,586,037)
(2,927,143)
7,972,746
57,235
250,751
--
(408,654)
(393,876)
(35,344)
--
7,442,858
Profit sharing
(984,183)
(765,309)
(404,904)
(40,805)
26,327
--
2,649
---
----
379,917
10,698
--
150,813
746
--
(457)
---
----
(492,066)
(727,538)
(404,904)
5,818,350
42,757
253,400
--
(18,039)
(242,317)
(35,801)
--
5,818,350
Net Income
31
st
1 quarter 2016
j) Reconciliation of managerial assets and liabilities by segment with the accounting assets and liabilities
1,573,259,788
22,722,162
369,863,054
268,037,862
135,210,811
120,020,540
12,806,511
5,058,952
70,659,907
(45,221,882)
(104,269)
(7,759,817)
(15,558,688)
(900,005)
(13,764,330)
(894,353)
(1,459,449)
(220,771)
(200,877)
(56)
-(50,891)
(2,215)
(48,676)
----
----------
Mar 31, 2016
Adjustments
Insurance,
pension and
capitalization
(148,343,958)
(238,638)
(129,809)
(135,362,207)
(126,719,950)
(31,198)
(8,611,059)
---
632,455,298
(21,641,677)
--
--
245,370,934
421,726,998
320,639
835,378
(35,798,651)
(35,730,708)
(67,943)
199,153,929
5,308,624
(4,839,281)
(18,238,442)
-(79,446)
1,515,492
1,506,602
8,890
1,811,218
(288,429)
-------(132,257)
(17,673)
----------
20,335,617
3,449,382
1,632,066
1,933,467
(116,151)
7,597,017
9,267,480
21,738
3,826,997
3,927,369
3,961,546
(57,856)
23,679
(48,928)
(44,390)
(7,054)
(65,535)
(33,395)
1,272,742
(1,306,137)
-(20,549)
(11,591)
--
TOTAL ASSETS
1,593,595,405
(41,394,885)
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
Technical provisions for insurance, pension plans and
capitalization
Other
1,508,966,651
455,329,870
371,775,568
191,131,552
6,381,118
28,321,615
89,869,445
5,018,807
361,138,676
(41,309,845)
(1,452,293)
(18,276,304)
(10,429,849)
(17,389)
(1,648,813)
(1,786,648)
(1,383,165)
(6,315,384)
137,837,693
61,981,467
161,319,516
472,963
Management
Information
Securities
Trading securities
Loan Operations and Leasing transactions, net of allowance for
losses
Financing
Leasing
Loan operations
Other receivables
Other assets
Permanent assets
Investments
Other investments
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Banking
Fund
Menagement
Investments
Payment methods
Other Segments
BB Consolidated
Intersegment
transactions
(7,765,333)
(143,587)
(1,080,534)
446,966
--446,966
(31,792)
--
(261,443)
(404)
(172)
(146,837)
(146,837)
-----
2,038,462
9,630
909,095
687,964
663,226
24,738
----
1,373,504,757
22,244,838
361,801,817
118,054,169
8,105,030
106,201,074
3,748,065
3,567,711
70,439,136
--
(7)
--
48,673
610,862,287
-------(8,212,671)
(4,400,633)
---(7)
---(6,930,384)
(25,995)
-------(81,994)
(32,036)
-48,673
-----383,100
--
240,531,653
403,537,229
320,639
755,925
(34,283,159)
(34,224,106)
(59,053)
185,990,941
543,858
---------
5,355,830
5,918,897
5,966,470
(60,684)
13,111
(139,952)
(423,115)
--
12,912
390,442
366,377
(1,035)
25,100
(228,102)
(149,428)
--
(290,922)
(290,922)
-(290,922)
-----
2,201,999
2,201,999
2,201,999
------
31,376,898
15,563,772
15,401,200
216,833
(54,261)
7,159,486
8,638,956
14,684
(266,412)
--
(142,988,128)
(7,752,421)
(552,365)
4,240,461
1,404,881,655
(266,412)
----(154,951)
--(111,461)
----------
(142,935,930)
-------(142,935,930)
(5,668,225)
--(1,406,377)
-(1,335,922)
--(2,925,926)
(27,018)
-------(27,018)
1,513,113
161,168
909,095
--48,656
--394,194
1,320,272,334
454,038,745
354,408,359
179,295,326
6,363,729
25,230,585
88,082,797
3,635,642
209,217,151
--
--
--
(137,848,805)
--
--
11,112
--
(2,854,686)
(3,460,698)
-(111,461)
---
-(5,087,125)
-(2,925,926)
-(27,018)
-383,082
59,126,781
150,090,370
(19,433)
--
--
--
--
--
--
453,530
84,155,791
(65,607)
--
--
(52,198)
(2,084,196)
(525,347)
2,727,348
84,155,791
1,593,595,405
(41,394,885)
(266,412)
--
(142,988,128)
(7,752,421)
(552,365)
4,240,461
1,404,881,655
32
st
1 quarter 2016
1,562,827,492
18,358,507
358,461,069
258,175,674
124,276,636
115,328,513
18,570,525
4,698,070
66,042,169
(43,677,717)
(89,687)
(5,531,652)
(15,196,624)
(2,607,333)
(9,015,051)
(3,574,240)
(1,274,770)
(36,078)
(225,085)
(70)
-(46,248)
(27,137)
(19,111)
----
----(9,638)
9,638
----
Dec 31, 2015
Adjustments
Insurance,
pension and
capitalization
(142,601,627)
(180,149)
(118,438)
(129,243,107)
(113,707,509)
(3,417,251)
(12,118,347)
---
650,613,976
(21,973,353)
--
--
255,475,797
427,968,546
333,291
971,490
(34,135,148)
(34,072,735)
(62,413)
201,836,175
4,641,852
(4,827,634)
(18,645,225)
-(96,655)
1,596,161
1,582,794
13,367
720,613
(296,166)
-------(159,135)
(19,632)
----------
21,211,519
3,448,295
1,596,700
1,939,059
(87,464)
7,866,335
9,872,908
23,981
3,567,307
3,665,928
3,700,168
(57,856)
23,616
(48,539)
(42,675)
(7,407)
(23,444)
9,604
1,262,618
(1,253,014)
-(21,710)
(11,338)
--
TOTAL ASSETS
1,584,039,011
(40,110,410)
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
capitalization
Other
1,502,020,785
465,317,792
347,476,444
201,687,358
5,511,011
34,005,928
91,908,322
4,746,366
351,367,564
Management
Information
Securities
Trading securities
losses
Financing
Leasing
Loan operations
Other receivables
Other assets
Permanent assets
Investments
Other investments
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Banking
Fund
Menagement
Investments
Payment methods
Other Segments
BB Consolidated
Intersegment
transactions
(8,735,033)
(173,271)
(128,729)
(394,870)
(325,744)
(1,055,668)
986,542
(61,268)
--
(247,690)
(50)
(377)
(144,386)
(9,200)
(135,186)
----
1,685,689
139,141
59,914
772,579
270,266
502,227
86
---
1,369,026,029
18,054,421
352,741,787
113,923,018
7,860,341
102,198,111
3,864,566
3,362,032
66,006,091
--
--
--
62,953
628,703,576
-------(9,277,521)
(3,782,412)
-------(7,961,901)
(14,994)
-------(70,856)
(32,021)
-62,953
-----651,102
--
250,648,163
409,386,274
333,291
874,835
(32,538,987)
(32,489,941)
(49,046)
185,738,477
496,627
---------
5,728,477
6,181,716
6,236,018
(63,803)
9,501
(114,137)
(339,102)
--
1,275,229
1,803,065
1,845,739
(42,752)
78
(358,915)
(168,921)
--
(296,334)
(296,334)
-(296,334)
-----
639,974
639,974
639,974
------
32,102,728
15,452,248
15,281,217
225,300
(54,269)
7,323,034
9,310,872
16,574
(248,529)
--
(136,873,150)
(7,459,804)
(544,024)
2,325,663
1,401,128,757
(40,087,565)
(1,350,136)
(13,962,425)
(12,645,794)
(41,604)
(1,957,338)
(1,832,616)
(1,457,194)
(6,840,458)
(246,235)
--(788)
-(101,068)
--(144,379)
----------
(136,764,430)
-------(136,764,430)
(6,929,341)
(462)
-(479,284)
-(2,355,094)
--(4,094,501)
(46,537)
-------(46,537)
1,186,699
452,524
7,629
--62,932
--663,614
1,319,133,376
464,419,718
333,521,648
188,561,492
5,469,407
29,655,360
90,075,706
3,289,172
204,140,873
131,532,146
--
--
--
(131,546,178)
--
--
14,032
--
64,907,232
154,928,186
(3,022,968)
(3,817,490)
-(144,379)
---
-(5,218,252)
-(4,094,501)
-(46,537)
-649,582
61,884,264
142,256,609
482,053
(22,845)
--
--
--
--
--
--
459,208
81,536,173
--
(2,294)
--
(108,720)
(530,463)
(497,487)
1,138,964
81,536,173
1,584,039,011
(40,110,410)
(248,529)
--
(136,873,150)
(7,459,804)
(544,024)
2,325,663
1,401,128,757
33
st
1 quarter 2016
1,501,811,020
16,536,604
351,658,176
232,244,702
105,417,321
109,157,927
17,669,454
3,754,490
64,682,415
(39,107,025)
(60,749)
(2,059,799)
(13,613,750)
(2,028,767)
(7,744,377)
(3,840,606)
(1,071,003)
(33,254)
(225,312)
(167)
-(43,024)
(19,508)
(23,516)
----
----------
Mar 31, 2015
Adjustments
Insurance,
pension and
capitalization
(117,992,422)
(190,555)
(70,103)
(106,419,902)
(92,672,627)
(2,694,351)
(11,052,924)
---
631,542,180
(24,335,634)
--
--
250,432,975
407,515,550
306,873
1,054,153
(27,767,371)
(27,725,380)
(41,991)
197,641,607
3,750,846
(6,226,574)
(19,589,075)
(41,730)
(170,420)
1,692,165
1,678,384
13,781
2,365,997
(298,833)
-------(149,980)
(32,141)
----------
21,854,684
3,584,912
1,807,311
1,873,349
(95,748)
7,504,117
10,728,629
37,026
3,620,268
3,707,394
3,738,140
(52,430)
21,684
(50,482)
(25,996)
(10,648)
38,032
67,098
1,258,278
(1,191,180)
-(19,721)
(9,345)
--
TOTAL ASSETS
1,523,665,704
(35,486,757)
Total Liabilities
Deposits
Borrowings
Onlendings
Other liabilities
capitalization
Other
1,439,633,857
468,005,995
338,906,729
183,328,583
6,980,664
29,156,933
92,615,260
5,632,137
315,007,556
Management
Information
Securities
Trading securities
losses
Financing
Leasing
Loan operations
Other receivables
Other assets
Permanent assets
Investments
Other investments
Intangible
Deferred
DEFERRED INCOME
TOTAL LIABILITIES
Banking
Fund
Menagement
Investments
Payment methods
Other Segments
BB Consolidated
Intersegment
transactions
(7,267,051)
(189,766)
(7,909)
(224,178)
(892,701)
(15,598)
684,121
---
(311,906)
(98)
(218)
(161,021)
(60,578)
(100,443)
----
2,309,523
34,831
6,239
1,056,768
289,482
519,291
247,995
---
1,339,216,827
16,130,100
349,526,386
112,839,595
10,032,622
99,098,933
3,708,040
2,683,487
64,649,161
--
--
--
90,471
607,297,017
-------(8,534,047)
(2,777,815)
-------(6,823,590)
(21,608)
-------(124,787)
(25,782)
-48,741
41,730
----1,121,214
--
244,206,401
387,975,216
306,873
883,733
(26,075,206)
(26,046,996)
(28,210)
185,496,414
594,667
---------
4,697,084
5,170,853
5,221,786
(60,184)
9,251
(81,373)
(392,396)
--
1,103,232
1,526,767
1,635,117
(118,911)
10,561
(311,910)
(109,724)
(1,901)
(253,204)
(253,204)
-(253,204)
-----
148,984
148,984
148,817
167
-----
31,209,080
13,952,804
13,809,449
197,607
(54,252)
7,040,631
10,191,168
24,477
(187,280)
--
(113,295,338)
(6,163,819)
(565,110)
2,458,507
1,370,425,907
(35,473,581)
(1,987,773)
(9,747,209)
(12,200,537)
(88,373)
(1,716,314)
(1,928,755)
(1,330,618)
(6,474,002)
(185,032)
--(1,398)
-(67,073)
--(116,561)
----------
(113,242,064)
-------(113,242,064)
(6,070,523)
----(2,330,576)
--(3,739,947)
(41,546)
-------(41,546)
1,786,125
406,510
6,199
--90,473
--1,282,943
1,286,407,236
466,424,732
329,165,719
171,126,648
6,892,291
25,133,443
90,686,505
4,301,519
192,676,379
108,981,702
--
--
--
(108,989,098)
--
--
7,396
--
59,078,123
146,947,731
(3,314,676)
(3,159,326)
-(116,561)
---
-(4,252,966)
-(3,739,947)
-(41,546)
169,517
1,106,030
55,932,964
136,743,415
433,808
(13,176)
--
--
--
--
--
--
420,632
83,598,039
--
(2,248)
--
(53,274)
(93,296)
(523,564)
672,382
83,598,039
1,523,665,704
(35,486,757)
(187,280)
--
(113,295,338)
(6,163,819)
(565,110)
2,458,507
1,370,425,907
34
st
1 quarter 2016
6 - CASH AND CASH EQUIVALENTS
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
22,244,838
18,054,422
16,130,100
15,884,420
8,990,683
9,864,058
6,352,126
9,056,034
6,242,494
8,292
7,705
23,548
60,212,857
84,652,749
61,025,159
Open market investments - sales pending settlement - held position
21,173,964
38,195,496
22,689,386
Interbank deposits
39,038,893
46,457,253
38,335,773
82,457,695
102,707,171
77,155,259
Local currency
Foreign currency
Investments in gold
(1)
Total
(1) Investments whose original maturity is less than or equal to 90 days and with insignificant risk of change in fair value.
7 - SHORT-TERM INTERBANK INVESTMENTS
a) Breakdown
Mar 31, 2016
Open Market Investments
Reverse repos - Own Resources
Treasury Financial Bills
National Treasury Bills
National Treasury Notes
Other securities
Reverse repos - Financed Position
Dec 31, 2015
Mar 31, 2015
320,901,467
303,530,816
309,058,044
21,184,813
38,196,143
22,772,602
191,083
429,832
--
5,289,586
22,232,207
346,656
15,231,373
15,139,814
21,818,986
234,022
824,122
415,877
299,716,654
265,334,673
286,285,442
116,258,443
399,992
36,052,865
127,819,816
117,887,474
199,679,516
55,473,499
146,872,982
50,393,593
164,896
174,225
159,468
40,900,350
49,210,971
40,468,342
Total
361,801,817
352,741,787
349,526,386
Current assets
360,672,687
351,419,935
348,398,818
1,129,130
1,321,852
1,127,568
Other securities
Interbank Deposits
Non-current assets
b) Income from short-term interbank investments
1st quarter/2016
Income from Open Market Investments
Own resources
Financed position
Income from Investments in Interbank Deposits
Total
1st quarter/2015
10,088,660
8,510,525
858,419
676,001
9,230,241
7,834,524
103,997
115,428
10,192,657
8,625,953
35
st
1 quarter 2016
8- SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS
a) Securities
a.1) Breakdown of the consolidated portfolio by category, type of bonds and maturity
Mar 31, 2016
Dec 31, 2015
Market Value
Maturity in Days
Without
maturity
0 to 30
31 to 180
Total
181 to 360
More than 360
Cost value
Mar 31, 2015
Total
Market value
Mark to Market
Cost value
Total
Market value
Mark to Market
Cost value
Market value
Mark to Market
1 - Trading securities
1,231,102
2,638,910
1,892,426
519,941
1,822,651
7,347,205
8,105,030
757,825
7,525,861
7,860,341
334,480
10,025,841
10,032,622
6,781
Federal Government
Bonds
14
2,636,619
1,845,998
267,434
1,777,677
5,818,072
6,527,742
709,670
6,250,648
6,558,357
307,709
9,479,622
9,488,019
8,397
--
--
745,437
94,539
313,643
1,153,864
1,153,619
(245)
1,035,232
1,035,362
130
1,124,026
1,123,580
(446)
--
27,133
3,531
41,042
815,667
889,932
887,373
(2,559)
1,189,094
1,184,359
(4,735)
3,364,428
3,291,479
(72,949)
--
--
341,953
2,995
22,790
370,383
367,738
(2,645)
85,030
84,783
(247)
1,339,605
1,321,403
(18,202)
Brazilian foreign debt
securities
Foreign Government bonds
Other
Corporate Bonds
Debentures
Shares in investment funds
Shares
--
--
--
--
35,846
37,309
35,846
(1,463)
72,333
65,760
(6,573)
72,467
70,310
(2,157)
14
2,609,486
737,884
113,899
557,320
3,302,540
4,018,603
716,063
3,754,840
4,084,718
329,878
3,497,733
3,600,520
102,787
--
--
17,193
14,959
32,411
64,044
64,563
519
114,119
103,375
(10,744)
81,363
80,727
(636)
1,231,088
2,291
46,428
252,507
44,974
1,529,133
1,577,288
48,155
1,275,213
1,301,984
26,771
546,219
544,603
(1,616)
--
--
27,962
13,568
21,858
64,119
63,388
(731)
59,310
57,924
(1,386)
50,969
50,014
(955)
1,208,712
--
--
213,590
--
1,370,963
1,422,302
51,339
1,071,605
1,113,316
41,711
349,133
351,719
2,586
121
--
--
--
--
23
121
98
26
65
39
119
426
307
Rural Product Bills Commodities
--
--
--
--
--
--
--
--
1
1
--
--
--
--
Certificate of deposit
--
--
1
--
--
--
1
1
--
--
--
91
91
--
Eurobonds
--
--
15,725
5,029
16,793
49,043
37,547
(11,496)
114,568
91,349
(23,219)
122,129
111,950
(10,179)
22,255
2,291
2,740
20,320
6,323
44,985
53,929
8,944
29,703
39,329
9,626
23,778
30,403
6,625
505,610
2,223,630
6,756,207
6,109,418
90,606,209
110,808,295
106,201,074
(4,607,221)
107,308,851
102,198,111
(5,110,740)
101,206,449
99,098,932
(2,107,517)
(592,962)
Other
2 - Available for sale
securities
Federal Government
Bonds
77,611
1,017,252
3,885,018
1,972,257
54,010,471
61,520,820
60,962,609
(558,211)
57,430,254
56,038,610
(1,391,644)
51,592,802
50,999,840
--
--
344
--
40,359,225
40,385,294
40,359,569
(25,725)
36,475,017
36,474,678
(339)
31,796,722
31,792,145
(4,577)
--
299,840
1,056,606
1,059,578
4,907,679
7,318,526
7,323,703
5,177
5,456,744
5,216,331
(240,413)
5,573,211
5,464,375
(108,836)
--
--
370,449
135,893
3,725,535
4,593,029
4,231,877
(361,152)
5,182,210
4,661,076
(521,134)
4,335,322
3,937,681
(397,641)
Agricultural debt securities
--
5
884
501
3,551
5,110
4,941
(169)
5,157
4,713
(444)
6,312
6,010
(302)
Brazilian foreign debt
securities
--
--
--
--
2,950,236
3,051,293
2,950,236
(101,057)
3,120,701
2,685,040
(435,661)
3,188,275
3,124,515
(63,760)
--
717,407
2,456,735
776,285
1,330,655
5,279,718
5,281,082
1,364
6,123,190
6,112,039
(11,151)
5,939,267
5,940,126
859
77,611
--
--
--
733,590
887,850
811,201
(76,649)
1,067,235
884,733
(182,502)
753,693
734,988
(18,705)
Foreign Government bonds
Other
36
st
1 quarter 2016
Mar 31, 2016
Market Value
Maturity in Days
Without
maturity
Corporate Bonds
0 to 30
31 to 180
Total
181 to 360
More than 360
Cost value
Market value
Mark to Market
Cost value
Dec 31, 2015
Mar 31, 2015
Total
Total
Market value
Mark to Market
Cost value
Market value
Mark to Market
427,999
1,206,378
2,871,189
4,137,161
36,595,738
49,287,475
45,238,465
(4,049,010)
49,878,597
46,159,501
(3,719,096)
49,613,647
48,099,092
(1,514,555)
Debentures
--
871,582
2,108,734
2,391,515
33,285,923
39,838,538
38,657,754
(1,180,784)
40,004,158
39,289,630
(714,528)
36,206,514
35,589,939
(616,575)
Promissory notes
--
--
70,915
504,432
105,111
675,187
680,458
5,271
918,460
931,194
12,734
1,252,909
1,248,279
(4,630)
Credit Notes
--
--
--
--
44,362
50,152
44,362
(5,790)
50,936
46,771
(4,165)
52,607
47,003
(5,604)
19,887
103,768
120,329
635,194
2,806,638
6,043,115
3,685,816
(2,357,299)
3,012,747
1,656,953
(1,355,794)
4,030,075
3,407,249
(622,826)
Shares
505
--
--
--
--
810
505
(305)
810
457
(353)
810
722
(88)
Rural Product Bills Commodities
--
139,665
541,867
367,608
2,058
1,051,179
1,051,198
19
1,066,970
1,068,167
1,197
889,879
884,452
(5,427)
Certificate of deposit
--
88,951
--
--
--
88,969
88,951
(18)
97,628
97,608
(20)
2,123,274
2,123,167
(107)
Certificates of Agribusiness
Credit Rights
--
--
--
--
--
--
--
--
--
--
--
10,826
10,953
127
Financial bills
--
--
21,258
--
--
21,339
21,258
(81)
20,542
20,500
(42)
1,410,230
1,407,274
(2,956)
Real Estate Receivables
Certificates
--
--
--
238,412
237,916
489,637
476,328
(13,309)
479,761
468,783
(10,978)
504,165
483,505
(20,660)
407,607
2,412
8,086
--
113,730
1,028,549
531,835
(496,714)
4,226,585
2,579,438
(1,647,147)
3,132,358
2,896,549
(235,809)
3 - Held to maturity
securities
--
--
--
--
3,485,028
3,748,065
3,485,028
(263,037)
3,864,566
3,625,314
(239,252)
3,708,040
3,511,287
(196,753)
Corporate Bonds
--
--
--
--
3,485,028
3,748,065
3,485,028
(263,037)
3,864,566
3,625,314
(239,252)
3,708,040
3,511,287
(196,753)
Debentures
--
--
--
--
3,381,688
3,381,688
3,381,688
--
3,506,434
3,506,434
--
3,374,200
3,374,200
--
--
--
--
--
--
--
--
--
7,026
7,026
--
--
--
--
Real Estate Receivables
Certificates
--
--
--
--
95,635
358,672
95,635
(263,037)
351,106
111,854
(239,252)
327,313
130,560
(196,753)
Other
--
--
--
--
7,705
7,705
7,705
--
--
--
--
6,527
6,527
--
1,736,712
4,862,540
8,648,633
6,629,359
95,913,888
121,903,565
117,791,132
(4,112,433)
118,699,278
113,683,766
(5,015,512)
114,940,330
112,642,841
(2,297,489)
Other
Total
a.2) Breakdown of the consolidated portfolio by financial statement classification and maturity date
Mar 31, 2016
Without
maturity
Total by portfolio
Dec 31, 2015
Market Value
Maturity in Days
0 to 30
31 to 180
Total
More than
360
181 to 360
Cost value
Market value
Mar 31, 2015
Total
Mark to
Market
Cost value
Market value
Total
Mark to
Market
Cost value
Market value
Mark to
Market
1,736,712
4,862,540
8,648,633
6,629,359
95,913,888
121,903,565
117,791,132
(4,112,433)
118,699,278
113,683,766
(5,015,512)
114,940,330
112,642,841
1,736,712
4,649,770
8,147,335
5,797,621
72,722,200
94,854,113
93,053,638
(1,800,475)
90,500,313
89,084,740
(1,415,573)
85,286,373
85,369,496
83,123
Subject to repurchase
agreements
--
123,819
484,989
831,738
20,269,913
24,020,920
21,710,459
(2,310,461)
24,095,222
20,495,283
(3,599,939)
14,951,019
12,601,090
(2,349,929)
--
88,951
16,309
--
2,921,775
3,028,532
3,027,035
(1,497)
4,103,743
4,103,743
--
14,702,938
14,672,255
(30,683)
Own portfolio
(2,297,489)
37
st
1 quarter 2016
a.3) Breakdown of the consolidated portfolio by category and maturity in years
Mar 31, 2016
Market Value
Maturity in years
Without
maturity
Total by category
2 - Available for sale securities
Due in up to
one year
Dec 31, 2015
Mar 31, 2015
Total
Total
Total
Due from 1 to
5 years
Due from 5 to
10 years
Due after 10
years
Cost value
Market value
Cost value
Market value
Cost value
Market value
1,736,712
20,140,532
71,328,551
22,191,867
2,393,470
121,903,565
117,791,132
118,699,278
113,683,766
114,940,330
112,642,841
1,231,102
5,051,277
1,360,063
345,893
116,695
7,347,205
8,105,030
7,525,861
7,860,341
10,025,841
10,032,622
505,610
15,089,255
69,968,256
18,464,286
2,173,667
110,808,295
106,201,074
107,308,851
102,198,111
101,206,449
99,098,932
--
--
232
3,381,688
103,108
3,748,065
3,485,028
3,864,566
3,625,314
3,708,040
3,511,287
3 - Held to maturity securities
a.4) Summary of the consolidated portfolio by financial statement classification
Current
Total by portfolio
Own portfolio
Mar 31, 2016
Dec 31, 2015
Book value
Book value
Non-current
Total
Current
Mar 31, 2015
Book value
Non-current
Total
Current
Non-current
Total
25,252,665
92,801,504
118,054,169
21,905,761
92,017,257
113,923,018
29,172,890
83,666,704
112,839,594
23,699,895
72,069,569
95,769,464
20,534,138
71,087,575
91,621,713
25,247,605
60,351,952
85,599,557
1,447,510
17,810,160
19,257,670
1,257,846
16,939,716
18,197,562
1,655,295
10,912,487
12,567,782
105,260
2,921,775
3,027,035
113,777
3,989,966
4,103,743
2,269,990
12,402,265
14,672,255
a.5) Summary of the consolidated portfolio by category
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Total by category
2 - Available for sale securities
3 - Held to maturity securities
Portfolio Book Value
Mark to market - held to maturity
Portfolio Market Value
8,105,030
7%
7,860,341
7%
10,032,622
9%
106,201,074
90%
102,198,111
90%
99,098,932
88%
3,748,065
3%
3,864,566
3%
3,708,040
3%
118,054,169
100%
113,923,018
100%
112,839,594
100%
(263,037)
--
(239,252)
--
(196,753)
--
117,791,132
--
113,683,766
--
112,642,841
--
38
st
1 quarter 2016
b) Income from operations with securities
1st quarter/2016
Short-term Interbank Investments (Note 7.b)
1st quarter/2015
10,192,657
8,625,953
3,623,334
3,591,521
(2,279,327)
4,145,144
Total
11,536,664
16,362,618
c) Reclassification of securities
There was no reclassification of securities in the March 31, 2016 and March 31, 2015.
d) Derivative financial instruments
The Bank uses derivative financial instruments to manage, at the consolidated level, its positions and to meet clients'
needs, classifying its own positions as hedge (market risk and cash flow risk) and trading, both within limits approved
by committees of the Bank. The hedge strategy of the equity positions is in line with macroeconomic analyses and is
approved by the Executive Board of Directors.
In the options market, active or long positions have the Bank as holder, while passive or short positions have the
Bank as writer.
The main risks inherent to derivative financial instruments resulting from the business of the Bank and its subsidiaries
are credit, market, liquidity and operational, and the management process presented in note 28.
The models used to manage risks with derivatives are reviewed periodically and the decisions made follow the best
risk/return relationship, estimating possible losses based on the analysis of macroeconomic scenarios.
The Bank uses tools and systems to manage the derivatives. Trading in new derivatives, standardized or not, is
subject to a prior risk analysis.
Risk analysis of the subsidiaries is undertaken on an individual basis and its risk management is done on a
consolidated basis.
The Bank uses statistical methods and simulations to measure the risks of its positions, including derivatives, using
models of values at risk sensibility and stress analysis.
Total credit exposure from swaps is R$ 378,668 thousand on Mar 31, 2016 (R$ 464,076 thousand on Dec 31, 2015
and R$ 546,642 thousand on Mar 31, 2015).
39
st
1 quarter 2016
d.1) Breakdown of the portfolio of derivatives for trading by index
By Index
Mar 31, 2016
Notional value
Cost value
Dec 31, 2015
Market value
Notional value
Cost value
Mar 31, 2015
Market value
Notional value
Cost value
Market value
Future Contracts
Purchase
commitments
8,714,900
--
--
1,600,302
--
--
3,605,124
--
--
Interbank Deposits
Currencies
Commodities
Sales commitments
4,806,749
3,889,284
18,867
3,005,318
-----
-----
1,042,332
530,810
27,160
9,188,542
-----
-----
1,819,576
1,769,899
15,649
5,336,234
-----
-----
Interbank Deposits
Currencies
T-Note
Libor
Commodities
763,938
2,228,969
--12,411
------
------
6,205,028
2,977,888
--5,626
------
------
3,886,560
513,654
865,859
22,610
47,551
------
------
Forward operations
Asset position
7,349,237
1,642,771
1,704,736
12,525,819
1,359,977
1,749,951
10,446,169
1,094,479
1,255,688
Term securities
Term currencies
Term commodities
Liability position
1,101,571
6,228,240
19,426
15,616,034
1,101,571
540,135
1,065
(2,322,275)
1,101,571
599,415
3,750
(1,900,244)
-12,492,001
33,818
11,454,776
-1,358,628
1,349
(783,298)
-1,744,654
5,297
(582,955)
45,440
10,348,296
52,433
5,777,984
45,440
1,041,029
8,010
(702,367)
45,440
1,199,999
10,249
(526,431)
Term securities
Term currencies
Term commodities
1,101,571
14,479,741
34,722
(1,101,571)
(1,215,803)
(4,901)
(1,101,571)
(790,688)
(7,985)
-11,430,037
24,739
-(778,007)
(5,291)
-(575,299)
(7,656)
45,440
5,679,483
53,061
(45,440)
(643,286)
(13,641)
(45,440)
(468,549)
(12,442)
1,760
29
19
--
--
--
6,567
59
195
-1,760
-29
-19
---
---
---
6,567
--
59
--
190
5
1,450
28
28
--
--
--
--
--
--
1,450
28
28
--
--
--
--
--
--
437,463
(17,082)
(41,249)
391,447
(15,121)
(119,529)
1,804,363
(55,879)
(472,188)
329,279
65,268
41,656
1,260
(9,078)
(2,264)
(5,653)
(87)
(3,909)
(25,281)
(11,803)
(256)
11,381
348,015
32,051
--
(522)
(9,830)
(4,769)
--
(883)
(107,098)
(11,548)
--
13,124
1,782,687
8,371
181
(489)
(54,022)
(1,358)
(10)
(1,128)
(468,185)
(2,870)
(5)
185,711
(27,425)
(10,622)
426,369
(238,328)
(166,391)
1,940,988
(1,852,818)
(931,674)
1,648
65,268
2,292
116,503
(31)
(25,694)
(78)
(1,622)
(16)
(10,290)
(23)
(293)
-348,016
-78,353
-(237,202)
-(1,126)
-(166,254)
-(137)
7,552
1,782,687
113
150,636
(100)
(1,849,186)
(6)
(3,526)
(29)
(927,679)
-(3,966)
Asset position
10,016,668
1,724,393
1,823,461
6,649,135
1,362,026
1,562,039
7,964,412
1,386,374
1,334,990
Interbank Deposits
Foreign currency
Pre-fixed
IPCA
Liability position
5,386,439
4,141,490
466,342
22,397
12,799,827
526,502
1,140,589
55,870
1,432
(1,414,069)
527,708
1,234,661
60,377
715
(1,541,520)
1,170,012
5,233,939
222,787
22,397
15,978,320
28,463
1,326,041
6,416
1,106
(1,906,269)
11,245
1,546,439
4,104
251
(2,354,368)
155,527
6,917,636
889,603
1,646
12,919,638
(580)
1,334,928
52,000
26
(2,011,530)
2,040
1,274,181
58,752
17
(2,126,421)
Interbank Deposits
Foreign currency
Pre-fixed
IPCA
Other derivatives (1)
Asset position
3,108,633
9,408,264
282,930
--
(308,276)
(1,093,609)
(12,184)
--
(290,623)
(1,234,983)
(15,914)
--
187,764
15,550,493
41,172
198,891
(6,638)
(1,897,600)
(2,513)
482
(4,577)
(2,347,504)
(1,190)
(1,097)
36,106
12,392,772
490,760
--
1,021
(1,949,546)
(63,005)
--
(3,617)
(2,060,418)
(62,386)
--
Foreign currency
Liability position
1,126,784
25,434
39,467
1,123,416
32,242
50,042
696,630
80,854
92,613
Foreign currency
3,131,315
(131,794)
(142,008)
2,422,956
(46,492)
(65,929)
3,788,889
(239,739)
(244,805)
Option Market
Purchase
Commitments - Long
Position
Foreign currency
Shares
Sale Commitments Long Position
Shares
Purchase
Commitments - Short
Position
Foreign currency
Pre-fixed
Interbank deposit
Shares
Sale Commitments Short Position
Foreign currency
Pre-fixed
Shares
Commodities
Swaps Contracts
(1) Related, essentially, to Non Deliverable Forwards (NDF) which are traded in the over-the-counter (OTC) market and have as their object an
exchange rate of a specific currency.
40
st
1 quarter 2016
d.2) Breakdown of the derivatives portfolio by maturity (notional value)
Maturity in
Days
0 to 30
Futures
Forwards
31 to 180
181 to 360
More than 360
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
656,519
7,554,088
2,736,687
772,924
11,720,218
10,788,844
8,941,358
10,798,944
5,803,708
5,102,987
1,259,632
22,965,271
23,980,595
16,224,153
Options
57,053
412,611
115,065
41,655
626,384
817,816
3,751,918
Swaps
653,708
7,467,449
5,624,209
9,071,129
22,816,495
22,627,455
20,884,050
2,438,106
1,415,875
253,403
150,715
4,258,099
3,546,372
4,485,519
Other
d.3) Breakdown of the derivative portfolio by trading market and counterparty (notional value on
Mar 31, 2016)
Futures
BM&FBovespa
Forwards
11,720,218
Option market
Credit
derivatives
Swaps
Other
--
626,384
--
--
--
Over-the-counter
Financial Institutions
--
2,203,142
--
17,853,523
--
4,258,099
Client
--
20,762,129
--
4,962,972
--
--
d.4) Breakdown of margin given as guarantee for transactions with derivative financial
instruments
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
1,245,581
2,637,630
1,235,984
Total
1,245,581
2,637,630
1,235,984
d.5) Portfolio of derivatives designated as hedge accounting
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Market Risk Hedge
Hedging instruments
Assets
342,445
338,068
335,823
Swaps
342,445
338,068
335,823
342,800
338,300
335,676
342,800
338,300
335,676
Hedged items
Liabilities
Other liabilities
In order to hedge against possible fluctuations in the interest and exchange rates on its securities and foreign
investments, the Conglomerate contracted derivative operations to offset the exposure to the market value changes.
The hedges were assessed as effective, in accordance with the Circular No. 3,082/2002 from the Banco Central do
Brasil, which requires evidence of hedge effectiveness between 80% and 125%.
41
st
1 quarter 2016
d.6) Income gains and losses with hedging instruments and hedged items
1st quarter/2016
Hedged items losses
Hedging instruments gains
Net effect
1st quarter/2015
(34,476)
--
34,332
--
(144)
--
Hedge items gains
--
81,221
Hedging instruments losses
--
(81,884)
Net effect
--
(663)
d.7) Derivative financial instruments segregated by current and non-current
Mar 31, 2016
Current
Dec 31, 2015
Non-current
Current
Mar 31, 2015
Non-current
Current
Non-current
Assets
Forwards
Options
Swaps
Other derivatives
Total
1,662,600
42,136
1,280,205
469,746
1,088,844
47
--
--
--
195
166,844
--
1,309,192
514,269
1,056,926
505,113
573,775
761,215
30,541
8,926
31,033
19,009
82,129
10,484
3,002,380
565,331
2,368,164
993,868
1,744,943
938,543
(52,426)
Liabilities
Forwards
(1,817,345)
(82,899)
(558,119)
(24,836)
(474,005)
Options
(40,068)
(11,803)
(274,372)
(11,548)
(1,358,644)
(45,218)
Swaps
(383,259)
(1,158,261)
(1,086,815)
(1,267,553)
(902,842)
(1,223,579)
Other derivatives
(134,455)
(7,553)
(48,256)
(17,673)
(234,661)
(10,144)
(2,375,127)
(1,260,516)
(1,967,562)
(1,321,610)
(2,970,152)
(1,331,367)
Total
e) Income from derivative financial instruments
1st quarter/2016
Swaps
1st quarter/2015
534,343
(164,662)
(819,070)
525,296
Options
13,104
(46,765)
Futures
(2,797)
317,367
(28,375)
(19,285)
(302,795)
611,951
Forwards
Other derivatives
Total
42
st
1 quarter 2016
9 - INTERBANK ACCOUNTS
a) Payments and receipts pending settlement
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Assets
Rights against other participants of settlement systems (1)
Bank checks and other instruments
1,292,723
Documents sent by other participants
7,252
1,911,646
1,737,193
--
1,807,558
Total
3,029,916
7,252
3,719,204
Current assets
3,029,916
7,252
3,719,204
1,743,859
--
1,848,795
726,569
--
889,872
5,690
34
14,755
Total
2,476,118
34
2,753,422
Current liabilities
2,476,118
34
2,753,422
Liabilities
Obligations to other participants of settlement systems (1)
Remitted receipts
Bank checks and other instruments
Other receipts
(1) There was no operation of the service of clearing checks and other securities on Dec 31, 2015.
b) Restricted deposits
Mar 31, 2016
Compulsory Deposits with Banco Central do Brasil
Dec 31, 2015
Mar 31, 2015
62,612,540
60,810,918
56,612,772
Additional reserve requirements on deposits
14,410,202
14,425,618
21,455,100
Savings deposit requirements
24,022,481
24,116,566
19,936,060
Demand deposit requirements
9,652,082
8,018,230
10,132,448
12,576,776
12,238,303
5,084,926
Resources for microfinance
298,406
363,781
--
Resources for rural credit (1)
1,643,753
1,643,753
--
8,840
4,667
4,238
Time deposit requirements
Other
Housing Finance System
2,542,219
2,496,198
2,363,829
Compensation of wage changes fund
2,709,424
2,663,942
2,527,911
Provision for losses
(174,186)
(173,192)
(169,793)
6,981
5,448
5,711
131,065
54,304
268,651
Other
National Treasury - Rural Credit
Rural credit - Proagro
295,099
210,965
404,995
(164,034)
(156,661)
(136,344)
Total
65,285,824
63,361,420
59,245,252
Current assets
65,277,643
63,361,321
59,106,731
8,181
99
138,521
Provision for losses
Non-current assets
(1) Refers to funds deposited with the Banco Central do Brasil, because they were not lent on to rural credits, according to Resolution CMN No.
3,745/2009. The special supply funds were provided by Banco Central do Brasil and recorded in borrowings and onlendings (Note 18.b).
43
st
1 quarter 2016
c) Compulsory investments
1st quarter/2016
Deposits linked to the Banco Central do Brasil
1st quarter/2015
1,341,104
1,124,910
Additional reserve requirements on deposits
462,388
617,639
Savings deposit requirements
479,572
357,440
Time deposit requirements
399,144
149,831
Deposits linked to Real State
46,424
38,051
Deposits linked to National Treasury - Rural Credit
11,601
9,776
Losses on Restricted Deposits
(8,952)
17,752
1,390,177
1,190,489
Total
44
st
1 quarter 2016
10 - LOAN OPERATIONS
a) Portfolio by modality
Mar 31, 2016
Loan operations
Dec 31, 2015
Mar 31, 2015
644,389,521
660,367,728
632,488,490
240,531,653
250,648,163
244,206,401
Financing
168,890,326
180,849,464
178,595,567
Rural and agribusiness financing
183,753,959
178,902,040
168,215,968
50,811,992
49,559,757
41,142,982
80,952
75,013
20,699
320,639
333,291
306,873
56,881,386
56,606,639
48,815,433
21,541,905
22,940,041
20,275,224
18,362,928
17,582,677
12,660,418
Real estate financing
Financing of infrastructure and development
Loan operations sold under assignment
(1)
Credit card operations
(2)
Advances on exchange contracts (3)
Other receivables purchase under assignment
(4)
15,973,453
15,266,721
15,339,481
Guarantees honored
578,772
397,550
202,339
Other
424,328
419,650
337,971
755,925
874,835
883,733
Total loan portfolio
702,026,832
717,849,202
682,187,656
(Allowance)/reversal for loan losses
(35,397,636)
(33,577,000)
(26,862,462)
(34,224,106)
(32,489,941)
(26,046,996)
(1,114,477)
(1,038,013)
(787,256)
(59,053)
(49,046)
(28,210)
666,629,196
684,272,202
655,325,194
(Allowance for loan losses - loan operations)
(Allowance for other losses - other receivables) (5)
(Allowance for lease losses - leasing transactions)
Total loan portfolio net of provisions
(1) Loan operations assigned with retention of the risks and benefits of the financial assets.
(2) On March 31, 2015, credit card bills to receive from clients of Banco Patagonia of R$ 1,381,270 thousand were reclassified from other receivables
without characteristics of credit, to harmonize the accounting practices with Banco do Brasil.
(3) Advances on exchange contracts are classified as a deduction to other liabilities.
(4) Loan operations acquired with retention of the risks and benefits by the assignor of the financial assets.
(5) Includes the amount of R$ 8,883 thousand as of March 31, 2016 (R$ 8,421 thousand as of December 31, 2015 and R$ 6,067 thousand as of
March 31, 2015) related to allowance for interbank onlendings losses.
b) Loan operations and leasing transactions income
1st quarter/2016
Loan operations income
1st quarter/2015
20,412,315
27,598,402
12,975,955
12,594,852
3,498,696
2,688,915
Equalization of rates - agricultural crop- Law 8,427/1992
1,382,724
1,800,522
Real estate financing
1,216,219
890,357
Recovery of loans previously written-off as loss (1)
861,143
839,781
Income from foreign currency financing
255,875
499,714
Financing
116,874
8,163,797
Export financing
34,070
87,867
Guarantees honored
44,137
16,586
Other
26,622
16,011
94,847
112,978
20,507,162
27,711,380
Leasing transactions income (Note 10.i)
Total
(1) The amount of R$ 53,100 thousand in the 1st quarter/2016 (with impact on the income of R$ 27,847 thousand) and R$ 47,817 thousand in 1st the
quarter/2015 (with an impact on the income of R$ 27,356 thousand) was received from assignments without recourse of written-off credits to
entities outside the financial system, in accordance with CMN Resolution 2,836/2001. The book value of these transactions were
R$ 54,824 thousand and R$ 84,656 thousand respectively.
45
st
1 quarter 2016
c) Breakdown of the loan portfolio by sector
Mar 31, 2016
Public sector
%
Dec 31, 2015
%
Mar 31, 2015
%
76,551,278
10.9
79,036,961
11.0
66,692,266
9.8
Public administration
39,030,919
5.6
41,774,780
5.8
33,298,729
4.9
Oil sector
25,116,579
3.6
24,790,928
3.5
20,695,451
2.9
Electricity
11,108,382
1.6
11,142,352
1.6
11,272,492
1.7
Services
296,048
--
325,448
--
350,981
0.1
Other activities
999,350
0.1
1,003,453
0.1
1,074,613
0.2
Private sector
(1)
625,475,554
89.1
638,812,241
89.0
615,495,390
90.2
Individuals
314,403,480
44.8
309,647,850
43.1
291,373,816
42.7
Companies
311,072,074
44.3
329,164,391
45.9
324,121,574
47.5
Mining and metallurgy
37,470,955
5.3
38,377,486
5.3
38,373,568
5.7
Agribusiness of plant origin
32,396,166
4.6
35,625,466
5.0
34,172,941
5.0
Automotive sector
23,484,193
3.3
25,412,588
3.5
22,757,007
3.3
Transportation
22,118,708
3.2
23,552,525
3.3
21,542,356
3.2
Services
20,246,056
2.9
21,583,846
3.0
22,639,998
3.3
Real estate agents
19,691,939
2.8
20,162,150
2.8
18,574,732
2.7
Fuel
19,169,522
2.7
21,594,810
3.0
21,709,757
3.2
Electricity
17,140,875
2.4
17,950,892
2.5
17,015,343
2.5
Retail commerce
16,507,156
2.4
17,872,597
2.5
18,060,058
2.6
Agribusiness of animal origin
16,212,517
2.3
14,306,536
2.0
12,872,815
1.9
Specific activities of construction
11,529,953
1.6
12,223,985
1.7
12,536,969
1.8
Agricultural inputs
10,018,371
1.5
10,410,596
1.5
9,737,874
1.4
Textile and clothing
9,621,352
1.4
10,250,211
1.4
10,747,256
1.6
Pulp and paper
8,251,489
1.2
9,009,701
1.3
9,566,209
1.4
Electronics
7,534,963
1.1
8,429,919
1.2
8,635,942
1.3
Wholesale and various industries
7,273,058
1.1
7,112,589
1.0
7,003,139
1.0
Chemical
7,234,744
1.0
8,038,385
1.1
7,770,548
1.1
Woodworking and furniture market
5,837,821
0.8
6,251,811
0.9
6,646,506
1.0
Heavy construction
5,786,113
0.8
6,076,581
0.8
5,796,688
0.8
Financial services
5,152,712
0.7
5,775,570
0.8
5,802,599
0.9
Telecommunications
4,196,416
0.6
4,185,482
0.6
5,537,201
0.8
Other activities
4,196,995
0.6
4,960,665
0.7
6,622,068
1.0
702,026,832
100.0
717,849,202
100.0
682,187,656
100.0
Total
(1) The amounts disclosed under individuals include loans to the sectors of agribusiness, housing and other sectors of economic activity carried out
with individuals. To the highlighted economic sectors, operations are exclusive to companies.
46
st
1 quarter 2016
d) Loan portfolio by risk level and maturity
AA
A
B
C
D
E
F
G
H
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Current operations
Installments falling due
01 to 30
20,142,825
8,847,479
16,753,777
2,066,884
203,438
242,786
90,651
3,405,322
284,233
52,037,395
53,744,732
52,733,561
31 to 60
14,857,059
5,428,119
5,712,340
826,203
96,281
171,864
46,050
37,039
131,812
27,306,767
26,577,542
29,683,996
61 to 90
16,046,034
4,695,585
4,389,075
789,059
116,084
181,556
96,941
28,989
185,056
26,528,379
22,691,437
29,193,663
91 to 180
35,779,561
10,296,218
11,124,165
2,322,840
358,410
541,527
181,276
91,730
304,564
61,000,291
67,876,209
68,453,096
181 to 360
54,192,669
14,723,500
15,690,638
3,446,140
517,842
857,358
276,429
119,186
958,580
90,782,342
98,952,476
89,016,744
230,342,669
94,254,952
58,809,519
12,852,374
2,703,895
5,841,735
1,518,314
988,900
4,741,696
412,054,054
421,212,532
390,198,412
Up to 14 days
167,030
161,005
621,531
148,021
44,897
77,302
18,149
5,867
85,498
1,329,300
1,130,563
933,120
Other (1)
381,128
--
--
--
--
--
--
--
--
381,128
373,113
355,526
371,908,975
138,406,858
113,101,045
22,451,521
4,040,847
7,914,128
2,227,810
4,677,033
6,691,439
671,419,656
692,558,604
660,568,118
More than 360
Installments overdue
Subtotal
Operations past due
Installments falling due
01 to 30
--
--
173,092
204,297
100,562
166,073
106,020
96,736
522,105
1,368,885
1,154,552
1,251,297
31 to 60
--
--
193,085
102,602
54,511
96,311
55,038
54,322
229,883
785,752
744,060
641,211
61 to 90
--
--
65,778
95,037
53,498
87,688
57,191
51,565
236,857
647,614
520,178
538,024
91 to 180
--
--
173,838
241,574
230,678
268,771
159,069
147,918
651,538
1,873,386
1,614,801
1,463,522
181 to 360
--
--
352,649
422,768
269,683
458,928
324,234
271,711
1,162,603
3,262,576
2,743,742
2,473,153
More than 360
--
--
1,105,779
1,283,716
979,732
2,307,259
1,380,552
1,033,971
4,312,386
12,403,395
9,768,847
7,443,717
01 to 14
--
--
15,382
51,974
38,456
45,747
30,028
23,684
102,933
308,204
261,878
283,754
15 to 30
--
--
250,295
323,751
73,975
261,059
85,630
43,106
197,273
1,235,089
798,591
925,192
31 to 60
--
--
14,184
359,236
149,746
179,876
205,083
97,815
407,092
1,413,032
1,185,605
1,119,411
61 to 90
--
--
12
13,612
298,147
204,015
327,050
135,895
495,992
1,474,723
1,031,905
944,687
91 to 180
--
--
1
4,405
13,425
345,982
361,210
467,236
1,503,899
2,696,158
2,827,156
1,388,206
181 to 360
--
--
--
1
4
17,340
32,971
31,739
2,820,840
2,902,895
2,429,502
1,590,587
More than 360
--
--
--
--
--
--
--
--
235,467
235,467
209,781
1,556,777
Subtotal
--
--
2,344,095
3,102,973
2,262,417
4,439,049
3,124,076
2,455,698
12,878,868
30,607,176
25,290,598
21,619,538
371,908,975
138,406,858
115,445,140
25,554,494
6,303,264
12,353,177
5,351,886
7,132,731
19,570,307
702,026,832
717,849,202
682,187,656
Installments overdue
Total
(1) Operations with third party risk linked to government funds and programs, primarily Pronaf, Procera, FAT, BNDES and FCO. They include 33,003 thousand of overdue installments, which comply with rules defined in each
program for reimbursement by the program managers and, therefore, do not represent a credit risk for the Bank.
47
st
1 quarter 2016
e) Allowance for loan losses by risk level
Mar 31, 2016
Level
of risk
AA
%
Provision
Value of
loans
Minimum
required
allowance
Dec 31, 2015
Additional
allowance (1)
Existent
allowance
Value of
loans
Minimum
required
allowance
Mar 31, 2015
Additional
allowance (1)
Existent
allowance
Value of
loans
Minimum
required
allowance
Additional
allowance (1)
Existent
allowance
--
371,908,975
--
--
--
373,297,999
--
--
--
397,872,508
--
--
--
A
0.5
138,406,858
692,034
74,640
766,674
144,777,671
723,888
145,036
868,924
96,105,675
480,528
47,844
528,372
B
1
115,445,140
1,154,451
--
1,154,451
124,924,839
1,249,248
181,690
1,430,938
121,120,805
1,211,208
--
1,211,208
C
3
25,554,494
766,635
66,315
832,950
25,525,757
765,773
291,326
1,057,099
28,913,662
867,410
77,889
945,299
D
10
6,303,264
630,326
51,817
682,143
11,032,891
1,103,289
149,499
1,252,788
4,983,222
498,322
60,861
559,183
E
30
12,353,177
3,705,953
587,105
4,293,058
11,796,903
3,539,071
1,300,232
4,839,303
11,173,459
3,352,038
689,577
4,041,615
F
50
5,351,886
2,675,943
271,862
2,947,805
4,767,971
2,383,986
642,265
3,026,251
4,216,510
2,108,255
319,311
2,427,566
G
70
7,132,731
4,992,912
157,336
5,150,248
3,806,414
2,664,490
518,450
3,182,940
2,791,311
1,953,918
184,797
2,138,715
H
100
19,570,307
19,570,307
--
19,570,307
17,918,757
17,918,757
--
17,918,757
15,010,504
15,010,504
--
15,010,504
702,026,832
34,188,561
1,209,075
35,397,636
717,849,202
30,348,502
3,228,498
33,577,000
682,187,656
25,482,183
1,380,279
26,862,462
Total
(1) Refers to the additional provision over and above the minimum required by CMN Resolution 2,682/1999. This provision is established based on the experience of Management, by making projections for the loan portfolio, based
on the history of default of operations and in accordance with good banking practice.
48
st
1 quarter 2016
f) Changes in allowance for loan losses
Includes loans, leases and other receivables with characteristics of credit.
1st quarter/2016
1st quarter/2015
Opening balance
33,577,000
25,294,947
Provision/(reversal)
7,124,193
5,654,426
9,143,616
5,679,645
(2,019,423)
(25,219)
Minimum required allowance
Additional allowance
Exchange fluctuation - foreign allowances
(127,696)
75,180
Write-off
(5,175,861)
(4,162,091)
Closing balance
35,397,636
26,862,462
g) Changes in allowance for other loan losses
Includes provisions for other receivables without characteristics of credit.
1st quarter/2016
Opening balance
1st quarter/2015
1,287,621
1,041,399
Provision/(reversal)
2,836
(49,940)
Exchange fluctuation - foreign allowances
(854)
4,005
203
16,641
1,289,806
1,012,105
Write-off/other adjustments
Closing balance
h) Leasing portfolio by maturity
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Up to 1 year (1)
339,682
352,475
346,982
More than 1 year and up to 5 years
415,977
519,337
531,710
266
3,023
5,041
755,925
874,835
883,733
Over 5 years
Total present value
(1) Includes amounts related to overdue installments.
i) Income from leasing transactions
1st quarter/2016
Lease revenue
94,847
Leasing
Lease expenses
Leasing
Loss on disposal of leased assets
Total
1st quarter/2015
112,978
94,847
112,978
(55,375)
(71,510)
(55,319)
(71,465)
(56)
(45)
39,472
41,468
j) Concentration of loans
Mar 31, 2016
% of credit
portfolio
Dec 31, 2015
% of credit
portfolio
Mar 31, 2015
% of credit
portfolio
Largest debtor
25,561,879
3.6
25,120,839
3.5
21,321,617
3.1
10 largest debtors
88,979,659
12.7
92,471,599
12.9
79,946,320
11.7
20 largest debtors
119,654,320
17.0
122,894,723
17.1
110,496,254
16.2
50 largest debtors
162,710,073
23.2
168,071,302
23.4
151,941,814
22.3
100 largest debtors
190,698,907
27.2
197,567,210
27.5
180,352,335
26.4
49
st
1 quarter 2016
k) Renegotiated credits
1st quarter/2016
Credits renegotiated during the period
(1)
1st quarter/2015
9,812,239
10,221,969
Renegotiated when past due (2)
3,611,239
1,766,641
Renovated (3)
6,201,000
8,455,328
19,652,990
9,030,112
3,611,239
1,766,641
Changes on credits renegotiated when past due
Opening balance
Contracts
(2)
Interest (received) and appropriated
(448,654)
(98,945)
Write-off
(777,385)
(514,339)
22,038,190
10,183,469
9,495,142
6,110,873
Closing balance
(4)
Allowance for loan losses of the portfolio renegotiated when past due
(%) Allowance for loan losses on the portfolio
90 days default of the portfolio renegotiated when past due
(%) Portfolio default
43.1%
60.0%
4,302,909
1,587,602
19.5%
15.6%
(1) Represents the balance of all installments (past due and future) of loans renegotiated during the period using the internet, automated teller
machines (ATM) or branch network.
(2) Renegotiated credit under debt composition as a result of payment delay by the clients.
(3) Renegotiated current credits (i.e. not past due) in the form of the extension or renewal of the credit or the granting of new loans for partial or full
settlement of previous contracts or any other type of agreement that changes the maturity or the payment terms, originally agreed.
(4) Includes the amount of R$ 111,935 thousand (R$ 151,341 thousand as of March 31, 2015) related to renegotiated rural credits. The amount of
R$ 5,336,999 thousand (R$ 5,276,075 thousand as of March 31, 2015), related to deferred credits from rural portfolio governed by specific
legislation, is not included.
l) Supplementary information
Mar 31, 2016
Undrawn credit lines
Dec 31, 2015
Mar 31, 2015
143,895,263
144,106,823
156,591,909
Guarantees provided (1)
8,996,932
9,730,748
8,508,488
Confirmed export credit
188,370
3,498,059
2,797,373
Contracted credit opened for import
944,478
1,239,989
958,074
Linked resources
2,880,137
2,772,443
1,426,589
Guaranteed values for linked deposits
2,812,354
2,723,589
1,410,020
(1) For these operations, the Bank maintains an allowance recorded in other liabilities - sundry, (Note 20,e) totaling R$ 501,898 thousand
(R$ 541,312 thousand, on December 31, 2015 and R$ 301,401 thousand on March, 31, 2015) calculated in accordance with Resolution CMN
2,682/1999.
m) Loan operations by line of credit from Fund for Workers’ Assistance (Fundo de Amparo ao
Trabalhador – FAT)
Lines of FAT
TADE (1)
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
2,574,692
2,682,826
3,104,243
Proger Urbano Investimento
18/2005
2,574,686
2,682,793
3,104,221
Proger Urbano Capital de Giro
15/2005
6
6
7
Proger Urbano Empreendedor Popular
01/2006
Financing
--
27
15
517,996
551,349
631,802
Proger Exportação
27/2005
37,348
40,203
9,256
FAT Taxista
02/2009
312,356
306,224
257,109
FAT Turismo - Investimento
01/2012
128,569
138,424
159,817
FAT Turismo - Capital de Giro
02/2012
39,723
66,498
205,620
107,541
117,358
247,644
Proger Rural Custeio
02/2006
751
887
1,717
Proger Rural Investimento
13/2005
13,364
13,865
22,200
Pronaf Custeio
04/2005
2,673
2,709
3,488
Pronaf Investimento
05/2005
86,789
95,907
212,403
Giro Rural - Aquisição de Títulos
03/2005
Total
3,964
3,990
7,836
3,200,229
3,351,533
3,983,689
(1) TADE - Allocation Term of Special Deposits.
50
st
1 quarter 2016
11 - OTHER RECEIVABLES
a) Specific credits
Mar 31, 2016
Extension of rural credits - National Treasury
Dec 31, 2015
Mar 31, 2015
343,983
333,908
Other
716
696
1,590,988
787
Total
344,699
334,604
1,591,775
b) Sundry
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Deferred tax asset - tax credit (Note 24.e)
40,959,045
39,995,482
28,310,795
Sundry debtors from escrow deposits - contingencies (Note 27.g.1)
28,363,420
27,359,764
22,717,259
Credit card operations (Note 10.a)
21,541,905
22,940,041
20,275,224
Sundry debtors from escrow deposits - lawsuit (Note 27.h.1)
16,650,943
16,399,235
15,637,858
Credit linked to acquired operations (Note 10.a) (1)
15,973,453
15,266,721
15,339,481
Fund of allocation of surplus - Previ (Note 26.f)
9,325,763
9,079,921
8,599,030
Income tax and social contribution to offset
8,837,801
8,046,349
11,902,155
Receivables acquisition
3,366,825
3,862,570
3,529,818
Receivables - other
3,096,083
3,679,591
1,311,288
Sundry debtors - domestic
2,162,525
2,313,728
3,074,908
Premiums on credits linked to operations acquired in assignment
1,851,015
1,718,461
2,056,370
National Treasury - interest rate equalization - agricultural crop - Law
8,427/1992
1,356,904
3,384,982
12,715,116
Receivables - non-financial companies
1,242,147
1,511,529
15,650
Receivables - National Treasury (2)
1,002,162
1,021,565
2,175,361
Rights for acquisition of royalties and government credits
955,266
996,876
1,085,005
Receivables – ECT – Banco Postal
773,838
1,498,881
1,360,737
Salary advances and other advances
256,298
286,804
255,795
Sundry debtors - foreign
216,050
191,166
247,629
Actuarial assets (Note 26.e)
174,650
169,474
6,499,810
Sundry debtors from escrow deposits - other
60,979
60,013
57,758
Sundry debtors for purchasing assets
22,979
41,142
50,390
--
1,093,351
3,382,782
Advances to cards transactions processing’s companies
Other
624,263
511,769
573,407
Total
158,814,314
161,429,415
161,173,626
Current assets
96,522,143
100,389,034
109,375,671
Non-current assets
62,292,171
61,040,381
51,797,955
(1) Refers to the portfolios of payroll loans and vehicle financing granted to individuals, acquired by the Bank through assignments with full recourse
to the transferor, accounted for in accordance with CMN Resolution 3,533/2008.
(2) Refers mainly to amounts from subsidies in operations with MCR 6-2 resources, MCR 6-4 (Rural Credit Manual) and they are supported by
specific legislation, like the CMN resolutions, the program of Bahia's cocoa farming recovery (CMN Resolution No. 2,960/2002), the Family
Agriculture Price Guarantee Program (PGPAF) and the regional funds (FNDE, FDA and FDCO).
51
st
1 quarter 2016
12 - FOREIGN EXCHANGE PORTFOLIO
a) Breakdown
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Other Receivables
Exchange purchases pending settlement
Bills of exchange and time drafts in foreign currency
Receivables from sales of foreign exchange
(Advances received in National/foreign currency)
Foreign currency receivables
Income receivable on advances granted and on financed imports
Total
Current assets
Non-current assets
21,511,293
20,789,338
19,125,892
44,460
48,204
39,601
18,253,056
11,730,483
9,141,778
(15,673,806)
(11,378,722)
(8,222,257)
1,124
1,805
6,997
258,131
229,014
181,313
24,394,258
21,420,122
20,273,324
23,082,698
19,847,057
20,273,324
1,311,560
1,573,065
--
18,632,582
14,025,881
13,592,767
(13,843)
(11,721)
(20,964)
21,853,809
18,491,690
15,775,250
(17,744,351)
(16,993,015)
(12,177,698)
63,328
72,204
69,858
Other liabilities
Exchange sales pending settlement
(Financed imports)
Exchange purchase liabilities
(Advances on exchange contracts)
Foreign currency payables
Unearned income on advances granted
Total
Current liabilities
Non-current liabilities
Net Foreign Exchange Portfolio
11,967
14,901
5,013
22,803,492
15,599,940
17,244,226
22,167,222
13,737,534
14,409,414
636,270
1,862,406
2,834,812
1,590,766
5,820,182
3,029,098
1,006,666
1,293,982
1,092,835
188,370
3,498,059
2,797,373
Memorandum Accounts
Credit opened for imports
Confirmed export credit
b) Foreign exchange results
1st quarter/2016
Exchange income
Exchange expenses
Foreign Exchange Result
1st quarter/2015
5,267,366
5,299,167
(4,637,089)
(4,993,987)
630,277
305,180
52
st
1 quarter 2016
13 - OTHER ASSETS
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Assets not for own use
274,093
271,143
289,548
Assets in special regime
168,877
166,729
154,656
Real estate
47,023
50,104
76,256
Residential properties
15,917
13,605
9,600
3,670
3,693
4,022
509
516
488
38,097
36,496
44,526
60,878
61,390
59,522
334,971
332,533
349,070
(123,397)
(120,940)
(129,643)
332,284
285,034
375,240
150,749
162,348
133,505
Entities abroad
73,400
84,229
73,018
Tax expenses
40,160
27
34,917
Promotion and public relations
36,998
--
32,259
Rent
5,787
5,810
5,878
Premiums for purchased payroll credits (2)
5,318
11,953
71,978
Machinery and equipment
Vehicles
Other
Materials in stock
Subtotal
(Impairment) (1)
Prepaid Expenses
Personnel expenses - meal program
Commissions paid to car dealers - financing of vehicles
Other
Total
Current assets
Non-current assets
--
--
54
19,872
20,667
23,631
543,858
496,627
594,667
527,813
480,840
524,532
16,045
15,787
70,135
(1) The Bank recognized, in the 1st quarter/2016, allowance expenses for impairment losses of assets not in use in the amount of R$ 3,240 thousand
(allowance expenses in the amount of R$ 360 thousand in the 1st quarter/2015).
(2) The amounts are amortized over the maturity of the installments of loans acquired from other financial institutions.
53
st
1 quarter 2016
14- INVESTMENTS
a) Changes in associates and joint ventures
Book value
Dec 31, 2015
Domestic
(1)
Changes - 1st quarter/2016
Dividends
Other Events
Book value
Equity income
Mar 31, 2016
Equity income
Mar 31, 2015
1st quarter/2015
15,100,387
(1,077,151)
210,500
1,024,064
15,257,800
13,577,830
997,442
3,828,153
(28,602)
188,563
47,280
4,035,394
3,804,661
74,647
Cateno Gestão de Contas de
Pagamento S.A.
3,631,654
(35,643)
(3,667)
38,242
3,630,586
3,608,035
12,235
Cielo S.A.
1,834,175
(22,663)
377
272,307
2,084,196
1,434,351
256,625
BB Mapfre SH1 Participações S.A.
1,978,221
(517,431)
14,933
288,312
1,764,035
1,610,511
297,859
Brasilprev Seguros e Previdência S.A.
1,790,343
(215,874)
531
167,105
1,742,105
1,450,893
165,614
Mapfre BB SH2 Participações S.A.
1,657,372
(55,000)
7,334
21,492
1,631,198
1,491,918
46,251
Neoenergia S.A.
1,168,345
--
--
19,581
1,187,926
1,166,259
23,245
747,076
--
11,850
51,787
810,713
637,379
53,163
IRB - Brasil Resseguros S.A.
659,379
(108,415)
7,408
31,613
589,985
569,059
26,087
Brasilcap Capitalização S.A.
294,480
(93,210)
--
90,040
291,310
258,501
69,857
Other investments
181,360
(313)
(1,457)
(3,695)
175,895
181,144
(28,141)
Goodwill/(Bargain) purchase on
acquisition of investments
707,512
--
(44,324)
--
663,188
829,657
--
(3,377,683)
--
28,952
--
(3,348,731)
(3,464,538)
--
180,830
--
(37,430)
--
143,400
231,619
--
180,830
--
(37,430)
--
143,400
231,619
--
15,281,217
(1,077,151)
173,070
1,024,064
15,401,200
13,809,449
997,442
(9,018)
--
--
--
(9,018)
(9,018)
--
Unrealized gains
(2)
Overseas
Goodwill on acquisition of investments
Total investments
(1) Excluded unrealized result arising from transactions with the Banco do Brasil.
(2) Unrealized profit arising from a new strategic partnership between BB Elo Cartões Participações S.A. and Cielo S.A., forming Cateno Gestão de
Contas de Pagamento S.A. (Note 2).
Capital stock
Adjusted
Shareholders’
Equity
Net income/
(loss) 1st
quarter/2016
Number of shares (in thousands)
Common
Preferred
Ownership
interest in the
total capital %
Domestic
7,483,756
8,080,002
86,211
43,114,693
9,581,043
50.00%
414,000
12,103,493
127,473
10,787,400
1,198,600
30.00%
Cielo S.A.
2,500,000
7,254,954
964,384
540,500
--
28.73%
BB Mapfre SH1 Participações S.A. (2)
2,050,198
2,352,184
384,470
1,039,908
2,079,400
74.99%
943,417
2,357,393
222,822
572
1,145
75.00%
1,968,380
3,263,301
42,982
369,163
384,231
50.00%
4,739,025
10,038,280
190,883
701,327
--
11.99%
800,227
1,621,750
103,595
372
--
49.99%
1,453,080
2,898,905
212,372
63,727
--
20.43%
231,264
437,009
135,073
107,989
107,989
66.66%
Cateno Gestão de Contas de Pagamento S.A.
Neoenergia S.A.
(2)
(2)
(2)
(1)
(1) Indirect interest of the Bank in Cateno, through its subsidiary BB Elo Cartões Participações S.A. The total share of the Bank is 50.11% (Cielo S.A.
holds 70% of direct interest in Cateno).
(2) Equity interest held by BB Seguros Participações S.A. The percentage of total participation is in Note 3.b. It includes harmonization adjustments in
accounting practices.
54
st
1 quarter 2016
Capital stock
Adjusted
Shareholders’
Equity
Net income/
(loss) 2015
Common
Preferred
Ownership
interest in the
total capital %
Domestic
(1)
Cielo S.A.
(2)
Brasilprev Seguros e Previdência S.A.
(2)
(2)
Neoenergia S.A.
(2)
(2)
7,483,756
7,731,074
481,720
43,114,693
9,581,043
50.00%
414,000
12,094,830
443,747
2,397,200
1,198,600
30.00%
2,500,000
6,386,403
3,170,289
540,500
--
28.72%
2,050,198
2,637,803
1,680,709
1,039,908
2,079,400
74.99%
943,417
2,423,237
1,155,543
572
1,145
75.00%
1,968,380
3,315,651
430,940
369,163
384,231
50.00%
4,739,025
9,872,539
467,529
701,327
--
11.99%
800,227
1,494,451
468,070
372
--
49.99%
1,453,080
3,226,706
761,614
63,727
--
20.43%
231,264
441,764
360,460
107,989
107,989
66.66%
Capital stock
Adjusted
Shareholders’
Equity
Net income/
(loss) 1st
quarter/2015
Common
Preferred
Ownership
interest in the
total capital %
Domestic
7,483,756
7,678,712
121,854
43,114,693
9,581,043
50.00%
414,000
12,026,784
40,783
10,787,400
1,198,600
30.00%
2,000,000
4,989,360
893,870
450,417
--
28.75%
2,050,197
2,147,458
397,201
1,039,908
2,079,400
74.99%
943,417
1,971,369
220,072
572
1,145
75.00%
Mapfre BB SH2 Participações S.A. (2)
1,968,380
2,984,741
92,500
369,163
384,231
50.00%
Neoenergia S.A.
4,739,025
9,857,530
121,798
2,267,492
--
11.99%
800,227
1,275,013
106,347
372
--
49.99%
1,453,080
2,793,121
128,370
63,727
--
20.43%
231,264
387,790
104,795
107,989
107,989
66.66%
Cielo S.A.
(2)
(2)
(2)
(1)
55
st
1 quarter 2016
b) Financial information from the equity interest not included in the consolidated financial
statements
Mar 31, 2016
Brasilprev
Seguros e
Previdência S.A.
Balance sheet
Total Assets
Loan operations
Other credits and other assets
Permanent assets
Total Liabilities
Deposits and securities sold under repurchase
agreements
Other liabilities
Technical provisions for insurance, pension
plans and capitalization
Subordinated debts and equity and debt hybrid
securities
Other
Shareholders' Equity
% of Total Share
Shareholders' Equity (proportional to the equity
interest)
Goodwill/(Bargain) purchase on acquisition of
investments
Other amounts (1)
Balance of the Investment
Banco
Votorantim
S.A
Brasilcap
Capitalização
S.A.
BB Mapfre SH1
Participações
S.A.
Mapfre BB SH2
Participações
S.A.
IRB - Brasil
Resseguros
S.A.
Other
investments
Cielo S.A.
Total
160,636,244
109,398,737
13,175,113
13,627,055
14,455,676
14,110,042
22,457,500
14,382,123
3,614
209,863
399
171,164
208,719
13,884
39,245
508
362,242,490
647,396
--
17,030,291
--
--
--
635,534
138,844
102,809
17,907,478
158,920,633
34,046,412
12,154,256
6,043,402
4,598,371
5,448,140
390,400
419,030
222,020,644
--
43,291,742
--
--
--
--
--
--
43,291,742
1,512,445
14,209,038
1,012,075
7,049,721
9,200,399
7,718,448
11,427,079
1,170,701
53,299,906
199,552
611,391
8,383
362,768
448,187
294,036
10,461,932
12,689,075
25,075,324
158,278,851
101,318,735
12,738,104
11,274,871
11,192,375
11,211,137
15,202,546
2,228,862
323,445,481
--
41,143,381
--
--
--
--
--
--
41,143,381
158,278,851
60,175,354
12,738,104
11,274,871
11,192,375
11,211,137
15,202,546
2,228,862
282,302,100
157,295,940
--
11,723,268
8,272,461
8,057,851
8,985,554
--
--
194,335,074
--
5,709,372
--
--
--
--
--
--
5,709,372
982,911
54,465,982
1,014,836
3,002,410
3,134,524
2,225,583
15,202,546
2,228,862
82,257,654
2,357,393
8,080,002
437,009
2,352,184
3,263,301
2,898,905
7,254,954
12,153,261
38,797,009
75.00%
50.00%
66.66%
74.99%
50.00%
20.43%
28.73%
--
--
1,767,927
4,040,001
291,310
1,763,903
1,631,651
592,104
2,084,196
8,169,347
20,340,439
(1,561)
106,480
31,898
--
--
17,856
508,515
143,400
806,588
(25,822)
(4,607)
--
132
(453)
(2,119)
--
(5,712,958)
(5,745,827)
1,740,544
4,141,874
323,208
1,764,035
1,631,198
607,841
2,592,711
2,599,789
15,401,200
(1) It refers, mainly, to unrealized results and harmonization adjustments in accounting practices of non-financial companies to Chart of Accounts for
Financial Institutions - Cosif.
1st quarter/2016
Statement of Income
Income from financial
intermediation
Brasilprev
Seguros e
Previdência
S.A.
Banco
Votorantim
S.A.
145,029
851,650
Brasilcap
Capitalização
S.A.
212,810
BB Mapfre SH1
Participações
S.A.
190,477
Mapfre BB SH2
Participações
S.A.
191,705
IRB - Brasil
Resseguros
S.A.
Other
investments
Cielo S.A.
201,256
--
Total
--
1,792,927
Service fee income
430,217
117,862
--
--
2,239
--
2,030,853
674,867
3,256,038
(50,282)
(265,697)
(5,944)
(59,313)
(127,970)
(26,716)
(125,239)
(276,587)
(937,748)
(118,430)
(345,615)
40,938
518,817
9,662
114,709
(473,497)
76,661
(176,755)
--
(435)
108
(130)
(209)
13,977
(11,227)
1,058
3,142
406,534
357,765
247,912
649,851
75,427
303,226
1,420,890
475,999
3,937,604
(183,712)
(271,554)
(112,839)
(265,381)
(32,445)
(90,854)
(456,506)
(58,950) (1,472,241)
222,822
86,211
135,073
384,470
42,982
212,372
964,384
417,049
2,465,363
75.00%
50.00%
66.66%
74.99%
50.00%
20.43%
28.73%
--
--
167,105
43,106
90,040
288,312
21,492
43,377
277,047
138,157
1,068,636
--
4,174
--
--
--
(11,764)
(4,740)
(32,242)
(44,572)
167,105
47,280
90,040
288,312
21,492
31,613
272,307
105,915
1,024,064
Other Operating
Income/Expenses
Non-operating income
Result before tax
Tax about profit and profit sharing
Net Income
% of Total Share
Net Income (proportional to the
equity interest)
Other amounts (1)
Result in the equity method
investments
56
st
1 quarter 2016
Dec 31, 2015
Balance sheet
Total Assets
Loan operations
Permanent assets
Total Liabilities
agreements
Other liabilities
Technical provisions for insurance, pension plans
and capitalization
securities
Other
% of Total Share
interest)
investments
Other amounts
(1)
Brasilprev
Seguros e
Previdência
S.A.
Banco
Votorantim
S.A
Brasilcap
Capitalização
S.A.
BB Mapfre SH1
Participações
S.A.
Mapfre BB SH2
IRB - Brasil
Participações
Resseguros S.A.
S.A.
Other
investments
Cielo S.A.
Total
151,373,655
110,379,915
13,818,200
14,144,637
15,124,957
14,441,038
24,251,378
15,328,868
14
179,915
817
122,338
169,502
13,894
34,519
3,653
358,862,648
524,652
--
17,186,642
--
--
--
577,447
9,467
--
17,773,556
149,739,705
32,974,008
12,907,255
6,492,107
4,385,502
5,620,654
279,579
377,515
212,776,325
--
44,329,680
--
--
--
--
--
--
44,329,680
1,436,501
14,947,330
902,287
7,195,294
10,114,638
7,933,277
13,272,436
1,657,438
57,459,201
197,435
762,340
7,841
334,898
455,315
295,766
10,655,377
13,290,262
25,999,234
148,950,418
102,768,172
13,376,436
11,506,835
11,809,306
11,227,797
17,872,593
2,997,946
320,509,503
--
37,005,799
--
--
--
--
--
3,407
37,009,206
148,950,418
65,762,373
13,376,436
11,506,835
11,809,306
11,227,797
17,872,593
2,994,539
283,500,297
148,246,754
--
12,354,368
8,210,249
8,220,696
9,055,437
--
--
186,087,504
--
6,045,936
--
--
--
--
--
--
6,045,936
703,664
59,716,437
1,022,068
3,296,586
3,588,610
2,172,360
17,872,593
2,994,539
91,366,857
2,423,237
7,611,743
441,764
2,637,802
3,315,651
3,213,241
6,378,785
12,330,922
38,353,145
75.00%
50.00%
66.66%
74.99%
50.00%
20.43%
28.72%
--
--
1,817,428
3,805,872
294,480
1,978,088
1,657,826
656,308
1,831,987
8,140,618
20,182,607
(1,561)
121,597
34,187
--
--
17,856
535,433
180,830
888,342
(27,085)
22,281
--
132
(453)
3,071
(1,353,939)
(4,433,739)
(5,789,732)
1,788,782
3,949,750
328,667
1,978,220
1,657,373
677,235
1,013,481
3,887,709
15,281,217
Mar 31, 2015
Brasilprev
Seguros e
Previdência
S.A.
Total Assets
Loan operations
Permanent assets
Total Liabilities
agreements
Other liabilities
Technical provisions for insurance, pension plans
and capitalization
securities
Other
% of Total Share
interest)
investments
Other amounts
(1)
Banco
Votorantim
S.A
Brasilcap
Capitalização
S.A.
BB Mapfre SH1
Participações
S.A.
Mapfre BB SH2
IRB - Brasil
Participações
Resseguros S.A.
S.A.
Other
investments
Cielo S.A.
Total
122,986,991
105,734,915
12,862,183
12,084,651
14,064,914
13,460,766
21,979,707
14,216,479
5,015
123,696
590
63,595
261,061
34,347
5,668
11,627
317,390,606
505,599
--
14,743,120
--
--
--
343,221
--
79
15,086,420
121,641,204
29,462,601
12,026,360
5,298,967
4,029,862
5,214,479
132,540
375,840
178,181,853
--
48,613,802
--
--
--
--
--
--
48,613,802
1,148,154
11,876,537
823,458
6,476,836
9,106,950
7,582,355
11,434,276
1,556,696
50,005,262
192,618
915,159
11,775
245,253
667,041
286,364
10,407,223
12,272,237
24,997,670
121,015,622
98,056,203
12,474,393
9,937,193
11,080,173
10,667,645
16,990,347
2,128,351
282,349,927
--
34,155,157
--
--
--
--
--
--
34,155,157
121,015,622
63,901,046
12,474,393
9,937,193
11,080,173
10,667,645
16,990,347
2,128,351
248,194,770
120,327,662
--
11,685,681
7,227,330
7,572,522
8,566,546
--
--
155,379,741
--
6,629,352
--
--
--
--
--
--
6,629,352
687,960
57,271,694
788,712
2,709,863
3,507,651
2,101,099
16,990,347
2,128,351
86,185,677
1,971,369
7,678,712
387,790
2,147,458
2,984,741
2,793,121
4,989,360
12,088,128
35,040,679
75.00%
50.00%
66.66%
74.99%
50.00%
20.43%
28.75%
--
--
1,478,428
3,839,356
258,501
1,610,379
1,492,371
570,498
1,434,351
7,995,653
18,679,537
(1,561)
165,083
42,453
--
--
17,856
605,826
233,178
1,062,835
(27,534)
(34,695)
--
132
(454)
(1,439)
--
(5,868,933)
(5,932,923)
1,449,333
3,969,744
300,954
1,610,511
1,491,917
586,915
2,040,177
2,359,898
13,809,449
57
st
1 quarter 2016
1st quarter/2015
Brasilprev
Seguros e
Previdência
S.A.
Income from financial
intermediation
163,253
Banco
Votorantim
S.A.
Brasilcap
Capitalização
S.A.
BB Mapfre SH1
Participações
S.A.
Mapfre BB SH2
Participações
S.A.
729,738
124,469
178,227
158,164
IRB - Brasil
Resseguros
S.A.
Cielo S.A.
Other
investments
143,782
--
--
1,497,633
Total
Service fee income
344,557
110,532
--
--
2,906
--
1,893,270
552,660
2,903,925
(44,734)
(277,581)
(10,380)
(44,414)
(120,512)
(24,062)
(120,626)
(251,223)
(893,532)
Other Operating
Income/Expenses
(94,080)
(261,057)
60,564
488,982
119,237
91,950
(468,299)
20,118
(42,585)
Non-operating income
Result before tax
Tax about profit and profit
sharing
Net Income
% of Total Share
Net Income (proportional to the
equity interest)
Other amounts (1)
Result in the equity method
investments
18
(2,976)
100
59
107
12,379
(5,324)
(7,858)
(3,495)
369,014
298,656
174,753
622,854
159,902
224,049
1,299,021
313,697
3,461,946
(148,942)
(176,802)
(69,958)
(225,653)
(67,402)
(95,679)
(405,151)
(55,001)
(1,244,588)
220,072
121,854
104,795
397,201
92,500
128,370
893,870
258,696
2,217,358
75.00%
50.00%
66.66%
74.99%
50.00%
20.43%
28.75%
--
--
165,043
60,927
69,857
297,859
46,251
26,220
256,972
85,383
1,008,512
571
13,720
--
--
--
(133)
(347)
(24,881)
(11,070)
165,614
74,647
69,857
297,859
46,251
26,087
256,625
60,502
997,442
c) Other investments
Mar 31, 2016
Tax incentive investments
Dec 31, 2015
35,189
Equity securities
Stocks and shares
Other investments
Other equity abroad
Mar 31, 2015
35,189
33,596
57
58
58
89,227
89,346
79,950
7,525
7,625
7,534
84,835
93,082
76,469
Total
216,833
225,300
197,607
(Accumulated impairment)
(45,243)
(45,251)
(45,234)
d) Goodwill arising on acquisition of investments
Changes of goodwill
BB Consolidated
1st quarter/2016
1st quarter/2015
Opening balance
889,903
1,077,869
Amortizations (1)
(52,274)
(50,550)
Foreign exchange fluctuation
(2)
Closing balance
(29,480)
35,518
808,149
1,062,837
(1) Recorded in Other Administrative Expenses.
(2) Levied on the goodwill from BB Americas e do Banco Patagonia.
58
st
1 quarter 2016
e) Expected goodwill amortization
2016
Banco do Brasil
2017
2018
2019
After 2020
Total
67,422
90,617
30,541
31,141
30,159
249,880
Banco Votorantim
45,347
61,133
--
--
--
106,480
Banco Patagonia
18,016
21,866
22,289
22,733
19,267
104,171
4,059
7,618
8,252
8,408
10,892
39,229
(30,340)
(40,778)
(13,743)
(14,013)
(13,572)
(112,446)
37,082
49,839
16,798
17,128
16,587
137,434
BB-BI
80,752
123,517
141,696
162,550
--
508,515
Cielo
80,752
123,517
141,696
162,550
--
508,515
Banco do Brasil Americas
Tax effects
(1)
Net Total
Other investments
12,687
10,743
11,040
10,028
5,256
49,754
Brasilcap
6,866
8,593
8,780
7,659
--
31,898
IRB-Brasil Resseguros S.A.
5,821
2,150
2,260
2,369
5,256
17,856
BB Seguros
BB Consolidated
160,861
224,877
183,277
203,719
35,415
808,149
Tax effects (1)
(70,992)
(100,013)
(81,260)
(90,570)
(15,359)
(358,194)
89,869
124,864
102,017
113,149
20,056
449,955
Net Total
(1) 25% of income tax and 20% of social contribution for financial companies and for non-financial companies of insurance, private pension plan and
capitalization, and 25% of income tax and 9% of social contribution for other non-financial companies.
The expected amortization of goodwill arising on the acquisition of investments is based on the projections of results
made at the time of the purchase, prepared by specialized firms or technical departments within the Bank, and
considers the timing of the estimates and discount rates used in calculating the net present value of expected cash
flows.
f) Goodwill impairment test
The recoverable amount of goodwill arising on acquisition of investments is determined by the value in use, which is
the discounted value of the cash flow projections of the invested entity (cash-generating unit).
Assumptions used to project these cash flows are based on public information, budgets and / or business plans of the
purchased entities. These assumptions consider current and past performance, as well as expected market and
macroeconomic growth.
The cash flow of the entities below were actively projected for ten years and considered perpetual from the eleventh
year with fixed growth rates. For the periods that exceed the terms of the budget or business plan, the growth
estimates are in line with those adopted by the entities. The nominal discount rate is determined annually based on
the CAPM (Capital Asset Pricing Model) adapted for the Brazilian market and referenced in Reais (R$).
Entity (cash-generating unit)
Growth rate p.a. (1)
Discount rate p.a. (2)
Banco Votorantim
4,2%
15,5%
BB Americas
2,0%
8,19%
25,5%
34,65%
Banco Patagonia
(1) Nominal growth in perpetuity.
(2) Geometric average of ten years of projections, except BB Americas, that considered a geometric average of seven years of projections.
According to the sensitivity analysis performed, there is no indication that changes in the assumptions would cause
the book value of the cash-generating units to exceed the recoverable amount.
The recoverable amount of the goodwill arising on the acquisition of Cielo, as well as of the goodwill recognized in
the BB Seguros/BB Seguridade, is determined by the net realizable value through sale, based on the share price of
the companies on BM&FBovespa.
59
st
1 quarter 2016
Entity (cash-generating unit)
Share price
(1)
BB Seguridade (BBSE3)
R$ 24,81
Cielo (CIEL3)
R$ 36,66
(1) Share price quoted at September 30, 2015.
In the first quarter 2016 and in the first quarter 2015, there was no impairment loss on goodwill arising on the
acquisition of investments.
15- PROPERTY AND EQUIPMENT
Dec 31, 2015
Book value
1st quarter/2016
Changes
Depreciation
Mar 31, 2016
Cost value
Accumulated
depreciation
Accumulated
impairment
Mar 31, 2015
Book value
Book value
Buildings
3,867,155
(11,554)
(90,369)
6,587,800
(2,813,037)
(9,531)
3,765,232
3,724,909
Furniture and equipment in use
1,488,760
27,163
(62,838)
3,424,957
(1,971,847)
(25)
1,453,085
1,426,865
Data processing systems
1,186,740
27,736
(106,633)
4,152,530
(3,044,687)
--
1,107,843
1,131,748
Facilities
207,947
(911)
(8,665)
985,792
(787,421)
--
198,371
204,704
Land
197,476
5,100
--
202,576
--
--
202,576
199,968
Security systems
162,518
7,811
(6,946)
399,576
(236,193)
--
163,383
162,773
Constructions in progress
102,952
44,949
--
147,901
--
--
147,901
90,583
Communication systems
100,085
16,355
(4,539)
275,609
(163,708)
--
111,901
89,698
Transport systems
7,652
104
(282)
14,995
(7,521)
--
7,474
7,620
Furniture and equipment in stock
1,749
(29)
--
1,720
--
--
1,720
1,763
7,323,034
116,724
(280,272)
16,193,456
(9,024,414)
(9,556)
7,159,486
7,040,631
Total
16 - INTANGIBLE ASSETS
a) Changes and breakdown
Dec 31, 2015
Book value
1st quarter/2016
Mar 31, 2016
Mar 31, 2015
Acquisitions
Amortization
Cost value
Accumulated
amortization
Accumulated
impairment
Book value
Book value
Rights to manage payroll
5,301,265
2,500
(461,721)
9,342,060
(4,450,276)
(49,740)
4,842,044
6,047,586
Goodwill on acquisition of absorbed company (1)
1,907,615
--
(225,039)
4,961,028
(3,278,452)
--
1,682,576
2,513,431
Softwares
1,709,152
85,535
(53,145)
2,768,767
(1,027,225)
--
1,741,542
1,387,411
392,840
23,664
(43,710)
615,683
(242,889)
--
372,794
242,740
9,310,872
111,699
(783,615)
17,687,538
(8,998,842)
(49,740)
8,638,956
10,191,168
Other intangible assets
Total
(1) Refers to the goodwill from the merger of Banco Nossa Caixa on November 2009.
b) Estimate for amortization
Amounts to be amortized
2016
2017
2018
2,219,422
2,641,430
1,497,554
2019
956,524
2020
385,820
After 2020
938,206
Total
8,638,956
c) Impairment test
The impairment test of goodwill on the acquisition of Banco Nossa Caixa, which was merged into Banco do Brasil,
considers the value in use of Banco do Brasil´s operations in the state of São Paulo (cash-generating unit). Cash
flows are based on cash-generating unit results in 2015, and on the 2016 and 2017 budgets and internal projections
of results from 2018, for five years.
The assumptions adopted for the calculation are based on Banco do Brasil's Corporate Strategy and macroeconomic
scenario. They consider the current and past performance and expected growth in the market segment.
Cash flows were discounted by the Bank’s cost of own capital. The nominal discount rate is measured annually
based on the Capital Asset Pricing Model – CAPM adapted for the Brazilian market and referenced in Reais (R$).
60
st
1 quarter 2016
The impairment test of the goodwill from the merger of Brasilprev Nosso Futuro Seguros e Previdência S.A. follows
the same methodology of the goodwill on acquisition of investments listed in
Entity (Cash-generating unit)
Banco do Brasil - state of São Paulo - Goodwill Banco Nossa Caixa
Growth rate p.a
(1) (2)
Discount rate p.a.
2.5%
15.3%
(1) Nominal growth in perpetuity.
(2) Geometric average of five years of projections.
According to the sensitivity analysis performed, there is no indication that changes in the assumptions would cause
the book value of the cash-generating unit to exceed its recoverable amount.
st
st
In the 1 quarter 2016 and 1 quarter 2015, there was no impairment loss on goodwill on merged company.
17 - DEPOSITS AND SECURITIES SOLD UNDER REPURCHASE AGREEMENTS
a) Deposits
Mar 31, 2016
Demand Deposits
Dec 31, 2015
Mar 31, 2015
62,631,054
66,549,760
73,704,884
Individuals
27,589,165
31,156,677
31,534,604
Companies
19,600,472
23,101,575
23,617,582
Restricted
11,210,993
5,648,623
13,346,647
1,567,519
1,808,898
1,705,357
Financial system institutions
733,044
617,029
653,865
Foreign currency
710,508
774,883
899,790
Related companies
683,705
2,306,081
1,235,899
Special from Federal Treasury
282,848
268,841
413,834
Domiciled abroad
127,629
75,041
68,124
Other
125,171
792,112
229,182
151,919,172
151,845,281
144,089,086
141,591,867
142,195,252
134,945,842
9,931,655
9,302,317
8,840,276
380,515
332,789
289,235
15,135
14,923
13,733
36,885,394
41,482,547
36,736,128
202,573,182
204,542,130
211,894,634
114,139,941
113,652,254
118,590,770
National currency
56,691,197
58,101,859
62,707,811
Foreign currency
26,428,218
27,256,485
25,267,566
3,835,218
4,102,449
4,148,296
287,403
263,488
242,016
1,191,205
1,165,595
938,175
29,943
--
--
Total
454,038,745
464,419,718
466,424,732
Current liabilities
397,930,613
406,119,891
403,984,256
56,108,132
58,299,827
62,440,476
Government
Saving Deposits
Individuals
Companies
Related companies
Financial system institutions
Interbank Deposits
Time Deposits
Judicial
Fundo de Amparo ao Trabalhador - FAT (Note 17.e)
Funproger (Note 17.f)
Other
Other Deposits
61
st
1 quarter 2016
b) Segregation of deposits by repayment date
Without
maturity
Up to 3
months
Time deposits (1)
121,724,989
20,143,671
9,495,274
20,877,748
30,331,500
--
202,573,182
204,542,130
211,894,634
Saving deposits
151,919,172
--
--
--
--
--
151,919,172
151,845,281
144,089,086
62,631,054
--
--
--
--
--
62,631,054
66,549,760
73,704,884
2,304,215
13,361,111
16,321,184
3,994,223
865,118
39,543
36,885,394
41,482,547
36,736,128
Demand deposits
Interbank
deposits
Other deposits
Total
3 to 12
months
1 to 3 years
More than 5
years
3 to 5 years
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
29,943
--
--
--
--
--
29,943
--
--
338,609,373
33,504,782
25,816,458
24,871,971
31,196,618
39,543
454,038,745
464,419,718
466,424,732
(1) Includes the amount R$ 54,796,512 thousand (R$ 56,772,137 thousand as of Dec 31, 2015 and R$ 61,556,071 thousand as of Mar 31, 2015),
relating to time deposits with early repurchase clause (liquidity commitment), classified based on the contractual maturity dates.
c) Securities sold under repurchase agreements
Mar 31, 2016
Own Portfolio
Dec 31, 2015
Mar 31, 2015
48,685,181
68,880,140
44,221,747
Corporate bonds
30,470,744
52,141,995
37,847,989
16,874,661
14,615,322
5,203,538
1,339,776
2,122,823
1,170,220
305,723,178
264,641,508
284,943,972
129,153,521
117,828,280
198,855,434
116,262,471
399,993
36,058,615
60,307,125
146,413,188
50,029,921
61
47
2
Total
354,408,359
333,521,648
329,165,719
Current liabilities
320,626,154
294,973,701
299,403,708
33,782,205
38,547,947
29,762,011
Securities abroad
Third-Party Portfolio
Securities abroad
d) Expenses with deposits and with securities sold under repurchase agreements
1st quarter/2016
Deposits
1st quarter/2015
(6,408,476)
(7,834,392)
Saving deposits
(2,991,891)
(2,562,751)
Judicial deposits
(2,890,202)
(2,681,217)
Time deposits
(2,140,991)
(2,399,280)
Interbank deposits
1,614,608
(191,144)
(10,753,349)
(9,069,866)
(9,071,292)
(7,820,025)
Own portfolio
(1,682,057)
(1,249,841)
(5,907,960)
(4,221,933)
Agribusiness letters of credit
(3,879,979)
(2,761,712)
Financial bills
Funds from acceptance and issuance of securities (1)
(1,012,067)
(801,598)
Securities issues abroad
(540,285)
(278,786)
Letters of credit – Real estate
(475,629)
(379,837)
Subordinated debt abroad (2)
(152,094)
(137,066)
Equity and debt hybrid securities (3)(4)
(535,479)
(516,207)
Other
(186,723)
(179,956)
Total
(23,944,081)
(21,959,420)
(1) Funds from acceptance and issuance of securities are disclosed in Note 19.
(2) Subordinated debt abroad are disclosed in Note 20.c.
(3) Equity and debt hybrid securities are disclosed in Note 20.d.
62
st
1 quarter 2016
e) Fund for worker's assistance (Fundo de Amparo ao Trabalhador – FAT)
Program
Resolution/
TADE (1)
Repayment of FAT Funds
Type
(2)
Initial date
Mar 31, 2016
Available
TMS(3)
Final date
Proger Rural and Pronaf
Applied
TJLP(4)
Dec 31, 2015
Available
TMS(3)
Total
Applied
TJLP(4)
Mar 31, 2015
Available
TMS(3)
Total
Applied
TJLP(4)
Total
13,309
91,297
104,606
55,004
98,318
153,322
67,069
240,864
307,933
Pronaf Custeio
04/2005
RA
11/2005
--
206
1,718
1,924
181
1,841
2,022
285
2,208
2,493
Pronaf Investimento
05/2005
RA
11/2005
--
12,426
81,527
93,953
53,075
88,252
141,327
65,219
222,555
287,774
Rural Custeio
02/2006
RA
11/2005
--
88
427
515
104
485
589
230
990
1,220
Rural Investimento
13/2005
RA
11/2005
--
589
7,625
8,214
1,644
7,740
9,384
1,335
15,111
16,446
713,617
2,415,255
3,128,872
753,477
2,523,289
3,276,766
154,280
2,939,494
3,093,774
Urbano Investimento
18/2005
RA
11/2005
--
713,617
2,415,255
3,128,872
753,477
2,523,289
3,276,766
154,276
2,939,490
3,093,766
Urbano Capital de Giro
15/2005
RA
11/2005
--
--
--
--
--
--
--
4
4
8
94,104
507,636
601,740
132,916
539,445
672,361
122,841
623,748
746,589
Proger Urbano
Other
Exports
27/2005
RA
11/2005
--
712
35,844
36,556
804
37,352
38,156
2,719
9,068
11,787
FAT Taxista
02/2009
RA
09/2009
--
54,029
310,154
364,183
82,299
304,362
386,661
49,308
256,094
305,402
FAT Turismo
Investimento
01/2012
RA
08/2012
--
9,536
127,093
136,629
5,409
137,240
142,649
4,467
158,836
163,303
FAT Turismo Capital de
Giro
02/2012
RA
08/2012
--
Total
(1)
(2)
(3)
(4)
29,827
34,545
64,372
44,404
60,491
104,895
66,347
199,750
266,097
821,030
3,014,188
3,835,218
941,397
3,161,052
4,102,449
344,190
3,804,106
4,148,296
TADE - Allocation Term of Special Deposits.
RA - Automatic Return (monthly, 2% of the balance) and SD - Available Balance.
Funds remunerated by the Taxa Média Selic (average Selic Rate - TMS).
Funds remunerated by Taxa de Juros de Longo Prazo (long-term interest rate - TJLP).
63
st
1 quarter 2016
FAT is a special accounting and financial fund, established by Law 7,998/1990, associated with the Ministério do
Trabalho e Emprego (Ministry of Labor and Employment) and managed by the Executive Council of the Fundo de
Amparo ao Trabalhador (Fund for Workers’ Assistance) - Codefat. Codefat is a collective, tripartite, equal level
organization, composed of representatives of workers, employers and government.
The main actions to promote employment using FAT funds are structured around the Programs for the Generating
Employment and Earnings (Proger), resources for which are allocated through special deposits, established by Law
8,352/1991, in official federal financial institutions. These programs include, among others, the urban Proger program
(Investment and Working Capital) and the rural Proger program and the National Program for Strengthening Family
Farming - Pronaf, in addition to the special lines such as FAT Integrar – Rural e Urbano, FAT Giro Setorial – Micro e
Pequenas Empresas (micro and small-sized companies), FAT Giro Setorial – Médias e Grandes Empresas (medium
and large-sized companies), FAT Giro Setorial Veículos – Micro e Pequenas Empresas (micro and small-sized
companies), FAT Giro Setorial Veículos – Médias e Grandes Empresas (medium and large-sized companies), FAT
Fomentar – Micro e Pequenas Empresas (micro and small-sized companies), FAT Fomentar – Médias e Grandes
Empresas (medium and large-sized companies), FAT Giro Agropecuário, FAT Inclusão Digital (digital inclusion), FAT
Taxista (taxi), FAT Turismo Investimento and FAT Turismo Capital de Giro.
The FAT special deposits allocated to Banco do Brasil incur interest on a daily pro rata die basis using the Average
Selic Rate (TMS) when not lent out. As they are disbursed as loans, the interest rate is swapped to the Long-term
Interest Rate (TJLP) until the maturity of the loans. The earnings on the Bank’s funds are paid to FAT on a monthly
basis, as established in Codefat Resolutions 439/2005 and 489/2006.
f) Guarantee fund for generation of employment and earnings (Funproger)
The Guarantee Fund for Generation of Employment and Earnings (Funproger) is a special accounting fund
established on November 23, 1999 by Law 9,872/1999, amended by Law 10,360/2001 and by Law 11,110/2005 and
regulated by Codefat Resolution 409/2004, and its amendments. It is managed by Banco do Brasil under the
supervision of Codefat/MTE and the balance at March 31, 2016 is R$ 287,403 thousand (R$ 263,488 thousand as of
December 31, 2015 and R$ 242,016 thousand as of March 31, 2015).
The objective of Funproger is to provide guarantees to entrepreneurs who would otherwise not have the necessary
guarantees to contract financing by Proger Urbano and Programa Nacional de Microcrédito Produtivo Orientado,
through the payment of a commission. The net assets of Funproger are accumulated through funds arising from the
difference between the Average Selic Rate (TMS) and the Long-Term Interest Rate (TJLP) in respect of the
remuneration of the special deposit balances available in FAT. Other sources of funds are the earnings from its
operations and the income on its excess cash resources paid by Banco do Brasil, the fund manager.
64
st
1 quarter 2016
18 - BORROWINGS AND ONLENDINGS
a) Borrowings
from 91 to
360 days
up to 90 days
Domestic
Borrowings from bankers
abroad
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
--
52,277
--
52,277
38,494
--
--
--
52,277
--
52,277
38,494
--
5,192,571
15,653,253
3,867,805
464,679
25,178,308
29,616,866
25,133,443
5,165,758
15,618,610
3,867,805
464,679
25,116,852
29,540,426
24,700,632
--
--
--
--
--
--
198,962
Linked to public sector
borrowings
Imports
Total
from 3 to 5
years
--
Borrowing from non-financial
companies
Overseas
from 1 to 3
years
26,813
34,643
--
--
61,456
76,440
233,849
5,192,571
15,653,253
3,920,082
464,679
25,230,585
29,655,360
25,133,443
20,845,824
22,214,249
18,976,030
4,384,761
7,441,111
6,157,413
Current liabilities
b) Onlendings
Domestic - official institutions
Programs
Finance charges
National Treasury - Rural Credit
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
190,931
178,145
296,689
TMS (if available)
Fixed 0.50% p.a. to 4.00% p.a.
(if applicable)
68,371
59,603
173,166
Cacau (cocoa)
IGP-M + 8.00% p.a. or
TJLP + 0.60% p.a. or 6.35% p.a.
95,237
93,175
88,555
Recoop
Fixed 5.75% p.a. to 8.25% p.a. or
IGP-DI + 1.00% p.a. or
IGP-DI + 2.00% p.a.
21,579
23,136
33,613
Pronaf
Other
BNDES
Finame
5,744
2,231
1,355
Fixed 0.00% p.a. to 9.50% p.a.
TJLP + 0.00% p.a. to 5.40% p.a.
IPCA + 7.02% p.a. to 9.41% p.a.
Selic + 0.40% p.a. to 2.50% p.a.
FX Variation + 0.90% p.a. to 6.89%
p.a.
36,399,842
37,981,403
42,263,854
Fixed 5.23% p.a. (average)
20,686,877
19,690,627
14,232,878
Fixed 0.00% p.a. to 8.50% p.a.
TJLP + 0.50% p.a. to 5.50% p.a.
FX Variation + 0.90% p.a. to 3.00%
p.a.
28,790,762
29,981,346
33,175,438
2,013,908
2,233,887
717,169
1,643,753
1,643,753
--
370,127
590,106
717,141
Other official institutions
Special supply - Deposits (Note 9.b)
Funcafé
Other
TMS (if available)
Fixed 5.50% p.a. to 10.50% p.a.
(if applied)
28
28
28
88,082,320
90,065,408
90,686,028
Current liabilities
38,363,266
39,015,494
35,291,927
49,719,054
51,049,914
55,394,101
Total
65
st
1 quarter 2016
Overseas
Mar 31, 2016
Funds obtained under the terms of Resolution CMN 3,844/2010
Dec 31, 2015
--
Mar 31, 2015
9,821
--
Special fund for support to small and medium manufacturing companies
477
477
477
Total
477
10,298
477
95
9,916
95
382
382
382
Current liabilities
c) Expense on borrowings and onlendings
1st quarter/2016
1st quarter/2015
Borrowings expenses (1)
2,563,747
(5,761,710)
(1)
Onlendings expenses
1,213,639
(5,311,431)
Foreign (1)
2,431,970
(4,117,589)
BNDES
(662,543)
(771,064)
(353,186)
(205,350)
Finame
(149,308)
(166,220)
(24,542)
(20,724)
National Treasury
Other
(28,752)
(30,484)
1,749,064
(2,855,632)
Expenses for financial and development funds liabilities
(27,516)
(1,078,354)
Foreign exchange profit/(loss) on overseas investments
(1,267,216)
1,707,503
4,231,718
(13,299,624)
Expenses for obligations with bankers abroad (1)
Total
(1) The credit balances presented arise from the negative exchange variation of the period (the appreciation of the Real against the Dollar).
66
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1 quarter 2016
19 - FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES
Funding
Currency
Issued value
Remuneration
p.a.
Issue Year
Maturity year
Banco do Brasil
Global Medium - Term Notes Program
Mar 31, 2015
R$
USD
EUR
JPY
EUR
CHF
350,000
500,000
750,000
24,700,000
1,000,000
275,000
9.75%
6.00%
4.50%
1.80%
3.75%
2.50%
2007
2010
2011
2012
2013/2014
2013
2017
2020
2016
2015
2018
2019
USD
USD
500,000
1,809,700(1)
3.88%
3.88%
2011
2012
2017
2022
8,294,508
1,789,970
6,504,538
9,075,400
1,981,340
7,094,060
7,832,226
1,611,006
6,221,220
USD
37,458
2.10% to
3.55%
2021
134,644
168,518
165,987
3,921,200
9,556,835
11,260,593
3,650,829
9,003,872
10,467,690
2020
270,371
552,963
792,903
2018
129,885
-129,885
11,324
-11,324
8,135
4,011
4,124
2018
18,681,053
3,144,582
15,536,471
18,121,444
3,050,382
15,071,062
19,066,736
4,096,933
14,969,803
2020
135,420,062
28,201,187
107,218,875
134,822,921
28,076,833
106,746,088
118,263,145
19,709,195
98,553,950
2018
2,179,505
-2,179,505
2,106,047
-2,106,047
2,621,717
2,580,022
41,695
2017
207,863
147,015
60,848
329,399
147,662
181,737
396,648
396,648
--
3,145,633
3,447,244
1,925,803
Certificates of Deposits (2)
0.37% to
4.60%
2,10% to
4,60%
Short term
Long term
Short term
Long term
Letters of credit - Real estate
Short term (3)
Long term (4)
Letters of credit agribusiness
Short term (3)
Long term (4)
Financial Letters
Short term (3)
Long term (4)
Banco Patagonia (5)
Short term
Long term
Dec 31, 2015
176,099,340
7,338,483
342,800
1,795,347
--4,161,827
1,038,509
"Senior Notes"
Structured Notes
Mar 31, 2016
106.50% DI
104.00% DI
ARS
ARS
Special Purpose Entities Abroad (6)
Securitization of future flow of payment
orders from abroad (6)
USD
60,000
USD
200,000
USD
500,000
USD
320,000
5.25%
Libor
3m+1.20%
184,927,920
11,065,431
338,300
1,994,618
3,321,757
-4,321,203
1,089,553
168,892,779
9,674,240
335,677
1,614,179
3,538,943
660,505
2,602,480
922,456
2008
2018
192,597
234,799
250,725
2008
2015
--
--
63,939
2014/2015
2034
1,801,752
1,961,854
802,328
2015
2030
1,151,284
1,250,591
808,811
(157,510)
(143,071)
(88,582)
Total
179,295,326
188,561,492
171,126,648
Current liabilities
36,776,073
142,519,253
43,600,506
144,960,986
41,517,886
129,608,762
Structured notes (6)
Eliminated Amount on Consolidation (7)
Libor
6m+2.50%
Libor
6m+3.25%
(1) Refers to the outstanding value since partial repurchases ocurred (the value on December 31, 2015 was USD 1,825,000 thousand and, on March
31, 2015, USD 1,925,000 thousand).
(2) Securities issued abroad in USD, AUD, EUR, SGD and GBP.
(3) Securities issued in national currency with maturities up to 360 days.
(4) Operations with maturity between 361 and 1,800 days.
(5) Securities issued with rates from 28.50% p.a. and from Badlar+300 pts. to Badlar+450 pts.
(6) The Special Purpose Entities (SPE) "Dollar Diversified Payment Rights Finance Company" and "Loans Finance Company Limited" were organized
under the laws of the Cayman Islands. The liabilities arising from securities issued by these entities are paid using the funds accumulated in their
accounts. The SPE declare that have no relevant asset or liability other than the rights and duties originating from the contracts for issue of
securities. The Bank is not a shareholder, the owner, or a beneficiary of any of the results of operations of the SPE.
The Dollar Diversified Payment Rights Finance Company was organized for the following purposes: a) fund raising by issuance of securities in the
international market; (b) use of resources obtained by issuing securities to pay for the purchase, with the Bank, of the rights to payment orders
issued by banking correspondents located in the U.S. and by the agency of BB New York, in U.S. dollars, for any agency in Brazil (Rights on
Consignment); and (c) making payments of principal and interest on securities issued and other payments defined in the contract of issuance of
these securities.
The Loans Finance Company Limited was organized for the following purposes: a) fund raising by issuance of securities in the international
market; (b) closing and booking repurchase agreements with the Bank; (c) purchasing of protection against credit risk of the Bank through a credit
derivative, which is actionable only in case of Bank's default in any of the obligations assumed in repurchase agreements; and (d) making
payments of principal and interest on securities issued and other payments defined in the contract of issuance of these securities.
(7) Refers to securities issued by Banco do Brasil Conglomerate, which are in possession of overseas subsidiaries/entities.
67
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1 quarter 2016
20 - OTHER LIABILITIES
a) Taxes and social security
Mar 31, 2016
Legal liabilities (Note 27.h)
14,316,074
Dec 31, 2015
Mar 31, 2015
14,076,071
13,350,098
Provision for taxes and contributions on net income
2,488,535
556,313
4,103,280
Deferred tax liabilities (Note 24.d)
1,961,297
2,298,292
2,138,085
Taxes and contributions payable
1,384,161
1,392,468
1,123,470
Taxes and contributions on net income payable
506,199
1,048,359
664,773
Provision for tax litigation (Note 27.e)
298,545
245,695
205,307
Other
316,933
316,960
316,853
Total
21,271,744
19,934,158
21,901,866
Current liabilities
20,586,294
19,149,334
21,082,583
685,450
784,824
819,283
b) Financial and development funds
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Marinha Mercante
8,514,987
8,988,221
7,161,957
Pasep (1)
2,770,719
2,728,783
2,344,627
Fundo de Desenvolvimento do Nordeste - FDNE
2,202,403
1,987,918
1,540,917
Funds from Governo do Estado de São Paulo
744,505
736,035
713,193
Fundo de Desenvolvimento do Centro Oeste - FDCO
299,049
285,128
257,115
Fundo Nacional de Aviação Civil - FNAC
73,514
70,327
49,892
Other
175,862
206,112
197,078
Total
14,781,039
15,002,524
12,264,779
Current liabilities
9,484,657
10,021,062
7,960,086
5,296,382
4,981,462
4,304,693
(1) The Bank is administrator of the Public Servant Heritage Formation Program (Pasep), guaranteeing a minimum return equal to the Long-Term
Interest Rate - TJLP.
68
st
1 quarter 2016
c) Subordinated debts
Issued
Value
Funding
Remuneration p.a.
Issue Date
Maturity
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Banco do Brasil
FCO – Resources from Fundo
Constitucional do Centro-Oeste
Funds applied (1)
Resources available (2)
23,239,453
22,994,912
21,075,691
21,605,722
22,067,675
20,189,622
1,633,731
927,237
877,052
--
--
9,017
--
--
1,698,140
Charges to capitalize
Subordinated CDB Issued in the Country
1,000,000
105.00% of CDI
2009
2015
Subordinated Debt Abroad
--
--
1,698,140
10,399,650
11,568,774
9,361,309
USD
660,000
5.38%
2010
2021
2,366,409
2,630,575
2,131,403
USD
1,500,000
5.88%
2011
2022
5,351,712
5,953,739
4,815,278
USD
750,000
5.88%
2012
2023
2,681,529
2,984,460
2,414,628
24,412,215
25,387,942
22,828,626
Subordinated Letters of Credit
1,000,000
108.50% of CDI
2010
2016
--
1,852,172
1,667,934
2,055,100
111.00% of CDI
2011
2017
3,510,088
3,387,610
3,043,286
4,844,900
111.50% of CDI
1.06% to 1.11% + CDI
5.24% to 5.56% + IPCA
Fixed 10.51%
2012
2018
7,421,184
7,152,153
6,467,899
215,000
112.00% of CDI
2012
2019
328,740
317,168
284,655
4,680,900
111.00% of CDI
2013
2019
6,772,927
6,536,599
5,872,203
2012
2020
233,192
224,433
201,298
406,246
112.50% of CDI
150,500
5.45% + IPCA
377,100
112.00% to 114.00% of CDI
2014
2020
470,321
453,485
163,523
112.00% to 114.00% of CDI
2014
2020
209,984
202,528
181,591
1,594,580
113.00% to 115.00% of CDI
2014
2021
1,970,458
1,899,302
1,699,764
2,273,806
113.00% to 115.00% of CDI
2014
2021
2,953,956
2,847,744
2,549,799
8.08% + IPCA
2014
2022
541,365
514,748
453,951
58,051,318
59,951,628
54,963,766
400,000
Total Subordinated Debt from Banco do
Brasil
Eliminated amount on consolidation
Total Subordinated Debt Consolidated (3)(4)
Current liabilities
(2,565)
(16,063)
(8,171)
58,048,753
59,935,565
54,955,595
1,755,528
1,845,639
1,698,140
56,293,225
58,089,926
53,257,455
(1) Remunerated at the rates on the loans funded with these amounts less the del credere of the financial institution, according to article 9 of Law
7,827/1989.
(2) Remunerated based on extra-market rate announced by the Banco Central do Brasil (Bacen), according to article 9 of Law 7,827/1989.
(3) R$ 38,466,314 thousand (39,839,840 thousand as of Dec 31, 2015 and 37,425,368 thousand as of Mar 31, 2015) of the total balance is
considered tier II of the Referential Equity (RE).
(4) Includes the amount of R$ 6,146,084 thousand, relating to subordinated debt recorded in the line Debt Instruments Eligible as Capital.
d) Equity and debt hybrid securities
Issued Value(1)
Funding
Remuneration
p.a.
Issue Date
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Perpetual Bonds
Total Banco do Brasil
Eliminated amount on consolidation
USD
1,499,000
8.50%
10/2009
5,523,775
5,939,561
4,979,817
USD
1,599,627
9.25%
01 and 03/2012
6,033,309
6,632,211
5,966,393
USD
1,988,000
6.25%
01/2013
7,248,758
7,878,240
6,569,507
R$
8,100,000
5.50%(2)
09/2012
8,119,558
8,355,877
8,210,293
USD
2,171,700
9.00%
06/2014
7,893,556
8,541,012
8,147,019
34,818,956
37,346,901
33,873,029
(13,152)
(4,898)
(19,351)
Total reclassified to shareholders'
equity (Note 23.c)
(8,100,000)
(8,100,000)
(8,100,000)
Total BB-Consolidated
26,705,804
29,242,003
25,753,678
Current liabilities
233,367
121,313
951,323
26,472,437
29,120,690
24,802,355
(1) Refers in funding in US dollars, the outstanding value, as occurred partial repurchases of these instruments.
(2) Since August.28, 2014, the remuneration is fully variable (Note 23.c).
69
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1 quarter 2016
R$ 24,641,227 thousand of the Perpetual Bonds is included in the Referential Equity (R$ 27,036,585 thousand as of
December 31, 2015, and R$ 21,558,498 thousand as of March 31, 2015). Of this amount, R$ 19,481,692 thousand
are recorded in debt instruments eligible as capital (Note 28.b).
The bonds of USD 1,500,000 thousand, issued in October 2009, have the option of redemption at the discretion of
the Bank from 2020 or on each subsequent, semi-annual interest payment date, as long as it has been previously
authorized by Banco Central do Brasil (Bacen). In case the Bank does not exercise the option to redeem on October
2020, the interest on the bonds will be adjusted on this date to 7.782% plus the traded rate on 10 year North
American Treasury bonds. Thereafter, every 10 years, the interest on the bonds will be adjusted by taking into
account the traded rate of the 10 year North American Treasury bonds.
The bonds issued in January 2012 and March 2012 (reopening), of USD 1,000,000 thousand and USD 750,000
thousand respectively, and the bonds issued in January 2013 of USD 2,000,000 thousand, had their terms and
conditions modified on September 27, 2013, in order to adjust them to the rules of Bacen through Resolution No.
4,192 of March 1, 2013, which regulates the implementation of Basel III in Brazil. The changes were effective from
October 1, 2013, when the instruments were submitted to Bacen to obtain authorization to be included in the
Supplementary Capital (Tier I) of the Bank. The authorization was granted on October 30, 2013.
The bonds issued in June 2014 of USD 2,500,000 thousand, have the option of redemption at the discretion of the
Bank from June 18, 2024 or on each subsequent, semi-annual interest payment date, as long as it has been
previously authorized by the Central Bank of Brazil. If the Bank did not exercise the option to redeem in June 2024,
the interest on the bonds will be adjusted to 6.362% plus the traded rate on 10 year North American Treasury bonds.
If the Bank does not exercise the redemption option in April 2023 for the bonds issued in 2012, in April 2024 for the
bonds issued in 2013, and in June 2024 for the bonds issued in 2014, the rate of bond interest is adjusted on that
date and every 10 years according to the 10 year North American Treasury bondsat the time plus the initial credit
spread. The bonds have the following options of redemption, subject to prior authorization of Bacen:
(i)
the Bank may, at its option, redeem the bonds in whole but not in part in April 2023 for the bonds issued in
2012, in April 2024 for the bonds issued in 2013, and in June 2024 for the bonds issued in 2014, and on
each subsequent, semi-annual interest payment date, at the base redemption price;
(ii) the Bank may, at its option, redeem the bonds in whole, but not in part, after five years from the date of
issue, as long as it is before April 2023, for the bonds issued in 2012, before April 2024 for the bonds
issued in 2013, and before April 2024 for the bonds issued in 2014, as a result of a tax event, at the base
redemption price;
(iii) the Bank may, at its option, redeem the bonds in whole but not in part, after five years from the date of
issue, as long as it is before April 2023, for the bonds issued in 2012, and in April 2024 for the bonds
issued in 2013, on the occurrence of a regulatory event, at the higher value between the base redemption
price and the Make-whole amount;
(iv) the Bank may, at its option, redeem the bonds in whole but not in part, after five years from the date of
issue as long as it is before June 2024 for the bonds issued in 2014, on the occurrence of a regulatory
event at the base redemption price.
The bonds issued in October 2009 determine that the Bank suspends the semi-annual payments of interest and / or
accessories on those securities issued (which will not be due or accrued) if:
(i)
the Bank does not comply or the payment of such charges does not allow the bank to comply with the
levels of capital adequacy, operating limits, or its financial indicators are under the minimum level required
by Brazilian regulations applicable to banks;
(ii) Bacen or the regulatory authorities determine the suspension of payment of such charges;
(iii) any event of insolvency or bankruptcy occurs;
(iv) a default occurs; or
(v) the Bank has not distributed dividends or interest on equity to common shareholders for the period of
calculation of such interest and / or accessories.
The bonds issued in January and March 2012, in January 2013 and in June 2014 determine that the Bank suspend
the semi-annual payments of interest and/or accessories on those securities issued (which will not be due or
accrued) if:
(i)
(ii)
distributable income for the period are not sufficient for making the payment (discretionary condition of the
Bank);
the Bank does not comply or the payment of such charges does not allow the Bank to comply with the
levels of capital adequacy, operating limits, or its financial indicators are under the minimum level required
by Brazilian regulations applicable to banks;
70
st
1 quarter 2016
(iii) Bacen or the regulatory authorities determine the suspension of payment of such charges;
(iv) any event of insolvency or bankruptcy occurs; or
(v) a default occurs.
According to Basel III rules, the bonds issued in January 2012, March 2012, in January 2013 and in June 2014 have
mechanisms of loss absorption. Moreover, if the item (i) occurs, the payment of dividends by Bank to its shareholders
will be limited to the minimum required determined by applicable law until the semi-annual interest payments and / or
accessories on those titles have been resumed in full. Finally, these bonds will expire permanently and at the
minimum value corresponding to the balance recorded in the Tier I capital of the Bank if:
(i)
(ii)
(iii)
the main capital of the Bank is less than 5.125% of the amount of risk-weighted assets (RWA);
the decision to make a capital injection from the public sector or an equivalent capital contribution to the
Bank is taken, in order to maintain the bank’s viability;
the Bank, on a discretionary assessment regulated by the CMN, sets out, in writing, the expiration of the
bonds to enable the continuity of the Bank.
e) Sundry
Mar 31, 2016
Credit/debit card operations
Dec 31, 2015
Mar 31, 2015
18,542,786
20,727,736
17,729,946
Actuarial liabilities (Note 26.e)
9,624,662
9,513,475
7,854,507
Provisions for civil claims (Note 27.e)
7,060,224
7,150,581
6,280,869
Sundry creditors - domestic
6,979,465
7,429,931
6,759,637
Provisions for pending payments
5,389,097
5,251,114
4,517,829
Funds linked to loan operations
2,880,137
2,772,443
1,426,589
Provision for labor claims (Note 27.e)
2,391,106
2,169,106
2,030,543
Liabilities for rendering payment services
1,616,369
1,276,864
1,501,424
Liabilities for official agreements
1,177,322
1,072,568
992,050
Sundry creditors - abroad
903,360
1,097,487
1,181,469
Liabilities for premiums granted under customer loyalty schemes
773,271
772,616
735,053
Creditors of resources to be disbursed
605,871
623,633
794,479
Provisions for guarantees provided
501,898
541,312
301,401
Liabilities for operations linked to assignments
320,643
333,298
306,081
Liabilities for assets acquisition
294,297
584,440
406,541
Provision for losses with the Fundo de Compensação de Variação Salarial
- FCVS
294,111
288,542
271,774
63,309
60,734
--
941
1,000
1,110
Liabilities for shares in investment funds
Guarantees on credits assigment
Other
278,862
99,246
232,879
Total
59,697,731
61,766,126
53,324,181
Current liabilities
54,695,512
48,561,791
42,483,313
5,002,219
13,204,335
10,840,868
71
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1 quarter 2016
21 - OTHER OPERATING INCOME/EXPENSES
a) Service fee income
1st quarter/2016
1st quarter/2015
Fund Management
813,542
733,749
697,247
695,791
Billing
418,908
418,418
Collection
260,010
259,669
Loans and guarantees provided
203,044
193,094
Interbank
202,493
185,787
National Treasury and official funds management
131,805
85,878
Consortium management fees
115,477
95,238
Fiduciary services
110,858
100,857
Capital market income
109,541
166,374
Account fee
93,946
80,171
Provided to related companies
59,466
51,840
Card income
33,619
443,716
From non-financial subsidiaries
Other services
Total
7,127
11,729
362,032
311,704
3,619,115
3,834,015
b) Bank fee income
1st quarter/2016
Service packages
1st quarter/2015
1,185,662
932,874
Card income
286,972
237,565
Loans and customer registration
156,943
157,430
Funds transfer
95,103
74,677
Investment funds management
92,717
79,622
Deposit account
59,949
54,251
Fiduciary services
18,104
12,676
Other
43,208
39,972
Total
1,938,658
1,589,067
c) Personnel expenses
1st quarter/2016
Salaries
1st quarter/2015
(2,251,225)
(2,132,948)
Personnel administrative provisions
(883,057)
(913,365)
Social charges
(773,345)
(782,301)
Benefits
(662,843)
(607,354)
Labor lawsuits
(386,666)
(271,736)
Pension plans
(195,785)
(170,872)
(11,550)
(10,398)
Directors' and advisors' fees
Training
Total
(11,197)
(11,890)
(5,175,668)
(4,900,864)
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1 quarter 2016
d) Other administrative expenses
1st quarter/2016
1st quarter/2015
Amortization
(838,245)
(787,328)
Expenses with outsourced services
(416,190)
(397,114)
Rent
(332,155)
(319,192)
Communications
(303,535)
(342,459)
Depreciation
(280,272)
(271,553)
Security services
(276,526)
(256,049)
Transport
(265,760)
(303,864)
Maintenance and upkeep
(191,525)
(189,145)
Financial system services
(188,544)
(176,472)
Data processing
(160,420)
(185,695)
Water, electricity and gas
(155,565)
(118,761)
Specialized technical services
(85,324)
(73,110)
Promotion and public relations
(60,323)
(44,959)
Advertising and marketing
(57,989)
(58,957)
Materials
(26,489)
(31,814)
Domestic travel
(16,367)
(31,028)
Other
(146,693)
(149,346)
Total
(3,801,922)
(3,736,846)
e) Other operating income
1st quarter/2016
1st quarter/2015
Update of deposits in guarantee
666,229
546,148
Income on receivables
642,348
188,621
Surplus allocation update - Previ Plan 1 (Note 26.f)
378,372
450,871
Recovery of charges and expenses
362,442
257,932
Cards transactions
261,027
297,612
Reversal of provisions - civil and tax lawsuits
92,729
--
77,318
88,602
Reversal of provisions - administrative and personnel expenses
62,560
71,060
Adjustment of tax recoverable
35,931
31,360
Royalties and special participation
33,134
47,981
Income from specific credits ans special operations - National Treasury
23,010
56,101
Subsidy of the National Treasury - MPO
Reversal of provisions - labor
Previ - Defined benefit plan income
1,631
50,937
--
155,162
--
192,039
Other
221,805
209,415
Total
2,858,536
2,643,841
73
st
1 quarter 2016
f) Other operating expenses
1st quarter/2016
1st quarter/2015
Actuarial liabilities update
(365,329)
(237,113)
Cards transactions
(325,060)
(488,761)
Civil and tax claims
(312,402)
(955,863)
Compensation for transactions of Banco Postal
(298,186)
(283,653)
Adjustment of the provision for deposit in court (Note 27.h)
(240,003)
(208,699)
Discounts granted on renegotiations
(230,076)
(134,924)
(112,900)
(132,657)
Failures/frauds and other losses
(96,885)
(50,712)
ATM Network
(87,472)
(42,914)
Business relationship bonus
(79,898)
(20,789)
Compliance bonus
(72,181)
(17,551)
Life insurance premium - consumer credit
(39,055)
(45,895)
INSS - Social Security
(22,854)
(6,331)
Proagro Expenses
(9,200)
(6,945)
Update of interest on own capital/dividends
(6,294)
(4,429)
Fees for the use of Sisbacen - Banco Central do Brasil System
(3,571)
(5,896)
Other
(152,761)
(240,762)
Total
(2,454,127)
(2,883,894)
22 - NON-OPERATING INCOME
1st quarter/2016
Non-operating Income
Capital gains
(1)
1st quarter/2015
68,029
5,815,168
51,833
5,791,686
Profit on disposal of assets
3,307
4,778
Rental income
2,309
3,257
960
2,033
--
1,356
949
1,255
Reversal of provision for devaluation of other assets
Profit on disposal of investments / equity interest
Interest and inflation adjustment of debtors from disposal of property
Other non-operating income
Non-operating Expenses
Devaluation of other assets
Loss on disposal of assets
Capital losses
Other non-operating expenses
Total
8,671
10,803
(31,437)
(43,250)
(4,200)
(2,393)
(114)
(1,313)
(26,546)
(39,353)
(577)
(191)
36,592
5,771,918
(1) Includes, in 1st quarter/2015, the gain derived from the strategic partnership between BB Elo Cartões Participações with Cielo in the electronic
means of payment business of R$ 5,787,797 thousand (Note 2).
74
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1 quarter 2016
23- SHAREHOLDERS' EQUITY
a) Book value and market value per common share
Mar 31, 2016
Shareholders' equity - Banco do Brasil
Book value per share (R$)
(1)
Market value per share (R$)
Shareholders' equity - Consolidated
(2)
Dec 31, 2015
Mar 31, 2015
73,078,482
70,673,370
72,600,519
26.17
25.31
28.86
19.77
14.74
22.91
84,155,791
81,536,173
83,598,039
(1) Calculated based on the equity of Banco do Brasil.
(2) Conciled with the equity of Banco do Brasil (Note 23.h).
b) Capital
The capital of Banco do Brasil, entirely subscribed and paid-in, in the amount of R$ 60,000,000 thousand
(R$ 54,000,000 thousand as of March 31, 2015 and R$ 60,000,000 thousand as of December 31, 2015) is divided
into 2,865,417,020 book-entry common shares without par value. The Federal Government is the largest
shareholder, holding control of the majority of our voting shares.
The increase of the capital for the period as of March 31, 2015 and of December 31, 2015, in the amount of
R$ 6,000,000 thousand, resulted from the use of Statutory Reserve to Operating Margin, approved by the Special
Meeting of Shareholders held on April 28, 2015, and Banco Central do Brasil authorization in July 20, 2015.
The Bank may, even without amending its by-laws, if approved by the Meeting of Shareholders, and in the conditions
established therein, increase its capital up to the limit of R$ 120,000,000 thousand by issuing common shares, for
which shareholders should be granted preference in the subscription in proportion to the number of held shares.
c) Instrument Qualifying to Common Equity Tier 1 Capital
On September 26, 2012, the Bank signed a Loan Agreement with the Federal Government, as hybrid capital and
debt instrument valued at up to R$ 8,100,000 thousand, without maturity date, with fixed remuneration, semiannual
interest payments, whose funds were allocated to finance agribusiness.
Until August 27, 2014, this instrument was authorized by Bacen to be included in the Tier I of the referential equity
(Additional Tier I Capital) and it was subject to the limitation set out in article 28 of the Resolution CMN 4,192 dated
March 1, 2013 (Note 28.b).
On August 28, 2014, in the terms of Law 12,793, dated April 2, 2013, an amendment to the contract was signed
aiming to make the instrument eligible as Common Equity Tier I Capital, in accordance with article 16 of Resolution
CMN 4,192/2013.
After the amendment in the contract, compensation became fully variable and the interest will be due on periods
matching with the fiscal year of the Bank, starting in January 1 and ending in December 31 of each year.
Remuneration for each fiscal year will be paid in a single annual installment adjusted by the Selic rate until the date of
effective payment, within 30 calendar days after making the payment of dividends for the result recorded in the fiscal
year.
The payment of compensation will be made exclusively with funds from profits and profit reserves that may be
distributed as at the year-end prior to the calculation date. Payment is ultimately at management`s discretion and
there will not be cumulative unpaid interest. If payment or dividend credit are not made (including in the form of
interest on own capital) before December 31 of the following fiscal year, the accrued amounts will no longer be due.
If the balance of retained earnings, of profit reserves, including legal reserve, and of the Bank’s capital reserve are
insufficient to absorb losses calculated in the closing balance of the fiscal year, this instrument will not be
remunerated and the Bank will use the accrued interest and the principal balance, in this order, up to the amount
necessary to offset the remaining losses, effectively constituting a pay down of the instrument.
75
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1 quarter 2016
The instrument does not have maturity date and it can be payable only in situations of the dissolution of the issuing
institution or by repurchase operations authorized by Bacen. In case of dissolution of the Bank, the payment of the
principal and the debt charges will be subordinated to the payment of other liabilities.
There will not be, under any circumstances, preferred compensation of the instrument, including relating to other
equity elements classified in the Reference Equity.
On September 22, 2014, Bacen considered the instrument qualifying to the Common Equity Tier I Capital in the form
of CMN Resolution 4,192/2013 from August 28, 2014. So the instrument mentioned was reclassified to the
Shareholders` Equity, for purposes of disclosure in the consolidated financial statements.
d) Revaluation reserves
The revaluation reserves, totaling R$ 2,713 thousand (R$ 2,788 thousand as of March 31, 2015 and R$ 2,730
thousand as of December 31, 2015), refer to revaluations of assets made by the associates/subsidiaries.
In the first quarter of 2016, there was a reserve realization of R$ 17 thousand (R$ 17 thousand in the first quarter of
2015), due to depreciation, transferred to Retained Earnings (Accumulated Losses), net of taxes. In accordance with
CMN Resolution 3,565/2008, the remaining amount will be maintained until the date of its effective realization.
e) Capital and profit reserves
Mar 31, 2016
Capital Reserves
Profit Reserves
Legal reserve
Dec 31, 2015
Mar 31, 2015
15,740
14,326
13,992
29,060,181
29,031,090
25,393,416
6,173,642
6,173,642
5,468,217
Statutory reserves
22,886,539
22,857,448
19,925,199
Operating margin
19,646,543
19,608,076
16,976,072
3,239,996
3,249,372
2,949,127
Equalization of dividends
The legal reserve is intended to ensure the integrity of the capital and can only be used to offset losses or increase
capital. The Legal reserve is increased by 5% of the net profit for the period, before any other allocation, as long as it
does not exceed 20% of capital.
The Statutory reserve for operating margin aims to guarantee an operating margin consistent with the development of
the Bank’s operations. It consists of up to 100% of net income, after the legal allocations, including dividends, and is
limited to 80% of the capital.
Statutory reserve for dividend equalization provides funds for the payment of dividends, consisting of up to 50% of
the net income, after legal allocations, including dividends, limited to 20% of the capital.
f) Earnings per share
1st quarter/2016
Net income - Banco do Brasil (R$ thousand)
Weighted average number of shares (basic and diluted)
Earnings per share (basic and diluted) (R$)
1st quarter/2015
2,310,401
5,675,916
2,792,561,206
2,796,086,165
0.83
2.03
76
st
1 quarter 2016
g) Interest on own capital/dividends and destination of the income
Payment schedule of interest on own capital and dividends:
Amount per share
(R$)
Amount
Base date of payment
Payment date
1st quarter/2016
Interest on own capital paid
(1)
Complementary interest on own capital payable
(1)
Total Destined to Shareholders
274,466
0.098
Mar 11,2016
Mar 31,2016
372,273
0.133
May 23,2016
May 31,2016
646,739
0.231
(1) Amounts subject to the rate of 15% Income Tax Withholding.
Amount per share
(R$)
Amount
Base date of payment
Payment date
1st quarter/2015
Interest on own capital paid (1)
1,054,134
0.377
Mar 23, 2015
Mar 31, 2015
Dividends paid
1,261,460
0.451
May 21, 2015
May 29, 2015
2,315,594
0.828
Total Destined to Shareholders
(1) Amounts subject to the rate of 15% Withholding Tax.
In accordance with Laws 9,249/1995 and 9,430/1996 and the Bank's Bylaws, Management decided on the payment
of Interest on own capital to its shareholders, equivalent to 25% of the net income.
The interest on own capital is calculated based on adjusted net equity value and is limited on a pro rata die basis to
the variation of long-term interest rate, as long as there is profit (before the deduction of interest on own capital) or
reserves for retained earnings and profit reserves of at least twice its value.
To comply with the Income Tax legislation, the amount of interest on own capital was recorded as "Financial
expenses" and, for purposes of disclosure in these financial statements, reclassified to "Retained earnings". The total
interest on own capital in the first quarter of 2016, provided an expense reduction on tax charges totaling R$ 291,033
thousand (R$ 421,654 thousand in of first quarter 2015).
h) Reconciliation of net income and shareholders' equity
Shareholders’ Equity
Net Income
1st quarter/2016
Banco do Brasil
Instrument qualifying to common equity tier 1 capital
(1)
Unrealized gains (2)
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
2,310,401
5,675,916
73,078,482
70,673,370
72,600,519
19,559
113,069
8,100,000
8,100,000
8,100,000
29,091
29,365
(336,184)
(365,275)
(371,104)
--
--
3,313,493
3,128,078
3,268,624
2,359,051
5,818,350
84,155,791
81,536,173
83,598,039
BB-Consolidated
1st quarter/2015
(1) The Instrument Qualifying as CET1 was registered in the liabilities in the Individual Financial Statements and its interest recognized as expenses
with securities sold under repurchase agreements, meanwhile, this Instrument was reclassified to Shareholder’s Equity in the consolidated
financial statements, aiming to improve the quality and transparency of these consolidated financial statements (Notes 3 and 23.c).
(2) In the first quarters of 2016 and 2015, there was the realization of unrealized results arising from the assignment of credits from the Bank to Ativos
S.A.
i) Accumulated Other Comprehensive Income
1st quarter/2016
Opening
balance
Net change
1st quarter/2015
Tax effects
Closing balance
Opening
balance
Net change
Tax effects
Closing balance
Banco do Brasil
Subsidiary abroad
Associates and subsidiaries
(2,760,383)
484,645
9,318
(2,266,420)
(757,714)
(827,015)
241,835
(12,779)
34,177
(552)
20,846
30,118
(1,451)
(136)
28,531
(351,322)
276,745
(74,851)
(149,428)
(191,869)
15,364
(6,160)
(182,665)
834
(283)
2,267
(1,342,894)
Cash Flow Hedge
--
2,080
(936)
1,144
1,716
Actuarial Gains/(Losses)
on Pension Plans
(13,918,187)
--
--
(13,918,187)
(8,680,091)
--
--
(8,680,091)
Total
(17,042,671)
797,647
(67,021)
(16,312,045)
(9,597,840)
(812,268)
235,256
(10,174,852)
77
st
1 quarter 2016
j) Noncontrolling interests
Shareholders’ Equity
Mar 31, 2016
Banco Patagonia S.A.
Dec 31, 2015
Mar 31, 2015
881,003
1,006,300
1,086,205
Besc Distribuidora de Títulos e Valores Mobiliários S.A.
27
27
27
BB Tecnologia e Serviços S.A.
57
57
57
BB Seguridade S.A.
2,432,406
2,121,694
2,182,335
Non-controlling Interest
3,313,493
3,128,078
3,268,624
k) Shareholdings (number of shares)
Number of shares issued by the Bank to shareholders which, directly or indirectly, hold more than 5% of the shares:
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Sharedholders
Shares
% Total
Shares
% Total
Shares
% Total
1,585,952,278
55.3
1,653,379,882
57.7
1,659,005,282
57.9
1,453,487,115
50.7
1,453,487,115
50.7
1,453,487,115
50.7
105,024,600
3.7
105,024,600
3.7
110,650,000
3.9
Caixa F1 Garantia Construção Naval
24,170,063
0.8
87,368,167
3.0
87,368,167
3.0
Fundo Garantidor para Investimentos
3,270,500
0.1
7,500,000
0.3
7,500,000
0.3
295,086,214
10.3
297,403,914
10.4
297,328,014
10.4
Federal Government
Ministério da Fazenda
Fundo Fiscal de Investimento e Estabilização
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ
Treasury shares (1)
72,601,541
2.6
72,864,196
2.5
69,250,818
2.4
Other Shareholders
911,776,987
31.8
841,769,028
29.4
839,832,906
29.3
2,865,417,020
100.0
2,865,417,020
100.0
2,865,417,020
100.0
2,294,422,088
80.1
2,259,949,653
78.9
2,280,209,256
79.6
570,994,932
19.9
605,467,367
21.1
585,207,764
20.4
Total
Resident Shareholders
Non Resident Shareholders
(1) Includes, in the first quarter of 2016, 60,419 shares of the Bank held by BB DTVM (25,968 shares in the first quarter of 2015 and 42,709 in
December 31,2015).
Number of shares issued by the Bank, held by the Board of Directors, the Executive Board and the Audit Committee:
Commom shares (ON) (1)
Dec 31, 2015
Mar 31, 2016
Board of Directors (except for Bank’s CEO, listed in the Bank’s Executive
Committee)
Executive Committee
Fiscal Council
Audit Committee
Mar 31, 2015
2
1
10,004
276,476
135,351
209,800
1,176
1,176
1,176
10,075
10,075
75
(1) The shareholding interest of the Board of Directors, Executive Committee, Fiscal Council and Audit Committee represents approximately 0.01% of
the Bank's capital stock.
l) Movement of shares outstanding/free float
Mar 31, 2016
Total
Dec 31, 2015
%
Total
Mar 31, 2015
%
Total
%
1,139,037,581
39.8
1,137,407,279
39.7
1,137,407,279
39.7
--
--
5,625,400
--
--
--
Disposal of shares by Caixa F1 Garantia Construção Naval
63,198,104
--
--
--
--
--
Disposal of shares by Fundo Garantidor para Investimentos
4,229,500
--
--
--
--
--
Acquisition of shares - repurchase program
--
--
(4,183,700)
--
(560,000)
--
Transfer of shares - share-based payment
--
--
--
--
190,758
--
121,529
--
188,602
--
(96,930)
--
Free Float at the period end date (2)
1,206,586,714
42.1
1,139,037,581
39.8
1,136,941,107
39.7
Outstanding shares
2,865,417,020
100.00
2,865,417,020
100.0
2,865,417,020
100.0
Free float at the period date
Disposal of shares by FFIE - Fundo Fiscal de Investmento e
Estabilização
Other Changes (1)
(1) Refers mainly to changes coming from Technical and Advisory Bodies.
(2) According to the Law 6,404/1976 and the regulation of BM&FBovespa's New Market. The shares held by the Board of Directors and Executive
committee are not included. The shares held by the Caixa de Previdência dos Funcionários do Banco do Brasil – Previ compose the free float
shares.
78
st
1 quarter 2016
m) Treasury shares
On July 13, 2012, the Board of Directors approved the repurchase program of up to 50 million shares within 180 days
from that date, with the objective of acquiring shares to be held in treasury for subsequent sale or withdrawal without
further capital reduction, aiming to generate value for shareholders. This program was in effect until January 8, 2013,
and 20,200,000 shares were acquired for an amount of R$ 461,247 thousand. Minimum, average and maximum cost
per share are R$ 18.28, R$ 22.83 e R$ 26.78 respectively.
On June 13, 2013, the Board of Directors approved the repurchase program of up to 50 million shares, under the
same conditions as the previous program, however, valid for up to 365 days from that date. This program finished on
June 6, 2014, and 43,126,700 shares were acquired for R$ 1,014,504 thousand. The minimum, average and
maximum cost per share were R$ 18.84, R$ 23.52 and R$ 28.67 respectively.
On June 06, 2014, the Board of Directors approved the repurchase program of up to 50 million shares, under the
same conditions as the previous program. This program finished on May 18, 2015, and 6,021,900 shares were
acquired for R$ 155,481 thousand. The minimum, average and maximum cost per share were R$ 22.66, R$ 25.82
and R$ 29.27 respectively.
On May 18, 2015, the Board of Directors approved the repurchase program of up to 50 million shares, under the
same conditions as the previous program. Until March 31, 2016, no shares were acquired this repurchase program
and 3,623,700 shares for R$ 67,902 thousand. The minimum, average and maximum cost per share were R$ 17.90,
R$ 18.74 and R$ 21.10 respectively.
On March 31, 2016, the Bank had 72,601,541 treasury shares, amounting to R$ 1,691,986 thousand, of which
71,880,443 shares result from repurchase programs, 721,066 shares result from acquisition for share-based payment
and 32 were shares left over from mergers.
n) Share-based payment
The program of variable remuneration was developed under the CMN Resolution 3,921 as of November 25, 2010,
which describes the remuneration policy for executives of financial institutions and establishes that at least 50% of
variable remuneration shall be paid in shares or share-based instruments, of which at least 40% should be deferred
for future payment, over a minimum period of three years, defined according to the risks and activities overseen by
the executive. BB DTVM, as a result of this resolution, also adopted variable remuneration policy for its directors,
directly acquiring treasury shares of the Banco do Brasil. All shares acquired are BBAS3 and its fair value is the
quoted market price on the date of grant.
79
st
1 quarter 2016
We present the statement of acquired shares, its distribution and its transfer schedule:
Total Shares
Purchased
Acquisition Average
Cost
Shares Distributed
Shares to Distribute
Estimated Schedule
Transfers
53,063
Mar 08, 2017
2012 program
Banco do Brasil
212,301
26.78
159,238
Total shares to be distributed
BB DTVM
53,063
19,792
26.78
16,622
3,170
Mar 08, 2017
3,170
2013 program
Banco do Brasil
353,800
20.36
212,328
BB DTVM
70,736
Mar 02, 2017
70,736
Mar 02, 2018
141,472
24,546
23.83
9,825
4,907
Apr 18, 2016
4,907
Apr 17, 2017
4,907
Apr 16, 2018
14,721
2014 program
Banco do Brasil
316,683
24.08
126,720
BB DTVM
63,321
Fev 27, 2017
63,321
Fev 27, 2018
63,321
Fev 27, 2019
189,963
27,063
22.98
5,415
5,412
Apr 01, 2016
5,412
Apr 03, 2017
5,412
Apr 02, 2018
5,412
Apr 01, 2019
21,648
24 - TAXES
a) Breakdown of income tax (IR) and social contribution expenses (CSLL)
1st quarter/2016
Current values
Domestic income tax and social contribution
Foreign income tax
Deferred values
Deferred tax liabilities
Leasing transactions - portfolio adjustment and accelerated depreciation
Mark to Market (MTM)
Actuarial gains
Interest and inflation adjustment of fiscal judicial deposits
Foreign profits
Transactions carried out on the futures market
Recovered term credits
Deferred tax assets
Temporary differences
Tax losses/CSLL negative bases
Total
1st quarter/2015
(2,647,368)
(4,261,540)
(2,517,083)
(4,109,962)
(130,285)
(151,578)
1,602,527
3,769,474
435,032
(671,690)
(3,487)
668
308,222
(583,780)
219,711
(44,388)
(108,002)
(83,479)
(4,292)
(8,289)
35,796
34,549
(12,916)
13,029
1,167,495
4,441,164
699,373
3,869,786
(121,986)
(102)
590,108
571,480
(1,044,841)
(492,066)
80
st
1 quarter 2016
b) Reconciliation of income tax and social contribution charges
1st quarter/2016
Profit before taxation and profit sharing
Total charges of IR (25%) and CSLL (15% up to August/2015 and 20% since September/2015) (1)
1st quarter/2015
4,099,685
7,442,858
(1,844,858)
(2,977,143)
Charges upon Interest on own capital
291,033
421,654
460,829
398,977
Employee profit sharing
134,947
288,571
Other amounts
(86,792)
1,375,875
(1,044,841)
(492,066)
Income Tax and Social Contribution
(1) The Provisional Measure 675 of May 21, 2015, converted into Law 13,169 of October 6, 2015, increased the rate of CSLL of financial institutions
and companies in the field of private insurance and capitalization from 15% to 20%, since September 1, 2015, increasing social contribution
expenses, as well as corresponding tax credits.
c) Tax expenses
1st quarter/2016
1st quarter/2015
Cofins
(895,811)
(1,077,650)
ISSQN
(226,185)
(204,625)
PIS/Pasep
(148,060)
(201,646)
Other
(117,109)
(102,116)
Total
(1,387,165)
(1,586,037)
d) Deferred tax liabilities
Mar 31, 2016
Arising from mark-to-market
Dec 31, 2015
Mar 31, 2015
1,013,735
1,314,159
989,160
Arising from interest and inflation adjustment of fiscal judicial deposits
510,116
498,412
463,008
Arising from recovered term credits
221,310
208,394
170,780
Arising from leasing portfolio adjustment
86,519
83,032
78,233
Arising from positive adjustments of benefits plans
61,284
61,284
324,021
Overseas entities
58,212
87,507
82,707
Related to foreign profit
4,292
--
8,289
Arising from futures market transactions
3,797
43,472
19,855
Other
2,032
2,032
2,032
1,961,297
2,298,292
2,138,085
Income tax
866,273
1,050,205
1,199,980
Social contribution
564,280
694,446
679,656
Cofins
456,554
476,250
222,322
74,190
77,391
36,127
Total deferred tax liabilities
PIS/Pasep
81
st
1 quarter 2016
e) Deferred tax assets (Tax credit)
Dec 31, 2015
Balance
1st quarter/2016
Constitution
Write-off
Mar 31, 2016
Mar 31, 2015
Balance
Balance
38,432,357
5,424,187
(4,088,267)
39,768,277
26,879,401
22,608,880
3,503,650
(2,552,901)
23,559,629
16,616,780
Provisions
8,994,864
820,966
(614,039)
9,201,791
7,421,210
2,217,768
456,638
(779,297)
1,895,109
1,670,917
176,413
219,710
--
396,123
165,954
4,434,432
423,223
(142,030)
4,715,625
1,004,540
1,255,978
--
(273,707)
982,271
1,247,504
155,100
--
(9,758)
145,342
180,324
Negative adjustments of benefits plans
Other provisions
CSLL written to 18% (MP 2,158/2001)
Tax losses/Excess depreciation
Tax losses/ negative bases
152,047
33,422
(122,314)
63,155
3,566
Total deferred tax assets
39,995,482
5,457,609
(4,494,046)
40,959,045
28,310,795
Income tax
21,895,424
3,081,210
(2,200,222)
22,776,412
17,118,892
Social contribution
17,894,105
2,331,751
(2,216,392)
18,009,464
11,010,599
177,165
38,407
(66,609)
148,963
155,961
28,788
6,241
(10,823)
24,206
25,343
Cofins
PIS/Pasep
f) Deferred tax assets (Tax credit - not recorded)
Mar 31, 2016
Overseas tax credits
Dec 31, 2015
Mar 31, 2015
1,660,390
1,168,990
1,055,981
89
--
--
1,492
--
--
Total tax credits
1,661,971
1,168,990
1,055,981
Income tax
1,038,905
730,619
659,988
623,066
438,371
395,993
Tax losses/ negative bases
Social contribution
Realization expectative
The expectation of realization of the deferred tax assets (tax credits) is based on a technical study, prepared in
December 31, 2015, and the present value is determined based on the average rate of funding of Banco do Brasil.
Future value
Present value
In 2016
6,875,819
6,445,161
In 2017
6,770,408
6,023,241
In 2018
6,877,541
5,841,394
In 2019
6,879,664
5,609,772
In 2020
6,949,146
5,450,972
In 2021
4,908,131
3,725,519
In 2022
191,311
120,702
In 2023
165,378
90,974
In 2024
175,156
90,944
In 2025
202,928
98,579
39,995,482
33,497,258
Total tax credits December 31, 2015
In the first quarter 2016 it was possible to observe the realization of tax credits at Banco do Brasil, in the amount of
R$ 4,322,388 thousand corresponding to 63.86% of the projection of use for the period of 2016 contained in the
technical study prepared on December 31, 2015.
82
st
1 quarter 2016
The realization of the nominal value of tax credits registered, considering the recovery of those written-off during the
lawsuits (Note 27.h), based on a technical study conducted by Banco do Brasil on December 31, 2015, is projected
for 10 years in the following proportions:
Tax losses/CSLL
(1)
recoverable
Diferences
(2)
intertemporary
In 2016
23%
17%
In 2017
16%
17%
In 2018
18%
17%
In 2019
21%
17%
In 2020
16%
16%
6%
16%
From 2021
(1) Projected consumption linked to the capacity to generate IR and CSLL taxable amounts in subsequent periods.
(2) The consumption capacity results from the movements of provisions (expectation of reversals, write-offs and uses).
25 - RELATED PARTY TRANSACTIONS
The costs of salaries and other benefits granted to key management personnel of the Banco do Brasil Group
(Executive Board, Audit Committee, Board of Directors and Fiscal Council):
1st quarter/2016
Short-term benefits
1st quarter/2015
13,228
16,387
8,619
7,880
Executive Board
7,735
7,105
Audit Committee
654
576
Board of Directors
126
100
Fiscal Council
104
99
3,903
7,896
706
611
Fees and social charges
Variable remuneration (cash) and social charges
Other (1)
Benefits motivated by cessation of tenure
Share-based payment benefits
Total
229
--
7,257
5,889
20,714
22,276
(1) Includes contributions to pension plan and complementary healthy plan, housing and relocation benefits, group insurance, among others.
In accordance with the Bank’s policy of variable remuneration, established in compliance with CMN Resolution
3,921/2010, the variable remuneration of Executive Directors is paid in shares (Note 23.n).
The Bank does not offer post-employment benefits to its key management personnel, except for those who are part
of the staff of the Bank.
The Bank does not grant loans to the key management personnel, pursuant to the prohibition to all financial
institutions established by Banco Central do Brasil.
The transactions between the consolidated companies are eliminated in the consolidated financial statements. In
relation to transactions with entities controlled by the Tesouro Nacional (National Treasury) by joint control or
significant influence, the Bank discloses only the most significant transactions.
The Bank disclosure the transactions with National Treasury. Among the transactions, the operations of extension of
rural credit are highlighted, which are rights with the National Treasury, derived from cession of operations of rural
credit extensioned under the Resolution CMN 2,238/1996. The amounts receivable of National Treasury regarding
the interest rates equalization of programs encouraged by the Federal Government, under the Law 8,427/1992 are
highlighted too. The equalization of rates, a type of economical subsidy, represents a differential rate between the
funding cost, plus the administrative and tax costs, and the charges for the borrower of the rural credit. The amount of
equalization is adjusted by Selic Rate since its calculation to the payment from National Treasury, that is performed
according to budget programming of that Body, as established by legislation, preserving the remuneration of the
Bank.
83
st
1 quarter 2016
The Bank has banking transactions with these related parties, such as interest bearing and non-interest bearing
deposits, loans (except for key management personnel), sale and repurchase transactions and acquisition of loan
portfolios. There are also services rendered and guarantee agreed.
These transactions are conducted under terms and rates consistent with those practiced with third parties when
applicable. These transactions do not involve payment risks.
The resources applied in federal government securities and in funds and programs from onlendings of the Official
Institutions are listed in Notes 8 and 18, respectively.
The Bank has instituted the Fundação Banco do Brasil (FBB), which aims to promote, support, encourage and
sponsor actions in the fields of education, culture, health, social welfare, recreation and sports, science and
technology and assistance to urban-rural communities. In the 1st quarter/2016, the Bank made contributions to FBB
in the amount of R$ 22,785 thousand (R$ 21,722 thousand in the 1st quarter/2015).
The Bank granted to BB Elo Cartões Participações S.A., its wholly owned subsidiary, irrevocably and irreversibly, and
without accounting effect, the contractual rights on the receipt of interchange fees inherent to the activities of
management of post-paid bill payment transactions and management of purchasing functionality via debit in payment
arrangements, due to the formation of strategic partnership with Cielo (Note 2).
The information related to Bank's contributions and other transactions with other sponsored entities are disclosed in
Note 26.
Acquisition of portfolio of loans transferred by Banco Votorantim
1st quarter/2016
Assignment with substantial retention of risks and rewards (with co-obligation)
Unrealized result, net of tax effects (balance)
1st quarter/2015
3,244,095
3,146,769
4,608
34,695
Summary of related party transactions
Controller
Assets
Interbank deposits
Securities
Loan operations
Receivables from related companies
Other assets (5)
Liabilities
Demand deposits
Saving deposits
Remunerated time deposits
Other liabilities
Guarantees and Other Coobligations (6)
Income from interest, services and other income
Expenses from raising funds
(1)
Joint ventures
and
Associates(2)
Mar 31, 2016
Key
Management
personnel (3)
Other related
parties (4)
Total
----3,179,650
1,410,605
3,403,081
17,217,679
271,017
880,241
------
-546,202
32,267,724
148
78,594
1,410,605
3,949,283
49,485,403
271,165
4,138,485
289,702
---561,086
226,899
18,366
-1,541
1,933,084
-1,193,997
1,942
3,510
478
----
1,497,499
345,678
9,302,509
2,861,162
85,878,296
1,293,754
1,807,509
349,188
9,304,528
4,794,246
86,439,382
2,714,650
-6,800,000
1st quarter/2016
1,420,557
1,961,510
(24,542)
(176,884)
--
663,344
7,463,344
-(81)
1,128,911
(1,445,508)
4,510,978
(1,647,015)
(1)
(2)
(3)
(4)
National Treasury and agencies under the direct administration of the Federal Government.
Companies are listed in Note 3.b.
Board of Directors, Executive Board, Audit Committee and Fiscal Council.
Includes the most significant transactions with state-owned companies and private companies controlled by the Federal Government, such as:
Petrobras, CEF, BNDES, Eletrobras, Fundo de Amparo ao Trabalhador – FAT, Fundo de Aval para Geração de Emprego e Renda – Funproger.
In addition, entities linked to employees and sponsored entities: Cassi, Previ and others.
(5) The transactions with the Controller refer mainly to Extension of rural credits – National Treasury transactions (Note 11.a), interest rate
equalization – agricultural crop and receivables – National Treasury (Note 11.b).
(6) Includes Contract of Opening of a Revolving Interbank Credit Line with Banco Votorantim.
84
st
1 quarter 2016
Controller
Assets
Interbank deposits
Securities
Loan operations
Receivables from related companies
(5)
Other assets
Liabilities
Demand deposits
Saving deposits
Remunerated time deposits
Other liabilities
Guarantees and Other Coobligations
(6)
Income from interest, services and other income
Expenses from raising funds
Joint ventures
and
(2)
Associates
(1)
Mar 31, 2015
Key
Management
(3)
personnel
Other related
parties (4)
Total
----17,154,029
1,130,576
3,478,096
16,330,875
110,551
3,575,117
------
--27,953,401
-177,553
1,130,576
3,478,096
44,284,276
110,551
20,906,699
433,364
---1,013,858
857,596
68,892
-550,791
9,505,344
-1,718,149
1,052
1,455
1,097
----
1,761,063
256,526
9,726,803
2,838,245
89,675,070
184,523
2,264,371
257,981
10,278,691
12,343,589
90,688,928
2,760,268
-6,800,000
1st quarter/2015
2,092,084
13,126,353
(20,724)
(22,848)
--
660,406
7,460,406
-(86)
708,689
(2,114,492)
15,927,126
(2,158,150)
(1)
(2)
(3)
(4)
National Treasury and agencies under the direct administration of the Federal Government.
Companies are listed in Note 3.b.
Board of Directors, Executive Board, Audit Committee and Fiscal Council.
Includes the most significant transactions with state-owned companies and private companies controlled by the Federal Government, such as:
Petrobras, CEF, BNDES, Eletrobras, Fundo de Amparo ao Trabalhador – FAT, Fundo de Aval para Geração de Emprego e Renda – Funproger.
In addition, entities linked to employees and sponsored entities: Cassi, Previ and others.
(5) The transactions with the Controller refer mainly to Extension of rural credits – National Treasury transactions (Note 11.a), interest rate
equalization – agricultural crop and receivables – National Treasury (Note 11.b).
(6) Includes Contract of Opening of a Revolving Interbank Credit Line with Banco Votorantim.
26 - EMPLOYEE BENEFITS
Banco do Brasil sponsors the following pension and health insurance plans for its employees:
Plans
Benefits
Previ Futuro
Classification
Retirement and Pension
Defined contribution
Defined benefit
Defined benefit
Health Care
Defined benefit
Prevmais
Variable contribution
Regulamento Geral
Defined benefit
Regulamento Complementar 1
Defined benefit
Grupo B’
Defined benefit
Plano Unificado de Saúde - PLUS
Health Care
Defined benefit
Plano Unificado de Saúde - PLUS II
Health Care
Defined benefit
Plano
de
Assistência
Complementar - PAMC
Health Care
Defined benefit
Multifuturo I
Variable contribution
Plano de Benefícios I
Defined benefit
SIM - Caixa de Assistência dos Empregados dos
Plano de Saúde
Sistemas Besc e Codesc, do Badesc e da Fusesc
Health Care
Defined contribution
Prevbep - Caixa de Previdência Social
Defined benefit
Previ - Caixa de Previdência dos Funcionários do
Plano de Benefícios 1
Banco do Brasil
Plano Informal
Cassi - Caixa de Assistência dos Funcionários do
Plano de Associados
Banco do Brasil
Economus – Instituto de Seguridade Social
Fusesc - Fundação Codesc de Seguridade Social
Plano BEP
Médica
85
st
1 quarter 2016
Number of participants covered by benefit plans sponsored by the Bank
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Number of participants
Active
Plans
Retired/Users
Total
Active
Retired/Users
Total
Active
Retired/Users
Total
113,728
109,917
223,645
112,847
110,020
222,867
115,235
105,415
220,650
Plano de Benefícios 1 - Previ
18,534
92,472
111,006
18,658
92,582
111,240
23,499
88,470
111,969
Plano Previ Futuro
79,278
969
80,247
78,340
942
79,282
74,985
799
75,784
--
3,472
3,472
--
3,472
3,472
--
3,709
3,709
15,916
13,004
28,920
15,849
13,024
28,873
16,751
12,437
29,188
114,667
99,586
214,253
113,952
99,783
213,735
116,268
95,767
212,035
102,265
92,353
194,618
101,528
92,515
194,043
103,270
88,441
191,711
12,402
7,233
19,635
12,424
7,268
19,692
12,998
7,326
20,324
Plano Informal
Other plans
Health Care Plans
Cassi
Other plans
Bank’s contributions to benefit plans
1st quarter/2016
1st quarter/2015
Retirement and Pension Plans
336,072
290,696
Plano de Benefícios 1 - Previ (1)
132,530
125,973
Plano Previ Futuro
130,173
95,458
Plano Informal
40,250
39,476
Other plans
33,119
29,789
278,238
247,033
246,023
219,124
Health Care Plans
Cassi
Other plans
Total
32,215
27,909
614,310
537,729
(1) Refers to the contributions relating to participants subject to Agreement 97 and Plan 1, whereby these contributions occur by the realization of
Fundo Paridade and Fundo de Utilização (Note 26.f). Agreement 97 aims to regulate the funding required to constitute a portion equivalent to
53.7% of guaranteed amount relating to the supplementary pension due to the participants who joined the Bank up to April 14, 1967 and who have
retired or will retire after the aforementioned date, except for those participants who are part of the Plano Informal.
The Bank estimates that contributions to benefit plans (post-employment) in the first half of 2015 will be
approximately R$ 787,294 thousand.
Values recognized in income
1st quarter/2016
Retirement and Pension Plans
(321,206)
1st quarter/2015
(31,927)
Plano de Benefícios 1 - Previ
(109,856)
138,929
Plano Previ Futuro
(130,173)
(95,458)
Plano Informal
(45,270)
(35,923)
Other plans
(35,907)
(39,475)
(399,115)
(325,815)
(366,411)
(297,317)
Health Care Plans
Cassi
Other plans
Total
(32,704)
(28,498)
(720,321)
(357,742)
a) Retirement and pension plans
Previ Futuro (Previ)
Participants in this plan include Bank employees hired after December 24, 1997. Depending on time of service and
salary, active participants may contribute between 7% and 17% of their salary (retired participants do not contribute).
The plan sponsor matches participants’ contributions up to 14% of their salaries.
Plano de Benefícios 1 (Previ)
Participants in this plan include Bank employees hired prior to December 23, 1997. Active and retired participants
may contribute between 1.8% and 7.8% of their salary or pension.
86
st
1 quarter 2016
Prior to December 15, 2000, the Bank contributed 2/3 of the total amount to this plan. As from December 16, 2000,
considering the Federal Constitutional Amendment nº 20, the Bank and the participants started to make equal
contributions. As a result of this contributive parity, the Parity Fund was set-up in December 2000, and its funds are
being used to offset the Bank’s contributions (Note 26.f).
Plano Informal (Previ)
Banco do Brasil is fully responsible for this plan. The Bank’s contractual obligations include to:
(i) providing retirement benefits to the initial group of participants and pension payments to the beneficiaries of
participants who died prior to April 14, 1967;
(ii) paying additional retirement benefits to plan participants who retired prior to April 14, 1967, or had the right to
retire based on time of service and at least 20 years of service with the Bank; and
(iii) increasing retirement and pension benefits due to judicial and administrative decisions related to changes in the
Bank’s career, salary and incentive plans (in excess of the plan’s original benefits).
The Bank and Previ formalized an agreement on December 31, 2012. Under the agreement, Banco do Brasil paid
100% of the mathematical reserves for the so-called Grupo Especial (for which it was fully liable) using funds from the
Fundo Paridade. As a result, this group migrated from the Plano Informal to Plano de Benefícios 1. The Grupo
Especial included participants from Plano de Benefícios 1 (Previ) listed in the paragraph of first clause of the contract
signed on December 24, 1997. These participants received additional retirement benefits due to administrative and/or
judicial decisions (Note 26.f).
Prevmais (Economus)
Participants in this plan include employees of Banco Nossa Caixa (a bank acquired by Banco do Brasil on November
30, 2009) who enrolled after August 01, 2006, or were part of the Regulamento Geral benefit plan and opted to
receive their vested account balances. The sponsor and participants make equal contributions, which may not
exceed 8% of participants’ salaries. The plan provides additional risk coverage, including supplemental health, workrelated accident, disability and death benefits.
Regulamento Geral (Economus)
Participants in this plan include employees of Banco Nossa Caixa who enrolled prior to July 31, 2006. This plan is
closed to new members. The sponsor and participants contribute equally, averaging 12.11% of participants’ salaries.
Regulamento Complementar 1 (Economus)
Participants in this plan include employees of Banco Nossa Caixa. This plan offers supplemental health benefits and
annuities upon death or disability. The sponsor, participants and retired/other beneficiaries fund the plan.
Grupo B' (Economus)
Participants in this plan include employees of Banco Nossa Caixa admitted between January 22, 1974, and May 13,
1974, and their beneficiaries. This plan is closed to new members. Benefit levels are based on the fulfillment of
certain conditions outlined in the plan regulation.
Multifuturo I (Fusesc)
Participants in this plan include employees of the State Bank of Santa Catarina – Besc (acquired by Banco do Brasil
on September 30, 2008) who enrolled after January 12, 2003, or were part of the Plano de Benefícios I (Fusesc) and
chose to participate in this plan. Participants may contribute from 2.33% to 7% of their salaries. The plan sponsor
matches these contributions.
87
st
1 quarter 2016
Plano de Benefícios I (Fusesc)
Participants in this plan include employees of Besc who enrolled prior to January 11, 2003. This plan is closed to new
members. The sponsor and participants contribute equally, averaging 9.89% of participants’ salaries.
Plano BEP (Prevbep)
Participants in this plan include employees of the State Bank of Piauí – BEP (acquired by Banco do Brasil on
November 30, 2008). The sponsor and participants contribute equally, averaging 3.58% of participants’ salaries.
b) Health Care Plans
Plano de Associados (Cassi)
The Bank sponsors a health care plan managed by Cassi. The plan covers health care services related to prevention,
protection, recovery and rehabilitation for participants and their beneficiaries. Each month, the Bank contributes 4.5%
of participants’ salaries or pension benefits. Monthly contributions by participants and pensioners total 3% of their
salary or pension, in addition to copayments for certain hospital procedures.
Plano Unificado de Saúde - PLUS (Economus)
Participants in this plan include employees from Banco Nossa Caixa. Participation in this plan requires a direct payroll
deduction of 1.5%, providing coverage for employees and certain preferred dependents. An additional 10%
copayment is required for each medical visit and low-cost exam performed by employees and their dependents (both
preferred and non-preferred).
Plano Unificado de Saúde - PLUS II (Economus)
Participants in this plan include employees from Banco Nossa Caixa. Participation in this plan requires a direct payroll
deduction of 1.5%, providing coverage for employees and certain preferred dependents. An additional 10%
copayment is required for each medical visit and low-cost exam performed by employees and their dependents and
adult children. This plan does not cover non-preferred dependents.
Plano de Assistência Médica Complementar - PAMC (Economus)
Participants in this plan include employees of Banco Nossa Caixa located in the state of São Paulo. The plan serves
disabled employees under the Complementar and Regulamento Geral and their dependents. Participant costs vary
based on usage and in accordance with a progressive salary table.
Plano de Saúde (SIM)
Participants in this plan include employees of Besc and other sponsors of the plan (including Badesc, Codesc,
Bescor, Fusesc and SIM). For active members, monthly contributions total 3.44% of salary, including their 13th
salary. For inactive members, monthly contributions total 8.86% of salary, while the plan sponsors contribute 5.42%.
Beneficiaries also contribute 0.75% per dependent. The plan requires a copayment for ambulatory care procedures.
c) Risk factors
The Bank may need to make unplanned contributions to Previ, Economus, Fusesc and Prevbep, which could
negatively affect operating income.
Determination of the Bank’s obligations to these entities is based on long-term actuarial and financial estimates and
the application and interpretation of current regulatory standards. Inaccuracies inherent to the estimation process
could result in differences between recorded amounts and the actual obligations in the future. This could have a
negative impact on the Bank’s operating results.
88
st
1 quarter 2016
d) Actuarial valuations
Actuarial evaluations are performed every six months. The information contained in the below tables refers to the
calculations at December 31, 2015 and 2014.
d.1) Changes in present value of defined benefit actuarial obligations
Plano 1 - Previ
Plano Informal - Previ
(122,884,677)
(113,522,849)
(920,380)
(1,004,111)
(5,830,331)
(6,333,578)
(6,428,867)
(5,971,976)
(15,217,436)
(14,412,148)
(111,770)
(121,305)
(731,014)
(755,247)
(768,894)
(750,257)
(428,722)
(502,741)
--
--
(95,421)
(116,703)
(34,274)
(38,970)
--
--
(29,609)
(25,402)
--
--
--
--
Benefits paid net of retirees contributions
9,432,737
8,394,631
180,547
185,004
564,759
507,409
514,118
424,664
Remeasurements of actuarial gain/ (losses)
7,768,183
(2,841,570)
(28,068)
45,434
(156,091)
867,788
415,996
(92,328)
(198,997)
(1,594,225)
(35,065)
44,547
(616,729)
951,604
(183,233)
(155)
(2,626,460)
--
(44,338)
--
(125,433)
--
1,243
4,446
Interest cost
Current service cost
Past service cost
Experience adjustment
Changes to biometric assumptions
Changes to financial assumptions
Closing balance
Present value of actuarial liabilities with surplus
Present value of actuarial liabilities without surplus
2014
2015
2014
Other plans
2014
Opening balance
2015
Plano de Associados - Cassi
2015
2015
2014
10,593,640
(1,247,345)
51,335
887
586,071
(83,816)
597,986
(96,619)
(121,329,915)
(122,884,677)
(909,280)
(920,380)
(6,248,098)
(5,830,331)
(6,301,921)
(6,428,867)
(118,378,747)
(122,884,677)
--
--
--
--
(5,394,014)
(5,115,870)
(2,951,168)
--
(909,280)
(920,380)
(6,248,098)
(5,830,331)
(907,907)
(1,312,997)
d.2) Changes in fair value of plan assets
Plano 1 - Previ
2015
2015
2014
Opening balance
135,145,646
144,420,740
--
--
--
--
5,115,870
5,033,968
Interest income
16,362,156
17,611,011
--
--
--
--
627,308
621,916
549,275
581,636
180,547
185,004
564,759
507,409
156,514
151,576
(9,432,737)
(8,394,631)
(180,547)
(185,004)
(564,759)
(507,409)
(514,118)
(424,664)
(24,245,593)
(19,073,110)
--
--
--
--
8,440
(266,926)
118,378,747
135,145,646
--
--
--
--
5,394,014
5,115,870
Contributions received
Benefits paid net of retirees contributions
Actuarial gain / (loss) on plan assets
Closing balance
2014
2015
Other plans(1)
2014
2015
2014
(1) Refers to the following plans: Regulamento Geral (Economus), Prevmais (Economus), Regulamento Complementar 1 (Economus), Multifuturo I
(Fusesc), Plano I (Fusesc) and Plano BEP (Prevbep).
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d.3) Amounts recognized in the balance sheet
Plano 1 - Previ
Mar 31, 2016
1) Fair value of the plan assets
Dec 31, 2015
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Other plans
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
118,378,747
118,378,747
135,145,646
--
--
--
--
--
--
5,394,014
5,394,014
5,115,870
(121,329,915)
(121,329,915)
(122,884,677)
(909,280)
(909,280)
(920,380)
(6,248,098)
(6,248,098)
(5,830,331)
(6,301,921)
(6,301,921)
(6,428,867)
3) Surplus/(deficit) (1+2)
(2,951,168)
(2,951,168)
12,260,969
(909,280)
(909,280)
(920,380)
(6,248,098)
(6,248,098)
(5,830,331)
(907,907)
(907,907)
(1,312,997)
4) Surplus/(deficit) - plot sponsor
(1,475,583)
(1,475,583)
6,130,485
(909,280)
(909,280)
(920,380)
(6,248,098)
(6,248,098)
(5,830,331)
(711,040)
(711,040)
(916,046)
(109,856)
--
138,929
(45,270)
--
(35,923)
(265,676)
--
(201,265)
(29,486)
--
(32,577)
132,530
--
125,973
--
--
--
--
--
--
--
--
--
--
--
--
40,251
--
39,445
145,288
--
124,693
26,208
--
22,300
(1,452,909)
(1,475,583)
6,395,387
(914,299)
(909,280)
(916,858)
(6,368,486)
(6,248,098)
(5,906,903)
(714,318)
(711,040)
(926,323)
2) Present value of actuarial liabilities
5) Amounts recognized in profit (1)
6) Amounts received from funds (Note 26.f) (1)
7) Benefits paid (1)
8) Net acturial (liability)/asset (4+5+6+7) (2)
(1) Changes occurred after the actuarial valuation from December.
(2) Refers to the portion of the surplus/(deficit) due from the sponsor.
d.4) Maturity profile of defined benefit actuarial obligations
Duration(1)
Up to 1 year
1 to 2 years
Expected benefit payments(2)
2 to 5 years
Over 5 years
Total
Plano 1 (Previ)
8.62
11,392,965
11,302,396
33,052,272
193,368,286
4.47
171,701
150,708
347,437
656,225
1,326,071
11.37
497,334
491,728
1,445,651
14,963,368
17,398,081
8.14
447,864
443,849
1,302,678
6,909,588
9,103,979
249,115,919
12.65
1,500
1,612
5,565
85,343
94,020
Plus I e II (Economus)
6.85
49,188
46,658
125,446
488,940
710,232
Grupo B' (Economus)
8.18
14,278
14,250
42,377
231,461
302,366
Prevmais (Economus)
14
12,645
13,126
42,388
726,945
795,104
10.33
5,690
5,707
17,180
149,106
177,683
Plano I (Fusesc)
10.29
35,084
36,417
117,976
1,058,282
1,247,759
10.2
2,694
2,721
9,464
80,842
95,721
Plano BEP (Prevbep)
(1) Weighted average duration, in years, of the defined benefit actuarial obligation.
(2) Amounts considered without discounting at present value.
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1 quarter 2016
d.5) Breakdown of the amounts recognized in statement of income relating to defined benefit plans
Plano 1 - Previ
1st quarter/2016
Current service cost
1st quarter/2015
1st quarter/2016
1st quarter/2015
1st quarter/2016
Other plans
1st quarter/2015
1st quarter/2016
1st quarter/2015
(56,183)
(53,110)
--
--
(19,762)
(23,168)
(3,621)
(4,579)
(2,273,897)
(1,867,158)
(33,289)
(27,810)
(245,914)
(178,096)
(126,966)
(105,708)
2,220,224
2,059,197
--
--
--
--
101,100
77,710
Unrecognized past service cost
--
--
(11,981)
(8,113)
--
--
--
--
Expense with active employees
--
--
--
--
(100,735)
(96,053)
(39,124)
(35,396)
(109,856)
138,929
(45,270)
(35,923)
(366,411)
(297,317)
(68,611)
(67,973)
Interest cost
Expected yield on plan assets
(Expense)/income recognized in the Statement of Income
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d.6) Composition of the plan assets
Plano 1 - Previ
Dec 31, 2015
Other plans
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Fixed income
49,198,207
46,440,688
4,827,283
4,490,711
Floating income (1)
55,353,902
74,607,857
131,884
227,912
Real estate investments
8,203,647
8,177,129
205,422
165,839
Loans and financing
4,770,664
4,946,825
104,914
104,875
Other
852,327
973,147
124,511
126,533
Total
118,378,747
135,145,646
5,394,014
5,115,870
7,887,153
10,940,267
22,087
25,537
152,194
163,817
9,168
7,621
Amounts listed in fair value of plan assets
In the entity’s own financial instruments
In properties or other assets used by the entity
(1) Includes, in Plano de Benefícios 1 from Previ, the amount of R$ 20,521,220 thousand (R$ 28,835,180 thousand as of December 31, 2014),
related to the assets that are not quoted in active markets.
d.7) Main actuarial assumptions adopted
Plano 1 - Previ
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Other plans
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
Inflation rate (p.a.)
7.96%
6.07%
8.10%
6.23%
7.97%
6.04%
7.94%
Real discount rate (p.a.)
7.35%
6.31%
7.37%
6.19%
7.28%
6.33%
7.35%
6.31%
Nominal rate of return on
investments (p.a.)
15.90%
12.76%
--
--
--
--
15.88%
12.76%
1.01%
1.01%
--
--
--
--
0.88%
0.73%
AT-2000
Soft AT-2000
(reduced by
10%)
AT-2000
Soft AT-2000
(reduced by
10%)
AT-2000
Real rate of expected salary
growth (p.a.)
Actuarial life table
Capitalization method
Soft AT-2000
(reduced by
10%)
Projected credit unit
6.07%
AT-2000
In order to determine the values for the defined benefit plans, the Bank uses methods and assumptions different from
those submitted by the entities sponsored.
CPC 33 (R1) prescribes the accounting, as well as the effects that occurred or that will occur in the entities that
sponsor employee benefits plans. However, the sponsored entities themselves must comply with the rules issued by
the Ministério da Previdência Social, through the Conselho Nacional de Previdência Complementar (CNPC) and the
Superintendência Nacional de Previdência Complementar (Previc). The most significant differences are in the
definition of the assumptions used in Plano 1 – Previ.
d.8) Differences in assumptions of the Plano 1 - Previ
Bank
Previ
Real discount rate (p.a.)
Evaluation of assets - Exclusive funds
7.35%
5.00%
Market value or discounted cash flow
Discounted cash flow
Aggregate Method
Capitalization method
d.9) Reconciliation of amounts calculated in Plan 1 - Previ/Bank
Plan assets
Dec 31, 2015
Value determined - Previ
Incorporation of values from agreement 97
Incorporation of values from Grupo Especial
Adjustment in the value of plan assets (1)
Adjustment in the liabilities - discount rate/ capitalization method
Value determined - Bank
Actuarial liabilities
Dec 31, 2014
Effect in surplus/(deficit)
Dec 31, 2015
Dec 31, 2014
Dec 31, 2015
Dec 31, 2014
119,301,485
134,450,819
(135,862,751)
(122,073,122)
(16,561,266)
12,377,697
14,314,157
13,687,582
(14,314,157)
(13,687,582)
--
--
1,135,082
1,071,445
(1,135,082)
(1,071,445)
--
--
(16,371,977)
(14,064,200)
--
--
(16,371,977)
(14,064,200)
--
--
29,982,075
13,947,472
29,982,075
13,947,472
118,378,747
135,145,646
(121,329,915)
(122,884,677)
(2,951,168)
12,260,969
(1) Refers mainly to adjustments made by the Bank in determining the fair value of the investments in Litel, Neoenergia and in securities held to
maturity.
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1 quarter 2016
d.10) Sensitivity analysis
The sensitivity analysis is performed for changes in a single assumption while maintaining all others constant. This is
unlikely in reality, since some of the assumptions are correlated.
The same methodology was used to perform the sensitivity analysis in each of the periods presented. However, the
discount rate was updated to reflect market conditions .
Life table
Salary increase
Interest rate
Dec 31, 2015
+1 age
-1 age
+0.25%
-0.25%
+0.25%
-0.25%
Present value of defined benefit actuarial obligations
121,329,915
119,009,618
123,605,991
121,329,928
121,329,901
118,943,061
123,808,910
(5,430,162)
Plano 1 (Previ)
Surplus/(deficit) in the plan
(2,951,168)
(630,870)
(5,227,243)
(2,951,180)
(2,951,153)
(564,313)
909,280
876,741
942,443
--
--
898,895
919,928
(909,280)
(876,741)
(942,443)
--
--
(898,895)
(919,928)
Plano de Associados
(Cassi)
6,248,098
6,135,019
6,374,477
6,252,956
6,236,810
6,122,869
6,394,907
(6,248,098)
(6,135,019)
(6,374,477)
(6,252,956)
(6,236,810)
(6,122,869)
(6,394,907)
Regulamento Geral
(Economus)
4,940,666
4,884,837
4,993,937
--
--
4,847,075
5,038,013
(773,457)
(717,620)
(826,720)
--
--
(679,857)
(870,796)
Regulamento
Complementar 1
(Economus)
31,699
33,106
30,336
--
--
30,756
32,685
2,123
716
3,486
--
--
3,066
1,137
349,859
338,251
361,193
--
--
343,987
355,822
(355,822)
(349,859)
(338,251)
(361,193)
--
--
(343,987)
124,157
121,514
126,717
--
--
121,963
126,425
(124,157)
(121,514)
(126,717)
--
--
(121,963)
(126,425)
190,497
190,103
190,905
193,468
187,254
185,114
196,176
119,277
119,671
118,868
116,306
122,520
124,660
113,598
62,472
61,894
63,024
--
--
61,081
63,921
101,229
101,807
100,677
--
--
102,620
99,780
558,486
557,617
559,498
558,487
558,485
552,738
564,442
Grupo B' (Economus)
Prevmais (Economus)
Plano I (Fusesc)
70,092
70,961
69,080
70,091
70,093
75,839
64,136
44,085
43,492
44,736
44,215
43,956
43,347
44,931
46,845
47,437
46,194
46,715
46,974
47,583
45,999
Plano BEP (Prevbep)
e) Overview of actuarial asset/(liability) recorded by the Bank
Actuarial assets
Mar 31, 2016
Dec 31, 2015
Actuarial liabilities
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Plano 1 (Previ)
--
--
6,395,387
(1,452,909)
(1,475,583)
--
--
--
--
(914,299)
(909,280)
(916,858)
--
--
--
(6,368,486)
(6,248,098)
(5,906,903)
--
--
--
(413,392)
(406,498)
(543,438)
971
753
--
--
--
(543)
--
--
--
(350,349)
(349,859)
(360,840)
Grupo B' (Economus)
--
--
--
(125,227)
(124,157)
(125,925)
Prevmais (Economus)
61,186
59,638
39,110
--
--
--
51,938
50,615
28,662
--
--
--
Plano I (Fusesc)
36,379
35,046
15,465
--
--
--
Plano BEP (Prevbep)
24,176
23,422
21,186
--
--
--
174,650
169,474
6,499,810
(9,624,662)
(9,513,475)
(7,854,507)
Total
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st
1 quarter 2016
f) Allocations of the Surplus - Plano 1
1st quarter/2016
2015
1st quarter/2015
Fundo Paridade
Opening balance
120,378
118,889
118,889
5,042
18,413
6,500
Contributions to Plano 1 - Agreement 97
--
(11,829)
--
Early contribution to amortize - Grupo Especial (1) (1)
--
(5,095)
(857)
125,420
120,378
124,532
Opening balance
8,959,543
8,155,243
8,155,243
Contributions to Plano 1
(132,530)
(532,351)
(125,116)
373,330
1,336,651
444,371
9,200,343
8,959,543
8,474,498
9,325,763
9,079,921
8,599,030
Restatement
Closing balance
Fundo de Utilização
Restatement
Closing balance
Total funds allocated surplus
(1) Refers to the payment of 100% of the mathematical reserves for guarantees of additional supplemental retirement for the Grupo Especial.
f.1) Fundo Paridade
In 2000, the cost of switching to equal contributions was based on the Plano de Benefícios 1’s surplus at the time.
The agreement (between Banco do Brasil and participants) allowed the Bank to recognize an asset of
R$ 2.227.254 million in Allocation funds surplus. The asset is recalculated each month based on the actuarial goal:
INPC (the National Consumer Price Index published by the Brazilian Institute of Geography and Statistics – IBGE) +
5% p.a..
Since January 2007, the asset has been used to offset financial liabilities related to the agreement signed with Previ
in 1997. This agreement granted additional benefits to participants in Plano 1 (Previ) who joined the plan prior to April
14, 1967, and had not yet retired.
f.2) Fundo de Utilização
This fund contains resources transferred from the Allocation Fund (because of the plan’s surplus), which the Bank
can use for repayments or to reduce future contributions (after first meeting all applicable legal requirements). The
Fundo de Utilização is recalculated based on the actuarial target (INPC + 5% p.a.).
94
st
1 quarter 2016
27 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES, LEGAL LIABILITIES - TAXES AND
SOCIAL SECURITY
a) Contingent assets
According to CPC 25 – Provisions, Contingent Liabilities and Contingent Assets contingent assets are not recognized
in the financial statements.
b) Labor lawsuits
The Bank is defendant to labor lawsuits mainly filed by former employees or trade unions of the banking industry. The
allowance for probable losses represents various claims, such as: compensation, overtime, distortion of the working
day, additional function and representation amongst others.
c) Tax lawsuits
The Bank, in spite of its conservative profile, is subject to tax inquiries (inspections conducted by the tax authorities),
which may eventually lead to tax assessments, such as: the composition of the calculation of the taxable profit for
income tax/social contribution (deductibility) and discussion regarding the incidence of taxes, when certain taxable
event occur. Most assessments are related to tax on services of any kind – ISSQN, income tax, social contribution,
social integration program/contribution to social security financing – PIS/COFINS, IOF tax and employer social
security contributions. As a guarantee for some of them, the Bank has pledged cash, bonds, real estate or made
judicial deposits when necessary, preventing the Bank to be included in restrictive registration, as well as not to
obstruct the semiannual renewal of its tax regularity certificate.
d) Civil lawsuits
Civil lawsuits consist mainly of: lawsuits of customers and users of our network asking for material and moral
damages indemnity related to banking products and services and Economic Plans.
The indemnities for material and moral damages are based on consumer protection laws and are generally settled in
Special Civil Courts, whose value is limited to forty times the minimum wage.
The Bank is a defendant in proceedings seeking the payment of the difference between the actual inflation rate and
the inflation rate used for the adjustment of financial investments when economic plans were implemented in the late
1980’s and early 1990’s, known as the Bresser Plan, the Verão Plan and the Collor Plans I and II (or Economic
Plans).
Although the Bank complied with the laws and regulations in place at the time, these lawsuits have been recorded in
provisions, taking into consideration the claims where the Bank is the defendant and the outcome of loss is judged to
be probable, which is determined after the analysis of each demand, based on the current decision of the Superior
Court of Justice (STJ).
Regarding disputes relating to economic plans, the Federal Supreme Court (STF) suspended the prosecution of all
cases on appeal, until the Court issues a definitive pronouncement on the right under litigation.
e) Provisions for labor, tax and civil claims - probable loss
The Bank recorded a provision for labor, civil and tax demands with risk of loss "likely", quantified using individual or
mass methodology (includes processes with the author's probability of success equal to remote, possible or
probable), according to the nature and / or process value.
The estimates of outcome and financial effect are determined by the nature of the actions, the management's
judgment, by the opinion of legal counsel on the basis of process elements, complemented by the complexity and the
experience of similar demands.
The Management considers to be sufficient the allowance for losses of labor, tax and civil claims.
95
st
1 quarter 2016
e.1) Changes in the provisions for civil, tax and labor claims classified as probable
1st quarter/2016
1st quarter/2015
Labor lawsuits
Opening balance
2,169,106
Addition
Reversal of the provision
Paid out
Inflation correction
Closing balance
2,179,821
340,810
76,954
(7,186)
(16,254)
(166,571)
(279,509)
54,947
69,531
2,391,106
2,030,543
245,695
206,515
Tax lawsuits
Opening balance
Addition
Paid out
66,211
12,275
(12,158)
(15,638)
(4,068)
(2,184)
2,865
4,339
298,545
205,307
7,150,581
5,536,595
716,493
1,060,514
(517,810)
(202,502)
Paid out
(370,354)
(254,267)
Closing balance
Civil lawsuits
Opening balance
Addition
Closing balance
Total labor, tax and civil
81,314
140,529
7,060,224
6,280,869
9,749,875
8,516,719
e.2) Expected outflows of economic benefits
Labor
Up to 5 years
From 5 to 10 years
Over 10 years
Total
Tax
Civil
2,330,282
159,550
5,750,458
60,731
106,681
1,279,304
93
32,314
30,462
2,391,106
298,545
7,060,224
The scenario of unpredictability of the duration of proceedings, and the possibility of changes in the case law of the
courts, make values and the expected outflows of economic benefits uncertain.
f) Contingent liabilities – possible loss
The lawsuits, tax and civil risks classified as possible loss do not require provisions when the final outcome of the
process is unclear and when the probability of losing is less than more-likely-than-not and higher than the remote.
f.1) The balances of contingent liabilities classified as possible loss
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Labor lawsuits
188,070
215,042
169,451
(1)
8,582,997
12,777,102
11,179,071
Tax lawsuits
Civil lawsuits
Total
2,646,082
3,270,906
3,238,697
11,417,149
16,263,050
14,587,219
(1) The main contingencies originate from (i) assessment for the payment of social security - INSS contributions on: salary bonus paid under the
collective agreements in the period from 1995 to 2006, in the amount of R$ 2,869,114 thousand; public transport benefits and the use of private
car by employees of Banco do Brasil, in the amount of R$ 255,038 thousand; and employee profit share payments corresponding to the period
from April 2001 to October 2003, in the amount of R$ 79,093 thousand and (ii) notices of tax assessment made by the Treasuries of the
Municipalities, claiming ISSQN totaling R$ 966,703 thousand.
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st
1 quarter 2016
g) Deposits in guarantee
g.1) Deposits given in guarantee of contingencies
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Labor lawsuits
4,661,408
4,532,105
Tax lawsuits
6,950,698
6,836,107
4,132,164
6,436,818
Civil lawsuits
16,751,314
15,991,552
12,148,277
Total
28,363,420
27,359,764
22,717,259
h) Legal obligations
The Bank has a record in Other liabilities - tax and social security the amount of R$ 14,316,074 thousand
(R$ 14,076,071 thousand on December 31,2015 and R$ 13,350,098 thousand on March 31,2015) relating to the
following action:
On January 29, 1998, the Bank filed for a writ of mandamus, distributed to the 16th Federal Court of Federal District
(16º Vara da Justiça Federal do Distrito Federal) claiming full compensation of accumulated losses for income tax
purposes and negative basis for the calculation of Social contribution on net income (CSLL). Since then, the Bank
has been fully offsetting the tax loss and the negative basis of social contribution against income tax and social
contribution, and has made judicial deposits for the full amount due (70% of the amount offset). These deposits
prompted the 16º Vara da Justiça Federal do Distrito Federal to issue an order recognizing the suspension of
chargeability of these taxes based on article 151, item II, of the National tax code (Código Tributário Nacional - CTN).
The case was dismissed in the first instance and an appeal brought by the Bank was denied by the Federal Regional
Court (Tribunal Regional Federal – TRF) of the First Region. The decision was challenged by extraordinary appeal
filed by the Bank on October 1, 2002. Today, the appeal is pending in the TRF of the First Region awaiting the
judgment by the STF of another Extraordinary Feature (RE No. 591,340), which was recognized by the Supreme
Court as setting a relevant judicial precedent.
The offsetting of tax loss carry forward and recoverable CSLL has resulted in the write-off of deferred tax credits,
observing the limitation of 30%.
Deferred taxes including corporate income tax (IRPJ) and Social contribution on net income (CSLL) on the interest /
inflation restatements of judicial deposits are being offset with the tax credits resulting from the provision related to
that judicial deposit, in conformity with article 1, item II, paragraph 2 of CMN Resolution 3,059/2002, with no impact
on income.
Based on the hypothesis of a successful outcome to this lawsuit, in September 2005 and January 2009, the Bank
would have consumed the entire stock of tax loss carry forward and recoverable social contribution. Therefore, since
October 2005 and February 2009, the amounts of IRPJ and CSLL are being paid in full. Moreover, there would be a
reclassification of resources from the account used to record judicial deposits to that of cash and cash equivalents.
Tax credits for the escrow deposits (main value) would be written-off against the allowance of IRPJ and CSLL and
would be reversed against income, the provision for tax risks related to the restatement of the deposits amounts to
R$ 7,744,401 thousand.
If the Bank were unsuccessful in its lawsuit (situation in which the amounts deposited judicially would be converted
into income in favor of the Fazenda Nacional (Federal Tax Authority)), the portions of IRPJ tax credits on tax losses
and CSLL to offset would be reclassified to the representative asset account IRPJ recoverable and CSLL
recoverable, that could be used since the accrual period starting October 2005 and February 2009, observing the
limitation of 30%. The taxes recoverable, which would result from the adjustments to prior year Statements of
economic-fiscal information of businesses, corresponds to R$ 5,664,279 thousand as of March 31, 2016 and
updating by the Selic rate results in a further recoverable amount of R$ 3,058,904 thousand. This sum adjusts the
provision for tax risks with respect to the updating of court deposits so that it will be sufficient to fully cancel the risk of
a loss.
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h.1) The amounts related to this matter
Mar 31, 2016
Judicial Deposits
Amount realized (70%)
Dec 31, 2015
Mar 31, 2015
16,650,943
16,399,235
15,637,858
7,817,011
7,817,011
7,817,011
8,833,932
8,582,224
7,820,847
14,316,074
14,076,071
13,350,098
Tax losses of IRPJ
3,002,033
3,002,033
3,002,033
CSLL negative bases/ CSLL recoverable
3,569,640
3,569,640
3,569,640
Provision for restatement of judicial deposit
7,744,401
7,504,398
6,778,425
Legal Obligations - provision for lawsuit
28 - RISK AND CAPITAL MANAGEMENT
a) Risk management process
Banco do Brasil considers risks and capital management as one of the main vectors for the decision-making process.
The Institution has a process of identification of risks that will be part of the Institution's risks inventory, performed by
analysing the business segments that are explored, direct and indirectly, considering the Entities Related to Banco do
Brasil. The risks below are part of Banco do Brasil's Financial Conglomerate Relevant Risks Corporate Range:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
Credit Risk;
Counterparty Credit Risk;
Concentration Risk;
Liquidity Risk;
Operational Risk;
Market Risk;
Banking Book Interest Rate Risk;
Strategic Risk;
Reputational Risk;
Environmental Risk;
Legal Risk;
Participations Risk;
Complementary Pension Fund Entities and Private Health Insurance Plan Operators for Employees Risk;
and
Model Risk.
In the Bank, the collegiate risk management is performed completely segregated from the business units. Risk
management policies are approved by the Board of Directors. The Global Risk Superior Committee (CSRG), a forum
composed of the President and Vice-Presidents, is responsible for implementation and monitoring of these policies.
The guidelines issued by the CSRG are conducted by specific executive committees (credit, market, liquidity and
operational), which are groups formed by Directors.
To learn more about the risk management process in Banco do Brasil, visit the information available in the Risk
Management Report at the website bb.com.br/ri.
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Financial instruments - fair value
Financial instruments recorded in balance sheet accounts, compared to fair value:
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Unrealized gain/loss, net of tax effects
On shareholders’ equity
On income
Book value
Fair value
Book value
Fair value
Book value
Fair value
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Assets
361,801,817
360,005,062
352,741,787
352,737,420
349,526,386
349,547,527
(1,796,755)
(4,367)
21,141
(1,796,755)
(4,367)
21,141
Securities
118,054,169
117,791,132
113,923,018
113,683,766
112,839,594
112,642,841
(4,870,258)
(5,349,992)
(2,304,270)
(263,037)
(239,252)
(196,753)
--
--
--
--
--
--
(4,607,221)
(5,110,740)
(2,107,517)
--
--
-(196,753)
Adjustment of securities available for sale (Note
8.a)
Adjustment of securities held to maturity (Note 8.a)
Loan operations
--
--
--
--
--
--
(263,037)
(239,252)
(196,753)
(263,037)
(239,252)
3,567,711
3,567,711
3,362,032
3,362,032
2,683,486
2,683,486
--
--
--
--
--
--
610,165,415
610,872,142
627,877,787
614,463,025
606,441,494
595,265,322
706,727
(13,414,762)
(11,176,172)
706,727
(13,414,762)
(11,176,172)
(135,639)
Liabilities
Interbank deposits
36,885,394
37,744,097
41,482,547
42,491,031
36,736,128
36,871,767
(858,703)
(1,008,484)
(135,639)
(858,703)
(1,008,484)
Time deposits
202,573,182
202,439,616
204,542,130
204,319,982
211,894,634
212,077,385
133,566
222,148
(182,751)
133,566
222,148
(182,751)
Liabilities related to repurchase agreement
354,408,359
351,595,018
333,521,648
331,363,071
329,165,719
327,923,075
2,813,341
2,158,577
1,242,644
2,813,341
2,158,577
1,242,644
113,313,382
113,607,034
119,731,066
119,978,533
115,819,948
116,351,016
(293,652)
(247,467)
(531,068)
(293,652)
(247,467)
(531,068)
3,635,643
3,635,643
3,289,172
3,289,172
4,301,519
4,301,519
--
--
--
--
--
--
209,217,150
208,306,377
204,140,873
201,344,954
192,676,379
189,216,849
910,773
2,795,919
3,459,530
910,773
2,795,919
3,459,530
(3,254,961)
(14,848,428)
(9,606,585)
1,352,260
(9,737,688)
(7,499,068)
Other liabilities
Unrealized gain/(loss), net of tax effects
Determination of fair value of financial instruments
Short-term interbank investments: The fair value was obtained by discounting future cash flows, using interest rates traded by the market in similar operations on the balance sheet
date.
Securities: Securities are accounted for by market value, as allowed for in Bacen Circular No. 3,068/2001, except for securities held to maturity. The fair value of the securities,
including those held to maturity, is obtained from rates practised in the market.
Loan operations: The fair value of fixed rate operations has been estimated through the future cash flow discount method, considering the interest rates utilized by the Bank when
originating similar operations at the balance sheet date. For operations that are remunerated by floating rates, the fair value was equivalent to the book value itself.
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Interbank deposits: The fair value has been calculated by the discount of the future cash flows using rates currently
applicable in the market for fixed rate deposits. In case of floating operations the maturities of which are less than 30
days, the book value was deemed approximately equivalent to the fair value.
Time deposits: The same criteria adopted for interbank deposits are utilized in the determination of the fair value.
Liabilities related to repurchase agreement: For operations at fixed rates, the fair value was determined calculating
the discount of the estimated cash flows adopting a discount rate equivalent to the rates applied in contracting similar
operations on the last trading day. For floating operations, book values have been deemed approximately equivalent
to market value.
Borrowing and onlendings: Such operations are exclusive to the Bank with no similar operations in the market. Given
their specific characteristics, the exclusive rates for each fund, the inexistence of an active market or similar traded
instruments, the fair values of such operations are considered equivalent to the book value.
Other liabilities: Fair values have been determined by the discounted cash flow method, which takes into account
interest rates offered in the market for obligations with similar maturities, risks and terms.
Derivatives financial instruments: According to Bacen Circular No. 3,082/2002, derivatives are recorded at market
value. The market value of derivatives was estimated in accordance with internal pricing models, with the use of the
rates disclosed for transactions with similar terms and indices on the last business day of the period.
Other financial instruments: Included or not in the balance sheet, fair value is approximately equivalent to the
corresponding book value.
Source of information regarding assets and liabilities measured at fair value in the balance sheet
According to the source of information in the measurement at fair value, the assessment techniques used by the
Bank are classified as follows:
Level 1 – Prices used are quoted in active markets for identical financial instruments. A financial instrument is
considered quoted in an active market if the quoted prices are readily and regularly available and these prices
represent real market transactions which occur regularly on an arm's length basis.
Level 2 – Other available information, excepted that from Level 1, is used, in which the prices are quoted in nonactive markets or for similar assets and liabilities, or other available information is used or that can be corroborated by
information observed in the market to support the assessment of the assets and liabilities.
Level 3 – Information that is not available in the market is used in the definition of the fair value. If the market for the
financial instrument is not active, the Bank establishes the fair value using the valuation technique which takes into
account internal data that is consistent with the economic methodologies accepted for pricing of financial instruments.
Assets and liabilities measured at fair value in the balance sheet
Balance at Mar 31,
2016
Assets
Level 1
Level 2
Level 3
117,873,815
67,698,983
50,174,832
--
Trading securities, measured by market value
8,105,030
6,500,847
1,604,183
--
3,567,711
--
3,567,711
--
106,201,074
61,198,136
45,002,938
--
(3,978,443)
--
(3,978,443)
--
(342,800)
--
(342,800)
--
(3,635,643)
--
(3,635,643)
--
Available-for-sale securities, measured by market value
Liabilities
Hedge funding
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1 quarter 2016
Balance at Dec 31,
2015
Assets
Level 1
Level 2
Level 3
113,420,484
62,764,151
50,656,333
--
7,860,341
6,546,397
1,313,944
--
3,362,032
--
3,362,032
--
102,198,111
56,217,754
45,980,357
--
(3,627,472)
--
(3,627,472)
--
(338,300)
--
(338,300)
--
(3,289,172)
--
(3,289,172)
--
Liabilities
Hedge funding
Balance at Mar 31,
2015
Assets
Liabilities
Hedge funding
Level 1
Level 2
Level 3
111,815,040
60,663,649
51,151,391
--
10,032,622
9,519,667
512,955
--
2,683,486
--
2,683,486
--
99,098,932
51,143,982
47,954,950
--
(4,637,195)
--
(4,637,195)
--
(335,676)
--
(335,676)
--
(4,301,519)
--
(4,301,519)
--
Sensitivity analysis (CVM Instruction No. 475/2008)
Banco do Brasil manages its risks in a dynamic process, identifying, assessing, monitoring, and controlling market
risk exposure arising on its positions. In this context, the Bank takes into account the risk limits defined by the
Strategic Committees and possible scenarios, to act in a timely manner to reverse any adverse results.
In accordance with CMN Resolution No. 3,464/2007 and with Bacen Circular No. 3,354/2007, to manage more
efficiently its transactions exposed to market risks, Banco do Brasil separates its transactions, including derivative
financial instruments, as follows:
1) Trading Book: consisting of own positions held for trading or as a hedge for its trading portfolio, for which there is
an intention of trading prior to their contractual expiry, subject to normal market conditions and that do not have a
non-trading clause.
2) Banking Book: consisting of transactions not classified in the Trading Book whose feature is held to maturity.
The sensitivity analysis for all the operations with assets and liabilities of the Balance Sheet, in compliance with CVM
Instruction No. 475/2008 does not adequately reflect the market risk management process or the accounting
practices adopted by the Bank.
In order to determine the sensitivity of the Bank's capital to the impacts of market volatility, simulations were
performed with three likely scenarios, two of which assume adverse movements for the Bank. The scenarios used
are set out below:
Scenario I: Likely situation, which reflects the perception of the Bank’s senior management, the scenario most likely
to occur for a 3-month horizon, considering macroeconomic factors and market information (BM&FBovespa, Anbima,
etc.). Assumptions: exchange rate real/dollar of R$ 3.70 maintaining the Selic rate in 14.25% per annum based on
market conditions observed at March 31, 2016.
Scenario II: Possible situation. Assumptions adopted: parallel shock of 25.00% in the risk variables, based on market
conditions observed on March 31, 2016 considering the worst losses by risk factor and, therefore, ignoring the
dynamics of correlation between macroeconomic factors.
Scenario III: Possible situation. Assumptions adopted: parallel shock of 50.00% in the risk variables, based on market
conditions observed on March 31, 2016 considering the worst losses by risk factor and thus ignoring the dynamics of
correlation between macroeconomic factors.
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The tables below summarize the results for the Trading Portfolio (Trading), composed of public and private securities,
derivative financial instruments and funds obtained through repurchase agreements:
Scenario I
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Prefixed rate
TMS and CDI indices
Risk of variation of prefixed interest
rates
Risk of variation of interest rate
indices
Dec 31, 2015
Income/
(expense)
Variation of
rates
Mar 31, 2015
Income/
(expense)
Maintenance
--
Increase
Variation of
rates
131
Increase
Income/
(expense)
(996)
Increase
(1)
Increase
(3)
Increase
(2)
IPCA index
Risk of variation of inflation indices
Maintenance
--
Increase
678
Increase
(4,847)
Foreign currency coupons
(US Dollars)
Risk of variation of foreign currency
indices
--
--
--
--
Increase
50
Exchange rates variation
Risk of variation of foreign
exchange rates
Increase
11,327
Increase
13,706
Decrease
(14,467)
Scenario II
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Income/
(expense)
rates
Decrease
indices
IPCA index
(US Dollars)
indices
exchange rates
Prefixed rate
TMS and CDI indices
Dec 31, 2015
Variation of
rates
Mar 31, 2015
Income/
(expense)
(7,386)
Decrease
Decrease
--
Increase
(3,192)
-Decrease
Variation of
rates
Income/
(expense)
(959)
Increase
(6,567)
Decrease
(1)
Increase
--
Increase
(1,140)
Increase
(14,823)
--
--
--
Decrease
(72)
(71,422)
Decrease
(92,657)
Decrease
(78,398)
Scenario III
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Dec 31, 2015
Income/
(expense)
Variation of
rates
Mar 31, 2015
Income/
(expense)
Variation of
rates
Income/
(expense)
rates
Decrease
(16,246)
Decrease
(2,866)
Increase
(13,393)
indices
Decrease
(1)
Decrease
(2)
Increase
--
IPCA index
Increase
(6,324)
Increase
(2,225)
Increase
(29,304)
(US Dollars)
indices
--
--
--
--
Decrease
(145)
exchange rates
Decrease
(142,845)
Decrease
(185,314)
Decrease
(156,796)
Prefixed rate
TMS and CDI indices
For transactions classified in the Banking Book, appreciations or depreciations resulting from changes in interest
rates practiced in the market do not imply in a significant financial or accounting impact on the Bank's income as a
result of the portfolio composition which is principally: loan operations (consumer credit, agribusiness, working capital,
etc.); retail funding (demand, time, and savings deposits), and securities, which are recorded in the books using the
contracted interest rates. In addition, it should be pointed out that these portfolios, except the securities available for
sale, have as their principal characteristic the intention to hold the respective operations to maturity and, hence they
are not subject to the effects of fluctuating interest rates, or the fact that such transactions are naturally related to
other instruments (natural hedge), hence minimizing the impacts of a stress scenario.
The tables below show a summary of the Trading Portfolio (Trading) and Non Trading (Banking) for the financial and
non-financial entities controlled by the bank:
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Scenario I
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Prefixed rate
Risk of variation of prefixed
interest rates
Dec 31, 2015
Income/
(expense)
Variation of
rates
Maintenance
--
TR
Increase
TBF
Increase
Mar 31, 2015
Income/
(expense)
Variation of
rates
Income/
(expense)
Increase
(3,478,743)
Increase
(1,867,480)
25,740
Increase
1,361,365
Increase
943,070
5,511
Decrease
(42)
Increase
1,647
Maintenance
--
Increase
(5,022)
Decrease
563
Increase
26,906
Increase
32,171
Increase
(4,046)
IGP-M
Maintenance
--
Increase
(142,841)
Increase
(30,961)
IGP-DI
Maintenance
--
Increase
(144)
Increase
(95)
Maintenance
--
Increase
(111,745)
Increase
(53,757)
Risk of variation of interest
rate indices
TJLP
TMS and CDI
INPC
Risk of variation of inflation
indices
IPCA
Maintenance
--
Increase
(601,591)
Increase
(320,158)
Foreign currency rates
currency indices
Decrease
(745,875)
Decrease
(1,113,147)
Increase
850,966
Exchange rate
exchange rates
Increase
(84,997)
Increase
(60,592)
Decrease
(113,851)
Scenario II
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Prefixed rate
interest rates
Dec 31, 2015
Income/
(expense)
Variation of
rates
Mar 31, 2015
Income/
(expense)
Variation of
rates
Income/
(expense)
Increase
(11,128,173)
Increase
(12,538,082)
Increase
(11,063,978)
TR
Decrease
(5,463,048)
Decrease
(5,590,381)
Decrease
(5,828,484)
TBF
Decrease
(3,323)
Decrease
(3,991)
Decrease
(3,733)
Decrease
(12,571)
Increase
(23,159)
Increase
(42,267)
Decrease
(23,939)
Increase
(13,651)
Increase
(20,826)
Increase
(151,525)
Increase
(230,618)
Increase
(89,184)
Increase
(272)
Increase
(236)
Increase
(225)
Increase
(184,263)
Increase
(177,195)
Increase
(154,313)
rate indices
TJLP
TMS and CDI
IGP-M
IGP-DI
INPC
indices
IPCA index
Increase
(1,046,403)
Increase
(1,069,492)
Increase
(975,769)
currency indices
Decrease
(876,179)
Decrease
(1,383,209)
Decrease
(1,007,398)
Exchange rate
exchange rates
Increase
(535,957)
Increase
(409,627)
Decrease
(616,951)
Scenario III
Risk Factor
Concept
Mar 31, 2016
Variation of
rates
Prefixed rate
interest rates
TR
TBF
TJLP
rate indices
TMS and CDI
IGP-M
IGP-DI
INPC
indices
IPCA index
Dec 31, 2015
Income/
(expense)
Variation of
rates
Mar 31, 2015
Income/
(expense)
Variation of
rates
Income/
(expense)
Increase
(21,183,605)
Increase
(23,646,296)
Increase
(21,085,653)
Decrease
(10,895,015)
Decrease
(11,394,648)
Decrease
(11,831,883)
Decrease
(6,684)
Decrease
(8,035)
Decrease
(7,504)
Decrease
(26,631)
Increase
(47,175)
Increase
(83,254)
Decrease
(47,852)
Increase
(27,300)
Increase
(41,627)
Increase
(297,220)
Increase
(439,872)
Increase
(180,076)
Increase
(542)
Increase
(472)
Increase
(449)
Increase
(361,107)
Increase
(346,949)
Increase
(302,546)
Increase
(1,970,249)
Increase
(2,008,991)
Increase
(1,837,493)
currency indices
Decrease
(1,801,197)
Decrease
(2,857,467)
Decrease
(2,076,584)
Exchange rate
exchange rates
Increase
(1,071,914)
Increase
(819,254)
Decrease
(1,233,901)
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1 quarter 2016
The scenarios used for preparing the framework for sensitivity analysis must use situations of deterioration of at least
25% and 50% of the variable risks, on an individualized basis, as determined by CVM Instruction No. 475/2008.
Thus, the combined analysis of the results does not reflect real expectations, for example, simultaneous shocks of
increase in the prefixed interest rate and reduction of the TR rate are not consistent from the macroeconomic
perspective.
The derivative transactions classified in the Banking Book, do not represent a relevant market risk to Banco do Brasil,
as these positions are usually originated with the following objectives:


Swapping the index of funding and lending transactions performed to meet customer needs;
Hedging market risk, the purpose and effectiveness of which are described in Note 8.d. Also in this
transaction, the interest and exchange rate variations have no effects on the Bank's income.
On March 31, 2016, the Banco do Brasil did not enter into any transaction classified as an exotic derivative, as
described in CVM Instruction No. 475/2008 - Attachment II.
b) Capital management
On June 30, 2011, aligned with Pillar II of Basel, the Brazilian regulator, Banco Central do Brasil (Bacen), issued the
Conselho Monetário Nacional (CMN) Resolution No. 3,988, which established the requirement for financial
institutions to implement a capital management framework. Applying CMN Resolution, Banco do Brasil defined as
part of its structure Accounting, Risk Management, Controlling and Finance Units. Furthermore, in line with the CMN
Resolution, the Board of Directors appointed the Controller as responsible for Capital Management within Banco
Central do Brasil.
Banco do Brasil has approaches that enable the identification and evaluation of significant risks incurred, including
those not covered by the Minimum Referential Equity Required (MRER) related to the Pillar I risks. Its policies and
strategies, as well as the capital plan, enable the maintenance of capital at a consistent level given the risks faced by
the institution. Stress tests are performed on a monthly basis and their impacts are assessed from a capital
perspective. Capital adequacy management reports are distributed to corporate units and to strategic committees,
which provide support to the decision making process of the Senior Management of the Bank.
The CMN Resolution No. 3,988/2011 also established the need for an Internal Capital Adequacy Assessment
Process (ICAAP), which was implemented by Banco do Brasil starting June 30, 2013. The responsibility for
coordinating ICAAP was assigned to the Bank’s Risk Management Unit. Meanwhile, the Internal Controls Unit, an
independent area segregated from the capital management structure, is responsible for the validation of ICAAP.
Finally, Internal Audit holds the institutional responsibility for annually evaluating the process of capital management.
To learn more about the capital management at Banco do Brasil, visit the website bb.com.br/ri.
Capital adequacy ratio
The Capital Adequacy Ratio was determined according to the criteria established by CMN Resolutions No.
4,192/2013 and No. 4,193/2013, which refer to the calculation of the Referential Equity (RE) and the Minimum
Referential Equity Required (MRER) in relation to Risk Weighted Assets (RWA).
On October 1, 2013, Brazil adopted a set of legislation that implemented the recommendations of the Basel
Committee on Banking Supervision regarding the capital structure of financial institutions, known as Basel III. The
new rules adopted addressed the following issues:
I - new methodology for calculating regulatory capital, which continues to be divided into Tier I and II. The Tier I
consists of the Common Equity Tier I Capital – CET1 (net of Regulatory Adjustments) and Additional Tier I Capital
(AT1);
II - new methodology for calculating the capital required to be maintained, adopting minimum requirements for
Referential Equity, Tier I and Common Equity Tier I Capital (CET1), and the introduction of the Additional CET1.
From January 1, 2016, the percentage of deduction of prudential adjustments listed below increased to 60%:
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1 quarter 2016








goodwill;
intangible assets constituted after October 1, 2013;
actuarial assets related to defined benefit pension funds net of deferred tax liabilities;
non-controlling interests;
investments, directly or indirectly, above than 10% of the capital of unconsolidated entities similar to
financial institutions, and insurance companies, reinsurance companies, capitalization companies and
open pension entities (significant investments);
tax credits resulting from temporary differences that rely on the generation of future taxable profits or
revenues for their realization;
tax credits resulting from tax loss of excess depreciation;
tax credits resulting from tax losses and negative base for social contribution on net income.
According to CMN Resolution No. 4,192/2013, these deductions will be gradually implemented at 20% per year, from
2014 to 2018, with the exception of deferred assets and funding instruments issued by institutions authorized to
operate by Banco Central do Brasil (Bacen) which have been fully deducted since October 2013.
On August 28, 2014, the Hybrid Instrument in the amount of R$ 8,100,000 thousand, was authorized by Banco
Central do Brasil to compose the Common Equity Tier 1 Capital of the Bank.
According to Bacen Resolution No. 4,192/2013 and No. 4,193/2013, from January 2015, the calculation of the
Regulatory Equity (RE) and the amount of Risk-Weighted Assets (RWA) should be elaborated based on Prudential
Conglomerate.
Mar 31, 2016
RE - Referential equity
Tier I
Common equity Tier 1 capital (CET1)
Shareholders' equity
Instrument qualifying as CET1
Regulatory adjustments
Additional Tier 1 capital (AT1)
Hybrid instruments authorized in accordance with CMN Resolution No.
4,192/2013
Hybrid instruments authorized in accordance with regulations preceding
the CMN Resolution No. º 4,192/2013 (1)
Tier II
Subordinated debt qualifying as capital
Subordinated debt authorized in accordance with CMN Resolution No.
4,192/2013 - financial bills
Subordinated debt authorized in accordance with regulations preceding
the CMN Resolution No. 4,192/2013
Funds obtained from the FCO (2)
Funds raised in financial bills and CD (3)
Deduction from Tier II
Funding instruments issued by financial institution
Risk Weighted Assets (RWA)
Credit risk (RWACPAD)
Market risk (RWAMPAD)
Operational risk (RWAOPAD)
Minimum referential equity requirements (4)
Margin on the minimum referential equity required
Tier I ratio (Tier I / RWA)
Common equity Tier 1 capital ratio (CET1 / RWA)
Capital adequacy ratio (RE / RWA)
128,443,802
89,977,516
65,336,289
73,623,327
8,100,000
(16,387,038)
24,641,227
Dec 31, 2015
Prudential
135,551,196
95,713,963
68,677,378
71,314,421
8,100,000
(10,737,043)
27,036,585
19,481,692
21,375,495
Mar 31, 2015
128,704,988
91,297,640
69,739,142
73,315,647
8,100,000
(11,676,505)
21,558,498
19,484,955
5,159,535
5,661,090
2,073,543
38,466,286
38,466,314
39,837,233
39,839,840
37,407,348
37,425,368
5,748,299
5,786,606
5,291,355
32,718,015
34,053,234
32,134,013
23,239,453
9,478,562
(28)
(28)
790,701,579
731,373,597
27,619,507
31,708,475
78,081,781
50,362,021
11.38%
8.26%
16.24%
22,994,912
11,058,322
(2,607)
(2,607)
840,508,940
785,773,084
18,346,766
36,389,090
92,455,983
43,095,213
11.39%
8.17%
16.13%
21,075,691
11,058,322
(18,020)
(18,020)
803,429,615
753,727,844
19,584,874
30,116,897
88,377,258
40,327,730
11.36%
8.68%
16.02%
(1) On March 31, 2016, based on the orientation of Bacen, it was considered the balance of the hybrid capital and debt instrument authorized by
Bacen to compose the Tier 1 Capital of the Referential Equity according CMN Resolution 3,444/2007 and do not meet the relevant entry criteria,
also related with the orientation established on article 28, sections I to X of CMN Resolution 4,192/2013.
(2) According to CMN Resolution No. 4,192/2013, balances of the FCO are eligible to compose the RE.
(3) On March 31, 2016, it was considered the balance of subordinated debt instruments that composed the RE in December 31, 2012, applying on it
the limit of 60%, as determined by CMN Resolution No. 4,192/2013.
(4) According to CMN Resolution No. 4,193/2013, corresponds to the application of the "F" factor to the amount of RWA, where "F" equals: 11%, from
October 1, 2013 to December 31, 2015; 9.875% from January 1, 2016 to December 31, 2016; 9.25%, from January 1, 2017 to December 31,
2017; 8.625% from January 1, 2018 to December 31, 2018 and 8%, from January 1, 2019.
105
st
1 quarter 2016
Regulatory adjustments deducted from CET1:
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Prudential
Tax credits resulting from temporary differences that rely on the generation
of future taxable profits or revenues for its realization (amount above 10%
(1)
threshold)
(5,537,669)
(3,425,235)
(619,575)
Significant investments and tax credits resulting from temporary differences
that rely on the generation of future taxable profits or revenues for their
(1) (2)
realization (amount exceeding the 15% threshold)
(4,598,474)
(2,846,808)
(358,945)
(3,382,398)
(2,346,233)
(2,048,234)
(1,563,486)
(1,075,845)
(1,343,455)
(606,484)
(561,777)
(499,011)
(528,618)
(402,531)
(434,493)
(87,205)
(62,040)
(72,129)
Actuarial assets related to defined benefit pension funds net of deferred tax
liabilities (1)
(68,020)
--
(2,470,316)
Deferred assets (4)
(14,684)
(16,574)
(25,686)
--
--
(3,804,661)
(16,387,038)
(10,737,043)
(11,676,505)
Intangible assets constituted after October 2013
Goodwill
(1)
(1) (3)
Tax credits resulting from tax losses and negative base for social
(1)
contribution on net income
(1)
Tax credits resulting from tax loss of excess depreciation
(1)
Funding instruments issued by financial institutions (2) (4)
Total
(1) Regulatory Adjustments subject to phase-in, according to the CMN Resolution No. 4,192/2013.
(2) According to Resolution CMN No. 4,442/2015, from november/2015, the methodology of deduction of the investment in Banco Votorantim S.A.
was modified. This way, on 03.31.2016, R$ 1,621,474 thousand were integrally deductec from the Referential Equity and R$ 2,413,919 thousand
were risk-weighted at 250%.
(3) The base value for calculating the goodwill is composed of: R$ 923,234 thousand in the investment line and R$ 1,682,576 thousand in the
intangible assets line. The value in Intangible assets refers to the goodwill paid for the acquisition of Banco Nossa Caixa, merged in
November/2009.
(4) Regulatory Adjustments that are being fully computed since October, 2013, in accordance with CMN Resolution No. 4,192/2013.
c) Fixed asset ratio
On March 31, 2016, the Fixed Asset Ratio for the Prudential Conglomerate, totalized 15.79% (16.70% on December
31, 2015 and 24.26% on March 31, 2015), and it was calculated in compliance with CMN Resolutions No. 4,192/2013
and No. 2,669/1999.
29 - STATEMENT OF COMPREHENSIVE INCOME
1st quarter/2016
Net income presented in the Statement of Income
1st quarter/2015
2,359,051
5,818,350
797,647
(812,268)
484,645
(827,015)
34,177
(1,451)
278,825
16,198
(67,021)
235,256
730,626
(577,012)
3,089,677
5,241,338
389,476
404,904
Other comprehensive income
Accumulated other comprehensive income (Note 23.i)
Banco do Brasil
Subsidiaries abroad
Income and social contribution taxes related to unrealized (gains) / losses (Note 23.i)
Other comprehensive income, net of income and social contribution taxes
Comprehensive income
Comprehensive income - Non-controlling interests
106
st
1 quarter 2016
30 - OTHER INFORMATION
a) Distribution of dividends and interest on own capital
During a meeting held on February 23, 2016, the Board of Directors approved the setting of the payout rate
equivalent to the minimum of 25% of net income for the year 2016, fulfilling the policy for payment of dividends yield
and/or interest on own capital on a quarterly basis, pursuant to article 45 of the Bank's By-Laws.
b) Investiment funds management
Funds managed by BB Gestão de Recursos - Distribuidora de Títulos e Valores Mobiliários S.A.:
Numbers of Funds/Portfolios (in Units)
Mar 31, 2016
Managed funds
Investment Funds
Managed Portfolios
Dec 31, 2015
Balance
Mar 31, 2015
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
631
611
614
644,831,703
603,232,935
594,841,810
620
603
606
629,542,152
587,725,096
582,167,916
11
8
8
15,289,551
15,507,839
12,673,894
c) Details in relation to overseas branches, subsidiaries and associates
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Assets
BB Group
Third parties
TOTAL ASSETS
84,490,065
90,325,257
75,069,990
109,792,092
133,050,500
124,533,316
194,282,157
223,375,757
199,603,306
Liabilities
BB Group
Third parties
Attributable to parent company
TOTAL LIABILITIES
23,412,604
25,795,399
22,944,441
160,047,020
185,321,366
164,913,179
10,822,533
12,258,992
11,745,686
9,941,530
11,252,692
10,659,473
881,003
1,006,300
1,086,213
194,282,157
223,375,757
199,603,306
1st quarter/2016
Net Income
Attributable to parent company
Non-controlling interest
1st quarter/2015
(627,383)
156,176
(695,001)
71,498
67,618
84,678
d) Consortium funds
Mar 31, 2016
Monthly forecast of purchase pool members receivable funds
Dec 31, 2015
Mar 31, 2015
204,529
202,928
197,739
Obligations of the groups due to contributions
8,557,887
8,321,348
8,178,158
Purchase pool members - assets to be delivered
7,632,250
7,440,232
7,348,793
(In Units)
Quantity of groups managed
Quantity of active purchase pool members
Quantity of assets deliverable to members (drawn or winning offer)
560
564
554
639,908
644,779
586,544
60,354
61,990
57,027
1st quarter/2016
Quantity of assets (in units) delivered in theperiod
26,911
1st quarter/2015
20,054
107
st
1 quarter 2016
e) Assignment of employees to outside agencies
Federal government assignments are regulated by Law 10,470/2002 and Decree No. 4,050/2001.
1st quarter/2016
Quantiy of
Employees
(1)
Ceded
1st quarter/2015
Quantiy of
Employees
(1)
Ceded
Cost in the
Period
Cost in the
Period
With costs for the Bank
Labor unions
218
8,985
224
8,812
Other organizations/entities
2
196
2
192
Subsidiaries and associates
2
331
2
316
Federal, state and municipal governments
278
--
288
--
External organizations (Cassi, Previ, Economus, Fusesc and PrevBep)
586
--
603
--
Without cost to the Bank
Employee entities
Subsidiaries and associates
Total
82
--
88
--
595
--
551
--
1,763
9,512
1,758
9,320
(1) Balance on the last day of the period.
f) Remuneration of employees and managers
Monthly wages paid to employees and Directors of the Banco do Brasil (in Reais):
Mar 31, 2016
Dec 31, 2015
Mar 31, 2015
Lowest salary
2,449.98
2,449.98
2,227.26
Highest salary
40,992.27
40,992.27
37,265.70
Average salary
6,763.52
6,869.98
6,357.71
President
65,196.08
65,196.08
62,388.59
Vice-President
58,355.29
58,355.29
55,842.38
Director
49,457.30
49,457.30
47,327.56
5,638.43
5,638.43
5,395.63
Management
Council members
Fiscal Council
Board of Directors
Audit Committee - Member
5,638.43
5,638.43
5,395.63
44,511.57
44,511.57
42,594.80
g) Insurance policy of assets
Despite the reduced level of risk to which its assets are subject, the Bank contracts insurance cover for its assets in
amounts considered to be sufficient to cover any losses.
Insurance contracted by the Bank in force on March 31, 2016
Covered Risks
Property insurance for the relevant fixed assets
Life insurance and collective personal accident insurance for the Executive Board (1)
Total
Amounts Covered
Value of the Premium
1,123,599
6,341
885
3
1,124,484
6,344
(1) Refers to individual coverage for members of the Executive Board.
108
st
1 quarter 2016
h) Law 13,169/2015 (Provisional Measure No. 675/2015 converted into law)
The provisional measure 675/2015 was converted into the Law 13,169 on October 6, 2015 and increased the rate of
the Social Contribution on Net Income (CSLL) applicable to financial institutions, legal entities of private insurance
and capitalization from 15% to 20% for the period from September 1, 2015 to December 31, 2018. The law also
establishes the return of the social contribution rate to 15% for the periods beginning on or after January 1, 2019.
i) Provisional Measure No. 694/2015
The provisional measure 694/2015, from September 30, 2015, brings a new limit for the payment of interest on own
capital (JCP), and the value of the variation of TJLP or 5% per year, whichever is less, should be considered in the
calculation. In addition, the percentage of income tax withholding at the time of payment or credit of JCP to the
beneficiary was raised to 18%. The Provisional Measure devices that deals with this issue take effect for the periods
beginning on or after January 1, 2017.
j) Credit intelligence bureau
The Bank has entered, collectively, into a non-binding Memorandum of Understanding with Banco Bradesco S.A.,
Banco Santander (Brasil) S.A., Caixa Econômica Federal and Itaú Unibanco S.A., the parties, in order to create a
credit intelligence bureau (CIB).
CIB will develop a data base aiming to aggregate, reconcile and treat registration data and credit information of
individuals and companies that expressly authorize their inclusion in such data base as required by applicable law.
This action will increase the exchange of information of such individuals and companies, enabling higher levels of
efficiency and improvement on credit management activities. This initiative shall facilitate, for participants of the
Brazilian Banking Industry and other companies on the credit market, the granting of credit lines at long and medium
terms.
CIB will be structured as a corporation and the parties, each of them holding a 20% equity ownership, will share its
control. The board of directors of CIB shall be formed by members appointed by the Parties and its executives will be
exclusively dedicated to the business, preserving the independent nature of CIB’s management.
The technical implementation of CIB shall be performed together with LexisNexis® Risk Solutions FL Inc., technical
partner selected to develop and implement the technical and analytical platform of CIB, by means of a service
rendering agreement.
CIB’s incorporation is subject to the execution of definitive documents among the parties, as well as the compliance
with certain conditions precedent, including the approval by applicable regulatory authorities. Its creation reaffirms the
banks’ confidence in the future of Brazil and of the credit market, and allows a stronger and more sustainable market.
109
Banco do Brasil S.A.
Report on the review of interim
consolidated financial information
Quarter ended as at March 31,
2016
(a free translation of the original
report in Portuguese containing the
Interim Financial Statements
prepared by management in
accordance with the accounting
practices adopted in Brazil applicable
to institutions authorized to operate
by the Central Bank of Brazil)
KPMG Auditores Independentes
Abril de 2016
KPDS 150207
SBS - Qd. 02 - Bl. Q - Lote 03 - Salas 708 a 711
Edifício João Carlos Saad
70070-120 - Brasília/DF - Brasil
Caixa Postal 8587 - CEP 70312-970 - Brasília/DF - Brasil
Telefone 55 (61) 2104-2400, Fax 55 (61) 2104-2406
www.kpmg.com.br
Report on the review of interim consolidated
financial information
To
The Board of Directors, Shareholders and Management of
Banco do Brasil S.A.
Brasília – DF
Introduction
We have reviewed the consolidated statement of financial position of Banco do Brasil
S.A. (“Banco do Brasil”), as at March 31, 2016 and the related consolidated
statements of income, changes in shareholders' equity and cash flows for the quarter
then ended, as well as the summary of significant accounting policies and other
explanatory notes (“the interim consolidated financial information”).
Management is responsible for the preparation and fair presentation of this interim
consolidated financial information in accordance with the accounting practices
adopted in Brazil applicable to institutions authorized to operate by the Central Bank of
Brazil. Our responsibility is to express a conclusion on this interim consolidated
financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on
Review (NBC TR 2410 – Revisão de Informações Intermediárias Executada pelo
Auditor da Entidade and ISRE 2410 – Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, respectively). A review of interim
financial information consists of making inquiries, primarily to persons responsible for
financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with
auditing standards and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an audit.
Therefore, we do not express an audit opinion.
2
Conclusion
Based on our review, we are not aware of any facts that would lead us to believe that
the interim consolidated financial information mentioned above were not prepared, in
all material respects, in accordance with the accounting practices adopted in Brazil
applicable to institutions authorized to operate by the Central Bank of Brazil..
Other matter
Interim statement of value added
We also reviewed the consolidated statement of value added (DVA) for the quarter
ended as at March 31, 2016, which was prepared under Banco do Brasil’s
Management responsability, and which presentation is required under the rules
issued by Brazilian Securities and Exchange Commission (CVM), and is considered a
supplementary information in accordance with the accounting practices adopted in
Brazil applicable to institutions authorized to operate by the Central Bank of Brazil that
do not require the disclosure of DVA. This statement was subject to the same review
procedures described above and based on our review, we are not aware of any facts
that would lead us to believe it was not prepared, in all material respects, consistently
with the interim consolidated financial information taken as a whole.
Brasília, May 11, 2016
CRC SP-014428/O-6 F-DF
Original report in Portuguese signed by
Marcelo Faria Pereira
Accountant CRC RJ-077911/O-2
3
Members of Management
st
1 quarter 2016
MEMBERS OF MANAGEMENT
PRESIDENT
Alexandre Corrêa Abreu
VICE-PRESIDENTS
Antonio Mauricio Maurano
Geraldo Afonso Dezena da Silva
João da Silva Maia
José Mauricio Pereira Coelho
Julio Cezar Alves de Oliveira
Osmar Fernandes Dias
Paulo Roberto Lopes Ricci
Raul Francisco Moreira
Walter Malieni Junior
DIRECTORS
Adriano Meira Ricci
Antonio Pedro da Silva Machado
Carlos Alberto Araujo Netto
Carlos Célio de Andrade Santos
Carlos Renato Bonetti
Edmar José Casalatina
Edson Rogério da Costa
Eduardo Cesar Pasa
Gustavo de Faria Barros
Hamilton Rodrigues da Silva
Ilton Luís Schwaab
João Pinto Rabelo Júnior
José Caetano de Andrade Minchillo
José Carlos Reis da Silva
Leonardo Silva de Loyola Reis
Luís Aniceto Silva Cavicchioli
Luiz Cláudio Ligabue
Luiz Henrique Guimarães de Freitas
Márcio Luiz Moral
Marco Antonio Ascoli Mastroeni
Nilson Martiniano Moreira
Otaviano Amantéa de Souza Campos
Rogério Magno Panca
Sandro Kohler Marcondes
Simão Luiz Kovalski
Tarcísio Hübner
Wilsa Figueiredo
BOARD OF DIRECTORS
Fabrício da Soller
Alexandre Corrêa Abreu
Beny Parnes
Juliana Públio Donato de Oliveira
Luiz Serafim Spinola Santos
Manoel Carlos de Castro Pires
Miguel Ragone de Mattos
Francisco Gaetani
FISCAL COUNCIL
Aldo César Martins Braido
Giorgio Bampi
Marcos Machado Guimarães
Mauricio Graccho de Severiano Cardoso
Felipe Palmeira Bardella
AUDIT COMMITEE
Antonio Carlos Correia
Egidio Otmar Ames
Elvio Lima Gaspar
Luiz Serafim Spinola Santos
ACCOUNTING DEPT.
Eduardo Cesar Pasa
General Accountant
Accountant CRC-DF 017601/O-5
CPF 541.035.920-87
Daniel André Stieler
Accountant CRC-DF 013931/O-2
CPF 391.145.110-53

Banco do Brasil - Financial Statements

Transcription

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