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About this Report


In the relationship with its stakeholders, Banco do Brasil holds ethics and transparency in high esteem, providing quality information in a timely manner. Its businesses and practices follow principles which combine socio-environmental responsibility with profitability, ensuring an approach which is committed to the future of the planet.

To consolidate this relationship of transparency, for the fifth year running the Bank is continuing its strategy of reporting its financial statements to society following the directives of the Global Reporting Initiative (GRI – G3). In maintaining a single standard for the presentation of information, GRI methodology, used internationally in the production of corporate reports, facilitates comparison of economic, social and environmental performances over time, and also between particular companies. Banco do Brasil applies the indicators of the Supplement to the Financial Sector, with a declaration of Level A+. In addition to this, it uses the criteria of the Brazilian Association of Listed Companies (Abrasca), indicators which are widely recognised in the Brazilian capital markets.

Believing that the concept of sustainability should permeate throughout all the processes of the company, BB chooses to publish one single report. In the Banco do Brasil Annual Report the socio-environmental issue is combined with the usual accounting statements and economic results, statements of this type having previously published exclusively from a financial perspective.

Drawing up of the Report

3.2 | 3.3 | 4.17

This Annual Report shows the main activities and initiatives which Banco do Brasil developed in 2010, and is the result of a process which involves the engagement of various areas of the Bank.

To draw up the content, the principal observations take into account the results from Stakeholders Panel II, held by BB in November 2010. The Panel brought together employees, shareholders, clients, suppliers, specialists, representatives of civil society and governmental bodies, and had the object of divulging the policies and initiatives of the Bank, engaging its public audiences to the Company practices , as well as evaluating the report of the previous year and collating the various considerations for the drawing up of this year's report.

Besides these initiatives, BB carried out consultations with its vice-presidents through interviews, enabling it to identify the importance and relevance of the themes covered here.

In addition to this, workshops were held on the use of GRI indicators, as a way of raising awareness and training the various areas that supply the perquisite information.

In its Annual Report 2010, BB again emphasises its positioning of making use of new technology to realise the potential of its sustainability initiatives, publishing an electronic version of the document for the third year running. In addition to this type of media, BB has also introduced an innovation by making the content of its Annual Report also available on card drive, Ipad, Iphone and mobile-phones, channels which minimise the consumption of resources and provide tools for easy navigation.

Another initiative by the Bank was the decision to publish its magazine "Conexão BB" (BB Connection) meeting the wishes of its stakeholders for a compact and easily understandable publication. The content of this magazine will be updated quarterly and will be available on the website of the Investor Relations Unit in PDF format.

The Annual Report 2010 maintains all the tools and resources already seen in the 2009 version, introducing an innovation to provide more flexible navigation. Also the PDF version has been improved, which will show all the content available in an electronic version. Readers continue to have the option of personalising their Report, selecting only the information which they judge to be the most important.

The Report is divided into nine chapters. Links are maintained between them, permitting easier navigation. There are also adjustable audio and video options right at the beginning of the content summary, in addition to there being the possibility of adjusting letter font size in accordance with the preference and needs of each reader.

Influences behind the Content

The drawing up of this report was based on the Stakeholders Panel and interviews carried out with BB's vice-presidents. As a result of these initiatives, the Bank has structured and incorporated the demands resulting from the Stakeholders Panel and those of the senior executives of BB, as shown in the tables below:

Stakeholders Panel

Stakeholders’ Demands Implementation Chapter
Need for revision of the communication media. Lack of reading fluidity in the pen drive content. The language and the format adopted in the 2010 Annual Report have been totally revised to meet the demands of the various public audiences with which BB relates. In this version, BB publishes additional versions of its report using more simple/accessible language so that it is able to reach out to all its stakeholders (magazine version – Conexão BB, IPad version, version for mobiles). The online version has also undergone a major revision, so that navigation is now more intuitive. Throughout the report
Revision of the Report’s structure in such a way that socio-responsibility is treated in a transverse manner throughout the text. The structure of the 2010 Annual Report  has been totally revised so that the theme of socio-environmental responsibility is no longer concentrated in one single chapter (in the 2009 Annual Report, with the name “Socio-environmental Performance”) and is now given prominence in all chapters. In this way, BB has striven to ensure that its Annual Report is increasingly integrated and effective with corporate sustainability being demonstrated as a practice which is effectively part of the Company’s management. Throughout the report
More detailed analysis of quantitative information. Throughout the report explanations can be found of the deviations observed. The majority of the indicators have a history of at least three years, with a view to allowing comparison of the data presented. Throughout the report
More content on strategic continuity process.  The report contains BB’s principal initiatives carried out in 2010, in alignment with its strategy and declaring its directives for the future cycle. Strategic Management
Potential for dissemination of micro-credit in the Brazilian context. DRS identifies opportunities for micro-credit operations, through BB Microcrédito DRS. BB also has specific lines outside the scope of DRS. Our Businesses
Qualified data on the employees who work at the Bank. Under “employees”, in the Connection chapter, is shown a variety of information referring to BB’s workforce, such as profile, training and qualification, and awards received. Connection
Training of employees in socio-environmental initiatives for business proposals. BB has various courses available for its employees, such as "DRS – Fundamental Concepts and Methodologies", "Pronaf Agricultural Farming" and "APL – Local Production Arrangements". Connection
Information about share performance and the explanation of bonuses issued. BB provides information with regard to its share performance, dividend distribution, bonuses, and ADR performance. More details can be found in Chapter 9. Our Businesses
Details of the bonus paid to employees and executives of  BB. The remuneration of the employees of BB is represented in aggregate form for the year 2010. For information with respect to executive remuneration, please refer to Reference Form. Connection
Analysis of environmental risks in the granting of credit. The report represents the criteria for the granting of credit, particularly those with a socio-environmental angle. In addition to this, it shows the main principles to which the bank is a signatory, such as: Green Protocol, Ecuador Principles, among others. Corporate Controls
Details of risk management and internal controls. In the chapter on Corporate Controls, details are provided on the management of risk and internal controls of BB. Corporate Controls
internationalization strategy of the Bank. An important strategic move for BB, internationalization is aligned with the Bank’s strategy and is shown in greater detail in the chapter entitled Strategic Moves.  In this chapter are shown the principal partnerships and operations of BB in other countries. Strategic Management
Endo-marketing. The area of internal communication and endo-marketing of BB is focused on the dissemination of information within the company, with credibility and in a timely manner, seeking to establish a frank and open dialogue with the workforce. Connection
Initiatives for the engagement of stakeholders and results achieved. From this year, BB is publishing the main recommendations of its stakeholder panel, so that the publishing of accounts takes place in a more transparent manner, attending to the wishes and desires of its public audiences. Corporate Governance
More detailed presentation of Corporate Governance. The report has a specific chapter on BB’s Corporate Governance, with a description of the structure, process and instruments, in addition to a timeline.  In the Governance chapter, BB emphasises that the continuity of its businesses is based on a series of standards and regulations which safeguard the management from conflicts of interest and political interference. Corporate Governance
To improve the report so as to better meet the expectations of suppliers, portraying the relationship between these and  Banco do Brasil. Included in the chapter which shows the interaction between BB and it's stakeholders. Connection
Work on information with regard to socio-environmental initiatives and connecting them to their various products and services, including the results obtained. This year, BB shows the participation of its products with a socio-environmental emphasis in the total result generated. In addition to this, the strategies and management tools are reported on that include sustainability as a directive. Our Businesses
Expands the report to include the challenges of institution. The report has been improved with regard to sustainability challenges and the targets have been published for fullfilment by actions set out in Agenda 21. These actions contemplate the desires of the Bank’s stakeholders. Strategic Management
Presentation of sustainability targets. The sustainability challenges which in last year’s annual report were published in the chapter on socio-environmental performance, this year are published in the chapter on Strategic Management, together with the strategic objectives of the company. The sustainability targets presented must be fulfilled by the end of December 2011, and have been taken from the corporate sustainability action plan – Agenda 21 BB – for the period 2011-2013. Strategic Management
Confirms the positioning and vision of the future of BB, showing that sustainability is part of management and had an influence on the definition of objectives. An explanation on long-term vision and objectives is lacking. More details on this theme can be found in chapter 5, particularly with regard to Agenda 21 and the definition of actions for the period 2011-2013. Corporate Governance

Interviews with Vice-presidents

Demands Implementation Chapter
Public share offering. The report covers the theme and shows on the principal results of this event that took place in 2010, as well as the profile of the investors, the volume of trading, and the share free-float. Connection
Funds raised abroad. An item has been included specially dedicated to BB’s raising of funds, with a detailed coverage of this theme. Our Businesses
BB’s internationalization strategy. An important strategic move for BB, internationalization is shown in more detail in the chapter “Strategic Moves”. The main partnerships are covered in this chapter, as well as BB’s operations in other countries. Strategic Management
BB’s risk management. A chapter has been created, entitled “Corporate Controls” which goes into detail about risk management, internal controls and security management. Corporate Controls
Prospects for increasing demand for investment in the public sector. Description of the prospects for the major events which will be taking place in Brazil and the strategic role of BB in this regard. Connection
Restructuring of insurance segment. The Report describes the context of this segment, the reasons which led to its restructuring, and the results of this segment in 2010. Strategic Management
Strategic partnerships. The year 2010 was characterised by various strategic partnerships entered into, which are described in this Report, together with the outlook for these partnerships. Strategic Management
Sustainability treated in a transverse manner. The Report has been drawn up in such a way as to be able to identify the theme of sustainability throughout the text, from governance to products and services. Throughout the Report
New IT Governance model. The report describes BB’s IT Governance model, which has the aim of improving this aspect of the Bank on a permanent basis. Corporate Controls
Information on the process of the incorporation of Banco Nossa Caixa and the strategic partnership with Banco Votorantim. Figures resulting from the incorporation of BNC are shown, as well as the synergies extracted in the operations in São Paulo, integration of the organizational cultures and the advances made in the area of technology. The results are also covered arising from the partnership with Banco Votorantim. Investments
New installations at the data center. The Report provides information on the installations at the new data centre to meet BB’s technological demands. Investments
Staff management. Under the item “Employees” in the chapter entitled “Connection”, is shown various information referring to BB’s workforce, such as profile, training and qualification.  In addition to awards received. Connection


2.9 | 3.1 | 3.6 | 3.7 | 3.8 | 3.9 | 3.10 | 3.11

The information contained in this report covers the period from January 1st to December 31st , 2010, and reports on the operations of the Banco do Brasil Conglomerate, considering the equity stakes that the Institution holds in its subsidiaries and affiliates.

The accounting information contained in this report meets the guidelines for listed companies contained in Law No. 6.404/76, as well as its amendments, in addition to the norms and instructions of the Brazilian Securities and Exchange Commission (CVM) and Brazilian Central Bank, as well as being in compliance with the pronouncements of the Accounting Pronouncements Committee (CPC).

The financial information and accounting statements shown in this Annual Report covers the branches and subsidiaries in Brazil and abroad, as well as direct and indirect subsidiaries and affiliates, as shown below:

Banking Segment   Activity % Equity Stake Held
12.31.2010 12.31.2009
BB Leasing S.A. – Arrendamento Mercantil (1) (5) Leasing 100% 100%
Banco do Brasil – AG. Viena (1) (5) Banking 100% 100%
BB Leasing Company Ltd. (1) (5) Leasing 100% 100%
BB Securities LLC. (1) (5) Asset Management 100% 100%
BB Securities Ltd. (1) (5) Asset Management 100% 100%
Brasilian American Merchant Bank (1) (5) Banking 100% 100%
BB USA Holding Company, Inc (1) (5) Holding Company 100% 100%
Besc Distribuidora de Títulos e Valores Mobiliários S.A. (1) (5) Asset Management 99.62% 99.62%
Banco Votorantim S.A. (3) (5) Multiple Bank 50% 50%
BB Banco Popular do Brasil S.A. (2)   Banking -- 100%
Besc Financeira S.A. – Crédito, Financiamento e Investimentos (2)   Credit and Financing -- 99.58%
Besc Leasing S.A. – Arrendamento Mercantil (2)   Leasing -- 99%
Investment Segment          
BB Banco de Investimento S.A. (1) (5) Investment Bank 100% 100%
Kepler Weber S.A. (3) (6) Industry 17.57% 17.67%
Companhia Brasileira de Securitização – Cibrasec (4) (6) Acquisition of Credits 12.12% 9.09%
Neoenergia S.A. (3) (5) Energy 8.8% 11.99%
Asset Management Segment          
BB Gestão de Recursos – Distribuidora de Títulos e Valores Mobiliários S.A. (1) (5) Asset Management 100% 100%
Segment for Insurance, Pensions and Saving Bonds          
BB Seguros Participações S.A. (1) (5) Insurance Company 100% 100%
BB Aliança Participações S.A. (1) (5) Insurance Company 100% 100%
BB Aliança Rev Participações S.A. (1) (5)   100% --
BB Corretora de Seguros e Administradora de Bens S.A. (1) (5) Broker 100% 100%
Cia. de Seguros Aliança do Brasil (4) (5) Insurance Company 100% 100%
Nossa Caixa Capitalização S.A. (1) (5) Saving Bonds 100% 100%
Brasilveículos Companhia de Seguros (4) (5) Insurance Company 100% 70%
Brasilprev Seguros e Previdência S.A. (4) (5) Private Pensions 74.99% 49.99%
Brasilcap Capitalização S.A. (4) (5) Saving Bonds 49.99% 49.99%
Seguradora Brasileira de Crédito à Exportação – SBCE (4) (5) Insurance Company 12.09% 12.09%
Brasilsaúde Companhia de Seguros     Health -- 49.92%
Aliança do Brasil Seguros S.A. (1) (5) Insurance Company 100% --
Payment means segment          
BB Administradora de Cartões de Crédito S.A. (1) (5) Service Provider 100% 100%
Nossa Caixa S.A. – Administradora de Cartões de Crédito (1) (5) Service Provider 100% 100%
Cia. Brasileira de Soluções e Serviços CBSS – Visa Vale (4) (6) Service Provider 45% 40.35%
Cielo S.A. (3) (5) Service Provider 28.74% 31.63%
Tecnologia Bancária S.A. – Tecban (4) (6) Service Provider 13.53% 8.96%
Other Segments          
Ativos S.A. (1) (5) Acquisition of Credits 100% 100%
BB Administradora de Consórcios S.A. (1) (5) Consortia 100% 100%
BB Tur Viagens e Turismo Ltda. (1) (6) Tourism 100% 100%
BB Money Transfers, Inc (1) (5) Service Provider 100% 100%
Cobra Tecnologia S.A. (1) (6) Information Technology 99.99% 99.39%
BV Participações S.A. (3) (5) Holding Company 50% 50%

(1) Subsidiaries.
(2) Subsidiaries, incorporated in the year 2010 (Explanatory note 2a to the 4Q10 financial statements).
(3) Combined control, included proportionally in the consolidated figures.
(4) Affiliates, included proportionally in the consolidated figures, in accordance with Central Bank directives.
(5) Financial statements for consolidation referring to December 2010.
(6) Financial statements for consolidation referring to November 2010.

Also included in the consolidated figures are the financial investment funds: BV Financeira FIDC I, BV Financeira FIDC II, BV Financeira FIDC III, Sedna Referenciado DI Investment Fund and Votorantim G&K Shareholdings Investment Fund and a special purpose company abroad, the Dollar Diversified Payment Rights Finance Company, which the Bank controls either directly or indirectly.

We point out that the socio-environmental information shown in this report does not cover the following companies:

• Aliança do Brasil Seguros S.A.
• Cobra Tecnologia S.A.
• BB Tur Viagens e Turismo Ltda.
• Seguradora Brasileira de Crédito à Exportação – SBCE
• Kepler Weber S.A.
• Neoenergia S.A.
• CIELO S.A. (Visanet)
• Companhia Brasileira de Securitização – Cibrasec
• Cia. Brasileira de Soluções e Serviços CBSS – Visavale
• Tecnologia Bancária – Tecban
• BB Aliança Participações
• BB Seguros Participações
• Brasilcap Capitalizações S.A.
• Brasilprev Seguros e Previdência S.A.
• Brasilveiculos Companhia de Seguros
• Banco do Brasil – AG. Viena
• Banco Votorantim

Reliability of Information and External Verification

As a result of a process of management and performance monitoring, the information contained in the 2010 Annual Report is measured and validated by the internal management areas of the Bank. The process uses systems for control, assessment and storage of management data.

The financial statements and information of a socio-environmental nature contained in this report were respectively audited and attested to by KPMG Auditores Independentes. External verification of the information of a socio-environmental nature has been carried out since 2008. More information with regard to external verification can be found in the Annexes to this report.

For more information, as well as queries and suggestions with regard to this Report, please contact:


Investor Relations Unit

Sustainable Development Unit