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Annual Report 2014

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The international scenario remained complicated in 2014, with different dynamics among the major economies. Signs of growth in the USA were in stark contrast to the difficulties facing several European countries that are experiencing low economic dynamism and deflation risk. In Asia, the slowdown in the Chinese economy, albeit a smooth landing, is challenging the policies of easing, while adversely affecting the prices of the major commodities.

Gráfico Crescimento do PIB do Ano (%) Gráfico Taxa Média de Desemprego % da População Economicamente Ativa
Gráfico Inadiplencia Total (+90 dias)

Even amidst the complexities of the international scenario, the Brazilian economy returned to modest growth in the second half of 2014, thanks to the favorable conditions of the labor market, where jobs continued to be created, the formalization process continued and salaries rose in real terms. The credit markets grew at a rate compatible with economic activity on the back of a sound fi nancial system. Faced with a depreciating currency and price adjustments, the Central Bank resumed the cycle of increases in the benchmark interest rate.

The main challenge for the financial industry was to adapt to this context of modest growth. At BB this movement was evidenced on several work fronts: revenue diversification; allocation of priority to growth in lower risk loan facilities, such as property lending and payroll loans; enhancement of risk measurement models to keep the lid on delinquencies; and intensive investment in digital technologies and channel in the search for gains in operational efficiency.

The performance of the BB in 2014 and the estimates for the major indicators in 2015 are shown in the following table. Comparing actual with projections for 2014, one can see deviations only in funding, due to the portfolio management strategy, and in loans, evidencing the lower demand against the backdrop of the Brazilian economic scenario during the period.

Gráfico Crescimento do PIB do Ano (%) Gráfico Taxa Média de Desemprego % da População Economicamente Ativa
GRI G4-13

Agribusiness | Historic record of disbursements under the crop 2013/2014 Plan. Know more

Cards | Launch of Stelo S.A. and a strategic partnership of BB Elo Cartões with Cielo. Know more

Trade Finance | Inauguration of the BB Branch in Shanghai, the first by a Latin American bank in China. Know more

Business Loans | Authorization for Movera, a company specializing in micro finance, to operate. Know more

Capital Markets and Treasury | US$2,5 billion perpetual subordinated bond issue, one of the largest of its kind. Know more


(1) Prepared from assumptions shown in the Management Discussion and Analysis (MD&A) Report 4Q14, available at
(2) The calculation for Adjusted ROE for 2014 takes into account the estimated shareholders’ liquidity free of the effects of the restatement of actuarial assets and liabilities arising from the Deliberation of the Brazilian Securities Commission (CVM) 695; minority interests in subsidiaries; and R$8,1 billion referring to reclassification of instruments eligible for core capital, from liabilities to shareholders’ equity.
(3) Includes total deposits, Agribusiness Letters of Credit (LCA), Mortgage Bonds (LCI) and private securities repo transactions.
(4) Includes the Classified Loan Portfolio Broad in Brazil, private securities and guarantees given.
(5) Expenses with ALLL in the past 12 months/Average Classified Loan Portfolio for the same period.
Indicators (%) Estimate
for 2014
for 2015(1)
Adjusted ROE(2) 14-17 15.1 14-17
Net Interest Income 5-9 8.8 9-13
Commercial Funding(3) 12-16 4.5 5-9
  Loan Portfolio Broad Definition – Brazil(4) 12-16 10.0 7-11
  Individuals 8-12 6.8 6-10
  Companies 12-16 9.9 7-11
  Agribusiness 16-20 13.9 10-14
Allowance for Loan and Lease Losses (ALLL)(5) 2.7-3.1 2.9 2.7-3.1
Fee Income 6-9 7.6 7-10
Administrative Expenses 5-8 7.1 5-8

Consolidated Results

Adjusted Net Income and Return on Shareholders’ Equity (ROE) | Banco do Brasil produced adjusted net income of R$11.3 billion, 9.6% up on the previous year, and an adjusted ROE of 15.1%. This result reflected the strategy of operating in lower risk facilities, control of expenses and a change in the funding mix to reduce costs.

Income Statement with Reallocations – Main Lines (R$ millions) 2012 2013 2014 14/13
Variance (%)
Financial Intermediation Income 104,525 113,636 144,986 27.6
Loan Operations + Leasing 69,835 74,593 91,110 22.1
Securities 27,982 29,970 44,010 46.8
Financial Intermediation Expenses (58,796) (67,584) (94,888) 40.4
Net Interest Income 45,729 46,052 50,098 8.8
Allowance for Loan and Lease Losses (14,651) (15,584) (18,531) 18.9
Net Financial Margin 31,078 30,468 31,567 3.6
Fee Income 21,071 23,301 25,070 7.6
Income from Insurance, Pension Plan and Savings Bonds 2,349 3,230 4,427 37.1
Contribution Margin 50,315 52,530 56,177 6.9
  Administrative Expenses (28,194) (30,149) (32,290) 7.1
  Personnel Expenses (15,777) (17,051) (18,445) 8.2
  Other Administrative Expenses (12,417) (13,098) (13,845) 5.7
Commercial Income 21,854 22,020 23,740 6.6
Legal Claims (813) (459) (944) 105.8
Labor Lawsuits (726) (1,148) (833) (27.4)
Other Components of the Result (2,539) (3,869) (3,310) (14.5)
Income before Taxes 17,883 16,712 18,583 11.2
Income and Social Contribution Taxes (4,455) (3,954) (4,187) 5.9
Statutory Profit Sharing (1,745) (1,565) (1,644) 5.0
Adjusted Net Income 11,528 10,353 11,343 9.6
(+) One-Off Items 678 5,405 (97) -
Net Income 12,205 15,758 11,246 (28.6)

Remuneração aos Acionistas

Shareholder remuneration | The Bank’s earnings per share were R$4.04 in 2014. Maintaining the practice of paying out 40% of net income, R$4.5 billion was allocated to shareholder remuneration for the year, R$3.7 billion as Interest on Own Capital (JCP) and R$851 million as dividends.

Balance Sheet Items| The assets of Banco do Brasil exceeded R$1.4 trillion for the year, growth of 10.2% over 2013. Loan transactions, securities and short-term interbank investments accounted for 79.8% of the total. In the case of Liabilities, worthy of note were commercial funding, including total deposits, Agribusiness Letters of Credit (LCA), Mortgage Bonds (LCI) and repo transactions involving private securities, which accounted for 44.1% of the total.

BB continued to be the largest financial institution in Latin America in 2014, with R$1.4 trillion in assets

(1) Includes Private Securities and guarantees provide.
Main Balance Sheet Items (R$ millions) 2012 2013 2014 14/13
Variance (%)
Total Assets 1,149,308 1,303,915 1,437,486 10.2
Loan Portfolio Broad Definition(1) 580,799 693,104 760,872 9.8
  Loan Portfolio Broad Definition – Brazil 530,556 635,282 698,728 10.0
Securities 184,357 201,939 222,643 10.3
Interbank Investments 219,323 231,132 304,237 31.6
Commercial Funding 515,714 607,215 634,627 4.5
  Total Deposits 472,085 491,013 468,362 (4.6)
  Demand Deposits 74,760 75,818 74,210 (2.1)
  Savings Deposits 117,744 140,728 148,699 5.7
  Interbank deposits 16,569 27,155 30,969 14.0
  Time deposits 263,013 247,311 214,484 (13.3)
    Judicial Deposits 86,346 101,769 115,010 13.0
Agribusiness Letters of Credit (LCA) + Mortgage Bonds (LCI) 34,075 82,640 118,110 42.9
Repurchase Agreement with Private Securities 9,554 33,562 48,155 43.5
Money Market Borrowing 225,787 239,465 306,046 27.8
Shareholders' Equity 61,499 72,225 80,613 11.6
Composição da Carteira de Crédito Ampliada
    (1) Includes private securities and guarantees provided

Loan Portfolio and Delinquency | The Loan Portfolio – Broad Definition was R$760.9 billion by the end of 2014, growth of 9.8% in relation to 2013. The highlight was the growth in mortgages, investment and working capital transactions, as well as loans to agribusiness. In line with the strategy of quality growth of the loan portfolio, the average risk of the classified portfolio and delinquencies remain under control and below those of the Brazilian Banking Industry (SFN).

Participação de Mercado BB
INAD+90 da Carteira de Crédito Classificada

Net Interest Income (NII) | MFB was R$50.1 billion in 2014, growth of 8.8% in the year-on-year comparison. Among the factors in the performance of this indicator, notable was the higher volume and turnover of the loan portfolio, diversification of the funding mix, which reduced funding expenses and the 20.5% increase in treasury income, reflecting the higher average benchmark (Selic) interest rate on the income from securities during the period.

(1) Includes senior debt instruments, subordinated debt and Hybrid Capital and Debt Instruments (IHCD) in Brazil and overseas.
(2) Includes interest income, profitable compulsory deposits income, fiscal hedges, derivatives and other financial instruments that offset the effects of exchange rate variance on the results.
Breakdown of NII (R$ millions) 2012 2013 2014 14/13
Variance (%)
Net Interest Income 45,729 46,052 50,098 8.8
Loan Operations 65,171 70,011 83,113 18.7
Funding Expenses (30,496) (32,518) (43,191) 32.8
Institutional Funding Expenses(1) (4,917) (6,058) (7,146) 18.0
Recovery of Write-offs 3,748 3,430 3,648 6.4
Treasury(2) 1,777 10,778 12,991 20.5
Others 447 410 683 66.6

Fee income | With growth of 7.6% for the year, fee income was R$25.1 billion, especially due to growth in fees from cards, funds management and insurance, pension plans and savings bonds. A greater offer of credit and a strong performance in these segments has contributed to higher business volumes and to the diversification of fee income.

Fee Income (R$ millions) 2012 2013 2014 14/13
Variance (%)
Fee Income 21,071 23,301 25,070 7.6
Credit/Debit Cards 4,739 5,689 6,461 13.6
Asset Management 3,582 3,713 4,133 11.3
Checking Accounts 4,356 4,120 4,045 (1.8)
Loan Operations and Guarantees 2,141 2,458 2,369 (3.6)
Collections 1,316 1,411 1,487 5.4
Insurance, Pension Plans and Savings Bonds 988 1,199 1,427 19.0
Billings 832 891 944 6.0
Interbank 697 726 749 3.2
Capital Market 454 524 481 (8.1)
Fiduciary Services - 383 445 16.3
Others 1,967 2,187 2,529 15.6

Indicadores de Produtividade

Efficiency and productivity | Banco do Brasil is constantly striving to enhance its operating efficiency and productivity and to maintain strict control of its expenses. In 2014, administrative expenses amounted to R$32.3 billion, up by 7.1% over the previous year and within what BB had been expecting. This led to better productivity ratios as shown in the graph on the right.

Basel | In December 2014, the BIS Ratio III of Banco do Brasil stood at 16.1%, of which 9.0% is the Capital Ratio. All these indicators exceed the regulatory minimums. The Regulatory Capital of BB stood at R$126.6 billion in the same period, with annual growth of 7.1%.


The value distributed by Banco do Brasil amounted to R$43.8 billion, 10.7% down on the figure for 2013. The main variances in VAS in the year-on-year comparison are presented below.


Salary adjustment-linked expenses rose within the bank’s expectations, primarily salaries and fees, benefits and training. This increase was partially offset by lower expenses with profit sharing (PLR), proportional to the decline in net income in the period.

Remuneration of own capital

Shareholder remuneration in the form of dividends was down for the year on account of lower net income in 2014. Similarly, retained earnings were lower than in 2013. Together these factors accounted for a reduction of R$5.0 billion in value distributed to remunerate own capital.

Taxes, fees and contributions

Amounting to R$11.3 billion, tax charges reflect the structure of the tax base for the year.

Remuneration of third-party capital

High lease expenses arose from new lease agreements, with around 150 agreements signed for the physical expansion of the service network, as well as adjustments and renewals of agreements already in force.

Performance by Business Segment

GRI G4-DMA Water G4-DMA Product portfolio

Loans GRI FS1 FS2 FS3FS5FS6G4-DMA Local communities

The performance of Banco do Brasil in providing loans contributes to the development of key sectors of the Brazilian economy, benefiting value chains and countless locations. Support for agribusiness, funds for infrastructure and logistics projects and a strong presence among micro and small businesses, among others, enable local economies to function and create new business and growth for all those involved. Also, BB plays a leading role in transferring federal funds to programs involving sanitation, housing and urban mobility, among others.

The Bank’s Broad Definition Loan Portfolio ended 2014 with a balance of R$760.9 billion. After disregarding abroad transactions, private securities and guarantees, the Bank’s qualified loan portfolio in Brazil showed a balance of R$633.7 billion, with a market share of 21.0%.

The average portfolio risk, which shows the ratio between required provisions and the total loan classified portfolio, has maintained a downward trend since 2011, and is still below the level of the Brazilian Banking Industry (SFN), ending the year at 3.75. With regard to the 90-day delinquency ratio, the Bank has historically been below the level of the SFN. BB is the benchmark in Brazil for collections and credit recovery, especially because of its integrated technology platform for across-the-board management of this process, and through the use of probabilistic models. At the close of 2014, the recovery rate on loans of up to 360 days was 93.6%.

BB has adopted its own socioenvironmental criteria for risk analyses, publishes its annual sustainability guidelines on credit to specific sectors and, in 2014, launched its socioenvironmental guidelines for controversial issues

The bank does not engage with or take credit risk on customers that do not comply with current legislation or which submit their employees to degrading types of work or forced labor conditions, as established in the Credit Policy and in the prohibitions when analyzing loan transactions. Since 2013, the general clauses in BB loan instruments have included a clause with a social aspect referring to human rights. As regulated by Interministerial Ordinance MTE/SDH 2/2011, the Ministry of Labor and Employment (MTE) updates and discloses to the bank, among other bodies, on a six-monthly basis the Register of Employers listing those companies whose employees have been submitted to conditions analogous to forced labor. The bank may also request additional information or copies of documents dealing with the inspection process that gave rise to the employer’s inclusion on the register.

The Bank also adopts its own socioenvironmental criteria when analyzing risk, credit limits and investment projects, as it makes the financing conditional on compliance with environmental legislation. These procedures apply to businesses whose current or projected net operating revenues exceed R$50 million and investments involving project finance equal to or exceeding R$2.5 million.

Sustainability Guidelines on Loans | Every year the Bank produces a document with specific approaches to two sectors, as part of the actions envisaged in its Sustainability Plan – BB Agenda 21 and within the scope of the Brazil Water Program. 2014 saw publication of the sustainability guidelines for the Oil & Gas and Transport sectors. Also, another forum was convened with environmental specialists and the Stakeholders’ Panel to define the socioenvironmental criteria for loans to the irrigated agriculture and paper and pulp sectors. This initiative contributed to mitigating socioenvironmental risk and to reducing the impacts of financing and investments, in addition to identifying business opportunities within the sustainable business value chain based on material socioenvironmental issues and strategic topics for sustainable development. Through this process BB defined the guidelines for the topics on Forest and Biodiversity, Water, Climate Change, Agribusiness, Electrical Energy, Civil Construction and Mining, which can all be found at (Gestão da Sustentabilidade > O que nos orienta).

Socioenvironmental Guidelines for Controversial Issues | This new document, made available in 2014 on the BB sustainability site, sets out in clear terms the bank’s position with regard to disputes and controversial issues that have become notorious for society. The guidelines list the segments served, the restricted activities and the blacklist, in line with good international practices and the public commitments assumed by the Bank.

Social Businesses GRI G4-EC8 G4-SO1 FS4 FS10 FS15 G4-DMA Local communities G4-DMA Active ownership G4-DMA Product and services labeling

The Bank’s Model for Integrated Involvement in Sustainable Development, in force since 2013, enables actions to be mapped and opportunities identified in an integrated manner on the premises, driving the initiatives in Action Plans for Sustainable Development (PADS).

One of the principal mechanisms employed by the Bank are the social businesses that use market mechanisms to resolve social problems, so as to reduce socioeconomic inequalities in a sustainable manner while ensuring income, productive inclusion and access to public services. Examples of these businesses include financing under the Minha Casa Minha Vida (PMCMV – Popular Housing), Fundo de Financiamento ao Estudante do Ensino Superior (Fies – Student Loans), Programa Nacional de Fortalecimento da Agricultura Familiar (Pronaf – Family Farming), Microcrédito Produtivo Orientado (MPO – Micro Credit) and the BB Crédito Acessibilidade (Accessibility) programs. They all play an important role in fostering public policies and are aligned with the mission of being a market bank with public spirit (the results can be seen on Individuals, Companies and Agribusiness).

From the local standpoint, with a view to identifying and developing vocations within communities throughout Brazil the Bank has adopted a Business Strategy for Sustainable Regional Development, a specific process involving local engagement of stakeholders through the Bank’s branch network, which uses social businesses to bind manufacturing activities to the generation of employment, income and social well-being, as well as to concerns for the environment.

The strategy aims to drive sustainable development of the regions where BB operates, by mobilizing economic, social and political players while supporting economically viable activities that are also socially fair and ecologically correct, but never losing sight of cultural diversity. The principle of participation and building within the Sustainable Regional Development methodology is its success factor, as it brings together a variety of players that include private institutions, associations, cooperatives, governments, universities, religious entities and non-governmental organizations (NGOs), among others, around a single agenda. The local stakeholder engagement process leads to partnerships for managing each Business Plan, and includes a structured and collective process covering the planning, coordination and monitoring phases.

In 2014 BB concluded reviewing the strategy, which resulted in enhancements to instruments for monitoring and evaluating the plans, as well as in providing new tools for organizing and planning information so as to enable the branches to take decisions in a timely manner, with quality and efficiency. Among other adaptations, the conclusion of the review simplified the methodology and made the process more operationally efficient.

During the period, every Business Plan was analyzed from the point of view of the BB Eco-efficiency Program, in the search for strategic alignment and sustainable solutions. This process involved Superintendencies and other regional branches whose understanding of regional specificities, applied in on-site visits, enabled the base to be classified while ensuring that those plans that contribute to engaging in sustainable business are maintained.

Currently 1,390 branches have 1,515 Business Plans in progress, supporting manufacturing activities in 1,945 Brazilian municipalities. BB provides specific courses in order to train its employees around this strategy. Today, there are 24,676 employees throughout Brazil trained to apply the methodology and to draw up business plans. GRI FS4

In 2014 BB continued to implement the model for involvement in sustainable development at its overseas branches. Taking this involvement international is hindered by the fact that the overseas branches, unlike the domestic network, do not have the capillarity and involvement in micro credit and agribusiness facilities, nor do they offer support with non-reimbursable funds required for the projects being prospected.

Among the international achievements for the year, the highlight was the replication of the “Financial Health is Priceless” Workshop in the region of Montero (Bolivia), involving 60 participants and, once again, in partnership with Instituto Cooperforte and Fundação Banco do Brasil, following on the success of the action carried out in 2013 in the city of Santa Cruz. In Paraguay, computers were donated to schools in Ñacunday to enable them to access the internet. Digital inclusion in this Paraguayan town is the first step to transforming these schools into technical training centers, in order to meet demands from Brazilian businessmen, established in these regions, for qualified staff, especially in agriculture.


The individuals loan portfolio – broad definition ended 2014 with a balance of R$179.7 billion, an increase of 6.8% in the year-on-year comparison, and accounting for 23.6% of the total portfolio. Excluding acquired portfolios and the proportional consolidation of Banco Votorantim, growth was 12.5% over the period. The BB’s growth strategy based on lower-risk facilities proved to be an effective one. In the case of the organic portfolio, 75.9% of the year-end balance was concentrated in payroll loans, property loans, salary loans and auto loans. In the case of the latter two facilities, most of the transactions involve civil servants and customer with over 10 years of relationship with the Bank, thus reducing the risk of delinquency. In regard to payroll loans, transactions are concentrated in tenors exceeding 48 months (84.1% of the total taken out), contributing to customer loyalty and the offer of products and services.

(1) Inclusion of credit card portfolio, cash value and installment plans of Banco Votorantim beginning 2013.
Individuals Loan Portfolio (R$ millions) 2012 2013 2014 14/13
Variance (%)
Classified Loan Portfolio 151,869 167,884 179,225 6.8
Direct Consumer Credit 81,629 85,491 86,907 1.7
  Payroll loans 58,589 61,964 64,245 3.7
  Consumer Finance 5,922 5,866 5,826 (0.7)
  Salary Loans 17,118 17,661 16,836 (4.7)
Auto Loans 35,887 35,372 32,768 (7.4)
Mortgages 10,202 18,458 28,487 54.3
Credit Cards(1) 15,888 20,081 22,665 12.9
Overdraft Accounts 2,459 2,451 2,298 (6.2)
Microcredit 931 1,031 1,341 30.0
Others 4,871 5,000 4,760 (4.8)
Private Securities and Guarantees 142 323 497 53.6
Loan Portfolio Broad Definition 152,011 168,207 179,722 6.8

Two products with an environmental bias are worthy or note for their achievements in 2014, within the scope of the Minha Casa Minha Vida (PMCMV) Program, BB contribute more than 400,000 units contracted in various modalities. The Bank’s embracing of this program has helped reduce the housing deficit in Brazil, as well as driving the solutions offered by the entire civil construction chain, not to mention contributing to BB’s consolidation in the real estate lending market. In the case of BB Crédito Acessibilidade, the figure of R$100 million in loans has been granted since the facility was launched. Worthy of note is the creation of a new facility that provides financing for adapting homes. These achievements exceed the target established for the Bank during the period, while contributing to raise its profile within the National Plan for the Rights of People with Disabilities – Viver Sem Limite.

Products with a Socioenvironmental Features GRI FS7 FS8 G4-DMA Materials

BB Crédito Acessibilidade
BB Crédito Acessibilidade

A loan facility to finance goods and services for people with disabilities, based on Provisional Measure 550/2011.

118,745Total Portfolio in 2014 (R$ thousand)12,029Number of Transactions in 2014

Fundo de Financiamento ao Estudante do Ensino Superior (Fies)
Fundo de Financiamento ao Estudante do Ensino Superior (Fies)

Student loan facility to finance under graduate education for students who without the wherewithal to pay for their education, in line with the government’s policy for democratizing access to quality education.

13,593,567Total Portfolio in 2014 (R$ thousand)312,642Number of Transactions in 2014

Fundo de Amparo ao Trabalhador (FAT) Taxista
Fundo de Amparo ao Trabalhador (FAT) Taxista

Auto loans for individuals where the fuel is from renewable sources. This facility uses funds from the Fundo de Amparo ao Trabalhador, (Workers’ Assistance Fund, or FAT) and leads to the creation of jobs and income.

258,469Total Portfolio in 2014 (R$ thousand)5,394Number of Transactions in 2014

Programa Minha Casa Minha Vida (PMCMV)
Programa Minha Casa Minha Vida (PMCMV)(1)

Financing for developments that meet requisites such as the inclusion of the elderly and those with special needs; environmental protection rules and attitudes, such as the use of equipment and solutions; compliance with recommendations when executing projects; and the fostering of discussions and dissemination among their members of knowledge about how to re-use materials, rational use of natural resources, alternative low-cost methods for heating water/degradable construction materials/other risks arising from the failure to protect the environment and other pertinent matters.

10,662,041Total Portfolio in 2014 (R$ thousand)85,487Number of Transactions in 2014

BB Microcrédito Desenvolvimento Regional Sustentável
BB Microcrédito Desenvolvimento Regional Sustentável

A credit facility intended for urban entrepreneurs that benefit from Sustainable Regional Development Business Plans intended to meet the financial needs of micro entrepreneurs.

42,080Total Portfolio in 2014 (R$ thousand)

BB Microcrédito Empreendedor PF
BB Microcrédito Empreendedor PF

Loans to individuals for working capital or investment intended to meet the financial needs of small enterprises, in line with the National MPO Program.

24,054Total Portfolio in 2014 (R$ thousand)

(1) In the Individuals segment, 85,258 transactions were closed, resulting in a portfolio of R$9,637 million. In the companies segment there were 229 transactions amounting to R$1,025 million at the end of 2014.


The companies loan portfolio – broad definition was R$354.1 billion last year, growth of 9.9% over 2013, accounting for 46.5% of the total portfolio. Working capital and investment transactions drove portfolio growth, which rose by 8.6% and 18.6%, respectively. Investment loan disbursements stood at R$54.1 billion in 2014, the highlight being BNDES transfer facilities such as Pronaf Family Agriculture, Agribusiness Investment, FCO and Proger.

In the government segment BB has been increasing its operations as a partner in financing infrastructure investment programs. In 2014 the Bank disbursed around R$7.8 billion in 25 transactions with states, providing financing for executing investment programs that are part of the multiyear plans, as well as initiatives in infrastructure, tourism, health, education and security, the acquisition of school transport, machinery and equipment, and improvements to public management.

Loan transactions to Micro and Small Enterprises (MPE) amounted to R$102.2 billion at the end of the year, growth of 2.4%, a segment in which BB had 2.3 million customers. Around 93.6% of the portfolio balance is focused on checking account holders with relationships exceeding two years. Furthermore, the Bank has availed of instruments such as the Transactions Guarantee Fund (FGO) and the Suretyship Fund for Micro and Small Enterprises (Fampe), enabling greater access to loans, reductions in costs for the end borrowers and lower risk for the Bank.

Companies Loan Portfolio (R$ millions) 2012 2013 2014 14/13
Variance (%)
Classified Loan Portfolio 221,774 260,589 290,877 11.6
Working Capital 118,511 138,337 150,202 8.6
Investments 44,650 56,380 66,894 18.6
Receivables 20,288 18,970 17,105 (9.8)
Credit Cards 11,439 13,719 15,014 9.4
FEC/ACE 11,224 11,922 12,833 7.6
Mortgage 2,653 5,907 10,276 74.0
Pre-Aproved Credit 2,906 3,714 4,059 9.3
BNDES Exim 4,152 3,543 4,003 13.0
Overdraft Accounts 172 239 317 32.8
Others 5,778 7,857 10,172 29.5
Private Securities and Guarantees 48,800 61,677 63,227 2.5
Loan Portfolio Broad Definition 270,574 322,265 354,104 9.9

During the year the Bank unified the service to corporate and business customers, having dismantled the structure intended for large corporates. This made it possible for the staff in these business segments to specialize, improving the service, enhancing operational efficiency and facilitating the generation of new business. Another highlight in the period was the commencement of the strategic partnership with Movera, a BB associate company, to as to operate on a large scale in production-oriented micro credit (MPO). The purpose is to intensify micro credit transactions, with the Bank responsible for defining the strategy and providing lending methodology and the management systems. It is up to Movera to carry out the transactions using micro credit agents.


Products with a Socioenvironmental Features GRI FS7 FS8

BB Microcrédito Empreendedor PJ
BB Microcrédito Empreendedor PJ

Loan facility intended for business customers for working capital or investment, designed to meet the financial needs of small enterprises in line with the National MPO Program directly at the location where the economic activity is carried out, in order to provide guidance and monitor the business.

1,346,507Total Portfolio in 2014 (R$ thousand)883,046Number of Transactions in 2014

BB Giro Rápido
BB Giro Rápido

Pre-approved credit facility to meet the working capital needs of micro and small enterprises. The line includes two types of credit – overdraft accounts and fixed revolving credits that add social value by providing micro and small enterprises with marketing differentials. The product offers advantages, such as a simplified credit approval process, while the transactions are covered by the guarantee of the FGO, which facilitates access to credit.

4,232,544Total Portfolio in 2014 (R$ thousand)64,920Number of Transactions in 2014


A working capital facility intended for micro and small enterprises associated with APLs. BB Giro APL transactions can be taken out with the guarantee of the FGO, which facilitates access to credit for micro and small businesses, since the presentation of guarantees represents one of the principal barriers when taking out loans, in addition to the possibility of lower financial charges.

45,605Total Portfolio in 2014 (R$ thousand)876Number of Transactions in 2014

FAT Turismo
FAT Turismo

Working capital and investment credit facilities intended to support micro and small businesses in order to expand business opportunities and generate jobs and income on account of the 2014 FIFA World Cup and the 2013 Confederations Cup.

407,151Total Portfolio in 2014 (R$ thousand)545Number of Transactions in 2014


Financing intended for micro and small enterprises for investment projects, with or without an underlying working capital loan, enabling the creation or maintenance of jobs and income in urban areas, so as to ensure the sustainable development of micro and small enterprises aligned with the Proger Urbano program.

3,354,582Total Portfolio in 2014 (R$ thousand)16,880Number of Transactions in 2014

Agribusiness GRI G4-DMA Emissions

Banco do Brasil is one of the primary players fostering development of agribusiness in Brazil, with a 63.5% market share of loans to this segment. Because its operations range form smallholders to large agribusiness companies, the Bank finances working capital for input purchases and for commercializing farm produce, in addition to enabling rural investment such as warehousing and storage facilities, processing and industrialization of farm produce and the modernization of farm machinery and implements.

The broad definition agribusiness loan portfolio, including rural credit and agroindustrial transactions grew by 13.9% in 12 months, reaching R$164.9 billion at the end of 2014. This segment accounted for 21.7% of the BB’s total portfolio at the end of the year. The commencement of the program/loan facility saw significant growth in transactions under the National Program for Strengthening Family Farming (Pronaf), the Working Capital Program for Farming Input Purchases and the National Support Program for Mid-Size Farmers (Pronamp).

2013/2014 Crop Plan, concluded in June 2014, showed R$76.3 billion in disbursements, an all-time record. During the first half of the current crop year, which ran from July to December 2014, BB disbursed R$46.2 billion in rural loan transactions, growth of 17.9% over the same period of the previous year. This volume accounted for 56.7% of the total R$81.5 billion initially envisaged.

Agribusiness Loan Portfolio (R$ millions) 2012 2013 2014 14/13
Variance (%)
Classified Loan Portfolio 106,984 144,100 163,640 13.6
Rural Loans 85,213 109,469 133,310 21.8
  Pronaf 24,229 28,941 35,983 24.3
  Working Capital Program for Input Purchases 22,296 26,684 29,911 12.1
  Pronamp 11,850 16,791 22,082 31.5
  BNDES/Finame Rural 5,804 8,213 10,249 24.8
  FCO Rural 7,905 8,327 8,825 6.0
  Agribusiness Investment - 6,269 8,324 32.8
  Programa ABC (Low Carbon Agriculture Program) - 5,346 8,024 50.1
  Agribusiness Commercialization - 4,508 5,934 31.6
  Others 13,129 4,389 3,978 (9.4)
Loans to Companies 21,771 34,631 30,330 (12.4)
Rural Product Bills and Guarantees 988 708 1,262 78.2
Loan Portfolio Broad Definition 107,971 144,809 164,902 13.9

Since the 2006/2007 crop year BB has encouraged the taking out of protection against climatic uncertainties in working capital transactions for farming input purchases. The strategy is being disseminated and enhanced with every year that goes by, including the massified offer of options as of the 2009/2010 crop year. Mitigation mechanisms take into account a variety of information about the transactions requested by customers, such as customer risk, the crops to be financed and the location of the financing.

Top initiatives
in 2014

Custeio Renovável | Launched last year, this facility enables the renewal of farming working capital for inout purchases for up to five years, in a simple manner. This reduces the movement of documents, the Bank’s operating procedures and the costs for producers of registering these with notaries.

BB-Pronaf na WEB | Process optimization was achieved by making available an on-line platform for partners with arrangements with BB, through which it is possible to prepare and update the information files of family farmers, open checking accounts, receive proposals for loans under the Pronaf facility and monitor the information in the proposals. The solution was recognized at the XXIII E-Finance Awards 2014, in the Internet Banking category.

Mitigadores no Custeio Agrícola na Safra 2014/2015 GRI G4-DMA Active Ownership

With regard to the policy on agribusiness loans, this takes into account, in addition to the risks inherent to the business, the aspects concerning socioenvironmental responsibility and the capacity to generate employment and income, in accordance with the policy approved by the Board of Directors. Currently, before granting rural credit, BB requires the environmental licensing for the activity, water rights and, in the Amazon Biome, proof that the property is environmentally regular. The loan agreement contains a clause that calls for suspension of outstanding drawdowns and the exceptional maturity of the financing where illegal deforestation occurs on the property. GRI FS1FS2FS3FS10

In addition, attention is paid to the Ecological and Economic Zoning (ZEE) and Agro-ecological Zoning (ZAE) arrangements that indicate aspects such as economic opportunities, environmental fragilities, occupation trends and the agro-economic suitability per crop. In the case of transactions using FCO funds, there is a contractual clause that obligates the borrower to comply with federal, state and local legislation regarding environmental conservation, so that they abide by the technical and legal criteria for preserving gallery forest, hill tops and slopes, soil and water use, pest stewardship, the protection of springs, flora and fauna, as well as other environmental conservation considerations. GRI G4-EC2

Fulfilling its role as an agent of public policies, the bank has set up a Technical Cooperation Agreement with the Ministry of the Environment to strengthen and encourage the Rural Environmental Register (CAR). The bank has an agreement with the Department of Strategic Affairs of the Presidency of the Republic to undertake studies into rural credit and insurance. The Institution is also a member of the Sustainable Animal Husbandry Working Group (GTPS), an organization created by representatives of the various segments comprising the cattle raising value chain in Brazil.

Banco do Brasil encourages the use of sustainable farming techniques that contribute to improving income, reduce greenhouse gas (GHG) emissions and conserve natural resources. It was a pioneer in getting the Low Carbon Agriculture Program (Programa ABC) off the ground, so as to finance sustainable agricultural production systems that have an acknowledged capacity to reduce/sequester GHG emissions and foster the production of vegetation/biomass and foodstuffs, while preserving the environment. At the end of 2014, the portfolio balance of the program stood at R$8.0 billion, growth of 50.1% in 12 months. Last year saw 6,365 financing transactions closed, amounting to R$2.9 billion. Support for sustainable rural activities is also to found in the Pronaf Agroecologia, Pronaf Eco and Pronaf Florestal facilities. GRI G4-EC2

Products with a Socioenvironmental Features GRI G4-EC2 FS7 FS8 G4-EN31 G4-DMA Energy

Programa ABC
Programa ABC

The primary objectives are to reduce GHG emissions from farming activity and deforestation, and to encourage the recuperation of degraded areas.

8,023,968Total Portfolio in 2014 (R$ thousand)6,365Number of Transactions in 2014


Aims to make farmers and their family members more professional, modernize the production system and recognizing the value of the family farmer. It provides support to farming and non-farming activities where the direct labor force is the rural producer’s own family members.

35,983,080Total Portfolio in 2014 (R$ thousand)810,280Number of Transactions in 2014

Pronaf Florestal
Pronaf Florestal

Aims to support investments in projects that meet the requirements defined by the Department of Family Agriculture/Ministry of Agrarian Development for: agroforestry systems; ecologically sustainable extractivist exploitation; stewardship and forestry stewardship, including project implementation and maintenance costs; and the enhancement of areas that already have a diversified forest cover by planting one or more species native to the biome.

171,456Total Portfolio in 2014 (R$ thousand)1,556Number of Transactions in 2014

Pronaf Agroecologia
Pronaf Agroecologia

A credit facility intended for farmers eligible for the Pronaf program, for investments involving specific agro-ecological or organic product system projects, including the project implementation and maintenance costs.

6,898Total Portfolio in 2014 (R$ thousand)40Number of Transactions in 2014

Pronaf Eco – Dendê/Seringueira
Pronaf Eco – Dendê/Seringueira

Credit facilities for farmers eligible for the Pronaf program, for investments in establishing palm oil or rubber plantations, providing working capital for purchasing inputs associated with maintaining the crops.

7,656Total Portfolio in 2014 (R$ thousand)119Number of Transactions in 2014

Pronaf Eco
Pronaf Eco

A facility intended for farmers eligible for the Pronaf program who want to implement, utilize, recover or adopt renewable energy and/or environmental technologies, water storage, small hydroelectric power systems, silviculture or conservationist practices involving soil acidity correction and fertility.

234,224Total Portfolio in 2014 (R$ thousand)1,133Number of Transactions in 2014


A fixed credit facility intended for farming investments using BNDES funds. It foster actions involving animal welfare and the implementation of systems for tracing animals intended for human consumption. The program supports soil recovery, in addition to fostering sectors that produce, process, transform and store products from beekeeping, aquaculture, aviculture, chinchilla breeding, rabbit breeding, floriculture, fruit growing, horticulture, fishing, sheep and goat breeding, dairy cattle, frog breeding, silk worm breeding and pig breeding.

210,688Total Portfolio in 2014 (R$ thousand)32Number of Transactions in 2014


Program intended for financing normal expenses with working capital for input purchases and investment, so as to foster the development of the rural activities of mid-size farmers, enabling them to increase their income and create jobs on the land.

22,082,401Total Portfolio in 2014 (R$ thousand)149,129Number of Transactions in 2014

Programa de Construção e Ampliação de Armazéns (PCA)
Programa de Construção e Ampliação de Armazéns (PCA)

Aims to support the investments needed to expand and build new warehousing. Thus it contributes to improving the income of rural producers and the distribution and storage of the food produced in Brazil, enhancing food security.

1,940,312Total Portfolio in 2014 (R$ thousand)1,192Number of Transactions in 2014

Equator Principles GRI G4-EC2 G4-HR1 G4-HR9 G4-SO2 FS1 FS2 FS3 FS9 G4-DMA Economic performance G4-DMA Energy G4-DMA Child labor G4-DMA Forced or compulsory labor G4-DMA Assessment G4-DMA Supplier human rights assessment G4-DMA Human rights grievance mechanisms G4-DMA Audit

As a signatory to the Equator Principles, o Banco do Brasil adopts the standards of the International Finance Corporation (IFC) when analyzing risk, so as to be certain that the financing a responsible contribution to social development and the use of best environmental management practices when carrying out major projects. In 2014 the Bank adopted version 3 of these guidelines, which expanded the scope of the eligible financial products (see the box). The benefits of the new scope include better Project control and monitoring, a much wider overview of the risks, the possibility of better mitigating the socioenvironmental, reputation, credit and legal risks, as well as the positive approach to shareholders, customers, employees and market indices.

Categories of the Equator Principles – Version 3

Project Finance | For investments starting at US$10 millions

Project Finance Advisory Service | Financial advisory services for investments in which the credit granted qualifies as Project Finance

Project Related Corporate Loans | Loans and financing intended for a single project over which the customer has effective control, with a minimum financing amount of US$100 million, individual participation of the financial institution of at least US$50 million and a minimum term of two years

Bridge Loans | Refinancing of Project Finance or Project Related Corporate Loans with tenors of less than two years

The projects assessed by BB are classified in a socioenvironmental risk matrix that identifies relevant impacts and risks and management measures. Category A covers projects where the potential risk or adverse socioenvironmental impact is significant, multiple, irreversible or without precedent. Category B, in turn, covers those o limited potential, lower number, extensively reversible and immediately controllable using mitigation measures. Category C covers initiatives where the risk or impact is minimal or non-existent. In all requests for financing categorized as A or B, the Bank requires the customer to develop or maintain an environmental and social management system. Furthermore, in high-risk cases it may be necessary to ask the customer to provide additional evaluation documentation, with a specific due diligence on human rights. In other projects, a limited-scope or focused social or environmental assessment may be carried out (like an audit), or a simple analysis of specific issues, such as a location analysis, pollution levels, project typology or the impacts of construction.

Last year BB was involved in 60 project finance and structured transactions, especially in the electrical energy, shipbuilding, oil and gas, logistics and urban mobility segments. These activities generated fee income of approximately R$148 million, and disbursements of around R$9.3 billion. Besides these, 28 on-going projects are expected to generate fee income of around R$60 million over the next two years. This performance firmly establishes BB at the head of the Project Finance Ranking of the Brazilian Association of Capital Markets Entities (ANBIMA) as lead manager and lender in the criterion of number of projects.

The projects analyzed from the point of view of the Equator Principles fall into the following sectors: real estate, energy generation/transmission and seed production. Worthy of note is the support for two energy generating plants with a capacity of 42 MW and 400 MW, located, respectively, in the states of Minas Gerais and Mato Grosso, and the energy transmission project in Goiás state. The socioenvironmental aspects covered by the Equator Principles were assessed, such as resettlement of people, native tribe lands and the historical and cultural heritage, among others. Besides these there was also support for two real estate developments, where solid waste and control of water resources were evaluated, as well as a project in the seed production sector, which is considered free of negative socioenvironmental risks or impacts, or where risks are minimal.

IN THE LAST YEAR 8 agreements were closed within the scope of the Equator Principles, two of them involving project finance, three in project finance advisory services and three bridge loans. No transactions were closed in the Project-Related Corporate Loans category

Project Finance Agreements entered into in 2014 Number of agreements Total Investment
(R$ millions)
Effective Participation
of BB (R$ millions)
B 2 10,905 816
Business Sector
Industrial 1 1,253 577
Logistics 1 9,652 239
North 1 1,253 577
Southeast 1 9,652 239
Total 2 10,905 816

Project Finance Advisory Service Agreements Entered into in 2014 Number of Agreements Total Investment
(R$ millions)
Business Sector
Logistics 2 1,900
Shipbuilding 1 2,966
North 1 1,400
Northeast 1 2,966
South 1 500
Total 3 4,866

Bridge Loans Agreements Entered into in 2014 Number of agreements Total Investment
(R$ millions)
Effective Participation of BB (R$ millions)
A 1 19,170 675
B 1 1,400 200
C 1 143 70
Business Sector
Logistics 1 1,400 200
Infra-social 1 143 70
Shipbuilding 1 19,170 675
North 2 1,543 270
Southeast 1 19,170 675
Total 3 20,713 945

Trade Finance

BB maintained its market leadership in export and import exchange transactions, with volumes of US$62.2 billion and US$51.2 billion and market share of 27.6% and 23.5%, respectively. Worthy of note is the use of the internet as a platform for closing transactions: around 63.8% of export exchange contracts and 40.1% of import exchange contracts were closed using the platform. A solution for recharging the Ourocard Visa TravelMoney card was also made available on the mobile channel, supplementing the solution already existing on the internet, which affords customers greater liberty while optimizing the processes for the Bank.

In Trade Finance, the highlight were Advances on Foreign Exchange Contracts (ACC)/Foreign Exchange Deliveries (ACE), which amounted to US$10.3 billion, with a market share of 26.3%. Import finance stood at US$5.4 billion.

Within the scope of the Export Finance Program (Proex), disbursements in the finance modality stood at US$456.2 million. During this period the first disbursements under the Programa Mais Alimentos Internacional (International More Food Program), took place, dedicated to exports of machinery and equipment for family farming, accompanied by a package that includes spares parts, maintenance services and training. October saw the signing of a Protocol of Intent between Brazil and Angola for the purpose of encouraging tarde between the countries, especially in the smaller company segment.

The proceeds disbursed under the BNDES-Exim modalities amounted to US$475.7 million by November 2014, the latest figures available. To increase the foreign loan portfolio, the Banco increased its offer of the international financing facilities, Finimp Direto (Direct Import Financing), Pré-Pagamento de Exportação (Pre-payments of Exports), Empréstimo Financeiro Direto (Direct Financial Loans) and Desconto à Forfait (Forfaiting) for retail customers in Brazil, which led to an increase in the share of this segment of the total loans granted by BB branches overseas, from 2.9% to 6.0%. The volume of new transactions stood at US$370.1 million in 2014.

In May, the Bank inaugurated a branch in Shanghai, China. It is the first branch of a Latin American bank in that country. The purpose is to expand international trade, investment in Brazil and the operations of Brazilian multinationals. BB also offers training services in international business that benefit primarily small and mid-size businessmen, as well as students, with knowledge on how to operate efficiently and securely on the international market. In 2014, 9,200 people were trained, including students, businessmen and sector professionals.


Money Market Borrowing

Commercial funding at Banco do Brasil, which includes total deposits, Agribusiness Letters of Credit, (LCA), Mortgage Bonds (LCI) and private security repo transactions showed a balance of R$634.6 billion in December 2014, growth of 4.5% in twelve months. The Bank maintained its strategy of improving the funding mix in order to reduce costs.

In the case of international funding, in 2014 BB continued to be a regular issuer, which contributed to leveraging new businesses while enhancing brand recognition overseas. Worthy of note was the total funding for the year, of US$2.9 billion, in addition to a long-term structured funding transaction of US$500 million.

Commercial Funding (R$ millions) 2012 2013 2014 14/13
Variance (%)
Total 515,714 607,215 634,627 4.5
Time Deposits 176,667 145,542 99,474 (31.7)
Judicial Deposits  86,346 101,769 115,010 13.0
Savings Deposits 117,744 140,728 148,699 5.7
Demand Deposits 74,760  75,818  74,210 (2.1)
Agribusiness Letters of Credit 34,005  79,154 103,752 31.1
Interbank Deposits 16,569  27,155  30,969 14.0
Repurchase Agreement with Private Securities 9,554  33,562  48,155 43.5
Mortgage Bonds 70  3,487  14,358 311.8

Foreign Borrowing (US$ millions) 2012 2013 2014 14/13
Variance (%)
Total  4,995  51,174  51,081 (0.2)
Issues and Certificates of Deposit  7,528  20,129  21,081 4.7
Interbank  10,917  15,339  17,015 10.9
Businesses   11,166  10,132  8,945 (11.7)
Individuals  3,208  3,194  3,390 6.1
Repo  1,700  1,915  500 (73.9)
Others  475  465  149 (67.9)


Card turnover was R$238.3 billion in 2014, annual growth of 15.7%, the flagship being debit cards, which grew by 16.7%. The volume of transactions with BB cards grew by 11.2% over the previous year, while post-tax income form card services (fees, annual subscriptions, issuance fees, etc.) stood at R$2.0 billion, growth of 29.1% over the previous year. This performance can be attributed to having strengthened customer relationships, the mobilization across the branch network, greater use of this payment method by consumers, and the search for new business in the cards segment, such as the launch of the Ourocard Corporate Banking platform intended for large businesses.

Continuing with the reorganization of the cards business, April 2014 saw the launch of Stelo S.A., for the purpose of increasing business opportunities and solutions in the digital wallet segment. In May, the creation of Livelo S.A. got under way, for the purpose of exploiting loyalty program-related business.

Faturamento de Cartões (R$ bilhões)


In November 2014 BB informed the market that BB Elo Cartões Participações ande a Cielo had created a new strategic partnership, Token, to operate in the electronic payment methods sector, with aim of exploiting activities involving post-paid account transactions management and functionality management of purchases made by debit to account. The capital stock of Token was allocated 30% to BB Elo Cartões and 70% to Cielo. Given the indirect equity interest held by BB in Cielo, via BB-BI, its total indirect equity interest in token stood at 50.05% of the capital stock. The new company has been valued at R$11.6 billion.

Below is an organization chart of the cards business of Banco do Brasil.

Organograma Negócios de Cartões
Top initiatives
during the year

2014 | BB launched the Ourocard-e, a virtual card that protects the data of the customer’s main card when purchasing on-line. To attend to mid-size and large companies, in December Ourocard Corporate Banking was launched as an innovative solution for providing short-term loans with a high degree of customization. During the pilot phase the solution was responsible for a turnover of R$7 billion.

Oi Co-branded Card | These cards enable payment using cell phones, a functionality known as mobile payment, which represents an important innovative differentiating feature for the Bank. These transactions afford customers greater convenience, with total security while avoiding the need to issue paper receipts. Oi Co-branded credit cards had a turnover of R$392.6 million in 2014.

Gênesis Exhibition | Banco do Brasil sponsored the Geneses exhibition by artist Sebastião Salgado, at the Banco do Brasil Cultural Center in Brasilia between September and October 2014. During the exhibition the Ourocard Origens was promoted, which visitors could acquire.

Products with a Socioenvironmental Features GRI FS7 FS8 G4-DMA Products Portfolio

Ourocard Empreendedor
Ourocard Empreendedor

A specific credit card to meet the needs of individual micro entrepreneurs (MEI), exempt from annual fees, for the purpose of leveraging credit in this segment and facilitating access to banking services and the movement of financial resources.

19,026Number of Cards issued in 201420.0Growth 14/13 (%)

Ourocard Origens Reciclado
Ourocard Origens Reciclado

The first card produced from recycled Banco do Brasil plastic. With each card requested, the customer donates R$5 to the Instituto Terra, which fosters the recovery and sustainable stewardship of the Atlantic forest; they also agree to the automatic rounding up of the invoice value and contribute to the planting of 1 to 400 trees needed to sustain the recovery of 1 water source.

13.217Number of Cards issued in 201449,4Growth 14/13 (%)

Cartão de Pagamento da Defesa Civil (CPDC)
Cartão de Pagamento da Defesa Civil (CPDC)

Card intended for payment of expenses involving rescues, helping victims and reestablishing essential services, used exclusively in emergency situations or states of public calamity and recognized by the National Department of Civil Defense.

2,904Number of Cards issued in 201417.7Growth 14/13 (%)

Arredondamento de Fatura
Arredondamento de Fatura

Ourocard holders who sign up for this service will have the value of their invoices rounded up to the next whole amount, with the corresponding difference in cents donated to a non-profit partner institution of the bank. Donations are currently intended solely for Instituto Terra, which promotes reforestation of deforested areas of the Atlantic forest and is currently responsible for having recovered over 40 million square meters.

53,928signed up for the service in 201444.1Growth 14/13 (%)

Insurance, Pension Plans and Savings Bonds

BB Seguridade, a subsidiary of BB created in 2012, is the umbrella company for the insurance, pension plans and savings bonds business. Last year BB Seguridade retained its high-profile position in the markets where in operates, according to the latest data published by the Superintendence for Private Insurance (Susep). Adjusted Net Income in 2014 stood at R$3.2 billion, up by 42.6% over 2013.

BB Seguridade also joined the theoretical portfolio of the Bovespa Index in January, having launched its American Depositary Receipts (ADRs) Level I program on the New York Stock Exchange. Among the initiatives during the period, the highlight was the conclusion of several important negotiations: commercialization began of installment plan insurance for loan transactions with small and mid-size enterprises; and the start of the activities of Brasildental, which commercializes dental plans under the BB Dental brand and is exclusive to the BB channels throughout Brazil.

In 2015 BB Seguridade intends to enhance the offer of products and services while prospecting new business models and partnerships, such as the case of the on-going negotiations with Empresa Brasileira de Correios e Telégrafos (ECT) (the Brazilian Postal Service) to distribute insurance products through the the branches of Banco Postal.

Products with a Socioenvironmental Features

Life Insurance

Ouro Vida
Ouro Vida

Transfers to Fundação Banco do Brasil (FBB) 50% of its stipulation revenues for allocation to that entity’s social programs.

688,945Billing in 2014 (R$ thousand)36.4Share of Total Portfolio Billing in 2014 (%)

Ouro Vida Empresa
Ouro Vida Empresa
(group life insurance)

Transfers to FBB 100% of its stipulation revenues for allocation to that entity’s social programs.

2,157Billing in 2014 (R$ thousand)0.1Share of Total Portfolio Billing in 2014 (%)

BB Seguro Vida Mulher
BB Seguro Vida Mulher
(women’s life insurance)

Transfers to FBB 50% of its stipulation revenues for allocation to that entity’s social programs.

294,273Billing in 2014 (R$ thousand)15.5Share of Total Portfolio Billing in 2014 (%)

Ouro Vida Grupo Especial
Ouro Vida Grupo Especial
(special group life insurance)

Transfers to the Federation of AABB (FENABB) 2.19% of stipulation revenues

728,119Billing in 2014 (R$ thousand)38.5Share of Total Portfolio Billing in 2014 (%)

(personalized insurance)

Transfers the stipulation percentage to the FENABB.

133,242Billing in 2014 (R$ thousand)7.0Share of Total Portfolio Billing in 2014 (%)

BB Microsseguro Proteção Pessoal
BB Microsseguro Proteção Pessoal
(personal protection
micro insurance)

Popular product intended for lower income customers, guaranteeing reimbursement of the funeral expenses in the event of death of the policyholder, their spouse and their children.

46,036Billing in 2014 (R$ thousand)7.0Share of Total Portfolio Billing in 2014 (%)

Property Insurance

Ouro Residencial
Ouro Residencial
(home insurance)

Transfers to FBB 100% of its stipulation revenues for allocation to that entity’s social programs.

163,347Billing in 2014 (R$ thousand)48.8Share of Total Portfolio Billing in 2014 (%)

Ouro Máquinas
Ouro Máquinas (plant and equipment insurance)

Transfers to FBB 100% of its stipulation revenues for allocation to that entity’s social programs.

13,882Billing in 2014 (R$ thousand)4.1Share of Total Portfolio Billing in 2014 (%)

Ouro Empresarial
Ouro Empresarial
(business insurance)

Transfers to FBB 100% of its stipulation revenues for allocation to that entity’s social programs.

157,822Billing in 2014 (R$ thousand)47.1Share of Total Portfolio Billing in 2014 (%)

Savings Bonds

Ourocard Torcida Pagamento Único
Ourocard Torcida Pagamento Único (single instalment savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers, in favor of the BB Educar program.

2,866,427Billing in 2014 (R$ thousand)42.9Share of Total Portfolio Billing in 2014 (%)

Ourocard Torcida Pagamento Mensal
Ourocard Torcida Pagamento Mensal (monthly instalment savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers, in favor of the BB Educar program.

735,459Billing in 2014 (R$ thousand)11.0Share of Total Portfolio Billing in 2014 (%)

Ourocap Estilo Flex (PP 93E)
Ourocap Estilo Flex (PP 93E)
Transfers to FBB 0.5% of the total funds raised from payments by savers, in favor of the BB Educar program

Transfers to FBB 0.5% of the total funds raised from payments by savers, in favor of water resource projects.

118,890 Billing in 2014 (R$ thousand))1.8Share of Total Portfolio Billing in 2014 (%)

Ourocap Multi Chance (PM 48M)
Ourocap Multi Chance (PM 48M) (prize draw savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers of the second and third installments, in favor of youth and adult literacy programs (BB Educar).

211,548Billing in 2014 (R$ thousand)3.2Share of Total Portfolio Billing in 2014 (%)

Ourocap 200 anos (PM – PP 60M)
Ourocap 200 anos (PM – PP 60M) (prize draw savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers of the second and third installments, in favor of youth and adult literacy programs (BB Educar).

361,693Billing in 2014 (R$ thousand)5.4Share of Total Portfolio Billing in 2014 (%)

Ourocap 200 anos (PM – PP 60C)
Ourocap 200 anos (PM – PP 60C) (prize draw savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers of the second and third installments, in favor of youth and adult literacy programs (BB Educar).

92,968Billing in 2014 (R$ thousand)1.4Share of Total Portfolio Billing in 2014 (%)

Ourocap 200 Anos Cartão (PP 60A)
Ourocap 200 Anos Cartão (PP 60A) (prize draw savings bond)

Transfers to FBB 0.5% of the total funds raised from payments by savers of the second and third installments, in favor of youth and adult literacy programs (BB Educar).

1,656Billing in 2014 (R$ thousand)0.0Share of Total Portfolio Billing in 2014 (%)

Asset Management GRI FS11 G4-DMA Investment G4-DMA Active Ownership

BB Gestão de Recursos DTVM S.A., (asset management and securities distribution), a full subsidiary of the bank, institutes, organizes, and manages funds, portfolios and investment clubs. In the asset management segment, BB DTVM has been leader of the Brazilian investment funds industry since 1994. At the end of the year it had a total of R$554.7 billion in funds under management, and a market share of 21.7%, representing annual growth of 12.4%. BB DTVM had net income of R$755 million in 2014, up by 2.6% over 2013.

In 2014 BB DTVM invested in training the sales force and launched the first infrastructure project investment fund listed on BM&FBOVESPA, together with Votorantim Asset (VAM) and Highland Brasilinvest (HBI). During the year the company bolstered its risk management, corporate governance and communication and product management, having also launched 82 funds.

In line with the principles of social and environmental responsibility adopted by BB, since November 2010 BB DTVM has been a signatory to the Principles for Responsible Investment (PRI), an initiative by global investors, where the intention is to apply to its management processes those practices that promote the integration of environmental, social and corporate governance issues in its investment analysis and decision making.

BB DTVM has developed its own methodology for evaluating company shares, by which it incorporates into a long-term strategy a criterion for selecting sustainable assets, based on the pillars of economic and financial performance, corporate governance and environmental and social aspects. The evaluation and its results, in the form of a ranking, are made available to the managers so that they can decide whether or not to purchase assets.

Products with a Socioenvironmental Features

BB Referenciado DI Social 50
BB Referenciado DI Social 50
(linked to the interbank CD rate)

Transfers 50% of the management fee to FBB to
benefit social projects.

84.4Net Equity in 2014 (R$ millions) 8.1Profitability in 2014 (%)

BB Ações ISE Jovem FIC
BB Ações ISE Jovem FIC
(tracks corporate sustainability index-linked shares)

Transfers 20% of the management fee to FBB in support of initiatives under the Brazil Water Program. The portfolio of the Corporate Sustainability Index (ISE) consists of shares of companies with extensive corporate responsibility proposals that take into account aspects of good governance, economic efficiency, environmental equilibrium and social justice.

13.7Net Equity in 2014 (R$ millions)(2.7)Profitability in 2014 (%)

BB Multimercado Balanceado LP Jovem FIC
BB Multimercado Balanceado LP Jovem FIC (long-term fixed income/equity fund)

Transfers 20% of the management fee to FBB in support of initiatives under the Brazil Water Program.

1.0Net Equity in 2014 (R$ millions)5.6Profitability in 2014 (%)

BB Multimercado Global Acqua LP Private FI
BB Multimercado Global Acqua LP Private FI

Invests part of its portfolio in Brazilian and global companies whose manufacturing processes provides for the treatment or improvement of water.

483.9Net Equity in 2014 (R$ millions)12.0Profitability in 2014 (%)

BB Ações Carbono Sustentável FIA (sustainable carbon equities fund)

Tracks the Carbon Efficient Index (ICO2) created by the BNDES and by the BM&FBovespa, consisting of shares of companies comprising the IBrX-50 index, which adopt transparent practices with regard to their GHG emissions.

4.0Net Equity in 2014 (R$ millions)4.9Profitability in 2014 (%)

BB Carbono Opção Venda FIA
BB Carbono Opção Venda FIA
(sustainable carbon equities fund)

Tracks the Carbon Efficient Index (ICO2) created by the BNDES and by the BM&FBovespa, consisting of shares of companies comprising the IBrX-50 Index, which adopt transparent practices with regard to their GHG emissions..

3.5Net Equity in 2014 (R$ millions)5.6Profitability in 2014 (%)

BB Previdenciário Ações Governança
BB Previdenciário Ações Governança (governance-related public sector pension equities fund)

Fund intended for the in-house pension funds instituted by the Federal Government, the states and the municipalities, it tracks the BM&FBovespa Corporate Governance Index (IGC) consisting of companies acknowledged for good corporate governance practices whose shares are traded at corporate governance levels I and II on the Novo Mercado segmento.

196.7Net Equity in 2014 (R$ millions)2.0Profitability in 2014 (%)

FIP Brasil de Governança Corporativa
FIP Brasil de Governança Corporativa
(corporate governance-
linked equity interest fund)

Structuring of funds intended for acquiring equity interests in companies that could move up to be global corporate governance (pre-IPO) companies, with sound management essentials and open to enhancing their corporate government practices in addition to applying the concepts of self-sustainability and sufficiently developed to manage conflicts and deal with socioenvironmental issues.

376.1Net Equity in 2014 (R$ millions)(27.0)Profitability in 2014 (%)

Brasil Sustentabilidade FIP
Brasil Sustentabilidade FIP
(carbon credits-linked equity interest fund)

Structuring of funds intended to purchase equity interests in companies who activities are associated with projects that have the potential to generate carbon credits, by incorporating sustainability principles in their investment decisions.

232.5Net Equity in 2014 (R$ millions)4.7Profitability in 2014 (%)

Capital Markets and Treasury

Banco do Brasil operates on the Brazilian capital markets through BB Banco de Investimento (BB BI) and overseas through BB Securities (New York, London and Singapore). Purchase and sales of stocks and shares for retail customers of the branch network, internet (home broker) and mobile devices saw a turnover of R$13.1 billion, of which R$12 billion via the home broker service.

Last year, BB was lead manager on 75 issues of fixed income securities, including promissory notes and debentures, amounting to R$14.9 billion, taking 3rd place in the consolidated origination ranking of the ANBIMA, with a 16.1% market share. There were 30 bond issue transactions amounting to US$30.0 billion, lifting BB into the position of market leader. Business involving Certificates of Real Estate Receivables (CRI), FIDC and Certificates of Agribusiness Receivables (CRA) amounted to R$458.4 million on the securitization market.

Besides constantly operating with customers, BB plays an important role in the effort to develop the Brazilian capital market, with the aim of advancing the growth of small and mid-size enterprises. Within this context BB participates in different roundtables and working groups, especially the Minor Offerings Committee consisting of BM&FBOVESPA, the CVM, the BNDES and a variety of market players. The suggestions of this committee led to the drafting of Law 13,043/14, which provides for tax incentives for investors in assets in the access market and lower costs for issuers.

Of the transactions overseas, two stand out. The Bank was lead manager, for the first time, in the €1 billion, seven-year issue by the Brazilian Treasury: the issue was almost three-times oversubscribed. BB also closed the largest issue of perpetual bonds by an emerging country bank. The securities totaling US$2.5 billion were eligible for comprising Tier 1 capital under the rules of Basel III, and the demand from investors stood at US$12.3 billion.

The adoption of socioenvironmental criteria in advisory services for public share offerings takes place in the preparatory phase, when one seeks to prove that the customer is in compliance with labor and environmental legislations. When hiring partners for the purchase and sale of stocks, BB abides by the Supplier Relationship Policy and inserts socioenvironmental clauses in the agreements. GRI G4-SO9

Products with Socioenvironmental Features

BB Referenciado DI Social 50
BNDES Governo

A credit line intended for the states and the Federal District for investment in public works, equipment and facilities, aiming to deliver social benefits to the population affected by the initiatives.

347,914Total Portfolio in 2014 (R$ thousand)14Number of Transactions in 2014

BB Ações ISE Jovem FIC

A credit facility intended for municipalities, for the acquisition of machinery and equipment for use in road, highway and freeway works, in order to deliver social benefits to the population affected by the initiatives.

29,524Total Portfolio in 2014 (R$ thousand)14Number of Transactions in 2014

BB Multimercado Balanceado LP Jovem FIC
Programa Modernização da Administração Tributária e da Gestão dos Setores Sociais Básicos (PMAT)

Financing to support municipal government investment projects intended for modernizing taxation management and for improving the quality of public expenditures, so as to promote efficient public management that leads to higher revenues and/or lower unit costs of the services provided to society.

3,689Total Portfolio in 2014 (R$ thousand)1Number of Transactions in 2014

BB Multimercado Global Acqua LP Private FI
Operations with States

Financing, using external on-lending or the Bank’s funds, for programs and actions contemplated in the states’ strategic planning processes. Leads to social impacts by improving the population’s quality of life.

2,517,318Total Portfolio in 2014 (R$ thousand)4Number of Transactions in 2014

Caminho da Escola

A credit line intended for both public and private law businesses for the acquisition of new vehicles for the daily transportation of elementary public school students, priority being allocated to those residing in rural areas.

23,904Total Portfolio in 2014 (R$ thousand)23Number of Transactions in 2014