Banco Daycoval Announces Net Income of R$ 90.7 Million in 4Q11 and R$ 305.1 Million in 2011, ROAE of 18.8% for the Fourth Quarter

USA - English

• Brazil - Português

SAO PAULO, Feb. 14, 2012 /PRNewswire/ -- 4Q11 Highlights:

• Net Income of R$ 90.7 million in 4Q11, reaching R$ 305.1 million for the year of 2011, 11.1 % higher than in 2010;
• ROAE reached 18.8% in 4Q11 and the net financial margin (NIM-AR) (1) was 12.4 % in 4Q11;
• The balance of the Loan Portfolio was R$ 7,724.8 million in 4Q11, increasing 10.9 % over 3Q11;
• The Middle-Market portfolio grew by 16.4% in 4Q11, further increasing its share of the total portfolio, reaching 71.6% of the expanded loan portfolio(2);
• The balance of the Expanded Loan Portfolio (2) was up 13.3% on the quarter, closing 4Q11 at R$ 8,828.8 million, a substantial growth of 41.9% in the past 12 months;
• Total Funding reached R$ 7,861.2 million, an increase of 11.6% over the quarter and in line with the loan portfolio;
• 1st bank to conduct a public issuance of Banknotes, in the amount of R$ 249.9 million maturing in 2 years;
• Standard & Poor's raised Banco Daycoval's rating to BB+ for the Long-Term Global scale and AA for the Long-Term National scale;
• The Efficiency Ratio was 33.7%, which proves the adequate management of our operating costs;
• Basel Ratio of 16.5%, down 0.1 p.p. for the quarter;
• In December 2011, Daycoval filed at BM&FBovespa the request for migrating to Level 2 of Corporate Governance.

(1) This methodology includes exchange-rate variations on passive operations and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks and matched operations — repurchase agreements-tri-party repos outstanding

(2) Includes assignments, sureties and avals granted and the purchase of credit rights.

4Q11 Conference Call – Only in Portuguese
February, 14
4:30 PM (BR)
Other Countries/Dial In USA: (+55) 11 4688 6361*
Code: Banco Daycoval

About Banco Daycoval

Banco Daycoval S.A. is a financial institution that specializes in the Middle-Market segment and carries out significant activities in the retail business. Headquartered in Sao Paulo (SP), it has 31 branches in 18 states plus the Federal District in Brazil. The Bank, during the 4Q11 had an expanded credit portfolio of R$ 8,828.8 billion, total assets of R$ 12,104.7 billion and net income of R$ 90.7 million and R$ 305.1 million for the year. Following a conservative strategy, Daycoval has become well known for the high liquidity and low leverage indicated by its Basel II Ratio of 16.5% during 4Q11.

According to the national ranking of the Central Bank of Brazil (Bacen) in September 2011, Daycoval was listed in 16th place among private institutions in terms of net equity and in 22st position by volume of total assets. Daycoval also has important ratings from classification agencies at the local long-term level of "Aa1" from Moody's, "brAA" from Standard & Poor's, with a stable outlook, and "A+" from Fitch Ratings.

- For complete earnings release access website: www.daycoval.com.br/ri (english)

Contact:
Erich Romani
55-11-3138-1025

SOURCE Banco Daycoval S.A.