1. 2Q11 Results
New Estrategy Execution:
New Products and Stronger management team
Well-capitalized bank, structured for new growth cycle
São Paulo, August 8, 2011 – Banco Indusval S.A., financial institution focused on corporate
lending, operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and
Futures Exchange - BM&FBOVESPA under tickers IDVL3 and IDVL4, announces its financial results
for the second quarter (2Q11) and half year (1H11) 2011.
Highlights
IDVL4: R$ 8.25 per share
Closing: 08/08/2011 Capital increase of R$ 201 million, equivalent to 21,9
million subscription receipts admitted for negotiation at
Total stock: 41,212,984
+ Subscription receipts: 21,892,709 BM&FBOVESPA under tickers IDVL9 (ON) and IDVL10
- Treasury stock: (746,853) (PN), to be converted into shares upon the approval of the
62,358,840 capital increase by the Central Bank of Brazil.
Market Cap: R$ 514.5 MM
The new Executive Board, together with their teams,
defined the goals and action plans, under the Bank’s new
Conference Calls/ Webcasts: vision. The action plan aims at resuming growth with an
08/09/2011 improved credit quality and includes:
- the strengthening of the commercial team – Middle
In English
market and Corporate – hiring and training – to meet
10h00 (US EST)/ 11h00 (Brasília)
Connection USA:+1 786 924-6977 our customers needs with multiproduct offering;
Connection Brazil:+55 11 4688-6361
Code: Banco Indusval - development of new more cost-efficient products to
expand offer, generating recurring fee income;
In Portuguese - Creating franchise value on certain productive chains;
9h00 (US EST)/ 10h00 (Brasília)
- Funding sources diversification, including J.P.Morgan’s
Phone: +55 11 4688-6361
Code: Banco Indusval credit line disbursement in May.
During this 2nd quarter, while we were preparing the
Website: www.indusval.com.br/ir
structure, the loan portfolio growth 6%, equivalent to
26% on an annual basis.
1/18

2. Summary
Message from the Management ........................................................................ 3
Key Indicators................................................................................................ 5
Operating Performance ................................................................................... 6
Credit Portfolio ............................................................................................... 8
Funding ....................................................................................................... 11
Liquidity ...................................................................................................... 12
Capital Adequacy.......................................................................................... 13
Risk Ratings................................................................................................. 13
Capital Market.............................................................................................. 13
BALANCE SHEET .......................................................................................... 16
INCOME STATEMENT .................................................................................... 18
2/18

3. Message from the Management
The first half of 2011 marks a new chapter in Indusval’s history. During the course of its 43-year
history, we passed through decisive moments in the evolution of our business: from Brokerage to
Bank in 1991; the merger with Multistock in 2003; the sale of the Consumer Credit operation in
2004; the opening of the first branches in 2006; the IPO in 2007; the strategy review in 2010; and
in March 2011, we signed investment agreements with Warburg Pincus, one of the world’s leading
private equity funds; with Sertrading, one of Brazil’s biggest foreign trade service companies; we
strengthened our management team; acquired Serglobal Comércio de Cereais Ltda., a company
which activities generate agricultural bonds; and signed a financing line and an agreement with
J.P.Morgan for possible future minority interest in the Bank. To mark this new phase, incorporating
the new vision, new partnerships, new values, as well as the new strategy, we started operating
under a new brand: BANCO INDUSVAL & PARTNERS.
As a result of these developments announced at the end of the first quarter, we implemented a
series of initiatives in the second quarter focusing on the Company’s organizational restructuring to
resume growth: we defined a new Vision - “To be an innovative bank with excellence in corporate
credit and deep understanding of our clients’ businesses and industries the operate, becoming also
one of the leading players of the high-growth Brazilian corporate bond market”; we elected our
Executive Board, compounded by one of the best management teams in the market; we set our
goals and action plans, in a participative way, involving more than 150 people from all areas, aiming
at a quality leap and the development of new products and services to serve as the basis for our
growth and profitability in the medium and long run; we started the franchise value creation process
in certain productive chains, improving our understanding of selected industries, targeting at
producing a recurring income flow; and, we consolidated our values by incorporating to the Ethics
and Credibility legacy, new concepts like Partnership, Excellence, Inovation and Team work, being
constantly Result oriented.
From June we started the execution and follow-up on the plans and established goals. Our efforts
begin to produce results, although we are construing an organization that aims to achieve
transformational and consistent results in the medium and long term. In this last quarter, we
reached a 6% loan portfolio growth, equivalent to 26% annualized, led by clients with annual
revenues of over R$400 million, from now called “Corporate” clients in our bank. These operations
now represent 15% of the expanded credit portfolio, which, considering sureties, guarantees and
letters of credit issued amounting to R$68.5 million and agricultural bonds (CPR) amounting to
R$37.0 million, came in at R$2.1 billion. Though agricultural bonds represent exposure to
agribusiness credit, they are classified as Marketable Securities in accordance with Brazilian Central
Bank regulations due to their negotiability.
As expected, and reflecting, in great extent, loans granted in previous years, that were highly
provisioned for last march, we accounted for operations overdue more than 60 days totalling
R$137.0 million which are covered by allowance for loan losses amounting to R$196.6 million,
signifying a coverage ratio of 143.5%.
Thanks to the high liquidity maintained over the past few years, funding volume remained stable at
R$2.2 billion. Our funding cost droped some basis points during second quarter, inspite of market
deterioration, due to (i) the capital increase and the entrance of new partners and (ii) the reduction
in the volume of higher cost sources such as Time Deposits with Special Guarantee (DPGE) and
giving way to lower cost alternatives like Agribusiness Letters of Credit (LCA). LCAs are backed by
Rural Product Bills (CPR) generated from the takeover of Serglobal Cereais’ operations. Despite the
challenging scenario, the international area increased funding through correspondent banks to meet
the 15% growth of the Trade Finance portfolio in dollar terms. Our total funding also includes the
line of credit granted by J.P. Morgan in May. The diversification of sources and investors aims at
lowering the total funding costs.
Liquidity remains high, with free cash of R$923.3 million, which enables us to grow without the
pressure for funding and use the leverage cushion provided by a comfortable capital adequacy ratio
3/18

4. of 21.6%, in order to return to profitability in a healthy and sustainable manner in the medium and
long terms.
It is worth mentioning that although new members of the Executive Board and other professionals
were hired, recurring personnel expenses were not significantly increased. They went from R$ 16,0
million in the 1Q11 to R$ 16,7 million in 2Q11 as, to a greater extent, there were mainly
adjustments to key positions to meet the new guidelines of the Bank, without a relevant increase in
the number of employees for the management’s constant concern not to inflate the Company’s
expenses.
The Bank’s bottom line and return on equity remained low in the second quarter as a result from the
management’s conservative liquidity and provisioning strategies. Additionally, the impact of the new
strategy and management team is not yet reflected in the figures disclosed. Higher level returns
shall be achieved during the next quarters as the expansion of the asset base reflects in increased
income, with improved credit quality and fee income generated in the product area.
4/18

5. Key Indicators
The financial and operating information presented in this report are based on consolidated financials prepared in millions of
Reais (local currency), according to Brazilian GAAP (BRGAAP).
Results 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10 1H2011 1H2010 1HS11/1H10
Financial Intermediation Income 127.0 118.1 110.4 7.5% 15.1% 245.1 224.7 9.1%
Financial Interm. Expenses bef. ALL (89.1) (77.8) (64.6) 14.5% 37.9% (167.0) (132.4) 26.2%
Result from Financial Int. before ALL 37.9 40.3 45.7 -6.0% -17.2% 78.2 92.4 -15.4%
1
ALL Expenses (1.5) (101.6) (12.7) -98.5% -87.9% (103.2) (24.1) 327.9%
Result from Financial Intermediation 36.3 (61.4) 33.1 59.2% 9.9% (25.0) 68.3 -136.6%
Recurring Operating Result 10.0 (87.5) 12.1 111.4% -17.8% (81.5) 22.9 -455.5%
Non-Recurring Operating Expenses (1.2) (2.7) - -56.3% n.m. (3.9) (0.4) n.m.
Operating Result 8.8 (90.3) 12.1 109.7% -27.6% (81.5) 22.9 -455.5%
Net Profit (Loss) 5.1 (54.5) 8.3 109.3% -38.8% (49.4) 15.6 -416.6%
Assets & Liabilities 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10
Loan Portfolio 2,003.2 1,890.2 1,686.6 6.0% 18.8%
2
Expanded Loan Portfolio 2,108.7 1,994.3 1,762.6 5.7% 19.6%
Cash & Short Term Investments 566.4 567.1 353.2 -0.1% 60.4%
Securities and Derivatives 1,764.3 1,825.9 937.8 -3.4% 88.1%
Sec.& Derivatives excl. Agro Sec. 1,727.3 1,798.2 937.8 -3.9% 84.2%
Total Assets 4,432.8 4,346.8 3,043.8 2.0% 45.6%
Total Deposits 1,661.2 1,759.0 1,373.3 -5.6% 21.0%
Open Market 1,361.3 1,312.8 561.5 3.7% 142.5%
Foreign Borrowings 414.4 350.7 414.2 18.2% 0.1%
Domestic On-lending 154.0 137.0 93.1 12.4% 65.5%
Shareholders’ Equity 566.5 563.7 429.7 0.5% 31.9%
Performance 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10 1H2011 1H2010 1HS11/1H10
Free Cash 923.3 1,027.0 695.5 -10.1% 32.8%
NPL 60 days/ Loan portfolio 6.8% 6.1% 2.6% 0.7 p.p. 4.2 p.p.
NPL 90 days/ Loan portfolio 6.3% 4.6% 2.2% 1.7 p.p. 4.1 p.p.
Basel Index 3 21.6% 23.7% 20.3% -2.0 p.p. 1.3 p.p.
ROAE 3.6% -37.3% 7.9% 40.9 p.p. -4.3 p.p. 0.0% 0.0% 0.0 p.p.
Net Interest Margin (NIM) 3.8% 4.6% 6.8% -0.8 p.p. -3.0 p.p. 4.1% 6.9% -2.7 p.p.
Adjusted Net Interest Margin (NIMa) 5.2% 5.9% 8.5% -0.7 p.p. -3.3 p.p. 5.5% 8.4% -2.9 p.p.
4
Efficiency Ratio 79.6% 80.9% 55.2% -1.3 p.p. 24.4 p.p. 80.2% 58.1% 22.2 p.p.
Recurring Efficiency Ratio 75.9% 72.3% 57.5% 3.6 p.p. 18.4 p.p. 74.1% 58.8% 15.2 p.p.
Other Information 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10
Number of Corporate Clients 1,194 707 694 68.9% 72.0%
Number of Employees 376 357 349 5.3% 7.7%
Details in the respective sessions of this report
1
additional Loan loss Allowances included
2
guarantees issued and agro securities included
3
capitalization of March 2011 under reserves
4
non-recurring expenses included
Banco Indusval & Partners (BI&P) is a commercial bank listed at Level 1 Corporate Governance of the BM&FBOVESPA,
with 43 years of experience in the financial markets, focusing on local and foreign currency corporate loan products.
The Bank relies on a network of 11 branches strategically located in economically relevant Brazilian regions, including
an offshore branch, its brokerage firm operating at the São Paulo Stock, Commodities and Futures Exchange -
BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which generates agricultural bonds.
5/18

6. Operating Performance
Profitabilty
Financial Intermediation 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10 1H2011 1H2010 1HS11/1H10
Financial Intermediation Revenues 127.0 118.1 110.4 7.5% 15.1% 245.1 224.7 9.1%
Loan Operations 62.1 64.3 65.6 -3.5% -5.4% 126.4 126.8 -0.3%
Loans & Discounts Receivables 57.5 60.3 59.9 -4.7% -4.0% 117.8 111.9 5.2%
Financing 3.4 3.6 4.3 -6.7% -22.3% 7.0 10.9 -35.8%
Other 1.2 0.4 1.4 200.2% -11.3% 1.7 4.0 -58.2%
Securities 63.7 40.7 18.9 56.4% 236.9% 104.4 43.2 141.8%
Derivative Financial Instruments (6.4) 5.4 6.8 -218.0% -195.0% (1.0) 8.4 -111.6%
FX Operations Result 7.6 7.7 19.1 -0.2% -59.9% 15.3 46.4 -67.0%
Financial Intermediation Expenses 90.7 179.5 77.3 -49.5% 17.3% 270.1 156.5 72.7%
Money Market Funding 85.0 72.0 46.0 18.1% 84.9% 157.0 84.8 85.2%
Time Deposits 51.5 46.4 34.2 11.0% 50.6% 97.9 63.7 53.6%
Repurchase Transactions 30.4 22.3 10.6 36.5% 187.2% 52.7 18.9 178.9%
Interbank Deposits 3.1 3.3 1.2 -7.1% 161.5% 6.4 2.2 196.3%
Loans, Assign. & Onlending 4.2 5.9 18.7 -29.2% -77.8% 10.0 47.6 -79.0%
Foreign Borrowings 2.2 3.6 16.8 -40.6% -87.2% 5.8 43.1 -86.6%
Dom. Borrowings+Onlending 2.0 2.2 1.9 -10.8% 6.5% 4.2 4.5 -6.7%
Allowance for Loan Losses 1.5 101.6 12.7 -98.5% -87.9% 103.2 24.1 327.9%
Financial Intermediation Result 36.3 (61.4) 33.1 159.2% 9.9% (25.0) 68.3 -136.6%
Result from Financial Intermediation, detailed in notes 15.a and 15.b to the quarterly financial
statements, increased to R$36.3 million at the end of the quarter, thanks to the growth of financial
intermediation revenue, reflecting the higher income from securities that, net of results from
financial derivative instruments, represented 45% of total financial intermediation revenue. This
revenue was offset by funding expenses, which were up due to the growth in the average funding
balance, from R$1,147.5 million in 2Q10 and R$1,581.4 million in 1Q11 to R$1,635.4 million in
2Q11, as well as the rise in the SELIC interest rate. Moreover, despite the slight decrease in the
quarter, the high cash level partly explains the higher revenue from securities operations, especially
those involving government bonds, as explained in note 5.b to the financial statements.
The improved result from financial intermediation in the quarter also reflects the lower allowance for
loan losses, given that the bank had already constituted additional provisions of R$67 million in the
previous quarter to safeguard the profitability of its future operations, which was partially used
during the quarter, as expected.
The result from the half year ended June 30, 2011 was a negative R$25 million, already offsetting a
substantial part of the provision expenses of R$103 million generated in 1Q11, of which R$67 million
were provisioned in excess of requirement, to be used during the course of the year with the aging
of the previous portfolio.
Net Interest Margin
Net Interest Margin 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10 1H2011 1H2010 1HS11/1H10
A. Result from Financial Int. before ALL 37.9 40.3 45.7 -6.0% -17.2% 78.2 92.4 -15.4%
1
A1'' Adjustment FX fluctuation (0.5) (1.5) 1.2 -66.6% -141.2% (1.9) 1.2 -264.8%
A.a Adj. Financial Interm Result before ALL 37.4 38.8 46.9 -3.7% -20.3% 76.2 93.6 -18.5%
B. Average Interest bearing Assets 4,084.3 3,583.1 2,754.3 14.0% 48.3% 3,833.7 2,737.2 40.1%
2
Adjustment for non-remunerated average assets (1,161.4) (913.7) (489.9) 27.1% 137.1% (1,037.5) (487.2) 112.9%
B.a Adj Average Interest bearing Assets 2,923.0 2,669.4 2,264.5 9.5% 29.1% 2,796.2 2,250.0 24.3%
Net Interest Margin (NIM) (A/B) 3.8% 4.6% 6.8% -0.8 p.p. -3.0 p.p. 4.1% 6.9% -2.7 p.p.
Adj.Net Interest Margin (NIMa) (Aa/Ba) 5.2% 5.9% 8.5% -0.7 p.p. -3.3 p.p. 5.5% 8.5% -3.0 p.p.
1
FX fluctuations accounted under other operating income (expenses)
2
Repos with volumes, tenors and rates equivalent in assets and liabilities
6/18

7. Net Interest Margin (NIM), after deducting the average balance of assets offset by a balancing item
of equal amount, rate and tenor in repo operations under liabilities and hence with no remuneration,
stood at 5.2% in 2Q11 and 5.5% in 1H11, reflecting the substantial free cash and the decrease in
revenue from loan operations due to defaults being over 60 days. This margin will increase during
the second half of the year with the growth of the credit portfolio in terms of both volume and
revenue. This growth also has a positive impact on the use of surplus cash.
Efficiency Ratio
Efficiency Ratio 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10 1H2011 1H2010 1HS11/1H10
Personnel Expenses 15.7 13.9 14.3 13.0% 9.7% 29.7 26.8 10.8%
Contributions and Profit-sharing 1.0 2.1 1.9 -51.1% -44.8% 3.1 4.4 -27.8%
Administrative Expenses 11.7 10.9 8.9 7.1% 30.2% 22.5 17.9 26.2%
Taxes 2.9 3.5 2.6 -17.5% 13.4% 6.5 5.8 12.3%
Other Operating Expenses 4.0 6.1 0.5 -34.0% 694.9% 10.1 4.0 152.6%
A1'- Recurring Operating Expenses 35.4 36.6 28.2 -3.3% 25.2% 71.9 58.7 22.5%
1
A1'' Adjustment FX fluctuation (0.5) (1.5) 1.2 -66.6% -141.2% (1.9) 1.2 -264.8%
A1- Adj. Recurring Operating Exp. 34.9 35.1 29.4 -0.6% 18.6% 70.0 59.9 16.8%
2
Personnel Expenses 0.7 2.2 - -69.0% n.m. 2.9 - n.m.
3
Administrative Expenses 0.5 0.5 - -0.8% n.m. 1.0 0.4 136.5%
A2- Total Adjusted Op. Expenses 1.2 2.7 - -56.3% n.m. 3.9 0.4 820.4%
A- Operating Expenses Total 36.1 37.8 29.4 -4.6% 22.6% 73.9 60.3 22.5%
Gross Income Fin. Interm. (w/o ALL) 37.9 40.3 45.7 -6.0% -17.2% 78.2 92.4 -15.4%
Income from Services Rendered 4.1 3.5 2.6 18.6% 55.3% 7.6 5.5 38.3%
Income from Banking Tariffs 0.2 0.2 0.3 1.3% -4.0% 0.5 0.4 7.2%
Other Operating Income 3.7 4.6 2.5 -18.4% 46.3% 8.3 3.5 134.5%
B- Operating Income Total 46.0 48.6 51.2 -5.4% -10.2% 94.5 101.9 -7.2%
Recurring Efficiency Ratio (A1/B) 75.9% 72.3% 57.5% 3.6 p.p. 18.4 p.p. 74.1% 58.8% 15.2 p.p.
Efficiency Ratio (A/B) 78.5% 77.9% 57.5% 0.6 p.p. 21.0 p.p. 78.2% 59.2% 18.9 p.p.
1
FX fluctuations accounted under other operating expenses
2
layoff and hiring expenses and events with employees
3
strategic consultancy, law and auditting firms
The Efficiency Ratio in 2Q11 was also impacted by non-recurring expenses in the amount of R$1.2
million (R$2.7 million in 1Q11) related to amounts and charges provisioned and/or paid as
severance pay to employees terminated and other expenses resulting from the corporate and
organizational restructuring, which totaled R$3.9 million in 1H11. The efficiency ratio, adjusted for
non-recurring expenses and exchange variation, stood at 75.9% in 2Q11 and 74.1% in 1H11,
considered high by Management, and should be normalized with the gradual increase in assets and
reduction in cash levels.
Net Profit
The net profit of R$5.1 million still reflects the non-recurring expenses related to the corporate
restructuring and the continuation of high liquidity, with lower impact from the allowance for loan
losses due to the provisions constituted in the previous quarter.
Net result in 1H11 was a R$49.4 million loss, partially offsetting the expenses with the allowance for
loan losses in the amount of R$103.2 million in the period.
7/18

8. Credit Portfolio
The Expanded Credit Portfolio, which stood at R$2.1 billion on June 30, 2011, includes sureties,
guarantees and letters of credit issued by the Bank, in addition to agricultural bonds generated from
the takeover of Serglobal Cereais’ operations. These operations resulted in a 6% growth of the
credit portfolio in the quarter and 20% in comparison with the same period last year.
Credit Portfolio by Product 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10
Loan Operations 1,622.9 1,527.2 1,365.3 6.3% 18.9%
Loans & Discounted Receivables 1,410.3 1,348.0 1,204.4 4.6% 17.1%
BNDES/ Finame 142.9 124.6 72.7 14.6% 96.5%
Direct Consumer Credit – used vehicles 3.6 4.8 9.9 -25.3% -63.5%
Financing in Foreign Currency 53.8 32.0 33.1 68.1% 62.6%
Other Financing 7.3 10.2 19.7 -28.6% -62.8%
Assignment with Co-obligation 4.9 7.5 25.5 -34.1% -80.8%
Advances on Foreign Exchange Contracts 371.5 353.8 314.1 5.0% 18.3%
Other Loans 8.8 9.2 7.2 -4.2% 23.6%
CREDIT OPERATIONS 2,003.2 1,890.2 1,686.6 6.0% 18.8%
Guarantees Issued (L/Gs and L/Cs) 68.5 76.4 76.0 -10.3% -9.8%
Agricultural Securities (CPRs) 37.0 27.7 - 33.5% n.m.
EXPANDED CREDIT PORTFOLIO 2,108.7 1,994.3 1,762.6 5.7% 19.6%
Allowance for Loan Losses (196.6) (212.6) (107.8) -7.5% 82.3%
Loan operations represented 77% of the expanded portfolio, led by loans and discount of
receivables, which accounted for 67%. Trade finance operations, which include foreign currency
loans (R$53.8 million) and advances on foreign exchange contracts (R$371.5 million), totaled
R$425.4 million, equivalent to 20% of the credit portfolio, up 10% in the quarter and 22% in 12
months, despite the 4.15% and 6.31% appreciation of the Brazilian Real in the respective
comparison periods. In U.S. dollar terms, the trade finance portfolio stood at R$272 million, up 15%
in the quarter and 41% in 12 months, from US$237 million on March 31, 2011 and US$193 million
on June 30, 2010.
The portfolio also includes BNDES/FINAME onlendings, which increased 15% and 97%, respectively,
in the comparison periods; the run-off balance from the Direct Consumer Credit – Used Vehicles
portfolio discontinued in October 2008; and, the portion of car financing assigned to other financial
institutions under our credit risk coverage (co-obligation), which together represent only R$8.5
million, or less than 0.5% of the Expanded Credit Portfolio.
The guarantees issued – sureties, guarantees and import letters of credit – totaled R$68.5 million
and represent 3.2% of the expanded credit portfolio, while agricultural bonds, represented by CPRs
and recorded under ‘Marketable Securities’ in accordance with Brazilian Central Bank regulations due
to their negotiability, represented 1.8% of the portfolio. Currently, the agricultural bonds portfolio
mainly consists of coffee certificates and will grow with the diversification to other agricultural
commodities.
As shown below, the middle market segment (annual revenue of between R$40 million and R$400
million) represents 76% of the expanded credit portfolio, up 3% in the quarter and stable in
comparison with June 2010. The Corporate segment (annual revenue of over R$400 million),
created in July 2010, accounts for 15% of the portfolio, up 21% in the quarter.
8/18

9. Credit Portfolio By Cliente Segment 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10
Middle Market 1,604.4 1,554.5 1,602.3 3.2% 0.1%
Local Currency - Real 1,278.4 1,241.3 1,255.1 3.0% 1.9%
Loans & Discounted Receivables 1,144.0 1,118.6 1,181.8 2.3% -3.2%
Financing 0.5 10.2 0.6 -95.5% -19.9%
BNDES / FINAME 134.0 112.4 72.7 19.2% 84.3%
Foreign Currency 326.0 313.1 347.2 4.1% -6.1%
Corporate 322.2 267.2 - 20.6% n.m.
Local Currency - Real 222.9 194.5 - 14.6% n.m.
Loans & Discounted Receivables 214.0 182.3 - 17.4% n.m.
BNDES / FINAME 8.9 12.2 - -27.2% n.m.
Foreign Currency 99.4 72.7 - 36.6% n.m.
Other 76.6 68.6 84.3 11.7% -9.1%
Consumer Credit – used vehicles 8.5 11.7 23.3 -26.9% -63.4%
Acquired Loans & Financing 59.2 47.7 53.8 24.2% 10.0%
Other Loans 8.8 9.2 7.2 -4.2% 23.6%
CREDIT PORTFOLIO 2,003.2 1,890.2 1,686.6 6.0% 18.8%
Guarantees Issued 68.5 76.4 76.0 -10.3% -9.8%
Agricultural Securities 37.0 27.7 0.0 33.5% n.m.
EXPANDED CREDIT PORTFOLIO 2,108.7 1,994.3 1,762.6 5.7% 19.6%
Allowance for Loan Losses (196.6) (212.6) (107.8) -7.5% 82.3%
Credit Portfolio according to note 6 to the financial statements
The credit portfolio, which includes loans and financing operations in Brazilian Real and trade finance
operations, totaled R$2.0 billion, as detailed in note 6 to the financial statements, broken down as
follows:
Industry %
Food & Beverage 18.2%
Agribusiness 16.0%
Construction 11.5%
Financial Institutions 7.2%
Civil Construction 5.4%
Transportation & Logistics 4.1%
Textile, Apparel and Leather 4.1%
Education 3.2%
Metal Industry 3.0%
Power Generation & Distribution 2.9%
Chemical & Pharmaceutical 2.9%
Oil and Biofuel 2.8%
Individuals 2.2%
Pulp & Paper 2.2%
Financial Services 2.0%
Retail & Wholesale 1.7%
Wood & Furniture 1.7%
Other Industries (*) 9.2%
TOTAL 100.0%
(*) Other Industries: less than 1.3% individual share in the
portfolio
9/18

10. By Economic Activity By Segment
Other Retail &
Services Individuals Other
22% 7% 4%
Financial Corporate
Cos 16%
5%
Commerce Middle
10% Market
Industry
80%
56%
By product By Client Concentration
BNDES
Onlendings Other 10 Largest
7% 24% 20%
Loans & Trade
Discounts Finance
69% 20%
Guarantees 61 - 160 11 - 60
Other Issued 23% 33%
1% 3%
By Maturity By Guarantee
Pledge
91 to 180 Monitored
21% 181 to 360 7%
13%
Pledge /Lien
20%
Real State
Above 3%
Rec eivables
Up to 90 360 days Vehicles
69%
days 30% 1%
36%
Loan Portfolio Quality
Rating AA A B C D E F G H Prov /
Comp. TOTAL Cred
Required Provision % 0% 0.5% 1% 3% 10% 30% 50% 70% 100% %
O/S Loans 84.1 630.5 564.5 442.3 78.3 87.7 23.6 4.5 87.8 - 2,003.2
2Q11
9.8%
Allowance for Loan Losses 0.0 3.2 5.6 13.3 7.8 26.3 11.8 3.2 87.8 37.7 196.6
O/S Loans 35.4 666.1 476.4 430.8 87.5 91.7 22.2 10.1 69.9 - 1,890.2
1T11
11.2%
Allowance for Loan Losses 0.0 3.3 4.8 12.9 8.8 27.5 11.1 7.1 69.9 67.2 212.6
O/S Loans 0.0 548.2 466.9 459.4 95.4 55.1 20.0 8.9 32.8 - 1,686.6
2Q10
6.4%
Allowance for Loan Losses 0.0 2.7 4.7 13.8 9.5 16.5 10.0 6.2 32.8 11.6 107.8
Loan and financing operations in Brazilian Real and trade finance operations totaled R$2.0 billion, of
which 86% carried risk classifications of between AA and C. Operations classified between D and H
totaled R$281.8 million, equivalent to 14% of this portfolio and included loans renegotiated with
clients in the amount of R$247.3 million, mostly classified between D and H even when not overdue.
The balance of loans overdue more than 60 days totaled R$137.0 million, equivalent to 6.8% of the
credit portfolio, while the balance of loans overdue more than 90 days stood at R$126.2 million,
equivalent to 6.3% of the credit portfolio (Non-Performing Loans over 90 days).
10/18

11. > 60 days > 90 days
Default by segment 2Q11 1Q11
2Q11 1Q11 2Q11 1Q11
Total Credit Portifolio NPL %T NPL %T NPL %T NPL %T
Middle Market 1,604.4 1,554.5 134.1 8.4% 112.1 7.2% 123.7 7.7% 84.2 5.4%
Large Companies 322.2 - - - -
267.2 - - - -
Other 76.6 68.6 2.9 3.7% 3.8 5.5% 2.5 3.2% 3.4 4.9%
TOTAL 2,003.2 1,890.2 137.0 6.8% 115.9 6.1% 126.2 6.3% 87.6 4.6%
Allowance Loan Losses (ALL) 196.6 212.6
ALL / NPL - 143.5% 183.4% 155.80% 242.8%
ALL/ Loan Portfolio 9.8% 11.2% - - - -
The table above shows that the balance of allowance for loan losses, amounting to R$196.6 million,
corresponds to 9.8% of the credit portfolio, providing coverage of 143% of loans overdue more than
60 days and 156% of loans overdue more than 90 days.
Funding
Funding remained practically stable in relation to the previous quarter, for a total of R$ 2.2 million,
81.4% of which in Real and 18.6% in foreign currency.
Total Funding 2Q11 1T11 2Q10 2Q11/1Q11 2Q11/2Q10
Total Deposits 1,661.2 1,759.0 1,373.3 -5.6% 21.0%
Time Deposits 665.4 680.5 749.2 -2.2% -11.2%
Insured Time Deposits (DPGE)* 717.1 830.0 525.4 -13.6% 36.5%
Agribusiness & Bank Notes 136.6 95.9 16.2 42.5% 743.8%
Interbank Deposits 77.6 113.5 45.7 -31.7% 69.6%
Demand Deposits and Other 64.5 39.1 36.8 64.9% 75.4%
Domestic Onlending 154.0 137.0 93.1 12.4% 65.5%
Foreign Borrowings 414.4 350.7 414.2 18.2% 0.1%
Trade Finance 357.4 331.9 304.4 7.7% 17.4%
Other Foreign Borrowings 57.0 18.8 109.8 202.9% -48.1%
TOTAL 2,229.6 2,246.7 1,880.6 -0.8% 18.6%
Funding in Real chiefly consists of deposits (74%), mainly through the issue of Bank Deposit
Certificates (CDB) (30%) and Time Deposits with Special Guarantee (DPGE) (32%). At the end of
the quarter, Agribusiness Letters of Credit (LCA) represented 6% of total funding, versus 4% in
1Q11 and less than 1% in 2Q10. The increase in the share of LCAs is tied to the increase in the
agricultural bond positions held consequent to the acquisition of Serglobal, which serve as collateral
for cheaper funding sources than CDBs and, especially, DPGEs, besides enabling greater
diversification in local currency funding. The Bank has voluntarily reduced the volume of DPGEs in
order to further reduce its funding costs, given the funding alternatives available at the moment.
The average term of deposits increased to 845 days from issue (+39 days) and 571 days from the
close (+39 days), as follows:
Avg term from Avg term
Type of Deposit
issuance to maturity1
Time Deposits 602 361
Interbank 244 157
Time Deposits Special Guarantee (DPGE) 1,245 891
Agribusiness & Bank Notes 199 87
Portfolio of Deposits 2 845 571
1 from June 30, 2011
2 average weighted by volume
11/18

12. Deposits
By Type By Investor By maturity
de 1 a
81
Empresas 360 dias
Time
Demand 23% Inst . Finan. 13%
Deposit
4% 8%
40%
Interbk Pessoa de 91a
1 dias
80 > de 360
5% Fí sica
14% 17% dias
ALC+B 49%
Time
N Out ros
Deposit Inv. Inst it .
8% 6%
(DPGE) 49% < 90 dias
43% 21%
Foreign borrowings are mainly related to the Trade Finance Portfolio and are financed through lines
granted by foreign correspondent banks, which totaled R$357.4 million on June 30, 2011, the loan
from J.P. Morgan in May, totaling R$38.7 million, and the balance of IFC’s A loan, amounting to
R$18.4 million, maturing in September. Exposure to interest rates and foreign currency is
completely hedged against currency and interest rate fluctuations since the loan disbursement.
Free Cash
Liquidity
1,027 923
On June 30, 2011, cash totaled R$2,284.6 million and, 707
excluding money market funding (R$1,361.3 million), s
n
o
i
l
resulted in free cash of R$923.3 million, equivalent to l
i
M
55.6% of total deposits. $
R
2Q10 1Q11 2Q11
Capital Adequacy
The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk
in their operations. In this context, the Central Bank of Brazil has stipulated that banks operating in
the country should maintain a minimum percentage of 11.0%, calculated according to the Basel
Accord regulations, which provides greater security to Brazil’s financial system against oscillations in
economic conditions.
The following table shows Banco Indusval S.A.’s position in relation to the Central Bank’s minimum
capital requirements:
Basel Index 2Q11 1Q11 2Q10 2Q11/1Q11 2Q11/2Q10
Total Capital 566.5 563.7 429.7 0.5% 31.9%
Required Capital 288.0 261.8 232.5 10.0% 23.9%
Credit Risk allocation 261.6 240.0 213.3 9.0% 22.6%
Market Risk Allocation 11.3 6.6 3.2 70.8% 255.0%
Operating Risk Allocation 15.2 15.2 16.1 0.0% -5.6%
Excess over Required Capital 278.5 301.9 197.1 -7.8% 41.3%
Basel Index 21.6% 23.7% 20.3% -2.0 p.p. 1.3 p.p.
The reference equity includes the capital subscription of R$201 million in March 2011, held in the
"capital increase" account until its conversion into stock after approval from the Brazilian Central Bank.
12/18

13. Risk Ratings
Agency Classification Observation Last Report Financial Data
B+/Positive/B Global Scale
Standard & Poors Dec. 28, 2010 Sept. 30, 2010
brBBB+/Positive/brA-3 Local Scale - Brazil
Financial Strength: D- Stable
Moody's Ba3/Stable/Not Prime Global Scale Nov. 25, 2010 Sept. 30, 2010
A2.br/Stable/BR-2 Local Scale - Brazil
FitchRatings BBB/Stable/F3 Local Scale - Brazil Aug. 3, 2011 March 31, 2011
10,57 Riskbank Index
RiskBank Jul. 15, 2011 March 31, 2011
Ranking: 32 Low Risk Short Term
Capital Market
Total shares
On June 30, 2011, Banco Indusval S.A. had a total of 41,212,984 shares, of which 27,000,000 were
common shares (IDVL3) and 14,212,984 were preferred shares (IDVL4), with 746,853 held in
treasury. In addition, there are 21,892,709 subscription receipts relating to the capital increase of
R$ 201 million in March 2011, of which 9,945,649 pertain to common shares (IDVL9) and
11,947,060 pertain to preferred shares (IDVL10). The subscription receipts, available for trading on
the Bovespa, will be converted to shares immediately after approval from the Brazilian Central Bank,
increasing the total number of shares to 63,105,693.
Share Buyback Program
The 4th Share Buyback Program for the acquisition of up to 1,301,536 preferred shares, approved
by the Board of Directors on August 10, 2010, is effective until August 9, 2011. Indusval S.A. CTVM
is the intermediary for this program. As of June 30, 2011, a total of 772,453 preferred shares
(IDVL4) had been acquired under the program.
Free Float
Number of shares as of 06.30.2011
Corporate Controling
Type Management* Treasury Free Float %
Capital Group
Common 27.000.000 17.215.278 2.395.619 0 7.389.103 27,4%
Preferred 14.212.984 497.578 116.448 746.853 12.852.105 90,4%
TOTAL 41.212.984 17.712.856 2.512.067 746.853 20.241.208 49,1%
* This position includes members of the board of directors and of the executive board in Office and the ones elected in the AGM held on April
29 and BDM of May 6 to take office afeter the Central Bank approval.
Number of subscription receipts as of 06.30.2011
Total of Controling
Type Management* Others
Recipts Group
Common 9.945.649 2.282.607 961.956 6.701.086
Preferred 11.947.060 27.811 211.937 11.707.312
TOTAL 21.892.709 2.310.418 1.173.893 18.408.398
Stock Option Plan
The following Stock Option Plans were approved for the Company’s executive officers and managers,
as well as individuals who provide services to the Company or its subsidiaries:
13/18

14. • Stock Option Plan I approved at the Extraordinary Shareholders’ Meeting held on March 26, 2008.
• Stock Option Plan II approved at the Extraordinary Shareholders’ Meeting held on April 29, 2011.
• Stock Option Plan III approved at the Extraordinary Shareholders’ Meeting held on April 29, 2011.
The aforementioned Stock Option Plans are filed in CVM’s IPE System and are also available in the
Company’s IR website.
The following table shows the options granted by Banco Indusval S.A. until June 30, 2011, under
Stock Option Plan I:
Quantity
Date Term for Exercise
Grace period Granted Exercised Extinct Not Exercised
Granted exercise Price R$
07/22/08 3 years 5 years 10.07 161,896 - - 161,896
02/10/09 3 years 5 years 5.06 229,067 25,600 10 203,457
02/22/10 3 years 5 years 8.56 525,585 - 15,263 510,322
08/06/10 3 years 5 years 7.72 261,960 - 2,524 259,436
02/09/11 3 years 5 years 8.01 243,241 - - 243,241
1,421,749 25,600 17,797 1,378,352
No option was granted till date under the Stock Option Plans II and III.
Shareholder Remuneration
On July 8, 2011, the Bank paid Interest on Equity in the amount of R$5.3 million for 2Q11, as
advance payment of the minimum mandatory dividend for fiscal year 2011, corresponding to
R$0.13097 per share. Total Interest on Equity paid in 1H11 was R$9.5 million, corresponding to
R$0.23574 per share.
Share Performance
Banco Indusval’s preferred shares (IDVL4) closed 2Q11 at R$ 9.13, for market cap of R$369.5
million, considering the shares as of June 30, 2011 and excluding treasury stock. The price of IDVL4
shares appreciated 0.55% in 2Q11 and 21.9% in 12 months, while the Ibovespa index dropped
9.9% and 1.9%, respectively.
Share Price Evolution in the last 12 months
130
120
110
100
90
IBOVESPA IDVL4
80
14/18

15. Liquidity and Trading Volume
The preferred shares of BI&P (IDVL4) were traded in 96.8% of the sessions in 2Q11 and 97.2% in
the past 12 months. In 2Q11, a total of 3.1 million IDVL4 shares were traded in over 789
transactions on the spot market, for total volume of R$ 28.1 million. In 12 months, the financial
volume traded on the spot market stood at R$108.7 million, totaling around 13 million preferred
shares in 3,957 trades.
Shareholder Base
Following is the breakdown of the Company’s capital before and after the private subscription of the
subscription rights in March 2011, held in subscription receipts (IDVL9 and IDVL10) until the capital
increase is approved by the Brazilian Central Bank:
Subscription
Shares Position
Receipts
IDVL3 IDVL4
Type of Shareholder IDVL3 IDVL4 IDVL9 IDVL10 % % TOTAL %
+IDVL9 +IDVL10
CONTROLING GROUP 17.215.278 497.578 2.282.607 27.811 19.497.885 53% 525.389 2% 20.023.274 32%
MANAGEMENT** 2.395.619 116.448 961.956 211.937 3.357.575 9% 328.385 1% 3.685.960 6%
FISCAL COUNCIL - - - - - 0% - 0% - 0%
TREASURY - 746.853 - - - 0% 746.853 3% 746.853 1%
FAMILIES 7.389.013 702.148 - - 7.389.013 20% 702.148 3% 8.091.161 13%
NATIONAL INVESTORS - 7.726.467 1.201.090 211.955 1.201.090 3% 7.938.422 30% 9.139.512 14%
FOREIGN INVESTORS - 2.423.451 4.891.304 11.413.043 4.891.304 13% 13.836.494 53% 18.727.798 30%
CORPORATES - 310.410 608.692 65.219 608.692 2% 375.629 1% 984.321 2%
INDIVIDUALS 90 1.689.629 - 17.095 90 0% 1.706.724 7% 1.706.814 3%
TOTAL 27.000.000 14.212.984 9.945.649 11.947.060 36.945.649 100% 26.160.044 100% 63.105.693 100%
* This position includes members of the board of directors and of the executive board in Office and the ones elected in
the AGM held on April 29 and BDM of May 6 to take office afeter the Central Bank approval.
15/18

16. BALANCE SHEET
Consolidated R$ '000
Assets 6/30/2010 3/31/2011 6/30/2011
Current 2,531,006 3,818,699 3,748,509
Cash 6,151 3,897 38,482
Short-term interbank investments 347,061 563,227 527,902
Open market investments 287,002 540,959 464,743
Interbank deposits 60,059 22,268 63,159
Securities and derivative financial instruments 934,809 1,819,265 1,756,439
Own portfolio 491,500 658,024 329,087
Subject to repurchase agreements 300,412 781,924 975,515
Linked to guarantees 111,767 134,012 205,552
Subject to the Central Bank - 198,683 208,038
Derivative financial instruments 31,130 46,622 38,247
Interbank accounts 3,415 2,106 2,864
Loans 828,346 842,536 929,773
Loans - private sector 840,325 890,506 968,410
Loans - public sector 17,828 4,247 -
(-) Allowance for loan losses (29,807) (52,217) (38,637)
Other receivables 372,762 539,599 442,316
Foreign exchange portfolio 370,408 397,698 395,888
Income receivables 77 13 32
Negotiation and intermediation of securities 5,493 63,055 54,569
Sundry 4,710 97,269 5,001
(-) Allowance for loan losses (7,926) (18,436) (13,174)
Other assets 38,462 48,069 50,733
Other assets 39,686 49,447 52,637
(-) Provision for losses (2,006) (2,505) (3,011)
Prepaid expenses 782 1,127 1,107
Long term 499,939 515,696 631,882
Marketable securities and derivative financial instruments 3,019 6,614 7,827
Linked to guarantees 37 31 62
Derivative financial instruments 2,982 6,583 7,765
Interbank Accounts 9,647 7,140 6,669
Loans 411,581 484,806 504,965
Loans - private sector 481,641 624,937 649,548
(-) Allowance for loan losses (70,060) (140,131) (144,583)
Other receivables 74,456 16,469 111,350
Trading and Intermediation of Securities 84 243 481
Sundry 74,404 17,994 111,053
(-) Allowance for loan losses (32) (1,768) (184)
Other rights 1,236 667 1,071
Permanent Assets 12,849 12,410 52,409
Investments 1,686 1,686 26,201
Subsidiaries and Affiliates - - 24,515
Other investments 1,686 1,686 1,842
(-) Loss Allowances - - (156)
Property and equipment 11,163 10,724 11,045
Property and equipment in use 2,179 2,192 2,192
Revaluation of property in use 3,538 3,538 3,538
Other property and equipment 12,014 12,511 13,452
(-) Accumulated depreciation 6,568 (7,517) (8,137)
Property and equipment - - 15,163
Goodwill - - 15,491
(-) Accumulated amortization - - (328)
TOTAL ASSETS 3,043,794 4,346,805 4,432,800
16/18

17. Consolidated R$ '000
Liabilities 6/30/2010 3/31/2011 6/30/2011
Current 1,897,737 2,780,139 2,838,089
Deposits 723,279 761,590 658,502
Cash deposits 36,248 38,240 64,539
Interbank deposits 45,737 105,087 71,395
Time deposits 640,755 617,356 522,568
Other 539 907 -
Funds obtained in the open market 561,458 1,312,773 1,361,341
Own portfolio 299,456 776,286 963,490
Third party portfolio 262,002 462,999 110,383
Unrestricted Portfolio - 73,488 287,468
Funds from securities issued or accepted 16,193 88,319 129,271
Agribusiness Letters of Credit & Bank Notes 16,193 88,319 129,271
Interbank accounts 683 475 1,391
Receipts and payment pending settlement 683 475 1,391
Interdepartamental accounts 12,066 9,004 8,369
Third party funds in transit 12,066 9,004 8,369
Borrowings 395,215 350,689 368,123
Foreign borrowings 395,215 350,689 368,123
Onlendings 36,270 44,025 48,564
BNDES 13,973 16,131 19,123
FINAME 22,297 27,894 29,441
Other liabilities 152,573 213,264 262,528
Collection and payment of taxes and similar charges 357 650 643
Foreign exchange portfolio 56,141 62,996 50,488
Taxes and social security contributions 3,489 9,590 7,812
Social and statutory liabilities 4,199 5,534 7,528
Negotiation and intermediation securities 32,644 77,938 150,505
Derivative financial instruments 48,876 45,398 37,724
Sundry 6,867 11,158 7,828
Long Term 715,878 1,002,235 1,027,567
Deposits 633,872 901,534 866,043
Interbank Deposits - 8,392 6,159
Time deposits 633,872 893,142 859,884
Funds from securities issued or accepted - 7,571 7,362
Agribusiness Letters of Credit & Bank Notes - 7,571 7,362
Loan obligations 18,972 - 46,306
Foreign loans 18,972 - 46,306
Onlending operations - Governmental Bureaus 56,791 92,984 105,410
Federal Treasure 17,485 12,694 12,081
BNDES 1,639 30,445 35,662
FINAME 34,316 47,852 56,247
Other Institutions 3,351 1,993 1,420
Other liabilities 6,243 146 2,446
Taxes and social security contributions 5,917 117 1,207
Derivative financial instrument 144 29 58
Sundry 182 - 1,181
Future results 501 701 605
Shareholders' Equity 429,678 563,730 566,539
Capital 370,983 568,665 572,396
Capital Reserve 1,375 2,540 3,039
Revaluation reserve 1,961 1,911 1,894
Profit reserve 65,313 55,812 55,812
(-) Treasury stock (9,010) (5,958) (5,958)
Asset valuation Adjustment (944) (553) (1,727)
Accumulated Profit / (Loss) - (58,687) (58,917)
TOTAL LIABILITIES 3,043,794 4,346,805 4,432,800
17/18

18. INCOME STATEMENT
R$ '000
Consolidated 2T10 1T11 2T11 1S10 1S11
Income from Financial Intermediation 110,359 118,123 127,005 224,745 245,128
Loan operations 65,630 64,312 62,078 126,783 126,390
Income from securities 18,905 40,713 63,692 43,177 104,405
Income from derivative financial instruments 6,750 5,437 (6,414) 8,388 (977)
Income from foreign exchange transactions 19,074 7,661 7,649 46,397 15,310
Expenses from Financial Intermediaton 77,300 179,487 90,659 156,467 270,146
Money market funding 45,959 71,972 84,978 84,751 156,950
Loans, assignments and onlendings 18,679 5,866 4,152 47,602 10,018
Allowance for loan losses 12,662 101,649 1,529 24,114 103,178
Gross Profit from Financial Instruments 33,059 (61,364) 36,346 68,278 (25,018)
Other Operating Income (Expense) (20,925) (28,900) (27,566) (45,354) (56,466)
Income from services rendered 2,646 3,466 4,109 5,477 7,575
Income from tariffs 250 237 240 445 477
Personnel expenses (14,333) (16,139) (16,419) (26,755) (32,558)
Other administrative expenses (8,949) (11,383) (12,151) (18,280) (23,534)
Taxes (2,580) (3,549) (2,927) (5,768) (6,476)
Result from affiliated companies - - (116) - (116)
Other operating income 2,548 4,570 3,728 3,538 8,298
Other operating expense (507) (6,102) (4,030) (4,011) (10,132)
Operating Profit 12,134 (90,264) 8,780 22,924 (81,484)
Non-Operating Profit (815) (483) (1,314) (831) (1,797)
Earnings before taxes ad profit-sharing 11,319 (90,747) 7,466 22,093 (83,281)
Income tax and social contribution (1,185) 38,394 (1,381) (2,132) 37,013
Income tax (75) (461) 614 87 153
Social contribution (45) (277) 371 52 94
Deferred fiscal assets (1,065) 39,132 (2,366) (2,271) 36,766
Statutory Contributions & Profit Sharing (1,871) (2,111) (1,032) (4,353) (3,143)
Net Profit for the Period 8,263 (54,464) 5,053 15,608 (49,411)
18/18