Page 1

Banco do Brasil S.A. – Management Discussion and Analysis / 4Q20 Earnings Summary Adjuste Net Income rise 6.1 % in 4Q20 Banco do Brasil adjusted net income was R $ 3.7 billion in the 4Q20 , up 6.1 % over 3Q20 , and down 20.1 % over 4Q19 . The Market ROE in the quarter was 12.1 % . In comparison with 3Q20 , the result was mainly influenced by the reduction 6.3 % in the Alll Expanded View , by the positive performance of Fee Income , which grew 1.5 % and the Net Interest Income which grew 1.1 % , partially impacted by increased 3.7 % Administrative Expenses in and legal Risk in 117.7 % In annual comparison , the adjusted net income decreased 22.2 % , totalizing R $ 13.9 billion , mainly due to the increase in ALLL Expanded View in 47.6 % , mainly impacted by the anticipation of prudential provisions that added up to R $ 8.1 Billion . Despite this , the Pre - Tax and Pre - Provision Earnings ( PPOP ) grew 5.9 % , which demonstrates the resilience of operating performance in the period . Positive highlights in year - over - year comparison ( 2020/2019 ) was + 5.1 % NII's increase , the stability of administrative expenses ( + 0,1 % ) and the reduction of 51,1 % in legal risk . Annual Market ROE was 12,0 % . 1