SOURCE: Banco Daycoval S.A.

Banco Daycoval S.A.

February 18, 2009 06:00 ET

Daycoval Announces 4Q08 Results

SÃO PAULO, BRAZIL--(Marketwire - February 18, 2009) - Banco Daycoval S.A. ("Daycoval" or "Bank") (BOVESPA: DAYC4) (ADR Level I: BDYVY) announced its results for the fourth quarter of 2008 (4Q08). Within the main highlights during the period are the following:

-- Recurring Net Income in 2008 totaled R$237.0 million, for growth of
   2.6% compared with 2007, resulting on a Recurring ROAE of 14.9% in the
   year versus 23.2% in 2007. In the 4Q08, Recurring Net Income amounted
   of R$36.7 million and Recurring ROAE was 9,4%;

-- Net interest margin (NIM) improved 1.6 percentage points (pp), rising
   to 11.4% in the fourth quarter of 2008 (4Q08) from 9.8% in 3Q08, mainly
   owing to the impact of repricing in the Bank's various operating
   segments. NIM of 2008 was 10.6%;

-- Income from loans operations totaled R$311.2 million in 4Q08, showing
   slight change compared with 3Q08 despite a 19.9% drop in credit
   portfolio volume (excluding assignments) in the same period;

-- Raise of US$28.0 million in 4Q08 from the external line of credit up
   to 3 years maturity with the US Department of Agriculture´s Export
   Credit Guarantee Program (GSM-102), provided in a period of reduced
   foreign funding liquidity and high volatility in the financial market;

-- Improve of the coverage index (amount of provision on past-due
   operations above 60 days) from 128.7% in 3Q08 to 144.3% in 4Q08,
   reflecting the higher increase on provisions compared with past-due
   operations during the quarter;

-- Maintenance of net cash on R$1.1 billion reinforces Daycoval's
   conservative strategy and liquidity;

-- Ratio of credit portfolio to equity of 2.2x and Basel Index of 28.2%,
   demonstrating low leverage and high capitalization.

-- Conference Call in english

    February 18, 2008
    12 noon (BR) (10.00 am US EST)
    Dial-In Number: +1 (412) 858 4600 / +1 (800) 860 2442
    Code: Banco Daycoval

-- For additional information access website: ir@daycoval.com.br

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