2. Disclaimer
All financial information presented herein is consolidated, including the Bank´s financial
statements, its subsidiaries, Credit Receivables Investment Fund Paraná Banco II (FIDC), the
insurers JMALUCELLI Seguradora, JMALUCELLI Seguradora de Crédito (pending SUSEP`s
approval), the reinsurer JMALUCELLI Re., JMALUCELLI Agenciamento and Paraná Administradora
de Consórcio. All information, except when otherwise indicated, is presented in the Brazilian
currency (in Reais) and was prepared based on the accounting practices g p pursuant to the
Brazilian Corporate Law, associated with the regulations and instructions issued by the National
Monetary Council (“CMN”), the Brazilian Central Bank (“BACEN”), the Brazilian Securities and
Exchange Commission ("CVM"), the National Council of Private Insurance (“CNSP”), the Brazilian
Private Insurance Authority (“SUSEP”) and the Accounting Standards Committee (“CPC”),
whenever applicable.
Information contained herein regarding future events is exposed to risks and uncertainties and is
subject to change, resulting from, among other factors: market behavior, Brazil’s economical and
political situation, and changes in legislation and regulations. Information presented herein is
entirely based on the expectations of the Bank’s Administration regarding its future performance,
and does not constitute a guarantee of performance.
2
3. Main Highlights
Net Income: Total Deposits in 2009:
R$ 29.1 million in 4Q09 R$ 997.2 million
81.4% vs. 4Q08 29.6% vs. 2008
R$ 104.3 million in 2009 6.6% vs. 3Q09
24.0% vs. 2008
Total Assets: Profitability:
R$ 2,823.1 million ROAE of 15.3% (4Q09) and 13.0% (2009)
6.1% vs. 3Q09 ROAA of 4.3% (4Q09) and 4.2% (2009)
21.8% vs. 2008
NIM of 14.3% (4Q09) and 13.5% (2009)
Loan Portfolio:
Portfolio from AA to C:
R$ 1,297.0 million
7.6% vs. 3Q09
93.5% of Paraná Banco’s
16.8% vs. 2008 portfolio.
3
4. Main Highlights (Insurance)
Net Income - Insurer: Net Income - Reinsurer:
R$ 9.5 million (4Q09) R$ 5 million (4Q09)
50.5% vs. 3Q09 311.5% vs. 3Q09
R$ 29.3 million (2009) R$ 14.1 million (2009)
68.8% vs. 2008 213.3% vs. 2008
Insurance business share: Market share in 2009:
51.1% of 4Q09 and JM Seguradora: 32.2%
43.0% of 2009 JM Re: 36.5%
net income
Combined Ratio Retained Premiums
JM Seguradora: JM Seguradora + JM Re:
61.3% (4Q09) R$ 27.4 million
- 4.5 p.p. vs. 3Q09 0.9% vs. 3Q09
-7.5 p.p. vs. 4Q08
4
5. Financial Performance
150 19.8% 500 20.0% 16.0% 18.5%
14.7% 400 15.0%
14.3% 51.8 13.5% 13.5%
15.1
100 63.7
300 10.0%
15.8 15.8 8.5%
75.7 200
5.0% 327.1
50 3.5%
280.0
72.4 75.7 100
0.0%
29,2 -1.5%
- 29.2
-
-5.0%
(48.0) (41.5) (42.3) (172.9) (151.7) -6.5%
(100)
-10.0%
(50) -11.5%
(200)
4Q08 3Q09 4Q09 -15.0% 2008 2009
(300) -16.5%
(100) -20.0%
Income from credit operations Income with credit assignments Result from marketable securities operations
Expenses from Financial Operations NIM
4Q09 x 4Q09 x 2009 x
R$ thousand 4Q09 3Q09 4Q08 2009 2008
3Q09 4Q08 2008
Result from financial operations 49,241 46,705 5.4% 72,021 (31.6%) 191,925 235,190 (18.4%)
Efficiency Ratio 49.3% 58.3% (8.9 p.p.) 80.4% (31.1 p.p.) 54.9% 66.0% (11.1 p.p.)
5
6. Financial Performance
Net Income
(R$ thousand)
24.0%
104,301
84,127
81.4%
29,066
16,023
27.2% 43.0% 31.1% 51.1%
2008 2009 4Q08 4Q09
Participation of insurance sector
Growth in Net Income: Recovery in credit and reduction in operating expenses.
Increasing share of insurance business in total earnings.
6
7. Operational Performance
4Q09 x 4Q09 x
4Q09 3Q09 4Q08
3Q09 4Q08
Loan Portfolio (R$) 1,297,002 1,205,341 7.6% 1,110,492 16.8%
Total Deposits (R$ thousand) 997,182 935,454 6.6% 769,534 29.6%
Time Deposits (R$ thousand) 846,980 783,482 8.1% 696,366 21.6%
Loan Portfolio – Operations Falling Due Funding – Operations Falling Due
8.5%
11.6%
25.4% Up to 3 months 26.7% Up to 3 months
Between 3 and 12 months Between 3 and 12 months
35.8% Between 1 and 3 years 43.5% Between 1 and 3 years
27.2% Above 3 years 21.4% Above 3 years
Matching of Terms: 52.6% of the portfolio and 48.1% of funding maturing within 1 year.
7
8. Quality of the Loan Portfolio
4Q09 x 4Q09 x
R$ 4Q09 3Q09 4Q08
3Q09 4Q08
Allowance for Doubtful Accounts (PDD) 70,649 62,331 13.3% 51,469 37.3%
Portfolio (> 90 days) 74,725 67,023 11.5% 56,151 33.1%
Portfolio (> 180 days) 46,820 38,475 21.7% 30,420 53.9%
Total Portfolio* 1,398,582 1,347,703 3.8% 1,330,658 5.1%
Portfolio Coverage Index (PDD / > 90 days) 94.5% 93.0% 1.5 p.p. 91.7% 2.9 p.p.
Portfolio Coverage Index (PDD / > 180 days) 150.9% 162.0% (11.1 p.p.) 169.2% (18.3 p.p.)
Allowance for Doubtful Accounts (PDD) / Total Portfolio 5.1% 4.6% 0.5 p.p. 3.9% 1.2 p.p.
(b)
Written-off credits 8,754 13,250 (33.9%) 7,856 11.4%
(b/a)
Loss rate 0.6% 1.0% (0.4 p.p.) 0.6% 0.0 p.p.
* Includes balance of assignment with co-obligation.
Delinquency rate - Paraná Banco
Payroll deductible (>90 days) = 5.9%
Small and Mid Enterprises (>90 days) = 0.8%
Delinquency rate - Brazilian Financial System
(“SFN”)
Individuals (>90 days) = 7.8%
Corporations (>90 days) = 3.8%
8
9. FIDC
Consolidated Portfolio Consolidated Portfolio
- Without FIDC II
2.8% 3.3% 3.4%
3.1%
AA- C AA- C
D-G D-G
H H
94.0% 93.3%
Growth of 0.6 p.p. in the H level
Once they were discontinued, the remaining FIDC portfolio was integrated with
the Bank's portfolio, and that led to higher provision expenses.
9
10. Funding
Funding Sources Issue overseas (US$300 MM program)
46.4% Europe
980
US$ 35 MM US$ 100 MM
102 26.5% US
17
235 3.4% Chile
2005 2006 2007 2008 1Q09 2Q09 3Q09 4Q09 23.8% Others
MTN FIDCs Loans Assigment Deposits
DPGE (Time Deposits with Special Guarantee) in December 31, 2009: R$ 141.1 million
Total Deposits: increase of 6.6% in the quarter.
Increased participation of institutional investors and corporations.
Issue overseas: portfolio is 100% hedged
US$ 35 million maturing in August 2011
US$ 100 million maturing in December 2012
10
11. Segmentation
Payroll-Deductible Loan Origination Sector Distribution - SME
5.4%
4.4%
8.8%
18,8% 16,1%
Industry
INSS
States Commerce
Armed Forces
Services
Municipality
31,5%
30,2%
Others Municipal
Public
3,4% 81.5%
Payroll-Deductible Loans: diversification dilutes the regulatory risk of credit
and concentration of agreements.
Alternative Distribution Channels: 82 franchises and 9 own stores.
Small and Mid Enterprises (SME): growth of 11.0% in the quarter.
Synergy with the JM Seguradora:15.2% of the portfolio.
Distribution in the platforms:
Curitiba, São Paulo, Ponta Grossa, Maringá, Joinvile and Florianópolis.
11
12. Capital Structure
Equity Changes (R$ thousand) 4Q09 3Q09
Initial Balance 811,368 804,540
Net Income 29,066 21,123
Interest on Equity (16,110) (7,547)
Treasury shares (35,752) (6,363)
Adjustment to market value - Marketable securities 5 6
Others (1) (391)
Final Balance 788,576 811,368
Capital Compliance 4Q09 3Q09 2Q09 1Q09 4Q08
Basel II Rules
Reference Shareholder's Equity 790,968 813,011 804,946 807,027 807,759
Reference Shareholder's Equity Required 223,839 239,050 226,132 243,783 252,396
Banking Portfolio Risk (RBAN ) 40,959 41,546 49,368 44,625 51,875
Basel required minimum margin 526,170 532,415 529,446 518,619 503,488
Basel Index 38.9% 37.4% 39.2% 36.4% 35.2%
Changes in Shareholders’ Equity: impacted by the 5th and 6th share buy-back programs and
the payment of IOE worth of R$ 47.9 million in 2009.
Basel II: 38.9% in 4Q09, with a R$ 526.2 million margin over the limit.
12
14. Latin America Market
Latin America - Market share of the companies
JMalucelli - Brazil 7.7%
Aserta - Mexico 6.3%
Mrrey NYL - Mexico 6.2%
Sofimex - Mexico 3.9%
Surety Bond- Latin America market share
Corporativos - Venezuela 3.3%
10.0%
Mexico
Confianza - Colombia 3.0%
23.0% Brazil
12.0%
Others
Venezuela
16.0%
22.0%
Colombia
17.0% Argentina
Source: LatinoInsurance 14
15. Market Share (December/2009)
Market share evolution - direct premiums
(R$ thousand) Market Share - reinsurance premiums
Financial risk category
703,109 3.4%
IRB BRASIL RESSEGUROS
499,334 J. MALUCELLI
25.0% 34.0% RESSEGURADORA
346,089 MAPFRE RE DO BRASIL
187,768 192,364 1.0% MUNCHENER RUCK DO
167,452
BRASIL RESSEGURADORA
XL RESSEGUROS BRASIL
29.2% 37.0% 42.3% 50.4% 43.0% 32.2% 36.5%
2004 2005 2006 2007 2008 2009
JMalucelli Seguradora Market
JM Seguradora: market leader – profitable operation, low claims ratio, quick credit analysis,
selected clients and attractive to reinsurers.
Outlier: R$ 124.7 million policy for the Madeira River hydropower plant construction project.
Without it, JM Seguradora would have a 39.2% market share.
JMalucelli Resseguradora: Ranks first in the financial risk group.
15
16. Operational Performance
50% Claim ratio Insurance claims
176,331
40%
30%
26.3%
20%
72,129 66,948
10% 38,020
27,578
9,688 6,457 9,056 7,960
3.6% 253 4,025 2,372
0%
2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
Market JMalucelli Seguradora Market JMalucelli Seguradora
JMalucelli Seguradora pulls down the market’s claim ratio average.
Without the JM Seguradora, it would be 36.9%.
16
18. Corporate Governance
Average Total Cost
Programs Acquired Shares Status
Price (R$ million)
1 4,155,600 8.85 36,768 Ended on 07/07/2008
2 4,072,300 5.06 20,604 Ended on 03/17/2009
3 3,331,800 4.06 13,526 Ended on 04/01/2009
4 2,987,200 5.55 16,568 Ended on 05/27/2009
5 2,756,400 8.61 23,746 Ended on 10/13/2009
6* 2,056,100 10.00 20,557 Ongoing
Total 19,359,400 6.81 131,769
*Data related to this program have been updated as at 12/31/2009.
Distributed Gross Value Interest on Equity Dividend Yield
(R$) per share (R$) (%)
1Q09 5,974,417.92 0.06000 1.30
2Q09 18,283,706.08 0.19000 2.68
Rating Rating Rating / Ranking Rating
3Q09 7,547,362.56 0.08000 0.82 A- brBBB+ 11.20 A
Low Credit Risk Low Credit Risk - Low Credit Risk
4Q09 16,109,996.02 0.17554 1.72 Low Credit Risk
Medium term
Total 47,915,482.58 0.50554 - September 2009 May 2009 September 2009 September 2009
Interest on Equity in 2009: R$ 47.9 million, equivalent to R$ 0.51 per share and pay-out of 45.9%.
Share Buyback Program: 6th program in progress.
18
20. Investor Relations
Cristiano Malucelli Mauricio N. G. Fanganiello
IRO IR Coordinator
Ph: (+55 41) 3351-9950 Ph: (+55 41) 3351-9765
Marianne C. Baggio
e-mail: ri@paranabanco.com.br IR Analyst
IR Website: www.paranabanco.com.br/ir
Ph: (+55 41) 3351-9645
This presentation may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current
expectations and projections regarding future events and financial trends that affect or may come to affect the company’s business. Many important factors may adversely
affect the results of Paraná Banco as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and
international economic situation, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment the ability of Paraná Banco to
obtain funding for its operations and amendments to Central Bank regulations. The words: “believe”, “may”, “could”, “seek”, “estimate”, “continue”, “anticipate”, “plan”,
“expect” and other similar words are intended to identify estimates and projections. The considerations involving estimates and forward-looking statements include
information related to results and projections, strategies, competitive positioning, the industry environment, growth of opportunities, the effects of future regulations, and the
impact from competitors.
Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates
arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking
statements contained in this presentation may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates,
projections and forward-looking statements contained herein.
20
