2. Disclaimer
All financial information herein is presented on a consolidated basis, and includes the financial
statements of the Bank, its subsidiaries, JMalucelli Seguradora, JMalucelli Seguradora de Crédito,
JMalucelli Re., JMalucelli Agenciamento, Jmalucelli Distribuidora de Títulos e Valores Mobiliários
and Paraná Administradora de Consórcio. All information, except when otherwise indicated, is
expressed in Brazilian currency (Reais) and was prepared based on the accounting practices
pursuant to 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), as
applicable.
The information contained in this material regarding future events is exposed to risks and
uncertainties and subject to changes resulting from, but not limited to, market behavior,
economic and political situation of Brazil and legislative and regulatory changes. The
information herein is entirely based on the Bank Administration’s performance expectations and
is no guarantee of future results.
2
3. Qualidade da Carteira de Crédito
4T09 x 4T09 x
R$ 4T09 3T09 4T08
3T09 4T08
Main
PDD
Carteira (> 90 dias)
Highlights
Carteira (> 180 dias)
Carteira Total* (a)
Índice de cobertura da carteira (PDD / > 90 dias)
Índice de cobertura da carteira (PDD / > 180 dias)
4Q10 70.649
74.725
46.820
1.398.582
94,5%
150,9%
62.331
67.023
38.475
1.347.703
93,0%
162,0%
13,3%
11,5%
21,7%
3,8%
1,5 p.p.
(11,1 p.p.)
51.469
56.151
30.420
1.330.658
91,7%
169,2%
37,3%
33,1%
53,9%
5,1%
2,9 p.p.
(18,3 p.p.)
PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.
(b)
Créditos Baixados a Prejuízo 8.754 13.250 (33,9%) 7.856 11,4%
(b/a)
Nível de perda 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
* Inclui saldo da cessão com coobrigação.
Inadimplência Paraná Banco
Consignado (>90 dias) = 5,9%
PME (>90 dias) = 0,8%
Inadimplência SFN
PF (>90 dias) = 7,8%
PJ (>90 dias) = 3,8%
3
4. Key Financial Numbers (Consolidated)
Net Income: Total Deposits:
R$ 117.4 million in 2010
R$ 1,301.8 million
12.6% x 2009
30.6% x 4T09
R$ 33.7 million in 4T10
16.1% x 4T09
Total Assets: Profitability:
R$ 3,074.0 million ROAE de 14.6%
17,5% x 4T09
ROAA de 4.0%
NIM de 11.8%
Loan portfolio: Portfolio from AA to C :
R$ 1,551.9 million 95.8% of Parana Banco
19.7% x 4T09 consolidated portfolio
4
5. 4Q10 Environment ‐ BACEN (Central Bank of Brazil)
Date Resolution Provision Impact on Paraná Banco
03/12/2010 3931 The limit for collection of time Low ‐ Paraná Banco is not dependent
deposits with special guarantee on this kind of fund raising – just 6.1%
provided by the Fundo Garantidor de of the total deposit portfolio was issued
Créditos (FGC) shall be reduced from
in DPGE.
2012.
03/12/2010 3515 Changes in standard risk weight on Low – With a 32.7% Basel Index in
loans for individuals, including payroll‐ December, 2010, Paraná Banco is able
deductible loan to leverage the Company in spite of this
change.
03/12/2010 3513 Mandatory Deposits requirement Inexistent – Paraná Banco is not subject
to reserve requirements
14/01/2011 Circular letter Forbids financial institutions to Positive – This provision fosters market
3522 celebrate exclusive agreements with development and hinders a market
payroll registered covenants practice that had been damaging for
Paraná Banco operations.
5
6. Financial Performance
13.5% 15.0%
11.7% 10.6%
350,000
10.0%
400000 15.0%
5.0% 11.8%
250,000 13.6%
300000
10.0%
0.0%
200000 420,490
150,000
343,655 5.0%
‐5.0%
100000
50,000 113,697 117,314 ‐10.0%
91,527 0.0%
0
(42,286) ‐15.0%
(57,394) (52,340)
(50,000) (151,730) ‐5.0%
‐100000
‐20.0% (199,713)
‐25.0% ‐10.0%
(150,000) ‐200000 2009 2010
‐300000 ‐15.0%
Financial Intermediation Income Net Interest Margin - NIM
Financial Intermediation Expenses
4Q10 x 4Q10 x 2010 X
R$ mil 4Q09 3Q10 4Q10 2009 2010
4Q09 3Q10 2009
Net Income from Financial Operations 49,241 56,303 64,974 32.0% 15.4% 191,925 220,777 15.0%
6
10. Performance – Payroll‐Deductible Loan
Payroll-Deductible Loan Portfolio
(R$ million)
1,278 1,335
1,132 1,206
1,091
4Q09 1Q10 2Q10 3Q10 4Q10
Quality of the Payroll-Deductible Loan Portfolio
2.2%1.7%
AA - C
D-G
H
96.1%
10
11. Performance – Middle Market
Middle Market Portfolio Growth
(R$ million)
Strategy:
To invest in structuring this product so as
to increase our share in this credit mode,
focusing in the states of Paraná, where
we rely on Group JMalucelli for support,
189.4 189.6 and São Paulo, in synergy with JMalucelli
177.0
161.0 Seguradora (insurance company).
130.0
4Q09 1Q10 2Q10 3Q10 4Q10
Quality of the Middle Market Portfolio Portfolio
2.3% 0.5%
AA - C
D-G
H
97.2%
11
17. Insurance Group
Seguradora’s Net Income : Resseguradora’s Net Income :
R$ 37.8 million in 2010 R$ 15.8 million in 2010
ROAE of 28.9% ROAE of 16.4%
29.2% x 2009 12.2% x 2009
Share of Insurance Business: Market share - 2010:
47.0% of 2010 Net Income JM Seguradora: 40.4%
JM Re: 41.8%
Seguradora’s Combined Ratio: Premiums issued
JM Seguradora + JM Re:
66.4%
down 23.1 p.p. x 3T10 R$ 170.7 million
137.8% x 4Q09
17
18. Market Expectations
Quality of Infrastructure Investments in Infrastructure
(Between1 e 7. GCR 2010-2011 ) (in R$ billions)
Venezuela 2.8 121.9
111.7
Dominic Rep. 2.8
93.5
Bolivia 3.0
78.0 79.8
Peru 3.5 64.8
58.2
Colombia 3.6
Argentina 3.6
Mexico 3.7
Guatemala 3.9
Brazil 4.0
2003 2004 2005 2006 2007 2008 2009
El Salvador 4.1
Uruguay 4.3
Chile 4.7
According to ABDIB, Brazil will need R$ 160.9 billion per year for the next 5 years in order to suppress
bottlenecks that are hindering the country’s competitiveness and economic growth. When financial
resources are not invested, this need increases exponentially.
Source: ABDIB and World Economic Forum – Global Competitiveness Report 2010-2011 18
19. Market Expectations
Investments in Infrastructure
(R$ million)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
2003 2004 2005 2006 2007 2008 2009
Oil & Gas Energy Transport Telecommunications Sanitation
Source: ABDIB 19
20. Investment guide 2011 ‐ 2022
BRAZIL IS GOING TO NEED INVESTMENTS OF R$ 2 TRILLION BY 2022
HIGHWAYS
• Investment estimate: R$ 200 billion
• More than 12,636 km in new highways
RAILWAYS
Investment estimate: R$ 130 billion
29,000 km in new railways
PORTS AND WATERWAYS
Investment estimate: R$ 60 billion
A total of 133 new construction, expansion and renovation works need to be made.
AIR TRANSPORTATION
Investment estimate: R$ 20 billion
A 41% expansion of current capacity is needed.
Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro 20
21. Investiment Guide 2011 ‐ 2022
POWER
Investment estimate: R$ 385 billion
Requirement of 3,500 megawatts per year
OIL AND GAS
Investment estimate: R$ 955 billion
Pre‐salt oil is President Dilma administration’s greater promise
TELECOMMUNICATIONS
Investment estimate: R$ 100 billion
The goal is a 233% increase in the number of homes accessing the Web
SANITATION
Investment estimate: R$ 206 billion
The lack of water and sanitation services affects 18% of Brazilian people
Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro 21
22. Market Share
Market share - direct premiums
(R$ thousand)
726,400
694,787
499,334
346,089
187,768 192,364
167,452
40.4%
43.0% 32.6%
50.4%
29.2% 37.0% 42.3%
2004 2005 2006 2007 2008 2009 2010
JMalucelli Seguradora Market
JMalucelli Seguradora: market leadership, profitable operation, low claims ratio, fast credit
analysis, client selection, and attractiveness for coinsurance companies.
JMalucelli Resseguradora: first in the market share ranking, with 41.8% of the financial risk group.
Source: SUSEP 22
24. Combined Rate
Monthly evolution of combined ratio and amplified combined ratio*
Monthly evolution of composite rate and expanded composite rate*
* For the market, all insurance products included. For JMalucelli Seguradora, surety bond and DPVAT included
93.0%
82.0%
62.0%
47.0%
JM Seguradora Market Amplified JM Seguradora
Expanded JM Seguradora Amplified Market
Expanded Market
According to SISCORP data, JMalucelli Seguradora had the 2nd better combined ratio in the whole
Brazilian insurance market in 2009 and 2010.
Source: SUSEP 24
25. Operational Performance (Insurance)
Insurance Claims
(R$ thousand) 92,701
76,155 76,004 76,418
38,273
29,950
16,146
9,056 7,960 9,073
4,025 6,457
253 2,372
2004 2005 2006 2007 2008 2009 2010
Market JMalucelli Seguradora
JM Seguradora has a specific area for occurrences which mediates and manages all claims
received from customers. Its principle is legal defense of the involved parties and a wide
opportunity for discussion on controversial matters.
Source: SUSEP 25
26. Investment Policy
Portfolio of financial investments
(R$ million)
Profitability of investments
10.6%
29,6 431,0 9.7%
20,4 6,9%
301,1
13,2%
Others = R$ 39,6
72,6% 2.6% 3.0%
DPGE = R$ 218,7
69,9%
14,2% CDB = R$ 42,8
79,9 4Q10 2010
18,5% CDI Investments JM Seguros
Bonds Fixed income Equities Multimarket Total
Profitability: financial income of R$ 12.8 million in 4Q10.
26
27. Investor Relations
Cristiano Malucelli Mauricio N. G. Fanganiello
IR Officer IR Manager
Phone: (55 41) 3351-9950 Phone: (55 41) 3351-9765
Marianne C. Baggio
e-mail: ri@paranabanco.com.br IR Analyst
IR Website: www.paranabanco.com.br/ri
Phone: (55 41) 3351-9645
This material may include estimates and forward-looking statements. These estimates and forward-looking statements are mostly based on current expectations and
projections of future events and financial trends which impact or may impact our business. Many important factors may have a negative impact on Banco Parana Banco’s
results, such as those anticipated in our estimates and forward-looking statements. These factors include, but are not limited to, domestic and international economic
conditions, fiscal, foreign exchange and monetary policies, increased competition in the consigned credit sector, Banco Parana Banco’s funding capacity to support its
operations, and changes in Central Bank’s standards. The words “believe”, “can”, “may”, “aims”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and other similar
words are intended to identify estimates and projections. The considerations on estimates and forward-looking statements include information concerning results and
projections, strategy, competitive position, sector circumstances, growth opportunities, future regulation and competition impacts.
These estimates and projections refer only to the date that they were expressed, and no undertaking has been made to publicly update or revise them resulting from new
information, future events or any other factors. Due to the risks and uncertainties set forth herein, the estimates and forward-looking statements in this material many not
materialize. Considering these limitations, the shareholders and investors should not make any decisions based on the estimates, projections and forward-looking
statements contained herein.
27
