2. Disclaimer
The Bank's financial statements are presented on a consolidated and pro-forma basis,
including the financial statements of Paraná Banco, its subsidiaries, the Credit
Receivables Investment Funds Paraná Banco I, the Credit Receivables Investment Fund
Paraná Banco II (FIDCs) and the insurer J. Malucelli Seguradora.
In the 1Q07, Paraná Banco retained only 15% of J.Malucelli Seguradora. The pro-forma
statements of this period include 100% of the insurer.
The statements were prepared based on the accounting practices pursuant to Brazilian
Corporate Law, and associated with the regulations and instructions issued by the
National Monetary Council (“CMN”), the Brazilian Central Bank (“BACEN”) and the
Brazilian Securities and Exchange Commission ("CVM").
The forward-looking information herein contained is subject to risk and uncertainties
and may be altered due to the following factors, among others: market behavior,
Brazil’s economic and political situation and legal and regulatory changes. This
information is fully based on the Bank's Management's expectations of its future
performance and is, on no account, a guarantee of results.
3. General Overview
Paraná Banco specializes on payroll-deductible loans,
NICHE BANK loans to the middle-market segment, surety bonds and
reinsurance.
It operates in two different segments:
Corporate: (i) surety bonds, and (ii) middle-market.
SEGMENTATION
Individuals: (i) payroll-deductible loans, and (ii) payroll-
deductible credit card
Focus on profitability and a low-risk client base,
historically low default rate, based on an expertise in
PROFITABILITY
credit concession and accurate appraisals.
The Bank has a nationwide coverage through well-
COVERAGE structured diversified channels: franchises, call center,
own stores and brokers
4. Highlights in 2Q08
63.5% 62.0% 37.9%
Credit portfolio Income from financial Net income
2Q08 vs. 2Q07 operations 2Q08 vs. 2Q07
2Q08 vs. 2Q07
HIGH AND SUSTAINABLE
GROWTH AND PROFITABILITY
- 8.98% - 0.4 p.p. - 45.0 p.p.
Default rate
Efficiency ratio Basel Index
2Q08 vs. 2Q07
2Q08 vs. 2Q07 2Q08 vs. 2Q07
5. Distribution Channels
Own Stores Franchises
• Located in larger cities with higher • Strict control over operational and image-
related risks
demand and levels of competition
• A singular and innovative distribution channel
• Also serve as branch-offices
• Guarantee of exclusiveness and long-term
contracts
• Greater product mix
2 new stores to be 92 franchises in
opened in 2Q08 : operation and 26
Curitiba and Brasília under development
6. Distribution Channels
Brokers Call Center
• The segment’s most traditional channel • Great capillarity (reach)
• Highly incremental model • No commissions
• Wide spectrum of agreements • Portfolio protection
• User-friendly IT system: Brokers’ Portal • Acquisition of debts
• Refinancing
• Marketing Campaigns
A network of 628 24 service sites is
brokers nationwide the current structure
7. Origination, Commissions and
alternative Channels
Origination Commissions
Credit origination
8.10% 7.10% 5.98%
2Q07 1Q08 2T08
Alternative channels evolution 10%
31%
30%
28%
21%
9%
10% 58.7%
5%
7%
3%
2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
Alternatives are:franchise, own stores and call centers
8. Evolution of Assets and Net Worth
(R$ thousands)
Total Assets Net Worth
9.5% -1%
30.4% 8%
9. Loan Portfolio
The loan portfolio totaled R$ 1,416.4 million in 2Q08 with quality
improvements
Loan portfolio Risk portfolio
1,416.4
1,310.9 2Q07 2Q08
5.4% 4.0%
866.2
8%
94.7%
96.0%
81% AA-C D-H
AA-C D-H
2Q07 1Q08 2Q08
10. Market Funding Operations (R$)
Total deposits Funding options
48.8%
FIDCs
41,268
Institutional
Investors
71,508 25.4%
22.9% Related
1,039,728 Parties
654,754 8.8%
32.9% Individuals
10.0%
Other
2Q07 2Q08 Companies
Total Deposits Resources, acceptances and sucurities issuance
11. Summary of Financial Indicators
and Highlights
2Q07 x 1H07 x
2Q07 2Q08 1H07 1H08
2Q08 1H08
Income from financial operations 75,472 98,483 30.5% 140,468 184,941 31.7%
Expenses from financial operations 36,849 35,918 -2.5% 65,133 70,204 7.8%
Net income from financial operations 48,954 62,565 27.8% 75,335 114,737 52.3%
ROAE - return on average equity 20.00% 13.30% - 6.7 p.p. 30.20% 12.63% -17.6 p.p.
ROAA - return on average assets 8.10% 5.16% -2.9 p.p. 0.12% 4.95% 4.8 p.p.
Net financial margin 19.90% 15.83 -4.1 p.p. 19.60% 14.45% -5.06 p.p.
Credit portfolio expansion and greater middle market origination
12. Operating Revenues
(Expenses)
2Q07 x 1H07 x
2Q07 2Q08 1H07 1H08
2Q08 1H08
Other administrative and operational
(12,679) (33,723) 166.0% (29,041) (52,832) 81.9%
revenues (expenses)
Personnel expenses (4,726) (6,823) 44.4% (8,274) (12,401) 49.9%
Other administrative expenses (18,719) (38,203) 104.1% (38,103) (72,084) 89.2%
Tax expenses (3,547) (4,249) 19.8% (6,774) (8,458) 24.9%
(11.786) 9%
Higher expenses to support the growth in operations and
commercial expansion
13. Surety Bond Market
Surety Bond Market –yearly growth
Direct Premiums (R$ thousands)
346.2
205.4 194.7
164.5 167.6
153.5
134.7
98.6
77.9
50%
30% 37% 42% 41%
27% 28% 24% 34%
2000 2001 2002 2003 2004 2005 2006 2007 May-08
J. Malucelli Seguradora Other Insurance Companies
28% 24% 34% 30% 37% 42% 50%
27%
Undisputed leader of the surety ... has ROE of 31% in 1H08
bond market, with a 41% market
share…
* Source: SUSEP
14. Surety Bond
Market
Claims and Claims Ratio
50%
40% Accurate risk appraisal is
evidenced by low claims
30%
ratio
20%
76.1
10%
5.6%
0.6%
0%
2000 2002 2004 2006 May/08 38.3
35.8
Market J. Malucelli Seguradora 32.5 29.9
28.2
16.1
8.5
Claims ratio indicators show a 5.9
0.2 0.6 0.4 0.4 0.2
4.0 2.4
6.4
0.4
healthy situation in relation to
the market 2000 2002 2004 2006 2008*
Insurance Claims - Market
• Source: SUSEP Insurance Claims - J. Malucelli Seg
15. Corporate Governance
The Board of Directors approved on July 07, 2008 the end of the
share repurchase program and the write-off of the purchased shares
without a reduction in capital stock. A new program, whose deadline is
July 7, 2009, was then implemented..
A Level 1 ADR program was authorized by the Board of Directors. It
has been approved by CVM and BACEN and is scheduled to start in
August 2008.
The Board of Directors approved on July 3 the payment of Interest on
Equity in the amount of R$ 18.2 million, corresponding to R$ 0.17 per
share.
16. New investments
Investment in alternative channels, such as franchises,
DISTRIBUTION
call center and own stores. It is intended to provide
CHANNELS
better control, cost reduction and higher spreads.
Tapping the synergy with J. Malucelli Seguradora, the
MIDDLE-MARKET
Bank is investing in middle-market platforms.
The Bank is concerned about diversifying its portfolio
PRODUCTS and has been creating innovative products and services,
such as the new credit insurer.
New teams have been hired, support areas have been
created and investments in technology and
STRUCTURE
infrastructure have been made to support the growth
target.
18. IR contacts
Luis César Miara André Nacli
Finance and Investor Relations Officer IR Analyst
Phone number: (55 41) 3351-9961 Phone number: (55 41) 3351-9645
Ricardo Rosanova Garcia Mauricio N. G. Fanganiello
IR Manager IR Coordinator
Phone number : (55 41) 3351-9812 Phone number : (55 41) 3351-9765
Email: ri@paranabanco.com.br
IR Website: www.paranabanco.com.br/ri
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 our busin ess. 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 reg ulations. 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 opportunities, the effects of future regulations, and the impact fr om 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 herein 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.
