2. Disclaimer
All financial information presented herein is consolidated, including the Bank´s financial
statements, its subsidiaries, the Credit Receivables Investment Fund Paraná Banco I, Credit
Receivables Investment Fund Paraná Banco II (FIDC), the insurers JMALUCELLI Seguradora,
JMALUCELLI Seguradora de Crédito (pending SUSEP`s approval) the reinsurer JMALUCELLI Re
SUSEP s approval), 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
p p gp p p
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 A th it (“SUSEP”) and th A
I Authority d the Accounting St d d C
ti Standards Committee (“CPC”) whenever
itt (“CPC”), h
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
change, from, behavior, Brazil s
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. Market and Economic Environment
Growth Acceleration
G th A l ti
Program (”PAC”)
Inflation
Converging to
Target/ Low
Interest Rate
Tax Waivers and Investment in
Incentives Infrastructure World CUP 2014
Recovery in
credit
Olympic Games
2016
Double
D bl opportunity: growth i credit + i f t t
t it th in dit infrastructure (insurance b i
(i business)
)
3
4. Main Highlights
Net Income in 3Q09: Total Deposits:
R$ 21.1 million
10.5% vs. 3Q08
R$ 75.2 million R$ 935.4 million
10.5% vs. 9M08 19.1%
19 1% vs. 2Q09
Total A
T t l Assets:
t Profitability:
P fit bilit
R$ 2.6 billion
7.1% vs. 2QT09 ROAE of 10.9% (3Q09) and 12.6 (9M09)
11.0% vs. 3Q08 ROAA of 3.3% (3Q09) and 4.2% (9M09)
NIM of 14.7% (3Q09) and 13.2% (9M09)
Loan Portfolio:
Portfolio from AA to C:
R$ 1,205.3 million
4.1% vs. 2Q09 93.8% of Paraná Banco`s
portfolio.
4
5. Main Highlights – Insurance
Net Income - Insurer: Fitch Ratings:
R$ 6.3 million
53.2% vs. 3Q08
Revision of JM Seguradora rating
R$ 19.7 million
19 7 from 'A-(bra)' to 'A (
( ) (bra)'
)
37.2% vs. 9M08
Insurance business share: Market-share in August:
M k t h i A t
35.7% of 3Q09 JM Seguradora: 31.4%
net i
t income JM Re: 38 7%
38.7%
Combined Ratio Retained Premiums
JM Seguradora: 65.8% JM Seguradora + JM Re:
-15.9 p.p. vs. 3Q08
R$ 27.1 million
59.1% x 2Q09
5
6. Financial Performance
3Q09 x 3Q09 x 9M09 x
R$ thousand 3Q09 2Q09 3Q08 9M09 9M08
2Q09 3Q08 9M08
Income from financial operations 88,205 83,962 5.1% 103,104 (14.5%) 252,128 288,045 (12.5%)
Expenses from financial operations (41,500) (30,986) 33.9% (57,193) (27.4%) (109,444) (127,397) (14.1%)
Result from financial operations 46,705 52,976 (11.8%) 45,911 1.7% 142,684 160,648 (11.2%)
Efficiency Ratio 58.3% 48.8% 9.5 p.p. 58.5% -0.2 p.p. 56.7% 59.8% -3.1 p.p.
3Q09 x 3Q09 x 9M09 x
Net Interest Margin (NIM) 3Q09 2Q09 3Q08 9M09 9M08
2Q09 3Q08 9M08
Result from Financial Operations before
65,230 63,188 3.2% 56,000 16.5% 182,785 187,410 (2.5%)
Allowance for Doubtful Accounts (PDD)
Financial operations annual margin before
14.7% 15.4% -0.7 p.p. 12.4% 2.3 p.p. 13.2% 13.4% -0.2 p.p.
allowance %
Result from Financial Operations: 1.7% growth year-over-year.
Efficiency Ratio: 58.3%, increase of 9.5 pp over 2Q09. Impacted by the increase in retained claims
and merger of FIDC Paraná Banco I.
Net Interest Margin: 14.7%, an increase of 2.3 pp year-over-year, driven by the reduction in basic
interest rates and funding expenses.
6
7. Financial Performance
Net Income
(R$ thousand)
10.5%
75,235
68,104
10.5%
10.5%
19,113
19 113 21,123
21 123
26.3% 39.8% 32.8% 35.7%
9M08 9M09 3Q08 3Q09
Share of the Insurance Business
Growth in Net Income: Recovery in credit, reduction in operating expenses and financial expenses
due to lower funding rates in comparison to the average registered in 3Q08.
Increasing share of the insurance business in total earnings.
7
8. Operational Performance
3Q09 x 3Q09 x
3Q09 2Q09 3Q08
2Q09 3Q08
Loan Portfolio (R$) 1,205,341 1,158,182 4.1% 1,467,142 (17.8%)
Total Deposits (R$ thousand) 935,454 785,231 19.1% 996,087 (6.1%)
Time Deposits (R$ thousand) 783,482 735,891 6.5% 827,173 (5.3%)
Loan Portfolio – Operations Falling Due Funding – Operations Falling Due
11.9% 12.3%
23.0% 23.2%
Up to 3 months Up to 3 months
Between 3 and 12 months Between 3 and 12 months
Between 1 and 3 years Between 1 and 3 years
y
37.7%
37 7% 37.4%
37 4%
27.4% 27.1%
Above 3 years Above 3 years
Loan Portfolio: 4.1% growth, in line with the recovery in the credit market.
Matching of Terms: 50.4% of the portfolio and 50 3% of funding maturing within 1 year.
50 4% 50.3% year
8
9. Quality of the Loan Portfolio
3Q09 x 3Q09 x
R$ 3Q09 2Q09 3Q08
2Q09 3Q08
Allowance for Doubtful Accounts (PDD) 62,331 56,562 10.2% 47,381 31.6%
Portfolio (> 90 days) 67,023 60,802 10.2% 48,953 36.9%
Portfolio (> 180 days) 38,475 34,602 11.2% 26,485 45.3%
Total P tf li *
T t l Portfolio* 1,347,703
1 347 703 1,339,040
1 339 040 0.6%
0 6% 1,476,543
1 476 543 (8.7%)
(8 7%)
Portfolio Coverage Index (PDD / > 90 days) 93.0% 93.0% (0.0%) 96.8% (3.9%)
Portfolio Coverage Index (PDD / > 180 days) 162.0% 163.5% (0.9%) 178.9% (9.4%)
Allowance for Doubtful Accounts (PDD) / Total Portfolio 4.6% 4.2% 0.4 p.p. 3.2% 43.8%
* Includes balance of assignment with co-obligation.
co obligation.
Delinquency rate - Paraná Banco
Payroll deductable (> 90 days) = 4.7%
Small and Mid Companies(> 90 days) = 1.1%
Delinquency Rate- Brazilian Financial System
(“SFN”)
Individuals (> 90 days) = 8 2%
8.2%
Corporations (> 90 days) = 4.0%
9
10. Funding
Funding Sources
901
142
34
63
2005 2006 2007 2008 1Q09 2Q09 3Q09
MTN FIDCs Loans Assigment Deposits
Time Deposits: traditionally the Bank´s largest funding source.
Total Deposits: increase of 19.1% in the quarter. Increased participation of institutional investors
and other companies
companies.
Issue overseas: R$ 35 million maturing in August 2011 (portfolio is 100% hedged)
10
11. Segmentation
Payroll-Deductable Loan Origination Sector Distribution - SME
14.1% 16.7%
21.2% INSS
Industry
States
11.4% Commerce
Armed Forces
Municipality Services
31.1% 72.0%
Others
30.6%
3.0%
Payroll-Deductible Loans: diversification dilutes the regulatory risk of credit and
concentration of agreements.
Alternative Distribution Channels: 80 franchises, 4 in progress and 7 own stores.
Small and Mid Companies: growth of 18.4% in 3Q09. Synergy with the JMalucelli Seguradora
represents 7.0% of the portfolio. Distribution in the platforms of Curitiba and São Paulo.
11
13. Market ‐ Share (August 2009)
Market Share Evolution - direct premiums JMalucelli Re. Market Share
JMalucelli Re. Market Share
(R$ thousand) Total Reinsurance Premius (%)
499,334 519,698
3.5%
J. MALUCELLI
RESSEGURADORA S.A.
RESSEGURADORA S A
346,089 IRB BRASIL RESSEGUROS
26.9% S.A.
38.7%
MAPFRE RE DO BRASIL
187,768 192,364 COMPANHIA DE RESSEGUROS
167,452
,
MUNCHENER RUCK DO BRASIL
1.1% RESSEGURADORA S.A.
29.2% 37.0% 42.3% 50.4% 43.0% 31.4% XL RESSEGUROS BRASIL S.A.
29.8%
2004 2005 2006 2007 2008 Aug-09
g
JMalucelli Seguradora Market
JMalucelli Seguradora: market leader - profitable operation, low claims ratio, agility in credit analysis,
selectivity of clients and attractiveness to reinsurers.
JMalucelli R
JM l lli Resseguradora: 1 t i th group of fi
d 1st in the f financial risks.
i l i k
13
14. Operational Performance (Insurance)
50% Insurance Claims 164,893
Claim Ratio
40%
31.8%
30%
76,155 76,004
20%
38,273
10% 29,950
5.6% 16,146
6,457 9,056 9,025
253 4,025 2,372
0%
2004 2005 2006 2007 2008 Aug‐09 2004 2005 2006 2007 2008 Aug‐09
Market JMalucelli Seguradora Insurance Claims Market Insurance Claims JMalucelli Seguradora
Expected performance: 61.1% increase in retained claims. Our estimated claims ratio were
already ascending due to the scenario of uncertainties.
14
15. Capital Structure
Equity Changes (R$ thousand) 3Q09 2Q09
Initial Balance 804,540 807,363
Net Income 21,123 33,819
Interest on Equity (7,547) (18,284)
Treasury shares (6,363) (18,349)
Adjustment to market value - Marketable securities 6 (9)
Others (391) -
Final Balance 811,368 804,540
Capital Compliance 3Q09 2Q09 1Q09 4Q08 3Q08
Basel II Rules
Reference Shareholder's Equity 810,347 804,946 807,027 807,759 809,092
Reference Shareholder's Equity Required 280,596 275,500 288,408 304,271 261,133
Basel required minimum margin 529,751 529,446 518,619 503,488 547,959
Margin / Reference Shareholder's Equity Required 189% 192% 180% 165% 210%
Changes in Shareholders’ Equity: impacted by th 5th and 6th share b b k programs and b th
Ch i Sh h ld ’ E it i t d b the d h buy-back d by the
payment of IOE worth R$ 7.6 million in 3Q09.
Basel II: Shareholders’ equity exceeded 189% of minimum required by the Brazilian Central Bank.
15
16. Corporate Governance
Acquired Average Total Cost
Programs Status
Shares Price (R$ million)
1 4,155,600
4 155 600 8.85
8 85 36,768
36 768 Ended
E d d 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* 603,000 9.50 5,728 Ongoing
Total 17,906,300 6.53 116,940
* Data which refers to this program was updated on 10/16/2009
Distributed Gross Interest on Equity Dividend
Value (R$) per share (R$) Yield (%)
1Q09 5,974,417.92 0.06 1.30
2Q09 18,283,706.08 0.19 2.68 Rating Rating Rating / Ranking Rating
A
A‐ brBBB+ 11.13 A
Low Credit Risk ‐
3Q09 7,632,650.56 0.08 0.82 Low Credit Risk Low Credit Risk
Medium term
Low Credit Risk
Total 31,890,774.56 0.33 July 2009 May 2009 June 2009 June 2009
Interest on Equity: R$ 7.6 million, equivalent to $ 0.08 per share and payout of 36 1%
7 6 million 0 08 36.1%.
Share Buyback Program: 6th program in progress.
Ratings: i
R ti increase i Ri kB k i d f
in RiskBank index from 11 07 t 11 13 placing P á Banco at 11th position
11.07 to 11.13, l i Paraná B t iti
among Brazilian banks.
16
18. 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
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.
18
