Apresentacao_2T11_(ing)_final

Paraná Banco Conference Call 2Q11

All financial information herein is presented on a consolidated basis, and includes the financial statements of the Bank, its subsidiaries, JMalucelli Seguradora, JMalucelli Seguros, JMalucelli Resseguradora, JMalucelli Agenciamento, JMalucelli Investimentos 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

Conference Call 2Q11

Disclaimer

Fitch Rating

Upgraded rating from “A-(bra)” to

“A(bra)”

Net Income :

R$ 300,0 million in 1H11 Historical Record

Adjusted Net Income R$ 66.3 Million

20.8% x 1H10

Profitability – 2Q11:

Adjusted ROAE - 14.6%

Adjusted ROAA - 4.3%

NIM – 11.6%

Total Deposits:

R$ 1,475.8 million 25.7% x 2Q10

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Total Assets:

R$ 3,258.6 million 10.3% x 2Q10

Loan Portfolio:

R$ 1,753.1 million 22.5% x 2Q10

Portfolio from AA e C - 95.9% of Parana

Banco consolidated Portfolio

Key Financial Numbers (consolidated) Conference Call 2Q11

4


Adjusted net income

(R$ thousand) 2Q11 1Q11 2Q10 1H11 1H10

Accounting Net Income 266,467 33,541 31,836 300,008 54,196

Extraordinary Events (232,675) (998) (998) (233,673) 739

(-) Premium fiscal effects (998) (998) (998) (1,996) (1,996)

(+) Allowance drag-along for losses - - - - 1,045

(+) Losses with Marketable securities (FIDC II) - - - - 1,690

(-) Change in equity (248,501) - - (248,501) -

(+) Change in the accounting regime of comissions 6,867 - - 6,867 -

(+) Adjustment on provisions 4,184 - - 4,184 -

(+) Expense with financial advisor 5,773 - - 5,773 -

Ajusted net income 33,792 32,543 30,838 66,335 54,935

31,836 33,541

266,467

54,196

300,008

30,838 32,543 33,792 54,935 66,335

16.3% 16.4%

14.6% 14.3% 14.3%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

-

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

2Q10 1Q11 2Q11 1H10 1H11

Accounting net income Adjusted net income ROAE adjusted

5

Interest Income

Interest Expenses Net Interest Margin (Before allowance for Doubtful Accounts) - NIM

Financial Performance


Net Income from Financial Operations 50,024 61,746 57,126 14,2% (7,5%) 118.872 99.500 19,5%

2Q11 x

1Q111H11 1H10

1H11 x

1H10R$ Thousand 2Q10 1Q11 2Q11

2Q11 x

2Q10

98,905 121,992 129,554

(48,881) (60,246) (72,428)

12.0% 11.8% 11.6%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

(200.000)

(100.000)

-

100.000

200.000

300.000

400.000

189,479 251,546

(89,979)(132,674)

12,6%11,5%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

-200000

-100000

0

100000

200000

300000

400000

2Q10 1Q11 2Q11 1H10 1H11

6

Performance Indicators

Significant increase in the Consolidated Shareholder’s Equity


4,3% 4,2% 4,3%

2Q10 1Q11 2Q11

ROAA - adjusted

16,3% 16,4%14,6%

2Q10 1Q11 2Q11

ROAE - adjusted

47,1%45,2%

49,4%

2Q10 1Q11 2Q11

Efficiency ratio - adjusted

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Parana Banco does not make use of loans assignment as an instrument of funding.

Credit Portfolio Quality


7.352.1 36.5 26.2 18.7

1,753.1

1,431.41,517.9 1,551.9

1,625.9

4.0% 3.9%

3.3% 3.2% 3.3%

2.4% 2.4%1.9% 1.9% 2.0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

-

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

1.800,0

2.000,0

2Q10 3Q10 4Q10 1Q11 2Q11

Evolution of the Loan Portfolio - Consolidated(R$ million)

Balance of assignments with co-obligation Loan Operations

Allowance for doubtful accounts/Loan Portfolio LevelH/Loan Portfolio

8.1 7.77.0 6.5 6.0 5.7 6.0 6.4

5.25.9

4.9 4.4 4.03.1 2.8 2.8

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

IndividualsLoans overdue > 90 days (%)

Financial system

Paraná Banco - Payroll Deductible Loan Portfolio

8

* Includes the balance of the loan portfolio assigned with co-obligation.

Credit Portfolio Quality

Fonte: Brazilian Central Bank


Allowance for Doubtful Accounts (PDD) 57,423 52,141 10.1% 58,805 (2.4%) 57,423 58,805 (2.4%)

Portfolio overdue (> 60 days) 70,413 64,072 9.9% 67,595 4.2% 70,413 67,595 4.2%



Total Portfolio* (a) 1,760,335 1,644,618 7.0% 1,483,493 18.7% 1,760,335 1,483,493 18.7%

Portfolio Coverage Index (PDD / > 60 days) 81.6% 81.4% 0.2 p.p. 87.0% -5.4 p.p. 81.6% 87.0% -5.4 p.p.

Portfolio Coverage Index (PDD / > 90 days) 102.6% 101.6% 1.0 p.p. 108.4% (5.8 p.p.) 102.6% 108.4% (5.8 p.p.)

Portfolio Coverage Index (PDD / > 180 days) 171.8% 175.4% (3.7 p.p.) 189.0% (17.2 p.p.) 171.8% 189.0% (17.2 p.p.)

PDD / Total Portfolio 3.3% 3.2% 0.1 p.p. 4.0% (0.7 p.p.) 3.3% 4.0% (0.7 p.p.)

Written-off credits (b) 8,751 8,110 7.9% 10,530 -16.9% 16,861 23,377 -27.9%

Loss rate (b/a) 0.5% 0.5% 0.0 p.p. 0.7% (0.2 p.p.) 1.0% 1.6% (0.6 p.p.)

2Q11 x 2Q10R$ 1Q112Q11 x

1Q112Q102Q11 1H11 1H10

1H11 x

1H10

4.0 3.8 3.6 3.6 3.5 3.5 3.7 3.8

1.1 0.8 0.6 0.4 2.7 2.4 2.5

1.7

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

CompaniesLoans overdue > 90 days (%)

Financial system

Paraná Banco - Middle Market Portfolio

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Performance – Payroll – Deductible Loan Conference Call 2Q11

1,223.6 1,303.5 1,335.1 1,424.9 1,487.6

2Q10 3Q10 4Q10 1Q11 2Q11

Payroll-Deductible Loan Portfolio

(R$ million)

∆% QoQ 4.4%

96.3%

1.9% 1.7%

Quality of the Payroll-Deductible Loan Portfolio

AA - C

D-G

H

45.04%

27.38%

22.58%

4.96% 0.02%

Payroll-Deductible Loan Portfolio

States

Municipality

INSS

Federal Entities

Others

340.4 325.1 277.9

302.1 291.9

2Q10 3Q10 4Q10 1Q11 2Q11

Payroll-Deductible Loan Origination(R$ million)

10

Source: IBGE

<R$ 200 bilion

R$ 100 bilion > < R$ 200 bilion

R$ 50 bilion > < R$ 100 bilion

< R$ 50 bilion

GDP per State (2008)

1

1

1

1 1

1

4

3

1

2

3

4 1

1

1

5 5

1 3

80

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Exclusive Brokers

Own Stores

54,1%

24,6%

12,9% 8,5%

% do GDP

Distribution Channels – Payroll Deductible Loan

+ 333 Brokers


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Performance – Middle Market Conference Call 2Q11

30,8%

15,0%

54,1%

Sector Distribution - Middle Market

Industry

Commerce

Services

97,8%

0,6% 1,6%

Quality of the Middle Market Portfolio

AA - C

D-G

H

193,164 206,183 212,134 175,693

224,366

2Q10 3Q10 4Q10 1Q11 2Q11

Middle Market loan portfolio evolution -(R$ thousand)

+16.2%

12

2

1

1

•CURITIBA/PR

•SÃO PAULO/SP

•LONDRINA/PR

•FLORIANÓPOLIS/SC

4 PLATAFORMAS DE MIDDLE MARKET

Units operating

POTENTIAL: ONLY 3% OF SYNERGY EXPLORED

POTENTIAL: AVERAGE DEBIT-TO-CREDIT RATIO OF 51.1%

POTENTIAL: NEW PRODUCTS

Strategy – Middle Market Conference Call 2Q11

18,8%

Midle Market Synergy with JMalucelli Seguradora

Number of clients

165

31

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MTN: Medium Term Notes

Funding

Tranche (USD thousand)

Granting date Maturity Coupon

(p. a) Hedge

100,000 December/2009 December/2012 7.375% 100%

35,000 August/2008 August/2011 7.750% 100% + Interest


48,1%

6,3%

12,9%

13,7%

19,0%

Deposits distribution

Insttutional Investors

Related Parties

Individuals

Other Companies

Financial Institutions2008 2009 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

7.3

212.3

1,476.5

Funding Sources(R$ million)

FIDCs Loans Assigment MTN Deposits

14

Capital Structure Conference Call 2Q11

Initial Balance 827,660 788,780

Net Income 300,008 54,196

Interest on Equity (14,992) (18,651)

Dividends

Treasury shares (433) (27,892)

Adjustment to market value - Marketable securities (449) 101

Final Balance 1,091,514 796,534

Equity Changes (R$ thousand) 1H11 1H10

1.80 1.86 1.88 1.901.61

2Q10 3Q10 4Q10 1Q11 2Q11

Portfolio / Shareholder`s Equity

33.9% 33.2% 32.7% 32.8%

39.5%

2Q10 3Q10 4Q10 1Q11 2Q11

Basel Index

15

Ratings Conference Call 2Q11

UPGRADED

Long- and short-term national ratings upgraded to ’A(bra)’ from ’A-(bra)’, and to ’F1(bra)’ from ´F2(bra)´, respectively.

“This upgrade reflects Fitch´s opinion that the bank has been successful in its strategy of

seeking greater diversification of operations in a discreet manner, notably adding operating results.” (Fitch Rating)

16

Corporate Governance

Interest on Own Capital (IOC) per share – 2Q11: R$ 0.10 Dividends per share - 2Q11: R$ 0.23

2Q11 Payout : 10.9%


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 Ended on 05/20/2010

7 2,611,900 9.10 23,759 Ended on 08/12/2010

8 952,500 8.88 8,457 Ended on 12/17/2010

9 34,000 13 433 Ongoing

Total 22,957,800 7.16 164,419

ProgramsAcquired

Shares

Average

Price

Total Cost

(R$ million)Status

Insurance Conference Call 2Q11

JM Seguradora Adjusted Net Income :

R$ 16.0 millions in 2Q11 ROAE de 42.0%

JM RE Adjusted Net Income:

R$ 6.0 Million in 2Q11 ROAE de 7.2%

Adjusted to investment in 2Q11

Seguradora Combined Ratio :

53.8% Down 11.3 p.p. x 1Q11

18

Market share :

JM Seg: 33.6% (may/11)

JM Re: 35.7% (may/11)

Fitch Rating

JM Resseguradora upgraded from“A-(bra)” to “A(bra)”

Insurance Group

Share of Insurance Business:

53.2% of Net Income Adjusted in 2Q11


19

JMalucelli Resseguradora

JMalucelli Participações em

Seguros e Resseguros

JMalucelli Seguradora JMalucelli Seguros

Control Group Others

54.6 % 45.4 %

43.4%

100.0 %

56.6%

Equity (2Q11) = 188.5 MM Equity (2Q11) = 575.5 MM Equity (2Q11) = 102.0 MM

Parana Banco and Travelers Brazil LLC Partnership Conference Call 2Q11

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P&C Market Conference Call 2Q11

52.6% 52.4% 57.2% 58.2%

43.0% 40.9%

47.4%47.6%

42.8%41.8%

57.0% 59.1%

2007 2008 2009 2010 2010 - Until May

2011 -Until May

Total Insurance Market

Life insurance P&C

R$ 41,1 bi

R$ 90,1 biR$ 76,6 bi

R$ 67,8 biR$ 58,4 bi

R$ 34,4 bi

59.8%21.6%

5.2%

3.1%

2.9%2.2%

5.3%

Insurance group

Auto

Property

Transport

Mortgage insurance

Financial risks

Liability

Other

2007 2008 2009 2010

96.4 93.1 94.7 147.8

301.1 416.8 466.4 460.1

Market evolution(R$ - milion)

D&O Engineering risks

21

Source: SUSEP

Surety Bond Market Conference Call 2Q11

40.4%

37.0%42.3%

50.4% 43.0%32.6%

33.6%28.8%

726,400

167,452192,364

346,089

499,334

694,787

304,517263,570

2005 2006 2007 2008 2009 2010 may/10 may/11

Market share - direct premiums surety bond (R$ thousand)

JMalucelli Seguradora Market

35.7%

28.9%

22.5%

11.9%

0.6%

Market Share - reinsurance premiumsFinancial risk category

J. MALUCELLI RESSEGURADORA

IRB BRASIL RESSEGUROS

MUNICH RE DO BRASIL RESSEGURADORA

MAPFRE RE DO BRASIL CIA DE RESSEGURO

XL RESSEGUROS BRASIL

22

Financial Performance Conference Call 2Q11

12,492 11,456

16,020

2Q10 1Q11 2Q11

Adjusted Net Income(R$ Thousands)JMalucelli Seguradora

∆% QoQ

39,8% ∆% YoY28,2%

3,8154,902

5,983

2Q10 1Q11 2Q11

Adjusted Net Income(R$ Thousands)JMalucelli Resseguradora

∆% YoY

56,1%

∆% QoQ

22,1%

23

Source: SUSEP

*For the market, all insurance products included. For JMalucelli Seguradora guarantee insurance and DPVAT included.

Combined Ratio Conference Call 2Q11

65,0%

94,0%

50,0%

82,0%

Monthly evolution of composite rate and expanded composite rate*

JM Seguradora Market Expanded JM Seguradora Expanded mercado

24

JM Seguradora counts on a team specializing in claims to mediate and regulate all claims received from

clients. The principle consists in the legal defense of the parties involved, as well as in the full opportunity

to discuss the controversies in question.

Source: SUSEP

Operational Performance (Insurance) Conference Call 2Q11

76.155

29.950

16.146

76.004

92.701

76.418

12.028

4.025 2.372 6.457

9.056 7.960 9.073 4.138

2005 2006 2007 2008 2009 2010 May-2011

Insurance Claims(R$ thousand)

Market JMalucelli Seguradora

25

Profitability: Financial income of R$ 16.8 million in 2Q11.

Investment Policy Conference Call 2Q11

267.3

594.749.4

53.475.5

1,040.2

25.7%

57,2%

17.1%

Bonds Fixed Income Equities Multimarket Investment Funds

Total

Portfolio of financial investments(R$ million)

Others = R$ 131.1

DPGE = R$ 430.4

CDB = R$ 33.3

2.80%

5.52%

2.74%

5.45%

2Q11 1H11

Profitability of investments

CDI Investments JM Seguros

26

Marianne C. Baggio IR Specialist

Phone: (55 41) 3351-9645

Mauricio N. G. Fanganiello IR Manager

Phone: (55 41) 3351-9765

Cristiano Malucelli IR Officer

Phone: (55 41) 3351-9950

e-mail: [email protected]

IR Website: www.paranabanco.com.br/ri

Investors relations Conference Call 2Q11

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.

Education

Apresentacao_2T11_(ing)_final