2q10 presentation

2Q102Q10

Disclaimer

All financial information presented herein is consolidated, including the Bank´s financialstatements, its subsidiaries, the insurers JMALUCELLI Seguradora, JMALUCELLI Seguradora deCrédito (pending SUSEP`s approval) the reinsurer JMALUCELLI Re JMALUCELLI AgenciamentoCrédito (pending SUSEP s approval), the reinsurer JMALUCELLI Re., JMALUCELLI Agenciamentoand Paraná Administradora de Consórcio. All information, except when otherwise indicated, ispresented in the Brazilian currency (in Reais) and was prepared based on the accountingpractices g p pursuant to the Brazilian Corporate Law, associated with the regulations andinstructions issued by the National Monetary Council (“CMN”), the Brazilian Central Bank(“BACEN”), the Brazilian Securities and Exchange Commission ("CVM"), the National Council ofPrivate Insurance (“CNSP”), the Brazilian Private Insurance Authority (“SUSEP”) and theAccounting Standards Committee (“CPC”), whenever applicable.Accounting Standards Committee ( CPC ), whenever applicable.

Information contained herein regarding future events is exposed to risks and uncertainties and issubject to change, resulting from, among other factors: market behavior, Brazil’s economical and

li i l i i d h i l i l i d l i I f i d h i ipolitical situation, and changes in legislation and regulations. Information presented herein isentirely based on the expectations of the Bank’s Administration regarding its future performance,and does not constitute a guarantee of performance.

2

Qualidade da Carteira de Crédito

PDD 70 649 62 331 13 3% 51 469 37 3%

4T09 x 4T08R$ 4T09 3T09 4T09 x

3T09 4T08

Main 2Q10PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%

Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%

Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%

Índice de cobertura da carteira (PDD / > 90 dias) 94 5% 93 0% 1 5 91 7% 2 9

MainHighlights 2Q10

Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.

Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)

PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.

Créditos Baixados a Prejuízo (b) 8.754 13.250 (33,9%) 7.856 11,4%

Ní l d d (b/a) 0 6% 1 0% (0 4 ) 0 6% 0 0

g g

* Inclui saldo da cessão com coobrigação.

Nível de perda (b/a) 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.

Inadimplência Paraná BancoConsignado (>90 dias) = 5,9%

PME (>90 dias) = 0,8%

Inadimplência SFNPF (>90 dias) = 7,8%

3

PJ (>90 dias) = 3,8%

Consolidated

Net Income:R$ 31.8 million

42.4% x 1Q10

Total Deposits:R$ 1,173.8 million

10.5% x 1Q10

P fit bilitT t l A t Profitability:ROAE of 16.9%ROAA of 4.4%

Total Assets:R$ 2,955.2 million

18.0% x 2Q09

NIM of 12.0%

Loan Portfolio: Portfolio from AA to C:Loan Portfolio:R$ 1,431.4 million

7.0% x 1Q10

Portfolio from AA to C:94.9% of Paraná Banco’s

portfolio.

4

Insurance Group

Net Income - Insurer: R$ 12.5 million in 2Q10

ROAE of 46.3%

Net Income - Reinsurer:R$ 3.8 million in 2Q10

ROAE of 17.4%81.2% x 1Q10 32.1% x 1Q10

M k t hI b i h Market share:JM Seguradora: 32.4%

JM Re: 30.1%

Insurance business share: 52.4% of

Net income

Combined Ratio Retained PremiumsCombined RatioJM Seguradora:

45.6%22 8 p p x 1Q10

Retained Premiums JM Seguradora + JM Re:

R$ 139.8 million36.7% x 1Q1022.8 p.p. x 1Q10

5

36.7% x 1Q10

Financial Performance

15.9%12.9% 12.0%

10 0%

15.0%14.4%

12.6%250000

0.0%

5.0%

10.0%

189 479100000

150000

200000

83,962 90,574 98,905

(30,986) (41 098) (48 881)‐10.0%

‐5.0%

163,923 189,479

0

50000

(30,986) (41,098) (48,881)

‐20.0%

‐15.0%(67,944)

(89,979)

‐100000

‐50000

Income from Financial Operations Net Interest Margin NIM

‐25.0%2Q09 1Q10 2Q10

‐150000

1S09 1S101H09 1H10

Income from Financial Operations

Expenses from Financial Operations

Net Interest Margin- NIM

R$ thousand 1Q10 2Q10 x 1Q10 2Q09 2Q10 x

2Q092Q10 1H10 1H09 1H10 x 1H09

6

Income from Financial Operations 98,905 90,574 9.2% 83,962 17.8% 189,479 163,923 15.6%


Adjusted Net Income(R$ thousand)

6 1%

51,542 54,666-1.3%

31 249

6.1%

29.4%

4 1%42.8%

49.1%

31,24930,838

23,828

35.1% 42.7%54.1%

2Q09 1Q10 2Q10 1H09 1H10Participation of insurance sector

ROAAROAE

5.8%

3.3%4.3%

3.1%4.4%

17.9%

10.9%

15.3%11.7%

16.9%

72Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10

Loan Portfolio Quality

Loan Portfolio(R$ million)

4.7% 4.6%4.8%

5.2%

4.3%

4.0%

Storeowner Consumer Credit

Others1.7%

2.9% 2.8% 3.0%

3.4%

2.7%2 4%

SME12.3%

1.7%

2.4%

Payroll‐Deductible

Loan

1,105.8 1,158.2 1,205.3 1,297.0 1,338.2 1,431.4 -

84.3%

FIDC I and II

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

L O ti L l H/L P tf li

8

Loan Operations

Allowance for Doubtful Accounts (PDD)/Loan Portfolio

Level H/Loan Portfolio

Loan Portfolio Quality

Allowance for Doubtful Accounts (PDD) 58 805 60 520 (2 8%) 56 562 4 0%

2Q10 x 2Q09R$ 2Q10 1Q10 2Q10 x

1Q10 2Q09

Allowance for Doubtful Accounts (PDD) 58,805 60,520 (2.8%) 56,562 4.0%Portfolio overdue (> 60 days) 67,595 69,314 (2.5%) 63,021 7.3%

Portfolio overdue (> 90 days) 54,251 56,601 (4.2%) 49,732 9.1%

Total Portfolio* (a) 1,483,493 1,413,329 5.0% 1,339,040 10.8%

Portfolio Coverage Index (PDD / > 60 days) 87.0% 87.3% (0.3 p.p.) 89.8% -2.8 p.p.

Portfolio Coverage Index (PDD / > 90 days) 108.4% 106.9% 1.5 p.p. 113.7% (5.3 p.p.)

Allowance for Doubtful Accounts (PDD) / Total Portfolio 4.0% 4.3% (0.3 p.p.) 4.2% (0.3 p.p.)

Written-off credits (b) 10,530 20,383 (48.3%) 7,441 41.5%

* Includes balance of assignment with co-obligation.

, , ,Loss rate (b/a) 0.7% 1.4% (0.7 p.p.) 0.6% 0.2 p.p.

Delinquency rate - Paraná BancoPayroll deductible (>90 days) = 4.4%

Small and Mid Enterprises (>90 days) = 0.5%

Delinquency rate - Brazilian Financial System (“SFN”)

Individuals (>90 days) = 6 6%

9

Individuals (>90 days) = 6.6%Corporations (>90 days) = 3.6%

Payroll‐Deductible Loan Performance

3 3% 0 8%

Payroll-Deductible Loan OriginationPayroll-Deductible Loan Origination(R$ million)

19.3%

3.3% 0.8%

States

Municipalities233.6

340.4

44.6%

32.0%

INSS

Federal Entities

Others

161.2 182.8

202.9

Quality of the Payroll-Deductible Loan Portfolio

2Q09 3Q09 4Q09 1Q10 2Q10

Payroll-Deductible Loan(R$ million)

Payroll-Deductible Portfolio(R$ million)

2.7% 2.6%

AA - C

6.5%

D-G

H1,046

1,071 1,091 1,132

1,206

10

94.7%2Q09 3Q09 4Q09 1Q10 2Q10

Small and Medium‐Sized Enterprises ‐ SMEp

0.9% 0.3%

Quality of the SME Portfolio Sector Distribution- SME

AA - C

D-G

H8 6%

7.9%Services

Commerce

83.6%

8.6% Commerce

Industry

98.8%

SME Portfolio(R$ million) 9.9%

177

99117

130

161177

11

2Q09 3Q09 4Q09 1Q10 2Q10

Distribution

PAYROLL-DEDUCTIBLEPAYROLL-DEDUCTIBLE Small and Medium-Sized Enterprises - SMESmall and Medium-Sized Enterprises - SME

7 PLATFORMS

pp

•CURITIBA/PR

•SÃO PAULO/SP

•PONTA GROSSA/PR

Á

86 FRANCHISES 11 OWN STORES

•MARINGÁ/PR

•LONDRINA/PR

•JOINVILLE/SC

FLORIANÓPOLIS/SC427 BRANCHES

12

•FLORIANÓPOLIS/SC427 BRANCHES

Operational Performance

2Q10 x 2Q09(R$ 000) 2Q10 1Q10 2Q10 x

1Q10 2Q09

Loan Portfolio 1,431,391 1,338,195 7.0% 1,158,182 23.6%

Total Deposits 1,173,773 1,062,649 10.5% 785,231 49.5%

Time Deposits 1,026,501 935,334 9.7% 735,891 39.5%

Loan Portfolio – Operations Falling Due

8 8%

Funding – Operations Falling Due

23.8%13.4%

Up to 3 months

Between 3 and 12 months

27.2%

8.8%

Up to 3 months

Between 3 and 12 months

25.9%36.9% Between 1 and 3 years

Above 3 years 21.3%

42.6% Between 1 and 3 years

Above 3 years

Matching of terms: 49 7% of the portfolio and 48 6% of the funding maturing within 1 yearMatching of terms: 49 7% of the portfolio and 48 6% of the funding maturing within 1 year

13

Matching of terms: 49.7% of the portfolio and 48.6% of the funding maturing within 1 yearMatching of terms: 49.7% of the portfolio and 48.6% of the funding maturing within 1 year

Funding

Funding Sources Deposits breakdown

1,173.8

Funding Sources(R$ million)

36 5%

Deposits breakdown

Institutional investors

Related parties1,173.8

244.3

53.3

36.5%

3 7%

39.5%p

Individuals

Corporate investors2006 2007 2008 2009 1Q10 2Q10

MTN Loans Assigment Deposits

3.7%

20.2%

Corporate investors

Medium Term Notes MTNMedium Term Notes - MTN

100,000 December/2009 December/2012 7.375% 100%35 000 A g st/2008 A g st/2011 7 750% 100% + interest rate

Tranche (US$ thousand)

Maturity Coupon (p.a.) HedgeGranting Date

14

35,000 August/2008 August/2011 7.750% 100% + interest rate

Capital Structure

Equity Changes (R$ thousand) 2Q10 1Q10

Initial Balance 805,585 788,576 Net Income 31,836 22,360 Interest on Equity (13,145) (5,506)

Treasury shares (27,892) - Adjustment to market value Marketable securities 149 (51)Adjustment to market value - Marketable securities 149 (51) Others - 206

Final Balance 796,533 805,585

Portfolio / Shareholder's EquityBasel Index

1 64 1 66 1.80

1.44 1.491.64 1.66

39.5%37.4% 38.9%

36.0%33.9%

15

2Q09 3Q09 4Q09 1Q10 2Q102Q09 3Q09 4Q09 1Q10 2Q10


PDD 70 649 62 331 13 3% 51 469 37 3%

4T09 x 4T08R$ 4T09 3T09 4T09 x

3T09 4T08

I 2Q10PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%

Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%

Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%


Insurance 2Q10Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.




Ní l d d (b/a) 0 6% 1 0% (0 4 ) 0 6% 0 0




PME (>90 dias) = 0,8%


16

PJ (>90 dias) = 3,8%

Potential new business

PROINFA PAC TRANSPETRO MCMV PRE‐SALT

R$ 10.4 billion 4

R$ 504 billion 4 years

R$ 15.6 billion 6 years R$ 34 billion R$ 190 billion

3 years4 years 4 years 6 years $ 3 years

BELO MONTE WORLD CUP OLYMPICS TRAIN RJ – SP

R$ 19 billion9 years




17

Market Share

Market share - direct premiums (R$ thousand)

Market Share - reinsurance premiumsFinancial risk category

499,334

703,1094.6% 8.5%

0.1% IRB BRASIL RESSEGUROS

JMALUCELLI RESSEGURADORA

187,768 167,452 192,364

346,089 331,632

56.7%30.1%

MAPFRE RE DO BRASIL

MUNCHENER RUCK DO BRASIL RE

29.2% 37.0% 42.3% 50.4% 43.0% 32.2% 32.4%

2004 2005 2006 2007 2008 2009 Jun-10JMalucelli Seguradora Market

BRASIL RE

XL RESSEGUROS BRASIL

JMalucelli Seguradora: market leader, profitable operation, low claims ratio, quick credit analysis, selected clients and attracti e to reins rersJMalucelli Seguradora: market leader, profitable operation, low claims ratio, quick credit analysis, selected clients and attracti e to reins rersselected clients and attractive to reinsurers.

Outlier: R$ 124.7 million for the Madeira River hydroelectric power plant project.

JMalucelli Resseguradora: 30 1% market share in the financial risk group

selected clients and attractive to reinsurers.

Outlier: R$ 124.7 million for the Madeira River hydroelectric power plant project.

JMalucelli Resseguradora: 30 1% market share in the financial risk group

18

JMalucelli Resseguradora: 30.1% market share in the financial risk group.JMalucelli Resseguradora: 30.1% market share in the financial risk group.


JMalucelli Resseguradora46.3%

JMalucelli Seguradora

23.3%

17 4%12 492

29.5%26.1%

4,3192,885 3,811

13.5%17.4%

6,217 6,895

12,492

2Q09 1Q10 2Q102Q09 1Q10 2Q10

Net Income (R$ thousand) ROAE

19

Operational Performance (Insurance)

70%

Claim Ratio(Retained Claim/ Retained Premium)

40%

50%

60%

20%

30%

40%

1.1%

11.2%

-10%

0%

10%

2006 2007 2008 2009 Jun-10

JMalucelli Seguradora Market

JM Seguradora has a specialized claim department that mediates and regulates all notificationsreceived from customers. The basic principle is legal defense of the involved parties and plenty ofopportunities for discussion on the issues in question.

JM Seguradora has a specialized claim department that mediates and regulates all notificationsreceived from customers. The basic principle is legal defense of the involved parties and plenty ofopportunities for discussion on the issues in question.

20

UHE Belo Monte

Apr/2010 Aug/2010BID BOND PERFORMANCE BOND

Fator UBF Insurer

BInsurer

A

RIO

D

RIO

D

SeguradoraSeguros

JMalucelli

-DAY

PER

EAR

PERJMalucelli

Seguradora

JMalucelli Seguradora

154-

9-Y

Amount insured:

R$ 1.05 billion

Amount insured:

R$ 191.0 million

Premium: R$ 500,000

Project executionConstruction companies: Contract signing

21

Project executionWinning bidders Contract signing


PDD 70 649 62 331 13 3% 51 469 37 3%

4T09 x 4T08R$ 4T09 3T09 4T09 x

3T09 4T08

Corporate 2Q10PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%

Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%

Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%


Corporate Governance 2Q10

Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.




Ní l d d (b/a) 0 6% 1 0% (0 4 ) 0 6% 0 0




PME (>90 dias) = 0,8%


22

PJ (>90 dias) = 3,8%

Corporate Governance

1Q10 5 506 435 92 0 06000 0 57

Distributed Gross Value (R$)

Interest on Equity per share (R$)

Dividend Yield (%)

1Q10 5,506,435.92 0.06000 0.572Q10 10,645,443.84 0.12000 1.41Total 16,151,879.76 0.18000 -

Low Credit Risk

RatingA‐

Rating Rating / Ranking RatingbrBBB+ 11.56 A+

Low Credit Risk Low Credit Risk ‐di

Low Credit Risk

July 2010July 2010Medium term

May 2009 July 2010

Interest on Equity: R$ 10.6 million, equivalent to R$ 0.12 per share and pay-out of 31.5%.Interest on Equity: R$ 10.6 million, equivalent to R$ 0.12 per share and pay-out of 31.5%.

23

Investor Relations

Mauricio N. G. Fanganiello IR Coordinator

Cristiano Malucelli IRO IR Coordinator

Phone: (+55 41) 3351-9765

IRO

Phone: (+55 41) 3351-9950

Marianne C. BaggioIR Analyste-mail: [email protected]

IR Website: www paranabanco com br/riPhone: (+55 41) 3351-9645

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 currentexpectations and projections regarding future events and financial trends that affect or may come to affect the company’s business. Many important factors may adverselyaffect 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 andinternational economic situation, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment the ability of Paraná Banco toobtain 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 includeinformation related to results and projections, strategies, competitive positioning, the industry environment, growth of opportunities, the effects of future regulations, and theimpact 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 estimatesarising 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-lookingstatements 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.

24

2q10 presentation

Documents

p p x 1q10

dias carteira

carteira pdd

x 1q10total

x 1q1010

x 1q10portfolio

x 2q09roaa

portfolio overdue