Investor RELATIONS Earn in g s Resu lts Strategy oriented by - - PowerPoint PPT Presentation

SLIDE 1

Investor

RELATIONS

4Q19

Earn in g s Resu lts

SLIDE 2

Strategy oriented by Digital Transformation

2

TECHNOLOGY BUSINESSES CLIENT DAYCOVAL DIGITAL DAYANE – ARTIFICIAL INTELLIGENCE APP PAYROLL AND LOANS COMPANIES LOANS DAYTRAVEL

BUSINESS CENTER CUSTOMER EXPERIENCE

Innovations and Technology generating gains in scale and operating efficiency

HIGH FINANCIAL MARGIN

14.1% NIM-AR in the quarter 12.8% NIM-AR in 2019

SOLID EARNINGS GENERATION

Recurring ROAE 31.3% in 4Q19 Recurring ROAA 3.6% no 4Q19 Recurring Net Income R$ 288 MM in 4Q19 R$ 984 MM in 2019

STRICT EXPENSE CONTROL AND IMPROVED EFFICIENCY

Recurring Efficiency Ratio 28.8% in 4Q19 28.9% in 2019

CONSERVATISM IN CAPITAL STRUCTURE

Basel Ratio 14.1% in 4Q19

CONTINUED LOAN PORTFOLIO GROWTH AND STRONG ORIGINATION CAPACITY

R$ 27 billion in 4Q19 + 14.5% in 3 months + 38.8% in 12 months

COMFORTABLE ASSET-LIABILITY MATCHING LEVELS

R$ 24 billion of Funding R$ 2.8 billion Free Cash

DIVERSIFICATION OF PRODUCT AND SERVICES AND REVENUES

72% Companies Loans 24% Payroll Loans 4% Auto Loans

SLIDE 3

Scale Gain Viability

SmartCheck Model (Receivables Management)

 Using Artificial Intelligence for Automatic Receivables Verification and Release.  Analyzing the customer's behavior and risk, classifying the default probability.  Increased productivity/automatic approval return, resulting in efficient analysis with decisions more focused on improving the portfolio quality.  For unapproved cases, the business manager receives the information instantly and seeks the best solution to conclude the process.

3

OPERATIONAL EFFICIENCY Focus on Customer Experience and greater speed in the Bank's internal processes. INTEGRATED WITH WHATSAPP ARTIFICIAL INTELLIGENCE CLIENT SERVICE EXPANSION

• Customer Service
• Ombusdman
• Payroll Loans
• Investments
• Dayconnect
• Foreign Exchange

+ 300 thousand interactions in all service channels in 2019.

Daycoval won the international Cloud Platform Winner 2019 - Digital Assistant from Oracle, a world reference in digital platform development, one of the highlights among financial companies featuring its virtual assistant Dayane.

• Foreign currency

exchange rates,

• Sending of payment

receipts;

• Service by Daycoval

Digital professionals. Created in September 2018, based on a Financial Vehicles project.

SLIDE 4

APP | PAYROLL

 The Payroll App was created with the goal of delivering simple and fast solutions to our clients while also speeding up the release of funds.  The application makes it possible to simulate and contract loans and financing lines, carry out refinancing, follow up proposals and update client information.  In 2019, R$ 236.5 million was originated through this channel.  In 4Q19, R$ 105.8 million was originated.  77% of the operations originated via the APP comes from the INSS.

APP | PromAuto

• APP PromAuto - was developed for the digital journeys of stores and

Banking Correspondents for vehicle financing.

• Through PromAuto APP, stores can conduct simulations, fill out and

send client proposals, from where the journey begins. This proposal is sent to the Banking Correspondent, who in turn carries out prior Credit analysis and then forwards the proposal to the Credit Desk.

Daygiro FGI and Giro Fácil Digital

 Daygiro FGI is a working capital line for small and medium-sized companies without the need for a real guarantee, up to R$ 500,000, and has the support of the BNDES.  The prerequisites for contracting a loan are: Annual revenues of R$ 1 million up to R$ 90 million; minimum of 5 years in operation after incorporation; and for limited liability companies (LTDA.), joint- stock (S.A.) and others comprised of partners, not being valid for MEI companies

• r

individual entrepreneurs.

4

Scale Gain Viability

 In March 2019, the Bank launched it Giro Fácil Digital feature. Through this new digital channel it is possible to carry out simulations and contract this product.

SLIDE 5

5

According to the evaluation of Yubb users (investment search application with more than 8 million searches per month) Banco Daycoval's online investment platform, Daycoval Digital, was ranked in first place among medium-sized banks. Evaluated criteria:  Ease of using the online platforms;  Customer Service;  Costs and fees charged by the companies.

Source: O Estado de São Paulo.

Daycoval Digital | The segment's best online investment platform

Source: The Banker

Daycoval is the second best bank in the BRICS

 Banco Daycoval featured prominently in a new ranking prepared by the British specialized magazine The Banker, released earlier this year.  There were 18 criteria used in eight main categories: growth, profitability, operational efficiency, asset quality, risk return, liquidity, solidity and leveraging.

SLIDE 6

6

Financial Highlights

4Q19 and 2019 Recurring ing Net In Income me

R$ R$ 983.9 983.9 million million in 2019 +50.4% +50.4%

2019 vs. 2018

358.5 425.7 500.4 654.1 983.9 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

In R$ million

Exp Expanded Loan Loan Portfoli lio

R$ $ 27.4 27.4 billion in 2019 +38.8% +38.8%

14.1 14.1 14.4 14.4 16.0 16.0 19.7 19.7 27.4 27.4 23.9 23.9 27.4 27.4 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 3Q 3Q19 19 4Q 4Q19 19 13.5% 15.4% 17.2% 20.5% 27.7% 30.4% 31.3% 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 3Q 3Q19 19 4Q 4Q19 19

Recurring ing ROAE AE

27.7% 27.7% in 2019 +7.2 +7.2 p.p .p.

2019 vs. 2018

Ba Basel sel Ra Ratio io

14.1% 14.1% in 2019

17.7% 15.9% 14.9% 14.7% 14.1% 15.8% 14.1% 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 3Q 3Q19 19 4Q 4Q19 19

LLP/E P/E-H Portfoli lio

156.4% 156.4% in 2019

+ 31.3

31.3 p.p .p

2019 vs. 2018

2.7% 3.0% 2.9% 2.2% 1.5% 1.7% 1.5% 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 3Q 3Q19 19 4Q 4Q19 19

NPLs PLs | 90 90 days ys

1.5% 1.5% in 2019 -0.7 0.7 p.p .p.

2019 vs. 2018

96.6% 96.6% 103.0% 103.0% 122.9% 122.9% 12 125.1 5.1% 156.4% 156.4% 148.4% 148.4%156.4% 156.4% 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 3Q 3Q19 19 4Q 4Q19 19

2019 vs. 2018

276.2 288.1 3Q 3Q19 19 4Q 4Q19 19

SLIDE 7

Expanded Loan Portfolio

7

72.0% 72.0% 23.7% 23.7% 4.1% 4.1% 0.2% 0.2% Companies Companies Payr ayroll

• ll Loans

Loans Auto uto Loans Loans Other Others

Loan Portfolio Breakdown

4th quarter of 2019

R$ million 4Q19 3Q19

• Chg. %

3 months 4Q18

• Chg. %

12 months Companies

10,050.7 9,514.0 5.6% 8,190.0 22.7%

Receivables Purchase

5,765.3 3,674.3 56.9% 3,199.0 80.2%

Leasing

1,203.8 1,109.3 8.5% 849.6 41.7%

Avals and Sureties

2,675.8 2,364.5 13.2% 1,383.8 93.4%

Total Expanded Companies

19 19,695.6 16 16,662.1 18.2% 13 13,622.4 44.6%

Payroll Loans

5,965.4 5,700.6 4.6% 4,877.9 22.3%

Payroll Card

518.2 473.3 9.5% 392.6 32.0%

Total Payroll Loans

6,483.6 6,173.9 5.0% 5,270.5 23.0%

Total Auto Loans + Others

1,123.7 1,009.5 11.3% 767.1 46.5%

Home Equity

56.7 54.2 4.6% 50.6 12.1% Total Expanded Loan Portfolio 27,359.6 23,899.7 14.5% 19,710.6 38.8%

R$ Million

Expanded Loan Portfolio

16,033 15,654 15,954 17,548 19,711 19,907 21,645 23,900 27,360

4Q 4Q17 17 1Q 1Q18 18 2Q 2Q18 18 3Q 3Q18 18 4Q 4Q18 18 1Q 1Q19 19 2Q 2Q19 19 3Q 3Q19 19 4Q 4Q19 19

SLIDE 8

13,622 13,395 14,807 16,662 19,696

4Q18 1Q19 2Q19 3Q19 4Q19

R$ Million

Co Coll llateral - %

73% 73% 12% 12% 3% 3% 6% 6% 2% 2%1% 1% 3% 3% 82% 82% 15% 15% 3% 3%

Up to 12 months 1 to 3 years 3 to 5 years

Outstanding Operation - %

Companies Portfolio

41% 41% 29% 29% 14% 14% 9% 9% 6% 6% 1% By Product (%)

8

69% 69% 11% 11% 9% 9% 6% 6% 2% 2%1% 1% 2% 2%

Receivables Real State Equipments/Foreign Goods Financial Investments Vehicles Agricultural Products Others

De Dec/1 /19 De Dec/1 /18 De Dec/1 /19 Working ing Ca Capit ital/ / Guaranteed Ac Account Receiv ivables les Pur Purchases ses Avals vals and and Sur Sureties ies Trade Fina inance Leasi sing BNDES BNDES

+44.6% +18.2%

SLIDE 9

Loan Portfolio Distribution X GDP

National Presence

GDP*

59% 16%

Mid-West + North Southeast

16.5% of GDP 52.9% of GDP 16.7% of GDP

Northeast

11%

South

14%

13.9% of GDP

*Source: GDP by Geoghaphical Region IBGE (2016)

Loan Portfolio 2.2% 6.4% 8.9% 14.0% 18.9%

Largest Debtor 10 largest 20 largest 50 largest 100 largest

Client Concentration

Concentr trati tion by by sector tor 4Q19 3Q19 Industry 45.9% 44.4% Service 28.5% 30.4% Commerce 19.8% 19.3% 10 Largest Sectors (*) Poultry Industry 4.2% 3.4% Malt Industry 2.9% 1.6% Road Freight Trasnportation 2.6% 2.9% Vehicles Industry 2.4% 1.2% Electricity Generation 2.2% 1.8% Oil Industry 1.9% 2.3% Food and Cereal Wholesaler 1.8% 2.2% Trade of Tires 1.5% 0.8% Auto Parts and Accessories Industry 1.5% 1.9% Real State Development 1.5% 1.7%

9

Companies Portfolio

(*) % over the total of the companies portfolio

SLIDE 10

27.0% 23.6% 23.3% 12.9% 10.0% 3.2%

INSS Army State Government Municipalities Government/SIAPE Others

34.0% 25.8% 15.8% 12.1% 10.4% 1.9%

Army INSS State Governement Municipalities Government/SIAPE Others

10 10

Brea reakdown Pa Payroll roll Loan Loan - % % Po Portfo rtfolio Ori riginati tion – R$ mn mn Bre reakdown Loan Loan Ori riginati tion - % %

Payroll Loans

Total volume me

• riginated of
• f

R$ 1.4 billion in the quarter Army my Pr Product

• duction

ion reached eached 34.0% 34.0% Number umber of

• f

cont contract acts s in in the he por portfolio folio 1,1 1,125 25.00 .000 39 39 own

• wn stor

stores es – IFP IFP 11 11.3% .3% sha share o e of sale sales s in t in the quar he quarter er Refina efinancing ncing Originat igination ion (Refin efin) ) 47% 47% Por Portfolio folio Dur urat ation ion 17 17 mont months hs Average verage Ticket Ticket R$ 6,300 $ 6,300 Payr Payroll

• ll Car

ard R$ 518.2 $ 518.2 million million

Total Portfolio 5,271 5,638 5,887 6,174 6,484

4Q18 1Q19 2Q19 3Q19 4Q19

R$ Million

Highlights | 4Q19

708 725 689 782 796 431 473 606 664 698 1,139 1,198 1,295 1,446 1,494 4Q18 1Q19 2Q19 3Q19 4Q19 Net Origination Refin. Total

IN INSS SS pr product

• duction

ion reached eached 25.8% 25.8% Number umber of

• f

act active ive client clients 703,000 703,000 In 20 In 2019 19 we we

• r
• riginat

iginated ed R$ 236.5 $ 236.5 million million thr hrough

• ugh this

his channel channel. . Register egistered ed Cor

• rrespondent

espondent 1,200 1,200

+23,0% +5,0%

SLIDE 11

45 45 53 53 67 67 79 79 94 94 91 91 103 03 113 13 117 17 135 35 172 72 206 06 218 18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

767 821 907 1,010 1,124 4Q18 1Q19 2Q19 3Q19 4Q19

15% 15% 34% 34% 46% 46% 5% 5% Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years

130 130 Pr Promot

• moter

ers

11 11

Origination of Auto Loan Portfolio – R$ mn Outstanding Operation (%)

Auto Loans

Originat igination ion Volume

• lume

R$ $ 217.9 217.9 million million in in the he quar quarter er Number umber of

• f

cont contract acts 117,800 117,800 Average verage Ticket Ticket R$ 9,100 $ 9,100 Por Portfolio folio Dur urat ation ion 16 16 mont months hs Average verage Int Inter erest est Rat ate e (year year) ) 37.5% 37.5% Focus Focus on

• n the

he Sout Southeast heast of

• f

Braz azil il

Auto Loan Portfolio

R$ Million

Highlights | 4Q19

Maturity of 95%

• ver the next 3

years

+46.5% +11.3%

SLIDE 12

4,218 4,376 4,861 5,389 5,851 4Q18 1Q19 2Q19 3Q19 4Q19

R$ Million

Gross revenue from investment fund management

R$ 4.8 mn mn in 4T19 R$ 17.0 mn mn in 2019 12 12

Custod ustodial ial and and Administr dministration tion

Structure with qualified professionals and a state-of-the-art technological infrastructure. Always presenting security and control of the information of its investors, in addition to features such as transparency in the fulfilment of its obligations and compliance with policies and best market practices.

R$ R$ 12 12 billion billion in in Custodial Custodial and and Administrat Administration ion Services Services in in 2019 2019

R$ 4,756.2 mn

| Asset under Administration

R$ 4,438.5 mn

| Asset under Service

R$ 3,376.4 mn

| Asset under Custody

+38.7% +8.6%

INVESTMENT FUNDS

Fixed Income, Multimarket, Equity or Pensions.

SLIDE 13

39.9% 36.5% 19.8% 1.9%1.7% 0.2%

Remittances Cash Money orders MoneyGram Cards Checks

Br Breakdown by by Pr Product (%) (%) High ighli lights | 4Q19 | 4Q19

ANNUAL REVENUE OF R$ 108.0 MILLION

Pr Products and and Ser Servi vices

13 13 PURCHASE OF INTERNATIONAL CHECKS

Agility and efficiency in the sales of international checks. Main modalities, pension checks, retirement funds, commissions, among others.

INTERNATIONAL REMITTANCES

Send money, pay foreign courses or easily conduct financial transactions, quickly and without redtape.

DAYCOVAL EXCHANGE DELIVERY

Safely receive foreign currency in the comfort

• f your own home or office.

CASH

We make available the main foreign currencies circulating in the world, such as: Dollar, Euro, Pound, Peso, among others.

EXPRESS REMITTANCES

Quick and secure transfers between individuals who reside in different countries.

FOREIGN CURRENCY CARDS

Quick and secure transfers between individuals who reside in different countries.

 + R$ 4,737.3 million in cash transactions in 2019;  + 1,735 operations in 2019, only retail;  415,000 clients in 2019;  62% clients carried out more than two operations;  72% for purchases and 28% for sale;  99% of operations for Individuals;  175 FX - Service Points;  In 2019, 60% of the transactions originated in our own stores and 40% was through correspondents.

SLIDE 14

14 14

Internet Banking App Dayconnect Open Investment Platform

WID WIDE E PR PRODUCT T RANGE LCI, LCA, Local Bonds, CDB, Funds and Automatic Credit. DAYCOVAL L AUTO TOMAT MATIC IC CREDIT Approved credit limit for those with Fixed Income investments in Daycoval Digital. AUTO TOMAT MATIC IC APP PP For Digital customers, with 100% return on CDI and daily liquidity. PO PORTFO TFOLIO LIO DIV IVER ERSI SIFIC FICATI TION In addition to products issued by the Bank, we also offer products from other financial institutions. CONSULT LTING AND SERVICES Direct Channel with investment specialists in addition to phone and email, through WhatsApp and Dayane (Virtual Assistant).

14 14

Facial Recognition

Banco Daycoval always seeks to innovate and bring its clients the best technology in the market. For this reason, DayFace was developed and adopted as our Facial Recognition technology.

Advantages of Facial Recognition: ► Security of the client's personal data; ► Identity theft prevention; ► Optimization of registration processes.

SLIDE 15

15 15 Fun unding (R$ R$ mn mn)

4Q19 3Q19

• Chg. %

3 months 4Q18

• Chg. %

12 months

De Deposits 8,319.9 7,273.3 14.4% 5,395.7 54.2% Letters of Credit (LCI* + LCA**) 1,629.2 1,690.5

• 3.6%

1,437.7 13.3% Tot

• tal De

Deposits + + LCI + + LCA 9,949.1 8,963.8 11.0% 6,833.4 45.6% Loca

• cal Bon
• nds (Letr

tras Financeiras) 9,062.4 9,466.2

• 4.3%

7,439.2 18.0% Private Offerings 6,526.2 6,948.3

• 6.1%

6,913.8

• 5.6%

Public Offerings 2,536.2 2,517.9 0.7% 525.4 n.a. Sub ubordinated Loca

• cal Bonds (Letr

Letras as Fina nanceiras as Subor

• rdina

nada das)

158.1 155.7 1.5% 147.3 n. n.a. Bor

• rrowing and

nd Onle nlending 3,687.4 1,799.1 105.0% 2,413.6 52.8% Foreign borrowings 3,462.2 1,529.9 n.a. 2,047.0 69.1% Domestic onlendings 225.2 269.2

• 16.3%

366.6

• 38.6%

Bon

• nds

1,411.5

• n.

n.a. 1,898.0

• 25.6%

Tota

• tal

24,268.5 20,384.8 19.1% 18,731.5 29.6%

Total Funding 38 38.0% .0% 41 41.0% .0% 15 15.2% .2%

Local l Bo Bonds Total l De Deposi sits + + LCA CA + + LCI CI Bor Borrowing ngs and and Onlen lending ings

Breakdown

4th quarter of 2019

Funding Evolution

R$ Million

5.8% 5.8%

Bo Bonds

15,718 15,718 15,692 15,692 17,197 17,197 17 17,30 ,302 18 18,73 ,731 18,985 18,985 20,460 20,460 20,385 20,385 24,269 24,269 4Q 4Q17 17 1Q 1Q18 18 2Q 2Q18 18 3Q 3Q18 18 4Q 4Q18 18 1Q 1Q19 19 2Q 2Q19 19 3Q 3Q19 19 4Q 4Q19 19 Standard d & Poor

• rs3

Fitch ch Ra Ratings gs2 Mood

• dy´s1

RI RISKbank4 Na Nation

• nal Scal

cale Gl Global Scal cale Long ng Term erm BB- B brAA+ brA-1+ BB- B Ba2

• AA(bra)

F1+(bra) Aa2.br BR-1 Pers erspec ective ve Stable Stable Stable

Date : 1 - Feb/2020, 2 - July/19, 3 and 4 - Jan/2020.

Sho hort Term erm Long ng Term erm Shor hort Term erm BRM RMP P 2 Low Ri Risk for

• r Long

ng Term erm (up up to to 5 5 yea ears)

Risk Rating Agencies

*LCI = Real Estate Letters of Credit, ** LCA = Agribusiness Letters of Credit

SLIDE 16

16 16

Issuances in 2019 Local currency funding

Issuance of bonds in the international market with a five-year maturity and yield of 4.375% per year. Funding from IDB Invest with maturity of up to 4 years. US$ 150 million was financed with IDB Invest funds and the remainder, US$ 275 million, by the group

• f

banks represented below:

US$ 350 million US$ 425 million

 In 1Q19, the 7th Local Bonds issue was concluded, in the total amount of R$ 2 billion, consisting of four series

• f R$ 500 million each.

 The maturities of the operation are 2, 3, 4 and 5 years.  The operation was led by Banco Santander (Brasil) S.A. and Banco Bradesco BBI S.A. and XP Investimentos Corretora de Câmbio, Titulos e Valores Mobiliários S.A. were coordinators. Banco Daycoval raised US$ 775.0 million in 4Q19

SLIDE 17

19.6% 23.8% 41.9% 8.0% 0% 6.7% 7% Up to 3 months 3-12 months 1-3 years 3-5 years Over 5 years 40.5% 28.9% 21.1% 6.9% 9% 2.6% 6% Up to 3 months 3-12 months 1-3 years 3-5 years Over 5 years

17 17

Maturity of 69% over the next 12 months Maturity of 44%

• ver the next 12

months

Funding Ave Average term m to Maturity y (1

(1) ) days

ys

Total Deposits 139 Interbank Deposits 168 Local Bonds (letras financeiras) 613 LCA (Letter of Credit Agribusiness) 109 LCM (Letter Home Mortgage) 305 Borrowing and Onlending 603 Bonds 1,627 BNDES 419

Total Funding

596

Loan Portfo folio by by Segme ment Ave Average term m to Maturity y (1

(1) ) days

ys

Companies 206 Trade Finance 62 Payroll Loans 528 Auto Loans 499 Leasing 574 BNDES 415

Total Loan Portfolio

322

(1) From December 31, 2019. (1) From December 31, 2019.

Loan Portfolio – Outstanding Operations Funding – Outstanding Operations

Posi

• sitive Gap

ap of

• f 274

274 da days

Asset and Liability Maturity

SLIDE 18

7.2 8.9 8.9 8.8 6.4 8.0 8.4 8.3 7.1 7.1 7.9 6.3 5.8 6.6 5.6 4.7 4.2 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 R$ million

(1) Includes Receivables purchase and Leasing

18 18 Compa

• mpanie

nies Portf

• rtfoli
• lio
• Provisi

rovision n (1)

Quality of Loan Portfolio

Balance and Establishment of Provision To Total tal Provi Provision / / Loan Po Port rtfolio (%) %)

Vehicle Prov rovision Payro yroll Prov rovision sion

5.5 6.3 6.5 6.5 5.5 6.4 6.9 6.8 5.9 6.4 7.1 6.0 5.7 5.9 5.3 4.8 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 6.1 735 802 840 842 765 827 911 918 939 1,007 1,139 1,049 1,119 1,196 1,317 1,276 1,320 173 164 175 162 121 135 180 92 147 153 259 122 184 154 188 41 121 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Provison Balance Establishment of Provision

LLP Evolution / Portfolio by Segment (%)

2.4 2.6 2.7 2.8 3.3 3.5 4.1 4.0 4.0 6.0 6.1 5.7 6.1 5,6 6.7 6.4 5.8 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 9.7 10.5 11.2 11.4 11.6 11.2 10.6 9.4 8.5 8.0 9.2 9,1 8.3. 8.9 9.8 10.0 9.9 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

SLIDE 19

106 106 54 93 63 27 108 28 14

14 21 26 23 23 4Q18 1Q19 2Q19 3Q19 4Q19 184 184 154 154 130 130 41 41 (*)

*)

188 188

19 19

Loan Portfolio E-H (R$ mn) 4Q18 1Q19 2Q19 3Q19 4Q19 Companies1 530.3 539.6 653.4 511.2 494 Leasing 11.3 12.4 13.6 14.0 14.0 Payroll 284.2 280.6 271.1 264.5 267.9 Auto 52.6 55.1 58.7 60.9 65.2 Other 16.3 11.7 14.5 9.5 2.9 Total 894.7 899.4 1.011.3 860.1 843.9 Final Balance LLP 1,119.3 1,195.9 1,316.6 1,276.1 1,319.5 LLP/E-H Portfolio (%) 125.1% 130.5% 130.2% 148.4% 156.4%

1) Considers receivables purchase E-H portfolio. *In 3Q19, there was a R$ 14.3 million reversal in the constitution of the provision in the Companies segment and R$ 0.2 million in the Home Equity segment.

Quality of Loan Portfolio

Recovered Loans Loans (R$

$ mn mn)

Write-off (R$ mn) 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Companies (53.0) (34.9)

(28.6) (40.4)

(44.9) (353.8) (148,8) Retail (41.2) (42.2)

(38.9) (41.1)

(41.8) (175.7) (163.9) Total (94.2) (77.1) (67.5) (81.5) (86.7) (529.5) (312.7)

The LLP Balance/E-H Portfolio was 156 156.4% in 4Q19.

70.3 59.4 20.9 8.6 13.6 10.9 11.0 11.3 12.5 11.5 81,2 70.4 32.2 21,1 25.1 70% 74% 23% 11% 27%

4Q18 1Q19 2Q19 3Q19 4Q19 Companies Varejo % Recovered Loans (1)

The additional LLP provision in the amount of R$ 324.7 million, included in the indicators.

188.2 102.8 42.1 46.5 230.3 149.3 59% 28%

2018 2019

(1) Recovered Loans/write-off of the previous year.

442 244 227 176

49 93 2018 2019 513 513 718 718

R$ million

Provi visi sion

• n Exp

xpen enses ses by by se segment gment (R$ (R$ mn mn)

SLIDE 20

20 20

Overdue Loans 4Q18 1Q19 2Q19 3Q19 4Q19 Overdue Loans more than 90 days past due – falling due installments (R$ mn) 440.3 312.4 376.3 402.6 397.6 Overdue Loans more than 60 days past due – falling due installments (R$ mn) 577.3 442.4 512.0 481.7 476.5 Overdue Loans more than 14 days past due (R$ mn) 270.0 269.0 334.9 248.6 267.0 LLP Balance/ Overdue Loans > 90 days (%) – falling due installments 254.2% 219.0% 281.9% 317.0% 331.9% Overdue Loans > 90 days/Loan Portfolio (%) – falling due installments 2.2% 1.6% 1.7% 1.7% 1.5%

Quality of Loan Portfolio

243 303 289 264 247 267 233 255 264 147 175 188 216 4.8% 6.1% 5.7% 5.3% 5.1% 5.4% 4.7% 5.1% 5.0% 2.6% 3.0% 3.0% 3.3% 3% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Past Due Operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio 419 580 527 511 447 494 508 462 440 312 376 403 398 3.0% 4.5% 4.0% 3.8% 2.9% 3.3% 3,2% 2.6% 2.2% 1.6% 1.7% 1.7% 1.5% 5% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Past Due operations > 90 days R$ (mn) Past Due operations > 90 days R$ (mn)/Loan Portfolio

PAYROLL COMPANIES VEHICLES

Pa Past due due loans > > 90 days – Install tallme ments ts falling due due Pa Past due due loans > > 90 days – Install tallme ments ts falling due due Pa Past due due loans > > 90 days – Install tallme ments ts falling due due Pa Past due due loans > > 90 days – Install tallme ments ts falling due due

97 205 174 196 152 180 227 157 127 112 143 152 116 1.2% 2.8% 2.3% 2.5% 1.6% 1.9% 2.2% 1.3% 0.8% 1.0% 1.0% 0.9% 0.6% 6% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Past due operations > 90 days R$ (mn) Past Due operations > 90 days/Loan Portfolio 67 60 54 50 47 43 45 45 46 49 54 58 62 11.3% 10.8% 9.8% 9.0% 8.1% 7.3% 7.3% 6.8% 5.9% 6.0% 6.0% 5.7% 5.5% 5% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Past due operations > 90 days R$ (mn) Past Due operations > 90 days/Loan Portfolio

LOAN PORTFOLIO

SLIDE 21

14.2% 13.1% 12.9% 13.2% 14.1% 13.0% 12.8%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

28.3% 27.7% 30.2% 32.7% 30.2% 28.8% 30.2%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 21 21

Ef Efficien ficiency Ra Ratio io

1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights and portfolio transfers to other banks and excludes matched operations — repurchase agreements-tri-party repos outstanding.

Adjusted Net Interest Margin and Recurring - (NIM-AR)(1) - (%)

Per erson sonne nel Exp xpen enses ses + + Adm dmini inist strat ative ive Exp xpen enses ses + + Com

• mmi

mision sions - Dep eprec eciat iation ion and and Amo mortizat ization ion [Inc Income

• me fr

from

• m Financial

Financial Int Inter ermediat mediation ion (- LLP) LLP)]+ ]+ Inc Income

• me fr

from

• m Ser

Services vices Pr Provided

• vided +

+ Inc Income

• me fr

from

• m Receivables

eceivables Pur Purchase chase + Excha Exchange R nge Rat ate e Var ariat iation ion

Eff Efficiency Rati tio

SLIDE 22

Capital

22 22

(1) Basel Index III minimum 8.0% required by the Central bank.

Ba Basel sel In Index III III (1

(1)

3, 3,237.0 3, 3,695.2 1, 1,020.2 (57 571.8*) 8. 8.6 1. 1.2

Dec/18 Net Income Interest on Equity and Dividends Adjustment to fair value - securities Asset valuation Adjustment Dec/19

Ch Change in in Sha Shareholde lder´s Equ Equit ity – 2019 2019

R$ R$ mn mn

3, 3,237.0 3, 3,407.2 3, 3,518.0 3, 3,736.7 3, 3,695.2

4Q18 1Q19 2Q19 3Q19 4Q19 R$ R$ mn mn

Sha Shareholde lder´s Equ Equit ity

14.1% 15.4% 15.4% 15.2% 13.5% 0.6% 0.6% 0.6% 0.6% 0.6%

4Q18 1Q19 2Q19 3Q19 4Q19

Tier 2 Tier 1 14 14.7% 16 16.0% 16 16.0% 15 15.8% 14 14.1%

(*) In fiscal year 2019, additional dividends were proposed in the amount of R$ 125.3 million "ad referendum" of the General Shareholders Meeting, which are not included in the change in Shareholders' Equity.

SLIDE 23

645.8 1,020.2 2018 2019

20 20.2 28 28.8 19 196.7 23 238.8 22 228.9 27 276.2 28 288.1

4Q18 1Q19 2Q19 3Q19 4Q19

2. 2.9 3. 3.4 3. 3.1 3. 3.6 3. 3.6

159.9 215.6 163.1 26 268.3 373.2 4Q18 1Q19 2Q19 3Q19 4Q19

19 19.6 25 25.7 18 18.5 29 29.5 40 40.6 2. 2.3 3. 3.1 2. 2.2 3. 3.5 4. 4.7 24 24.2 28 28.5 26 26.0 30 30.4 31 31.3

23 23

Recurring ing Net In Income me

R$ Million

65 654.1 98 983.9

2018 2019

Net In Income me

R$ Million

Recurring Net Income Recurring ROAE (%) 20 20.5 27 27.7 Recurring ROAA (%) Net Income ROAE(%) ROAA (%) 2. 2.5 3. 3.3 2. 2.5 3. 3.4

Profitability

SLIDE 24

Recurring Key Figures (R$ mn) 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net Inc ncome 15 159.9 9.9 21 215.6 5.6 16 163.1 3.1 26 268.3 8.3 37 373.2 3.2 64 645.8 5.8 1,02 1,020. 0.2

(-) Hedge/MTM – Foreign Issues and Credit Operations

(31.7) (9.6) (29.4) (22.9) (23.0) (30.2) (84.9)

(-) Exchange Variation - Equivalence - Branch

(5.1) 0.9 (2.6) 15.0 (6.0) 21.9 7.1

(-) Increase in Social Contribution rate – Credit Assignments

• 114.1
• 114.1

Recurring Net Income 196.7 224.3 .3 195.1 .1 276.2 .2 288.1 .1 654.1 .1 983.9 .9 Recurring ROAE (%) 24 24.2 .2% 28 28.5 .5% 22 22.2 .2% 30 30.4 .4% 31 31.3 .3% 20 20.5 .5% 27 27.7 .7% Recurring ROAA (%) 2.9 2.9% 3.4 3.4% 2.7 2.7% 3.6 3.6% 3.6 3.6% 2.5 2.5% 3.3 3.3% Recurring Efficiency Ratio (%) 26.3 .3% 27.4 .4% 28.4 .4% 31.2 .2% 28.8 .8% 28.3 .3% 28.9 .9%

Profitability

24 24

SLIDE 25

20 20

Ric Ricardo Ge Gelb lbaum

ricardo.gelbaum@bancodaycoval.com.br +5 +55 5 (11 11) 31 3138 38-1024 1024

Eric Erich Rom

• mani

erich.romani@bancodaycoval.com.br +5 +55 5 (11 11) 31 3138 38-1025 1025

Cl Claudin ine Wrobel

claudine.wrobel@bancodaycoval.com.br +5 +55 5 (11 11) 31 3138 38-0809 0809

"This material may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect the Bank's business. Many important factors may adversely affect the results of Banco Daycoval as described in management's estimates and forward-looking statements. These factors include, but are not limited to, the following: the performance of the Brazilian and international economies; fiscal, foreign-exchange and monetary policies; increasing competition in the companies segment; Banco Daycoval's ability to obtain funding for its operations; and changes to Central Bank rules and regulations. The words "believe," "may," "could," "seek," "estimate," "continue," "anticipate," "plan," "expect" and other similar words are used to identify estimates and projections. Considerations involving estimates and forward-looking statements include information relating to results and projections, strategies, competitive positioning, the industry environment, growth opportunities, the effects of future regulation, and the effects of competition. Such estimates and projections are valid only at the time of writing. Daycoval does not undertake to publish updates or review any of these estimates in response to new information, future events or other factors. In light of the risks and uncertainties involved, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make decisions based on the estimates, projections and forward-looking statements contained in this material."

In Investor r Rela latio ions

4Q19 Conference Call ll