Investor Relations Institutional Presentation His Historic De - - PowerPoint PPT Presentation

SLIDE 1

Investor

Relations

3Q18

Institutional Presentation

SLIDE 2

His Historic De Developments

2

• IPO
• Beginning of

activities in Brazil through Daycoval DTVM

• Begin building

comercial banking portfolio

• Creation of the Daycoval

Asset Management

• Beginning of payroll-

deduction activities

• Beginning of auto

loan activities

• Inauguration of

Daycoval’s 1st branch

• Upgrade to Baa3 by

Moody’s

• Issuance of USD300mn in

Eurobonds

• Daycoval is the first bank

to issue public Local Bonds

• Upgrade to BBB- by

Fitch

• Upgrade to Bovespa’s

Level 2 of Corporate Governance

• Second issuance of

Local Bonds

• Issuance of USD300mn

in Eurobonds

• Public offer for the acquisition
• f Shares and delisting from

Level 2

• Syndicated loan (A/B Loan) of

approximately US$ 200 million

1952 1968 1989 1994 2004 2006 2007 2008 2010 2011 2013 2014 2015

• Public Tender

Offer was successfully concluded

• 5th Issuance of

Local Bonds

• Syndicated loan (A/B

Loan) of US$ 275 million

• Daycoval 50th

Anniversary

• 6th Issuance of

Local Bonds

• New Independent Member
• f the Board and new

Officers

• 1st Trainee Program

2017 2018 2016

• Maison Bancaire is

founded by Salim Dayan in Lebanon

• Issuance of USD225mn

in Eurobonds

• Issuance of USD500mn in

bonds

• 4º Issuance of Local Bonds

(Letras Financeiras) of R$ 350mn

• Acquisition of Banco CIT Brasil
• Issuance of BRL410mn

in convertible bonds

2009

SLIDE 3

Corporate Governance

Sasson Dayan Chairman Nam Name / / Title Years at at Day Dayco coval Carlos Mo Moch che Day Dayan, Executive Officer

• Mo

Morris Da Dayan, Executive Officer

• Salim Day

Dayan, Executive Officer

• Al

Albert t Rou Rouben, Operations Officer 19 Al Alexandre Rhe Rhein, IT Officer 12 Al Alexandre Teixeira, Vehicles Officer 12 Claudinei Ap Aparecido Pe Pedr dro, Commercial Officer 18 Edu Eduardo Campos, Foreign Exchange Officer 9 El Elie Ja Jacq cques Miz Mizrahi, Commercial Officer 15 Ma Maria Re Regi gina R. R.M. Nogu gueira, Controller 28 Nilo Cavarza zan, Payroll Loans Officer 14 Pa Paulo Au Augu gusto Saba, Treasury and Markets Officer 3 Ri Rica cardo Gelbaum, IR and Institutional Officer 6

Boa

• ard of
• f Dire

Directors Boa

• ard of
• f Exe

Executive Offic fficers

Carlos Moche Dayan Member Morris Dayan Member Rony Dayan Member Gustavo Franco Independent Member Sergio Clemente Independent Member

Cap apital al St Structure

3 Shar hareholder Tota

• tal Commom Shar

hares* Controlling Shareholders 230,820,429 Tota

• tal

100.0%

(*) According to the Extraordinary Shareholders Meeting held on October 30, 2018, was approved the conversion of all the preferred shares issued by the Bank, (43,253,988 preferred shares) into common shares; and increase in the capital stock in the amount of R$ 361.5 million, through issuance of 26,696,649 common shares. Waiting ratification from BACEN.

SLIDE 4

2 4

Cor

• rporate Pro

rofil ile

Expanded Loan Portfolio

R$ 17.5 billion, up 10.0% in the quarter and a 24.7% increase in the last 12 months.

Basel III Ratio

15 15.0%, with the minimum required at 8.625%, and Shar Sharehold lder´s s Equity quity of R$ 3,344.1 million. Net Income R$ 194.2 million in 3Q18, 53.8% higher than 2Q18 and R$ 485.9 million in 9M18, evolution of 24.1% over 9M17. ROAE 23.6% p.a. in the quarter and 20.4% in 9 months and Ne Net Fi Finan nancia ial l Mar Margin in (NIM NIM) of 12.0% p.a. in 3Q18.

E-H portfolio

In 3Q18 closed at R$ 807.7 million, an improvement of 12.7% compared to 2Q18.

Loans overdue by more than 90 days/Loan Portfolio - including installments falling due -

was 2.8% versus 3.8% in 3Q17.

140 Distribution points

41 branches + 38 Daycred Stores (Payroll Loan) + 28 exchange bureaus +33 Daypag outlets (car licensing agents and fine financing).

National Coverage 1,880 Employees

(Sep/2018) Presence in 21 states + 1 overseas branch (Cayman Islands).

Fin Financial l Hig ighli lihgts

Daycoval is a diversified bank, specialized in the concession of credit for companies (small, medium and large) and in the retail segment, with a significant presence in foreign currency exchange operations.

Wide range of products and services

Credit Products, Foreign Exchange and Investments (has Online Platform) for Individuals and Companies.

Balance of LLP*

In 3Q18 ended at R$ 871, 7 million. The loan loss provision divided by the E-H Portfolio reached 107.9%.

(*) Excludes the additional provision of R$ 157.9 million.

SLIDE 5

5

Exp Expan anded ed Loa Loan n po portfolio

• reac

eaches s R$ R$ 17 17.5 .5 bill billion

• n in

in 3Q1 3Q18. 8.

14,078 16,033 15,654 15,954 17,548 3Q17 4Q17 1Q18 2Q18 3Q18

67.6% 28.4% 3.8% 8% 0.2% 2% Companies Payroll Loans Auto Loans Other

Exp Expanded Loan Loan Por

• rtfolio

lio (R$ R$ mn mn) 3Q18 18 2Q18 18 Chg hg. . 3Q 3Q17 17 Chg hg. .

Companies 7,504.9 6,939.5 8.1% 6,068.9 23.7% Receivables Purchase 2,567.4 1,809.1 41.9% 1,235.3 107.8% Leasing 760.0 670.5 13.3% 477.9 59.0% Avals and Sureties 1,024.4 904.6 13.2% 765.9 33.8% Tota

• tal Expanded Companies

11,856,7 10,323.7 14.8% 8,548.0 38.7% Payroll Loans 4,618,0 4,616.6 n.a. 4,625.8

• 0.2%

Payroll Card 366.6 349,3 5.0% 302.3 21.3% Tota

• tal Payroll Lo

Loans 4,984.6 4,965.9 0.4 0.4% 4,928.1 1.1 1.1% Tota

• tal Auto

to Lo Loans /Oth ther 661.0 624.2 5.9 5.9% 564.0 17.2% Tota

• tal DCC

46.0 40.5 13.6% 37.4 23.0%

Tot

• tal Exp

Expan anded Loa Loan Por

• rtfolio

lio 17 17,548.3 15 15,954.3 10 10.0% 14 14,077.5 24 24.7%

Breakdown Loa Loan Port

• rtfolio - %

Expa Expanded Loa Loan Port

• rtfolio – R$

R$ mn mn

+ 10.0% + 24.7%

SLIDE 6

72% 72% 13% 13% 6% 6% 3% 3% 2% 2%1% 1% 3% 3% Receivables Real Estate Financial Investments Equipments / Foreign goods Vehicles Agricultural Products Others 48% 48% 33% 33% 16% 16% 3% 3% Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years

Companies Por

• rtfolio – R$

R$ mn mn

Maturity of 48%

• ver the next

90 days

58% 58% 17% 17% 11% 11% 10% 10% 4% 4% Southeast South Northeast Mid-West North

6

Companies Port

• rtfolio:

: Growth of 14.8% compared to 2Q18. Hig ighlights

85% of the tickets are lower than R$ 500,000



90% of active clients with sales less than R$ 300 mn/year



59% of the balance due is from clients with sales up to R$ 300 mn/year



Focus on companies with anual revenues between R$ 10mn and R$ 300mn



94% of the clients have a balance due lower than R$ 5 mn



Col

• llateral - %

Geographic Dis Distribution - % Out utstanding Operation - %

8,548 10,533 10,106 10,324 11,857 3Q17 4Q17 1Q18 2Q18 3Q18

+ 38.7% + 14,8% + 14.8%

SLIDE 7

Brea reakdown Companies R$ R$ (mn mn) 3Q18

• Chg. 1Q18

Working Capital 4,700.2 15.4% Receivables Purchase 2,567.4 41.9% Guaranteed Account 1,674.8 7.3% Avals and Sureties 1,024.4 13.2% Le Leasi sing 760.0 13.3% Trade Finance 716.6

• 17.8%

BNDES 413.3

• 4.9%

Tota

• tal Companies

11,856.7 14.8% 54% 22% 9% 9% 6% 6% 6% 6% 3% 3%

Working Capital/Guaranteed Account Receivables Purchase Avals and Sureties Trade Finance Leasing BNDES

Co Companie ies Port

• rtfol

folio io: Diversification of the sectorial breakdown

Prod

• duct Breakdown

Con

• ncentratio

tion of

• f Credit

0.8% 3.6% 6.1% 10.4% 14.9%

Largest Debtor 10 Largest 20 Largest 50 Largest 100 Largest

* % over the total of the Companies portfolio

7

Con

• ncentratio

tion by by Sector

3Q18 Ind ndustry 43.4% Service ce 29.7%

Commerce ce 21.8%

10 10 La Largest Se Sectors (*) *) Road Freight Transportation 3.0% Oil Industry 3.0% Real Estate Development 2.1% Holding 2.1% Wholesale of Cereal 1.9% Auto Parts and Accessories Industry 1.5% Sugar and Alcohol Plant 1.5% Poultry Industry 1.4% Real Estate Development 1.3%

Le Leas asin ing Por

• rtfoli

lio  Growth of 13.3% in 3Q18 and 59.0% in 12 months.  Market Share of 5.75% (Base date June/18 – Source: Abel).  Volume originated in the quarter was R$ 169.6 million, and in the first nine months was R$ 424.9 million.  Total number of Contracts registered in nine months: 1,342.  Average maturity: 43 months.  81% of the new volume originated in 3Q18 was through the branches.  99% of the new volume originated in 3Q18 was classified between A-C rating.

SLIDE 8

Agência Aracaju | SE

• Av. Ministro Geraldo Barreto Sobral, 2100 - Edifício JFC Trade Center – Sl 1206 / 1207

Network In 2018 the Aracaju – SE and Florianópolis – SC branches moved to new addresses.

41 branches. During the quarter, we opened a new branch in Barra da Tijuca – RJ. 

• Av. Jornalista Rubens de Arruda Ramos, 1168 - (Av. Beira Mar Norte)

Florianópolis – SC Branch Aracaju – SE Branch

8



SLIDE 9

Payrol

• ll Loans

Loans: : Balance of R$ 4,985 million

Tot

• tal Payroll Loa

Loan – R$ R$ mn mn High ighligh ghts

31.7% 29.1% 13.6% 13.2% 8.4% 4.0% INSS State Government Army Municipalities Government /SIAPE Others Number of contracts in the portfolio 3Q18: 1,070.000 Average ticket: R$ 5,200 Portfolio Duration: 15 months Average Interest Rate (year): 27.3%



38 own stores-IFP: 14.0% share of sales in the quarter



Refinancing Origination (Refin): 42%



Payroll Card: 366,600



30.1% 26.5% 17.4% 14.5% 8.7% 2.8%

INSS Army State Government Municipalities Government /SIAPE Others

9

4,92 928 4,88 884 4,91 915 4,96 966 4,98 985

3Q17 4Q17 1Q18 2Q18 3Q18

Breakdown Payr yroll ll Loan Loan - % Por

• rtfolio

lio Orig igin inati tion – R$ $ mn mn Breakdown Payr yroll ll Orig igin inatio ion - %

346 398 458 523 521 301 349 362 329 373 647 747 820 852 894 3Q17 4Q17 2Q18 2Q18 3Q18 Net Origination Refin. Total

SLIDE 10

Day Daycred Auto Auto Loan Loans: : increase of 5.9% compared to 2Q18.

Maturity of 96% over the next 3 years

Highlights

Focus on the Southeast of Brazil Number of Promoters: 141



Number of contracts in the portfolio 2Q18: 96,000 Average ticket: R$ 6,800 Portfolio Duration: 14 months Average Interest Rate (year): 39.3% p.a. Vehicle average age: 12 years (80% light vehicles and 20% heavy vehicles)



10 10

Au Auto Loa Loans - Out utstanding Ope peration Orig igination of

• f Aut

Auto Loa Loan Por

• rtfolio – R$

R$ mn mn Au Auto Loa Loan Por

• rtfolio – R$

R$ mn mn

86 86 72 72 59 59 45 45 42 42 45 45 53 53 67 67 79 79 94 94 91 91 103 03 113 13 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 17% 17% 37% 37% 42% 42% 4% 4% Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years 564 64 588 88 594 94 624 24 661 61 3Q17 4Q17 1Q18 2Q18 3Q18

+ 5.9% + 17.2%

SLIDE 11

2,427 2,561 2, 2,655 2,842 3,486 3Q17 4Q17 1Q18 2Q18 3Q18  Daycoval Asset manages 64 64 funds: 33 33 Multi timarket Funds, seven Fixed Inco come Funds, two Sto tock ck Funds, five FIDCs, 12 12 Investment Cl Club funds,

• ne Real Esta

tate te Fund, three Holding Funds and one Managed Po Portf tfolio.  Gro ross Re Revenue of R$ R$ 2.6 mn mn though the management of investment funds in n 3Q1 Q18 and R$ R$ 7.3 mn mn in n 9M18.  R$ 1.3 bi billion Management and Custory services.

Ass Asset Mana anagement – R$ R$mn

+ 22.7% + 43.6%

Man anag agement of

• f R$

R$ 3.5 3.5 bil billion in in 3Q1 3Q18.

Long-term relationships  Investment Fund management developed according to each client’s profile and supported by: Strong control of risk based on capital preservation Multidisciplinary team

Foc

• cus

s on

• n the Client’s pr

profile and and ne needs

Management agility and objectivity

11 11  The fund Dayco coval Cl Classic FI FI RF RF Cr Credito to Privado reached R$ 1.2 billion in 3Q18.

SLIDE 12

APP APP Day Dayconnect

Onlin nline Inve nvestm tment pl plat ataform daycovalinveste.com.br Wi Wide ran ange of

• f Pr

Prod

• ducts

ts LCI, LCA, Local Bond, CDB (bank depositary receipt, Funds and Automatic Credit. Con

• nsult

ltin ing The client has access to a direct channel with investment specialist via phone, e-mail or Whatsapp. Auto utomatic tic inve nvestm tment Daycoval launched Investe, and automatic investment service for clients with profitability of 100%

• f the CDI and daily liquidity.

Dive iversif ific icatio ion of

• f po

portfolio lio Availability of products issued by the Bank (including productions from other institutions). Dayc aycoval Autom tomatic tic Credit This is na approved credit limit for individuals who have fixed income investments in Daycoval Investe.

12 12

SLIDE 13

28 28 Ex Exch change Bur ureaus 128,900 oper

• perations and

nd tur urnover of

• f R$

R$ 348.5 mi million in n 3Q1 Q18 At Daycoval Câmbio you can find the main foreign currencies in circulation in the world. Foreign Currency 13 13

Chinese Yuan

Cards available at the followings currencies: American Dollar| Canadian Dollar | Australian Dollar New Zealand Dollar | Euro and Pound. VI VISA A TRAV RAVEL MON MONEY Cards available at the followings currencies: American Dollar| Canadian Dollar | Australian Dollar New Zealand Dollar | Euro and Pound. CORPORATE TRAVEL CARDS Advantages

• Purchases and withdrawals always made in the

local currency of the country where you are;

• Exemption from currency exchange risk;
• 24-hour service center, free and in Portuguese;
• Linked to an online expense management

platform.

CARDS IN FOREIGN CURRENCY

• Available for loading up to 6 currencies on a single card;
• Chip- and password-protected;
• Check balance and online statement through the

MasterCard website;

• No foreign exchange variation;
• Not linked to your bank account;
• Accepted in more than 32 million establishments and ATMs;
• Free replacement of lost or stolen cards;
• MasterCard Benefits Program.
• Available for loading in up to 6

currencies;

• 1 card per currency;
• Chip and password-protected;
• No foreign exchange variation;
• Not linked to your bank account;
• Accepted in millions of

establishments and ATMs around the world;

• 24-hour service center, free and in

Portuguese;

• Free replacement of lost or stolen

cards;

SLIDE 14

Fun Funding: Increase of 16.1% compared to 3Q17. Fun Funding – R$ R$ mn mn

Gl Glob

• bal

Long Term Ba2 Natio tional Long Term Aa2.br Short Term BR-1 Pers rspectiv tive Stable Oc Oct/18 Gl Glob

• bal

Long Term BB- Short Term B Natio tional Long Term AA (bra) Short Term F1+(bra) Pers rspectiv tive Stable Jun un/18 Gl Glob

• bal

Long Term BB- Short Term B Natio tional Long Term brAA+ Short Term brA-1+ Pers rspectiv tive Negative Jul ul/18 BR BRMP 1 Low Risk for Short Term (up to 2 years) – Very safe Oc Oct/18

Ris Risk Rati Rating Age Agencies

Fun undin ing (R$ R$ mn mn) 3Q 3Q18 18 2Q 2Q18 18 Chg hg. . 2Q 2Q17 17 Chg hg. .

Dep eposits 5,02 027.4 4 4,75 755.4 4 5.7% 4,80 803.1 1 4.7% Letter of Credit - LCI + LCM 1,416.9 1,233.2 14.9% 1,051.7 34.7% Total al Depo posi sits + LC LCI + LC LCM 6,444 444.3 3 5,988 988.6 6 7.6% 5,854 854.8 8 10.1% Private Offerings 5,527.5 5,773.2

• 4.3%

4,892.0 13.0% Public Offerings 997.9 980.7 1.8% 448.0 n.a. Lo Local al Bond nds (Letr Letras as Fina nanc nceiras as) 6,525 525.4 4 6,753 753.9 9

• 3.4%

5,340 340.0 22.2% Subor

• rdina

nated ed Lo Local al Bond nds (Letr Letras as Fina nanc ncei eiras) 10.5 5 10.3 3 n.a.

• n.a.

Bond nds 1,945 945.8 8 1.906 906.1 1 2.1% 1,614 614.7 7 20.5% Foreign borrowings 1,982.8 2,105.0

• 5.8%

1,651.6 20.1% Domestic onlendings 393.4 433.0

• 9.1%

446.8

• 12.0%

Borrowing ng and and Onlend nding ng 2,376 376.2 2 2,538 538.0

• 6.4%

2,098 098.4 4 13.2%

Tot

• tal

17 17,302.2 17 17,196.9 0. 0.6% 14 14,907.9 16 16.1% + 16.1%

14 14

14% 14% 14% 15% 14% 11% 11% 10% 11% 11% 36% 37% 39% 39% 38% 39% 38% 37% 35% 37% 3Q17 4Q17 1Q18 2Q18 3Q18

Borrowing and Onlending Foreign Issuances Local Bonds Total Deposits + LCA + LCM

14,908 17,197 17,302 15,692 15,718

SLIDE 15

15 15

Fund nding ng Averag age Term to to Ma Matur urity Forei eign Issu ssuanc nces es

• Borrowing

ng and and Onlend nding ng 426 426 Total al Funding 349 349 21.4% 44.2% 31.0% 3.0% 0% 0.4% 4%

Up tp 3 months 3-12 months 1-3 years 3-5 years

• ver 5 years

37.4% 29+2% 23.2% 7.7% 7% 2.5% 5%

Up tp 3 months 3-12 months 1-3 years 3-5 years

• ver 5 years

Maturity of 67% over the next 12 months Maturity of 66% over the next 12 months

Fun unding

Averag age e term to Ma Matur urity (1) days

Total Deposits 157 157 Interbank Deposits 247 247 Local Bonds (letras financeiras) 439 439 LCA (Letter of Credit Agribusiness) 175 175 LCM (Letter Home Mortgage) 220 220 Foreign Issuances 172 172 Borrowing and Onlending (2) 326 326 Leasing 214 214 BNDES 399 399 Tota

• tal Fun

unding 315 315 Loan

• an Po

Portf tfolio by by Segment

Averag age e term to Ma Matur urity (1) days

Companies 197 197 Trade Finance 88 88 Payroll Loans 474 474 Auto Loans 445 445 DCC + Other 1,198 Leasing 564 564 BNDES 396 396 Tota

• tal Loan
• an Po

Portf tfolio 310 310

Free ee Cash ash of

• f

R$ 4.0 0 billion

(1) From September 30, 2018

* Excludes the pay ayments of

• f

Bon

• nd

and and tran anche hes

• f
• f

mul ultilat ater eral al

• r
• rgan

anizat ation

• n

sy synd ndicat ated ed op

• per

erat ations (IFC FC and and IIC).

*Asset & Liability Maturity – Positive GAP of 40 days

Averag age Term to to Ma Matur urity Total al Lo Loan Portfol

• lio

310 310

Loan

• an Po

Portf tfolio - Outs tstanding Ope perations Fun unding – Outs tstanding Ope perations

Ass Asset et & & Liab Liability Matu aturity – Pos

• siti

itive GAP AP of

• f 5

5 da days ys

(1) From September 30, 2018; (2) Does not consider Avals and Sureties

SLIDE 16

2.2 2.3 2.4 2.6 2.7 2.8 3.3 3.5 4.1 4.0 4.0 6.0 5.7 5. 5.2 0.4 0.5 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Additional Provision 6.1 5.7

4.6 5.3 5.5 6.3 6.5 6.5 5.5 6.4 6.9 6.8 6.1 6.7 7.4 6.2 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Considering Additional Provision (% % Loan Port

• rtfolio)
• )

Tot

• tal Prov
• vis

isio ion

Quality of Loan Portfolio

(1) Includes Receivables purchase and Leasing

Evolu lutio tion LLP LLP / Por

• rtfolio

lio by by Segment (%)

16 16

Ve Vehicle e Prov

• vision

7.8 8.6 9.7 10.5 11.2 11.4 11.6 11.2 10.6 9.4 8.6 8.0 7.8 7. 7.6 1.4 1.5 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Additional Provision 9.1 9.2

Payroll Prov

• visi

sion

• n

Compa pani nies s Portfol

• lio
• Provision
• n(1)

6.0 7.1 7.2 8.9 8.9 8.8 6.4 8.0 8.4 8.3 7.1 7.1 6.7 5. 5.2 1.2 1.1 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Additional Provision 7.9 6.3

597 674 735 802 840 842 765 827 911 899 931 997 1,107 1030 194 156 173 164 175 162 121 135 180 92 147 162 253 119 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Considering Additional Provision Provision Balance

Bala alance and nd Es Establis lishment t of

• f Provis

isio ion

R$ R$ MN 964 6.4 5.3 872

SLIDE 17

LLP LLP Bala alanc nce / Portf

• rtfolio E-H

H reac eached 10 107.9 7.9%.

17 17

Wri Write-of

• ff

(R (R$ $ mn mn)

3Q17 4Q17 1Q18 2Q18 3Q18

9M17 M17 9M18 M18 Companies (53.1) (68.5) (50.7) (98.8) (150.8) (121.0) (300.5) Retail (49.7) (47.9) (44.6) (44.3) (45.5) (151.1) (134.5) Total al (102. 102.8) (116. 116.4) (95. 95.3) 3) (143. 143.1) (196. 196.3) (272. 272.1) (435. 435.0)

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

Lo Loan Port

• rtfolio E-H

H (R (R$ $ mn mn) 3Q17 4Q17 1Q18 2Q18 3T18

Companies1 629.7 619.1 591.6 585.6 476.9 Leasing 13.6 9.3 9.3 9.5 10.3 Payroll 226.1 218.3 302.5 274.3 252.5 Auto 57.8 53.7 51.9 52.5 53.7 DCC+Other 6.2 2.9 2.9 3.5 14.3 Total al 933. 3.4 903. 3.3 958. 8.2 925. 5.4 807. 7.7 Fina nal Balanc nce LL LLP2

2

899. 9.7 930. 0.5 997. 7.1 963. 3.8 871. 1.7 LL LLP Balan ance/P /Por

• rtfol
• lio
• E-H (%)

96.4% 103. 3.0% 104. 4.1% 104. 4.1% 107. 7.9%

(1) Considers receivables purchase E-H portfolio.

61 106 22 77 79 246 178 21 33 129 22 13 124 164 10 8 11 11 13 13 37 34 143 14 14 158

3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Companies Payroll Loans Auto Loans + others Additional Provision(*) 147 147 253 253 92 92 162 162 407 407 534 534 119 119

Recovered Loa Loans (R$ $ mn mn) Prov

• vis

isio ion Exp Expenses by by se segment (R$ $ mn mn)

(*) Does not consider Additional Provision (2) Does not consider Additional Provision.

29,0 23.4 58.0 27.8 32.0 88.7 117.8 9.6 9.9 10,5 10.0 10.9 27.8 31.4 38.6 33.3 68.5 37.8 42.9 116.5 149.2 24% 17% 93% 39% 42% 29% 55% 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Companies Retail % Recovered Loans (1)

Considering the Additional LLP Balance of R$ 157.9 million in 3Q18, the LLP Balance/E-H Portfolio was 127 127.5%.



SLIDE 18

Qu Qual ality ind indicators s of

• f cr

credit port portfolio remai ain controlled.

Overdue Loan

• ans

3Q1 Q18 2Q1 Q18 3Q1 Q17

Overdue Loans more than 90 days past due - R$ mn

160.2 233.7 172.1

Overdue Loans more than 90 days past due - R$ mn – falling due installments

462.1 508.3 511.1

LLP Balance / Overdue Loans > 90 days (%)

544.2% 412.4% 522.8%

LLP Balance / Overdue Loans > 90 days (%) – falling due installments

188.7% 189.6% 176.0%

Over erdu due Lo Loan ans s > 90 days/ s/Loa

• an Portfolio
• (%)

1.0% 1.6% 1.3%

Over erdu due Lo Loan ans s > 90 days/ s/Loa

• an Portfolio
• (%) – falling due installments

2.8% 3.4% 3.8%

351 353 417 617 526 419 580 527 511 447 494 508 462

2.8% 2.7% 3.4% 4.9% 4.2% 3.0% 4.5% 4.0% 3.8% 2.9% 3.3% 3.4% 2.8% 8% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Past due operations > 90 days (R$ mn) Past due operations > 90 days/Loan Portfolio

18 18

Pas ast due due ope perati tions - mor more than an 90 90 da days Ins nstallm llments fa falli lling du due

R$ R$ mn mn

SLIDE 19

87 74 114 174 169 41 87 92 112 107 163 182 100 1.3% 1.0% 1.8% 2.6% 2.5% 0.5% 1.2% 1.2% 1.4% 1.1% 1.8% 1.9% 0.9% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio 147 133 172 306 222 97 205 174 196 152 180 227 157 2.2% 1.8% 2.7% 4.6% 3.3% 1.2% 2.8% 2.3% 2.5% 1.6% 1.9% 2.4% 1.5% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio

Pa Past due due loa

• ans >

> 90 da days Pa Past due due loa

• ans >

> 90 da days – installmen ents falling due due

19 22 25 29 30 36 41 47 45 45 40 40 50 0.4% 0.4% 0.5% 0.6% 0.6% 0.7% 0.8% 0.9% 0.9% 0.9% 0.8% 0.8% 1.0% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio 119 125 148 217 217 243 303 289 264 247 267 233 255 2.4% 2.4% 2.6% 2.8% 4.2% 4.8% 6.1% 5.7% 5.3% 5.1% 5.4% 4.7% 5.1% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio

Pa Past due due loa

• ans >

> 90 da days Pa Past due due loa

• ans >

> 90 da days – installmen ents falling due due

16 17 18 18 16 16 14 13 14 10 10 11 11 2.0% 2.2% 2.4% 2.6% 2.5% 2.6% 2.5% 2.4% 2.1% 1.8% 1.7% 1.7% 1.6% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio 71 78 79 78 71 67 60 54 50 44 43 45 45 9.0% 10.1% 10.8% 11.3% 11.2% 11.3% 10.8% 9.8% 9.0% 7.7% 7.3% 7.3% 6.8% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/Loan Portfolio

Pa Past due due loa

• ans >

> 90 da days Pa Past due due loa

• ans >

> 90 da days – installmen ents falling due due 19 19

COMPANIES PAYROLL VEHICLES

SLIDE 20

20 20 Ef Efficiency Ra Rati tio (R$ R$ mn mn) 3Q1 Q18 2Q1 Q18 Chg. . 3Q1 Q17 Chg. . 9M1 M18 9M1 M17 Chg. . (+) Personnel + Administrative Expenses + Commisions

(222.0) (205.5) 8.0% (189.1) 17.4% (621.7) (554.0) 12.2%

(+) Depreciation and Amortization

2.6 2.6

• 0.7

n.a. 7.7 1.8 n.a.

Tota

• tal Ex

Expenses (A) A)

(219. 219.4) (202. 202.9) 8.1% (188. 188.4) 16.5% (614. 614.0) (552. 552.2) 11.2%

(+) Income from Financial Intermediation - LLP

620.1 616.3 0.6% 403.8 53.6% 1.815.2 1,379.4 31.6%

(+) Income from Services Provided

43.4 38.6 12.4% 34.8 24.7% 119.9 93.6 28.1%

(+) Income from Receivables purchase

63.5 55.1 15.2% 47.2 34.5% 179.5 160.6 11.8%

(+) Exchange Rate Variation

(0.1) (0.1) 0.0% 84.9 n.a. (0.3) 64.7 n.a.

Tota

• tal Inco

ncome (B)

726. 6.9 9 709. 9.9 2.4% 570. 0.7 7 27.4% 2,114 114.3 3 1,698 698.3 3 24.5%

Ef Effici ciency cy Ra Rati tio (A/B A/B) (%) %)

30.2% 28.6% 1.6 6 p.p 33.0%

• 2.8

8 p.p 29.0% 32.5%

• 3.5

5 p.p

33.0 30.4 28.3 28.6 30.2 32.5 29.0 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

Efficiency Ratio - %

Effic fficiency Ratio atio of

• f 30

30.2 .2% in in 3Q1 3Q18

SLIDE 21

NIM-AR of

• f 12

12.9 .9 % in in 3Q18 Q18.

(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.

21 21

12.3 13.6 13.6 13.8 12.9 12.4 13.0

3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

Adju djusted Net Net Interest Mar argin in and nd Recurrin ing - (NIM NIM-AR) R)(1

(1) ) - (%)

Re Recu curring Ad Adju justed Net t Inte terest Mar Margin (NIM-AR) (%) %) 3Q1 Q18 2Q1 Q18 Chg. . 3Q1 Q17 Chg. . 9M1 M18 9M1 M17 Chg. .

Adjusted Income from Financial Intermediation adjusted (mn) 683.5 671.3 1.8% 535.9 27.5% 1,994.4 1,604.7 24.3% Hedge/MTM R$ (mn) 17.2 (14.0) n.a. 2.6 n.a. 6.6 50.2 n.a. Hedge Interest rate (DI) R$ (mn) (0.4) 1,7 n.a. (4.3) n.a. (0.8) (10.5) n.a. Recurring ng Adju just sted d Income e from

• m Fina

nanc ncial Inter ermedi diation

• n (A)

) R$ (mn mn) 666, 6,7 683. 3.6

• 2.5%

537. 7.6 24.0% 1,988 988.6 6 1,565 565.0 27.1% Average Remunerated Assets R$ (mn) 23,699.1 22,532.5 5.2% 19,918.6 19.0% 22,601.0 19,787.4 14.2% (-) Expenses of financial intermediation add back provisions R$ (mn) (1,981.9) (1,733.1) 14.4% (1,638.5) 21.0% (1,868.4) (1,358.6) 37.5% Averag age Remun unerat ated ed Asse sets (B) ) R$ (mn mn) 21,71 717. 7.2 2 20,79 799. 9.4 4 4.4% 18,28 280. 0.1 1 18.8% 20,73 732. 2.6 6 18,42 428. 8.8 8 12.5% Recurring ng Adju just sted d Ne Net Inter erest st Ma Margin n (NIM-AR) R) (%p. p.a. a.) (A/B /B) 12.9% 13.8%

• 0.9

9 p.p 12.3% 0.6 6 p.p 13.0% 11.5% 1.5 5 p.p

SLIDE 22

3,009.0 3,344.1 485.9 (148.3) (2.5)

Dec/17 Net Income Interest on Equity and Dividends Asset Valuation Adjustmet Sep/18

14.9% 16.1% 15.9% 15.8% 15.0% 3Q17 4Q17 1Q18 2Q18 3Q18

Bas asel el Ind ndex of

• f 15

15.0 .0% in in 3Q1 3Q18.

(1) Basel Index 3 minimum 8.625%.required by the Central Bank.

3,009.0 2,922.9 3,127.5 3,196.6 3,344.1 3Q17 4Q17 1Q18 2Q18 3Q18 R$ R$ MN MN R$ R$ MN MN 22 22

Shar harehol

• lder's Equ

quity ity Bas asel l Inde ndex III III (1)

1)

Chan ange in n Shareholder’s Equ quit ity – September 20 2018

SLIDE 23

143. 43.6 130. 30.0 165. 65.4 126. 26.3 194. 94.2

3Q17 4Q17 1Q18 2Q18 3Q18

19.9 17..3 21.8 15.7 23.6 18.8 20.4

3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

Net Inc ncome of

• f R$

R$ 48 485,9 5,9 mil illion

• n and

and Return on

• n Avera

verage Equ quity ity (R (ROAE) ) of

• f 20

20.4% .4% in in 9M 9M18 18.

23 23

391. 91.5 485. 85.9

9M17 9M18

R$ R$ MN MN

Net Net Inc ncom

• me

Retu turn on n Average Equ quit ity y (ROAE) ) - % % Retu turn on n Average Assets ts (ROAA) ) - % %

2.5 2.2 2.8 2.0 2.9 2.3 2.6

3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

Re Recu curring Key Figu gures (R$ R$ mn mn) 3Q1 Q18 2Q1 Q18 9M1 M18 9M1 M17

Net Income 194.2 126,3 485.9 391.5 Additional Provision* (10.4) (90,0) (100.4)

• Hedge/MTM R$ (mn)

9.5 (7,7) 3.6 27.6 Hedge Interest rate (DI) R$ (mn) (0.2) 1,0 (0.4) (5.8) Exchange Variation - Equivalence - Branch 5.8 20,6 27.0 (3.3) Adju justed ed Ne Net Incom

• me

189. 9.5 202, 2,4 556. 6.1 372. 2.9 Adju justed ed ROAE (%) 23.1% 1% 25,2% 2% 23.3% 17.9% Adju justed ed ROAA (%) 2.9% 3,2% 2% 3.0% 2.2% Adju justed ed Eficienc ncy Ratio (%) 30.2% 28,1% 1% 29.1% 33.4%

(*) In 3Q18 refers to the gross amount of R$ 14.6 million for credit operations and R$ 2.8 million for guarantees

• perations .

SLIDE 24

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

• f 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
• ther 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

3Q18 In Instit itutional Presentation

24 24