1Q11 Presentation

The financial information contained herein is consolidated, and includes the financial statements of the Bank and its subsidiaries JMalucelli
Seguradora, JMalucelli Seguradora de Crédito, JMalucelli Re., JMalucelli Agenciamento, JMalucelli Distribuidora de Títulos e Valores Mobiliários,
and Paraná Administradora de Consórcio. All information, except where otherwise indicated, is expressed in Brazilian currency (Reais) and was
prepared based on the accounting principles pursuant to the Brazilian Corporate Law, the regulations and instructions issued by the Brazilian
Monetary Council (CVM), the Central Bank of Brazil (BACEN), the Brazilian Securities and Exchange Commission (CVM), the Brazilian Private
Insurance Council (CNSP), the Brazilian Private Insurance Authority (SUSEP), and the Brazilian Accounting Standards Board (CPC), as
applicable.

► 1Q11 HIGHLIGHTS

► NET INCOME
In 1Q11, net income totaled R$33.5 million, an increase of 50.0% year-over-year and of 7.3% compared to the
adjusted net income recorded in 4Q10.

► INSURANCE OPERATIONS
In 1Q11, the insurance segment accounted for 48.8% of the consolidated result, driven by the good performance of
JMalucelli Seguradora and JMalucelli Resseguradora. The amount of premiums retained by both companies in the
quarter was 13.4% higher than in 1Q10.

► LOANS
In March 2011, the loan portfolio totaled R$1,625.9 million, an increase of 4.8% compared to 4Q10 and of 21.5%
from 1Q10. Our loan portfolio has been growing but at the same time the quality of our assets has been maintained.
The delinquency rate measured by level H loans was 1.9% in the period, unchanged from 4Q10. Paraná Banco does
not assign loans to fund its operations; the last time it assigned a portfolio was at the end of 2008. The balance of the
assigned portfolio represented only 1.2% of the overall portfolio at the end of March.

IR Contact

Cristiano Malucelli Mauricio Fanganiello Marianne C. Baggio
IR Director IR Manager IR Specialist
(+55 41) 3351-9950 (+55 41) 3351-9765 (+55 41) 3351-9645

www.paranabanco.com.br/ri | ri@paranabanco.com.br

1

► KEY INDICATORS

Balance Sheet (R$ thousand) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Total Assets 3,188,486 3,073,980 3.7% 2,929,431 8.8%
Loan Operations 1,625,870 1,551,918 4.8% 1,338,195 21.5%
Allowance for Doubtful Accounts (PDD) 51,198 50,714 1.0% 57,769 (11.4%)
Total Deposits 1,458,285 1,301,842 12.0% 1,062,649 37.2%
Term Deposits 1,249,335 1,068,022 17.0% 935,334 33.6%
Shareholders' Equity 854,713 827,660 3.3% 805,585 6.1%

Income Statement (R$ thousand) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Net interest income 61,746 64,974 (5.0%) 49,476 24.8%
Personnel Expenses 14,830 10,530 40.8% 9,723 52.5%
Administrative Expenses 22,643 25,302 (10.5%) 18,237 24.2%
Operating Results 51,312 47,031 9.1% 31,298 63.9%
Net Income 33,541 33,748 (0.6%) 22,360 50.0%

Performance Indicators (% ) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

ROAE - Return on Average Shareholders’ Equity (p.a.) 16.9 17.5 (0.5 p.p.) 11.7 5.2 p.p.
ROAA - Return on Average Assets (p.a.) 4.4 4.5 (0.1 p.p.) 3.3 1.1 p.p.
Net Interest Margin - NIM (Bank exclusively) 11.8 10.6 1.2 p.p. 12.9 (1.1 p.p.)
Efficiency Ratio 45.1 46.1 (1.0 p.p.) 50.4 (5.3 p.p.)
Combined Ratio (JMalucelli Seguradora) 65.1 66.4 (1.3 p.p.) 77.7 (12.5 p.p.)
Amplified Combined Ratio (JMalucelli Seguradora) 47.3 55.0 (7.7 p.p.) 64.9 (17.6 p.p.)

Loan Portfolio Quality (% ) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Allowance for Doubtful Accounts (PDD)/Loan Portfolio 3.2 3.3 (0.1 p.p.) 4.3 (1.1 p.p.)
NPL (overdue > 60 days / loan portfolio) 3.9 4.1 (0.2 p.p.) 4.9 (1.0 p.p.)
Delinquency Index (> 90 days / loan portfolio) 3.2 3.4 (0.2 p.p.) 4.5 (1.3 p.p.)
Delinquency Index (> 180 days / loan portfolio) 1.9 1.9 0.0 p.p. 2.7 (0.9 p.p.)
Coverage Index (PDD / > overdue 60 days) 81.4 80.6 0.7 p.p. 87.3 (5.9 p.p.)
Coverage Index (PDD / > overdue 90 days) 101.6 99.1 2.5 p.p. 106.9 (5.4 p.p.)
Coverage Index (PDD / > overdue 180 days) 175.4 185.7 (10.2 p.p.) 180.0 (4.6 p.p.)
Loss coverage (written-off credits / consolidated portfolio) 0.5 0.5 0.0 p.p. 1.4 (0.9 p.p.)

JMalucelli Seguradora (R$) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Direct premiuns (DPVAT + surety bond) 70,447 102,161 (31.0%) 54,258 29.8%
Retained premiums (DPVAT + surety bond) 29,351 25,512 15.0% 25,179 16.6%
Insurance claims (DPVAT + surety bond) (10,224) (5,672) 80.3% (9,937) 2.9%

JMalucelli Resseguradora (R$) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Direct premiuns 36,028 68,517 (47.4%) 22,745 58.4%
Retained premiums 8,839 13,172 (32.9%) 8,496 4.0%

Performance per Share (R$) 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Total Number of Shares 88,209,532 88,209,532 0.0% 93,830,032 (6.0%)
Treasury Shares 0 0 n.d. 2,056,100 (100.0%)
Free Float 22,684,972 22,684,972 0.0% 26,137,289 (13.2%)
Net Earnings per Share 0.38 0.38 (0.6%) 0.24 56.1%
Book Value per Share 9.69 9.38 3.3% 8.78 10.4%
Market Value per Share 11.97 13.49 (11.3%) 10.53 13.7%
Dividends/ Net Interest on Equity per Share 0.07000 0.25000 (72.0%) 0.06000 16.7%

Supplementary Information 1Q11 4Q10 1Q11 X 4Q10 1Q10 1Q11 X 1Q10

Number of Employees (Consolidated) 693 695 (0.3%) 626 10.7%
Number of Franchises in Operation 85 85 0.0% 86 (1.2%)
Payroll-Deductible Loan Origination (R$ million) 302,073 277,929 8.7% 233,602 29.3%

2

► LETTER FROM THE MANAGEMENT
The macro-prudential measures adopted by the Central Bank of Brazil show credit tightening is a key factor to hold
back inflation pressures that threaten the economy. Central Bank's circular letter No. 3,515, of December 2010,
raised the capital requirement for certain financial transactions, placing us at a privileged position in the market. Our
capitalization allows us to continue to originate new businesses in a very sustainable manner. We believe this is a
scenario of opportunities. In this quarter, we reached R$302 million in payroll-deductible loan origination, resulting in
a growth of 4.8% in our credit portfolio.

We are completing the structuring of our middle market division, aligning this structure to our strategy to grow in
Paraná and São Paulo. We are now adapting our middle market structure and processes with the support of a
consulting firm, which has helped us reposition this business. We strongly believe that as soon as we have the
appropriate structure, we will be able to achieve important and diversified volumes, with limited exposure to amounts
relative to the size of the borrower.

In our insurance business, JMalucelli Seguradora posted a good result in the first quarter of 2011, with an increase
of 34.9% in the volume of surety bond premiums compared to the year-ago quarter. This increase in premiums adds
to the expectation that the market will grow fueled by large investments in infrastructure in the upcoming years in
Brazil. The RDC (Public Procurement Special Regime) is expected to be passed, and it will change the rules for
public bids in Brazil, consequently expanding the potential of the surety bond market.

Ultimately, the transaction with Travelers represents the beginning of a very productive and promising partnership.
We have also moved our insurance and reinsurance offices to a larger building, and started structuring our Property
& Casualty team, which will join our existing surety bond team and will be located in São Paulo. Two executive
officers appointed by Travelers have already started working at our insurance holding, one in the strategic planning
area and the other as the holding's CFO. We are optimistic about Paraná Banco's insurance division, and our goal is
to keep our leading position in the surety bond market while at the same time starting our Property & Casualty (P&C)
operations side-by-side with Travelers.

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► PROFITABILITY
► Net Income, Adjusted Net Income, ROAE, ROAA and Net Interest Margin (NIM)

Net income
(R$ thousand)
∆% YoY ∆% QoQ
50.0% 33,748 (0.6%) 33,541

22,360

48.8%
39.1%
45.5

1T10 4Q10 1Q11

Participation of insurance sector

In 1Q11, consolidated net income totaled R$33.5 million, unchanged compared to 4Q10, and 50.0% higher than the
result recorded in the first quarter of 2010. This increase is mostly due to a higher interest income and income from
transactions with securities, along with the good performance of the insurance and reinsurance operations in the
period. Insurance company JMalucelli and reinsurance company JMalucelli Re accounted for 48.8% of our earnings
for the quarter.

With net equity of R$854.7 million, our consolidated ROAE reached 16.9% in 1Q11, a decrease of 0.5pp over 4Q10
and an increase of 2.1pp over 1Q11. ROAA remained stable compared to 4Q10, but 1.1pp above the result recorded
in 1Q10, and closed the first quarter of the year at 4.4%. Total assets amounted to R$3,188.5 million in the quarter.

Adjusted to extraordinary events in 4Q10 (changes in the accounting for the provision for payroll-deductible loans,
commission advances, and profit-sharing advances to the management of the JMalucelli insurance companies) and
in 1Q10 (closing of FIDC Paraná Banco II), net income totaled R$32.5 million, an increase of 7.3% over 4Q10 and of
35.1% over 1Q10. Adjusted ROAE reached 16.4% for the quarter, while ROAA was 4.2%.

1Q11 4Q10 1Q10
Accounting Net Income 33,541 33,748 22,360

Extraordinary Events (998) (3,430) 1,737
(-) Premium fiscal effects (998) (998) (998)
(+) Change in provisions - (6,282) -
(+) Advance of commissions - 1,748 -
(+) Allowance drag-along for losses - - 1,045
(+) Losses with Marketable securities (FIDC II) - - 1,690
(+) Provisions of profit-sharing of JMalucelli Seguradora - 2,102 -
Ajusted net income 32,543 30,318 24,097

The Net Interest Margin (NIM) for the quarter was 11.8% compared to 10.6% in 4Q10. This increase reflects a
reduction of 22.3% in the expense with derivative financial instruments.

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Bank (exclusively) 1Q11 x 1Q11 x
1Q11 4Q10 1Q10
Net Interest Margin (NIM) 4Q10 1Q10
Net interest income before Allowance for Doubtful
60,882 54,555 11.6% 55,021 10.7%
Accounts (PDD)
Average performing assets 2,149,079 2,130,552 0.9% 1,783,509 20.5%
Interbank funds invested (average) 12,784 23,728 (46.1%) 90,471 (85.9%)
Initial balance 7,229 40,226 (82.0%) 47,856 (84.9%)
Final balance 18,338 7,229 153.7% 133,085 (86.2%)
Marketable securities and derivatives (average) 518,162 541,678 (4.3%) 364,577 42.1%
Initial balance 511,218 572,138 (10.6%) 317,487 61.0%
Final balance 525,106 511,218 2.7% 411,666 27.6%
Loan operations (average) 1,618,134 1,565,146 3.4% 1,328,462 21.8%
Initial balance 1,582,140 1,548,152 2.2% 1,299,643 21.7%
Final balance 1,654,127 1,582,140 4.5% 1,357,280 21.9%

Annual Net Interest Margin - before allowance 11.8% 10.6% 1.2 p.p. 12.9% (1.1 p.p.)

► FINANCIAL PERFORMANCE
► Net interest income

1Q11 x 1Q11 x
R$ thousand 1Q11 4Q10 4Q10
1Q10 1Q10

Interest Income 121,992 117,314 4.0% 90,574 34.7%
Loan operations 95,140 89,755 6.0% 77,610 22.6%
Result from marketable securities operations 26,852 27,559 (2.6%) 12,964 107.1%
Interest Expenses (60,246) (52,340) 15.1% (41,098) 46.6%
Funding operations in the market (45,376) (43,486) 4.3% (27,041) 67.8%
Funding operations expenses in the market (45,376) (43,486) 4.3% (27,041) 67.8%
Expenses with deposits (40,500) (38,358) 5.6% (22,348) 81.2%
Expenses with securities issued abroad (4,876) (5,128) (4.9%) (4,693) 3.9%
Result from derivative financial instruments (3,715) (7,570) (50.9%) (1,606) 131.3%
SWAP Contracts (8,785) (11,302) (22.3%) (7,799) 12.6%
Exchange variation 5,070 3,732 35.8% 6,193 (18.1%)
Allowances for doubtful loans (11,155) (1,284) 768.8% (12,451) (10.4%)
Net Interest Income 61,746 64,974 (5.0%) 49,476 24.8%

The table above shows the net interest income and a reclassification of the accounts under interest expenses. This
reclassification by our management does not affect the net interest income and its purpose is to make it easier to
understand the accounting for swap contracts, interest expense on securities issued abroad, and expenses with
forex variations.

Interest income amounted to R$122.0 million in 1Q11, an increase of 4.0% over 4Q10 and of 34.7% compared to the
year-ago quarter. This increase derives from a positive performance in income from loans, which contributed 78.0%
of the interest income for the quarter, totaling R$95.1 million. This result represents an increase of 6.0% compared to
4Q10 and of 22.6% over 1Q10. Our income from transactions with securities totaled R$26.9 million, more than twice
the amount recorded in 1Q10, and 2.6% lower compared to 4Q10.

Interest expense amounted to R$60.2 million, up 15.1% from R$52.3 million in 4Q10. Excluding the provision
expense—extraordinarily affected by a change in the provision for payroll-deductible loans in 4Q10—interest
expense was 3.8% lower in 1Q11 compared to 4Q10. Compared to the year-ago quarter, interest expense increased
5

by 46.6%. This increment was due to the rise in the cost of funding, which follows the increase in the prime rate (CDI
of 2.64% in 1Q11 from 2.02% in 1Q10), and an increment of 37.2% in the deposit portfolio. Deposit expenses
increased by 81.2% in the quarter, from R$22.3 million in 1Q10 to R$40.5 million in 1Q11.

With regard to derivative financial instruments, the reclassification presented in the table above shows the expense
items for swap contracts and foreign exchange variation—which for accounting purposes offset each other—
recorded under “income (expense) from derivative financial instruments.” The principal of the USD 100 million issue
is fully hedged against foreign exchange variations, whereas the principal and interest of the USD 35 million tranche
due in August are fully hedged.

Net interest income totaled R$61.7 million in 1Q11, an increase of 24.8% compared to the R$49.5 million recorded in
1Q10, reflecting the increase in income from loans and the return of the provision expense to regular levels.
Compared to 4Q10, net interest income decreased by 5.0%, but increased by 10.0% when the effect of the provision
expense in 4Q10 is excluded.

► Efficiency ratio

1Q11 x 1Q11 x
Efficiency Ratio (R$ thousand) 1Q11 4Q10 4Q10
1Q10 1Q10

Personnel expenses (14,830) (10,530) 40.8% (9,723) 52.5%
Other administrative expenses (22,643) (25,302) (10.5%) (18,237) 24.2%
Tax expenses (4,765) (4,401) 8.3% (3,884) 22.7%

Net interest income 61,746 64,974 (5.0%) 49,476 24.8%
Other operating income/expenses 6,253 4,919 27.1% (384) (1728.4%)
Service fee income 2,276 1,995 14.1% 1,055 115.7%
Other insurances income* 23,393 15,376 52.1% 12,995 80.0%
Efficiency Ratio 45.1% 46.1% (1.0 p.p.) 50.4% (5.3 p.p.)

* Sum of insurance premiums, co-insurance premiums and reinsurance underwriting, changes in the insurance technical provision and retained claims

The efficiency ratio reached 45.1% in 1Q11, 0.1pp lower than in 4Q10. This improvement in the ratio was driven by
the insurance division. The ratio improved by 5.3pp in 1Q11 compared to the year-ago quarter, fueled by the
insurance division and by an increase in net interest income.

Paraná Banco has adopted a strict control of expenses, and monitors all of the Company's departments on a
monthly basis. This control is part of employees' goals and it has proven to be a very effective tool, since it
encourages the Company as a whole to strive for a unique goal.

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► Expenses – Personnel, Administrative, and Commissions

1Q11 x 1Q11 x
Expenses Consolidated – in R$ thousands 1Q11 4Q10 1Q10
4Q10 1Q10
Personnel Expenses (14,830) (10,530) 40.8% (9,723) 52.5%
Other Administratives Expenses (22,643) (25,302) (10.5%) (18,237) 24.2%
Commission Expenses - Payroll and Consumer (7,301) (13,139) (44.4%) (6,700) 9.0%
Reinsurance Commission Revenues / Brokerage 2,367 7,087 (66.6%) 6,686 (64.6%)
Specialized Technical Services (7,244) (5,510) 31.5% (9,770) (25.9%)
Others (10,465) (13,740) (23.8%) (8,453) 23.8%

Personnel expenses totaled R$14.8 million in 1Q11, an increase of 40.8% from 4Q10. This increase was due to
personnel expenses in the amount of R$2.8 million at JMalucelli Participações em Seguros e Resseguros,
recognized under "other administrative expenses" in the consolidated statement for 4Q10. An analysis enabled by
the reclassification of this effect to personnel expenses in 4Q10 shows the actual quarterly variation of this item was
of 11.3%, deriving from the increase in the number of employees in Paraná Banco's insurance division. Some
employees have already been hired during the structuring of the P&C operations, and more employees are expected
to be hired up to the end of 2011. The P&C business will be based in São Paulo, and the new structure will be added
to the existing surety bond infrastructure.

Other administrative expenses amounted to R$ 22.6 million in 1Q11, an increase of 10.5% compared to 4Q10.
Excluding the effect of R$2.8 million in 4Q10, other administrative expenses increased by 0.6% in 1Q11 from 4Q10.

Commission expenses dropped by 44.4% in 1Q11, mostly due to the exceptional advance of R$2.9 million in
commissions of level H payroll-deductible loans in 4Q10, in addition to the year-end bonus program the Company
offers to its correspondents. The commission expense recorded in 1Q11 is recurrent and follows its regular course.

► Income tax

The tax credit derived from the payment of interest on equity, the amortization of goodwill, and expenses with social
and cultural programs sponsored by the Company are excluded from profit or loss for purposes of calculation of tax
payable. Income tax and social contribution payable in 1Q11 totaled R$17.5 million.

1Q11 X
Income Tax and Social Contributions on Result (R$ thousand 1Q11 1Q10 1Q10

Income before tax on earnings and interest* 50,870 31,303 62.5%
Income Tax - current (20,348) (12,521) 62.5%
Permanent deduction (additions) 2,867 3,584 (20.0%)
Interest on Equity 2,470 2,203 12.1%
Goodwill amortization 998 - n.d.
Others (601) 1,381 (143.5%)
Income tax and social contributions on result (17,481) (8,937) 95.6%

* After interest in subsidiaries and net of expense with interest on equity

7

► INSURANCE AND REINSURANCE OPERATIONS
► Net Income

JMalucelli Seguradora’s net income increased by 25.1% to R$11.5 million, whereas JMalucelli Resseguradora’s net
income went up by 35.6% to R$4.9 million compared to 4Q10. JMalucelli Seguradora de Crédito remains inactive in
credit insurance, and currently operates the DPVAT insurance (Mandatory Personal Injury caused by all types of
Motor Vehicle). This company represents a strategic value for the Company, because it is an insurance company
authorized by the SUSEP to start up its operations at any time. We intend to make JMalucelli Seguradora de Crédito
an insurance company specializing in Property & Casualty (P&C) products through the partnership with Travelers.

Together, the JMalucelli insurance operations reported net income of R$16.4 million in 1Q11, contributing 48.8% of
the Company’s consolidated income for the period. This share has been growing, and we believe it will be even more
significant in the future since its performance is to tied to investments in infrastructure in the country. The surety
bond market remained stable in 2010 compared to 2009 because several public investments were postponed. We
believe the resumption of investments starting this year will have a positive effect on our surety bond operations.

The partnership with Travelers Companies also paves the way for our growth and creates many business
opportunities. We expect to start our P&C operations in the second half of the year. We intend to explore the needs
of our customers in the short term, and offer surety bond-related products, such as engineering risks and Directors &
Officers (D&O). We also want to increase the market share of JMalucelli Resseguradora in the reinsurance market in
Latin America. We will also have the chance to explore, in the medium term, the demand for products by more than
two thousand insurance brokers in our base. Our new operating structure will be developed through the partnership
with Travelers, taking advantage of the know-how this renowned insurer can offer us.

► Premiums issued

JMalucelli Seguradora issued premiums in the amount of R$70.5 million in the quarter, an increase of 29.8% over
1Q10. With regard specifically to surety bonds, the volume of premiums issued by JMalucelli Seguradora increased
by 39.4% from 1Q10 to 1Q11, whereas the market recorded an increase of 12.6% over the same period.
Engineering, Procurement & Construction (EPC) insurance for the the construction of the Belo Monte hydropower
plant, the third largest hydropower plant in the world, stood out in the quarter, along with the participation of the
JMalucelli insurance companies in smaller policies, which add volume and diversify the insurance portfolio.

JMalucelli Seguradora's expertise in and procedures for the underwriting of surety bond policies have allowed the
company to maintain its leading position in this market since 1997. JMalucelli Seguradora's market share in direct
premiums was of 34.1% in the quarter, an increase of 5.8pp over 1Q10, according to data from the SUSEP.

Direct reinsurance premiums issued by JMalucelli Resseguradora totaled R$36.0 million in 1Q11. JMalucelli
Resseguradora recorded a market share of 18.1% in February 2011 in the financial risks market, which includes
surety bonds and credit insurance.

8

Market share - direct premiums
(R$ thousand)
726,400
694,787

499,334

346,089

192,364
167,452 172,654
32.6% 40.4%
50.4% 43.0%
37.0% 42.3% 34.1%

2005 2006 2007 2008 2009 2010 mar/11
JMalucelli Seguradora Market

Market Share - reinsurance premiums
Financial risk category

0,2% IRB BRASIL
RESSEGUROS S/A

17,8% MUNICH RE DO BRASIL
28,7% RESSEGURADORA S.A.

J. MALUCELLI
RESSEGURADORA S.A.
25,1%
MAPFRE RE DO BRASIL
CIA DE RESSEGURO
28,1%
AUSTRAL
RESSEGURADORA S.A.

► Loss ratio

JMalucelli Seguradora’s loss ratio (retained loss/ earned premium) was -0.2% for the quarter, which represents a
reversal of provisioned loss, while the market's loss ratio, excluding JMalucelli Seguradora, was 22.4%. The good
relationship JMalucelli Seguradora maintains with international reinsurers, which is paramount for the underwriting of
large policies, is backed by its capacity to maintain its loss ratio at much lower levels than the market's. These low
loss ratios come from the expertise inherited from the JMalucelli Group—which started as a company specializing in
heavy construction—its excellence in credit and risk analysis, and its specializing in the surety bond market.
JMalucelli's focus on this market allows for these insurance companies to keep a specialized team of 218 employees
who work focused in this product.

In a smaller proportion, JMalucelli Seguradora also has operations in the DPVAT insurance market, but it maintains
no administrative or selling structure for this product. JMalucelli Seguradora participates in this agreement on an opt-
in basis, and every year it chooses to participate or not. Even though the DPVAT has a high loss ratio, as the table
below indicates, this product offers a positive result for the insurance group with no need for sales or analysis efforts.
DPVAT insurance operations contributed R$0.7 million to JMalucelli Seguradora’s income for 1Q11.

9

1Q11 x 1Q11 x
R$ million 1Q11 4Q10 1Q10
4Q10 1Q10
Direct Premiums JM Seguradora 70,447 102,161 (31.0%) 54,258 29.8%
DPVAT 11,782 5,724 105.8% 10,783 9.3%
Surety Bond 58,665 96,437 (39.2%) 43,475 34.9%
Retained Premiums JM Seguradora 29,351 25,512 15.0% 25,179 16.6%
Insurance Claims JM Seguradora (10,224) (5,672) 80.3% (9,937) 2.9%
DPVAT (10,249) (5,010) 104.6% (9,445) 8.5%
Surety Bond 25 (661) (103.8%) (492) (105.1%)

Retained Premiums JM RE 8,839 13,172 (32.9%) 8,496 4.0%
Retained Premiums JM Seguradora + JM RE 38,190 38,684 (1.3%) 33,675 13.4%

► Combined ratio

JMalucelli Seguradora closed the quarter with a combined ratio of 65.1%, demonstrating the company's excellent
operating efficiency. The company's amplified combined ratio—which is the combined ratio considering financial
results—was 47.3% in the quarter. These ratios increased by 1.3pp and 7.7pp respectively over 4Q10. Even though
it is not listed among the largest insurance companies in terms of net equity in Brazil, JMalucelli Seguradora
recorded the second best combined ratio of the market in 2010 and 2009, according to data from the SISCORP
(Sistemas Corporativos).

1Q11 x 1Q11 x
R$ million 1Q11 4Q10 1Q10
4Q10 1Q10
Policies Written JM Seguradora 12,101 16,121 (24.9%) 11,680 3.6%
Policies Written JM Resseguradora 12,047 16,038 (24.9%) 11,455 5.2%

Combined Ratio JM Seguradora (%) 65.1 66.4 (1.3 p.p.) 77.7 (12.5 p.p.)
Amplified Combined Ratio JM Seguradora (%) 47.3 55.0 (7.7 p.p.) 64.9 (17.6 p.p.)

Net Income JM Seguradora 11,456 9,158 25.1% 6,894 66.2%
Shareholders' Equity JM Seguradora 161,341 149,885 7.6% 118,950 35.6%
ROAE JM Seguradora 32.9% 27.7% 0.1 p.p. 26.1% 0.1 p.p.

Net Income JM Resseguradora 4,902 3,616 35.6% 2,885 69.9%
Shareholders' Equity JM Resseguradora 109,274 104,372 4.7% 91,447 19.5%
ROAE JM Resseguradora 19.7% 14.9% 0.0 p.p. 13.5% 0.1 p.p.

► Geographic data

In 1Q11, 25.6% of the written premiums by JMalucelli Seguradora were for clients located in the state of Rio de
Janeiro, 24.3% in São Paulo, and 24.0% in Pará, and the remainder was distributed among the other states of the
country.

10

Premium per region

2.7%
8.3%
3.1%
RIO DE JANEIRO
3.2%
25.6% SAO PAULO
PARA
3.7%
MINAS GERAIS
5.2%
BAHIA
PERNAMBUCO
PARANA

24.0% 24.3% SANTA CATARINA
Others

► Investment policy

The balance of financial investments of JMalucelli Seguradora, JMalucelli Resseguradora, and JMalucelli
Seguradora de Crédito was R$460.4 million in March 2011, up 6.8% from December 2010. Of that amount, 70.4%
was invested in fixed income assets, 11.0% in a FENASEG exclusive investment fund, 7.6% in government bonds,
6.6% in multi-market funds, and 4.4% in variable income assets. Income from this investment portfolio amounted to
R$12.8 million in 1Q11. Average return on these investments reached 107.1% of the CDI in the quarter. The funds
invested in variable income are fully allocated to an equity fund whose portfolio primarily consists of shares of
companies that have paid a dividend yield of more than 6% per year, for at least three years.

The purpose of the investment policy of Paraná Banco's insurance division is to set goals, limits and methodologies
for the management of investments in order to maximize returns under the applicable law in force. This policy
requires, for example, that a minimum of 20% of technical reserves be invested in government bonds. Up to 100% of
overall financial investments may be allocated to low-risk investments (that is, institutions rated AAA, Time Deposits
Secured by the Brazilian Credit Guarantee Fund, and federal government bonds), up to 20% may be invested in
fixed income at institutions rated above AA-, and up to 10% may be invested in fixed income at institutions rated
above BBB-. The policy further determines that a maximum of 8% of investments be invested in multi-market funds,
and 5% in variable income funds.

11

Portfolio of financial investments
(R$ million)

50.7 460.4
30.6
324.2 20.1
6,9%

Others = R$ 32.4

DPGE = R$ 259.5 69,9%

34.9 CDB = R$ 32.3

18,5%
Bonds Fixed Income Equities Multimarket Investment Total
Funds

Profitability of investments

2.8%
2.6%

1Q11

CDI Investments JM Seguros

► OPERATING PERFORMANCE
► Management of assets and liabilities

Assets amounted to R$3,188.5 million in March 2011, compared to R$2,929.4 million in the same month in 2010 and
R$3,037.0 million in December 2010. ROAA was 4.4% for the quarter, an increase of 1.1pp from 1Q10 and
unchanged from 4Q10. Loans represented 51.0% of the assets, securities accounted for 30.9%, and 18.1% referred
to other assets in the quarter.

12

Evolution of Total Assets
(R$ thousand)
3,073,980 3,188,486
2,929,431
576,791
630,565
814,394
985,825
942,211
776,842

1,501,204 1,625,870
1,338,195

1Q10 4Q10 1Q11

Loans Securities and Derivatives Others assets

The securities portfolio increased by 26.9% compared to March 2010, and by 4.6% from December 2010. This
portfolio consists mostly of repurchase agreements backed by Financial Treasury Bills maturing in over one year.

The charts below show the matching between assets and liabilities maturities. An analysis of those maturities shows
that 46.4% of the loan portfolio will mature before one year, whereas 56.2% of the funding transactions will also
mature within the same period.

Loan Portfolio – Operations Falling Due Funding – Operations Falling Due

16.0% 15.7%
20.8%
Up to 3 months 27.1% Up to 3 months

Between 3 and 12 months Between 3 and 12 months

25.6% Between 1 and 3 years 28.1% Between 1 and 3 years

37.6% Above 3 years
Above 3 years
29.2%

► Loans

Paraná Banco’s loan portfolio consists of payroll-deductible, middle-market, and Consumer Credit – Retailer (CDC
Lojista) transactions, according to the table below.

13

1Q11 x
R$ 1Q11 4Q10 4Q10
1Q10 1Q11 x 1Q10

Amplified Loan Portfolio 1,646,144 1,574,414 4.6% 1,355,018 21.5%
Payroll-Deductible Loan 1,397,006 1,308,299 6.8% 1,131,592 23.5%
Middle Market 175,693 212,134 (17.2%) 177,768 (1.2%)
Loans Operations 155,419 189,638 (18.0%) 160,945 (3.4%)
Guarantees and seruties 20,274 22,496 (9.9%) 16,823 20.5%
Consumer Credit – Retailer (CDC Lojista) 34,946 35,106 (0.5%) 18,089 93.2%
Others 38,499 18,875 104.0% 27,569 39.6%

In March 2011, the comprehensive loan portfolio (which includes sureties and guarantees) amounted to R$1,646.1
million, an increase of 4.6% from 4Q10 and of 21.5% from 1Q10. Of Paraná Banco's overall consolidated loan
portfolio in March, payroll-deductible loans represented 84.9%, followed by loans to the middle market with 10.7%,
Consumer Credit – Retailer (CDC Lojista) with 2.1%, and credit acquisitions and the remaining balance of the
Consumer Credit – Vehicle portfolio (CDC Veículos), discontinued in 2008, with 2.3%.

Part of the R$38.5 million classified as "others" in the portfolio derives from the advance of Paraná Banco in the retail
consumer finance market through agreements with retailers under which the Bank provides funding for the issuance
of credit cards especially in the states of Paraná, Santa Catarina, and Rio Grande do Sul.

The Bank’s strategy is to increase the middle market portion of the consolidated portfolio by focusing on companies in
Paraná, where the JMalucelli Group thrives, and in São Paulo through synergies with JMalucelli Seguradora’s clients.

► Loan portfolio quality

The chart below presents the changes in the loan portfolio plus the balance of the assigned portfolio with co-obligation,
and in the loan loss provision rate. This indicator decreased in 4Q10 due to a sharp decline in the provision following a
reclassification of payroll-deductible loans previously affected by the “drag-along effect.” Therefore, the chart shows the
provision and delinquency rates returning to regular levels, which was already expected.

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

1.800,0 7,0%
1,625.9
1.600,0 1,517.9 1,551.9
1,431.4 6,0%
1,338.2
1.400,0
5,0%
1.200,0 4.3%
4.0% 3.9%
1.000,0 4,0%
3.3% 3.2%
800,0 2.7% 3,0%
2.4% 2.4%
600,0 1.9% 1.9%
2,0%
400,0
1,0%
200,0
75.1 52.1 36.5 18.7
26.2
- 0,0%
1Q10 2Q10 3Q10 4Q10 1Q11

Balance of assignments with co-obligation
Loan Operations
Allowance for doubtful accounts (PDD)/Loan Portfolio
LevelH/Loan Portfolio

14

The following chart shows an analysis of the coverage ratio of the consolidated portfolio. The provision accrued in
1Q11, under Central Bank Resolution No. 2682, amounted to R$52.1 million. This results in a coverage ratio of
101.6% for loans that are past due 90 days or more, and of 175.4% for loans that are past due 180 days or more.
The portfolio's coverage is analyzed taking into account the Bank’s consolidated portfolio and the balance of loans
assigned with co-obligation, which closed March 2011 at R$18.7 million.

1Q11 x 1Q11 x
R$ 1Q11 1Q10 4Q10
1Q10 1Q10

Allowance for Doubtful Accounts (PDD) 52,141 51,942 0.4% 60,520 (13.8%)
Portfolio overdue (> 60 days) 64,072 64,410 (0.5%) 69,314 (7.6%)
Portfolio overdue (> 90 days) 51,338 52,411 (2.0%) 56,601 (9.3%)
Portfolio overdue (> 180 days) 29,721 27,974 6.2% 33,621 (11.6%)
Total Portfolio* (a) 1,644,618 1,578,121 4.2% 1,413,329 16.4%
Portfolio Coverage Index (PDD / > 60 days) 81.4% 80.6% 0.7 p.p. 87.3% -5.9 p.p.
Portfolio Coverage Index (PDD / > 90 days) 101.6% 99.1% 2.5 p.p. 106.9% (5.4 p.p.)
Portfolio Coverage Index (PDD / > 180 days) 175.4% 185.7% (10.2 p.p.) 180.0% (4.6 p.p.)
Allowance for Doubtful Accounts (PDD) / Total Portfolio 3.2% 3.3% (0.1 p.p.) 4.3% (1.1 p.p.)
Written-off credits (b) 8,110 7,771 4.4% 20,383 -60.2%
Loss rate (b/a) 0.5% 0.5% 0.0 p.p. 1.4% (0.9 p.p.)

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

► Payroll-Deductible Loans

Most of Paraná Banco’s payroll-deductible loan portfolio was concentarted in loans to state government employees
(44.9%) in March 2011, followed by loans to municipal government employees (27.6%), loans to INSS retirees and
pensioners (22.4%), loans to federal entities employees (4.9%), and other agreements (0.2%). This diversification
dilutes the regulatory risk and the portfolio concentration.

Payroll-Deductible Loan Portfolio Distribution

4.9% 0.2%

States
Municipality
22.4% INSS
44.9%
Federal Entities
Others

27.6%

15

Payroll-Deductible Loan Origination
(R$ million)

340,4
325,1
302,1
277,9
233,6

1Q10 2Q10 3Q10 4Q10 1Q11

The origination of payroll-deductible loans amounted to R$302.1 million, an increase of 8.7% compared to 4Q10 and
of 37.0% compared to the year-ago quarter. In the quarter for payroll-deductible loans origination increased. We
believe this was due to the higher capital requirement imposed by the Central Bank of Brazil for loans to individuals
maturing in more than 36 months, which placed us at a privileged position in the market as we are well capitalised.
Paraná Banco also uses alternative sales channels (own stores and franchised correspondents) to offer the payroll-
deductible loans, in addition to its traditional network of correspondents. Own stores and franchised correspondents
were responsible for 51.0% of the payroll-deductible loan origination in the quarter. Today, 14 own stores and 85
franchised correspondents are in operation.

Payroll-deductible loans to public employees, INSS retirees, and pensioners are traditionally considered low risk
credit. Therefore, given its high concentration in this market, Paraná Banco has an excellent quality loan portfolio.
The table below shows the risk rating of the payroll-deductible loan portfolio according to the rules set by the Central
Bank of Brazil (category A is the lowest risk and category H is the highest risk).

Required Assigment Portfolio + Assigment Portfolio Assigment Balance Total
Status Portfolio % of total portfolio
Allowance Balance Balance Allowance Allowance Allowance
A 0.5% 1,302,927 17,894 1,320,821 93.3% 6,515 89 6,604
B 1.0% 28,873 0 28,873 2.0% 289 0 289
C 3.0% 15,659 0 15,659 1.1% 470 0 470
D 10.0% 10,204 0 10,204 0.7% 1,020 0 1,020
E 30.0% 7,714 0 7,714 0.5% 2,314 0 2,314
F 50.0% 5,378 0 5,378 0.4% 2,689 0 2,689
G 70.0% 5,355 0 5,355 0.4% 3,748 0 3,748
H 100.0% 20,894 854 21,748 1.5% 20,894 854 21,748
Total 1,397,005 18,748 1,415,753 100.0% 37,940 943 38,883

At the end of March, 96.4% of the bank’s payroll-deductible loan portfolio was rated AA to C, 2.2% was rated D to G,
and 1.5% was rated H. While the delinquency rate (over 90 days past due) for individuals reached 5.9% in the
Brazilian financial system, the delinquency rate at Paraná Banco for payroll-deductible loans was 2.8%.

► Middle Market

Paraná Banco started operating in the middle market segment in 2007, and today it has specialized teams operating
out of Curitiba/PR, Ponta Grossa/PR, Maringá/PR, Londrina/PR, Joinville/SC, Florianópolis/SC and São Paulo/SP.
The Bank has invested in setting up this product with the objective of increasing its share in this market.

16

Sector Distribution - Middle Market

Services

13,0%
67,5%
Industry

19,5%
Commerce

The balance of this portfolio, including sureties, amounted to R$175.7 million, a decrease of 17.2% from December
2010 but stable from the year-ago quarter. Some important amounts were early settled in the quarter, causing a
reduction in the portfolio in the period. On the other hand, we are approving quality credit limits for new customers
with an average debt-to-credit ratio of 42.3% in March.

We are also structuring our middle market division, and designing new products for our portfolio so we can increase
the cross-selling of products to our clients. With the new products, we will be able to explore in a more effective
manner the potential indebtedness level of companies we extend credit to.

A very positive factor is that Paraná Banco's middle market portfolio has maintained excellent quality levels. The
following table shows the middle market loan portfolio broken down by risk level according to the rules of the Central
Bank.

Required Total
Status Portfolio % of Portfolio
Allowance Allowance
A 0.5% 3,315 2.1% 17
B 1.0% 130,597 84.0% 1,306
C 3.0% 16,241 10.4% 487
D 10.0% 1,303 0.8% 130
E 30.0% - 0.0% 0
F 50.0% - 0.0% 0
G 70.0% - 0.0% 0
H 100.0% 3,963 2.5% 3,963
Total 155,419 100.0% 5,903

Paraná Banco closed March with 2.5% of its middle market portfolio rated E to H (past due 90 days or more). This
rate is lower than the corporate delinquency rate in the Brazilian financial system, which reached 3.6% in the period
for loans past due 90 days or more.

► Consumer Credit – Retailer (CDC Lojista)

CDC Lojista is a consumer credit facility for the purchase of products and services offered by retailers. It is a product
for individual consumers intended to meet the retailers’ need to extend credit to their customers. The table below
shows Paraná Banco’s CDC Lojista portfolio broken down by risk level according to Central Bank rules.

17

Required Total
Status Portfolio % of Portfolio
Allowance Allowance
A 0.5% 22,422 64.2% 112
B 1.0% 2,024 5.8% 20
C 3.0% 1,790 5.1% 54
D 10.0% 1,410 4.0% 141
E 30.0% 948 2.7% 284
F 50.0% 864 2.5% 432
G 70.0% 960 2.7% 672
H 100.0% 4,528 13.0% 4,528
Total 34,946 100.0% 6,243

► Funding

Funding Sources
(R$ million)

1,458.3

223.7
18.7

2007 2008 2009 1Q10 2Q10 3Q10 4Q10 1Q11

FIDCs Loans Assigment MTN Deposits

Time deposits are the main funding source at Paraná Banco. Deposits totaled R$1,458.3 million for the quarter, an
increase of 12.0% from December 2010 and of 37.2% from the year-ago quarter. Since its IPO in June 2007, the
only time Paraná Banco assigned credit seeking liquidity was in December 2008—at the apex of the world economic
crisis—excluding the already closed FIDC I and FIDC II credit receivables funds. The remaining balance of this
assignment is R$18.7 million.

Out of total time deposits, only R$92.7 million corresponded to Time Deposits Secured by the Brazilian Credit
Guarantee Fund (DPGE). The limit for DPGE funding will be progressively reduced starting in 2012, pursuant to
Central Bank resolution No. 3,931 of December 2010.

The table below shows deposits broken down by type of investor and the position of existing foreign security issues.
Deposits represent 86.7% of Paraná Banco’s total funding, whereas Eurobond issues represent 13.3%. The Bank
currently has a US$300 million Eurobond program, through which it has already issued US$35 million maturing in
August 2011 and US$100 million maturing in December 2012. Foreign security transactions are hedged against
exchange variations through swap contracts, eliminating the Bank’s exposure to foreign currency risk.

18

1Q11 x
Deposits distribution (R$ thousand) 1Q11 4Q10 4Q10
1Q10 1Q11 x 1Q10

Funding Total (R$ thousand) 1,681,940 1,528,297 10.1% 1,305,665 28.8%
Total Deposits 1,458,286 1,301,842 12.0% 1,062,649 37.2%
Insttutional Investors 696,126 594,452 17.1% 484,596 43.7%
Related Parties 138,252 104,718 32.0% 83,307 66.0%
Individuals 189,433 181,323 4.5% 168,480 12.4%
Other Companies 181,068 145,665 24.3% 164,467 10.1%
Financial Institutions 253,407 275,683 (8.1%) 161,799 56.6%
FIDC - - n.d. - n.d.
Issue of Eurobonds 223,654 226,455 (1.2%) 243,016 (8.0%)
Tranch of U$ 35 million 58,920 59,286 (0.6%) 63,031 (6.5%)
Tranch of U$ 100 million 164,734 167,169 (1.5%) 179,985 (8.5%)

► Shareholders’ Equity and Leverage

Paraná Banco's shareholders' equity amounted to R$854.7 million in March 2011, up from R$816.7 million in 4Q10.
The following table shows the variables that influenced the shareholders' equity accounts during the period.

Equity Changes (R$ thousand) 1Q11 4Q10

Initial Balance 827,660 816,726
Net Income 33,541 33,748
Interest on Equity (6,175) (22,052)
Treasury shares - -
Adjustment to market value - Marketable securities (313) (762)
Final Balance 854,713 827,660

The Capital Adequacy ratio, pursuant to Bacen (Basel II) requirements, closed March 2011 with a margin of R$512.3
million. The Basel ratio achieved 32.7% in the period, showing the Bank’s great leverage potential.

Capital Compliance 1Q11 4Q10 3Q10 2Q10 1Q10
Basel II Rules
Reference Shareholder's Equity 825,666 799,459 793,190 774,786 782,622
Reference Shareholder's Equity Required 277,326 269,205 262,830 251,621 239,001
Banking Portfolio Risk (RBAN) 36,015 22,505 32,398 31,249 28,754
Basel required minimum margin 512,325 507,749 497,963 455,833 514,867

Basel Index 32.75% 32.67% 33.20% 33.90% 36.02%

► CORPORATE GOVERNANCE
Paraná Banco is currently listed on BM&FBovespa's Level I, an index of companies that comply with the highest
Corporate Governance standards. In addition to the standards required by Level I, the Bank has been offering 100%
tag-along rights to all preferred shareholders.

Below is our shareholding structure as at March 31, 2011. Free float was 25.7% on that same date.

19

Common Preferred
Shareholders Total %
Shares Shares
Control Group 41,121,063 7,104,863 48,225,926 54.7%
Board of Directors 3,293,400 1,532,500 4,825,900 5.5%
Management 740,481 162,221 902,702 1.0%
Other Related Parties 11,570,032 - 11,570,032 13.1%
Treasury - - - 0.0%
Free-float - 22,684,972 22,684,972 25.7%
Total 56,724,976 31,484,556 88,209,532 100.0%

Paraná Banco has already completed eight stock buyback programs with the acquisition of 22,923,800 preferred
shares, which have already been cancelled. These programs have been advantageous for shareholders, because
they allow for an increase in the interest held by each shareholders in the capital stock and enables the payment of
higher interest on equity per share. The Bank paid R$0.07 per share as interest on equity in 1Q11, equivalent to a
payout ratio of 18.4% for the quarter.

In line with the highest corporate governance standards of the Brazilian Corporate Governance Institute, Paraná
Banco's Board of Directors has an independent director (Mr. Wesley Motechiari Figueira), reelected for a 2-year term
at the Annual General Meeting held in April 2011. On the same date, Mr. Alexandre Malucelli was elected Chairman
of the Board of Directors of Paraná Banco. He is also the Vice President of JMalucelli Seguradora, and President of
JMalucelli Resseguradora.

At the same meeting, Paraná Banco's shareholders installed a new Supervisory Board with three sitting members
and three deputies in charge of overseeing the management's activities, revising the company's financial statements,
and reporting its findings to the shareholders. The Supervisory Board is independent from the management and from
the Bank's external auditors.

► RATINGS

Rating Rating Rating / Ranking Rating
A- brA- 11.42 A+
Low Credit Risk Low Credit Risk - Low Credit Risk
Low Credit Risk
Medium term
July 2010 August 2010 January 2011 February 2011

Paraná Banco is rated by four rating agencies. This attests to the Bank’s solidity and comfortable financial and
economic situation, which is backed by the Bank's sustainable growth and its conservative approach to asset
management and exposure to risk.

International risk rating agency Riskbank disclosed a report in April 2011 based on our 2010 financials, and
upgraded the Riskbank rating of Paraná Banco from 11.34 to 11.42. The agency based this upgrade on Paraná

20

Banco's capitalized structure, its solidity, and the stability of its indicators. RiskBank also pointed out that the
Company does not depend on credit assignment to fund its assets. Therefore, it was not impacted by the market
instability at the end of 2010. The agency also emphasized the good performance of JMalucelli Seguradora and
JMalucelli Resseguradora, which specialize in surety bonds and together contributed 48.8% of the consolidated net
income for 1Q11.

► UPCOMING EVENTS

1Q11 Earnings Conference Call
Date: Thursday, May 12, 2011.

Portuguese English

2:30 P.M. (Brasilia time) 3:30 P.M. (Brasilia time)

1:30 P.M. (New York time) 2:30 P.M. (New York time)

Phone: (11) 4688-6361 Phone: Brazil: (11) 4688-6361

Access Code: Paraná Banco United States: +1 (888) 700-0802

Other countries: +1 (786) 924-6977

Access Code: Paraná Banco

21

► APPENDIX I – CONSOLIDATED STATEMENT OF INCOME

(R$ thousand) 1Q11 4Q10 1Q10

Interest Income 121,992 117,314 113,697
Loan operations 95,140 89,755 84,267
Income from marketable securities operations 26,852 27,559 29,430

Interest Expenses (60,246) (52,340) (57,394)
Funding operations in the market (40,306) (39,753) (26,820)
Income from derivative financial instruments (8,785) (11,303) (16,649)
Allowance for loans losses (11,155) (1,284) (13,925)

Net interest income 61,746 64,974 56,303
Other operating income (expenses) (10,434) (17,943) (14,018)
Services fee income 2,276 1,995 1,248
Insurance premiums 93,608 121,619 115,212
Premiums of co-insurance and reinsurance paid (46,337) (83,543) (67,171)
Change in insurance technical allowances (6,457) (12,604) (14,680)
Retained losses (17,421) (10,096) (12,943)
Personnel expenses (14,830) (10,530) (11,230)
Other administrative expenses (22,643) (25,302) (24,734)
Tax expenses (4,765) (4,401) (4,005)
Other operating income 12,267 12,042 10,450
Other operating expenses (6,132) (7,123) (6,165)

Operating Income 51,312 47,031 42,285
Non-operating income 152 (32) 535
Income before tax on earnings and interest 51,464 46,999 42,820
Income tax and social contribution (17,481) (6,242) (13,359)
Income Tax - current (10,888) (753) (8,805)
Social contribution - current (6,636) (1,470) (5,385)
Deferred Income tax and social contribution 43 (4,019) 831

Profit sharing (442) (7,009) 18
Net profit for the quarter 33,541 33,748 29,479

22

► APPENDIX II – CONSOLIDATED BALANCE SHEET

(R$ thousand) 03/31/2011 12/31/2010 03/31/2010

Assets
Current 1,378,741 1,429,298 1,489,240
Cash and equivalents 2,365 6,220 1,961
Interfinancial liquidity investments 18,237 7,128 133,085
Marketable securities 297,093 363,442 314,123
Interfinancial relations 900 55 763
Loan operations 706,929 685,144 645,631
Loan operations - private sector 753,436 731,420 697,606
Allowance for losses with loan operations (46,507) (46,276) (51,975)
Other loans 183,104 195,252 120,296
Other values and assets 170,113 172,057 273,381

Long-term assets 1,729,551 1,564,368 1,368,468
Interfinancial liquidity investments 101 101 -
Marketable securities 688,732 578,769 462,719
Loan operations 867,743 816,060 634,795
Loan operations - private sector 872,434 820,498 640,589
Allowance for losses with loan operations (4,691) (4,438) (5,794)
Other loans 29,921 31,523 46,400
Other values and assets 143,054 137,915 224,554

Permanent 80,194 80,314 71,723
Investments 1,407 1,407 1,360
Property, plant and equipment in use 17,014 17,078 16,696
Intangible 61,773 61,829 53,558
Total 3,188,486 3,073,980 2,929,431

(R$ thousand) 03/31/2011 12/31/2010 03/31/2010
Liabilities
Current 1,289,224 1,326,843 1,120,145
Deposits 820,276 717,253 579,903
Open market funding - 46,267 5,451
Proceeds from acceptances and issues of securities 4,913 59,915 -
Interfinancial relations 374 - 235
Derivative financial instruments 2,208 2,228 -
Other liabilities 461,453 501,180 534,556

Long-term liabilities 1,044,549 919,477 1,003,700
Deposits 638,009 584,589 482,746
Proceeds from acceptances and issues of securities 218,741 166,540 243,016
Derivative financial instruments 11,077 4,764 10,618
Other liabilities 176,722 163,584 267,320

Income from future years - - -

Minority interest in net income of subsidiaries - - 1

Shareholder's equity 854,713 827,660 805,585
Capital stock 763,867 763,867 763,867
Capital reserve 265 265 265
Profits reserve 63,842 63,842 45,290
Adjustments to market value - marketable securities (627) (314) (142)
Accumulated earnings (losses) 27,366 - 16,854
Treasury shares - - (20,549)
Total 3,188,486 3,073,980 2,929,431

23

► APPENDIX III – 1Q11 SEGMENTED STATEMENT OF INCOME

Other/
Bank Insurances Consolidated
Eliminations
Interest income 109,983 12,009 - 121,992
Loan operations 95,140 - - 95,140
Income from marketable securities operations 14,843 12,009 - 26,852

Interest expenses (60,256) - 10 (60,246)
Funding operations in the market (40,316) - 10 (40,306)
Income from derivative financial instruments (8,785) - - (8,785)
Allowance for loans losses (11,155) - - (11,155)

Net interest income 49,727 12,009 10 61,746
Other operating income (expenses) (9,628) 15,738 (16,544) (10,434)
Services fee income 2,275 - 1 2,276
Insurance premiums - 124,398 (30,790) 93,608
Premiums of co-insurance and reinsurance paid - (77,127) 30,790 (46,337)
Change in insurance technical allowances - (6,457) - (6,457)
Retained losses - (17,421) - (17,421)
Personnel expenses (5,305) (4,262) (5,263) (14,830)
Other administrative expenses (23,333) (5,834) 6,524 (22,643)
Tax expenses (2,058) (1,707) (1,000) (4,765)
Income from interest in subsidiaries 16,747 - (16,747) -
Other operating income 6,263 8,121 (2,117) 12,267
Other operating expenses (4,217) (3,973) 2,058 (6,132)

Operating Income 40,099 27,747 (16,534) 51,312
Non-operating income 167 - (15) 152
Income before tax on earnings and interest 40,266 27,747 (16,549) 51,464
Income tax and social contribution (6,418) (11,051) (12) (17,481)
Income Tax - current (3,970) (6,901) (17) (10,888)
Social contribution - current (2,476) (4,150) (10) (6,636)
Deferred Income tax and social contribution 28 - 15 43

Profit sharing - (313) (129) (442)
Net profit for the quarter 33,848 16,383 (16,690) 33,541

24

► APPENDIX IV – SEGMENTED BALANCE SHEET AS AT 3/31/2011

Other/
(R$ thousand) Bank Insurances Consolidated
Eliminations
Assets
Current 837,454 763,145 (221,858) 1,378,741
Cash and cash equivalents 254 2,183 (72) 2,365
Interfinancial liquidity investments 18,237 - - 18,237
Marketable securities 29,387 267,706 - 297,093
Interfinancial relations 900 - - 900
Loan operations 720,023 - (13,094) 706,929
Loan operations - private sector 766,530 - (13,094) 753,436
Allowance for losses with loan operations (46,507) - - (46,507)
Other loans 25,191 239,090 (81,177) 183,104
Other values and assets 43,462 254,166 (127,515) 170,113

Long-term assets 1,445,769 418,736 (134,954) 1,729,551
Interfinancial liquidity investments 101 - - 101
Marketable securities 495,719 193,013 - 688,732
Loan operations 882,906 - (15,163) 867,743
Loan operations - private sector 887,597 - (15,163) 872,434
Allowance for losses with loan operations (4,691) - - (4,691)
Other loans 16,702 13,166 53 29,921
Other values and assets 50,341 212,557 (119,844) 143,054

Permanent 362,573 12,444 (294,823) 80,194
Investments 357,802 1,328 (357,723) 1,407
Property, plant and equipment in use 4,398 11,055 1,561 17,014
Intangible 373 61 61,339 61,773
Total 2,645,796 1,194,325 (651,635) 3,188,486

Other/
(R$ thousand) Bank Insurances Consolidated
Eliminations
Liabilities
Current 882,588 615,810 (209,174) 1,289,224
Deposits 820,824 - (548) 820,276
Open market funding - - - -
Proceeds from acceptances and issues of securities 4,913 - - 4,913
Interfinancial relations 374 - - 374
Derivative financial instruments 2,208 2,208
Other liabilities 54,269 615,810 (208,626) 461,453

Long-term liabilities 875,995 287,206 (118,652) 1,044,549
Deposits 638,395 - (386) 638,009
Proceeds from acceptances and issues of securities 218,741 - - 218,741
Derivative financial instruments 11,077 - - 11,077
Other liabilities 7,782 287,206 (118,266) 176,722

Income from future years - - (28,258) -

Minority interest in net income of subsidiaries - - 0 0

Shareholder's equity 858,955 291,309 (295,551) 854,713
Capital stock 766,167 126,000 (128,300) 763,867
Capital reserve 582 15,775 (16,092) 265
Profits reserve 65,160 133,151 (134,469) 63,842
Adjustments to market value - marketable securities (627) 0 - (627)
Accumulated earnings (losses) 27,673 16,383 (16,690) 27,366
Treasury shares 0 - - 0
Total 2,645,796 1,194,325 (651,635) 3,188,486

25

► APPENDIX V – JMALUCELLI SEGURADORA'S STATEMENT OF INCOME
(MANAGEMENT APPROACH)

JMalucelli Seguradora (R$ thousand) 1Q11 4Q10 1Q10

Net Written Premiums 62,011 88,504 53,164
Reinsurance (32,418) (62,699) (27,984)
Retained premiums 29,593 25,804 25,179
Technical Reserve Variations-Insurance (4,258) (7,505) (7,467)
Net earned premiums 25,335 18,300 17,713
Retained claims (10,224) (5,672) (9,939)
Selling Income/Expenses 3,283 5,150 4,779
Technical Margin 18,394 17,778 12,553
Other operating income and expenses 3,537 1,705 2,364
Administrative Expenses (9,167) (8,307) (7,838)
Tax expenses (1,022) (745) (542)
Financial Income 7,770 7,245 4,180
Equity from participation in subsidiaries - (481) -
Result before taxes and participations 19,512 17,195 10,717
Income tax (4,837) (3,557) (2,383)
Social contributin (2,906) (2,533) (1,433)
Profit sharing (313) (1,947) (7)
Net income 11,456 9,158 6,894

26

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