3Q18. Investor. Relations

Transcription

1 3Q18 Investor Relations I n stitutional P re s e n t a t i o n

2 Historic Developments Upgrade to BBB- by Fitch Upgrade to Bovespa s Level 2 of Corporate Governance Second issuance of Local Bonds Public offer for the acquisition of Shares and delisting from Level 2 Syndicated loan (A/B Loan) of approximately US$ 200 million New Independent Member of the Board and new Officers 1 st Trainee Program Beginning of activities in Brazil through Daycoval DTVM Inauguration of Daycoval s 1 st branch Creation of the Daycoval Asset Management Beginning of payrolldeduction activities Beginning of auto loan activities Issuance of USD225mn in Eurobonds 2007 IPO 2008 Issuance of USD300mn in Eurobonds 2009 Issuance of BRL410mn in convertible bonds Upgrade to Baa3 by Moody s 2013 Issuance of USD300mn in Eurobonds Daycoval is the first bank to issue public Local Bonds Issuance of USD500mn in bonds 4º Issuance of Local Bonds (Letras Financeiras) of R$ 350mn Acquisition of Banco CIT Brasil 2016 Public Tender Offer was successfully concluded 5 th Issuance of Local Bonds 2017 Syndicated loan (A/B Loan) of US$ 275 million 2018 Daycoval 50 th Anniversary 6 th Issuance of Local Bonds Maison Bancaire is founded by Salim Dayan in Lebanon Begin building comercial banking portfolio 2

3 Corporate Governance Board of Directors Carlos Moche Dayan Member Capital Structure Gustavo Franco Independent Member Sasson Dayan Chairman Morris Dayan Member Sergio Clemente Independent Member Rony Dayan Member Board of Executive Officers Name / Title Years at Daycoval Carlos Moche Dayan, Executive Officer - Morris Dayan, Executive Officer - Salim Dayan, Executive Officer - Albert Rouben, Operations Officer 19 Alexandre Rhein, IT Officer 12 Alexandre Teixeira, Vehicles Officer 12 Claudinei Aparecido Pedro, Commercial Officer 18 Eduardo Campos, Foreign Exchange Officer 9 Elie Jacques Mizrahi, Commercial Officer 15 Maria Regina R.M. Nogueira, Controller 28 Nilo Cavarzan, Payroll Loans Officer 14 Paulo Augusto Saba, Treasury and Markets Officer 3 Ricardo Gelbaum, IR and Institutional Officer 6 Shareholder Total Commom Shares* Controlling Shareholders 230,820,429 Total 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 ofr$ million, through issuance of26,696,649 common shares. Waiting ratification from BACEN. 3

4 Corporate Profile Financial Highlihgts 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. 140 Distribution points 41 branches + 38 Daycred Stores (Payroll Loan) + 28 exchange bureaus +33 Daypag outlets (car licensing agents and fine financing). National Coverage Presence in 21 states + 1 overseas branch (Cayman Islands). Net Income R$ million in 3Q18, 53.8% higher than 2Q18 and R$ million in 9M18, evolution of 24.1% over 9M17. ROAE 23.6% p.a. in the quarter and 20.4% in 9 months and Net Financial Margin (NIM) of 12.0% p.a. in 3Q18. Expanded Loan Portfolio R$ 17.5 billion, up 10.0% in the quarter and a 24.7% increase in the last 12 months. E-H portfolio In 3Q18 closed at R$ million, an improvement of 12.7% compared to 2Q18. Balance of LLP* In 3Q18 ended at R$ 871, 7 million. The loan loss provision divided by the E-H Portfolio reached 107.9%. Loans overdue by more than 90 days/loan Portfolio - including installments falling due - was 2.8% versus 3.8% in 3Q17. 1,880 Employees (Sep/2018) Basel III Ratio 15.0%, with the minimum required at 8.625%, and Shareholder s Equity of R$ 3,344.1 million. (*) Excludes the additional provision of R$ million. 2 4

5 Expanded Loan portfolio reaches R$ 17.5 billion in 3Q18. Expanded Loan Portfolio (R$ mn) 3Q18 2Q18 Chg. 3Q17 Chg. Companies 7, , % 6, % Receivables Purchase 2, , % 1, % Leasing % % Avals and Sureties 1, % % Total Expanded Companies 11,856,7 10, % 8, % Payroll Loans 4,618,0 4,616.6 n.a. 4, % Payroll Card ,3 5.0% % Total Payroll Loans 4, , % 4, % Total Auto Loans /Other % % Total DCC % % Total Expanded Loan Portfolio 17, , % 14, % Expanded Loan Portfolio R$ mn Breakdown Loan Portfolio - % 16, % 15,654 15, % 17, % 0.2% 3.8% Companies Payroll Loans 14, % Auto Loans Other 3Q17 4Q17 1Q18 2Q18 3Q18 5

6 Companies Portfolio: Growth of 14.8% compared to 2Q18. Highlights Focus on companies with anual revenues between R$ 10mn and R$ 300mn 90% of active clients with sales less than R$ 300 mn/year 85% of the tickets are lower than R$ 500,000 59% of the balance due is from clients with sales up to R$ 300 mn/year 94% of the clients have a balance due lower than R$ 5 mn Companies Portfolio R$ mn 8,548 10, % % 14,8% 10,106 10,324 11,857 3Q17 4Q17 1Q18 2Q18 3Q18 Collateral - % Geographic Distribution - % Outstanding Operation - % 13% 2%1% 3% 6% 3% 72% Receivables Real Estate Financial Investments Equipments / Foreign goods Vehicles Agricultural Products 4% 10% 11% 17% 58% Southeast South Northeast Mid-West North 16% 33% 3% 48% Maturity of 48% over the next 90 days Others Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years 6

7 Companies Portfolio: Diversification of the sectorial breakdown Leasing Portfolio Breakdown Companies R$ (mn) 3Q18 Chg. 1Q18 Working Capital 4, % Growth of 13.3% in 3Q18 and 59.0% in 12 months. Receivables Purchase 2, % Market Share of 5.75% (Base date June/18 Source: Abel). Guaranteed Account 1, % Volume originated in the quarter was R$ million, and in the first nine Avals and Sureties 1, % months was R$ million. Leasing % Trade Finance % Total number of Contracts registered in nine months: 1,342. BNDES % Average maturity: 43 months. Total Companies 11, % 81% of the new volume originated in 3Q18 was through the branches. Concentration by Sector 99% of the new volume originated in 3Q18 was classified between A-C rating. 3Q18 Industry 43.4% Product Breakdown Concentration of Credit Service 29.7% Commerce 21.8% 3% 100 Largest 14.9% 10 Largest Sectors (*) 6% 6% Working Capital/Guaranteed Account Road Freight Transportation 3.0% Receivables Purchase Oil Industry 3.0% 9% 50 Largest 10.4% Real Estate Development 2.1% 54% Avals and Sureties 20 Largest 6.1% Holding 2.1% 22% Trade Finance Wholesale of Cereal 1.9% 10 Largest 3.6% Auto Parts and Accessories Industry Sugar and Alcohol Plant 1.5% 1.5% Leasing BNDES Largest Debtor 0.8% Poultry Industry 1.4% Real Estate Development 1.3% * % over the total of the Companies portfolio 7

8 Network 41 branches. During the quarter, we opened a new branch in Barra da Tijuca RJ. In 2018 the Aracaju SE and Florianópolis SC branches moved to new addresses. Aracaju SE Branch Florianópolis SC Branch Av. Ministro Geraldo Barreto Sobral, Edifício JFC Trade Center Sl 1206 / 1207 Av. Jornalista Rubens de Arruda Ramos, (Av. Beira Mar Norte) Agência Aracaju SE 8

9 Payroll Loans: Balance of R$ 4,985 million Highlights Payroll Card: 366,600 Number of contracts in the portfolio 3Q18: 1, 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% Total Payroll Loan R$ mn 4,928 4,884 4,915 4,966 4,985 3Q17 4Q17 1Q18 2Q18 3Q18 Portfolio Origination R$ mn Breakdown Payroll Loan - % Breakdown Payroll Origination - % % INSS 8.4% 13.2% 13.6% 31.7% State Government Army Municipalities Government /SIAPE 29.1% Others 2.8% 8.7% 30.1% 14.5% 17.4% 26.5% INSS Army State Government Municipalities Government /SIAPE 3Q17 4Q17 2Q18 2Q18 3Q18 Net Origination Refin. Total Others 9

10 Daycred Auto Loans: increase of 5.9% compared to 2Q18. Highlights 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) 564 Auto Loan Portfolio R$ mn % + 5.9% Focus on the Southeast of Brazil Number of Promoters: 141 Origination of Auto Loan Portfolio R$ mn 3Q17 4Q17 1Q18 2Q18 3Q18 Auto Loans - Outstanding Operation % 4% 17% Maturity of 96% over the next 3 years 37% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years 10

11 Focus on the Client s profile and needs Management of R$ 3.5 billion in 3Q18. Investment Fund management developed according to each client s profile and supported by: Daycoval Asset manages 64 funds: 33 Multimarket Funds, seven Fixed Income Funds, two Stock Funds, five FIDCs, 12 Investment Club funds, one Real Estate Fund, three Holding Funds and one Managed Portfolio. Gross Revenue of R$ 2.6 mn though the management of investment funds in 3Q18 and R$ 7.3 mn in 9M18. The fund Daycoval Classic FI RF Credito Privado reached R$ 1.2 billion in 3Q18. R$ 1.3 billion Management and Custory services. Multidisciplinary team Strong control of risk based on capital preservation Long-term relationships Management agility and objectivity Asset Management R$mn % % 3,486 2,427 2,561 2,655 2,842 3Q17 4Q17 1Q18 2Q18 3Q18 11

12 Online Investment plataform daycovalinveste.com.br Automatic investment Daycoval launched Investe, and automatic investment service for clients with profitability of 100% of the CDI and daily liquidity. Wide range of Products LCI, LCA, Local Bond, CDB (bank depositary receipt, Funds and Automatic Credit. Consulting The client has access to a direct channel with investment specialist via phone, or Whatsapp. APP Dayconnect Diversification of portfolio Availability of products issued by the Bank (including productions from other institutions). Daycoval Automatic Credit This is na approved credit limit for individuals who have fixed income investments in Daycoval Investe. 12

13 Advantages 28 Exchange Bureaus 128,900 operations and turnover of R$ million in 3Q18 Foreign Currency At Daycoval Câmbio you can find the main foreign currencies in circulation in the world. Chinese Yuan CORPORATE TRAVEL CARDS 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 Cards available at the followings currencies: American Dollar Canadian Dollar Australian Dollar New Zealand Dollar Euro and Pound. VISA TRAVEL MONEY Cards available at the followings currencies: American Dollar Canadian Dollar Australian Dollar New Zealand Dollar Euro and Pound. 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; 13

14 Funding: Increase of 16.1% compared to 3Q17. Funding (R$ mn) 3Q18 2Q18 Chg. 2Q17 Chg. Deposits 5, , % 4, % Letter of Credit - LCI + LCM 1, , % 1, % Total Deposits + LCI + LCM 6, , % 5, % Private Offerings 5, , % 4, % Public Offerings % n.a. Local Bonds (Letras Financeiras) 6, , % 5, % Subordinated Local Bonds (Letras Financeiras) n.a. - n.a. Bonds 1, % 1, % Foreign borrowings 1, , % 1, % Domestic onlendings % % Borrowing and Onlending 2, , % 2, % Total 17, , % 14, % Funding R$ mn Risk Rating Agencies % 14,908 39% 15,718 15,692 38% 37% 36% 37% 39% 17,197 17,302 35% 37% 39% 38% 11% 11% 10% 11% 11% 14% 14% 14% 15% 14% 3Q17 4Q17 1Q18 2Q18 3Q18 Global Long Term Ba2 National Long Term Aa2.br Short Term BR-1 Perspective Stable Oct/18 Global Long Term BB- Short Term B National Long Term AA (bra) Short Term F1+(bra) Perspective Stable Jun/18 Global Long Term BB- Short Term B National Long Term braa+ Short Term bra-1+ Perspective Negative Jul/18 BRMP 1 Low Risk for Short Term (up to 2 years) Very safe Oct/18 Borrowing and Onlending Local Bonds Foreign Issuances Total Deposits + LCA + LCM 14

15 Asset & Liability Maturity Positive GAP of 5 days Loan Portfolio - Outstanding Operations 7.7% 2.5% Funding Outstanding Operations 3.0% 0.4% 23.2% 37.4% Maturity of 67% over the next 12 months 31.0% 21.4% Maturity of 66% over the next 12 months Free Cash of R$ 4.0 billion 29+2% 44.2% Up tp 3 months 3-12 months 1-3 years 3-5 years over 5 years Average term to Loan Portfolio by Segment Maturity (1) days Companies 197 Trade Finance 88 Payroll Loans 474 Auto Loans 445 DCC + Other 1,198 Leasing 564 BNDES 396 Total Loan Portfolio 310 (1) From September 30, 2018 Average Term to Maturity Total Loan Portfolio 310 Up tp 3 months 3-12 months 1-3 years 3-5 years over 5 years Average term to Funding Maturity (1) days Total Deposits 157 Interbank Deposits 247 Local Bonds (letras financeiras) 439 LCA (Letter of Credit Agribusiness) 175 LCM (Letter Home Mortgage) 220 Foreign Issuances 172 Borrowing and Onlending (2) 326 Leasing 214 BNDES 399 Total Funding 315 (1) From September 30, 2018; (2) Does not consider Avals and Sureties Funding Average Term to Maturity Foreign Issuances - Borrowing and Onlending 426 Total Funding 349 * Excludes the payments of Bond and tranches of multilateral organization syndicated operations (IFC and IIC). *Asset & Liability Maturity Positive GAP of 40 days 15

16 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Quality of Loan Portfolio Total Provision Balance and Establishment of Provision (% Loan Portfolio) R$ MN , Evolution LLP / Portfolio by Segment (%) Considering Additional Provision Considering Additional Provision Provision Balance Companies Portfolio Provision (1) Payroll Provision Vehicle Provision Additional Provision (1) Includes Receivables purchase and Leasing Additional Provision Additional Provision 16

17 LLP Balance / Portfolio E-H reached 107.9%. Provision Expenses by segment (R$ mn) Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Companies Payroll Loans Auto Loans + others Additional Provision(*) (*) Does not consider Additional Provision Recovered Loans (R$ mn) 93% 55% 39% 42% 24% 17% 29% , , Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Loan Portfolio E-H (R$ mn) 3Q17 4Q17 1Q18 2Q18 3T18 Companies Leasing Payroll Auto DCC+Other Total Final Balance LLP LLP Balance/Portfolio E-H (%) 96.4% 103.0% 104.1% 104.1% 107.9% (1) Considers receivables purchase E-H portfolio. (2) Does not consider Additional Provision. Considering the Additional LLP Balance of R$ million in 3Q18, the LLP Balance/E-H Portfolio was 127.5%. Write-off (R$ mn) 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 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 (102.8) (116.4) (95.3) (143.1) (196.3) (272.1) (435.0) Companies Retail % Recovered Loans (1) (1) Recovered Loans/ write-off of the previous year 17

18 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Quality indicators of credit portfolio remain controlled. Overdue Loans 3Q18 2Q18 3Q17 Overdue Loans more than 90 days past due - R$ mn Overdue Loans more than 90 days past due - R$ mn falling due installments LLP Balance / Overdue Loans > 90 days (%) 544.2% 412.4% 522.8% LLP Balance / Overdue Loans > 90 days (%) falling dueinstallments 188.7% 189.6% 176.0% Overdue Loans > 90 days/loan Portfolio (%) 1.0% 1.6% 1.3% Overdue Loans > 90 days/loan Portfolio (%) falling due installments 2.8% 3.4% 3.8% R$ mn Past due operations - more than 90 days Installments falling due % 4.2% % 4.0% 3.8% 2.8% 2.7% 3.4% 3.0% 2.9% 3.3% 3.4% 2.8% Past due operations > 90 days (R$ mn) Past due operations > 90 days/loan Portfolio 18

19 COMPANIES Past due loans > 90 days % 1.8% 2.6% 2.5% % 0.5% 1.2% 1.2% 1.4% 1.8% 1.9% 1.1% 0.9% % 2.2% 1.8% Past due loans > 90 days installments falling due % % % 2.3% 2.5% 1.2% 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 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 PAYROLL Past due loans > 90 days % 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 Past due loans > 90 days installments falling due % 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 VEHICLES Past due loans > 90 days Past due loans > 90 days installments falling due % 2.2% 2.4% 2.6% 2.5% 2.6% 2.5% 2.4% 2.1% 1.8% 1.7% 1.7% 1.6% 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 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 19

20 Efficiency Ratio of 30.2% in 3Q18 Efficiency Ratio (R$ mn) 3Q18 2Q18 Chg. 3Q17 Chg. 9M18 9M17 Chg. (+) Personnel + Administrative Expenses + Commisions (222.0) (205.5) 8.0% (189.1) 17.4% (621.7) (554.0) 12.2% (+) Depreciation and Amortization n.a n.a. Total Expenses (A) (219.4) (202.9) 8.1% (188.4) 16.5% (614.0) (552.2) 11.2% (+) Income from Financial Intermediation - LLP % % , % (+) Income from Services Provided % % % (+) Income from Receivables purchase % % % (+) Exchange Rate Variation (0.1) (0.1) 0.0% 84.9 n.a. (0.3) 64.7 n.a. Total Income (B) % % 2, , % Efficiency Ratio (A/B) (%) 30.2% 28.6% 1.6 p.p 33.0% -2.8 p.p 29.0% 32.5% -3.5 p.p Efficiency Ratio - % Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 20

21 NIM-AR of 12.9 % in 3Q18. Recurring Adjusted Net Interest Margin (NIM-AR) (%) 3Q18 2Q18 Chg. 3Q17 Chg. 9M18 9M17 Chg. Adjusted Income from Financial Intermediation adjusted (mn) % % 1, , % Hedge/MTM R$ (mn) 17.2 (14.0) n.a. 2.6 n.a 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 Adjusted Income from Financial Intermediation (A) R$ (mn) 666, % % 1, , % Average Remunerated Assets R$ (mn) 23, , % 19, % 22, , % (-) 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% Average Remunerated Assets (B) R$ (mn) 21, , % 18, % 20, , % Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/B) 12.9% 13.8% -0.9 p.p 12.3% 0.6 p.p 13.0% 11.5% 1.5 p.p Adjusted Net Interest Margin and Recurring - (NIM-AR) (1) - (%) Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 (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

22 Basel Index of 15.0% in 3Q18. Basel Index III (1) Shareholder's Equity R$ MN 15.9% 16.1% 15.8% 14.9% 15.0% 2, , , , , Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 (1) Basel Index 3 minimum 8.625%.required by the Central Bank. R$ MN Change in Shareholder s Equity September , (148.3) (2.5) 3,344.1 Dec/17 Net Income Interest on Equity and Dividends Asset Valuation Adjustmet Sep/18 22

23 Net Income of R$ 485,9 million and Return on Average Equity (ROAE) of 20.4% in 9M18. Net Income R$ MN Recurring Key Figures (R$ mn) 3Q18 2Q18 9M18 9M17 Net Income , Additional Provision* (10.4) (90,0) (100.4) - Hedge/MTM R$ (mn) 9.5 (7,7) Hedge Interest rate (DI) R$ (mn) (0.2) 1,0 (0.4) (5.8) Exchange Variation - Equivalence - Branch , (3.3) Adjusted Net Income , Adjusted ROAE (%) 23.1% 25,2% 23.3% 17.9% Adjusted ROAA (%) 2.9% 3,2% 3.0% 2.2% 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Adjusted Eficiency Ratio (%) 30.2% 28,1% 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 operations. Return on Average Equity (ROAE) - % Return on Average Assets (ROAA) - % Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 23

24 3Q18 Institutional Presentation Investor Relations Ricardo Gelbaum +55 (11) Erich Romani +55 (11) Claudine Wrobel +55 (11) "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." 24