1Q17 EARNINGS RELEASE 1Q17 EARNINGS RELEASE RESULTADOS

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1 1Q17 EARNINGS RELEASE RESULTADOS 1

2 1Q17 Earnings Release May 10, 2017 Conference Call 1Q17 May 11, 2017 Portuguese 10:00 am (BRA) 09:00 am (NY) Tel: +55 (11) / Code: Banco Daycoval Investor Relations Ricardo Gelbaum - DRI Erich Romani GRI Rafaella Nolli - Analyst Tel: +55 (11) ri@bancodaycoval.com.br Banco Daycoval S.A. announces its results for the first quarter of 2017 (1Q17). Except where otherwise stated, the financial and operating information herein is presented on a consolidated basis and in Brazilian reais. 1Q17 Highlights Recurring Net Income of R$ million in the quarter, 25.6% down on 4Q16. Net Income of R$ million in the quarter, 24.4% down on 4Q16. Recurring ROAE was 17.3% p.a. and the Net Interest Margin (NIM-AR) was 11.4% p.a. ROAE was 18.3% p.a. and the Net Interest Margin (NIM) was 11.0% p.a. The Expanded Loan Portfolio stood at R$ 13,423.7 million, up 2.2% in 12 months. In 1Q17, we took a Syndicated Loan (A/B Loan) with the IFC and 11 banks for the amount of US$ 275 million with term of 2 to 5 years. Recovered loans in the quarter amounted to R$ 54.4 million. Personnel and administrative expenses were down by 6.7% in the quarter. We ended 1Q17 with Equity of R$ 2,741.8 million and with a Basel III Index of 17.1%, which demonstrates the Bank's low leverage and high level of capital. Key Figures (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Income from loans operations % % Adjusted Gross Income from Financial Intermediation (1) % % Recurring Net Income % % Net Income % % Shareholders Equity 2, , % 2, % Total Assets 22, , % 20, % Expanded Loan Portfolio (2) 13, , % 13, % Loan Portfolio (3) 12, , % 12, % Funding 15, , % 13, % Net Interest Margin (NIM-AR) (% p.a.) (3) 11.4% 13.3% -1.9 p.p 12.7% -1.2 p.p Net Interest Margin (NIM) (% p.a.) 11.0% 12.4% -1.5 p.p 11.9% -1.0 p.p Recurring ROAE (%) 17.3% 23.7% -6.4 p.p 13.4% 3.9 p.p Return on Average Equity (ROAE) (% p.a.) 18.3% 24.7% -6.4 p.p 12.2% 6.1 p.p Recurring Efficiency Ratio (%) 34.7% 33.2% 1.5 p.p 31.5% 3.2 p.p BIS Index III (%) 17.1% 15.9% 1.2 p.p 18.2% -1.1 p.p (1) Includes exchange-rate variance on liability and foreign trading operations and income on the Receivables Purchase. (2) Includes Avals and Sureties (3) Includes exchange-rate variance on liability transactions, foreign trading, and excludes matched operations repurchase agreements tri-party repos outstanding. 2

3 Message from the Management Data on the Brazilian economy has begun to show signs that a recovery is approaching. After eight consecutive quarters in decline, it is quite likely that economic activity in the first quarter of this year has grown marginally compared to the fourth quarter of last year. Simultaneously, according to data from the Central Bank, total credit stock in the Brazilian economy continues to shrink. As such, given that the credit data suggest that the domestic private sector continues to deliver, economic activity tends to recover gradually, especially demand. Considering the current situation where inflation is currently benign, economic recovery is probable and gradual and given the progress in balancing fiscal issues, despite the difficulties inherent to the political process, the Brazilian Central Bank has reduced the SELIC rate significantly. They have also indicated that the cycle depends on the same factors that led to its intensification. In this sense, the total extent of the drop in the SELIC rate should be significant. In general, the outlook has become more positive. This is different to recent years, despite the fiscal situation still being sensitive in the short term in 2017 and 2018, inflation and interest rates will be lower, which will provide more favorable conditions for economic growth. However, as long as unemployment rate remains high, the growth rate will always be marginal. We closed the first quarter of 2017 with Recurring Net Income of R$ million, 25.6% down on 4Q16 and an increase of 23.1% on 1Q16, recurring ROAE of 18.3% p.a. and NIM-AR of 11.4% p.a., this decline was driven by lower income from financial intermediation, especially credit and leasing, in line with an increase in the provision expense and a reduction in the loan portfolio in 1Q17. The balance of the Expanded Loan Portfolio closed the quarter at R$ 13,423.7 million, 6.7% down on 4Q16 and up 2.2% when compared to the last 12 months. When solely analyzing the Companies Portfolio, we find a 9.2% reduction in the quarter and growth of 11.3% when compared to the same period in the previous year. This is due to the low demand for credit during the quarter, mainly in the Receivables Purchase. The Payroll Loan Portfolio fell by 2.4% and the Auto Portfolio decreased by 5.1% compared to 4Q16. Funding remains in line with the Loan Portfolio in amounts, currencies and maturities. It stood at R$ 15,263.5 million, up 7.8% on 4Q16 and 11.9% up on 1Q16. In February 2017, we took out a Syndicated Loan (A/B Loan) with IFC and 11 financial institutions for the amount of US$ 275 million and for an extended term of five years as part of the Women Entrepreneurs Opportunity Facility (WEOF); a global financing program dedicated to giving women entrepreneurs more access to credit. This loan aims to give small and medium-sized enterprises more access to credit, which includes enterprises run by women. The index for loans overdue by more than 90 days, in the Expanded Loan Portfolio worsened by 0.4 p.p. compared to 4Q16 and those overdue by more than 14 days worsened by 0.8 p.p. We found that this worsening situation was due to timing, when compared to 1Q16, these indexes showed improvements of 0.2 p.p. and 1.0 pp, respectively, and remain at suitable levels. The Loan Loss Provision on the E-H Portfolio ended the year at 88.6%, the bank continues working to bring this indicator back to 100% levels. The E-H portfolio ended the quarter with a balance of R$ million, a deterioration of 14.0% in the quarter. When we look at the last 12 months, there is a 3.7% improvement compared to 1Q16. We remain cautious about the economy recovering and we still see that there are many challenges for Brazil in Despite an expected drop in our indicators, as is the case in every first quarter of the year, we will continue to work with proper provisions, diversification of the portfolio and solidity in guarantees so that the next quarters continue to improve, continuing the trend as seen in the last quarters of

4 Profitability Recurring Net Income of R$ million and Recurring ROAE of 17.3% p.a. ROAE and ROAA (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Recurring Net Income (A1) % % Net Income (A) % % Average Shareholders' Equity (B) 2, , % 2, % Average Assets (C) 21, , % 20, % Recurring Return on Average Equity (ROAE) (% p.a.) (A1/B) 17.3% 23.7% -6.4 p.p 13.4% 3.9 p.p Return on Average Equity (ROAE) (% p.a) (A/B) 18.3% 24.7% -6.4 p.p 12.2% 6.1 p.p Recurring ROAA (% p.a) (A/C) 2.1% 2.9% -0.8 p.p 1.9% 0.2 p.p Return on Average Asset (ROAA) (% p.a.) (A/C) 2.2% 3.1% -0.9 p.p 1.7% 0.5 p.p Daycoval achieved a Net Income of R$ million in 1Q17, down 24.4% on 4Q16 and up 43.5% on 1Q16, due to the lower income from financial intermediation, especially credit and leasing, in line with the increase in the provision expense and the reduction in the loan portfolio in 1Q17. Recurring Net Income stood at R$ million in 1Q17, down 25.6%. In 1Q17, there was mainly a positive mark-to-market impact of the foreign funding hedge for the amount of R$ 12.7 million. We do not perform mark-to-market on foreign funding that is not subject to hedge accounting. However, we perform it on their respective hedges, and therefore, consider this mark-to-market as non-recurring. Recurring Key Figures (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Net Income % % Hedge/MTM R$ (mn) n.a n.a. Hedge Interest rate (DI) R$ (mn) (3.1) (0.6) n.a. (12.2) n.a. Exchange Variation - Equivalence - Branch (2.9) 0.4 n.a. (9.8) n.a. Adjusted Net Income % % Shareholders Equity 2, , % 2, % Total Assets 21, , % 20, % Adjusted ROAA (%) 2.1% 2.9% -0.8 p.p 1.9% 0.2 p.p Adjusted ROAE (%) 17.3% 23.7% -6.4 p.p 13.4% 3.9 p.p Adjusted Eficiency Ratio (%) 34.7% 33.2% 1.5 p.p 31.5% 3.2 p.p 4

5 Recurring Net Income and Net Income / Recurring ROAE and ROAE / Recurring ROAA and ROAA Net Income - (R$ mn) Recurring Net Income - (R$ mn) Return on Average Equity (ROAE) - (% p.a.) Return on Average Equity (ROAE) Adjusted and Recurring - (% p.a.) Return on Average Asset (ROAA) - (% p.a.) 3.1 Return on Average Asset (ROAA) Adjusted and Recurring - (% p.a.)

6 Recurring Interest Margin (NIM-AR) of 11.4% p.a. in 1Q17. Recurring Interest Margin (NIM-AR) For the sake of a better comparison, we are now disclosing this indicator. It takes into consideration the exchange variances on liability transactions and foreign trading and the income from Receivables Purchase. Moreover, it excludes the value of the tri-party repurchase agreements, booked under Current Liabilities, from the Interest-bearing Assets, considering that this amount, even when relevant in the composition of Interest-bearing Assets, results in virtually a zero-interest margin in relation to the traded volume. The Annual Adjusted and Recurring Net Interest Margin (NIM-AR) stood at 11.4% p.a. in 1Q17, down 1.9 p.p. in the quarter. Recurring Adjusted Net Interest Margin (NIM- AR) (%) 1Q17 4Q16 Chg. % 1Q16 Chg. % Adjusted Income from Financial Intermediation adjusted (mn) % % Hedge/MTM R$ (mn) n.a n.a. Hedge Interest rate (DI) R$ (mn) (5.6) (1.0) n.a. (22.1) n.a. Recurring Adjusted Income from Financial Intermediation (A) R$ (mn) % % Average Remunerated Assets R$ (mn) 19, , % 18, % (-) Expenses of financial intermediation add back provisions R$ (mn) (1,401.9) (1,527.3) n.a. (1,096.2) n.a. Average Remunerated Assets (B) R$ (mn) 17, , % 17, % Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/B) 11.4% 13.3% -1.9 p.p 12.7% -1.3 p.p The Annualized Net Interest Margin (NIM), adjusted by the loan loss provision (LLP), the exchange rate variances on liability and foreign trading operations and the income from Receivables Purchase, ended 1Q17 at 11.0% p.a., down 1.5 p.p. on 4Q16. Net Interest Margin (NIM) (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Gross Income from Financial Intermediation n.a n.a. Exchange Rate Variation 66.6 (4.6) n.a n.a. Income from Receivables purchase (1) % % Income from Financial Intermediation % % (-) Loan Loss Provision % % Income from Financial Intermediation adjusted by Loan Loss % % Provision and Exc hange Rate Variation (A) Average Remunerated Assets (B) 19, , % 18, % Interbank Investments 3, , % 3, % Securities and Derivatives 2, , % 2, % Lending Operation (does not include assignments) 12, , % 12, % Trade Finance % % Net Interest Margin (NIM) (% p.a.) (A/B) 11.0% 12.4% -1.4 p.p 11.9% -0.9 p.p (1) Reclassified from other operating/expenseve revenues. 6

7 Adjusted and Recurring Net Interest Margin (NIM-AR) and the Net Interest Margin Net Interest Margin (NIM) - (% p.a. ) Adjusted Net Interest Margin and Recurring (NIM-AR) - (% p.a.) Distribution 147 distribution points: 39 branches 39 Daycred/IFP stores 33 exchange bureaus 36 Daypag outlets 39 Branches and Head Offices on Av. Paulista, São Paulo - SP SP - ALPHAVILLE SP - SÃO JOSÉ DO RIO PRETO RJ - RIO DE JANEIRO MT - LUCAS DO RIO VERDE DF - BRASÍLIA SP - BOM RETIRO SP - SOROCABA PA - BELÉM MT - CUIABÁ CE - FORTALEZA SP - BRÁS SE- ARACAJU PB - JOÃO PESSOA MS - CAMPO GRANDE BA - SALVADOR SP - CAMPINAS SC - BLUMENAU PE - RECIFE MG - BELO HORIZONTE AM - MANAUS SP - FARIA LIMA SC - FLORIANÓPOLIS PI-TERESINA MG - UBERLÂNDIA AL - MACEIÓ SP - GUARULHOS RS - PORTO ALEGRE PR - CASCAVEL MA -SÃO LUIS SP - RIBEIRÃO PRETO RS - CAXIAS DO SUL PR - CURITIBA GO - GOIÂNIA SP - SÃO BERNARDO RN - NATAL PR - LONDRINA ES - VITÓRIA SP ALPHAVILLE - Leasing Banco Daycoval has a presence in most of Brazil through 39 branches located in 21 states, plus the Federal District. It also has a branch in the Cayman Islands, which is an important, not only for obtaining funding, but also for opening commercial lines of credit and handling our relationship with correspondent banks. In the retail segment, Daycoval works with outsourced sales promoters (the main distributors of Daycoval's retail products), as well as 39 Daycred stores through our own sales promotion company, IFP-Promotora de Serviços de Consultoria e Cadastro Ltda. 7

8 Daycred - IFP Promotora In 1Q17, IFP - Promotora de Serviços de Consultoria e Cadastro Ltda., a company of the Daycoval Group, focused on promoting payroll loans, accounted for approximately 17.6% of the total origination and 43.9% only for the Bank's INSS operations, which were responsible for the highest production among our Correspondents in Brazil. IFP has 39 stores across Brazil and 255 employees. To improve their productivity, IFP also provides services to other financial institutions. Daytravel - Exchange Bureaus At the end of 1Q17, Daycoval had 33 currency exchange bureaus. The Bank also operates through partnerships with travel operators and agencies (47 currency exchange correspondents and 384 travel agencies) to facilitate access to clients and offer greater flexibility for conducting their operations, providing a quick and secure service. To expand availability, the number of bureaus should rise by signing on new currency exchange correspondents. During this quarter, Daycoval sold approximately 103,100 transactions using prepaid cards, cash and remittances expressed in different currencies reaching R$ million, 22% up on the same period in Daypag Daypag units, operating throughout the state of São Paulo, were created to finance vehicle payment slips, IPVA payments, licensing, fines and the DPVAT insurance for car licensing agents and driving schools. We ended the period with 36 outlets, staffed by specialists in the segment, offering quick and efficient services. Daypag outlets processed 1,325,000 payment slips in 1Q17, compared to 1,589,000 in 4Q16. This business unit is part of the Bank s strategy of diversifying products and, for this purpose, the Bank still intends to expand the distribution network and improve service to our clients. Asset Management Daycoval Asset Management serves clients seeking sophisticated solutions that are aligned with their investment profile. with a number of different types of investment funds and distinctive products, such as portfolio management. Daycoval Asset ended the year with a total of assets managed and/or administered of R$ 1,952.0 million. Currently, it manages 44 funds: three are Fixed Income Funds, 30 Multimarket Funds, one Stock Fund, one FIDC, three Investment Club funds, one Real Estate Fund, three Holding Funds and two Managed Portfolios. Gross revenue from the management of investment funds was R$ 1.6 million in 1Q17. The Asset area has a specialized team of 16 employees, including traders, managers, back office and sales staff with an extensive knowledge of the market. Asset Management (R$ mn) 1,974 1,952 1,753 1,696 1, Q17 For more information, please go to: 8

9 Loan Portfolio by Type and Expanded Loan Portfolio The Expanded Loan Portfolio of R$ 13.4 billion grew 2.2% over the last 12 months Loan Portfolio (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Companies (1) 7, , % 6, % Payroll Loans 4, , % 5, % Auto Loans % % Direct Credit to Consumers (DCC) / Other % % Total Loan Portfolio 12, , % 12, % (1) Does not consider Receivables purchase and Avals and Sureties Expanded Loan Portfolio (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Working Capital 3, , % 3, % Guaranteed Account 1, , % 1, % Receivables Purchase 1, , % % Trade Finance % % BNDES % % Leasing % % Avals and Sureties % % Total Companies 7, , % 7, % Payroll Loans 4, , % 5, % Payroll Card % % Total Payroll Loans 4, , % 5, % Auto Loans Portfolio Assignments % % Total Auto Loans % % Direct Credit to Consumers (DCC) / Other % % Receivables purchase % % Total DCC/Other % % Total Expanded Loan Portfolio 13, , % 13, % The Expanded Loan Portfolio includes the Aval and Surety Portfolio, the Receivables Purchase and Leasing. It stood at R$ 13,423.7 million at the end of 1Q17, down 6.7% on 4Q16 and up 2.2% compared to the same period in the previous year. Historically, the first quarter of the year sees a drop in the Companies loan portfolio due to a lower demand for credit and the fact that 50% of the Companies portfolio is due in up to 90 days and this quarter was no different, we ended 1Q17 with a balance R$ 7,837.6 million, 9.2% down and 11.3% up compared to the same period in the previous year. In 1Q17, we saw a decline in the Receivables Purchase line compared to 4Q16, for the amount of 37.3%, ending 1Q17 with a balance of R$ 1,176.2 million, due to the high seasonal demand for this product in 4Q16, which increased 63% over the previous quarter. The type of loan for companies, which in this quarter represents 58% of the total portfolio, has a very short term, justified by repricing approximately 50% of it within 90 days. 9

10 Expanded Loan Portfolio (R$ mn) 13,129 13,390 13,428 14,386 13,424 Expanded Loan Portfolio Breakdown 4% 1% 37% 58% Companies Payroll Vehicles DCC + Other Companies Credit to Companies Breakdown (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Working Capital 3, , % 3, % Guaranteed Account 1, , % 1, % Receivables Purchase 1, , % % Trade Finance % % BNDES % % Leasing % % Avals and Sureties % % Total Companies 7, , % 7, % The Companies Portfolio closed the quarter standing at R$ 7,837.6 down 9.2% on 4Q16 and up 11.3% on 1Q16. The drop in this portfolio is mainly due to the weak demand for credit historically seen in the first quarter of the year, and also for the drop in the Receivables Purchase line. It is worth remembering that, at the end of 2016, Citi Brasil s small and medium-sized portfolio was acquired, which contributed to the increase in this type of loan. Companies Portfolio- (R$ mn) 7,043 7,375 7,478 8,630 7,838 10% 7% Companies Portfolio Breakdown Working Capital 5% 5% Guaranteed Account Receivables Purchase 42% Trade Finance 15% 16% Aval and Sureties Leasing BNDES 10

11 Concentration of the Expanded Loan Portfolio 100 largest clients Concentration of Credit March/15 March/16 March/17 Largest debtor 1.4% 0.6% 0.7% 10 Largest debtor 5.8% 4.5% 4.3% 20 Largest debtor 8.7% 7.4% 7.0% 50 Largest debtor 13.5% 12.4% 11.7% 100 Largest debtor 18.2% 17.2% 16.6% In March 2017, the portfolio of 20 largest clients showed a 20% change in its composition compared to 4Q16, demonstrating the liquidity and flexibility with which the Bank manages its assets. Retail Payroll Loans: The segment ended 1Q17 with a balance of R$ 4,956.4 million, down 2.4% on 4Q16 and down 5.7% on 1Q16, showing that the strategy to reduce growth continues. The payroll portfolio closed the quarter standing at R$ million, up 2.7% on 4Q16. For the loans transferred by the Bank, we have complied with the accounting criteria, provided for in CMN Resolution No. 3533/08, regarding the classification of these transfers in the category "Transactions substantially retaining risks and benefits." In 1Q17, no loans were transferred resulting in joint liability. The carrying amount of loans transferred under line item "Loans" as at March 31, 2017 amounts to R$ million with the respective liability assumed by the transfer recognized under the line item "Other liabilities - Miscellaneous liabilities - Liabilities on the sale and transfer of financial assets. It is important to mention that this transaction is considered a funding operation, not generating early income. We remained focused on the most solid domestic agreements, such as the INSS (Social Security system) and Federal Governments, which together represent 47.0% of the portfolio. In 1Q17, Daycoval had 1,136,000 active contracts, representing an average ticket of R$ 4,800 and an average plan of 53 months. Payroll Portfolio (R$ mn) 5,255 5,245 5,215 5,079 4,956 Payroll Breakdown 2.0% 1% 0.4% 9.6% 0.1% 10.1% 36.8% 10.1% 29.8% INSS State Government Government /SIAPE Municipalities Army Courts Others Debit Account Private Total Payroll Loan Origination, Net Origination exc. Refin and Refin Origination In 1Q17, new contracts were originated with a total volume of R$ million, 5.0% up on 4Q16. It is worth mentioning that, the line State Government represents 29.8% of the total consigned, and only 18.2% of origination, a decrease of 4.3 p.p. compared to 4Q16. In the following tables, we consider "REFIN" credit refinancing as a new credit transaction. The client (public servant/inss pensioner) gets the previous loan settled with the Bank and is given a new loan. In this transaction, commission paid to the correspondent bank is lower than traditionally paid. The Bank adopted this strategy to focus on the product s margin. 11

12 Payroll Origination (R$ mn) Breakdown of Payroll Origination 0,9%0,9% INSS 8,4% 0,7% 0,2% State Government Army 9,2% Government /SIAPE 47,0% Municipalities 14,5% Courts Others 18,3% Debit Account Private 318 Payroll Net Origination (R$ mn) % 1% 1% 7.3% 0.2% 10.7% Payroll Net Origination Breakdown INSS State Government Army Municipalities 18.8% 37.7% Government /SIAPE Debit Account Courts Others 22.1% Private Refinancing Origination (R$ mn) Refinancing Origination % 0.7%0.7% 0.1% 8.9% 0.0% INSS State Government Government /SIAPE Municipalities 11.8% Army 13.4% 59.0% Others Courts Private Debit Account 12

13 Auto Loans: The vehicle financing portfolio ended 1Q17 with a balance of R$ million, down 5.1% on 4Q16, while it was down 23.7% on 1Q16, demonstrating our concern about this segment since it directly relates to the level of unemployment in Brazil. This portfolio represents 4.2% of the total Expanded Loan Portfolio. Passenger vehicles continue to account for most of the portfolio, 75.2% in 1Q17, compared to heavy-duty vehicles. Auto Loan Portfolio (R$ mn) Breakdown of Auto Loans Portfolio % Small Vehicles Heauy-duty Vehicles 75% The origination volume in 1Q17 was R$ 52.9 million, compared to R$ 45.1 million in 4Q16, demonstrating that this segment is improving. The average age of vehicles is 12 years, the average ticket is currently R$ 5,700 and the average plan is 41 months. Auto Loan Portfolio Origination (R$ mn) Breakdown of Origination % Small Vehicles Heauy-duty Vehicles 76% Direct Credit to Consumers (DCC): This product involves direct consumer finance operations through partnerships with various retailers. It is largely concentrated in the states of São Paulo and Rio de Janeiro. We ended 1Q17 with a balance of R$ 68.8 million, down 20.6% on 4Q16. 13

14 Asset Breakdown Assets Breakdown (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Interbank Investments 4, , % 3, % Securities and Derivatives 2, , % 2, % Lending Operation 10, , % 10, % Other Assets 5, , % 4, % Total Assets 22, , % 20, % Total Assets (R$ mn) Total Assets Breakdown 20,303 20,529 20,874 21,774 22, % 11.7% 44.9% Lending Operation Other Assets Interbank Investments 23.2% Securities and Derivatives Total assets stood at R$ 22.4 billion, up 2.9% on 4Q16. The balance of Liquidity Interbank Investments ended 1Q17 at R$ 4.5 billion, up 48.2% due to the Syndicated Loan for the amount of US$ million and due to the portfolio shrinking 6.7% in the quarter. Loan and leasing operations, our main asset, amounted to R$ 10.0 billion, representing 45% of the total assets. The line of Other Assets, which includes Receivables Purchase, the foreign exchange portfolio, among other credits, showed a balance of R$ 5.2 billion, down 10.3% in the quarter, mainly due to the drop in the Receivables Purchase line. 14

15 Liquidity Free Cash of R$ 5.4 billion Breakdown of the Liquid Assets (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Cash and Cash Equivalents % % Liquidity Interbank Investments 3, , % 2, % Money Market Investment (net) 3, % 1, % Interbank Investments % % Foreign Currency Investments % % Securities (Own Portfolio - Available for Sale/Trade) 2, , % 1, % Net Interbank Accounts (net) % % Total Liquid Assets 5, , % 3, % The balance of liquid assets stood at R$ 5,935.5 million, up 55.1% in the quarter. The main events over the past 12 months led to a fluctuation in this line, illustrated in the chart below: (i) In 1Q16, the payment of US$ million (R$ 1.26 billion) relating to the Euro Bond, due in January 2016; (ii) In 2Q16, the maturity of R$ million relating to the 3rd Public Issue of Local Bonds; and (iii) In 3Q16, there was a payment of R$ million relating to the public offering - OPA (total of 36,085,958 shares), the payment of tranches of the syndicated transactions of the multilateral entities (IFC and IIC), for the amount of R$ million and the maturity of R$ million for the 4th issue of Local Bonds; (iv) In 4Q16, the 5th Public Issue of Local Bonds, for the amount of R$ million and the acquisition of part of Citi Brasil's small and medium-sized business portfolio. (V) In 1Q17, we took syndicated loans (AB loan) for the amount of US$ million. Banco Daycoval believes efficient management is based on maintaining a high cash position with matched assets and liabilities. In 1Q17, our cash position represented 87% of total deposits + LCA and LCI and was sufficient to cover109 days of maturing liabilities without any receipts from assets. Available Cash Evolution (R$ mn) 5,395 Cash Breakdown 3,289 3,749 3,487 3, % 59.4% Overnight Repos (Selic) Federal Government Bonds 15

16 Asset and liability Management Positive gap of 109 days Continuity in liability management related to diversification in the portfolio and appropriate maturities in relation to its assets. In total, 61.7% of the loan portfolio will mature over the next 12 months and only 47.2% of the funding operations will fall due in the same period. The average maturity of loan operations is currently 305 days and the average maturity of funding operations is 414 days. Outstanding Operations (March/17) 7,619 1,745 4,524 4,805 3,567 3,431 1, Up to 3 months From 3 to 12 months Funding From 1 to 3 years From 3 to 5 years Loan Portfolio Over 5 years Average Maturity of Loan Transactions: 305 days Average Maturity of Funding Transactions: 414 days Loan Portfolio - Outstanding Operation (March/17) 3.4% Funding - Outstanding Operations (March/17) 2.8% 0.02% 8.7% 34.5% 15.7% 26.2% 50.0% 31.5% 27.2% Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years 16

17 Loan Portfolio by Segment Average term to Maturity (1) days Funding Average term to Maturity (1) days Companies 182 Trade Finance 92 Payroll Loans 462 Auto Loans 399 DCC + Other 703 Leasing 398 BNDES 461 Total Loan Portfolio 305 (1) From March 31, 2017 Total Deposits 188 Interbank Deposits 150 Local Bonds (letras financeiras) 445 LCA (Letter of Credit Agribusiness) 171 LCI (Letter Home Mortgage) 227 Foreign Issuances 684 Borrowing and Onlending (2) 516 Leasing 278 BNDES 465 Total Funding 414 (1) From March 31, 2017 (2) Does not consider Avals and Sureties 17

18 Operating Performance Funding Syndicated Loan (AB Loan) for the amount of US$ 275 million maturing between 2 and 5 years. Funding (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Total Deposits 5, , % 4, % Demand Deposits + Other Deposits % % Time Deposits 4, , % 3, % Interbank Deposits % % Letter of Credit Home Mortgage % % Letter of Credit Agribusiness % % Local Bonds (Letras Financeiras) 4, , % 3, % Individuals % % Institutional 3, , % 3, % Institutional - Public Offerings % % Foreign Issuances 1, , % 1, % Bonds 1, , % 1, % Borrowing and Onlending 2, , % 2, % Foreign borrowings 2, , % 2, % Domestic onlendings % % Total 15, , % 13, % Total funding stood at R$ 15,263.3 million in 4Q16, up 7.8% on 4Q16, driven by the AB syndicated loan for the amount of US$ 275 million for up to 5 years and by the increase in the line of Local Bonds. The deposit line was stable. We are under no pressure to increase the cost of funding. In this quarter, the Bank completed a funding from the IFC, which mobilized 11 banks in a US$ 275 million loan to expand access to credit to small and medium-sized enterprises, including enterprises undertaken by women. The financing includes a five-year loan of US$ 63.6 million from IFC's own funds, as well as a two-year syndicated loan consisting of two tranches: one denominated in us dollar for US$ 80 million, and the other denominated in euro for 55.5 million. The transaction will also include a five-year loan of US$ 47.7 million through the IFC Managed Co-Lending Portfolio Program. Of the total of US$ 275 million, at least 25% will be invested in SMEs run by women. The remaining funds will be used to finance Daycoval's SME lending operations across Brazil. This transaction is shown in the line of Foreign Loans which stood at R$ 2,106.3 million, 50.1% up on 4Q16. Total deposits, including LCIs (Home Mortgage Letters of Credit) and LCAs (Agribusiness Letters of Credit) represent 40.9% of the total funding, with a balance of R$ 6,241 million, stable compared to 4Q16. Time deposits ended the year at R$ 4,332.2 million, up 1.5% on the last quarter. Funding through Local Bonds stood at R$ 4,939.7 million, up 8.4% in the quarter and 26.9% YoY, due to the higher demand for this product. Funding is compatible with the capital structure of the Bank, allowing it to keep loan maturities and the balance of assets and liabilities in line. We have worked to increase the client/investor base and ended 1Q17 with 10,330 active clients in the portfolio. 18

19 Total Funding R$ (mn) 13,640 13,391 13,437 14,162 15,264 41% 43% 46% 44% 41% 29% 29% 29% 32% 32% 12% 12% 12% 12% 11% 18% 16% 13% 12% 16% Borrowing and Onlending Local Bonds Foreign Issuances Total Deposits + LCA + LCM Total Deposits Breakdown (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Corporates 2, , % 1, % Investment Funds 1, , % 1, % Financial Institutions + Interbank Deposits % % Individuals % % Institutional % % Demand Deposits % % Letter of Credit Home Mortgage % % Letter of Credit Agribusiness % % Total 6, , % 5, % 19

20 Ratings Rating at Sovereign level Daycoval's ratings demonstrate the low level of risk and the solidity obtained in its operations. The information obtained from the respective rating agencies is widely taken into account by the financial market, but for all effects, should not be taken as an investment recommendation. According to the reports published, the ratings reflect the opinion of the agencies that Banco Daycoval maintains a conservative profile and has a consistent earnings history, with good quality indicators for its assets and strong capitalization ratios, coupled with a low level of leverage, principally in comparison with its peers, as follows: i) Ba2 on a global scale by Moody's with a "Stable" outlook; ii) BB by Fitch Ratings with a "Negative" outlook; iii) BB- by Standard&Poor's also with a "Negative" outlook; iv) BRMP 1 by Riskbank - Low Risk for Medium Term (up to two years), very safe. For more information, please go to: Global Scale Long Term Ba2 Global Scale Long Term BB Short Term F3 Global Scale Long Term BB- Short Term B BRMP 1 Low Risk to Mid- Term (up to 2 years) Very Safe National Scale Long Term Aa2 National Scale Long Term AA (bra) Short Term F1 (bra) National Scale Long Term A (bra) Short Term A-2 (bra) Index Stable Negative Negative February 2017 August 2016 February 2017 December 2016 Abril

21 Quality of Loan Portfolio Total of the Provision/Loan Portfolio of 6.4% in the quarter The quality of the portfolio remains high, with 91% of the transactions classified between AA-C at the end of 1Q17, in accordance with CMN Resolution The balance of Avals and Sureties are not included in these tables. The balance of the loan portfolio at the end of March 2017 was R$ 12,890.4 million, with an LLP balance of R$ Required Banco Daycoval - R$ mn Rating Provision Loans % Provision AA 0.0% % - A 0.5% 6, % 30.1 B 1.0% 4, % 46.0 C 3.0% 1, % 33.5 D 10.0% % 22.4 E 30.0% % 37.8 F 50.0% % 87.6 G 70.0% % H 100.0% % Loan Portfolio Credit Assignments until Total Total Provision / Loans 12, % #REF! #REF! #REF! 12, % Companies (1) (R$ mn) Leasing (R$ mn) 1Q17 Loans % Provision 1Q17 Loans % Provision AA - C 6, % 72.3 AA - C % 3.2 D % 8.3 D % 1.3 E % 22.5 E % 1.9 F % 44.4 F % 2.0 G % G % 0.3 H % H % 9.5 Subtotal 6, % Subtotal % % Total 6, % Total % 18.2 Total Provision / Loans 8.2% Total Provision / Loans 4.6% Auto Loans (R$ mn) Payroll Loans (R$ mn) 1Q17 Loans % Provision 1Q17 Loans % Provision AA - C % 6.6 AA - C 4, % 27.2 D % 4.6 D % 8.0 E % 5.6 E % 7.4 F % 4.8 F % 35.9 G % 5.7 G % 11.5 H % 35.7 H % 82.7 Subtotal % 63.0 Subtotal 4, % Total % 63.0 Total 4, % Total Provision / Loans 11.2% Total Provision / Loans 3.5% (1) Does not include Avals and Sureties 21

22 As of this quarter, we have begun to disclose the quality of the portfolio of the product - Receivables Purchase. The product that represents 15.0% of the loan portfolio for companies in this quarter. Receivables Purchase (R$ mn) 1Q17 Loans % Provision AA - C 1, % 13.3 D % 1.4 E % 0.9 F % 1.3 G % 1.9 H % 16.5 Subtotal 1, % 35.3 Total 1, % 35.3 Total Provision / Loans 3.0% LLP/Loan Portfolio Breakdown (%) Companies Payroll Auto Loans 22

23 Loan Loss Provision and Other Credits (LLP) (1) Recovery of Loans for the amount of R$ 54.4 million in the quarter Overview of Quality of Loan Portfolio (1) 1Q17 4Q16 Chg. % 1Q16 Chg. % Loan Portfolio R$ (mn) 12, , % 12, % Establishment of Provision R$ (mn) % % Final Balance LLP (R$ mn) % % Final Balance Loan EH R$ (mn) % % Overdue Loans more than 14 days past due R$ (mn) % % Overdue Loans more than 60 days past due R$ (mn) % % Overdue Loans more than 90 days past due R$ (mn) % % Establishment of Provision/Loan Portfolio (%) 1.0% 0.9% 0.1 p.p 1.3% -0.3 p.p Final Balance LLP/Loan Portfolio (%) 6.4% 5.5% 0.9 p.p 6.3% 0.1 p.p Final Balance Loan EH/Loan Porfolio (%) 7.2% 5.9% 1.3 p.p 7.6% -0.4 p.p Overdue Loans more than 14 days past due / Loan Portfolio (%) 2.4% 1.6% 0.8 p.p 3.4% -1.0 p.p Overdue Loans more than 60 days past due / Loan Portfolio (%) 1.7% 0.9% 0.8 p.p 2.1% -0.4 p.p Overdue Loans more than 90 days past due / Loan Portfolio (%) 1.1% 0.7% 0.4 p.p 1.3% -0.2 p.p Final Balance LLP / Overdue Loans more than 14 days past due (mn) 272.3% 344.6% p.p 186.1% 86.2 p.p Final Balance LLP / Overdue Loans more than 14 days past due (mn) 376.9% 594.5% p.p 297.5% 79.4 p.p Final Balance LLP / Overdue Loans more than 14 days past due (mn) 562.7% 773.6% p.p 477.4% 85.3 p.p Final Balance LLP / Loan EH (%) 88.6% 93.6% -5.0 p.p 82.8% 5.8 p.p Write-offs R$ (mn) (73.2) (198.1) -63.0% (110.4) -33.7% Companies Recovered Loans R$ (mn) % % Retail Recovered Loans R$ (mn) % % (1) Does not include receivables, avals and sureties and includes Leasing 23

24 Overdue loans more than 14 days past due 5.4% 5.6% 5.7% 5.8% 5.8% 1.2% 1.1% 1.3% 1.6% 4.7% 4.1% 3.4% 1.5% 2.5% 1.3% Overdue Loans more than 14 days past due / Auto Loans (%) Overdue Loans more than 14 days past due / Payroll Loans (%) Overdue Loans more than 14 days past due / Companies Loans (%) Overdue loans more than 90 days past due 2.5% 2.5% 2.4% 2.5% 2.6% 0.6% 0.6% 0.5% 1.7% 2.5% 2.5% 0.7% 0.8% 1.2% 0.5% Overdue Loans more than 90 days past due /Auto Loans (%) Overdue Loans more than 90 days past due /Payroll Loans (%) Overdue Loans more than 90 days past due / Companies Loans (%) Loan Loss Provision (LLP) (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Balance at the Begining of the Period % % Establishment of Provision % % Companies (1) % % Payroll % % Auto % % DCC + Other % % Write-offs (73.2) (198.1) -63.0% (110.4) -33.7% Companies (1) (22.8) (143.2) -84.1% (64.7) -64.8% Retail (50.4) (54.9) -8.2% (45.7) 10.3% Final Balance LLP (R$ MM) % % (1) Does not include receivables, avals and sureties A provision of R$ million was set in 1Q17, 11.3% up on 4Q16 and 17.8% down on 1Q16. It is important to mention that this increase in the quarter is driven by the portfolio of companies. We are still very concerned about the deterioration of the economic situation and continue to work with provisions at high levels. The line in Company loans ended 1Q17 with a provision expense of R$ 84.2 million, an increase of 53.4% compared to 4Q16 and a reduction of 17.8% when compared to the same period in the previous year. This deterioration is not concentrated in any one client nor any specific sector of the economy. We have adequately priced credit risks, in addition to being able to offset any increase in payment default. 24

25 In the payroll loan segment, the provision expense stood at R$ 36.0 million, down 26.8% in the quarter, and practically stable compared to the last 12 months. In the auto portfolio, the provision expense for the quarter was R$ 12.0 million, 16.7% down on 4Q16 and 42.0% down on 1Q16, indicating the stability of quality in this segment. The balance of the E-H portfolio ended the quarter at R$ million, 14.0% down on the previous quarter. When comparing the last 12 months, it was up 3.7% on 1Q16, considering the growth in the loan portfolio of 1.2%. The Loan Loss Provision over the E-H Portfolio stood at 88.6%. We believe that this indicator will return to levels above 100% in the upcoming quarters. Créditos Vencidos Empresas (1) (R$ MM) 1T17 4T16 Var. % 1T16 Var. % Créditos Vencidos há mais de 14 dias % % Créditos Vencidos há mais de 60 dias % % Créditos Vencidos há mais de 90 dias % % Créditos Vencidos há mais de 14 dias / Carteira Empresas (%) 2.5% 1.3% 1.2 p.p 5.0% -2.5 p.p Créditos Vencidos há mais de 90 dias / Carteira Empresas (%) 1.2% 0.5% 0.7 p.p 1.8% -0.6 p.p Saldo de PDD/Crédito Empresas (%) 8.2% 6.6% 1.6 p.p 9.1% -0.9 p.p Saldo PDD / Créditos Vencidos há mais de 90 dias (%) 669.3% % p.p 499.4% p.p Créditos Vencidos Consignado (R$ MM) 1T17 4T16 Var. % 1T16 Var. % Créditos Vencidos há mais de 14 dias % % Créditos Vencidos há mais de 60 dias % % Créditos Vencidos há mais de 90 dias % % Créditos Vencidos há mais de 14 dias / Carteira Consignado(%) 1.6% 1.5% 0.1 p.p 1.2% 0.5 p.p Créditos Vencidos há mais de 90 dias / Carteira Consignado (%) 0.8% 0.7% 0.1 p.p 0.5% 0.3 p.p Saldo de PDD/Carteira de Consignado (%) 3.5% 3.3% 0.2 p.p 2.6% 0.9 p.p Saldo PDD / Créditos Vencidos há mais de 90 dias (%) 425.4% 457.9% p.p 538.2% p.p Créditos Vencidos Veículos (R$ MM) 1T17 4T16 Var. % 1T16 Var. % Créditos Vencidos há mais de 14 dias % % Créditos Vencidos há mais de 60 dias % % Créditos Vencidos há mais de 90 dias % % Créditos Vencidos há mais de 14 dias / Carteira Veículos (%) 5.8% 5.8% 0.0 p.p 5.4% 0.4 p.p Créditos Vencidos há mais de 90 dias / Carteira Veículos (%) 2.5% 2.6% -0.1 p.p 2.4% 0.1 p.p Saldo de PDD/Carteira de Veículos (%) 11.2% 11.6% -0.4 p.p 10.5% 0.7 p.p Saldo PDD / Créditos Vencidos há mais de 90 dias (%) 440.6% 438.5% 2.1 p.p 432.6% 8.0 p.p Saldo Total PDD / Créditos Vencidos há mais de 90 dias (%) 562.7% 773.6% p.p 477.4% 85.3 p.p (1) Não considera Cessão de Crédito e Avais e Fianças Loans overdue by more than 14 days, 60 days and 90 days deteriorated over the course of 1Q17. Loans overdue by over 90 days ended 1Q17 at 1.1%, 0.4 p.p. up on 4Q16 and an improvement of 0.2 p.p. compared to 1Q16. This deterioration in the indicators is driven by the Company loan segment. Loans overdue by over 90 days in this segment ended 1Q17 at 1.2%. It is important to mention that this indicator is at adequate levels. During 1Q17, Banco Daycoval renegotiated loans with defaulting clients for R$ 59.8 million. Daycoval Leasing did not renegotiate any leasing transactions during 1Q17. It is important to mention that the previous provision (Rating) for the Bank's renegotiated loans has been maintained. The amount of loan write-offs was R$ 73.2 million in 1Q17. We continue in our efforts to recover the credit from transactions that have already been written down. In 1Q17, loans recovered amounted to R$ 54.4 million. 25

26 Financial Performance Income from loans stood at R$ million in 1Q17 Income from Financial Intermediation (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % Loans Operations % % Companies Portfolio % % Payroll % % Auto % % Direct Credit to Consumer + Other % % Leasing Operation % % Securities Operations % % Derivatives ( 1 ) (134.1) (62.0) n.a. (289.8) n.a. Foreign Exchange Operations n.a n.a. Income from Financial Intermediation (A) % % Funding Operations (2) (395.9) (420.5) -5.9% (368.2) 7.5% Borrowings and Onlendings Operations (3) (21.8) (6.5) n.a. (27.6) -21.0% Leasing Operation (52.7) (51.0) 3.3% (46.9) 12.4% Sales or Transfer Financial Asset Operations (16.8) (20.0) -16.0% (6.2) n.a. Loan Loss Provision (LLP) (134.7) (121.0) 11.3% (164.0) -17.9% Expenses on Financial Intermediation (B) (621.9) (619.0) 0.5% (612.9) 1.5% Gross Income from Financial Intermediation (A-B) % 38.6 n.a. Exchange Rate Variation (4) 66.6 (4.6) n.a n.a. Income from Receivables purchase (4) % % Adjusted Income from Financial Intermediation % % MTM adjustment - Hedge n.a n.a. Adjusted Gross Income from financial intermediation - Except MTM - Hedge % % (1) Income from Derivatives (Hedge) (135.5) (66.3) (286.8) (2) Foreign Exchange Variation without Foreign Issues 0.0 (6.5) 0.0 (3) Foreign Exchange Variation without Borrowings abroad (4) Reclassified from other operating/expenses revenues In 1Q17, income from loans stood at R$ million, 3.3% down on 4Q16. The line of Company Loans ended 1Q17 with an income of R$ million, stable compared to 4Q16. The line of Payroll Loans ended the quarter with an income of R$ million, 5.8% down on 4Q16 and the Auto line stood at R$ 46.6 million, down 8.4% in the quarter, due to a decline in the portfolio over recent quarters. Leasing ended 1Q17 with an income of R$ 75.9 million and an expense of R$ 52.7 million. Gross Income from Financial Intermediation ended the quarter with a positive balance of R$ million. Excluding the effect of the MTM hedge adjustment for foreign issues, considering the reclassification of foreign exchange variance on liability operations and income from Receivables Purchase, the gross income from adjusted financial intermediation was R$ million in 1Q17, down 13.1% in the quarter. Expenses for market funding, borrowing and on lending were R$ million in the quarter, 2.2% down on 4Q16. Derivative result was negative R$ million in 1Q17 because it included a negative hedge result of R$ million. Excluding these effects, the derivative result was R$ 1.4 million in 1Q17 versus R$ 4.3 million in 4Q16. 26

27 Personnel, Administrative and Commission Expenses Personnel and Administrative Expenses (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Var. % Personnel Expenses (67.5) (75.7) -10.8% (67.4) 0.1% Administrative Expenses (57.2) (56.9) 0.5% (56.1) 2.0% Administrative Expenses - Local/ Foreign Bond Issuance 0.0 (1.0) n.a. - n.a. Total Personnel and Administrative Expenses (124.7) (133.6) -6.7% (123.5) 1.0% Commission Expenses (total) (55.7) (55.5) 0.4% (51.9) 7.3% Payroll (46.3) (46.0) 0.7% (40.0) 15.8% Auto Loans (5.7) (5.5) 3.6% (8.1) -29.6% Direct Credit to Consumer (DCC) + Others (0.3) (0.7) n.a (0.9) n.a Daytravel (3.4) (3.3) 3.0% (2.9) 17.2% Total (180.4) (189.1) -4.6% (175.4) 2.9% Personnel and administrative expenses ended 1Q17 at R$ million, down 6.7% on 4Q16, due to ongoing work in reducing expenses. Analyzing personnel expenses, we closed the quarter at R$ 67.5 million, down 10.8% on 4Q16. Consolidated Banco Daycoval ended 1Q17 with 1,503 employees. Currently, the sales team for the Companies segment represents 25% of total employees. The commission expense, illustrated in the table above, amounted to R$ 55.7 million, stable compared to 4Q16. Recurring Efficiency Ratio In 1Q17, the Recurring Efficiency Ratio was 34.7%, 1.5 p.p. up on 4Q16. This ratio is in line with our expectation for the Bank's Efficiency. Recurring Efficiency Ratio (R$ mn) 1Q17 4Q16 Chg. % 1Q16 Chg. % (+) Personnel (67.5) (75.7) -10.8% (67.4) 0.1% (+) Administrative Expenses (57.2) (57.9) -1.2% (56.1) 2.0% (+) Commisions (55.7) (55.5) 0.4% (51.9) 7.3% (+) Depreciation and Amortization n.a 1.6 n.a Total Expenses (A) (179.8) (188.4) -4.6% (173.8) 3.5% (+) Income from Recurring Financial Intermediation - LLP % % (+) Income from Services Provided % % (+) Income Service Fee % % (+) Exchange Rate Variation 66.6 (4.6) n.a n.a Total Income (B) % % Recurring Efficiency Ratio (A/B) (%) 34.7% 33.2% 1.5 p.p 31.5% 3.2 p.p Profit Sharing (15.9) (10.2) 55.9% (12.0) 32.5% Recurring Efficiency Ratio (considering Profit Sharing) (%) 37.8% 35.0% 2.8 p.p 33.7% 4.1 p.p 27

28 Other Operating Income/Expense Other Operating Income/Expense posted a net income of R$ million in 1Q17, against a net income of R$ 89.2 million in 4Q16. After excluding exchange rate effects, the net income was R$ 67.2 million compared to a net income of R$ 93.3 million in 4Q16. The reduction in the period was mainly due to lower revenues from receivables purchase due to the decrease in this portfolio in the quarter. Profit Sharing Program Expenses related to the provision for payment of the PPR and PLR programs amounted to R$ 15.9 million in 1Q17. Income tax and Social Contributions Expenses for Income Tax and Social Contributions amounted to R$ 60.1 million in 1Q17, compared to R$ 92.8 million in 4Q16. 28

29 Equity and Leverage Basel Index of 17.1% in 1Q17 Equity Shareholder's Equity (R$ mn) Equity amounted to R$ 2,741.8 million in 1Q17, up 3.2% on 4Q16. 2,831 2,855 2,538 2,657 2,742 In the first quarter of 2017, it was decided to pay R$ 47.7 million in Interest on Equity. It is important to note that the Bank only has a Tier I capital structure. Changes in Equity (R$ MM) (47.7) 9.8 2, ,657.4 Dec/16 Net Income Interest on Equity and Dividends Asset Valuation Adjustment Mar/17 29