EARNINGS RELEASE. 2nd Quarter Highlights

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1 EARNINGS RELEASE In the past few months the Banco Indusval has undertaken important measures in order to restructure its operations, improve its capital structure and reposition its market strategy: (i) the sale of controlling stake in our brokerage and distribution platform for financial products, Guide Investimentos, to Fosun, one of the largest privately-owned financial conglomerates in China, (ii) the development of a new digital banking platform for small and medium-sized companies through a joint venture with the Hive Brasil, formed by Brazilian and Silicon Valley entrepreneurs with extensive experience in fintechs, to participate in this new disruptive wave of the banking sector, a joint venture that is structured in the bank's subsidiary, which will be renamed Banco SmartBank S.A. ("SmartBank") and (iii) the repositioning of its agribusiness lending franchise: with small and medium agriculture producers, creating a highly diversified credit portfolio. On August 8, 2018, the Central Bank board has approved the acquisition Guide s control by the Fosun Group. The transaction must now be approved by the National Monetary Council and by a Presidential Decree, which management expects to obtain in the next 30 days. Free Cash maintained its high historical level and at the end of the quarter had totaled R$801.5 million, representing 40.7% of total deposits when compared to 34.2% at the end of 2Q17, which is a result of the high liquidity strategy and growing Highlights Banco Indusval executed, on February 26, 2018, with Fosun Investimentos (Brasil) Ltda., an integral subsidiary of Fosun Group ( Fosun ), one of the world s leading multinational companies, the Share Purchase and Sale Agreement (the Agreement ), which establishes the binding terms and conditions for the selling to Fosun of common shares and preferred shares held by Banco Indusval, which will represent, on the closing date of the Transaction, 70% of the total capital of Guide Investimentos S.A. Corretora de Valores ( Guide and Transaction, respectively), for the amount of up to R$ 290 million. The Guide transaction will strengthen the bank s capital base once the deal is closed. In addition, the bank's management is actively pursuing new alternatives to further strengthen its capital base. Digital Bank: As announced on December 4, 2017, the bank entered into the an Investment Agreement ( Investment Agreement ), with The Hive BR Holding, LLC ( The Hive ), to develop in its subsidiary Banco Intercap S.A. (which will be renamed Banco SmartBank S.A.), a new and innovative digital banking platform directed to small and medium-sized enterprises (SMEs), which is already in a pre-operational phase. The purpose of this transaction is precisely to position the bank in this new disruptive mega trend of the banking sector around the world, and our focus in this case is in SME clients which, in our opinion, are not being adequately met in their needs by the large retail banks. The Bank s Expanded Credit Portfolio closed the quarter at R$862.1 million, with a 48.2% intentional retraction year-overyear. We pointed out that at the end of this quarter, the agro portfolio totaled R$ 432 million (50.1% of the total portfolio), of which approximately 85% of its loans were classified between AA and C. It is also important to highlight the high liquidity of the bank s expanded portfolio, since its average duration ended the semester at only 11 months. At the end of 2Q18, free cash totaled R$801.5 million, corresponding to 40.7% of total deposits, compared to 34.2% at the end of 2Q17, maintaining the historically high level of recent quarters. Our comfortable cash position is the result of our strategy to maintain a high level of liquidity and diversify our funding sources in recent years, and by the end of 2Q18, we had a depositor base of more than 32,200 investors, compared to 27,100 by late 2Q17 up 19% in the period. Regarding the Bank s management expenses, personnel expenses dropped 0.7% in the quarter and grew 3.4% in the year, basically due to expenses related to staff adjustments, which fell 14.4% year-over-year and an increase in provisions for labor disputes. Administrative expenses, in turn, decreased 1.6% over 1Q18 and 0.9% year-over-year. Consolidated managerial revenues from services rendered and tariffs¹ from the Bank and Guide amounted R$28.4 million in the quarter, increased by 13.0% quarter-over-quarter and 66.2% compared to 2Q17. It is important to note that Guide Investimentos maintained its high share of this revenues, 94.5% vs. 81.7% in 2Q17, and showed a growth of 83% in its gross revenue in the same comparison. The quarter s Net Result was negative in R$51.8 million, reflecting (i) the high expenditure with ALL due to the conservative standing of the bank's management and the impact of the current economic recession in our portfolio, (ii) the voluntary reduction policy of the credit portfolio, and (iii) the cost of cash carryover and assets without financial compensation. 1 Gross income from services rendered from commissions paid to independent agents, classified under administrative expenses IDVL4: R$0.77 per share Closing: Aug 10, 2018 Free float: Market cap: R$117.0 million Price/Book Value: /17

2 Summary Message from the Management... 3 Macroeconomic Scenario... 6 Key Indicators... 8 Operating Performance Expanded Credit Portfolio Funding Free Cash Capital Adequacy Credit Ratings Capital Markets Balance Sheet Income Statement /17

3 Message from the Management During the second quarter of 2018, considering our capital base, we maintained our credit policy of intentional reduction of our loan portfolio. As a result, we maintained a more rigorous loan concession policy (while maintaining existing NIM objectives), increased provisioning levels and further strengthened our focus on agribusiness companies and producers. We also increased our liquidity coefficient during the period, maintaining a significant excess cash reserve. The Bank s Expanded Credit Portfolio closed the quarter at R$862.1 million, with a 48.2% intentional retraction year-over-year. We pointed out that at the end of this quarter, the agro portfolio totaled R$ 432 million (50.1% of the total portfolio), of which approximately 85% of its loans were classified between AA and C. It is also important to highlight the high liquidity of the bank s expanded portfolio, since its average duration ended the semester at only 11 months. It is worth mentioning that the management of assets and liabilities reflects long-term profile of our funding sources versus the shorter-term profile of our assets, with 61% of our expanded credit portfolio s operations expiring within the next 12 months. At the end of 2Q18, free cash totaled R$801.5 million, corresponding to 40.7% of total deposits, compared to 34.2% at the end of 2Q17, maintaining the historically high level of recent quarters. Our comfortable cash position is the result of our strategy to maintain a high level of liquidity and diversify our funding sources in recent years and by the end of 2Q18, we had a depositor base of more than 32,200 investors, compared to 27,100 by late 2Q17 up 19% in the period. Financial Intermediation Result before ALL managerial expenses totaled (R$8.9 million) compared to R$1.3 million in 1Q18, this decline still impacted by (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover and assets without financial compensation. Consolidated managerial revenues from services rendered and tariffs¹ from the Bank and Guide amounted R$28.4 million in the quarter, increased by 13.0% quarter-over-quarter and 66.2% compared to 2Q17. It is important to note that Guide Investimentos maintained its high share of this revenues, 94.5% vs. 81.7% in 2Q17, and showed a growth of 83% in its gross revenue in the same comparison. We attained high growth levels on both the Individual and Institutional channels of Guide Investimentos. With the Digital platform, the wealth management area and our independent agent network, the Individual segment reached the outstanding milestone of approximately R$14 billion (hired) in assets under custody at the end of 2Q2018, with over 63,000 clients. In the first half of 2018, we had the highest semester revenue ever reported by the company, 86% higher than the same period last year. At the same time, the Institutional segment had the maturity of the products launched at the end of last year, which both boosted our revenues and increased our market share, as well as having specialized tables recognized in the market as major providers of liquidity for the main players in the market. Consolidation of Guide s activities and the resulting expanded coverage also contributed to increasing revenue and fundraising, as well as reaching a prominent position in structured product placement, participating in public offers of fixed income, real estate funds, and also Investment Fund distribution. Regarding the Bank s management expenses, personnel expenses dropped 0.7% in the quarter and grew 3.4% in the year, basically due to expenses related to staff adjustments, which fell 14.4% year-over-year and an increase in provisions for labor disputes. Administrative expenses, in turn, decreased 1.6% over 1Q18 and 0.9% year-over- 3/17

4 year. We should also highlight the continued commitment by Bank s management in cutting costs. Personnel expenses for Guide Investimentos climbed 6.8% in the quarterly comparison and advanced 16.6% year-over-year, administrative expenditures increased 4.9% in the quarter and 30.3% in 12 months. The quarter s Net Result was negative in R$51.8 million, reflecting (i) the high expenditure with ALL due to the conservative standing of the bank's management and the impact of the current economic recession in our portfolio, (ii) the voluntary reduction policy of the credit portfolio, and (iii) the cost of cash carryover and assets without financial compensation. On August 8, 2018, the Central Bank board has approved the acquisition Guide s control by the Fosun Group. The transaction must now be approved by the National Monetary Council and by a Presidential Decree, which management expects to obtain in the next 30 days. The Guide transaction will strengthen the bank s capital base once the deal is closed. In addition, the bank's management is actively pursuing new alternatives to further strengthen its capital base. ¹ Gross income from services rendered from commissions paid to independent agents, classified under administrative expenses. 4/17

5 Macroeconomic Scenario In the internal scenario, 2Q18 was marked by a build up in the political instability stretching since early on in the year. The mashup between a political scenario of transition in the Executive branch and Congress, along with a 15% spike in oil prices and a U.S. dollar exchange rate upshot of nearly 20% in April and May culminated in the 11-day truck drivers strike in late May. In the end, the strike triggered uncertainties among investors and business owners regarding the October elections ahead of time. With the production and finance sectors focused on election polls and the behavior of political parties and prospective candidates, the underwhelming performance of reformist candidates in a series of polls released in the last three months ultimately drove production and employment forecasts down, negatively affecting GDP growth projections for After an optimistic first quarter, the interruption in road transportation and product distribution took a toll on the second quarter s economic indicators. Production for the industrial sector in May showed a sharp drop of 10.9%, interrupting a steady average monthly growth of 0.40% since mid Non-durable consumer goods showed the worst performance in the general index in May, especially food products, while capital goods and durable consumer goods maintained positive performance trends. The strike s effects weren t as severe on trade, with retail sales dropping only 0.6% in May, after recording average monthly growth of 0.35% since mid The job market showed slightly lower unemployment numbers, despite the sharp drop in the industrial sector s production in the second quarter. The unemployment rate fell to 12.7% in 2Q18, compared to 13.1% in the first quarter, according to the National Sample Survey of Households (PNAD). However, the unemployment downtrend was accompanied by an upswing in informal jobs informal jobs rose from 2.9% to 5.7% in 1Q18 year over year, according to PNAD. The truck drivers strike and growth indexes for industry and trade falling short of expectations added fuel to the political uncertainty fire, negatively affecting investor perspectives regarding economic growth in Brazil. According to the Focus Report, the GDP growth forecast for 2018 dropped from 2.84% to 1.50% in the second quarter. The expected drop in 2019 was not as abrupt 3.0% to 2.5%. Regarding inflation, the IPCA closed the second quarter with accrued 12-month gains of 4.39%, well above the previous quarter s result (2.68%) and below the target ceiling (4.5%). The June IPCA drove the accrued 12-month inflation close to the target ceiling, spiking to 1.26% after a 0.23% deflation in June According to the Focus Report, inflation forecasts stand at 4.15% in 2018 and 4.10% in Given the sharp upswing of the U.S. dollar in the second quarter and uncertainties surrounding U.S. interest rate hikes, the Central Bank of Brazil opted to interrupt the SELIC cutting cycle in May, maintaining the rate at 6.50%. It is worth mentioning that inflationary pressures in July already show signs of reversal, probably due to sluggish economic growth. The July IPCA-15 showed inflation of 0.64%, well below the 1.11% high recorded in June. Regarding the Brazilian National Financial System, the total stock of credit operations reached R$3.107 trillion in May, climbing 0.81% over the previous quarter. Average loan concessions were up 0.10% in the quarter, with a 2.80% drop in corporations and 2.45% rise in individuals. The average loan term increased to months in May 2018, compared to months in March Credit as a share of GDP ended this year s second quarter at 46.6%, the same number recorded in the previous quarter. In free credit operations, default by individuals fell to 5.00% in May 2018, compared to the 5.04% in March The default rate of corporations also fell to 4.10% in May 2018, compared to 4.44% in March. The drop in interest rates, recovered employment and increased incomes are expected to prompt a gradual improvement to the indicators. On the foreign front, the U.S. Federal Reserve System (Fed) increased the short-term interest rate (Fed Funds) by 0.25% once again, to the range of 1.75%-2.00%. Although the Fed Funds upswing in June was highly expected, the sharp peak of 15% in oil rekindled the debate on a possible upsurge in U.S. inflation higher than expected, which caused the long-term, 10-year U.S. interest rate to climb to 3.10% in mid-may, well above the 2.40% seen in late The upturn in the long-term U.S. interest, along with the built-up trade war between the United States and China, caused strong currency depreciation in emerging countries throughout the second quarter. The Argentine peso lost 40%, followed by the Brazilian real with a 20% loss, the Turkish lira with a 15% drop and the Mexican peso with a loss of 10%. In an attempt to contain the depreciation and volatility of the Brazilian real, the Central Bank of Brazil heavily intervened in the foreign exchange market by selling a total of approximately 40 billion U.S. dollars in foreign exchange derivatives throughout May and June. The European economy showed a slight slowing in the level of activity and inflation expanded marginally, mainly due to energy prices. Finally, the Chinese economy continues to sustain growth trends, but at a slightly slower pace, with recent 5/17

6 GFCF and retail indicators at historically low levels. To offset the aggravations in the trade war, the Chinese government has taken some measures to increase liquidity in the economy, such as reducing the reserve rate. Macroeconomic Data 2Q18 1Q18 2Q Real GBP Growth (Q/Previous Q) 0.25% (e) 0.40% 0.2% 0.93% 1.50% (e) Inflation (IPCA - IBGE) quarterly change 1.89% 0.70% 0.22% 0.96% 0.70% Inflation (IPCA - IBGE) annual change 4.39% 2.68% 3.00% 2.95% 4.15% (e) FX (US$/R$) quarterly change 17.25% 0.48% 4.41% 1.50% 12.00% (e) Interest Rate (Selic) 6.5% 6.5% 10.25% 7.0% 6.50% (e) e= expected 6/17

7 Key Indicators Financial Intermediation Result before ALL managerial expenses totaled (R$8.9 million) compared to R$1.3 million in 1Q18, this decline still impacted by (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover and assets without financial compensation. Results 1 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 1H18 1H17 1H18/1H17 Revenues from Loan Operations & Agro Bonds % % % Revenues Securities (w/o Agro Bonds), Derivatives & FX % % % Financial Intermediation Expenses (w/o ALL) 4 (46.1) (43.0) 7.1% (86.4) -46.7% (89.1) (190.4) -53.2% Result from Financial Intermediation before ALL (8.9) 1.3 n.c. 1.8 n.c. (7.6) % Managerial ALL Expense 5 (20.6) (67.1) -69.4% (18.8) 9.2% (87.7) (28.9) 202.9% Result from Financial Intermediation (29.4) (65.8) -55.3% (17.1) 72.4% (95.2) (18.3) n.c. Revenues from Services Rendered and Tariffs % % % Personnel and Administrative Expenses (47.7) (44.7) 6.8% (41.3) 15.7% (92.4) (80.6) 14.7% Personnel Expenses without Guide (4.0) (13.4) -70.0% (12.9) -68.7% (17.4) (26.0) -33.1% Personnel Expenses Guide (19.2) (9.3) 106.8% (8.5) 125.7% (28.4) (16.1) 76.8% Administrative Expenses without Guide (11.5) 124.0% (11.4) 124.2% (8.7) (22.1) -60.5% Administrative Expenses Guide 7 (27.3) (10.5) 159.1% (8.5) 221.8% (37.9) (16.4) 131.2% Other operating income and expenses 8 (1.3) (5.0) -73.3% (7.4) -82.1% (6.3) (8.6) -26.4% Foreign investments hedge effect n.c. 0.0 n.c n.c. Recurring Operating Result (50.1) (90.3) -44.6% (48.7) 2.9% (140.4) (73.3) 91.5% Non-Recurring Operating Expenses n.c. 0.0 n.c n.c. Effect of discontinuance of hedge accounting n.c. 0.0 n.c n.c. Other non-recurring Operating Expenses n.c. 0.0 n.c n.c. Operating Result (50.1) (90.3) -44.6% (48.7) 2.9% (140.4) (73.3) 91.5% Non-operating Profit (8.3) (2.3) 261.9% (2.4) 244.6% (10.6) (3.5) 199.7% Foreign investments hedge effect n.c. 0.0 n.c n.c. Income tax and social contribution % (1.6) n.c (3.3) n.c. Statutory contributions & Profit sharing (6.7) (4.4) 52.1% (2.7) 151.3% (11.2) (6.9) 63.1% Net Profit (Loss) (51.8) (69.1) -25.0% (55.4) -6.4% (120.9) (87.0) 39.1% 1 The financial and operating information presented in this report are based on consolidated financials prepared in millions of Real (local currency), according to Brazilian Central Bank rules, except where otherwise stated. Since 2Q14, Banco BI&P has presented its results through the Managerial Income Statement, which is based on reclassifications of accounting Income Statement and is provided to help analyses. 2 Excluds the effects of (i) recoveries of loans written off, and (ii) discounts granted upon settlement of loans in the period. (iii) the credit risk amount related to securities operations. 3 Excludes the effect of discontinuance of the designation of hedge accounting in 2Q12. This effect is included in Non-Recurring Operating Expenses. 4 Includes expenses related to financial intermediation, such as (i) expenses related to the joint venture C&BI, (ii) commission paid to the distributors of our funding products, especially LCAs and LCIs, which are classified under administrative expenses. Excludes the accounting heading Result of Sale/Transfer of Financial Assets resulting from the shareholders agreement at the time of acquisition of Banco Intercap. This account is considered while calculating the managerial expense with allowance for loan losses. 5 Managerial expense with allowance for loan losses is calculated by adding to the expense with allowance for loan losses, the effects of (i) the recovery of loans written off, (ii) discounts granted upon settlement of loans in the period, (iii) expense with allowance for guarantees issued (LGs & L/Cs), started in December 2014, (iv) the credit risk amount assigned to securities operations and (v) the impacts of other credit assignments in the Income Statement in the accounting heading Result of Sale/Transfer of Financial Assets. In 2Q14 and 2Q15 it also excludes the impacts of the shareholders agreement at the time of acquisition of Banco Intercap in the Income Statement: (i) from the accounting heading Result of Sale/Transfer of Financial Assets; and (ii) from other operating expenses and income. 6 Includes expenses booked under administrative expenses related to income from services rendered. 7 Excludes (i) non-recurring operating expenses, (ii) expenses related to financial intermediation, and (iii) expenses related to income from services rendered. 8 Result of the sum of (i) Other operating income and expenses, (ii) taxes and (iii) Result from affiliated companies. Excludes other operating income and expenses resulting from the shareholders agreement at the time of acquisition of Banco Intercap. n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero). 7/17

8 Key Indicators The consolidated financial and operational information presented in this report is based on BACEN accounting practices and expressed in millions of Brazilian reais, except when otherwise indicated. Assets & Liabilities 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Loan Portfolio % 1, % Expanded Loan Portfolio , % 1, % Cash & Short Term Investments % % Securities and Derivatives % % Securities w/o Agro Sec. & Private Credit Bonds % % Total Assets 2, , % 3, % Total Deposits 1, , % 2, % Open Market % % Foreign Borrowings n.c. 0.0 n.c. Domestic Onlendings % % Shareholders Equity % % Performance 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Free Cash % % NPL 90 days value % % Coverage Index NPL % 89.9% p.p 74.8% 1.8 p.p. Basel Index -12.5% -6.9% -5.6 p.p. 9.3% p.p. Net Interest Margin with Clients 3.84% 3.57% 0.27 p.p. 4.08% p.p. Efficiency Ratio 260.6% 213.1% 47.4 p.p % p.p. Other Information 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Number of Employees % % Banco BI&P employees % % Guide Investimentos and Serglobal employees % % 1 Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and Agro Securities (Agro Credit Rights Certificates (CDCA) and CPR). 2 Excluding Agro Securities (CPRs and Agro Credit Rights Certificates (CDCA)) and Private Credit Bonds (PNs and debentures) for trading. 3 Adjusted for the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda.. n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero). 8/17

9 Operating Performance Financial Intermediation Result before ALL managerial expenses totaled (R$8.9 million) compared to R$1.3 million in 1Q18, this decline still impacted by (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover and assets without financial compensation. Profitability Financial Intermediation 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 1H18 1H17 1H18/1H17 Financial Intermediation Revenues % % % Loan Operations and Agro Bonds % % % Loans, Discount Receivables and Agro Bonds % % % Financing % % % Others n.c. 0.0 n.c % Securities (w/o Agro Bonds) % % % Derivatives (7.1) 1.2 n.c % (5.9) % FX Operations Result % % % Financial Intermediation Expenses (46.1) (43.0) 7.1% (86.4) -46.7% (89.1) (190.4) -53.2% Money Market Funding (46.2) (39.8) 16.0% (82.6) -44.1% (86.0) (184.4) -53.4% Time Deposits (37.8) (29.3) 29.0% (53.4) -29.1% (67.2) (116.2) -42.2% Repurchase Transactions (1.3) (2.1) -39.7% (3.4) -62.5% (3.4) (8.3) -59.1% Interbank Deposits (0.5) (0.5) -0.4% (4.2) -88.7% (1.0) (9.1) -89.4% Agro Bonds (LCA), Real Estate Notes (LCI) & Bank Notes (LF) (6.2) (7.5) -17.8% (21.0) -70.6% (13.6) (49.7) -72.6% Others (0.4) (0.4) 7.8% (0.6) -26.3% (0.8) (1.2) -32.2% Loans, Assignments & Onlending 0.1 (3.2) 102.2% (3.8) 101.9% (3.2) (5.8) -45.9% Foreign Borrowings 0.2 (3.1) 107.7% (3.6) 106.6% (2.8) (5.2) -45.7% Domestic Borrowings & Onlending (0.2) (0.2) -8.5% (0.3) -41.3% (0.3) (0.6) -47.5% Sales operations/transfer of financial assets n.c. (0.0) n.c. 0.0 (0.1) n.c. Gross Result from Financial Intermediation before ALL (8.9) 1.3 n.c. 1.8 n.c. (7.6) % Managerial ALL Expense (20.6) (67.1) -69.4% (18.8) 9.2% (87.7) (28.9) 202.9% Gross Result from Financial Intermediation (29.4) (65.8) -55.3% (17.1) 72.4% (95.2) (18.3) n.c. Net Interest Margin (NIM) Managerial interest margin with clients was 3.57% in 1Q18. Net Interest Margin 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 1H18 1H17 1H18/1H17 A. Result from Financial Intermediation before ALL (8.9) 1.3 n.c. 1.8 n.c. (7.6) % B. Average Interest bearing Assets 1, , % % 1, , % Adjustment for non-remunerated average assets 1 (153.6) (120.2) 27.8% (171.8) -10.6% (136.9) (164.0) -16.5% B.a. Adjusted Average Interest bearing Assets 1, , % % 1, , % Net Interest Margin (Aa/Ba) -2.4% 0.3% -2.7 p.p. 0.3% -2.6 p.p. -0.5% 0.4% -0.9 p.p. Managerial NIM with Clients % 3.57% 0.3 p.p. 4.08% -0.2 p.p. 3.71% 4.41% -0.7 p.p. 1 Repos with equivalent volumes, tenors and rates both in assets and liabilities. ² Adjusted for the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda.. Efficiency Throughout 2Q18, we maintained our strict expenditure control, both personnel and administrative expenses. To this end, the Bank s personnel expenses showed -0.7% quarter-on-quarter, proving the effectiveness of the efforts made. In the same vein, administrative expenses, decreased by 1.6% in relation to 1Q18. It should be stressed that Financial Intermediation Result was impacted by the events detailed in the Operational Performance section. 9/17

10 Efficiency Ratio 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 1H18 1H17 1H18/1H17 Personnel Expenses % % % Contributions and Profit-sharing % % % Administrative Expenses % % % Taxes % % % A. Total Operating Expenses % % % Gross Income Financial Intermediation (w/o ALL) (8.9) % % (7.6) % Income from Services Rendered % % % Other Net Operating Income * 2.0 (1.7) 220.4% (4.6) 143.9% 0.3 (3.6) 109.5% B. Total Operating Income % % % Efficiency Ratio 247.6% 213.1% 34.5 p.p % p.p % 225.6% p.p. * Net of other operating expenses to eliminate the effects of the revenues and costs of the BI&P Cereais operation. Expanded Credit Portfolio The bank s Expanded Credit Portfolio ended 2Q18 at R$862 million, an intentional downsizing of 48.2% in twelve months. Expanded Credit Portfolio by Product Group 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Loans & Financing in Real % % Assignment of Receivables Originated by our Customers % % Trade Finance (ACC/ACE/IMPFIN) % % Other % % Credit Portfolio % 1, % Guarantees Issued (LGs & L/Cs) % % Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) % % Private Credit Bonds (Securities: Debentures) % % Funds in Creditor Rights projects (FIDC) % % Expanded Credit Portfolio 1, , % 1, % 1 The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating assets. ² FIDC: corresponds to the operation that was not being recorded in the credit portfolio until 2Q16. The Agro segment continues to account for a large part of the expanded credit portfolio, since it closed 50.1% of the total in 2Q18, against 48.5% in 2Q17, while the other sectors closed the same period representing 49.9% of the expanded loan portfolio, compared to 51.5% in 2Q17. Reflecting the aforementioned strategy of strengthening our franchise in the agribusiness sector. Expanded Credit Portfolio by Segment Expanded Credit Portfolio by Client Concentration 52% 54% 52% 49% 50% Jun 18 47,3% 42,3% 6,9% 3,5% Mar 18 41,4% 46,7% 8,7% 3,2% 48% 46% 48% 51% 50% Jun 17 30,2% 47,3% 18,3% 4,2% Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Other sectors Agro Portfolio top largest largest Other * The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating asset. In 2Q18, the agro bonds portfolio, classified under marketable securities, totaled R$78.9 million, -36.9% in the quarter and -74.3% in 12 months. The decrease in 12 months is mainly due to the intentional downsizing of the loan portfolio. 10/17

11 R$ million. EARNINGS RELEASE Agricultural Bonds 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Booked under Securities % % Warrants - CDA/WA n.c % Agro Product Certificate - CPR % % Booked under Credit Portfolio - Loans & Financing % % Agro Credit Rights Certificate - CDCA % % Agricultural Bonds % % Expanded Credit Portfolio by Region Expanded Credit Portfolio by Economic Sector Agriculture 38,4% Southeast 61% South 4% North 0% Northeast 6% Real Estate Ethanol & Sugar Textile, Leather and Apparel Food & Beverage Livestock 15,5% 12,5% 8,9% 6,8% 4,7% Midwest 29% Individuals Machinery and Equipments 3,5% 2,6% Automotive 1,8% Other industries (% lower than 1.0%) 5,5% Quality of Expanded Credit Portfolio During the course of 2Q18 we will continue to operate in specific niches of the credit market, with a strong focus on agribusiness and on operations that generate cross selling with investment banking transactions. Even though we are maintaining our conservative approach in relation to our credit policy, with the reduction of the portfolio in the higher risk segment in order to reduce payment delays and defaults, we plan to resume the expansion of our loan portfolio in the coming quarters as we believe in an improvement of the Brazilian macroeconomic environment and the continued strength of the agribusiness sector, always giving priority to good quality and short duration loans. Expanded Credit Portfolio by Rating 314 In 2Q18, R$121.6 mm rated between E-H, with covered ratio of 89.5% AA A B C D E F G H 11/17

12 The default rate on loans overdue more than 90 days (NPL 90 days), totaled R$62.9 million in 2Q18, excluding operations related to Ceagro Agrícola case, as against R$47.7 million in 1Q18, with provisions covering 77% of this balance. The increase in both quarterly and annual comparison is due to the stricter renegotiation processes, given the worsening macroeconomic situation and the Bank s conservative approach. Funding Funding totaled R$2.0 billion in June 2018, -4.6% in the quarter and -27.3% in twelve months, in line with the intentional reduction of our portfolio. Our cash position remained comfortable, thanks to our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years and by the end of 2Q18, we had a depositor base of more than 32,200 members, compared to 27,100 at the end of 2Q17, an increase of 19%. Funding 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17 Total Deposits 1, , % 2, % Time Deposits 1, , % 1, % Insured Time Deposits (DPGE) % % DPGE I % % DPGE II % % Agro Notes (LCA) % % Real Estate Notes (LCI) % % Bank Notes (LF) n.c. 5.1 n.c. Interbank Deposits % % Demand Deposits % % Domestic Onlending % % Foreign Borrowings n.c. 0.0 n.c. Trade Finance n.c. 0.0 n.c. Others n.c. 0.0 n.c. Total Funding 1, , % 2, % Interbank & Demand Deposits 2% BNDES Onlending 0% Bank & Real Estate Notes 3% By Type By Investor By Maturity Agro Bonds 16% Time Deposits 78% DPGE I* 1% National Banks 2% Enterprises 3% Institutional Investors 11% Average term of deposits is 758 days from issuance (648 days in June 2017) and 444 days from maturity (321 days in June 2017). Average Term in days Type of Deposit from issuance to maturity 1 Interbank Deposit Time Deposits Time Deposits with Special Guarantee (DPGE) Agro Notes (LCA) Real Estate Letters of Credit (LCI) Bank Notes (LF) 0 0 Portfolio of Deposits From June 30, Volume-weighted average. Brokers 73% Other 1% Individuals 10% Demand 1% +360 days 54% Up to 90 days 16% 91 to 180 days 12% 181 to 360 days 17% 12/17

13 R$ million. EARNINGS RELEASE Free Cash On June 30, 2018 free cash totaled R$801.5 million, decreasing by 4.0% in the quarter and by 13.2% from June 30, 2017, corresponding however to 40.7% of total deposits, versus 34.2% at the end of 2Q17 and 5.3 time shareholders' equity. The calculation considers cash, short-term interbank investments and securities, less funds raised in the open market and debt securities classified under marketable securities, comprising rural product certificates (CPR), agribusiness deposit certificates and warrants (CDA/WA), debentures and promissory notes (NP). Capital Adequacy Jun 17 Mar 18 Jun 18 The Basel Accord provides for a minimum equity percentage that all banks must abide, weighted by the risk incurred during operations. For this purpose, the Brazilian Central Bank determined that all banks installed in the country must comply with a required minimum equity percentage of 8.625%, in force for the year of 2018, calculated based on the rules established by the Basel Accord III, thus ensuring greater safety for the Brazilian financial system despite fluctuations in the economic conditions. In addition, the Brazilian Central Bank imposed an Additional Main Capital, which currently corresponds to a percentage of 1.875% of the assets weighted by the risk. On August 8, 2018, the Central Bank board has approved the acquisition Guide s control by the Fosun Group. The transaction must now be approved by the National Monetary Council and by a Presidential Decree, which management expects to obtain in the next 30 days. The Guide transaction will strengthen the bank s capital base once the deal is closed. In addition, the bank's management is actively pursuing new alternatives to further strengthen its capital base. Basel Index 2Q18 1Q18 2Q18/1Q18 2Q17 2Q18/2Q17-12,5% -6,9% -5,6 p.p. 9,3% -21,7 p.p. Risk Ratings Agency Classification Observation Last Report RiskBank RiskBank Index: 7.13 Under observation Disclosure: Good Capital Markets Total Shares and Free Float Number of shares as Type Corporate Capital Controlling Group Management Treasury Free Float % Common 115,033,148 76,548,441 4,180,476-34,304, % Preferred 37,494,103 7,080,684 5,074, ,396 24,795, % TOTAL 152,527,251 83,629,125 9,254, ,396 59,099, % Stock Option Plan The following Stock Option Plans, approved for the Company s executive officers and managers, as well as individuals who provide services to the Company, had the following balances on June : Stock Option Plan Date of Approval Grace Period Term for Exercise Quantity Granted Exercised Extinct Not Exercised I Mar Three years Five years 618, ,195 - II Apr Three years Five years 1,840,584-1,840,584 - III Apr Five years Seven years 1,850, ,024 1,699,762 IV Apr Up to five years Five years 867, , ,426 5,176,990-3,270,802 1,906,188 13/17

14 The aforementioned Stock Options Plans are filed in the IPE system of the Securities and Exchange Commission of Brazil (CVM) and are also available in the Company s IR website. Remuneration to Shareholder During 2Q18 the Bank neither provisioned nor paid interest on equity, calculated based on the Long-Term Interest Rate (TJLP) and towards the minimum dividend for fiscal year The Board of Directors will, by the end of the year, study the possibility of early payment of interest on equity after considering the results and the tax efficiency of such payment. Share Performance The preferred shares of Banco BI&P (IDVL4), listed in the Level 2 Corporate Governance segment of BM&FBovespa. closed the quarter at R$0.52, for market cap of R$79 million including the shares existing on June 2018 and excluding treasury stock. The price of IDVL4 shares dropped 48% in the quarter and 66% in the 12 months ended June In comparison, the Bovespa Index (Ibovespa) rose 12% in the quarter and 31% in relation to June At the end of 2Q18, the price/book value (P/BV) ratio was Share Price evolution in the last 12 months Liquidity and Trading The preferred shares of BI&P (IDVL4) were traded in 100.0% of the sessions in the quarter and 98.0% of the 246 sessions in the 12 months ended in June The volume traded on the spot market in the quarter was R$3.0 million. involving 3,914 thousands IDVL4 shares in 2,385 trades. Between the close of 2Q17 and 2Q18 the volume of IDVL4 shares traded on the spot market was R$24.9 million involving around 17.4 million preferred shares in 11,671 trades. Shareholder Base Position as QTY TYPE OF SHAREHOLDER IDVL3 % IDVL4 % TOTAL % 6 Controlling Group 76,548, % 7,080, % 83,629, % 4 Management 4,180, % 5,074, % 9,254, % - Treasury 0 0.0% 543, % 543, % 17 National Institutional Investors 1,201, % 1,054, % 2,255, % 4 Foreign Investors 12,190, % 17,063, % 29,254, % 7 Corporates % 420, % 420, % 826 Individuals 20,912, % 6,256, % 27,169, % 864 TOTAL 115,033, % 37,494, % 152,527, % 14/17

15 Balance Sheet CONSOLIDATED R$ thousand ASSETS 6/30/2018 3/31/2018 6/30/2017 Current 1,491,008 1,593,941 2,324,327 Cash 18,007 19,742 42,295 Short-term interbank investments 442, , ,889 Open market investments 413, , ,939 Interbank deposits 29,202 28, ,950 Securities and derivative financial instruments 666, , ,551 Own portfolio 535, , ,587 Subject to repurchase agreements 12,440 12,599 11,374 Linked to guarantees 117, , ,861 Derivative financial instruments Interbank accounts Payment and receipts pending settlement Restricted credits - Deposits with the Brazilian Central Bank Agreements Loans 192, , ,234 Loans - private sector 201, , ,166 Loans - assignments - - 3,636 (-) Allowance for loan losses (8,494) (11,929) (11,568) Other receivables 165, , ,415 Foreign exchange portfolio 59,912 56,700 86,940 Income receivables 3,110 2,543 1,241 Negotiation and intermediation of securities 56,371 77,594 70,146 Sundry 46,537 66,659 27,431 (-) Allowance for loan losses (372) (21,161) (2,799) Other assets 5,159 2,958 4,600 Other receivables and assets not for own use 1, ,722 Prepaid expenses 3,483 2,303 1,878 Long term 990,144 1,047,675 1,125,761 Marketable securities and derivative financial instruments 36,666 35,561 40,452 Own portfolio ,381 24,327 Subject to repurchase agreements 35,905 20,180 16,125 Interbank Accounts 2,754 2,712 3,182 Pledged Deposits - Caixa Economica Federal 2,754 2,712 3,182 Loans 132, , ,786 Loans - private sector 187, , ,433 (-) Allowance for loan losses (55,166) (50,532) (38,647) Other receivables 587, , ,127 Trading and Intermediation of Securities Foreign exchange portfolio - - 3,290 Income receivables 1,144 2,966 3,081 Sundry 658, , ,325 (-) Allowance for loan losses (73,037) (39,367) (16,997) Other assets 231, , ,214 Permanent Assets 65,056 62,115 70,323 Investments 18,245 17,868 23,260 ParticSubsidiaries and Affiliates 16,524 16,147 21,539 Other investments 1,721 1,721 1,721 Property and equipment 3,708 3,977 5,017 Other property and equipment 25,251 25,262 25,540 (-) Accumulated depreciation (21,543) (21,285) (20,523) Intangible 43,103 40,270 42,046 Goodwill 28,702 28,702 28,702 Other intangible assets 46,965 41,552 36,863 (-) Accumulated amortization (32,564) (29,984) (23,519) TOTAL ASSETS 2,546,208 2,703,731 3,520,411 15/17

16 CONSOLIDATED R$ thousand LIABILITIES 6/30/2018 3/31/2018 6/30/2017 Current 1,246,498 1,397,161 2,201,135 Deposits 595, ,129 1,239,877 Cash deposits 12,751 14,032 13,516 Interbank deposits 29,497 29, ,039 Time deposits 552, ,079 1,061,322 Funds obtained in the open market 171, , ,482 Own portfolio 48,029 32,559 27,034 Third party portfolio 123, , ,448 Funds from securities issued or accepted 304, , ,728 Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 304, , ,728 Interbank accounts Receipts and payment pending settlement Interdepartamental accounts 1,917 3,213 1,519 Third party funds in transit 1,917 3,213 1,519 Onlendings 1,770 3,017 11,682 BNDES ,861 FINAME 1,481 2,187 8,821 Other liabilities 172, , ,450 Collection and payment of taxes and similar charges Foreign exchange portfolio 3,552 9,625 10,163 Taxes and social security contributions 5,980 5,249 7,088 Social and statutory liabilities 11,295 4,552 5,925 Negotiation and intermediation securities 131, , ,041 Derivative financial instruments 3, ,481 Sundry 16,048 13,555 14,704 Long Term 1,146,965 1,099, ,982 Deposits 1,013, , ,337 Time deposits 1,013, , ,337 Funds from securities issued or accepted 54,898 92, ,086 Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 54,898 92, ,086 Onlending operations - Governmental Bureaus 7,774 8,030 9,167 Federal Treasure 4,040 3,962 3,679 BNDES FINAME 3,544 3,878 5,019 Other Institutions Other liabilities 70,442 67,588 61,392 Taxes and social security contributions Derivative financial instrument Sundry 70,021 67,220 61,322 Future results 1,595 3,792 4,807 Shareholders' Equity 151, , ,486 Capital 849, , ,843 Capital Reserve 35,960 35,960 35,960 (-) Treasury stock (4,283) (4,283) (4,283) Asset valuation Adjustment (105) (200) (227) Accumulated Profit / (Loss) (731,394) (679,573) (474,204) Minority Interest 1,129 1,121 1,397 TOTAL LIABILITIES 2,546,208 2,703,731 3,520,411 Income Statement Consolidated 16/17

17 R$ thousand INCOME STATEMENT CONSOLIDATED 2Q18 1Q18 2Q17 1H18 1H17 Income from Financial Intermediation 36,906 47,276 86,824 84, ,897 Loan operations 15,601 13,625 29,771 29,226 67,785 Income from securities 18,497 27,947 42,777 46, ,084 Income from derivative financial instruments (7,099) 1,238 9,095 (5,861) 16,250 Income from foreign exchange transactions 9,907 4,466 5,181 14,373 9,778 Expenses from Financial Intermediaton (65,551) (111,959) (103,876) (177,510) (216,579) Money market funding (45,750) (39,411) (81,995) (85,161) (183,259) Loans, assignments and onlendings 72 (3,231) (3,840) (3,159) (5,842) Sales operations/transfer of financial assets - - (7,989) - (8,065) Allowance for loan losses (19,873) (69,317) (10,052) (89,190) (19,413) Gross Profit from Financial Instruments (28,645) (64,684) (17,052) (93,328) (17,682) Other Operating Income (Expense) (21,418) (25,629) (31,615) (47,047) (55,616) Income from services rendered 33,898 30,796 20,141 64,694 39,929 Income from tariffs Personnel expenses (23,185) (22,656) (21,346) (45,841) (42,092) Other administrative expenses (30,523) (28,152) (23,609) (58,675) (45,629) Taxes (3,965) (3,708) (2,551) (7,673) (5,421) ResEquity in results of subsidiaries (246) 1, Other operating income 7,198 19,343 21,558 26, ,045 Other operating expense (5,534) (21,769) (25,666) (27,303) (150,133) Operating Profit (50,063) (90,313) (48,667) (140,375) (73,298) Non-Operating Profit (8,332) (2,302) (2,418) (10,634) (3,548) Earnings before taxes and profit-sharing (58,395) (92,615) (51,085) (151,009) (76,846) Income tax and social contribution 13,330 27,924 (1,593) 41,254 (3,259) Income tax (449) (596) (626) (1,045) (1,380) Social contribution (347) (449) (444) (796) (952) Deferred fiscal assets 14,126 28,969 (523) 43,095 (927) Statutory Contributions & Profit Sharing (6,749) (4,436) (2,686) (11,185) (6,858) Net Profit for the Period (51,814) (69,127) (55,364) (120,940) (86,963) 17/17