EARNINGS RELEASE. 1 st Quarter Highlights 1/17

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1 We continue pursue the strategy to (i) strengthen our agribusiness franchise and (ii) grow the brokerage and wealth management branch, Guide Investimentos. The company s management has kept a conservative stance by maintaining a high Free Cash level, credit portfolio with short duration and discipline in provisioning. The expanded credit portfolio showed an intentional decrease of 10.7% in the annual comparison, closing the quarter at R$1.9 billion, with 74.9% of our clients from the Corporate segment and 24.3% of Emerging Companies (compared to 64.8% and 34.0% in 1Q16, respectively), reflecting a successful portfolio reduction portfolio in the segment we believe to have higher risk. As in 1Q16, we maintained the portfolio average duration in 10 months. The quality of our expanded credit portfolio also stands out. In March 17, AA-B credits totaled 83% of our portfolio and our E-H portfolio (3.9% of the portfolio) coverage level was 94%. Free Cash reached its highest historical level and at the end of the quarter had totaled R$1,199 million, representing 39.2% of total deposits when compared to 36.2% at the end of 1Q16, which is a result of the high liquidity strategy and growing diversification of our funding sources in recent years. Following approval by the Central Bank in the last quarter of last year, our financial planning arm, Guide Life, has started operating in franchise sales. Its strategic focus is captivating of franchisers to accelerate the sales. The new platform includes the distribution of long-term financial solutions, such as life insurance and private pension plans. Guide s overall assets under management grew 34% over 1Q16 and we expect further growth with the strengthening of our digital strategy. Highlights The Bank s Expanded Credit Portfolio closed the quarter at R$1.9 billion, with a 10.7% intentional retraction year over year, despite a still very conservative credit stance adopted by the bank, constantly focusing on higher quality credit. We pointed out that at the end of this quarter, the Corporate segment (revenues between R$500 million and R$3 billion) covered 74.9% of the expanded credit portfolio, compared to 64.8% in 1Q16, while the Emerging Companies segment (revenues between R$200 million and R$500 million) ended the period representing 24.3% of the expanded credit portfolio (34.0% in 1Q16). This reflects the successful downsizing of the portfolio in the high-risk segment to mitigate late payments and defaults. As in 1Q16, we maintained the portfolio average duration in 10 months. The quality of our expanded credit portfolio also stands out. In March 2017, AA-B credits totaled 83% of the portfolio and E-H portfolio (3.9% of the portfolio) coverage level was 94.1%. Moreover, the 90-day non-performing index, excluding operations related to Ceagro Agrícola case, totaled R$55.2 million in 1Q17, compared to R$61.9 million in 4Q16, with provisions that cover 94% of this amount. The ALL (managerial) expenses, excluding operations related to Ceagro Agrícola case and those related to one single client of the bank's old portfolio (loans granted before April/2011) mentioned in 4Q16, were 1.31% p.a. over the last 12 months, compared to 1.77% p.a. in 4Q16. At the end of 1Q17, free cash totaled R$1,199 million, corresponding to 39.2% of total deposits, compared to 36.2% at the end of 1Q16, reaching the highest historical level. 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. By the end of 1Q17, we were distributing our funding products directly and through Guide and agreements with 71 brokerage firms, distributors and independent advisors, maintaining a base of more than 27,800 investors, compared to 21,900 by late 1Q16 up 27% in the period. Managerial administrative and personnel expenses totaled R$23.8 million in 1Q17, compared to R$26.1 million in 4Q16 and R$22.5 million in 1Q16, a 8.8% reduction compared to 4Q16 and up 5.8% compared to 1Q16. The advance in personnel expenses was basically due to the effects of labor disputes provision, while the Bank s administrative expenses grew mostly due to stocking of coffee bags (which represents incremental revenue in the cash & carry operations of this commodity). Consolidated managerial revenues from services rendered and tariffs¹ from the Bank and Guide amounted R$17.0 million in the quarter, up 24.3% year-over-year. It is important to note that Guide Investimentos maintained its high share of this revenues, 68.3% vs. 67.8% in 1Q16, since the investments we made in that platform have already started to yield positive results. At Guide Investimentos, the wealth management/digital segment showed significant growth in the volume of assets under management: R$5.9 billion, up 34.1% compared to 1Q16. The strong performance of business attraction was driven mainly by organic growth, contracting with independent investment brokers, and also through our efforts towards customer service digital channel, customer segmentation and new business management model. The first quarter was also marked by the start of the digital marketing campaign, reaching thousands of new investors. The Operating Result ended the quarter with R$24.6 million, which represents an improvement in both quarter-on quarter terms and year-onyear terms, when totaled R$35.6 million and R$37.8 million, respectively. This improvement is basically due to lower ALL (managerial) expenses in the period, reflecting the quality of our expanded credit portfolio, as previously stated. The quarter s Net Result was negative in R$31.6 million, reflecting (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover, which presented its highest rate in March 2017, and (iii) the participation of revenues from the IB activity, structured operations and clients, which remain below expectations. Regarding to the PTO announced in March 10, 2016, we are following the regular procedures and schedule of approvals from regulatory agencies, stock exchange and the CVM. 1 Gross income from services rendered from commissions paid to independent agents, classified under administrative expenses. IDVL4: R$1.50 per share Closing: May 12, 2017 Free float: Market cap: R$228.0 millions Price/Book Value: /17

2 Summary Message from the Management... 3 Macroeconomic Scenario... 5 Key Indicators... 6 Operating Performance... 8 Expanded Credit Portfolio... 9 Funding Free Cash Capital Adequacy Credit Ratings Capital Markets Balance Sheet Income Statement /17

3 Message from the Management During the first quarter of 2017, when faced with this macroeconomic scenario that demands caution, the management has maintained a conservative stance, maintaining a high free cash level to its highest historical level, a shorter duration in our credit portfolio and rigor in provisioning, acting on specific niches of the credit market, particularly the agro sector, while boosting the growth of our brokerage and wealth management branch, Guide Investimentos. The Bank s Expanded Credit Portfolio closed the quarter at R$1.9 billion, with a 10.7% intentional retraction year over year, despite a still very conservative credit stance adopted by the bank, constantly focusing on higher quality credit. We pointed out that at the end of this quarter, the Corporate segment (revenues between R$500 million and R$3 billion) covered 74.9% of the expanded credit portfolio, compared to 64.8% in 1Q16, while the Emerging Companies segment (revenues between R$200 million and R$500 million) ended the period representing 24.3% of the expanded credit portfolio (34.0% in 1Q16). This reflects the successful downsizing of the portfolio in the high-risk segment to mitigate late payments and defaults. The quality of our expanded credit portfolio also stands out. In March 2017, AA-B credits totaled 83% of the portfolio and E-H portfolio (3.9% of the portfolio) coverage level was 94.1%. Moreover, the 90-day non-performing index, excluding operations related to Ceagro Agrícola case, totaled R$55.2 million in 1Q17, compared to R$61.9 million in 4Q16, with provisions that cover 94% of this amount. The ALL (managerial) expenses, excluding operations related to Ceagro Agrícola case and those related to one single client of the bank's old portfolio (loans granted before April/2011) mentioned in 4Q16, were 1.31% p.a. over the last 12 months, compared to 1.77% p.a. in 4Q16. It is also important to mention that the management of assets and liabilities reflects long-term profile of our funding sources versus the shorter-term profile of our assets, with 71% of our expanded credit portfolio s operations expiring within the next 12 months. It is also relevant to highlight that, the bank has managed, through an extremely qualified team with more than 13 years experience operating in the sector, to further strengthen our franchise in the agribusiness sector, consolidating our position as an innovative bank in this segment, both in terms of financing as well as in creative products, capable of always providing well-structured and secure transactions for the bank and our client base. Currently, we are focused on the coffee, soy, corn and sugar markets, basically in the regions of Paraná, the Southeast and the Midwest. As previously mentioned, we assured a comfortable cash position due to our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years. By the end of 4Q16, we distributed our funding products directly and through Guide and agreements with 71 brokerage firms, distributors and independent advisors, maintaining a base of more than 27,800 investors, compared to 21,900 by late 1Q16 up 27% in the period. Financial Intermediation Result before ALL managerial expenses totaled R$10.0 million, compared to R$15.7 million in 4Q16, this decline is basically due to (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover, which presented its highest rate in March Consolidated managerial revenues from services rendered and tariffs¹ from the Bank and Guide amounted R$17.0 million in the quarter, up 24.3% year-over-year. It is important to note that Guide Investimentos maintained 3/17

4 its high share of this revenues, 68.3% vs. 67.8% in 1Q16, since the investments we made in that platform have already started to yield positive results. At Guide Investimentos, the wealth management/digital segment showed significant growth in the volume of assets under management: R$5.9 billion, up 34.1% compared to 1Q16. The strong performance of business attraction was driven mainly by organic growth, contracting with independent investment brokers, and also through our efforts towards customer service digital channel, customer segmentation and new business management model. The first quarter was also marked by the start of the digital marketing campaign, reaching thousands of new investors. The Institutional segment continues to be a continuous and reliable source of revenue, with prominent specialized desks recognized as major providers of liquidity for the main players in the market. Even with the relative decrease in the number of trades, a seasonal trend, we had as highlights the Coffee desk, again in first place in merchandise ranking and with more than 30% of market share, and also BDRs Arbitrage board, presenting higher rates of revenue than last semester. Following approval by the Central Bank in the last quarter of last year, our financial planning arm, Guide Life, has started operating in franchise sales. Its strategic focus is captivating of franchisers to accelerate the sales. The new platform includes the distribution of long-term financial solutions, such as life insurance and private pension plans With regard to the bank's managerial expenses, the personnel expenses decreased by 11.7% in the quarter and increased by 4.9% year-on-year, basically due to the effects of labor disputes provision. The Headcount at BI&P remained practically stable in the recent quarters, showing a reduction of 1.0% compared to 4Q16 and 4.3% compared to 1Q16. The administrative expenses, in its turn, decreased by 5.0% in relation to 4Q16 and an increase of 7.0% compared to 1Q16, mainly due to stocking of coffee bags (which represents incremental revenue in the cash & carry operations of this commodity), due to the Management s commitment to continuous cost cutting efforts. With regard to Guide Investimentos, personnel expenses presented 3.4% increase in the quarter and 24.0% compared to 1Q16, while administrative expenses remained practically stable in the quarter and increased by 28.5% in the same periods as a result of investments made in the platform on account of its current growth phase. The Operating Result ended the quarter with R$24.6 million, which represents an improvement in both quarteron quarter terms and year-on-year terms, when totaled R$35.6 million and R$37.8 million, respectively. This improvement is basically due to lower ALL (managerial) expenses in the period, reflecting the quality of our expanded credit portfolio, as previously stated. The quarter s Net Result was negative in R$31.6 million, reflecting (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover, which presented its highest rate in March 2017, and (iii) the participation of revenues from the IB activity, structured operations and clients, which remain below expectations. Regarding to the PTO announced in March 10, 2016, we are following the regular procedures and schedule of approvals from regulatory agencies, stock exchange and the CVM. 1 Adjusted to the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda. 2 Gross income from services rendered from commissions paid to independent agents, classified under administrative expenses. 4/17

5 Macroeconomic Scenario In the political arena, the first quarter of 2017 was marked by the government's effort to draft the two main reforms (social security and labor). Negotiations are expected to extend throughout the second quarter and are expected to be approved by the end of the year. It is important to note that the approval of the reforms, particularly the social security reform, is crucial for economic recovery. As for the economic aspect, activity data showed a slight positive bias earlier this year. Industrial production shrank by 2.1% in the first quarter of 2017, slowing down relative to the 1.30% appreciation in the previous quarter. Despite the weak quarterly data, overall quarterly data are positive because, with the exception of capital assets which recorded a fall of 2.8%, the categories presented expansion (high of 1.3% to 1.6% for intermediate assets and consumer goods). The positive highlight in the period should be the Agribusiness sector due to projected appreciation for soybean crops (16%) and corn crop (47%) compared to Thus, the agribusiness contribution, combined with the stabilization of services, indicates a more benign scenario for growth. According to the Focus Report, the GDP growth expectation is 0.47% in 2017 and 2.5% in In this scenario, the level of confidence recovered compared to the end of the previous year. The industry confidence indicator, measured by FGV, rose to 54 points in March 2017, compared with 48.0 points at the end of 4Q16. Despite the more benign scenario for the economy, the labor market continues to deteriorate and shows no signs of improving in the short term. The unemployment rate continued to rise, reaching 13.7% in 1Q17, according to the National Household Sample Survey (PNAD), compared to 12.6% in 4Q16. As for inflation, the sharp price deceleration at the beginning of the year indicates that the IPCA (Extended Consumer Price Index) is expected to close 2017 below the 4.5% target. According to the Focus Report, the projections for inflation are 4.10% in 2017 and 4.5% in In the first quarter, the IPCA increased 0.96%, up from 0.74% in the previous quarter, but down from 2.62% in the same period of last year. The twelve-month accrual closed the first quarter with a high of 4.57%, slowing down from the 6.29% of the previous quarter. Amidst this scenario, the Central Bank of Brazil (BCB) began lowering the basic interest rate, making two 75-point base cuts to the SELIC, which closed March at 12.25% p.a. According to the Focus Report, economists project that SELIC rate should end the year at 8.5% per annum. With respect to the National Financial System, total stock of credit operations reached R$3.07 trillion in March, down 0.93% compared to the fourth quarter of last year. Average term of loans went from in December 2016 to 112 in March Credit as a percentage of GDP ended 1Q17 at 48.6%, below the 49.3% registered in 4Q16. Individual default in free credit operations declined to 5.9% in March 2017, compared to 6.0% in December On the other hand, the default rate of legal entities increased to 5.6% in March 2017, compared to 5.2% in December of the previous year. The outlook is slowing worsening of indicators due to the fall in interest rates and the new revolving credit for individuals. In the external scenario, the U.S. economy is still showing clear signs of recovery. As a result, the U.S. Fed once again raised interest rates in the range of 0.75% to 1.0%, indicating two more hikes throughout The prospect of improvement in the U.S. economy is also tied to the promises made by President Donald Trump. However, in his first months in Office, Donald Trump didn't deliver the important measures promised during the election campaign, such as tax reform and increased spending on infrastructure. In Europe, the economy continues to surprise positively, while inflation remains at low levels. Therefore, the European Central Bank (ECB) kept its monetary policy unchanged. In China, the growth during the first quarter of 2017 was higher than expected. Macroeconomic Data 1Q17 4Q16 1Q (e) Real GBP Growth (Q/Previous Q) 1.4% (e) -0.9% -0.6% -3.6% 0.47% Inflation (IPCA - IBGE) quarterly change 0.96% 0.74% 2.62% 0.74% 0.96% Inflation (IPCA - IBGE) annual change 4.57% 6.29% 9.39% 8.48% 4.10% FX (US$/R$) quarterly change -2.78% 0.40% -8.86% % -0.28% Interest Rate (Selic) 12.25% 13.75% 14.25% 13.75% 8.5% e= expected 5/17

6 Key Indicators Financial Intermediation Result before ALL managerial expenses totaled R$10.0 million, compared to R$15.7 million in 4Q16, this decline is basically due to (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover, which presented its highest rate in March The Operating Result ended the quarter with R$24,6 million, which represents an improvement in both quarteron quarter terms and year-on-year terms, when totaled R$35,6 million and R$37,8 million, respectively. This improvement is basically due to lower ALL (managerial) expenses in the period, reflecting the quality of our expanded credit portfolio, as previously stated. Results 1 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Revenues from Loan Operations & Agro Bonds % % Revenues Securities (w/o Agro Bonds), Derivatives & FX % % Financial Intermediation Expenses (w/o ALL) 4 (104.0) (115.9) -10.3% (106.0) -1.9% Result from Financial Intermediation before ALL % % Managerial ALL Expense 5 (11.2) (27.6) -59.3% (22.5) -50.1% Result from Financial Intermediation (1.2) (11.9) -89.7% % Revenues from Services Rendered and Tariffs % % Personnel and Administrative Expenses (39.3) (41.3) -4.9% (34.8) 13.0% Personnel Expenses without Guide (13.2) (14.9) -11.7% (12.5) 4.9% Personnel Expenses Guide (7.6) (7.3) 3.4% (6.1) 24.0% Administrative Expenses without Guide 7 (10.7) (11.2) -5.0% (10.0) 7.0% Administrative Expenses Guide 7 (7.9) (7.8) 0.4% (6.1) 28.5% Other operating income and expenses 8 (1.1) (3.5) -67.7% (4.6) -75.2% Foreign investments hedge effect n.c. (12.1) n.c. Recurring Operating Result (24.6) (34.6) -28.7% (36.5) -32.4% Non-Recurring Operating Expenses 0.0 (1.0) n.c. (1.3) n.c. Effect of discontinuance of hedge accounting n.c. (0.2) n.c. Other non-recurring Operating Expenses 0.0 (1.2) n.c. (1.1) n.c. Operating Result (24.6) (35.6) -30.8% (37.8) -34.8% Non-operating Profit (1.1) (4.9) -77.2% (1.8) -38.8% Foreign investments hedge effect n.c n.c. Income tax and social contribution (1.7) % % Statutory contributions & Profit sharing (4.2) (3.9) 7.4% (4.2) -1.6% Net Profit (Loss) (31.6) (28.8) 9.6% (23.5) 34.3% 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). 6/17

7 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. In line with recent quarters filings, in 1Q17, NPL and Margin with client s indicators were adjusted to the specific and non-recurring event related to Ceagro operations, as reported in the 2Q15 earnings release. Assets & Liabilities 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Loan Portfolio 1, , % 1, % Expanded Loan Portfolio 1 1, , % 2, % Cash & Short Term Investments % % Securities and Derivatives 1, , % 1, % Securities w/o Agro Sec. & Private Credit Bonds % % Total Assets 3, , % 3, % Total Deposits 3, , % 2, % Open Market % % Foreign Borrowings n.c n.c. Domestic Onlendings % % Shareholders Equity % % Performance 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Free Cash 1, , % % NPL 90 days value % % Basel Index 10.9% 11.2% -0.3 p.p. 15.3% -4.4 p.p. Net Interest Margin with Clients % 4.61% 0.13 p.p. 4.24% 0.50 p.p. Efficiency Ratio w/o Guide Investimentos 239.3% 182.8% 56.5 p.p % p.p. Other Information 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Number of Employees % % Banco BI&P employees³ % % 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). 7/17

8 Operating Performance Financial Intermediation Result before ALL managerial expenses totaled R$10.0 million, compared to R$15.7 million in 4Q16, this decline is basically due to (i) the voluntary reduction policy of the credit portfolio, (ii) the cost of cash carryover, which presented its highest rate in March The quality of our expanded credit portfolio also stands out. In March 2017, AA-B credits totaled 83% of the portfolio and E-H portfolio (3.9% of the portfolio) coverage level was 94.1%. Moreover, the 90-day non-performing index, excluding operations related to Ceagro Agrícola case, totaled R$55.2 million in 1Q17, compared to R$61.9 million in 4Q16, with provisions that cover 94% of this amount. The ALL (managerial) expenses, excluding operations related to Ceagro Agrícola case and those related to one single client of the bank's old portfolio (loans granted before April/2011) mentioned in 4Q16, were 1.31% p.a. over the last 12 months, compared to 1.77% p.a. in 4Q16. Profitability Financial Intermediation 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Financial Intermediation Revenues % % Loan Operations and Agro Bonds % % Loans, Discount Receivables and Agro Bonds % % Financing % % Others n.c. 0.1 n.c. Securities (w/o Agro Bonds) % % Derivatives % % FX Operations Result % % Financial Intermediation Expenses (104.0) (115.9) -10.3% (106.0) -1.9% Money Market Funding (101.9) (111.6) -8.7% (100.5) 1.4% Time Deposits (62.8) (63.8) -1.6% (65.8) -4.5% Repurchase Transactions (4.9) (9.9) -50.9% (4.3) 12.8% Interbank Deposits (4.9) (3.0) 63.3% 0.0 n.c. Agro Bonds (LCA), Real Estate Notes (LCI) & Bank Notes (LF) (28.7) (34.3) -16.2% (29.9) -4.1% Others (0.6) (0.6) 9.6% (0.5) 25.7% Loans, Assignments & Onlending (2.0) (4.3) -53.5% (5.3) -62.4% Foreign Borrowings (1.6) (3.8) -57.1% (3.7) -55.9% Domestic Borrowings & Onlending (0.4) (0.5) -26.9% (1.6) -77.2% Sales operations/transfer of financial assets (0.1) (0.1) 0.2% (0.1) -47.5% Gross Result from Financial Intermediation before ALL % % Managerial ALL Expense (11.2) (27.6) -59.3% (22.5) -50.1% Gross Result from Financial Intermediation (1.2) (11.9) -89.7% % Net Interest Margin (NIM) Managerial interest margin with clients was 4.74% in 1Q17, compared to 4.61% in 4Q16. Net Interest Margin 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 A. Result from Financial Intermediation before ALL % % B. Average Interest bearing Assets 3, , % 2, % Adjustment for non-remunerated average assets 1 (156.3) (330.3) -52.7% (133.3) 17.2% B.a. Adjusted Average Interest bearing Assets 2, , % 2, % Net Interest Margin (Aa/Ba) 1.4% 2.3% -0.9 p.p. 3.5% -2.1 p.p. Managerial NIM with Clients % 4.61% 0.1 p.p. 4.24% 0.5 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.. 8/17

9 Efficiency Throughout 1Q17, we maintained our strict expenditure control, both for personnel and administrative expenses. To this end, the personnel expenses showed 11.7% quarter-on-quarter decline, proving the effectiveness of the efforts made. The Bank s administrative expenses had a 5.0% cutback. It should be stressed that Financial Intermediation Result was impacted by the events detailed in the Operational Performance section. Efficiency Ratio w/o Guide Investimentos 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Personnel Expenses % % Contributions and Profit-sharing % % Administrative Expenses % % Taxes % % A. Total Operating Expenses % % Gross Income Financial Intermediation (w/o ALL) % % Income from Services Rendered % % Other Net Operating Income * % (1.4) 150.5% B. Total Operating Income % % Efficiency Ratio (A/B) 239.3% 182.7% 56.7 p.p % 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 1Q17 at R$1.9 billion, an intentional downsizing of 10.7% in twelve months, despite our more cautious approach towards generating new assets, always focusing on better quality credits. Expanded Credit Portfolio by Product Group 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Loans & Financing in Real , % 1, % Assignment of Receivables Originated by our Customers % % Trade Finance (ACC/ACE/IMPFIN) % % Other % % Credit Portfolio 1, , % 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, , % 2, % 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 Corporate segment accounted for 74.9% (64.8% in March 2016) of the expanded credit portfolio at the end of the quarter, compared to 24.3% (34.0% in the respective comparison period) of the Emerging Companies segment. This reflects the successful downsizing of the credit portfolio in the high-risk segment in order to reduce payment delays or defaults. 9/17

10 Expanded Credit Portfolio by Segment Expanded Credit Portfolio by Client Concentration 1,1% 1,0% 0,9% 0,8% 0,8% Mar 17 26,2% 46,3% 21,5% 6,0% 65% 68% 73% 76% 75% Dec 16 22,9% 42,9% 25,9% 8,3% 34% 31% 26% 23% 24% Mar 16 22,1% 38,9% 25,5% 13,4% Mar 16 Jun16 Sep 16 Dec 16 Mar 17 Emerging Companies Corporate Other* top largest largest Other * The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating asset. In 1Q17, the agro bonds portfolio, classified under marketable securities, totaled R$457.7 million, -27.2% in the quarter and -6.4% in 12 months. The decrease in 12 months is mainly due to the intentional downsizing of the loan portfolio. Agricultural Bonds 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Booked under Securities % % Warrants - CDA/WA % % 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 Southeast 56% South 11% North 2% Northeast 5% Midwest 26% Agriculture Ethanol & Sugar Real Estate Financial Activities Livestock Food & Beverage Textile, Apparel & Leather Power Generation & Distribution Transport and Logistics Individuals Infrastructure Machinery and Equipments Mining Wood & Furniture Chemical & Pharmaceutical Other industries (% lower than 1.0%) 11,0% 11,0% 6,8% 5,9% 5,1% 4,2% 3,1% 2,2% 1,7% 1,5% 1,5% 1,4% 1,3% 1,2% 5,3% 36,9% Quality of Expanded Credit Portfolio During the course of 1Q17 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. 10/17

11 Expanded Credit Portfolio by Rating* In 1Q17, R$74.7 mm rated between E-H, with covered 320 ratio of 94.1% R$ million AA A B C D E F G H * Adjusted for the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda. The quality of our expanded credit portfolio also stands out. In March 2017, AA-B credits totaled 83% of the portfolio and E-H portfolio (3.9% of the portfolio) coverage level was 94.1%. Moreover, the 90-day non-performing index, excluding operations related to Ceagro Agrícola case, totaled R$55.2 million in 1Q17, compared to R$61.9 million in 4Q16, with provisions that cover 94% of this amount. The ALL (managerial) expenses, excluding operations related to Ceagro Agrícola case and those related to one single client of the bank's old portfolio (loans granted before April/2011) mentioned in 4Q16, were 1.31% p.a. over the last 12 months, compared to 1.77% p.a. in 4Q16. Funding Funding totaled R$3.1 billion in March 2017, -2.6% in the quarter and +9.9% in twelve months. Our cash position remained comfortable, thanks to our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years. At the end of 1Q17, we had distributed our funding products directly as well as through Guide and 71 brokerages, distributors and autonomous agents, and had a depositor base of more than 27,800 members, compared to 21,900 at the end of 1Q16, an increase of 27%. Funding 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Total Deposits 3, , % 2, % Time Deposits 1, , % 1, % Insured Time Deposits (DPGE) % % DPGE I % % DPGE II % % Agro Notes (LCA) , % % Real Estate Notes (LCI) % % Bank Notes (LF) % % Interbank Deposits % 0.0 n.c. Demand Deposits % % Domestic Onlending % % Foreign Borrowings n.c n.c. Trade Finance n.c n.c. Others n.c. 0.0 n.c. Total Funding 3, , % 2, % 11/17

12 By Type By Investor By Maturity Interbank & Demand Deposits 6% BNDES Onlending 1% Time Deposits 48% Bank & Real Estate Notes 3% Agro Bonds 28% DPGE I* 12% DPGE II* 2% Enterprises 5% Institutional Investors 20% Brokers 46% BNDES Onlending 1% Other 3% Individuals 18% Demand 0% +360 days 25% Up to 90 days 31% 181 to 360 days 24% 91 to 180 days 20% Average term of deposits is 630 days from issuance (615 days in December 2016) and 279 days from maturity (294 days in December 2016). 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) Portfolio of Deposits From March 31, Volume-weighted average. Free Cash On March 31, 2017 free cash totaled R$1,198.7 million, increasing by 13.9% in the quarter and by 21.5% from March 31, 2016, corresponding to 39.2% of total deposits, versus 36.2% at the end of 1Q16 and 2.6 time shareholders' equity. The calculation considers cash, short-term interbank investments and securities, less funds raised in the open market and debt securities classified under marketable securities, comprising rural product certificates (CPR), agribusiness deposit certificates and warrants (CDA/WA), debentures and promissory notes (NP) Capital Adequacy R$ million Mar 16 Dec 16 Mar 17 The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk in their operations. The Brazilian Central Bank stipulates that banks operating in the country should maintain at least 10.5%, calculated according to the Basel II and Basel III Accord regulations, which provides greater security to the country s financial system against volatile economic conditions. The following table shows BI&P s position in relation to the Central Bank s minimum capital requirements: Basel Index 1Q17 4Q16 1Q17/4Q16 1Q16 1Q17/1Q16 Total Capital % % Tier I % % Tier II n.c. 0.0 n.c. Deductions n.c. 0.0 n.c. Required Capital % % Credit Risk Allocation % % Market Risk Allocation % % Operating Risk Allocation % % Excess over Required Capital (2.5) % % Basel Index 10.9% 11.2% -0.3 p.p. 15.3% -4.4 p.p. 12/17

13 Risk Ratings Agency Classification Observation Last Report RiskBank RiskBank Index: 9.02 Low Risk Short Term (-) BRCP 2 (-) Disclosure: Very good Capital Markets Total Shares and Free Float Type Corporate Capital Controlling Group Number of shares as Management Treasury Free Float % Common 115,033,148 76,548,441 30,636-38,454, % Preferred 37,494,103 7,080,684 25, ,396 29,844, % TOTAL 152,527,251 83,629,125 56, ,396 68,298, % 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 March 31, 2017: Stock Option Plan Date of Approval Grace Period Term for Exercise Quantity Granted Exercised Extinct Not Exercised I Mar 26, 2008 Three years Five years 618, ,195 - II Apr 29, 2011 Three years Five years 1,840,584-1,726, ,941 III Apr 29, 2011 Five years Seven years 1,850, ,024 1,699,762 IV Apr 24, 2012 Up to five years Five years 867, , ,666 5,176,990-2,703,621 2,473,369 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 1Q17 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$1.39, for market cap of R$211 million, including the shares existing on March 2017 and excluding treasury stock. The price of IDVL4 shares stayed about the same in the quarter and rose 21% in the 12 months ended March In comparison, the Bovespa Index (Ibovespa) rose 8% in the quarter and 30% in relation to March At the end of 1Q17, the price/book value (P/BV) ratio was /17

14 Share Price evolution in the last 12 months Liquidity and Trading The preferred shares of BI&P (IDVL4) were traded in 71.0% of the sessions in the quarter and 79.3% of the 251 sessions in the 12 months ended in March The volume traded on the spot market in the quarter was R$0.5 million, involving 382 thousands IDVL4 shares in 240 trades. Between the close of 1Q16 and 1Q17, the volume of IDVL4 shares traded on the spot market was R$5.8 million, involving around 4.3 million preferred shares in 2,495 trades. Shareholder Base Position as QTY TYPE OF SHAREHOLDER IDVL3 % IDVL4 % TOTAL % 6 Controlling Group 76,548, % 7,080, % 83,629, % 4 Management 30, % 25, % 56, % - Treasury 0 0.0% 543, % 543, % 19 National Institutional Investors 4,916, % 5,906, % 10,822, % 5 Foreign Investors 12,190, % 19,057, % 31,248, % 5 Corporates 0 0.0% 427, % 427, % 332 Individuals 21,346, % 4,453, % 25,800, % 371 TOTAL 115,033, % 37,494, % 152,527, % 14/17

15 Balance Sheet CONSOLIDATED R$ thousand ASSETS 3/31/ /31/2016 3/31/2016 Current 2,793,980 3,036,048 2,647,260 Cash 41,576 35,811 31,735 Short-term interbank investments 935, , ,477 Open market investments 775, , ,403 Interbank deposits 160, , Securities and derivative financial instruments 1,011,378 1,165, ,297 Own portfolio 756, , ,446 Subject to repurchase agreements 32, ,865 - Linked to guarantees 217, , ,208 Derivative financial instruments 4,667 3,487 35,643 Interbank accounts ,203 Payment and receipts pending settlement Restricted credits - Deposits with the Brazilian Central Bank Loans 619, , ,493 Loans - private sector 629, , ,927 Loans - assignments 3,256 3,456 1,252 (-) Allowance for loan losses (13,090) (11,409) (21,686) Other receivables 182, , ,212 Foreign exchange portfolio 76,536 79, ,521 Income receivables 664 1, Negotiation and intermediation of securities 76,001 72,651 47,005 Sundry 30,804 31,640 61,975 (-) Allowance for loan losses (1,305) (783) (898) Other assets 2,803 9,341 2,843 Other receivables and assets not for own use 293 6,901 - Prepaid expenses 2,510 2,440 2,843 Long term 1,040,734 1,008, ,606 Marketable securities and derivative financial instruments 6,162 6,149 46,301 Own portfolio 6,152 6,149 9,365 Subject to repurchase agreements ,879 Derivative financial instruments Interbank Accounts 3,096 2,428 3,087 Pledged Deposits - Caixa Economica Federal 3,096 2,428 3,087 Loans 255, , ,116 Loans - private sector 315, , ,315 Loans - assignments 287-2,500 (-) Allowance for loan losses (60,020) (54,230) (73,699) Other receivables 540, , ,743 Trading and Intermediation of Securities Foreign exchange portfolio 3,056 3,046 - Income receivables 3,414 3, Sundry 555, , ,651 (-) Allowance for loan losses (21,433) (29,079) (119,163) Other assets 234, , ,359 Permanent Assets 73,022 74,078 76,684 Investments 24,438 24,834 24,318 ParticSubsidiaries and Affiliates 22,717 23,113 22,597 Other investments 1,721 1,721 1,721 Property and equipment 5,042 5,541 6,386 Other property and equipment 25,307 25,298 24,508 (-) Accumulated depreciation (20,265) (19,757) (18,122) Intangible 43,542 43,703 45,980 Goodwill 28,702 28,702 28,899 Other intangible assets 36,391 34,681 31,673 (-) Accumulated amortization (21,551) (19,680) (14,592) TOTAL ASSETS 3,907,736 4,118,588 3,722,550 15/17

16 CONSOLIDATED R$ thousand LIABILITIES 3/31/ /31/2016 3/31/2016 Current 2,608,814 2,899,162 1,754,338 Deposits 1,474,855 1,552, ,795 Cash deposits 13,568 21,623 15,972 Interbank deposits 160, ,969 - Time deposits 1,300,469 1,375, ,823 Funds obtained in the open market 129, , ,503 Own portfolio 31, ,349 37,301 Third party portfolio 98,036 65, ,202 Funds from securities issued or accepted 825, , ,416 Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 825, , ,416 Interbank accounts Receipts and payment pending settlement Interdepartamental accounts 4,018 9,231 4,231 Third party funds in transit 4,018 9,231 4,231 Borrowings ,528 Foreign borrowings ,528 Onlendings 15,733 19,458 40,605 BNDES 3,715 4,828 17,255 FINAME 12,018 14,630 23,350 Other liabilities 159, , ,911 Collection and payment of taxes and similar charges Foreign exchange portfolio 3,513 3, Taxes and social security contributions 7,385 8,753 7,913 Social and statutory liabilities 3,239 6,960 3,081 Negotiation and intermediation securities 125,717 99,998 89,194 Derivative financial instruments 5,151 7,159 4,721 Sundry 14,012 25,542 20,302 Long Term 829, ,779 1,397,158 Deposits 620, ,582 1,230,157 Time deposits 620, ,582 1,230,157 Funds from securities issued or accepted 139, ,164 85,004 Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 139, ,164 85,004 Onlending operations - Governmental Bureaus 10,712 13,229 26,826 Federal Treasure 3,580 3,471 3,858 BNDES 811 1,354 4,659 FINAME 6,131 8,214 18,119 Other Institutions Other liabilities 58,103 52,804 55,171 Taxes and social security contributions 51 39,426 37,097 Derivative financial instrument 1,676 1, Sundry 56,376 12,188 17,577 Future results 6,063 6,423 2,525 Shareholders' Equity 463, , ,529 Capital 849, , ,843 Capital Reserve 35,960 35,960 33,399 (-) Treasury stock (4,283) (4,283) (4,283) Asset valuation Adjustment (316) (126) (103) Accumulated Profit / (Loss) (419,012) (387,566) (310,827) Minority Interest 1,243 1, TOTAL LIABILITIES 3,907,736 4,118,588 3,722,550 16/17

17 Income Statement Consolidated R$ thousand INCOME STATEMENT CONSOLIDATED 1T17 4T16 1T16 Income from Financial Intermediation 112, , ,665 Loan operations 38,014 42,699 51,445 Income from securities 62,307 44,303 38,356 Income from derivative financial instruments 7,155 34,411 33,478 Income from foreign exchange transactions 4,597 10,005 3,386 Expenses from Financial Intermediaton (112,703) (142,625) (125,130) Money market funding (101,264) (111,000) (100,031) Loans, assignments and onlendings (2,002) (4,306) (5,329) Sales operations/transfer of financial assets (76) (76) (1,496) Allowance for loan losses (9,361) (27,245) (18,274) Gross Profit from Financial Instruments (629) (11,208) 1,535 Other Operating Income (Expense) (24,002) (24,377) (27,245) Income from services rendered 19,788 24,895 15,548 Income from tariffs Personnel expenses (20,746) (22,236) (18,664) Other administrative expenses (22,020) (23,662) (19,819) Taxes (2,870) (4,929) (3,413) ResEquity in results of subsidiaries Other operating income 125,487 74,457 52,378 Other operating expense (124,467) (73,494) (54,015) Operating Profit (24,631) (35,585) (25,710) Non-Operating Profit (1,130) (4,948) (1,846) Earnings before taxes and profit-sharing (25,761) (40,534) (27,556) Income tax and social contribution (1,666) 15,579 8,275 Income tax (754) 1,023 (1,117) Social contribution (508) 695 (583) Deferred fiscal assets (404) 13,861 9,975 Statutory Contributions & Profit Sharing (4,172) (3,884) (4,239) Net Profit for the Period (31,599) (28,839) (23,520) 17/17