ANNUAL REPORT OF THE NATIONAL SYSTEM OF COOPERATIVE CREDIT - SNCC

ANNUAL REPORT OF THE NATIONAL SYSTEM OF COOPERATIVE CREDIT - SNCC 2015 1. UNDERSTANDING THE NATIONAL SYSTEM OF COOPERATIVE CREDIT (SNCC) 1.1 REGULATION The making of laws in Brazil is set up by the legislative and executive branches. With regard to the credit cooperatives, there are Law n 4,595/1964 (Law of the Financial System), Law n 5,764/1971 (General Law of Cooperatives) and Complementary Law no. 130/2009 (specific to the credit union). As a complement, the National Monetary Council (CMN), which is the highest agency of the financial system in Brazil, has the power to issue general rules for the proper functioning of the system through its resolutions. The main responsible for making sure these rules are met is the Central Bank of Brazil (BC), which has assignment to authorize, regulate and supervise the institutions that make up the SFN through Circulars, Circular Letters, Releases and Manuals. 1.2 COOPERATIVE DIFFERENTIATION Brazilian credit cooperatives can be organized in systems, which provides economies of scale in a pyramidal structure in which the singular cooperatives (first degree) occupy the base, central cooperatives (second degree) occupy the intermediate level and the confederation (third degree) is at the top. The singular has aimed to provide direct services to the associates; the central organize, on a larger scale, affiliated services, facilitating the reciprocal use of services. Finally the confederation defend their interests, promote standardization, supervision and operational, financial, regulatory and technological integration. 1.3 STRUCTURING In Brazil, the SNCC is structured as follows: - Four confederations: National Confederation of Cooperatives of Sicoob (Sicoob); Confederation of Interstate Cooperatives Linked to Sicredi (Sicredi); National Confederation of Central Cooperatives Unicred's (Unicred Brazil) and Confederation of Rural Credit Central Cooperatives with Solidarity Interaction (Confesol); - Five systems organized in headquarters that are not affiliated with a confederation: Central Cooperative Saving and Mutual Credit from the State of Espirito Santo (Cecoopes); Central Urban Credit Cooperatives (Cecred); Central of Mutual Credit Cooperatives of Rio Grande do Sul (Cecrers); Credit Central Cooperative on Brazilian Northwest (Credisis); and Central Interstate Credit Cooperatives (Central Uniprime); 1

- Singular credit unions that are not affiliated to the centrals; - Two cooperative banks, Cooperative Bank of Brazil (Bancoob) and Sicredi Cooperative Bank (Sicredi Bank), which has a controlling stake in central credit cooperatives and that provides financial products and services especially for the members of the system. 1.4 OTHER ENTITIES In Brazil, there are still other entities linked to the credit cooperatives, including the Organization of Brazilian Cooperatives (OCB), a private entity responsible for the promotion, development and defense of the cooperative system in all political and institutional levels, integrating all thirteen sector industries and maintaining support services, general guidance and other interest of Cooperatives. Specifically for the credit cooperatives, the OCB constitutes the National Advisory Board of Credit Branch (CECO), an advisory of technical character, whose mission is to propose solutions to provide more dynamic, objective, efficient and effective actions in the OCB for the credit cooperative sector. 2

2. SNCC STRUCTURE 2.1 COMPOSITION The SNCC ended 2015 with 2 cooperative banks, 4 confederations (2 for finances and 2 for services), 35 centrals and 1,076 individual credit unions, as shown in Table 2.1. It is noteworthy that there was a reduction of 47 individual credit unions and 3 centrals in relation to the previous year. On the reduction of singular cooperatives, 40 were included, 10 had their operating licenses canceled by the initiative of the BC and 1 for ordinary liquidation. It is highlighted that the CECM of Eletronorte Employees Ltd., based in Belém - PA, affiliated with the Sicoob, incorporated 7 cooperatives simultaneously. Another relevant factor is that the Central Bank in 2015 authorized only 4 of the singulars to work demonstrating the SNCC consolidation behavior. Regarding 3 of the incorporated centrals, one was by Sicoob Central Unicoob (Sicoob of the Central Amazon), the other by the central Sicoob Uni (Unicred Central Western Amazon), both affiliated to Sicoob, and the latter was merged into Unicred Central North/Northeast (Federalred). Also noteworthy is that on August 15th, 2015, a memorandum of understanding was signed aimed at affiliating the Central Unicred North/Northeast to Sicredi. TABLE 2.1 - AMOUNT OF SINGULAR CREDIT COOPERATIVES AMOUNT OF SINGULAR CREDIT COOPERATIVES SEGMENTATION BY TYPE Dec./14 Mar./15 June/15 Sept./15 Dec./15 VARIATION PERIOD Rural Credit 229 225 219 218 211-18 Mutual Credit / Professional Activity 113 110 106 104 103-10 Mutual Credit / Employees 395 391 386 378 366-29 Mutual Credit / Employment bond 32 33 31 30 28-4 Mutual Credit / Enterprises - Micro and Small 13 11 11 11 10-3 Mutual Credit / Free Admission 296 299 304 310 314 18 Mutual Credit / Various Sources 39 39 40 40 39 0 Luzzatti 6 6 5 5 5-1 TOTAL 1.123 1.114 1.102 1.096 1.076-47 Source: BCB/December 2015 On August 5 th, Resolution n. 4,434 of the National Monetary Council (CMN) was enacted, establishing a new classification of credit cooperatives, according to the practiced operations: Full, Classic, Capital and Loan. On November 4 th, the previous framework of credit cooperatives was announced, and from that date on, it was given 90 days to request cooperatives to reframe the BC 3

if they did not agree with it. According to the Bulletin n. 28,684 of November 4th, 2015 and the n. 29,044 of January 28th, 2016 (not considering the cooperatives in the process of incorporation), cooperatives were classified as shown in Table 2.2. TABLE 2.2 - PREVIOUS FRAMEWORK OF CREDIT COOPERATIVES SINGULAR CREDIT COOPERATIVES BY CATEGORY AND SYSTEMS SYSTEMS FULL* CLASSIC* CAPITAL AND LOAN* TOTAL 3rd LEVEL 32 673 83 788 SICREDI 28 67 0 95 SICOOB 4 403 83 490 UNICRED 44 44 CONFESOL 159 159 2nd LEVEL 1 71 4 76 CECRED 14 14 CECRERS 9 1 10 CECOOPS 3 1 4 UNIPRIME 1 8 9 CREDISIS 9 2 11 UNICRED N/NW 28 28 NON-AFFILIATED TO CENTRALS 1 87 112 200 GRAND TOTAL 34 831 199 1064 Source: BCB/December 2015 Despite the reduction in the quantity of headquarters, the year of 2015 showed an increase of 4.64% in the PSCs (headquarters + service offices), as shown in Graph 2.1, there was a similar behavior to that in the year of 2014 with a positive variation of 4.87 %. GRAPH 2.1 COOPERATIVE SERVICE UNITS 5.321 5.368 5.432 5.478 5.235 Source: BCB/December 2015 4

On the organizational level, the 3-level systems grew by 235 units (5.21%), the 2-level grew by 17 units (4.79%) and the units that were not affiliated to the central decreased by 9 units (-2.45%), as shown in Table 2.3. TABLE 2.3 COOPERATIVE SERVICE UNITS PER ORGANIZATIONAL LEVELS - December-15 ORGANIZATIONAL LEVEL NUMBER OF SERVICE UNITS (CENTRAL OFFICES + Service Posts (SPs) N. OF SINGULAR COOPS. % OF SINGULAR COOPS. N. OF CENTRAL OFFICES N. OF CREDIT CONF. UNICRED N/NW 28 2,64% 1 66 1,46% 94 1,72% SING. COOPS NON-AFFILIATED TO CENTRALS 202 19,06% 156 3,46% 358 6,54% GRAND TOTAL 1.060 35 2 4.513 100,00% 5.478 100,00% Source: BCB/December 2015 Notes: 1) The difference in the number of headquarters in comparison to Table 2..1 (1,096) is that the source of data in the Service Units by system does not recognize cooperatives in process of entry. 2) In the Sicredi System, the headquarters do not provide the services directly to the public. It provides it to a service office bound to them. 3) In August 15th 2015, a memorandum of understanding was signed to affiliate the Unicred Central North/Northwest to the Sicredi. The cooperative service units showed opposite changes in the number of bank agencies 1, as shown in Graph 2.2. GRAPH 2.2 COOPERATIVE SERVICE UNITS VARIATIONS N. of SPs % N. of SPs SERVICE UNITS % SERVICE UNITS 3-LEVEL SYSTEMS 782 73,77% 29 2 4.061 89,98% 4.748 86,67% SICOOB 486 45,85% 15 2.020 44,76% 2.506 45,75% SICREDI 95 8,96% 4 1.411 31,27% 1.411 25,76% UNICRED 44 4,15% 5 1 245 5,43% 289 5,28% CONFESOL 157 14,81% 5 1 385 8,53% 542 9,89% 2-LEVEL SYSTEMS 76 6,13% 6 296 6,56% 372 6,79% CREDISIS-RO 11 1,04% 1 14 0,31% 25 0,46% CECRED 14 1,32% 1 148 3,28% 162 2,96% CECRERS 10 0,94% 1 12 0,27% 22 0,40% CECOOPES 4 0,38% 1 0 0,00% 4 0,07% UNIPRIME CENTRAL 9 0,85% 1 56 1,24% 65 1,19% 4,64% 1,64% 1,19% 0,88% 0,85% -0,15% -0,33% -0,58% -0,77% -1,26% Mar./15 June/15 Sept./15 Dec./15 Var % Period COOPERATIVE SERVICE UNITS BANK AGENCIES Source: BCB/December 2015 1 Reducing the number of bank agencies, which is taking place from April 2015, in large part due to, especially in relation to the Bank of Brazil and Bradesco, the agency in banking service office transformation movement. 5

It is also noteworthy that the number of cooperative banking service offices surpassed the amount of bank agencies 2 of the Bank of Brazil, who led in December-14, according to Table 2.4, becoming the country's largest service network. TABLE 2.4 - COOPERATIVE SERVICE OFFICES AND BANK AGENCIES SERVICE UNITS ORDER INSTITUTION Dec./14 Dec./15 VAR % 1 CREDIT COOPERATIVES 5.235 5.478 4,64% 2 BANCO DO BRASIL 5.524 5.429-1,72% 3 BRADESCO 4.652 4.502-3,22% 4 ITAU 3.868 3.735-3,44% 5 CAIXA 3.391 3.404 0,38% Source: BCB/December 2015 According to the BCB, the cooperative service units are present in 2,453 (44%) Brazilian municipalities, concentrated mainly in the South and Southeast regions, as shown in Graph 2.3 GRAPH 2.3 COOPERATIVE SERVICE UNITS PER REGION SOUTH 2.668 NORTH 189 NORTHEAST 300 SOUTHEAST 1.852 MID-WEST 469 Fonte: BCB/December 2015 2 This analysis does not include the banking service offices 6

2.2 NUMBER OF ASSOCIATES The number of members increased by 202.91% over the last 10 years and 10.89% in 2015, reaching the mark of 8.4 million, 824,100 associated with more than in 2014, as shown in Grafh 2.4. A strong correlation is observed between the growths in the number of associates and of banking service offices, once again showing the progress of SNCC. Also noteworthy is that 8.4 million members in 2015 are present in 5,144 municipalities, according to the Central Bank, 91.8% of Brazilian municipalities. Graph 2.4 shows the ratio between the number of members and the Economically Active Population (EAP), which had an annual average growth of 5.27% between the years 2006-2015. GRAPH 2.4 - NUMBER OF ASSOCIATES AND THE ECONOMICALLY ACTIVE POPULATION 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 2,8 3,07% 3,51% 3,2 3,83% 3,97% 3,6 3,8 4,22% 4,2 4,96% 4,7 6,61% 6,3 6,86% 6,7 7,54% 7,6 8,4 8,08% 9,00% 8,00% 7,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1000000 1,00% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0,00% NUMBER OF AFFILIATES (In millions) Source: OCB, IPEADATA e BCB Observations: The years 2010 and 2015 were given an estimate based in the growth of previous year. % NUMBER OF AFFILIATES/EAP When stratifying the number of associates by systems (Table 2.5), there was the growth of 26.64% in the three-level system in 2015. As for the two-level systems, we could not make a comparative analysis by the absence of broken up data in 2014. 7

TABLE 2.5 - NUMBER OF ASSOCIATES PER SYSTEM - December-15 Source: BCB/December 2015 NUMBER OF ASSOCIATES BY SYSTEM ORGANIZATIONAL LEVEL N. OF ASSOCIATES 3-LEVEL SYSTEMS 6.989.996 83,10% SICOOB 3.181.655 37,82% SICREDI 3.157.797 37,54% UNICRED 215.177 2,56% CONFESOL 435.367 5,18% 2-LEVEL SYSTEMS 669.625 7,96% CREDISIS-RO 13.762 0,16% CECRED 483.124 5,74% CECRERS 24.324 0,29% CECOOPES 2.960 0,04% UNIPRIME CENTRAL 37.566 0,45% UNICRED N/NW 107.889 1,28% SING. COOPS NON-AFFILIATED TO CENTRALS 751.953 8,94% GRAND TOTAL 8.411.574 % 8

3. VOLUME OF DEPOSITS SFN deposits, excluding interbank deposits, in December-15 reached the amount of 1.9 trillion, 108.7 billion (12.24%) more than in the previous year. Despite the growth in the volume of deposits, savings deposits had a 2.7 billion decrease (-0.53%), while demand deposits and time deposits increased to 107.4 billion. The reasons that contributed to this decrease in the volume of savings deposits were inflation and unemployment. SNCC ended the year with a volume of deposits of 90.9 billion, 15.4 billion more than the volume enclosed in December-14, with 4,61% share in the SFN. Unlike commercial banks, the SNCC obtained an increase of 860.4 million for balance in savings when compared to the volume of the same period last year. Time deposits were the ones that registered the largest increase, reaching the level of 67.6 billion in December-15, 13.5 billion more in 12 months (Table A.2.1 in the Annex). The participation of the negotiating SNCC (SNCC-N) in the banking consolidated plus financial institutions jumped from 3.76% in December-14 to 4.25% in December-15, especially in the South region, where all the states that comprise it surpass the double-digit (Table A.2.2). The percentage variation in the volume of SNCC-N in relation to commercial banking consolidated in the four quarters of 2015 is highlighted, as shown in Graph 3.1. GRAPH 3.1 - VARIATION IN VOLUME OF THE DEPOSIT 21,09% 7,48% 5,49% 6,33% 6,25% 5,68% -1,32% 2,42% -0,87% -0,28% Mar./15 June/15 Sept./15 Dec./15 Período COMMERCIAL BANKING CONSOLIDATION CREDIT SINGULAR COOPERATIVES Source: BCB/December 2015 9

In comparison with December-14, the only region that did not grow in regional participation was the Southeast, remaining stable at 1.42%. The state of Rio Grande do Sul stood out in 2015 by entering the double-digit, when it started with 9.83% in December-14 and went to 11.59% in December-15. The four systems that are organized on three levels raised R$ 72.2 billion (87.19%) for volume of deposits for singular credit cooperatives; organized on two levels and non-affiliated singular cooperatives raised, respectively, R$ 9.1 (11.10%) and R$ 1.4 (1.71%) billion for volume of deposits. Graph 3.2 shows the participation of singular cooperatives in the financial system by region and the respective State with the lead in participation of cooperatives in the State's Financial System. GRAPH 3.2 - DEPOSITS LEADING STATES IN THE REGIONAL FINANCIAL SYSTEM Rondônia 14,52% Mato Grosso 18,92% Santa Catarina 17,72% Paraíba 7,43% EspÍrito Santo 8,24% 12,94% 3,25% 1,70% 1,42% 5,07% North Northeast Southeast Mid-west South Source: BCB/December 2015 All states mentioned above in the chart grew in regional participation of the financial system compared to the year 2014: Rondônia 2.43 p.p; Paraíba 1.46 p.p; Espírito Santo 1.77 p.p; Mato Grosso 1.98 p.p and Santa Catarina 2.33 p.p. 10

4. CREDIT OPERATIONS The 2015 credit environment reflected the weakening of the economic scenario, with high interest rates, the increase on unemployment and the drop in confidence in both consumers and entrepreneurs. To address this situation, the banks acted more conservatively in granting credit, renegotiating and restructuring the debts of the borrowers, as well as increasing coverage of provisions for bad debt, while activating tax credits during the second semester 3. Nevertheless, the commercial banking consolidated and the SNCC grew in credit operations, as it will be seen in the next items and in the attached tables. 4.1 VOLUME OF CREDIT OPERATIONS FOR SNCC AND SFN SFN credit operations (excluding financial transfers to the SNCC-N) in December-15 amounted to R$ 3.3 trillion, an increase of 9.08% compared to December-14; in the SNCC, the increase was of 12.47% and totaled in R$ 80.2 billion; since the amount of the SNCC-N was R$ 79.1 billion, there was an increase of 12.53% in the same period. The participation of the SNCC-N, considering only the commercial banking consolidated plus financial institutions, was of 2.67% in December-14 and went to 2.77% in December-15 (Tables A.4.1 and A.4.2). It is noteworthy that the growth presented in Graph 4.1 was not accompanied by the five largest banks, which achieved an average growth of 7.49%. Caixa Econômica Federal presented the highest increase of around 11.76% and the Bank of Brazil a lower growth of 6.08%. 3 Financial Stability Report of the Central Bank of Brazil, Oct-2015 and Apr-2016. 11

GRAPH 4.1 - VARIATION OF THE COMMERCIAL BANKING CONSOLIDATED AND THE SNCC-N - FROM DEC./2014 TO DEC./2015 12,53% 8,53% 3,34% 2,76% 5,56% 3,79% 4,38% 1,08% 0,15% Mar./15 June/15 Sept./15 Dec./15 VARIATION % -0,67% PERIOD COMMERCIAL BANKING CONSOLIDATED NEGOTIATING SNCC Fonte: BCB/IF.Data 4.2 VOLUME OF THE CREDIT OPERATIONS BY ORGANIZATIONAL LEVEL The four systems organized on three levels hold 87.59% of the balance of the credit operations for singular cooperatives, the ones organized on two levels hold 8.73% and the singular cooperatives that are not affiliated to the centrals represent 3.68% of the SNCC, keeping that percentage stable during December-14 (Table A.4.3). In systems organized on two levels, the Cecred is leading with 39.54% in December-14 and 41.15% in December-15. The Credicoamo is the leading non-affiliated to the Central with 33.08%. It is noteworthy that the ten largest unaffiliated represent 62.81% of the total volume of cooperatives unaffiliated to the Central 4. In the three-level system, there is Unicred, which registered a growth of 28.66%; already in participation, the highlight is Sicoob, which ended the year of 2015 with 51.40% in this group. 4.3 VOLUME OF CREDIT OPERATIONS PER TYPE OF PERSON According to the Central Bank's information based on December-2012 and December-2015's census, in relation to the associates with credit operations, the percentage of individuals increased from 34% to 44% and the legal entities grew from 48% to 67%. Regarding the financial volume, the 4 The cooperatives that not collect deposits were not considered in this case. 12

participation of individuals in the loan portfolio decreased when it went from 92% in December-12 to 90% in December-15. In the SNCC-N, the credit operations have greater focus on individual, while in the commercial bank consolidated this ratio is more balanced, with a predominance of operations with legal entities, as shown in Graph 3.2. Credit operations with individuals of singular cooperatives concluded the year with the amount of R$ 50.1 billion and a growth of 8.76% compared to December-14. As for the legal entities, the amount was of R$ 25.7 billion and the growth was of 19.58% compared with December-14. In the commercial banking consolidated the sum was of R$ 1.7 trillion for legal entities, with a growth of 6.64% and for individuals it reached the sum of R$ 1.5 trillion, an increase of 8.81% compared with December-14. The behavior of the variation in commercial banking consolidated was close to the SNCC-N for individuals, but in relation to the legal entities growth, it was lower than in the SNCC-N and equal to 8.76%. GRAPH 4.2 - CREDIT OPERATIONS FOR INDIVIDUALS AND LEGAL ENTITIES 67,67% 66,85% 67,01% 66,07% 54,20% 45,80% 53,15% 46,85% 54,10% 45,90% 53,38% 46,62% 32,33% 33,15% 32,99% 33,93% LE - LEGAL ENTITY IE - INDIVIDUAL ENTITY LE - LEGAL ENTITY IE - INDIVIDUAL ENTITY LE - LEGAL ENTITY IE - INDIVIDUAL ENTITY LE - LEGAL ENTITY Mar./15 June/15 Sept./15 Dec./15 IE - INDIVIDUAL ENTITY COMMERCIAL BANKING CONSOLIDATED NEGOTIATING SNCC Fonte: BCB/IF.Data 13

4.4 VOLUME OF CREDIT OPERATIONS PER TYPE OF PERSON 4.4.1 Individuals In SNCC-N, the modality that leads to participation is the rural and agribusiness credit with 38.10%, in December-14 it was of 37.22%. The volume grew 11.32%. By analyzing only the financial volume in 2015, the modality loans consignment sheet obtained a growth of 11,42%, and the share rose from 9.65% in December-14 to 9.89% in December-15 (Tables A.4.4 and A.4.5). Non-consigned loans was the modality that came in second with 29.32% stake, practically stable in December-14 (29.11%); the financial volume growth was of 9.56%. Operations with credit card was the modality that had the lowest representation, with 1.54% in December-15, in December-14 it was of 1.32%. Despite being the smallest participation in financial volume it is the one with the highest growth with 27.05% when compared with December-14. It is also noted that vehicle financing fell by 9.92% in the year. 4.4.2 Legal entities The composition of the corporate credit operations portfolio of the SNCC-N, the modality which has the largest share is the working capital with 47.13%, and in December-14 it was of 49.41%, the trading volume has increased in 14.05 % (Tables A.4.6 and A.4.7). Receivable operations comes in second with a share of 13.91%, when it was 15.11% in December- 14, the financial volume growth was of 10.08%. There is a pattern of behavior in both modalities, reducing participation and increase in trading volume. From the seven main modalities of credit operations, four have reduced participation, one has remained stable and two of them have increased. The rural and agribusiness credit modality had an increase in trading volume of 25.04% in the year, and project financing operations increased by 20.62%. Investment operations, between December- 14 and December-15, obtained an increase of 3.06%, the lowest growth among all modalities and hold 10.84% participation. 4.5 VOLUME OF CREDIT OPERATIONS BY REGION Graph 4.3 shows the share of singular cooperatives in the financial system by regions and the respective State with the leadership in the participation of cooperatives in the State Financial System. 14

GRAPH 4.3 - CREDIT OPERATIONS LEADING STATES IN THE REGIONAL FINANCIAL SYSTEM Rondônia 15,06% EspÍrito Santo 11,51% Mato Grosso 12,54% Santa Catarina 12,98% Paraíba 6,56% 9,09% 5,82% 3,36% 1,53% 1,50% NORTH NORTHEAST SOUTHEAST MID-WEST SOUTH Fonte: BCB/ DIORF/DEORF/December 2015 Examining the credit portfolio of individuals for the SNCC-N by region, the South is the leading region with R$ 22.9 billion balance, and in December-14 this amount was of R$ 21.2 billion, a reduction of their participation, but the trading volume increased by 7.93%. The Southeast region increased participation, from 30.63% to 30.85%, in addition to an increase of 9.53%. The Midwest region kept a stable share of around 17%, and a balance of R$ 8.5 billion, as shown in Graph 4.4. GRAPH 4.4 - SNCC-N INDIVIDUALS SOUTHERN REGION; 46,17% NORTHERN REGION; 2,46% NORTHEASTERN REGION; 3,75% SOUTHEASTER N REGION; 30,63% SOUTHERN REGION; 45,81% NORTHERN REGION; 2,71% NORTHEASTERN REGION; 3,62% SOUTHEASTER N REGION; 30,85% MID-WESTERN REGION; 17,00% MID-WESTERN REGION; 17,01% Source: BCB/December 2014 Source: BCB/December 2015 In the legal entity loan portfolio by region, the South leads with a R$ 13.0 billion balance, in December-14 it was of R$ 10.8 billion, an increase of 20.11% in financial volume. In the Southeast the volume was of R$ 6.2 billion, from December-14 to December-15 it was of R$ 7.7 billion, an increase of 25%. The Midwest region grew by 7.32%, with a financial volume of R$ 2.9 billion in December-15, when in December-14 it was of R$ 2.7 billion, as shown in Graph 4.5. 15

GRAPH 4.5 - SNCC-N LEGAL ENTITY SOUTHERN REGION; 50,34% NORTHERN REGION; 2,87% NORTHEASTERN REGION; 5,05% SOUTHEASTER N REGION; 28,86% SOUTHERN REGION; 50,56% NORTHERN REGION; 2,89% NORTHEASTERN REGION; 4,81% SOUTHEASTER N REGION; 30,17% MID-WESTERN REGION; 12,89% Source: BCB/December 2014 Source: BCB/December 2015 MID-WESTERN REGION; 11,57% 4.6 OPERATIONS BY RISK LEVELS The credit operations for commercial banking consolidated and the SNCC are classified in ascending order of risk (AA, A, B, C, D, E, F, G, H), according to the Resolution 2,682/1999 of the CMN. CLASSIFICATION OF RISK OF THE SNCC CREDIT OPERATIONS in Thousands of Reais Dec./14 Dec./15 VARIATION RISK LEVEL BALANCE % BALANCE % REAIS (R$) % AA, A, B 74.839.717 82,14% 87.100.624 85,30% 12.260.907 16,38% C, D, E 14.029.170 15,40% 11.717.094 11,47% - 2.312.076-16,48% F, G, H 2.241.239 2,46% 3.292.299 3,22% 1.051.060 46,90% TOTAL 91.110.126 100% 102.110.017 100% 10.999.891 12,07% Source: BCB/IF.data Note: The balance includes interbank lending to rural credit. CLASSIFICATION OF RISK OF THE COMMERCIAL BANKING CONSOLIDATED CREDIT in Thousands of Reais OPERATIONS Dec./14 Dec./15 VARIATION RISK LEVEL BALANCE % BALANCE % REAIS (R$) % AA, A, B 2.538.247.784 86,58% 2.653.660.589 84,89% 115.412.805 4,55% C, D, E 283.244.572 9,66% 337.754.998 10,80% 54.510.426 19,25% F, G, H 110.020.873 3,75% 134.659.845 4,31% 24.638.972 22,39% TOTAL 2.931.513.229 100% 3.126.075.432 100% 194.562.203 6,64% Source: BCB/IF.data In the SNCC, the operations classified in levels AA, A and B, the level A has the highest financial volume, R$ 43.6 billion and the largest share, with 42.75%. 16

While the commercial banking consolidated has 37.49% of the operations classified as AA level of risk and in the SNCC this classification is of 22.01%. For transactions classified as level H, the commercial banking consolidated is of 2.92% and in the SNCC the balance is of 1.97% (Table A.4.10). ANNEXES 17

TABLE A.2.1 - DEPOSIT VOLUME WITHOUT INTERBANK DEPOSITS - DECEMBER 2015 VOLUME OF DEPOSITS In Thousands of Reais SEGMENTS Demand deposits Savings deposits Time deposits Other deposits Total deposits 1 Multiple Commercial bank with comm. Portfolio or CEF 319.006.443 657.218.900 849.345.947 23.950.523 1.849.521.813 2 Multiple banks without commercial port. and Investment Bank 8.558 0 15.463.288 38.217 15.510.063 3 Development bank 16.576 0 10.535 14.813.865 14.840.976 4 Non-bank Financial Institutions 7.370 0 1.646.436 609.191 2.262.997 5 SNCC 13.862.822 7.887.241 67.591.288 1.533.196 90.874.547 5.1 Cooperative bank 73.415 7.887.241 218.524 0 8.179.180 5.2 Confederation 0 0 0 0 0 5.3 Central Office 1.919 0 8.677.760 617 8.680.296 5.4 Singular Cooperative 13.787.488 0 58.695.004 1.532.579 74.015.071 TOTAL SFN WITHOUT NON-BANK INSTITUTIONS AND CAPITAL MARKET (1+2+3+4+5) PARTICIPATION OF SNCC IN THE SFN TOTAL NEGOTIATING SNCC (5.1+5.4) PARTICIPATION NEGOTIATING SNCC IN THE BANKING CONSOLIDATION¹ (5.1+5.4)/(1+5.1+5.4) PARTICIPATION OF NEGOTIATING SNCC IN THE BANKING CONSOLIDATION PLUS FINANCIAL INSTITUTIONS² 332.901.769 665.106.141 934.057.494 40.944.992 1.973.010.396 4,16% 1,19% 7,24% 3,74% 4,61% 13.860.903 7.887.241 58.913.528 1.532.579 82.194.251 4,16% 1,19% 6,49% 6,01% 4,25% 4,16% 1,19% 6,47% 5,87% 4,25% Fonte: BCB/IF.data/December 2015 Note: 1) Resulting value produced by the total of cooperative deposits and the sum of that same value with the total of deposits with the banking consolidation. 2) Resulting value produced by the total of cooperative deposits and the sum of that same value with the total of deposits with the banking consolidation plus financial institutions. TABLE A.2.2 - DEPOSIT VOLUME WITHOUT INTERBANK DEPOSITS - DECEMBER 2014 VOLUME OF DEPOSITS In Thousands of Reais SEGMENTS Demand deposits Savings deposits Time depostits Other deposits Total Deposit 1 Commercial bank, Multiple banks with portfolio or CEF 245.278.430 660.737.212 826.153.615 17.872.398 1.750.041.655 2 Multiple bank without commercial portfolio and Investment Bank 7.746 0 19.550.776 41.792 19.600.314 3 Development Bank 34.989 0 17.764 16.808.363 16.861.116 4 Non-bank Financial Institutions 4.950 0 1.668.254 594.349 2.267.553 5 SNCC 12.749.190 7.026.881 54.121.923 1.589.403 75.487.397 5.1 Cooperative Bank 73.369 7.026.881 228.174 0 7.328.424 5.2 Confederation 0 0 0 0 0 5.3 Central Office 543 0 7.032.272 1.861 7.034.676 5.4 Singular Cooperative 12.675.278 0 46.861.477 1.587.542 61.124.297 TOTAL SFNs WITHOUT NON-BANK INSTITUTIONS AND CAPITAL MARKET (1+2+3+4+5) PARTICIPATION OD SNCC IN THE SFN TOTAL NEGOTIATING SNCC (5.1+5.4) PARTICIPATION OF NEGOTIATING SNCC IN THE BANKING CONSOLIDATION¹ (5.1+5.4)/(1+5.1+5.4) PARTICIPATION OF NEGOTIATING SNCC IN THE BANKING CONSOLIDATION PLUS FINANCIAL INSTITUTIONS² 258.075.305 667.764.093 901.512.332 36.906.305 1.864.258.035 4,94% 1,05% 6,00% 4,31% 4,05% 12.748.647 7.026.881 47.089.651 1.587.542 68.452.721 4,94% 1,05% 5,39% 8,16% 3,76% 4,94% 1,05% 5,38% 7,92% 3,76% Fonte: BCB/IF.data/December 2014 Note: 1) Resulting value produced by the total of cooperative deposits and the sum of that same value with the total of deposits with the banking consolidation. 2) Resulting value produced by the total of cooperative deposits and the sum of that same value with the total of deposits with the banking consolidation plus financial institutions. 18

TABLE A.3.3 - STATEMENT FOR THE PARTICIPATION OF THE SFN CREDIT COOPERATIVES - STATE AND REGION PARTICIPATION OF CREDIT COOPERATIVES IN THE SFN - BY STATE AND REGION in Thousands of Reais SFN CREDIT COOPERATIVES Region Credit Operation Deposit Credit Operation % Deposit % NORTH 59.149.517 46.072.145 1.985.669 3,36% 1.497.860 3,25% AC 3.138.584 2.518.184 69.231 2,21% 69.726 2,77% AM 9.584.491 10.653.630 76.373 0,80% 68.094 0,64% AP 2.743.740 1.359.161 8.228 0,30% 10.694 0,79% PA 21.498.711 18.815.789 320.115 1,49% 230.512 1,23% RO 9.480.302 7.304.278 1.427.700 15,06% 1.060.606 14,52% RR 4.176.624 1.620.566 6.408 0,15% 10.596 0,65% TO 8.527.065 3.800.538 77.614 0,91% 47.633 1,25% NORTHEAST 187.808.607 188.795.165 2.875.579 1,53% 3.213.527 1,70% AL 10.629.675 8.396.903 253.121 2,38% 302.321 3,60% BA 49.098.784 49.995.429 513.979 1,05% 574.354 1,15% CE 26.018.768 39.181.257 283.026 1,09% 481.730 1,23% MA 15.480.612 11.163.708 84.928 0,55% 51.731 0,46% PB 14.297.546 11.834.276 937.817 6,56% 878.922 7,43% PE 37.953.996 41.726.129 468.318 1,23% 486.802 1,17% PI 9.724.591 7.044.422 23.795 0,24% 47.891 0,68% RN 14.067.064 10.065.908 204.556 1,45% 294.185 2,92% SE 10.537.570 9.387.134 106.040 1,01% 95.590 1,02% SOUTHEAST 1.470.604.177 1.494.152.959 22.028.338 1,50% 21.239.314 1,42% ES 27.716.290 29.210.173 3.189.187 11,51% 2.407.083 8,24% MG 162.486.855 140.648.360 8.726.602 5,37% 9.872.167 7,02% RJ 158.584.325 194.677.738 712.965 0,45% 1.313.035 0,67% SP 1.121.816.708 1.129.616.687 9.399.584 0,84% 7.647.029 0,68% MID-WEST 182.301.893 174.590.073 10.608.651 5,82% 8.860.354 5,07% DF 61.166.323 111.635.846 1.739.221 2,84% 1.672.819 1,50% GO 59.755.709 32.066.930 2.846.118 4,76% 2.448.773 7,64% MS 24.204.665 13.684.563 1.362.033 5,63% 1.484.351 10,85% MT 37.175.196 17.202.734 4.661.279 12,54% 3.254.412 18,92% SOUTH 368.864.571 304.182.361 33.512.130 9,09% 39.365.947 12,94% PR 141.451.012 103.537.727 11.308.773 7,99% 12.037.305 11,63% SC 74.864.846 66.429.985 9.717.216 12,98% 11.769.812 17,72% RS 152.548.713 134.214.649 12.486.141 8,19% 15.558.830 11,59% BRAZIL TOTAL 2.268.728.766 2.207.792.703 71.010.366 3,13% 74.177.003 3,36% Source: BCB/December 2015 19

TABLE A.4.1 VOLUME OF CREDIT OPERATIONS - DECEMBER 2015 Source: BCB/IF.data/December 2015 VOLUME OF CREDIT OPERATION SEGMENT TABLE A.4.2 VOLUME OF CREDIT OPERATIONS - DECEMBER 2014 VOLUME PROVISION 1 Commercial bank, Multiple banks portfolio or CEF 2.751.828.307-166.897.836 2 Multiple Banks Without commercial port. and Investment Bank 79.990.722-4.270.459 3 Development Bank 410.949.286-4.524.374 4 Non-bank Financial Institutions 25.265.864-4.749.744 5 SNCC 80.269.739-4.031.978 5.1 Cooperative Bank (without/ interfiancial transfers) 4.080.899-40.527 5.2 Confederation - - 5.3 Central 1.176.955-9.230 5.4 Singular Cooperative 75.011.885-3.982.221 TOTAL SFN (without Non-bank Capital Market Institutions) 3.348.303.918-184.474.391 SNCC/SFN TOTAL NEGOTIATING SNCC (5.1+5.4) NEGOTIATING SNCC/BANKING CONSOLIDATIONS COMMERCIAL/MULTIPLE BANKS AND CEF (5.1+5.4)/(1+5.1+5.4) NEGOTIATING SNCC/BANKING CONSOLIDATIONS PLUS FINANCIAL INSTITUTIONS in Thousands of Reais 2,40% 2,19% 79.092.784-4.022.748 2,79% 2,35% 2,77% 2,29% Source: BCB/IF.data/December 2014 VOLUME OF CREDIT OPERATION SEGMENT VOLUME PROVISION 1 Commercial bank, Multiple banks portfolio or CEF 2.537.537.074-135.934.898 2 Multiple Banks Without commercial port. and Investment Bank 88.263.591-3.402.692 3 Development Bank 351.065.981-2.950.308 4 Non-bank Financial Institutions 21.279.707-2.540.917 5 SNCC 71.367.788-3.077.020 5.1 Cooperative Bank (without/ interfinancial transfers) 3.339.231-53.162 5.2 Confederation - - 5.3 Central 1.079.437-8.216 5.4 Singular Cooperative 66.949.120-3.015.642 TOTAL SFN (without Non-bank Capital Market Institutions) PARTICIPATION SNCC/SFN TOTAL NEGOTIATING SNCC (5.1+5.4) NEGOTIATING SNCC/BANKING CONSOLIDATIONS COMMERCIAL/MULTIPLE BANKS AND CEF (5.1+5.4)/(1+5.1+5.4) NEGOTIATING SNCC/BANKING CONSOLIDATIONS PLUS FINANCIAL INSTITUTIONS in Thousands of Reais 3.069.514.141-147.905.835 2,33% 2,08% 70.288.351-3.068.804 2,70% 2,21% 2,67% 2,17% 20

TABLE A.4.3 - VOLUME OF CREDIT OPERATIONS BY MODALITY SINGULAR CREDIT COOPERATIVES in Thousands of Reais Deposit Credit Operations ORGANIZATIONAL LEVEL REAIS (R$) % REAIS (R$) % 3-LEVEL SYSTEMS 72.250.301 87,19% 66.708.828 87,59% SICOOB 38.829.806 46,86% 34.291.059 45,03% SICREDI 24.563.097 29,64% 24.266.917 31,86% UNICRED 7.275.069 8,78% 5.194.674 6,82% CONFESOL 1.582.330 1,91% 2.956.177 3,88% 2-LEVEL SYSTEMS 9.196.704 11,10% 6.646.278 8,73% CREDISIS-RO 241.246 0,29% 285.387 0,37% CECRED 4.363.348 5,27% 2.735.004 3,59% CECRERS 293.219 0,35% 167.241 0,22% CECOOPES 2.534 0,00% 13.045 0,02% UNIPRIME CENTRAL 1.714.865 2,07% 1.057.056 1,39% UNICRED N/NW 2.581.492 3,12% 2.388.545 3,14% INDEPENDENT 1.422.208 1,72% 2.804.790 3,68% GRAND TOTAL 82.869.213 100,00% 76.159.896 100,00% Source: BCB/December 2015 TABLE A.4.4 - MODALITY OF CREDIT OPERATIONS FOR SNCC PF-N - DECEMBER 2015 NEGOTIATING SNCC - INDIVIDUAL ENTITY in Thousands of Reais MODALITY VOLUME % Rural and Agroindustrial 19.092.123 38,10% Businesses without balance sheet consignment 14.694.918 29,32% Other Credits 7.161.417 14,29% Businesses with balance sheet consignment 4.955.048 9,89% Vehicles 3.438.629 6,86% Credit Card 770.856 1,54% TOTAL 50.112.991 100,00% Source: BCB/IF.data/December 2015 Note: Other loans are made by other credit operations in the country as described in the BC website, with free resources, not intemized in the modalities. 21

TABLE A.4.5 - MODALITY OF CREDIT OPERATIONS SNCC PF-N - DECEMBER 2014 NEGOTIATING SNCC - INDIVIDUAL ENTITY in Thousands of Reais MODALITY VOLUME % Rural and Agroindustrial 17.150.836 37,22% Businesses without balance sheet consignment 13.412.961 29,11% Other Credits 6.640.494 14,41% Businesses with balance sheet consignment 4.447.250 9,65% Vehicles 3.817.244 8,28% Credit Card 606.730 1,32% TOTAL 46.075.515 100,00% Source: BCB/IF.data/December 2014 Note: Other loans are made by other credit operations in the country as described in the BC website, with free resources, not intemized in the modalities. TABLE A.4.6 - MODALITY OF CREDIT OPERATIONS FOR PJ SNCC-N - DECEMBER 2015 NEGOTIATING SNCC - INDIVIDUAL ENTITY in Thousands of Reais MODALITY VOLUME % Working Capital 12.126.779 47,13% Operations with Receivables 3.578.927 13,91% Revolving Credit 3.274.340 12,72% Other Credits 3.070.562 11,93% Investment 2.789.363 10,84% Rural and Agroindustrial 770.360 2,99% Project Funding 121.917 0,47% TOTAL 25.732.248 100,00% Source: BCB/IF.data/December 2015 Note: Other loans are made by other credit operations in the country as described in the BC website, with free resources, not intemized in the modalities. TABLE A.4.7 - MODALITY OF CREDIT OPERATIONS FOR PJ SNCC-N - DECEMBER 2014 NEGOTIATING SNCC - INDIVIDUAL ENTITY in Thousands of Reais MODALITY VOLUME % Working Capital 10.632.551 49,41% Operations with Receivables 3.251.284 15,11% Revolving Credit 2.890.524 13,43% Other Credits 1.320.849 6,14% Investment 2.706.629 12,58% Rural and Agroindustrial 616.115 2,86% Project Funding 101.072 0,47% TOTAL 21.519.024 100,00% Source: BCB/IF.data/December 2014 Note: Other loans are made by other credit operations in the country as described in the BC website, with free resources, not intemized in the modalities. 22

TABLE A.4.8 - RISK CLASSIFICATION OF CREDIT OPERATIONS - DECEMBER 2015 CLASSIFICATION OF RISK OF THE SNCC CREDIT OPERATIONS in Thousands of Reais RISK LEVEL CENTRALS SINGULAR BANKS GRAND TOTAL % GRAND TOTAL % RUNNING TOTAL AA 532.633 1.582.050 20.355.668 22.470.351 22,01% 22,01% A 367.474 39.060.817 4.218.972 43.647.263 42,75% 64,75% B 157.852 20.498.611 326.547 20.983.010 20,55% 85,30% C 115.672 7.173.529 141.054 7.430.255 7,28% 92,58% D 1.113 2.981.177 9.664 2.991.954 2,93% 95,51% E 268 1.283.829 10.788 1.294.885 1,27% 96,78% F - 854.885 7.286 862.171 0,84% 97,62% G 11 417.398 1.209 418.618 0,41% 98,03% H 2.147 1.992.964 16.399 2.011.510 1,97% 100,00% TOTAL 1.177.170 75.845.260 25.087.587 102.110.017 100,00% Source: BCB/IF.data/December 2015 Note: The balance includes interbank lending to rural credit. TABLE A.4.9 - RISK CLASSIFICATION OF CREDIT OPERATIONS - DECEMBER 2014 CLASSIFICATION OF RISK OF THE SNCC CREDIT OPERATIONS in Thousands of Reais RISK LEVEL CENTRALS SINGULAR BANKS GRAND TOTAL % GRAND TOTAL % RUNNING TOTAL AA 492.227 840.078 18.623.544 19.955.849 21,90% 21,90% A 233.019 31.345.872 3.306.767 34.885.658 38,29% 60,19% B 243.746 19.385.527 368.937 19.998.210 21,95% 82,14% C 90.268 10.527.224 86.787 10.704.279 11,75% 93,89% D 1.691 2.536.567 16.702 2.554.960 2,80% 96,70% E - 755.132 14.799 769.931 0,85% 97,54% F - 518.057 8.385 526.442 0,58% 98,12% G - 286.304 947 287.251 0,32% 98,43% H 152 1.399.778 27.616 1.427.546 1,57% 100,00% TOTAL 1.061.103 67.594.539 22.454.484 91.110.126 100% Source: BCB/IF.data/December 2014 Note: The balance includes interbank lending to rural credit. 23

TABLE A.4.10 RISK CLASSIFICATION FOR CONSOLIDATED BANKING CREDIT OPERATIONS CLASSIFICATION OF RISK OF THE BANKING CONSOLIDATION CREDIT OPERATIONS in Thousands of Reais Dec./14 Dec./15 RISK LEVEL REAIS R$ % REAIS R$ % AA 1.117.801.477 38,13% 1.171.889.439 37,49% A 955.862.114 32,61% 925.478.522 29,61% B 464.584.193 15,85% 556.292.628 17,80% C 191.646.520 6,54% 216.935.031 6,94% D 58.170.446 1,98% 80.733.721 2,58% E 33.427.606 1,14% 40.086.246 1,28% F 17.539.918 0,60% 23.490.941 0,75% G 15.158.516 0,52% 19.920.349 0,64% H 77.322.439 2,64% 91.248.555 2,92% TOTAL 2.931.513.229 100% 3.126.075.432 100% Source: BCB/IF.data/December 2014 and December 2015 24

ANNEX 2 - METHODOLOGY, CONCEPTS AND GLOSSARY METHODOLOGY 1. Objective: Evaluating the quarterly evolution of the following: a) Number of cooperative service units (headquarters and service offices) in relation to the banking sector; b) Volume of deposits and credit operations for cooperative banks and singular credit cooperatives in relation to the commercial and financial banking sector; c) Volume of deposits and credit operations by region of the country; d) Classification of risk levels of credit operations. 2. In the evaluation of deposits and credit operations, IF data are taken into account - Selected Information by Supervised Institutions, available on BCB's website: https://www3.bcb.gov.br/informes/relatorios?lingua=en The IF data considers the following macro segments comprising the SFN: Data from June to December are released 90 days after the end of the reference month; the data for March and September, 60 days. 3. For competitive effect, the competition for allocation of public funds in demand deposits, time deposits and savings between the singular credit cooperatives (b3) more cooperative banks versus commercial banking segments (b1) plus the financial segments (n1) and the supply of credit by the same institutions are evaluated. In this sense, SFN institutions operating non-directly with the public are not taken into account: multiple bank without a commercial portfolio and investment banking 25

(b2) and the development bank (b4) and the interbank deposits and rural credit transfers are not taken into account so as to avoid double counting. 4. TABLE 2.1 AMOUNT OF SINGULAR CREDIT COOPERATIVES, extracted from the Central Bank website, considers the cooperatives operating on the base date; in 2.2 and 2.3 tables, based on spreadsheet prepared by the BC/Diorf/Department of Financial System Organization - Deorf disregarding cooperatives in the merger process, whose accounting data have been consolidated in the joint general assembly date, in the form of Circular n. 3,017, from December 6th, 2000. This same criterion is used in the participation of singular cooperatives by State and Region (Table A.3.3) 5. When assessing the participation of singular credit cooperatives, in the volume of deposits and loans by state/region, a spreadsheet prepared by BCB/Diorf/Department of Financial System Organization - Deorf is used, which considers the following criteria: a) Deposits and banking system credit operations by agencies; b) Deposits and credit operations of singular cooperatives by headquarters (there is no information for each PAC- Cooperative service office); c) In credit operations all the institutions of SFN are considered and they are reduced by the amount of "Other Credits"; d) In the deposits all SFN institutions are considered except for balances of repurchase agreements. CONCEPTS NATIONAL SYSTEM OF COOPERATIVE CREDIT (SNCC): concept brought by the Amendment of the Complementary Law n. 130 of April 17 th, 2009, which "offers on the National System of Cooperative Credit." The SNCC is comprised of confederations, centrals, by cooperative systems 5, singular cooperatives that are not affiliated to the centrals, by financial institutions controlled by credit cooperatives and other entities referred to in art. 54 Resolution n. 4,434, of August 5 th, 2015 6. For 5 Circular n. 3771, 2015: For the purposes of this Circular, it is considered: I the central confederation: a cooperative society established by the central credit cooperatives, for the provision of services and the ones affiliated to it, being referred to specifically as "credit confederation" when authorized by the Central Bank of Brazil (BCB) to operate as a financial institution; II - cooperative system: the set of organized credit cooperatives on three levels, consisting of the central confederation, the central credit cooperatives affiliated to it and by singular credit cooperatives affiliated to the Central, in addition to other entities referred to in art. 54 Resolution n. 4,434, from August 5 th, 2015. Sole paragraph. In the absence of the confederation, it is also considered as a cooperative system the set of credit cooperatives organized on two levels, consisting of central credit cooperatives and singular credit cooperatives and the ones affiliated to it, in addition to other entities referred to in art. 54 Resolution n. 4434, from 2015. 6 Resolution n. 4434, art. 54. Subject to the laws and regulations in force, the credit cooperative can only participate in the capital: I - central credit cooperative or confederation of the Central constituted respectively by singular cooperatives or central cooperatives; II - controlled financial institutions for credit cooperatives, according to specific rules; III - cooperatives or companies controlled by the Central or cooperative confederation that are active. Mainly in the provision of services and supply of goods to institutions of the cooperative credit sector as long as necessary for their operation or complementary services and products offered to associates; and IV - Institutional representation of entities, technical cooperation or educational purposes. 26

the purposes of this study, it is considered as SNCC the credit confederations, the credit centrals, singular credit cooperatives and cooperative banks. NEGOTIATING SNCC (SNCC-N): singular credit cooperatives and cooperative banks, which compete with the commercial banking sector and financial operations in raising public resources - demand deposits, time deposits, savings and credit supply. COMMERCIAL BANKING SEGMENT: commercial banks, universal banks with commercial bank portfolio, Savings and Loans. AGENCY: dependence on commercial banks and Saving and Loans intended for customers service and the general public (Resolution No. 4.072/2012) SERVICE OFFICE: dependency, under the agency or the headquarters of the institution, for service to the public in the exercise of one or more of its activities (Resolution No. 4.072/2012) BANKING SERVICE OFFICE: Service Office of Commercial Bank. Although this terminology is no longer used in the regulations, it is still used to distinguish the service offices of banks that attend a restricted public. COOPERATIVE SERVICE OFFICE: credit cooperatives service office. Although this terminology is no longer used in the regulations, it is still used to distinguish the service offices of credit cooperatives (equivalent, in service, to the bank agencies) of banking service offices in commercial banks HEADQUARTERS: unit in which the administration of the institution is installed. In the case of credit cooperatives, the headquarters is also the banking service office to associates, except in Sicredi system whose service is done by a service office linked to the headquarters, in the same address GLOSSARY b1 - SFN Macro segment composed of commercial bank, Universal bank with bank portifolio, Savings and Loans b2 - SFN Macro segment composed of universal bank without commercial bank portfolio and investment bank b3 - SFN Macro segment composed of credit cooperatives b4 Macro segment SFN composed of development banks n1 - SFN Macro segment composed of non banking credit companies n2 - SFN Macro segment composed of non banking capital markets companies 27

BCB - Central Bank of Brazil CMN - National Monetary Council DO - Official Gazette DT - Total Deposit IF data Selected Information on Supervised Institutions, available at the BCB website: https://www3.bcb.gov.br/informes/relatorios?lingua=en OC - Credit Operation OCB Organization of Brazilian Cooperatives PA Service Office (agency s name in the case of cooperatives) PAC Cooperative service office SFN - National Financial System SNCC - National System of Cooperative Credit UA Service Units (considered the headquarters providing service to the public and cooperative service offices) 28