Institutional Presentation June 2020 US$ mm
Permanent Innovation to become the bank of choice of the successful people, who are the leading players in the development of our country To keep ourselves committed to the success of our clients ✓ Integrity ✓ Professionalism ✓ Positive Attitude 2
Paraguay's Economy Overview 3
Supportive macro and banking sector scenario Dec-19 Jun-20 % GDP 0,2 2,8 -0,8 % Accumulated Inflation % Annual Inflation 2,8 0,5 Gs 6.509,8 Gs 6.807,1 USD Exchage rate** Banking Sector Regional Jun-20 Jun-20 % Loan growth vs Dec19 1,1 -8,8 G 10,8 4,8 % Deposits growth vs Dec19 % NPL 3,2 2,9 15,3 1,1 % Annualized ROE *Provisional data 4 ** Referential exchange rate according to BCP Source: BCP
Paraguay’s Overview Key Figures Contribution to GDP by Sector (2014-2019*) Construction 2% 406.752 km 2 Surface Livestock 6% Population (2019) 7,1 millions 9% Government 37% US$ 38,6 billion 8% GDP 2019* Binationals US$ 5.404 per capita Asunción Industry 1 st exporter of organic sugar 2 nd exporter of stevia 19% Commerce 4 th exporter of soybean Worldwide 8% 5 th exporter of soybean oil Relevance as 10% Agriculture 5 th exporter of energy Exporter 7 th exporter of corn Others 11 th exporter of beef Country key facts Agribusiness has historically High Low inflation rate Lowest tax rates in South America, economy been main economic driver, providing incentives to investments growth: with a stable Tax on Corporation and Personal ~4,1% annual with services, industrial and monetary policy income: 10% during tertiary sectors starting to VAT in 5 - 10% range 2015-2019 develop more intensively 5 * Provisional Source: MF Economía with BCP and USDA data Fuente: MF Economía con datos de BCP y USDA
Macroeconomic stability is sustained Annual Inflation GDP Growth % * 8,4% 4,9% 4,5% 4,2% 4,0% 3,9% 3,7% 3,2% 3,1% 4,9% 5,0% 2,8% 4,2% 4,3% 3,4% 3,1% 0,0% -2,5% 2011 2012 2013 2014 2015 2016 2017 2018 2019 -0,5% 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020** Exchange rate (Gs/US$ in average) GDP per capita (US$) 6.241 5.693 5.670 5.591 6.006 5.205 5.872 4.462 5.792 4.422 4.304 4.196 5.667 5.451 5.371 5.309 5.302 5.171 5.013 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020** 6 *Provisional data **Projections Fuente: MF Economía con datos de BCP y USDA Source: MF Economía with BCP data
Lower debt and higher fiscal balance Net Public Debt / GDP* in the Region Net Public Debt / GDP 3,0% 60,4 0,2% 36,1 28,0 29,0 22,3 0,6 5,9 -2,0% -2,3% -2,5% -4,0 -3,7% -4,2% -4,4% -6,6% ARG URU BRA BOL COL PAR PER 2011 2012 2013 2014 2015 2016 2017 2018 2019 Fiscal Balance / GDP* in the Region Fiscal Balance / GDP 1,0% 0,0 0,7% 0,1% -2,2 -2,2 -2,6 -2,6 -3,9 -0,9% -1,3% -1,1% -1,1% -1,3% -5,7 -1,2% -1,3% -7,6 -8,4 -2,8% PAR PER CHI URU COL ARG BOL BRA 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * 2015-2019 in average * Provisional 2019 7 Source: MF Economía with BCP and FMI data Fuente: MF Economía con datos de BCP y USDA
Global commodity supply remains high SOYBEAN CORN 361 363 321 350 120 400,0 400 1.400 342 337 1.080 1.123 1.114 1.163 317 1.027 1.058 1.128 283 265 241 350,0 269 350 261 1.200 100 1.015 910 899 300,0 300 849 834 1.000 80 250,0 250 800 60 200,0 200 600 150,0 40 150 100,0 400 100 20 113 100 60 73 57 58 64 79 95 80 99 95 50,0 132 115 123 145 215 279 352 312 341 320 312 315 200 50 0 0,0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Final Stock (Millions of Ton.) Production (Millions of Ton.) Stock Final (Mn. Ton.) Producción (Mn. Ton.) RICE WHEAT 769 765 503 763 756 350 780 200 510 491 497 731 495 495 738 481 482 760 180 500 476 730 300 477 717 160 470 490 740 441 452 651 688 699 250 140 480 720 660 120 470 700 200 100 460 680 150 80 450 660 60 440 640 100 40 430 620 102 112 123 128 135 150 142 163 177 182 186 50 204 199 199 180 198 223 263 245 283 280 297 315 97 20 420 600 0 410 0 580 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock Final (Mn. Ton.) Producción (Mn. Ton.) Stock Final (Mn. Ton.) Producción (Mn. Ton.) 8 Source: MF Economía with USDA data Fuente: MF Economía con datos de BCP y USDA
Paraguay and Soybeans market - 2020/21 Production (Million ton.) Exports (Million ton.) SOYBEANS 362,5 161,6 World World 1 Brazil 1 Brazil 131,0 36,1% 83,0 51,4% 2 USA 2 USA 112,5 31,0% 55,8 34,5% 3 Argentina 3 Argentina 53,5 14,8% 6,5 4,0% 6 Paraguay 3,0% 4 Paraguay 3,9% 10,3 6,3 SOYBEAN OIL 59,0 11,8 World World 1 China 1 Argentina 17,0 28,8% 6,0 50,3% 2 USA 2 USA 11,4 19,2% 1,1 9,1% 3 Argentina 3 Brazil 8,6 14,6% 1,1 8,8% 9 Paraguay 5 Paraguay 0,7 1,2% 0,7 5,6% SOYBEAN MEAL World 248,3 World 67,5 1 China 75,2 30,3% 1 Argentina 29,7 43,9% 2 USA 46,2 18,6% 2 Brazil 16,3 24,2% 3 Brazil 34,9 14,1% 3 USA 12,0 17,8% 9 Paraguay 2,9 1,2% 4 Paraguay 2,5 3,6% 9 Source: MF Economía with BCP and USDA data
Paraguay and the Cereal market – 2020/21 Production (Million tons) Exports (Million tons) CORN World 1.163,2 World 182,5 1 USA 381,1 32,8% 1 USA 54,6 29,9% 2 China 260,0 22,4% 2 Brazil 38,0 20,8% 3 Brazil 107,0 9,2% 3 Argentina 34,0 18,6% 22 Paraguay 4,6 0,4% 8 Paraguay 2,5 1,4% WHEAT World 769,3 World 181,1 1 EU 139,5 18,1% 1 Russia 36,0 19,2% 2 China 136,0 17,7% 2 EU 27,0 14,4% 10 Argentina 21,0 2,7% 7 Argentina 14,5 7,7% 32 Paraguay 1,3 0,2% 17 Paraguay 0,6 0,3% RICE World 502,6 World 45,6 1 China 149,0 29,6% 1 India 11,0 24,5% 2 India 118,0 23,5% 2 Thailand 9,0 20,1% 11 Brazil 7,2 1,4% 9 Uruguay 0,8 1,8% 37 Paraguay 0,7 0,1% 10 Paraguay 0,6 1,3% 10 Source: MF Economía with BCP and USDA data
Paraguay became relevant in the Global Beef Market Global Beef Market (Projections 2020) Main Producers Main Exporters Country Tons Share Country Tons Share World 60.788 100,00% World 10.657 100,00% 1 USA 1 12.281 20% Brazil 2.550 24% 2 Brazil 2 10.000 17% Australia 1.400 13% 3 EU 3 7.850 13% India 1.400 13% 4 China 4 6.780 11% USA 1.322 12% 5 India 5 4.150 7% Argentina 760 7% 6 Argentina 6 3.100 5% New Zealand 610 6% 7 Australia 7 2.085 4% Canada 500 5% 8 Mexico 8 2.065 3% Uruguay 430 4% 9 Pakistan 9 1.840 3% Mexico 355 3% 10 Russia 10 1.377 2% EU 350 3% … … … 11 Paraguay 330 3% 16 Paraguay 535 1% 12 Belarus 185 2% 11 *Ton carcass weight Source: MF Economía with BCP and USDA data
Regional: A leading Bank designed for development 12
Strategic and Steady Growth 1991 Bank Foundation First bank in Paraguay headquartered outside the country’s capital Navigating the financial crisis 1998 One of the few local banks to successfully steer through Paraguay’s banking crisis Strategic Turn-Around Implementation of new strategic plan to expand Personalized customer attention 2000 - 2005 Institutional image renewed Strategic alliance with Rabobank Rabobank becomes largest shareholder with 40% stake Local stock issuance in BVPASA 2008 - 2012 Acquisition of 100% of ABN AMRO Paraguay Bank expansion First international bond issuance for US$300mm 2013 - 2018 Institutional image renewed Creation of Economic Group Incorporation of “Regional SA de Seguros” ( Insurance 2019 Company), “Fundación Regional” and opening of the Brokerage House “ Reginal Casa de Bolsa”
In 2019 we have expanded as an economic group … Marketshare (1) Direct Premiums (1) Score (2) Technical py A- risks 12 insurance (Stable) 11,94% Fire Life insurance insurance Production of 9,14% Insurance company acquired 30,27% Risk Direct by Banco Regional on insurance Premiums 8,51% February, 2019 Others It has 25 years operating in 8,31% Motor the market. insurance 29,73% Surety insurance 2,10% Securities Offered (3) : Marketshare Stock Market Subordinated bonds 5 Corporate bonds Brokerage house approved by Financial bonds the Extraordinary Assembly on Accumulated July 31, 2018. transactions to OTC Started to operated on January, Jun-20 Term Deposits 2019. (1) 2019-2020. Accumulated to May 2020 (2) According to the latest report of Solventa to Oct-19 (3) 100% Fixed Income Total Insurers in the System = 36 14 Total Brokerage Houses in the System = 10
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