Institutional Presentation March 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 Mar-20 % GDP 0,2 2,8 0,4 % Accumulated Inflation % Annual Inflation 2,8 2,5 Gs 6.509,8 Gs 6.563,0 USD Exchage rate** Banking Sector Regional Mar-20 Mar-20 % Loan growth vs Dec19 11,1 2,2 G 15,4 4,5 % Deposits growth vs Dec19 % NPL 3,0 2,8 15,7 0,5 % 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% 4,1% 3,4% 3,1% 0,2% 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 4.422 5.792 4.304 4.196 5.667 5.404 5.371 5.309 5.302 5.171 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019* 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 2,0% 0,1% 63,3 60,0 34,9 23,5 26,3 -2,0% 8,3 -2,3% -2,5% -3,7% -4,2% -4,4% -1,0 -4,6 -6,6% BRA ARG COL BOL CHI PAR PER 2011 2012 2013 2014 2015 2016 2017 2018 2019* Fiscal Balance / GDP* in the Region Fiscal Balance / GDP 1,0% 0,7% 0,1% -2,2 -2,2 -2,6 -2,6 -2,8 -4,2 -0,9% -1,3% -1,1% -1,1% -1,3% -5,7 -1,2% -1,3% -7,6 -8,4 -2,8% PER CHI URU COL PAR 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 1.027 1.058 1.128 1.080 1.122 1.111 358 321 350 120 400,0 400 1.200 342 338 1.015 317 283 265 910 899 350,0 241 269 350 261 849 100 1.000 834 300,0 300 80 800 250,0 250 60 200,0 200 600 150,0 40 150 400 100,0 100 20 110 60 73 57 58 64 79 95 80 99 97 50,0 200 132 115 123 145 215 279 352 312 341 320 298 50 0 0,0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Final Stock (Millions of Ton.) Production (Millions of Ton.) Final Stock (Millions of Ton.) Production (Millions of Ton.) RICE WHEAT 763 764 350 756 780 731 499 738 200 510 491 497 495 760 730 481 300 482 180 500 476 717 740 477 470 160 490 651 688 699 250 441 720 452 660 140 480 700 200 120 470 680 100 460 150 660 80 450 640 100 60 440 620 40 430 50 204 199 199 180 198 223 263 245 283 278 288 102 112 123 128 135 150 142 163 174 177 600 20 97 420 0 580 0 410 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Final Stock (Millions of Ton.) Production (Millions of Ton.) Final Stock (Millions of Ton.) Production (Millions of Ton.) 8 Source: MF Economía with USDA data Fuente: MF Economía con datos de BCP y USDA
Paraguay and Soybeans market - 2019/20 Production (Million ton.) Exports (Million ton.) SOYBEANS 337,7 149,1 World World 1 Brazil 1 Brazil 123,0 36,4% 76,0 51,0% 2 USA 2 USA 96,8 28,7% 48,3 32,4% 3 Argentina 3 Argentina 53,0 15,7% 8,2 5,5% 5 Paraguay 3,0% 4 Paraguay 4,2% 10,2 6,2 SOYBEAN OIL 56,9 11,8 World World 1 China 1 Argentina 15,2 26,8% 5,7 50,7% 2 USA 2 Brazil 11,1 19,5% 1,1 9,3% 3 Argentina 3 EU 8,7 15,3% 1,0 8,0% 9 Paraguay 5 Paraguay 0,7 1,3% 0,7 6,0% SOYBEAN MEAL World 238,6 World 67,8 1 China 67,3 28,2% 1 Argentina 30,9 45,5% 2 USA 44,9 18,8% 2 Brazil 15,4 22,7% 3 Argentina 34,3 14,4% 3 USA 12,0 18,0% 9 Paraguay 3,0 1,3% 4 Paraguay 2,6 3,8% 9 Source: MF Economía with BCP and USDA data
Paraguay and the Cereal market – 2019/20 Production (Million tons) Exports (Million tons) CORN World 1.110,8 World 165,6 1 USA 347,8 31,3% 1 USA 45,1 27,2% 2 China 260,8 23,5% 2 Brazil 36,0 21,7% 3 Brazil 101,0 9,1% 3 Argentina 33,5 20,2% 23 Paraguay 4,4 0,4% 7 Paraguay 2,0 1,2% WHEAT World 764,4 World 181,1 1 EU 154,0 20,2% 1 Russia 34,0 18,8% 2 China 133,6 17,5% 2 EU 31,0 17,1% 11 Argentina 19,0 2,5% 6 Argentina 13,0 7,2% 33 Paraguay 1,1 0,2% 17 Paraguay 0,6 0,3% RICE World 496,7 World 45,6 1 China 146,7 29,5% 1 India 11,8 25,9% 2 India 115,0 23,2% 2 Thailand 7,5 16,6% 11 Brazil 7,1 1,4% 9 Uruguay 0,8 1,7% 38 Paraguay 0,7 0,1% 11 Paraguay 0,7 1,5% 10 Source: MF Economía with BCP and USDA data
Paraguay became relevant in the Global Beef Market Global Beef Market (Projections 2019) Main Producers Main Exporters Country Tons Share Country Tons Share World 61.604 100,00% World 11.314 100,00% 1 USA 1 12.381 20% Brazil 2.356 20% 2 Brazil 2 10.225 17% Australia 1.825 16% 3 EU 3 7.875 13% India 1.600 14% 4 China 4 6.850 11% USA 1.372 12% 5 India 5 4.287 7% Argentina 765 7% 6 Argentina 6 3.120 5% New Zealand 649 6% 7 Australia 7 2.450 4% Canada 560 5% 8 Mexico 8 2.020 3% Uruguay 470 4% 9 Pakistan 9 1.820 3% EU 370 3% 10 Russia 10 1.367 2% Mexico 355 3% … … … 11 Paraguay 340 3% 16 Paraguay 530 1% 12 Belarus 195 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 Assets March 2020 Usd 2.755,8 Bank expansion • Incorporation of “Regional SA • de Seguros” ( Insurance Company) 5-year strategic plan with Bain & • Payment of International Bonds Company’s support • (US$ 300 mm) First international bond issuance for US$300mm • Institutional image renewed • 25 years in the Financial System • Creation of Brokerage • Beginning of “Fundación Regional” Strategic alliance with Rabobank • Rabobank becomes largest shareholder with 40% stake 2018 • Local stock issuance in BVPASA • Acquisition of 100% of ABN AMRO Paraguay Strategic Turn-Around • Implementation of new strategic plan to expand 2013 / 17 • Personalized customer Assets 2008: attention $624,63 • Institutional image renewed Navigating the • Tech infrastructure upgrade financial crisis • One of the few local 2008 / 12 banks to successfully steer through Paraguay’s banking crisis Bank Foundation • Commercial bank 2000 / 05 • First bank in Paraguay headquartered outside the country’s capital 1998 13 Assets $8,10 Assets (US$ mm) 1991
In 2019 we have expanded as an economic group … Marketshare (1) Direct Premiums (1) Score (2) Technical py A- risks 12 insurance (Stable) 11,73% Fire Life insurance insurance Production of 9,19% Insurance company acquired 30,31% Risk Direct by Banco Regional on insurance Premiums 8,39% February, 2019 Others It has 25 years operating in 8,23% Motor the market. insurance 29,96% Surety insurance 2,19% Securities Offered (3) : Marketshare Stock Market Subordinated bonds 4 Corporate bonds Brokerage house approved by Financial bonds the Extraordinary Assembly on Accumulated July 31, 2018. transactions to OTC Started to operated on January, Dec-19 Term Deposits 2019. (1) 2019-2020. Accumulated to March 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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