4Q10

Disclaimer

All financial information herein is presented on a consolidated basis, and includes the financialstatements of the Bank, its subsidiaries, JMalucelli Seguradora, JMalucelli Seguradora de Crédito,JMalucelli Re., JMalucelli Agenciamento, Jmalucelli Distribuidora de Títulos e Valores Mobiliáriosand Paraná Administradora de Consórcio. All information, except when otherwise indicated, isexpressed in Brazilian currency (Reais) and was prepared based on the accounting practicespursuant to Brazilian Corporate Law, associated with the regulations and instructions issued bythe National Monetary Council (CMN), the Brazilian Central Bank (BACEN), the BrazilianSecurities and Exchange Commission (CVM), the National Council of Private Insurance (CNSP), theBrazilian Private Insurance Authority (SUSEP) and the Accounting Standards Committee (CPC), asapplicable.

The information contained in this material regarding future events is exposed to risks anduncertainties and subject to changes resulting from, but not limited to, market behavior,economic and political situation of Brazil and legislative and regulatory changes. Theinformation herein is entirely based on the Bank Administration’s performance expectations andis no guarantee of future results.

2

Qualidade da Carteira de Crédito

3

* Inclui saldo da cessão com coobrigação.

Inadimplência SFNPF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%

Inadimplência Paraná BancoConsignado (>90 dias) = 5,9%

PME (>90 dias) = 0,8%

PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%

Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%

Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%

Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.

Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)

PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.

Créditos Baixados a Prejuízo (b) 8.754              13.250            (33,9%) 7.856              11,4%

Nível de perda (b/a) 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.

4T09 x 4T08R$ 4T09 3T09 4T09 x

3T09 4T08

MainHighlights 4Q10

Key Financial Numbers  (Consolidated)

Net Income:R$ 117.4 million in 2010

12.6% x 2009R$ 33.7 million in 4T10

16.1% x 4T09

Profitability:ROAE de 14.6%ROAA de 4.0% NIM de 11.8%

Total Deposits:R$ 1,301.8 million

30.6% x 4T09

4

Total Assets:R$ 3,074.0 million

17,5% x 4T09

Loan portfolio:R$ 1,551.9 million

19.7% x 4T09

Portfolio from AA to C :95.8% of Parana Banco consolidated portfolio

4Q10 Environment ‐ BACEN (Central Bank of Brazil)

5

Date  Resolution  Provision  Impact on Paraná Banco 

03/12/2010  3931  The limit for collection of time deposits with special guarantee provided by the Fundo Garantidor de Créditos (FGC) shall be reduced from 2012.

Low ‐ Paraná Banco is not dependent on this kind of fund raising – just 6.1% of the total deposit portfolio was issued in DPGE.

03/12/2010  3515  Changes in standard risk weight onloans for individuals, including payroll‐deductible loan

Low – With a 32.7% Basel Index in December, 2010, Paraná Banco is able to leverage the Company in spite of this change. 

03/12/2010  3513  Mandatory Deposits requirement Inexistent – Paraná Banco is not subject to reserve requirements

14/01/2011  Circular letter 3522 

Forbids financial institutions to celebrate exclusive agreements with payroll registered covenants

Positive – This provision fosters market development and  hinders a market practice that had been damaging for Paraná Banco operations. 

Financial Performance

6

Financial Intermediation Income

Financial Intermediation Expenses

Net Interest Margin - NIM

2009 2010

91,527  113,697  117,314 

(42,286) (57,394) (52,340)

13.5%11.7% 10.6%

‐25.0%

‐20.0%

‐15.0%

‐10.0%

‐5.0%

0.0%

5.0%

10.0%

15.0%

(150,000)

(50,000)

50,000 

150,000 

250,000 

350,000 

343,655 420,490 

(151,730)(199,713)

13.6% 11.8%

‐15.0%

‐10.0%

‐5.0%

0.0%

5.0%

10.0%

15.0%

‐300000

‐200000

‐100000

0

100000

200000

300000

400000

Net Income from Financial Operations 49,241 56,303 64,974 32.0% 15.4% 191,925 220,777 15.0%

4Q10 x 3Q10 2009 2010 2010 X

2009R$ mil 4Q09 3Q10 4Q10 4Q10 x 4Q09

51.5% 51.5% 39.1%43.0% 47.0%

29,066 29,479 33,739

104,301117,423

4Q09 3Q10 4Q10 2009 2010

Net income(R$ thousand)

Participation of insurance sector

16.1%

14.5%

12.6%

7

Financial Performance

4.2% 4.0%

2009 2010

ROAA(0,2 p.p)

45.3%47.9%

2009 2010

Efficiency

2.6 b.p (0.2) b.p

13.0%14.6%

2009 2010

ROAE

1,6 p.p1.6 b.p

8

Credit Portfolio Quality

FIDC I and II Effect

1,347.7 1,398.6 1,413.3 1,483.5 1,554.4 1,578.1

4.3%

5.1%

4.3%4.0% 3.9%

3.3%2.9%

3.3%

2.7%2.4% 2.4%

1.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

‐

200.0 

400.0 

600.0 

800.0 

1,000.0 

1,200.0 

1,400.0 

1,600.0 

1,800.0 

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Evolution of the Loan Portfolio - Consolidated(R$ million)

Loan Operations Allowance for doubtful accounts (PDD)/Loan Portfolio LevelH/Loan Portfolio

1,6 p.p

+17.1% +1.5%

Change in required alloance

Credit Portfolio Quality

9

* Includes balance of assignment with co-obligation.

Delinquency rate - Brazilian Financial System (“SFN”)

Individuals (>90 days) = 5.7%Corporations (>90 days) = 3.6%

Delinquency rate - Paraná BancoPayroll deductible (>90 days) = 3.1%

Middle Market (>90 days) = 2.4%*

Allowance for Doubtful Accounts (PDD) 51,942 61,377 (15.4%) 70,649 (26.5%)Portfolio overdue (> 60 days) 64,410 68,743 (6.3%) 72,412 (11.1%)

Portfolio overdue (> 90 days) 52,411 56,973 (8.0%) 58,868 (11.0%)

Total Portfolio* (a) 1,578,121 1,554,435 1.5% 1,398,582 12.8%

Portfolio Coverage Index (PDD / > 60 days) 80.6% 89.3% (8.6 p.p.) 97.6% (16.9 p.p.)

Portfolio Coverage Index (PDD / > 90 days) 99.1% 107.7% (8.6 p.p.) 120.0% (20.9 p.p.)

Allowance for Doubtful Accounts (PDD) / Total Portfolio 3.3% 3.9% (0.7 p.p.) 5.1% (1.8 p.p.)

Written-off credits (b) 7,771           8,541            (9.0%) 8,078           (3.8%)

Loss rate (b/a) 0.49% 0.55% (0.1 p.p.) 0.58% (0.1 p.p.)

4Q10 x 4Q09R$ 4Q10 3Q10 4T10 x 3Q10 4Q09

Performance – Payroll‐Deductible Loan

1,091 1,132 1,206 1,278 1,335

4Q09 1Q10 2Q10 3Q10 4Q10

Payroll-Deductible Loan Portfolio(R$ million)

96.1%

2.2%1.7%

Quality of the Payroll-Deductible Loan Portfolio

AA - C

D-G

H

10

Performance –Middle Market

Strategy: To invest in structuring this product so as to increase our share in this credit mode, focusing in the states of Paraná, where we rely on Group JMalucelli for support, and São Paulo, in synergy with JMalucelli Seguradora (insurance company).

11

130.0161.0 177.0 189.4 189.6

4Q09 1Q10 2Q10 3Q10 4Q10

Middle Market Portfolio Growth(R$ million)

97.2%

2.3% 0.5%

Quality of the Middle Market Portfolio Portfolio

AA - C

D-G

H

FRANCHISES

OWN STORES

5

21

DISTRIBUTIONCHANNELS

4

1

85

14

1

13

51

153

1

1

4

21

11

1

Distribution

PAYROLL-DEDUCTIBLEPAYROLL-DEDUCTIBLE

7 PLATAFORMS

•CURITIBA/PR

•SÃO PAULO/SP

•PONTA GROSSA/PR

•MARINGÁ/PR

•LONDRINA/PR

•JOINVILLE/SC

•FLORIANÓPOLIS/SC

MIDDLE MARKETMIDDLE MARKET

346 BROKERS

Funding

13

Medium Term Notes - MTN

100,000 December/2009 December/2012 7.375% 100%35,000 August/2008 August/2011 7.750% 100% + interest rate

Tranche (US$ thousand) Maturity Coupon

(p.a.) HedgeGranting Date

45.7%

8.0%

13.9%

11.2%

21.2%

Deposits Breakdown

Institutional Investors

Related Parties

Individuals

Corporate Investors

Financial Institutions

Capital Structure

14

Initial Balance 788,782 806,649 Net Income 117,452 107,196 Interest on Equity (46,143) (47,915)

Treasury shares (32,208) (77,181) Adjustment to market value - Marketable securities (223) 33

Final Balance 827,660 788,782

Equity Changes (R$ thousand) 2Q10 1Q10

38.9%

36.0%33.9% 33.2% 32.7%

4Q09 1Q10 2Q10 3Q10 4Q10

Basel Index

1.64 1.66

1.801.86 1.88

4Q09 1Q10 2Q10 3Q10 4Q10

Portfolio / Shareholder`s Equity

2010 2009

Corporate Governance

IOE (interest on equity) in 2010: R$ 46.1 million, equivalent to R$ 0.52 per share and pay-out of 39.3%.IOE (interest on equity) in 2010: R$ 46.1 million, equivalent to R$ 0.52 per share and pay-out of 39.3%.

1Q10 5,506,435.92 0.06 0.572Q10 10,645,443.84 0.12 1.413Q10 7,938,857.88 0.09 0.844Q10 22,052,383.00 0.25 1.85Total 46,143,120.64 0.52 -

Distributed Gross Value (R$)

Interest on Equity per share (R$)

Dividend Yield (%)

15

Qualidade da Carteira de Crédito

16

* Inclui saldo da cessão com coobrigação.

Inadimplência SFNPF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%

Inadimplência Paraná BancoConsignado (>90 dias) = 5,9%

PME (>90 dias) = 0,8%

PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%

Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%

Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%

Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.

Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)

PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.

Créditos Baixados a Prejuízo (b) 8.754              13.250            (33,9%) 7.856              11,4%

Nível de perda (b/a) 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.

4T09 x 4T08R$ 4T09 3T09 4T09 x

3T09 4T08

Insurance4Q10

Insurance Group

Seguradora’s Net Income : R$ 37.8 million in 2010

ROAE of 28.9% 29.2% x 2009

Resseguradora’s Net Income :R$ 15.8 million in 2010

ROAE of 16.4%12.2% x 2009

Seguradora’s Combined Ratio:66.4%

down 23.1 p.p. x 3T10

17

Market share - 2010:JM Seguradora: 40.4%

JM Re: 41.8%

Premiums issuedJM Seguradora + JM Re:

R$ 170.7 million137.8% x 4Q09

Share of Insurance Business: 47.0% of 2010 Net Income

Market Expectations

18

58.264.8

78.0 79.893.5

111.7121.9

2003 2004 2005 2006 2007 2008 2009

Investments in Infrastructure(in R$ billions)

According to ABDIB, Brazil will need R$ 160.9 billion per year for the next 5 years in order to suppress bottlenecks that are hindering the country’s competitiveness and economic growth. When financial resources are not invested, this need increases exponentially.

According to ABDIB, Brazil will need R$ 160.9 billion per year for the next 5 years in order to suppress bottlenecks that are hindering the country’s competitiveness and economic growth. When financial resources are not invested, this need increases exponentially.

4.7

4.3

4.1

4.0

3.9

3.7

3.6

3.6

3.5

3.0

2.8

2.8

Chile

Uruguay

El Salvador

Brazil

Guatemala

Mexico

Argentina

Colombia

Peru

Bolivia

Dominic Rep.

Venezuela

Quality of Infrastructure(Between1 e 7. GCR 2010-2011 )

Source: ABDIB and World Economic Forum – Global Competitiveness Report 2010-2011

19

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2003 2004 2005 2006 2007 2008 2009

Investments in Infrastructure(R$ million)

Oil & Gas Energy Transport Telecommunications Sanitation

Market Expectations

Source: ABDIB

Investment guide 

20

2011 ‐ 2022

BRAZIL IS GOING TO NEED INVESTMENTS OF R$ 2 TRILLION BY 2022

HIGHWAYS • Investment estimate:  R$ 200 billion •More than 12,636 km in new highways 

RAILWAYS Investment estimate: R$ 130 billion29,000 km in new railways 

PORTS AND WATERWAYS Investment estimate: R$ 60 billion A total of 133 new construction, expansion and renovation works need to be made. 

AIR TRANSPORTATIONInvestment estimate: R$ 20 billionA 41% expansion of current capacity is needed.  

Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro

Investiment Guide

21

POWER Investment estimate: R$ 385 billion Requirement of 3,500 megawatts per year 

OIL AND GAS Investment estimate: R$ 955 billionPre‐salt oil is President Dilma administration’s greater promise 

TELECOMMUNICATIONS Investment estimate: R$ 100 billion The goal is a 233% increase in the number of homes accessing the Web 

2011 ‐ 2022

SANITATION Investment estimate: R$ 206 billion The lack of water and sanitation services affects 18% of Brazilian people 

Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro

Market Share

22

JMalucelli Seguradora: market leadership, profitable operation, low claims ratio, fast credit analysis, client selection, and attractiveness for coinsurance companies.

JMalucelli Resseguradora: first in the market share ranking, with 41.8% of the financial risk group.

JMalucelli Seguradora: market leadership, profitable operation, low claims ratio, fast credit analysis, client selection, and attractiveness for coinsurance companies.

JMalucelli Resseguradora: first in the market share ranking, with 41.8% of the financial risk group.

29.2% 37.0% 42.3%50.4% 43.0% 32.6% 40.4%

187,768 167,452 192,364

346,089

499,334

694,787 726,400

2004 2005 2006 2007 2008 2009 2010

Market share - direct premiums (R$ thousand)

JMalucelli Seguradora Market

Source: SUSEP

Financial Performance

23

29.249

37.799

30,0%28,9%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2009 2010

JMalucelli Seguradora

∆YoY = 29.2%

Net Income (R$ thousand)

14.091

15.810

17,3%16,4%

8,0%

9,0%

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

16,0%

17,0%

18,0%

9.000

10.000

11.000

12.000

13.000

14.000

15.000

16.000

17.000

2009 2010

JMalucelli Resseguradora

ROAE

∆YoY = 12.2%

62.0%

93.0%

47.0%

82.0%

Monthly evolution of composite rate and expanded composite rate*

JM Seguradora Market Expanded JM Seguradora Expanded Market

24

Combined Rate

Source: SUSEP

According to SISCORP data, JMalucelli Seguradora had the 2nd better combined ratio in the whole Brazilian insurance market in 2009 and 2010.According to SISCORP data, JMalucelli Seguradora had the 2nd better combined ratio in the whole Brazilian insurance market in 2009 and 2010.

* For the market, all insurance products included. For JMalucelli Seguradora, surety bond and DPVAT includedMonthly evolution of combined ratio and amplified combined ratio*

Amplified JM Seguradora Amplified Market

Operational Performance (Insurance)

25

JM Seguradora has a specific area for occurrences which mediates and manages all claims received from customers. Its principle is legal defense of the involved parties and a wide opportunity for discussion on controversial matters.

JM Seguradora has a specific area for occurrences which mediates and manages all claims received from customers. Its principle is legal defense of the involved parties and a wide opportunity for discussion on controversial matters.

38,273

76,155

29,950

16,146

76,004

92,701

76,418

253 4,025 2,3726,457 9,056 7,960 9,073

2004 2005 2006 2007 2008 2009 2010

Insurance Claims(R$ thousand)

Market JMalucelli Seguradora

Source: SUSEP

26

Investment Policy

Profitability: financial income of R$ 12.8 million in 4Q10. Profitability: financial income of R$ 12.8 million in 4Q10.

79,9

301,120,4

431,029,6

18,5%

69,9%

6,9%

Bonds Fixed income Equities Multimarket Total

Portfolio of financial investments(R$ million)

72,6%

14,2%

13,2%

CDB = R$ 42,8

DPGE = R$ 218,7

Others = R$ 39,6

2.6%

9.7%

3.0%

10.6%

4Q10 2010

Profitability of investments

CDI Investments JM Seguros

Investor Relations 

27

This material may include estimates and forward-looking statements. These estimates and forward-looking statements are mostly based on current expectations andprojections of future events and financial trends which impact or may impact our business. Many important factors may have a negative impact on Banco Parana Banco’sresults, such as those anticipated in our estimates and forward-looking statements. These factors include, but are not limited to, domestic and international economicconditions, fiscal, foreign exchange and monetary policies, increased competition in the consigned credit sector, Banco Parana Banco’s funding capacity to support itsoperations, and changes in Central Bank’s standards. The words “believe”, “can”, “may”, “aims”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and other similarwords are intended to identify estimates and projections. The considerations on estimates and forward-looking statements include information concerning results andprojections, strategy, competitive position, sector circumstances, growth opportunities, future regulation and competition impacts.

These estimates and projections refer only to the date that they were expressed, and no undertaking has been made to publicly update or revise them resulting from newinformation, future events or any other factors. Due to the risks and uncertainties set forth herein, the estimates and forward-looking statements in this material many notmaterialize. Considering these limitations, the shareholders and investors should not make any decisions based on the estimates, projections and forward-lookingstatements contained herein.

Marianne C. BaggioIR Analyst

Phone: (55 41) 3351-9645

Mauricio N. G. Fanganiello IR Manager

Phone: (55 41) 3351-9765

Cristiano Malucelli IR Officer

Phone: (55 41) 3351-9950

e-mail: ri@paranabanco.com.brIR Website: www.paranabanco.com.br/ri