3q07 presentation

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Presentation

1H07

Apresentação dos Resultados do 3T07

9 de novembro de 2007

3Q07 Results

November 9, 2007

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The Bank's financial statements and consolidated financial statements herein are presented on a pro forma basis, encompassing the financial statements of the Bank, its subsidiaries, the Credit Receivables Investment Funds (FIDC) and insurer J. Malucelli Seguradora.

They were prepared based on the accounting practices pursuant toBrazilian Corporate Law, and associated with the regulations andinstructions issued by the National Monetary Council (“CMN”), the Brazilian Central Bank (“BACEN”) and the Brazilian securities and exchange commission Comissão de Valores Mobiliários ("CVM") (“BR GAAP”).

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Summary

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101112131415161718192021

General OverviewOperational HighlightsOrigination EvolutionFranchise and innovative sales channelAlternative Channel’s EvolutionTotal Assets and EquityPeriod Result Composition (R$ x 1,000)Financial Highlights SummaryCredit PortfolioFinancial Revenue and Loan AssignmentsCredit Portfolio QualityLoan AssignmentFunding Structure (R$ x 1,000)Operating Income and ExpensesJ. Malucelli Seguradora – PerformanceRatingsCorporate GovernanceShare Price Evolution

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General Overview

Niche Bank, specialized in payroll deductible loans

Focus in profitability and a low-risk customer base (civil servants, private-sector employees and retirement beneficiaries, and pensioners under the INSS social security system)

Deductible loans agreements with 665 state and private entities

4 sales channels: brokers, call center, franchises and regionals

On August 31, 2007, an integral bank subsidiary acquired 800,622common shares and 2,570,418 preferred shares issued by the J.M. Seguradora, owning 55% of the Company and for that concluding the first stage of the contract to remerge the company.

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Operational Highlights

New Originations (R$ mm) Number of Agreements

159.7 258.5

446.2

637.7

3Q06 3Q07 9M06 9M07

435

665

3Q06 3Q07

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Origination Evolution(R$ X 1,000)

-

50.000

100.000

150.000

200.000

250.000

300.000

350.000

2005 2006 2007

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

195%

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Franchise: an innovativesales channel

Original target of 75 franchises at the end 2007 and 210 franchises at the end of 2008

Initial activities in march 2007

Franchise channel acquires up to 51 operating units

Exclusivity and long-term agreements

Low initial investment and low operating costs

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Alternative Channel´s Evolution

The Alternative Channels are composed as follows:

RegionalCall CenterFranchises

21%

79%

3Q073%

97%

3Q06

Alternative channels

Correspondent 

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Total Assets and Equity

Total Assets Shareholders’ Equity

888,290

1,792,443

3Q06 3Q07

211,755

781,243

3Q06 3Q07

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Period Result Composition(R$ x 1,000)

3Q07

9M0721,212 21,384

172

Net Income Non-Recurring IPO expenses

Net Adjusted Income

40,507 53,220

77,725 12,713

24,505

Net Income Non-Recurring IPO expenses

Net Adjusted Income

Deferred Comissions Adjustment

Period Result

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Financial HighlightsSummary

3Q06 3Q07 Variation3Q06 x 3Q07 9M06 9M07 Variation

9M06 x 9M07

Net Adjusted Income 7,806 21,212 171.7% 38,701 40,507 4.7%

Deferred Commission Result 24,505

Period Result 7,806 21,384 173.9% 38,701 77,725 100.8%

Annualized Return over average Equity (%) 19.7% 19.0% -0.70% 29.5% 22.1% -7,4p.p

Annualized Intermediary margin of financial operations (%)

16.0% 12.5% -3.5p.p. 57.0% 37.9% -19.1p.p.

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Credit Portfolio(R$1,000)

Total Credit Portfolio, including credit assignments to the FDIC’s, grewup to R$ 1,080.5 million in the 3Q07.

687.5 

932.5 

1,080.5 

3Q06 2Q07 3Q07

15.9%

57.2%

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Financial Revenue andLoan Assignments

Income from Financial Operations (R$ x 1,000)3Q06 3Q07 Variation 3Q06 x

3Q079M06 9M07 Variation 9M06 x

9M07Loans 52,885 69,216 30.9% 159,474 195,049 22.3%

Loan Assigment Evolution (R$ x1,000)3Q06 3Q07 % Variation 9M06 9M07 % Variation

Loan Origination 159,672 258,543 61.9% 446,211 637,721 42.9%Loan Assignments (Banks) 39,090 0 258,816 16,986 -93.4%Loan Assignments (FIDC's) 90,327 48,073 -51.7% 90,327 240,998 Loans Acquired 0 43,619 0 43,619 % Loan Assignments (Banks) 24.48% 0.00% 58.00% 2.66%

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Credit PortfolioQuality

High quality and stability

D‐H6%

AA‐C94%

3Q06 D‐H5.5%

AA‐C95.5%

3Q07

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Loan Assignment

20.9%

11.6%

1st Month End of Contract% N

et In

com

e ov

er F

inan

cial

Inc

ome

Operation with Loan Assignment

Reduction of 45% 

0.4%

19.9%

1st Month End of Contract% N

et I

ncom

e ov

er F

inan

cial

Inco

me

Operation retained in Balance Sheet

Results grow 45x

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Funding Structure(R$ x 1,000)

468,236

713,540

52,009

53,850

59,800

69,575

129,954

48,073

0

0

3Q06 3Q07

Open market Medium term notes Credit Assignments Total

885,038

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Operating Income(Expenses)

Operating Income (Expenses) 3Q06 3Q07 Variation

3Q06 x 3Q079M06 9M07 Variation

9M06 x 9M07

Personnel expenses (3.581) (5.205) 45,4% (9.974) (13.710) 37,5%

Other administrativeexpenses (24.146) (24.798) 2,7% (59.514) (81.849) 37,5%

Other Expenses (9.910) (9.379) -5,4% (25.000) (23.587) -5,7%

IPO expenses - (172) - (12.713)

Commissions Expenses(Loan Origination) (14.236) (15.247) 7,1% (34.514) (45.549) 32,0%

Other operating expenses 344 5.436 1480,2% 6.316 7.869 24,6%

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J. Malucelli Seguradora –Performance

Premiums Written Shareholders’ Equity

28.239.5

84.1

121.2

3Q06 3Q07 9M06 9M07

58.8

69.1

3Q06 3Q07

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Ratings

Rating / Classificação Rating / ClassificaçãoÍndice / Classificação Rating

Baixo Risco de Crédito Baixo Risco para médio prazo Baixo Risco de Crédito Baixo Risco de CréditoJulho de 2007 Junho de 2007 Junho de 2007 Junho de 2007

brBBB+ 11,67 brA- A-

Rating Ratiing / Ranking Rating

Low Credit Risk Low Risk – Medium Term Low Credit Risk Low Credit Risk

July 2007 June 2007 June 2007 June 2007

brBBB+ 11.67 brA- A-

Ratiing / Ranking

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Corporate Governance

The Board of Directors of Paraná Banco authorized a stock buyback program, in accordance with CVM Instruction 202, seeking to create value for shareholders by optimizing its capital structure. The program provides for the purchase of up to 4,156,481 preferred shares until October 15, 2008.

Paraná Banco hired Banco UBS Pactual to act as market maker for its preferred shares for a period of six months, automatically renewable, with the objective of increasing liquidity in the shares.

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Share Price Evolution(R$)

10

11

12

13

14

15

16

0

2000

4000

6000

8000

10000

12000

3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 2-Oct 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov

Pric

e pe

r Sha

re

Volu

me

of N

egoc

iate

d Sh

ares

(x 1

,000

)

Paraná Banco

VOLUME Paraná Banco

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IR Contact

Luis César MiaraCFO and Investor Relations Officer

Ricardo Rosanova GarciaIR Manager

Maurício N. G. FanganielloIR Coordinator

Phone: (55 41) 3351-9907 / 3351-9961

e-mail: ir@paranabanco.com.br

IR Website: www.paranabanco.com.br/ir“This document may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Paraná Banco as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment, the ability of Paraná Banco obtain funding for its operations, and amendments to Central Bank regulations.

The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report.