Earnings release
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Management Report June 30, 2025 0 Financial Statements June 2025
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1 PRESS RELEASE........................................................................................................................................................................................................3 PERFORMANCE ANALISYS................................................................................................................................................................................... ... 9 MANAGEMENT REPORT........................................................................................................................................................................................24 BALANCE SHEETS ..................................................................................................................................................................................................37 INCOME STATEMENT ............................................................................................................................................................................................39 STATEMENT OF COMPREHENSIVE INCOME ...........................................................................................................................................................40 STATEMENT OF CHANGES IN EQUITY ....................................................................................................................................................................41 CASH FLOW STATEMENTS .....................................................................................................................................................................................42 STATEMENT OF ADDED VALUE ..............................................................................................................................................................................43 NOTES TO THE FINANCIAL STATEMENTS ...............................................................................................................................................................44 NOTE 01 – OPERATIONS ................................ ................................ ................................ ................................ ................................ ................................ ................................ .. 44 NOTE 02 – PRESENTATION OF INTERIM FINANCIAL STATEMENTS ................................ ................................ ................................ ................................ ................................ . 44 NOTE 03 – SUMMARY OF MAIN ACCOUNTING POLICIES ................................ ................................ ................................ ................................ ................................ .................. 53 NOTE 04 – KEY ACCOUNTING ESTIMATES AND JUDGMENTS ................................ ................................ ................................ ................................ ................................ .......... 65 NOTE 05 – CORPORATE CAPITAL AND RISK MANAGEMENT ................................ ................................ ................................ ................................ ................................ ............. 67 NOTE 06 – CASH AND CASH EQUIVALENT ................................ ................................ ................................ ................................ ................................ ................................ ....... 86 NOTE 07 – COMPULSORY DEPOSITS IN CENTRAL BANK OF BRAZIL ................................ ................................ ................................ ................................ ................................ 86 NOTE 08 – INTERBANK INVESTMENTS ................................ ................................ ................................ ................................ ................................ ................................ ............ 86 NOTE 09 – FINANCIAL ASSETS AT AMORTIZED COST – SECURITIES ................................ ................................ ................................ ................................ ............................... 87 NOTE 10 – LOANS AND LEASES ................................ ................................ ................................ ................................ ................................ ................................ ....................... 88 NOTE 11 – OTHER FINANCIAL ASSETS ................................ ................................ ................................ ................................ ................................ ................................ ............. 93 NOTE 12 – FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – SECURITIES ................................ ................................ ................................ . 95 NOTE 13 –FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS – SECURITIES ................................ ................................ ................................ ............................. 95 NOTE 14 – OTHER ASSETS ................................ ................................ ................................ ................................ ................................ ................................ ............................... 96 NOTE 15 – DEFERRED TAXES AND CONTRIBUTIONS ................................ ................................ ................................ ................................ ................................ ....................... 96 NOTE 16 –INVESTMENTS IN ASSOCIATED AND SUBSIDIARY COMPANIES ................................ ................................ ................................ ................................ ....................... 97 NOTE 17 – PROPERTY AND EQUIPMENT ................................ ................................ ................................ ................................ ................................ ................................ .......... 98 NOTE 18 – INTANGIBLE ASSETS ................................ ................................ ................................ ................................ ................................ ................................ ...................... 99 NOTE 19 – FINANCIAL LIABILITIES AT AMORTIZED COST ................................ ................................ ................................ ................................ ................................ ............. 100 NOTE 20 – OTHER FINANCIAL LIABILITIES ................................ ................................ ................................ ................................ ................................ ................................ ... 101 NOTE 21 – FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS ................................ ................................ ................................ ................................ .......... 101 NOTE 22 – DERIVATIVE FINANCIAL INSTRUMENTS ................................ ................................ ................................ ................................ ................................ ....................... 101 NOTE 23 – PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS ................................ ................................ ................................ ................................ .......... 103 NOTE 24 – OTHER LIABILITIES ................................ ................................ ................................ ................................ ................................ ................................ ..................... 105 NOTE 25 – EQUITY ................................ ................................ ................................ ................................ ................................ ................................ ................................ ........ 105 NOTE 26 – REVENUES FROM FEES AND SERVICES ................................ ................................ ................................ ................................ ................................ ........................ 107 NOTE 27 – PERSONNEL EXPENSES ................................ ................................ ................................ ................................ ................................ ................................ ............... 107 NOTE 28 – OTHER ADMINISTRATIVE EXPENSES ................................ ................................ ................................ ................................ ................................ ........................... 107 NOTE 29 – OTHER OPERATING INCOME ................................ ................................ ................................ ................................ ................................ ................................ ....... 109 NOTE 30 – OTHER OPERATING EXPENSES ................................ ................................ ................................ ................................ ................................ ................................ ... 109 NOTE 31 – INCOME TAX AND SOCIAL CONTRIBUTION ................................ ................................ ................................ ................................ ................................ ................... 109 NOTE 32 – EARNINGS PER SHARE ................................ ................................ ................................ ................................ ................................ ................................ ................ 110 NOTE 33 – LONG-TERM POST -EMPLOYMENT BENEFIT OBLIGATIONS TO EMPLOYEES ................................ ................................ ................................ ................................ 110 NOTE 34 – COMMITMENTS AND OTHER RELEVANT INFORMATION ................................ ................................ ................................ ................................ .............................. 122 NOTE 35 – TRANSACTIONS WITH RELATED PARTIES ................................ ................................ ................................ ................................ ................................ ................... 122 NOTE 36 – OTHER INFORMATION ................................ ................................ ................................ ................................ ................................ ................................ ................. 124 NOTE 37 – SUBSEQUENT EVENT ................................ ................................ ................................ ................................ ................................ ................................ .................. 124 INDEPENDENT AUDITOR’S REPORT ..................................................................................................................................................................... 125
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Press Release June 30, 2025 1 PRESS RELEASE We summarize below Banrisul's performance in the first half and second quarter of 2025. Business Environment The global economic landscape in 2025 has been marked by heightened uncertainty, particularly due to the impacts of new U.S. tariff policies. In this context, global economic growth is expected to slow to 2.5% in 2025 (vs. 2.9% in 2024). The U.S., China, and the eurozone are showing signs of moderation. On the other hand, Argentina is delivering a positive surprise, with growth above 4%, which may benefit Brazilian exports, especially those from the State of Rio Grande do Sul. In Brazil, the economy has shown resilience despite expectations of some slowdown, with a forecast to grow by 2.1% in 2025 (vs. 3.4% in 2024). Elevated inflation, driven by the 2024 currency depreciation, fiscal stimulus, and the resilience of domestic economic activity and the labor market, led the Central Bank of Brazil (BACEN) to adopt a restrictive monetary policy, setting the Selic rate at 15.0% per year as of June 2025. In Rio Grande do Sul, GDP grew by 1.3% in the first quarter of 2025 compared to the previous quarter, a performance in line with the national average. Year over year, state GDP grew by 1.8%, below the 2.9% growth of the Brazilian economy. The credit market posted year -over-year growth of 15.7%, outperforming the national average of 11.8%. Our loan portfolio reached R$64,018.3 million in June 2025, featuring commercial loans, long -term financing, and foreign exchange. In the Individuals segment, in line with market trends, we began offering CLT payroll - deductible loans, expanding our presenc e in the payroll loan segment. In the Corporate segment, in 2Q2025, the Conta Única (a revolving and recurring credit line managed by the business owner) remained our flagship product for companies. Additionally, we implemented a new flexible and multi -collateral working capital facility for companies of all sizes, offering the option of payment in installments or in a single installment, and allowing the combination of different collateral types in the same transaction. Our foreign exchange portfolio has d elivered outstanding performance, driven by expanded commercial efforts, reflected in a significant 51.1% increase compared to June 2024 and 9.7% compared to December 2024. In April 2025, Moody’s Local Brasil upgraded Banrisul’s issuer and long -term deposit ratings from A+.br to AA- .br and reaffirmed the short -term deposit rating at ML A -1.br, with a stable outlook. Fitch Ratings affirmed Banrisul’s long-term and national long -term ratings at BB – and AA+(bra), respectively, with a stable outlook, and upgraded the bank’s business profile score from bb – to bb and its bank score from b to b+, as a result of growth in total operating income and the Bank’s resilience in the face of recent stress periods.
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Press Release June 30, 2025 2 Economic and Financial Indicators Main Income Statement Accounts - R$ Million 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Financial Margin 3,183.0 2,906.0 1,640.7 1,542.3 1,494.7 9.5% 9.8% 6.4% Net Losses Related to Credit Risk (519.1) (471.9) (184.4) (334.7) (185.6) 10.0% -0.7% -44.9% Income from Services 1,046.9 1,028.8 525.5 521.5 511.5 1.8% 2.7% 0.8% Administrative Expenses (2,359.5) (2,255.2) (1,200.1) (1,159.4) (1,141.1) 4.6% 5.2% 3.5% Civil, Tax, and Labor Provisions (254.5) (264.8) (131.7) (122.9) (143.1) -3.9% -8.0% 7.2% Other Operating Income / (Expenses) (34.4) (133.1) 1.7 (36.1) (79.7) -74.1% -102.1% -104.7% Net Income 619.2 434.9 377.7 241.5 247.3 42.4% 52.7% 56.4% Main Balance Sheet Accounts – R$ Million Jun 2025 Jun 2024 Jun 2025 Mar 2025 Dec 2024 Jun2025/ Jun2024 Jun2025/ Dec2024 Jun2025/ Mar2025 Total Assets 156,054.2 137,345.2 156,054.2 151,262.2 147,417.9 13.6% 5.9% 3.2% Treasury (1) 46,811.2 42,752.4 46,811.2 41,619.6 39,801.8 9.5% 17.6% 12.5% Loan Transactions (2) 64,018.3 54,717.0 64,018.3 63,467.6 62,058.9 17.0% 3.2% 0.9% Provision for Losses Related to Credit Risk (3,537.2) (2,606.6) (3,537.2) (3,328.0) (2,600.5) 35.7% 36.0% 6.3% Past Due Loans (3) 1,387.7 1,266.2 1,387.7 1,388.2 1,072.0 9.6% 29.5% 0.0% Funds Raised and Managed 123,982.0 110,961.3 123,982.0 118,274.2 116,129.2 11.7% 6.8% 4.8% Equity 10,648.9 10,099.5 10,648.9 10,413.2 10,413.7 5.4% 2.3% 2.3% Prudential Conglomerate Reference Equity 11,759.4 10,911.9 11,759.4 11,582.5 11,564.6 7.8% 1.7% 1.5% Key Stock Market Information - R$ Million 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Interest on Equity / Dividends (4) 246.4 171.1 156.4 90.0 50.0 44.0% 29.2% 73.8% Market Capitalization 4.731.8 4.641.9 4.731.8 4.392.4 4.641.9 1.9% 1.9% 7.7% Book Value per Share (R$) 26.04 24.69 26.04 25.46 24.69 5.5% 5.5% 2.3% Average Price per Share (R$) (5) 10.83 12.77 11.37 10.29 11.66 -15.2% -2.4% 10.5% Earnings per Share (R$) 1.51 1.06 0.92 0.59 0.60 43.0% 52.7% 56.4% Financial Indexes 1H2025 1H2024 2Q2025 1Q2025 2Q2024 Annualized Adjusted ROAA (6) 0.8% 0.7% 1.0% 0.6% 0.7% Annualized Adjusted ROAE (7) 11.8% 8.8% 14.3% 9.3% 9.9% Adjusted Efficiency Ratio (8) 63.4% 64.9% 63.4% 64.8% 64.9% Delinquency Rate (9) 2.17% 2.31% 2.17% 2.17% 2.31% Coverage Ratio (10) 254.9% 205.9% 254.9% 239.7% 205.9% Provisioning Ratio (11) 5.5% 4.8% 5.5% 5.2% 4.8% Basel Ratio (Prudential Conglomerate) 16.2% 18.5% 16.2% 15.8% 18.5% Structural Indicators Jun 2025 Jun 2024 Jun 2025 Mar 2025 Dec 2024 Branches 498 492 498 493 492 Service Stations 115 125 115 116 118 Electronic Service Stations 313 395 313 311 360 Employees 9,266 9,411 9,266 9,364 9,462 Economic Indicators 1H2025 1H2024 2Q2025 1Q2025 2Q2024 Selic Rate (YTD) 6.42% 5.22% 3.33% 2.99% 2.53% Exchange Rate Variation (%) -9.02% 10.04% -3.48% -5.74% 8.21% IGP-M (General Market Price Index) -0.95% 1.09% -1.92% 0.99% 2.02% IPCA (Extended Consumer Price Index) 2.99% 2.48% 0.93% 2.04% 1.05% (1) Includes short-term interbank investments, and cash and cash equivalents and deducts repurchase agreements. (2) As of 2025, it includes debentures, under the scope of the implementation of the new COSIF 1.5 and CMN Resolution 4,966/21, from January 2025 onwards, the origination cost is included, referring to banking correspondents. (3) In 2024, refers to past due loans > 90 days. Starting in 2025, to maintain comparability, past due loans between 90 and 360 days will be considered. (4) Interest on equity and dividends paid, credited, and/or provisioned (before income tax withholding). (5) Prices already adjusted for payouts, including dividends. (6) Net income over average total assets. (7) Net income over average equity. (8) (Personnel expenses + other administrative expenses) / (financial margin + income from services + (other operating income - other operating expenses - civil, tax, and labor expenses)). Considers income and expenses in the last 12 months. (9) In 2024, refers to past due loans > 90 days/Loan Transactions. Starting in 2025, to maintain comparability, past due loans between 90 and 360 days/Loan Transactions will be considered. (10) In 2024, refers to the provision for loan losses / past due loans > 90 days. Starting in 2025, it refers to the provision for loan losses related to credit risk / past due loans between 90 and 360 days. (11) In 2024, refers to the provision for loan losses / Loan Transactions. Starting in 2025, it refers to the provision for loan losses related to credit risk / Loan Transactions.
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Press Release June 30, 2025 3 Financial Highlights Net income reached R$619.2 million in 1H2025, up by 42.4% or R$184.3 million from the net income reported in 1H2024, mainly due to: (i) the increase in financial margin, (ii) net losses related to credit risk, (iii) higher income from services, (iv) the moderate increase in administrative expenses, (v) favorable result from other operating income and expenses, and (vi) lower flow of expenses with labor provisions and (vii) subsequent tax effect. Compared to 1Q2025, net income increased by 56.4% or R$136.2 million in 2Q2025, mainly due to (i) higher financial margin, (ii) reduction of net losses related to credit risk, (iii) virtually flat income from services, (iv) moderate increase in administrative expenses, (v) positive result from other operating income, net of other operating expenses, (vi) higher expenses with labor, tax, and civil provisions, and (vii) the subsequent tax effect. The financial margin reported in 1H2025 totaled R$3,183.0 million , up by 9.5% or R$276.9 million over 1H2024, mainly due to a stronger increase in interest income against the increase recorded for interest expenses, in a scenario with rising effective Selic Rates and a higher volume of loan transactions. The annualized financial margin on interest -earning assets reported in 1H2025, of 4. 60%, fell by 0. 38 p.p. from 1H2024. In 2025, with the adoption of CMN Resolution 4,966/21, the provision for expected losses model replaced CMN Resolution 2,682/99, changing from the rating model “AA” to “H” to the Stages model: Stage 1, Stage 2, and Stage 3. Expected losses related to credit risk, net of recoveries of operations written off as losses, increased by 10.0% or R$47.1 million in 1H2025 over 1H2024, mainly reflecting the increase in the loan portfolio and overdue operations. Compared to 2Q2024, expected losses related to credit ri sk remained virtually flat in 2Q2025. Compared to 1Q2025 — a period marked by an increase in overdue operations and loan transactions, which led to higher provisioning — 2Q2025 showed a decrease of 44.9%, or R$150.4 million, in which there was relative stability in the credit portfolio and overdue transactions. Income from services increased by 1.8% or R$18.2 million in 1H2025 over 1H2024, and by 2.7% or R$13.9 million in the comparison between 2Q2025 and 2Q2024, mainly due to the rise in income from credit card and fund management, partially offset by the reduction in income from consortium management. Compared to 1Q2025, income from services remained virtually flat in 2Q2025. Breakdown of Income from Services - R$ Million (1) Includes, mainly, collection services and income/loss from foreign exchange services. Administrative expenses, comprised of personnel and other administrative expenses, increased by 4.6% or R$104.2 million in 1H2025 over the figure reported in 1H2024, rose by 5.2% or R$59.1 million in the comparison between 2Q2025 and 2Q2024, and increased by 3.5% or R$40.8 million over 1Q2025. 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Funds under Management 63.7 54.5 33.4 30.3 27.1 16.8% 23.3% 10.2% Income from Services - Banrisul Pagamentos 266.6 277.5 131.8 134.9 139.7 -3.9% -5.7% -2.3% Credit Card 120.5 104.9 61.5 59.0 51.8 14.9% 18.8% 4.2% Collection and Custody Services 27.5 25.8 13.8 13.8 13.8 6.6% -0.3% -0.2% Insurance Brokerage Commissions 149.4 142.4 75.0 74.4 72.9 4.9% 2.9% 0.8% Checking Account Services 303.7 302.8 151.5 152.3 149.5 0.3% 1.3% -0.5% Consortium Management 62.4 71.1 31.4 31.0 34.7 -12.3% -9.6% 1.4% Other Revenues (1) 53.0 49.7 27.2 25.9 22.0 6.7% 23.3% 5.0% Total 1,046.9 1,028.8 525.5 521.5 511.5 1.8% 2.7% 0.8%
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Press Release June 30, 2025 4 Personnel expenses increased by 6.3% or R$77.5 million in 1H2025 over the same period in 2024, mainly driven by collective bargaining agreements. Othe r administrative expenses rose by 2.6% or R$26.7 million in the period, especially due to higher amortization and depreciation expenses, following the adoption of CMN Resolution 4,975/21, which unified the classification of leases as either operating or finance leases for lessees, resulting in a corresponding reduction in rental and condominium expenses; increases in maintenance and asset preservation, as well as communication expenses. In the comparison between 2Q2025 and 1Q2025, personnel expenses rose by 5.5%, or R$35.1 million, reflecting the impact of the vacation period, which was more concentrated in 1Q2025; other administrative expenses increased by 1.1%, or R$5.7 million, mainly due to higher expenses with specialized technical services and communications, partially offset by lower expenses with rent, condominiums, and maintenance and asset preservation. Breakdown of Administrative Expenses - R$ Million The efficiency ratio reached 63.4% in the last twelve months through June 2025, compared to 64.9% in the last twelve months through June 2024, mainly due to the 12.2% increase in financial margin, the 4.2% growth in income from services, the unfavorable performance of other operating expenses, net of other operating income, and the 9.7% increase in expenses with civil, tax, and labor provisions, compared to the 6.5% increase in administrative expenses. Operational Highlights Total assets reached R$156,054.2 million in June 2025, increasing by 13.6% over June 2024, by 5.9% compared to December 2024, and by 3.2% over March 2025 . The main components of assets and liabilities will be discussed below. Treasury investments (marketable securities, interbank liquidity investments, and cash and cash equivalents) totaled R$70,510.2 million in June 2025. Excluding repurchase agreements, treasury investments increased by R$4,058.8 million over June 2024 and by R$7,009.4 million over December 2024, especially due to the increase in term deposits and proceeds from bank notes, within a scenario of directing resources to the loan portfolio , and the compliance with compulsory payments in Bacen. Compared to March 202 5, the increase came to R$5,191.6 million, mainly reflecting the growth in term deposits and proceeds from bank notes, in the context of compliance with compulsory payments in Bacen. Banrisul’s loan portfolio reached R$64,018.3 million in June 2025, adjusted for origination expenses related to payroll-deductible loan transactions contracted as of January 2025. Loan transactions increased by 17.0% or R$9,301.3 million over June 2024, mainly due to growth in commercial loans, long -term financing, rural loans, and foreign exchange portfolio. Compared to December 2024, the increase was 3.2 % or R$1,959.3 million, mainly influenced by the growth of commercial loans , long-term financing, and the foreign exchange portfolio, partially offset by a decline in rural loans. Compared to March 2025, loan transactions remained virtually flat. 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 2H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Personnel Expenses 1,314.1 1,236.6 674.6 639.5 630.6 6.3% 7.0% 5.5% Other Administrative Expenses 1,045.4 1,018.6 525.5 519.8 510.5 2.6% 3.0% 1.1% Amortization and Depreciation 199.6 155.9 99.6 100.0 79.6 28.0% 25.1% -0.4% Water, Electricity, and Gas 16.7 15.0 6.9 9.8 5.9 11.3% 17.3% -30.1% Rentals and Condominiums 27.6 80.0 11.3 16.3 41.2 -65.5% -72.5% -30.3% Communications 37.2 27.1 19.6 17.6 13.8 37.5% 42.6% 11.3% Asset Maintenance and Preservation 57.0 37.9 26.8 30.2 17.0 50.4% 57.7% -11.1% Materials 5.4 4.9 3.0 2.4 2.4 9.0% 23.1% 25.9% Data Processing 128.4 133.5 65.3 63.1 75.5 -3.8% -13.5% 3.6% Advertising, Promotions, and Marketing 79.0 80.6 38.3 40.7 35.9 -2.0% 6.6% -6.1% Third-Party Services 241.5 253.8 124.8 116.7 126.2 -4.9% -1.1% 7.0% Specialized Technical Services 105.8 96.6 58.7 47.0 44.2 9.5% 32.8% 24.8% Surveillance, Security, and Transp. of Values 69.1 65.6 36.1 33.0 32.9 5.3% 9.8% 9.3% Financial System Services 21.0 22.0 10.8 10.3 11.2 -4.5% -3.9% 5.1% Other Expenses 57.1 45.7 24.3 32.8 24.6 24.8% -1.4% -26.0% Total 2,359.5 2,255.2 1,200.1 1,159.4 1,141.1 4.6% 5.2% 3.5%
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Press Release June 30, 2025 5 Statement of the Loan Portfolio - R$ Million Jun 2025 Total Loan (%) Mar 2025 Dec 2024 Jun 2024 Jun 2025/ Jun 2024 Jun 2025/ Dec 2024 Jun 2025/ Mar 2025 Foreign Exchange 2,320.6 3.6% 2,209.7 2,116.0 1,535.4 51.1% 9.7% 5.0% Commercial (1) 39,248.5 61.3% 38,606.4 37,677.8 34,085.7 15.1% 4.2% 1.7% Individuals 29,246.8 45.7% 29,154.5 28,579.1 25,828.1 13.2% 2.3% 0.3% Payroll-Deductible Loans 20,630.7 32.2% 21,060.0 20,882.4 19,266.4 7.1% -1.2% -2.0% Others 8,616.1 13.5% 8,094.5 7,696.7 6,561.7 31.3% 11.9% 6.4% Corporate Clients 10,001.7 15.6% 9,451.9 9,098.7 8,257.6 21.1% 9.9% 5.8% Working Capital 6,136.0 9.6% 5,825.2 5,999.0 6,440.9 -4.7% 2.3% 5.3% Others 3,865.7 6.0% 3,626.7 3,099.7 1,816.7 112.8% 24.7% 6.6% Long-Term Financing 2,365.7 3.7% 2,216.3 1,854.1 433.0 446.4% 27.6% 6.7% Real Estate 6,552.1 10.2% 6,577.2 6,549.1 6,197.8 5.7% 0.0% -0.4% Rural 13,372.2 20.9% 13,698.7 13,701.2 12,311.8 8.6% -2.4% -2.4% Others 159.2 0.2% 159.4 160.7 153.3 3.8% -0.9% -0.1% Total 64,018.3 100.0% 63,467.6 62,058.9 54,717.0 17.0% 3.2% 0.9% (1) Includes origination cost through banking correspondents; Includes Leases. The volume of loan assets granted in 1H2025, of R$26, 583.0 million, increased by 12.0% or R$2, 846.2 million over 1H2024, mainly reflecting the increase in the volume of commercial loans granted to corporate clients. The volume of loans granted in the comparison between 2Q2025 and 2Q2024 increased by 5.7% or R$ 729.9 million and 2.3% or R$304.1 million over 1Q2025, mainly due to the increase in the volume of commercial loans granted to corporate clients, partially offset by lower volumes granted in the rural loan portfolio and individuals. Breakdown of Loans Granted by Financing Line – R$ Million 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Foreign Exchange 1,673.1 1,198.6 938.4 734.7 649.7 39.6% 44.4% 27.7% Commercial (1) 21,361.6 18,795.9 10,966.8 10,394.8 9,946.3 13.7% 10.3% 5.5% Individuals 12,455.8 12,623.9 6,124.5 6,331.2 6,605.6 -1.3% -7.3% -3.3% Corporate Clients 8,905.9 6,172.1 4,842.3 4,063.6 3,340.7 44.3% 44.9% 19.2% Long-Term Financing 380.7 117.8 116.8 263.8 76.9 223.0% 51.9% -55.7% Real Estate 385.8 612.0 168.5 217.3 297.5 -37.0% -43.4% -22.5% Rural 2,781.9 3,012.6 1,253.1 1,528.8 1,743.3 -7.7% -28.1% -18.0% Total 26,583.0 23,736.9 13,443.6 13,139.5 12,713.6 12.0% 5.7% 2.3% (1) The volume granted does not include amounts to be billed/debited from credit and debit cards. The delinquency rate represents the volume of loan transactions overdue by more than 90 days through 2024 and, as of 2025, for comparability purposes, those overdue between 90 and 360 days, regarding the total volume of active loan transactions. The delinquency indicator for June 2025, 2.17% of loan transactions, fell by 0.14 p.p. in twelve months, increased by 0.44 p.p. in six months, and remained virtually flat over three months. The balance of loan transactions overdue between 90 and 360 days increased by 9.6% over twelve months, by 29.5% over six months, and remained virtually flat over three months. The provision for losses related to credit risk rose by 35.7% in twelve months, by 36.0% in six months, and by 6.3% over March 2025, reflecting the increase in past due operations and the loan portfolio, as well as the adoption of criteria established by CMN Resolution 4,966/21, w hich replaced the provision for expected losses model (CMN Resolution 2,682/99), moving from the rating model “AA” to “H” to the Stages model: Stage 1, Stage 2, and Stage 3, as of 2025. Loan Quality Indicators (%) Jun 2025 Mar 2025 Dec 2024 Jun 2024 Delinquency Rate (1) 2.17 2.17% 1.73% 2.31% Coverage Ratio (2) 254.9% 239.7% 242.6% 205.9% Provisioning Ratio (3) 5.5% 5.2% 4.2% 4.8% (1) In 2024, refers to past due loans > 90 days/Loan Transactions. Starting in 2025, to maintain comparability, past due loans between 90 and 360 days/Loan Transactions will be considered. (2) In 2024, refers to the provision for loan losses / past due loans > 90 days. Starting in 2025, refers to the provision fo r loan losses related to credit risk / past due loans between 90 and 360 days. (3) In 2024, refers to the provision for loan losses / Loan Transactions. Starting in 2025, refers to the provision for loan losses related to credit risk / Loan Transactions.
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Press Release June 30, 2025 6 Funds raised and managed , consisting of deposits, proceeds from bank notes, subordinated debt, and managed third -party funds, came to R$123,982.0 million in June 2025, up by R$13,020.7 million over June 2024, by R$7,852.7 million over December 2024, and by R$5,707.8 million over March 2025, mainly due to the rise in term deposits and proceeds from bank notes. Funds Raised and Managed - R$ Million Jun 2025 Mar 2025 Dec 2024 Jun 2024 Jun 2025/ Jun 2024 Jun 2025/ Dec 2024 Jun 2025/ Mar 2025 Deposits 92,711.9 88,421.1 88,194.9 85,066.9 9.0% 5.1% 4.9% Proceeds from Bank Notes (1) 9,742.8 8,359.1 7,358.3 6,826.6 42.7% 32.4% 16.6% Subordinated Debt (2) 1,663.3 1,723.4 1,880.7 1,683.3 -1.2% -11.6% -3.5% Total Funds Raised 104,118.0 98,503.6 97,433.9 93,576.8 11.3% 6.9% 5.7% Funds Managed 19,864.0 19,770.6 18,695.4 17,384.5 14.3% 6.3% 0.5% Total Funds Raised and Managed 123,982.0 118,274.2 116,129.2 110,961.3 11.7% 6.8% 4.8% (1) Bank Notes, Subordinated Bank Notes, and Real Estate and Agribusiness Letters of Credit. (2) Refers to the subordinated foreign fundraising. Equity reached R$10,648.9 million in June 2025, up by 5.4% or R$549.4 million over June 2024, and by 2.3% or R$235.2 million over December 2024, mainly due to the recognition of results, payments of interest on equity and accrued dividends, the re -measuring of actuarial liabilities of post -employment benefits (CPC 33 - (R1)), and the initial adoption of requirements established in CMN Resolutions 4,966/21 and 4,975/21. Compared to March 2025, Equity grew by 2.3% or R$235.7 million, mainly due to the recogni tion of results, payment of interest on equity, and accrued dividends and the remeasurement of actuarial liabilities, relating to post - employment benefits (CPC33(R1)). In terms of its own taxes and contributions, Banrisul collected and provisioned R$449.9 million in June 2025. Withheld and transferred taxes, levied directly on financial intermediation and other payments, totaled R$459.4 million in the period. Guidance The outlook disclosed in the Guidance on December 31, 2024 is maintained, as shown below. 2025 Projected Total Loan Portfolio 6% to 10% Financial Margin (1) 7% to 12% Credit Cost (2) 1.2% to 2.2% Administrative Expenses (3) 7% to 11% (1) Excluding Income from Recovery of Loans Written -Off as Losses. (2) Expenses with Provision for Loan Losses net of Income from Recovery of Loans Written -Off as Losses. (3) Administrative Expenses excluding fee commissions on banking correspondents. Such information reflects the wishes and expectations of the Company’s management. The words “anticipates”, “wants”, “expects”, “plans”, “predicts”, “projects”, “aims”, and the like identify that they mainly involve known and unknown risks. Known risks inc lude uncertainties not limited to the impact of price and product competitiveness, acceptance of products on the market, service transactions from the Company and its competitors, regulatory approval, currency fluctuations, changes in product mix, and other risks described in the Company’s reports. This Guidance is up to date with current data and Banrisul may or may not update it upon new and/or future events. Porto Alegre, August 14, 2025.
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Financial Performance Analysis June 30, 2025 9 PERFORMANCE ANALYSIS We present the Performance Analysis of Banco do Estado do Rio Grande do Sul S.A. for the first half and second quarter of 2025. Net Income In 1H2025, net income reached R$619.2 million, up by 42.4% or R$184.3 million from the net income reported in 1H2024, mainly reflecting (i) the increase in financial margin, of R$276.9 million; (ii) expected net loan losses related to credit risk, of R$47.1 million; (iii) higher income from services, of R$18.2 million; (iv) moderate increase in administrative expenses, of R$104.2 million; (v) a favorable result in other operating income, net of other operating exp enses, in the amount of R$98.7 million; (vi) lower flow of expenses with labor, tax, and civil provisions of R$10.2 million; and (vii) the consequent tax effect. In 2Q2025, net income reached R$377.7 million, up by 52.7% or R$130.4 million from the net income reported in 2Q2024, mainly reflecting (i) the increase in financial margin, of R$145.9 million; (ii) higher income from services, of R$13.9 million; (iii) moderate increase in administrative expenses, of R$59.1 million; (iv) a favorable result in other operating income, net of other operating expenses, in the amount of R$81.3 million; (v) lower flow of expenses with labor, tax, and civil provisions of R$11.4 million; and (vi) the consequent tax effect. Compared to 1Q2025, net income increased by 56.4% or R$136.2 million in 2Q2025, mainly due to (i) the increase in financial margin of R$98.3 million; (ii) reduction in expected net losses related to credit risk of R$150.4 million; (iii) virtually flat inco me from services of R$4.0 million; (iv) moderate increase in administrative expenses of R$40.8 million; (v) favorable result from other operating income, net of other operating expenses, in the amount of R$37.8 million; (vi) higher flow of expenses with la bor, tax, and civil provisions of R$8.8 million; and (vii) the subsequent tax effect. Analytical Financial Margin The analytical financial margin presented was calculated based on the average balances of assets and liabilities, which were calculated based on the closing balances of the months making up the respective periods under analysis. The following table describes the income-producing assets and onerous liabilities, the corresponding amounts of income from financial intermediation on assets and financial intermediation expenses on liabilities, as well as the actual average rates. Income from clients with loan transactions overdue by more than 90 days, which are considered problem credits, is only recognized as income when it is actually received; until 2024, income from loan transactions ceased to be recognized for operations overdue by more than 60 days. The aver age balances of short -term interbank investments and funds invested or raised in the interbank market correspond to the redemption amount, excluding income or expenses to be recognized that are equivalent to future periods. The average balances of deposits , open market funding, and obligations arising from loans and transfers include charges that are mandatory up to the reporting date of the Financial Statements, recognized on a pro rata die basis. As for expenses linked to these lines, those related to deposits include expenses resulting from contributions made to the Credit Guarantee Fund - FGC. The margin on interest -earning assets decreased by 0. 38 p.p. compared to 1H2025 and 1H2024, reaching 4.60% in 1H2025. The average interest-earning assets increased by 18.5% and onerous liabilities increased by 20.0%.
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Financial Performance Analysis June 30, 2025 10 The exchange rate variation and the rise in the Selic Rate had an impact on the rates of interest-earning assets and onerous liabilities in the period. Besides the economy’s basic interest rates on which financial transactions are referenced, the structure of assets and liabilities, as well as the agreed -upon terms and interest, are determining factors when calculating the margin in every reporting period. As for the structure, among the interest -earning assets, we highlight: a) treasury transactions, accounting for 47.8% of these assets, increasing by 0.7 p.p. between 1H2025 and 1H2024; and b) loan transactions, accounting for 43.0% of these assets, increasing by 0. 2 p.p. in the period. As for onerous liabilities, we highlight: a) term deposits, accounting for 50.5% of these liabilities in 1H2025, reducing by 0.9 p.p. over 1H2024; b) open market funding, accounting for 19.3% of onerous liabilities, increasin g by 1.7 p.p. in the period; c) savings deposits, accounting for 8.8% of onerous liabilities, decreasing by 1.7 p.p. in the period; d) court and administrative deposits, accounting for 7.0% of these liabilities, reducing by 0.4 p.p.; and e) proceeds from b ank notes, accounting for 6.8% of onerous liabilities, increasing by 0.3 p.p. in the period. As of the first quarter of 2025, income and expenses were recognized under the criteria established by CMN Resolution 4,966/21 and BCB Resolution 352/23. In previous periods, income and expenses were measured at the criteria in force at the time. Analytical Financial Margin - R$ Million and % 1H2025 1H2024 Average Balance Income/ Expense Average Rate Average Balance Income/ Expense Average Rate Interest-Earning Assets 138.244,6 10.047,7 7.27% 116,634.6 8,003.8 6.86% Loan Transactions (1) 59.489,7 5.460,1 9.18% 49,967.4 4,499.4 9.00% Treasury (2) 66.074,7 4.064,5 6.15% 54,952.4 2,715.7 4.94% Derivative Financial Instruments (3) 199,1 (276,2) -138.74% 30.7 205.8 669.89% Compulsory Deposits 12.481,1 799,3 6.40% 11,684.1 582.9 4.99% Non-Interest-Earning Assets 14.046,0 14,621.2 Total Assets 152.290,6 10.047,7 6.60% 131,255.8 8,003.8 6.10% Onerous Liabilities 127.332,8 (6.864,8) 5.39% 106,126.5 (5,097.8) 4.80% Interbank Deposits 1.893,2 (71,8) 3.79% 2,165.2 (72.5) 3.35% Savings Deposits 11.161,6 (421,0) 3.77% 11,180.8 (365.8) 3.27% Term Deposits 64.311,3 (3.574,1) 5.56% 54,566.0 (2,407.1) 4.41% Court and Administrative Deposits 8.854,1 (511,8) 5.78% 7,815.2 (391.9) 5.01% Open Market Funding 24.589,4 (1.552,3) 6.31% 18,674.1 (966.2) 5.17% Proceeds from Bank Notes (4) 8.714,3 (518,4) 5.95% 6,936.9 (339.2) 4.89% Subordinated Debt 1.726,5 160,5 -9.30% 1,538.5 (280.0) 18.20% Obligations arising from Domestic Loans and Transfers 3.669,6 (108,8) 2.97% 1,998.6 (57.5) 2.88% Obligations arising from Loans and Foreign Currency Transfers 2.412,8 (267,1) 11.07% 1,251.2 (217.7) 17.40% Non-Onerous Liabilities 14.459,5 15,255.9 Equity 10.498,4 9,873.4 Liabilities and Equity 152.290,6 (6.864,8) 4.51% 131,255.8 (5,097.8) 3.88% Spread 2.09% 2.21% Financial Margin 3.183,0 2.30% 2,906.0 2.49% Annualized Financial Margin 4.60% 4.98% (1) Includes advances on foreign exchange contracts, leasing operations, and other credits characterized as loans. The leasing operations are shown by the net present value of lease agreements. (2) Includes short-term interbank investments. (3) Includes swap positions, DI future contracts, and foreign exchange portfolio contracts. (4) Includes bank notes, subordinated financial bills, real estate letters of credit, and agribusiness letters of credit. Variations in interest income and expenses: volume and rates The financial margin in 1H2025, totaling R$3,18 3.0million, grew by 9.5% or R$276.9 million over 1H2024, reflecting the increase in interest income, which had a substantially higher volume than the interest expenses. The growth in revenues is related to the increase in the average volume of interest -earning assets, especially in loan transactions and treasury investments, and the rise in average rates, mainly for treasury investments, influenced by the increase in the effective Selic rate. The rise in expens es is mainly related to the increase in the average volume of onerous liabilities, especially term deposits and open market funding, as well as the growth in average rates, particularly those of term deposits and open market funding, impacted by the rise i n the effective Selic rate.
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Financial Performance Analysis June 30, 2025 11 Variations in volume and interest rates were calculated based on the changes in average balances in the period and the variations in average interest rates, including exchange rate variations on interest -earning assets and onerous liabilities. The interest rate variation was calculated by the interest rate fluctuation in the period multiplied by the average interest -earning assets or average onerous liabilities in the second period. The change in volume was calculated as the difference between the average b alance multiplied by the rate of the most recent period and the previous one. The following table presents the allocation of variations in interest income and expenses by the change in the average volume of interest-earning assets and onerous liabilities and the variation in the average interest rate over these assets and liabilities, comparing: (i) 1H2025 vs. 1H2024. Variations in Interest Income and Expenses: Volumes and Rates - R$ Million (1) Includes advances on foreign exchange contracts, leasing operations, and other credits characterized as loans. The leasing operations are shown by the net present value of lease agreements. (2) Includes swap positions, DI future contracts, and foreign exchange portfolio contracts. Banrisul uses derivative financia l instruments to mitigate currency fluctuation risks arising from international funding and variations in the CDI rate for operations linked to fixed-rate Treasury Bills. In this sense, the variations presented should be analyzed together with the associated assets and liabilities. (3) Includes bank notes, subordinated financial bills, real estate letters of credit, and agribusiness letters of credit. Treasury Results The result of treasury investments (sum of income from securities - TVM and short -term interbank investments) for 1H2025 increased by 52.5%, or R$1,399.4 million, compared to 1H2024; by 62.2%, or R$852.1 million, in the comparison between 2Q2025 and 2Q2024; and by 20.4%, or R$376.2 million, compared to 1Q2025, mainly reflecting the increase in balance and the rise in the effective Selic rate. 1H2025/1H2024 Increase / Decrease Due to the Variation in: Average Volume Average Rate Net Variation Interest-Earning Assets 1,537.1 506.8 2,044.0 Loan Transactions (1) 872.5 88.2 960.7 Treasury 610.5 738.3 1,348.8 Derivative Financial Instruments (2) 12.1 (494.2) (482.0) Compulsory Deposits 41.9 174.5 216.4 Onerous Liabilities (1,124.9) (642.1) (1,767.1) Interbank Deposits 9.7 (9.0) 0.6 Savings Deposits 0.6 (55.9) (55.3) Term Deposits (475.4) (691.7) (1.167.1) Court and Administrative Deposits (55.8) (64.0) (119.8) Open Market Funding (345.8) (240.3) (586.1) Proceeds from Bank Notes (3) (97.1) (82.1) (179.2) Subordinated Debt (30.4) 470.9 440.5 Obligations arising from Domestic Loans and Transfers (49.5) (1.8) (51.3) Obligations arising from Loans of Transfers in Foreign Currency (81.2) 31.8 (49.4) Financial Margin 412.2 (135.2) 276.9
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Financial Performance Analysis June 30, 2025 12 Income from Compulsory Investments The result of compulsory investments in 1H2025 totaled R$796.6 million, up by 37.2%, or R$216.0 million, compared to 1H2024. In 2Q2025, the amount reached R$428.3 million, a 50.0% increase, or R$142.9 million, compared to 2Q2024; mainly reflecting the increase in balances from compulsory deposits linked to term deposits, due especially to the higher balances and the rise in the eff ective Selic rate, partially offset by the decline in income from compulsory deposits linked to savings deposits, in light of the release of reserve requirements on savings deposits through June 2025 (BCB Resolution 379/2024). Compared to 1Q2025, the result of compulsory investments in 2Q2025 increased by 16.3%, or R$60.1 million, mainly due to the rise in income from compulsory deposits linked to term deposits, reflecting higher balances and the increase in the effective Selic rate. Income from Loan Transactions Income from loan transactions in 1H2025, which include income from leasing and other loans (from 2025 onwards, the costs of originating credit through banking correspondents are also accounted for, and debenture revenues are included, as part of the implementation of the new COSIF 1.5 and CMN Resolution 4,966/21), increased by 20.3%, or R$886.9 million, compared to 1H2024, by 23.4%, or R$516.9 million, in the comparison between 2Q2025 and 2Q2024, and by 7.6%, or R$192.6 million, compared to 1Q2025; mainly driven by the increase in revenues from commercial loans and rural loans. Income from Commercial Loans - Individuals and Corporate Clients Income from commercial loans for individuals accounted for 74.8% of the total income from commercial loans in 1H2025, increasing by 11.7%, or R$307.7 million, compared to 1H2024, and by 12.3%, or R$164.7 million, in the comparison between 2Q2025 and 2Q2024; mainly driven by higher income from revolving/installment credit cards, personal loans, overdraft fees, and the rural unified account, impacted by the increase in balances of these products, partially offset by the decline in income from payroll -deductible loans. Compared to 1Q2025, income from commercial loans for individuals in 2Q2025 increased by 4.2%, or R$60.8 million, mainly due to higher income from personal loans, revolving/installment credit cards, and income from debt renegotiations, reflecting the increase in the balance of these products. Income from commercial loans for corporate clients accounted for 25.2% of total income from commercial loans in 1H2025 and increased by 27.4%, or R$212.5 million, compared to 1H2024, and by 40.7%, or R$155.1 million, in the comparison between 2Q2025 and 2Q 2024; mainly driven by higher income from single account operations, which began in 2Q2024, and from the business account, partially offset by the decline in income from working capital , due to the decrease in the balance of credit lines with guarantee fun ds. Compared to 1Q2025, income from commercial loans for corporate clients in 2Q2025 increased by 18.6%, or R$84.2 million, mainly reflecting higher income from single account operations, working capital loans, and overdraft revenues, driven by the increase in the balances of these products, as well as higher income from the business account due to an increase in rates. Income from commercial loans increased by 15.3% or R$520.2 million in 1H2025 over 1H2024, by 18.6% or R$319.8 million in the comparison between 2Q2025 and 2Q2024, and by 7.7% or R$145.0 million compared to 1Q2025.
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Financial Performance Analysis June 30, 2025 13 Income from Commercial Loans - Individuals and Corporate Clients - R$ Million (1) Credit line started in the third quarter of 2024. (2) Credit line started in the second quarter of 2024. (3) Includes debt renegotiation. Market Funding Expenses Market funding expenses increased by 34.6% or R$1,666.2 million in 1H2025 over 1H2024 and by 41.4% or R$1,031.1 million in the comparison between 2Q2025 and 2Q2024, reflecting, in both trajectories, higher expenses with deposits, repurchase agreements, and proceeds from bank notes, impacted by the higher balance and the effective Selic rate , which references most of the funding; mitigated by the decrease in expenses with subordinated debt, due to the exchange rate variation and mark -to-market of the obligation. Compared to 1Q2025, market funding expenses increased by 18.7%, or R$554.7 million, in 2Q2025, mainly impacted by higher expenses with deposits and bank notes, due to the increase in balances and the effective Selic rate, as well as the rise in repurchase agreements. Market Funding Expenses - R$ Million (1) Includes expenses related to FGC. (2) Includes Subordinated Financial Bills. Funding Cost The funding cost was calculated based on the average balance of funds raised, which are linked to the corresponding amounts of effective funding expenses, thus generating the average rates. Deposits and funds from acceptance and instrument issues were grouped into funding products under liabilities. In 2Q2025, the average funding price, of 2.72%, increased over 2Q2024 and 1Q2025, in line with the performance of the effective Selic Rate. The average cost indicator in relation to the effective Selic rate reached 81.60% in 2Q2025, down by 0.16 p.p. from 2Q2024, and by 0.82 p.p. from 1Q2025. The average cost of term deposits – whose balance accounts represent 65.1% of the lines shown in the table below – reached 86.48% of the effective Selic rate in 2Q2025, up by 1.17 p.p. over 2Q2024 and down by 0.24 p.p. from 1Q2025. 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Individuals 2,938.7 2,631.0 1,499.8 1,439.0 1,335.1 11.7% 12.3% 4.2% Acquisition of Goods 27.0 27.7 13.6 13.3 13.6 -2.6% 0.5% 2.2% Revolving/Installment Payment Credit Card 257.9 132.6 138.9 119.0 55.7 94.5% 149.3% 16.7% Overdraft 303.6 266.5 155.9 147.7 127.0 13.9% 22.7% 5.5% Rural Single Account (1) 34.0 - 19.6 14.5 - 100% 100% 35.2% Personal Loans 438.3 336.3 230.3 208.0 182.8 30.3% 26.0% 10.7% Payroll-Deductible Loans 1,754.6 1,781.3 858.2 896.4 911.8 -1.5% -5.9% -4.3% Others (3) 123.4 86.7 83.4 40.0 44.2 41.2% 88.5% 108.3% Corporate Clients 988.9 776.4 536.5 455.9 381.4 27.4% 40.7% 18.6% Acquisition of Goods 23.0 21.4 11.5 11.5 10.3 7.5% 11.8% -0.4% Revolving/Installment Payment Credit Card 13.7 8.1 7.7 6.0 4.3 70.3% 78.1% 28.3% Working Capital 488.4 540.6 252.2 236.2 265.4 -9.7% -5.0% 6.8% Corporate Account 185.6 151.1 99.1 86.4 74.5 22.8% 33.1% 14.7% Single Account (2) 213.2 2.0 119.9 93.3 2.0 10501.1% 5861.0% 28.5% Discount on Receivables 18.6 6.2 10.2 8.3 2.6 200.3% 298.4% 22.2% Others (3) 46.4 47.0 35.9 14.0 22.3 -2.1% 59.5% 240.4% Total 3,927.6 3,407.4 2,036.3 1,894.9 1,716.5 15.3% 18.6% 7.7% 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Deposits (1) 4,578.7 3,237.2 2,441.5 2,137.2 1,652.1 41.4% 47.8% 14.2% Repurchase Agreements 1,552.3 966.2 848.8 703.5 479.5 60.7% 77.0% 20.6% Proceeds from Bank Notes (2) 518.4 339.2 291.6 226.8 166.9 52.8% 74.7% 28.6% Subordinated Debt Result (160.5) 280.0 (60.1) (100.5) 192.2 -157.3% -131.3% -40.2% Total 6,488.8 4,822.6 3,521.8 2,967.1 2,490.7 34.6% 41.4% 18.7%
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Financial Performance Analysis June 30, 2025 14 Funding Cost - R$ Million and % (1) Average balances based on the final balances for the months composing the analyzed periods. (2) Includes Subordinated Financial Bills. Net loan losses related to credit risk In 2025, with the adoption of CMN Resolution 4,966/21, the provision for expected losses model replaced CMN Resolution 2,682/99, changing from the rating model “AA” to “H” to the Stages model: Stage 1, Stage 2, and Stage 3. Net loan losses related to credit risk , net of recoveries of operations written-off as losses, totaled R$519.1 million in 1H2025, increasing by 10.0% or R$47.1 million over 1H2024, mainly reflecting the increase in overdue loans and loan transactions. Net loan losses related to credit risk totaled R$184.4 million in 2Q2025, remaining virtually flat compared to 2Q2024; and compared to 1Q2025 — a period marked by an increase in overdue operations and loan transactions, which led to higher provisioning — there was a 44.9% decrease, or R$150.4 million, in 2Q2025, driven by th e loan portfolio and overdue operations remaining virtually flat. Income from Services Income from services in 1H2025 increased by 1.8%, or R$18.2 million, compared to 1H2024, and by 2.7%, or R$13.9 million, in the comparison between 2Q2025 and 2Q2024. In both comparisons, the growth was mainly driven by higher income from credit card, fund management, and brokerage and insurance commissions, partially offset by the decline in service income from Banrisul Pagamentos. Compared to 1Q2025, income from services in 2Q2025 remained virtually flat, with an increase of R$4.0 million, mainly driven by higher income from fund management and credit card. Breakdown of Income from Services - R$ Million (1) Includes, mainly, income from guarantees, and revenues from collection services. 2Q2025 1Q2025 2Q2024 Average Balance (1) Accum. Expenses Average Cost Average Balance (1) Accum. Expenses Average Cost Average Balance (1) Accum. Expenses Average Cost Term Deposits 65,536.8 (1,886.1) 2.88% 63,069.7 (1,636.4) 2.59% 55,909.5 (1,206.4) 2.16% Savings Deposits 11,132.3 (214.0) 1.92% 11,190.8 (207.1) 1.85% 11,258.3 (189.1) 1.68% Demand Deposits 3,122.8 - 0.00% 3,034.4 - 0.00% 3,605.6 - 0.00% Interbank Deposits 2,025.3 (39.1) 1.93% 1,761.0 (32.7) 1.86% 2,054.5 (35.3) 1.72% Court and Adm. Deposits 9,226.9 (276.1) 2.99% 8,481.3 (235.7) 2.78% 7,958.1 (197.9) 2.49% Other Deposits 251.1 (0.0) 0.01% 252.0 (0.0) 0.01% 265.4 (0.0) 0.00% Financial Bills (2) 2,939.4 (99.2) 3.38% 2,032.1 (62.3) 3.07% 1,363.2 (38.2) 2.81% Real Estate Letters of Credit 2,984.9 (88.6) 2.97% 2,680.4 (72.4) 2.70% 1,897.7 (43.7) 2.30% Agribusiness Letters of Credit 3,424.8 (103.8) 3.03% 3,367.0 (92.2) 2.74% 3,650.8 (84.9) 2.33% FGC Contribution Expenses - (26.2) - - (25.3) - - (23.5) - Total Average Balance / Total Expenses 100,644.2 (2,733.1) 2.72% 95,868.8 (2,364.0) 2.47% 87,962.9 (1,819.0) 2.07% Selic Rate 3.33% 2.99% 2.53% Average Cost / Selic Rate 81.60% 82.42% 81.76% Term Deposit Cost / Selic Rate 86.48% 86.72% 85.31% 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Funds under Management 63.7 54.5 33.4 30.3 27.1 16.8% 23.3% 10.2% Income from Services - Banrisul Pagamentos 266.6 277.5 131.8 134.9 139.7 -3.9% -5.7% -2.3% Credit Card 120.5 104.9 61.5 59.0 51.8 14.9% 18.8% 4.2% Collection and Custody Services 27.5 25.8 13.8 13.8 13.8 6.6% -0.3% -0.2% Insurance Brokerage Commissions 149.4 142.4 75.0 74.4 72.9 4.9% 2.9% 0.8% Checking Account Services 303.7 302.8 151.5 152.3 149.5 0.3% 1.3% -0.5% Consortium Management 62.4 71.1 31.4 31.0 34.7 -12.3% -9.6% 1.4% Other Revenues (1) 53.0 49.7 27.2 25.9 22.0 6.7% 23.3% 5.0% Total 1,046.9 1,028.8 525.5 521.5 511.5 1.8% 2.7% 0.8%
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Financial Performance Analysis June 30, 2025 15 Administrative Expenses Administrative expenses increased by 4.6% or R$104.2 million in 1H2025 over 1H2024, by 5.2% or R$59.1 million in the comparison between 2Q2025 and 2Q2024, and increased by 3.5% or R$40.8 million over 1Q2025. Personnel expenses in 1H2025 increased by 6.3%, or R$77.5 million, compared to 1H2024, and by 7.0%, or R$44.0 million, in the comparison between 2Q2025 and 2Q2024, mainly driven by collective bargaining agreements. Compared to 1Q2025, personnel expenses ro se by 5.5%, or R$35.1 million in 2Q2025, reflecting the impact of the vacation period, which was more concentrated in 1Q2025. Other administrative expenses in 1H2025 increased by 2.6%, or R$26.7 million, compared to 1H2024, and by 3.0%, or R$15.1 million, in the comparison between 2Q2025 and 2Q2024, mainly influenced by higher expenses with amortization and depreciation, due to the change in the regulation, CMN Resolution 4,975/21, which unified the classification of leases as either operating or finance leases for lessees and the subsequent reduction in rental and condominium expenses; and the increase in expenses with maintenance and conservation of assets, communications, and specialized technical services. Compared to 1Q2025, other administrative expenses in 2Q2025 increased by 1.1%, or R$5.7 million, mainly reflecting higher expenses with specialized technical services and third -party services, partially offset by lower expen ses with rental and condominium, maintenance and conservation of assets, water, electricity, and gas expenses, and advertising, promotions, and marketing expenses. Breakdown of Administrative Expenses - R$ Million 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Personnel Expenses 1,314.1 1,236.6 674.6 639.5 630.6 6.3% 7.0% 5.5% Direct Compensation, Benefits, and Social Security Charges 1,175.9 1,112.0 596.4 579.5 566.5 5.7% 5.3% 2.9% Training 2.6 2.9 2.2 0.4 1.5 -9.9% 48.0% 411.9% Profit Sharing 135.6 121.7 76.0 59.6 62.6 11.5% 21.3% 27.5% Other Administrative Expenses 1,045.4 1,018.6 525.5 519.8 510.5 2.6% 3.0% 1.1% Amortization and Depreciation 199.6 155.9 99.6 100.0 79.6 28.0% 25.1% -0.4% Water, Electricity, and Gas 16.7 15.0 6.9 9.8 5.9 11.3% 17.3% -30.1% Rentals and Condominiums 27.6 80.0 11.3 16.3 41.2 -65.5% -72.5% -30.3% Communications 37.2 27.1 19.6 17.6 13.8 37.5% 42.6% 11.3% Asset Maintenance and Preservation 57.0 37.9 26.8 30.2 17.0 50.4% 57.7% -11.1% Materials 5.4 4.9 3.0 2.4 2.4 9.0% 23.1% 25.9% Data Processing 128.4 133.5 65.3 63.1 75.5 -3.8% -13.5% 3.6% Advertising, Promotions and Marketing 79.0 80.6 38.3 40.7 35.9 -2.0% 6.6% -6.1% Third-Party Services 241.5 253.8 124.8 116.7 126.2 -4.9% -1.1% 7.0% Specialized Technical Services 105.8 96.6 58.7 47.0 44.2 9.5% 32.8% 24.8% Surveillance, Security, and Cash-In-Transit Services 69.1 65.6 36.1 33.0 32.9 5.3% 9.8% 9.3% Financial System Services 21.0 22.0 10.8 10.3 11.2 -4.5% -3.9% 5.1% Other Expenses 57.1 45.7 24.3 32.8 24.6 24.8% -1.4% -26.0% Total 2,359.5 2,255.2 1,200.1 1,159.4 1,141.1 4.6% 5.2% 3.5%
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Financial Performance Analysis June 30, 2025 16 Efficiency Ratio The efficiency ratio reached 63.4% in LTM until June 2025, compared to 64.9% in LTM until June 2024, mainly reflecting the 12.2% increase in financial margin, the 4.2% growth in income from services, and the 9.7% increase in civil, tax, and labor provision expenses, compared to the 6.5% increase in administrative expenses. Other Operating Income and Expenses Other operating income totaled R$337.3 million in 1H2025, increasing by 15.7% or R$45.8 million compared to 1H2024; in 2Q2025, it amounted to R$201.3 million, reflecting an increase of 29.8% or R$46.2 million compared to 2Q2024, and 48.0% or R$65.3 million compared to 1Q2025, mainly driven by the increase in income from the reversal of other operating provisions, and from the actuarial obligation adjustments on post-employment benefits (CPC 33 (R1)). Other operating expenses, totaling R$371.8 million in 1H2025, decreased by 12.5% or R$52.9 million compared to 1H2024; and in 2Q2025, amounted to R$199.6 million, representing a 15.0% reduction or R$35.1 million compared to 2Q2024; with emphasis, in both periods, on the increase in expenses related to discounts granted in renegotiations and INSS fees. Compared to 1Q2025, other expenses increased by 15.9% or R$27.4 million in 2Q2025, mainly reflecting the increase in expenses with discounts granted in renego tiations. EQUITY PERFORMANCE Treasury Treasury investments (marketable securities, short -term interbank investments, and cash and cash equivalents) totaled R$70,510.2 million in June 2025. Starting in January 2025, the treasury balance is shown net of the provision. Treasury investments less repurchase agreements totaled R$46,811.2 million in June 2025, an increase of 9.5% or R$4,058.8 million over June 2024, and 17.6% or R$7,009.4 million over December 2024, and 12.5% or R$5,191.6 million over March 2025, mainly reflecting the increase in funds from deposits, proceeds from bank notes, directing of resources to the loan portfolio, and compulsory deposits required by BACEN.
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Financial Performance Analysis June 30, 2025 17 Compulsory Deposits with the Central Bank of Brazil (BACEN) The balance of compulsory deposits with BACEN totaled R$12,473.0 million in June 2025, up by 16.1%, or R$1,732.9 million, compared to June 2024, and 6.5%, or R$756.1 million, compared to December 2024; mainly driven by the increase in compulsory deposits o n term deposits, partially offset by the reduction in voluntary deposits, in accordance with BCB Resolution 129/21, and in compulsory deposits on demand deposits. As of June 2025, the collection of compulsory deposits on savings deposits was resumed, follo wing the end of the release period established by BACEN Resolution 379/2024. In June 2025, the balance of compulsory deposits with BACEN increased by 7.3%, or R$852.0 million, compared to March 2025, mainly due to an increase in compulsory deposits on term deposits, and in voluntary deposits. Loan Transactions Banrisul’s loan portfolio reached R$64,018.3 million in June 2025, recording an increase of 17.0%, or R$9,301.3 million, compared to June 2024, mainly driven by growth in commercial loans, long -term financing, rural loans, and the foreign exchange portfolio. Compared to December 2024, the loan portfolio of June 2025 increased by 3.2% or R$1,959.3 million, mainly due to higher commercial loans, long -term financing, and exchange rate operations, partially offset by a decline in rural loans. Compared to March 2025, the loan portfolio of June 2025 remained virtually flat, with an increase of 0.9%, or R$550.6 million, mainly due to growth in commercial loans and long -term financing, partially offset by the decline in rural loans. Breakdown of Loan Transactions - R$ Million Jun 2025 Mar 2025 Dec 2024 Jun 2024 Jun2025/ Jun2024 Jun2025/ Dec2024 Jun2025/ Mar2025 Commercial (1) 39,248.5 38,606.4 37,677.8 34,085.7 15.1% 4.2% 1.7% Real Estate 6,552.1 6,577.2 6,549.1 6,197.8 5.7% 0.0% -0.4% Rural 13,372.2 13,698.7 13,701.2 12,311.8 8.6% -2.4% -2.4% Long-Term Financing 2,365.7 2,216.3 1,854.1 433.0 446.4% 27.6% 6.7% Foreign Exchange 2,320.6 2,209.7 2,116.0 1,535.4 51.1% 9.7% 5.0% Others (2) 159.2 159.4 160.7 153.3 3.8% -0.9% -0.1% Total 64,018.3 63,467.6 62,058.9 54,717.0 17.0% 3.2% 0.9% (1) Includes leasing and origination cost through banking correspondents; (2) Includes Public Sector. Commercial Loans The commercial loan portfolio totaled R$39,248.5 million in June 2025, accounting for 61.3% of the total loan transactions. In June 2025, loans for individuals accounted for 74.5% of the balance of commercial loans, while loans for corporate clients accounted for 25.5% of the balance.
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Financial Performance Analysis June 30, 2025 18 Breakdown of Commercial Loans - Individuals and Corporate Clients - R$ Million (2) Credit line started in the third quarter of 2024. (2) As of 2025, under CMN Resolution 4,966/21, the cost of originating payroll-deductible loan operations will be included in payroll- deductible loans. (3) Credit line started in the second quarter of 2024. (4) Includes debt renegotiation. Commercial loans for individuals, composed of lower risk lines, reached R$29,246.8 million in June 2025, an increase of 13.2% or R$3,418.7 million compared to June 2024, mainly due to higher payroll-deductible loans, personal loans, revolving/installment p ayment credit card, and debt renegotiations. Compared to December 2024, it grew by 2.3%, or R$667.7 million, mainly reflecting the increase in personal loans, debt renegotiations, and revolving/installment payment credit card, partially offset by the reduc tion in payroll -deductible loans. Compared to March 2025, commercial loans for individuals remained virtually flat. Breakdown of Payroll-Deductible Loans - R$ Million Commercial loans for corporate clients totaled R$10,001.7 million in June 2025, increasing by 21.1%, or R$1,744.1 million, compared to June 2024, mainly reflecting the increase in single account operations, whose trade began in 2Q2024, partially offset by lower working capital, due to lower credit lines with guarantee funds. Compared to December 2024 and March 2025, i t increased by 9.9%, or R$903.0 million, and 5.8%, or R$549.8 million, respectively, mainly due to the increase in single account operations and working capital. Specialized Loans Rural loans reached R$13,372.2 million in June 2025, corresponding to 20.9% of the total loan assets, increasing by 8.6% or R$1,060.4 million over June 2024, down by 2.4% or R$329.0 million from December 2024, and by 2.4% or R$326.5 million from March 2025. The real estate loan portfolio reached R$6,552.1 million in June 2025, increasing by 5.7% or R$354.3 million over June 2024, and remained virtually flat compared to December 2024 and March 2025. The real estate loan portfolio accounted for 10.2% of total loan transactions in June 2025. Long-term financings reached R$2,365.7 million in June 2025, up by 446.4% or R$1,932.7 million over June 2024, by 27.6% or R$511.6 million over December 2024, and by 6.7% or R$149.4 million over March 2025. The foreign exchange portfolio reached R$2,320.6 million in June 2025, up by 51.1% or R$785.2 million over June 2024, by 9.7% or R$204.6 million over December 2024, and by 5.0% or R$110.9 million over March 2025. Jun 2025 Mar 2025 Dec 2024 Jun 2024 Jun2025/ Jun2024 Jun2025/ Dec2024 Jun2025/ Mar2025 Individuals 29,246.8 29,154.5 28,579.1 25,828.1 13.2% 2.3% 0.3% Acquisition of Goods 279.7 297.1 325.5 313.5 -10.8% -14.1% -5.8% Credit Card (one-time payment) and Debit 2,541.6 2,507.5 2,713.0 2,545.8 -0.2% -6.3% 1.4% Revolving/Installment Payment Credit Card 763.0 741.3 557.7 286.9 165.9% 36.8% 2.9% Overdraft 671.6 672.8 568.9 425.8 57.7% 18.1% -0.2% Rural Single Account (1) 235.4 192.8 127.3 - - 84.9% 22.1% Personal Loans 3,033.0 2,852.3 2,605.9 2,367.7 28.1% 16.4% 6.3% Payroll-Deductible Loans (2) 20,630.7 21,060.0 20,882.4 19,266.4 7.1% -1.2% -2.0% Others (4) 1,091.9 830.8 798.3 622.1 75.5% 36.8% 31.4% Corporate Clients 10,001.7 9,451.9 9,098.7 8,257.6 21.1% 9.9% 5.8% Acquisition of Goods 239.1 260.1 244.8 260.2 -8.1% -2.3% -8.1% Credit Card (one-time payment) and Debit 215.1 215.3 206.8 153.8 39.9% 4.0% -0.1% Revolving/Installment Payment Credit Card 36.4 34.6 30.2 30.8 18.2% 20.5% 5.3% Working Capital 6,136.0 5,825.2 5,999.0 6,440.9 -4.7% 2.3% 5.3% Corporate Account 353.4 361.2 303.4 354.8 -0.4% 16.5% -2.2% Single Account (3) 2,065.0 1,865.8 1,512.1 179.1 - 36.6% 10.7% Discount on Receivables 171.6 164.1 152.6 25.4 576.9% 12.4% 4.5% Others (4) 785.0 725.5 649.8 812.7 -3.4% 20.8% 8.2% Total 39,248.5 38,606.4 37,677.8 34,085.7 15.1% 4.2% 1.7% Jun 2025 Mar 2025 Dec 2024 Jun2024 Jun2025/ Jun2024 Jun2025/ Dec2024 Jun2025/ Mar2025 Branch Network 14,092.5 14,362.2 14,168.7 12,555.9 12.2% -0.5% -1.9% Banking Correspondents 6,538.2 6,697.7 6,713.7 6,710.5 -2.6% -2.6% -2.4% Total 20,630.7 21,060.0 20,882.4 19,266.4 7.1% -1.2% -2.0%
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Financial Performance Analysis June 30, 2025 19 Loan Breakdown by Company Size Loan transactions for corporate clients totaled R$15,121.2 million in June 2025, accounting for 23.6% of the total loan portfolio. Of the amount of loans destined for corporate clients, 60.3% is allocated to micro, small and medium-sized enterprises. Loan transactions for corporate clients increased by 31.1% or R$3,583.7 million from June 2024, mainly reflecting the growth in loans to large and medium -sized enterprises. Compared to March 2025, loan transactions for corporate clients increased by 1.2% or R$181.3 million, driven by the increase in loans to large- sized enterprises. Loan Breakdown by Company Size - R$ Million Jun 2025 Mar 2025 Jun 2024 Balance Variation Balance % of Corporate Clients % Total Port. Balance % of Corporate Clients % Total Port. Balance % of Corporate Clients % Total Port. Jun2025/ Jun2024 Jun2025/ Mar2025 Large-sized Enterprises 5,997.8 39.7% 9.4% 5,850.4 39.2% 9.2% 4,649.7 40.3% 8.5% 29.0% 2.5% Micro/Small/Medium-sized Enterprises 9,123.5 60.3% 14.3% 9,089.6 60.8% 14.3% 6,887.9 59.7% 12.6% 32.5% 0.4% Medium-sized Enterprises 5,711.1 37.8% 8.9% 5,653.3 37.8% 8.9% 3,891.2 33.7% 7.1% 46.8% 1.0% Small-sized Enterprises 2,849.4 18.8% 4.5% 2,916.7 19.5% 4.6% 2,522.4 21.9% 4.6% 13.0% -2.3% Micro-sized Enterprises 562.9 3.7% 0.9% 519.6 3.5% 0.8% 474.3 4.1% 0.9% 18.7% 8.3% Total 15,121.2 100% 23.6% 14,940.0 100.0% 23.5% 11,537.6 100.0% 21.1% 31.1% 1.2% Size segregated according to average monthly revenue: Microenterprises (up to R$30k); Small enterprises (up to R$400k); Mediu m enterprises (up to R$25M); and Large enterprises (over R$25M or with Total Assets above R$240M). Breakdown of Disbursement by Financing Line The volume of loans granted in 1H2025, in the amount of R$26,583.0 million, increased by 12.0% or R$2,846.2 million over the volume granted in the same period in 2024, mainly reflecting higher volumes in the commercial loan portfolio for corporate clients. In the comparison between 2Q2025 and 2Q2024, the volume of loans granted increased by 5.7%, or R$729.9 million, and by 2.3%, or R$304.1 million, compared to 1Q2025, mainly driven by the growth in commercial loans granted to corporate clients, partially off set by the decline in rural loans and commercial loans for individuals. Breakdown of Loans Granted by Financing Lines - R$ Million (1) The volume granted does not include amounts to be billed/debited from credit and debit cards. 1H2025 1H2024 2Q2025 1Q2025 2Q2024 1H2025/ 1H2024 2Q2025/ 2Q2024 2Q2025/ 1Q2025 Foreign Exchange 1,673.1 1,198.6 938.4 734.7 649.7 39.6% 44.4% 27.7% Commercial (1) 21,361.6 18,795.9 10,966.8 10,394.8 9,946.3 13.7% 10.3% 5.5% Individuals 12,455.8 12,623.9 6,124.5 6,331.2 6,605.6 -1.3% -7.3% -3.3% Corporate Clients 8,905.9 6,172.1 4,842.3 4,063.6 3,340.7 44.3% 44.9% 19.2% Long-Term Financing 380.7 117.8 116.8 263.8 76.9 223.0% 51.9% -55.7% Real Estate 385.8 612.0 168.5 217.3 297.5 -37.0% -43.4% -22.5% Rural 2,781.9 3,012.6 1,253.1 1,528.8 1,743.3 -7.7% -28.1% -18.0% Total 26,583.0 23,736.9 13,443.6 13,139.5 12,713.6 12.0% 5.7% 2.3%
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Financial Performance Analysis June 30, 2025 20 Quality of the Loan Portfolio Provision for Loan Losses Related to Credit Risk The balance of the provision for loan losses related to credit risk reached R$3,537.2 million in June 2025, up by 35.7% or R$930.6 million over June 2024, and by 36.0% or R$936.7 million over December 2024, reflecting the increase in overdue operations and the loan portfolio, as well as the adoption of criteria established by CMN Resolution 4,966/21, w hich replaced the provision for expected losses model (CMN Resolution 2,682/99), moving from the rating model “AA” to “H” to the Stages model: Stage 1, Stage 2, and Stage 3, as of 2025. Compared to March 2025, the balance of the provision for loan losses related to credit risk increased by 6.3%, or R$209.2 million, in a scenario where both overdue operations and the loan portfolio remained virtually flat. Breakdown of Loan Portfolio by Stages Loan Transactions segregated by Stage - R$ Million Loan Portfolio Provision* Stage 1 59,860.0 1,039.3 Stage 2 757.8 158.8 Stage 3 3,400.5 2,194.0 Total 64,018.3 3,392.0 *Refers to the provision for granted loan transactions. Stage 1 loan transactions, which do not show a significant increase in credit risk and have no overdue installments for more than 30 days, under the rules established by CMN Resolution 4,966/21, accounted for 93.5% of the loan portfolio in June 2025. Delinquency Rate The delinquency rate represents the volume of loan transactions overdue by more than 90 days through 2024 and, as of 2025, for comparability purposes, those overdue between 90 and 360 days, regarding the total volume of active loan transactions. The delinquency indicator for June 2025, 2.17% of loan transactions, fell by 0.14 p.p . in twelve months, increased by 0.44 p.p. in six months, and remained virtually flat over three months. The balance of loan transactions overdue between 90 and 360 days reached R$1,387.7 million in June 2025, up by 9.6% or R$121.5 million over June 2024 , by 29.5% or R$315.7 million over December 2024, and remained virtually flat compared to March 2025. Coverage Ratio The coverage ratio consists of the ratio between the allowance for loan losses related to credit risk, a model replaced by CMN Resolution 4,966/21, and the balance of operations overdue by more than 90 days until 2024 and as of 2025, for comparability criteria, those overdue between 90 and 360 days, showing that the provisions can cover def ault. The coverage ratio of overdue operations reached 254.9% in June 2025, an increase of 49.0 p.p. compared to June
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Financial Performance Analysis June 30, 2025 21 2024, 12.3 p.p. compared to December 2024, and 15.2 p.p. compared to March 2025; mainly reflecting, in all periods, the rise in the balance of provision for loan loss related to credit risk in a higher proportion than the increase in overdue loan transactions. Funds Raised and Under Management Funds raised, comprised of deposits, proceeds from bank notes, subordinated debt, and funds managed totaled R$123,982.0 million in June 2025, up by 11.7%, or R$13,020.7 million, in 12 months; and by 6.8%, or R$7,852.7 million, over December 2024; and 4.8%, or R$5,707.8 million over March 2025; mainly influenced by the increase in deposits, proceeds from bank notes, and funds managed, partially offset by the reduction in subordinated debt. The Bank offers both prefixed and post fixed rate products to its cli ents; within these product modalities, 71.4% are floating-rate, with returns linked to the DI. Breakdown of Funds Raised and Under Management by Product Type - R$ Million (1) Includes Subordinated Financial Bills. (2) Refers to the subordinated foreign fundraising. Deposits - deposits increased by 9.0%, or R$7,645.0 million, in June 2025 compared to June 2024; by 5.1%, or R$4,517.0 million, compared to December 2024; and by 4.9%, or R$4,290.8 million, compared to March 2025, mainly reflecting the increase in term deposits. Term deposits, of R$66,546.4 million in June 2025, accounted for 63.9% of funds raised, being the Bank’s main funding instrument. Proceeds from Bank Notes – in June 2025, proceeds from bank notes increased by 42.7%, or R$2,916.2 million in 12 months; by 32.4% or R$2,384.6 million compared to December 2024; and by 16.6% or R$1,383.7 million compared to March 2025, mainly influenced by the higher balance of financial bills and real estate loan. Subordinated Debt - subordinated debt related to June 2025 decreased by 1.2% or R$20.1 million in 12 months, by 11.6% or R$217.4 million from December 2024, and by 3.5% or R$60.1 million from March 2025, mainly reflecting the exchange rate variation and mark-to-market in the periods. Jun 2025 Mar 2025 Dec 2024 Jun 2024 Jun2025/ Jun2024 Jun2025/ Dec2024 Jun2025/ Mar2025 Deposits 92,711.9 88,421.1 88,194.9 85,066.9 9.0% 5.1% 4.9% Demand Deposits 2,812.0 2,841.9 4,387.0 3,879.5 -27.5% -35.9% -1.1% Savings Deposits 11,201.6 11,141.3 11,402.3 11,543.0 -3.0% -1.8% 0.5% Interbank Deposits 2,062.5 1,807.9 1,697.1 2,144.6 -3.8% 21.5% 14.1% Term Deposits 66,546.4 63,828.3 62,213.9 58,840.8 13.1% 7.0% 4.3% Court and Administrative Deposits 9,852.5 8,572.1 8,221.1 8,387.7 17.5% 19.8% 14.9% Other Deposits 236.9 229.7 273.4 271.3 -12.7% -13.4% 3.1% Proceeds from Bank Notes 9,742.8 8,359.1 7,358.3 6,826.6 42.7% 32.4% 16.6% Financial Bills (1) 3,114.6 2,206.3 1,547.8 1,328.6 134.4% 101.2% 41.2% Real Estate Letters of Credit 3,021.1 2,730.6 2,580.6 2,003.8 50.8% 17.1% 10.6% Agribusiness Letters of Credit 3,607.1 3,422.2 3,229.8 3,494.2 3.2% 11.7% 5.4% Subordinated Debt (2) 1,663.3 1,723.4 1,880.7 1,683.3 -1.2% -11.6% -3.5% Total Funds Raised 104,118.0 98,503.6 97,433.9 93,576.8 11.3% 6.9% 5.7% Funds Managed 19,864.0 19,770.6 18,695.4 17,384.5 14.3% 6.3% 0.5% Total Funds Raised and Managed 123,982.0 118,274.2 116,129.2 110,961.3 11.7% 6.8% 4.8%
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Financial Performance Analysis June 30, 2025 22 Equity Banrisul’s equity totaled R$10,648.9 million at the end of June 2025, up by 5.4%, or R$549.4 million, compared to June 2024, and by 2.3%, or R$235.2 million, compared to December 2024, mainly due to the recognition of results, payment of interest on equity and provi sion for dividends, the re -measuring of the actuarial liabilit ies related to post -employment benefits (CPC 33(R1)), and the initial adoption of the requirements established in CMN Resolutions 4,966/21 and 4,975/21. Compared to March 2025, Equity grew by 2.3% or R$235.7 million in June 2025, mainly reflecting the recognition of results, payment of interest on equity, provisioning for dividends, and the re -measuring of actuarial liabilities relating to post -employment benefits (CPC 33 - R1). Basel Ratio The Central Bank of Brazil (BACEN) Resolutions 4,955/21 and 4,958/21 determine that the calculation of regulatory capital and risk -weighted assets be based on the Prudential Conglomerate. The Basel Ratio (BR) measures the ratio between the sum of the Tier I Capital - TIC and the Tier II Capital - TIIC, as well as the total risk-weighted assets calculated on the reference date. We maintain Capital Indexes above the levels defined by the regulator to protect Banrisul in the event of stress scenarios. Capital Management seeks to maximize the use of funds available while ensuring the Institution’s solvency. The Reference Equity ended June 2025 at R$11,759.4 million, against R$10,911.9 million in June 2024, and R$11,582.5 million in March 2025. For this r eporting period, Reference Equity consists of the sum of the Tier I Capital (R$9,639.8 million) and the Tier II Capital (R$2,119.7 million). Reference Equity varied by R$847.6 million compared to June 2024 and by R$177.0 million compared to March 2025. On June 30, 2025, the Basel Ratio reached 16.2%, 5.7 p.p. above the minimum regulatory level with additional core capital (10.5%). In the same period, the Core Capital Ratio and the Tier I Capital Ratio reached equal levels, and ended the quarter at 13.3%, corresponding to 6.3 p.p. and 4.8 p.p., respectively, above the minimum regulatory level. The Basel Ratio decreased by 2.3 p.p. compared to June 2024 and by 0.4 p.p. compared to March 2025. The variations in Reference Equity are as follows. Reference Equity Variations Reference Equity Variation Jun2025 vs. Jun2024 Result after IoE Equity Valuation and Marketable Securities Derivative Adjustments Prudential Adjustments Level II Other Variations 847.6 687.8 59.3 119.0 (135.7) 42.8 74.2 Reference Equity Variation Jun2025 vs. Mar2024 Result after IoE Equity Valuation and Marketable Securities Derivative Adjustments Prudential Adjustments Level II Other Variations 177.0 287.6 (52.3) 6.0 24.2 (41.7) (46.7)
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Financial Performance Analysis June 30, 2025 23 COMPETITIVE MARKET In December 2024 (the latest reference date disclosed by BACEN), Banrisul ranked 12 th in the competitive market in total assets among the banks that make up the National Financial System (SFN); 14 th in equity; 12th in funding (total deposits, open market funding, and obligations arising from loans and transfers); and 6 th in number of branches, according to the ranking disclosed by the Central Bank of Brazil, excluding the BNDES. Competitive Market (1) Base Date: December 2025 and December 2024; latest information disclosed by BACEN. Brazil Rio Grande do Sul State Mar 2025 Mar 2024 Dec 2024 Dec 2023 Demand Deposits 0.9257% 1.0193% 27.2557% 33.8540% Savings Deposits 1.1092% 1.1281% 11.9778% 12.4895% Term Deposits (1) 2.3156% 2.1699% 44.8365% 35.4743% Loan Transactions 0.9872% 0.9129% 18.9524% 20.0631% Number of Branches 3.1421% 2.9580% 34.3545% 32.9140%
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Management Report June 30, 2025 2 MANAGEMENT REPORT We present the Management Report and parent and consolidated Financial Statements of Banco do Estado do Rio Grande do Sul S.A., for the first quarter of 2025, prepared according to the accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Central Bank of Br azil. Economic Landscape The global economic landscape in 2025 has been marked by growing uncertainties, especially due to the impacts of new tariff policies implemented by the United States (US). In this context, global economic growth is expected to slow to 2.5% in 2025 (vs. 2.9 % in 2024). The US, China and the eurozone are showing signs of moderation. On the other hand, Argentina has been a positive surprise, with growth exceeding 4%, which could benefit Brazilian exports, especially those from the Rio Grande do Sul state. In Brazil, the economy proves to be resilient, despite some expectations of a slowdown, with a projected growth of 2.1% in 2025 (vs. 3.4% in 2024). The agricultural sector, driven by a record harvest in the first quarter, is expected to post strong year -over-year growth at the end of 2025. In turn, the industrial sector, which is expected to grow almost 2.0% compared to 2024, is likely to reflect a slowdown in non -durable consumer goods. The services sector is expected to grow 1.8%, below 2024 figures, due to the lagged and gradual effects of a restrictive monetary policy. High inflation, driven by the 2024 currency depreciation, a fiscal stimulus and the resilient domestic economic activity and labor market, led the Central Bank of Brazil (Bacen) to adopt a restrictive monetary policy, with the basic interest rate (Selic) set at 15.0% per year as of June. In Rio Grande do Sul, GDP grew 1.3% in the first quarter of 2025, compared to the previous quarter, a performance similar to the Brazilian average. Agricultural production stood out, with a 27.3% increase, boosted by rice, corn, tobacco and grape productio n, despite a decline in soybean production. The industrial sector grew slightly by 0.2%, while the services sector recorded a contraction. Compared to the same period in 2024, the state’s GDP grew by 1.8%, below Brazil’s overall growth of 2.9%. The credit market recorded year- over-year growth of 15.7%, above the national average of 11.8%, mainly due to corporate lending (+19.0%) and increased household credit (+14.1%). The average default rate in the state rose to 3.0% and, despite this increase, remained below the national average of 3.5%. Consolidated Performance In 1H25, Banrisul’s net income totaled R$619.2 million, moving up by 42.4%, or R$184.3 million from 1H24. This increase is mainly due to: (i) net interest income increase; (ii) net losses from credit risk; (iii) higher fee and commission income; (iv) sligh t increase in administrative expenses; (v) favorable results from other operating revenue and expenses; and (vi) the subsequent tax effect.
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Management Report June 30, 2025 3 Measured by the concept of added value, Banrisul generated revenues of R$2,440.5 million in 1H25, of which 47.1% were allocated to payroll, 26.8% to the payment of taxes, fees and contributions, 25.4% to shareholder compensation and 0.7% to debt capital remuneration. Equity reached R$10,648.9 million at the end of June 2025, up by 2.3% from December 2024, mostly due to the incorporation of the results generated; the payment of interest on equity and dividend provisioning; the actuarial liability re -measurement referrin g to post-employment benefits (CPC33(R1)) and the initial adoption of the requirements set forth in CMN Resolutions 4,966/21 and 4,975/21. Total assets came to R$156,054.2 million in June 2025, 5.9% higher than in December 2024. Treasury investments totaled R$70,510.2 million in June 2025, moving up by 13.7% from December 2024. Products and Services Loan Portfolio Our loan portfolio reached R$64,018.3 million in June 2025, up by 3.2% from December 2024, mainly reflecting the higher balance of commercial loans, long -term financing and foreign exchange portfolio. Commercial loans, our largest portfolio, totaled R$39,144.9 million and accounted for 61.1% of total loan operations. Throughout 2Q25, we remained committed to innovating and building a closer relationship with customers, implementing substantial improvements to the loan portfolio through initiatives that reflect our relentless pursuit of more affordable, modern solutions , in line with the needs of different profiles, for both individual and corporate customers. For individuals, we relaunched CDC Educação, a credit line for financing undergraduate programs. Following market trends, we made available Crédito Consignado CLT (a payroll-deductible loan) at the branch network and on digital channels, through the Banrisul App or the Digital Work Card app, expanding our operations in the payroll-deductible lending segment. For corporate customers, Conta Única Banrisul (a revolving and recurring credit limit, managed by the corporate customer) remains the main product for companies. In 2Q25, we implemented new features in the loan portfolio, including a flexible working capital line with cross collateralization for comp anies of all sizes, which may be repaid in installments or a single lump-sum payment and allows for the combination of different types of collateral within the same transaction. For agribusiness, the first half of 2025 was marked by a challenging landscape in the state, due to a severe drought in early 2025, with compromised crop productivity, especially for the soybean crop. We devoted our efforts to enable the exceptional extens ion of crop funding installments, as authorized by CMN Resolution 5,220/25, and implemented complementary measures such as the renegotiation of loans for customers in good standing, to preserve liquidity in the sector, ensure the next harvest and support the sustainable recovery of agricultural production. We continued to offer credit lines with subsidized interest rates, with disbursements totaling R$1.3 billion in 2Q25, primarily for crop financing and pre -harvest costs. Despite an adverse landscape, we upheld our commitment to prudent rural loan management, adhering to the principles We are committed to fostering the economy of our state by offering development-focused credit lines funded by Brazilian Development Bank (BNDES), aimed at supporting projects that drive industrial expansion while promoting the creation of jobs and generati on of income, thus contributing in a tangible way to strengthening the economy and the future of the Rio Grande do Sul state.
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Management Report June 30, 2025 4 of selectivity, security and profitability. Thus, we reinforced our part as a key driver of agribusiness development in Rio Grande do Sul, operating with responsibility and in line with best governance practices. To strengthen our financial sustainability, we restructured our financial asset collection department and created the “ Finanças em Dia ” (Finances in Check, in Portuguese) project, an institutional initiative focused on reducing delinquency and strengthening the financial health of these assets. As part of this movement, in the second quarter, we made available a simple, transparent and effective new digital solution aimed at renegotiating debt and supporting the organization of our customers’ personal finances. In addition to offering autonomy and convenience for customers to resolve their financial matters in the app, the initiative also translates into a reduction in operating costs and substantially contributes to credit recovery, reaching R$217.0 million in 1H25. Foreign Exchange Solutions We work with complete foreign exchange solutions for individual and corporate customers, such as the International Account, Câmbio Pronto, Letters of Credit and Import and Export Financing. Our foreign exchange portfolio has been posting an outstanding performance, reflecting significant 51.1% growth compared to June 2024 and 9.7% compared to December 2024. This growth was driven by the expansion of our commercial activities and a significant increase in spot foreign exchange transactions, which totaled R$9.1 billion, R$3.0 billion more than in the same period of the previous year. Portfolio quality is reflected in the low delinquency rate, which remained at 0.15%, a result of careful manageme nt, personalized service, and in -depth knowledge of our customers’ businesses. This performance reinforces Banrisul’s commitment to innovation and supporting the strong inclination towards exports of the state of Rio Grande do Sul. For more information on our loan portfolio, please read the Performance Analysis report. Funding and Assets under Management In 1H25, funding and assets under management balance amounted to R$123,982.0 million, up by 6.8% from December 2024, mainly driven by an increase in time deposits, court and administrative deposits and bank notes. Launched in 1Q25, the fixed -rate Progress ive Bank Deposit Certificate (CDB) increased by 128.4% compared to the previous quarter, closing June with a balance of R$974.0 million. Funding from Real Estate (LCI) and Agribusiness (LCA) letters of credit increased by 17.1% and 11.7% from December 2024, respectively; and funding from bank notes, including subordinated debt, increased by 101.2% in the same period. Credit and Debit Cards At the end of June 2025, Banrisul recorded a base of 1.4 million credit cards under the Mastercard and Visa brands. Income from the credit, credit card and BNDES cards fees totaled R$441.5 million 2Q25. Throughout 1H25, we offered credit card benefits, such as the exemption of the annual and monthly fees of Banrisul Tag, in partnership with Veloe, reinforcing our commitment to customer appreciation. Focused on Credit Cards 54.0 million transactions R$5.5 billion sales +7.5% Banricompras 61.1 million transactions R$7.7 billion sales BanriCard 5,186 active customers R$1.1 billion sales
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Management Report June 30, 2025 5 building customer loyalty and offering customized benefits at Banriclube, in April, we launched the “ Crédito em Fatura ” feature: Individual customers who hold Mastercard and Visa cards (Gold, Platinum, Black and Infinite) can now exchange their points for amounts credited in their credit card bills. In order to improve customers’ digital experience, Banricompras now offers a detailed record in the app, which enables customers to view their purchases in detail and monitor future expenses. Banricompras has also stood out as an installment payment solution for corporate customers, with limits for postdated purchases and installment payments, which can replace payments through banking slips or credit cards. This solution stands out for offering flexible and customizable payments, which can be diluted throughout the month, avoiding peaks of expenses and integrating an excellent tool for managing cash flow. Pre-purchase Financing Pool We offer complete pre -purchase financing pool solutions for the secure purchase of real estate properties, vehicles, motorcycles, agricultural machinery and heavy vehicles, with credibility, at our branch network and digital channels. In 1H25, 5,874 member s of purchase consortiums were awarded vehicles and real estate properties through periodic lotteries. In the period, we launched the real estate sales group focused on high - income and investor -profile customers — Clube do Milhão . The product achieved outstanding results through a commercial strategy based on planning and the integration of different Company’s departments, strengthening the Institution’s leading position in the real estate pool group segment as an alternative for asset investment. Vero Acquiring Network Vero ended 1H25 with 146.2 thousand active accredited merchants with transactions in the last 12 months. In the period, 277.2 million transactions were captured, a 3.2% increase from 1H24, of which 192.1 million were with debit cards, and 85.1 million were credit card transactions. The financial volume transacted totaled R$25.6 billion, reflecting the 6.2% growth year on year, of which R$13.6 billion came from debit cards and R$12.0 billion from credit card transactions. The anticipation of sales receivables reached R$5.2 billion in 1H25 or 40.6% of volume subject to anticipation, 20.9% higher than in 1H24. Insurance In the insurance and private pension plan segment, we offer products focused on ensuring the future and peace of mind of customers and their families. In 1H25, we made significant progress in our growth strategy, with initiatives focused on improving custo mer experience and reinforcing the sales force. For the period, we highlight the enhancement of the contracting and payment journeys, by adding new features to the app, including the possibility of signing up for products digitally and new Pix and credit c ard payment options. We also developed commercial tools to support our employees in creating new business opportunities, including a practical handbook with strategic arguments to overcome objections and increase sales conversion. Insurance premium collection, private pension contributions and savings bonds came to R$1.2 billion in 1H25. Total revenue reached R$191.7 million; of this, income from insurance brokerage commissions amounted to R$149.4 million , 4.9% up from 1H24. In June 2025, Banrisul recorded 2.4 million active insurance contracts.
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Management Report June 30, 2025 6 Customer Relationship As part of our strategy to expand our commercial portfolio, in the first half of 2025, we opened new Banrisul Empresas spaces in the cities of Pelotas, Santa Cruz do Sul, Bento Gonçalves and São Leopoldo, as well as in Porto Alegre’s South region. These spaces are designed exclusively for the corporate segment, focused on specialization, efficiency and the offering of products and services in an agile manner, in line with the segment’s trends, reinforcing our institutional presence in regions with high economic potential. As a competitive edge of our relationship with business owners, we offer them innovative collaboration initiatives, such as Banrisul Empresas Financial Consultancy: a set of benefits and integrated, specialized services aimed at micro - and small -sized businesses to help them better understand their spending and continuously improve business. The consultancy service features a customer data and financial diagnosis to ol through which we can create customized solutions and business strategies through our products and services. At the same time, the branch network optimization effort remains at a continuous pace, keeping the same level of service quality in the places where it has already been implemented and strengthening even further our operational efficiency strategic pillar. We continue to modernize the ATM fleet and, in 1H25, we installed and made available 117 Cash Recycling ATMs, capable of dispensing customer-deposited bills, in commercial establishments in several cities across the state and also at some branches in Porto Alegre. By year -end, 1,000 terminals will be distributed in external locations and at the branch network, enabling online cash withdrawal and deposits for more than 150 banks connected to the Banco24Horas network, expanding our user base and boosting rec urring revenue generation from banking services. We are the first bank in Brazil to share its ATM network. As for in -person customer service, we have 931 Banripontos located in 67% of Rio Grande do Sul’s municipalities. This network has consolidated itself as a strategic business channel for products such as pre - purchase financing pools and payroll -deductible loans and services such as opening accounts, with different service hours and in places where there is low banking service or in strategic urban locations. In 2025, the target is to expand coverage to 100% of the state’s municipalities and diversify the por tfolio, reinforcing our commitment to financial inclusion and our brand’s reach. 926 Service Stations 479 branches in Rio Grande do Sul 15 in Santa Catarina 4 in other states 498 Branches 313 ATMs — PAEs 115 service stations — PAs 931
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Management Report June 30, 2025 7 Our Ombudsman’s Office analyzes and handles customers’/users’ complaints as a complementary service to primary service channels. Digital Channels We offer five digital channels: My Account, Affinity and Office Mobile, available on the Banrisul app, in addition to Office and Home banking, available on the internet. In 1H25, all channels together recorded 360.3 million accesses, 11.1% more than in the same period in 2024, reaching 2.0 million daily accesses on average. Total transactions carried out through these channels grew by 14.4%, with the number of financial transactions increasing by 11.4% and the transacted volume growing by 15.3% from 1H24. In the second quarter, we continued to focus on enhancing customer experience on our digital channels by adding new features to the Banrisul App. In addition to improvements to the loan contracting process implemented in 1Q25, we also made available features to manage credit products and the option to amortize or settle real estate financing with own funds. As for the Pix portfolio, we implemented payment using keys from international accounts. Corporate Governance We have established Corporate Governance, with well -defined roles, which continuously seeks to upgrade methods, policies, and decision-making process, in line with the best market practices. Listed under Level 1 of Corporate Governance at B3 S.A. – Brasil, Bolsa, Balcão since 2007, Banrisul has been fully complying with the requirements of this listing level and additional aspects required from companies with shares listed on the Novo Mercado, conferring it greater transparency, equity, and accountability, creating value for shareholders and reinforcing credibility with investors and customers. Additional information on Corporate Governance is available on our Investor Relations website (ri.banrisul.com.br – Corporate Governance Section). 87.8% of transactions in 1H25 were made via digital channels The expansion of the Banrisul brand across Brazil through the opening of the Digital Account for individual customers reached 200,000 new customers. Meanwhile, 1,700 new customers opened the digital account for individual micro entrepreneurs (MEI), helping strengthen our corporate portfolio and Banrisul’s digital transformation journey.
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Management Report June 30, 2025 8 Ownership Structure Our shares are traded under tickers BRSR3, BRSR5, and BRSR6, the latter being the most liquid share, present in eight indexes of B3 S.A. — Brasil, Bolsa, Balcão. The State of Rio Grande do Sul is the Bank’s controlling shareholder, with 98.1% of the common shares with voting rights and 49.4% of Banrisul’s total capital. Our shareholder base also includes approximately 146,000 shareholders, with widespread stock ownership higher than the minimum free float required by B3’s Corporate Governance Level 1, at 50.6% compared to 25%, respectively. Below, we present some market indicators: Banrisul Ratings The corporate rating is an assessment of the Institution’s financial strength and its ability to meet its financial obligations. In this regard, we are monitored by the three main credit rating agencies in the market: Moody’s, Standard & Poor’s and Fitch Ratings. In April 2025, Moody’s Local Brasil upgraded Banrisul’s credit rating to AA -, with a stable outlook on the domestic scale. According to their report published on April 29, 2025, “Banrisul’s rating upgrade reflects the bank’s resilient operations even in the face of regional challenges. We view as positive aspects the preservation of high capital levels, despite a significant increase in assets, and the maintenance of broad access to customer deposit funding, although profitability indicators remain under pressure.” We present below the long-term ratings assigned to Banrisul: All information about Ratings can be found on the Investor Relations website (ri.banrisul.com.br – Market Information / Ratings Section). Banrisul (Local Scale) Banrisul (Global Scale) Brazil – Sovereign Risk (Global Scale) S&P brAA+ BB- BB Fitch AA+(BRA) BB- BB Moody’s AA-.br Ba3 Ba1 48.14% 16.62% 35.24% Shares (free float) Individuals Local legal entities Foreign legal entities 96.84% 3.01% 0.15% Type of investor Individuals Local legal entities Foreign legal entities R$4.7 billion Market cap R$13.4 million Average daily traded volume 9.5% Dividend Yield in 12 months
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Management Report June 30, 2025 9 Distribution of Interest on Equity and Dividends Since early 2008, we have adopted a policy for quarterly payment of Interest on Equity (JSCP) and, historically, have been remunerating shareholders with payment of JSCP and dividends higher than the minimum legally required. In 1H25, JSCP and dividends were paid and/or accrued, before withholding income tax, totaling R$246.4 million. Investor Relations Our Investor Relations department interacts with the various market agents on a regular basis, communicating the Company’s financial information and giving presentations on Banrisul’s results and prospects, updating the mandatory regulatory documents, as w ell as disclosing material facts, notices to the market and other notices to shareholders and investors in a timely manner. Contact us through the Contact IR channel and Sign up for our mailing list to receive information by email when corporate events or any other communication takes place. Capital and Risk Management The Institutional Capital and Risk Management Structure is reviewed every year and is available on the Investor Relations website (ri.banrisul.com.br — Corporate Governance/Risk Management section), together with the Pillar 3 Report that presents publicly accessible information related to risk management and the calculation of the amount of risk-weighted assets (RWA), reference Shareholders’ Equity and leverage ratio. In this context, we understand capital management as a continuous process of monitoring, controlling, assessing, and planning goals and capital needs, considering strategic objectives and risks to which the Bank is subject: Credit Risk: System improvements to calculate the amount of risk -weighted assets referring to credit risk exposures subject to the calculation of capital requirement through standardized approach — RWACPAD. Market Risk: In 2Q25, the monitoring processes did not indicate any occurrence of events or crises that led to an increase in said risk, and market risk remained at levels in line with the limits outlined in the Risk Appetite Statement (RAS). Liquidity Risk: In 2Q25, it remained under control, and the projected scenarios, including stress scenarios, did not indicate any significant threats. Operational Risk: The new methodology (RWAOPAD) was implemented, based on accounting data and net losses and provisions related to risk events, in accordance with BCB Resolution 356/23. ESG Risks (Environmental, Social and Climate): Monitoring of the corporate loan portfolio exposure, which remained within the established limits. The Basel Ratio reached 16.2% on June 30, 2025, 5.7 p.p. above the minimum regulatory level, considering additional core capital (10.5%). Investment & Innovation We are continuously devoting our efforts to the innovation ecosystem to deliver products and services that combine quality, trust and technology, focused on customer experience. Investments in IT modernization totaled R$177.9 million, which include all investments in IT, ATMs, Datacenter, digital transformation, customer service and relationship, information systems and asset security, in addition to renovations and expansions. In vestments were mostly targeted at IT infrastructure modernization and Asset Security.
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Management Report June 30, 2025 10 Actions and Initiatives In 2Q25, we launched the Banking as a Service (BaaS) product, which promotes technological openness and expands access to our digital financial solutions — the first step in a broad strategy to expand our APIs aimed at expanding business opportunities for corporate customers and partner companies. As regards payment solutions, we pioneered in making Pix Automático available on our digital channels since November 2024. With the full interoperability implemented by the Central Bank of Brazil in June 2025, the solution allows registering payers from any financial institution, significantly boosting its reach and use potential. The product already allows integration via API, ideal for companies that want to add recurring collection to its management systems. The payment means portfolio also features Pix Parcelado, which kept pace and reached over 20,000 customers in the period. In our digitalization strategy, we made progress by launching the option to simulate and fully repay credit card bills in installments. This solution, initially aimed at delinquent customers and latter also offered to customers in good standing, enables th em to have more autonomy in their financial management and recorded a substantial number of registrations: Two times more customers had adhered to it at the end of June, compared to March 2025. This initiative required the development of robust technologic al solutions, focused on stability, scalability and operational safety. On Banrisul App, we must highlight the following: The transformation of customer experience by reorganizing and optimizing the Security, Settings, Limits and Authorization menus on the landing page, as well as by improving the Investment section by offering a simpler, more intuitive journey aligned with the customers’ goals; The new journey to hire and manage loans on the app; Improvements to the Pix portfolio, with option to use intentional keys; Improvements to digital onboarding, with new security layers implemented for opening accounts for Individual Micro Entrepreneurs; and The addition of new features for managing sales and standardized fees for accredited merchants to Vero Gestão App. As part of the modernization and operational efficiency strategy, we made progress in implementing the Colabora 365 project (adoption of the Microsoft 365 suite for integrated team collaboration), which is been deployed to all departments within the Organization, with potential for significant gains in terms of productivity, collaboration and operational efficiency, as well as reduction in IT infrastructure costs. Banritech In line with the innovation and transformation culture, the 2025 startup acceleration cycle — Banritech Fly — achieved important results for our strategic internal needs by the end of 1H25. Through collaborative workshops with different departments, mappin g of strategic issues and the study of over forty proposals. We selected six from the aforementioned proposals considering criteria of strategic importance, adherence to requesting departments and innovation potential, namely: Real Estate Management, Inte rnal Performance, Market Intelligence, Financial Aggregator for Corporate Customers, Loyalty Program and Collaterals using Tokens. This process reinforces our commitment to innovation and the pursuit of solutions that create actual impacts for the Bank.
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Management Report June 30, 2025 11 In April and May, team members attended innovation events, GOV Tech Summit and Web Summit Rio, which enabled them to expand the networking in the innovation ecosystem and to scout startups that can participate in the Banritech Fly acceleration cycle. Sustainability On the social, environmental and climate-related management front, we must highlight the progress made in the analysis and diagnosis of the Sustainable Loan Portfolio and the preparation of the Sustainable Finance Framework, a document that promotes fundin g social and environmental -related financing. These projects have relied on technical consultancy in Sustainable Finance and enabled new business opportunities, in addition to improving existing products. In 1H25, we completed our greenhouse gas (GHG) inventory under the scope of the Brazilian GHG Protocol Program, for the fiscal year 2024. The inventory was submitted to external assurance and, once again, was awarded the Gold Seal. In 2024, compared to bas e year 2020, we reduced our scope 1 (GHG emissions from direct activities) and 2 (emissions from the Bank’s energy consumption, considering the market -based approach) emissions by 60.1%. The migration of 94 consumer units to the Free Energy Market was one of the activities that contributed to reducing emissions. This process started in 2022 and reached around 46% of the energy consumed at the end of 2024. People We reaffirm our commitment to continuously valuing our human capital and social development through structured people management, corporate education and inclusion policies. In 2Q25, we launched a new public selection process for interns, promoting strategic opportunities for adding innovative ideas aligned with market transformation. In the same period, we held in-person and online training, especially the Banrisul Nosso Jeito program, which promoted professional development journeys within the technical and behavioral scope for all positions, including leaderships, sales teams and technical departments. Corporate education is one of our strategic resources for achieving our purpose and goals, promoting culture and reinforcing organizational values. Cultural and Social Initiatives and Programs Our initiatives reflect the strategy to promote a work environment increasingly skilled, inclusive and aligned with the best social responsibility practices. 1,599 interns 31.0% of leadership positions held by women 9,266 employees 3,940 female employees
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Management Report June 30, 2025 12 On the Social and Cultural fronts, we have permanent investments in social and educational initiatives, such as the Pescar Project, serving young people in social vulnerability; the Programa Jovem Aprendiz Legal (Youth Apprentice Program), which is concerned with the inclusion of young students in the labor market and is materialized through partnerships with training institutions; and financial education initiatives through the Banrieduca platform, with in-person initiatives in schools, universities and companies. In terms of diversity and accessibility, in addition to actions focused on raising awareness about autism and LGBTQIAP+ pride, we have 1,284 employees trained in the Brazilian sign language (Libras). In June 2025, we publicly announced the proposal to create Banrisul Cultural, an institutional branch dedicated exclusively to fostering, supporting and publicizing cultural and social projects across the state. The initiative’s main purpose is to promote social inclusion, support the qualification of professionals in the cultural field, preserve historical heritage and encourage new artistic languages, consolidating our historical commitment to the state’s social, economic and cultural development, always seeking to support those with capacity to give back to society.
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Management Report June 30, 2025 13 Recognitions January/2025. Banrisul makes its debut in B3’s Carbon Efficient Index For the first time, Banrisul was included in the 16th portfolio of B3’s Carbon Efficient Index (ICO2 B3), as detailed in the Sustainability chapter. March/2025. Banrisul wins the Brazil Ombudsman Award for the fifth time. Once again, Banrisul’s Ombudsman's Office was recognized for its customer service excellence by winning the Brazil Ombudsman Award, organized by the Brazilian Association of Company -Client Relations (ABRAREC). The Bank received the award for the fifth time in the “Best Cases” category, with an innovative project aimed the managing vulnerable customers. For over 20 years, the award has recognized companies and professionals who have stood out for innovation and service excellence through their ombudsman’s of fices. Banrisul is the leading brand in the “Rio Grande do Sul State -Owned Company” category in the Marcas de Quem Decide award. Banrisul was the most Recalled and Preferred brand of executives in the state in the “Rio Grande do Sul State-Owned Company” category and also ranked second in the “Brand Symbol of Economic Recovery” category and sixth in the “Great Rio Grande do Sul Brand of the Year” category. The awards are part of the 27th Marcas de Quem Decide, an accolade organized by Jornal do Comércio in partnership with Instituto Pesquisas de Opinião (IPO). The Institution is also among the top five Most Recalled and Preferred companies in the “Bank” and “Pool Groups” categories. April/2025. Moody’s raises Banrisul’s rating to AA-.br. Moody’s Local Brasil rating agency upgraded Banrisul’s issuer and long-term deposit ratings from A+.br to AA- .br. The short-term deposit rating was reaffirmed at ML A-1.br, with a stable outlook, as detailed in the Banrisul Ratings chapter hereof. Banrisul receives one of the most important people management awards in Brazil. Banrisul received the 2025 ESARH – Doralício Siqueira award, in the Strategic People Management category, bestowed by Associação Serrana de Recursos Humanos (ARH Serrana). The winning project — Programa de Integração Banrisul: Experiência de coprodução para acolher, orientar e inovar (Banrisul Onboarding Program: A co-production experience to welcome, guide and innovate) — focuses on the onboarding of new employees, welcoming and guiding them on the Bank’s values, strategies and business. Banrisul is a highlight in the Top of Mind award, reinforcing its connection with the people of Rio Grande do Sul. Banrisul reaffirmed its strength and connection with the population of Rio Grande do Sul by achieving outstanding results in the 35 th edition of the Top of Mind Rio Grande do Sul Award, the state’s most traditional brand recalling award. This year, the Institution topped the Bank category and came in 4 th Credit Officer, Ivanor Duranti, represented Banrisul at the award.
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Management Report June 30, 2025 14 among Large Companies, stating its importance in the financial sector and its relevant presence in the memory of the state’s population. May/2025. Banrisul stands out as one of the three financial agents that granted most credits for the State’s recovery following the weather event in 2024. The award was bestowed by the Brazilian Development Bank (BNDES) during the 4 th edition of the Financial Agents’ Recognition Event, held in São Paulo, which praised the role of partner institutions in the expansion of credit and assignment of collateral within the scope of BNDES’s indirect model, under the material topics for the ins titution, namely: innovation, sustainability, support for Micro, Small, and Medium Enterprises (MSMEs) and support for the capital goods sector, among others. Fitch reaffirms Banrisul’s BB- and AA+(bra) ratings, with a stable outlook. Fitch Ratings reaffirmed Banrisul’s long -term and domestic long -term ratings at BB - and AA+(bra), respectively, with a stable outlook. According to the rating agency, Banrisul has a stable business profile, with risk controls comparable to those of large banks and an adequate financial profile. Fitch also raised the score of Banrisul’s business profile from bb- to bb, reflecting an increase in the Bank’s total operational revenue and the Bank’s resilience in light of the recent stress period. For the rating agency, the Institution has a balanced profile, with moderate risk appetite. Banrisul has adequate asset quality, upheld even after the floods in 2024, reason why Fitch upgraded the Bank’s score from b to b+. Banrisul is recognized for sponsoring the opening program of the Simões Lopes Neto Theater. Banrisul was honored with a commemorative plaque in recognition of its sponsorship for the opening program of the Simões Lopes Neto Theater, in Porto Alegre. The tribute took place in the theater itself and marked the end of its opening season, which featu red theater, dance, circus and music performances between March and May 2025. The Theater is part of Multipalco Eva Sopher, whose construction was supported by Banrisul since the works started, in 2003. Acknowledgments The results delivered in the period show the accuracy of our initiatives. Our positive performance was due to the dedication of our employees and our partnerships with customers, investors and suppliers. Management The chairman of Fundação Theatro São Pedro, Antonio Hohlfeldt; Banrisul's CEO, Fernando Lemos and the chairman of Association of Friends of Theatro São Pedro, José Roberto Goldim, during the commemorative plaque tribute.
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Financial Statements June 30, 2025 15 Balance Sheet (In Thousands of Reais) Parent Company Consolidated Assets Note 06/30/2025 06/30/2025 Cash 6 1,316,610 1,316,612 Financial Assets 144,953,894 148,510,974 At Amortized Cost 122,427,374 125,490,089 Compulsory Deposits at the Central Bank of Brazil 7 12,473,048 12,473,048 Interbank Liquidity Applications 8 3,266,590 3,266,590 Securities 9 42,989,743 42,998,161 Credit and Financial Leasing Operations 10 64,004,273 64,018,274 Other Financial Assets 11 3,136,619 6,179,737 (Provision for Expected Loss Associated with Credit Risk) (3,442,899) (3,445,721) (Credit Operations) 10 (3,391,659) (3,392,042) (Other Financial Assets) (51,240) (53,679) At Fair Value Through Other Comprehensive Income 19,557,387 19,557,387 Securities 12 19,557,387 19,557,387 At Fair Value Through Profit or Loss 2,969,133 3,463,498 Securities 13 2,877,056 3,371,421 Derivativies 21 92,077 92,077 Fiscal Assets 3,898,133 4,116,017 Current 218,245 356,226 Deferred 15a 3,679,888 3,759,791 Other Assets 14 629,114 711,566 Investments 3,934,363 157,746 Investments in Associates and Subsidiaries 16 3,934,363 157,746 Property and Equipment 17 688,997 866,104 Property and Equipment 1,610,614 1,909,754 (Accumulated Depreciation) (921,617) (1,043,650) Intangible Assets 18 375,217 375,217 Intangible Assets 1,909,614 1,911,063 (Accumulated Amortization) (1,534,397) (1,535,846) Total Assets 155,796,328 156,054,236
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Financial Statements June 30, 2025 16 Balance Sheet (In Thousands of Reais) Parent Company Consolidated Liabilities Note 06/30/2025 06/30/2025 Financial Liabilities 140,013,200 139,910,304 At Amortized Cost 138,257,228 138,154,332 Deposits 19 93,475,998 92,711,902 Repurchase Agreements 19 23,816,027 23,698,954 Funds from Acceptance and Issuance of Securities 19 10,116,348 9,286,453 Subordinated Debt 19 456,385 456,385 Borrowings 19 2,421,038 2,425,019 Onlendings 19 3,870,359 3,870,359 Other Financial Liabilities 20 4,101,073 5,705,260 At Fair Value through Profit or Loss 1,664,457 1,664,457 Derivativies 21 1,180 1,180 Subordinated Debt 21 1,663,277 1,663,277 Provision for Expected Loss 91,515 91,515 Credit Commitments and Credits to be Released 86,013 86,013 Financial Guarantees Provided 5,502 5,502 Civil, Tax and Labor Provisions 23a 2,992,827 3,000,471 Fiscal Liabilities 444,536 662,521 Current 142,918 347,025 Deferred 15b 301,618 315,496 Other Liabilities 24 1,700,083 1,832,076 Total Liabilities 145,150,646 145,405,372 Equity 25 Capital 8,300,000 8,300,000 Capital Reserves 5,098 5,098 Profit Reserves 2,488,738 2,488,738 Other Comprehensive Income (148,154) (148,154) Non-controlling Interests - 3,182 Total Equity 10,645,682 10,648,864 Total Liabilities and Equity 155,796,328 156,054,236 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 17 Income Statement (In Thousands of Reais) Parent Company Consolidated Note 01/01 to 06/30/2025 01/01 to 06/30/2025 Income from Financial Intermediation 10,046,254 10,084,664 Loans, Leases and Other Credits 5,265,717 5,265,717 Securities 4,028,934 4,067,344 Derivativies (276,248) (276,248) Exchange Loans 231,300 231,300 Compulsory Deposits 796,551 796,551 Expenses from Financial Intermediation (7,021,774) (6,901,675) Repurchase Agreements (6,609,131) (6,488,850) Borrowings, Assignments and Onlendings (412,643) (412,825) Net Income from Financial Intermediation 3,024,480 3,182,989 Provisions for Expected Losses Associated with Credit Risk (518,281) (519,083) Loans and Leases (603,343) (603,399) Other Financial Assets 85,062 84,316 Other Operating Income (Expenses) (1,858,981) (1,836,689) Income from Services Rendered and Banking Fees 26 504,446 1,046,943 Personnel Expenses 27 (1,303,833) (1,314,131) Other Administrative Expenses 28 (986,405) (1,045,362) Tax Expenses (202,146) (281,273) Result of Participation in Associates and Subsidiaries 16 397,089 46,127 Other Operational Income 29 284,315 337,336 Other Operational Expenses 30 (297,841) (371,787) Civil, Tax and Labor Provision 23a (254,606) (254,542) Income Before Tax on Profit 647,218 827,217 Income Tax and Social Contribution 31 (28,339) (208,034) Current (26,010) (217,813) Deferred (2,329) 9,779 Net Income in the Period 618,879 619,183 Net Income Atributable to Controlling Shareholderes 618,879 618,879 Net Income Atributable to Non - Controlling Shareholderes - 304 Earnings per Share 32 Basic and Diluted Earnings per Share (in BRL - R$) Common Shares 1.51 1.51 Preferred Shares A 1.54 1.54 Preferred Shares B 1.51 1.51 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 18 STATEMENT OF COMPREHENSIVE INCOME (In Thousands of Reais) Parent Company Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Net Income Attributable to Shareholders 618,879 619,183 Items that can be Reclassified to the Income Statement 11,235 11,235 Financial Assets at Fair Value Through Other Comprehensive Income 11,235 11,235 Change in Fair Value 20,429 20,429 Tax Effect (9,194) (9,194) Items that cannot be Reclassified to the Income Statement (53,175) (53,175) Remeasurement of Post-Employment Benefit Obligations (53,175) (53,175) Actuarial Gains/(Losses) (96,559) (96,559) Tax Effect 43,384 43,384 Total Adjustments Not Included in Period Net Income (41,940) (41,940) Net Comprehensive Income for the Period 576,939 577,243 Comprehensive Income Attributable to Controlling Interests 576,939 576,939 Comprehensive Income Attributable to Non-controlling Interests - 304 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 19 Statement of Changes in Equity (In Thousands of Reais) Attributable to Controlling Shareholders Profit Reserves Note Capital Capital Reserves Legal Statutory For Expansion Special Profit ORA Retained earnings Total Parent Company Non-controlling Interest Total Consolidated Balance as of 12/31/2024 8,000,000 5,098 805,107 1,430,430 275,581 - (106,214) - 10,410,002 3,706 10,413,708 Implementation of new accounting standards (Res. CMN n° 4.966/21, Res. BCB n° 352/23 and Res. CMN n° 4.975/21) - - - - - - - (164,160) (164,160) - (164,160) Opening Balance 01/01/2025 8,000,000 5,098 805,107 1,430,430 275,581 - (106,214) (164,160) 10,245,842 3,706 10,249,548 Capital Increase 300,000 - - (24,419) (275,581) - - - - - - ORA Financial Assets at Fair Value through ORA - - - - - - 11,235 - 11,235 - 11,235 Actuarial Valuation Adjustment - - - - - - (53,175) - (53,175) - (53,175) Change in Non-Controlling Interest - - - - - - - - - (828) (828) Implementation Deferral of Exclusivity Agreement - - - - - - - 2,901 2,901 - 2,901 Net Profit for the Period - - - - - - - 618,879 618,879 304 619,183 Allocation of Net Profit 25c Constitution of Reserves - - 30,944 154,720 25,551 - - (211,215) - - - Interest on Equity - - - - - - - (180,000) (180,000) - (180,000) Provisioned Dividends - - - - - 66,405 - (66,405) - - - Balance as of 06/30/2025 8,300,000 5,098 836,051 1,560,731 25,551 66,405 (148,154) - 10,645,682 3,182 10,648,864 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 20 Cash Flow Statement (In Thousands of Reais) Parent Company Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Cash Flow from Operating Activities Income before Tax on Profit 647,218 827,217 Adjustments to Profit before Tax on Profit 426,998 801,102 Depreciation and Amortization 177,173 199,577 Result of Shareholdings in Associated and Subsidiary Companies (397,089) (46,127) Subordinated Debt Update Result (125,973) (125,973) Expected Losses Associated with Credit Risk 518,281 519,083 Provisions for Tax, Labor and Civil Risks 254,606 254,542 Equity Variations (Increase)/Decrease in Assets 1,592,743 1,637,939 Applications in Interbank Deposits 763,835 763,835 Compulsory Deposit at the Central Bank of Brazil (756,118) (756,118) Financial Assets at Fair Value Through Profit or Loss 1,369,502 1,516,238 Derivative Financial Instruments (Assets/Liabilities) 233,401 233,401 Credit and Financial Leasing Operations (1,795,109) (1,795,395) Other Financial Assets 1,980,707 2,015,582 Fiscal Assets (122,453) (245,948) Other Assets (81,022) (93,656) Increase/(Decrease) in Liabilities 8,231,988 7,823,838 Deposits 4,829,763 4,517,012 Repurchase Agreements (Repos) 1,479,796 1,459,960 Funds from Acceptance and Issuance of Securities 2,421,730 2,349,989 Borrowings and Onlendings 1,017,374 770,824 Other Financial Assets (1,701,934) (905,759) Tax, Labor and Civil Provisions (156,946) (156,967) Tax Liabilities 152,509 429,101 Other Liabilities 315,731 (309,423) Income Tax and Social Contribution on Net Profit Paid (126,035) (330,899) Net Cash from/(Used in) Operating Activities 10,898,947 11,090,096 Cash Flow from Investing Activities Dividends Received from Subsidiaries and Associates 214,885 64,614 (Increase) Financial Assets at Fair Value Through Other Comprehensive Income (1,209,223) (1,207,339) (Increase) Securities at Amortized Cost (7,898,908) (7,899,416) Sale of Investments in Subsidiaries and Associates 4,302 2,946 Disposal of Property and Equipment 9,037 14,677 Disposal of Intangible Assets 186 186 Acquisition of Investments in Subsidiaries and Associates (4,505) (3,355) Acquisition of Imobilizado de Uso (53,944) (73,816) Acquisition of Intangível (18,315) (18,315) Net Cash from Investing Activities (8,956,485) (9,119,818) Cash Flow from Financing Activities Payment of Interest on Subordinated Debts (56,891) (56,891) Dividends Paid (35,978) (35,978) Interest on Equity Paid (180,000) (180,000) Lease Settlement (53,401) (54,145) Change in Non-controlling Interest - (524) Net Cash used in Financing Activities (326,270) (327,538) Net Increase in Cash and Cash Equivalents 1,616,192 1,642,740 Cash and Cash Equivalents at Beginning of Period 1,734,417 1,792,278 Cash and Cash Equivalents at Period End 3,350,609 3,435,018 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 21 STATEMENT OF ADDED VALUE (In Thousands of Reais) Parent Company Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Income (a) 10,316,734 10,949,860 Financial Income 10,046,254 10,084,664 Bank Fees Income 504,446 1,046,943 Expected Losses on Financial Assets (518,281) (519,083) Other 284,315 337,336 Expenses (b) (7,021,774) (6,901,675) Financial Intermediation Expenses (7,021,774) (6,901,675) Inputs acquired from Third Parties (c) (1,342,895) (1,454,231) Supplies, Energy and Other (1,017,122) (1,107,002) Third-party Services (325,773) (347,229) Gross Added Value (d=a-b-c) 1,952,065 2,593,954 Depreciation and Amortization (e) (177,173) (199,577) Net Added Value Produced by the Company (f=d-e) 1,774,892 2,394,377 Added Value Received in Transfer (g) 397,089 46,127 Equity in earnings (losses) in investees 397,089 46,127 Added Value for Distribution (h=f+g) 2,171,981 2,440,504 Distribution of Added Value 2,171,981 2,440,504 Personnel 1,139,536 1,149,242 Salaries 792,751 800,208 Benefits 296,296 297,761 FGTS 50,489 51,273 Taxes, Fees and Contributions 394,782 654,196 Federal 368,485 613,173 State 9 196 Local 26,288 40,827 Remuneration on Third Party Capital 18,784 17,883 Rentals 18,784 17,883 Equity Remuneration 618,879 619,183 Interest on Equity 180,000 180,000 Dividends 66,405 66,405 Retained Earnings 372,474 372,474 Non-controlling Interests - 304 The accompanying notes are an integral part of these financial statements.
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Financial Statements June 30, 2025 22 Notes to the Financial Statements We present below Notes to the interim and consolidated financial statements, which are an integral part of the financial statements of Banco do Estado do Rio Grande do Sul S.A. (Banrisul), amounts expressed in thousands of Reais (unless otherwise indicated) and distribuited as follows: Note 01 – Operations Banco do Estado do Rio Grande do Sul S. A. (“Banrisul”, “Institution”), Banrisul Group leading company, controlled by the State of Rio Grande Sul, is a publicly traded corporation which operates a multiple -service bank, headquartered in Brazil, at Rua Capitão Montanha, 177 – 4th floor, in the city of Porto Alegre, Rio Grande do Sul State and that is engaged in retail banking, lending, financing and investment, mortgage loan, development, lease portfolio, and foreign exchange activities. Through its subsidia ries and associates, Banrisul engages in various other activities, including securities brokerage, consortium groups, payment industry solutions, insurance, and pension plan and saving bonds products. Financial market transactions are conducted within the context of an integrated group of financial institutions. Banrisul also operates as an economic and financial agent for the State of Rio Grande do Sul, in conformity with the state government’s plans and programs. Note 02 - Presentation of Financial Statements The individual and consolidated biannual financial statements have been prepared in accordance with accounting policies adopted in Brazil applicable to the financial institutions authorized to operate by the Central Bank of Brazil observing from the Brazilian corporation law, observing the stand ards and instructions of the National Monetary Council (CMN), the Central Bank of Brazil (BACEN) and the Brazilian Securities and Exchange Commission (CVM). Banrisul's financial statements are presented in accordance with BCB Resolution No. 2/20 and with CMN Resolution No 4,818/20. Accounting policies are the principles, bases, conventions, rules and specific practices adopted by Banrisul in the preparation and presentation of its financial statements. The financial statements include accounting policies and estimates relating to the recognition of allowances and determination of the value of securities, derivatives financial instruments and deferred tax, actual results may differ from these estimates. The consolidated financial statements were prepared in accordance with Article 77 of CMN Resolution No. 4,966/21, which allows financial institutions and other institutions authorized to operate by the Central Bank of Brazil (Bacen) to prepare and disclose consolidated financial statements under the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif), in addition to the financial statements under the international standard (IFRS), until the fiscal year 2027. CMN Resolution No. 4,966/21 establishes accounting rules for financial instruments that seek to align with the concepts of international accounting standard IFRS 9, issued by the International Financial Reporting Standards Foundation (IFRS). The resolution establishes accounting concepts and criteria applicable to financial instruments and hedging instruments ( hedge accounting ) by financial institutions and other institutions authorized to operate by Bacen. In this sense, it determines the parameters for: classification, measurement, recognition, and write -off of financial instruments; recognition of expected losses associated with credit risk; designation and accounting recognition of hedging relationships ( hedge accounting ); and disclosure of information on financial instruments. On November 23, 2023, Bacen issued BCB Resolution No. 352/23, which contains the same concepts as CMN Resolution No. 4,966/21, with application to securities distribution companies, foreign exchange brokerage companies, consortium administrators and payment institutions authorized to operate by Bacen. In addition, BCB Resolution No. 352/23 provided greater detail on the accounting procedures for defining cash flows from
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Financial Statements June 30, 2025 23 financial assets as only payment of principal and interest (SPPJ Test), the application of the methodology for calculating the effective interest rate (TJE) of financial instruments, the constitution of a provision for losses associated with credit risk an d the disclosure of information related to financial instruments in Explanatory Notes to be observed by financial institutions and other institutions authorized to operate by Bacen. Furthermore, BCB Resolution No. 352/23 established that the reclassificati on of protection instruments ( hedge ) will occur as of January 1, 2027. As established in article 70 of CMN Resolution No. 4,966/21 and article 94 of BCB Resolution No. 352/23, changes in accounting policies and criteria resulting from the adoption of these standards were applied prospectively on the date of their initial adoption on January 1, 2025. CMN Resolution No. 4,975/21 establishes the accounting criteria applicable to leasing transactions carried out by financial institutions and other institutions authorized to operate by the Central Bank of Brazil as lessors and lessees. The new criteria established by the standard must be applied prospectively as of January 1, 2025. The Management of Banrisul (Management) declares that the disclosures made in the financial statements show all relevant information used in its management and the financial statements are consistent with the regulations in force in each period. The financial statements were prepared considering historical cost as the value basis and adjusted to reflect the assessment of the fair value of financial assets measured through other comprehensive income and financial assets and liabilities measured at fair value through profit or loss. The preparation of the financial statements requires the adoption of estimates and judgments that affect the amounts disclosed for assets and liabilities, as well as the disclosure of contingent assets and contingent liabilities at the date of the financial statements and of revenues and expenses during the period. Matters that require a higher level of discretion are presented in Note 4. The financial statements prepared for the reporting period were approved for issue by the Board of Directors of Banrisul on August 8, 2025. (a) Consolidation Basis The financial statements include the operations of Banrisul, its subsidiaries and affiliates, and the shares of investment funds in which Banrisul assumes or retains, substantially, risks and benefits. In preparing the financial statements, the balances of the equity and income statements and the amounts of transactions between the consolidated companies are eliminated, and the portions of the income statement and equity for the period relating to the interests of minority (non -controlling) shareholders are highlighted. Changes in Banrisul's interest in a subsidiary that do not result in loss of control are accounted for as equity transactions. Subsidiaries: are all companies over which Banrisul has control. Banrisul has control over the investee when it is exposed to, or has rights over, its variable returns arising from its involvement with the company and has the ability to affect such returns. Subsidiaries are fully consolidated from the date on which control is obtained by Banrisul and cease to be consolidated from the date on which control ceases. Investments in these companies are initially recognized at acquisition cost and subsequently me asured using the equity method. Subsidiaries Activity Ownership as of 06/30/2025 Banrisul Armazéns Gerais S.A. Services 100.00% Banrisul S.A. Corretora de Valores Mobiliários e Câmbio Broker 98.98% Banrisul S.A. Administradora de Consórcios Consortium 99.68% Banrisul Soluções em Pagamentos S.A. Payment Options 100.00% Banrisul Seguridade Participações S.A. (1) Insurance 100.00% (1) Subsidiary Banrisul Seguridade Participações S.A fully controls Banrisul Corretora de Seguros S.A.
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Financial Statements June 30, 2025 24 Associated companies: are all companies in which Banrisul has significant influence, but does not control. Investments in these companies are initially recognized at acquisition cost and subsequently measured using the equity method. Associated companies Activity Ownership as of 06/30/2025 Bem Promotora de Vendas e Serviços S.A. Services 49.90% Banrisul Icatu Participações S.A. Insurance 49.99% Transactions with Non -Controlling Interests: Banrisul records the portion related to non -controlling shareholders in equity, in the Balance Sheet. For purchases of non -controlling interests, the difference between any consideration paid and the acquired portion of the carrying amount of the subsidiary's net assets is recorded in equity. Gains or losses on disposals of non -controlling interests are also recorded directly in equity. (b) Early Adoption Information In view of BCB Resolutions No. 92/21, in force since January 1, 2022, and No. 390/24, which provide for the use of the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif), CMN Resolutions No. 4,966/21 and No. 4,975/21, whic h came into force on January 1, 2025, the transfer of balances between Balance Sheet accounts was operationalized, as well as the opening of new accounts. The tables below show the classification of balances on December 31, 2024 and the reclassification an d remeasurement on January 1, 2025.
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Financial Statements June 30, 2025 25 Balance Sheet – Assets Parent Classification prior to the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Effects of CMN Resolutions No. 4,966/21 and 4,975/21 Classification after the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Balance as of 12/31/2024 Reclassification Remeasurement Balance as of 01/01/2025 Cash 1,126,979 - - 1,126,979 Financial Assets 139,669,659 - (6,193) 139,663,466 Interbank Liquidity Applications 2,603,917 - (11,189) 2,592,728 Amortized Cost Compulsory Deposits at the Central Bank of Brazil 11,716,930 - 11,716,930 Amortized Cost Securities 57,685,558 (22,594,722) (60) 35,090,776 Amortized Cost - 4,246,558 - 4,246,558 At Fair Value through Profit or Loss - 18,348,164 - 18,348,164 At Fair Value Through Other Comprehensive Income Derivatives 324,298 - - 324,298 At Fair Value through Profit or Loss Credit and Financial Leasing Operations 62,045,229 - 5,056 62,050,285 Amortized Cost Other Financial Assets 5,293,727 (87,116) - 5,206,611 Amortized Cost - 87,116 - 87,116 Credit and Financial Leasing Operations (Provisions for Expected Losses) (2,650,553) - (116,459) (2,767,012) Amortized Cost (Credit Operations) (2,600,094) - (116,459) (2,716,553) (Other Financial Assets) (50,459) - - (50,459) Tax Assets 3,644,538 - 133,471 3,778,009 Current 143,649 - - 143,649 Deferred 3,500,889 - 133,471 3,634,360 Other Assets 545,642 - 2,450 548,092 Investments 3,663,411 - (740) 3,662,671 Investments in Shares in Associated and Subsidiary Companies 3,663,411 - (740) 3,662,671 Property and Equipment 481,248 - 231,037 712,285 Property and Equipment 1,152,022 - 461,899 1,613,921 (Accumulated Depreciation) (670,774) - (230,862) (901,636) Intangible 466,066 - - 466,066 Intangible Assets 1,891,692 - - 1,891,692 (Accumulated Amortization) (1,425,626) - - (1,425,626) Total Assets 146,946,990 - 243,566 147,190,556
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Financial Statements June 30, 2025 26 Balance Sheet – Liabilities and Equity Parent Classification prior to the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Effects of CMN Resolutions No. 4,966/21 and 4,975/21 Classification after the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Balance as of 12/31/2024 Reclassification Remeasurement Balance as of 01/01/2025 Financial Liabilities 131,508,923 - 407,726 131,916,649 Deposits 88,646,235 - - 88,646,235 Amortized Cost Repurchase Agreements 22,336,231 - - 22,336,231 Amortized Cost Resources for Acceptance and Issuance of Securities 7,694,618 - - 7,694,618 Amortized Cost Subordinated Debt 2,302,526 (1,880,714) - 421,812 Amortized Cost - 1,880,714 - 1,880,714 At Fair Value through Profit or Loss Borrowings 2,262,234 - 246,950 2,509,184 Amortized Cost Onlendings 3,065,190 - - 3,065,190 Amortized Cost Derivativies - - - - At Fair Value through Profit or Loss Other Financial Liabilities 5,201,889 (4,741) - 5,197,148 Amortized Cost - 4,741 160,776 165,517 Provision for Expected Loss Civil, Tax and Labor Provisions 2,895,167 - - 2,895,167 Tax Obligations 420,391 - - 420,391 Current 132,452 - - 132,452 Deferred 287,939 - - 287,939 Other Liabilities 1,712,507 (359,555) - 1,352,952 - 643 - 643 - 358,912 358,912 Other Financial Assets Total Liabilities 136,536,988 - 407,726 136,944,714 Capital 8,000,000 - - 8,000,000 Capital Reserves 5,098 - - 5,098 Profit Reserves 2,511,118 - - 2,511,118 Other Comprehensive Results (OCR) (106,214) - - (106,214) Acumulated Profits - - (164,160) (164,160) Non-Controlling Interest - - - - Total Equity 10,410,002 - (164,160) 10,245,842 Total Liabilities and Equity 146,946,990 - 243,566 147,190,556
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Financial Statements June 30, 2025 27 Balance Sheet – Assets Consolidated Classification prior to the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Effects of CMN Resolutions No. 4,966/21 and 4,975/21 Classification after the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Balance as of 12/31/2024 Reclassification Remeasurement Balance as of 01/01/2025 Cash 1,126,982 - - 1,126,982 Financial Assets 143,296,100 - (6,193) 143,289,907 Interbank Liquidity Applications 2,603,917 - (11,189) 2,592,728 Amortized Cost Compulsory Deposits at the Central Bank of Brazil 11,716,930 - - 11,716,930 Amortized Cost Securities 58,309,904 (23,211,158) (60) 35,098,686 Amortized Cost - 4,861,110 - 4,861,110 At Fair Value through Profit or Loss - 18,350,048 - 18,350,048 At Fair Value Through Other Comprehensive Income Derivatives 324,298 - - 324,298 At Fair Value through Profit or Loss Credit and Financial Leasing Operations 62,058,943 - 5,056 62,063,999 Amortized Cost Other Financial Assets 8,282,108 (87,116) - 8,194,992 Amortized Cost - 87,116 - 87,116 Credit and Financial Leasing Operations (Provisions for Expected Losses) (2,651,713) - (116,991) (2,768,704) Amortized Cost (Credit Operations) (2,600,487) - (116,393) (2,716,880) (Other Financial Assets) (51,226) - (598) (51,824) Tax Assets 3,726,655 - 133,635 3,860,290 Current 158,520 - - 158,520 Deferred 3,568,135 - 133,635 3,701,770 Other Assets 615,460 - 2,450 617,910 Investments 175,824 - - 175,824 Investments in Shares in Associated and Subsidiary Companies 175,824 - - 175,824 Property and Equipment 662,574 - 234,990 897,564 Property and Equipment 1,462,657 468,547 1,931,204 (Accumulated Depreciation) (800,083) (233,557) (1,033,640) Intangible 466,066 - - 466,066 Intangible Assets 1,893,179 - - 1,893,179 (Accumulated Amortization) (1,427,113) - - (1,427,113) Total Assets 147,417,948 - 247,891 147,665,839
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Financial Statements June 30, 2025 28 Balance Sheet – Liabilities and Equity Consolidated Classification prior to the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Effects of CMN Resolutions No. 4,966/21 and 4,975/21 Classification after the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21 Balance as of 12/31/2024 Reclassification Remeasurement Balance as of 01/01/2025 Financial Liabilities 131,616,061 - 412,051 132,028,112 Deposits 88,194,890 - - 88,194,890 Amortized Cost Repurchase Agreements 22,238,994 - - 22,238,994 Amortized Cost Resources for Acceptance and Issuance of Securities 6,936,464 - - 6,936,464 Amortized Cost Subordinated Debt 2,302,526 (1,880,714) - 421,812 Amortized Cost - 1,880,714 - 1,880,714 At Fair Value through Profit or Loss Borrowings 2,262,234 - 251,275 2,513,509 Amortized Cost Onlendings 3,065,190 - - 3,065,190 Amortized Cost Derivativies - - - - At Fair Value through Profit or Loss Other Financial Liabilities 6,615,763 (4,741) - 6,611,022 Amortized Cost - 4,741 160,776 165,517 Provision for Expected Loss Civil, Tax and Labor Provisions 2,902,896 - - 2,902,896 Tax Obligations 554,540 - - 554,540 Current 252,765 - - 252,765 Deferred 301,775 - - 301,775 Other Liabilities 1,930,743 (643) - 1,930,100 Provision for Expected Loss - 643 - 643 Other Financial Assets Total Liabilities 137,004,240 - 412,051 137,416,291 Capital 8,000,000 - - 8,000,000 Capital Reserves 5,098 - - 5,098 Profit Reserves 2,511,118 - - 2,511,118 Other Comprehensive Results (106,214) - - (106,214) Acumulated Profits - - (164,160) (164,160) Non-Controlling Interest 3,706 - - 3,706 Total Equity 10,413,708 - (164,160) 10,249,548 Total Liabilities and Equity 147,417,948 - 247,891 147,665,839
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Financial Statements June 30, 2025 29 Reconciliation of Net Equity after the adoption of CMN Resolutions No. 4,966/21 and 4,975/21 Balance Sheet – Net Worth Parent Consolidated Equity as of 12/31/2024 10,410,002 10,413,708 Interbank Liquidity Applications (11,189) (11,189) Securities (60) (60) Credit and Financial Leasing Operations 5,056 5,056 (Provisions for Expected Losses) (116,459) (116,991) Tax Assets 133,471 133,635 Other Assets 2,450 2,450 Investiments (740) - Property and Equipment 231,037 234,990 Borrowings (246,950) (251,275) Provision for Expected Loss (160,776) (160,776) Equity as of 01/01/2025 10,245,842 10,249,548 In summary, the following tables present the Individual and Consolidated Balance Sheet, with the accounting balances on 01/01/2025 after the adoption of CMN Resolutions No. 4,966/21 and No. 4,975/21. Balanço Patrimonial Parent Consolidated Assets 01/01/2025 01/01/2025 Cash 1,126,979 1,126,982 Financial Assets 136,896,454 140,521,203 At Amortized Cost 113,977,434 116,985,747 Compulsories 11,716,930 11,716,930 Interbank Liquidity Applications 2,592,728 2,592,728 Securities 35,090,776 35,098,686 Credit and Financial Leasing Operations 62,137,401 62,151,115 Other Financial Assets 5,206,611 8,194,992 (Provision for Expected Loss Associated with Credit Risk) (2,767,012) (2,768,704) (Loans) (2,716,553) (2,716,880) (Other Financial Assets) (50,459) (51,824) At Fair Value Through Other Comprehensive Income 18,348,164 18,350,048 Securities 18,348,164 18,350,048 At Fair Value Through Profit or Loss 4,570,856 5,185,408 Securities 4,246,558 4,861,110 Derivativies 324,298 324,298 Tax Assets 3,778,009 3,860,290 Current 143,649 158,520 Deferred 3,634,360 3,701,770 Other Assets 548,092 617,910 Investiments 3,662,671 175,824 Investments in Shares in Subsidiaries and Associates 3,662,671 175,824 Property and Equipment 712,285 897,564 Property and Equipment 1,613,921 1,931,204 (Accumulated Depreciation) (901,636) (1,033,640) Intangible 466,066 466,066 Intagible Assets 1,891,692 1,893,179 (Accumulated Amortization) (1,425,626) (1,427,113) Total Assets 147,190,556 147,665,839
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Financial Statements June 30, 2025 30 Balance Sheet Parent Consolidated Liabilities 01/01/2025 01/01/2025 Financial Liabilities 132,276,204 132,028,755 At Amortized Cost 130,229,330 129,981,881 Deposits 88,646,235 88,194,890 Repurchase Agreements 22,336,231 22,238,994 Resources for Acceptance and Issuance of Securities 7,694,618 6,936,464 Subordinated Debt 421,812 421,812 Borrowings 2,509,184 2,513,509 Onlendings 3,065,190 3,065,190 Other Financial Liabilities 5,556,060 6,611,022 At Fair Value through Profit or Loss 1,880,714 1,880,714 Subordinated Debt 1,880,714 1,880,714 Provision for Expected Loss 166,160 166,160 Credit Commitments and Credits to be Released 165,517 165,517 Financial Guarantees Provided 643 643 Civil, Tax and Labor Provisions 2,895,167 2,902,896 Tax Liabilities 420,391 554,540 Current 132,452 252,765 Deferred 287,939 301,775 Other Liabilities 1,352,952 1,930,100 Total Liabilities 136,944,714 137,416,291 Equity Capital 8,000,000 8,000,000 Capital Reserves 5,098 5,098 Profit Reserves 2,511,118 2,511,118 Other Comprehensive Results (OCR) (106,214) (106,214) Retained Profits (Losses) (164,160) (164,160) Non-Controlling Interest - 3,706 Total Equity 10,245,842 10,249,548 Total Liabilities and Equity 147,190,556 147,665,839 (c) Standards to be Adopted in Future Periods Law No. 14,467/22 and Law No. 15,078, applicable from January 1, 2025: Law No. 14,467/22 modified the tax treatment applicable to losses incurred in the receipt of credits arising from the activities of financial institutions and other institutions authorized to operate by Bacen, determining the application of factors for the deductibility of these losses in operations with a delay of more than 90 days through the application of percentages according to the classified portfolio and the number of months from the default. As amended by Law No. 15,078/24, which amended Article 6 of Law No. 14,467/22, it was established that, in relation to credit and financial leasing transactions that were in default on December 31, 2024 and that have not been deducted/recovered up to that date, these may only be deducted in the calculation of IR and CSLL at a ratio of 1/84 or 1/120 as of January 1, 2026 , the option can be made , for which reason it will be used until December 31, 2025 . Furthermore, for the year 2025, it is prohibited to deduct losses on credit and financial leasing transactions incurred in an amount greater than the real profit for the year, before computing this deduction. The balance related to this loss will be added to the balance of the losses described above, being deducted at the same ratio as these, according to the option made. As permitted by law, Banrisul will opt for the reason used to deduct IR and CSLL calculations until December 31, 2025. CMN Resolution No. 5,185/24, applicable from January 1, 2025: amends Resolution No. 4,818/20, making it mandatory to disclose the Sustainability -Related Financial Information Report by financial institutions authorized to operate by Bacen, registered as publicly -held companies that are leaders of a prudential conglomerate classified in Segment 1 (S1), Segment 2 (S2) or Segment 3 (S3), which Banrisul is part of. As permitted by CMN Resolution No. 5,185/24, Banrisul will adopt the regulation only when it becomes mandatory, starting in fiscal year 2026. BCB Resolution No. 352/23, applicable from January 1, 2025 – Hedge Transactions: BCB Resolution No. 352/23 has been adopted by Banrisul since January 1, 2025. However, with regard to hedge transactions, the
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Financial Statements June 30, 2025 31 resolution establishes that the reclassification of these transactions to the new categories will only occur as of January 1, 2027. Banrisul will reclassify hedge operations starting January 1, 2027. BCB Resolution No. 397/24, applicable from January 1, 2025 – Measurement of Restructured Instruments: Resolution No. 397/24 has been adopted by Banrisul since January 1, 2025. However, regarding the restructuring of financial assets, as provided for in article 95º-A of BCB Resolution No. 352/23 (included by BCB Resolution No. 397/24), the use of the renegotiated effective interest rate is permitted until December 31, 2026, to calculate the present value of the restructured contractual cash flows referred to in article 22 of BCB Resolution No. 352/23. As permitted by the regulation, Banrisul will use the effective interest rate originally contracted from January 1, 2027. Note 03 - Summary of Main Accounting Policies The significant accounting policies applied to prepare the financial statements are presented below: (a) Functional Currency and Presentation Currency The items included in the financial statements of each of the companies of the Banrisul Group are measured using the currency of the main economic environment in which the company operates: functional currency. The financial statements are presented in reais, which is the functional currency and also the presentation currency of Banrisul. (b) Cash and Cash Equivalents Cash and cash equivalents are represented by cash on hand and bank deposits, interbank liquidity investments and securities with an original maturity of 90 days or less and which present an insignificant risk of change in fair value. (c) Financial Assets and Liabilities Financial assets are classified and recognized from the beginning of the operation according to the categories amortized cost (AC), fair value through other comprehensive income ( FVOCI), and fair value through profit or loss (FVTPL). Liabilities, in general, are classified and recognized according to the treatment of the operation as in AC and, for some exceptions, according to the treatment of the operation, as in FVTPL, without the possibility of reclassification. The concept of financial assets and liabilities described herein are in accordance with CMN Resolution No. 4,966/21. • Amortized Cost (AC): is the amount at which the financial asset or liability is measured at initial recognition, plus any adjustments made using the effective interest method, less the amortization of principal and interest, adjusted for any provision for expected loss associa ted with credit risk. • Fair Value: is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. • Fair Value in Other Comprehensive Income (FVOCI) : the recognition of certain changes in the fair value of assets or liabilities that are not immediately reflected in the Income Statement, but rather in a separate section of equity called OCI, in Other comprehensive income includes items of revenue, expense, gains and losses that are not realized and that, in accordance with accounting standards, are not recorded in the Income Statement for the current period. Instead, these items are presented in the Balance Sheet and affect the company's equity, being rec ognized in the Statement of Comprehensive Income until certain criteria for their realization are met, at which point they are reclassified to the Income Statement . • Fair Value in Profit or Loss (FVP) : involves recording the fair value of a financial asset or liability in the Income Statement.
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Financial Statements June 30, 2025 32 The initial recognition of a financial asset is the accounting process by which Banrisul includes a financial asset in its balance sheet for the first time. Upon initial recognition, the financial asset is measured at its fair value, which is generally the transaction price, i.e., the amount paid to acquire the asset, including any transaction costs directly attributable to the acquisition or issuance of the financial asset, unless the asset is measured at FVTPL, in which case the transaction costs are recognized immediately in profit or loss. As established by CMN Resolution No. 4,966/21, instruments classified in the AC or FVOCI categories must be adjusted as follows: • In the case of financial assets, transaction costs individually attributable to the transaction must be added and any amounts received upon acquisition or origination of the instrument deducted; and • • In the case of financial liabilities, transaction costs individually attributable to the transaction must be deducted and any amounts received upon issuance of the instrument must be added. Therefore, as established by CMN Resolution No. 4,966/21, financial instruments classified in the FVTPL or FVOCI categories must be measured at fair value, considering the appreciation or depreciation in the counterpart account of (i) revenue/expense, in the result of the period, if a financial instrument at FVTPL; or (ii) OCI, at the net value of tax effects, if a financial instrument at FVOCI. Financial Instruments Measured at Fair Value: When determining and disclosing the fair value of financial instruments, Banrisul uses the following hierarchy: • Level 1: prices quoted in active markets for the same instrument without modification; • Level 2: prices quoted in active markets for similar instruments or valuation techniques, for which all significant inputs are based on observable market data; and • Level 3: valuation techniques, for which any significant input is not based on observable market data. The fair value of financial instruments, including derivatives that are not traded in active markets, is calculated using valuation techniques based on assumptions, which take into account market information and conditions, such as historical data, informa tion on similar transactions and reference rates calculated from financial market information and conditions. For more complex instruments or those that are not liquid, considerable judgment is required to define the model to be used, selecting specific inputs. In some cases, valuation adjustments are applied to the model value or quoted price for financial instru ments that are not actively traded. Banrisul does not have financial instruments classified at Level 3 of the fair value hierarchy, except for the interest of one of its subsidiaries that holds shares in investment funds, as presented in Note 5g. (c.1) Classification of Financial Assets Financial assets are classified and subsequently measured in the following categories: • Financial Assets at AC: assets managed to obtain cash flows consisting of only payment of principal and interest (SPPJ Test). They are initially recognized at fair value plus transaction costs and subsequently measured at amortized cost, using the effective interest method (TJE ). • Financial Assets at FVOCI: assets managed both to obtain cash flows consisting of only payment of principal (SPPJ Test) and for sale. They are initially and subsequently recognized at fair value plus transaction costs, and unrealized gains and losses (except expected credit loss, exchange differences, dividends and interest income) are recognized, net of applicable taxes, in other comprehensive income. • Financial Assets at FVTPL: assets that do not meet the classification criteria of the previous categories or assets designated at initial recognition as FVTPL to reduce accounting mismatches. They are initially and subsequently recognized at fair value. Transaction costs are recorded directly in the Income Statement and gains and losses arising from changes in fair value are recognized as net gains (losses) on financial assets and liabilities at fair value.
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Financial Statements June 30, 2025 33 Subsequent measurement of financial assets refers to the accounting process of updating the value and treatment of a financial asset in the financial statements after its initial recognition. This process is continuous and occurs in each subsequent account ing period until the asset is removed from the financial statements, and the classification and subsequent measurement of financial assets depend on the business model in which they are managed and the characteristics of their cash flows (SPPJ Test). Business Models Banrisul's business models represent the way in which financial assets are jointly managed to generate cash flows and do not depend solely on the Management's intentions regarding an individual instrument. Financial assets may be managed for the purpose of obtaining contractual cash flows; obtaining contractual cash flows and selling them; or others. For the first two purposes, it is necessary to satisfy the concept of a basic loan agreement (pass the SPPJ Test). To assess business models, the following are taken into account: the risks that affect the performance of the business model; how business managers are remunerated; and how the performance of the business model is assessed and reported to Management. Contractual Characteristics of Cash Flows – SPPJ Test The SPPJ Test consists of the process of evaluating contractual cash flows from the origination, acquisition or issuance of a financial instrument with the aim of verifying whether the respective cash flows consist only of payment of principal and interest, that is, they are aligned with the conc ept of a basic loan agreement. (c.2) Classification of Financial Liabilities Banrisul classifies its passive operations and measures them following the standard for each of the categories. • Financial Liabilities to the Board of Directors: by definition, financial liabilities will be classified to the Board of Directors, in accordance with Resolution No. 4,966/21. • Exception for Financial Liabilities: the exception for classification to the Board of Directors includes financial liabilities generated in transactions involving loans or leases of financial assets that will be classified at FVTPL; financial liabilities generated by the transfer of financial assets that must be measured and recognized; credit commitments and credits to be released that must be recognized and measured; and financial guarantees provided, in accordance with Resolution No. 4,966/21. Financia l guarantees provided must be measured at the highest value between: i) the provision for expected losses associated with credit risk; and ii) the fair value at initial recognition less the accumulated amount of revenue recognized in accordance with specific regulations. (c.3) Effective Interest Rate The effective interest method is based on the application of the effective interest rate (EIR) to the gross carrying amount of the instrument. In turn, the TJE is the rate that equalizes the present value of all receipts and payments over the contractual term of the financial asset or liability to its gross carrying amount. To calculate the TJE, Banrisul adopts the differentiated method for credit transactions, with the appropriation of expenses related to transaction costs in the origination of the financial instrument being carried out linearly or proportionally to the contractual revenues, depend ing on the characteristics of the contract. The calculation includes all commissions paid or received between the parties to the contract, transaction costs and all other premiums or discounts. Interest income is calculated and recognized in accounting ter ms by applying the TJE to the gross carrying amount of the financial asset. (c.4) Expected Credit Loss Associated with Credit Risk
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Financial Statements June 30, 2025 34 Banrisul assesses, on a prospective basis, the expected loss associated with the credit risk of financial assets measured at AC, FVOCI and FVTPL that are measured at levels 2 or 3 in the fair value hierarchy; of credit commitments to be released; and of financial guarantee contracts provided. • Financial assets: the loss is measured by the present value of the difference between the contractual cash flows and the cash flows that Banrisul expects to receive discounted by the rate actually charged; • Loan commitments: the loss is measured by the present value of the estimated use of the resources from credit commitments and the present value of credits to be released; and • Financial guarantee contracts: the loss is measured by the present value of the estimated future disbursements Banrisul assesses whether the credit risk has increased significantly individually and collectively. For collective assessment purposes, financial assets are grouped based on shared credit risk characteristics, which may take into account: the type of inst rument, credit risk ratings, initial recognition date, remaining term, line of business, among other factors. Banrisul applies the three -stage approach to measure expected credit loss, in which financial assets migrate from one stage to another based on the extent of deterioration in credit quality since origination as follows: • Stage 1: from the initial recognition of a financial asset until the date on which the asset has undergone a significant increase in credit risk in relation to its initial recognition, provided that the asset is not delayed for more than 30 days, the pro vision for loss is recognized to represent the credit losses resulting from probable losses (defaults) expected over the next 12 months. Applicable to financial assets originated or acquired without credit recovery problems and, at this stage, income is ca lculated on the gross balance of the asset. • Stage 2: after a significant increase in credit risk in relation to the initial recognition of the financial asset, or in the case of a delay between 30 and 90 days, the provision for loss is recognized to represent the expected credit losses during the remaining useful life of the asset. Applicable to financial assets originated or acquired without credit recovery problems whose credit risk has increased significantly and income continues to be calculated on the gross balance of the asset. • Stage 3: assets recorded at this stage are financial instruments with recovery problems. This stage includes assets with quantitative non -compliance (assessed based on the number of days past due – over 90 days) and/or qualitative non -compliance, charact erized by indications that the client will not fully honor its obligations. In this case, given that the asset has already become problematic, the probability of default is considered to be 100% (one hundred percent), ceasing the appropriation of the incom e from the operation. Revenue recognition will occur upon actual payment of the transaction in full or in part or, prospectively, from the period in which the instrument ceases to be characterized as a financial asset with a credit recovery problem. Operations previously written off as losses and now recovered are also recorded at this stage, with the income from these operations being duly appropriated on an accrual basis. The reclassification of assets will be carried out in accordance with the criteria established in current regulations. Complete Methodology for Provisioning Losses Associated with Credit Risk: is a set of detailed procedures for calculating expected losses and quantitative reference parameters applied to the base provisioning of institutions authorized to operate by Bacen and classified between segments S1 and S3. Banrisul is classified in segment S2. Banrisul uses internal statistical models to estimate expected losses resulting from credit risk. The methodology requires an in-depth analysis of each exposure to credit risk, taking into account factors such as: • Probability of Default (PD): percentage representing the probability of default of a financial instrument over its expected life; • Loss Given Default (LGD): percentage representing the loss, given the occurrence of default;
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Financial Statements June 30, 2025 35 • Exposure at Default (EAD): monetary value representing Banrisul's exposure at the time of default; • Credit Conversion Fator (CCF): percentage representing the conversion factor into credit of the available limits. In this way, Banrisul is able to manage credit risk accurately and dynamically, adjusting provisions for credit losses according to changes in economic conditions and the risk profile of borrowers (counterparties). Furthermore, in accordance with CMN Resolution No. 4,966/21 and BCB Resolution No. 352/23, it is necessary to individually estimate the following parameters in percentage terms: • Probability of the instrument being characterized as an asset with credit recovery problems (Problematic Asset); • Expectation of recovery of the financial instrument. Macroeconomic Factors, Prospective Information and Multiple Scenarios: include inherent risks, market uncertainties and other factors that may generate results that differ from those expected. Such factors are used to assess a range of possible results that incorporate forecasts of future economic conditions and prospective information is therefore incorporated into the measurement of expected loss, as well as in determining whether there has been a significant increase in credit risk since the origination of the transaction. Minimum Provision Percentages for Losses Incurred Associated with Credit Risk: Resolution No. 352/23 defines minimum percentages of provision to be constituted for losses incurred associated with credit risk for defaulted financial assets (assets with a delay of more than 90 days in relation to the payment of principal or charges). The percentages are defined according to the portfolio in which the defaulted asset is classified. Resolution No. 352/23 classifies financial assets in the following portfolios: • Portfolio 1 (C1): o Credits secured by fiduciary transfer of real estate; and o Credits with a fiduciary guarantee from the Union, central governments of foreign jurisdictions and their respective central banks or multilateral organizations and multilateral development entities. • Portfolio 2 (C2): o Credits from commercial leases, under the terms of Law No. 6,099/74; o Credits secured by first -degree mortgages on residential properties, by pledges of movable or immovable property or by fiduciary transfer of movable property; o Credits secured by demand, term or savings deposits; o Credits arising from financial assets issued by a federal public entity or by institutions authorized to operate by the Central Bank; o Credits with a fiduciary guarantee from institutions authorized to operate by the Central Bank; and o Credits covered by credit insurance issued by an entity that is not a related party of the institution, pursuant to Resolution No. 4,818/20; • Portfolio 3 (C3): o Credits arising from credit rights discount transactions, including acquired commercial receivables and transactions formalized as the acquisition of commercial receivables from a person not part of the National Financial System and in which the same person is a joint or subsidiary debtor of the receivables; o Credits arising from transactions guaranteed by fiduciary assignment, collateral of credit rights or pledge of credit rights; and o Credits covered by credit insurance, real guarantee or personal guarantee not covered by the hypotheses in portfolios C1 and C2; • Portfolio 4 (C4): o Credits for working capital, advances on exchange contracts, advances on exchange delivered, debentures and other securities issued by private companies, without guarantees or collateral; and o Rural credit operations without guarantees or collateral intended for investments; or • Portfolio 5 (C5): o Personal credit operations, with or without consignment, direct consumer credit, rural credit not covered by the hypotheses provided for in C4 and credit in the revolving modality without guarantees or collateral;
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Financial Statements June 30, 2025 36 o Credits without guarantees or collateral not covered by the hypotheses provided for in C4; and o Credits arising from commercial operations and other operations with credit granting characteristics not covered in portfolios C1, C2, C3 and C4. (c.5) Troubled Assets A problematic asset is a financial asset with a credit recovery problem, that is, when the financial asset incurs (i) a delay of more than 90 (ninety) days in the payment of principal or charges; or (ii) an indication that the respective obligation will no t be fully honored under the agreed conditions, without the need to resort to guarantees or collateral. (c.6) Stop Accrual Stop accrual is the procedure for ceasing the recognition of revenue, fines, default interest, origination expenses or other financial activities of any nature on the financial asset with a credit recovery problem. Banrisul carries out this process consist ently, not recognizing in the income statement for the period any revenue of any nature not yet received related to financial assets with a credit recovery problem. (c.7) Retained Income Revenue and charges from financial instruments should be recognized in the income statement pro rata temporis. However, revenue of any nature not yet received related to a financial asset with a credit recovery problem is no longer recognized. From the mom ent the financial instrument is no longer characterized as a financial asset with credit recovery problems, Banrisul resumes recognizing revenues related to the financial instrument, thus, all retained income is recognized. (c.8) Renegotiation and Restructuring • Renegotiation: agreement that implies a change in the originally agreed conditions of the instrument or the replacement of the original financial instrument by another, with partial or full settlement or refinancing of the respective original obligation. • Restructuring: renegotiation that implies significant concessions to the counterparty, due to the relevant deterioration of its credit quality, which would not be granted if such deterioration had not occurred. As provided for in CMN Resolution No. 5,146/24, the use of t he renegotiated effective interest rate to determine the present value of the restructured contractual cash flows is permitted until December 2026. Therefore, until December 2026, Banrisul will use the interest rate agreed at the time of r enegotiation instead of the effective interest rate originally agreed. (c.9) Write-Off of Financial Assets Financial assets are written off when the rights to receive cash flows are extinguished or Banrisul transfers substantially all the risks and rewards of ownership and such transfer qualifies for write-off in accordance with the requirements of CMN Resolution No. 4,966/21 and BCB Resolution No. 352/23. If it is not possible to identify the transfer of all risks and rewards, the control is assessed to determine whether the ong oing involvement related to the transaction does not prevent the write-off. If the assessment characterizes the retention of risks and rewards, the financial asset remains recorded and a liability is recognized for the consideration received. (c.10) Write-Off Criteria When there are no reasonable expectations of recovery of a financial asset, considering historical data, its write-off is performed simultaneously with the reversal of the related provision for expected credit loss. Furthermore, according to CMN Resolution No. 4,966/21, revenue of any nature from a financial asset with credit recovery problems may only be allocated to the result after its actual receipt or, when it is subject to renegotiation, pro rata temporis. (c.11) Applications in the Open Market
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Financial Statements June 30, 2025 37 Banrisul has purchase operations with a resale commitment and sale with a repurchase commitment of assets. Resale commitments and repurchase commitments are recorded under the headings open market applications and open market funding, respectively. The dif ference between the sale and repurchase price is treated as financial income and is recognized over the term of the agreement using the effective interest rate method. Financial assets accepted as collateral in resale commitments may be used by Banrisul, when permitted by the terms of the agreements, as collateral for repurchase commitments or for trading. Financial assets given as collateral to counterparties are also maintained in the financial statements. When the counterparty has the right to trade or use as collateral the securities given as collateral, such securities are reclassified in the Balance Sheet under the appropriate class of financial assets. (c.12) Derivative Financial Instruments Derivative financial instruments are classified, on the date of their acquisition, according to whether Management intends to use them as a hedging instrument or not. These instruments are measured at fair value, with gains or losses recognized in income o r expense accounts of the respective financial instruments in the Income Statement. Banrisul carries out transactions with fixed-rate government securities in a combined manner with derivative contracts (DI1 Futures Contract), which have as their underlying asset the average daily rate of Interbank Deposits (DI), calculated and disclosed by Brasil, Bolsa, Balcão S.A. (B3). These contracts are used to hedge and manage interest rate risk of assets and/or liabilities in order to offset the risk of fluctuation in the DI rate. Daily adjustments of futures transactions are made daily based on fair value, using market prices practiced on the reference date, and are recorded in asset or liability accounts, depending on the nature of the adjustment, and settled on D+1. Banrisul also adopts hedge accounting, in the fair value hedge category, to account for swap transactions. These instruments, as well as the financial assets and liabilities that are hedged, are recorded at fair value, with realized and unrealized gains and losses recognized directly in the Income Statement. In the fair value hedge category, Banrisul included the derivative financial instruments contracted to hedge against the variation in foreign currency originating from subordinated notes issued in the foreign market in the amount of US$300 million, in acco rdance with the conditions previously agreed upon in the Offering Memorandum, as presented in Note 21. The fair value hedge was established through a designation documented at the beginning of the transaction. This designation describes the relationship between the objects and the derivative instruments used for protection, as well as the risk management ob jectives and the strategy to mitigate the effects arising from exposure to the variation in fair value. Gains or losses arising from the measurement of the fair value of the hedged item, which correspond to the effective portion of the hedge, are recognized in the income statement. If the accounting hedge is discontinued, any adjustment to the carrying value of the hedged item will be amortized over the life of the transaction in the income statement. In risk management, Banrisul periodically performs and documents tests to determine the level of effectiveness of hedge accounting transactions in offsetting changes in the fair value of hedged items during the period in which this protection is in effect. To assess the effectiveness of the Fair Value hedge, Banrisul adopts the DV01 method to evaluate the economic relationship. Derivative transactions are based on over - the-counter contracts registered with B3, and have as counterparties financial institutions classified as first - tier. The determination of the fair value of these transactions is performed through modeling techniques, such as discounted cash flow.
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Financial Statements June 30, 2025 38 Furthermore, regarding the accounting treatment of foreign exchange transactions, in accordance with CMN Resolutions No. 4,966/21 and BCB Resolution No. 352/23, these transactions are now treated as derivative financial instruments. (c.13) Credit Operations The credit risk area is responsible for defining the methodology used to measure the expected loss associated with credit risk and for regularly assessing the evolution of provision amounts. This area monitors the trends observed in the provision for expec ted credit loss by segment, in addition to establishing an initial understanding of the variables that impact PD, LGD, CCF and scenario assessment and, consequently, the provision. Once the trends are identified and an initial assessment of the variables i s made at the corporate level, the business areas become responsible for deepening the analysis of these trends at a detailed level and by segment, to understand the reasons related to these trends and decide whether changes will be necessary in the policies for granting or measuring expected credit losses. (c.14) Credit Commitments and Credits to be Released and Financial Guarantees Provided Credit commitments are the limits contracted by Banrisul customers, mainly in the form of Banricompras, credit card and overdraft products. Credit commitments and credits to be released are limits granted to customers, limits which (i) cannot be canceled unconditionally and unilaterally by Banrisul; (ii) cannot be canceled or suspended in the normal management of these financial instruments; or (iii) Banrisul does not have the means to individually monitor these financial instruments or the financial situation of the counterparty in a way that allows the immediate cancellation, blocking or suspension of the commitment or the disbursement of funds, in the event of a reduction in the financial capacity of the counterparty. Banrisul recognizes in the Balance Sheet as an obligation, in the financial liabilities group, under the provision for expected loss item, the fair value of the guarantees issued, on the date of their issuance. The fair value is generally represented by the fee charged to the customer for issuing the guarantee. This amount is amortized over the term of the guarantee issued and recognized in the Income Statement under the service provision item. If, after issuance and based on the best estimate, it is concluded that the occurrence of a loss in relation to the guarantee issued is probable and the amount of the loss is greater than the initial fair value less the accumulated amount of recognized revenue, a provision is recognized for such amount. Financial guarantees provided covered by CMN Resolutions No. 4,966/21 and BCB Resolution No. 352/23 are subject to provisioning and qualify as a parameter for the definition of problematic assets. In this scenario, the loss is measured by the difference be tween the expected payments to reimburse the counterparty and the amounts that Banrisul expects to recover. The floors do not apply to financial guarantees, except when the guarantee is honored, at which point it becomes an asset. (d) Investments Investments in associates and subsidiaries are initially recognized at cost and subsequently measured using the equity method, based on the equity value of the associate or subsidiary. (e) Property and equipment Property in use mainly comprises land and buildings. Property in use is stated at historical cost less depreciation, as are all other items of property, plant and equipment. Historical cost includes expenditure directly attributable to the acquisition or construction of the assets. Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits will flow from the item and its cost can be reliably measured. All other repairs and maintenance are recognized in the income statement as operating
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Financial Statements June 30, 2025 39 expenses provided that they do not effectively result in an increase in the useful life, efficiency or productivity, when incurred. Land is not depreciated. Depreciation of other assets is calculated using the straight -line method to allocate their costs to their residual values over their estimated useful lives, as shown below: Permanent Assets Average Estimated Useful Life in Years Property 60.00 Facilities 25.00 Equipment in Use 16.60 Other 13.30 The residual values and useful lives of assets are reviewed and adjusted, if appropriate, at the end of each fiscal year. The useful lives are reviewed annually and a corresponding report is issued. Assets subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Gains and losses on disposals are determined by comparing the results with the carrying amount and are recognized in other operating income (expenses) in the Income Statement. In leasing transactions as a lessee, Banrisul treats the transactions in accordance with CPC 06(R2), insofar as they do not conflict with CMN Resolution No. 4,975/21, which came into effect on January 1, 2025. (f) Intangible Assets This group basically consists of investments of resources whose resulting benefits will occur in future years, initially recognized at cost (Note 18). This group is represented by contracts for the provision of banking services and the acquisition of softw are with a defined useful life, amortized using the straight -line method, as described below: Intangible Average Estimated Useful Life in Years Payroll Services Acquisition Rights 5.00 to 10.00 Software 8.00 Payroll Services Acquisition Rights: comprises contracts signed relating to the assignment of services related to payroll with public and private entities: • Public Sector: rights acquired through onerous granting of exclusivity rights with the State of Rio Grande do Sul, city halls and public bodies. Internal and specialist studies were carried out, and no evidences of impairments related to these assets was identified. • Private Sector: valid for five years, being amortized over the elapsed contractual period. No losses in the recoverable value of these assets were identified. Softwares: Software licenses are capitalized based on acquisition and readiness costs. These costs are amortized throughout the estimated lifespan of the software. • The costs associated with maintaining software are recognized as expense, as incurred. Development costs that are directly attributable to the project and to the testing of identifiable and unique software products controlled by Banrisul are recognized as intangible assets. • Directly attributable costs, capitalized as part of the software, include the costs of employees responsible for software development and the apportionment of the applicable indirect costs. Costs also include financing costs incurred during the software development period. • Other costs with software development that do not meet these criteria are recognized as incurred. Software development costs previously recorded into expense accounts are not recorded as assets in subsequent periods. Costs also include financing costs incurred during the software development period; andSoftware development costs recognized as assets are amortized over their estimated lifespan.
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Financial Statements June 30, 2025 40 • Other development expenditures that do not meet these criteria are recognized as expenses as incurred. Development costs previously recognized as expenses are not recognized as assets in a subsequent period. (g) Goods for Sale These are recorded upon receipt in the settlement of financial assets or upon the decision to sell own assets. These assets are initially recorded at the gross carrying amount of the difficult or doubtful financial instrument or fair value less selling cos ts, whichever is lower. Subsequent reductions in the fair value of the asset are recorded as a provision for impairment, with a corresponding charge in the income statement. In the event of recovery of the fair value, the recognized loss may be reversed. (h) Income Tax and Social Contribution on Net Income Tax expenses for the period include current and deferred Income Tax (IR) and Social Contribution on Net Income (CSLL). IR is recognized in the Income Statement, except to the extent that it is related to items recognized directly in OCI or in equity. In this case, the tax is also recognized in the same group. The provision for income tax is set up at a base rate of 15% of taxable income, plus an additional 10%. The CSLL rate for Banrisul is 20%, for Banrisul S.A. Corretora de Valores Mobiliários e Câmbio it is 15%, and for the other non-financial companies of the Banrisul Group it is 9%. Deferred income tax and CSLL are recognized on the respective taxable events and are determined using tax rates (and tax laws) enacted on the date of the Balance Sheet, which must be applied when the respective taxable event is realized or settled. On 01/01/2025, Law No. 14,467/22 came into force, modifying the tax treatment applicable to losses incurred in the receipt of credits arising from the activities of financial institutions and other institutions authorized to operate by Bacen, determining the application of factors for the deductibility of these losses in operations with a delay of more than 90 days through the application of percentages according to the classified portfolio and the number of months from the default. As amended by Law No. 15,078/24, which amended Article 6 of Law No. 14,467/22, it was established that, in relation to credit and financial leasing operations that were in default on 12/31/2024 and that have not been deducted/recovered by that date, these may only be deducted in the calculation of IR and CSLL at a ratio of 1/84 or 1/120 as of 01/01/2026. Banrisul may make the option up to 12/31/2025, for which reason it will use. Furthermore, for the year 2025, it is prohibited to deduct losses in credit an d financial leasing operations incurred in an amount greater than the real profit for the year, before computing this deduction. The balance relating to this loss will be added to the balance of the losses described above, being deducted at the same ratio, according to the option made. Deferred income tax and social contribution (CSLL) assets are recognized when it is probable that future taxable profits will be available against which they can be realized, as well as in the calculation of tax losses and negative CSLL basis. Deferred inc ome tax and social contribution related to the measurement of the fair value of financial assets through other comprehensive income are credited or debited to comprehensive income and, subsequently, recognized in income at the time of sale. The composition of income tax and social contribution amounts and the statement of their calculations, origin and expected realization of tax credits are presented in Notes 15 and 3 1. (i) Provisions, Contingent Liabilities and Contingent Assets Provisions for risks on amounts disputed in court are recognized when Banrisul has a legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be necessary to settle the obligation, and the amount is reliably estimated.
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Financial Statements June 30, 2025 41 The recognition, measurement and disclosure of contingent liabilities and contingent assets are carried out in accordance with CPC 25, and provisions are made based on the opinion of legal advisors, using models and criteria that allow their measurement in the most appropriate manner possible, despite the uncertainty inherent in their term and value at the outcome of the case. Provisions and Contingent Liabilities : the provision for contingent liabilities is recognized in the financial statements when, based on the provision policy and on the opinion of Banrisul's legal department, the risk of loss in a legal or administrative action is considered probable, with a probable outflow of resources for the settlement of the obligations and when the amounts involved are measurable with sufficient ce rtainty. Contingent liabilities classified as possible losses are not recognized in the accounts and should only be disclosed in the Explanatory Notes, while those classified as remote losses do not require provision or disclosure. Contingent Assets: are not recognized in the financial statements, except when there is evidence that provides a guarantee of their realization, for which there is no further recourse. (j) Obligations with Long-Term Post-Employment Benefits to Employees Retirement Obligations: Banrisul sponsors the Banrisul Social Security Foundation (FBSS) and the Employee Assistance Fund of the State Bank of Rio Grande do Sul (Cabergs), which ensure the supplementation of retirement benefits and medical assistance to its employees, respective ly. Pension Plans: Banrisul sponsors plans of the “defined benefit”, “variable contribution” and “defined contribution” types. A defined benefit plan is different from a defined contribution plan. In general, defined benefit plans establish a retirement benefit amount that an employee will receive upon retirement, usually depending on one or more factors, such as age, length of se rvice and remuneration. Defined contribution plans, on the other hand, establish fixed contributions to be paid by the sponsor, similar to a financial plan. The obligation recognized in the Balance Sheet for defined benefit pension plans is the present value of the obligation at the balance sheet date, less the fair value of the plan assets. The defined benefit obligation is calculated periodically by independent actuaries using the Projected Unit Credit Method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows using interest rates consistent with market yields, which are denominated in the currency in which the benefits will be paid and have maturity dates close to those of the respective pension plan obligation. The actuarial valuation is prepared based on assumptions and projections of interest rates, inflation, benefit increases, life expectancy, the effect of any limit on the employer's share of the cost of future benefits, employee or third-party contributions that reduce the final cost of these benefits to the entity, among others. The actuarial valuation and its assumptions and projections are updated on an annual basis, at the end of each fiscal year. Actuarial gains and losses resulting from adjustments for experience and changes in actuarial assumptions, when they occur, are recorded directly in equity, as OCI. The cost of benefits granted by defined benefit plans is established separately for each plan using the Projected Unit Credit Method. Past service costs, when incurred, are recognized immediately in income. Variable contribution plans include benefits with defined contribution characteristics, which are normal retirement, early retirement and funeral assistance. In this case, Banrisul has no additional payment obligation beyond the contribution that is made. Contributions are recognized as employee benefit expense. Contributions made in advance are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. In addition to these, there are benefits with defined benefit characteristics, which are disability retirement, proportional benefit, sickness benefit, annual bonus, minimum benefit and survivor's pension.
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Financial Statements June 30, 2025 42 The defined contribution plan has only retirement, disability retirement and survivor's pension benefits. The annual bonus is optional, requiring the participant to formalize the option. Health Plans: These are benefits provided by Cabergs and offer general health care benefits, the cost of which is established through a membership agreement. Banrisul also offers post -employment health care benefits to its employees. The expected costs of these benefits are accumulated over the period of employment, using the same accounting methodology used for defined benefit pension plans. Actuarial gains and losses resulting from adjustments based on experience and changes in actuarial assumptions are debited or credited to equity, in equity valuation adjustments. These obligations are periodically assessed by independent and qualified actuaries. The plan assets are not available to Banrisul's creditors and cannot be paid directly to Banrisul. Fair value is based on information on market prices and, in the case of listed securities, on market prices. The value of any recognized defined benefit asse t is limited to the sum of any past service cost not yet recognized and the present value of any economic benefit available in the form of reductions in future employer contributions to the plan. Retirement Bonus: Employees who retire are granted a retirement bonus proportional to the employee's fixed monthly remuneration in effect at the time of retirement. The commitments to these three types of post -employment benefits are periodically assessed and reviewed by independent and qualified actuaries. The result of the actuarial assessment may generate an asset to be recognized. This asset is recorded only when Banrisul: • Controls the resource: ability to use the surplus to generate future benefits; • This control is the result of past events: contributions paid by Banrisul and service rendered by the employee; and • Future economic benefits are available to Banrisul in the form of reductions in future contributions or cash refunds, directly or indirectly, to offset the insufficiency of another post -employment benefit plan in compliance with the applicable legislation. (k) Share Capital Common and preferred shares, which for accounting purposes are considered common shares without voting rights, are classified in equity. Incremental costs directly attributable to the issuance of new shares are shown in equity as a deduction from the amount raised, net of taxes. (l) Dividends and Interest on Equity Shareholders are guaranteed mandatory minimum dividends of 25% of net income for each year, adjusted in accordance with current legislation, by the bylaws. The minimum dividend amounts, established in the bylaws, and additional dividends are defined at the Annual or Extraordinary General Meeting, and are recorded as a liability at the end of each fiscal year. The amount of interest on equity (IOE) may be attributed to dividends and presented in the financial statements as a direct reduction in equity.
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Financial Statements June 30, 2025 43 (m) Profit Sharing Banrisul recognizes a liability and an expense for profit sharing (presented under personnel expenses in the Income Statement) based on a collective agreement. Banrisul recognizes a provision when it is contractually obligated or when there is a practice in past collective agre ements that creates a non -formalized obligation (constructive obligation). (n) Earnings per Share Earnings per Share (EPS) can be calculated in its basic form and in its diluted form. In the basic form, the effects of potentially dilutive financial instruments are not considered, such as: convertible preferred shares, convertible debentures and subscription bonuses – which can be converted into common shares, thus characterizing the dilutive potential of these instruments. In the calculatio n of diluted EPS, the effects of potentially dilutive financial instruments are considered. Banrisul does not have instruments that should be included in the calculation of diluted earnings per share, therefore, basic and diluted earnings per share are similar. (o) Calculation of Income In accordance with the accrual accounting principle, revenues and expenses are recorded in the period in which they occur, even if they have not been received or paid. When revenues and expenses are correlated, they are recognized simultaneously. In the case of revenues and expenses from financial assets and liabilities, these are recognized using the TJE method, as described in Note item 3c.3. Post-fixed financial transactions are restated on a pro rata die basis, based on the variation of the respective agreed indexes, while fixed-rate financial transactions are recorded at redemption value, adjusted by account of unearned revenues or unearned expenses corresponding to the future period. Transactions indexed to foreign currencies are restated on the Balance Sheet date, in accordance with the exchange rates on the same date. For revenues from services rendered, services related to the current account and fund management, collection and custody fees are measured at the fair value of the consideration received. Revenue is recognized when control and satisfaction of the performan ce obligation arising from the provision of services by Banrisul are transferred to the customer. In the acquiring product line, revenues from the capture of credit and debit card transactions are allocated to profit or loss in a single transaction on the date the transactions are processed. Other revenues from services provided to partners and merchan ts are recognized in profit or loss when the service is effectively provided. The composition of revenue from services provided is detailed in Note 28. NOTE 04 - Key Accounting Estimates and Judgments The preparation of the Financial Statements requires Management to make estimates and judgments that affect the recognized amounts of assets, liabilities, revenues and expenses. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events considered reasonable under the circumstances. Management considers that the estimates and judgments made are appropriate and that the Financial Statements fairly present Banrisul's financial position and the results of its operations in all material aspects. The main accounting estimat es and judgments used to prepare the financial statements are listed below: (a) Defined Benefit Pension Plans
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Financial Statements June 30, 2025 44 The present value of these obligations is obtained by actuarial calculations, which use a series of assumptions. Among the assumptions used in determining the net cost (income) for these plans is the discount rate. Any changes in these assumptions will affect the carrying value of the pension plan obligations. Banrisul determines the appropriate discount rate at the end of each half -year period and this is used to determine the present value of estimated future cash outflows, which should be necessary to settle the pension plan obligations. The actual discount r ates were processeded considering the interpolation of the rates of the IMA -B index, published by the Brazilian Association of Financial and Capital Market Entities (ANBIMA), with a reference date of June 30, 2025. Other important assumptions for pension plan obligations are based, in part, on current market conditions. Additional information is disclosed in Note 33. (b) Provisions for Tax, Labor and Civil Risks Banrisul periodically reviews its provisions for tax, civil and labor risks. These provisions are assessed based on Management's best estimates, taking into account the opinion of legal advisors, using models and criteria that allow their measurement in th e most appropriate manner possible, despite the uncertainty inherent in their term and value at the outcome of the case. Current accounting practices are detailed in Note 23. (c) Provision for Loss Associated with Credit Risk Banrisul assesses on a prospective basis the expected loss associated with the credit risk of financial assets measured at AC, FVOCI and FVTPL that are measured at levels 2 or 3 in the fair value hierarchy; of credit commitments to be released; and of financial guarantee contracts provided. When measuring expected credit loss, Banrisul considers the maximum contractual period over which it is exposed to credit risk, adapting the calculation of expected credit loss to the stage of the asset. Expected Life of Assets: for all credit lines, the expected life is the maximum term of the operation, with the exception of revolving credit, whose expected life is estimated based on historical usage behavior and considering the period in which Banrisul expects to remain expose d to credit risk. The main revolving credit products to which Banrisul has exposure are credit cards and overdrafts/business accounts. Assessment of Significant Increase in Credit Risk: to assess whether the credit risk in a financial asset has increased significantly since its origination, Banrisul compares the risk of default over the expected life of the financial asset with the expected risk of default at its origination. This monitoring is performed using statistical models that define the migrations between stages 1 and 2, a process that occurs on each reporting date. Macroeconomic Scenarios: this information involves inherent risks, market uncertainties and other factors that may generate results that are different from those expected, including changes in market conditions and economic policy, recessions or fluctuations in indicators that ar e different from those expected. (d) Transfer of Financial Assets Financial assets are written off when the rights to receive cash flows are extinguished or when Banrisul transfers substantially all the risks and rewards of ownership and such transfer qualifies for write -off in accordance with the requirements of CMN Resolution No. 4,966/21. If it is not possibl e to identify the transfer of all risks and rewards, the control is assessed to determine whether the ongoing involvement related to the transaction does not prevent the write-off. If the assessment characterizes the retention of risks and rewards, the financial asset remains recorded and a liability is recognized for the consideration received. (e) Write-off of Financial Assets When there are no reasonable expectations of recovery of a financial asset, considering historical curves, its total or partial write -off is performed simultaneously with the reversal of the related provision for expected
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Financial Statements June 30, 2025 45 credit loss, with no effects on Banrisul's Income Statement. Subsequent recoveries of amounts previously written off are recorded as revenue in the Income Statement. NOTE 05 - Corporate Capital and Risk Management Capital and corporate risk management is a strategic and fundamental tool for a financial institution. The constant improvement in the processes of monitoring, control, assessment, planning of goals and capital needs; and identification, measurement, asses sment, monitoring, reporting, control and mitigation of risks; enables the improvement of good governance practices, aligned with Banrisul's strategic objectives. CMN Resolution No. 4,557/17 and subsequent amendments determine that financial institutions and other institutions authorized to operate by Bacen and classified between segments S1 and S5 implement a continuous capital management structure and a continuous and integrated risk management structure. Banrisul is classified in segment S2. The Institutional Structures and Policies for Integrated Capital and Corporate Risk Management aim to enable the continuous and integrated management of capital and credit, market, interest rate variation risks for instruments classified in the banking portfolio (Interest Risk Rate in The Banking Book – IRRBB), liquidity, operational, social, environmental, climate risks, including country risk and transfer risk, and other risk s considered relevant by Banrisul. In addition, they seek to establish basic principles, meet legal requirements and ensure that all activities are carried out in accordance with current regulations. The optimization of asset and liability management and the use of regulatory capital and the maximization of investor profitability are reflections of Banrisul's adoption of best market practices. The improvement of Institutional Structures and Policies, s ystems, internal controls and security standards, integrated with Banrisul's strategic and market objectives, are ongoing processes. (a) Integrated Management Structure The corporate capital and risk management process involves the participation of all hierarchical levels of Banrisul and the other companies that are part of the Prudential Conglomerate. The integrated capital and risk management structure of the Banrisul G roup is coordinated by the corporate risk area, which carries out the integrated management of capital and credit, market, interest rate variation for instruments classified in the banking book (Interest Risk Rate in The Banking Book – IRRBB), liquidity, o perational, social, environmental and climate risks, including transfer risk; this is a fundamental strategic tool for Banrisul. The constant improvement in the processes of monitoring, control, evaluation, planning of goals and capital needs, identification, measurement, evaluation, monitoring, reporting, control and mitigation of risks make good governance practices more accurate, aligned with Banrisul's strategic objectives. The information produced by the corporate risk area supports the Risk Committee and other management committees, the Board of Directors and the Board of Directors in the decision -making process. The Risk Department is responsible for the corporate risk are a and the Board of Directors is responsible for the information disclosed regarding risk management. (b) Risk Appetite Statement Risk appetite is defined by the Bank for International Settlements (BIS) as the level of risk, both aggregate and individual, that an institution is willing to assume within its capacity to achieve its strategic objectives and follow its business plan. CMN Resolution No. 4,557/17 determines that risk appetite levels be documented in the Risk Appetite Statement (RAS). The RAS is the document that describes the levels of risk that the institution is willing to accept or avoid in order to achieve its business objectives. It must include quantitative and qualitative measures related to revenues, capital, risk measures, liquidity and other relevant items.
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Financial Statements June 30, 2025 46 In addition, the RAS reflects Banrisul's operating environment, strategy and business objectives. This document defines the different acceptable levels of each of the risks incurred by Banrisul, making it possible to closely monitor and control the risks so that they remain in line with the strategy outlined. In this way, each level of Banrisul's operations plays a role in identifying, measuring, evaluating, monitoring, reporting, controlling and mitigating risks. Banrisul has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to higher authorities through reports and a dashboard. The objective is to keep the indicators in line with the established appetites and identify possible actions needed according to the current scenario, whether positive or negative in relation to the strategy outlined by Banrisul. (c) Lines of Defense All Banrisul employees, interns and outsourced service providers are responsible for practicing behavioral measures that avoid exposure to risk, within the limits of their duties. Seeking to clarify the roles and responsibilities of the areas and people in volved in the risk management process, Banrisul adopts the Three Lines of Defense model to segment the groups within the governance structure, based on Banrisul's strategic objectives. 1st Line of Defense: assigned to the functions that manage risks. It is composed of the strategic, business and support areas, and must ensure effective risk management and controls, within the scope of its activities. It is responsible for identifying, measuring, evaluating, monitoring, reporting, controlling and mitigating risks associated with the processes, products, services, systems and people under its management. It is responsible for maintaining effective internal controls and for conducting risk a nd control procedures on a daily basis, in addition to implementing corrective actions to resolve deficiencies in processes and controls. 2nd Line of Defense: assigned to the areas that perform functions of assisting in the development and monitoring of risk management, control and compliance, composed of Banrisul's control areas. It is responsible for providing the methodology and support necessary for the man agement of risks assumed by the first line, assisting in the identification, measurement, assessment, control and mitigation of risks. Independent monitoring and reporting on risk management, in the first line, are also part of the scope of action of the second line. 3rd Line of Defense: assigned to the internal audit area, and is responsible for evaluating the first two lines, including how they achieve the objectives within the scope of risk management and controls. It acts by proposing improvements and imputing the necessary corrective measures. It reports independently to the Management and governance bodies. (d) Credit Risk Credit risk is defined as the possibility of losses associated with the counterparty's failure to comply with its obligations under the agreed terms; devaluation, reduction of remuneration and expected gains in a financial instrument resulting from the deterioration of the credit quality of the counterparty, the intervening party or the mitigating instrument; restruct uring of financial instruments; or costs of recovery of exposures characterized as problematic assets. The continuous and growing implementation of statistical methodologies for assessing customer risk, the improvement of customer segmentation, the parameterization of credit policies and business rules, combined with the optimization of controls, strengthen Banrisul's credit risk management, allowing the continued expansion of the credit portfolio in a sustainable manner, with agility and security. The following is the amount of Banrisul's credit and financial leasing operations segmented by business sector:
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Financial Statements June 30, 2025 47 (d.1) Identification, Measurement and Assessment In the process of identifying, measuring and assessing credit risk, Banrisul adopts statistical methodologies and/or the principle of collegiate technical decision -making. The granting of credit based on scoring models enables the establishment of pre -approved credits in accordance with the risk classifications provided for in the statistical models. The granting of credit based on collegiate decisions occurs according to authority policies. The Credit Committees of the Branch Network assess credit transact ions up to the limits of their authority. For clients with higher authority levels, the transactions and Risk Limit (LR) are approved by the Credit and Risk Committees of the General Management. The Board of Directors approves specific transactions and LR of transactions in amounts that do not exceed 3% of Net Equity. Transactions above this limit are submitted for review by the Board of Directors, in compliance with the limits established in the RAS. (d.2) Monitoring, Control and Mitigation In the monitoring and reporting stage, analyses of the adherence of credit scoring models are performed using statistical validation techniques in order to verify whether the models continue to correctly assign the probability of each customer becoming delinquent based on registration characteristics and payment habits. In addition, the amount of exposure to credit risk is monitored, with segmentations defined by Bacen and Banrisul itself, as well as the impacts of adopted legislation and/or policies. Finally, Stress Tests are performed on the credit portfolio, with the objective of estimating the required capital and the impact on Capital Ratios. Monitoring, through credit portfolio management tools, is directly related to controlling and mitigating credit risk, since it is based on this that behaviors that are subject to intervention are identified. Credit risk control essentially encompasses the following procedures: • Exposure to credit risk is managed through regular analysis of actual and potential borrowers regarding principal and interest payments and changes in their registration status and limits, when appropriate; • Exposure to any borrower, including financial agents in the case of counterparties, is additionally restricted by sublimits that cover potential exposures recorded and not recorded in the Balance Sheet; and Parent Consolidated Portfolio Composition by Activity Sector 06/30/2025 06/30/2025 Public Sector 179,345 188,791 Public Administration - Direct and Indirect 179,345 188,791 Private Sector 63,824,928 63,829,483 Individuals 48,896,997 48,897,027 Companies 14,927,931 14,932,456 Farming and Livestock 261,475 261,535 Food, Beverages and Tobacco 2,384,330 2,384,538 Automotive 721,453 721,595 Pulp and Paper, Wood and Furniture 364,555 364,577 Food Wholesale Trade 1,076,885 1,077,148 Wholesale Trade (except food) 883,591 883,734 Retail Trade - Other 1,503,951 1,504,263 Construction and Real Estate 1,245,331 1,245,951 Education, Health and other Social Services 1,602,868 1,603,741 Electronics and technology 506,140 506,253 Financial and Insurance 187,732 187,733 Machines and equipment 278,479 278,530 Metallurgy 434,208 434,276 Infrastructure 28,069 28,304 Oil and Natural Gas 542,626 542,668 Chemical and Petrochemical 888,816 889,066 Private Services 582,512 582,927 Textile, Apparel and Leather 353,911 353,918 Transportation 453,808 454,043 Other 627,191 627,656 Total 64,004,273 64,018,274
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Financial Statements June 30, 2025 48 • The risk levels that Banrisul assumes are structured based on the definition of limits on the extent of acceptable risk in relation to a specific debtor, groups of debtors, industry segments, among others. Concentrations are monitored periodically and subject to review. When necessary, limits on the level of credit risk are approved by the Board of Directors and the Board of Directors. (d.3) Provisioning Policies Provisions for expected losses are recognized for the purposes of preparing financial reports through statistical models, in accordance with the criteria defined in current regulations, and are determined monthly for the entire portfolio of financial assets subject to calculation. (d.4) Maximum Exposure to Credit Risk before Guarantees or Other Mitigators The exposure to credit risk related to assets recorded in the Balance Sheet, as well as the exposure to credit risk related to items not recorded in the Balance Sheet, is as follows: Parent Consolidated 06/30/2025 06/30/2025 Financial Assets at Amortization Cost 125,293,403 128,358,940 Compulsory Deposits at the Central Bank of Brazil 11,895,779 11,895,779 Interbank Liquidity Applications 3,266,643 3,266,643 Securities 42,990,089 42,998,507 Credit Operations and Financial Leasing 64,004,273 64,018,274 Other Financial Assets 3,136,619 6,179,737 Financial Assets at Fair Value through Other Comprehensive Income 19,557,387 19,557,387 Bonds and Securities 19,557,387 19,557,387 Financial Assets at Fair Value through Results 2,969,133 3,463,498 Securities 2,877,056 3,371,421 Derivatives 92,077 92,077 Off Balance 23,128,969 23,128,969 Financial Guarantees 447,318 447,318 Real Estate Credit 533,731 533,731 Overdraft 6,129,987 6,129,987 Credit Card 4,713,958 4,713,958 Pre-dated Electronic Limits – Banricompras 5,861,041 5,861,041 Pre-approved Installments Limits - Crédito 1 Minuto 4,910,394 4,910,394 Other Pre-approved Limits 532,540 532,540 Total 170,948,892 174,508,794 (d.5) Credit and Financial Leasing Operations Credit and financial leasing operations, segregated by stages, are presented below: Parent Stage 1 Stage 2 Stage 3 Total Total Loans Provision Total Loans Provision Total Loans Provision Total Loans Provision Individuals 45,835,121 792,558 616,662 125,963 2,445,214 1,602,747 48,896,997 2,521,268 Credit Cards 2,328,236 119,876 49,274 10,067 238,694 182,351 2,616,204 312,294 Payroll Loans 19,505,034 110,517 134,749 18,221 989,245 621,718 20,629,028 750,456 Personal Loans – not Payroll 2,634,454 32,421 74,790 12,659 323,708 212,604 3,032,952 257,684 Real Estate 5,754,041 27,228 79,851 32,037 59,682 34,917 5,893,574 94,182 Rural Loans and Development 13,178,614 362,343 197,912 31,739 396,576 224,177 13,773,102 618,259 Other 2,434,742 140,173 80,086 21,240 437,309 326,980 2,952,137 488,393 Companies 14,015,421 246,685 138,916 32,827 952,939 590,879 15,107,276 870,391 Exchange Operations 2,233,392 8,250 171 7 87,010 9,269 2,320,573 17,526 Working Capital 4,158,988 29,445 22,509 3,676 202,021 112,828 4,383,518 145,949 Guarantee / Business Account 2,289,127 93,921 23,147 6,792 106,164 76,227 2,418,438 176,940 Real Estate 655,077 10,098 3,233 43 223 129 658,533 10,270 Rural Loans and Development 3,523,326 64,687 54,399 13,342 315,312 246,728 3,893,037 324,757 Other 1,155,511 40,284 35,457 8,967 242,209 145,698 1,433,177 194,949 Total as of 06/30/2025 59,850,542 1,039,243 755,578 158,790 3,398,153 2,193,626 64,004,273 3,391,659
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Financial Statements June 30, 2025 49 Consolidated Stage 1 Stage 2 Stage 3 Total Total Loans Provision Total Loans Provision Total Loans Provision Total Loans Provision Individuals 45,835,151 792,558 616,662 125,963 2,445,214 1,602,747 48,897,027 2,521,268 Credit Cards 2,328,236 119,876 49,274 10,067 238,694 182,351 2,616,204 312,294 Payroll Loans 19,505,034 110,517 134,749 18,221 989,245 621,718 20,629,028 750,456 Personal Loans – not Payroll 2,634,454 32,421 74,790 12,659 323,708 212,604 3,032,952 257,684 Real Estate 5,754,041 27,228 79,851 32,037 59,682 34,917 5,893,574 94,182 Rural Loans and Development 13,178,614 362,343 197,912 31,739 396,576 224,177 13,773,102 618,259 Other 2,434,772 140,173 80,086 21,240 437,309 326,980 2,952,167 488,393 Companies 14,024,818 246,730 141,130 32,831 955,299 591,213 15,121,247 870,774 Exchange Operations 2,233,392 8,250 171 7 87,010 9,269 2,320,573 17,526 Working Capital 4,158,988 29,445 22,509 3,676 202,021 112,828 4,383,518 145,949 Guarantee / Business Account 2,289,127 93,921 23,147 6,792 106,164 76,227 2,418,438 176,940 Real Estate 655,077 10,098 3,233 43 223 129 658,533 10,270 Rural Loans and Development 3,523,326 64,687 54,399 13,342 315,312 246,728 3,893,037 324,757 Other 1,164,908 40,329 37,671 8,971 244,569 146,032 1,447,148 195,332 Total as of 06/30/2025 59,859,969 1,039,288 757,792 158,794 3,400,513 2,193,960 64,018,274 3,392,042 Stage 1: credit operations that do not present a significant increase in credit risk and are not overdue for more than 30 days are classified in stage 1. Parent Consolidated 06/30/2025 06/30/2025 Not Overdue 58,013,341 58,022,689 Overdue up to 30 days 1,837,201 1,837,280 Total 59,850,542 59,859,969 Parent Consolidated 06/30/2025 06/30/2025 Collective Evaluation 59,840,384 59,849,811 Individual Evaluation 10,158 10,158 Total 59,850,542 59,859,969 Stage 2: credit operations that are 30 to 90 days overdue and/or present a significant increase in credit risk are classified in stage 2. Parent Consolidated 06/30/2025 06/30/2025 Not Overdue 71,296 73,427 Overdue up to 30 days 9,129 9,204 Overdue from 31 to 60 days 432,246 432,253 Overdue from 61 to 90 days 242,907 242,908 Total 755,578 757,792 Parent Consolidated 06/30/2025 06/30/2025 Collective Evaluation 753,955 756,169 Individual Evaluation 1,623 1,623 Total 755,578 757,792 Stage 3: operations that are overdue for more than 90 days and/or show evidence of deterioration in credit quality are classified in stage 3. Parent Consolidated 06/30/2025 06/30/2025 Not Overdue 1,189,823 1,190,901 Overdue up to 30 days 129,659 130,199 Overdue from 31 to 60 days 90,080 90,499 Overdue from 61 to 90 days 98,571 98,595 Overdue over 90 days 1,890,020 1,890,319
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Financial Statements June 30, 2025 50 Total 3,398,153 3,400,513 Parent Consolidated 06/30/2025 06/30/2025 Collective Evaluation 2,895,247 2,897,607 Individual Evaluation 502,906 502,906 Total 3,398,153 3,400,513 Concentration Analysis of Individually Significant Customers: the concentration analysis presented below is based on the total balance of the portfolio of customers considered individually significant in the amount of R$514,687, excluding transactions acquired by Banrisul from other financial institutions. 06/30/2025 Largest Debtor 20.57% Five Largest Debtors 57.17% Ten Largest Debtors 81.25% Twenty Largest Debtors 98.67% Renegotiated Credit and Financial Leasing Transactions: the renegotiation activities commonly used in credit transactions and practiced by Banrisul consist of extensions in payment terms and renegotiation of previously agreed rates. The policies and practices for accepting renegotiations are based on previously defined indicators or criteria that, in the Management's understanding, indicate that payments will most likely continue to be made. The following tables are presented considering the segregation of portfolios in accordance with CMN Resolutions No. 4,966/21 and BCB Resolution No. 352/23. Parent and Consolidated Renegotiated Financial Instruments Book Total as of 06/30/2025 C1 C2 C3 C4 C5 Writte-Off (Note 10d) 20 7,771 124 794 71,830 80,539 New Recognized Instruments 2,585 172,738 3,882 - 388,537 567,742 (d.6) Repossession of Assets Given as Guarantees Goods intended for sale are recorded upon receipt in the settlement of financial assets or upon the decision to sell own assets. These assets are initially recorded at the gross carrying amount of the difficult or doubtful financial instrument or fair value less selling costs, whichever is lower. Subsequent reductions in the fair value of the asset are recorded as a provision for impairment, with a corresponding charge to profit or loss. The costs of maintaining these assets are expensed as incurred. The sa les policy for these assets includes periodic bids/auctions that are announced in advance to the market. The assets repossessed (furniture, real estate, etc.) at the end of the reporting period totaled R$17,458. (e) Market Risk and Interest Rate Risk in the Banking Portfolio Banrisul is exposed to market risk arising from the possibility of losses resulting from fluctuations in the market values of instruments held by Banrisul. This definition includes the risk of changes in interest rates and stock prices for instruments classified in the trading portfolio, and the risk of exchange rate changes and commodity prices for instruments classified in the trading portfolio or in the banking portfolio. Banrisul manages market risk in accordance with best market practices. According to the Market Risk Management Policy, Banrisul establishes operational limits to monitor risk exposures and identify, assess, monitor and control exposure to risks in the trading and non-trading portfolios.
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Financial Statements June 30, 2025 51 The identification of transactions that are subject to market risk is carried out through operational processes, considering Banrisul's business lines, the risk factors of the transactions, the amounts contracted and their respective terms, as well as the classification of financial instruments in the trading or non-trading portfolio. Trading Book: includes transactions in financial instruments held with the intention of trading, intended for resale, obtaining benefits from price fluctuations or arbitrage. Non-Trading Book or Banking Book: includes all Banrisul transactions not classified in the trading book, with no intention of sale. Internal Communication: in order to ensure that the information from the area responsible for managing market risks reaches the appropriate scope, the Market Risk Report is periodically made available to members of the Board of Directors, and the Risk Management Committee is per iodically provided with the report produced to monitor Banrisul's risk exposures. Annually, or more frequently if necessary, the Market Risk Management Policy is proposed to the Board of Directors, which is responsible for its approv al. Dashboards are also produced for the Trading Portfolio and the Non -Trading Portfolio (IRRBB) with the main determining elements of each risk, such as mismatches between assets and liabilities and the main determinants of fluctuations in results. External Communication: in order for the information coming from the area responsible for managing market risks to reach the appropriate scope, the description of the market risk management structure is made available in a publicly accessible report, with a minimum annual freque ncy, in accordance with CMN Resolution No. 4,557/17. The Market Risk Management Structure and the Risk Management Report are available at the following address: https://ri.banrisul.com.br/. (e.1) Methodologies for Calculating Market Risk and Interest Rate Risk in the Banking Portfolio Banrisul monitors market risk (trading portfolio) and interest rate risk (non -trading portfolio) using Bacen's standardized methodologies, among other approaches that complement Banrisul's risk management: Marking to Market: in exceptional cases, by regulatory definition, if marking to market attributions – which are first-line attributions (especially middle/backoffice) – are not being observed, the market value of assets and liabilities will be calculated using the prices and rates captured in ANBIMA and B3. Based on these prices, the cubic spline interpolation function (year in 252 business days) is applied to obtain the interest rates in the terms of the transactions, intermediate to the vertices presented. Value at Risk (VaR) and Maturity Ladder: Banrisul uses standardized methodologies to calculate the capital allocation of market risk portions (Pjur1, Pjur2, Pjur3, Pjur4, Pacs and Pcam) for the Trading Book portfolio. For fixed-rate transactions (Pjur1), VaR is used as defined in Bacen Circular No. 3,634/13. VaR is a statistically based estimate of losses that may be caused to the current portfolio by adverse changes in market conditions. The model expresses the maximum value that Banrisul can lose, taking into account a 99% confidence level and volatilities and correlations calculated by statistical methods that assign greater weight to recent returns. In transactions referenced to currency coupons (Pjur2), price indexes (Pjur3), interest rates (Pjur4), sto ck portfolios (Pacs) and foreign exchange portfolios (Pcam), the metric used is the Maturity Ladder, which is based on the concept of duration, establishing a relationship between how much the price of a security changes when the rate of its respective coupon changes, as defined in Bacen Circulars No. 3,635/13, 3,636/13, 3,637/13, 3,638/13 and 3,641/13. Economic Value (EVE): assessments of the impact of changes in interest rates on the present value of the cash flows of instruments classified in Banrisul's Banking Book portfolio. The variation of EVE (∆EVE) is defined as the difference between the present value of the sum of the repricing flows of instruments subject to the IRRBB in a base scenario and the present value of the sum of the repricing flows of these same instruments in a scenario of interest rate shocks. ∆EVE is the economic value of the Banki ng Book portfolio and its solvency capacity, obtained by calculating the present value of the installments and calculated using future interest rate curves. Shocks are applied to the future curves, also called the interest rate term structure, to verify th e
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Financial Statements June 30, 2025 52 sensitivity of the portfolio to changes in rates and to changes in economic value. The sensitivity of the equity value measures the interest risk on the equity value based on the effect of changes in interest rates on the present values of financial assets and liabilities. Financial Intermediation Result (NII) Approach: these are assessments of the impact of changes in interest rates on the financial intermediation result of Banrisul's banking portfolio. The variation in NII (∆NII) is defined as the difference between the financial intermediation result of instruments su bject to IRRBB in a base scenario and the financial intermediation result of these same instruments in a scenario of interest rate shock. It is the variation in the result of financial intermediation in the Ba nking Book portfolio (revenues/expenses), considering the base scenario and scenarios of high and low interest rates. It observes a 1 -year interval. The sensitivity of the financial margin measures the variation in the amounts expected to be received for a specific horizon (12 months) when there is a shift in the interest rate curve. The calculation of the sensitivity of the financial margin is done by simulating the margin in a scenario of variations in the rate curvature and in the current scenario. The sensitivity is the difference between the two calculated margins. Built-in Gains and Losses ( BGL): the calculation of built -in gains and losses is performed as determined by the standard model adopted by Banrisul. The calculation of built-in gains and losses is a metric that compares the EVE in the normal scenario versus the accounting scenario, compar ing the present value of the portfolios with the accounting value. When the present value of an asset is greater than its accounting balance or when the present value of a liability is less than its accounting balance, a gai n to be realized is computed through this metric. When the present value of an asset is lower or the present value of a liability is higher, a loss to be realized is computed. Spread Risk (Credit Spread Risk on the Banking Book – CSRBB): is one of the four scopes of interest rate risk in the Banking Book portfolio (IRRBB). Therefore, this report complies with the definition set forth by the regulator in Circular Bacen No. 3,876/18, which defines the CSRBB as the possibility of losses assoc iated with changes in interest rates required by the market that exceed the risk-free rate for instruments subject to credit risk classified in the Banking Book portfolio. Market Risk Sensitivity Analysis: the sensitivity analysis is performed quarterly or in adverse situations, by applying a specific scenario for each risk factor, with the aim of quantifying the impacts on the portfolios. Upward and downward shocks were applied in the following scenarios: 1% (scenario 1), 25% (scenario 2) and 50% (scenario 3), in the fixed interest rate curves, in foreign currencies and shares, based on market information from B3, ANBIMA and the daily quotation of the US dollar PTAX Venda – Bacen. The scenario analysis methodology allows for the assessment, over a given period, of the impact resulting from simultaneous and coherent variations in a set of relevant parameters on Banrisul's capital, its liquidity or the value of a portfolio. Stress Tests on the Trading Portfolio (Market Risk): the scenarios developed internally for market risk at Banrisul within the scope of the stress testing program aim to calculate and project exposures to exchange rate risk (Pcam), to the risk of the value of derivative financial instruments due to changes in the counterparty's credit quality (Cva) and to exposures subject to changes in fixed interest rates (Pjur1), considering Banrisul's current operations. Projections of exposures are made as follows: • For exposures in fixed interest rates (Pjur1) by changes in the CDI rate; and • For exposure in exchange rates (Pcam) and the value of derivative financial instruments due to changes in the counterparty's credit quality (Cva), the exchange rate fluctuation is used. Stress Tests on the Non -Trading Portfolio (Interest Rate Risk): the scenarios developed internally at Banrisul within the scope of the stress testing program aim to project flows and calculate the interest rate risk of the Banking Book Portfolio (IRRBB), in its standardized model, based on Banrisul's current operation s. Fluctuations in macroeconomic scenarios on existing stocks on the reference date of the test are considered. Based on these, post -fixed operations are evolved and the variation is made to th e stressed scenario of a parallel high (scenario that presents the greatest historical loss), using ∆NII (main metric for determining the
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Financial Statements June 30, 2025 53 sufficiency of Reference Equity (PR) for this risk). The methodologies and procedures adopted to prepare the stress tests for the IRRBB are described in internal manuals of the corporate risk management area. Below is the table with the result of the sensitivity analysis for the Trading Portfolio: Scenarios Risk Factors Total as of 06/30/2025 Interest Rate Currency Shares 1 1% 2,797 4,639 - 7,436 2 25% 2,266 115,967 - 118,233 3 50% 1,624 231,933 - 233,557 The table above shows the largest expected loss considering scenarios 1, 2 and 3 and their variations, either upwards or downwards. The following factors and conditions were taken into consideration on the reporting date to prepare the scenarios that make up the sensitivity analysis table: • Scenario 1 – probable situation: a 1% deterioration in market risk variables was considered as the premise; • Scenario 2 – possible situation: a 25% deterioration in market risk variables was considered as the premise; • Scenario 3 – remote situation: a 50% deterioration in market risk variables was considered as the premise; • Interest Rate: exposures subject to variations in fixed interest rates, interest rate coupons and inflation rate; • Foreign Currency: exposures subject to exchange rate variations; and • Shares: exposures subject to variations in share prices. For the Foreign Currency Risk Factor, the exchange rate of R$5. 4571 on 06/30/2025 (PTAX Sale – Bacen) was considered. The sensitivity analyses identified above do not consider the reaction capacity of the risk and treasury areas, since once a loss is detected in relation to these positions, risk mitigation measures are quickly implemented, minimizing the possibility of significant losses. Analyzing the results of scenario 1, we can identify the largest loss in the “ Currency” Risk Factor, which represents 37.6% of the expected loss in this scenario. In scenarios 2 and 3, the largest loss observed refers to the “Currencies” factor, representing 98.1% and 99.3%, respectively. Considering absolute values, the largest loss observed in these Sensitivity Test Scenarios occurs in scenario 3, in the total amount of R$ 233,557. Sensitivity Analysis of Derivative Financial Instruments: Banrisul also performed a sensitivity analysis of its positions in derivative financial instruments in the swap modality (Banking Book portfolio) and of the hedged foreign market funding operations carried out by Banrisul in the total amount of US$300 mil lion (three hundred million US dollars), recorded in the Banking Book portfolio (Note 21), to which shocks were applied upwards or downwards in scenarios 1, 2 and 3. The application of shocks to the value of the foreign currency US dollar (US$) considers the B3 Real x Dollar curve of March 31, 2025. The sensitivity analyses demonstrated below were established using premises and assumptions regarding future events. Scenario 1 is the most likely and considers the 1% increase and decrease in the market reference curve for US dollar coupon (B3 quotation), used to price these financial instruments. Scenarios 2 and 3 are defined to contemplate positive variations of 25% a nd 50% and negative variations of 25% and 50%, considering the conditions existing on 06/30/2025. The table below shows the probability of impact on cash flow in the three scenarios of exposures in derivative financial instruments in the swap modality (Banking Book portfolio) and in the instrument subject to protection (Banking Book portfolio), which m ake up the market risk hedge accounting structure on 06/30/2025. Operation Portfolio Risk Scenario I Scenario II Scenario III Swap Trading Increase in U.S. Dollar 16,644 416,092 832,184 Line Item Being Hedged Debt Banking Increase in U.S. Dollar 16,653 416.336 832.672 Net Effect (9) (244) (488)
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Financial Statements June 30, 2025 54 Operation Carteira Risco Scenario I Scenario II Scenario III Swap Trading Decrease in U.S. Dollar (16,644) (416,092) (832,184) Line Item Being Hedged Debt Banking Decrease in U.S. Dollar (16,653) (416,336) (832,672) Net Effect 9 244 488 Banrisul believes that the risk of being a liability in CDI at the time of swaps would be an increase in the CDI rate, which would be offset by an increase in revenues from its investment operations linked to the CDI. As for derivative instruments in the DI futures contract format, the sensitivity analysis also applied shocks to scenarios 1, 2 and 3. Scenario 1 is the most likely and considers a 1% increase in the market reference curve for the DI futures rate (B3 quote). Scenarios 2 and 3 are defined to contemplate positive variations of 25% and 50% and negative variations of 25% and 50%, considering the conditions existing on 06/30/2025. Operation Portfolio Risk Scenario 1 Scenario 2 Scenario 3 FUT DI1 Trading Increase in the Future DI Rate (638) (15,413) (30,096) FUT DI1 Trading Decrease in the Future DI Rate 622 16,171 33,200 Additionally, it is important to note that the results presented do not necessarily translate into accounting results, since the study is exclusively intended to disclose risk exposure and the respective protective measures considering the fair value of fi nancial instruments, dissociated from any accounting practices adopted by Banrisul. According to CMN Resolutions No. 4,966/21 and BCB Resolution No. 352/23, foreign exchange transactions are now treated as derivative financial instruments. The value of these transactions depends on variations in factors such as interest and exchange rates, do not require a significant initial investment and are settled at a future date. Banrisul records these transactions in balance sheet and clearing accounts. (e.2) Trading and Non-Trading Portfolio Summary The following table shows the result of the Trading Book portfolio: Risk Factor Reference Trading Book Prefixed Prefixed Rate 388 Index Coupons IGP-M - Total 388 The table below shows the result of the ∆NII of the Banking Book portfolio, which shows the potential loss of classified instruments resulting from scenarios of variation in interest rates classified in this portfolio (scenario 2 – parallel drop in interest rates). Risk Factor Reference Non Trading Book Prefixed Prefixed Rate (62,864) Index Coupon TLP 183 Other 71 Exchange Coupon Dollar EEUU 8,248 Euro 35 Pound Sterling 10 Interest Rate Coupon TR (97,194) TJLP (122) DI CDI (2,389,508) Selic Selic 3,053,648 Total 512,507 (e.3) Exposures Subject to Exchange Rate Risk Banrisul is exposed to the effects of fluctuations in current exchange rates on its financial situation and cash flows. Exchange rate risk is monitored daily by calculating foreign currency exchange exposure. Banrisul's
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Financial Statements June 30, 2025 55 institutional risk policy states that capital consumption for this risk should be managed in such a way as to maintain its exposure at a limit lower than 3.55% of its Reference Equity (PR). The exposure presented at the end of the reporting period was R$365,588. Capital consumption presented in the same period was R$ 83,377. Banrisul complies with the new Bacen determinations and calculates the amount of risk -weighted assets RWACAM, which was verified at the end of the reporting period at R$1, 042,909. (e.4) Exposures Subject to Interest Rate Risk Interest rate risk on cash flows is the risk that the future cash flows of a financial instrument will vary as a result of changes in market interest rates. Interest rate risk on fair value is the risk that the value of a financial instrument will vary as a result of changes in market interest rates. Banrisul is exposed to the effects of fluctuations in prevailing market interest rates on both the fair value of its financial instruments and its cash flows. Interest margins may increase as a result of these changes, but losses may decrease if unexpected movements occur. Banrisul's Board of Directors and Executive Board annually approve proposed limits on the level of interest rate mismatch that can be assumed by Banrisul. The following table summarizes Banris ul's exposure to interest rate risk, considering financial instruments at their carrying value, categorized by the oldest contractual amendment or maturity dates. Parent Current Long Term Up to 3 months From 3 to 12 Months From 1 to 5 years Over 5 years Total as of 06/30/2025 Financial Assets 31,975,308 22,741,282 75,983,029 17,120,304 147,819,923 At Amortized Cost 31,313,912 20,708,509 56,150,678 17,120,304 125,293,403 Compulsory Deposits at the Central Bank 11,895,779 - - - 11,895,779 Interbank Liquidity Applications 2,034,026 757,006 475,611 - 3,266,643 Securities 4,961,627 5,071,049 25,268,820 7,688,593 42,990,089 Credit and Leasing Operations 12,422,480 14,266,694 27,883,388 9,431,711 64,004,273 Other Financial Assets - 613,760 2,522,859 - 3,136,619 At Fair Value Through Other Comprehensive Income 61,728 - 19,495,659 - 19,557,387 Securities 61,728 - 19,495,659 - 19,557,387 At Fair Value through Profit or Loss 599,668 2,032,773 336,692 - 2,969,133 Securities 599,668 1,940,696 336,692 - 2,877,056 Derivatives - 92,077 - - 92,077 Financial Liabilities 55,279,176 18,247,435 49,791,314 13,781,917 137,099,842 At Amortized Cost 55,230,528 16,631,626 49,791,314 13,781,917 135,435,385 Deposits 28,218,334 5,796,853 43,979,908 12,659,060 90,654,155 Open Market Fundraising 23,793,847 22,180 - - 23,816,027 Resources for Acceptance and Issuance of Securities 2,323,681 4,414,085 3,378,582 - 10,116,348 Subordinated Debts - - - 456,385 456,385 Borrowings 613,317 1,625,385 173,638 8,698 2,421,038 Onlendings 281,349 674,219 2,257,017 657,774 3,870,359 Other Financial Assets - 4,098,904 2,169 - 4,101,073 At Fair Value through Profit or Loss 48,648 1,615,809 - - 1,664,457 Derivatives - 1,180 - - 1,180 Subordinated Debts 48,648 1,614,629 - - 1,663,277 Total Delay in Interest Renegotiation (23,303,868) 4,493,847 26,191,715 3,338,387 10,720,081 Consolidated Current Long Term Up to 3 months From 3 to 12 Months From 1 to 5 years Over 5 years Total as of 06/30/2025 Financial Assets 32,147,097 26,095,820 76,001,542 17,135,366 151,379,825 At Amortized Cost 31,327,913 23,746,552 56,164,171 17,120,304 128,358,940 Compulsory Deposits at the Central Bank 11,895,779 - - - 11,895,779 Interbank Liquidity Applications 2,034,026 757,006 475,611 - 3,266,643 Securities 4,961,627 5,071,049 25,277,238 7,688,593 42,998,507 Credit and Leasing Operations 12,436,481 14,266,694 27,883,388 9,431,711 64,018,274 Other Financial Assets - 3,651,803 2,527,934 - 6,179,737 At Fair Value Through Other Comprehensive Income 61,728 - 19,495,659 - 19,557,387 Securities 61,728 - 19,495,659 - 19,557,387
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Financial Statements June 30, 2025 56 At Fair Value through Profit or Loss 757,456 2,349,268 341,712 15,062 3,463,498 Securities 757,456 2,257,191 341,712 15,062 3,371,421 Derivatives - 92,077 - - 92,077 Financial Liabilities 55,382,531 18,311,027 49,531,329 13,781,917 137,006,804 At Amortized Cost 55,333,883 16,695,218 49,531,329 13,781,917 135,342,347 Deposits 28,440,699 4,820,250 43,979,908 12,659,060 89,899,917 Open Market Fundraising 23,676,774 22,180 - - 23,698,954 Resources for Acceptance and Issuance of Securities 2,321,453 3,849,179 3,115,821 - 9,286,453 Subordinated Debts - - - 456,385 456,385 Lendings 613,608 1,626,299 176,414 8,698 2,425,019 Onborrowings 281,349 674,219 2,257,017 657,774 3,870,359 Other Financial Assets - 5,703,091 2,169 - 5,705,260 At Fair Value through Profit or Loss 48,648 1,615,809 - - 1,664,457 Derivatives - 1,180 - - 1,180 Subordinated Debts 48,648 1,614,629 - - 1,663,277 Total Delay in Interest Renegotiation (23,235,434) 7,784,793 26,470,213 3,353,449 14,373,021 (f) Liquidity Risk The definition of liquidity risk consists of the possibility of losses resulting from the lack of sufficient liquid resources to meet expected and unexpected payment obligations, current and future, within a defined time horizon; and the impossibility of trading a given position at market prices, due to its large size in relation to the volume normally traded or due to some discontinuity in the market itself. For the effective management of liquidity risk, Banrisul considers the transactions carried out in the financial and capital markets, as well as possible contingent or unexpected exposures. Examples of this are settlement services, provision of sureties an d guarantees, and lines of credit contracted and not used. Likewise, the liquidity risk in the currencies to which there is exposure, observing possible restrictions on the transfer of liquidity and convertibility between currencies. Furthermore, possible impacts on Banrisul's liquidity resulting from risk factors associated with other companies in the prudential conglomerate are considered. Liquidity risk management at Banrisul is carried out by the corporate risk area, which is responsible for monitoring Banrisul's liquidity risk on a daily basis and for implementing and updating the liquidity risk management policy and strategies annually. Liquidity management is centralized in the Treasury and aims to maintain a satisfactory level of cash availability to meet short, medium and long-term financial needs, both in normal and adverse scenarios, with the adoption of corrective actions if necessa ry. The control process monitors mismatches arising from the use of short -term liabilities to back long -term assets, in order to avoid liquidity deficiencies and ensure that Banrisul's reserves are sufficient to meet daily cash needs, both cyclical and non -cyclical, as well as long -term needs. Banrisul maintains adequate levels of assets with high market liquidity, together with access to other sources of liquidity, and seeks to ensure an adequately diversified base of funding operations. Liquidity risk management and control are carried out daily, based on the preparation and reporting of reports with indicators and risk positions, measured using internal methodologies defined in Banrisul's risk management policy. Information on liquidity risk exposure is sent to Bacen on a monthly basis, and reports containing liquidity risk positions and limits established in policies are periodically submitted to the Board of Directors, as well as projections for total liquidity based on internal models for Banrisul's cash flow. Within the scope of Liquidity Contingency, Banrisul aims to identify in advance and minimize potential crises and their potential effects on business continuity. The parameters used to identify crisis situations consist of a range of responsibilities and p rocedures to be followed in order to ensure the stability of the required liquidity level. The liquidity risk management processes are in line with the guidelines of the Institutional Liquidity Risk Management Policy and with Banrisul's RAS, the documents of which are reviewed annually (or more frequently, if necessary) and proposed to the Board of Directors for approval.
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Financial Statements June 30, 2025 57 (f.1) Cash Flows for Non-Derivatives The following table presents the cash flows payable under non-derivative financial liabilities, described by the remaining contractual maturity at the balance sheet date. The amounts disclosed in this table represent the undiscounted contractual cash flows, the liquidity risk of which is managed based on the expected undiscounted cash inflows. The assets available to meet all obligations and cover outstanding bo rrowing commitments include cash and cash equivalents and financial assets. Parent Current Long Term Up to 3 months From 3 to 12 Months From 1 to 5 years Over 5 years Total as of 06/30/2025 Financial Liabilities (Contractual Maturities) 58,285,531 18,560,306 50,846,820 14,062,073 141,754,730 At Amortized Cost 58,241,533 16,879,178 50,846,820 14,062,073 140,029,604 Deposits 31,141,494 5,883,620 44,642,717 12,850,123 94,517,954 Open Market Fundraising 23,810,138 22,195 - - 23,832,333 Resources for Acceptance and Issuance of Securities 2,361,951 4,486,783 3,434,226 - 10,282,960 Subordinated Debt - - - 456,385 456,385 Borrowings 619,490 1,639,451 223,082 13,506 2,495,529 Onlendings 308,460 748,068 2,544,114 742,059 4,342,701 Other Financial Assets - 4,099,061 2,681 - 4,101,742 At Fair Value Through Profit or Loss 43,998 1,681,128 - - 1,725,126 Subordinated Debt 43,998 1,681,128 - - 1,725,126 Financial Assets (Expected Maturities) 30,829,447 23,637,933 91,234,420 26,616,189 172,317,989 Cash 1,316,610 - - - 1,316,610 Financial Assets 29,512,837 23,637,933 91,234,420 26,616,189 171,001,379 At Amortized Cost 28,851,441 21,697,237 71,402,069 26,616,189 148,566,936 At Fair Value Through Other Comprehensive Income 61,728 - 19,495,659 - 19,557,387 At Fair Value Through Profit or Loss 599,668 1,940,696 336,692 - 2,877,056 Consolidated Current Long Term Up to 3 months From 3 to 12 Months From 1 to 5 years Over 5 years Total as of 06/30/2025 Financial Liabilities (Contractual Maturities) 58,383,645 18,606,750 50,597,081 14,064,877 141,652,353 At Amortized Cost 58,339,647 16,925,622 50,597,081 14,064,877 139,927,227 Deposits 31,355,222 4,893,305 44,652,404 12,852,927 93,753,858 Open Market Fundraising 23,693,000 22,195 - - 23,715,195 Resources for Acceptance and Issuance of Securities 2,363,103 3,918,239 3,171,723 - 9,453,065 Subordinated Debt - - - 456,385 456,385 Borrowings 619,862 1,640,567 226,159 13,506 2,500,094 Onlendings 308,460 748,068 2,544,114 742,059 4,342,701 Other Financial Assets 5,703,248 2,681 - 5,705,929 At Fair Value Through Profit or Loss 43,998 1,681,128 - - 1,725,126 Subordinated Debt 43,998 1,681,128 - - 1,725,126 Financial Assets (Expected Maturities) 30,987,237 26,992,471 91,252,933 26,631,251 175,863,892 Cash 1,316,612 - - - 1,316,612 Financial Assets 29,670,625 26,992,471 91,252,933 26,631,251 174,547,280 At Amortized Cost 28,851,441 24,735,280 71,415,562 26,616,189 151,618,472 At Fair Value Through Other Comprehensive Income 61,728 - 19,495,659 - 19,557,387 At Fair Value Through Profit or Loss 757,456 2,257,191 341,712 15,062 3,371,421 (f.2) Items Not Recorded in the Balance Sheet Banrisul must make available to the State of Rio Grande do Sul up to 95% of the value of the judicial deposits collected for the Reserve Fund for Guarantee of Refund of Judicial Deposits, in which the litigating parties are not the State of Rio Grande do Sul or the Municipalities of the same State. The amounts transferred to the State of Rio Grande do Sul on the reporting date reached the amount of R$9,895,835. In the event of redemptions by depositors in amounts greater than those held in a specific fund to guarantee liquidity, the State of Rio Grande do Sul must immediately cover the cash needs.
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Financial Statements June 30, 2025 58 (g) Fair Value of Financial Assets and Liabilities Financial Instruments Measured at Fair Value: in the table below, the values of financial assets and liabilities that were presented at fair value are segregated according to the fair value hierarchy. Parent 06/30/2025 Level 1 Level 2 Total Total Assets Measured at Fair Value 22,375,458 151,062 22,526,520 At Fair Value Through Profit or Loss 2,877,056 - 2,877,056 Treasury Financial Bills (LFT) 1,346,783 - 1,346,783 National Treasury Bills (LTN) 1,530,273 1,530,273 At Fair Value Through Other Comprehensive Income 19,495,659 61,728 19,557,387 Treasury Financial Bills (LFT) 19,495,659 - 19,495,659 Investment Fund Shares - 39,759 39,759 Others - 21,969 21,969 Derivatives 2,743 89,334 92,077 Liabilities Measured at Fair Value 1,180 1,663,277 1,664,457 At Fair Value Through Profit or Loss 1,180 1,663,277 1,664,457 Derivatives 1,180 - 1,180 Subordinated Debt - 1,663,277 1,663,277 Consolidated 06/30/2025 Level 1 Level 2 Level 3 Total Total Assets Measured at Fair Value 22,868,419 151,062 1,404 23,020,885 At Fair Value Through Profit or Loss 3,370,017 - 1,404 3,371,421 Treasury Financial Bills (LFT) 1,683,359 - - 1,683,359 National Treasury Bills (LTN) 1,530,274 - - 1,530,274 Investment Fund Shares 156,384 - 1,404 157,788 At Fair Value Through Other Comprehensive Income 19,495,659 61,728 - 19,557,387 Treasury Financial Bills (LFT) 19,495,659 - - 19,495,659 Investment Fund Shares - 39,759 - 39,759 Others - 21,969 - 21,969 Derivatives 2,743 89,334 - 92,077 Derivatives (Swaps) 2,743 89,334 - 92,077 Liabilities Measured at Fair Value 1,180 1,663,277 1,664,457 At Fair Value Through Profit or Loss 1,180 1,663,277 1,664,457 Derivatives 1,180 - 1,180 Subordinated Debt - 1,663,277 1,663,277 Financial Instruments Measured at Amortized Cost: in the table below, the carrying amounts and fair values of financial assets and liabilities that were presented at amortized cost. Parent 06/30/2025 Book Value Fair Value Assets at Amortized Cost 125,870,672 123,311,383 Compulsory Deposits at the Central Bank of Brazil 12,473,048 12,473,048 Interbank Liquidity Applications 3,266,643 3,298,145 Securities 42,990,089 42,797,408 Credit and Financial Leasing Operations 64,004,273 61,606,163 Other Financial Assets 3,136,619 3,136,619 Liabilities at Amortized Cost 138,257,228 138,041,356 Deposits 93,475,998 93,179,180 Open Market Fundraising 23,816,027 23,816,027 Resources for Acceptance and Issuance of Securities 10,116,348 10,132,332 Subordinated Debt 456,385 521,347 Borrowings 2,421,038 2,421,038 Onlendings 3,870,359 3,870,359 Other Financial Liabilities 4,101,073 4,101,073
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Financial Statements June 30, 2025 59 Consolidated 06/30/2025 Book Value Fair Value Assets at Amortized Cost 128,936,209 126,376,915 Compulsory Deposits at the Central Bank of Brazil 12,473,048 12,473,048 Interbank Liquidity Applications 3,266,643 3,298,145 Securities 42,998,507 42,805,821 Credit and Financial Leasing Operations 64,018,274 61,620,164 Other Financial Assets 6,179,737 6,179,737 Liabilities at Amortized Cost 138,154,332 137,938,459 Deposits 92,711,902 92,415,083 Open Market Fundraising 23,698,954 23,698,954 Resources for Acceptance and Issuance of Securities 9,286,453 9,302,437 Subordinated Debt 456,385 521,347 Borrowings 2,425,019 2,425,019 Onlendings 3,870,359 3,870,359 Other Financial Liabilities 5,705,260 5,705,260 • Securities: fair value is based on market prices or quotes from brokers or operators. When this information is not available, fair value is estimated using quoted market prices for securities with similar credit characteristics, maturity and profitability. • Credits with Credit Transaction Characteristics : the value represents the discounted value of future cash flows expected to be received. Expected cash flows are discounted at current market rates plus the counterparty risk rate to determine their fair value. • Financial Liabilities: the estimated fair value of deposits without a specified maturity, which includes non - interest-bearing deposits, is the amount repayable on demand. The estimated fair value of deposits with fixed and floating rates and other loans without quotes in the a ctive market is based on undiscounted cash flows using interest rates for new debts with similar terms to maturity plus Banrisul's risk rate. • Funds from Acceptances and Issuance of Securities: the fair value is calculated by discou nting the difference between future cash flows, adopting discount rates equivalent to the weighted average rates of the most recent similar contracts or negotiations, of securities with similar characteristics. • Funding on the Open Market: for transactions with fixed rates, the fair value was determined by calculating the discount of the estimated cash flows, adopting discount rates equivalent to the rates practiced in contracts for similar transactions on the last market day. • Borrowing Obligations and Onlending Obligations : these transactions are exclusive to Banrisul, with no similar ones in the market. Given their specific characteristics, exclusive rates for each resource entered and the lack of an active market and similar instrument, the fair value of these transaction s was considered equivalent to the carrying value. • Other Financial Instruments: the fair value is approximately equivalent to the corresponding carrying value. (h) Operational Risk Operational risk is defined as the possibility of losses resulting from external events or failure, deficiency or inadequacy of internal processes, people or systems. The operational risk management methodology involves carrying out analyses to identify, measure, evaluate, monitor, report, control and mitigate the operational risks to which Banrisul is exposed, as shown in the table: Operational Risk Management Phase Activity Risk Identification The identification of operational risks aims to indicate the areas of incidence, causes and potential financial impacts of the risks associated with the processes, products and services to which the subsidiaries of Banrisul Group are exposed. Risk Measurement and Assessment The assessment consists of quantifying the risk, leading to the consequent measurement of its level of criticality according to previously established parameters, with the objective of estimating the impact of its eventual occurrence on the Institution's business.
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Financial Statements June 30, 2025 60 Monitoring Monitoring aims to monitor exposure to identified operational risks, anticipating critical situations, so that the weaknesses detected are brought to the attention of decision-makers in a timely manner. Control Control consists of recording the behavior of operational risks, limits, indicators and operational loss events, as well as implementing mechanisms to ensure that operational risk limits and indicators remain within the desired levels. Mitigation Mitigation consists of creating and implementing mechanisms to modify the risk, seeking to reduce operational losses by eliminating the cause, changing the probability of occurrence or mitigating the consequences. At this stage, the manager is asked to determine the risk response, considering all impacts. Report Consists in the preparation of texts and reports related to operational risk management, as defined in the Communication Plan of the Corporate Risk Management Unit. Through key risk indicators and the Operational Loss Database (BDPO), it is possible to monitor the evolution of losses and risk exposure and propose improvement actions. In addition, through Business Continuity Management (BCM), Banrisul seeks to encourage a culture of attention to avoid or mitigate risks materialized by a crisis scenario, by an interruption in its critical and essential business processes or by prolonged unavailability, establishing roles and responsibilities, as well as assisting those responsible for the first line of defense. Thus, it aims to ensure business continuity and mitigate operational risks, providing an adequate level of coverage and assisting in strategic decisions. The results of the analyses performed and the BDPO records are reported to the deliberative committees, following the governance structure defined in the corporate risk policies, including the Board of Directors, the Risk Committee and the Board of Directors. (i) Social, Environmental and Climate Risk Social risk is defined as the possibility of losses for Banrisul caused by events associated with the violation of fundamental rights and guarantees or acts that are harmful to the common interest. Environmental risk is defined as the possibility of losses for the institution caused by events associated with environmental degradation, including the excessive use of natural resources. Climate risk is defined, in its transition risk and physical risk aspects, as: • Transition climate risk: the possibility of losses for the institution caused by events associated with the transition process to a low-carbon economy, in which greenhouse gas emissions are reduced or offset and the natural mechanisms for capturing these gases are preserved; and • Physical climate risk: the possibility of losses for the institution caused by events associated with frequent and severe weather events or long -term environmental changes, which may be related to changes in climate patterns. The management of social, en vironmental and climate risk encompasses the Bank's own products, services, activities and processes and activities performed by its counterparties, controlled entities, suppliers and relevant outsourced service providers. The results of the analyses are reported to the deliberative committees, following the governance structure defined in the corporate risk policies, including the Board of Directors, the Risk Committee and the Board of Directors. (j) Capital Management Capital management is an ongoing process of monitoring, controlling, assessing and planning targets and capital needs, considering the risks to which Banrisul is subject, as well as its strategic objectives. The adoption of best market practices and the maximization of investor profitability is achieved through the best possible combination of asset investments and use of regulatory capital. The systematic improvement of risk policies, internal control systems and security standards, integrated with Banrisul's strategic and market objectives, are ongoing processes within this scope.
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Financial Statements June 30, 2025 61 Banrisul's capital management structure is the responsibility of the Board of Directors, which must review it annually and direct the alignment of the corporate strategy with the RAS. The purpose of this management structure is to ensure that the risks to which Banrisul is subject are understood, managed and communicated, so that Banrisul's capital is managed in the best possible way. The risks relevant to Banrisul are divided between the risks subject to capital requirement calculations, or Pillar 1 Risks, and the other risks considered relevant. Pillar 1 Risks are those whose need for calculation is determined by Bacen with the objective of strengthening the capital structure of financial institutions. These risks are: credit risk, market risk and operational risk. The minimum capital requirement for these risks seeks to provide solidity to financial institutions. Banrisul adopts the standardized model for calculating the portions that make up the total Risk-Weighted Assets (RWA), which provides a calculation methodology for the regulatory capital requirement for credit, m arket and operational risks, defined by Bacen. Each of the risks mentioned is calculated and managed in accordance with its respective Structure and its consolidation is part of the Capital Management Structure. The RWA is the basis for determining the minimum limits for Core Capital (CP), Tier 1 Capit al (CN1) and Reference Equity (PR), the percentages of which are defined in a schedule published by Bacen. In addition to the risks assessed in Pillar 1, CMN Resolution No. 4,557/17 determines that the management structure must identify, measure, evaluate, monitor, report, control and mitigate liquidity, IRRBB, social, environmental and climate risks and other relevant risks considered by Banrisul. The Leverage Ratio (RA) is another indicator required by Bacen, which aims to guide the banking sector's leverage, improving the capacity of financial institutions to absorb shocks from the financial system itself or from other sectors of the economy, resulting in an environment of financial stability. This indicator is the result of dividing the CN1 of the PR by the Total Exposure, calculated in accordance with current regulations. CMN Resolution No. 4,615/17 determines that institutions classified in Bacen's Segment S1 and Segment S2 must permanently comply with a minimum requirement of 3% for the RA. In this case, the higher the ratio, the better the institution's conditions in ter ms of leverage. The RA calculated for Banrisul on the reporting date was 7.00%. Banrisul assesses and monitors its capital sufficiency and need with the aim of keeping its capital volume compatible with the risks incurred by the Prudential Conglomerate. In this sense, the Minimum Required Capital is calculated based on the amount dete rmined for the total RWA and compared with the CP, CN1 and PR values, projected and realized, also considering the additional capital, determined for the same period. By comparing the Required Capital Ratios with those calculated for Banrisul, the margins are determined for the three capital levels, and also in relation to the IRRBB and the Additional Principal Capital. After this calculation, the Capital Sufficiency assessment is carried out for each level: • Margin on Required Reference Equity; • Margin on Required Level I Reference Equity; • Margin on Required Core Capital; • Margin on PR considering IRRBB and ACP; • Core Capital Margin After Pillar 1 considering ACP; and • Margin After Pillar 2. If the assessment of the capital need calculated by the financial institution indicates a value above the minimum requirements for PR, CN1 and CP, as set out in CMN Resolution No. 4,958/21, the institution must maintain capital compatible with the results of its internal assessments.
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Financial Statements June 30, 2025 62 The capital requirements imposed by the regulations in force aim to maintain the solidity of financial institutions and the National Financial System. Banrisul seeks to organize the elements required by the regulations in such a way that they act towards t he optimization of its management. Among the components of the Institution's Capital Management, those defined below can be highlighted. The Institutional Capital Management Structure and Policy are the organizing pillars of capital management. The structure determines its main components and their general responsibilities, and the policy organizes and delimits the responsibilities of each of the parties involved. In compliance with existing regulations, both the structure and the policy are reviewed annually, with a summary of the former being published on Banrisul's Investor Relations website. The RAS, introduced by CMNN Resolution No. 4,557/17, defines the risk appetite levels of Banrisul and the Prudential Conglomerate. The institution's risk appetite is the maximum level of risk it is willing to accept, within its production capacity, to achi eve the strategic objectives set out in its business plan. Banrisul's risk - taking capacity is based on the levels of its available resources, such as capital, liquidity, assets and liabilities, information systems and the management capacity of its adminis trators. The main function of the RAS is to support the formulation of business and risk management objectives and strategies and to identify and strategically direct the risks acceptable to Banrisul in relation to the objectives defined for its capital. The Simplified Internal Capital Adequacy Assessment Process (ICAAPSIMP) was also introduced by CMN Resolution No. 4,557/17 for institutions classified in the S2 segment. This process involves identifying, managing and measuring risks, including measuring t he need for capital to cover losses in a severe crisis scenario. To this end, projections are made for a three -year horizon, considering the definitions set out in the corporate strategy, as well as in the Institution's Risk Appetite Statement. In addition to considering the Capital Plan and all the elements assessed therein (as described below), the ICAAPSIMP process also considers the results of the stress testing program. The Capital Plan, prepared in accordance with CMN Resolution No. 4,557/17, covers the companies of the Prudential Conglomerate and considers the possible impacts of the companies of the Banrisul Group that are controlled by members of the conglomerate. The Capital Plan is prepared for a three -year horizon, sets out goals and projections and describes the main sources of capital, in addition to being aligned with Banrisul's strategic planning. The Capital Plan is based on the strategies defined by the Board of Directors, considering the economic and business environment, the values of assets and liabilities, off -balance sheet operations, revenues and expenses, growth and market share targets and, especially, the definitions of the RAS. The Stress Testing Program ( STP), defined based on CMN Resolution No. 4,557/17, is a coordinated set of processes and routines, with its own methodologies, documentation and governance, and its main objective is to identify potential vulnerabilities of the institution. The stress test i tself is an exercise in assessing the potential impacts of adverse events and circumstances on the institution or a specific portfolio. Stress tests provide an indication of the appropriate level of capital required to withst and deteriorating economic conditions. Within the scope of the Capital Management Framework, it is a tool that complements other risk management approaches and measures, providing inputs, at a minimum, for Strategic Planning, RAS, ICAAPSIMP and the Capital Plan. Capital requirements are monitored and reported through management reports that contain both quantitative and qualitative references for a given period, allowing for assessment and corrective actions to be taken when deviations are detected. These reports are prepared to report on Capital Management elements, which include information related to risk management, calculation of the amount of RWA and PR, adequacy analysis and monitoring of Capital Plan and RAS projections. Monitoring also includes the minimum limits required by the regulator, the minimum limits defined for Banrisul and the limits for maintaining instruments eligible for capital. Other timely reports may be necessary or requested by the members of the capital structure, which may address any deficiencies identified in the management structure itself, or in its components, and actions to
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Financial Statements June 30, 2025 63 correct them; the adequacy of the PR, CN1 and CP levels to the risks incurred by Banrisul; and other relevant matters. All reports are sent to the governance bodies defined in the Institutional Capital Management Structure for review. Considering the period reported, Banrisul met all capital requirements set forth in the regulations in force. (k) Capital Index The calculation of Regulatory Capital and Risk -Weighted Assets, which comprise the Statement of Operating Limits (DLO), is based on the Prudential Conglomerate, defined in accordance with CMN Resolution No. 4,950/21, and is comprised of Banco do Estado do Rio Grande do Sul S.A.; Banrisul S.A. Administradora de Consórcios; Banrisul S.A. Corretora de Valores Mobiliários e Câmbio; and Banrisul Soluções em Pagamentos S.A Possible impacts arising from risks associated with other companies controlled by members of the Prudential Conglomerate are also considered, as well as holdings in investment fund shares in which the entities comprising this conglomerate, in any form, ass ume or retain substantial risks and benefits, as provided for in current regulations, since they are part of the Prudential Conglomerate's consolidation scope. The following table summarizes the composition of the Reference Equity (PR), risk-weighted assets (RWAs) and the Basel Index of the Prudential Conglomerate (IB): According to the current regulations, the IB represents the relationship between the PR and the RWAs, demonstrating the company's solvency. According to CMN resolution no. 4,958/21, in this reporting period, the minimum capital limits were 8.00% for the IB; 6.00% for the Tier 1 ratio; and 4.50% for the Core Capital ratio. The Additional Core Capital (ACP) required in this period was 2.50%, totaling 10.50% for the IB; 8.50% for the Tier 1 ratio; and 7.00% for the Core Capital ratio. Banrisul's PR reached R$11,759,426 on the reporting date. BACEN Circular no. 3,876/18 determines that the Prudential Conglomerate calculates and reports the IRRBB. The methodology for measuring the need for PR in light of the interest rate risks of the banking portfolio is Conglomerate Prudential 06/30/2025 Reference Equity - RE 11,759,426 Tier I 9,639,763 Core Capital 9,639,763 Equity 8,301,859 Capital Reserve and Earnings Revaluation 2,495,204 Deductions from Principal Capital other than Prudential Adjustments (148,108) Creditor Income Statement Accounts - Prudential Adjustments (1,128,192) Negative Adjustment resulting from the Constitution of Expected Losses 119,000 Positive Adjustments to the Market Value of Derivatives Recorded as Liabilities - Tier II 2,119,663 Tier II Eligible Instruments 2,119,663 RWA 72,709,140 RWACPAD (Credit Risk) 60,417,901 RWASP (Payment Service) 1,117,867 RWAMPAD (Market Risk) 1,056,354 RWAJUR1 (Interest Rate Risk) 6,761 RWACAM (Exchange Rate Risk) 1,042,909 RWACVA (Counterparty Credit Assessment Risk) 6,684 RWAOPAD (Operational Risk) 10,117,018 Banking Portfolio (IRRBB) 538,997 Margin on PR considering Banking Portfolio after Additional Main Capital 3,585,970 Capital Ratio Basel Ratio 16.17% Tier I Ratio 13.26% Core Capital Ratio 13.26% Permanent Assets Ratio 11.70% Leverage Ratio 6.99%
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Financial Statements June 30, 2025 64 calculated using the variation in the economic value (Variation of Economic Value of Equity – ∆EVE) and the variation in the result of financial intermediation (Variation of Net Interest Income – ∆NII). In this context, the IRRBB calculated on the reporting date was R$ 538,997. The following factors are considered to calculate the PR Margin considering the IRRBB: total PR, RWA, Factor F (8.00% as of January 2019), interest rate risk of the portfolio, and the minimum ACP required by Bacen (2.5% as of April 2022). The IB was 16.17% on the reporting date, higher than the minimum required by the Brazilian regulatory body. The Tier I and Core Capital Ratios were 13.26% in the same period. Banrisul manages and monitors capital requirements and margins in order to meet the minimum requirements of the CMN. Thus, the Prudential Conglomerate of the Banrisul Group complies with all the minimum requirements to which it is subject. Note 06 – Cash and Cash Equivalent For the purposes of the Statement of Cash Flows, the value of cash and cash equivalents is represented as follows: Parent Consolidated 06/30/2025 06/30/2025 Cash 1,316,610 1,316,612 In Local Currency 851,992 851,994 In Foreign Currency 464,618 464,618 Interbank Investments (1) 2,033,999 2,033,999 Reverse Repurchase Agreements 799,999 799,999 Investments in Interbank Deposits 1,234,000 1,234,000 Securities - 84,407 Investment Fund Shares - 84,407 Total 3,350,609 3,435,018 (1) Composed of the securities listed in Note 8 with an original term equal to or less than 90 days and presenting an insignifica nt risk of change in fair value. Note 07 - Compulsory Deposits in Central Bank of Brazil Parent and Consolidated Deposit Type Form of Remuneration 06/30/2025 Demand Deposits No Remuneration 577,269 Savings Deposits Savings 335,428 Time Deposits Selic Rate 10,897,436 Instant Payment Account Selic Rate 406,841 Electronic Currency Deposits Selic Rate 6,075 Other Deposits Selic Rate 249,999 Total 12,473,048 Note 08 – Interbank Investments Parent and Consolidated Up to 3 Months 3 to 12 Months Over 12 Months 06/30/2025 Reverse Repurchase Agreements 799,999 - - 799,999 Resales to Liquidate – Bench Position 799,999 - - 799,999 Financial Treasury Letter (LFT) 799,999 - - 799,999 Investments on Interbank Deposits 1,234,000 756,990 475,601 2,466,591 Investments on Interbank Deposits 1,234,000 756,990 475,601 2,466,591 Total as of 06/30/2025 2,033,999 756,990 475,601 3,266,590
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Financial Statements June 30, 2025 65 Note 09 – Financial Assets at Amortized Cost – Securities The composition of financial assets at amortized cost by type of security and maturity is as follows: Parent 06/30/2025 Up to 3 Months From 3 to 12 Months From 1 to 3 Years From 3 to 5 Years More than 5 Years Amortized Cost Expected Loss Amortized Net Cost Fair Value Federal Government Securities Financial Treasury Letter (LFT) 4,545,319 3,733,594 14,077,818 10,712,157 7,399,463 40,468,351 - 40,468,351 40,546,467 Federal Bonds (CVS) - - 35,202 - - 35,202 - 35,202 31,926 Financial Letter (LF) 416,308 1,327,157 143,754 105,108 - 1,992,327 (341) 1,991,986 1,802,400 Debentures - 10,298 20,157 174,624 287,772 492,851 (5) 492,846 415,363 Certificate of Real Estate Receivables (CRI) - - - - 1,358 1,358 - 1,358 1,252 Total 4,961,627 5,071,049 14,276,931 10,991,889 7,688,593 42,990,089 (346) 42,989,743 42,797,408 Consolidated 06/30/2025 Up to 3 Months From 3 to 12 Months From 1 to 3 Years From 3 to 5 Years More than 5 Years Amortized Cost Expected Loss Amortized Net Cost Fair Value Federal Government Securities Financial Treasury Letter (LFT) 4,545,319 3,733,594 14,086,235 10,712,157 7,399,463 40,476,768 - 40,476,768 40,554,880 Federal Bonds (CVS) - - 35,202 - - 35,202 - 35,202 31,926 Financial Letter (LF) 416,308 1,327,157 143,755 105,108 - 1,992,328 (341) 1,991,987 1,802,400 Debentures - 10,298 20,157 174,624 287,772 492,851 (5) 492,846 415,363 Certificate of Real Estate Receivables (CRI) - - - - 1,358 1,358 - 1,358 1,252 Total 4,961,627 5,071,049 14,285,349 10,991,889 7,688,593 42,998,507 (346) 42,998,161 42,805,821 Securities at amortized cost were classified as stage 1 because they did not present a delay or significant increase in risk. Banrisul's portfolio is mainly composed of Federal Government Securities, which have sovereign risk.
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Financial Statements June 30, 2025 66 Not e 10 – Loans and Leases (a) Credit Portfolio Segregated by Stages Parent Stage 1 Stage 2 Stage 3 06/30/2025 Individuals 45,835,121 616,662 2,445,214 48,896,997 Credit Cards 2,328,236 49,274 238,694 2,616,204 Payroll Loans 19,505,034 134,749 989,245 20,629,028 Personal Loan – not Payroll 2,634,454 74,790 323,708 3,032,952 Real Estate 5,754,041 79,851 59,682 5,893,574 Rural and Development Loans 13,178,614 197,912 396,576 13,773,102 Others 2,434,742 80,086 437,309 2,952,137 Companies 14,015,421 138,916 952,939 15,107,276 Exchange Operations 2,233,392 171 87,010 2,320,573 Working Capital 4,158,988 22,509 202,021 4,383,518 Business / Guarantee Checking Accounts 2,289,127 23,147 106,164 2,418,438 Real Estate 655,077 3,233 223 658,533 Rural and Development Loans 3,523,326 54,399 315,312 3,893,037 Others 1,155,511 35,457 242,209 1,433,177 Total as of 06/30/2025 59,850,542 755,578 3,398,153 64,004,273 (-) Expected Credit Loss (1,039,243) (158,790) (2,193,626) (3,391,659) Total Net of Expected Credit Loss as of 06/30/2025 58,811,299 596,788 1,204,527 60,612,614 Consolidated Stage 1 Stage 2 Stage 3 06/30/2025 Individuals 45,835,151 616,662 2,445,214 48,897,027 Credit Cards 2,328,236 49,274 238,694 2,616,204 Payroll Loans 19,505,034 134,749 989,245 20,629,028 Personal Loan – not Payroll 2,634,454 74,790 323,708 3,032,952 Real Estate 5,754,041 79,851 59,682 5,893,574 Rural and Development Loans 13,178,614 197,912 396,576 13,773,102 Others 2,434,772 80,086 437,309 2,952,167 Companies 14,024,818 141,130 955,299 15,121,247 Exchange 2,233,392 171 87,010 2,320,573 Working Capital 4,158,988 22,509 202,021 4,383,518 Business / Guarantee Checking Accounts 2,289,127 23,147 106,164 2,418,438 Real Estate 655,077 3,233 223 658,533 Rural and Development Loans 3,523,326 54,399 315,312 3,893,037 Others 1,164,908 37,671 244,569 1,447,148 Total as of 06/30/2025 59,859,969 757,792 3,400,513 64,018,274 (-) Expected Credit Loss (1,039,288) (158,794) (2,193,960) (3,392,042) Total Net of Expected Credit Loss as of 06/30/2025 58,820,681 598,998 1,206,553 60,626,232 (b) Credit Portfolio Segregated by Installment Maturity Parent Consolidated Maturity 06/30/2025 06/30/2025 Overdue since 1 day 1,917,532 1,918,976 Due up to 3 months 10,504,948 10,517,505 Due from 3 to 12 months 14,266,694 14,266,694 Due over 1 year 37,315,099 37,315,099 Total 64,004,273 64,018,274 (c) Concentration of the Credit Portfolio of the Largest Borrowers Parent and Consolidated 06/30/2025 Concentration of Largest Borrowers Total % Portfolio Main borrower 258,181 0.40 10 largest borrowers 1,639,788 2.56 20 largest borrowers 2,714,739 4.24 50 largest borrowers 4,661,916 7.28 100 largest borrowers 6,359,597 9.94
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Financial Statements June 30, 2025 67 (d) Expected Loss Associated with Credit Risk Segregated by Stages Parent Stage 1 Opening Balance 01/01/2025 Transfer To Stage 2 Transfer To Stage 3 Transfer From Stage 2 Transfer From Stage 3 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 708,288 (13,256) (34,886) 17,355 88,863 - 26,194 792,558 Credit Cards 108,240 (776) (12,138) - 2,691 - 21,859 119,876 Payroll Loans 104,150 (676) (2,943) 693 6,358 - 2,935 110,517 Personal Loan – not Payroll 25,078 (943) (2,553) 407 3,652 - 6,780 32,421 Real Estate 23,940 (894) (628) 10,624 18,787 - (24,601) 27,228 Rural and Development Loans 328,438 (6,950) (5,842) 4,380 8,266 - 34,051 362,343 Others 118,442 (3,017) (10,782) 1,251 49,109 - (14,830) 140,173 Companies 274,240 (7,433) (14,618) 2,201 70,292 - (77,997) 246,685 Exchange Operations 8,747 - (273) - - - (224) 8,250 Working Capital 24,914 (468) (1,692) 31 5,183 - 1,477 29,445 Business / Guarantee Checking Accounts 130,412 (1,717) (5,394) 67 1,157 - (30,604) 93,921 Real Estate 8,316 (50) - - - - 1,832 10,098 Rural and Development Loans 69,560 (4,050) (4,709) 1,714 4,776 - (2,604) 64,687 Others 32,291 (1,148) (2,550) 389 59,176 - (47,874) 40,284 Total as of 06/30/2025 982,528 (20,689) (49,504) 19,556 159,155 - (51,803) 1,039,243 Parent Stage 2 Opening Balance 01/01/2025 Transfer To Stage 1 Transfer To Stage 3 Transfer From Stage 1 Transfer From Stage 3 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 75,036 (17,355) (38,057) 13,256 3,141 - 89,942 125,963 Credit Cards 2 - (1) 776 376 - 8,914 10,067 Payroll Loans 4,952 (693) (2,569) 676 56 - 15,799 18,221 Personal Loan – not Payroll 6,531 (407) (3,791) 943 542 - 8,841 12,659 Real Estate 19,132 (10,624) (4,377) 894 1,493 - 25,519 32,037 Rural and Development Loans 28,903 (4,380) (17,898) 6,950 86 - 18,078 31,739 Others 15,516 (1,251) (9,421) 3,017 588 - 12,791 21,240 Companies 15,914 (2,201) (8,198) 7,433 1,772 - 18,107 32,827 Exchange - - - - - - 7 7 Working Capital 2,635 (31) (1,316) 468 48 - 1,872 3,676 Business / Guarantee Checking Accounts 1,330 (67) (786) 1,717 21 - 4,577 6,792 Real Estate - - - 50 - - (7) 43 Rural and Development Loans 7,538 (1,714) (4,608) 4,050 1,219 - 6,857 13,342 Others 4,411 (389) (1,488) 1,148 484 - 4,801 8,967 Total as of 06/30/2025 90,950 (19,556) (46,255) 20,689 4,913 - 108,049 158,790
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Financial Statements June 30, 2025 68 Parent Stage 3 Opening Balance 01/01/2025 Transfer To Stage 1 Transfer To Stage 2 Transfer From Stage 1 Transfer From Stage 2 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 1,055,927 (88,863) (3,141) 34,886 38,057 (71,890) 637,771 1,602,747 Credit Cards 104,887 (2,691) (376) 12,138 1 - 68,392 182,351 Payroll Loans 423,964 (6,358) (56) 2,943 2,569 (58,692) 257,348 621,718 Personal Loan – not Payroll 147,414 (3,652) (542) 2,553 3,791 (4,155) 67,195 212,604 Real Estate 36,583 (18,787) (1,493) 628 4,377 (1,452) 15,061 34,917 Rural and Development Loans 132,062 (8,266) (86) 5,842 17,898 (79) 76,806 224,177 Others 211,017 (49,109) (588) 10,782 9,421 (7,512) 152,969 326,980 Companies 587,148 (70,292) (1,772) 14,618 8,198 (8,649) 61,628 590,879 Exchange 5,356 - - 273 - - 3,640 9,269 Working Capital 114,252 (5,183) (48) 1,692 1,316 - 799 112,828 Business / Guarantee Checking Accounts 49,593 (1,157) (21) 5,394 786 (28) 21,660 76,227 Real Estate 170 - - - - - (41) 129 Rural and Development Loans 238,484 (4,776) (1,219) 4,709 4,608 (8,621) 13,543 246,728 Others 179,293 (59,176) (484) 2,550 1,488 - 22,027 145,698 Total as of 06/30/2025 1,643,075 (159,155) (4,913) 49,504 46,255 (80,539) 699,399 2,193,626 Parent Consolidation of the Three Stages Opening Balance 01/01/2025 Write-Off Constitution/ (Reversion) (1) Closing Balance 06/30/2025 Individuals 1,839,251 (71,890) 753,907 2,521,268 Credit Cards 213,129 - 99,165 312,294 Payroll Loans 533,066 (58,692) 276,082 750,456 Personal Loan – not Payroll 179,023 (4,155) 82,816 257,684 Real Estate 79,655 (1,452) 15,979 94,182 Rural and Development Loans 489,403 (79) 128,935 618,259 Others 344,975 (7,512) 150,930 488,393 Companies 877,302 (8,649) 1,738 870,391 Exchange 14,103 - 3,423 17,526 Working Capital 141,801 - 4,148 145,949 Business / Guarantee Checking Accounts 181,335 (28) (4,367) 176,940 Real Estate 8,486 - 1,784 10,270 Rural and Development Loans 315,582 (8,621) 17,796 324,757 Others 215,995 - (21,046) 194,949 Total as of 06/30/2025 2,716,553 (80,539) 755,645 3,391,659 (1) In the Income Statement, the expected loss from credit and financial leasing operations in the amount of R$ 603,399 represents the constitution of R$468,934 net of the recovery of credit previously written off as a loss in the amount of R$ 152,302.
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Financial Statements June 30, 2025 69 Consolidated Stage 1 Opening Balance 01/01/2025 Transfer To Stage 2 Transfer To Stage 3 Transfer From Stage 2 Transfer From Stage 3 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 708,288 (13,256) (34,886) 17,355 88,863 - 26,194 792,558 Credit Cards 108,240 (776) (12,138) - 2,691 - 21,859 119,876 Payroll Loans 104,150 (676) (2,943) 693 6,358 - 2,935 110,517 Personal Loan – not Payroll 25,078 (943) (2,553) 407 3,652 - 6,780 32,421 Real Estate 23,940 (894) (628) 10,624 18,787 - (24,601) 27,228 Rural and Development Loans 328,438 (6,950) (5,842) 4,380 8,266 - 34,051 362,343 Others 118,442 (3,017) (10,782) 1,251 49,109 - (14,830) 140,173 Companies 274,280 (7,433) (14,618) 2,201 70,292 - (77,992) 246,730 Exchange 8,747 - (273) - - - (224) 8,250 Working Capital 24,914 (468) (1,692) 31 5,183 - 1,477 29,445 Business / Guarantee Checking Accounts 130,412 (1,717) (5,394) 67 1,157 - (30,604) 93,921 Real Estate 8,316 (50) - - - - 1,832 10,098 Rural and Development Loans 69,560 (4,050) (4,709) 1,714 4,776 - (2,604) 64,687 Others 32,331 (1,148) (2,550) 389 59,176 - (47,869) 40,329 Total as of 06/30/2025 982,568 (20,689) (49,504) 19,556 159,155 - (51,798) 1,039,288 Consolidated Stage 2 Opening Balance 01/01/2025 Transfer To Stage 1 Transfer To Stage 3 Transfer From Stage 1 Transfer From Stage 3 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 75,036 (17,355) (38,057) 13,256 3,141 - 89,942 125,963 Credit Cards 2 - (1) 776 376 - 8,914 10,067 Payroll Loans 4,952 (693) (2,569) 676 56 - 15,799 18,221 Personal Loan – not Payroll 6,531 (407) (3,791) 943 542 - 8,841 12,659 Real Estate 19,132 (10,624) (4,377) 894 1,493 - 25,519 32,037 Rural and Development Loans 28,903 (4,380) (17,898) 6,950 86 - 18,078 31,739 Others 15,516 (1,251) (9,421) 3,017 588 - 12,791 21,240 Companies 15,917 (2,201) (8,198) 7,433 1,772 - 18,108 32,831 Exchange - - - - - - 7 7 Working Capital 2,635 (31) (1,316) 468 48 - 1,872 3,676 Business / Guarantee Checking Accounts 1,330 (67) (786) 1,717 21 - 4,577 6,792 Real Estate - - - 50 - - (7) 43 Rural and Development Loans 7,538 (1,714) (4,608) 4,050 1,219 - 6,857 13,342 Others 4,414 (389) (1,488) 1,148 484 - 4,802 8,971 Total as of 06/30/2025 90,953 (19,556) (46,255) 20,689 4,913 - 108,050 158,794
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Financial Statements June 30, 2025 70 Consolidated Stage 3 Opening Balance 01/01/2025 Transfer To Stage 1 Transfer To Stage 2 Transfer From Stage 1 Transfer From Stage 2 Write-Off Constitution/ (Reversion) Closing Balance 06/30/2025 Individuals 1,055,927 (88,863) (3,141) 34,886 38,057 (71,890) 637,771 1,602,747 Credit Cards 104,887 (2,691) (376) 12,138 1 - 68,392 182,351 Payroll Loans 423,964 (6,358) (56) 2,943 2,569 (58,692) 257,348 621,718 Personal Loan – not Payroll 147,414 (3,652) (542) 2,553 3,791 (4,155) 67,195 212,604 Real Estate 36,583 (18,787) (1,493) 628 4,377 (1,452) 15,061 34,917 Rural and Development Loans 132,062 (8,266) (86) 5,842 17,898 (79) 76,806 224,177 Others 211,017 (49,109) (588) 10,782 9,421 (7,512) 152,969 326,980 Companies 587,432 (70,292) (1,772) 14,618 8,198 (8,649) 61,678 591,213 Exchange 5,356 - - 273 - - 3,640 9,269 Working Capital 114,252 (5,183) (48) 1,692 1,316 - 799 112,828 Business / Guarantee Checking Accounts 49,593 (1,157) (21) 5,394 786 (28) 21,660 76,227 Real Estate 170 - - - - - (41) 129 Rural and Development Loans 238,484 (4,776) (1,219) 4,709 4,608 (8,621) 13,543 246,728 Others 179,577 (59,176) (484) 2,550 1,488 - 22,077 146,032 Total as of 06/30/2025 1,643,359 (159,155) (4,913) 49,504 46,255 (80,539) 699,449 2,193,960 Consolidated Consolidation of the Three Stages Opening Balance 01/01/2025 Write-Off Constitution/ (Reversion) (1) Closing Balance 06/30/2025 Individuals 1,839,251 (71,890) 753,907 2,521,268 Credit Cards 213,129 - 99,165 312,294 Payroll Loans 533,066 (58,692) 276,082 750,456 Personal Loan – not Payroll 179,023 (4,155) 82,816 257,684 Real Estate 79,655 (1,452) 15,979 94,182 Rural and Development Loans 489,403 (79) 128,935 618,259 Others 344,975 (7,512) 150,930 488,393 Companies 877,629 (8,649) 1,794 870,774 Exchange 14,103 - 3,423 17,526 Working Capital 141,801 - 4,148 145,949 Business / Guarantee Checking Accounts 181,335 (28) (4,367) 176,940 Real Estate 8,486 - 1,784 10,270 Rural and Development Loans 315,582 (8,621) 17,796 324,757 Others 216,322 - (20,990) 195,332 Total as of 03/31/2025 2,716,880 (80,539) 755,701 3,392,042 (1) In the Income Statement, the expected loss from credit and financial leasing operations in the amount of R$420,261 represents the constitution of R$ 603,399 net of the recovery of credit previously written off as a loss in the amount of R$ 152,302. Of the amount of the provision for expected loss associated with credit risk for stage 3, the amount of R$ 186,904 refers to the additional provision to meet the minimum provision incurred requirements established by BCB Resolution No. 352/23.
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Financial Statements June 30, 2025 71 (e) Financial Leasing Transactions as Lessor The analysis of the present value of future minimum payments receivable from financial leases by maturity is presented below: Parent and Consolidated Maturity Future Minimum Payments Income to Own Present Value Current (Up to 1 year) 2,951 (1,594) 2,582 Not Current (From 1 to 5 years) 5,653 (2,939) 3,922 Total as of 06/30/2025 8,604 (4,533) 6,504 (f) Allocation of Resources for Application in Rural Credit Parent and Consolidated 06/30/2025 Rural Credit Manual Guidelines Sub- demandability Source of Resources Total Demandability Total Demandability (%) Mandatory Resources (MCR6.2) Pronaf Demand Deposits 294,597 30% Pronamp Demand Deposits 441,895 45% Other Demand Deposits 245,497 25% Rural Savings (MCR6.4) Rural Savings 431,510 65% Agribusiness Letters of Credit (LCA) (MCR6.7) LCA 1,686,330 50% Regarding possible costs due to non -compliance with requirements related to resources for application in rural credit, Banrisul currently does not incur these costs, given that requirements are fully complied with. Note 11 – Other Financial Assets Parent Up to 12 Months Over 12 Months 06/30/2025 Interbank Accounts 164,251 1,035,010 1,199,261 Credits with the National Housing System(1) - 1,035,010 1,035,010 Outstanding Payments and Receipts 154,882 - 154,882 Others 9,369 - 9,369 Interdependencies Relationships 9,936 - 9,936 Income Receivable 147,110 - 147,110 Debtors for Security Deposits - 1,220,296 1,220,296 Payments to Reimburse 44,881 - 44,881 Securities and Receivables (2) 230,503 267,553 498,056 Others 17,079 - 17,079 Total 613,760 2,522,859 3,136,619
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Financial Statements June 30, 2025 72 Consolidated Up to 12 Months Over 12 Months 06/30/2025 Interbank Accounts 3,236,178 1,035,010 4,271,188 Credits with the National Housing System(1) - 1,035,010 1,035,010 Outstanding Payments and Receipts 3,226,809 - 3,226,809 Others 9,369 - 9,369 Interdependencies Relationships 9,936 - 9,936 Income Receivable 116,644 - 116,644 Negotiation and Intermediation of Securities 9,036 - 9,036 Debtors for Security Deposits - 1,225,371 1,225,371 Payments to Reimburse 22,617 - 22,617 Securities and Receivables (2) 240,309 267,553 507,862 Others 17,083 - 17,083 Total 3,651,803 2,527,934 6,179,737 (1) Credits linked to the Housing Finance System (SFH) are composed of: • R$41,005 refers to future flows updated by the pre-fixed discount rate of 14.07% per year used when acquiring credit from the Salary Variation Compensation Fund (FCVS) of the State of Rio Grande do Sul; • R$991,593 refers to the principal and interest installments of the acquired credits that Banrisul will have the right to receive at the time of novation and that are updated according to the remuneration of the original resources, being Reference Rate (TR) + 6.17% per year for credits originating from own resources and TR + 3.12% per year for credits originating from resources of the Severance Pay Guarantee Fund (FGTS); and • R$2,142 refers to the balance of contracts in the company's own portfolio covered by FCVS, funds from FGTS, approved and ready for no vation, updated by TR + 3.12% per year. Credits Linked to SFH – Acquired Portfolio: from October 2002 to March 2005, Banrisul acquired from the State of Rio Grande do Sul, with a financial realization guarantee clause for any non -performed contracts, credits from the FCVS. The credits are valued at the acquisition price updated by the pro rata temporis acquisition rate in the amount of R$1, 032,598. Their face value is R$1, 035,321. These credits will be converted into CVS securities according to the approval and novation processes, with the amounts that Banrisul will be entitled to receive at the time of novation presented separate ly and updated by TR variation plus interest. Although there is no defined term, at the time of issuance of the securities, the market values may be significantly different from the accounting values. Credits Linked to the SFH – Own Portfolio: refer to credits with the FCVS originating from real estate loans, with funds from the own portfolio, already approved by the FCVS management body. (2) They mainly refer to payment transactions of amounts receivable from card issuers (payment methods) in the amount of R$ 3,071,926 from the subsidiary Banrisul Pagamentos. (3) Securities and credits receivable are mainly composed of: • Credits receivable related to judicial deposits made by the Union arising from the right to receive from companies that bel onged to the same economic group, with final judgment, which Banrisul received in kind to settle loans. These judicial deposits are linked to the rescission action filed by the Union, dismissed by the Federal Regional Court (TRF) of the 1st Region, awaiting judgment of a special appeal filed by the Union wit h the Superior Court of Justice (STJ). Therefore, the release of the amounts t o Banrisul depends on the outcome of the rescission legal action. Management understands that there is no need to set up a provision for losses. These judicial deposits assigned to Banrisul, whose release depends on the final decis ion of the rescission law suit, totaled R$246,589 and are remunerated by the TR and interest; • Other credits without credit characteristics with the municipal public sector, in the amount of R$53,802 related to receivables acquired from the State of Rio Grande do Sul or entities controlled by it. For these credits, there is a provision set up in the amount of R$ 50,025; and • Installment purchases debited by the brand to be invoiced in the amount of R$128, 461.
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Financial Statements June 30, 2025 73 Note 12 – Financial Assets at Fair Value Through Other Comprehensive Income – Securities The composition of financial assets at fair value through other comprehensive income by type of security and maturity is as f ollows: Parent and Consolidated 06/30/2025 No Maturity Up to 3 years From 3 to 5 years Over 5 years Fair Value Updated Cos Treasury Financial Bills (LFT) (1) - - 19,495,659 - 19,495,659 19,444,159 Investment Fund Shares 39,759 - - - 39,759 28,709 Others 21,969 - - - 21,969 21,969 Total (2) 61,728 - 19,495,659 - 19,557,387 19,494,837 (1) These are securities acquired with funds from bank funding and maturity of government securities from the portfolio held to maturity and for trading, the acquisition objective of which is to make a return on available resources and to have the flexibil ity to trade before the maturity date in the event of a change in market conditions, investment opportunities or cash needs. (2) As of the reporting date, there were no records of expected losses. Note 13 – Financial Assets at Fair Value Through Profit or Loss – Securities The composition of financial assets at fair value through profit or loss by type of security and maturity is as follows: Parent 06/30/2025 No Maturity Up to 3 Months From 3 to 12 Months From 1 to 3 Years Over 5 Years Fair Value Updated Cost Treasury Financial Bills (LFT) - - 1,010,091 336,692 - 1,346,783 1,346,542 National Treasury Bills (LTN) - 599,668 930,605 - - 1,530,273 1,543,272 Total - 599,668 1,940,696 336,692 - 2,877,056 2,889,814 Consolidated 06/30/2025 No Maturity Up to 3 Months From 3 to 12 Months From 1 to 3 Years Over 5 Years Fair Value Updated Cost Treasury Financial Bills (LFT) - - 1,326,585 341,712 15,062 1,683,359 1,678,194 National Treasury Bills (LTN) - 599,668 930,606 - - 1,530,274 1,543,272 Investment Fund Shares 157,788 - - - - 157,788 157,788 Total 157,788 599,668 2,257,191 341,712 15,062 3,371,421 3,379,254
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Financial Statements June 30, 2025 74 Note 14 – Other Assets Parent Consolidated 06/30/2025 06/30/2025 Advances to Employees 48,594 48,868 Actuarial Assets - Post-employment Benefit (Note 33e) 184,968 185,452 Other Debtors 154,945 177,918 Assets for Sale 109,525 110,092 Prepaid Expenses 121,535 175,643 Other 9,547 13,593 Total 629,114 711,566 Note 15 – Deferred Taxes and Contributions (a) Tax Credits The following table shows the tax credit balances segregated according to their origins and disbursements made: Parent 01/01/2025 Constitution Realization 06/30/2025 Allowance for Loan Losses 1,790,167 457,254 (346,729) 1,900,692 Provision for Tax Risks 247,844 8,167 (1,621) 254,390 Provision for Labor Risks 788,737 98,292 (56,568) 830,461 Provision for Civil Risks 128,515 7,730 (13,414) 122,831 Fair Value Adjustments Variations 5,242 200 - 5,442 Post Employment Benefits 170,047 40,837 - 210,884 Other Temporary Provisions 234,185 93,772 (96,450) 231,507 Tax Loss 136,178 - (12,471) 123,707 Total Tax Assets 3,500,915 706,252 (527,253) 3,679,914 Unregistered Credits (26) - - (26) Total Deferred Tax Assets Recorded 3,500,889 706,252 (527,253) 3,679,888 Deferred Tax Liabilities (287,939) (36,394) 22,715 (301,618) Deferred Tax Assets Net of Deferred Tax Liabilities 3,212,950 669,858 (504,538) 3,378,270 Consolidated 01/01/2025 Constitution Realization 06/30/2025 Allowance for Loan Losses 1,790,799 458,761 (347,683) 1,901,877 Provision for Tax Risks 247,937 8,170 (1,622) 254,485 Provision for Labor Risks 789,800 98,384 (56,693) 831,491 Provision for Civil Risks 130,100 7,844 (13,522) 124,422 Fair Value Adjustments Variations 5,242 200 - 5,442 Post Employment Benefits 170,697 41,061 (39) 211,719 Other Temporary Provisions 296,802 166,114 (156,242) 306,674 Tax Loss 136,784 - (13,077) 123,707 Total Tax Assets 3,568,161 780,534 (588,878) 3,759,817 Unregistered Credits (26) - - (26) Total Deferred Tax Assets Recorded 3,568,135 780,534 (588,878) 3,759,791 Deferred Tax Liabilities (301,775) (67,109) 53,388 (315,496) Deferred Tax Assets Net of Deferred Tax Liabilities 3,266,360 713,425 (535,490) 3,444,295 The realization of these credits is expected according to the following table: Parent Consolidated Year Income tax Social Contribution on Profit (CSLL) Total Registered Totals Registered Totals 2025 230,627 184,501 415,128 415,128 431,824 2026 433,631 346,905 780,536 780,536 797,449 2027 332,894 266,315 599,209 599,209 612,483 2028 293,785 235,028 528,813 528,813 538,350 2029 358,800 287,040 645,840 645,840 653,174 2030 to 2032 213,048 170,438 383,486 383,486 399,439 2033 to 2034 181,598 145,278 326,876 326,876 327,072 As of 2035 14 12 26 - - Total as of 06/30/2025 2,044,397 1,635,517 3,679,914 3,679,888 3,759,791
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Financial Statements June 30, 2025 75 The total present value of tax credits is R$2, 678,833 and in the Consolidated R$2, 739,981, calculated according to the expected realization of deferred IR and CSLL at the average collection rate projected for the corresponding periods. (b) Deferred Tax Obligations Parent Consolidated 06/30/2025 06/30/2025 Excess Depreciation 3,705 3,705 Own Securities at Fair Value through Other Comprehensive Income 28,147 28,149 Securities – Fair Value Adjustments through Profit or Loss - 400 Adjustment of MTM Subordinated Debt – Hedge Accounting 6,619 6,619 Renegotiated Operations Law No, 12,715/12 163,495 163,495 Actuarial Surplus 99,652 99,817 Other Temporary Debts - 13,311 Total 301,618 315,496 Note 16 – Investments in Associated and Subsidiary Companies The table below shows the affiliated companies in which Banrisul has investments: Parent Consolidated 06/30/2025 06/30/2025 Investments in Domestic Subsidiaries 3,776,617 - Investments in Associates 157,746 157,746 Total 3,934,363 157,746 Parent Equity 06/30/2025 Participation in Equity (%)06/30/2025 Invest. Value 06/30/2025 Net Income 01/01/ to 06/30/2025 Equity Results 01/01/ to 06/30/2025 Dividends and IoC Paid/ Provisioned (1) Subsidiaries Banrisul Armazéns Gerais S.A. 84,011 100.00 84,011 6,267 6,246 - Banrisul S.A. Corretora de Valores Mobiliários e Câmbio 150,785 98.98 149,272 15,612 15,453 - Banrisul S.A. Administradora de Consórcios 520,404 99.68 518,755 45,742 45,597 - Banrisul Soluções em Pagamentos S.A. 2,734,002 100.00 2,734,002 195,815 195,815 - Banrisul Seguridade Participações S.A. 290,577 100.00 290,577 87,851 87,851 150,272 Associates Bem Promotora de Vendas e Serviços S.A. 64,060 49.90 31,966 7,691 3,838 2,474 Banrisul Icatu Participações S.A. 251,610 49.99 125,780 84,596 42,289 62,140 Total 315,670 157,746 92,287 46,127 64,614 Consolidated Equity 06/30/2025 Participation in Equity (%)06/30/2025 Invest. Value 06/30/2025 Net Income 01/01/ to 06/30/2025 Equity Results 01/01/ to 06/30/2025 Dividends and IoC Paid/ Provisioned(1) Associates Bem Promotora de Vendas e Serviços S.A. 64,060 49.90 31,966 7,691 3,838 2,474 Banrisul Icatu Participações S.A. 251,610 49.99 125,780 84,596 42,289 62,140 Total 315,670 157,746 92,287 46,127 64,614 (1) Deliberate and unpaid dividends are recorded in income receivable in proportion to participation.
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Financial Statements June 30, 2025 76 Bem Promotora de Vendas e Serviços S.A.: operates in the generation of payroll loans. Banrisul Icatu Participações S.A. (BIPAR): holding company that owns 100% of the company Rio Grande Seguros e Previdência S.A., an insurance company that operates in the Life and Private Pension segments, and Rio Grande Capitalização. Note 17 – Property and Equipment Parent Property in Use Equipment in Inventory Facilities Equipment in Use Data Processing System Other Total as of 06/30/2025 Total as of 01/01/2025 Cost 182,050 5,111 315,583 177,021 448,214 24,041 1,152,020 Accumulated Depreciation (98,255) - (156,793) (95,743) (299,457) (20,524) (670,772) Net Balance 83,795 5,111 158,790 81,278 148,757 3,517 481,248 Acquisitions – Early Adoption CPC 06(R2) 449,235 - - - 8,657 4,007 461,899 Acquisitions 25,392 820 18,874 6,350 2,400 108 53,944 Disposals - Cost (43,772) - (3,457) (1,304) (8,710) (6) (57,249) Disposals – Depreciation 37,691 - 1,838 1,166 7,511 6 48,212 Depreciation – Early Adoption CPC 06(R2) (224,688) - - - (5,706) (468) (230,862) Depreciation (40,129) - (5,774) (3,862) (17,709) (721) (68,195) Net Transfers - Cost (1) (1,710) - 1,797 (92) 6 - Transfers Net Depreciation - - - (292) 270 22 - Net Change in the Period 203,728 (890) 11,481 3,855 (13,379) 2,954 207,749 Total as of 03/31/2025 Cost 612,904 4,221 331,000 183,864 450,469 28,156 1,610,614 Accumulated Depreciation (325,381) - (160,729) (98,731) (315,091) (21,685) (921,617) Net Balance 287,523 4,221 170,271 85,133 135,378 6,471 688,997 Consolidated Property in Use Equipment in Inventory Facilities Equipment in Use Data Processing System Other Total as of 06/30/2025 Total as of 01/01/2025 Cost 198,688 39,498 332,644 187,931 678,530 25,366 1,462,657 Accumulated Depreciation (103,353) - (164,588) (100,982) (409,405) (21,755) (800,083) Net Balance 95,335 39,498 168,056 86,949 269,125 3,611 662,574 Acquisitions – Early Adoption CPC 06(R2) 455,883 - - - 8,657 4,007 468,547 Acquisitions 25,392 20,472 18,874 6,350 2,400 328 73,816 Disposals - Cost (43,773) (49) (3,457) (1,483) (46,400) (104) (95,266) Disposals – Depreciation 37,692 - 1,837 1,345 39,611 104 80,589 Depreciation – Early Adoption CPC 06(R2) (227,384) - - - (5,705) (468) (233,557) Depreciation (40,781) - (6,366) (4,259) (38,431) (762) (90,599) Net Transfers - Cost (1) (24,648) - 1,797 22,846 6 - Transfers Net Depreciation - - - (292) 270 22 - Net Change in the Period 207,028 (4,225) 10,888 3,458 (16,752) 3,133 203,530 Total as of 03/31/2025 Cost 636,189 35,273 348,061 194,595 666,033 29,603 1,909,754 Accumulated Depreciation (333,826) - (169,117) (104,188) (413,660) (22,859) (1,043,650) Net Balance 302,363 35,273 178,944 90,407 252,373 6,744 866,104 The lease agreements entered into as lessee basically relate to real estate and data processing equipment used in Banrisul's operations. In general, the agreements have an option for renewal and annual adjustment according to a price index. The following table presents the undiscounted contractual cash flows of lease liabilities by maturity date:
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Financial Statements June 30, 2025 77 Parent and Consolidated 06/30/2025 Up to 12 Months 74,724 From 1 to 5 Years 147,458 Over 5 Years 8,698 Total (1) 230,880 (1) Includes financial leasing contracts with related parties in the amount of R$85,513 (Note 35b). Note 18 – Intangible Assets Parent Software Use Rights Right from Acquisition of Payroll operations (1) Others Total as of 06/30/2025 Total as of 01/01/2025 Cost 314,697 1,576,337 658 1,891,692 Accumulated Amortization (196,874) (1,228,094) (658) (1,425,626) Net Balance 117,823 348,243 - 466,066 Acquisitions 5,820 12,495 - 18,315 Disposals – Write-offs - (393) - (393) Disposals – Amortization Write-Offs - 207 - 207 Amortization (13,669) (95,309) - (108,978) Net Change (7,849) (83,000) - (90,849) Total as of 06/30/2025 Cost 320,517 1,588,439 658 1,909,614 Accumulated Amortization (210,543) (1,323,196) (658) (1,534,397) Net Balance 109,974 265,243 - 375,217 Consolidated Software Use Rights Right from Acquisition of Payroll operations (1) Others Total as of 06/30/2025 Total as of 01/01/2025 Cost 315,967 1,576,337 875 1,893,179 Accumulated Amortization (198,144) (1,228,094) (875) (1,427,113) Net Balance 117,823 348,243 - 466,066 Acquisitions 5,820 12,495 - 18,315 Disposals – Write-offs (38) (393) - (431) Disposals – Amortization Write-Offs 38 207 - 245 Amortization (13,669) (95,309) - (108,978) Net Change (7,849) (83,000) - (90,849) Total as of 06/30/2025 Cost 321,749 1,588,439 875 1,911,063 Accumulated Amortization (211,775) (1,323,196) (875) (1,535,846) Net Balance 109,974 265,243 - 375,217 (1) Refers mainly to contracts with the public sector (State of Rio Grande do Sul and city halls).
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Financial Statements June 30, 2025 78 Note 19 – Financial Liabilities at Amortized Cost Parent No Maturity Up to 3 Months From 3 to 12 Months From 1 to 3 Years From 3 to 5 Years Over 5 Years 06/30/2025 Deposits 23,890,522 7,149,655 5,796,853 30,224,051 13,755,857 12,659,060 93,475,998 Demand Deposits 2,821,843 - - - - - 2,821,843 Savings Deposits 11,201,622 - - - - - 11,201,622 Interbanking Deposits - 1,639,078 179,970 243,437 - - 2,062,485 Time Deposits (1) - 5,510,577 5,616,883 29,980,614 13,755,857 12,659,060 67,522,991 Judicial and Administrative (2) 9,852,809 - - - - - 9,852,809 Other Deposits 14,248 - - - - - 14,248 Repurchase Agreements (Repos) - 23,793,847 22,180 - 23,816,027 Funds from Acceptance and Issuance of Securities - 2,323,681 4,414,085 3,353,790 24,792 - 10,116,348 Subordinated Debt (LFSN) (3) - - - - - 456,385 456,385 Borrowings (4) - 613,317 1,625,385 133,882 39,756 8,698 2,421,038 Onlendings (5) - 281,349 674,219 1,377,413 879,604 657,774 3,870,359 Other Financial Liabilities (Note 20) - 4,098,904 - 2,169 - - 4,101,073 Total 23,890,522 38,260,753 12,532,722 35,091,305 14,700,009 13,781,917 138,257,228 Consolidated No Maturity Up to 3 Months From 3 to 12 Months From 1 to 3 Years From 3 to 5 Years Over 5 Years 06/30/2025 Deposits 24,103,029 7,149,655 4,820,250 30,224,051 13,755,857 12,659,060 92,711,902 Demand Deposits 2,811,985 - - - - - 2,811,985 Savings Deposits 11,201,622 - - - - - 11,201,622 Interbanking Deposits - 1,639,078 179,970 243,437 - - 2,062,485 Time Deposits (1) - 5,510,577 4,640,280 29,980,614 13,755,857 12,659,060 66,546,388 Judicial and Administrative (2) 9,852,536 - - - - - 9,852,536 Other Deposits 236,886 - - - - - 236,886 Repurchase Agreements (Repos) - 23,676,774 22,180 - - - 23,698,954 Funds from Acceptance and Issuance of Securities - 2,321,453 3,849,179 3,091,029 24,792 - 9,286,453 Subordinated Debt (LFSN) (3) - - - - - 456,385 456,385 Borrowings (4) - 613,608 1,626,299 135,950 40,464 8,698 2,425,019 Onlendings (5) - 281,349 674,219 1,377,413 879,604 657,774 3,870,359 Other Financial Liabilities (Note 20) - 5,703,091 - 2,169 - - 5,705,260 Total 24,103,029 39,745,930 10,992,127 34,830,612 14,700,717 13,781,917 138,154,332 (1) These are carried out in the form of post - or prefixed charges, which correspond to 82.11% and 17.89% of the total portfolio, respectively. Of the total funds raised in time deposits, 63.05% have a previously agreed early redemption condition, for whic h the expense is appropriated at the rate agreed for the maturity date, disregarding discounts or reductions applied when the redem ption is early. The maturity ranges shown do not consider the possibility of early redemption. (2) Refers mainly to a fund constituted by the portion not made available to the State of Rio Grande do Sul of the judicial d eposits intended to guarantee the restitution of said deposits (Note 3 4a). (3) On September 16, 2022, Banrisul issued Subordinated Financial Notes (LFSN) in the amount of R$300,000 (three hundred mill ion reais) with a remuneration of CDI + 3.5% per year, for a term of 10 years, with the option of repurchase by Banrisul star ting in the 5th year, counted from the date of issuance. LFSN are authorized to compose the Tier 2 Capital (CN2) of Banrisul's Refere nce Equity (PR), under the terms of BCB Resolution No. 122/21. (4) Funds raised from banks abroad for investment in foreign exchange commercial transactions, incurring exchange rate variat ion of the respective currencies plus interest and fees. Also included are leasing obligations as per CPC 06(R2). (5) Basically, they represent funding from official institutions (National Bank for Economic and Social Development – BNDES, Special Agency for Industrial Financing – FINAME, Caixa Econômica Federal and Financing Agency for Studies and Projects – FINEP). The funds are transferred to clients within the same terms and rates as funding, plus an intermediation commission. The guara ntees received in the corresponding credit operations were transferred as collateral for these funds.
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Financial Statements June 30, 2025 79 Note 20 – Other Financial Liabilities Parent Up to 12 Months Over 12 Months 06/30/2025 Interfinancial Relations 1,074,687 - 1,074,687 Interdependence Relations 686,097 - 686,097 Foreign Exchange Operations 126,276 - 126,276 Creditors for Resources to be Released 64,117 - 64,117 Payable Card Transactions 1,230,816 - 1,230,816 Acquisition Vero Network 757,419 - 757,419 Other 159,492 2,169 161,661 Total 4,098,904 2,169 4,101,073 Consolidated Up to 12 Months Over 12 Months 06/30/2025 Interfinancial Relations 891,417 - 891,417 Interdependence Relations 686,098 - 686,098 Foreign Exchange Operations 126,276 - 126,276 Negotiation and Intermediation of Securities 9,110 - 9,110 Creditors for Resources to be Released 64,253 - 64,253 Payable Card Transactions 1,230,816 - 1,230,816 Acquisition Vero Network 2,401,253 - 2,401,253 Other 293,868 2,169 296,037 Total 5,703,091 2,169 5,705,260 Note 21 – Financial Liabilities at Fair Value through Profit or Loss Parent and Consolidated 30/06/2025 Derivative Financial Instruments (Asset)/Liabilities (Note 22) (90,897) Swap (89,334) Exchange (1,577) Future DI 14 Subordinated Debt (1) 1,663,277 Mark-to-Market Subordinated Debts (Note 22) 1,660,292 Expenses Provision and Charges to Incorporate 2,985 Total 1,572,380 (1) Presented net between assets and liabilities. (2) On 01/28/2021, Banrisul issued subordinated notes (Tier 2) in the foreign market in the amount of US$300 million (three hundred million US dollars), for a term of 10 years, with the option of redemption by Banrisul starting in the 5th year, counted from the date of issuance. Note 22 – Derivative Financial Instruments Banrisul participates in transactions involving derivative financial instruments in the form of swaps, DI1 futures contracts and foreign exchange transactions, recorded in balance sheet and clearing accounts, which are intended to meet its own needs to manage its global exposure in foreign currency. The use of derivative financial instruments is predominantly intended to mitigate the risks arising from changes in interest rates and exchange rate fluctuations in the foreign market funding operation carried out by Banrisul, mentioned in Note 21, which result in the conversion of these rates to the variation of the CDI rate. BCB Resolution No. 352/23 establishes that the reclassification of hedging instruments will occur as of January 1, 2027. The derivative financial instruments are adjusted to their fair value, as shown in the table below:
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Financial Statements June 30, 2025 80 Parent and Consolidated Derivativies Reference Value Curve Value Fair Value Adjustment Fair Value 06/30/2025 Swap 105,017 (15,683) 89,334 Assets 1,493,020 187,032 (15,684) 171,348 Liabilities (1,493,020) (82,015) 1 (82,014) DI Futures (1) 1,529,895 1,131,426 398,469 1,529,895 (1) The reference values of DI Futures are recorded in clearing accounts. The following table presents information on derivative financial instruments segregated by maturity date: Parent and Consolidated Derivativies Reference Value Curve Value Up to 3 months From 3 to 12 months Swap 89,334 (636) 89,970 Assets 1,493,020 171,348 4,488 166,860 Liabilities (1,493,020) (82,014) (5,124) (76,890) DI Futures (1) 1,529,895 1,529,895 599,670 930,225 Net Adjustment Swap 06/30/2025 89,334 (636) 89,970 Banrisul operates with DI Futures contracts, in a “married” manner with investments made in federal government bonds that have a fixed rate, in order to offset the risk of fluctuations in the DI rate, with adjustments to the prices of these derivatives being recorded daily in the result. Banrisul also uses the hedge accounting structure provided for in Bacen regulations. The expected effectiveness from the designation of the protection instruments and throughout the operation is in accordance with what is established by Bacen. In the marke t risk hedge category, Banrisul included the derivative financial instruments contracted with the objective of protecting against the variation in foreign currency originating from subordinated notes issued in the foreign market in the amount of US$300 mil lion, according to conditions previously agreed upon in the Offering Memorandum, described in Note 21. Banrisul performs a quantitative assessment of the prospective effectiveness of the hedge, which is determined using the Dollar Offset method, also known as DV01 (Sensitivity of 1 basis point), which consists of the metric that demonstrates the variation i n the value of a security in relation to a variation in the market interest rate. The quantitative Dollar Offset method (ratio analysis) is also used to assess retrospective effectiveness, or ineffectiveness testing, which compares the change in the fair value of the hedging instrument with the change in the fair value of the hedged ite m. The hedge effectiveness assessment will be performed directly, with the forward points of the hedging instrument and the cash flow of the liability being included in the tests. The table below shows the hedge accounting structure and the relationship between the hedging instruments and the hedged items, evidencing the effectiveness of the instrument at the reporting date. The relationship is also shown in Note 5e.1. Parent and Consolidated Hedge and Market Risk Reference Value (US$) Asset Index Liabilities Index MTM MTM DV1 MTM Effect Instrumento de Hedge Swap 200,000 USD+5.375% 100% CDI 59,384 59,348 36 Swap 100,000 USD+5.375% 100% CDI 29,950 29,932 18 Total 89,334 89,280 54 Hedge Tier 2 300,000 USD+5.375% (1,660,292) (1,660,238) (54) DV01 -99.94% Derivative transactions in the swap modality are based on over -the-counter contracts registered with B3 and have as counterparties financial institutions classified as first-tier.
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Financial Statements June 30, 2025 81 Banrisul and the counterparties, reciprocally, are subject to the provision of real guarantees if the derivative financial instruments exceed the market value limits stipulated in the contract. The margin deposited by Banrisul as collateral for transaction s with derivative financial instruments consists of interbank deposits in the amount of R$111,110. According to CMN Resolutions No. 4,966/21 and BCB Resolution No. 352/23, foreign exchange transactions are now treated as derivative financial instruments. The value of these transactions depends on variations in factors such as interest and exchange rates, do not require a significant initial investment and are settled at a future date. Banrisul records these transactions in balance sheet and clearing accounts. The following table presents the exchange transactions on the reporting date. Parent and Consolidated 06/30/2025 Exchange Notional Fair Value MTM Buy Ready Settlement 30,197 29,958 (239) Future Settlement 11,339 10,911 (428) Sub-Total 41,536 40,869 (667) Sell Ready Settlement (126,206) (124,458) 1,748 Future Settlement (100,979) (100,483) 496 Sub-Total (227,185) (224,941) 2,244 Total (185,649) (184,072) 1,577 Note 23 – Provisions, Contingent Liabilities and Contingent Assets (a) Provisions and Contingent Liabilities In the course of their normal activities, Banrisul and its subsidiaries are parties to legal and administrative proceedings of a tax, labor and civil nature. Despite the inherent uncertainty regarding the terms and outcome of the cases, provisions were set up based on the opini on of legal advisors, using models and criteria that allow their measurement. Banrisul sets up a provision for the value of shares whose valuation is classified as probable. Management believes that the provisions set up are sufficient to cover potential l osses arising from legal proceedings. The changes in provisions are presented below: Parent Tax Labor Civil Other Total Opening Balance as of 01/01/2025 849,375 1,752,748 285,589 7,455 2,895,167 Constituition and Inflation Adjustment 18,897 218,427 28,950 103 266,377 Reversal of Provision - - (11,771) - (11,771) Payment (1,431) (125,706) (29,809) - (156,946) Closing Balance as of 06/30/2025 866,841 1,845,469 272,959 7,558 2,992,827 Guaranteed Debtors Deposits as of 03/31/2025 166,514 902,595 151,187 - 1,220,296 Consolidated Tax Labor Civil Other Total Opening Balance as of 01/01/2025 849,648 1,755,876 289,917 7,455 2,902,896 Constituition and Inflation Adjustment 18,905 218,330 29,026 103 266,364 Reversal of Provision - - (11,822) - (11,822) Payment (1,432) (125,707) (29,828) - (156,967) Closing Balance as of 06/30/2025 867,121 1,848,499 277,293 7,558 3,000,471 Guaranteed Debtors Deposits as of 03/31/2025 167,740 906,444 151,187 - 1,225,371 Tax Proceedings: provisions for tax contingencies basically refer to liabilities related to taxes whose legality or constitutionality is the subject of administrative or judicial dispute and the likelihood of loss is considered probable, and are constituted for the full amount under discussion. The main tax lawsuits refer to:
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Financial Statements June 30, 2025 82 • Income tax and social contribution on the deduction of expenses arising from the settlement of the actuarial deficit in the FBSS, questioned by the Federal Revenue Service for the period from 1998 to 2005, in which Banrisul, through its legal advisors, has been discussing the matter in court and has recorded a provision for contingencies for the estimated loss amounting to R$838,039; and • Other contingencies related to municipal and federal taxes classified by our advisors as probable losses in the amount of R$1,519. There are also tax contingencies that, according to their nature, are considered as possible losses, in the amount of R$ 801,662 and in the Consolidated, R$ 840,936. These contingencies arise mainly from municipal and federal taxes, for which, in accordance with accounting practices, no provision for contingencies was recorded. In addition, there is a tax assessment notice from the Federal Revenue Service regarding t he employer's social security contribution and contribution to other entities and funds, requi ring the contribution, mainly, on the benefits of the Worker's Food Program (PAT) and Profit Sharing (PLR) in the amount of R$ 242,676, classified by our advisors as a possible loss in the amount of R$ 215,393 and as a probable loss in the amount of R$27,283, which has been duly provisioned. Labor Lawsuits: These arise from labor lawsuits, generally filed by employees, former employees, employees of outsourced companies, associations, unions and the Public Prosecutor's Office, with the alleged violation of labor rights as their object. A provision has been set up for labor lawsuits filed against Banrisul in accordance with its Provisioning Policy for the classification and provisioning of labor lawsuits, implemented since the second half of 2020, with the provision for lawsuits with claims classified as probable loss. Of the aforementioned provision, the amount of R$801,047 and R$802,954 in the Consolidated are deposited in court. Additionally, the amount of R$ 101,548 and R$103,537 in the Consolidated were required for procedural appeals. There are also labor contingencies that are considered as possible losses, in the amount of R$1,075,443 and in the Consolidated R$1,082,954, which, according to the nature of these processes, mainly refer to requests for overtime, salary reinstatement and salary equalization. In accordance with accounting practices, no provision for contingencies was recorded. Civil Lawsuits: civil lawsuits involving Banrisul are mostly filed by customers and users who seek to cancel or be released from debts that the debtor does not recognize or claims are undue; review bank debts and question illicit charges and abusive interest rates; obtai n compensation for material and moral damages resulting from banking products and services; and recover inflationary purges related to Economic Plans on financial investments (Bresser Plan, Summer Plan, Collor Plan I and Collor Plan II). The estimates of the result and financial impact of these lawsuits are defined by the nature of the demands and the judgment of the Administration based on the opinion of legal advisors and the elements of the proceedings, also considering the complexity a nd experience of similar cases. Banrisul sets up provisions for civil lawsuits in accordance with its Provisioning Policy, which uses individual or mass criteria, according to the nature, purpose and basis of the lawsuits, in order to facilitate the control and management of provisions. Mass lawsuits are those that do not have a court decision and that, depending on the type and purpose of the lawsuit, as well as the case law, Banrisul classifies as having a probable, possible or remote risk. For some lawsuits that, even without a decisio n, are classified as probable, Banrisul estimates an average value of the historical costs of conviction and loss of suit, generating an average ticket value that may have to be disbursed. To adjust for the probability of loss, this value is reviewed after the court decision on the merits, in cases where the lawsuit is dismissed or changed, and in the provision values in cases where Banrisul is convicted. Individual lawsuits are those that Banrisul understands do not fall under the mass litigation rule, either due to their nature or their purpose, when they are in their initial phase, and those that already have a favorable or unfavorable decision that impacts the risk classification and the provision amounts. Of the aforementioned provision, the amount has been deposited in court, R$151,187 in individual and in the Consolidated.
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Financial Statements June 30, 2025 83 There are also R$ 401,719 and R$401,919 in the Consolidated related to lawsuits filed by third parties against Banrisul whose nature of the lawsuits refers mainly to actions that discuss insurance, real estate credit and checking accounts, which the legal department classifies as possible losse s and, therefore, have not been provisioned. Other Lawsuits : On September 29, 2000, Banrisul received a fine imposed by Bacen in connection with administrative proceedings, also opened by Bacen, regarding alleged irregularities committed in foreign exchange transactions between 1987 and 1989. In April 2022, with a final decision issued by the Superior Court of Justice (STJ) that recognized the statute of limitations of the fines applied, with the exception of a tiny portion, whose conviction remained, the provision was reversed in the amount of R$158, 929, leaving the amount of R$7,558 provisioned. (b) Contingent Assets No contingent assets were recognized in the accounts and there are no ongoing processes with probable gains. Note 24 – Other Liabilities Parent Consolidated 06/30/2025 06/30/2025 Collection of taxes and mandatory contributions 181,883 181,883 Social and Statutory Obligations 137,332 137,681 Provision of Personnel 207,045 208,025 Obligations for Official Covenants and Payment Services 189,859 196,910 Various Creditors in the Country 122,500 201,473 Actuarial Liabilities - Post-Employment Benefit (1) 567,236 569,694 Provisions for Outgoing Payments 180,587 221,421 Anticipated Income 110,097 110,094 Others 3,544 4,895 Total 1,700,083 1,832,076 (1) Refers mainly to the sponsor's obligations on deficits found in defined benefit plans offered to employees and former employees of Banrisul and group companies (Note 33e). Note 25 – Equity (a) Capital Banrisul's share capital on the reporting date was R$8, 300,000, subscribed and paid in, represented by 408,974,477 shares, with no par value, as per the following table: ON PNA PNB Total Quantity % Quantity % Quantity % Quantity % Rio Grande do Sul State Shareholding as of 01/01/2025 201,225,359 98.13 751,479 54.73 - - 201,976,838 49.39 Shares Conversion and Transfers - - - - - - - - Shareholding as of 06/30/2025 201,225,359 98.13 751,479 54.73 - - 201,976,838 49.39 Administradores, Conselheiros e Membros de Comitê Shareholding as of 01/01/2025 10,306 - 11 - 105 - 10,422 - Shares Conversion and Transfers - - - - - - - - Shareholding as of 06/30/2025 10,306 - 11 - 105 - 10,422 - Outros Shareholding as of 01/01/2025 3,829,176 1.87 621,601 45.27 202,536,440 100.00 206,987,217 50.61 Shares Conversion and Transfers - - - - - - - - Shareholding as of 06/30/2025 3,829,176 1.87 621,601 45.27 202,536,440 100.00 206,987,217 50.61 Total em 01/01/2025 205,064,841 100.00 1,373,091 100.00 202,536,545 100.00 408,974,477 100.00 Shares Conversion and Transfers - - - - - - - - Total em 06/30/2025 205,064,841 100.00 1,373,091 100.00 202,536,545 100.00 408,974,477 100.00 Preferred shares do not have voting rights and are remunerated as follows: • Class A Preferred Shares:
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Financial Statements June 30, 2025 84 o Priority in receiving a fixed, non-cumulative preferential dividend of 6% (six percent) per year, calculated based on the quotient resulting from dividing the value of the share capital by the number of shares comprising it; o Right to participate, after paying the Class B Common and Preferred shares a dividend equal to that paid to such shares, in the distribution of any other dividends or cash bonuses distributed by the company, on the same terms as the Class B Common and Pr eferred shares, with an increase of 10% (ten percent) on the amount paid to such shares; o Participation in capital increases resulting from the capitalization of reserves, on the same terms as the Class B Common and Preferred shares; and o Priority in the reimbursement of capital, without premium. • Class B Preferred Shares: o Participation in capital increases resulting from the capitalization of reserves, under the same conditions as Class A Common and Preferred Shares; and o Priority in capital reimbursement, without premium. (b) Reserves • Capital Reserve: refers to amounts received by the company that have not been reflected in the income statement, as they do not refer to consideration for the delivery of goods or services provided to the company. • Legal Reserve: aims to increase the company's capital or absorb losses, but cannot be distributed in the form of dividends; • Statutory Reserve: aims to guarantee resources for investments and applications in the IT area, and is limited to 70% of the Paid-in Share Capital; and • Expansion Reserve: aims to retain profits to finance investment projects in fixed or working capital, justified in the capital budget proposed by the Management and approved by the General Meeting. (c) Distribution of Profit The net profit for the fiscal year, adjusted in accordance with Law No. 6,404/76, will be allocated as follows: • 5% to constitute the Legal Reserve, which will not exceed 20% of the Share Capital; • Minimum Mandatory Dividends of 25% of the Adjusted Net Profit; and • Up to 25% of the Net Profit for the Statutory Reserve, limited to 70% of the Paid -in Share Capital, which is intended to guarantee resources for investments and applications in the IT area. The capital remuneration policy adopted by Banrisul aims to distribute interest on equity in the maximum deductible amount calculated in accordance with current legislation, which may be based on accumulated profits or profit reserves. The interest paid ma y be imputed, net of income tax, in the calculation of the mandatory dividends for the fiscal year provided for in the Bylaws. As permitted by Law No. 9,249/95 and CVM Resolution No. 207/96, Banrisul's management paid the amount of R$180,000, corresponding to Interest on Equity (JCP) for the reporting period, allocated to dividends, net of income tax withheld at source. The payment of JCP resulted in a tax benefit for Banrisul in the amount of R$81,000. Banrisul has maintained, since the beginning of 2008, a capital remuneration policy with quarterly payment of JCP and, historically, has remunerated its shareholders with payment of JCP and dividends above the legally required minimum. On April 29, 2025, at the Annual General Meeting, the proposal for distribution of additional dividends for the fiscal year 2024 was approved at a percentage equivalent to 15% of Net Income less the Legal Reserve, totaling 40%. The distribution of dividends and interest on equity is shown in the following table:
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Financial Statements June 30, 2025 85 01/01 to 06/30/2025 Net Income Attributable to Controlling Shareholders 618,879 Adjustment Legal Reserve (30,944) Dividend Calculation Basis 587,935 Mandatory Minimum Dividend 25% 146,984 Aditional Dividend 15% 88,190 Total Dividends/Interest on Equity 235,174 Paid Interest on Equity¹ 168,769 Commom Shares (R$440.12526 per thousand shares) 90,254 Preferred Shares A (R$440.12526 per thousand shares) 604 Preferred Shares B (R$440.12526 per thousand shares) 89,142 Withholding Income Tax related to Interest on Equity (11,231) Accrued Dividends¹ 66,405 Commom Shares (R$162.36981 per thousand shares) 33,296 Preferred Shares A (R$162.36981 per thousand shares) 223 Preferred Shares B (R$162.36981 per thousand shares) 32,886 Total Interest on Equity and Dividends 235,174 (1) Values per thousand shares for the current period. Note 26 – Revenues from Fees and Services Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Asset Management 31,355 63,661 Income from Bill Collection and Custody Services 27,532 27,548 Income from Consortium - 62,410 Banrisul Pagamentos Service Revenues - 266,640 Collection Services 15,961 15,961 Insurance Commissions - 149,380 Credit Cards 115,686 120,522 Bank Fees from Checking Accounts 294,938 303,749 Other Income 18,974 37,072 Total 504,446 1,046,943 Note 27 – Personnel Expenses Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Salary 657,146 664,603 Benefits 223,041 224,147 Social Charges 285,483 287,139 Trainings 2,558 2,637 Profit Sharing 135,605 135,605 Total 1,303,833 1,314,131 Note 28 – Other Administrative Expenses Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Communications 35,366 37,244 Data Processing 124,864 128,402 Surveillance, Security and Transportation of Values 69,131 69,131 Amortization and Depreciation 177,173 199,577 Rentals and Condominiums 28,224 27,609 Supplies 5,301 5,360 Third Party Services 226,680 241,468 Specialized Technical Services 99,093 105,761
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Financial Statements June 30, 2025 86 Advertising (1) 71,544 78,990 Maintenance 56,832 57,024 Water, Energy and Gas 16,337 16,690 Financial System Services 19,958 21,028 Others 55,902 57,078 Total 986,405 1,045,362 (1) It is mainly composed of R$ 29,390 and in the Consolidated R$ 35,621 of expenses with institutional advertising and R$ 40,474 and in the Consolidated R$40,506 of a publicity program through events and sports clubs.
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Financial Statements June 30, 2025 87 Note 29 – Other Operating Income Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Recovery of Charges and Expenses 110,051 11,642 Reversal of Operating Provisions 30,310 31,749 Interbank Rates 8,209 8,209 Credit Receivables Securities 13,317 13,332 Other Revenues From Cards(1) 9,219 9,219 Reversal of Provisions for Outgoing Payments 4,688 5,591 Update on Judicial Deposits 42,713 42,831 Income from Anticipation of Payment Transaction Obligations - 145,612 Income from Portability of Credit Operations 19,712 19,712 Actuarial Asset Update 26,160 26,277 Other 19,936 23,162 Total 284,315 337,336 Note 30 – Other Operating Expenses Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Discounts Granted on Debt Restructurings 49,248 49,248 Expenses on Cards 5,364 5,364 Fees from INSS Covenant 150,613 150,613 Fees from Payroll Loans Covenant 4,263 4,263 Expenses on Collection of Federal Taxes 5,859 5,859 Payments Transaction Expenses 3,297 68,869 Credit Operations Portability Expenses 6,388 6,388 Monetary Update on Financing Release 4,239 4,239 Banrisul Bonus Advantages 20,328 20,328 Fees not received 9,991 9,991 Actuarial Asset Update 36 56 Payroll Processing Services 11,220 11,220 Other 26,995 35,349 Total 297,841 371,787 Note 31 – Income Tax and Social Contribution The reconciliation of income tax and social contribution expenses/income is presented below: Parent Consolidated 01/01 to 06/30/2025 01/01 to 06/30/2025 Income Before Taxes on Profit 647,218 827,217 Total Income Tax Burden (25%) and Social Contribution at Current Rates (291,248) (315,412) Effect on Tax Calculation 262,909 107,378 Interest on Equity Paid/Accrued 81,000 81,000 Equity Income Result 178,690 20,757 Other Values 3,219 5,621 Total Income Tax and Social Contribution (28,339) (208,034) Current (26,010) (217,813) Deferred (2,329) 9,779
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Financial Statements June 30, 2025 88 Note 32 – Earnings per Share The following table presents EPS using the weighted average number of total common and preferred shares outstanding during the period corresponding to the result. Parent and Consolidated 01/01 to 06/30/2025 Net Profit Attributable to Controlling Shareholders – R$ Thousand 618,879 ON – Commom Shares 310,293 PNA – Preferred Shares 2,118 PNB – Preferred Shares 306,468 Weighted Average Outstanding Shares 408,974,477 Weighted Average Number of Outstanding Common Shares 205,064,841 Weighted Average Number of Outstanding Preferred A Shares 1,373,091 Weighted Average Number of Outstanding Preferred B Shares 202,536,545 Basic and Diluted earnings per Share – R$ Common Shares 1.51 Preferred A Shares 1.54 Preferred B Shares 1.51 Note 33 – Long-Term Post-Employment Benefit Obligations to Employees Banrisul sponsors FBSS and Cabergs, which provide supplementary retirement and medical benefits, respectively, to their employees. FBSS has administrative autonomy and aims to establish pension benefit plans for its participants – employees of the sponsors and their respective beneficiaries – through specific contributions, established in their plans and respective regulations. Banris ul's Supplementary Pension Policy implemented by FBSS, established on January 29, 1963 in accordance with the legislation in force at the time, is based on article 202 of the Federal Constitution of October 5, 1988, Supplementary Laws 108 and 109 of May 29, 2001, and other legal standards in force issued by Social Security regulatory bodies linked to the Ministry of Finance, such as the National Superintendence of Supplementary Pensions (Previc) and the National Council of Supplementary Pensions (CNPC), the Bylaws of the Managing Entity and respective regulations of the Benefit Plans, as well as being in accordance with CMN Resolution No. 4,994/22. Article 8 of CMN Resolution No. 4,994/22 determines that the Pension Fund's Deliberative Council designates a Statutory Administrator Technically Qualified for Investment Management (AETQ) as the person primarily responsible for the management, allocation, supervision and monitoring of the resources guaranteeing its plans and for providing information regarding the application of these resources. The Benefit Plans that support Banrisul's Supplementary Pension Policy are based on the respective Plan Regulations, which contain all the rights and obligations of participants and sponsors, the Actuarial Funding Plan, the legal deadlines, the form of pay ment of monthly contributions and benefits, the minimum contribution period and other parameters necessary for actuarial sizing. All Regulations are approved by the internal legal management bodies, by the sponsors and by the federal supervisory and regula tory bodies in accordance with the legislation in force. In accordance with CNPC Resolution No. 30/18, the FBSS Deliberative Council appointed an Administrator Responsible for the Benefit Plan (ARPB). The set of actuarial hypotheses and methods adopted in the calculations resulted from a process of interaction between the external actuarial consultancy, responsible for the actuarial calculations in the case of Benefit Plans structured in the defined be nefit and variable contribution modality, the internal actuaries of the FBSS itself in the case of the benefit plan structured in the defined contribution modality, the Executive Board and the representatives of the Deliberative Council of the Foundation. It also has the approval of the sponsors of the Benefit Plans I and Settled (defined benefit modality), of the FBPREV, FBPREV II and FBPREV III Plans (variable contribution modality) and of the FBPREV CD Plan (defined contribution modality), as determined by CNPC Resolution No. 30/18, Previc Instruction No. 23/23 and Previc Ordinance No. 343/25.
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Financial Statements June 30, 2025 89 (a) Main Assumptions The following main assumptions were prepared based on information in effect on 12/31/2024 and 2023, and are reviewed periodic ally. Pension Plans (% p.y.) Health Plan (% p.y.) (1) Retirement Award Economic Assumptions – 06/30/2025 PBI PBS FBPREV FBPREV II FBPREV III PAM POD PROMED (%p.y.) Real Actuarial Discount Rate 7.23 7.10 7.18 7.07 7.17 7.08 7.08 7.08 7.43 Expected Real Return on Assets 7.23 7.10 7.18 7.07 7.17 7.08 7.08 7.08 7.43 Real Salary Growth Rate for Active Employees 1.75 0.00 2.67 2.67 2.23 According to plan (2) n/a n/a 2.67 Real Growth in Plan Benefits During Receipt 0.30 0.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 Capacity Factor on Benefits 98.00 98.00 98.00 98.00 98.00 98.00 100.00 98.00 n/a Capacity Factor on Salaries 98.00 98.00 98.00 98.00 98.00 98.00 100.00 98.00 100.00 Expected Inflation Rate 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 Nominal Discount Rate 12.14 12.01 12.09 11.97 12.08 11.98 11.98 11.98 12.35 Expected Nominal Return on Assets 12.14 12.01 12.09 11.97 12.08 11.98 11.98 11.98 12.35 Nominal Salary Growth Rate for Active Employees 6.41 4.58 7.37 7.37 6.91 According to plan (2) n/a n/a 7.37 Nominal Growth in Plan Benefits During Receipt 4.89 4.58 4.58 4.58 4.58 4.58 5.63 5.63 4.58 Pension Plans (% p.y.) Health Plan (% p.y.) (1) Retirement Award Economic Assumptions – 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III PAM POD PROMED (%p.y.) Real Actuarial Discount Rate 7.66 7.38 7.56 7.32 7.58 7.44 7.44 7.44 7.74 Expected Real Return on Assets 7.66 7.38 7.56 7.32 7.58 7.44 7.44 7.44 7.74 Real Salary Growth Rate for Active Employees 1.75 0.00 2.67 2.31 2.23 According to plan (2) n/a n/a 2.67 Real Growth in Plan Benefits During Receipt 0.30 0.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 Capacity Factor on Benefits 98.00 98.00 98.00 98.00 98.00 98.00 100.00 100.00 n/a Capacity Factor on Salaries 98.00 98.00 98.00 98.00 98.00 98.00 100.00 100.00 100.00 Expected Inflation Rate 4.96 4.96 4.96 4.96 4.96 4.96 4.96 4.96 4.96 Nominal Discount Rate 13.00 12.71 12.89 12.64 12.92 12.77 12.77 12.77 13.08 Expected Nominal Return on Assets 13.00 12.71 12.89 12.64 12.92 12.77 12.77 12.77 13.08 Nominal Salary Growth Rate for Active Employees 6.80 4.96 7.76 7.38 7.30 According to plan (2) n/a n/a 7.76 Nominal Growth in Plan Benefits During Receipt 5.27 4.96 4.96 4.96 4.96 4.96 6.01 6.01 4.96 (1) Health Plans with post-employment benefits in the Medical-Hospital Assistance Plan (PAM), Dental Plan (POD) and Medication Assistance Program (PROMED). (2) According to the Pension Plan to which the beneficiaries are enrolled.
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Financial Statements June 30, 2025 90 The Demographic Assumptions as of June 30, 2025 remain the same information disclosed on December 31, 2024 as follows: Demographic Assumptions – 12/31/2024 Mortality Table Mortality Table (Disabled) Disability Entry Table Annual Turnover Rate Option for BPD Retirement Entry Family Composition Pension Plans PBI AT – 2000 softned (-10%) gender specific AT-49 by gender Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience PBI 2015- 2023 n/a 100% upon reaching full benefit 75% of participants with beneficiaries and a woman 4 years younger than the man. For retirees and pensioners, effective family, according to registration . PBS AT-2000 (-30%) gender specific RRB – 83 (-50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience Saldado 2015-2023 n/a Probable retirement date stated in the registration 75% of participants with beneficiaries and a woman 4 years younger than the man. For retirees and pensioners, effective family, according to registration FBPREV AT-2000 (-30%) gender specific RRB – 83 (-50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience FBPREV 2015-2023 - 100% in normal retirement according to plan eligibility For retirees and pensioners, effective family, as per registration. FBPREV II AT-2000 (-30%) gender specific RRB-83 (- 50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience FBPREV II 2015-2023 - 100% in normal retirement according to plan eligibility Royal Family, according to registration FBPREV III AT – 2000 softned (-10%) gender specific RRB – 83 (-50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experiência FBPREV III (2019-2023) - 100% in normal retirement according to plan eligibility Royal Family, according to registration Health Plan (1) PAM According to Pension Plans (2) According to Pension Plans(2) According to Pension Plans (2) According to Pension Plans (2) - 100% in normal retirement according to plan eligibility According to Pension Plans (2) POD AT – 2000 Basic (-30%) gender specific RRB – 83 (-50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience FBPREV 2015-2023 - 100% in normal retirement according to plan eligibility Not applicable PROMED AT - 2000 Basic (-30%) gender specific RRB – 83 (-50%) Álvaro Vindas adjusted Exp. FBSS 2019-2023 Experience FBPREV 2015-2023 - 100% in normal retirement according to plan eligibility Not applicable Retirement Award AT – 2000 (-30%) gender specific n/a Alvaro Vindas adjusted Exp. FBSS 2019-2023 Experience FBPREV 2015-2023 - 60 years old and 10 years in the company Not applicable (1) Health Plans with post-employment benefits in the Plans - Medical-Hospital Assistance Plan (PAM), Dental Plan (POD) and Medication Assistance Program (PROMED). (2) According to the Pension Plan to which the beneficiaries are enrolled.
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Financial Statements June 30, 2025 91 The assumptions regarding mortality experience are established based on actuarial experience, adjusted according to the demographic profile of Banrisul's employees. The present value of defined benefit pension plan obligations is obtained through actuarial calculations, which use a set of economic, financial and biometric assumptions. Among the assumptions used in determining the net cost (revenue) for these plans is the discount rate. Any changes in these assumptions will affect the carrying value of the pension plan obligations. Banrisul determines the appropriate discount rate at the end of each period, observing the principles established by CVM Resolution No. 110/22 and CMN Resolution No. 4,877/20, which are used to determine the present value of estimated future cash outflows that should be necessary to settle pension plan obligations. The actual discount rates were determined by interpolating the rates of the IMA-B index, published by ANBIMA, with a reference date of 12/31/2024. In accordance with CNPC Resolution No. 30/18, combined with Previc Resolution No. 23/23 and Previc Ordinance No. 308/24, FBSS prepares studies aimed at establishing the maturity profile of the Benefit Plan obligations by determining the duration and other analyses of the distribution of benefit payments. Other important assumptions for pension plan obligations are based, in part, on current market conditions. (b) Descriptions of Plans and Other Long-Term Benefits Benefit Plan I (PBI) : the benefits provided by this plan, in the defined benefit modality, include retirement, survivor's pension, sickness benefit, imprisonment benefit, funeral benefit and annual bonus. The normal contribution of the active participant corresponds to the collection of percentages of the participation salary. The PBI was closed to new members as of July 2009. Settled Plan (PBS): the benefits provided by this plan, in the defined benefit modality, include a settled retirement benefit, settled disability benefit, survivor's pension, funeral benefit and annual bonus. There will be no normal contribution to the PBS and, when eligible to retire, you will receive a benefit proportional to the time you contributed to the PBI. FBPREV Plan (FBPREV): the benefits provided by this plan, in the variable contribution modality, include normal retirement benefits, early retirement, disability retirement, proportional benefits, sickness benefit, annual bonus, minimum benefit, survivor's pension and funeral assistance. The participant's normal contribution is composed of three installments: • Basic installment: 1% to 3% (0.5% intervals) applied to the contribution salary; • Additional installment: may vary from 1% to 7.5% (0.5% intervals) applied to the portion of the contribution salary that exceeds 9 (nine) reference units; and • Variable installment: percentage applied to the contribution salary, determined annually by the Actuary in the Costing Plan, to cover 50% of the costs of risk benefits and administrative expenses of the plan. In addition to the normal contribution, the participant may make optional contributions, not less than 1 (one) reference unit, not matched by the sponsor. Banrisul contributes equally to the normal contributions of participants. FBPREV II Plan (FBPREV II): the benefits provided by this plan, in the variable contribution modality, include normal retirement benefits, early retirement, disability retirement, proportional benefits, sickness benefit, annual bonus, minimum benefit, survivor's pension and funeral assistance. The participant's normal contribution is composed of three installments: • Basic installment: 3% to 5% applied to the contribution salary;
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Financial Statements June 30, 2025 92 • Additional installment: may vary from 5% to 10% (1% intervals) applied to the portion of the contribution salary that exceeds 9 (nine) reference units; and • Variable installment: percentage applied to the contribution salary, determined annually by the Actuary in the Costing Plan, to cover 50% of the costs of risk benefits and 50% of the plan's administrative expenses calculated at 10% of the total of the other contributions. In addition to the normal contribution, the participant may make optional contributions, not less than 1 (one) reference unit, not matched by the sponsor. Banrisul contributes equally to the normal contributions of the participants. FBPREV III Plan (FBPREV III): the benefits provided by this plan, in the variable contribution modality, include normal retirement benefits, early retirement, disability retirement, proportional benefits, sickness benefit, annual bonus, minimum benefit, survivor's pension and funeral assistance. The participant's normal contribution is composed of three installments: • Basic installment: 3%, 4% or 5% applied to the contribution salary; • Additional installment: may vary from 5% to 10% (1% intervals) applied to the portion of the contribution salary that exceeds 9 (nine) reference units; and • Variable installment: percentage applied to the contribution salary, determined annually by the Actuary in the Costing Plan, to cover 50% of the costs of risk benefits and administrative expenses of the plan. In addition to the normal contribution, the participant may make optional contributions, not less than 1 (one) reference unit, not matched by the sponsor. Banrisul contributes equally to the normal contributions of participants. FBPREV CD Plan (FBPREV CD): the benefits provided by this plan, in the defined contribution modality, include retirement benefits, disability retirement, annual bonus (optional) and survivor's pension. The participant's normal contribution is made up of only one portion: • Basic portion: may vary between 1% and 6% (intervals of 0.50%) applied to the contribution salary. In addition to the basic contribution, the participant may make additional, monthly and optional contributions, of no less than 1% applied to the contribution salary, not matched by the sponsor. Banrisul contributes equally to the participants' basic contributions. Health Plans (PAM, POD and PROMED): Banrisul offers a health plan through Cabergs to its active employees and to retirees through FBSS. Retirement Bonus (Post -Employment Benefit): Banrisul grants its employees a retirement bonus that is paid in full on the date the employee leaves the company due to retirement. (c) Main Actuarial Risks Banrisul and FBSS may jointly conduct asset/liability comparison studies with the aim of seeking operations in the financial capital and insurance markets aimed at reducing or eliminating actuarial risks in the plans. Through its defined benefit plans, Banrisul is exposed to a series of risks, the most significant of which are: Asset Volatility: Plan liabilities are calculated using a discount rate that is established based on the yield of corporate or government bonds in the absence of an active market. If the plan assets do not achieve this yield, this will create a deficit. Brazil’s plans hol d a significant proportion of stocks, which are expected to outperform corporate bonds in the long term, while resulting in volatility and risk in the short term. Change in Bond Yields: A decrease in the yield of corporate or government bonds will result in an increase in the plan’s liabilities, although this change will be partially offset by an increase in the fair value of the bonds held by the plans.
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Financial Statements June 30, 2025 93 Inflation Risk: Some of Banrisul’s pension plan liabilities are linked to inflation, and higher inflation will lead to a higher level of liabilities. It should be noted, however, that in many cases, there are limits to the level of inflation adjustments allowed to protect the plan against extreme rates of inflation. Most plan assets are either unaffected (fixed-rate bonds) or have little correlation (stocks) with inflation, meaning that a rise in inflation will also result in a rise in the deficit. Life Expectancy: Most of the plan's obligations consist of providing lifetime benefits to participants. For this reason, increases in life expectancy will result in an increase in plan obligations. (d) Management of Plan Assets The percentage allocation of assets of the plans in force on 06/30/2025 and 12/31/2024 are as follows: 06/30/2025 Alocattion % Categories PB I PBS FBPREV FBPREV II FBPREV III Health Cash - - 0.01 - - 0.05 Fixed Income 79.90 80.04 77.32 79.60 83.62 98.94 Equity 6.23 4.20 4.18 3.02 4.21 1.01 Real Estate 6.48 3.82 - 1.32 6.69 - Other 7.39 11.94 18.49 16.06 5.48 - Total 100.00 100.00 100.00 100.00 100.00 100.00 12/31/2024 Alocattion % Categories PB I PBS FBPREV FBPREV II FBPREV III Saúde Cash 0.01 - 0.01 - - 0.21 Fixed Income 79.17 76.81 76.18 78.06 83.21 98.44 Equity 7.23 4.77 3.89 3.16 6.28 1.35 Real Estate 6.17 3.71 - 1.32 4.8 - Other 7.42 14.71 19.92 17.46 5.71 - Total 100.00 100.00 100.00 100.00 100.00 100.00 Defined benefit plan assets include Banrisul shares with a fair value of R$ 3,282 (12/31/2024 – R$7,826) and leased properties with a fair value of R$163,762 (12/31/202 4 – R$163,762). (e) Actuarial Valuations The summary of the composition of the net actuarial liabilities/(assets) for the periods ended 06/30/2025 and 12/31/2024, prepared, respectively, based on the actuarial report of 06/30/2025 and 12/31/2024 and in accordance with CPC 33(R1), is shown below: Passivos/(Ativos) registrados no Balanço Patrimonial com benefícios de: 06/30/2024 12/31/2024 Pension Plans PBI 367,253 332,368 PBS 48,334 3,157 FBPREV (6) (2) FBPREV II (72) (68) FBPREV III 24,691 24,639 Health Plans (185,374) (172,947) Retirement Award 129,416 123,321 Total 384,242 310,468
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Financial Statements June 30, 2025 94 The composition of the net actuarial liabilities/(assets) prepared based on the actuarial report of 06/30/2025 and 12/31/2024 and in accordance with CPC 33(R1) is shown below: Balance of net Liabilities/(Assets) – 06/30/2025 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Actuarial Obligations Determined in the Actuarial Valuation 1,125,757 1,283,678 19,163 213,994 316,313 185,374 129,416 Fair Value of Plan Assets (1) (758,504) (1,235,344) (40,341) (292,327) (312,396) (381,326) - Deficit/(Surplus) 367,253 48,334 (21,178) (78,333) 3,917 (195,952) 129,416 Effect of Asset Limit - - 21,172 78,261 - 10,578 - Addicional Liabilities - - - - 20,774 - - Net Actuarial Liabilities/Assets 367,253 48,334 (6) (72) 24,691 (185,374) 129,416 Balance of net Liabilities/(Assets) – 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Actuarial Obligations Determined in the Actuarial Valuation 1,100,961 1,225,918 19,451 201,414 300,802 172,947 123,321 Fair Value of Plan Assets (1) (768,593) (1,222,761) (37,864) (282,121) (310,284) (359,982) - Deficit/(Surplus) 332,368 3,157 (18,413) (80,707) (9,482) (187,035) 123,321 Effect of Asset Limit - - 18,411 80,639 - 14,088 - Addicional Liabilities - - - - 34,121 - - Net Actuarial Liabilities/Assets 332,368 3,157 (2) (68) 24,639 (172,947) 123,321 Result for the Period – 01/01/2025 to 06/30/2025 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Net Cost of Current Services (18) - 101 150 1 748 1,859 Cost of Interest on Actuarial Liabilities 67,302 74,208 1,178 12,146 18,277 10,190 6,409 Expected Return on Plan Assets (47,148) (74,295) (2,413) (17,248) (18,976) (22,983) - Interest on Effect of Asset Limit and Additional Liabilities - - 1,188 5,098 2,204 899 - Total Expense (Income) Recognized in Result for the Year 20,136 (87) 54 146 1,506 (11,146) 8,268 Result for the Period – 01/01/2024 to 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Net Cost of Current Services 26 - 664 106 (14) 1,801 6,614 Cost of Interest on Actuarial Liabilities 113,344 129,566 2,049 20,728 31,348 18,833 13,418 Expected Return on Plan Assets (79,591) (115,802) (3,385) (26,034) (29,286) (32,453) - Interest on Effect of Asset Limit and Additional Liabilities - - 1,295 5,279 695 - - Total Expense (Income) Recognized in Result for the Year 33,779 13,764 623 79 2,743 (11,819) 20,032
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Financial Statements June 30, 2025 95 Other Comprehensive Results (ORA) for the period – 2025 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award (Gains)/Loss on Plan Assets 26,382 10,842 (520) (2,776) (882) 1,639 - (Gains)/Loss on Actuarial Liabilities 12,111 38,956 (824) 10,320 16,529 8,036 2,609 (Gains)/Loss on Effect of Asset Limit and Additional Liabilities - - 1,573 (7,476) (15,551) (4,409) - (Gains)/Loss Recognized in Other Comprehensive Income 38,493 49,798 229 68 96 5,266 2,609 Other Comprehensive Results (ORA) for the period – 2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award (Gains)/Loss on Plan Assets 101,457 29,762 (1,089) (7,962) 2,209 (14,249) - (Gains)/Loss on Actuarial Liabilities (136,446) (235,928) (4,011) (28,542) (45,224) (36,513) (52,799) (Gains)/Loss on Effect of Asset Limit and Additional Liabilities - - 5,141 36,595 33,426 14,088 - (Gains)/Loss Recognized in Other Comprehensive Income (34,989) (206,166) 41 91 (9,589) (36,674) (52,799) Net Actuarial Liabilities/(Assets) of the Plan as of –06/30/2025 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Net Actuarial Liabilities/(Assets) at the End of the Previous Period 332,368 3,157 (2) (68) 24,639 (172,947) 123,321 Expense/(Revenue) Recognized in the Income for the Year 20,136 (87) 54 146 1,506 (11,146) 8,268 (Gains)/Loss Recognized in Comprehensive Income 38,493 49,798 229 68 96 5,266 2,609 Employer Contribution (23,744) (4,534) (287) (218) (1,550) (6,547) - Benefits Paid Directly by the Company - - - - - - (4,782) Net Actuarial Liabilities/(Assets) at End of Current Period 367,253 48,334 (6) (72) 24,691 (185,374) 129,416 Net Actuarial Liabilities/(Assets) of the Plan as of –12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Net Actuarial Liabilities/(Assets) at the End of the Previous Period 376,813 203,355 (2) (63) 34,245 (110,969) 162,215 Expense/(Revenue) Recognized in the Income for the Year 33,779 13,764 623 79 2,743 (11,819) 20,032 (Gains)/Loss Recognized in Comprehensive Income (34,989) (206,166) 41 91 (9,589) (36,674) (52,799) Employer Contribution (43,235) (7,796) (664) (175) (2,760) (13,485) - Benefits Paid Directly by the Company - - - - - - (6,127) Net Actuarial Liabilities/(Assets) at End of Current Period 332,368 3,157 (2) (68) 24,639 (172,947) 123,321
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Financial Statements June 30, 2025 96 Changes in the Fair Value of Plan Assets as of – 06/30/2025 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Fair Value of the Plan Assets as of January 1st (768,593) (1,222,761) (37,864) (282,121) (310,284) (359,982) - Benefits Paid from Plan Assets in the Period 93,035 60,137 1,038 10,255 20,488 - - Contributions from Plan Participants in the Period (38,436) (4,733) (295) (219) (1,192) - - Contributions from the Sponsor in the Period (23,744) (4,534) (287) (218) (1,550) - - Expected Return on Assets (47,148) (74,295) (2,413) (17,248) (18,976) (22,983) - (Gain)/Loss on Fair Value of the Plan Assets 26,382 10,842 (520) (2,776) (882) 1,639 - Fair Value of the Plan Assets at end of Period (758,504) (1,235,344) (40,341) (292,327) (312,396) (381,326) - Changes in the Fair Value of Plan Assets as of – 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Fair Value of the Plan Assets as of January 1st (871,393) (1,241,976) (34,021) (267,653) (317,652) (313,280) - Benefits Paid from Plan Assets in the Period 201,324 121,088 1,990 19,880 39,666 - - Contributions from Plan Participants in the Period (77,155) (8,037) (695) (177) (2,461) - - Contributions from the Sponsor in the Period (43,235) (7,796) (664) (175) (2,760) - - Expected Return on Assets (79,591) (115,802) (3,385) (26,034) (29,286) (32,453) - (Gain)/Loss on Fair Value of the Plan Assets 101,457 29,762 (1,089) (7,962) 2,209 (14,249) - Fair Value of the Plan Assets at end of Period (768,593) (1,222,761) (37,864) (282,121) (310,284) (359,982) - Movement in the Present Value of Bonds as of – 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Present Value of Bonds as of January 1st 1,100,961 1,225,918 19,451 201,414 300,802 172,947 123,321 Net Current Service Cost (18) - 101 150 1 748 1,859 Participant Contributions Made in the Period 38,436 4,733 295 219 1,192 - - Interest on Actuarial Obligation 67,302 74,208 1,178 12,146 18,277 10,190 6,409 Benefits Paid During the Period (93,035) (60,137) (1,038) (10,255) (20,488) (6,547) (4,782) (Gains)/Losses on Actuarial Obligations 12,111 38,956 (824) 10,320 16,529 8,036 2,609 Present Value of Obligations at the End of the Period 1,125,757 1,283,678 19,163 213,994 316,313 185,374 129,416 Movement in the Present Value of Bonds as of – 12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Present Value of Bonds as of January 1st 1,248,206 1,445,331 22,044 228,825 351,897 202,311 162,215 Net Current Service Cost 26 - 664 106 (14) 1,801 6,614 Participant Contributions Made in the Period 77,155 8,037 695 177 2,461 - - Interest on Actuarial Obligation 113,344 129,566 2,049 20,728 31,348 18,832 13,418 Benefits Paid During the Period (201,324) (121,088) (1,990) (19,880) (39,666) (13,484) (6,127) (Gains)/Losses on Actuarial Obligations (136,446) (235,928) (4,011) (28,542) (45,224) (36,513) (52,799) Present Value of Obligations at the End of the Period 1,100,961 1,225,918 19,451 201,414 300,802 172,947 123,321
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Financial Statements June 30, 2025 97 Result of the Year Projected for the Next Period PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Net Cost of Current Services 8 - 249 (387) (14) 812 1,845 Cost of Interest on Actuarial Liabilities 62,368 71,295 1,062 11,852 17,444 10,691 6,061 Expected Return on Plan Assets (42,175) (68,781) (2,325) (16,478) (17,301) (22,850) - Interest on Effect of Asset Limit and Additional Liabilities - - 1,279 4,686 1,255 633 - Estimated Actuarial Expense (Income) 20,201 2,514 265 (327) 1,384 (10,714) 7,906 Estimated Cash Flow for the Next Period PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award Contributions Paid by the Sponsor 23,744 5,227 160 598 1,445 7,163 - Contributions Paid by Plan Participants 38,436 5,227 160 598 1,445 - - Benefits Paid on Plan Assets 93,035 66,529 1,066 10,265 20,419 7,163 - Benefits Paid Directly by the Sponsor - - - - - - 28,310 Benefit payment estimates for the next 10 years are shown below: Maturity Profile of the Present Value of the Liability PBI PBS FBPREV FBPREV II FBPREV III Health Plans Retirement Award 2025 110,436 66,529 1,066 10,265 20,419 7,163 28,310 2026 207,429 129,119 1,964 18,730 37,991 13,886 33,242 2027 202,024 127,570 1,960 18,580 36,841 14,167 9,669 2028 195,201 125,604 1,920 18,363 35,643 14,387 8,845 2029 190,012 123,564 1,896 18,174 34,415 14,631 10,579 2030 to 2034 836,029 581,905 9,307 87,271 152,534 73,189 19,836 The weighted average duration of the present value of the obligation is shown below: Health Plans Duration (in years) PBI PBS FBPREV FBPREV II FBPREV III PAM POD PROMED Retirement Award 06/30/2025 6.90 8.76 7.50 9.17 7.55 According to Pension Plans (1) 8.62 10.65 5.25 12/31/2024 7.43 9.36 8.18 9.88 8.08 According to Pension Plans (1) 9.21 11.54 5.83 (1) According to the Pension Plan to which the beneficiaries are registered. Other data about the plans are shown below: Health Plans Number of Participants –12/31/2024 PBI PBS FBPREV FBPREV II FBPREV III PAM POD PROMED Retirement Award Active 109 295 4,801 2,420 94 1,327 283 7,022 9,360 Assisted 2,839 2,562 121 2,310 1,460 7,295 - - - Inactives - - - - - - 2,991 6,481 - Total 2,948 2,857 4,922 4,730 1,554 8,622 3,274 13,503 9,360
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Financial Statements June 30, 2025 98 Health Plans Number of Participants – 12/31/2023 PBI PBS FBPREV FBPREV II FBPREV III PAM POD PROMED Retirement Award Active 114 318 4,897 2,526 102 1,437 312 7,186 9,138 Assisted 2,884 2,559 106 2,237 1,469 7,366 - - - Inactives - - - - - - 3,082 6,556 - Total 2,998 2,877 5,003 4,763 1,571 8,803 3,394 13,742 9,138
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Financial Statements March 31, 2025 99 (f) Sensitivity Analysis The assumptions adopted for the actuarial calculation of the defined benefit plan have a significant effect on the amounts disclosed. The impact on the calculation of benefits considering the change in the assumptions made is presented below, highlighting the impact of the effect of the present value of actuarial obligations (VPOA). PBI Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p. (35,081) Discount Rate Decrease of 0.5 p.p. 37,349 Mortality Table Increase of 10% (26,779) Mortality Table Decrease of 10% 29,191 PBS Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p. (50,051) Discount Rate Decrease of 0.5 p.p. 53,983 Mortality Table Increase of 10% (31,267) Mortality Table Decrease of 10% 34,840 FBPREV Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p. (663) Discount Rate Decrease of 0.5 p.p. 710 Mortality Table Increase of 10% (936) Mortality Table Decrease of 10% 943 FBPREV II Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p.. (8,420) Discount Rate Decrease of 0.5 p.p. 9,118 Mortality Table Increase of 10% (2,683) Mortality Table Decrease of 10% 3,026 FBPREV III Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p. (10,277) Discount Rate Decrease of 0.5 p.p.. 10,992 Mortality Table Increase of 10% (7,612) Mortality Table Decrease of 10% 8,306 Health Plans Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p.. (7,824) Discount Rate Decrease of 0.5 p.p. 8,560 Mortality Table Increase of 10% (3,913) Mortality Table Decrease of 10% 4,367 Retirement Award Impact Assumption Description Sensitivity Analysis Effect on VPOA Discount Rate Increase of 0.5 p.p. (3,134) Discount Rate Decrease of 0.5 p.p.. 3,382 Mortality Table Increase of 10% (234) Mortality Table Decrease of 10% 235
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Financial Statements March 31, 2025 100 Note 34 – Commitments and Other Relevant Information (a) Rio Grande do Sul State On April 22, 2004, State Law No. 12,069 was enacted, as amended by Law No. 14,738/15, by which Banrisul must make available to the State of Rio Grande do Sul up to 95% of the value of judicial deposits collected in which the litigating parties are not the State or the Municipalities. The unavailable portion of the judicial deposits collected will constitute the Reserve Fund intended to guarantee the restitution of said deposits. The balance of said collected resources, updated by the same rules as the savings account, in accordance with Law No. 12,703/12; article 11, §1, of Law No. 9,289/96; an d Article 12 of Law No. 8,177/91, totaled R$15, 940,832 on the reporting date, of which R$9,895,835 were transferred to the State upon its request. The remaining balance, which constitutes the availability of the Reserve Fund, is recorded under the item Judicial and Administrative Deposits. Since January 2018, no new amounts have been transferred to the State until qualification, as determined by current legislation. (b) Funds and Managed Portfolios The Banrisul Group manages several funds and portfolios, which have the following net assets: Parent and Consolidated 06/30/2025 Investment Funds (1) 19,863,959 Feeder Funds 57,146 Equity Funds 127,097 Individual Retirement Programmed Funds 10,021 Fund to Guarantee the Liquidity of Rio Grande do Sul State Debt Securities 14,974,433 Managed Portfolios 483,719 Total 35,516,375 (1) The investments fund portfolios consist primarily of fixed -rate and variable rate securities, and their carrying amounts already reflect fair value adjustments at the balance sheet date. (c) Banrisul Consórcios The subsidiary Banrisul S.A. Administradora de Consórcios is responsible, on the reporting date, for the administration of 13 8 buyers’ consortium for the acquisition of real estate, vehicles and services that bring together 78,643 active consortium members. Note 35 – Transactions with Related Parties Account balances related to transactions between Banrisul's consolidated companies are eliminated in the consolidated financial statements and also consider the absence of risk. Regarding transactions carried out with the State of Rio Grande do Sul and its controlled entities, either fully or shared, Banrisul opted for the partial exemption granted by CMN Resolution No. 4,818/20. In this case, only the most significant transactions are disclosed. (a) Related Parties • State of Rio Grande do Sul: on June 17, 2016, Banrisul signed a contract with the State of Rio Grande do Sul, with its direct, autonomous and foundational administration, for the assignment of payroll - related services through the onerous granting of exclus ive rights. The purpose of the contract is to centralize and process credits from 100% of the payroll generated by the State of Rio Grande do Sul, deposited in a bank account held by the employee or beneficiary with Banrisul for the crediting of salaries a nd wages of employees, civil servants and military personnel, as well as the crediting of benefits and income granted to retirees and pensioners by the State's Own Pension Scheme, without prejudice to the employees' rights to portability. The contract was signed for a period of ten years, with a price of R$1,250,638, paid on June 20, 2016. The contract also provides that Banrisul will not be entitled to remuneration for the provision of services and for any related banking services, such as bank fees.
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Financial Statements March 31, 2025 101 The contract provides for a price adjustment at the end of the 61st (sixty -first) month of validity, based on the variation in the SELIC rate and inflation projections. Therefore, the price adjustment calculation was performed by Banrisul's technical department and validated by an independent external advisory firm. The amount of the adjustment determined, as defined in the contract, was R$48,781, which is being deferred for the remainder of the contract term. This amount was paid to the State of Rio Grande do Sul on July 23, 2021, after the completion of the formalization of the addendum to the contract; • Companies controlled by the State of Rio Grande do Sul: Rio Grande do Sul Supply Centers S.A. (CEASA), Rio Grande do Sul Mining Company (CRM), Rio Grande do Sul State Data Processing Company (PROCERGS) and BADESUL Development S.A. - Development Agency/RS; • Banrisul Associates: o Bem Promotora de Vendas e Serviços S.A., engaged in payroll loan origination, o Banrisul Icatu Participações S.A. (BIPAR), holding company owning 100% of Rio Grande Seguros e Previdência S.A., a life and pension insurance company, and Rio Grande Capitalização; • Fundação Banrisul de Seguridade Social (FBSS), closed supplementary pension entity that manages the pension plans sponsored by Banrisul and/or its subsidiaries; • Caixa de Assistência dos Empregados do Banco do Estado do Rio Grande do Sul (Cabergs) is a non -profit assistance association, regulated by private law; and • Investment Funds and Managed Portfolios, managed by Banrisul. The main transactions with related parties are shown below: Parent Company Assets (Liabilities) Income (Expense) 06/30/2025 01/01 to 06/30/2025 State of Rio Grande do Sul Government (15,299,495) (958,245) Other Assets 5,032 - Demand Deposits (287,057) - Repurchase Agreements (Repos) (1) (14,974,433) (958,245) Other Financial Liabilities at Amortized Cost (10,196) - Other Liabilities (32,841) - Subsidiaries and Investment Fund (2,842,963) (50,026) Other Financial Assets 11,304 65,068 Other Assets 20,150 11,004 Demand Deposits (9,857) - Time Deposits (1,010,863) (61,521) Repurchase Agreements (Repos) (117,073) (6,502) Recursos de Aceites e Emissão de Títulos (795,123) (52,259) Other Financial Liabilities at Amortized Cost (2) (940,671) - Other Liabilities (830) (5,816) Fundação Banrisul de Seguridade Social (75,416) - Other Financial Liabilities at Amortized Cost (75,317) - Other Liabilities (99) - Total (18,217,874) (1,008,271) Consolidated Assets (Liabilities) Income (Expense) 06/30/2025 01/01 to 06/30/2025 State of Rio Grande do Sul Government (15,299,495) (958,245) Other Assets 5,032 - Demand Deposits (287,057) - Repurchase Agreements (Repos) (1) (14,974,433) (958,245) Other Financial Liabilities at Amortized Cost (10,196) - Other Liabilities (32,841) - Fundação Banrisul de Seguridade Social (75,416) - Other Financial Liabilities at Amortized Cost (75,317) - Other Liabilities (99) - Total (15,374,911) (958,245) (1) These funds bear interest at 100% of the Selic rate. (2) Includes financial leasing contracts worth R$85,513 (3) These mainly refer to receivables related to Banricompras and Visa and Mastercard cards issued by Banrisul.
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Financial Statements March 31, 2025 102 (b) Management Compensation Annually, at the Ordinary General Meeting, the overall annual amount of remuneration for the Administration is set, consisting of the Board of Directors, Board of Directors, Fiscal Council, Audit Committee, Remuneration Committee, Risk Committee and Social, Environmental and Climate Responsibility Committee, as determined by the Bylaws. Parent and Consolidated 01/01 to 06/30/2025 Short Term Benefits 12,351 Salaries 9,618 Social Security 2,733 Post-Employment Benefits 502 Supplementary Pension Plans(1) 502 Total 12,853 Banrisul does not have long -term benefits, severance pay or stock -based compensation for key management personnel. Banrisul has civil liability insurance for directors and board members, and an insurance premium of R$2,000 being paid on April 28, 2025. (c) Shareholding As of the reporting date, the members of the Board of Directors, the Board of Directors, the Fiscal Council, the Audit Committee, the Compensation Committee, the Risk Committee and the Social, Environmental and Climate Responsibility Committee jointly hold a shareholding in Banrisul totaling 10,422 shares, as per Note 25a. Note 36 – Other Information a) Non-Recurring Result Banrisul considers non -recurring results to be results that are not related or are incidentally related to the institution's typical activities and are not expected to occur frequently in future financial years. Up to the reporting date, there were no events treated as non-recurring. Note 37 – Subsequent Event Issuance of Financial Notes On July 14, 2025, at a meeting of Banrisul's Board of Directors, the terms and conditions for the third issuance of Subordinated Financial Notes (LFSN) in the amount of R$700,000 were approved. Two thousand LFSNs were issued with a unit face value of R$350 , yielding CDI + 1.65 p.y.. The maturity term is ten years, with redemption possible starting in the fifth year.
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Banco do Estado do Rio Grande do Sul S.A. Individual and Consolidated Financial Statements for the Semester Ended June 30, 2025 and Independent Auditor’s Report Deloitte Touche Tohmatsu Auditores Independentes Ltda. (Convenience Translation into English from the Original Previously Issued in Portuguese)
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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide make an impact that matters at www.deloitte.com. © 2025. For information, contact Deloitte Global. Deloitte Touche Tohmatsu Av. Carlos Gomes, 222 - 2º andar - Boa Vista - 90480-000 - Porto Alegre - RS Brazil Tel.: + 55 (51) 3327-8800 Fax: + 55 (51) 3328-3031 www.deloitte.com.br (Convenience Translation into English from the Original Previously Issued in Portuguese) INDEPENDENT AUDITOR’S REPORT ON INDIVIDUAL AND CONSOLIDATED FINANCIAL INFORMATION To the Board of Directors, Management and Shareholders of Banco do Estado do Rio Grande do Sul S.A. Porto Alegre - RS Opinion We have audited the accompanying individual and consolidated financial statements of Banco do Estado do Rio Grande do Sul S.A. and its subsidiaries (“Bank”), identified as Parent Company and Consolidated, respectively, which comprise the individual and consolidated balance sheets as at June 30, 2025 and the related individual and consolidated statements of income, of comprehensive income, of changes in equity and of individual and consolidated cash flows for the semester then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the individual and consolidated financial statements of Banco do Estado do Rio Grande do Sul S.A. and its subsidiaries as of June 30, 2025, have been prepared, in all material respects, in accordance with accounting practices adopted in Brazil applicable to financial institutions authorized to operate by the Central Bank of Brazil (BCB). Basis for opinion We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the individual and consolidated financial statements” section of our report. We are independent of the Bank in accordance with the relevant ethical requirements set out in the Code of Ethics for Professional Accountants and the professional standards issued by the Brazilian Federal Accounting Council (CFC), applicable to the audit of financial statements of public interest entities in Brazil. We also have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter - Comparative Information We draw attention to note No. 2 to the individual and consolidated financial statements, which describes that these financial statements were prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the BCB, considering the exemption from presenting comparative figures for prior periods in the financial statements for the semester ended June 30, 2025, as provided for in Resolution No. 4,966 of the National Monetary Council (CMN) and Resolution No. 352 of BCB. Our opinion is not modified in respect of this matter.
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© 2025. For information, contact Deloitte Global. 2 Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current semester. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 1. Provision for Expected Loss Associated with Credit Risk Effective January 1, 2025, Resolution No. 4,966 of the National Monetary Council (CMN) came into effect, replacing Resolution No. 2,682 of the Central Bank of Brazil (BCB). This resolution establishes new requirements for classification, measurement, recognition, and write-off of financial instruments, in addition to defining guidelines for establishing a provision for expected loss associated with credit risk. The recognition of a Provision for Expected Loss Associated with Credit Risk involves a degree of judgment and the use of estimates by the Bank’s Management. As disclosed in notes 3.c., 4.c., and 10.d. to the individual and consolidated financial statements, the Bank has developed internal models to estimate the expect loss associate with credit risk, as required by the Resolution, with a view to estimating loan and finance lease losses over a given time horizon. This includes an assessment of the PD (Probability of Default), LGD (Loss Given Default), and EAD (Exposure at Default) parameters. For this purpose, the Bank uses internal models to consider all available historical data and possible loss scenarios, involving Management's assumptions and judgments, in order to represent its best estimate of the expected losses risk underlying its portfolio of loan and finance leases. The provision for expected loss associated with credit risk was considered a key audit matter due to the materiality of financial assets related to loan and financial leasing operations, the use of internal models and the fact that it involves judgment and determination of assumptions by Management in determining the provisions that are constituted. How was the matter addressed in our audit? Our audit procedures included, among others: (a) understanding the allowance recognition criteria adopted by the Bank for loan and financial leasing transactions, with involvement of our specialists to evaluate the adherence to the requirements of Resolution No. 4,966/2021 of CMN; (b) understanding the design and implementation of relevant internal controls over the measurement process for the provision for expected credit loss associated with credit risk; (c) reviewing and challenging the models adopted by Management for measuring the expected loss, including the allocation of the expanded loan portfolio into stages as required by Resolution No. 4,966/2021 based on sampling, with the involvement of senior members of our team and our credit risk specialists; (d) analyzing the provisioning level for losses on loan transactions; and (e) assessing the disclosures made in the individual and consolidated financial statements in accordance with applicable accounting pronouncements. We considered the criteria and assumptions adopted by Management to estimate the provision for expected loss associated with credit risk are acceptable in the context of the individual and consolidated financial statements taken as a whole. 2. Information technology environment The Bank’s operations depend on an IT and infrastructure environment capable of supporting a high volume of transactions processed daily in its legacy information systems that provide input to its accounting records. The information technology-related processes, associated with its controls, may pose risks in the processing and generation of critical information, including the critical information used in the preparation of financial statements, justifying our consideration as a key audit matter due to its materiality in the context of the individual and consolidated financial statements.
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© 2025. For information, contact Deloitte Global. 3 How was the matter addressed in our audit? Drawing on the support of our system audit specialists, we identified the significant systems supporting the Bank’s key business activities, assessed the design of the general controls over the processing environment and tested the operating effectiveness of these controls, including, when applicable, the tests of compensatory controls over information security, development and maintenance of significant systems and the IT environment operations concerning the infrastructure that supports the Bank’s business. The evaluation of the information technology environment’s processes and controls, associated with the testing procedures previously mentioned, allowed us to consider the information obtained from certain systems acceptable to plan the nature, timing and extent of our substantive procedures as appropriate in the context of the individual and consolidated financial statements taken as a whole. Other matters Consolidated financial statements The consolidated financial statements for the semester ended June 30, 2025, prepared in accordance with the accounting practices adopted in Brazil, applicable to financial institutions authorized to operate by BCB, are being disclosed in addition, as predicted by Article No. 77 of CMN Resolution No. 4,966, to the consolidated financial statements prepared in accordance with international accounting standards IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, and were presented separately by Banco do Estado do Rio Grande do Sul S.A., on which we issued an unmodified opinion thereon dated August 11, 2025. Statements of value added The individual and consolidated statements of value added (DVA) for the semester ended June 30, 2025, prepared under the responsibility of the Bank’s Management, which presentation is not required by the accounting practices adopted in Brazil applicable to financial institutions authorized to operate by BCB, were subject to audit procedures performed together with the audit of the Bank’s individual and consolidated financial statements. In forming our opinion, we assess whether these individual and consolidated statements of value added are reconciled with the financial statements and accounting records, as applicable, and whether their form and content are in accordance with the criteria set out in technical pronouncement CPC 09 - Statement of Value Added. In our opinion, these statements of value added were appropriately prepared, in all material respects, in accordance with the criteria set out in such technical pronouncement and are consistent in relation to the individual and consolidated financial statements taken as a whole. Other information accompanying the individual and consolidated financial statements and the independent auditor’s report Management is responsible for the other information. The other information comprises the Management Report. Our opinion on the individual and consolidated financial statements does not include the Management Report and we do not express any form of audit conclusion thereon. In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, to consider whether this report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement in the Management Report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and those charged with governance for the individual and consolidated financial statements Management is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance with accounting practices adopted in Brazil applicable to financial institutions authorized to operate by BCB, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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© 2025. For information, contact Deloitte Global. 4 In preparing the individual and consolidated financial statements, Management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Bank’s financial reporting process. Auditor’s responsibilities for the audit of the individual and consolidated financial statements Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Brazilian and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the individual and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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© 2025. For information, contact Deloitte Global. 5 50123FTA We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and matters that may reasonably be thought to bear on our independence, and, when applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the individual and consolidated financial statements of the current semester and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Convenience translation The accompanying individual and consolidated financial statements have been translated into English for the convenience of readers outside Brazil. Porto Alegre, August 11, 2025 DELOITTE TOUCHE TOHMATSU João Paulo Stellfeld Passos Auditores Independentes Ltda. Engagement Partner
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103 BANCO DO ESTADO DO RIO GRANDE DO SUL S.A. Executive Board FERNANDO GUERREIRO DE LEMOS Chief Executive Officer LUIZ GONZAGA VERAS MOTA Deputy CEO CARLOS ALUISIO VAZ MALAFAIA ELIZABETE REJANE SODRÉ TAVARES FERNANDO POSTAL IRANY DE OLIVEIRA SANT’ANNA JUNIOR IVANOR ANTONIO DURANTI MÁRCIA ADRIANA CELESTINO Officers Board of Directors ITANIELSON DANTAS SILVEIRA CRUZ Chairman FERNANDO GUERREIRO DE LEMOS Vice Chairman ADRIANO CIVES SEABRA EDUARDO CUNHA DA COSTA EDUARDO JUNIOR DE MATOS LEWANDOWSKI JORGE LUIS TONETTO JULIO CESAR LOPES ABRANTES LUIZ GONZAGA VERAS MOTA MARCIA ADRIANA CELESTINO RAMIRO SILVEIRA SEVERO URBANO SCHMITT Board Members WERNER KÖHLER Accountant CRC RS 38,534
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