Banco do Estado do Rio Grande do Sul S A : Financial Statements 4Q22 BRGAAP

INDEX
CEO MESSAGE	3
PRESS RELEASE	4
ANALYSYS OF PERFORMANCE	11
MANAGEMENT REPORT	31
FINANCIAL STATEMENTS	55
NOTES TO THE FINANCIAL STATEMENTS	62

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CEO Message		December 2022

CEO Message

Banrisul transforms, brings opportunities, helps overcome challenges and encourages sustainable practices. In 2022, we strengthened this positioning, based on a rebranding process, which modernized our brand and presented a new concept. And more than just a marketing strategy, we evolve in concrete actions, always focusing on the pillar that sustains us: our people.

The concept "Our connection transforms" is true. As a financial agent focused on the development of Rio Grande do Sul, we fulfill our commitment to Rio Grande do Sul society day after day. We overcome adversities with a solid and profitable posture, without losing sight of innovation and competitiveness.

For Banrisul, being connected means understanding what society needs and when it needs it most. In pursuit of this assertiveness, we have improved our governance, so that the Institution's human capital has full conditions to exercise its role. We conducted the restructuring of the Human Resources area, promoted two Voluntary Retirement Programs and held a public tender, which contributed to the renewal of our team of employees.

Close to completing 95 years of history, the Bank is committed to consolidating a Strategic Sustainability Agenda, emphasizing the social, environmental and climate agenda. We are following this path with important advances and transformations, attentive to changes in consumer relations and the new reality of the economy. A major milestone is the 100% renewable energy consumption through the free energy market and our energy transition in the first 100 branches. This mission will continue from a second public notice, to contemplate the entirety of our structure.

Alongside the largest financial institutions in the country, Banrisul is already considered carbon neutral in terms of direct emissions and energy consumption. By joining the Brazilian GHG Protocol Program, we were able to map our greenhouse gas (GHG) emissions for the years 2021 and 2022 and, in this last year, we won the Gold Seal - awarded after carrying out a complete inventory and audited by a third party - confirming our commitment.

In terms of credit, one of the highlights of our portfolio was agribusiness and we serve, with the same dedication, from family farmers to corporate producers. Agriculture already represents an important segment of the economy in the Bank's portfolio and, therefore, we have consolidated seven Agro Spaces in the countryside of Rio Grande do Sul. In the Safra 2022/2023 Plan, we operated with record credit availability - R$7 billion.

In the area of innovation, we are proud of the reach achieved by BanriTech, our Startup Acceleration Program. In 2022, we concluded our second cycle, with the participation of 30 companies from different regions of Brazil. Our infrastructure has become one of the most modern in the market, with the inauguration of a new Data Center. We also advanced in the use of digital channels and launched, along with 40 partners, our e-commerce, BanriShopping.

Our results reflect this effort to create a new culture. A necessary culture to overcome the challenges of these new times. With great pride, we can say that we fulfilled the purpose of this cycle, to encourage sustainable development, facilitate access to our more than 4 million customers and bring the Institution closer to young people, those who are starting their professional and academic careers. Respecting history and opening doors to the future: this is the path we seek to follow, with the certainty that everything changes all the time, except our connection.

Cláudio Coutinho

CEO

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PRESS RELEASE

We summarize below Banrisul's performance in the fourth quarter and full year of 2022.

Business Scenario

In the Brazilian economic scenario, we highlight the boost in inflation indicators because of the rise in commodity prices, bottlenecks in global production chains, and the resumption of services and jobs, which made the Central Bank take firm actions and increase the interest rate to 13.75% in mid-August. However, the decrease in taxes on fuel, electricity, and telecommunications, and the change to the green flag in electricity after the water shortage contained an even worse inflationary scenario, leading the monetary authority to maintain the Selic rate at that the same level until the end of 2022. In terms of loans, the average balance in Brazil increased by 16.3% in 2022, while the average default rate in this period was 2.99%, representing an upward trend. In Rio Grande do Sul these rates soared 17.5% with delinquency rate of 2.09%. Highlighting the 18.6% increase in the individual portfolio and agricultural credit, wherein the Rio Grande do Sul state accounted for 15% of Brazil's total in contracted amounts.

On May 23, 2022, Banrisul launched its re-branding project, with a new positioning and brand under the concept: "Nossa conexão transforma" (Our connection transforms), which refers to a more inclusive, human, and connected Bank. Bah, Banrisul's first intelligent virtual assistant was implemented in 2022 and is under training, and will allow for an improved customer journey regarding the use of digital channels, which translates into convenience and security.

Aiming to boost Rio Grande do Sul's innovation ecosystem, in April 2022, we held the 2nd startup acceleration cycle, promoted by BanriTech. To monitor the activities of these startups, we selected volunteer professionals within the Bank to act as facilitators and supporters. This interaction also promotes an innovation culture among our business units, in which preference is given to implementing new work methodologies and improving Banrisul's processes, products, and services. Banrisul's Innovation Week, aimed at employees, was held in October to celebrate the end of the BanriTech Program.

Attentive to the mitigation of Greenhouse Gases, Banrisul has been reinforcing the inclusion of sustainability criteria in its hiring processes and in the products and services it offers, fostering the transition into a low- carbon economy. In 2022, the Bank prepared its Second Greenhouse Gas Inventory that was certified with the Gold Seal, the Brazilian GHG Protocol Program's highest certification. The year also marked the beginning of the implementation of the energy consumption migration project to 100% renewable sources, starting with 100 agencies joining the Free Energy Market, which is expected to be completed by 2023.

In agribusiness, Banrisul announced R$7.0 billion for the 2022/2023 crop plan, an increase of 34.6% over the previous crop year. The plan is expected to benefit more than 50,000 rural producers, reinforcing the Bank's strategic focus and consolidating its position as a promoter for the sector and the economic development of Rio Grande do Sul.

In 2022, Banrisul created the Voluntary Separation Program, with the adhesion of 511 employees. The financial investment totaled R$119.8 million in the third quarter of 2022, and the dismissals will take place from April 1 to August 31, 2023, except for employees working in the Information Technology Department, who may be gradually dismissed until August 31, 2024. To replace the vacancies and bring new talents to the Bank, Banrisul held a public selection process for 274 positions in the IT areas, as well as a selection process to fill out the Bank's general openings, with an expectation to hire up to 1,335 new employees.

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Economic and Financial Indicators

Main Income Statement Accounts - R$ million		2022		2021		4Q2022		3Q2022	4Q2021	2022/	4Q2022/	4Q2022/
				2021	4Q2021	3Q2022
Financial Margin		4,668.8		4,845.6		1,280.4		1,151.5	1,173.3	-3.6%	9.1%	11.2%
Expenses for Provisions for Expected Loan Losses		968.7		787.8		282.0		237.9	155.7	23.0%	81.1%	18.5%
Income from Services and Bank Fees		2,083.5		1,972.2		550.6		522.0	515.6	5.6%	6.8%	5.5%
Adjusted Administrative Expenses (1)		3,911.8		3,665.7		1,004.0		1,027.8	976.5	6.7%	2.8%	-2.3%
Other Revenues / Expenses		70.8		(20.1)		29.5		(35.3)	(18.5)	452.6%	-259.1%	-183.5%
Civil, Tax, and Labor Provisions (2)		(661.5)		(490.6)		(81.0)		(103.0)	(62.4)	34.8%	29.9%	-21.4%
Adjusted Net Income		780.8		990.4		251.1		137.8	258.0	-21.2%	-2.7%	82.1%
Net Income		714.9		948.5		251.1		71.9	247.8	-24.6%	1.3%	249.0%
Main Balance Sheet Accounts - R$ Million		Dec 2022		Dec 2021		Sep 2022			Dec 2022/	Dec 2022/
					Dec 2021	Sep 2022
Total Assets		113,166.2		105,367.1	114,298.0			7.4%	-1.0%
Securities (3)		31,559.5		35,819.4	31,474.6			-11.9%	0.3%
Total Loan Portfolio		49,121.9		41,042.0	47,440.6			19.7%	3.5%
Provision for Loan Losses		2,439.8		2,629.8	2,442.8			-7.2%	-0.1%
Past Due Loans > 90 Days		777.9		849.2	751.8			-8.4%	3.5%
Funds Raised and Under Management		87,922.6		84,900.0	86,984.9			3.6%	1.1%
Equity		9,420.1		9,048.6	9,009.7			4.1%	4.6%
Prudential Conglomerate Reference Equity		9,291.8		9,021.8	8,595.6			3.0%	8.1%
Stock Market Information - R$ Million		2022		2021		4Q2022		3Q2022	4Q2021	2022/	4Q2022/	4Q2022/
				2021	4Q2021	3Q2022
Interest on Equity / Dividends (4)		360.3		382.2		24.8		45.0	58.7	-5.7%	-57.7%	-44.8%
Market Capitalization		3,967.1		3,946.6		3,967.1		4,805.5	3,946.6	0.5%	0.5%	-17.4%
Book Value per Share		23.03		22.13		23.03		22.03	22.13	4.1%	4.1%	4.6%
Average Price per Share (R$)		10.22		12.23		10.76		10.57	10.71	-16.4%	0.5%	1.8%
Earnings per Share (R$)		1.75		2.32		0.61		0.18	0.61	-24.6%	1.3%	249.0%
Financial Indexes		2022		2021		4Q2022		3Q2022	4Q2021
Adjusted ROAA (p.a.) (5)		0.7%		1.0%		0.9%		0.5%	1.0%
Adjusted ROAE (p.a.) (6)		8.5%		11.4%		10.9%		6.1%	11.6%
Adjusted Efficiency Ratio (7)		63.5%		58.1%		63.5%		64.8%	58.1%
Interest Margin on Interest-Earning Assets		4.85%		5.54%		5.13%		4.66%	5.08%
Default Rate > 90 days (8)		1.58%		2.07%		1.58%		1.58%	2.07%
Coverage Ratio 90 days (9)		313.6%		309.7%		313.6%		324.9%	309.7%
Provisioning Index (10)		5.0%		6.4%		5.0%		5.1%	6.4%
Basel Ratio (Prudential Conglomerate)		17.6%		18.4%		17.6%		16.7%	18.4%
Structural Indicators		Dec 2022		Dec 2021		Sep 2022
Branches		495	497		495
Service Stations		131	138		142
Electronic Service Stations		437	427		435
Employees		8,658		9,002		8,730
Economic Indicators		2022		2021		4Q2022		3Q2022	4Q2021
Effective Selic Rate		12.39%		4.42%		3.20%		3.31%	1.85%
Exchange Rate Variation (%)		-6.50%		7.39%		-3.49%		3.22%	2.59%
IGP-M (General Market Price Index)		5.46%		17.79%		-1.08%		-1.44%	1.54%
IPCA (Extended Consumer Price Index)		5.78%		10.06%		1.63%		-1.32%	2.96%

1. Includes adjusted personnel expenses and other administrative expenses. (2) Adjusted for the provision for tax contingencies in 2Q2021. (3) Includes derivatives, interbank, deposits, and cash equivalents and deduces repurchase obligations. (4) Interest on equity and dividends paid credited and/or provisioned (before retention of income tax). (5) Net income over average total assets. (6) Net income over average shareholders' equity. (7) Personnel expenses + other administrative expenses / financial margin + income from services and fees + (other income - other expenses - civil, tax, and labor expenses). Considers LTM income and expenses. (8) Past due loans > 90 days / loan portfolio. (9) Provisions for expected loan losses / past due loans > 90 days. (10) Provisions for expected loan losses / loan portfolio.

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