Banco do Estado do Rio Grande do Sul S A : Financial Statements 1Q23 IFRS

(Convenience Translation into English from the Original Previously Issued in Portuguese)

Banco do Estado do Rio Grande do Sul S.A.

Consolidated Interim Financial Statements in IFRS for the Three -month

Period Ended March 31, 2023 and Independent Auditor's Report

Deloitte Touche Tohmatsu Auditores Independentes Ltda.

Deloitte Touche Tohmatsu Av. Carlos Gomes, 222 - 2º andar - Boa Vista -

90480-000 - Porto Alegre - RS Brasil

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)

REPORT ON REVIEW OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS

To the Board of Directors, Management and Shareholders of

Banco do Estado do Rio Grande do Sul S.A.

Introduction

We have reviewed the accompanying consolidated interim financial statements of Banco do Estado do Rio Grande do Sul S.A. ("Bank"), which comprises the balance sheet as at March 31, 2023, and the related statements of income, of comprehensive income, of changes in equity and of cash flows for the three- month period then ended, including the explanatory notes.

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB. Our responsibility is to express a conclusion on these consolidated interim financial statements based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Review of Interim Financial Statements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the consolidated interim financial statements

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance with IAS 34 - Interim Financial Reporting, issued by the IASB.

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© 2022. For information, contact Deloitte Global.

Other matters

Consolidated statements of value added

The consolidated interim financial statements referred to above include the consolidated statements of value added - DVA for the three-month period ended March 31, 2023, prepared under the responsibility of the Bank's Management, and disclosed as supplemental information for purposes of IAS 34. These statements were subject to review procedures performed together with the review of the consolidated interim financial statements to reach a conclusion on whether they are reconciled with the consolidated interim financial statements and accounting records, as applicable, and whether their form and content are consistent with the criteria set out in technical pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that these statements of value added are not fairly presented, in all material respects, in accordance with the criteria set out in technical pronouncement CPC 09 and consistently with the accompanying consolidated interim financial statements taken as a whole.

The accompanying consolidated interim financial statements have been translated into English for the convenience of readers outside Brazil.

Porto Alegre, May 9, 2023

DELOITTE TOUCHE TOHMATSU	Carlos Claro
Auditores Independentes Ltda.	Engagement Partner

© 2023. For information, contact Deloitte Global.

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FINANCIAL STATEMENTS

UNDER IFRS

M a r c h 2023

INDEX	2
FINANCIAL STATEMENTS	20
CONSOLIDATED INCOME STATEMENT	22
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	23
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	24
CONSOLIDATED STATEMENT OF CASH FLOWS	25
STATEMENT OF ADDED VALUE	26
NOTES TO THE FINANCIAL STATEMENTS	27
NOTE 01 - GENERAL INFORMATION	27
NOTE 02 - PRESENTATION ON CONSOLIDATED INTERIM FINANCIAL STATEMENTS	27
NOTE 03 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	29
NOTE 04 - ESTIMATES AND CRITICAL ACCOUNTING JUDGMENTS	41
NOTE 05 - CAPITAL MANAGEMENT AND CORPORATE RISK	42
NOTE 06 - SEGMENT INFORMATION	63
NOTE 07 - CASH AND CASH EQUIVALENTS	64
NOTE 08 - COMPULSORY DEPOSITS IN CENTRAL BANK OF BRAZIL	64
NOTE 09 - INTERBANK INVESTMENTS	64
NOTE 10 - FINANCIAL ASSETS AT AMORTIZATION COST - SECURITIES	65
NOTE 11 - CREDIT OPERATIONS AND FINANCIAL LEASING	65
NOTE 12 - FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - SECURITIES	68
NOTE 13 - FINANCIAL ASSETS AT FAIR VALUE TROUGH INCOME - SECURITIES	68
NOTE 14 - DERIVATIVE FINANCIAL INSTRUMENTS	69
NOTE 15 - OTHER FINANCIAL ASSETS	71
NOTE 16 - OTHER ASSETS	71
NOTE 17 - INVESTMENTS IN ASSOCIATES	71
NOTE 18 - PROPERTY, PLANT AND EQUIPMENT	72
NOTE 19 - INTANGIBLE ASSETS	73
NOTE 20 - FINANCIAL LIABILITIES AT AMORTIZED COST	74
NOTE 21 - FINANCIAL LIABILITIES AT FAIR VALUE THROUGH INCOME	74
NOTE 22 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES	74
NOTE 23 - OTHER FINANCIAL LIABILITIES	77
NOTE 24 - DEFERRED TAXES	77
NOTE 25 - OTHER LIABILITIES	78
NOTE 26 - EQUITY	78
NOTE 27 - NET INTEREST INCOME AND SIMILAR	80
NOTE 28 - NET GAINS (LOSSES) WITH ASSETS AND LIABILITIES AT FAIR VALUE	80
NOTE 29 - REVENUES FROM FEES AND SERVICES	80
NOTE 30 - PERSONNEL EXPENSES	81
NOTE 31 - OTHER ADMINISTRATIVE EXPENSES	81
NOTE 32 - OTHER OPERATING INCOME	81
NOTE 33 - OTHER OPERATING EXPENSES	81
NOTE 34 - INCOME TAX AND SOCIAL CONTRIBUTION	82
NOTE 35 - EARNINGS PER SHARE	82
NOTE 36 - POST-EMPLOYMENTLONG-TERM BENEFIT OBLIGATIONS TO EMPLOYEES	82
NOTE 37 - COMMITMENTS AND OTHER MATERIAL INFORMATION	95
NOTE 38 - RELATED-PARTY TRANSACTIONS	95
NOTE 39 - OTHER INFORMATION	97
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