FINANCIAL STATEMENTS

BNB and FNE In R$ thousand

Position:12.31.2020 ANNUAL MANAGEMENT REPORT 2020

2020

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ANNUAL MANAGEMENT REPORT 2020

SUMMARY 1. A WORD FROM THE CEO ...... 3 1.1 HIGHLIGHTS...... 5 2. BUSINESS MODEL ...... 8 3. BUSINESS STRATEGY ...... 9 3.1 BUSINESS PLANNING ...... 9 3.2 STRATEGIC PROJECTS ...... 10 3.3 PLANNING THE FUTURE IN 2021 ...... 11 3.4 CONSTITUTIONAL FUND FOR FINANCING IN THE NORTHEAST (FNE) ...... 12 3.4.1 FNE assets ...... 12 3.4.2 FNE performance in 2020 ...... 12 3.4.3 FNE 2020: Estimated Economic Impacts ...... 16 3.4.4 FNE challenges in 2021 ...... 16 4. STRATEGIES FOR DEVELOPMENT ...... 17 4.1 SCIENTIFIC , TECHNOLOGICAL AND DEVELOPMENT FUNDS ...... 17 4.2 SUSTAINABILITY ...... 18 4.3 TERRITORIAL DEVELOPMENT POLICY ...... 19 5. ECONOMIC AND FINANCIAL PERFORMANCE ...... 22 5.1 BNB TOTAL ASSETS ...... 22 5.2 NET INCOME ...... 22 5.3 OPERATIONAL EFFICIENCY ...... 23 5.4 EQUITY ...... 24 5.5 CAPITAL ADEQUACY RATIO ...... 24 6. PERFORMANCE OF OPERATIONS ...... 25 6.1 VOLUME OF TRANSACTIONS CONTRACTED ...... 25 6.2 PERFORMANCE BY SEGMENT ...... 28 6.3 CREDIT RECOVERY ...... 34 7. CORPORATE GOVERNANCE ...... 35 7.1 AUDIT ...... 36 7.2 INTERNAL CONTROLS ...... 36 8. RISK MANAGEMENT ...... 37 9. RELATIONSHIPS ...... 41 9.1 CUSTOMER RELATIONSHIP ...... 41 9.2 DIGITAL EXPERIENCE , AND INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ...... 42 9.3 RELATIONSHIP WITH THE SOCIETY ...... 44 9.4 RELATIONSHIP WITH EMPLOYEES ...... 46 10. ENTITIES OF PENSION PLAN AND HEALTH CARE FOR EMPLOYEES ...... 48 10.1 CAMED ...... 48 10.2 CAPEF ...... 48 11. LEGAL INFORMATION ...... 49

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ANNUAL MANAGEMENT REPORT 2020

1. A WORD FROM THE CEO

Committed to protecting life, keeping jobs and the well-being of the region's population, Banco do Nordeste (“BNB”) faced the challenges of 2020, a year marked by the global health crisis, and contracted 5.1 million transactions, corresponding to the amount of R$ 40.07 billion. At the end of the year, it had recurring net income of 1.44 billion, 12.8% higher than that recorded in the same prior-year period. Noteworthy are the contracts under the Bank’s main funding, Fundo Constitucional de Financiamento do Nordeste (“FNE”) through which in year 2020 more than 711 thousand transactions were carried out, equivalent to R$ 25.84 billion, exceeding by 25.7% the volume contracted in 2019. Of this total, the Fund's resources injected R$ 19.08 billion in the Rural, Industrial, Agroindustrial, Tourism and Trade and Services sectors throughout the Bank’s area of operation, consisting of 1,990 municipalities located in the nine states of the Northeast and the North Minas Gerais (MG) and Espírito Santo (ES) states. Also with funds from the Fund and in an effort to make “FNE better and better”, Banco do Nordeste contracted infrastructure projects amounting to R$ 6.63 billion, and totaled investments in the FNE Verde Pessoa Física (Individuals) Program, aimed at microgeneration of energy, totaling R$ 112.9 million. The Student Financing Program (Fies), also with funds from FNE, totaled R$ 11.7 million, allowing students to enter university education. Of the total volume of FNE funds invested in the Region, 54.5% were contracted with entrepreneurs located in the Semi-Arid region, corresponding to R$ 14.08 billion; this is an expressive result of the spatial de-concentration guideline of the Fund’s credit facilities. Also worth noting is the investment of R$ 3 billion through the FNE Emergency line, created by the Federal Government to minimize the effects of the economic crisis generated by the pandemic, the creation of FNE Saúde (for health purposes) and the launch of FNE Startup, the first credit line of Latin America for startups. Even in a complex and unprecedented scenario, BNB took another leap toward “Being the Bank of the micro and small company in the Northeast” and reached in 2020 a record contracting of R$ 4.61 billion in the segment. This amount is equivalent to 49.4 thousand credit transactions, reaching a growth of 26.7% compared to 2019. Likewise, Banco do Nordeste proposed “Advancing its leadership position in microcredit”, disbursing, in 2020 a total amount of R$ 12.11 billion, distributed in 4.4 million transactions in Crediamigo, a facility that marks the Bank’s leadership in urban microfinance. With the largest microcredit program in South America, Banco do Nordeste has an operational capacity to carry out an average of 17.7 thousand disbursements per day, maintaining 2.2 million active customers in its portfolio at the end of the year. Within the scope of rural microcredit, in 2020, Banco do Nordeste contracted 564.8 thousand financing operations amounting to R$ 2.91 billion, benefiting family farmers in the Region and registering growth of 15.5% compared to 2019. In 2020, Agroamigo facility celebrated 15 years of creation, reaching R$ 20 billion invested, and having 1.3 million active customers at the end of the year, of which 76.17% are in the Semi-Arid and 85% are in the low-income bracket. In addition to regularizing more than R$ 3.00 billion in non-performing loans, corresponding to 160.9 thousand transactions, Banco do Nordeste effectively joined the national effort to combat the effects caused by Covid-19, promoting emergency renegotiation of debts as a way of mitigating the financial difficulties faced by entrepreneurs in the Region. To this end, it

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ANNUAL MANAGEMENT REPORT 2020 relied on digital and automated instruments, streamlining the renegotiation process without customers having to go to the Bank’s units. In compliance with the most modern practices of compliance and integrity, as a guarantee of exemplary corporate governance, the Bank expanded its control and risk mechanisms, aware that the efficiency and effectiveness of management are based on ethical and moral bases that permeate the entire body of the Institution. In this regard, Banco do Nordeste, in tune with the concepts that enhance the role of companies in the societies where they operate has been strengthening the Environmental, Social and Governance (ESG) principles in its organizational culture. After all, beyond finance income, BNB is committed to environmental, social and corporate governance that incorporates modern, connected views around the world. This is the way Banco do Nordeste, as a financial and strategic manager of public policies for regional development and in tune with the Federal Government, is prepared to face the challenges of 2021, relying on the conscious commitment of its employees and aware of the responsibilities toward the population of the Region.

Romildo Carneiro Rolim CEO

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1.1 Highlights

We present below our highlights in results, actions, ESG initiatives, awards/recognitions and partnerships reached by Banco do Nordeste in 2020.

Results

V 5.1 million credit transactions contracted, corresponding to R$ 40.07 billion. V R$ 25.84 billion contracted with funds from Fundo Constitucional de Financiamento do Nordeste (“FNE”), reaching 102.1% of the target established for 2020, most of which - R$ 8.37 billion – allocated to the trade and services sector, one of the most affected by the Covid-19 pandemic. V Micro and small businesses (MPE) segment with a record contracting of R$ 4.61 billion, growth of 26.7% diluted into more than 49 thousand transactions. V Disbursement of R$ 12.11 billion under the Crediamigo program, in 4.4 million urban microcredit transactions. V Disbursement of R$ 2.91 billion for rural micro-entrepreneurs; of which R$ 242.8 million through the Agroamigo Mais Program, representing 28% more vis-à-vis the same period in 2019. V In 2020, the year in which it celebrated 15 years of its creation, Agroamigo hit the mark of R 20 billion invested. V Regularization of more than 150 thousand transactions with a global value of R$ 3.00 billion in renegotiated debts. V Contracting of R$ 6.63 billion for Infrastructure projects with FNE resources, mainly for the renewable energy segment. V The Bank reached 13,269 customers in the business segment, an increase of 14.54% compared to the number presented in 2019. Investments totaled R$ 5.70 billion. V Recurring net income of R$ 1.44 billion, representing an increase of 12.8% comparatively with the same period of 2019.

Actions taken V Services assisting the 1,990 municipalities in the FNE’s coverage area, including financing of R$ 14.07 billion for projects in the Semiarid region. V Economic activities prioritized by the Territorial Development Program (Prodeter) received approximately R$ 945.1 million in financing, which resulted in diffusion of gains in competitiveness of the productive chains served. V Opening of Banco do Nordeste Innovation Hub in Recife; this initiative is focused on expanding the competitive potential, increasing productivity and revenue of companies based in Pernambuco, aiming to contribute to the throbbing ecosystem already driven by the performance of Porto Digital. V Opening of 21 vacancies for coworking startups at the Banco do Nordeste Innovation Hub in Recife, Fortaleza and Salvador. V Reduction in working capital interest rates, with offers starting at 0.35% per month. V Launch of the FNE Startup line: Latin America's first credit line for startups, positioning BNB as one of the most active players in fostering innovative ecosystems in its area of operation.

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V Launch of the Crediamigo App, an important digital inclusion tool for the public of the urban microcredit program. V Extended terms for financing and microcredit transactions, in addition to the announcement of new credits under different conditions to minimize the effects of the Covid-19 pandemic on the economy. V Emergency renegotiation of operations by digital means, for purposes of speeding up assistance to the micro, small and medium-sized companies affected by Covid-19. V Investment of R$ 3 billion through the FNE Emergency line, with interest of 2.5% p.a. and grace period until December 2020, so as to recover or preserve the productive activities of municipalities in emergency situation or state of public calamity, due to the pandemic resulting from the Covid-19. V Operationalization of funds from the National Support Program for Micro and Small Enterprises (Pronampe) for Micro and Small Businesses. V Disclosure and beginning of the operationalization of the 2020/2021 Plano Safra with a budget of R$ 8.26 billion, which represents an increase of 6.0% in relation to the 2019/2020 Plano Safra. V Launch of Digital Costing, Digital Marketing and BNB Agro App, instruments that will facilitate access to rural credit, making it faster, safer and less bureaucratic. V Holding of the XXVI Banco do Nordeste Forum, with discussions on post-pandemic scenarios and trends. V Feirão Digital "Limpa Nome" (Clearance of Debts) and Feirão da Retomada (Brazil Week for economic resumption), with opportunities for Crediamigo customers to join debt renegotiation under different conditions. V Inauguration of Crediamigo regional offices in Petrolina (PE) and Imperatriz (MA) and Floriano (PI), as part of the program’s expansion strategy. V Creation of the Open Banking & Instant Payments Strategic Project to define business and innovation strategy for joining the Open Banking and Instant Payments ecosystems. V Creation of measures to adapt Banco do Nordeste to the legal requirements of the General Data Protection Law (LGPD), such as the definition of the person in charge of data processing. V Creation of the Integrated Risk Management Strategic Project (GIR) primarily intended to creating improvements in risk management and capital management in the Bank.

Environmental, Social and Governance (ESG) initiatives

V By means of Banco do Nordeste’s green credit lines, more related to the environmental aspect of the ESG perspective, the amount of R$ 5.41 billion was contracted in more than 13 thousand transactions carried out. V Contracting of R$ 130.9 million in solar energy projects for individuals and R$ 133.2 million for businesses, with an average amount of R$ 34.6 thousand and R$ 173.9 thousand, respectively. V IV Integrity and Ethics Forum, with the participation of representatives from institutions such as the Federal Comptroller General (CGU), the Ministry of Economy, Petrobras and the Brazilian Institute of Public Integrity (IBIP).

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V Fundeci Bids 01/2020 and 02/2020 - Support for Innovation to Combat the New Coronavirus, with funds amounting to R$ 5.0 million, allocated to 17 projects seeking fostering the development of solutions that contribute to research and innovation in combating the disease and its effects on the health system, social and productive well-being. V Juntos pela Vida [Together for life] Campaign collected and distributed 2,460 baskets of staples for the benefit of people affected by the pandemic in municipalities in the Bank’s area of operation. V Natal Social Solidarity Campaign collected 67 tons of food, in addition to toys and hygiene items for charities in Banco do Nordeste's area of operation. V Public Call for Virtual Programming of Banco do Nordeste Cultural Centers, with 120 activities free of charge via the Virtual Programming of Banco do Nordeste Cultural Centers.

Awards/Recognition

V Best Ombudsman: Banco do Nordeste had the ombudsman with the best index in the country in the “Ombudsman Quality Ranking”, published by the Brazilian Central Bank (Bacen), in the category of financial institutions with more than 4 million customers. V Best performance among all Brazilian banks: according to a ranking published by the English magazine The Banker, belonging to The Financial Times, BNB presented the best performance. V Formal sitting in honor of Banco do Nordeste, at the Legislative Assembly of the State of Piauí. Certified with the “Great Place to Work” (GPTW) seal as one of the Best Companies to Work for. V Alide 2020 Award: The Latin American Association of Financial Institutions for Development recognized Banco do Nordeste Innovation Hub as an innovative practice. V 100+ Innovative Award in the use of IT: BNB is recognized by the IT Media organization, in partnership with PwC consulting firm, in the Medium-sized Banks category. Partnerships V Banco do Nordeste's participation in AgroNordeste, supporting the organization of agricultural chains of current or potential significance in the Region, expanding and diversifying marketing channels, with social, environmental and economic relevance. V Inauguration of Banco do Nordeste Innovation Hub in Recife (PE) in partnership with Porto Digital, cooperating with regional development by supporting innovative entrepreneurship. V Strategic alliance with insurance company Icatu Seguros for the distribution of the insurer's Life and Loan Protection Insurance and Private Pension plans in the Bank’s physical and digital channels. V XXV Northeast Regional Meeting of Economics, promoted in partnership with the National Association of Graduate Studies Centers in Economics (Anpec) and delivery of the award for the 24 th edition of the Banco do Nordeste Regional Economy Award. V Partnership between BNB, Banco Cooperativo do Brasil (Bancoob) and Banco Cooperativo Sicredi, which foresees an investment of R$ 200 million for purposes of expanding the diffusion capacity of the resources of Fundo Constitucional de Financiamento do Nordeste (“FNE”) 7

ANNUAL MANAGEMENT REPORT 2020

V Partnership with the European Investment Bank to raise funds in the amount of 200 million euros, for a financing facility exclusively intended for women entrepreneurs.

2. BUSINESS MODEL Banco do Nordeste’s business model is structured in segments, products and business lines focused on loan for the development of its area of operation: • Customer segments: serves companies of all sizes (corporate, large, medium, micro and small-sized companies), rural sector segments (agribusiness, small and mini rural producer and family farming), microfinance segment (urban and rural) and individual and Government segments, the latter to serve institutions of the direct and indirect public administration. • The products and services portfolio encompasses: V Infrastructure operations; V Credit operations for micro, small, medium and large companies, including: o Industrial operations for the acquisition of machinery, equipment and raw materials and for modernization of plants, among others; o Commercial operations for retail, wholesale and service companies; o Rural operations, including agribusiness; o Microcredit operations for urban entrepreneurs and family farmers. V Portfolio management and credit analysis for government funds and programs; V Banking services, which consist of offering savings accounts, demand and time deposits, securities custody, foreign exchange transactions, electronic transfers, collection services, credit card, among others; V Capital Market Operations, with the structuring and distribution of local short- and long-term securities such as debentures, promissory notes, Certificates of Real Estate Receivables (CRI), Credit Rights Investment Funds (Fidc), among others; V Third party asset management, consisting of the management of investment funds for small, medium-sized and large investors. • Business lines: V Specialized Credit; V Credit for Infrastructure; V Credit for Urban Microfinance; V Credit for Urban Microfinance;

In order to achieve a better geographic coverage and detect opportunities to boost its business, the Bank systematically conducts market sizing studies.

Banco do Nordeste ended the 2 nd six-month period of 2020 with 292 branches, 471 urban microcredit units and 215 rural microcredit units, totaling 978 physical points of service, as shown in Chart 1.

Chart 1 - On-site service channels of Banco do Nordeste

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Source: Banco do Nordeste – Marketing Environment and Business Board

3. BUSINESS STRATEGY Strategy is a vision of the path where the Institution is to be led in order to achieve its strategic objectives. This strategy is translated as a set of instruments, responsibilities and goals, spelled out in a multiannual program of policies, activities, investments, actions, projects and indicators intended to improve the quality of management, the efficiency of the allocation of resources and the offer of products and customer services. The strategy must be tested as for its consistency and with economic identities and theories, adherence to numbers and consistency with the historical process of development of the Bank’s area of activity. Banco do Nordeste’s business strategies were defined based on the main trends of the economic macro-environment, of the financial and banking industries, of technological developments, of the main innovations of segments in which the Bank operates and of the risks envisaged in scenarios designed for Brazil, for the Northeast region and for its area of operation.

3.1 Business Planning The Bank’s Business Planning comprises strategic, tactical and operational plans. The first one, called Strategic Planning, contains the mission, vision, values and five-year goals, as well as the expected results and impacts of the Bank’s action in its area of operation. The ‘Tactical Plan’ involves the actions and activities of the General Management, and the ‘Operational Plan’ encompasses the actions and activities of the business units. Banco do Nordeste, in its strategic planning, highlights: V Mission: “To operate as the Development Bank for the Brazilian Northeast Region”. V Vision: “Being the preferred Bank in Northeastern Brazil, recognized for its ability to promote the welfare of families and the competitiveness of companies in the Region”. Planning at Banco do Nordeste is guided by the following assumptions: corporate vision, clearness of course, management for results, participation, continuity and flexibility. The implementation and success of the chosen strategy are supported by the following principles: Meritocracy, Focus on Customers and Results, Innovation and Integrity. In preparing its 2020-2024 Business Planning, the Bank considered the assessment of the corporate results achieved in the previous year and its opportunities for improvement, the analysis of the external environment, the legal requirements, guidelines and public policies by which BNB is regulated, as well as mapping strategic risks and opportunities. 9

ANNUAL MANAGEMENT REPORT 2020

In year 2020, some of the Bank’s operating strategies were revised to adapt its activities and business to match the new reality imposed by the effects of the Covid-19 pandemic. In view of this adverse and even more challenging scenario, efforts were made and necessary resources allocated to accelerate the internal digital transformation process, which is reflected in improvements in processes, products and services and, consequently, in excellent service and relationship with customers. The Bank’s digital solutions are presented on the Internet at the following address: (https://www.bnb.gov.br/solucoes-digitais).

3.2 Strategic Projects

The main deliverables of some of the Bank’s most relevant strategic projects in 2020 are highlighted below. The strategic projects contribute to the production of innovations in the Bank's products, processes and services for its customers. Strategic Project - General Data Protection Law (LGPD) The objectives of this Project are, among others, to study the processes at the Bank that treat personal data, to map this data in all BNB units, including systems and databases, to conduct a gap analysis in relation to the full compliance with the LGPD in the Institution, to prospect and act in the hiring of technological solutions to ensure the privacy and protection of personal data and in the fulfillment of requests from Personal Data Holders and the National Data Protection Authority. The main deliverables for the project in 2020 were as follows: ° Diagnosis of BNB’s status in relation to current legislation guidelines; ° Presentation of the report of the contracted external consulting firm; ° Preparation of the Personal Data Inventory; ° Preparation of Data Protection Impact Report; ° Preparation of the LGPD Suitability Action Plan; ° Acquisition of a technological data governance solution ( OneTrust ); ° Appointment of the Person in Charge of Data Protection Office (DPO); ° Privacy Policy Publication; ° Adequacy of the Agreements signed after the LGPD came into force.

Strategic Project - Integrated Risk Management (GIR) The project is intended to develop a structured action plan to ensure the correction of any identified gaps, the compliance with good market practices and the regulatory requirements that may be demanded, as well as to update rules/processes that involve the risk management and capital management issues at the Bank. This project has been assisted by specialized external consulting services. To meet the project’s objective, three fronts were established: • Front I - Integrated Risk Management (stages: Diagnosis; Benchmarking; and Structured Action Plans) – to assess, in light of good market practices and current

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regulations, in particular, CMN Resolution No. 4557 of Feb 23, 2017, the status of risk and capital management at BNB; • Front II - Credit Risk Modeling (stages: Strategy and Evaluation; Modeling; and Results) – to analyze the specialist and fundamentalist risk models; and • Front III - Legal Contingencies (stages: Technical Analysis of Classification Criteria; Definition of Variables and Benchmarking; Modeling of Parameters) – to examine the models for estimating risk and measuring the value of the financial loss arising from lawsuits.

Strategic Project - Open Banking and Instant Payments

The Strategic Open Banking and Instant Payments Project was created for purposes of defining a business and innovation strategy for joining the Open Banking and Instant Payment ecosystems and developing IT solutions to enable systems integration, within the scope, requirements and deadlines defined by the Central Bank of Brazil (Bacen). Until 12/31/2020, the following actions were developed:

• Monitoring of regulations and attendance at Bacen events on Instant Payments (Pix) and Open Banking; • Participation at Pix's plenary sessions with Bacen; • Participation at Open Banking WGs conducted by the Brazilian Federation of Banks (Febraban); • Conducting international benchmarking on Pix and Open Banking initiatives; • Survey of information on business model, customer segmentation, market typology, product and service portfolio and service channels; • Evaluation of Bank products and services that are candidates for Open Banking; • Development of a diagnosis of the use of service channels and of the Bank’s products and services; • Analysis of the impacts of the implementation of Pix and Open Banking in reducing expenses and loss of revenue; • Study on scenarios and projection of cost and revenue trends with the adoption of Pix (Instant Payments); • Preparation of reports and presentations on diagnosis and study of Pix and Open Banking impacts.

3.3 Planning the future in 2021

The technological innovations fostered by the banking industry, particularly in the segments of means of payment and communication and customer service channels, bring to financial institutions the need to invest heavily in technological innovation and in the improvement of internal processes in order to meet the expectations of customers while developing more efficient ways of carrying out their activities. In this connection, the Bank highlights the continuous improvement in processes, products and services in its 2021-2025 Strategic Planning, mainly in view of the excellence in service and relationship with customers. To this end, the following is envisaged: i) adoption of best market practices applicable to its reality, ii) establishment of strategic alliances that add technological value and iii) strengthening of management by processes. These three practices will seek to assist in the effective transformation of business, through digital financial solutions that generate results of greater effectiveness and efficiency, reinforcing the fulfillment of the Bank’s institutional mission.

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For 2021 and the following four-year period, the topics related to the “Strategy Trails” (customers and businesses; people; products and services; technology; and processes) remain transversal and the Bank's main actions will be guided by the following: • Improving FNE more and more; • Advancing in microcredit leadership; • Being the Bank of small and medium-sized companies in Northeastern Region of Brazil; • Innovating in processes, products and services; and • Valuing human competencies and customer satisfaction.

3.4 Fundo Constitucional de Financiamento do Nordeste (FNE) FNE is made up of public funds intended to finance production activities, and its purpose is to contribute to the social and economic development of its area of operation, i.e., Northeastern Brazil and North of the Minas Gerais and Espírito Santo states. As the financial institution that operates the FNE, Banco do Nordeste consolidates its mission as a development bank in the Northeast region, supporting production projects and public policies that impact the rural and urban Northeastern communities, through its credit and development activities. The granting of loans from FNE funds is governed by specific regulations, which direct support to regional development priorities, and constitutes a public financing policy, with investment programming annually prepared by Sudene Decision-making Board (Condel), based on the programming prepared by Banco do Nordeste in a process involving the participation of productive sectors, support and government entities in the states. Thus, the allocation of resources in terms of public, area and economic sector is linked to the achievement of the Fund objectives, which are aligned with precepts of the National Policy for Regional Development (PNDR) to meet the demands of the states and the expected results of BNB action as operator and administrator of this source of funds.

3.4.1 FNE assets FNE assets totaled R$96.27 billion at the end of 2020, showing an increase of 7.8% as compared with the volume of R$89.29 billion reached in the same prior-year period. The balance of FNE’s fund availability, at the end of the year, reached R$2.20 billion, representing a reduction of 63.9% in relation to the existing balance at the end of 2019. While the balances to be disbursed related to loan transactions previously carried out totaled R$12.09 billion, 27.1% lower than the amount of R$16.60 billion in December 2019. The balance of loan transactions also increased in relation to 2019, showing an increase of 23.9% and an amount of R$79.13 billion, net of allowances (R$63.85 billion in December 2019). Such variations were influenced by the significant increase in the volume of transactions with FNE funds (R$25.84 billion in 2020).

3.4.2 FNE performance in 2020 Under the Application Plan set out in the FNE Program, Banco do Nordeste contracted financing in 2020 amounting to R$ 19.08 billion for the Rural, Industrial, Agro-industrial, Tourism and Commerce and Service sectors, with the distribution by state shown in Table 1. In addition to these amounts, R$ 6.63 billion were also invested in infrastructure projects, according to the segmentation stated in Table 2, R$ 11.7 million for Student Financing (P- Fies) and R$ 112.9 million for FNE Verde Sol Pessoa Natural program, the latter referring to 12

ANNUAL MANAGEMENT REPORT 2020 mini and micro generation of photovoltaic energy for individuals. Thus, the grand total contracted reached R$ 25.84 billion in the year, as detailed in Table 3. Table 1 - BNB/FNE 2020 Financing by state (R$ million) FNE State (Excepti ng Infrastructure and Individuals) Amount contracted % AL 860.6 4.5 BA 4,192.4 22.0 CE 2,867.5 15.0 ES 341.0 1.8 MA 2,041.0 10.7 MG 1,102.9 5.8 PB 1,211.1 6.3 PE 2,687.3 14.1 PI 1,817.1 9.5 RN 1,018.0 5.3 SE 942.4 4.9 Grand total 19,081.1 100.0 Source: Banco do Nordeste - Planning Executive Board.

Table 2 - BNB/FNE 2020: Financing for Infrastructure by Product (R$ million) Infrastructure

Amount Activities/Product contracted Basic Sanitat ion 222.67 Logistics 91.23 Energy Generation/ Transmission/ Distribution 5,570.55 Telecommunications 752.48 Grand total 6,636 .92 Source: Banco do Nordeste - Planning Executive Board. Due to the context of the pandemic, several internal actions to improve the credit process and financing programs had to be implemented, such as communication, prospecting and negotiation actions, which contributed to the application of the total availability of this Constitutional Fund, even in the face of the contraction in economic activity observed in the country as a whole. In terms of number of operations, in 2020, more than 711 thousand financing transactions were contracted on behalf of rural producers, companies, individual entrepreneurs and individuals, a volume that exceeds year 2019 by 25.7%. This volume of application covered 100% of the FNE's area of operation, that is, all of the 1,990 municipalities based in the 11 states in which the Bank operates, including the northern areas of the states of Minas Gerais (MG) and Espírito Santo (ES), as shown in Table 3, in which the importance of the Commerce and Services sector for the dynamics of the economy is noticed, as a sector whose resource allocation gave priority to small companies, with 66.5% of everything financed thereat. Table 3 - FNE: Transactions by Economic Sector (R$ million)

Sector 2019 2020 % %

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Qtt. Amount E=(C ) / (A) F=(D) / (B) - Qtt. (A) Amount (C) (D) - 1 1 (B) Rural 523,774 7,568.90 590,877 7,673.40 12.8 1.4 Agribusiness 379 438.4 493 448.9 30.1 2.4 Trade and 32,946 6,955.00 107,101 8,374.30 225.1 20.4 Services Manufacturing 4,029 2,709.40 6,050 2,051.80 50.2 -24.3 Tourism 938 573 2,004 532.7 113.6 -7.0 Infrastructure 122 11,218.30 75 6,636.90 -38.5 -40.8 Individuals 3,677 94.1 4,529 124.7 23.2 32.5 Total 565,865 29,557.10 711,129 25,842.60 25.7 -12.6 Source: Banco do Nordeste - Planning Executive Board. (*) Students and photovoltaic energy mini and microgeneration

Still regarding the spatial de-concentration of FNE financing transactions, in addition to the total coverage in its area of operation, other significant results stand out, such as the application of R$ 14.07 billion for entrepreneurs located in the Semi-Arid, some 54.5% of the total contracted, reflecting the allocation of resources to family farmers (Pronaf), rural producers and a significant part of the operations in the Infrastructure sector (86.0% of the total invested in this sector was directed to the Semiarid Region).

It should also be noted that, the National Policy for Regional Development (PNDR) and the Regional Development Plan for the Northeast advocate support for regional sub-areas, with a view to reducing regional inequalities and promoting equality in access to development opportunities. In this regard, it should be noted that the total financing to the priority micro- regions of the PDNR (Low Income and Medium Income municipalities) reached the amount of R$ 20.38 billion, some 78.9% of the total financed, while the Integrated Regions Development (Rides) of Petrolina/Juazeiro and Teresina/Timon recorded contracting of R$ 770.1 million, exceeding the projected amount for both.

The focus on small entrepreneurs, both in rural and other sectors, made it possible to direct R$ 12.51 billion (65.6% of the total financed, excepting infrastructure and Individuals) to this public, a growth of 26.3 % in relation to that recorded in 2019 (R$ 9.98 billion), without losing sight of the strategic support for larger enterprises, which are fundamental for the maintenance of jobs and economic dynamics.

Another action implemented in a timely manner as a countercyclical measure to combat the economic crisis experienced was the creation of the FNE Emergency Line, in April. The challenging goal of R$ 3.00 billion was fully met in strict compliance with the provisions of Bacen Resolution No. 4798/2020: 96.5% directed at beneficiaries of up to small-medium size and 87.7% allocated as a source of working capital. This contracted amount totaled 92,584 credit operations, with a strong predominance in the commerce and services sector, which is essential for the maintenance of small businesses, given the decrease in the circulation of goods and services in the context of the pandemic.

In order to achieve such performance, the targeting of the urban microentrepreneur who benefited from the National Oriented Productive Microcredit Program (PNMPO) was predominant, whose targeting represented 71.5% of the total number of contracted transactions, amounting to R$ 1.05 billion.

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Via FNE, BNB did not neglect the Innovation credit either, in which it invested R$ 397.8 million through FNE Inovação and FNE Startup lines. In terms of innovation, the Bank also created the FNE Healthy Northeast Strategy in 2020, whose purpose is to finance projects and investment items for the implementation, expansion, modernization, renovation, relocation and/or expansion of projects contained in the Industrial Economic Complex of Health (Ceis), as well as health service providers, intended to increasing the production of related items and equipment, the service capacity and/or improving the quality of service provision, endowing the line of differentials in items and financing conditions. Despite the continuity of the health crisis (Covid-19) over practically the entire year of 2020, which generated, among other negative externalities, the postponement of productive investments and the aversion to credit, BNB managed to apply all the expected availability when programming the resources of this source, for which the operational and business efforts were fundamental, as well as the close monitoring of the applications occurred during all the months of the year, and the innovations and adjustments in credit and financing conditions in support of the productive sector considering the overall state of affairs.

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3.4.3 FNE 2020: Estimated Economic Impacts

Based on an exercise using the Regional Input-Product Matrix, it is estimated that the R$ 25.8 billion contracted with FNE resources in 2020 should contribute to generate and/or maintain 1.4 million jobs in Banco do Nordeste’s area of operations (Table 4). Worth highlighting that these occupations are not the balance at the end of the year, but the entry of new workers (on a formal and informal basis), or the maintenance of the worker due to the contracting of financing, not taking into consideration the departure of workers in the surveyed period. As per Table 4, an increase of R$8.74 billion in the salary mass of its area of operation is also estimated; R$4.78 billion in tax collection; R$53.29 billion in Gross Production Amount; and R$30.27 billion of Value Added to the Economy. The Infrastructure Sector, responsible for approximately 25,7% of the volume of funds taken out in 2020, tends to contribute to generate and/or maintain approximately 156 thousand jobs in BNB’s entire area of operation. Considering the spillover effect to the other regions, there is an estimated generation and/or maintenance of approximately 246 thousand jobs throughout Brazil, an increase of R$4.05 billion in the salary mass, R$3.08 billion in tax collection, R$26.32 billion in Gross Production Amount and R$13.73 billion of Value Added to the economy.

Table 4 - Estimated Economic Impact of FNE 2020 Contracted Transactions - R$ Million and Jobs in Number of Persons (1)

Indicador Agrícola Pecuária Agroindústria Industrial Infraestrutura Comércio Serviços Total

Total Contratado em 2020 (R$ Milhões) 3.392,6 4.276,2 446,1 3.425,0 6.636,9 4.894,4 2.771,4 25.842,7 Resultados por Setor - Área de Atuação do Banco do Nordeste Valor Bruto da Produção 2 6.729,3 8.935,6 996,9 7.103,1 13.559,7 10.132,4 5.840,0 53.297,0 Valor Agregado/Renda 3 4.218,7 4.894,4 391,0 3.054,2 7.659,5 6.618,3 3.442,1 30.278,3

Milhões Salários 1.093,2 1.355,9 135,5 985,6 1.978,9 2.074,4 1.119,7 8.743,2

ValoresR$em Tributos 417,6 684,7 100,4 889,4 1.801,9 431,0 463,1 4.788,1 Empregos (Nº de Pessoas) 4 273.199 564.061 17.272 84.120 156.870 232.506 108.526 1.436.552 Resultados por Setor - Brasil (5) Valor Bruto da Produção (2) 13.270,7 17.740,1 1.972,4 13.666,1 26.325,1 19.281,5 11.086,4 103.342,2 Valor Agregado/Renda (3) 7.222,2 8.922,3 842,1 6.099,3 13.736,5 10.930,3 5.903,8 53.656,6

Milhões Salários 2.128,4 2.731,3 287,8 2.040,2 4.055,5 3.580,0 1.977,2 16.800,4

ValoresemR$ Tributos 1.064,9 1.556,8 192,2 1.531,1 3.085,3 1.345,0 993,0 9.768,4 Empregos (Nº de Pessoas) (4) 319.571 631.686 24.982 129.413 246.534 299.848 146.717 1.798.750

Investimento p/ gerar 01 emprego (R$) 10.616,2 6.769,5 17.856,9 26.465,8 26.921,0 16.322,9 18.889,6 14.367,0 Source: Banco do Nordeste - Technical Office for Economic Studies in the Northeast (Etene). Notes: (1) Impacts estimated from the input-product matrix in the Northeast, considering the direct, indirect and induced (income) effects from the application of resources; (2) Sum in the period. (3) Value of goods produced, less costs of inputs purchased from third parties, used in production. (4) Formal and informal jobs. (5). Sum of impacts. (6) The amounts contracted by FNE in the tourism sector and with individuals were added to the Services to calculate the impacts.

3.4.4 FNE challenges in 2021 The good investment performance recorded in the last three years generates the responsibility to maintain, also in 2021, the same operational pace in order to allow the investment of R$24.10 billion of constitutional funds already forecasted, representing the full commitment of the fund availabilities to transactions carried out in the FNE area of operation. The products launched in the last years, for instance credit to individuals and photovoltaic energy mini and micro generation companies (FNE Sol), the student financing (P-Fies), FNE Innovation and Start-up, FNE Health, in addition to support for infrastructure projects, among

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ANNUAL MANAGEMENT REPORT 2020 others, combined with the expansion and integration of developmentalist actions, such as the Territorial Development Program (Prodeter) and its connection with the Agronordeste and Routes of Integration initiatives will contribute to the continuity of FNE as a financial driver in the support of regional development. In addition to resources amounting to R$ 5.42 billion for the Infrastructure sector within the FNE Program, there is a specific allocation for fundamental projects in sanitation and logistics infrastructure, the sum of which amounts to R$ 1.68 billion, as indicated in its schedule for 2021, which will contribute to the structuring of good business opportunities for the years to come. It is also expected to contribute to the modernization of the transport modal structure, an ever greater replacement of the current energy matrix for a cleaner one, the expansion of sanitation, among other key improvements to the Northeast region. In this connection, the increasing dialogue between Banco do Nordeste and the other governing bodies of constitutional funds, the Northeast Development Superintendence (Sudene) and the Ministry of Regional Development (MDR) favors the prioritization of the application of these resources in less dynamic, smaller-sized spaces and territories. This set of actions aligned with the attention as to the regional distribution of funds available, in terms of areas, sectors and production segments, enhances the main reason of the FNE’s regional development public policy, able to significantly contribute to overcome challenges and for setting a life pattern compatible with the resources, potential and opportunities in the Northeast region.

4. STRATEGIES FOR DEVELOPMENT

4.1 Scientific, Technological and Development Funds Regional development is made possible from a range of economic, financial, technological, social and environmental factors that come together, producing a dynamic driver of gains in competitiveness, productivity and social well-being.In this process, the Research, Dissemination, Development and Innovation activities are a key factor for the competitiveness of enterprises and the expansion of the multiplier effects of the productive investment. Aware of its role as a regional development bank, Banco do Nordeste supports research, diffusion, development and innovation projects through two funds created for this purpose, the Fund for Economic, Scientific, Technological and Innovation Development (Fundeci) and the Regional Development Fund (FDR). The research and development projects supported by Fundeci and FDR accumulate significant experience in decades of contribution to the adaptation and/or improvement of products, services and processes, for dissemination of technologies and for innovation, with emphasis on the regional production sector. These funds provide non-reimbursable funds to support research, development, diffusion and innovation projects, relying on structured, monitoring, and technical and financial accountability processes. In 2020, 35 onlending instruments to selected projects were formalized, through spontaneous demand and Fundeci Public Notices No. 01/2018 - Territorial Development and Fundeci Public Notices Nos. 02/2018, 01/2019 and 01/2020 - Economic Subsidy, distributed in the states of Banco do Nordeste’s area of operation. Still in 2020, Banco do Nordeste launched two new calls for tender based on Fundeci funds, the Fundeci Public Notice no. 01/2020 - Economic Subsidy - Support for innovation to combat the new Coronavirus (Covid-19) and Fundeci Public Notice No. 02/2020 - Water and Sanitation. In total, the amount of R$ 10.0 million (R$ 5.0 million for each public notice) was made available to support research, development and innovation projects submitted by 17

ANNUAL MANAGEMENT REPORT 2020 public or private non-profit organizations and by companies – micro and small businesses (MPEs) and Small and Midsized Businesses (SMB). Among the innovation projects that had the support of Banco do Nordeste in the Covid-19 topic, in 2020 initiatives that use big data technology, Internet of Things (IOT), blockchain, machine learning and artificial intelligence can be highlighted, for the development of medical assistance platforms (telemedicine), Covid-19 control and mitigation sanitizers, patient monitoring systems, creation of a Diagnostic Imaging (RDI) network, among others. As for the researchdevelopment and innovation projects within the scope of Fundeci Public Notice No. 02/2020, the stage of analysis and formalization of the projects is scheduled to start in June 2021. By supporting research, development and innovation projects with non-reimbursable funds, Banco do Nordeste’s Research and Development Funds contribute to reducing costs and risks inherent to research and innovation, favoring the generation of solutions and the improvement and development of products/services, strengthening, modernizing and diversifying regional economic activities.

4.2 Sustainability The results achieved each year reflect Banco do Nordeste’s efforts to disseminate social and environmental initiatives and projects, seeking to render it feasible to strike a balance between economic growth, social well-being and care for the environment. As a way of strengthening with stakeholders the transparency of their actions, Banco do Nordeste publishes its Sustainability Report annually. Through this report, stakeholders have access to the Bank’s main Environment, Social and Governance (ESG) actions, as well as to the results of its activities. Among the several ESG activities carried out by the Bank, the following stand out: financing granted to projects aimed at sustainability throughout the Bank’s area of operation, strengthening of BNB’s Social and Environmental Responsibility Policy (PRSA) and financial support for various social projects through tax incentives, among others. Banco do Nordeste’s Sustainability Reports can be accessed at https://www.bnb.gov.br/relatorios-de-sustentabilidade . Through the Bank’s green credit lines, more related to the environmental aspect within the scope of ESG, projects that promote the sustainable use of forest resources, forestry, reforestation, environmental recovery and coexistence with the semiarid, recovery of degraded areas are supported, in addition to renewable energies and energy efficiency, and agro-ecological production, among others. In 2020, under the aforementioned green credit lines, R$ 5.41 billion were contracted in more than 13 thousand operations carried out, distributed as follows: R$ 5.25 billion contracted by the Environmental Sustainability Financing Program - FNE Verde , in which the financing aimed at centralized generation of energy by means of renewable sources are to be highlighted, in addition to support for projects of micro or mini-generation of distributed energy through photovoltaic source, where more than 4,500 financing transactions were made, totaling R$ 264.4 million financed. Of this amount, R$ 130.9 million (3,782 transactions) are related to individuals (including rural producers) a) and R$ 133.2 million (766 operations) are for companies, recording an average amount of R$ 34.6 thousand and R$ 173.9 thousand, respectively; and R$ 157.6 million contracted by way of the National Family Agriculture Program (Pronaf) financing facilities. At the end of the fiscal year 2020, BNB relaunched a publication called “Agenda do Produtor Rural” [Rural Producer Agenda], which in the past was a reference in the Northeast region as 18

ANNUAL MANAGEMENT REPORT 2020 a source of quality information on various aspects of conducting agricultural activities Among such information there is a great deal of knowledge related to the conduct of activities towards sustainability, such as: financing through green credit lines, strategies and technologies for coping with drought, catchment and storage of rainwater, universal declaration of water rights, organic systems of agricultural production, generation of solar energy in rural areas, among other relevant topics. The Rural Producer Agenda can be found on the Bank’s Portal on the Internet, at the following address: https://www.bnb.gov.br/agronegocio/agenda-produtor-rural. Regarding the PRSA of Banco do Nordeste, a critical instrument to guide the Bank’s ESG actions, by the end of the first half of 2020, a total of 94% of the actions of the Action Plan for its implementation had been fulfilled. As of the second six-month period of 2020, the PRSA five-year update process started, with completion expected in the first quarter of 2021. More information about this Policy can be accessed through the following link: https://www.bnb.gov.br/agronegocio/agenda-produtor-rural. Considering the social perspective of ESG actions, Banco do Nordeste stands out, in addition to the results already mentioned regarding the generation of jobs and income, for the ongoing support to social projects in its area of activity, allocating part of its income tax due annually to non-profit organizations, in the form of financial support with non- reimbursable resources. This support is provided within the scope of the following tax incentive laws: Childhood and Adolescence Fund (FIA), Elderly Rights Fund, Sports Incentive Law, National Oncology Care Support Program (Pronon) and National Health Care Support Program for Persons with Disabilities (Pronas). In 2020, 13 (thirteen) projects were selected, totaling approximately R$ 1.73 million (one million, seven hundred and thirty thousand reais), distributed in projects in 6 (six) states, as follows: 6 (six) projects in Ceará, 2 (two) in Pernambuco, 2 (two) in Bahia, 1 (one) in Sergipe, 1 (one) in Minas Gerais and 1 (one) in Piauí. The list of funds and benefited entities can be accessed at https://www.bnb.gov.br/acesso-a-informacao/convenios-e-transferencias . All this information, in addition to several other data related to ESG actions developed by Banco do Nordeste, is available on the Bank’s Internet portal, at https://www.bnb.gov.br/agronegocio/agenda-produtor-rural.

4.3 Territorial Development Policy

The Territorial Development Program (Prodeter), one of the instruments through which the BNB Territorial Development Policy becomes reality, consolidated important results in terms of gains of competitiveness of the economic activities subject to structuring. By the end of 2020, the Program had 132 Territories/Projects in progress, divided into three phases. Phase 1 comprises 21 projects while Phase 2 comprises 50 projects. The Territorial Action Plans (PAT) for both phases are under execution and monitoring. Phase 3, with 61 development projects, started implementing its plans in 2020. The Action Plans implemented in the first 21 territories covered by Prodeter, as well as the 50 new projects of the first expansion, continued to show in 2020 expressive results in terms of structuring of production chains of the prioritized economic activities, with real progresses in the solution of their bottlenecks, minimizing the risks of default of financing granted. It should also be pointed out that a good part of the new 61 projects also showed positive results at the beginning of their execution. 19

ANNUAL MANAGEMENT REPORT 2020

The economic activities prioritized in Prodeter received approximately R$ 945.1 million in financing in 2020. Considering the entire period of operation of Prodeter since 2016, the accumulated financed amount has already exceeded R$ 2.02 billion. In 2020, Prodeter had about 9,887 participants, of which 8,708 are Bank customers, and of this total, 20% have credit transactions with BNB. The program was present in 649 municipalities in the Bank’s area of operation, which represents 32.6%. It has a total of approximately 1,800 partner institutions. As in previous years, in 2020, the database for registration and dissemination of gains in competitiveness of the production chains subject of Prodeter’s actions was updated, with expressive results, worth mentioning: V Advances in technological innovations in dairy cattle, such as in vitro fertilization - (IVF) in Bahia and Minas Gerais; production of seedlings for the demo units of forage banks, in the state of Alagoas, as well as field days, training workshops, technical visits, virtual lectures, among other actions addressing varied topics, from strategic food reserve to genetic improvement of herds; V Integrated and oriented financing in the various prioritized activities, enabling the increase of production, strengthening competitiveness, with emphasis on the R$ 500 million provided by Banco do Nordeste to the Sheep Farmers of Rio Grande do Norte, as well as the financing of R$ 6.0 million to an anchor company in the Tourism sector in Ceará; V Continued strengthening of membership to associations, evidenced by means of the collective purchase of agricultural inputs and the collective sale of products, with the provision of new marketing channels and applications, in addition to the restructuring and creation of producer cooperatives, such as the implementation of the Cooperative of Milk Producers of Rio Vermelho (Cooperiver) in Minas Gerais, the creation of the Agricultural Cooperative of Integrated Producers of Goats and Sheep of the Northeast (Capricon) in Pernambuco; the emergence of the Cooperative of Aquaculture Farmers in Paraíba (Aquivale) and of the Cooperative of Farmers and Rural Producers of Hidrolândia, in the state of Ceará, among others; V Increase in the number of rural producers with agro-ecological production and the use of technology to improve production, such as the project for the development of software for traceability of organic production - BNB/Fundeci in Espírito Santo; V Improvement of the regional productive infrastructure, such as modernization of the Slaughterhouse in Pernambuco, installation of an Ice Factory (financed by BNB) in Sergipe, Implementation of Gray Water Reuse Systems in Rio Grande do Norte, among other improvements in other states where Prodeter’s activities are performed.

Prodeter and AgroNordeste Plan (Ministry of Agriculture, Livestock and Supply (“MAPA”) On October 1, 2019, the Ministry of Agriculture, Livestock and Supply (Mapa) launched AgroNordeste - an action plan to boost the economic, social and sustainable development of the region’s rural environment. Part of the program was implemented in 2019 with a total of 230 municipalities covered, across the nine states of the Northeast and part of Minas Gerais, divided into 12 territories.

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ANNUAL MANAGEMENT REPORT 2020

In 2020, Agronordeste meetings and actions took place virtually in most states in the Northeast and North of Minas Gerais, with an increase in the north of Espírito Santo. Today there are 16 territories and 297 municipalities benefiting from the Program. AgroNordeste is aimed at small and mid-sized producers that already sell part of the production, but still find it difficult to expand the business and generate more income and jobs in the region where they live. Led by MAPA, AgroNordeste is being developed in partnership with bodies related to referred to Ministry and institutions such as the Confederation of Agriculture and Livestock of Brazil (CNA)/ National Service of Rural Learning (Senar), the Brazilian Service of Support to Micro and Small Companies (Sebrae), the Organization of Brazilian Cooperatives (OCB), the National Electric Energy Agency (Aneel), Banco do Nordeste (BNB) and Banco do Brasil (BB). AgroNordeste is run by state committees, which coordinate related actions and partners, as well as mobilize state actors to carry out the Program. The committees are made up of representatives from MAPA, related entities and partner institutions. The committees are conducting the necessary surveys to define the projects to be developed in each of the 16 priority territories in the nine states of the Northeast, in addition to the north of Minas Gerais and the north of Espírito Santo, including 3 territories in Bahia, 2 territories in Ceará, Pernambuco and Minas Gerais and 1 territory in the other states. In the second six- month period of 2020, the last state committees, Bahia, Minas Gerais and Espirito Santo were established, totaling 11 State Committees. Banco do Nordeste, through Prodeter, is integrated with AgroNordeste, whose reference is the implementation of convergent actions. The production activities developed on Prodeter projects meet the activities prioritized in AgroNordeste. Accordingly, Prodeter contributes with 70 projects, 8 of which are Beekeeping projects, 1 Aquiculture project, 3 Poultry projects, 3 Cashew culture projects, 6 Food Crops (rice, beans and manioc) projects, 29 Cattle (milk) projects, 1 Sustainable Extraction project, 6 irrigated fruit (banana, melon, mango and watermelon) projects and 13 goat raising (milk, meat and skin) projects. Out of 11 planned State Coordination Committees, 8 were implemented in 2019 and 3 in 2020, all with the participation of BNB. The Bank participates in the preparation of territorial action plans, installation of local offices and activities focused on structuring and financing of priority economic activities.

Cooperation agreement between BNB and the Ministry of Regional Development (MDR) By reference to the implementation of convergent actions by BNB and the Ministry of Regional Development (MDR), whose purposes are focused on the development of the Region, a cooperation agreement was entered into between Banco do Nordeste and MDR in July 2018, in order to carry out joint actions involving the Routes of Integration Program and Prodeter. The Routes of National Integration Program consists in the formation of networks of local production arrangements that promote innovation and competitiveness of the projects belonging to it. The development of territorial intelligence through the identification and financing of projects of goat and sheep breeding, beekeeping, meliponiculture, dairy cattle, fruit, cocoa, circular economy, biodiversity and information/communication technology, within the scope of the FNE, in the signaled territories, also is part of the framework of the agreement. In 2020, the Prodeter team participated in the 03 business roundtables of Rota do Cordeiro [The goat and sheep farming route] promoted by the MDR, in partnership with the United Nations Food and Agriculture Organization (FAO). These business rounds promote vertical

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ANNUAL MANAGEMENT REPORT 2020 integration between processing companies and sheep and goat farmers, strengthening the productive chains of goat and sheep farming, providing income gains for those involved. The rounds involved the hubs of Cordeiro Potiguar, in Rio Grande do Norte, the Jacuípe Basin and Médio Rio das Contas in Bahia, and the Sertão do São Francisco hub, located in Pernambuco. In these 3 centers, Prodeter has a strong performance through Territorial Action Plans. Currently, the National Integration Routes Program has 28 hubs in BNB’s area of operation, divided into 8 productive activities, namely: goat and sheep raising (13), dairy cattle raising (1), fruit-growing (2), beekeeping (4), cocoa culture (1), circular economy (1), biodiversity (3) and information/communication technology - ICT (3). In 2020, the ICT Route- Sertão Digital was installed at Petrolina-Juazeiro stretch.

5. ECONOMIC AND FINANCIAL PERFORMANCE

5.1 BNB Total Assets

In 2020, Banco do Nordeste had an increase of R$ 3.19 billion in total assets as compared with the previous year, totaling a volume of R$ 61.82 billion. The Bank’s assets also include FNE available funds and funds committed to FNE’s loan transactions, i.e., relating to loans taken out, which are pending drawdown. The main sources of the increase in assets are observed in the following changes: a) reduction of FNE’s cash and cash equivalents around R$ 8.40 billion, as a result of the increase in disbursements for contracted transactions; b) increase in funding from the Open Market (R$ 7.18 billion), Interbank Deposit (R$ 831.1 million) and Savings Deposit (1.42 billion). In addition, the generation of profit (after deducting the expected provision of 25% of dividends) positively impacted assets in the amount of R$ 744.6 million (organic capital generation via profit or loss). Concerning the breakdown of the balance, there was a notable increase in the volume of credit transactions by 23.8% or R$ 2.25 billion, totaling a balance of R$ 11.68 billion (R$ 9.43 billion in Dec/19). At the end of the year, the balance of the Securities portfolio corresponded to R$ 38.83 billion.

5.2 Net Income

Recurring Net Income for year 2020, as shown in Table 5 below, reached R$ 1,441.1 million, representing an increase of 12.8% in relation to the R$ 1,277.2 million recorded in the same prior-year period. Return on average equity in the period was 23.8% p.a. Recurring income for year 2020 was mainly due to: a) growth of Crediamigo’s revenues in the amount of R$ 305.2 million; b) increase in Del Credere revenue in FNE credit transactions in the amount of R$ 342.4 million; and c) reduction of the Bank’s credit provision (including co-obligations with FNE) by R$ 96.0 million, reaching the amount of R$ 663.7 million in 2020, against R$ 759.7 million in 2019 (decrease of 12.6%). On the other hand, Net Income for the year 2020, when computing non-recurring income, reached R$ 1,019.2 million, which represented a reduction of 41.3% in relation to the R$ 1,736.7 million recorded in the same prior-year period. Operating Income reached R$1,551.1 million, representing a 36.4% growth compared with the R$2,440.7 million (restated) obtained in 2019. The return on average Equity for the period under these terms was 17.4% p.a.

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ANNUAL MANAGEMENT REPORT 2020

The factors that explain the main changes in non-recurring income in year 2020 in relation to P&L for 2019 are as follows: a) increase of additional provision (Prudential) in the amount of R$ 509.9 million; b) recognition of Impairment in securities investments in the amount of R$ 312.0 million; and c) Severance expenses with the Voluntary Dismissal Program (PID) in the amount of R$ 30.3 million. d) results from extraordinary credit recoveries effected in compliance with Laws Nos. 13340/17 and 13606/18, which totaled R$ 740.2 million, influenced P&L for 2019 and were not repeated in 2020.

Table 5 - Statement of Recurring Net Income (R$ million) Statement of Non-recurring Comprehensive 2019 2020 Var. R$ Var. % Income Recurring Net Income 1,277.2 1,441.1 163.9 12.8% ROE (p.a.) 27.6% 23.8% - - Non-Recurring P&L 775.9 (852.2) (1,628.1) (209.8%) Credit Recovery -Law No. 13340/13606 ¹ 740.2 - (740.2) (100.0%) Impairment of Securities (126.8) (312.0) (185.5) 146.3% Voluntary Dismissal Incentive Program (PID) (4.5) (30.3) (25.8) 573.3% Prudential Allowance - (509.9) (509.9) - Deferred Tax Assets (change in the CSLL rate 167.0 - (167.0) (100.0%) from 15% to 20%) IRPJ and CSLL taxes and other effects on non- (316.4) 430.3 746.8 (235.9%) recurring income (loss) Net income 1,736.7 1,019.2 (717.5) (41.3%) ¹ This includes article 29-A of Law No. 13606 - Ops Prodecer III Source: Banco do Nordeste, Control and Risk Board

5.3 Operational Efficiency

In 2020, Banco do Nordeste presented an operational efficiency ratio of 62.2%, characterized by the management of administrative expenses in relation to the entire margin of financial intermediation and service revenues, which represents a 9.9 percentage-point improvement compared with prior year. The drop in the efficiency ratio is observed because there was a significant increase in the financial margin of 2019 resulting from extraordinary credit recoveries, effected in compliance with Laws Nos. 13340/17 and 13606/18, which totaled R$ 740.2 million. Specifically, Personnel expenses increased by 8% in 2020 compared to 2019, partly explained by the salary adjustments granted as at September 2019 and September 2020 and in view of the Voluntary Dismissal Program implemented in 2020. As for other administrative expenses, there was an increase of 4.8% in the period. Worth mentioning the reduction in travel expenses in the country (decrease of R$ 8.1 million or 50.6%) and increase in the following items: R$ 63.9 million or 10.5% in expenses with Third Party Services (especially microcredit); R$ 16.6 million or 140.8% in Advertising and Publicity; and R$ 10.8 million or 28.4% in Financial System Services.

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ANNUAL MANAGEMENT REPORT 2020

5.4 Equity Banco do Nordeste recorded R$6,172.0 million in Equity at the end of 20120. At the Special General Meeting (SGM) held on 03.27.2020, the shareholders approved the capital increase by R$1,757.0 million, derived from allocation of Statutory Reserves - Reserve for Operational Margin, in the amount of R$ 1,472.6 million and reserve for Equalization of Supplementary Dividends in the amount of R$ 284.4 million, with no issue of shares. Accordingly, capital increased from R$3,813.0 million to R$5,569.9 million, represented by 86,371,464 common book-entry paid-up shares, with no par value, duly approved by the Central Bank of Brazil (Bacen).

5.5 Capital adequacy ratio

In relation to compliance with the regulations determined by the Central Bank of Brazil, concerning the capital structure of financial institutions, known as a whole by Basel III, Banco do Nordeste has complied with the minimum capital requirements stipulated, which guarantees the Bank a margin to continue expanding its business. At 12.31.2020, the Bank presented a Referential Equity Index (PR) of 13.10% (14.42% at 12.31.2019). Tier I index was 10.02% (10.44% at 12.31.2019) and Principal Capital Index was 8.82% (9.04% at 12.31.2019). Referential Equity (RE) totaled R$8,729.5 million (R$8,265.6 million at 12.31.2019), Tier I amounted to R$ 6,675.2 million (R$5,983.0 million at 12.31.2019) and Principal Capital amounted to R$5,879.3 million (R$5,182.0 million at 12.31.2019), whereas risk weighted assets (RWA amount) totaled R$66,623.7 million (R$57,311.9 million at 12.31.2019).

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ANNUAL MANAGEMENT REPORT 2020

Chart 6 - Equity Adequacy (R$ million) Specification 12/31/2019 12/3 1/2020 Referential Eq uity (RE) 8,265.6 8,729.5 . Tier I 5,983.0 6,675.2 . Principal Capital 5,181.9 5,879.3 . Complementary Capital 801.0 795.9 . Tier II 2,282.6 2,054.3 Risk -Weighted Assets (RWA) 57,311.9 66,623.7 IRRBB amount 21.5 113.6 Margin on Required Referential Equity 3,680.6 3,399.6 Margin on Required Referential Equity considering IRRBB 3,659.1 3,286.0 Margin on Tier I Required Referential Equity 2,544.3 2,677.8 Margin on Required Principal Capital 2,602.9 2,881.2 Required Additional Principal Capital (RWA * 1,25%) (*) 1,432.8 832.8 1,111.5 1,845.0 Margin on Required Additional Principal Capital Basel Indexes: . Principal Capital Index (minimum requirement of 4.5%) 9,04% 8,82% . Tier I index (minimum requirement of 6.0%) 10,44% 10,02% . Basel index (minimum requirement of 8,0%) 14,42% 13,10% . Basel index including IRRBB 14,35% 12,83% (*) In December 2019, minimum requiremen t was 2.5%. Source: Banco do Nordeste, Control and Risk Board

The decrease observed in the minimum capital requirements was due to the expansion of the RWA in a proportion higher than the increase in the RE, mostly represented by BNB’s co-obligations in FNE credit transactions. With regard specifically to the Reference Equity Index, it is worth mentioning the reduction in Tier II due to the application of the reducer in the amount of junior debts contracted with Fundo Constitucional de Financiamento do Nordeste (FNE), as determined by article29-A of CMN Resolution No. 4192/2013.

6. Performance of Operations

6.1 Volume of Transactions contracted

In 2020, Banco do Nordeste contracted a total amount of 5.1 million credit transactions, which totaled R$ 40.07 billion. Long-term financing, which includes rural, industrial, agro-industrial investments, infrastructure, trade and services accounted for 66.5% of the contracted resources, totaling R$ 26.66 billion in 653.1 thousand transactions. Rural area transactions had a greater share in the long-term contracted volume, with 33.9% (R$ 9.03 billion), followed by infrastructure, which obtained 24.9% of resources (R$ 6.64 billion), according to Chart 2, as follows:

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ANNUAL MANAGEMENT REPORT 2020

Chart 2 – Long-term financing contracts in 2020 by Economic Sector

Source: Banco do Nordeste, Control and Risk Board

Short-term loans to Urban Microcredit (Crediamigo), Direct Consumer Credit (CDC), Working Capital, Credit Card, Secured Account, Exchange and Discount totaled R$13.41 billion in 4.5 million transactions. Regarding short-term loans (Chart 3), which accounted for 33.5% of the volume taken out in 2020 (R$13.41 billion), the Crediamigo program is highlighted, which covered 90.3% of short-term loan transactions, reaching approximately R$12.11 billion, and Exchange operations that amounted to R$725.4 million (5.4%).

Chart 3 – Short-term loan transactions in 2020 by Product/Program

Source: Banco do Nordeste, Control and Risk Board

The contracting of resources from the Fundo Constitucional de Financiamento do Nordeste (FNE) reached 102.1% of the target established for 2020, totaling R$ 25.84 billion taken out in the year, of which R$ 24.79 billion refers to Long Term financing and R$ 1.05 billion to FNE-Crediamigo (short-term loans), as shown in Chart 4.

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Chart 4 - FNE contracting transactions in 2020 Target x Actual (R$ billion)

Source: Banco do Nordeste, Control and Risk Board

Fund raising At 12.31.2019, Banco do Nordeste recorded fund raising of R$10.47 billion, an increase of 19.7% compared with the balance presented in December 2019. Demand deposits amounted to R$853.2 million in December 2020, representing a 110.5% increase compared with 2019. Savings deposits totaled R$4.05 billion in December 2020, representing a 53.8% increase within 12 months. In December 2020, fund raising in time deposits totaled R$5.57 billion, a reduction of 2.4% compared with prior year, in line with the Bank’s fund raising strategy.

Table 7 - Fund raising in 2020 (R$ million)

Fund raising Dec 2019 Dec 2020 Variation

Demand Deposits 405,3 853,2 110,5%

Savings Deposits 2.633,8 4.050,7 53,8%

Time Deposits 5.711,4 5.573,2 - 2,4 %

Total 8.750,5 10.477,1 19,7 %

Source: Banco do Nordeste - Planning Board and Finance and Credit Board.

Distribution and Management of Investment Funds In 2020, net worth of investment funds reached R$9,272.9 million, representing an 8.8% increase in relation to 2019. In the same position, Banco do Nordeste managed 20 investment funds, with 95,063 shareholders, an increase of 7.2% in relation to the same period of 2019. Revenue from investment fund administration fee totaled R$64.3 million in 2020, representing a 13.7% increase in relation to prior year.

Northeast Investment Fund (Finor)

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Finor’ s Net Worth reached R$1,051.3 million in 2020, representing a 12.8% increase in relation to 2019, arising from the positive net inflow of funds from tax incentives and remuneration on funds deposited at the Bank and not yet invested. Revenue from administration fee on Finor portfolio totaled R$21.7 million in the same period, an increase of 14.2% in relation to 2019.

6.2 Performance by Segment

Family Farming The National Program for the Strengthening of Family Farming (Pronaf) is designed to encourage income generation while improving the use of family labor, through the financing of rural agricultural and non-agricultural activities and services developed in rural establishments or in nearby community areas. Its target audience is family farmers holding a Declaration of Aptitude to Pronaf (DAP), issued by entities accredited by the Secretariat of Family Farming (SAF). Banco do Nordeste is the main financial agent in the Northeast region of the National Program for Strengthening Family Farming (Pronaf), currently with an active portfolio of R$10.02 billion, and 1.9 million of transactions in December 2020. In 2020, the Bank’s results in the operation of Pronaf, including the operations carried out by the Rural Microcredit Program - Agroamigo, registered 583,258 financing transactions carried out, in the total amount of R$3.48 billion, which represents an increase of 12.9 % in the amount invested in relation to 2019. Of the amount invested, 76.47% comprises financing in the semiarid region.

National Rural Property Financing Program - PNCF Social The National Rural Property Financing Program - PNCF/Terra Brasil comprises three lines of financing, of which the Bank operates the PNCF Social, which is distinguished in its components: a) Subproject for Land Acquisition (SAT): financing proposal for the acquisition of rural property supported by reimbursable funds from the Land Fund and from the Agrarian Reform, which are transferred through a financing agreement. b) Subprojects for Basic Investment (SIB): basic and production infrastructure projects implemented by beneficiary rural workers with reimbursable funds from the Land Fund, included in the SAT financing agreement. c) Subproject for Community Investment (SIC): basic and production infrastructure projects carried out by rural workers’ associations constituted exclusively by beneficiaries of the PNCF Social line, with non-reimbursable funds from the Subprogram for Fighting Rural Poverty, transferred through a specific onlending agreement.

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In 2020, 679 Rural Property Credit transactions and SAT/SIB subprojects stood out, totaling R$ 51.9 million, representing an increase of 260.4% in relation to the amount invested in the previous year. Also worth highlighting is the execution of 15 onlending contracts in the SIC subproject, amounting to R$ 4.3 million. In turn, the active loan portfolio of Rural Property Credit at Banco do Nordeste in December 2020 had 11,260 transactions and a net balance of R$ 353.3 million.

Rural microentrepreneur Agroamigo serves family farmers through two types: Agroamigo Crescer, focused on customers of Pronaf Group B and Agroamigo Mais, to serve the other Pronaf groups, in transactions of up to R$20 thousand, except for Groups A and A/C, holders of a valid Pronaf Aptitude Declaration (DAP) and following the methodology of the National Oriented Productive Microcredit Program (PNMPO). In 2020, the Rural Microcredit Program recorded the contracting of 564,884 loans, totaling R$ 2.91 billion destined for family farming in the Region, which represents a 15.5% growth in relation to 2019. It is noteworthy that the Agroamigo Mais product made the amount of R$ 242.8 million available to the public served, an increase of 28% compared to 2019. The active portfolio of Agroamigo reached R$ 5.07 billion in December 2020, with 1.3 million of active clients, of which 76.17% are in the semi-arid region and 85% have an income of up to R$ 10,000/year, indicating the Program’s effectiveness in serving lower income families, in the driest area of Northeast Brazil.

Urban microentrepreneur Banco do Nordeste operates in the urban microfinance segment through the Crediamigo Program, which disbursed R$12.11 billion in 2020. Despite the current pandemic context caused by the Covid-19 virus, the Program has exceeded the established target of R$ 11.50 billion. The amount of disbursements reached 4.4 million transactions. At the end of 2020, Crediamigo had 2.2 million customers with active loans. Crediamigo’s operational capacity averaged 17.7 thousand disbursements per day. It is also noteworthy that the default, represented by loans in arrears for more than 90 days in relation to the active portfolio, stood at 0.84%, where the indicator falls comparatively with 2019. Another important participation of Crediamigo it concerns increase in use of banking services, since the Program served 374 thousand new customers with credit granting, opening new checking accounts throughout year 2020. The current accounts of Crediamigo customers are not subject to bank fee collection. Table 8 - Table 8 - Variation 2019 vs 2020 Overall Results

No. of No. of Disbursement - Number of No. of New Year Active Microcredit Default Year (in R$) Transactions Customers Customers Agents 2019 10,603,945,933 4,587,038 2,247,891 475,582 3,254 1.45% 2020 12,107,377,758 4,448,117 2,291,108 374,792 3,362 0,84% ∆% 14.2% -3.0% 1.9% -21.2% 3.3% -42.1% Source: Banco do Nordeste – Business Board 29

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Table 9 – Overall Results - 2018-2020 Series

Disbursement - No. of Active Year Year (in R$) Customers 2018 8,953,728,094.00 2,065,167 2019 10,603,945,933.41 2,247,891 2020 12,107,377,757.76 2,291,108 Source: Banco do Nordeste – Business Board

Micro and Small Enterprises (MSE) Banco do Nordeste’s Micro and Small Enterprises segment comprises microenterprises (ME) and small businesses (EPP) with annual gross sales of up to R$ 4.8 million. This segment reached a new historical record in the application of credit in 2020, having contracted R$ 4.61 billion in a total of 49,489 credit operations, encompassing the three economic sectors and the most diverse activities included in the National Classification of Economic Activities (Cnae). This figure marks a growth of 26.7% in relation to the transactions contracted in year 2019. Considering only FNE funds, the financed amount was R$4.31 billion, which represents an achievement of 107.9% of the goal established for the period. It is worth to highlight the overcoming of the FNE goal for MSE in all states where Banco do Nordeste operates. The trade segment was mostly benefited and served with R$2.24 billion in transactions carried out, corresponding to 52.1% of FNE funds invested by Banco do Nordeste in this segment. In the service segment, the amount of R$1,16 billion was invested, representing 27.1% of the total, while in the manufacturing segment R$784 million were invested, that is, 18.2% of the total funds. In the semi-arid region, one of the priority sub-areas under the National Policy on Regional Development (PNDR), 20,860 thousand loans were taken out only with FNE funds, representing 50.4% of total loan transactions carried out. Despite an atypical year due to the pandemic of the new coronavirus, Banco do Nordeste expanded its support to micro and small businesses in the Region, offering credit lines with adequate conditions to face the crisis, in addition to providing the automatic extension of the expected repayments for year 2020 of more than 62,000 credit transactions, in addition to offering a longer term (extension) so that the enterprises could recover after the pandemic. In this connection, Banco do Nordeste also operated the Pronampe credit line in an important initiative of the Federal Government to grant credit to Micro and Small Enterprises, with the contracting of R$ 206 million in 3,302 transactions. Also considering the need to comply with the social distancing guidelines due to the pandemic of the new coronavirus, Banco do Nordeste was concerned with offering several digital services, such as digital renegotiation, self-inspection, credit application for digital form with document upload and digital registration. In so doing, micro and small companies

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ANNUAL MANAGEMENT REPORT 2020 continued to have access to credit and service virtually, providing more convenience, speed and efficiency for business performed. The expressive figures described ratify Banco do Nordeste’s policy in the segment of micro and small enterprises, encouraging investment in innovation, in strengthening competitiveness and in increasing productivity, in compliance with the direction of the Federal Government.

Agribusiness Individuals As the main financial agent in the Region, BNB operates in Agribusiness to promote sustainable development, in order to promote increased production capacity, job creation and income improvement, through financial support for agricultural activities. To fulfill its mission, the Bank is also integrated with the public policies of the Federal Government for the Region. It is a leader in rural credit in its area of operation, operating in a different way and with innovative solutions for customers. To this end, it is attentive to Agribusiness scenarios and trends, adapting its products and services and aiming at making rural producers more competitive. It is important to highlight strategic partnerships with federations, business and institutional entities that have a strong presence in Agribusiness. In this regard, the cooperation agreement with the Confederation of Agriculture and Livestock of Brazil (CNA) is intended to assist producers through access to credit, technical and managerial assistance and the monitoring of enterprises. On the other hand, partnerships with supplier companies aim to establish actions for the modernization and mechanization of the sector. It should also be noted that Banco do Nordeste follows the guidelines of the Federal Government, and for Agribusiness specifically, it acts in tune with the Ministry of Regional Development and the Ministry of Agriculture, Livestock and Supply, in addition to enhancing actions along with other regional institutions, such as the Northeast Development Superintendence and the São Francisco Valley Development Company. Throughout 2020, Banco do Nordeste was also engaged in AgroNordeste Plan, a Federal Government plan launched by the Ministry of Agriculture, Livestock and Supply (MAPA), to support the organization of production chains oriented at their growth and sustainability; having invested, across its area of activity - in the Program territories -, the amount of R$ 3.37 billion. In this pandemic scenario, Banco do Nordeste is acting in Agribusiness following the guidelines, recommendations and determinations of the Ministry of Health and other authorities, resolving measures and actions in the pillars of credit, transparency, prevention and protection for employees and third parties, operation and customer service. In 2020, 7,372 transactions were carried out, amounting to R$3.17 billion with FNE funds, to serve rural producers in the Bank’s area of operation, of which R$1.67 billion with mini and small rural producers, distributed in 6,687 transactions that represented 53% of the amount invested. The amount taken out corresponds to 132.4% of the goal established for 2020. Of the amount taken out, 57% were intended for costing, 39% for investment and 4% for trade. In addition, Banco do Nordeste provided a new source of funds to meet the growing demand in Agribusiness, with an investment of more than R$ 565.6 million. In total, R$ 3.73 billion were invested in the entire operating area, a 21% increase compared to 2019. Several actions were carried out throughout the year to boost the Bank’s results, promoting simplification and reducing bureaucracy in processes, expanding the customer base, increasing profitability and expanding digital service in Agribusiness. Among these actions, the following stand out: App BNB Agro, which allows quick, easy and centralized access to 31

ANNUAL MANAGEMENT REPORT 2020 various services of the Bank and the Agenda of the Rural Producer with technical indicators that help the development of rural activities. In December 2020, Agribusiness Individuals assets (FNE) in the Bank, including micro and small producers, amounted to R$12.50 billion, involving 69.7 thousand transactions.

Individuals The Individuals segment operates with partners, employees of public or private companies, self-employed professionals, employees and retirees of associate companies. As of 2019, this segment also began to serve customers who are consumers of financial products and services, not classified in the other segments. As a result, this segment has become more comprehensive, covering any individual customer who is a consumer of financial products and services, such as: credit for consumer goods, student financing or credit for the generation of energy distributed in residential units (FNE Sol – Individuals [PF]) and/or financial investments. In 2020, through an agile and simplified and fully automated credit granting process, FNE Sol PF gained great prominence contracting 3,713 transactions amounting to R$ 112.9 million. The amount is equivalent to 141% of the target established for the year, and an increase of more than 30% when compared to the amount contracted in the previous year. The social relevance of these financing lines is also worth mentioning, which provide the generation of clean and sustainable energy for homes in the Region, including the fulfillment of the managerially distributed goal of R$ 10.0 million for the units that serve municipalities located within the municipalities in territories of AgroNordeste plan. Expansion of the student financing program (P-Fies) is also worth highlighting , in which R$ 11.7 million were taken out in transactions with funds exclusively from FNE. This amount represents 117% of the established goal and an increase of 58% in in relation to the amount contracted in 2019. Currently, there are agreements with 122 Sponsors of Higher Education Institutions that enable the program to be implemented in all states where the Bank operates. Government Government segment customers totaling 2,000 players are comprised of public administration agencies, both direct and indirect, with all their respective agencies, classified as non-dependent companies pertaining to indirect public administration, according to current legislation. At 12/31/2020, the segment accounted for more than R$ 723.0 million in fundraising, and an average balance of investments amounting to R$ 687.3 million, reaching 100.8% of the annual target established for the segment at the Bank’s Action 2020 Program. In 2020, there was an increase in the average balance of total funding of R$ 164.2 million, corresponding to an increase of 31.4% in the surveyed period. From the perspective of Investment Fund products, there was a growth of 51.4%, standing out the percentage of participation in fundraising carried out with customers of the Social Security Schemes (RPPS), having reached an average balance of R$ 351.0 million this year, corresponding to 74.1% of the volume applied by the segment at the Bank. This result reflects the strategy adopted since the end of 2017, when Banco do Nordeste started improving and intensifying the process of capturing and monitoring the RPPS applications in the Bank’s Investment Funds. This strategy has enabled the expansion of the balance of RPPS in BNB from R$ 197.1 million in January/2018 to R$ 372.0 million in December/2020, i.e. an expansion close to 90% in 3 years. Lastly, the referred to segment has total assets of R$ 498.0 million, represented by transactions contracted with the states of the Northeast and north of the states of Minas Gerais and Espírito Santo, under the Tourism Development Program (Prodetur).

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ANNUAL MANAGEMENT REPORT 2020

Business The Business segment serves small, medium and large-sized companies, covering legal entities with annual revenues from R$4.8 million to R$400.0 million. In 2020, the Bank reached 13,269 customers with a profile of the business segment, a 14.54% increase compared with the figure at the end of 2019. These companies contracted R$ 5.46 billion of FNE transactions, except for infrastructure, which represents a reduction of only 4.88% compared to 2019 considering the time of the pandemic and the reduction in the amortization of resources from the FNE source, causing the Bank to restrict certain types of transactions with these customers. It is important to note that there was a 22% growth in the operations of small-medium and medium-sized customers with funds from FNE considering the clients of the segment portfolios. With regard to infrastructure operations, the Business segment contracted R$ 0.24 billion in FNE, only 30.1% of that carried out in 2019, due to the allocation of infrastructure operations to the Corporate segment.

Corporate The Corporate segment comprises large companies with gross revenue exceeding R$ 400.0 million, as well as companies with syndicated operations or in infrastructure, regardless of revenue. The service of this niche market is in charge of the 14 service platforms, distributed in the 11 states where the Bank operates. At the end of year 2020, the Corporate portfolios had a total of 1,046 active customers, which results in a growth of 20.5% vis-à-vis the number of customers at the end of 2019. In 2020, the Corporate segment contracted R$ 7.68 billion in transactions with FNE resources (including export-related transactions from Nordeste Exportação), representing 60.1% of the volume contracted in the previous year. Of the amount taken out by the segment, R$6.33 billion were in Infrastructure transactions, focusing on initiatives in structuring areas for regional development, such as power generation, mainly wind and photovoltaic power, distribution and transmission of energy, basic sanitation and logistics. The reduction in contracted amounts is largely due to the Covid-19 pandemic, which suspended several investment projects by large companies, mostly due to the uncertainties that hovered at the beginning of the pandemic. In addition, it was necessary to suspend the amortization of existing operations, providing customers with the necessary breathing space to face the crisis. The suspension of amortization payments reduced the re-entry of funds and, consequently, jeopardized the budget initially foreseen for the segment. Despite the reduction in contracted amounts, the Corporate segment disbursed R$ 8.87 billion, which corresponds to 34.5% of the amounts disbursed by the Bank, totaling 124.4% of its expected target. In addition, the segment customers contracted R$ 1.07 billion in short-term transactions, including foreign exchange ones, resulting in a 46.3% growth compared to year 2019.

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6.3 Credit recovery In 2020, R$ 3,00 billion overdue amounts receivable, recorded as loss and/or overdue for over 60 days were regularized, among which R$ 410 million were received in cash. This amount comprised 154,471 regularized FNE-sourced transactions and 6,439 regularized non-FNE-sourced transactions. The regularization volume showed renegotiations lower than in 2019, in view of the end of Law no. 13340/2016 effectiveness, which allowed settlement or renegotiation of transactions contracted until 2011 until the end of that year. Included in this scenario is the decrease in performance and economic impacts of social distancing measures resulting from the Covid-19 pandemic, which strongly affected companies in the Region due to the health measures adopted by health agencies. In order to face the damaging effects on the economy, measures were taken with the implementation by the Bank of the “Emergency Debt Renegotiation - Negative Impacts of Covid 19” and the publication of CMN Resolutions Nos. 4798 and 4801, aimed at mitigating operational and financial difficulties caused by the pandemic, highlighting the regularization of transactions carried out digitally and automatically. The following table contains the number of transactions and amounts settled in 2019 and 2020: Table 10 – Number of Transactions and Debt Settlement Amounts (R$ thousand)

2019 2020

Number of Number of Amount Amount Transactions Transactions 157.024 16.203.350 160.910 3.000.000 Source: Banco do Nordeste – Financial and Loan Office

With the adaptation of the digital service channel in March/2020 to serve customers impacted by the COVID-19 pandemic, BNB hit record numbers of renegotiations in this way, reaching 29,972 proposals that were processed over the digital system.

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7. CORPORATE GOVERNANCE Governance in the public sector is understood as “a set of mechanisms of leadership, strategy and control put into practice to assess, direct and monitor management, with a view to conducting public policies and providing services of interest to society” (available at: http://www.tcu.gov.br/governanca ). In this regard, Banco do Nordeste, as an entity of the Indirect Public Administration, maintains in its Corporate Governance structure boards that aim to evaluate, direct and monitor its management. The Board of Directors, assisted by the Audit Committee, the Compensation and Eligibility Committee, the Capital and Risk Committee, the Internal Audit and Ombudsman, the Executive Board and the Ethics Committee are present in this order. The Bank’s Corporate Governance structure, available at https://www.bnb.gov.br/estrutura- organizacional , is as follows: V General Meeting; V Board of Directors; V Executive Board; V Supervisory Board; V Audit Committee; V Compensation and Eligibility Committee V Risk and Capital Committee V Internal Audit V Ombudsman V Internal Controls and Compliance V Ethics Committee; and V External audit. The Bank’s governance structure is defined in its Articles of Incorporation, which is the instrument that governs the social relationships within publicly-held entities, available on the Internet, at http://www.bnb.gov.br/estatuto-social . In addition to its Charter, the Bank has the Internal Rules of Procedures of the Executive Board, the Supervisory Board and the Audit Committee, as a guide for the actions and practices of their Corporate Bodies. These documents are in line with other existing regulations and laws and are important corporate governance instruments to the extent that they strengthen the Bank’s decision-making process and its administrative and operational dynamics. Institutional relations established by the Bank are subject to the Code of Ethical Conduct of Banco do Nordeste, available on the internet for all interested parties. This code stands out as the main guiding instrument for business ethics at the Bank. In line with two of the Bank’s basic values, access and transparency of information, its organizational architecture is also stated in applicable standards, including its organizational units, reporting levels, duties, organizational structure, and distribution of the number of jobs. The Bank has management mechanisms that adopt the best corporate governance practices, ensuring effectiveness and independence in compliance, managing risks and internal controls. Internally, the decision making policy takes place in a collegial way in all its units with the purpose of ensuring the strengthening of and providing greater security to the governance of the Bank. For this purpose, committees, subcommittees and commissions at a strategic level are used to mitigate the risks underlying the decision-making process.

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7.1 Audit The purpose of BNB Auditing Supervisory Office is to evaluate the processes of risk management and governance, in order to add value to the organization and reports the effectiveness of the internal control system to senior management. This office uses the process audit methodology focused on risk, by means of which this office has obtained a better understanding of corporate processes, thus contributing to improvement of the control structures, in an independent and objective manner. In year 2020, the following audit works in the period analyzed are to be highlighted: Credit Management - CMN Resolution no. 4798; Assistance Fund for Employees of Banco do Nordeste (Camed); Banco do Nordeste Employees’ Pension Fund (Capef); Accounting; Internal controls; Special Agreements, Agreements and Adjustments; Fundo Constitucional de Financiamento do Nordeste (FNE); Investment Funds (Finor); Capital Management; Treasury Resource Management; Risk Management - Impacts of the Pandemic; Integrated Risk Management; Corporate Governance; Accountability – Workers’ Assistance Fund (FAT); Integrity Program; Credit Recovery Out-of-court Collection; Cybersecurity.

7.2 Internal controls Banco do Nordeste’s Internal Control Structure is based on good corporate governance practices; the integrity of people and their ethical values; commitment of its employees to act with the focus upon business goals and transparency; organizational structure that ensures the segregation of duties, and that allows the adequate delegation of authority and responsibilities; in addition to the policies and practices of risk management, compliance and information security. The objectives of the Internal Controls Structure at BNB are: a) maintaining the risks inherent in the Bank’s processes, products, services and systems within the limits of the current risk management policies; b) testing and evaluating the Bank's adherence to the legal framework, the infra-legal regulation, the recommendations of the supervisory bodies and, when applicable, the codes of ethics and conduct; c) monitoring the flow of information to ensure consistency in decision-making and accountability; and d) contributing to the optimization of business results. In the management plan, the Collegiate Board is the managing body of the Internal Control Structure, and the Chief Control and Risk Officer is responsible before the national monetary authority for risk management, internal controls and compliance. Decision-making and/or evaluation committees are also essential components of the control and risk management structure, which are specialized in a variety of subjects. Banco do Nordeste’s Ethics Committee also plays an important role in supporting the Structure of Internal Controls, since its function is to promote the Code of Ethical, Conduct and Integrity, represent the citizen (whether or not a customer) within the business environment, including mediate conflicts and operate for the improvement of internal processes in the Institution. The segregation of duties is also another differential. It is applied in order to comply with the principles and good practices of corporate governance and regulatory requirements, without prejudice to the integration of processes, and it should be noted that: a) the management of third-party resources is totally separated from the Bank’s resource management actions; b) credit operations control activities are carried out in a different environment, independent of the business area; c) the risk assessment functions are segregated from those related to the granting of credit; d) the preparation/renewal of customer master records, documentation supporting proposals for granting and renegotiating credits are separated from the business area; e) the Bank's treasury activities are separate from the investment fund management

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ANNUAL MANAGEMENT REPORT 2020 activities; and f) activities to create models and methods for managing credit, market, liquidity and operational risks are separate from business management activities. Controllership and accounting activities are also segregated, permitting a better distribution of the roles of controllership, tax planning and budgeting, as well as better adaptation of activities related to the accounting and financial management of FNE resources. Also integrating the Internal Controls Structure of Banco do Nordeste is the set of policies, rules and procedures serving to formalize administrative decisions and actions, as well as guidance for the execution of activities at different levels of the organization and that are available to wide access for the Bank’s employees. By preparing and publishing since 2018 the Policies on Related Parties, Whistleblower Protection, Disclosure of Information on Material Fact Notice and Equity Interests, Banco do Nordeste further reinforced its commitment to governance, compliance of its processes and with the integrity of its operations with its body of employees, the competent authorities, with its customers and with society as a whole. The BNB’s compliance indicator reached 98.05% in 2020. The result confirms the Bank management’s business orientation to conduct business with integrity and on a sustainable and profitable manner. The set of all the Bank’s policies and guidelines is premised on transparency with shareholders, the market and society, compliance with the laws, rules and regulations of the national financial system and the institutional management carried out on models that ensure the fulfillment of the mission, the continuity of the organization and the generation of favorable and sustainable results.

8. RISK MANAGEMENT

Risk Management at Banco do Nordeste do Brasil is based on its Corporate Policy and the Risk Appetite Statement (RAS), documents defined by the Board of Directors and whose construction is supported by the Institution’s Strategic Planning and Capital Plan. Through them, the guidelines for activities related to the continuous and integrated management of risks are consolidated, as considered relevant by Banco do Nordeste due to their potential impact on the achievement of the Bank’s strategic objectives, namely: risk concerning credit, operational, market, interest rate change of the bank portfolio (IRRBB), liquidity, socio- environmental, strategic, reputational, actuarial, cyber, models, capital and compliance. The guidelines and strategies are listed in Table 1 and the Bank’s risk management structure in Chart 1.

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Table 1 - Overview of Banco do Nordeste’s Risk Management Policy

General Guidelines for Risk Management Main Strategies for Risk Management

Alignment with the Bank’s mission and strategic Compliance with legal and internal objectives aspects

Treat business processes as an essential and Respect for corporate governance integrated part, in a transparent and inclusive manner, under the basic responsibility of all managers, with the primary objective of creating value for the Bank

Understanding that the risks are interrelated, so that a Respect for transparency loss event caused by one type of risk can aggravate the other types; likewise, the mitigation of one risk can impact other(s)

Continuous monitoring of risks Use of collegiate decision-making

Periodic improvement of the Corporate Risk Compliance with global risk Management Policy, with annual review and approval exposure by the Board of Directors

Maintaining risk exposure in accordance with the levels Adoption of vision by processes set out in the Risk Appetite Statement (RAS)

Adoption of a dynamic and prospective stance Risk analysis in Products and concerning risk management with the ability to react to Processes changes in a timely manner

Adoption of the three-line structure Rendering business conditions compatible

Source: Banco do Nordeste, Control and Risk Board

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Chart 1 – BNB’s Risk Management Structure

COMITÊ DE AUDITORIA CONSELHO DE ADMINISTRAÇÃO

SUPERINTENDÊNCIA DE AUDITORIA

COMITÊ DE RISCOS E DE CAPITAL DIRETORIA EXECUTIVA

COMITÊ DE GESTÃO DE RISCOS E DE CAPITAL

DIRETORIA DE CONTROLE E RISCO

SUPERINTENDÊNCIA DE SUPERINTENDÊNCIA DE GESTÃO DE RISCOS, CONTROLES INTERNOS, CONTROLADORIA COMPLIANCE E SEGURANÇA

AMBIENTE DE AMBIENTE DE AMBIENTE DE AMBIENTE DE AMBIENTE DE GESTÃO CONTROLE AMBIENTE DE AMBIENTE DE CONTROLES GESTÃO SEGURANÇA ORÇAMENTÁRIA E FINANC. DE OP. DE CONTABILIDADE GESTÃO DE RISCOS INTERNOS E TRIBUTÁRIA CORPORATIVA DE CAPITAL CRÉDITO COMPLIANCE

UNIDADES GESTORAS DE PRODUTOS, SERVIÇOS E PROCESSOS EX POSTAS A RISCOS DE CRÉDITO, MERCADO, LIQUIDEZ, OPERACIONAL E SOCIOAMBIENTAL

GESTÃO DOS MODELAGEM DE RISCOS DE GESTÃO DO RISCO GESTÃO DO RISCO RISCOS MERCADO E DE DE CRÉDITO OPERACIONAL LIQUIDEZ

Source: Banco do Nordeste, Control and Risk Board

The organizational structure of risk management is unified at the strategic level, and specific at the level of the business and support units, observing the principle of segregation of activities and the adoption of the so-called 3-line vision, being compatible with the level of risk appetite , the nature and complexity of the Bank’s products, services, activities, processes and systems, supporting the Company’s governance as an integral part of its Internal Controls System and operating as an instrument that helps achieve the planned strategic objectives. In risk management, the following procedures stand out: Credit risk: V Use of its own credit risk management model, including risk classification of credit transactions, calculation and accounting of allowance for loan losses; V Monitoring of maximum exposure limits per client in the public and private sectors; V Monitoring of loan portfolio concentration risks; V Stress testing of the loan portfolio; V Monitoring the credit risk of investment funds portfolio under the Bank’s management; V Development of the new S253 system (Customer Risk Assessment - AVRC), intended to assess and manage customers likely to undergo that assessment, including Financial Institutions; and V Development of a new module to automate calculation of the Rural Producer in the S625 system (Integrated Assessment and Management of Limits - Agile ), eliminating the need for approval by levels of authority.

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Operational risk: V Identification of operational risks in the Bank’s processes; V Application of Risk and Control Self-Assessment in the Bank’s business and support processes; V Qualification of operating loss events pursuant to current legislation and the Organizational Architecture; V Calculation of the Capital Allocation Portion - Basic Approach (BIA); V Provision and Monitoring of Operational Risk Management Course at CVA; and V Monitoring the Implementation of the Procedures Plan on mitigating initiatives for operating risks in the Bank’s processes.

Market and Liquidity Risk: V Bank’s amount of exposures to market risk; V Part of market risks pertaining to risk-weighted assets (RWA) and the interest rate risk in the banking book (IRRBB), used to calculate the minimum capital requirements; V Bank’s liquidity indicators; V Daily control over exposures and limits of funds managed by the Treasury department; V Prudential adjustments to the pricing of Banco do Nordeste’s assets, pursuant to Central Bank’s regulations; V Monitoring of market and liquidity risks of investment fund portfolios under management of Banco do Nordeste; and V Stress testing, sensitivity analysis and compliance tests of the models used in the management of market and liquidity risks;

Socio-environmental Risk: V Compliance with current federal, state and local legislation related to socio- environmental aspects; V Setting of a clearly stated social and environmental responsibility policy that is part of the Bank’s normative framework; and V Adoption of preventive actions defined in the processes and products that are subject to socio-environmental risk as mechanisms to mitigate this risk. Strategic Risk: V Identification and analysis of events that may impact the Bank’s sustainability, making it difficult or impracticable to achieve the strategic objectives set in the short, medium or long term; V Involvement of top management; and V Estimated impact of the consequences of the events. Operational risk: V Monitoring of rating agency assessments; V Monitoring of news about the Bank in different media; V Conducting customer satisfaction surveys; and

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V Follow-up of complaints, whistleblowing events, suggestions and compliments collected through the customer relationship center and information to citizens and the Ombudsman.

Compliance Risk: V Performance of compliance tests in the Bank branches and its processes. V Use of the three-line model, where: o The first line is the responsibility of the process and/or product manager; o The second line is the responsibility of the Bank’s compliance unit, which produces reports for senior management; and o The third line encompasses the Bank’s Internal Audit activities.

In 2020, the Bank implemented various measures to comply with the legislation in force and in line with Corporate Governance and Risk Management best practices. These measures include: V Review of the Bank’s Risk Management and Capital structure; V A restated Bank’s Risk Appetite Statement (RAS); V A restated Corporate Risk Management Policy in compliance with the provisions set forth in the new legislation in force and in the RAS; V Review of the Information Disclosure Policy regarding risk and capital management; V Review of the Investment Funds’ Risk Management Policy; V Update of regulations on Stress Test Programs and Liquidity Contingency Plan. Still this year, due to the Covid-19 pandemic, the National Monetary Council (CMN) issued resolutions to facilitate credit and minimize the effects of the pandemic on the National Financial System. These measures encompassed, among other actions, postponement of maturity of installments of credit transactions, temporary alteration of criteria for the classification of transactions as bad assets and reclassification of transactions to risk levels prior to the advent of the pandemic; part of these measures include postponement until 12/31/2020. In view of this scenario and as a way of safeguarding its assets, Banco do Nordeste set up prudential allowance for loan losses (PCLD) in the two six-month periods of 2020.

9. RELATIONSHIPS

9.1 Customer relationship

Banco do Nordeste follows its customer relationship policy in light of Resolution No. 4539/2016 of the National Monetary Council, aiming at providing better customer service and consolidating institutional image of credibility, security and competence. The Customer Relationship and Citizen Information Center held 5,486,674 thousand calls in 2020, of which: 436,362 telephone calls (SAC and CAC); 85,266 thousand through multimedia channels (SIC, email, social networks, consumidor.gov, complaints sites); 24,136 copies of payment slips issued, at the customer request; 4,940,910 active services including: business guidance for businesses, credit and insurance administration charges, monitoring

41

ANNUAL MANAGEMENT REPORT 2020 of business and relationship opportunities, banking security monitoring, insurance renewal, satisfaction surveys and institutional campaigns. It should be noticed that the Citizen Information Service (SIC), created by the Access to Information Law, provides active transparency services (available at http://www.bnb.gov.br/acesso-a-informacao) and passive transparency services (available at http://www.bnb.gov.br/acesso-a-informacao/servico-de-informacao-ao-cidadao-sic).

Ombudsman Banco do Nordeste’s Ombudsman's Office (BNB) aims to be recognized as an inducer of excellence in service to society, a partner in promoting improvements in processes, products and services, and a reference in bank ombudsman services. The Ombudsman’s service channel represents the interests of the citizen, acting impartially in the intermediation of possible conflicts, and preventively working on points that must be improved so that the Bank’s service and relationship with society are increasingly better. In 2020, 9,549 calls were recorded, including complaints, whistleblowing events, praises, suggestions and information. 100% of the complaints were answered within the legal deadline and the Unit reached a record rate of 94% of these cases, within 5 business days. It should be noted that the Ombudsman of Banco do Nordeste has been obtaining rates higher than that established in CMN Resolution No. 4860/2020. Included to this fact is the commitment of Banco do Nordeste to attend to at least 50% of the complaints received within 5 working days (Sarb 001/2008, from the Banking Self-Regulation System, from the Brazilian Federation of Banks - Febraban). Banco do Nordeste reached 1st place in the Ombudsman Quality Ranking of financial institutions of the Central Bank of Brazil (Bacen), in the 4 th quarter of 2020. The ranking aims to provide society with qualitative information on the performance of the ombudsmen of financial institutions. Furthermore, BNB is the 2 nd financial institution with the lowest number of complaints deemed valid in 2020 in the new segmentation of Bacen, considering the 10 (ten) largest financial institutions in number of clients. The ranking is made up from the demands registered by the public and considers commercial, multiple, cooperative, investment banks, branches of foreign banks, savings and loans banks, credit, financing and investment companies (SCFI) and consortium administrators. For 2021, in search of constant improvement, we identified certain challenges, such as: a) constant monitoring of quality and quantity indicators, b) attention to user experience, c) decentralized service, d) reduction in service time, e) increasingly present innovation, f) Internal Ombudsman, and g) use of social networks for comprehensive servicing.

9.2 Digital Experience, and Information and Communication Technology (ICT) In 2020, the Bank's Information Technology (IT) Oversight made available various products and services that made the Bank even more digital, considerably improving operational efficiency by automating various processes and providing a better customer experience upon using applications on web and mobile channels. Among the set of products and services available, the following stand out: V Development of a simulator for management of customer portfolios that allows the manager to simulate the impact of new business on the portfolio; V Implementation of the PJ (legal entities) token in Internet Banking to authorize transactions for Legal Entities, eliminating the use of the password cards; 42

ANNUAL MANAGEMENT REPORT 2020

V Implementation of the PIX Instant Payment System, which allows mobile-based transfers and payments with greater speed in transactions. In addition, to improve banking automation and digitalization of services, the following actions were taken: V Implementation of improvements in the SGR (Receivables Management System) with systems integration, so that the SGR fees are now charged by BNB fee charge system, also preventing the customer’s account from stating balances due; V Modernization of Balance and Statement transactions in Internet Banking and Mobile Banking, with increased availability and improved maintenance of these services; V Evolution of the S130-SLC (Card Banking Domicile System), approved by CIP (Interbank Payment Chamber) and making available the Customer Receivables Schedule Service. Within the scope of the credit and microcredit area, the following actions are to be highlighted: V Availability of the BNB Agronegócio (Agribusiness) App, including features such as ‘Rural Producer Agenda’, which allows the user to manage their properties, recording expenses, revenues and assessing profitability, in addition to an agricultural calculator, credit facilities, and AgroInforma newsletter, among other features; V Implementation of improvements in Sinc (Integrated Credit System) with adjustments in the integration with the S565 for the renegotiation proposals and performance of Crediamigo – FNE transactions, in addition to the expansion of the Mobile Vote for all Units; V Implementation of improvements in the S476 (Rural Microcredit System) with a significant reduction in the number of incidents from the availability of definitive corrections, and correction in the issue of a credit instruments in certain cases; V Evolution of the S565 (Management Monitoring System), generating 5,738 proposals for credit, representing an increase in the system use by 8,000%.Actions were also taken in response to the pandemic, such as: V 4798/20) and Integration with the Electronic Management of Documents (GED) System for automatic sending of renegotiated transactions; V Extension of CDC transactions in Siac (Integrated Credit Management System) with the automatic renegotiation of approximately 90 thousand transactions in municipalities under the Public Disaster Decree (Res. 4798/20) and Integration with the Electronic Management of Documents (GED) System for automatic sending of renegotiated transactions; V Evolution of the Specialized Credit Platform that allows the BNB client to request the Emergency FNE Credit over the Internet, with no need to go to a branch; V Implementation of the Customer Monitoring Panel under the S567 system (Specialized Credit Platform);

V Credit contracts supported by the Transactions Guarantee Fund (FGO) rendered feasible, within the scope of the National Support Program for Micro and Small Enterprises (Pronampe); V Implementation of improvements in the S160 system (Internet Banking) with the Cooperation Agreement – BNB / Camed for health (Covid-19); V Adequacy of the Debt Renegotiation Proposal - Digital system (Bacen Resolution No. 4782/2020, allowing digital debt renegotiation, avoiding customers having to go to the branch physically.

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In the context of the administrative area, the following items stand out: V Implementation of the new platform for the Internal Competition process (“Promote yourself”), allowing the registration at any time for any commissioned functions; and availability of BI panels with managerial information to monitor credit renegotiations; V Availability of ConverGENTE - a new way of evaluating employees’ performance, making it possible to register individual goals that will be monitored on a quarterly basis with semiannual closing; V Availability of the electronic signature that provides digital signature services linked to GED system, with no need for paperwork, and incorporating a digital certificate. In addition, as a result of the pandemic, Banco do Nordeste’s IT had to structure teleworking with the implementation of several actions, such as:

V Availability and monitoring of the computing environment including links, VPN, etc.; V Provision of tools such as Office 365, Teams and Planner, with improvement of the communication infrastructure; V Implementation of new functionalities in SIP - S849 (Integrated Personnel System) that made it possible to control adherence to telework, given the need to remove some employees to minimize the impacts of the pandemic on BNB.

9.3 Relationship with the Society The sponsorship actions conciliate Federal Government guidelines with institutional and market interests, aiming to broaden relationships, promote products, increase business, and strengthen Banco do Nordeste brand. In 2020, R$ 4.5 million was allocated to 133 projects, of which 22 were cultural and 111 were institutional-marketing in nature. The investment in sponsorship projects, whose sources were tax incentive laws corresponded to 35,4% of the total funds approved and invested. Banco do Nordeste understands the culture as part of the integral policy to the development of the Northeast region. In this sense, it adopts the guidelines of democratization of access to artistic-cultural manifestations, support to production, fruition, circulation and artistic-cultural formation. Its three cultural centers (Fortaleza and Cariri, in Ceará state, and in Sousa, in Paraíba state) offer to the community a democratic space of accessibility to the various areas of the arts, through a free artistic and cultural agenda. Therefore, the Bank promotes the audience training and moves cultural professionals at the local, regional and national levels. As a result of measures regulated by state and municipal decrees due to the Coronavirus pandemic, the Cultural Centers offered face-to-face activities until March/2020 and reached an audience of 76 thousand people, of whom 16 thousand participated in 292 activities in performing arts, visual arts , cinema, literature, music, training workshop, arts for children and cultural tradition. The libraries installed in equipment reached the mark of 47 thousand visitors, as stated in Table 11.

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ANNUAL MANAGEMENT REPORT 2020

Table 11 - Activities and Audience of Cultural Centers in 2020 Fortaleza Cariri Sousa Total Artistic Languages (Areas) No. of No. of No. of No. of No. of No. of No. of No. of Activities attendees Activities attendees Activities attendees Activities attendees

Cultural Heritage 4 120 3 160 0 0 7 280

Audiovisual 10 240 31 822 27 2,004 68 3,066

Performing Arts 20 840 18 1,050 13 1,055 51 2,945

Visual Arts 2 420 11 152 11 384 24 956

Music 26 2,605 17 1,740 21 2,225 64 6,570

Humanities 16 335 24 489 38 1,848 78 2,672

Total Audience per 78 4,560 104 4,413 110 7,516 292 16,489 Area

Total Visitors 32,284 19,465 24,559 76,308

Library Users 13,002 14,940 19,727 47,669

Source: Banco do Nordeste – Marketing and Communications Supervisory Office As of April/2020, with the suspension of face-to-face activities as a result of the pandemic, virtual programming began on the YouTube channel of Banco do Nordeste Cultural Center. Table 12 - Metrics on Youtube at Centro Cultural Banco do Nordeste in 2020 CCBNB Youtube Channel Year2020

Number of Views 156,700

Exhibition Hours 13,200

Number of New Subscribers 2,478

Total 172,378

Source: Banco do Nordeste – Marketing and Communications Supervisory Office In 2020, the channel had almost 2,500 new subscriptions and obtained 157,000 views, which totals about 13,200 hours of free cultural activities, as shown in Table 12.

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9.4 Relationship with employees Banco do Nordeste ended year 2020 with 6,684 employees, 127 middle-level scholarship holders, 590 upper-level scholarship holders and 542 young apprentices. Due to the implementation of the Voluntary Dismissal Incentive Program (PID), 133 employees were dismissed, providing renewal of staff. Seventy-six (76) calls were made to candidates arising from the competition held in 2018, of which 58 for the positions of Banking Analyst (middle level) and 18 for Technical Expert - Systems Analyst (upper level). Of these 6,684 employees, in terms of workforce by gender the Bank has 33% of female employees and 67% of male employees. As regards top management, middle management and coordination positions, 28% of these positions are held by women and 72% are held by men. This proportionality demonstrates the Bank’s commitment to valuing women in the labor market, which, due to its relevance, is one of the eight ‘Millennium Goals’ established by the United Nations (UN) to improve peoples’ general living conditions. In 2020, 270 internal selection processes were carried out through the “Promote yourself” platform, resulting in 226 selected candidates and 185 units provided. Adjustments were made to the Promotions cycle of the Bank’s employees, changing its periodicity to June of each year, providing an improvement in integration with the Bank’s Performance Evaluation and Action Program. In 2020, 4,801 employees were promoted. The percentage of Bank employees with higher education, specialization, master's and doctoral degrees is 84.59%, an index that has been maintained in recent years, with an increase in the number of undergraduates for graduates from 40.69% to 48.92 % in the last 3 years. “ConverGENTE” - a new Performance Evaluation model - was developed, with the setting of individual goals for the employee and integration with the result of the units’ Action Program. With respect to the employee recognition policy, 1,418 buttons were delivered referring to the “Comenda Escudo BNB” title, established based on the length of service provided to the Bank. From the perspective of Health Policy and Quality of Life at Work, the following were implemented: contingency protocol for preventing infection by Covid-19, the “Mexa-se” ['Get active' ]program, to encourage the practice of physical activity, and the “De bem com você mesmo” [‘Feel good’] program, aimed at preventing mental illness. “De bem com você mesmo” program is a service that focuses on the employees’ mental health, carried out by means of qualified hearing from psychology professionals, either by telephone or in person. Within the program, 3,508 employees were served in 2020. As for Coronavirus prevention actions, the Preventive and Control Actions Management Committee, responsible for analyzing and deciding on strategies to combat Covid-19, was set up, observing the Banco do Nordeste Business Continuity Plan. Holidays were anticipated, and working hours of employees were reduced from 8 to 6 hours with alternating work shifts. Monitored Teleworking was implemented, the Banco do Nordeste Contingency Protocol was created, preventive actions against the New Coronavirus were carried out, among other measures, such as distribution of masks, sanitizing alcohol, faceshield, installation of acrylic screen in workstations, temperature measurement, use of disposable cups and materials, reinforcement in cleaning the units and specialized disinfection when a case of Covid-19 is confirmed in the unit. In 2020, the Corporate University of Banco do Nordeste structured an excellence program for leaders, involving current and potential managing officers - Management Excellence Program (PEG), offering 1,750 training opportunities for the formation of top and middle management.

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ANNUAL MANAGEMENT REPORT 2020

The Bank contracted training for all employees, enabling them to change their behavior and culture - “Digital Transformation Path”, - so that BNB remains increasingly aligned with new trends in this matter. Up to December 31, 2020, 3,392 vacancies were provided, across employees at the strategic, tactical and operational levels. The Bank’s corporate university also supports educational development through sponsorship for Undergraduate, Specialization, Master and Doctorate courses. The Formal Education segment is intended to raise the educational level of Banco do Nordeste employees. Annually, the Corporate University publishes the forecast of the number of opportunities that will be offered for the granting of investment-education in courses held in educational institutions accredited by the Ministry of Education (MEC), distributed by places available and areas of interest to Banco do Nordeste. Over the years, more than 2,600 sponsorships have been offered, starting in 2020 with 249 in progress. According to new guidelines, In year 2020, 130 opportunities were taken in graduate courses for Bank employees, at a renowned university in the market. For this process, the Pontifical Catholic University of Minas Gerais (PUC Minas) was chosen, a recognized institution that offers graduate courses online. Also worth mentioning is the production of online and live events on the Teams platform, where employees can attend presentations directly from their workplaces on topics of interest to the branch network and submit questions, which are answered immediately. After the meetings, the recording is available for those who want to reinforce their learning. In the same period, 37,615 training opportunities (professional education) were provided, of which 2,929 (7.79%) were in person and 34,686 (92.21%) were taken remotely, covering 91.38% of the Bank’s staff. Concerning Money Laundering Prevention and Fight (PLD), a requirement established by the Central Bank of Brazil, Banco do Nordeste had qualified 99.6% of its employees. As to the Integrity topic, the Corporate University promoted training events in internal/ in- company and external types. The following are to be highlighted as internal events: Interactive Course on Compliance and Integrity in Brazil, Improvement in Governance and Capital Markets for Managers of Companies and Mixed Economy Companies and the IV Integrity and Ethics Forum of Banco do Nordeste. Sponsorships were also held for external events such as the International Risk Management Congress, PLD Professionals Congress, Improvement in Governance, Best Corporate Governance Practices, Integrated Risk Management - Bacen Resolutions No. 4557 and No. 4745, Fraud and Money Laundering Prevention in Times of Pandemic, among other significant events on the topic, generating 74 opportunities for external training on that matter in 2020. The Corporate University also extended to 4,385 employees 10 remote courses related to the topic, such as: Internal Controls, Operational Risk Management, Money Laundering Prevention, Fraud Prevention, Governance, Ethics, Banking Security and the Integrity Program.

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ANNUAL MANAGEMENT REPORT 2020

10. ENTITIES OF PENSION PLAN AND HEALTH CARE FOR EMPLOYEES

10.1 Camed

The Assistance for Banco do Nordeste do Brasil Employees (Camed Saúde), established in 1979, is a member of Camed Group, together with Camed Administradora e Corretora de Seguros Ltda. and Creche Paulo VI. Camed Saúde has a portfolio of 38,077 beneficiaries (at 12.31.2020) and is present in the Northeast region, in the north of the states of Minas Gerais and Espirito Santo and in the cities of Belo Horizonte, Brasilia, Rio de Janeiro and São Paulo. In other states, Camed beneficiaries are served through Reciprocal Agreements with other health care plan operators. In 2020, Camed Saúde’s result was a surplus of R$ 12.1 million, as shown in Table 8. This result was higher than in 2019, mainly due to the reduction in costs with medical, hospital, dental services and the like, as a result of the pandemic period of the new Coronavirus, as well as the reduction in administrative expenses due to negotiations in regard to contracts and suppliers throughout year 2020. Over the year, the Entity’s management implemented measures for economic and financial balance, working to continue streamlining administrative expenses, reducing assistance costs and incorporating other revenues, such as those resulting from equity interest in other companies, in addition to the annual adjustment in fees for the Natural and Family plans.

Table 13 - Economic Performance of Camed Saúde (R$ million)

Acumulado Acumulado Captações (A/B) - 1 (A-B) 2019(B) 2020 (A)

Receitas Totais 276,1 302,0 9% 25,9

Despesas Totais 268,6 289,9 8% 21,3

Resultado 7,6 12,1 60% 4,6

Source: Camed - Finance Management, Controllership and Audit in Health.

10.2 Capef

Banco do Nordeste Employees’ Pension Fund (Capef) is a privately-held Entity of Supplementary Pension Plans (EFPC), created in 1967, whose assets under management (AUM) amount to R$ 5.42 billion at 12.31.2020. Capef has 12,479 participants and vested beneficiaries. These participants are grouped into two pension plans: one defined benefit plan - DB Plan, a plan which is closed for new participants, and one variable contribution - CV Plan I, created in 2010.

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ANNUAL MANAGEMENT REPORT 2020

The BD Plan closed 1H 2020 with 1,174 active participants, 3,859 retirees and 1,382 pensioners and obtained a return of 15.11%, equivalent to 134.35% of its actuarial target of 11.24% (INPC + 5.50% per year). The VC I plan is in the capitalization phase. In 2020, this plan obtained a return of 9.77% equivalent to 100.30% of its actuarial target of 9.74% (IPCA + 5.00% p.a.). The plan closed 2020 with 5,689 active participants, 328 retirees and 47 pensioners.

11. LEGAL INFORMATION In relation to Brazilian Securities and Exchange Commission (CVM) Ruling No. 381/03 of January 14, 2003, Banco do Nordeste informs hereby that Ernst & Young Auditores Independentes S/S, engaged as Independent Auditor, did not provide, in 2020, any services other than independent audit services.

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Financial Statements

BNB

In R$ thousand

12.31.2020 BANCO DO NORDESTE DO BRASIL S.A. HEAD OFFICE: Av. Dr. SILAS MUNGUBA, 5700 - FORTALEZA - CEARÁ PUBLICLY HELD - CNPJ No. 07.237.373/0001-20

Individual Financial Statements BALANCE SHEETS Years ended December 31, 2020 and 2019 General Management and Branches in Brazil (Amounts in R$ thousand) ASSETS 12.31.2020 12.31.2019 CURRENT ASSETS 18,509,420 12,766,796 CASH AND CASH EQUIVALENTS (Note 5) 155,045 168,525 FINANCIAL INSTRUMENTS 18,006,500 12,012,211 INTERBANK INVESTMENTS (Note 6) 4,381,163 3,376,358 Open market investments 3,191,148 3,275,927 Interbank deposit investments 1,190,015 100,431 SECURITIES (Note 7) 4,615,615 1,823,441 Own portfolio 219,720 1,438,346 Linked to repurchase agreements 4,387,653 242,819 Linked to guarantees given 8,242 142,276 INTERBANK ACCOUNTS 909,229 526,650 Receipts and payments pending settlement 935 508 Central Bank-Instant Payment Account 60,622 - Central Bank Deposits (Note 8.a) 846,411 525,291 Correspondents 1,261 851 LOANS (Note 9.a) 7,250,904 5,412,295 Public sector 69,307 75,318 Private sector 7,181,597 5,336,977 OTHER CREDITS 849,589 873,467 Exchange portfolio 822,414 855,128 Income receivable 27,159 18,319 Securities Trading 160 200 OTHER RECEIVABLES (Note 10) 789,568 1,051,705 Sundry 789,568 1,051,705 ALLOWANCE FOR LOAN LOSSES ASSOCIATED WITH CREDIT RISK (Note 9.d) -348,109 -419,939 Allowance for loan losses -253,364 -330,178 Allowance for losses on other credits -94,745 -89,761 OTHER ASSETS 42,574 29,952 Other assets 10,855 15,412 (Valuation Allowance) -472 -581 Prepaid expenses 32,191 15,121 PROVISIONS FOR IMPAIRMENT OF ASSETS (Notes 7.a.1 e 7.a.3) -136,158 -75,658 NON-CURRENT ASSETS 43,308,220 45,863,975 FINANCIAL INSTRUMENTS 39,835,795 42,696,711 SECURITIES (Note 7) 34,664,477 37,998,820 Own portfolio 29,721,369 36,112,739 Linked to repurchase agreements 4,305,214 1,304,444 Linked to guarantees given 590,470 575,692 Securities under Repurchase Agreements with Free Movement 47,424 5,945 INTERBANK ACCOUNTS 79,163 74,903 National Treasury - Rural Credit Funds - 152 National Housing System (SFH) (Note 8.a) 79,163 74,751 LOANS (Note 9.a) 5,092,155 4,622,988 Public sector 429,269 370,603 Private sector 4,662,886 4,252,385 OTHER CREDITS (Note 10) 576,640 199,121 Sundry 603,733 226,475 (Allowance for Losses on Other Credits without Loan Features) -27,093 -27,354 ALLOWANCE FOR LOAN LOSSES ASSOCIATED WITH CREDIT RISK (Note 9.d) -412,878 -273,991 Allowance for loan losses -412,878 -273,991 DEFERRED TAX ASSETS (Note 21.c) 3,381,973 3,066,241 INVESTMENTS (Note 12.a) 1,412 1,592 Other investments 6,591 6,878 (Provision for losses) -5,179 -5,286 PROPERTY AND EQUIPMENT (Note 12.b) 606,164 595,890 Property and equipment in use 283,807 174,027 Revaluation of property and equipment in use - 107,132 Other property and equipment in use 322,357 314,731 INTANGIBLE ASSETS (Note 12.c) 721 563 DEPRECIATION AND AMORTIZATION (Note 12.b) -373,481 -365,572 PROVISIONS FOR IMPAIRMENT OF ASSETS (Notes 7.a.1 e 7.a.3) -308,126 -56,580 TOTAL ASSETS 61,817,640 58,630,771 BANCO DO NORDESTE DO BRASIL S.A. HEAD OFFICE: Av. Dr. SILAS MUNGUBA, 5700 - FORTALEZA - CEARÁ PUBLICLY HELD - CNPJ No. 07.237.373/0001-20

Individual Financial Statements BALANCE SHEETS Years ended December 31, 2020 and 2019 General Management and Branches in Brazil (Amounts in R$ thousand)

LIABILITIES AND EQUITY 12.31.2020 12.31.2019 CURRENT LIABILITIES 24,716,398 13,619,087 DEPOSITS AND OTHER FINANCIAL INSTRUMENTS 21,068,851 9,952,358 DEPOSITS (Note 13.b) 8,305,440 5,870,828 Demand deposits 853,237 405,302 Savings deposits 4,050,698 2,633,831 Interbank deposits 1,996,112 1,165,021 Time deposits 1,405,393 1,666,674 OPEN MARKET FUNDING (Note 13.c) 8,681,024 1,545,801 FUNDS FROM ACCEPTANCE AND ISSUE OF SECURITIES (Note 15) 1,178 46,107 INTERBANK ACCOUNTS 342 429 INTERDEPARTMENTAL ACCOUNTS 4,060 3,493 Third-party funds in transit 4,040 3,381 Internal transfers of funds 200 112 BORROWINGS (Note 14.c) 904,882 881,557 DOMESTIC ONLENDING - OFFICIAL INSTITUTIONS (Note 14.b) 142,146 102,555 National Treasury 118 168 National Bank for Economic and Social Development (BNDES) 122,878 88,080 FINAME 19,150 14,307 DERIVATIVE FINANCIAL INSTRUMENTS (Note 7.c) 10,479 - FOREIGN ONLENDING (Note 14.d) 298,457 57,504 OTHER FINANCIAL INSTRUMENTS 2,720,843 1,444,084 Securities Trading 153 153 Financial and development funds 2,720,690 1,193,931 Debt Instruments Eligible to Capital (Note 17) - 250,000 OTHER LIABILITIES 1,816,804 1,975,173 Collection of taxes and other contributions (Note 16.a) 675 1,699 Exchange portfolio (Note 16.b) 3,695 1,354 Social and statutory (Note 16.c) 306,856 337,855 Tax and social security (Note 16.d) 939,336 951,086 Sundry (Note 16.e) 566,242 683,179 INCOME RECEIVED IN ADVANCE (Note 18) 10,000 - PROVISIONS 1,820,743 1,691,556 Provision for Financial Guarantees Provided (Note 9.f.1) 954,798 960,882 Actuarial Liabilities (Note 24.g) 172,328 168,237 Provision for contingencies 693,617 562,437 NON-CURRENT LIABILITIES 30,929,267 39,584,279 DEPOSITS AND OTHER FINANCIAL INSTRUMENTS 24,570,069 34,133,276 DEPOSITS (Note 13.b) 6,616,243 6,379,026 Time deposits 6,616,243 6,379,026 OPEN MARKET FUNDING (Note 13.c) 47,393 5,924 DOMESTIC ONLENDING - OFFICIAL INSTITUTIONS (Note 14.b) 1,071,807 1,065,182 National Treasury 496 337 National Bank for Economic and Social Development (BNDES) 1,051,480 1,030,853 FINAME 19,831 33,992 FOREIGN ONLENDING (Note 14.d) 412,822 374,358 OTHER FINANCIAL INSTRUMENTS 16,421,804 26,308,786 Subordinated Debt Eligible to Capital (Note 17) 2,660,982 2,545,199 Financial and development funds 12,464,933 22,462,547 Debt Instruments Eligible to Capital (Note 17) 1,295,889 1,301,040 INCOME RECEIVED IN ADVANCE (Note 18) 183,602 - PROVISIONS 5,503,191 5,049,879 Provision for Financial Guarantees Provided (Note 9.f.1) 2,020,139 1,787,943 Actuarial Liabilities (Note 24.g) 3,483,052 3,261,936 DEFERRED TAX OBLIGATIONS 672,405 401,124 EQUITY (Note 19) 6,171,975 5,427,405 CAPITAL 5,569,988 3,813,000 REVALUATION RESERVES 13,671 13,726 INCOME RESERVES 1,668,959 2,651,514 OTHER COMPREHENSIVE INCOME -1,080,643 -1,050,835 TOTAL LIABILITIES AND EQUITY 61,817,640 58,630,771 BANCO DO NORDESTE DO BRASIL S. A. Individual Financial Statements INCOME STATEMENTS Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 General Management and Branches in Brazil (Amounts in R$ thousand)

2nd half/2020 12.31.2020 12.31.2019

INCOME FROM FINANCIAL INTERMEDIATION 1,897,996 3,946,066 5,489,910 Loans (Note 9.a.2) 1,203,571 2,341,542 2,701,552 Gain (loss) on securities transactions (Note 7.b) 479,130 1,040,617 2,548,592 Gain (loss) on derivative financial instruments -10,479 -10,479 47,343 Foreign exchange gains (losses) (Note 11.b) 217,592 556,099 167,308 Compulsory deposit gains (losses) (Note 8.b) 8,182 18,287 25,115 EXPENSES FROM FINANCIAL INTERMEDIATION -723,226 -2,097,997 -2,981,897 Open Market Funding (Note 13.d ) -185,869 -423,660 -858,758 Borrowings and onlending (Note 14.e ) -307,888 -1,250,544 -1,725,018 Allowance for loan losses (Note 9.e) -229,469 -423,793 -398,121 GROSS INCOME FROM FINANCIAL INTERMEDIATION 1,174,770 1,848,069 2,508,013 OTHER OPERATING INCOME 2,736,181 5,078,306 4,771,827 Income from services provided (Note 20.a) 1,435,818 2,746,600 2,628,904 Income from bank fees (Note 20.b) 52,315 100,482 98,426 FNE-Del credere (Note 20.f) 1,039,505 1,949,580 1,607,176 Other operating income (Note 20.g) 208,543 281,644 437,321 OTHER OPERATING EXPENSES -2,837,596 -5,375,269 -4,839,181 Personnel expenses (Note 20.c) -1,125,728 -2,175,475 -2,002,378 Other Administrative Expenses (Note 20.d) -697,349 -1,357,234 -1,286,167 Tax Expenses (Note 20.e) -191,898 -354,017 -326,982 Provission for Financial Guarantees Provided (Note 9.f.2) -361,193 -749,813 -361,609 Provision for Contingent Liabilities (Note 20.i) -68,738 -216,348 -216,258 Other operating expenses (Note 20.j) -392,690 -522,382 -645,787 OPERATING INCOME (EXPENSES) 1,073,355 1,551,106 2,440,659 NON-OPERATING INCOME (EXPENSES) 4,783 32,611 -5,826 INCOME BEFORE INCOME TAXES AND PROFIT SHARING 1,078,138 1,583,717 2,434,833 INCOME TAX AND SOCIAL CONTRIBUTION (Note 21) -349,799 -502,180 -592,902 Provision for income tax -302,852 -479,898 -365,360 Provision for social contribution -250,363 -388,826 -261,312 Deferred tax asset 203,416 366,544 33,770 STATUTORY PROFIT SHARING (Note 25) -41,655 -62,316 -105,246 NET INCOME 686,684 1,019,221 1,736,685

Number of shares (in thousands) 86,371 86,371 86,371 Basic/diluted earnings per share (in R$) 7.95 11.80 20.11

BANCO DO NORDESTE DO BRASIL S. A. Individual Financial Statements STATEMENTS OF COMPREHENSIVE INCOME Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 General Management and Branches in Brazil (Amounts in R$ thousand)

2nd half/2020 12.31.2020 12.31.2019

NET INCOME 686,684 1,019,221 1,736,685

OTHER COMPREHENSIVE INCOME -161,095 -29,753 -102,007

Items that may be reclassified to the Income Statement 140,644 17,401 477,667 Equity adjustments to available-for-sale securities 257,616 28,701 837,938 Tax effect on Equity adjustments to available-for-sale securities -116,999 -11,355 -358,137 Realization of Revaluation Reserve 500 990 -3,879 Tax Effect on Realization of Revaluation Reserve -230 -440 1,745 Items that may not be reclassified to the Income Statement -301,739 -47,154 -579,674 Actuarial Gains or losses -548,616 -85,734 -1,158,500 Tax Effect on Actuarial Gains or Losses 246,877 38,580 578,826

COMPREHENSIVE INCOME 525,589 989,468 1,634,678 BANCO DO NORDESTE DO BRASIL S.A. Individual Financial Statements STATEMENTS OF CHANGES IN EQUITY Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 General Management and Branches in Brazil (Amounts in R$ thousand)

PAID-IN Revaluation Reserves INCOME RESERVES

OTHER RETAINED EARNINGS EVENTS COMPREHENSIVE (ACCUMULATED T O T A L RESERVE FOR INCOME LOSSES) RESERVE FOR COMPLEMENTARY SPECIAL INCOME CAPITAL OWN ASSETS LEGAL RESERVE OPERATIONAL MARGIN DIVIDEND RESERVES EQUALIZATION

BALANCES AT 12.31.2018 2,844,000 13,979 307,691 1,400,900 568,800 - -950,962 28,471 4,212,879 PRIOR YEARS’ ADJUSTMENTS Creditors 431 431 Debtors -919 -919 OTHER COMPREHENSIVE INCOME SecuritiesAdjustmentes (Net of Taxes) 479,801 479,801 Actuarial Gains or Losses (Net of Taxes) -579,674 -579,674 CAPITAL INCREASE: From Reserves: Incorporation into Capital 969,000 969,000 - OTHER EVENTS: Revaluation of Assets: Set up of Reserves (Net of Taxes) -211 -1,573 -1,784 Realization of Revaluation Reserve JUN19-CMN Resolution No. 4535 (Net of Taxes) -42 42 - NET INCOME OF YEAR 1,736,685 1,736,685 Allocations: Reserves 86,834 1,062,489 193,800 -1,343,123 - Remuneration of Capital Payable: Dividends -83,910 -83,910 Interest on Equity (IOE) -332,857 -332,857 Monetary Restatement of Dividends and IOE Paid in Advance...... -3,247 -3,247 BALANCES AT 12.31.2019 3,813,000 13,726 394,525 1,494,389 762,600 - -1,050,835 - 5,427,405 CHANGES FOR THE YEAR 969,000 -253 86,834 93,489 193,800 - -99,873 -28,471 1,214,526 BALANCES AT 12.31.2019 3,813,000 13,726 394,525 1,494,389 762,600 - -1,050,835 - 5,427,405 PRIOR YEARS’ ADJUSTMENTS Creditors 218 218 Debtors -2,809 -2,809 OTHER COMPREHENSIVE INCOME: SecuritiesAdjustmentes (Net of Taxes) 17,346 17,346 Actuarial Gains or Losses (Net of Taxes) -47,154 -47,154 CAPITAL INCREASE: From Reserves: Incorporation into Capital 1,756,988 -1,472,588 -284,400 - OTHER EVENTS: Revaluation of Assets: - Realization of Reserves (Net of Tax) -55 55 - OTHER (Transfer to Retained Earnings (Accumulated Losses) - AGM held on 03.27.2020) -69 69 - Provision for Complementary Dividends - Year 2019 - AGM held on 03.27.2020 -69 -69 NET INCOME OF YEAR 1,019,221 1,019,221 Allocations: Legal and Statutory Reserves 50,961 542,656 180,885 -774,502 - Remuneration of Capital Payable: Interest on Equity (IOE) -242,183 -242,183 BALANCES AT 12.31.2020 5,569,988 13,671 445,486 564,388 659,085 - -1,080,643 - 6,171,975 CHANGES IN THE YEAR...... 1,756,988 -55 50,961 -930,001 -103,515 - -29,808 - 744,570 BALANCES AT 06.30.2020 5,569,988 13,698 411,152 197,807 536,891 78,581 -919,521 - 5,888,596 OTHER COMPREHENSIVE INCOME: SecuritiesAdjustmentes (Net of Taxes) 140,617 140,617 Actuarial Gains or Losses (Net of Taxes) -301,739 -301,739 OTHER EVENTS: Revaluation of Assets: Realization of Reserves (Net of Taxes) -27 27 - NET INCOME FOR THE SIX-MONTH PERIOD 686,684 686,684 Allocations: Legal and Statutory Reserves 34,334 366,581 122,194 -523,109 - Remuneration of Capital Payable: Interest on Equity (IOE) -78,581 -163,602 -242,183 BALANCES AT 12.31.2020 5,569,988 13,671 445,486 564,388 659,085 - -1,080,643 - 6,171,975 CHANGES FOR THE SIX-MONTH - -27 34,334 366,581 122,194 -78,581 -161,122 - 283,379 BANCO DO NORDESTE DO BRASIL S.A. Individual Financial Statements STATEMENTS OF CASH FLOWS Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 General Management and Branches in Brazil (Amounts in R$ thousand)

2nd half/2020 12.31.2020 12.31.2019 CASH FLOWS FROM OPERATING ACTIVITIES

NET INCOME 686,684 1,019,221 1,736,685 Adjustments to Net Income: Depreciation and Amortization Expenses 6,547 12,750 11,608 Provision for Impairment of Other Assets, net -8 -3 -51 Allowance for loan losses, Bank's Credit Risk - net 227,299 411,970 318,237 Allowance for other credits, Bank's Credit Risk - net 2,170 11,823 79,884 Provision for Financial Guarantees Provided, net (FNE risks) 352,948 738,928 354,277 Provision for Financial Guarantees Provided, net (FDNE risks) 559 1,156 12 Provision for Contingencies, net 37,007 87,080 155,079 Provision for Other Contingencies, net 31,693 128,198 60,875 Actuarial Liabilities (Post-Employment Benefits) 149,698 326,893 272,880 Provision for Debt Instruments Eligible to Principal Capital 54,332 82,568 239,988 Monetary Restatement of Judicial Deposits 4,158 10,049 17,072 Deferred Tax Asset -203,416 -366,544 -33,770 Provision for Losses on Linked Credits - SFH -51 -101 -98 Restatement of Debt Instruments Eligible to Principal Capital - 3,251 4,674 Provision for charges on issue of Financial Bills 9,200 25,588 28,446 Monetary Restatement of Appeal Deposits -4,062 -10,610 -14,043 Monetary Restatement of Dividends and IOE - 1,828 2,846 Provisions for Impairment of Assets 81,925 312,047 132,238 Adjusted Net Income 1,436,683 2,796,092 3,366,839 Interbank investments -763,390 -1,089,584 197,872 Interbank and Interdepartmental accounts -206,064 -386,258 -32,798 Loans -2,489,703 -2,719,745 -693,774 Other Credits 554,771 627,796 24,330 Allowance on Loan Losses Associated with Credit Risk 116,821 67,055 -12,761 Other Receivables...... -337,581 -115,383 690,247 Deferred Tax Assets...... -234,385 50,813 -1,340,672 Other Assets -24,601 -16,660 -4,431 Deposits 697,199 2,661,778 -581,481 Open Market Funding 6,660,020 7,176,692 170,245 Funds from acceptance and issue of securities -39 -44,929 -56,771 Borrowings and Onlending 8,152 348,957 -221,900 Derivative financial instruments 10,479 10,479 564,072 Other Liabilities -587,472 -1,249,817 -669,150 Provisions 879,505 582,499 828,894 Reversal of Realization of Revaluation Reserve - CMN Resolution No. 4535 - - -1,573 Realization of Revaluation Reserve of June 2019 - CMN Resolution No. 4535 - - -211 Income Received in Advance -500 193,602 - Other Financial Instruments -6,425,855 -8,610,224 -1,089,464 Deferred Tax Obligations 142,545 271,281 303,046 Income Tax and Social Contribution Paid -241,152 -609,754 -352,658 Prior Years’ Adjustments - -2,591 -488 CASH PROVIDED BY OPERATING ACTIVITIES -809,067 -57,901 1,087,413 CASH FLOWS FROM INVESTING ACTIVITIES Investments -9 -9 -1 Investments in property and equipment in use -7,867 -17,366 -25,854 Investments in Intangible Assets - -158 -6,748 Investments in assets not for own use 4,721 4,043 4,169 Disposal of Investments 9 189 19,385 Disposal (Write-off) of Property and Equipment in Use 1,690 2,251 7,758 Securities Available for Sale 1,128,336 559,516 -3,554,781 CASH USED IN INVESTING ACTIVITIES 1,126,880 548,466 -3,556,072 CASH FLOWS FROM FINANCING ACTIVITIES Payment of Dividends as IOE -38 -95,584 -315,261 Payment of Interest on Debt Instruments Eligible to Principal Capital - -243,239 -178,156 Amortization of Debt Instruments Eligible to Principal Capital - -250,000 -1,208,582 CASH USED IN FINANCING ACTIVITIES -38 -588,823 -1,701,999 Increase (Decrease) in cash and cash equivalents 317,775 -98,258 -4,170,658 STATEMENT OF CHANGES IN CASH AND CASH EQUIVALENTS At beginning of period 3,028,418 3,444,451 7,615,109 At end of period 3,346,193 3,346,193 3,444,451 Increase (Decrease) in cash and cash equivalents 317,775 -98,258 -4,170,658 BANCO DO NORDESTE DO BRASIL S. A. Individual Financial Statements STATEMENTS OF VALUE ADDED Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 General Management and Branches in Brazil (Amounts in R$ thousand)

2nd half/2020 % 12.31.2020 % 12.31.2019 % INCOME 3,586,870 7,144,647 8,634,136 Financial intermediation 1,897,996 3,946,066 5,489,910 Services rendered and bank fees 1,488,133 2,847,082 2,727,330 Allowance for loan losses -229,469 -423,793 -398,121 Other income/expenses 430,210 775,292 815,017 EXPENSES FROM FINANCIAL INTERMEDIATION -493,757 -1,674,204 -2,583,776 INPUTS ACQUIRED FROM THIRD PARTIES -672,478 -1,305,482 -1,237,200 Materials, energy and other expenses -47,131 -91,187 -92,492 Third-party services -387,724 -758,995 -687,731 Other -237,623 -455,300 -456,977 Data processing and telecommunications -135,854 -259,965 -261,708 Advertising, promotions and publications -17,391 -34,088 -21,868 Transportation -13,639 -27,250 -29,643 Security -31,938 -62,473 -64,678 Travel -3,487 -7,839 -15,873 Other -35,314 -63,685 -63,207 GROSS VALUE ADDED 2,420,635 4,164,961 4,813,160 RETENTIONS -6,547 -12,750 -11,608 Depreciation, Amortization and Depletion -6,547 -12,750 -11,608 NET VALUE ADDED PRODUCED BY THE ENTITY 2,414,088 4,152,211 4,801,552 TOTAL VALUE ADDED TO BE DISTRIBUTED 2,414,088 4,152,211 4,801,552 DISTRIBUTION OF VALUE ADDED 2,414,088 4,152,211 4,801,552 PERSONNEL 1,021,721 42.3 1,950,210 47.0 1,833,148 38.2 WORK COMPENSATION 695,546 28.8 1,306,338 31.5 1,281,338 26.7 Salaries 653,891 1,244,022 1,176,092 Profit sharing 41,655 62,316 105,246 BENEFITS 278,541 11.5 550,084 13.2 462,344 9.6 Provisions (post-employment benefits) 185,645 363,400 274,292 Benefits – Other 92,896 186,684 188,052 Unemployment Compensation Fund (FGTS) 47,634 2 93,788 2.3 89,466 1.9 TAXES, RATES AND CONTRIBUTIONS 687,359 1,143,778 1,194,361 Federal 663,224 1,098,274 1,150,552 State 51 61 72 Municipal 24,084 45,443 43,737 THIRD-PARTIES CAPITAL REMUNERATION 18,324 0.8 39,002 0.9 37,358 0.8 Rent 18,324 39,002 37,358 EQUITY REMUNERATION 686,684 28.4 1,019,221 24.5 1,736,685 36.2 INTEREST ON EQUITY (IOE) 163,602 6.8 242,183 5.8 335,796 7 Federal Government 90,724 134,300 186,213 Other 72,878 107,883 149,583 DIVIDENDS - 0 - 0 84,218 1.8 Federal Government - - 46,702 Other - - 37,516 RETAINED PROFITS 523,082 21.7 777,038 18.7 1,316,671 27.4 NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS OF BANCO DO NORDESTE DO BRASIL S.A. Year ended December 31, 2020 and 2019 and six-month periods ended December 31, 2020 Amounts expressed in thousands of reais, unless otherwise stated

Notes to financial statements - Contents

Note 1 - The Bank and its Characteristics Note 17 - Debt instruments eligible to capital Note 2 - Basis of Preparation and Presentation of Individual Financial Note 18 - Income Received in Advance Statements Note 3 - Summary of Significant Accounting Practices Note 19 - Equity Note 4 - Segment Reporting Note 20 - Other Operating Income/Expenses Note 21 - Taxes and contributions Note 5 – Cash and cash equivalents Note 22 - Provisions, Contingent Assets, Contingent Liabilities and Legal Obligations - Tax and Note 6 - Interbank investments Social Security

Note 7 Securities and derivative financial instruments Note 23 - Employee and Officer Compensation

Note 8 - Interbank accounts - Linked credits Note 24 - Post-Employment Benefits

Note 9 – Loan portfolio and allowance for expected loan losses Note 25 - Profit sharing

Note 26 - Fundo Constitucional de Financiamento do Note 10 – Other assets Nordeste (FNE)

Note 27 - Workers’ Assistance Fund (Fundo de Amparo Note 11 - Foreign Exchange Portfolio ao Trabalhador - FAT)

Note 12 - Investments, property and equipment and intangible assets Note 13 - Deposits, Open Market Funding, Funds from Acceptance and Note 28 - Risk Management and Basel Index Issue of Securities, Debt Instruments Eligible to Capital and Subordinated Debts Note 14 - Borrowings and Onlending Note 29 - Related Parties Note 15 – Funds from acceptance and issue of securities Note 30 – Recurring and nonrecurring income Note 16 - Other Liabilities Note 31 - Other Information

NOTE 1 - The Bank and its Characteristics Banco do Nordeste do Brasil S.A. is a mixed economy publicly-held financial institution established by Federal Law No. 1649 of 07.19.1952, with head office at Avenida Dr. Silas Munguba, nº 5700, Passaré, Fortaleza, Ceará State, Brazil, and its mission is: “to operate as the Development Bank for the Brazilian Northeast Region”. Banco do Nordeste is authorized to operate all the portfolios permitted for multiple service banks. As an institution devoted to regional development, the Bank operates as the executive agent of public policies and is responsible for managing Fundo Constitucional de Financiamento do Nordeste (FNE) - the main source of funds used by the Bank for long-term financing - and the operation of the National Family Farming Strengthening Program (Programa Nacional de Fortalecimento da Agricultura Familiar - Pronaf) in its jurisdiction. The Bank is also the operator of the Northeast Investment Fund (Fundo de Investimentos do Nordeste - FINOR) and the Northeast Development Fund (Fundo de Desenvolvimento do Nordeste - FDNE).It has the largest micro-financing program in Latin America, consolidated under Crediamigo and Agroamigo, which facilitate access to loans to small entrepreneurs who engage in production-related, product sale, and service activities in urban and rural areas. In addition to federal funds, the Bank has access to other sources of financing in the domestic and foreign markets through funds raised directly, as well as partnerships with domestic and foreign institutions, including multilateral institutions such as the World Bank and the InterAmerican Development Bank (IDB).

NOTE 2 - Basis of Preparation and Presentation of Individual Financial Statements The Individual Financial Statements were prepared in accordance with the provisions of the Brazilian Corporation Law (Law No. 6404 of 12.15.1976, as amended), and regulations of the National Monetary Council (Conselho Monetário Nacional - CMN), the Central Bank of Brazil (Banco Central do Brasil - BACEN), and the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM). CMN Resolution No. 4818, issued on May 29, 2020, consolidates the general criteria for preparation and disclosure of financial statements by Financial Institutions and revokes provisions of CMN Resolutions No. 4720, of May 30, 2019, and No. 4776, of January 29, 2020, which addressed the matter. Resolution BCB No.

02, of 08.12.2020 revoked Bacen Circular No. 3959, of 09.04.2019, while maintaining the procedures originally established in such Circular that amended, as of 01.01.2020, the general criteria for preparing and disclosing Individual Financial Statements in effect until then, with emphasis on the segregation of Assets and Liabilities of the Balance Sheet into Current and Non-Current, change in the presentation of the Income Statement and the requirement to present the Statement of Comprehensive Income. It should be stressed that the adoption of these measures had no impact in relation to the criteria until then adopted by the Bank; however, for the purposes of comparison, the presentation formats of the Balance Sheet and of the Income Statement for 2019 were changed to adapt to the new format, without any changes to the items and amounts of these Statements.

The Individual Financial Statements were prepared on a going-concern basis, since management considers that the Bank has sufficient resources to continue operating in order to fulfill its mission and business purpose. There are no material uncertainties that may cast significant doubts as to the Bank’s ability to continue as a going concern.

The pronouncements issued by Brazil’s Financial Accounting Standards Board - FASB (Comitê de Pronunciamentos Contábeis - CPC) in the process of convergence between the Brazilian accounting standards and the International Financial Reporting Standards (IFRS), adopted by the CMN by way of rules amended as well as those approved by the CVM that do not clash with CMN rules, are included in these Individual Financial Statements as follows:

• CPC 00 (R1) - Conceptual Framework for the Preparation and Presentation of Individual Financial Statements (CMN Resolution No. 4144 of 09.27.2012); • CPC 01 - Impairment of Assets (CMN Resolution No. 3566 of 05.29.2008); • CPC 02 (R2) - Effects of Changes in Foreign Exchange Rates and Translation of Individual Financial Statements (CVM Rule No. 640 of 10.07.2010); • CPC 03 - Statement of Cash Flows (CMN Resolution No. 3604 of 08.29.2008); • CPC 04 (R1) – Intangible Assets – (CMN Resolution No. 4534/2016); • CPC 05 - Related-Party Disclosures (CMN Resolution No. 3750 of 06.30.2009); • CPC 09 - Statement of Value Added (CVM Rule No. 557 of 11.12.2008); • CPC 12 - Present Value Adjustment (CVM Rule No. 564 of 12.17.2008); • CPC 22 - Segment Reporting (CVM Rule No. 582 of 07.31.2009); • CPC 23 - Accounting Policies, Changes in Accounting Estimates and Errors (CMN Resolution No. 4007 of 08.25.2011); • CPC 24 - Subsequent Events (CMN Resolution No. 3973 of 05.26.2011); • CPC 25 - Provisions, Contingent Liabilities and Contingent Assets (CMN Resolution No. 3823 of 12.16.2009); • CPC 26 (R1) - Presentation of Individual Financial Statements (CVM Rule No. 760 of 12.22.2016); • CPC 27 - Property and Equipment (CMN Resolution No. 4535 of 11.24.2016); • CPC 32 - Income Taxes (CVM Rule No. 599 of 09.15.2009); • CPC 33 (R1) - Employee Benefits (CMN Resolution No. 4424 of 06.25.2015); • CPC 41 - Earnings per Share (CVM Rule No. 636 of 08.06.2010); and • CPC 46 - Fair Value Measurement (CMN Resolution No. 4748 of 08.29.2019);

Note 3 - Summary of Significant Accounting Practices a) Functional Currency The Bank’s functional and reporting currency is the Brazilian real. Assets and liabilities denominated in foreign currency are recognized at the average currency rate in force on the transaction date, while nonmonetary assets are stated at historical cost. At the end of each period, monetary assets and liabilities denominated in foreign currency are restated by the average exchange rate, and variations are recorded in P&L. b) P&L recognition criteria Revenues and expenses are recognized on a monthly basis, following the accrual method and considering the pro rata temporis criterion. c) Current and Non-Current Assets and Liabilities Assets and receivables are stated at realizable values, plus income earned and currency variations and currency fluctuation, less unearned income or allowance, if applicable. Liabilities are stated at original amounts plus, if applicable, charges and monetary and currency variations incurred, less deferred expenses. Funds available from FNE are classified in Current liabilities and Non-Current payables according to the expected outflow of funds.

Receivables and payables are recorded in Current assets and Non-Current receivables and in Current liabilities and Non-Current payables, respectively, according to maturity dates. d) Cash and cash equivalents These correspond to the balances of cash and cash equivalents, interbank investments and securities immediately convertible into cash or with original maturity equal to or less than ninety days from the investment date, with an insignificant risk of change in their market value. e) Interbank Investments Interbank investments are recorded at acquisition cost or investment value, plus income earned and adjusted by the provision for losses, when applicable. f) Securities Securities are recorded at cost, plus brokerage and other fees, and are classified and evaluated as follows: Available-for-sale securities: securities not classified as either trading securities or held-to-maturity securities and reported at marked value, net of taxes, matched against Equity; and Held-to-maturity securities: securities that the Bank has the positive intent and ability to hold to maturity, stated at acquisition cost, plus income earned, matched against P&L for the period. The classification of Available-for-sale securities and Held-to-maturity securities in current assets and non- current receivables was determined according to their maturities, which does not mean unavailability of the securities, which are of the highest quality and highly liquid. The methodology for adjusting the market value of securities was established in accordance with consistent and verifiable criteria, according to the following order of priority: 1st - Market Prices disclosed by the National Association of Financial Market Institutions (Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais - Anbima) and B3 S.A (Brasil Bolsa Balcão); 2nd - Goodwill/Negative Goodwill on transactions occurred over the past 3 months in B3 S.A.; and

3rd - calculation of probable realizable value based on own pricing model. In this case, the present value is determined by discounted cash flow by the market rate, net of the risk factor and of the discount for the low liquidity, such as the Financial Bills and Debentures. Gains on securities, irrespective of the category into which they are classified, are appropriated on a pro rata day basis and on an accrual basis, through maturity date or definitive sale of the security, according to the compound interest method or the straight-line method, based on remuneration clauses and acquisition rate distributed in the passage of time and recorded directly in P&L for the period. Losses on available-for-sale and held-to-maturity securities that are not characterized as temporary losses are recognized directly in P&L for the period and begin to compose the new base of the asset cost. At the time of disposal, the difference between the sale price and the acquisition cost restated by income is considered as a result of the transaction and is recorded at the transaction date as gain or loss on securities. g) Loans, Advances on Exchange Contracts, Other Credits with Loan Features and Allowance for Loan Losses Associated with Credit Risk These are classified in accordance with ,management’s judgment on risk level, taking into consideration the economic scenario, past experience and specific risks related to the operation, debtors and guarantors, considering the standards established by CMN Resolution No. 2682 of 12.21.1999, which require the periodic analysis of the portfolio and its rating into nine risk levels, where “AA” is the minimum risk and “H” is the maximum risk, as well as the classification of operations in arrears for more than 15 days as past due operations. Income from loans overdue for more than 59 days, regardless of the risk level, is only recognized as revenue when effectively received. H-rated operations remain under this rating for 180 days, when they are then written off against the existing allowance and controlled for at least five years, no longer being included in the balance sheets. Renegotiated operations remain, at least, at the same level as previously classified. Renegotiated loans that have been written off against the allowance are rated as H, and any recoveries are recognized as income when received.

h) Prepaid expenses These refer to funds used in prepayments, whose benefits or service rendering will occur in coming years. Prepaid expenses are recorded at cost and amortized as the services are rendered and benefits generated.

i) Investments, property and equipment and intangible assets Investments: these are stated at cost, net of Provision for Losses. Property and equipment in use: stated at acquisition cost, less impairment losses and related depreciation, are calculated by the straight-line method, from the moment of availability of the asset for use, considering the estimated useful lives of the assets, as follows: Buildings and Facilities - 40 to 60 years; Furniture and Fixtures - 10 to 45 years; Machinery and Equipment - 15 to 35 years; Aircraft - 20 years; and Vehicles (cars, tractors and bicycles) - 10 to 30 years. Land and works of art are not depreciated. The depreciation method, useful life and residual values are reviewed every year. Intangible assets: correspond to identifiable non-monetary assets, without physical substances, internally acquired or developed and intended for the maintenance of the Bank’s activities. j) Taxes Corporate Income Tax (IRPJ) is calculated at the rate of 15% plus a 10% surtax (on taxable profit exceeding R$240 thousand for the year), and Social Contribution Tax on Net Profit (CSLL) is calculated at the rate of 15%, after adjustments in Corporate Profit defined in tax legislation. The Constitutional Amendment No. 103/2019 increased the CSLL rate to 20%, from 03.01.2020. The federal contribution taxes on gross revenue for Public Service Employee Savings Program (Pasep) and for Social Security Financing (Cofins) are calculated at the rates of 0.65% and 4%, respectively. The Service Tax (ISSQN) is calculated according to the legislation of each municipality, with rates ranging from 2% to 5%.

The total IRPJ and CSLL tax burden is comprised of the provision for these taxes (current expense + deferred tax liability) and of deferred tax asset. Current expense refers to the amount effectively paid to the federal treasury. Deferred tax assets and liabilities are deferred taxes arising from income tax and social contribution losses and temporary differences between accounting and tax base. Temporary differences arise, for example, from allowances for loan losses, provisions for post-employment benefits, other provisions for contingencies, market value adjustments, income from renegotiations - taxed on a cash basis (article 12, paragraph 2 of Law No. 9430 of 12.27.1996), depreciation, etc.

The recognition of IRPJ/CSLL deferred tax assets and liabilities is based on their estimated realization, according to technical studies performed by management every six month, considering the tax rates in force in the realization period of these assets. Deferred tax assets are recognized according to the expected generation of deferred income, in accordance with the criteria for recognition, maintenance and write-off established by CMN Resolution No. 3059/2002 and Bacen Circular No. 3171/2002. In the case of Deferred Tax Liabilities, this legislation has not established limits for recognition and maintenance, since their realization does not require future profits. Deferred Tax Assets and Liabilities are realizable according to their origin. Those arising from temporary differences are realized through the use or reversal of the provisions that served as the basis for their recognition, and the main realization criteria are as follows:

• Allowances for loan losses associated with credit risk: a) credit reimbursement schedule; and b) classification under losses according to Law No. 9430/1996; • Other Provisions: payment forecast (contribution flow, stock market prediction, etc.); • Market Value Adjustment: contractual term; • Revenues from renegotiations, taxed on a cash basis (article 12, paragraph 2 of Law No. 9430/1996: credit reimbursement schedule; and • Depreciation: allocation of the depreciation expense based on the accounting useful life, after completion of the useful life considered for tax purposes.

In turn, the tax credits on income and social contribution tax losses are realized upon generation of taxable profits, through offsetting in the tax base of referred to taxes, with observance of the limit of 30% of said base.

Current and deferred taxes are recognized in the Income Statement, except when they result from a transaction recognized directly in Equity, case in which the tax effect is recognized in Equity (in Other Comprehensive Income).

k) Employee benefits The Bank grants its employees current and post-employment benefits. Current benefits are recognized and measured at their original amounts (excluding the effect of the discount to present value or actuarial calculation), on an accrual basis. Post-employment benefits refer to “defined benefit” and “variable contribution” pension plans, as well as a defined benefit health care plan and defined benefit group life insurance. For “defined benefit” plans and for the portion of unplanned benefits of the variable contribution plan, which has characteristics of defined benefit plan, the net current service cost and net interest on net actuarial liabilities, including interest on the defined benefit asset limit effect, as applicable, are recognized in P&L, whereas actuarial gains and losses and return on plan assets, less amounts considered in net interest, are recognized under “Other Comprehensive Income”, in Equity. Contributions referring to the portion of defined contribution of the variable contribution plan are recognized in P&L. To mitigate the uncertainties arising from actuarial calculations, the Bank counts on specialized advisory service firms that, on a quarterly basis, remeasure these calculations, which include sensitivity analysis, encompassing the simulation of scenarios of assumptions considered most significant, such as interest rate, mortality table and healthcare inflation. l) Deposits and open market funding These are recognized at the amount of liabilities, and related charges, when applicable, are recorded on a pro rata day basis. m) Impairment of assets Impairment losses are recognized when the carrying amount of an asset exceeds its recoverable amount. Significant nonfinancial assets and financial assets classified as available-for-sale and held-to-maturity are reviewed at least at the end of each reporting period, to determine if there is any indication of impairment loss. n) Provisions, Contingent Assets, Contingent Liabilities and Legal Obligations Provisions, contingent assets, contingent liabilities and legal obligations are recognized, measured and disclosed according to the criteria defined in CPC 25 - Provisions, Contingent Liabilities and Contingent Assets, approved by CMN Resolution No. 3823 of 12.16.2009, and BACEN Circular Letter No. 3429 of 02.11.2010. Provisions for civil, tax, labor and other claims are recognized in the Individual Financial Statements when, based on the opinion of legal advisors and management, the likelihood of loss in a given legal or administrative proceeding is assessed as probable, the settlement of which is likely to result in an outflow of economic benefits, and the amounts involved can be reliably measured upon court reference/notification, reviewed as required by procedural changes, and monetarily restated on a monthly basis. The assessment of the provision and contingent liability, risk level of new lawsuits, and reassessment of already existing lawsuits are made case by case and classified according to the likelihood of loss, as probable, possible and remote, except for the proceedings under procedural steps in the Special Civil Courts and Regional Labor Offices, whose provision are assessed based on the historical average of losses. Contingencies classified as probable losses are accounted for and represented by Civil proceedings (claiming compensation for pain and suffering and property damage, including, among others, protest of notes, return of checks, and provision of information to credit reporting agencies); Labor claims (claiming labor rights, in light of specific professional category legislation, such as overtime pay, salary equalization, job reinstatement, transfer allowance, severance pay, retirement supplementation, including enforcement notices issued by Regional Labor Offices and others); Tax and Social Security proceedings (represented by legal and administrative proceedings involving federal and municipal taxes); and Other proceedings (such as enforcement notices issued by Regional Councils that regulate the exercise of professions).For lawsuits unfavorable outcome of which is possible or remote, provisions are not set up, as provided for in legal and regulatory requirements, except for legal obligations.. Contingent assets are not accounted for. When there are collaterals or favorable judicial decisions in relation to which no more appeals may be lodged, the gain is considered practically certain, and there is confirmation as to its ability to be recovered through receipt or offset against another liability, said gain is recognized in the financial statements because the related asset is no longer a contingent asset. Contingent assets for which the inflow of economic benefits is probable have their nature disclosed in the explanatory notes, as well as an estimate of their financial effects, when practicable.

Legal obligations derive from tax obligations and a provision in their full amount is recognized in the Individual Financial Statements, regardless of the likelihood of success in ongoing lawsuits. o) Subordinated debts These are recorded at the cost of acquisition, restated by reference to the extra-market rate disclosed by Bacen when the funds are available and, when invested, by reference to the charges agreed upon by the borrowers. p) Interest on Equity (IOE) and Dividends The shareholders are entitled to receive, as mandatory minimum dividend for each year, 25% (twenty-five percent) of the net income for the year, pursuant to legislation, as established in the Bank’s Charter. Interest on equity may be attributed on minimum dividends. q) Use of estimates The preparation of the Individual Financial Statements includes estimates and assumptions, such as in determining allowances for loan losses, market value measurement of financial instruments, provision for contingencies, impairment losses and other provisions, e.g. provision for actuarial liabilities for health care and complementary pension plans, and life insurance, as well as for set up and realization of Deferred tax Assets/Liabilities. Actual results could differ from such estimates and assumptions. r) Earnings (loss) per share The Bank’s basic and diluted earnings per share were calculated by dividing net income attributable to shareholders by the weighted average number of total common shares. The Bank has no stock option, subscription bonus or any other right to acquire shares. Accordingly, basic and diluted earnings per share are the same. s) Recurring and nonrecurring income In compliance with Resolution BCB No. 2, of August 12, 2020, regarding the procedures for preparation, disclosure and filing of financial statements by Financial Institutions, item V, article 34 of Chapter II, which addresses considerations of nonrecurring income, nonrecurring income is considered to be income that: a) is not related or is incidentally related to the typical activities of the institution; and b) it is not expected to occur frequently in future years. The frequency of the income that is not related or is incidentally related to the institution's typical activities will be confirmed when occurring in more than two consecutive year.

NOTE 4 - Segment Reporting

For management purposes, the Bank is organized into two operating segments based on products and services: a) Own Portfolio - comprises own portfolio products and services such as: lending and market operations, fund management and provision of other banking services and collaterals; and b) FNE - comprises loans within the scope of FNE. Bank management manages operating income separately in order to make decisions on the fund allocation and performance assessment. The performance of each segment is assessed based on the financial margin plus bank fees. For the periods ended 12.31.2020 and 12.31.2019, no revenue from transactions with one single customer accounted for 10% or more of the Bank’s total revenue. The table below shows information on revenues, costs, expenses and financial margin of operating segments. Administrative expenses, as well as other expenses not directly allocated to each operating segment, are classified as corporate expenses and were included in column “Total”:

2nd half/2020 01.01 to 12 .31 .2020 01.01 to 12 .31 .2019 Specification Own Own Own FNE Total FNE Total FNE Total portfolio portfolio portfolio Revenues 1,912 ,366 1,238 ,461 3,150 ,827 3,628 ,411 2,581 ,490 6,209 ,901 4,381 ,526 3,147 ,055 7,528 ,581 Income from Loans 1,203 ,571 - 1,203 ,571 2,341 ,542 - 2,341 ,542 2,701 ,552 - 2,701 ,552 Gain (Loss) securities 287 ,860 191 ,270 479 ,130 418 ,424 622 ,193 1,040 ,617 1,015 ,985 1,532 ,607 2,548 ,592 Gain (loss) on derivative financial instruments (10 ,478) - (10 ,478) (10 ,478) - (10 ,478) 47 ,343 - 47 ,343 Foreign Exchange Gain (Loss) 217 ,592 - 217 ,592 556 ,099 - 556 ,099 167 ,308 - 167 ,308 Compulsory Investment Gains (Losses) 8,181 - 8,181 18 ,286 - 18 ,286 25 ,115 - 25 ,115 Other Revenues 205 ,640 1,047 ,191 1,252 ,831 304 ,538 1,959 ,297 2,263 ,835 424 ,223 1,614 ,448 2,038 ,671 Expenses (512 ,108 ) (571 ,753 ) (1 ,083 ,861 ) (1,436 ,222 ) (1,410 ,421 ) (2 ,846 ,643) (1 ,425 ,065 ) (1 ,918 ,389) (3 ,343 ,454) Open market expenses (185 ,869 ) - (185 ,869 ) (423 ,660 ) - (423 ,660 ) (858 ,758) - (858 ,758) Expenses on Borrowings and Onlending (96 ,770 ) (211 ,118 ) (307 ,888 ) (588 ,769 ) (661 ,775 ) (1,250 ,544 ) (168 ,186) (1 ,556 ,832) (1 ,725 ,018) Allowance for Loan Losses (Notes 9.e e 20.g ) (229 ,469 ) (360 ,635 ) (590 ,104 ) (423 ,793 ) (748 ,646 ) (1,172 ,439 ) (398 ,121) (361 ,557) (759 ,678) Financial Margin 1,400 ,258 666 ,708 2,066 ,966 2,192 ,189 1,171 ,069 3,363 ,258 2,956 ,461 1,228 ,666 4,185 ,127 Service Revenues 400 ,005 1,035 ,813 1,435 ,818 738 ,462 2,008 ,138 2,746 ,600 693 ,876 1,935 ,028 2,628 ,904 Income from Fees, Charges and Commissions 52 ,315 - 52 ,315 100 ,482 - 100 ,482 98 ,426 - 98 ,426 PASEP and COFINS (63 ,918 ) (102 ,658 ) (166 ,576 ) (100 ,861 ) (206 ,075 ) (306 ,936 ) (81 ,678) (199 ,853) (281 ,531) Income after Fees and Commissions 1,788 ,660 1,599 ,863 3,388 ,523 2,930 ,272 2,973 ,132 5,903 ,404 3,667 ,085 2,963 ,841 6,630 ,926 Administrative Expenses (1 ,823 ,077) (3 ,532 ,709) (3 ,288 ,545) Personnel Expenses (1 ,125 ,728 ) (2 ,175,475) (2 ,002 ,378) Depreciation and Amortization (6 ,547) (12 ,750) (11 ,609) Other Administrative Expenses (690 ,802) (1 ,344 ,484) (1 ,274 ,558) Other expenses (418 ,608 ) (570 ,712) (691 ,595) Expenses with Provisions, Except All owance for Loan Losses (68 ,700) (216 ,266) (215 ,953) Income Before Taxation and Profit Sharing 1,078 ,138 1,583 ,717 2,434 ,833 Income Tax and Social Contribution (349 ,799 ) (502 ,180) (592 ,902) Profit Sharing (41 ,655) (62 ,31 6) (105 ,246) Net Income 686 ,684 1,019 ,221 1,736 ,685

NOTE 5 - Cash and Cash Equivalents

Specification 12 .31 .2020 12 .31 .2019 Cash Equivalents 151 ,123 166 ,586 Foreign currency cash 3,922 1,939 Total Cash Equivalents 155 ,045 168 ,525 Interba nk investments (1) 3,191 ,148 3,275 ,927 Total Cash and Cash Equivalents 3,346 ,193 3,444 ,45 2 (1)Transactions whose maturity on the investment date is within 90 days.

NOTE 6 - Interbank Investments

Specification 12.31.2020 12.31.2019 Open market investme nts 3,191 ,148 3,275 ,927 Resale agreements pending settlement - Self-funded 3,191,148 3,275,927 position Interbank Deposits investment 1,190 ,015 100 ,431 Foreign Currency Investment 106 ,054 24 ,440 Interbank Deposits Investment 1,083 ,961 75 ,991 Total 4,381 ,163 3,376 ,358 Current 4,381 ,163 3,376 ,358

NOTE 7 - Securities and Derivative Financial Instruments a) Securities and Derivative Financial Instruments The restated cost (plus income earned) and the market value of securities are as follows: a.1) Securities Portfolio and Derivative Financial Instruments Specification 12.31.2020 12.31.2019 Securities available for sale (1) ) (Note 7.a.2) 38,548,015 39,423,052 Securities held to maturity (Not e 7.a.5) 287 ,793 266 ,972 Dif feren tial payable - swap (Not e 7.c) 10 ,479 - Total (1) 38 ,846 ,28 7 39 ,690 ,024 Current 4,489 ,936 1,747 ,783 Non -Current 34 ,356 ,351 37 ,942 ,241 (1) Net of Provisions for Impairment of Assets.

a.2) Marketable Securities Portfolio

12.31.2020 12.31.2019 Fair value Market Market value Market Market/ Securities available for sale Market/boo measuremen adjustment Final maturity Cost value adjustment 31 to 180 0 to 30 31 to 180 181 to 360 Over 360 k value t Level 181 to 360 No maturity No maturity days days days days days 0 to 30 days days Fixed Income Securities 13,325 - 107,584 4,280,091 33,496,582 37,494.920 37,897.582 402,662 38,650,858 371,940 Financial Treasury Bills (LFT) - - 107,584 4,280,067 28,796,460 2021 to 2025 33,257,992 33,184,111 (73,881) Level 1 34,367,391 9,960 National Treasury Notes (NTN) - - - - 3,537,961 2050 to 2055 2,821,842 3,537,961 716,119 Level 1 3,255,427 878,789 Financial Bills - - - - 1,068,350 2022 to 2023 1,097,104 1,068,350 (28,754) Level 3 887,069 (33,827) Debentures (1) 13,325 - - - 91,259 2035 314,891 104,584 (210,307) Level 3 137,935 (444,237) Federal Government Securities - FCVS - - - - 2,520 2027 3,030 2,520 (510) Level 3 2,959 (597) Federal Government Securities - Other - - - - - 1993 - - - Level 2 - (38,141) Agrarian Debt Bonds (TDAs) - - - 24 32 2021 to 2022 61 56 (5) Level 2 77 (7) Investment Fund Shares 504 - - - - 2,069 504 (1,565) 487 (1,602) Social Development Funds (FDS) - - - - - No Maturity 1,565 - (1,565) Level 3 - (1,602)

Investment Guarantee Fund (FGI) 460 - - - - No Maturity 460 460 - Level 2 445 -

Operation Guarantee Fund (FGO) 44 - - - - No Maturity 44 44 - Level 2 42 - Variable Income Securities 52,200 - - - - No Maturity 23,241 52,200 28,959 53,739 30,498 Other Tax Incentives (FINOR) 280 - - - - No Maturity 109 280 171 Level 1 171 62 Shares Issued by Publicly-Held 51,920 - - - - No Maturity 23,132 51,920 28,788 Level 1 53,568 30,436 Companies Security Deposits (1) - - - 7,259 590,470 598,342 597,729 (613) 717,968 (91) Financial Treasury Bills (LFT) - - - 7,259 590,470 2021 to 2025 598,342 597,729 (613) Level 1 717,968 875 Federal Government Securities - Other - - - - - 1993 - - - Level 3 - (966)

Total of Category 66,029 - 107,584 4,287,350 34,087,052 38,118,572 38,548,015 429,443 39,423,052 400,745

Tax credit (Note 21.c.i) 142,035 231,429

Provision for Deferred Taxes and (335,285) (413,323) Contributions (Note 21.d.f)

Total Market Value Adjustment 236,193 218,851 (1) Breakdown: Guarantees on Stock Exchange Transactions R$549,618 (R$535,858 at 12.31.2019); Guarantees on Clearing House Association Transactions R$3,349 (R$3,265 at 12.31.2019); Guarantees on Legal Proceedings R$14,633 (R$149,288 at 12.31.2019); and Other Guarantees R$30,129 (R$27,557 at 12.31.2019).

Due to classification of assets under the category “Securities Available for Sale”, the “Market Adjustment” balance of R$429,443 (R$400,745 at 12.31.2019) is recorded as “Other Comprehensive Income”. This adjustment, net of tax effects, corresponds to R$236,193 (R$218,851 at 12.31.2019).

a.3) Permanent Losses on Securities AvailableforSale Provisions for Cost, net of provision Specification Cost impairment of Assets (1) 12.31.2020 12.31.2019 Debentures 719,350 (404,459) 314,891 582,172 Federal government securities - other 39,825 (39,825) - 39,107 Total at 12.31.2020 759 ,175 (444 ,284 ) 314 ,891 Current (136,158)

Non-Current (308,126) Total at 12.31.2019 753 ,216 (13 2,237) 621 ,279 Current (75 ,658)

Non -Current (56 ,579) (1) As provided for in article 6 of Bacen Circular No. 3068, of 11.08.2001, the amount of R$312,047 was recognized as permanent loss, as follows: (a) R$39,825, which was recorded as “Federal Government Securities - Other”, referring to the write-off of government securities denominated by the National Treasury as NUCL910801, based on information obtained by the Bank, regarding difficulties for their recoverability; (b) R$272,222 from the Debentures portfolio; (in 2019, the amount of R$126,781 from the Debentures portfolio was recognized as permanent loss). a.4) Changes in Securities measured at Fair Value (Level 3)

Frozen Financial Specification Debentures Financial Bills Bills Balance at 12/31/2019 887 ,068 137 ,935 - Purchases/Judicial block 380,846 - 6,054 Sales/Judicial block (240,305) - (6,154) Amortization/Interest - (3 ,732) - Earnings 35,668 16,363 100 Devaluation in the Year - (7,690) - Permanent Losses (1) - (272,222) - Market Adjustment (2) 5,073 233 ,930 - Balance at 12/ 31/2020 1,068 ,35 0 104 ,584 - (1) Recognized in P&L; (2) Recognized in “Other Comprehensive Income”. a.5) Securities held to maturity

12.31.2020 12.31.2019 Cost Cost value Market Market Securities held to maturity Cost (book) Final value (1) value (1) 31 to (book) value 0 to 30 181 to 360 Over 360 maturity 0 to 30 181 to 360 180 value 31 to 180 days days days days days days days Fixed Income Securities - 18,493 - 269,299 287,793 272,847 266,972 251,995 National Treasury Notes (NTN) - P - - - 199,215 2030 199,215 184,269 187,756 172,779 FIP Criatec - 18,493 - - 2021 18,493 18,493 22,040 22,040 FIP Criatec II - - - 16,998 2023 16,998 16,998 14,963 14,963 FIP Criatec III - - - 7,000 2026 7,000 7,000 3,829 3,829 FIP Brazil Agribusiness - - - 9,996 2020 9,997 9,997 12,419 12,419 Northeast III FIP - - - 30,507 2023 30,507 30,507 25,965 25,965 FIP Anjo - - - 644 2029 644 644 - - Vinci Impacto e Retorno IV Feeder B - - - 4,939 2030 4,939 4,939 - - Total of Category - 18,493 - 269,299 287,793 272,847 266,972 251,995 (1) The market values described above are for illustrative purposes only, and no accounting record has been made in this respect, as required by BACEN Circular No. 3068 of 11.08.2001.

a.5.i) In the year ended, there were no reclassifications of securities into the categories above, and no held-to-maturity securities were sold. a.5.ii) Bank Management states that the institution has the financial capacity and the intention to keep these securities held under this category until maturity. b) Income from Marketable Securities

01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31.2019 Open Market Investments 27 ,997 78 ,086 393 ,012 Interbank Deposit Investments 5,632 12 ,809 5,233 Fixed Income Securities 443 ,016 946 ,712 2,148 ,621 Variable Income Securities 2,485 3,010 1,726 Total 479 ,130 1,040 ,617 2,548 ,592

c) Derivative Financial Instruments The Bank operates under a conservative investment policy focused on investing strictly in compliance with the maturity terms and rates established by the respective sources of funds in order to avoid any mismatching among assets and liabilities in terms of maturities, interest rates and applicable indexes. At 12/31/2020, the Bank had swap transactions registered with B3 S.A., and the notional value of these transactions is recorded in memorandum accounts (notional value) while the related book value is recorded under “Differential payable”, as shown below:

Breakdown at 12.31.2020 (1) Market Notional Market value Curve value adjustment Specification value Differential Differential Differential Differential Negative receivable payable receivable payable Long position Foreign currency (dollar) 236 ,606 - 10 ,479 - 10 ,137 342 Short position Rate (CDI) ------Total 236,606 - 10 ,479 - 10 ,137 342 (1) At 12.31.2019 there was no derivative financial instruments balance.

12.31.2020 (1) Specification Differential Differential receivable payable Within 3 months - 2,182 3 to 12 months - 8,297 1 to 3 years - - 3 to 5 years - - Total - 10,479 (1) At 12.31.2019 there was no derivative financial instruments balance.

c.1) Derivative Financial Instruments Classified as Market Risk Hedge Specification 12.31.2020 (1) Curve value Market value Market value Hedging Instruments Assets Liabiliti Assets - Liabilities adjustment - dollar es - CDI dollar - CDI Swap - Foreign currency - Long position 227 ,207 237 ,34 4 226 ,865 237 ,344 (342) (1) At 12.31.2019 there was no derivative financial instruments balance.

d) Gain (loss) on Derivative Financial Instruments

2nd 01.01 to 01.01 to Specification half/2020 12.31.2020 12.31.2019 Swap (10,479) (10,479) 47,343 Total (10 ,47 9) (10 ,479 ) 47 ,343

NOTE 8 - Linked Credits a) Linked Credits 12.31.2020 12.31.2019 Specification Gross Net Gross Net Provision Provision amount amount amount amount Mandatory Payments - Savings Deposits 819 ,374 - 819 ,374 518 ,222 - 518 ,222 Compulsory Reserves - Cash Funds 27 ,037 - 27 ,037 7,069 - 7,069 National Housing System (SFH) 87 ,639 (8 ,476) 79,163 83 ,126 (8 ,375) 74 ,751 National Treasury - Rural credit - - - 152 - 152 Total 934 ,050 (8 ,476) 925 ,574 608 ,569 (8 ,375) 600 ,194 Current 846 ,411 - 846 ,411 525 ,291 - 525 ,291 Non -Current 87 ,639 (8 ,476) 79 ,163 83 ,278 (8 ,375) 74 ,903 b) Compulsory investment gain/loss 2nd 01.01 to 01.01 to Specification half/2020 12 .31 .2020 12 .31 .2019 Income from Linked Credits - Central Bank of Brazil 5,944 13 ,874 20 ,945 Income from Linked Credits – SFH 2,288 4,513 4,268 Appreciation (Devaluation) of Linked Credits (50) (101 ) (98) Total 8,182 18 ,286 25 ,115

NOTE 9 - Loan portfolio and Allowance for Loan Losses a) Loan Portfolio and Allowance for Loan Losses Associated with Credit Risk 12.31.2020 12.31.2019 Specification Gross Gross Allowance Allowance amount amount Loans 12 ,343 ,059 (666 ,242) 10 ,035 ,283 (604 ,169) Current 7,250 ,904 (253 ,364) 5,412 ,295 (330 ,178) Non -Current 5,092 ,155 (412 ,878) 4,622 ,988 (273 ,991) Other Accounts with Loan Features 837 ,922 (94 ,745) 903 ,400 (89 ,761) Current 819,537 (94,745) 886,812 (89,761) Non-Current 18,385 - 16,588 - Total 13 ,180 ,981 (760 ,987) 10 ,938 ,683 (693 ,930) a.1) Breakdown of the Loan Portfolio Specification 12.31.2020 12.31.2019 Advances to Depositors 534 283 Loans 6,729,813 5,371,883 Discounted Credit Notes 3,195 7,311 Financing 1,828,230 1,583,077 Financing in foreign currency 7,630 24,525 Agribusiness Financing 3,099 5,273 Rural Financing 1,890,700 1,162,224

Infrastructure and Development Financing 1,879,858 1,880,707 Loans Subtotal 12,343,059 10,035,283 Income Receivable from Advances Granted 14,913 13,602 Debtors for Purchase of Assets 17,403 15,894 Notes and Credits Receivable 43,443 51,174 Advances on Exchange Contracts (ACC) (1) 762,163 822,730 Other Accounts with Loan Features Subtotal 837,922 903,400 Total 13,180,981 10,938,683 (1 ) Accounts classified as “Other Obligations/ Foreign Exchange Portfolio”. a.2) Income from Loans 01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31.2019 Loans and Discounted Credit Notes 697 ,280 1,352 ,766 1,132 ,575 Financing 173 ,279 488 ,518 425 ,489 Agribusiness Financing 389 804 964 Rural Financing 201 ,374 281 ,774 645 ,155 Recovery of Loans Written off as Losses 131 ,249 217 ,680 497 ,369 Total 1,203 ,571 2,341 ,542 2,701 ,552 b) Operations broken down by maturity b.1) Current Loans (1) Type of 01 to 30 31 to 60 61 to 90 91 to 180 181 to 360 Over 360 Total at Total at Customer/Activity days days days days days days 12.31.2020 12.31.2019 Rural 2,551 4,138 1,108 167 ,647 705 ,896 942,650 1,823 ,990 1,140 ,390

Manufacturing 29 ,660 32 ,151 27 ,210 392 ,659 447 ,645 1,498 ,152 2,427 ,477 2,207 ,801 Government 68 68 34 ,411 168 34 ,592 429 ,269 498 ,576 445 ,918 Other Services 113 ,238 107 ,385 96 ,963 292 ,282 318 ,292 1,415 ,050 2,343 ,210 2,292 ,348 Trade 869 ,974 819 ,530 768 ,715 1,568 ,738 959 ,428 698 ,269 5,684 ,654 4,289 ,381 Financial Brokers 4 3 3 8 375 15 ,198 15 ,591 12 ,376 Individuals 18 ,182 9,049 5,536 10 ,043 8,725 9,029 60 ,564 75 ,437 Total at 12.31.2020 1,033,677 972,324 933,946 2,431,545 2,474,953 5,007,617 12,854,062 Total at 12.31.2019 1,085,381 963,577 896,079 1,545,567 1,512,388 4,460,659 10,463,651 (1) Include loans overdue up to 14 days.

b.2) Past due loans Falling due installments Type of 01 to 30 31 to 60 61 to 90 91 to 180 181 to 360 Over 360 Total at Total at Customer/Activity days days days days days days 12.31.2020 12.31.2019 Rural 882 35 2 21 67 41 ,258 42 ,265 628 Manufacturing 1,115 1,112 928 5,371 4,939 15 ,036 28 ,501 107 ,014 Other Services 3,176 2,786 2,423 6,148 9,276 37 ,660 61 ,469 67 ,656 Trade 12 ,887 10 ,235 8,310 16 ,375 13 ,402 8,168 69 ,377 117 ,487 Individuals 94 82 73 216 340 801 1,606 2,885 Total at 12.31.2020 18 ,154 14 ,250 11 ,736 28 ,131 28 ,024 102 ,923 203 ,218 Total at 12.31.2019 57 ,127 6,354 6,068 18 ,062 29 ,146 17 8,913 295 ,670

Past due installments Type of 01 to 14 15 to 30 31 to 60 61 to 90 91 to 180 181 to 360 Over 360 Total at Total at Customer/Activity days days days days days days days (1) 12.31.2020 12.31.2019 Rural - 783 - 689 2,590 584 23 ,016 27 ,662 26 ,480 Manufacturing 547 1,007 1,366 840 1,349 1,380 191 6,680 19 ,052 Other Services 3,617 2,342 2,790 1,728 3,457 2,627 171 16 ,732 26 ,578 Trade 18 ,061 9,994 10 ,206 6,772 14 ,637 9,150 59 68 ,879 100 ,427 Individuals 14 361 283 297 785 1,839 169 3,748 6,825 Total at 22,239 14,487 14,645 10,326 22,818 15,580 23,606 123,701 12.31.2020 Total at 101,658 5,417 8,487 6,809 17,576 13,950 25,465 179,362 12.31.2019 (1 ) These include amounts referring to loans taken out based on CMN Resolution No. 2471 of 02.26.1998 and classified under Current Assets in the Balance Sheet. c) Breakdown by Risk Level 12.31.2020 12.31.2019 Risk Past Current Past due Total level Current due Total Allowance Regular Prudential Total loan (1) loan portfolio loan (1) loan portfolio allowance allowance (2) allowance AA 3,468 ,555 - 3,468 ,555 - (23 ,763) (23 ,763) 2,920 ,892 - 2,920 ,892 - A 6,966 ,471 - 6,966 ,471 (34 ,833) (110 ,371) (145 ,204) 5,875 ,376 - 5,875 ,376 (29 ,377) B 1,197 ,457 42 ,910 1,240 ,367 (12 ,404) (7 ,348) (19 ,752) 630 ,622 41 ,61 0 672 ,232 (6 ,722) C 616 ,927 39 ,893 656 ,820 (19 ,705) (1 ,406) (21 ,111) 560 ,877 33 ,315 594 ,192 (17 ,826) D 168 ,597 27 ,942 196 ,539 (19 ,654) (929) (20 ,583) 126 ,094 36 ,557 162 ,651 (16 ,265) E 31 ,055 24 ,317 55 ,372 (16 ,612) (850) (17 ,462) 36 ,034 20 ,377 56 ,411 (16 ,923) F 135 ,086 12 ,890 147 ,976 (73 ,988) (1 ,541) (75 ,529) 7,744 31 ,801 39 ,545 (19 ,772) G 27 ,783 11 ,595 39 ,378 (27 ,564) (516) (28 ,080) 79 ,523 21 ,606 101 ,129 (70 ,790) H 242 ,131 167 ,372 409 ,503 (409 ,503) - (409 ,503) 226 ,489 289 ,766 516 ,255 (516 ,255) Total 12,854 ,062 326 ,919 13 ,180 ,981 (614 ,263) (146 ,724 ) (760 ,987) 10 ,463 ,651 475 ,032 10 ,938 ,683 (693 ,930) (1) (1) These include loans overdue up to 14 days. (2) At 12.31.2020, this includes a prudential allowance in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d.

d) Changes in Allowance for Expected Loan Losses Specification 12.31.2020 12.31.2019 Opening Balance of Allowance f or Expected Loan Losses 693 ,930 627 ,659 (+) Set -up of Allowance in the Year according to CMN Resolution No. 2682 277 ,331 398 ,121 (+) Set -up of Prudential Allowance in the Year 146 ,724 - (-) Loans written off as loss for the year (356 ,998 ) (331 ,850) (= ) Net Allowance for Expected Loan Losses 760 ,987 693 ,930 Opening Balance of Allowance for Other Credit Losses without Loan Features 27 ,354 27 ,848 (+) Set -up of Allowance for the Year 187 153 (-) Reversal of Allowance for the Year (448 ) (647) (=) Net Allowance for Other Credit Losses without Loan Features (Note 10.b.b) 27 ,093 27 ,354 (=) Allowance for Expected Loan Losses 788 ,080 721 ,284

The Bank adopted a series of fundamental measures to reduce possible impacts on the loan portfolio, such as the extension and renegotiation of terms, expansion of grace periods for loans and financing, including for microloans. Even with adoption of these measures, an increase in the credit risk of the Bank's portfolio is

expected, which led to the set-up of a prudential allowance in the amount of R$509,914, consisting of a reserve for the uncertainties of the economy. Of this additional amount, R$146,724 refers to transactions performed by the Bank itself (Note 9.c) and R$363,190 to transactions of Funds over which the Bank holds risks, where R$362,061 relates to FNE (Note 26.d) and R$1,129 to FNDE (Note 9.f).

Said allowance was based on a model developed internally and approved by the Executive Board, which considered, among other conditions, the history of default, studies by sector of economic activity developed by the Technical Office for Economic Studies of the Northeast (Etene), linked to the Bank, and the economic activities registered in Administrative Ruling No. 20809 of the Ministry of Economy, as well as future expectations through assessment of the current and prospective economic scenarios.

The study's conclusions indicated the construction of assumptions, including application of additional estimates of allowance as a proxy for the average default rate projected for the entire loan portfolio exposed to risk, using appropriate statistical methodology and treatment. The expectation of additional allowance identified through these scenarios was segmented into percentages of additional allowance, by economic activity, according to the section of the National Classification of Economic Activities (CNAE), for application on the Institution’s loans. e) Breakdown of the Balance of Allowance for Expected Loan Losses 01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31.2019 (+) Expenses with Allowance for Loan Losses Associated with Credit Risk 242 ,830 427 ,501 318 ,237

(+) Expenses with Allowance for Losses on Other Credits 2,452 12 ,086 81 ,047 (-) Reversal of Operating Provisions (15 ,532) (15 ,532) (1 ,163) (=) Balance of Expenses with Allowance for Losses on Other Credits with Loan Features 229 ,750 424 ,055 398 ,121 (+) Allowance for Losses on Other Credits without Loan Features - 19 56 (-) Reversals of Allowances for Other Credits without L oan Features (281) (281) (56) (=) Net Allowance for Loan Losses Associated with Credit Risk (1) 229 ,469 423 ,793 398 ,121 (1) At 12.31.2020, this includes a prudential allowance in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d. f) Financial Guarantees Provided

12.31.2020 12.31.2019 Specification Balance Provision (1) Balance Provision Public Sector 36 ,148 ,244 (2 ,97 4,937) 28 ,525 ,698 (2 ,748 ,825) FDNE 126,106 (2,389) 136,129 (1,234) FNE 36,022,026 (2,972,548) 28,387,515 (2,747,591) Proagro 112 - 2,054 - (1) At 12.31.2020, this includes a prudential allowance in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d. f.1) Changes in Provision for Financial Guarantees Provided Specification 12.31.2020 12.31.2019 Opening Balance of Provision for Financial Guarantees Provided 2,748 ,825 2,990 ,936 (+) Provision Recognized/(Reversed) for the Period 2,148 ,637 1,360 ,304 (-) Reversal/Use/Write -off (1 ,922 ,525 ) (1 ,602 ,415) (=) Provision for Financial Guarantees Provided (1) 2,974 ,937 2,74 8,825 Current 954 ,798 960 ,882 Non -Current 2,020 ,139 1,787 ,943 At 12.31.2020, this includes a prudential provision in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d. f.2) Breakdown of the Balance of Provision for Financial Guarantees Provided 01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31.2019 (+) Set-up of Expenses for Provision for Financial Guarantees Provided 202 ,572 335,18 6 242 ,502 (-) Reversals of Provision for Financial Guarantees Provided (5 56 ,079 ) (1 ,075 ,270 ) (596 ,79 1) (=) Net Expense of Provision for Financial Guarantees Provided (1) (353 ,507 ) (740 ,084 ) (3 54 ,289 )

(1) At 12.31.2020, this includes a prudential provision in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d. g) Concentration of Loans 12.31.2020 12.31.2019 Specification Balance % of portfolio Balance % of portfolio 10 Major debtors 1,968,710 14.94 1,983,570 18.13 50 Major debtors 3,916,516 29.71 4,003,785 36.60 100 Major debtors 4,765,937 36.16 4,576,639 41.84

h) In 2020, loans written off as losses were recovered in the amount of R$217,680 (R$259,966 at 12.31.2019) and renegotiations totaled R$3,005,194 (R$1,024,023 at 12.31.2019). The renegotiations in the year were impacted by the measures adopted to mitigate the economic effects of the Covid-19 pandemic of approximately R$2,200,338, as shown in the table below:

Type of settlement Number Amount renegotiated Supplementary Law No. 173/20 - BID 6 119 ,623 CMN Resolution No. 4801/20 – Autom atic Renegotiation 283 102 CMN Resol ution No. 4782 and No. 4798/20 – Automatic Renegotiation 13 ,502 1,098 ,654 Covid19 Renegotiation - Additional 82 5,081 Covid19 Digital Renegotiation - Additional 236 2,411 CMN Res. No. 4840/2020 – Automatic Renegotiation Pronaf B 251 36 CMN Res. No. 47 82/2020 8,640 486 ,448 CMN Res. No. 4798/2020 784 43 ,884 CMN Res. No. 4801 28 6,535 Crediamigo restoration 68 ,469 437 ,564 Total 92 ,281 2,200 ,338

NOTE 10 – Other Assets

Specification 12.31.2020 12.31.2019 e) Sundry 1,393 ,301 1,278 ,180 Debtors for Escrow Deposits 558 ,896 513 ,595 Taxes and contributions to be offset 538 ,782 456 ,321 Tax Incentive Options 26 ,748 26 ,748 Notes and credits receivable 43 ,443 51 ,174 Advances and Early Salary Payments 1,776 2,981 Payments to be Refunded 1,384 3,587 Amounts receivable - bonus/rebates 52 ,144 62 ,396 Other Amounts 170 ,128 161 ,37 8 b) Allowance for Other Credit Losses without loan features (Note 9.d) (27 ,093 ) (27 ,354) Total 1,366 ,208 1,250 ,826 Current 789 ,568 1,051 ,705 Non -Current 576 ,640 199 ,121

NOTE 11 - Foreign Exchange Portfolio a) Breakdown

Specification 12.31.2020 12.31.2019 Assets - Other Credits 822 ,414 855 ,128 Exchange Purchased to be Settled 805 ,077 841 ,527 Rights on Exchange Sales 2,424 629 Advances Received in Local Currency - (629) Income Receivable from Advances Granted 14 ,913 13 ,601 Current assets 822 ,414 855 ,128 Liabilities - Other obligations (Note 16.b) 3,695 1,354 Exchange Purchase Obligations 763 ,438 823 ,454 Exchange Sold to be Settled 2,419 629 (Advances on Exch ange Contracts - ACC) (Note 9.a.1) (762 ,163) (822 ,730) Other Amounts 1 1 Current Liabilities (Note 16.b) 3,695 1,354

b) Foreign Exchange Gains (Losses)

2nd 01.01 to 01.01 to Specification half/2020 12.31.2020 12.31.2019 Exchange Income 217 ,841 556 ,913 168 ,261 Exchange Expenses (249) (814) (953) Total 217 ,592 556 ,099 167 ,308 NOTE 12 - Investments, Property and Equipment and Intangible Assets

a) Investments Represented by investments in Shares, Units of Interest, and Artworks and Valuables. Balance at 12.31.2020: R$ 1,412 (R$ 1,592 at 12.31.2019).

b) Property and Equipment

12.31.2019 01.01.2020 to 12.31.2020 12.31.2020 Changes Accounti Specification Accounting Cost ng balance Additions Write-offs Depreciation value balance Buildings 83 ,05 7 2,648 - (1 ,691) 266 ,838 (182 ,824) 84 ,014 Data processing system 83 ,185 9,155 (1,199 ) (7 ,482) 188 ,085 (104 ,426) 83 ,659 Furniture and equipment in use 34 ,209 5,198 (12 ,264 ) (3 ,115) 82 ,170 (58 ,142) 24 ,028 Land 16 ,969 - - - 16 ,969 - 16 ,969 Facilities 5,634 22 (22 ) (105) 19 ,005 (13 ,476) 5,529 Communication system 100 - (1) (10) 291 (202) 89 Security system 7,143 11 ,689 (111 ) (346) 18 ,455 (80) 18 ,375 Transportation system 21 - - (1) 14 ,351 (14 ,331) 20 Total 230 ,318 28 ,712 (13 ,597) (12 ,750) 606 ,164 (373 ,481) 232 ,683

c) Intangible assets Represented by expenses with intangible assets in use. Balance at 12.31.2020: R$721 (R$ 563 at 12.31.2019).

NOTE 13 - Deposits, Open Market Funding, Funds from Acceptance and Issue of Securities, Debt Instruments Eligible to Capital and Subordinated Debts a) Breakdown of deposits, funds from acceptance and issue of securities, debt instruments eligible to capital and subordinated debts by maturity

From 5 0 to 3 3 to 12 1 to 3 3 to 5 Over 15 Total at Total at Specification to 15 months months years years years 12.31.2020 12.31.2019 years Demand deposits 853,237 - - - - - 853,237 405,302 Savings deposits 4,050,698 - - - - - 4,050,698 2,633,831 Interbank Deposits 1,310,634 685,478 - - - - 1,996,112 1,165,021 Time deposits 721,054 684,339 4,500,272 1,453,332 465,075 197,564 8,021,636 8,045,700 Time deposits 326,957 659,949 2,609,180 1,383,941 395,684 197,564 5,573,275 5,711,384 Interest-Yielding Judicial Deposits 352,525 - - - - - 352,525 329,858 Finor/Cash and cash Equivalents and Reinvestments - - - 1,886,166 69,391 69,391 - 2,024,948 1,932,733 Law No. 8167 FAT - Funds Available 1 5 3 - - - 9 1,105 FAT - Funds Applied 2,518 7,387 4,923 - - - 14,828 17,718 Other 39,053 16,998 - - - - 56,051 52,902 Funds from acceptance and issue of securities (Note - 1,178 - - - - 1,178 46,107 15) Agribusiness Credit Bills (LCA) ------44,074 Financial Bills - charges - 1,178 - - - - 1,178 2,033 Debt instruments eligible to capital (Note 17.a) - - - - - 1,295,889 1,295,889 1,551,040 Subordinated Debts Eligible to Capital (Note 17.c) - - - - - 2,660,982 2,660,982 2,545,199 Total at 12.31.2020 6,935,623 1,370,995 4,500,272 1,453,332 465,075 4,154,435 18,879,732 Total at 12.31.2019 4,172,932 1,994,003 3,676,111 1,704,789 886,107 3,958,258 16,392,200

b) Deposits

Specification 12.31.2020 12.31.2019 Demand deposits 853 ,237 405 ,302 Government deposits 6,635 6,527 Linked Deposits 263 ,302 175 ,616 Legal entities 477 ,880 173 ,543 Individuals 100 ,136 48 ,152 Other Amounts 5,284 1,464 Savings deposits 4,050 ,698 2,633 ,831 Free savings deposits - Individuals 2,376 ,678 1,741 ,528 Free savings deposits - Legal entities 1,672 ,434 891 ,360 From related parties and Financial System Institutions 1,584 943 Other De posits 2 - Interbank Deposits 1,996 ,112 1,165 ,021 Time deposits 8,021 ,636 8,045 ,700 Time deposits 5,573 ,275 5,711 ,384 Interest -Yielding Judicial Deposits 352 ,525 329 ,858 Other time deposits 2,095 ,836 2,004 ,458 Interest -yielding special depos its/FAT (Notes 27 and 29.a.1) 14 ,837 18 ,823 Funds Available (Note 27) 9 1,105 Protrabalho 9 346 PNMPO - 759 Funds Applied (Note 27) 14 ,828 17 ,718 Protrabalho 14 ,828 17 ,718 Finor/Cash and cash equivalents and Reinvestments (Law No. 816 7/91) 2,024 ,948 1,932 ,733 Other Amounts 56 ,051 52 ,902 Total 14 ,921 ,683 12 ,249 ,854 Current 8,305 ,440 5,870 ,828 Non -Current 6,616 ,243 6,379 ,026 c) Open Market Funding

Specification 12.31.2020 12.31.2019 Own portfolio 8,728 ,417 1,551 ,725 Financial Treasury Bills (LFT) 8,728 ,417 1,551 ,725 Total 8,728 ,417 1,551 ,725 Current 8,681 ,024 1,545 ,801 Non -Current 47 ,393 5,924 d) Expenses with Open Market Funding

01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31.2019 Funding exp enses (137 ,817) (329 ,042) (742 ,228) Time deposits (63 ,886) (160 ,407) (351 ,529) Savings deposits (28 ,828) (63 ,635) (81 ,521) Judicial deposits (4 ,158) (10 ,049) (17 ,072) Interbank Deposits (15 ,065) (30 ,950) (37 ,394) Special deposits (19 ,271) (52 ,027) (106 ,649) Funds from acceptance and issue of securities - (139) (137 ,277) Other deposits (6 ,609) (11 ,835) (10 ,786) Expenses with open market funding (48 ,052) (94 ,618) (116 ,530) Third -party portfolio - - (5 ,083 ) Own portfolio (38 ,852) (69 ,030) (83 ,001) Financial Bills (9 ,200) (25 ,588) (28 ,446) Total (185 ,869) (423 ,660) (858 ,758)

NOTE 14 - Borrowings and Onlending a) Breakdown Borrowings and Onlending by maturity

0 to 3 3 to 12 1 to 3 3 to 5 5 to 15 Over 15 Total at Total at Specification months months years years years years 12.31.2020 12.31.2019

Foreign Borrowings 99 ,187 805 ,695 - - - - 904 ,882 881 ,557

Domestic onlending 78 ,993 63 ,153 317 ,887 319 ,500 401 ,850 32 ,570 1,213 ,953 1,167 ,737

Foreign onlending 159 ,438 139 ,019 207 ,951 102 ,435 102 ,436 - 711 ,279 431 ,862 Total at 12.31.2020 337,618 1,007,867 525,838 421,935 504,286 32,570 2,830,114

Total at 12.31.2019 194 ,151 847 ,465 491 ,331 451 ,005 459 ,362 37 ,842 2,481 ,156 Current 1,345 ,485 1,041 ,616 Non-Current 1,484 ,629 1,439 ,540 b) Domestic Onlending - Official Institutions

Specification Annual restatement rate (%) 12.31.2020 12.31.2019 National Treasury IGP - DI + 2.00 614 505 BNDES Fixed rate 1.5 to 9 .85 1,174 ,359 1,118 ,933 POC (credit facility granted by the BNDES agents to small and medium -sized companies to buy 722 ,252 729 ,216

Credit Facility for investment in agriculture 452 ,107 389 ,717 FINAME Fixed rate 1.5 to 7.00 38 ,980 48 ,299 “Programa Automático” (program for purchase of 13 ,986 27 ,528

Agricultural Program 24 ,994 20 ,771 Total (Note 29.a.1) 1,213 ,953 1,167 ,737 Currente 142 ,146 102 ,555 Non -Current 1,071 ,807 1,065 ,182 c) Borrowings

Annual Specification restatement rate 12.31.2020 12.31.2019 (%) Foreign borrowings/Foreign currency payabl es USD 904 ,882 881 ,557 Total 904 ,882 881 ,557 Current 904 ,882 881 ,557 d) Foreign Onlending

Annual Specification restatement rate 12.31.2020 12.31.2019 (%) BID - Prodetur II USD + 1.12 479,439 427,022 BID - Other Programs USD + 1.12 4,642 4,840 Corporação Andina de Fomento – CAF USD + 1.00 a 1.17 227,198 - Total 711,279 431,862 Current 298,457 57,504 Non-Current 412,822 374,358

e) Expenses with borrowings and onlending

2nd 01.01. to 01.01. to Specification half/2020 12.31.2020 12.31.2019 Borrowing Expenses - Domestic - - (6) Expenses with Onlending (121 ,715) (338 ,732) (179 ,080) Domestic onlending - Official institutions (118 ,304) (176 ,796) (95 ,838) National Treasury (88) (109) (24) BNDES (113 ,487) (170 ,160) (92 ,965) Finame (4 ,729) (6,527) (2 ,849) Foreign onlending expenses (3 ,411) (161 ,936) (83 ,242) Expenses on Onlending with Foreign Banks (14 ,622) (331 ,263) (141 ,305) Expenses with Financial and Development Funds (171 ,551) (580 ,549) (1 ,404 ,627) Total (307 ,888) (1 ,250 ,544) (1 ,725 ,018)

NOTE 15 - Funds from Acceptance and Issue of Securities

a) Funds from Real Estate, Mortgage, Credit and Similar Notes

Specification Remuneration Nominal value 12.31.2020 12.31.2019

Agribusiness Credit Bills (LCA) (1) - - - 44,074 Financia l Bills - contractual charges 117% da Selic 795 ,889 1,178 2,033 Total 1,178 46 ,107 Current 1,178 46 ,107 (1) These matured on 03.23.2020.

NOTE 16 - Other Liabilities

Specification 12.31.2020 12.31.2019 a) Collection and Transfer of Taxes and Levies 675 1,699 Funds from Proagro 57 76 Tax on Financial Transactions (IOF) Payable 182 832 Other Taxes and Levies 436 791 b) Foreign Exchange Portfolio (Note 11.a) 3,695 1,354 c) Social and Statutory 306 ,856 337 ,855 Return on Capital Payable 242 ,606 232 ,293 Profit Sharing 64 ,250 105 ,562 d) Tax and Social Security 939 ,336 657 ,199 Provision for Income Tax and Social Contribution (Note 21.a.2) 831 ,724 543 ,083 Income Tax 460 ,330 331 ,949 Social Contribution 371 ,394 211 ,134 Taxes and Contributions Pa yable 107 ,612 114 ,116 e) Sundry 566 ,242 683 ,178 Accrued Payments 400 ,160 519 ,213 Personnel Expenses 212 ,030 189 ,823 Other Amounts 105 ,562 89 ,402 Interest and Charges on Debt Instruments Eligible to Capital 82 ,568 239 ,988 Other Amounts 166 ,082 163 ,965 Total 1,816 ,804 1,681 ,285 Current 1,816 ,804 1,681 ,285

NOTE 17 - Debt Instruments Eligible to Capital (Note 28.g.ii) a) Tier I Referential Equity - Principal Capital: On 01.19.2016, the Bank and Federal Government entered into a loan agreement in the amount of R$1,000,000 for purposes of classification as instrument eligible to principal capital, as provided for in article 16 of CMN Resolution No. 4192 of 03.01.2013, amended by CMN Resolution No. 4278 of 12.31.2013 and CMN Resolution No. 4311 of 02.20.2014. Interest will be settled in an annual lump-sum payment, restated by the Selic rate up to the effective payment date, within 30 days from the payment of dividends referring to P&L determined in the closing balance sheet of the fiscal year. In case the retained earnings balance, of income reserves, including legal reserve and capital reserves of the Bank, is not sufficient to absorb its losses calculated upon closing of the balance sheet of the fiscal year, the Bank will be relieved from the remuneration and will use the amounts due as interest overdue and the principal balance, in that order, up to the amount required to offset losses, the debt to which the agreement refers being duly settled for all purposes.

Any unpaid charges will not accrue. In the event the payment or dividend credit is not performed (including as interest on equity) until December 31 of the subsequent fiscal year, the financial charges unpaid will no longer be enforceable definitely. The obligation has no maturity date and it may only be redeemed or repurchased by the issuer, subject to prior authorization by BACEN.

Amount Funding Specification Remuneration 12.31.2020 12.31.2019 issued date Debt Instruments Eligible to Principal 1,000,000 Profitability on Equity 01.19.2016 500,000 750,000 Capital (Note 29.a.1) Current - 250,000 Noncurrent 500,000 500,000 b) Tier I Referential Equity - Complementary Capital: In June 2019, the Bank issued 2,667 (two thousand six hundred sixty-seven) Subordinated Financial Bills, without maturity date. Bacen authorized to compose the Tier I Referential Equity, as Complementary Capital, by the funding amount (R$801,040).

Amount Funding Specification Interest 12.31.2020 (2) 12.31.2019 issued Date Financial Bills (1) 801 ,040 117% of Selic 06 .2019 795 ,889 801 ,040 Current - - Noncurrent 795,889 801,040 (1) Interest paid every six months. (2) In 2020, Financial Bills totaling R$5,151 were repurchased. c) Tier II Referential Equity: Subordinated Debts comprise two funding operations with FNE in the original amounts of R$600,000 and R$400,000, maturing on 07.20.2009 and 03.01.2010, respectively.

Specification 12.31.2020 12.31.2019 Fundo Constitucional de Financiamento do Nordeste (FNE) 2,660 ,982 2,545 ,199 Funds available 1,855 ,825 1,629 ,532 Funds applied 805 ,157 915 ,667 Total (Note 29.a.1) 2,660 ,982 2,545 ,199

NOTE 18 - Income Received in Advance

Income from the strategic commercial partnership agreement entered into with Icatu Seguros, exclusively for the development and sale of Insurance services relating to Life Insurance, Credit Life Insurance and Private Pension Products insurance lines, in the Bank's distribution network. Income was originally recognized in an Income statement account; however, after a more detailed analysis and, in line with accounting practices, a conclusion was reached for the deferral for a 20-year period, which corresponds to the contract period. The amount corresponding to 1/240 th is monthly recognized in an Income statement account.

Specification 12.31.2020 12.31.2019 Opening Balance of Income Received in Advance 200 ,000 - (-) Appropriation in the year (1) (6,398) - (=) Closing Balance to be Appropriated 193 ,602 - Current 10 ,000 - Noncurrent 183 ,602 - (1) Appropriation in the first month (May/2020) corresponds to 21/31 of the monthly amount based on the date of inflow of the resources.

NOTE 19 - Equity a) Capital The Bank’s capital in the amount of R$5,569,988 (R$3,813,000 at 12.31.2019) is represented by 86,371,464 common, book-entry, paid-in shares, with no par value, held as follows:

Specification 12.31.2020 12.31.2019 Number of Shareholders % of Capital Number of shares % of Capital Shares Federal Government 47 ,896 ,415 55 .45 47 ,896 ,415 55 .45 FI CAIXA FGEDUC MULTIMERCADO 30 ,205 ,568 34 .97 30,205 ,568 34 .97 BB FGO Fundo de Investimento em Ações 6,206 ,000 7.19 6,206 ,000 7.19 Other 2,063 ,481 2.39 2,063 ,481 2.39 Total 86 ,371 ,464 100 .00 86 ,371 ,464 100 .00

At the Extraordinary General Meeting held on 03.27.2020, shareholders approved the capital increase by R$1,756,988, arising from the incorporation of Statutory Reserves - Reserve for Operational Margin amounting to R$1,472,588 and Reserve for Complementary Dividend Equalization amounting to R$284,400, without issuing new shares. Capital increased from R$3,813,000 to R$5,569,988, represented by 86,371,464 common, book-entry, paid-in shares, with no par value. The capital increase was approved by the Central Bank. b) Revaluation Reserve The amount of R$13,671 (R$13,726 at 12.31.2019) refers to the balance revaluation of property and equipment in use, recognized on 02.26.1993. This reserve will be maintained through its effective realization date either as a result of depreciation, write-off or disposal, pursuant to CMN Resolution No. 3565 of 05.29.2008. In the period, the amount of R$55 (R$253 at 12.31.2019) was transferred to Retained Earnings (Accumulated Losses) and comprised the calculation basis of Dividends/IOE for the period. c) Payment of Compplementary Dividends and IOE for 2019 Through the Annual General Meeting held on 03.27.2020, the payment of compplementary Dividends and Interest on Equity (IOE) for the year ended 12.31.2019 was approved in the amount of de R$231,960. This payment was made on 04.08.2020. d) Dividends and IOE for the Year The Bank’s Articles of Incorporation ensure to shareholders minimum dividend of 25% on net income calculated in the year, adjusted according to Law. The Board of Directors proposed at the General Meeting the payment of Dividends in the form of Interest on Equity (IOE), in the gross amount of R$242,183 (net of income tax: R$241,432, referring to the mandatory minimum dividends for the year), corresponding to 25.08% (net of 25%) on adjusted net income, base for calculation of dividends and interest on equity for the year. Total IOE for the year reduced tax expenses by R$107,529 (R$132,303 at 12.31.2019).

e) Statement of Calculation of Dividends/IOE:

01.01 to 01.01 to Specification 12.31.2020 12.31.2019 1. Net Income for Year 1,019 ,221 1,736 ,685 2. Legal Reserve Set U p (50 ,961) (86 ,834) 3. Debt Adjustments to Retained Earnings (Accumulated Losses) (2 ,809) (18 ,840) 4. Revaluation Reserves Transferred to Retained Earnings (Accumulated Losses) 55 (3 ,908) 5. Credit Adjustments to Retained Earnings (Accumulated Los ses) 218 48 ,778 6. Dividend/IOE Calculation Base 965 ,724 1,675 ,881 7. Gross Dividends and IOE proposed in the Year (at 12.31.2019: Dividends and IOE) 242 ,183 420 ,013 8. Net Dividends and IOE proposed in the Year (at 12.31.2019: Dividends and IOE) 241 ,432 418 ,970 9. Dividends in the form of IOE proposed in the Year: R$2.8039721498 per share (R$3.8877963266 per share at 12.31.2019) 242 ,183 335 ,795 10. Withholding Income Tax on IOE for the 1 st half of 2019 - (517) 11. Withholding Income Tax on IOE for t he 2 nd half of 2019 (751) (526) 12.Net IOE attributable to dividends for the year (item 9 - item 10 – item 11) R$2.7952709503 per share (IOE of R$3.8757284616 per share at 12.31.2019) 241 ,432 334 ,752 13. IOE prepaid and restated by SELIC - (169 ,780) 14. Net IOE for the Year: R$2.7952709503 per share (Net Compplementary IOE of R$1.9160183051 per share at 12.31.2019 (item 9 - item 11 – item 13) 241 ,432 165 ,489 15. Dividends Proposed in the Year (R$0 per share) (R$0.9750666936 per share at 12.31.2019) - 84,218 16. Dividends prepaid and restated by SELIC - (17 ,815) 17. Supplementary Dividends for the Year: R$0 per share (Compplementary Dividends of R$0.7688076346 per share at 12.31.2019 (item 15 - item 16) - 66 ,403 18. Dividends + IOE Net of Income Tax (attributed to Dividends) in relation to the Dividend/IOE Calculation Base (item 8/item 6) (R$2.7952709503 per share) (R$4.8507951551 per share at 12.31.2019) 25 .000% 25 .000% 19. Gross Dividends + IOE in relation to the Dividend/IOE Calculation Base (item 7/item 6) (R$2.8039721498 per share) (R$4.8628630201 per share at 12.31.2019) 25 .078% 25 .062%

e) Legal Reserve

The purpose of the Legal Reserve is to ensure the integrity of the Capital and it is set up based on 5% of the net income for the year ended, which represents R$50,961 (R$86,834 at 12.31.2019). f) Statutory reserves i) Operating Margin: with the purpose of ensuring resources compatible with the development of the Bank's operations. Amount set up in the year totaled R$542,656 (R$1,062.489 at 12.31.2019); and ii) Equalization for Compplementary Dividends: with the purpose of ensuring resources for payment of dividends compplementary to the mandatory minimum dividends. Amount set up in the year totaled R$180,885 (R$193,800 at 12.31.2019).

NOTE 20 - Other Operating Income/Expenses

01.01. to 01.01. to Specification 2nd half/2020 12.31.2020 12.31.2019 a) Service revenue 1,435 ,818 2,746 ,600 2,628 ,904 Investment fund management 31 ,634 64 ,319 56 ,589 Fund and program management 1,048 ,812 2,033 ,207 1,958 ,549 Serv ice Rendered 355 ,372 649 ,074 613 ,766 b) Income from bank fees 52 ,315 100 ,482 98 ,426 c) Personnel expenses (1 ,125 ,728) (2 ,175 ,475) (2 ,002 ,378) Salaries (617 ,223) (1 ,200 ,939) (1 ,161 ,699) Social charges (210 ,433) (420 ,412) (404 ,234) Voluntary Retir ement Program (PID) (Note 31) (30 ,312) (30 ,312) - Retirement and Pension Plan - DB and VC I Capef Plans (75 ,375) (143 ,089) (120 ,845) Health care plan - Camed Natural Plan (96 ,526) (193 ,057) (141 ,246) Life insurance - Post -employment benefit (13 ,744) (2 7,254) (12 ,201) Benefits, training sessions, fees and compensation of interns (82 ,115) (160 ,412) (162 ,153) d) Other administrative expenses (697 ,349) (1 ,357 ,234) (1 ,286 ,167) Data processing (126 ,031) (241 ,161) (237 ,610) Advertising and publicity (15 ,51 6) (28 ,379) (11 ,787) Third -party services (1) (340 ,561) (674 ,431) (610 ,494) Rentals, material and public utilities (38 ,015) (78 ,531) (80 ,217) Travel (3 ,487) (7 ,839) (15 ,873) Communications (9 ,823) (18 ,804) (24 ,098) Depreciation and amortization (6 ,54 7) (12 ,750) (11 ,608) Asset maintenance and upkeep (27 ,440) (51 ,658) (49 ,633) Surveillance, security and transportation (45 ,577) (89 ,723) (94 ,321) Promotions, public relations and publications (1 ,875) (5 ,709) (10 ,081) Financial system services (28 ,169) (48 ,457) (37 ,741) Specialized technical services (18 ,994) (36 ,107) (39 ,496) Insurance (2 ,086) (5 ,698) (4 ,229) Court, Not ary and attorney fees (12 ,843) (28 ,929) (31 ,359) Worker’ union dues and Associations (1 ,504) (3 ,249) (2 ,644) Condominium fees , cate ring, kitchen and meals (2 ,489) (5 ,347) (5 ,871) Fundeci (10 ,000) (10 ,000) (3 ,800) Other Amounts (6 ,392) (10 ,462) (15 ,305) e) Tax expenses (Note 21.e) (191 ,898) (354 ,017) (326 ,982) COFINS and PIS/PASEP (166 ,584) (306 ,975) (281 ,577) ISS an d IPTU /Improvement tax (23 ,628) (44 ,028) (42 ,314) Other Amounts (1 ,686) (3 ,014) (3 ,091) f) FNE Del Credere Commission 1,039 ,505 1,949 ,580 1,607 ,176 g) Other operating income 208 ,543 281 ,644 437 ,321 Del credere commission on fund management 4,036 8,214 8,604 Exchange Losses on Borrowings 96 ,557 96 ,596 109 ,661 Exchange losses on funding expenses - - 66 ,870 Exchange loss on reclassification of Development Financial Fund obligation expenses 3,121 3,121 3,882 Reversal of operatin g prov isions for risks on FNE loans 7,686 9,717 7,273 Recovery of charges and expenses 4,367 6,561 5,845 Reversal of operating provisions 37 ,689 42 ,183 18 ,431 Interest and commissions 1,318 3,861 12 ,287 Monetary restatement 1,609 2,857 1,898 Exchange Variat ion - 238 - FNE - Recovery of amounts settled by the Bank Other Amounts 39 ,801 83 ,155 178 ,325 Other Amounts 4,062 10 ,610 14 ,043 Del credere commission on fund management 8,297 14 ,531 10 ,202 h) Provision for Financial Guarantees Provided (361 ,193) (749 ,813) (361 ,609) i) Provision for Contingent Liabilities (68 ,738) (216 ,348) (216 ,258) j) Other operating expenses (392 ,690) (522 ,382) (645 ,787) Exchange losses on exchange area (69) (4 ,378) (2,984 ) Exchange loss on loans granted (280 ,902) (280 ,906) (109,350) Negative monetary restatement of loans (250) (261) (3 ,372 ) Discounts granted in renegotiations (3 ,712) (19 ,196) (69 ,846 ) Loan Charges (1 ,643) (6 ,307) (16 ,500 ) Debt Instruments Eligible to Principal Capital (IECP) (54 ,332) (82 ,56 8) (23 9,988 ) FNE Remuneration - Available Funds - article 9-A of Law No. 7827 (19 ,050) (48 ,210) (82,543) FNE Remuneration - Funds Applied - article 9-A, Law No. 7827 (28 ,455) (67 ,572) (93 ,211 ) Monetary restatement IECP - (3 ,251) (4 ,674 ) Other Amounts (4 ,277) (9 ,733) (23 ,319 ) Total (101 ,415) (296 ,963) (67 ,354 ) (1) These comprise expenses for 2020 amounting to R$570,394 (R$515,658 at 12.31.2019) on behalf of Instituto Nordeste Cidadania (INEC); this refers to a Civil Society Organization of Public Interest (“Oscip”) that provides services substantially to the Bank, through the Partnership Terms for the operation of the urban and rural production-oriented microloan programs, in accordance with the provisions of Law No. 9790 of 03.23.1999.

NOTE 21 - Taxes and contributions a) Income Tax and Social Contribution The Bank is subject to the taxable profit regime whereby taxes are computed based on the Bank’s accounting records, and income tax and social contribution are paid monthly on an estimated basis. Income tax and social contribution expenses are as follows:

a.1) Specification of the Provision for Income Tax and Income Tax Social Contribution 01.01 to 01.01 to 01.01 to 01.01 to Social Contribution Expense 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Income Before Income Taxes and Profit Sharing 1,583 ,717 2,434 ,833 1,583 ,717 2,434 ,833 Statutory profit sharing (62 ,317) (105 ,246) (62 ,317) (105 ,246) Income before taxes, less statutory profit sharing and 1,521,400 2,329,587 1,521,400 2,329,587 interest on equity Permanent additions/exclusions (305 ,229) (413 ,810) (307 ,250) (414 ,289) Temporary additions/exclusions 670 ,569 (563 ,650) 670 ,569 (563 ,650) Taxable income 1,886 ,740 1,352 ,127 1,884 ,719 1,351 ,648 Expenses with provision for IRPJ and CSLL - before tax (471,661) (338,008) (367,974) (202,747) incentives and revaluation reserve Deductions (tax incentives) 15 ,899 16 ,711 - - Provision for IRPJ/CSLL on revaluation reserve realized 25 25 19 15 Current IRPJ/CSLL expenses - after tax incentives, revaluation reserve and adjustments to Retained Earnings (Accumulated (455,737) (321,272) (367,955) (202,732) Losses ) (1) Provision for Deferred Taxes and Contributions - arising from (30,423) (35,172) (25,054) (51,573) tax Credits Recovered and Depreciation Provision for Income Tax and Social Contribution (486 ,160 ) (356 ,444) (393 ,009) (254 ,305) IRPJ/CSLL Tax Credits – Provisions 202 ,360 (102 ,341) 164 ,184 136 ,111 Total IRPJ/CSLL (283 ,799 ) (458 ,786) (228 ,825) (118 ,193) Effective Rate (%) 18 .65 19 .69 15 .04 5.07 a.2) Specification of the provision for IRPJ and CSLL 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Provision for Income Tax and Social Contribution 455 ,737 321 ,272 367 ,955 202 ,732 Provision for Taxes on Revaluation Reserve Realize d 25 24 19 15 Provision for Income Tax and Social Contribution (2) 455 ,762 321 ,296 367 ,974 202 ,747 Taxes and Contributions Recoverable on Prepayments, (258,113) (229,544) (155,019) (113,492) Including Withholding Taxes Taxes Payable (Recoverable) for the P eriod 197 ,649 91 ,752 212 ,955 89 ,255 (1) The balances of current IRPJ and CSLL expenses include: reduction of R$11,068 in accounting, carried out in 2020, referring to deduction of technological innovation incentive expenses for 2019; expenses of R$555 resulting from the 2019 tax incentive adjustment; and additional adjustments of R$67 arising from expenses with the Safra Plan in 2018, and expenses with Executive Board meals in 2016. (2) The balance of the provision for IRPJ and CSLL includes the reversal of Pasep/Cofins expenses and interest on the amount payable to the Brazilian IRS, recorded in 2019, of R$19,040, referring to 2014 through 2018, with a remaining balance, after initial payments in 2020, of R$7,988 at 12.31.2020. b) Reconciliation of IRPJ and CSLL Charges

Specification 12.31.2020 12.31.2019 I) Income before Taxes and Profit Sharing 1,583,717 2,434,833

II) Income and Social Contribution Taxes at statutory rates (45%) (712,673) (973,933)

III0 Adjustments to determine the effective rate: 200,050 396,954 - Profit Sharing/IOE 137,025 176,416 - Other Income / FNE/Del_Credere/Onlending Transactions – Article 9 A of Law No. 16,422 22,872 7827 - Temporary Differences – Other Nondeductible Provisions (89) 634 - Temporary Differences – Transactions with Refund – More than 10 Years 10,291 3,214 Rate Difference – CSLL (from 15% to 20%) 10,978 197,516 - Tax Incentives 31,048 16,582 - Permanent Additions, Net (5,625) (20,280) IV) Expense with Set-up of Provision for Income and Social Contribution Taxes (512,623) (576,979) V) Deferred Income and Social Contribution Taxes 366,546 33,770 VI) Current Income and Social Contribution Taxes (879,169) (610,749) VII) Tax Expenses (V + VI) (512,623) (576,979) VIII) Effective Rate Income tax and Social Contribution 32.4% 23.7% (1) In 2019 and until February 2020, for CSLL the rate of 15% was in force, increasing to 20% as from March/2020, according to Constitutional Amendment EC No. 105, of 11.13.2019.

c) Deferred Tax Assets and Liabilities

12.31.2020 12.31.2019 12.31.2020 12.31.2019 Specification IRPJ CSLL IRPJ CSLL Total Effect on P&L a) Allowances (ALL) Opening balance 576 ,129 459 ,764 711 ,030 426 ,632 1,035 ,893 1,137 ,66 2 Set up 430 ,619 334 ,245 261 ,288 270 ,845 764 ,864 532 ,133 Realization/Reversal (296 ,185) (225 ,538) (396 ,189) (237 ,713) (521 ,723) (633 ,902) Closing Balance 710 ,563 568 ,471 576 ,129 459 ,764 1,279 ,034 1,035 ,893 b) Unearned Income - Operations not

Related to Legal Proceedings Opening balance 2,115 1,661 2,101 1,261 3,776 3,362 Set up 729 614 1,059 1,027 1,343 2,086 Realization/Reversal (1 ,459) (1 ,167) (1 ,045) (627) (2 ,626) (1 ,672) Clo sing Balance 1,385 1,108 2,115 1,661 2,493 3,776 c) Provisions - Extended Transactions Opening balance 1,004 798 - - 1,802 - Set up 21 18 1,004 798 39 1,802 Realization/Reversal (192) (151) - - (343) - Closin g Balance 833 665 1,004 798 1,498 1,802 d) Actuarial provisions Opening balance 280 ,414 223 ,378 269 ,396 161 ,638 503 ,792 431 ,034 Set up 72 ,727 57 ,854 51 ,657 86 ,124 130 ,581 137 ,781 Realization/Reversal (37 ,859 ) (29 ,005 ) (40 ,639) (24 ,384) (66 ,864) (65 ,023) Closing Balance 315 ,282 252 ,227 280 ,414 223 ,378 567 ,509 503 ,792 e) Provision for the Voluntary Retirement

Program (“PID”) Opening balance - - 14 ,667 8,800 - 23 ,467 Set up 13 ,25 1 10 ,601 99 60 23 ,852 159 Realization/Reversal (12 ,580) (10 ,064) (14 ,766) (8 ,860) (22 ,644) (23 ,626) Closing Balance 671 537 - - 1,208 - f) Provision for contingencies Opening balance 139 ,368 111 ,349 98 ,781 59 ,268 250 ,717 158 ,049 Set up 69 ,928 55 ,480 76 ,646 73 ,716 125 ,408 150 ,362 Realization/Reversal (36 ,724) (28 ,771) (36 ,059) (21 ,635) (65 ,495) (57 ,694) Closing Balance 172 ,572 138 ,058 139 ,368 111 ,349 310 ,630 250 ,717 g) Derivative financial instr uments Opening balance - - 5,398 3,239 - 8,637 Set up 277 221 308 185 498 493 Realization/Reversal (191) (153) (5 ,706) (3 ,424) (344) (9 ,130) Closing Balance 86 68 - - 154 - h) Hedged Item Openin g balance ------Set up - - 876 526 - 1,402 Realization/Reversal - - (876) (526) - (1 ,402) Closing Balance ------Effect on Equity i) Securities Opening balance 130 ,285 101 ,144 173 ,455 106 ,00 9 231 ,429 279 ,464 Set up 311 ,173 253 ,869 204 ,978 129 ,706 565 ,042 334 ,684 Realization/Reversal (362 ,550) (291 ,886) (248 ,148) (134 ,571) (654 ,436) (382 ,719) Closing Balance (Note 7.a.2) 78 ,908 63 ,127 130 ,285 101 ,144 142 ,035 231 ,429 j) Actuarial valuation adjustments Opening balance 577 ,129 461 ,703 287 ,504 172 ,502 1,038 ,832 460 ,006 Set up 43 ,247 34 ,598 289 ,625 289 ,201 77 ,845 578 ,826 Realization/Reversal (21 ,814) (17 ,451) - - (39 ,265) - Cl osing Balance 598 ,562 478 ,850 577 ,129 461 ,703 1,077 ,412 1,038 ,832

Income tax and social contribution credits recognized and not recognized in assets are broken down as follows:

Income Tax Social Contribution Tax Specification 12.31.2020 12.31. 2019 12.31.2020 12.31.2019 1. Total Temporary Differences 7,666,810 6,991,153 7,666,810 6,991,153 2. Tax Credits on Temporary Differences 1,916,703 1,747,788 1,533,362 1,392,996 3. Tax Credits Recognized in Assets on Provisions 1,799 ,869 1,576 ,160 1,43 9,915 1,258 ,652 4. Tax Credits Recognized in Assets due to Mark-to-Market of 78,994 130,285 63,195 101,144 Securities 5. Total Tax Credits Recognized in Assets (item 3 + item 4) (1) 1,878,863 1,706,445 1,503,110 1,359,796 6. Tax credits not Recognized in Assets (item 2 - item 5) (2) 37,840 41,343 30,252 33,200 (1) Tax Credits are Recognized in Assets under “Other Credits - Sundry”. (2) Not recognized in assets as they do not meet the realization requirements provided for in CMN Resolution No. 3355 of 03.31.2006, and considering a technical study on recognition of deferred tax assets and liabilities prepared on every six months.

The expected realization values of Deferred Tax Assets as of 12.31.2020 are shown below:

IRPJ CSLL Total Period Present Present Present Book value Book value Book value value (1) value (1) value (1) 2021 278,723 272,097 222,978 217,678 501,701 489,775 2022 161,729 155,493 129,383 124,395 291,112 279,888 2023 111,853 104,530 89,482 83,624 201,335 188,154 2024 180,881 160,509 144,705 128,408 325,586 288,917 2025 171,249 150,432 137,000 120,346 308,249 270,778 2026 74,700 65,370 59,760 52,296 134,460 117,666 2027 73,597 63,799 58,878 51,039 132,475 114,838 2028 66,115 56,421 52,893 45,137 119,008 101,558 2029 56,280 46,784 45,025 37,425 101,305 84,209 2030 52,596 43,109 42,096 34,498 94,692 77,607 2030 onwards 651,139 651,139 520,911 520,911 1,172,050 1,172,050 Total 1,878,862 1,769,683 1,503,111 1,415,757 3,381,973 3,185,440 (1) For present value calculation purposes, the goal for average over - Selic rates was considered, projected by BACEN at 12.31.2020. d) Provision for Deferred Taxes and Contributions 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Specification IRPJ CSLL IRPJ CSLL Total Effect on P&L a) Derivative Financial Instruments Opening balance ------Set up 7 5 876 526 12 1,402 Realization/Reversal (7) (5) (876) (526) (12) (1 ,402) Closing Balance (Notes 7.c) ------b) From Recovered Credit s(1) Opening balance 139 ,742 111 ,099 103 ,935 62 ,359 250 ,841 166 ,294 Set up 28 ,057 23 ,140 35 ,930 48 ,813 51 ,197 84 ,743 Realization/Reversal (1 ,661) (1 ,329) (123) (73) (2 ,990) (196) Closi ng Balance 166 ,138 132 ,910 139 ,742 111 ,099 299 ,048 250 ,841 c) Hedged Item Opening balance - - 5,615 3,369 - 8,984 Set up - - 308 185 - 493 Realization/Reversal - - (5 ,92 3) (3 ,554) - (9 ,477) Closing Balance ------d) Deferred Depreciation Opening balance 16 ,179 12 ,923 11 ,200 6,720 29 ,102 17 ,920 Set up 4,679 3,764 5,301 6,395 8,443 11 ,696 Rea lization/Reversal (652) (522) (322) (192) (1 ,174) (514) Closing Balance 20 ,206 16 ,165 16 ,179 12 ,923 36 ,371 29 ,102 Effect on Equity e) Revaluation Reserve Opening balance 971 774 994 597 1,745 1,591 Set up - - - 193 - 193 Realization/Reversal (26) (18) (24) (15) (44) (39) Closing Balance 945 756 970 775 1,701 1,745 f) Securities Opening balance 230 ,471 182 ,852 64 ,156 39 ,065 413 ,323 103 ,221 Set up 820 ,467 65 6,828 888 ,277 578 ,499 1,477 ,295 1,466 ,776 Realization/Reversal (864 ,668) (690 ,665) (721 ,962) (434 ,712) (1 ,555 ,333) (1 ,156 ,674) Closing Balance (Notes 7.a.2) 186 ,270 149 ,015 230 ,471 182 ,852 335 ,285 413 ,323 (1) Pursuant to article 12 of Law No. 9430 of 12.27.1996.

The total Deferred Tax Obligations expected to be written off as of 12.31.2020 are shown below:

Realization of IRPJ credit Realization of CSLL credit Total Period Present Book Present Book value Book value value (1) value value (1) 2021 33,950 33,117 27,160 26,493 61,110 59,610 2022 28,487 26,357 22,790 21,086 51,277 47,443 2023 31,423 27,534 25,138 22,027 56,561 49,561 2024 27,243 22,548 21,795 18,039 49,038 40,587 2025 20,832 16,289 16,666 13,031 37,498 29,320 2026 14,753 10,898 11,802 8,718 26,555 19,616 2027 13,052 9,109 10,442 7,287 23,494 16,396 2028 6,558 4,323 5,246 3,459 11,804 7,782 2029 3,781 2,355 3,025 1,884 6,806 4,239 2030 2,939 1,729 2,351 1,383 5,290 3,112 2030 onwards 190,541 185,430 152,431 148,344 342,972 333,774 Total 373,559 339,689 298,846 271,751 672,405 611,440 (1) For present value calculation purposes, the goal for average over - Selic rates was considered, projected by BACEN at 12.31.2020.

e) Tax Expenses 01.01 to 01.01 to Specification 2nd half/2020 12. 31.202 0 12.31.2019 Cofins and Pis/Pasep (166 ,584) (306 ,975) (281 ,577) ISS and IPTU/Improvement tax (23 ,628) (44 ,028) (42 ,314) Other Amounts (1 ,686) (3 ,014) (3 ,091) Total (Note 20.e) (191 ,898) (354 ,017) (326 ,982)

NOTE 22 - Provisions, Contingent Assets, Contingent Liabilities and Legal Obligations - Tax and Social Security a) Contingent Assets are not accounted for, however, there is a proceeding in progress, in the amount of R$29,319 for which the likelihood of win is assessed as probable, concerning lawsuit for collection of insurance indemnities. b) The Bank is a party to various ongoing administrative and legal proceedings involving civil, tax, labor and other matters. Bank management understands that the provisions set up are sufficient to cover the likelihood of losses arising from the respective legal and administrative proceedings, as follows:

12.31.2020 12.31.2019 Specification Base Provision Base value Provision value b) Provision for Contingencies b.1) Tax Proceedings (Note 22 g.i) 3,483 ,643 20 ,830 3,762 ,943 17 ,815 i) Legal Obligation 11 ,481 11 ,481 11 ,062 11 ,062 ii) Other Obligations - Sundry 3,472 ,162 9,349 3,751 ,881 6,753 Probable 9,349 9,349 6,753 6,753 Possible 3,420 ,182 - 3,577 ,567 - Remote (1) 42 ,631 - 167 ,561 - b.2) Labor Claims 636 ,395 359 ,264 602 ,533 334 ,025 Probable (Note 22 g.ii) 359 ,264 359 ,264 334 ,025 334 ,025 Possible 124 ,141 - 123 ,996 - Remote 152 ,990 - 144 ,512 - b.3) Civil Proceedings 9,047 ,362 223 ,388 7,716 ,331 176 ,738 Probable (Note 22 g.iii) 223 ,388 223 ,388 176 ,738 176 ,738 Possible 2,157 ,136 - 1,865 ,136 - Remote (2) 6,666 ,838 - 5,674 ,457 - b.4) Other Contingencies (Note 22 g.iv) 1,046 ,873 90 ,134 1,088 ,651 33 ,860 i) Securitized Transactions 3,330 3,330 4,015 4,015 ii) Other Proceedings 1,043 ,543 86 ,804 1,084 ,636 29 ,845 Probable 86 ,804 86 ,804 29 ,845 29 ,845 Possible 904 ,386 - 2,537 - Remote 52 ,353 - 1,052 ,254 - (1) The contingent liability relating to tax proceedings assessed as remote loss refers to one (1) proceeding, with balance of R$130,762 at 12.31.2019 whose contingency was fully reversed at 03.31.2020. (2) Contingent liabilities relating to civil proceedings assessed as remote loss are concentrated in four (4) proceedings, with balance of R$3,840,558 at 31.12.2020 (R$3,241,508 at 12.31.2019). These proceedings refer to the following matters: i) extraordinary contribution of post- employment benefit and payment of attorney fees - R$2,770,666 at 12.31.2020 (R$2,338,498 at 12.31.2019); ii) loss of profit and payment of administrative fee - R$474,289 at 12.31.2020 (R$400,309 at 12.31.2019); iii) reassessment (solutio indebiti), pain and suffering and loss of profits - R$327,613 at 12.31.2020 (R$276,512 at 12.31.2019); iv) compensation for property damage, pain and suffering, and loss of profits - R$267,990 at 12.31.2020 (R$226,189 at 12.31.2019). c) The Bank is involved in lawsuits handled by outside attorneys, most of which relate to loan collection actions, whose assessment of the provision for contingent liabilities is performed by its Legal Department.

d) Tax proceedings classified as Legal Obligation pursuant to the terms of Bacen Circular Letter No. 3429 of 02.11.2010, whose amounts were presented in the table above, challenge federal and municipal taxes. e) Below is a brief description of proceedings to which the Bank is party, involving significant contingent liabilities assessed as possible risk of loss:

Tax

Five tax proceedings challenging the tax deficiency notice. At 12.31.2020, estimated losses amount to R$ 3,029,944 (R$ 3,266,787 at 12.31.2019).

Other Proceedings

The amount of contingent liabilities related to other proceedings is concentrated in 01 (one) proceeding involving accountability and return of amounts unduly paid, totaling R$985,000 as of 12.31.2020, of which R$900,614 is classified as possible loss and R$84,385 as probable loss (R$1,033,432 at 12.31.2019, of which R$1,005,615 is classified as remote loss and R$27,817 as probable loss).

Civil

Civil proceeding claiming compensation for pain and suffering. At 12.31.2020, estimated losses amount to R$ 598,584, of which R$ 598,405 are assessed as possible risk of loss and R$ 178 are assessed as probable risk of loss (R$ 505,217, of which R$ 505,067 are assessed as remote risk of loss and R$ 150 are assessed as probable risk of loss, at 12.31.2019).

Civil proceeding challenging compensation for pain and suffering and payment of fees. At 12.31.2020, estimated loss amounts to R$ 195,995 (R$ 165,424 at 12.31.2019).

Civil proceeding claiming payment of fine and compensation for pain and suffering. At 12.31.2020, estimated loss amounts to R$ 115,744 (R$ 97,960 at 12.31.2019).

Civil proceeding claiming compensation for pain and suffering and consequential damages. At 12.31.2020, estimated loss amounts to R$ 94,512 (R$ 79,770 at 12.31.2019).

Civil proceeding challenging payment of attorney’s fees. At 12.31.2020, estimated loss amounts to R$ 93,514 (R$ 78,928 at 12.31.2019).

Civil proceeding challenging reassessment (solutio indebiti), payment of fine, funds pending drawdown and attorney fees. The estimated loss at 12.31.2020 amounts to R$ 65,396, of which R$ 63,201 are assessed as possible risk of loss and R$ 2,195 is assessed as remote risk of loss (R$ 55,195 at 12.31.2019, of which R$ 53,343 are assessed as possible risk of loss and R$1,852 is assessed as remote risk of loss).

Civil proceeding filed in 2014 related to post-employment benefits. At 12.31.2020, estimated loss amounts to R$ 56,908 (R$ 55,238 at 12.31.2019). f) Legal and appeal deposits made to guarantee legal and administrative proceedings are as follows:

Specification 12.31.2020 12.31.2019 Labor Claims 189 ,405 205 ,621 Tax Proceedings 48 ,020 145 ,530 Civil Proceedings 282 ,371 127 ,544 Other cla ims 47 46 Counter -guarantees - IDB Onlending 39 ,053 34 ,854 Total 558 ,896 513 ,595

g) Changes in provisions g.1) Tax, Labor, Civil and Other

12.31.2020 12.31.2019 Specification Opening Recogniti Closing Opening Recogniti Closing Reversal Payment Reversal Payment balance on Balance balance on Balance i) Tax Proceedings (Note 22.b.1) 17 ,815 4,292 (1,275 ) (2) 20 ,830 15 ,769 2,763 (655) (62) 17 ,815 ii) Labor Claims (Note 22.b.2) 334 ,025 106 ,83 6 (22 ,773 ) (58 ,824 ) 359 ,264 206 ,531 172 ,883 (20 ,160) (25 ,229) 334 ,025 iii) Civil Proceedings (Note 22.b.3) 176 ,738 104 ,80 4 (33 ,575 ) (24 ,579 ) 223 ,388 146 ,964 92 ,294 (34 ,395) (28 ,125) 176 ,738 iv) Other Proceedings (Note 22.b.4) 33 ,860 59 ,414 (3,129 ) (11) 90 ,134 32 ,466 44 ,557 (43 ,163) - 33 ,860 Total 562 ,438 275 ,346 (60 ,752 ) (83 ,416 ) 693 ,616 401 ,730 312 ,497 (98 ,373) (53 ,416) 562 ,438

NOTE 23 - Employee and Officer Compensation (in Brazilian reais) a) Monthly Employee Compensation

Gross Compensation (1) 12.31.2020 12.31.2019 Maximum 44 ,501 ,01 44 ,349,57 Minimum 1,925 ,25 1,864,51 Average 12 ,056 ,04 11 ,690,10 (1) Includes overtime (including night shift premium), when actually incurred. b) Compensation paid to the Executive Board, Board of Directors and Supervisory Board for the period

01.01 to 01.01 to 01.01 to 01.01 to 01.01 to 01.01 to Specification 12 .31.2020 12.31.2019 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Gross Compensation (1) Executive Board Board of Directors Supervisory Board Highest individual 758,347,23 1,107,062,84 70,835,04 70,835,04 66,492,72 66,492,72 compensation (2) Lowest individual compensation (3) 758 ,347,23 734 ,481,75 54 ,279,84 54 ,279,84 54 ,279,84 54 ,279,84 Average individual compensation 944,990,57 927,343,84 67,321,06 60,346,98 59,164,99 57,219,53 (4) Number of members (5) 7.50 6.25 5.17 5.33 5.00 5.17 (1) Amounts approved at the General Meeting. (2) Amount computed without any exclusion, considering all compensation amounts recognized for the period. (3) Amount reached after excluding all those who have not served in their position over the entire period. (4) This corresponds to the total compensation for the period paid by each board divided by the number of members. (5) The number of members corresponds to the annual average number of members of each board calculated on a monthly basis. .

At 12.31.2020, the Bank had 6,684 employees (6,802 at 12.31.2019), a headcount decrease of 1.73%.

NOTE 24 - Post-Employment Benefits

Pursuant to CMN Resolution No. 4424, which approved Accounting Pronouncement CPC 33 (R1) - Employee Benefits, the accounting practices and procedures adopted by the Bank regarding post-employment benefit are presented below. a) Description of the Plan Benefits a.1) Private Pension Plans The Bank sponsors two complementary pension plans, a Defined Benefit (DB) plan and a Variable Contribution (DB + VC) plan both managed by Caixa de Previdência dos Funcionários do Banco do Nordeste do Brasil (Capef), a closed-ended private pension plan entity that provides complementary retirement benefits. a.1.1) Defined Benefit Plan The DB plan, which is closed to new participants since 11.26.1999, offers to its participants supplementary retirement benefits based on the contribution period, age and disability, as well as supplementary pension and savings plans to their dependents. In general terms, to the current participants, the DB plan benefits are calculated based on the difference between the employees’ contribution salary and the INSS retirement benefit, weighted by the number of contributions paid to the plan, limited to 360, including any working hours extension, weighted by the number of contributions paid thereon, all effective since July 1997 and projected in accordance with the plan regulation up to the date of the participant’s retirement.

a.1.2) Variable Contribution I Plan The VC I plan, classified as a variable contribution, combines the characteristics of the Defined Contribution (DC) plan and of the Defined Benefit (DB) plan. This plan offers to its participants supplementary retirement benefits based on the contribution period, age and disability, as well as supplementary pension and savings plans to their dependents. The scheduled retirement benefits of the VC I plan are calculated based on the balance of the individual account for each participant on the date of retirement and are paid in two phases, as follows: the first phase as annuity within the deadline established under the Defined Contribution (DC) plan and the second phase as life annuity under the Defined Benefit (DB) plan. The VC I Plan may only present actuarial deficit or surplus after the beginning of the concession of unplanned benefits, disability and death, or planned benefits in the life annuity phase. The VC I plan is supported by the Actuarial Solvency Fund that will be used to cover any future actuarial insufficiency of mutual pension plan portfolios, as well as supported by the Mutual Fund for Risk Benefits, in order to supply the payment of complementary capital in case of disability or death of the participant, referring to the insurance coverage of the benefits resulting from these events.

a.2) Health Care Plan The Bank is the sponsor of a health care plan managed by Caixa de Assistência dos Funcionários do Banco do Nordeste do Brasil (Camed), whose primary purpose is to provide health care to its associate participants and their dependents, through granting of subsidies to cover or reimburse expenses incurred in connection with health promotion, protection and recovery. The Natural Plan is funded primarily by contributions made by the associate participants, contributions related to the enrollment of natural dependents, financial protection and emergency service fees, financial co- payment made by each associate participant for services utilized and matched contributions from the Bank.

a.3) Group Life Insurance The Bank’s benefits policy to its employees comprises collective policy agreement of group life insurance intended for its employees and retired former employees. Such policy provides basic coverage for death by natural and accidental causes and additional coverage for disability caused by accident and disease. Insurance premiums are determined by applying rates defined in contract. The employees contribute with 50% of this premium amount and the Bank with the remaining 50%. Retirees are responsible for full payment of the premium. Every three-month period, the Bank actuarially assesses the benefit that consists of indirect subsidy to current retirees.

a.4) Governance The following statutory boards are responsible for the management and oversight of Capef:Decision-Making Board, Executive Board and Supervisory Board. The Decision-Making Board is a board for top-tier decision and guidance and shall primarily define the Capef’s management policy and benefit plans. The Executive Board is the Capef’s management board responsible for the execution, by itself or other, of the general guidelines and standards set by the Decision-Making Board and other provisions contained in the relevant legislation, in Capef’s charter, benefit plan regulations, covenants and adhesion terms. The Supervisory Board is the internal control board and shall mainly monitor and oversee CAPEF activities. Camed statutory boards are: Social Board, Decision-Making Board, Executive Board and Supervisory Board. The Social Board composed of associate participants is the supreme decision-making board empowered to resolve all matters and business related to the full operation and development of Camed. The Camed’s Decision-Making Board is a board for monitoring and top-tier administrative decision. The Executive Board is responsible for the execution, by itself or other, of the general guidelines and standards set by the Decision- Making Board and other provisions contained in the relevant legislation, in Camed’s charter and internal regulations. The Supervisory Board is the supervisory board of Camed’s management acts and shall essentially monitor and direct the company’s activities. The members of the statutory boards of the two Entities are chosen in order to confer representativeness to the Participants, Vested Beneficiaries and to the Sponsors, based on the criteria established in their Charters. a.5) Strategies for Crosschecking Assets and Liabilities Capef counts on specific areas for investment management in addition to management advisory services that strengthens the monitoring of investment risks. Investments are monitored in order to check issues focused on classification, returns on assets and follow-up of the evolution of the plan’s actuarial goal. Studies are conducted aiming to assist the plan’s administrators in choosing the most suitable portfolio to their goals, taking into consideration the characteristics and peculiarities of the assets and the plan’s financial position, allowing long term investments, without compromising the obligations or the achievement of the actuarial goal.

Camed has financial instruments to fund its activities or invest its funds available. The risks associated with these instruments are managed through conservative strategies, intended to ensure liquidity, profitability and safety. Risk management monitors the changes in exposure scenarios to which CAMED is subject. b) Past due Obligations and Contributions Due At 12.31.2020, the Bank has no past due obligations or contributions due referring to the pension plans, BD and VCI, health care plan, Natural plan, and the group life insurance, neither informal practices that originate constructive obligations that may give rise to constructive obligations to be included in the measurement of the defined benefit obligation. c) Contribution Ratio (Participants/Sponsor) At 12.31.2020, the ratio of participants’ contributions to Bank contributions meets the parity set by Resolution No. 9 of 10.08.1996 of the Department for Coordination and Control of State-Owned Entities (CCE), with a contribution ratio of 1:1 (1:1 at 12.31.2019). d) Risk exposure The Bank’s Actuarial Liability, which records the obligations on Defined Benefit, Variable Contribution I, Natural and Group Life Insurance plans is mainly exposed to the following risks:

Plan Type of Risk Risk Description

This is the risk of the final cost of the benefits acquired to be greater DB/VC than the expected benefits. The Bank has no alternative but to I/Natural/Group Life Actuarial Risk increase its contributions or persuade participants to accept a Insurance reduction in benefits.

This is related to changes in interest rates and asset prices that impact the economic and financial performance of the benefit plan. If DB/ VC I/ Natural Investment risk the plans’ actual investment earnings are lower than the expected return, this may lead to an increase in the actuarial liability.

DB/VC This is related to the adoption of actuarial assumptions inappropriate I/Natural/Group Life Actuarial assumptions risks to the plans, upon calculating the present value of the defined benefit Insurance obligation, resulting in a material impact on the actuarial liability.

The actuarial liability is calculated by adopting a discount rate DB/VC defined based on government securities earnings (NTN-B), I/Natural/Group Life Discount rate according to item 83 of CVM Rule No. 695. Decrease in these Insurance securities earnings results in an increase in the actuarial liability.

Post-employment benefit plans offer life annuity benefits, therefore, DB/VC an increase in life expectancy results in an increase in actuarial I/Natural/Group Life Life expectation risks liabilities for the DB, VC I and Natural plans, and a decrease in Insurance actuarial liabilities for the Group Life Insurance. e) Number of Participants of the Post-Employment Benefit Plan

Specification DB VC I CAMED INSURANCE Participants 1,237 5,430 6,250 4,807 Vested participants (retirees and pensioners) 5,050 323 5,116 3,576 TOTAL 6,287 5,753 11,366 8,383 f) Assumptions used f.1) Demographic Assumptions Demographic assumptions used in the calculation of plan obligation are based on those adopted in actuarial valuations in the scope of Capef, based on statistical studies and adequacy of hypotheses, prepared by specialized advisory firms engaged by that entity. For the Natural plan, the demographic assumptions of the DB plan are used, while for the Group Life Insurance the demographic assumptions used are those of the VC I plan, considering the population characteristics.

DB (Capef) and Natural (Camed) Plans Specification 12.31.2020 12.31.2019 Mortality tables RP2000 M&F Proj 2020 - smoothed by 20%, RP2000 M&F Proj 2018 - smoothed by 10%, Active/Retirees segregated by gender segregated by gender

Disabled people IAPC Weak RP2000 Disable F Disability table Hunters (smoothed by 85%) Álvaro Vindas

DB (Capef) and Natural (Camed) Plans Specification 12.31.2020 Mortality tables RP 2000 Proj. 2020, segregated by gender RP 2000 Proj. 2018, segregated by gender Active/Retirees (smoothed by 10%) (smoothed by 20%) Disabled people IAPC Weak IAPC experience (smoothed by 50%) Disability table Muller (smoothed by 85%) Muller (smoothed by 85%)

f.2) Financial Assumptions

Capef (% p.a.) Specification DB Plan DB Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Nominal discount rate for the actuarial obligation 7.03 6.60 7.65 7.22 Effective discount rate for the actuarial obligation 3.30 2.87 3.90 3.46 Average annual inflation rate 3.61 3.63 3.61 3.63 Nominal rate of salary increase (1) (2) 4.65 4.67 - - Nominal rate of benefit increases 3.61 3.63 3.61 3.63 (1) DB Plan: the actual rate of salary increase of 1% is applied until the participant reaches the expected date for retirement (360 contributions). (2) VC I Plan: the actual salary increase projection of each participant follows the rules of the Bank's positions and salary plan and in case of an increase in the additional amount due to position in a commission (AFC).

Camed (% p.a.) Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Nominal discount rate for the actuarial obligation 7.65 7.22 7.65 7.22 Effective discount rate for the actuarial obligation 3.89 3.46 3.90 3.46 Average annual inflation rate 3.61 3.63 3.61 3.63 Nominal rate of salary increase (1) 4.65 4.67 4.65 3.63 Nominal rate of benefit average increase (1) (2) 1.84 (2) 2.45 (2) 4.65 3.63 Rate of increase in health care costs due to aging (aging 3.84 3.47 Not applicable Not applicable fa ctor) (1) For the case of life insurance, this refers to a projection of increase in insured capital. (2) For the Natural Plan, this refers to projection of increase in medical costs (HCCTR). At 12.31.2020, a health care inflation rate was calculated for the Natural plan, considering the plan experience in the last ten (10) years. The rate identified was of 1.84% (2.45% at 12.31.2019), above the aging factor and the general price inflation, and decreases on a straight-line basis in 3 (three) years, remaining at 1% p.a. from the 4 th (fourth) year. f.3) The future inflation rate is used in the Present Value Calculation of the Actuarial Obligation, intended for measurement of the inflation floating arising from the freeze, in annual cycles, of future contributions and benefits. This calculation allows the occurrence of inflation process of equal charge for all salary, union, social security and economic variables of the plan. f.4) The Projected Unit Credit Method is used as the actuarial valuation method in order to determine the obligation present value, the current service cost and, when necessary, the past service cost. f.5) The discount rate is equivalent to the expected return of the National Treasury Notes (NTN-B), for the duration of the plans, in accordance with the methodology provided in item 83 of Accounting Pronouncement CPC 33 (R1), approved by CMN Resolution No. 4424. At 12.31.2020, the following durations were calculated: for Capef DB plans: 10.08 years (6.73 years at 12.31.2019); for Capef VC I plan: 18.05 years (25.64 years at 12.31.2019); for the Natural plan: 17.69 years (21.26 years at 12.31.2019); and for Life Insurance: 16.83 years (19.58 years at 12.31.2019). g) Liabilities Recognized in the Balance Sheet g.1) Private Pension Plans

Capef - Private pension plans Specification DB Plan DB Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present value of actuarial liabilities (1) (5,603,746) (5,647,446) (37,751) (32,359) 1.1. Obligation relating to vested participants (4,697,743) (4,807,909) (33,281) (30,177) 1.2. Obligation relating to active participants (906,003) (839,537) (4,470) (2,182) 2. Fair Value of Plan Assets 4,510,677 4,715,575 91,375 88,627

3. Asset Ceiling Effect - - (53,624) (56,268) 4. Liabilities Recognized in the Balance Sheet (1,093,069) (931,871) - - (1) For the VC I plan, the amounts refer to unplanned benefits (DB Portion), which have characteristics of a defined benefit plan.

g.2) Health care plan and group life insurance

Camed Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present Value of Actuarial Obligation (2,359,572) (2,293,236) (368,074) (363,829) 1.1. Obligation relating to vested participants (1,641,370) (1,517,652) (272,096) (277,826) 1.2. Obligation relating to active participants (718,202) (775,584) (98,665) (100,999) 1.3. Cross-subsidy - - 2,687 14,996 2. Fair Value of Plan Assets 165,335 158,763 - - 3. Liabilities Recognized in the Balance Sheet (2,194,237) (2,134,473) (368,074) (363,829)

h) Reconciliation of Opening and Closing Balances of the Present Value of Obligation

Capef Specification DB Plan VC I Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present value of actuarial obligation at beginning of year (5,647,446) (4,545,981) (32,359) (14,538) 2. Interest Cost (354,042) (392,997) (2,326) (1,311) 3. Current service cost (11,990) (2,989) (132) (119) 4. Benefits paid by the plan 462,791 448,414 842 610 5. Vested participant contributions (retirees and pensioners) (79,670) (78,919) - - 6. Reversal of the contribution balance from DC portion to DB - - (42,558) (7,345) portion of the plan 7. Remeasurements of actuarial gains (losses) 26,611 (1,074,974) 38,782 (9,656) 7.1. From experience adjustments (35,487) 174,051 34,096 426 7.2. From changes in financial assumptions 248,977 (965,365) 1,251 (10,082) 7.3. From changes in biometric assumptions - tables (184,204) - 3,390 - 7.4. From the Voluntary Retirement Program (PID) (2,675) - 14 - 7.5. From changes in the costing plan - (106,590) - - 7.6. From application of the benefit readjustments - (177,070) - - 7.7. From changes in other assumptions – Family structure - - 31 - 8. Present value of actuarial obligation at end of year (5,603,746) (5,647,446) (37,751) (32,359)

Camed Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present value of actuarial obligation at beginning of year (2 ,293 ,236) (1 ,621 ,151) (363 ,829) (147 ,161) 2. Interest Cost (162,490) (145,446) (26,086) (13,158) 3. Current service cost (42,489) (9,626) (3,804) (1,976) 4. Benefits paid by the plan(1) 73,711 101,120 10,077 10,197 5. Vested participant contributions (retirees and pensioners) (27,244) (26,484) (3,262) (3,167) 6. Administrative expenses paid by the plan 11,363 12,351 - - 7. Remeasurements of actuarial gains (losses) 80,813 (604,000) 18,830 (208,564) 7.1. Experience adjustments 101,921 (28,351) 5,971 43,187 7.2. Changes in financial assumptions 177,297 (484,613) 27,495 (85,548) 7.3. Changes resulting from the increase in health care costs, net of the gain arising from the readjustment to the dependent’s - (196,814) - - contribution table 7.4. Changes resulting from the reduction of the administrative - 60,846 - - expense rate 7.5. Changes resulting from change in the health care inflation (33,590) 44,932 - - rate (HCCTR) and average medical costs 7.6. Changes in biometric assumptions - tables (164,430) - (14,615) - 7.7. From the Voluntary Retirement Program (PID) (385) - (21) - 7.8. From changes in the Contract - - - (166,203) 8. Present value of actuarial obligation at end of year (2,359,572) (2,293,236) (368,074) (363,829)

(1) Camed: Natural Plan - net of co-payments made by associate participants. i) Reconciliation between opening and closing balances of the fair value of plan assets Capef Specification DB Plan DB Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Fair value of plan assets at the beginning of the period 4,715,575 3,939,911 88,627 54,740 2. Interest income 295,431 342,700 6,489 5,128 3. Employer contributions (1) 79,700 79,129 1,306 1,520 4. Active participants’ contributions 66 178 1,312 1,531 5. Vested participants’ contributions 79,670 78,919 - - 6. Reversal of the contribution balance from DC portion to DB - - 42,558 7,345 portion of the plan 7. Benefits paid by the plan (462,791) (448,414) (842) (610) 8. Gains/(losses) on assets (2) (196,974) 723,152 (48,075) 18,973 9. Fair value of plan assets at the end of the period 4,510,677 4,715,575 91,375 88,627 (1) Capef - DB Plan: contributions related to active and vested participants; (2) Return on plan assets, less amounts included in net interest on the net amount of liabilities (assets) of the defined benefit.

Camed Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Fair value of plan assets at the beginning of the period 158,763 146,781 - - 2. Interest income 11,100 13,412 - - 3. Employer contributions (1) 84,973 81,979 4,185 4,103 4. Return of Sponsor’s contributions (40,792) (5,587) - - 5. Active participants’ contributions 762 345 2,630 2,927 6. Vested participants’ contributions 27,244 26,484 3,262 3,167 7. Administrative expenses paid by the plan (11,363) (12,351) - - 8. Benefits paid by the plan (2) (73,711) (101,120) (10,077) (10,197) 9. Gains/(losses) on assets (3) 8,359 8,820 - - 10. Fair value of plan assets at the end of the period 165,335 158,763 - - (1) Camed - Natural Plan: contributions related to associate participants and retirees/pensioners; (2) Camed - Natural Plan: net of co-participations paid by associate participants; and (3) Return on plan assets, less amounts included in net interest on the net amount of liabilities (assets) of the defined benefit.

j) Reconciliation Between Opening and Closing Balances of the Asset Ceiling Effect

Capef Specification VC I Plan 12.31.2020 12.31.2019 1. Asset ceiling effect at the beginning of the (56,268) (40,202) period 2. Interest on asset ceiling effect (4,163) (3,817) 3. Remeasurement of asset ceiling effect 6,807 (12,249) 4. Asset ceiling effect at the end of the period (53,624) (56,268)

k) Reconciliation of the Present Value of Obligation and of the Plan Assets Value with Assets and Liabilities Recognized in the Balance Sheet

Capef Specification DB Plan DB Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present value of actuarial obligation at the (5,603,746) (5,647,446) (37,751) (32,359) en d of the period 2. Fair value of plan assets at the end of the 4,510,677 4,715,575 91,375 88,627 period 3. Surplus (deficit) of the plan (item 1 - item 2) (1,093,069) (931,871) 53,624 56,268 4. Asset ceiling effect at the end of the period - - (53,624) (56,268) 5. Liability recognized in the balance sheet at (1,093,069) (931,871) - - the end of the period

Camed Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Present value of actuarial obligation at the end (2,359,572) (2,293,236) (368,074) (363,829) of the period 2. Fair value of plan assets at the end of the 165,335 158,763 - - period 3. Surplus (deficit) of the plan (item 1 - item 2) (2,194,237) (2,134,473) (368,074) (363,829) 4. Liability recognized in the balance sheet at (2,194,237) (2,134,473) (368,074) (363,829) the end of the period

l) Amounts recognized in P&L for the year

Capef DB Plan DB Plan Specification 2nd 01.01 to 01.01 to 2nd 01.01 to 01.01 to Half /2020 12.31.2020 12.31.2019 Half /2020 12.31.2020 12.31.2019 1. Current service cost, net (6,009) (11,924) (2,811) 620 1,180 1,412 1.1. Service cost (5,995) (11,990) (2,989) (66) (132) (119) 1.2. Active participants’ contributions (14) 66 178 686 1,312 1,531 2. Net interest (29,306) (58,611) (50,297) - - - 2.1. Interest expense (177,021) (354,042) (392,997) (1,163) (2,326) (1,311) 2.2. Interest income 147,715 295,431 342,700 3,244 6,489 5,128 2.3. Interest on ceiling effect - - - (2,081) (4,163) (3,817) 3. Amounts recognized in P&L for the year (35,315) (70,535) (53,108) 620 1,180 (1) 1,412 (1) (item 1 + item 2) (1) Amounts recorded under “Reversal of operating provisions”.

Camed Life insurance Natural Plan Specification 2nd 01.01 to 01.01 to 2nd 01.01 to 01.01 to Half /2020 12.31.2020 12.31.2019 Half /2020 12.31.2020 12.31.2019 1. Current service cost, net (20,861) (41,727) (9,281) (680) (1,174) 951 1.1. Service cost (21,245) (42,489) (9,626) (1,902) (3,804) (1,976) 1.2. Active participants’ contributions 384 762 345 1,222 2,630 2,927 2. Net interest (75,695) (151,390) (132,034) (13,067) (26,086) (13,158) 2.1. Interest expense (81,245) (162,490) (145,446) (13,067) (26,086) (13,158) 2.2. Interest income 5,550 11,100 13,412 - - - 3. Amounts recognized in P&L for the year (96,556) (193,117) (141,315) (13,747) (27,260) (12,207) (item 1 + item 2) (1) (1) Including employees’ contribution granted to be refunded to the Bank - Natural Plan: 2nd half/2020: R$30; 01.01 to 12.31.2020: R$60; 01.01 to 12.31.2019: R$69; and Life Insurance: 2nd half/2020: R$3; 01.01 to 12.31.2020: R$6; 01.01 to 12.31.2019: R$6.

The contributions referring to the DC portion of the VC I plan were accounted for under “Post-employment benefit expenses”, as follows:

Specification 2nd half/2020 01.01 to 12.31.2020 01.01 to 12.31.2019 1. Contributions (DC portion) (1) (36 ,757) (66 ,521) (61 ,005) (1) Including transferred employees’ contribution: 2nd half of 2020 - R$69; 01.01 to 12.31.2020 - R$126; and 01.01 to 12.31.2019 - R$148.

The administrative expenses of the Defined Benefit (DB) plan are accounted for under “Post-employment benefit expenses”, as stated below:

2nd 01.01 to 01.01 to Specification half/2020 12.31.2020 12.31.2019 1. Administrative expenses (3,372) (6,158) (6,880)

m) Amounts for the Period Recognized in Equity

Actuarial gains resulting from financial assumptions at 12.31.2020 refer to increases in the actual discount rates in relation to 12.31.2019, from 2.87% (12.31.2019) to 3.30% (12.31.2020) in the DB plan, from 3.46% (12.31.2019) to 3.90% (12.31.2020) in the VC I plan and Group Life Insurance, and from 3.46% (12.31.2019) to 3.89 % (12.31.2020) in the Natural Plan. This year, losses were recorded as a result of the Voluntary Retirement Program (PID), offered by the Bank to its employees. Losses were also recognized as a result of changes in the Mortality and Disability Tables.

Capef Specification DB Plan VC I Plan 01.01 to 01.01 to 01.01 to 01.01 to 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Gains/(losses) on assets (1) (196,974) 723,152 (48,075) 18,973 2. Actuarial gains (losses) on obligation 26,611 (1,074,974) 38,782 (9,656) 2.1. From experience adjustments (35,487) 174,051 34,096 426 2.2. From changes in financial assumptions 248,977 (965,365) 1,251 (10,082) 2.3. From changes in the costing plan - (106,590) - - 2.4. From application of the benefit readjustments - (177,070) - - 2.5. From changes in biometric assumptions - (184,204) - 3,390 - tables 2.6. From changes in other assumptions - PID (2,675) - 14 - 2.7. From changes in other assumptions – Family - - 31 - structure 3. Asset ceiling effect - - 6,807 (12,249) 4. Amounts recognized in equity at the end of the (170,363) (351,822) (2,486) (2,932) year (item 1 + ite m 2 + item 3) (2) (1) Return on plan assets, less amounts included in net interest on the net amount of liabilities (assets) of the defined benefit. (2) Including difference in estimated contributions in the calculation of the VC I plan: 01.01 to 12.31.2020: (R$140).

Camed Life insurance Specification Natural Plan 01.01 to 01.01 to 01.01 to 01.01 to 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. Gains/(losses) on assets (1) 8,359 8,820 - - 2. Actuarial gains (losses) on obligation 80,813 (604,000) 18,830 (208,564) 2.1. Experience adjustments 101,921 (28,351) 5,971 43,187 2.2. Changes in financial assumptions 177,297 (484,613) 27,495 (85,548) 2.3. Changes arising from the increase in health care costs, net of the gain arising from the - (196,814) - - readjustment to the dependent’s contribution table 2.4. Changes resulting from the reduction of the - 60,846 - - administrative expense rate 2.5. Changes resulting from change in the health care inflation rate (HCCTR) and average medical (33,590) 44,932 - - cost 2.6. From changes in the Contract - - - (166,203) 2.7. Changes in biometric assumptions - tables (164,430) - (14,615) - 2.8. From the Voluntary Retirement Program (PID) (385) - (21) - 3. Amounts recognized in equity at end of year 89,172 (595,180) 18,830 (208,564) (item 1 + item 2) (2) (1) Return on plan assets, less amounts included in net interest on the net amount of liabilities (assets) of the defined benefit. (2) Including estimated contribution difference in the Natural Plan actuarial calculation: 01.01 to 12.31.2020: R$12,360 and in the group life insurance actuarial calculation: 01.01 to 12.31.2020: R$10; 01.01 to 12.31.2019: (R$1). n) Reconciliation of Changes in Net (Liabilities) Assets recognized in the Year Capef Specification DB Plan DB Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. (Liabilities)/assets recognized at the beginning of (931,871) (606,070) - - the period 2. Employer contributions 79,700 79,129 1,306 1,520 3. Amounts recognized in P&L (70,535) (53,108) 1,180 1,412 4. Amounts recognized in equity for the period (170,363) (351,822) (2,486) (2,932) 5. (Liabilities)/assets recognized at the end of the (1,093,069) (931,871) - - period

Camed Life insurance Specification Natural Plan 12.31.2020 12.31.2019 12.31.2020 12.31.2019 1. (Liabilities)/assets recognized at the beginning of (2,134,473) (1,474,370) (363,829) (147,161) the period 2. Employer contributions 84,973 81,979 4,185 4,103 3. Return of Sponsor’s contributions (40,792) (5,587) - - 4. Amounts recognized in P&L (193,117) (141,315) (27,260) (12,207) 5. Amounts recognized in equity 89,172 (595,180) 18,830 (208,564) 6. (Liabilities)/assets recognized at the end of the (2,194,237) (2,134,473) (368,074) (363,829) period

o) Investment policy and allocation of plan fair values

The investment policies for DB and VC I plans are annually prepared for a 5-year period, subject to approval from the Capef’s Decision-Making Board and are mainly intended for defining guidance procedures for management of assets compared to benefit expenses, aiming at the actuarial balancing of each plan. The DB plan goal to be reached in its investments is represented by INPC + 5.50% p.a., and VC I plan represented by IPCA +5.00% p.a. For allocation of funds and limits per segment of application, the guidelines of CMN Resolution No. 3792 dated 09.24.2009 and amendments are taken into consideration, in addition to safety, liquidity, profitability and maturity criteria of the plan. The proposal of fund allocation is reviewed at any time, due to any significant event that may substantially change the macroeconomic assumptions regarded. Deliberations on natural plan investments are approved by the Executive Board and submitted to the Decision- Making Board of Camed. For investments associated with financial guarantees with the Brazilian Agency for Supplementary Health (ANS), the limits and conditions set forth by this agency are observed

Capef Camed Specification DB Plan (%) Natural Plan (%) Plano Natural (%) 12.31.2020 12.31.2019 12.31.2020 12.31.2019 12.31.2020 12.31.2019 Fixed income 86.95 89.17 73.51 79.11 88.19 94.44 Variable income 5.73 2.68 12.99 7.30 9.23 2.88 Real Estate 5.40 6.34 4.89 6.02 2.58 2.68 Multimarket (Foreign and Structured - - 4.49 3.40 - - Funds) Operations with Participants 1.79 1.81 4.12 4.17 - - Financial Instruments (Structured) 0.13 - - - - -

p) Sensitivity analysis of main assumptions

The sensitivity analysis shows how the defined benefit obligation, as of 12.31.2020, would be affected by changes in the following significant assumptions:(i) the increase or decrease by 0.25% p.a. in interest rate; (ii) the increase or decrease by 10% in mortality table of active participants; and (iii) the increase or decrease by 0.25% p.a. in health care inflation (HCCTR) in the Natural plan.

Current Interest rate Biometric Tables parameters Capef - DB Plan Aggrav. (- Smoot. 12.31.2020 + 0.25% -0.25% 10%) (+10%) Present value of actuarial obligation (5,603,746) (5,467,397) (5,746,188) (5,417,406) (5,816,902) Fair value of assets 4,510,677 4,510,677 4,510,677 4,510,677 4,510,677 Technical surplus (deficit) (1,093,069) (956,720) (1,235,511) (906,729) (1,306,225) Variations: Increase/decrease in actuarial obligation (%) (2.4%) 2.5% (3.3%) 3.8% Increase/decrease in technical surplus (deficit) - (%) (12.5%) 13.0% (17.0%) 19.5%

Current Interest rate Biometric Tables parameters Capef - VC I Plan Aggrav. (- Smoot. 12.31.2020 + 0.25% -0.25% 10%) (+10%) Present value of actuarial obligation (37,751) (37,072) (38,457) (35,953) (41,182) Fair value of assets 91,375 91,375 91,375 91,375 91,375 Technical surplus (deficit) (1) 53,624 54,303 52,918 55,422 50,193 Variations: Increase/decrease in actuarial obligation (%) (1.8%) 1.9% (4.8%) 9.1% Increase/decrease in technical surplus (deficit) – (%) 1.3% (1.3%) 3.4% (6.4%) (1) Amount not recognized in view of the asset ceiling effect.

Current Interest rate HCCTR Biometric Tables parameters Camed - Natural Plan Aggrav. (- Smoot. 12.31.2020 + 0.25% - 0.25% + 0.25% - 0.25% 10%) (+10%) Present value of actuarial (2,359,572) (2,265,503) (2,460,128) (2,480,564) (2,245,914) (2,238,824) (2,497,817) obligation Fair value of assets 165,335 165,335 165,335 165,335 165,335 165,335 165,335 Technical surplus (deficit) (2,194,237) (2,100,168) (2,294,793) (2,315,229) (2,080,579) (2,073,489) (2,332,482)

Variations: Increase/decrease in actuarial obligation (4.0%) 4.3% 5.1% (4.8%) (5.1%) 5.9% (%) Increase/decrease in technical surplus (4.3%) 4.6% 5.5% (5.2%) (5.5%) 6.3% (deficit) – (%)

Current Interest rate Biometric Tables parameters Life Insurance Aggrav. (- Smoot. 12.31.2020 + 0.25% -0.25% 10%) (+10%) Present value of actuarial obligation (368,074) (353,620) (383,463) (382,960) (351,700) Technical surplus (deficit) (368,074) (353,620) (383,463) (382,960) (351,700) Variations: Increase/decrease in actuarial obligation (%) (3.9%) 4.2% 4.0% (4.4%) Increase/decrease in technical surplus (deficit) - (%) (3.9%) 4.2% 4.0% (4.4%) q) Impacts on Future Cash Flows q.1) Expected Contributions for 2021

Capef Camed Life

Specification (1) (2) (3) insuran DB Plan VC I Plan Plano Natural ce 1. Employer contributions 88,295 1,176 33,084 3,518 2. Active Employees’ contributions 46 1,150 - 2,127 3. Former Vested Employees’ contributions 88,248 - 32,077 3,845 (1) Except for contributions intended for administrative costing: 01.01 to 12.31.2021: Employer: R$6,646 and Employees/Vested participants: R$6,646; (2) Except for contributions intended for part of the DC plan: 01.01 to 12.31.2020: Employer: R$57,193 and Employees: R$57,218; (3) Except for co-payments.

q.2) Expected Payments of Benefits

Capef (1) Camed (1)(2) Life Specification DB Plan VC I Plan Natural Plan insurance (1) Within 1 year 415,390 2,058 78,352 10,753 From 1 to 2 years 396,967 1,845 80,150 11,339 From 2 to 3 years 377,400 1,505 81,737 11,851 From 3 to 4 years 356,697 1,224 82,589 12,287 Over 4 years 4,057,292 31,119 2,036,744 321,844 Total 5,603,746 37,751 2,359,572 368,074 (1) The amounts of expected benefits were calculated without present value discount. (2) Net of co-payment of vested participants r) Estimated Expenses for 2021

Capef Camed Life Specification DB Plan VC I Plan Natural Plan insurance 1. Current service cost, net (9,419) 992 (31,416) (1,039) 2. Net interest (73,733) - (166,143) (27,943) 3. Total (expenses)/revenues to be recognized (83,152) 992 (197,559) (28,982)

NOTE 25 - Profit Sharing

The provision for employees’ profit sharing for the year corresponds to R$60,546 (R$105,003 at 12.31.2019), equivalent to 5.94% of net income for the year (6.05% at 12.31.2019) and 25% (25% at 12.31.2019) of interest on equity for the year. The profit sharing expense for the year totals R$62,316, of which R$17 refers to compplementary profit sharing for 2019 and R$62,299 (R$105,246 at 12.31.2019) to the profit sharing for the year, where R$60,546 (R$105,003 at 12.31.2019) was paid to Employees and R$1,753 (R$243 at 12.31.2019), to Managing Officers. Profit sharing amounts paid to Employees and Managing Officers amounted to R$78,578 (R$79,235 at 12.31.2019) and R$1,633 (R$1,396 at 12.31.2019), respectively.

NOTE 26 - Fundo Constitucional de Financiamento do Nordeste (FNE) a) The total Equity of FNE, amounting to R$ 96,267,876 (R$ 89,289,553 at 12.31.2019) are recorded in the Bank’s memorandum accounts named “Assets of Managed Public Funds/FNE”. b) Cash and cash equivalents and funds committed to loans, which represent cash and cash equivalents of FNE in the amount of R$ 14,293,626 (R$ 22,691,198 at 12.31.2019), recorded under “Other obligations/Financial

and development funds” bear interest at the extra-market rate. In period, the interest expense on cash and cash equivalents totaled R$ 545,993 (R$ 1,381,.078 at 12.31.2019). c) The provision to cover the risk on FNE transactions is recognized pursuant to the following criteria:

c.1) Transactions contracted until 11.30.1998 are risk-free; c.2) For transactions contracted beginning 12.01.1998, excluding transactions under PRONAF (groups A, A/Microcredit, B, A/C, Forest, Semi-arid Region, Emergency, Flood, Drought/1998, Semi-arid Region- Drought 2012 and Drought-2012-Funding), the Bank’s risk is 50% of the amount calculated pursuant to CMN Resolution No. 2682 of 12.21.1999; and c.3) The Bank assumes all the risks on renegotiated and reclassified FNE loans, as set forth by Law No. 11775 of 09.17.2008, and transactions recognized in “Onlending debtors”, as prescribed by Ministry of Integration Administrative Ruling No. 147 of 04.05.2018. Loans funded by FNE, under Law No. 12716 of 09.21.2012 and Law No. 12844 of 07.19.2013, for the purpose of settling BNB transactions with other sources of funds, will maintain the same risk position of the transaction to be settled.

d) The financing balances and provisions recorded under “Provision for financial guarantees provided” of the Bank are broken down as follows:

Prudential Total Balances at Regular provision Balances at Provision at Risk level provision at provision at 12.31.2020 at 12.31.2020 (1)(2) 12.31.2019 12.31.2019 (1) (2) 12.31.2020 (3) 12.31.2020 AA 34 ,922 ,308 - (134 ,686 ) (134 ,686 ) 23 ,744 ,405 - A 22 ,021 ,060 (55,298 ) (160 ,883 ) (216 ,181 ) 18 ,297 ,029 (45 ,788 ) B 6,004 ,651 (30 ,245 ) (35 ,747 ) (65 ,992 ) 5,699 ,923 (28 ,786 ) C 2,193 ,204 (32 ,791 ) (13 ,551 ) (46 ,342 ) 1,714 ,095 (25 ,646 ) D 923 ,220 (46 ,206 ) (6,822 ) (53 ,028 ) 886 ,581 (44 ,349 ) E 632 ,393 (95 ,441 ) (5,339 ) (100 ,780 ) 938 ,294 (141 ,085 ) F 495 ,524 (123 ,967 ) (3,177 ) (127 ,144 ) 370 ,768 (92 ,668 ) G 428 ,271 (149 ,837 ) (1,856 ) (151 ,693 ) 357 ,882 (125 ,30 6) H 4,178 ,467 (2,076 ,702 ) - (2,076 ,702 ) 4,506 ,150 (2,243 ,963 ) Total 71 ,799 ,098 (2,61 0,487 ) (36 2,061) (2,972 ,548) 56 ,515 ,127 (2,747 ,591 ) (1) At 12.31.2020, this balance includes provision to cover the Bank risk on loan transactions with indication of irregularities in the amount of R$40,837 (R$44,715 at 12.31.2019). (2) Includes effects of renegotiations of loans, based on Law No. 13340 of 09.28. 2016, which authorized granting of rebates and renegotiation of debts from rural credit operations contracted up to 12.31.2011, with FNE funds and mixed funds from FNE and other sources. (3) At 12.31.2020, this includes a prudential provision in percentages higher than the minimum required by CMN Resolution No. 2682, of 12.21.1999, set up based on a model established internally for credit risk classification according to Note 9.d.

e) For transactions entered into after 11.30.1998, del credere commission is 3% p.a., when the risk is 50%, and 6% p.a. when the Bank is a direct party to the transaction backed by onlending based on article 9, item A of Law No. 7827 of 09.27.1989. In transactions reclassified for FNE based on Law No. 11775 of 09.17.2008, del credere commission is 3% p.a. or 6% p.a., as regulated by Interministerial Ruling No. 245 of 10.14.2008, of the Ministry of Finance and Ministry of National Integration. Income from del credere commission totaled R$ 1,949,580 (R$ 1,607,175 at 12.31.2019). f) In the period, the administration fee was R$ 1,487,335 (R$ 1,422,679 at 12.31.2019), calculated at 2.4% p.a. on Equity and appropriated on a monthly basis g) The Provisional Executive Order No. 812, signed into Law No. 13682 of 06.19.2018, determined the following changes, from 2018 onwards: i) annual reduction in administration fee at 0.3%, from 3% in 2018 to 1.5% from 2023 onwards; ii) the calculation basis is the Equity of FNE, deducted from the balance of cash and cash equivalents referred to in article 4 of Law No. 9126 of 11.10.1995, of the amounts transferred to the Bank based on article 9-A of Law No. 7827 of 09.27.1989 and of the balances of investments under Pronaf addressed by article 6 of Law No. 10177 of 01.12.2001, and the Program regulation (MCR-10) (groups A/Microcredit, Forest, Semi-arid region, Emergency, Flood, Drought/1998, Semi-arid Region-Drought 2012 and Drought- 2012/Funding); iii) the Bank will be entitled to the percentage of 0.35% (thirty-five hundredths percent) p.a. on the balances of cash and cash equivalents addressed by article 4 of Law No. 9126 of 11.10.1995; iv) the amount to be received by the Bank as administration fee, after deducting the amount of the remuneration on cash and cash equivalents, may be increased up to 20% (twenty percent) based on the timely-payment factor for loans with operational risk fully assumed by FNE or with risk shared between the Bank and the Fund, calculated in accordance with the methodology for calculating the allowance for loan losses applicable to bank loan; and

v) the administration fee plus remuneration on cash and cash equivalents is limited, every month, to 20% (twenty percent) of the accumulated amount, up to the reference month, of transfers addressed by letter c of item I of the main section of article 159 of Federal Constitutions, carried out by Government. h) Measures taken to mitigate the economic impacts of the COVID-19 pandemic

CMN Resolution No. 4798, of April 6, 2020, suspended for up to 12 (twelve) months the installments overdue and falling due until December 31, 2020, with possible increase at the end of the operation, for nonrural operations, performing and in default of up to 90 days, under the responsibility of FNE beneficiaries who have been impacted by the state of public calamity recognized in an act of the Executive Branch. CMN Resolution No. 4801, of April 9, 2020, with the amendments introduced by CMN Resolution No. 4840, of July 31, 2020, authorized the extension until December 15, 2020 of the installments of overdue credits from January 1, 2020 to December 14, 2020 of costing and investment rural credit operations contracted by rural producers, including family farmers and their cooperatives, whose sale of production has been impaired as a result of the social distancing measures adopted to mitigate the impacts caused by the Covid-19 pandemic.

The amount of loans whose installments were suspended based on these Resolutions is shown below:

Type of settlement Number Amount renegotiated CMN Resolution No. 4782/20 – Covid 19 10 ,409 3,685 ,431 Automatic Renegotiation CMN Res. No. 4782 and No. 4798/2020 86 ,803 42 ,382 ,793 CMN Resolutio n No. 4 801/ 2020 6,751 347 ,519 CMN Resolution No. 4798/2020 4,845 1,174 ,710 Automatic Renegotiation CMN Res. No. 4801/2020 90 ,011 100 ,011 Law No. 13998/20 P -FIES Covid 19 1 15 CMN Res. No. 4840/2020 – Automatic Renegotiation Prona f B 145 ,019 13 9,712 CMN Res. No. 4801 -4840/2020 – Automatic Renegotiation 7,501 10 ,051 Covid19 Renegotiation - Additional 444 128 ,323 Covid19 Par -Renegotiation - Additional 2 233 Covid19 Digital Renegotiation - Additional 1,558 146 ,425 Tota l 353 ,344 44 ,429 ,792

NOTE 27 - Workers’ Assistance Fund (Fundo de Amparo ao Trabalhador - FAT)

The Workers’ Assistance Fund (FAT) is a special financial-accounting fund under the Ministry of Labor and Employment (Ministério do Trabalho e Emprego - MTE), whose purpose is to finance the Unemployment Insurance, Salary Bonus and Economic Development Programs. The main actions financed by the Bank with FAT funds are as follows:

Specification Tade 12.31.2020 12.31.2019 Protrabalho - Investment 004/2007 12 2,821 105 ,039 Total 122 ,821 105 ,039

Obligations derived from the Workers’ Assistance Fund (FAT), recorded under ‘Interest-yielding special deposits’, totaling R$ 14,838 (R$ 18,823 at 12.31.2019), are subject to average SELIC rate while they are not used in loans, and subject to the Long-Term Rate (TLP) when released. The funds available amount to R$ 9 (R$ 1,105 at 12.31.2019). Remuneration of funds allocated in the Bank shall be paid to FAT on a monthly basis, as established in Codefat Resolutions No. 439/2005, 489/2006 and 801/2017, with a minimum amount equivalent to 2% calculated on the total balance of each Special Deposit Allocation Statement (TADE)), plus cash and cash equivalents that fall under the following conditions, in terms of remaining in the Bank’s cash: - after 2 months, with respect to the reimbursements of the final borrowers, not reused in new financing; and -after 3 months, with respect to the new deposits made by FAT and not released to final borrowers. Return of FAT funds 12.31.2020

(1) TJLP or Specification Tade SELIC Available Form (2) RA TLP Total remuneration TMS (3) applied (4) Protrabalho - Investment 04/2007 RA 3,991 22 9 14 ,828 14 ,837 PNMPO 01/2010 RA 765 6 - - - Total ( Note s 13.b and 29.a.1) 4,756 28 9 14 ,828 14 ,837

Return of FAT funds 12.31.2019

(1) TJLP or Specification Tade Available Form (2) Form (2) Form (2) TLP Total TMS (3) applied (4) Proger – Urbano - investment 17/2006 RA 9,575 68 - - -

FAT - Infrastructure (5) 18/2006 RA 1,288 11 - - - Protrabalho -Investmen t 04/2007 RA 7,157 119 346 17 ,718 18 ,064 PNMPO 01/2010 RA 31 ,138 407 759 - 759 Total (Note 13.b and Note 29.a.1) 49 ,158 605 1,105 17 ,718 18 ,823 (1) Tade: Special Deposit Allocation Statement; (2) RA - Automatic Return (Monthly, 2% on total balance); (3) Funds yielding by Average SELIC Rate (TMS); (4) Funds yielding by: Long-Term Interest Rate (TJLP) for transactions taken out up to 12.31.2017 and Long-Term Rate (TLP) for loans taken out from 01.01.2018 onwards. (5) Regarding FAT - Infrastructure, RA is 1% on the balance and deductible reimbursements refer to the last 4 months.

NOTE 28 – Risk Management and Basel Index a) Risk and Capital Management The Bank’s corporate governance instruments include an internal control structure so that the operational, credit, market, liquidity and social and environmental risks as well as Interest Rate Risk in the Banking Book (IRRBB) may be adequately monitored. The risk management methodology observes the guidance set forth by the Basel Committee, with priority to identification of possible risks existing in the different Bank processes, and implementation and monitoring of key indicators and of mechanisms to mitigate any risks.

Risk Management Structure The risk management structure is unified at the strategic level and specific at its business and support units’ levels, observing the principle of segregation of activities. The units and their basic responsibilities regarding risk management are defined, formally standardized and disclosed in the institution’s policies and standards website. The performance of this structure takes into consideration the Banks’s financial balance and is based on the institution’s integrity and ethics policy and on the principles of social and environmental responsibility, in relationships with its customers, partners, employees, shareholders, service providers and with the society. In this context, the Integrated Risk Management of the Bank includes, as an essential principle, sustaining a structured risk management system that is integrated to its management activities. It provides information that supports the Bank’s various decision-making levels in assessing the risks involved and is designed to guide the management of risks that threaten the achievement of business objectives, establishing rules based on principles and good corporate governance practices, implemented under the guidance of the Bank’s senior management and supervisory boards.

Capital Management Structure The Executive Board is responsible for approving the capital management structure of the Bank, including the Capital Plan for the period from 2021 to 2025, which was also approved by the Board of Directors on 12.08.2020. The Control and Risk Executive Board is responsible for Capital Management, and a specific administrative unit has been structured for this purpose, as required by CMN Resolution No. 4557 of 02.23.2017. The Capital Management Structure information is available at www.bnb.gov.br. The Bank’s capital adequacy is managed taking into consideration the regulatory requirements plus a Capital target of 1.0 percentage point above the minimum requirements, considering the Referential Equity (RE), Tier I, Principal Capital and Additional Principal Capital requirements. The Bank prepares its Capital Plan in line with the Strategic Planning, in order to reflect the results planned therein and, at the same time, comply with the provisions of CMN Resolution No. 4557/2017. In this sense, in order to increase the adhesion of the Capital Plan to business planning, it was decided to extend its threshold to five years, based on the version prepared in 2018, exceeding the minimum defined in the referred to resolution by two years. In the plan prepared for 2021 to 2025, there was no evidence of noncompliance with the minimum regulatory capital requirements in any of the scenarios used. There would be a commitment to the capital target (2.0 percentage points above the minimum regulatory capital requirements) only in stress scenarios occurring after 2022.

Corporate Risk Management Policy The corporate risk management policy sets forth guidelines and standards that integrate the Bank’s activities, for management of credit, operational, market and liquidity risks, Interest Rate Risk for instruments classified in the Banking Book (IRRBB), as well as concentration and social and environmental risks. The Risk Management Committee analyzes and forwards for approval by the Executive Board and Board of Directors proposals for creation of and adjustments in strategies, policies, models and procedures for risk management. The Control and Risk Executive Board coordinates the implementation thereof and the Bank’s performance, through a specific unit that manages risks, in an integrated manner, at corporate level, defining management methodologies and models, as well as promoting the dissemination of the risk management culture.

Further information relating to risk management focused on matters related to Referential Equity and the amount of Risk-Weighted Assets (RWA), in accordance with BACEN Circular No. 3930 of 14.02.2019, can be found at www.bnb.gov.br.

b) Credit risk Credit risk is defined as the risk of incurring losses associated with default by the counterparty to its obligations under the terms agreed; depreciation and reduction of expected remunerations and gains on financial instruments deriving from deterioration of the creditworthiness of counterparty, intervening party or mitigating instrument; restructuring of financial instruments or costs of recovering exposures characterized as troubled assets. Exposure Specification 12.31.2020 12.31.2019 Loans, co -payments and guarantees given 54 ,475 ,937 45 ,232 ,910 Public sector 1,257 ,833 1,080 ,003 Private sector 53 ,218 ,104 44 ,152 ,907 Trade 6,289 ,503 4,170 ,917 Foreign trade 714 ,439 776 ,651 Manufactu ring 8,346 ,360 7,427 ,931 Infrastructure 16 ,656 ,995 13 ,628 ,564 Urban micro -financing 5,307 ,579 4,327 ,132 Individuals 100 ,781 128 ,248 Rural 9,954 ,839 8,758 ,702 Other Services 5,847 ,608 4,934 ,762 Market transactions 53 ,519 ,103 46 ,250 ,525 Federal Gover nment securitie s 49 ,453 ,031 43 ,360 ,635 Repurchase agreements 20 ,671 ,729 6,382 ,342 Other 28 ,781 ,302 36 ,978 ,293 Interbank Deposits 1,083 ,961 75 ,991 Other securities 1,172 ,934 1,025 ,081 Other transactions 1,809 ,177 1,788 ,818 Other assets 6,191 ,236 4,89 2,986 Total 114 ,186 ,276 96 ,376 ,421

The Bank uses the constant information flow to identify, measure, monitor, assess, report, control and mitigate risks, thus ensuring that credit risk exposure is in accordance with the parameters defined in the Risk Appetite Statement (RAS). Accordingly, the Bank uses instruments, such as: credit policies, risk assessment models and methodologies, methodology for segregation of credit assets in troubled and non-troubled, managerial reports, and system for risk rating and for calculation of expenses related to allowance for loan losses. Furthermore, any approval in terms of risk limits is based on the level of authority by board. In accordance with their characteristics and amount, the limits may be automatically calculated or analyzed and defined by the branches’ credit assessment committees, or by the Operational Supporting Centers’ risk limit approval committees, or also be decided by the customer risk limit approval committee of the General Executive Board or Executive Board. All loans with risk exposure to the Bank are subject to risk rating, based on the customer’s risk rating and loan grade, in accordance with their value, term, nature and purpose characteristics and conditions of collaterals as to their sufficiency and liquidity.

Collaterals for loans above R$ 5,000 with full risk for the Bank The collaterals for loans are determined based on their quality, capacity to be removed and sufficiency. Balances exposed to risk of loans above R$ 5,000 amount to R$ 3,962,877 (R$ 3,283,834 at 12.31.2019). These transactions are backed by collaterals totaling R$ 5,327,127 (R$ 4,703,071 at 12.31.2019). c) Liquidity risk Liquidity risk is the possibility of mismatches between tradable assets and liabilities that could affect the Bank’s ability to pay, as well as the possibility of the institution being unable to negotiate a position at market price due to its volume being greater than the volume normally traded in the market or due to any discontinuity thereof. The Bank adopts projection models to estimate changes in cash and manage its capacity to honor future commitments, communicating the Company’s liquidity position to management through daily reports.

The daily market and liquidity risk management report includes, among other, the Bank’s liquidity ratio, represented by the ratio between available funds and commitments estimated for the next 90 days. Available

funds comprising the liquidity ratio calculation base include banking reserves, highly liquid portion of interbank deposits, repurchase agreements and own securities portfolio.

Specification 12.31.2020(%) 12.31.2019(%)

At reporting date 318.20 931.37 Average for the last 12 months 447.63 854.15 Liquidity ratio Maximum for the last 12 925.24 1,114.25 months Minimum for the last 12 241.95 493.14 months d) Market risk Market risk is the possibility of impairment of assets and/or increase in liability, as well as reduction in finance income and increase in finance costs arising from changes in interest rates, exchange rates, and stock and commodity prices. In managing market risks, the Bank considers market-approved methodologies and instruments, such as: a) VaR (value at risk) of asset and liability transactions in trading portfolio; b) change in in the economic value of financial instruments ( ∆EVE) of the banking portfolio; c) change in gain (loss) from financial intermediation ( ∆NII) of the banking portfolio; d) mapping of Minimum Required Capital (MRC); e) foreign exchange exposure report; f) sensitivity analysis; g) stress testing; h) back-testing; and i) reports on monitoring of limits established for portions exposed to market risk.

The preparation of daily, quarterly and annual managerial reports for management and supervisory and control boards is critical to market risk management. Such reports include, among others, detailed information on and analysis of exposure levels of trading and banking portfolios, currency exposure levels and liquidity levels.

In addition to these reports, the monitoring of market and liquidity risk exposure limits includes a warning system implemented in order to expedite the preparation of managerial information necessary for the decision-making process by the proper levels of authority, based on the following procedures:

Risk exposure limits Control procedure • 1% (one percent) of the Referential Equity (RE) as the possibility If the exposure level exceeds 80% of the limit, the Risk of maximum loss of the Trading Portfolio; Management Area will issue a warning to the Executive Board, the Risk Management Corporate Committee and to • 10% (ten percent) of the amount of Referential Equity (RE), Tier I, managing areas of the products/processes responsible for as the maximum limit for the result of the change in the economic the exposure; value of financial instruments ( ∆EVE) used to measure the interest rate risk in the book banking (IRRBB); If the exposure level exceeds the established limit, the Risk • 10% (ten percent) of the amount of Referential Equity (RE), Tier I, Management Area will issue a formal communication as the maximum limit for the result of the change in the result of (warning) to the Risk Management Committee, the Executive financial intermediation ( ∆NII) used to measure the interest rate Board, the Risk and Capital Committee and the Board of risk in the book banking (IRRBB); Directors for assessment and decision-making process, • 4% (four percent) of the amount of Referential Equity (RE), as the aiming at correcting directions and adequacy to the maximum limit of exposures in foreign currency. tolerance parameter established in the Bank’s Risk Appetite Statement (RAS).

Trading Portfolio Risks

The Bank monitors the composition of the Trading Portfolio on a daily basis, which must consist of: i) self-funded repurchase agreements for purchase with resale commitment; ii) securities classified as securities for trading, when applicable, as defined by Bacen in Circular No. 3068, of 11.08.2001; iii) transactions intended to hedge against the risks of other transactions in the Trading Portfolio. The measurement of the interest rate risk of the Trading Portfolio is made using the Value at Risk (VaR), based on the standard model created by Bacen. At 12.31.2020, the Banco do Nordeste’s Trading Portfolio comprised repurchase agreements, backed by federal public bonds, carried out at fixed rates, with a marked to the market exposure of R$5,490,426 and a VaR of R$1,249.

Interest Rate Risk in the Banking Portfolio (IRRBB)

The Interest Rate Risk of transactions classified in the Banking Portfolio (IRRBB) corresponds to the risk of negative impacts on the Financial Institution’s capital and P&L arising from adverse changes in interest rates, for instruments classified in the banking portfolio. The identification, measurement and control of this risk are carried out according to the criteria recommended in Circular Bacen No. 3876, of 01.31.2018, using the following two metrics: a) ∆EVE as the difference between the present value of the sum of the repricing flows of instruments subject to IRRBB in a base scenario and the present value of the sum of the repricing flows of these same instruments in shock scenarios for interest rates; and b) ∆NII as the difference between gains/losses on financial intermediation of instruments subject to IRRBB in a base scenario and gains/losses on financial intermediation of these same instruments in shock scenarios for interest rates. Gains/losses on financial intermediation of the bank portfolio should not include the allowance for loan losses. The calculation of IRRBB measures is performed monthly, using standardized and internal models (there is an internal model only for ∆NII) based, fundamentally, on the parameters, hypotheses and assumptions established in Circular Bacen No. 3876, of 01.31.2018. At 12.31.2020, Banco do Nordeste’s Banking Portfolio had a marked to market exposure (sum of the absolute value of net exposures for each risk factor) of R$7,569,856, with ∆EVE and ∆NII in the amounts of R$113,662 and (R$3,199), respectively. Stress Testing

The stress test allows to foresee potential gains or losses in the portfolio of transactions due to the variation of interest rates, foreign exchange coupon or price indices, which may come to be adopted in the market in extreme situations. This tool complements other risk management approaches used in normal years, such as Economic Value (EVE), Gains/losses on Financial Intermediation (NII) and Value at Risk (VaR) used by the Bank. Banco do Nordeste carries out two types stress tests on a monthly basis, in accordance with Bacen Circular No. 3365, of 09.14.2007, with the objectives below: a) estimate the percentage of the variation in the market value of the operations in relation to the Referential Equity (RE), using a shock compatible with the 1 st and the 99 th percentiles of a historical distribution of changes in interest rates, considering the holding period of one year and the observation period of five years; b) estimate the number of base points of parallel interest rate shocks required to bring about a reduction in the market value of the asset (or an increase in the value of the liability) of the transactions in the Trading and Banking Portfolios corresponding to 5% (five percent) , 10% (ten percent) and 20% (twenty percent) of the RA; and c) estimate the losses that would occur if the integrated stress scenario, developed by the Bank's economic area jointly with areas such as planning, controllership and risk management, were to occur. The results of the stress tests are communicated, through quarterly reports, to the Bank Management, as well as used by the risk management area for the systematic monitoring of the Bank's level of exposure to interest rate shocks, with the objective of providing the necessary feedbacks to the respective business areas.

Sensitivity analysis

As set forth in CVM Ruling No. 475 of 12.17.2008, the sensitivity analysis was conducted in order to identify significant risks capable of generating losses to the Bank, considering alternative scenarios for the behavior of various risk factors in Trading and Banking portfolio transactions, and its results are as follows:

Scenario Scenario 2 Scenario 3 1 Portfolio/risk factor Type of Risk (variation of 25%) (variation of 50%) (Probable) Balance Balance Loss Balance Loss Trading portfolio Fixed interest rate Increase in interest ra te (5 ,585 ,212) (5 ,590 ,801) (5 ,589) (5 ,596 ,750) (11 ,538) Banking portfolio Dollar coupon Reduction in coupon 3,569 3,380 (189) 3,194 (375) Euro coupon Increase in coupon (1 ,653) (1 ,653) 0 (1 ,654) (1) IGP coupon Increase in c oupon 149 ,682 145 ,320 (4 ,362) 141 ,280 (8 ,402) IPCA coupon Increase in coupon 285 ,185 268 ,290 (16 ,895) 278 ,022 (7 ,163) TJLP coupon Increase in coupon 70 ,126 68 ,753 (1 ,373) 67 ,454 (2 ,672)

TR coupon Increase in coupon (2 ,917 ,096) (2 ,971 ,816) (54 ,720) (3 ,010 ,852) (93 ,756) Fixed interest rate Increase in interest rate 7,026 ,032 6,946 ,245 (79 ,787) 6,875 ,271 (150 ,761)

For purposes of abovementioned calculations, scenario 1, which presents the most probable situation, considered the net balances of portfolios, at marked-to-market values - considering the rates used at B3 - Brasil, Bolsa, Balcão S.A.As regards scenarios 2 and 3, changes of 25% and 50% were applied, respectively, to the market risk factors considered, and new net balances were estimated for the portfolios. Losses correspond to the differences between the balances under scenario 1 and the balances under scenarios 2 and 3.

A sensitivity analysis was also carried out for swap transactions and their respective hedged items, presented in the statements below:

Scenario 1 Scenario 2 Scenario 3 Nature of Type of Financial (Probable) (Variation of 25%) (Variation of 50%) Transaction Risk Instrument Balance Balance Loss Balance Loss Variation in Dollar x DI Swap 226,177 226,505 328 226,835 658 Hedging B3 S.A. Liabilities in FC (225,849) (226,181) (332) (226,514) (665) derivatives Benchmark Rate Net Exposure 328 324 (4) 321 (7)

Market value losses were considered in the net exposure of scenarios 2 and 3 and, as regards scenario 1, arising from a possible stressed increase in the exchange coupon in foreign-currency denominated transactions. The method used in the sensitivity analysis of hedging transactions consisted in the measurement of changes in net exposure marked to market between the dollar-indexed foreign exchange payable and the dollar- denominated foreign exchange receivable of swap transactions. The net exposure was calculated for three scenarios, allowing their comparison. Scenario 1 uses market rates, representing the current situation for risk exposure factors, based on the rates disclosed by B3. Scenarios 2 and 3 are obtained by applying shocks to the foreign exchange coupon used in Scenario 1, as described below: Scenario 1 - 100% of the DI vs. Dollar swap rate is applied. Scenario 2 - 125% of the DI vs. Dollar swap rate is applied. Scenario 3 - 150% of the DI vs. Dollar swap rate is applied. e) Operational risk

The operational risk is the possibility of losses arising from external events, or failures, deficiencies or inadequacies of internal processes, people or systems, including those related to legal issues. Operational risk management requires continuous commitment and involvement of all managers, employees and collaborators, whose main purpose is to mitigate the possibility and impact of operating losses.

The corporate operating risk management system aims at ensuring compliance with the corporate policy in accordance with governance principles and the policies set by the National Monetary Council (CMN), based on the timetable defined by the banking supervisory board. The Bank’s corporate operational risk is managed through a process view and a specific organizational structure designed to support assessment activities in all supporting and business processes of the Institution, mainly based on the Resolutions issued by the Central Bank. The qualitative approach comprises process risk assessment methodologies, follow-up of mitigating measures and managerial reports. Another methodology used is the RCSA (Risk and Control Self-Assessment) that allows simulating risks inherent to activities and procedures, as well as defining their impact. RCSA further allows building a Risk Matrix and defining indicators, aiming at reaching an expanded vision of the processes and improved management. f) Foreign exchange exposure Transactions under agreements that provide for currency adjustment clause presented net balance of foreign exchange exposure sold, in the amount of R$ 23,454 (R$ 47,271 at 12.31.2019 - short position), as follows: Specification 12.31.2020 12.31.2019 Specification 12.31.2020 12.31.2019

3,922 1,939 Deposits - - Cash and Cash Equivalents

Interbank Investments 106,054 24,441 Interdepartmental Accounts 4,040 3,381

Loans 497,955 423,461 63,251 59,338 Borrowings and Onlending - Domestic

711,278 431,861 Other Credits 827,621 879,654 Borrowings and Onlending - Foreign

Other Obligations 907,302 882,186

Total Assets in Foreign Currencies, 1,435,552 1,329,495 Total Liabilities in Foreign exclu ding Derivatives 1,685,871 1,376,766 Currencies 226,865 - Swap transactions

Total Long Position in Foreign Total Short Position in 1,662,417 1,329,495 1,685,871 1,376,766 Currencies Foreign Currencies

Foreign exchange exposure is maintained below the limits established in the Corporate Risk Management Policy (5% of the Referential Equity - RE). g) Operational Limits – Basel Accord At 12.31.2020, the Bank presented an Extended Basel ratio (including capital to cover IRRBB) of 12.83% (14.35% at 12.31.2019). The Tier I index stood at 10.02% (10.44% at 12.31.2019) and the Principal Capital index at 8.82% (9.04% at 12.31.2019). The calculated RE was R$8,729,534 (R$8,265,588 at 12.31.2019), Tier I was R$6,675,190 (R$5,982,984 at 12.31.2019) and Principal Capital of R$5,879,301 (R$5,181,944 at 12.31.2019), while risk-weighted assets (RWA amount) totaled R$66,623,721 (R$57,311,851 at 12.31.2019). During the year under review, the possibility of noncompliance with the capital requirements provided for in the current regulation was not observed. i. Minimum Required Capital - MRC (Basel III) Specification 12.31.2020 12.31.2019 Referential Equity (RE) 8,729 ,534 8,265 ,588 . Tier I 6,675 ,190 5,982 ,984 . Principal Capital 5,879 ,301 5,181 ,94 4 . Complementary Capital 795 ,889 801 ,040 . Tier II 2,054 ,344 2,282 ,604 Risk -Weighted Assets (RWA) 66 ,623 ,721 57 ,311 ,851 . RWACPAD 55 ,144 ,098 46 ,532 ,628 . RWACAM 119 ,445 59 ,350 . RWAJUR 16 ,512 42 ,050

. RWACOM 625 4,375 . RWAOPAD 11 ,343 ,041 10 ,67 3,448 Margin on required RE 3,399 ,637 3,680 ,640 Capital to Interest Rate Risk for instruments classified in the Banking Book 113,622 (IRRBB) 21 ,535 Margin on Required Referential Equity considering IRRBB 3,286 ,015 3,659 ,105 Margin on Tier I Required R ef erential Equity 2,677 ,767 2,544 ,273 Margin on Required Principal Capital 2,881 ,234 2,602 ,911 Required Additional Capital - ACP (1.25%) (1) 832 ,797 1,432 ,796 Margin on Required Additional Capital 1,844 ,971 1,111 ,477 Basel Indexes: . Principal c ap ital index (minimum requirement of 4.5%) 8.82 % 9.04% . Tier I index (minimum requirement of 6.0%) 10 .02 % 10 .44% . Referential Equity index (minimum requirement of 8.0%) 13 .10 % 14 .42% . Referential Equity index including IRRBB 12 .83 % 14 .35% (1) 2.5% until December 2019 and 1.25% from April 2020.

Where: . RWACPAD: amount related to credit risk exposures. . RWACAM: amount related to exposure to gold, foreign currency and assets subject to foreign exchange variation. . RWAJUR: amount related to exposures subject to change in interest rates. . RWACOM: amount related to exposures subject to change in commodity prices. . RWAOPAD: amount related to operational risk. . RBAN: capital to cover risk in transactions subject to change in interest rates not classified in the trading portfolio. ii. Breakdown of Referential Equity (Basel III)

Specification 12.31.2020 12.31.2019 Referential Equity (RE) 8,729 ,534 8,265 ,588 TIER I REFERENTIAL EQUITY 6,675 ,190 5,982 ,984 Principal Capital 5,879 ,301 5,181 ,94 4 Share Capital 5,569 ,988 3,813 ,000 Income reserves 1,668 ,959 2,651 ,514 Capital and revaluation reserves 13 ,671 13 ,726 Other Comprehensive Income (1 ,080 ,643) (1 ,050 ,835) Debt instruments eligible to Principal Capital 500 ,000 500 ,000 Prudential Adjustments (792 ,674 ) (745 ,461) intangible assets (721) (563) Tax credits from temporary differences (764 ,640) (741 ,219) Difference to less - Adjustments of CMN Resolution No. 4277 (27 ,313) (3 ,679) Complementary Capital 795 ,889 801 ,040 Instruments Eligible to Complementary Capital 795 ,889 801 ,040 TIER II REFERENTIAL EQUITY 2,054 ,344 2,282 ,604 Instruments eligible to Tier II 2,054 ,344 2,282 ,604

The Debt Instrument Eligible to Principal Capital entered into with the Federal Government comprises Tier I RE, as Principal Capital of the Bank, as authorized by BACEN.As provided for in CMN Resolution No. 4192/2013, this instrument has a repurchase clause that was used by the Bank to request amortization of a total of R$ 500,000, into two installments of R$ 250,000, already authorized by BACEN. The Subordinated Financial Bills, taken out in June 2019 in the amount of R$801,040, were authorized by Bacen to compose the Tier I Referential Equity, as the Bank’s Complementary Capital. These financial bills comply with the provisions of article 10 of Resolution No. 4733, of June 27, 2019 of the CMN, which allows the repurchase of up to 3% of the book value. In the year, Financial Bills were repurchased in the amount of R$5,151. The aforementioned Debt Instrument and Subordinated Financial Bills have perpetuity character and no maturity, as required by CMN Resolution No. 4192 so that they may be eligible for Tier I RE. The Subordinated Debt Instruments entered into with FNE, authorized to comprise Tier II RE before the entry into force of CMN Resolution No. 4192, according to paragraph 2 of its article 23, shall remain eligible up to their amortization. With the publication of CMN Resolution No. 4679 of 07.31.2018, the balances of these contracts were frozen at 06.30.2018 and will be excluded from Tier II Referential Equity at a rate of 10% p.a. from 2020 onwards. These two contracts, although not required by CMN Resolution No. 4192, are also perpetual.

iii. Leverage Ratio (LR) The Leverage Ratio (LR), according to the methodology approved by Bacen Circular No. 3748 of 02.27.2015, corresponds to the division of Tier I RE by Total Exposure. The Bank’s Leverage Ratio is as follows:

Specification 12.31.2020 12.31.2019 Tier I Referential Equity 6,675 ,190 5,982 ,984 Total exposure 105 ,711 ,799 96 ,438 ,083 Leverage Ratio (%) 6.31 6.20 iv. Fixed asset to equity ratio The Bank’s fixed asset to equity ratio, calculated in accordance with the provisions of CMN Resolution No. 2669 of 11.25.1999, is as follows:

Specification 12.31.2020 12.31.2019 Referential Equity - fixed asset to equity limit 8,729 ,534 8,265 ,588 Fixed asset to equity limit (50% of adjusted RE) 4,364 ,767 4,132 ,794 Situation 234 ,094 231 ,910 Margin 4,130 ,673 3,90 0,884 Fixed asset to equity ratio 2.68% 2.81%

NOTE 29 - Related parties

a) Transactions with related parties The Bank’s policy for transactions with related parties provides that the conditions and rates compatible with market practices are applied, in addition to establishing guidelines to be observed in potential conflicts of interest.

In the period, the Bank carried out banking transactions with related parties, such as current account deposits (non-interest bearing), financial investments and loans.

a.1) Significant transactions with state-owned companies, autonomous government agencies, programs and funds controlled by the Federal Government are broken down as follows:

Specification 12.31.2020 12.31.2019 Liabilities Time deposits - FAT (Not es 13.b. and 27) 14 ,837 18 ,823 Domestic onlending - Official institutions (Note 14.b.) 1,213,953 1,167,737 National Treasury 614 505 BNDES 1,174,358 1,118,933 Finame 38,981 48,299 Other Liabilities 18 ,185 ,794 26 ,756 ,657 FNE 14,300,617 22,702,557 FDNE 625,252 662,590 Merchant Marine Fund (FMM) 98,943 96,311 Debt instruments eligible to principal capital (Note 17.a) 500,000 750,000 Subordinated debts eligible to capital (Note 17 c) 2,660,982 2,545,199 Total 19,414 ,584 27 ,943 ,217

a.2) The balances of obligations with Post-employment Benefit Plans are as follows:

Specification 12.31.2020 12.31.2019 Retirement and DB Pension Plan (Note 24 g.1) 1,093 ,069 931 ,871 Health Care Plan (Note 24 g.2) 2,194 ,23 7 2,134 ,473 Life insurance - Post-Employment Benefit (Note 24 g.2) 368,073 363,829 Total 3,655,379 3,430,173 a.3) Significant revenues and expenses with related parties are as follows:

01.01 to 01.01 to Specification 2nd half/2020 12.31.2020 12.31. 20 19 Time deposits - FAT (19 ,270) (52 ,026) (106 ,649 ) National Treasury (88) (109) (25) BNDES (113 ,487) (170 ,160) (92 ,965 ) Finame (4 ,729) (6 ,527) (2 ,84 9) FMM (1 ,200) (19 ,583) (9 ,003 ) FNE 841 ,907 1,391 ,806 467 ,001 FDNE 11 ,514 23 ,522 26 ,273 Debt Instruments Eligible to Principal Capital (54 ,333) (82 ,568) (239 ,988 ) Subordinated Debts Eligible to Capital (47 ,505) (115 ,782) (175 ,754 ) Retirement and DB pension plan (38 ,687) (76 ,693) (59 ,988 ) Retirement and VC I pension plan (36 ,068) (65 ,216) (59 ,446 ) Health insurance plan (61 ,198) (157 ,729) (141 ,246 ) Life insurance - Post-employment benefit (13 ,744) (27 ,253) (12 ,201 ) b) Management Compensation

The compensation of the Board of Directors, Statutory Executive Board and Supervisory Board is shown below: Specification 01.01 to 2nd half/2020 01.01 to 12.31.2019 12.31.2020 Fees 1,152 4,330 3,830 Executive Board 1,020 3,782 3,284 Board of Directors 65 277 275 Supervisory Board 67 271 27 1 Other 375 2,171 1, 268 Variable compensation (RVA) (1) - 936 1,054 Total short -term benefits 1,527 7,437 6,152 Post -employment benefits 80 294 261 Total 1,607 7,731 6,413

(1 ) 50% of RVA corresponds to an equity-based instrument, and the parameter for provision and payment in cash is the quotation price of the Bank's shares on B3. The amounts in the table above correspond to the provision for payments to be made, as well as deferred installments to be settled in the following three years, in accordance with CMN Resolution No. 3921 of 11.25.2010.

The Bank offers to its officers, as post-employment benefits, Pension and Health Care Plans under the same conditions offered to employees. The Bank does not grant loans or advances to key management personnel, in accordance with current regulations.

NOTE 30 – Recurring and Nonrecurring Income

2nd 01.01 to 01.01 to Specification half/2020 12.31.2020 12.31.2019 RECURRING NET INCOME 922 ,867 1,441 ,144 1,277 ,202 (+) NONRECURRING INCOME (23 6,183 ) (421 ,923 ) 459 ,483 Credit Recovery - Law No. 13340/13606 (1) - - 740,221 Impairment of Securities (2) (82,203) (312,047) (126,781) Voluntary Retirement Program (PID) (3) (30,312) (30,312) (4,510) Prudential Provision (4) (363,707) (509,914) - Deferred Tax Assets (CSLL rate increase from 15% to 20%) (5) - - 167,047 Tax effects, of Debt Instruments Eligible to Capital (IECP) and Profit Sharing on 240,039 430,350 (316,494) Extraordinary Items (6) NET INCOME 686,684 1,019,221 1,736,685 (1) Income from extraordinary credit recoveries, effected in compliance with Laws No. 13340/17 and No. 13606/18, totaling R$740,221, which influenced P&L of 2019, and were not repeated in 2020. (2) Amounts recognized as permanent loss for the Bank's Securities portfolio, in the amount of R$312,325 (R$126,781 at 12.31.2019), as provided for in article 6 of Bacen Circular No. 3068, of 11.08.2001. (3) Indemnity expenses with the Voluntary Retirement Program (PID), R$30,312 (R$4,510 at 12.31.2019) related to the complement of the 2018 program, paid in 2019. (4) Prudential provision representing an increase to the minimum percentages required by CMN Resolution No. 2682, of 12.21.1999, set up based on an internally established model of credit risk classification, to cover macroeconomic uncertainties based on stress scenarios. (5) In 2019 and until February 2020, the CSLL rate of 15% was in force, increasing to 20% as of March/2020. ) Amounts calculated on items 1 to 4 of Nonrecurring Income.

NOTE 31 - Other Information a) Voluntary Retirement Program (PID) In the year, the Bank established the Voluntary Retirement Program (PID) for employees who took office before 2000, whose retirement benefit started with the Official Social Security system until 11/12/2019 and are under the age of 75 until 12.31.2020. An expense limit of R$53,007 was set for this Program, and the expense incurred amounted to R$30,312, duly recognized in the Individual Financial Statements. b) Statement of Compliance We confirm that all significant information of the Individual Financial Statements themselves, and only such information, is being disclosed and corresponds to that used in the management of the Bank. c) Approval of Individual Financial Statements

The Individual Financial Statements were approved by the Board of Directors at the meeting held on February 24, 2021.

Fortaleza (Ceará State), February 24, 2021.

The Executive Board

Note: These notes are an integral part of the Individual Financial Statements.

São Paulo Corporate Towers Av. Presidente Juscelino Kubitschek, 1.909 Vila Nova Conceição 04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000 ey.com.br

Independent auditor’s report on financial statements

To the Board of Directors, Shareholders and Officers Banco do Nordeste do Brasil S.A. Fortaleza

Opinion

We have audited the accompanying financial statements of Banco do Nordeste do Brasil S.A. (“Bank”), which comprise the balance sheet as at December 31, 2020 and the related statements of income, of comprehensive income, of changes in equity and of cash flows for the year then ended, and a summary of significant accounting practices and other explanatory information.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Banco do Nordeste do Brasil S.A. as at December 31, 2020, its financial performance and its cash flows for the year then ended, in accordance with accounting practices adopted in Brazil applicable to institutions authorized to operate by the Central Bank of Brazil (BACEN), including Resolution No. 4818/20 of the National Monetary Council (CMN) and Resolution BCB No. 2/2020 of the Central Bank of Brazil (BACEN).

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 financial statements” section of our report. We are independent of the Bank in accordance with the ethical requirements set forth in the Code of Professional Ethics for Accountants and the professional standards issued by Brazil’s National Association of State Boards of Accountancy (“CFC”), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit opinion.

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 period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

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We have fulfilled the responsibilities described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report, including in relation to these key audit matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our procedures, including those performed to address the matters stated below, provide the basis for our audit opinion on the Bank’s financial statements.

1. Contingencies

As described in Note 22, the Bank is party to various administrative and legal proceedings involving matters of labor, tax and civil nature arising from the ordinary course of its business. We considered this issue a key audit matter due to the fact that the expected loss and the amounts attributed involve judgments by management and its legal advisors on frequently complex issues.

How our audit addressed this matter

Among other procedures, we obtained confirmations regarding ongoing lawsuits from the Bank’s internal and external legal advisors and crosschecked the likelihood of loss and amounts attributed against the Bank’s operational controls and accounting records. For the most relevant lawsuits, we tested the calculation of amounts recorded and disclosed and analyzed the reasonableness of the estimates in relation to well-known case law and legal theses. We also analyzed communications received from regulators related to lawsuits, tax assessments and disputes to which the Bank is party, and the sufficiency of disclosures related to issues arising from contingencies and provisions recorded. Lastly, we assessed the adequacy of the disclosures made by the Bank on tax, civil and labor contingencies in Note 22 to the financial statements.

Based on the results of the audit procedures performed on labor, tax and civil contingencies, we consider acceptable the corresponding provisions and disclosures prepared by management in the context of the financial statements taken as a whole.

2. Post-employment benefits

The Bank has significant liabilities related to post-employment benefit plans that, as described in Note 24, include retirement, health and life insurance benefits. We considered this issue a key audit matter due to the magnitude of amounts involved and the complexity of valuation models of actuarial liabilities, which comprise the use of long-term assumptions, such as general mortality, disability, healthcare costs, salary increases, household composition, and discount and inflation rates. Therefore, any differences in the assumptions and estimates used in the calculation may significantly affect the result of the actuarial valuation and impact the actuarial obligation amount determined.

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How our audit addressed this matter

Among other procedures, we analyzed - supported by our subject matter experts - the methodology and significant assumptions used by management in assessing the actuarial obligations arising from the post-employment benefit plans, checking the mathematical accuracy of the calculation and analyzing the consistency of results against the assumptions used and prior assessments. The audit procedures also included tests of the integrity of the databases used in the actuarial projections and the sufficiency of the disclosures related to the post- employment benefit plans. Based on the results of the audit procedures performed on the post-employment benefit plans, which is consistent with management’s assessment, we consider that the criteria and assumptions for assessment of actuarial obligations adopted by management, as well as the respective disclosures in Note 24, are acceptable in the context of the financial statements taken as a whole.

3. Recoverability of tax credits

The Bank records deferred tax asset on temporary differences in determining the income and social contribution tax base, mainly arising from expenses related to the allowance for loan losses associated with the credit risk; post-employment benefits; expenses related to other provisions for contingencies; market value adjustments and derivative financial instruments.

We considered this issue a key audit matter due to the expressive amount recorded and the fact that the study related to the realization of these assets involves a high degree of judgment in determining assumptions on the Bank’s future performance, as described in Note 21.

How our audit addressed this matter

Among other procedures, we analyzed the methodology and assumptions used by management in the study of tax credit realization, including deferred income projections, as well as compliance with the Central Bank of Brazil’s requirements. We checked the mathematical accuracy in the calculation and the consistency between the data used and the accounting balances, as well as the prior assessments and the reasonableness of assumptions used. We also analyzed the sensitivity of those assumptions to evaluate the behavior of projections with their oscillations and the sufficiency of disclosures in the notes to financial statements.

Based on the results of the audit procedures performed on tax credits, which is consistent with management’s assessment, we consider that the criteria and assumptions regarding the study related to their realization, including deferred income projections, prepared by Bank management, as well as the respective disclosures in Note 21, are acceptable in the context of the financial statements taken as a whole.

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4. Allowances for loan losses associated with credit risk

As mentioned in Note 9, the Bank classifies the risk level of loan transactions considering the economic environment, past experience, related guarantees, delays and the history of rescheduling, according to the parameters established by CMN Resolution No. 2682, also considering the expectation of realization of the loan portfolio, in addition to the minimum required by current regulation, based on past experience, current scenario and future expectations. This was considered a key audit matter given the materiality of the amounts, and the fact that the classification of the customers' risk level, the evaluation of guarantees and the current and prospective economic scenario involve management's judgment.

How our audit addressed this matter

We performed, among other tests, an analysis of the economic and financial assessment carried out by the Bank upon classifying the customer’s risk level, through a sample selected for test, and recalculated the allowance for loan losses associated with the credit risk based on the parameters established by CMN Resolution No. 2682, in addition to obtaining an understanding of the expectation of additional loan loss, assessing the reasonableness of the estimates made considering the models, assumptions and data used. We also carried out procedures for measurement of guarantees and monitoring rescheduled transactions.

Based on the results of the audit procedures performed on the allowance for loan losses associated with credit risk, which is consistent with Management’s assessment, we consider that the criteria and assumptions associated with the allowance adopted by Management, as well as the respective disclosures in Note 9, are acceptable in the context of the financial statements taken as a whole.

5. Technology environment

The Bank’s transactions are extremely dependent on the proper operation of the technology structure and its systems, reason why we consider the technology environment one of the key audit matters. Due to the Bank’s nature of business and transaction volume, our audit strategy is based on the effectiveness of the technology environment.

How our audit addressed this matter

Our audit procedures included, among other, the assessment of the design and operational effectiveness of IT General Controls (“ITGC”), implemented by the Bank for those systems deemed relevant to the audit process. The ITGC assessment included the involvement of IT experts to assist us in performing audit procedures designed to assess controls over accesses, change management and other technology aspects. With regard to the audit of accesses, we analyzed, on a sample basis, the process for authorizing and granting new users access, timely removal of access to transferred or terminated employees, and review of users on a regular basis.

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In addition, we evaluated password policies, security settings and access to technology resources. With regard to the change management process, we assessed whether changes to the systems were duly authorized and approved by the Bank at appropriate levels.

In the processes considered significant for the financial statements, we identified the main automated or IT-dependent controls, so that, on a sampling basis, we could perform tests focused on the design and operational effectiveness of such controls.

Our tests on the design and operation of ITGCs and automated controls, considered significant to the audit procedures performed, provided a basis for us to continue the planned nature, timing and extent of our audit procedures.

Other matters

Statement of Value Added

The Statement of Value Added (SVA) for the year ended December 31, 2020, prepared under the responsibility of the Bank management and presented as supplementary information for the purposes of accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Central Bank of Brazil, was submitted to the same audit procedures performed for audit of the Bank’s financial statements. For the purposes of forming our opinion, we evaluated whether this statement is reconciled with the financial statements and accounting records, as applicable, and whether its form and content are in accordance with the criteria provided for in Accounting Pronouncement NBC TG 09 - Statement of Value Added. In our opinion, this statement of value added was prepared fairly, in all material respects, in accordance with the criteria provided in referred to Accounting Pronouncement and is consistent with the financial statements taken as a whole.

Other information accompanying the financial statements and the auditor’s report

Bank management is responsible for such other information that comprises the Management Report.

Our opinion on the financial statements does not cover the Management Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Management Report and, in doing so, 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 of 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 financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting practices adopted in Brazil, applicable to institutions authorized to

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Tel: +55 11 2573-3000 ey.com.br operate by the Central Bank of Brazil, 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.

In preparing the 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 financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, either individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As part of an audit in accordance with the Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained 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 one resulting from error, as fraud may involve override of internal controls, collusion, forgery, intentional omissions or misrepresentations.

• Obtained 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.

• Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Concluded 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 substantial doubt as to 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 financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit

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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.

• Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the corresponding transactions and events in a manner that achieves fair presentation.

We communicate 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.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements, including applicable independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we are required to determine those matters that were of most significance in the audit of the financial statements of the current year 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.

São Paulo, February 24, 2021.

ERNST & YOUNG Auditores Independentes S.S. CRC-2SP034519/O-6

Renata Zanotta Calçada Accountant CRC-1RS062793/O-8

SUPERVISORY BOARD’S REPORT

The Supervisory Board of Banco do Nordeste do Brasil S.A., exercising its legal and statutory prerogatives, examined the Management Report, the Balance Sheet, the Statements of Income, of Comprehensive Income, of Changes in Equity, of Cash Flows and of Value Added of Banco do Nordeste do Brasil S.A., for the year ended December 31, 2020, which were approved, on the date hereof, by the Board of Directors.

Based on the examination conducted, the information and clarifications received during the year, and on the unqualified Independent Auditor’s Report of ERNST & YOUNG AUDITORES INDEPENDENTES S.S., issued on the date hereof, the Supervisory Board’s opinion is that the Management Report and the Financial Statements are in a position to be referred for deliberation at the Annual General Meeting.

Fortaleza (CE), February 24, 2021

SUPERVISORY BOARD

Banco do Nordeste do Brasil S.A.

SUMMARY OF AND CONCLUSIONS ON THE AUDIT COMMITTEE REPORT - 2nd HALF OF 2020

1 – Introduction

The Audit Committee of Banco do Nordeste do Brasil (“Coaud”) is a statutory collegiate of advisory to the Board of Directors (“Consad”), currently composed of four members elected by Consad (one of the members is also a member of the Board of Directors), governed by Law No. 13303/2016 (State-Owned Enterprises Law), Decree No. 8945/2016, CMN Resolution No. 3198/2004, Banco do Nordeste do Brasil’s Charters, its Internal Regulations and other applicable laws. The statutes and electronic address of BNB’s Audit Committee are made available on the Internet at www.bnb.gov.br, under “Institucional/Sobre o Banco/Relação com os Acionistas/Comitês/Comitê de Auditoria”.

2 – Responsibilities

The Audit Committee is responsible for evaluating the quality, transparency and integrity of the Financial Statements, the effectiveness, independence and quality of the work developed by the external and internal audit, as well as the quality and effectiveness of the Internal Control System and risk management. In addition, the Audit Committee recommends the correction and improvement of policies, practices and procedures identified within the scope of its duties, whenever deemed necessary.

The Executive Board of Banco do Nordeste do Brasil are responsible for preparing and ensuring the integrity of the Financial Statements, managing risks, maintaining effective Internal Control System, and ensuring compliance of activities with legal and regulatory standards.

The Capital and Risk Committee (CRC) advises Consad on its risk and capital management duties, evaluating and reporting to the Board of Directors the reports addressing these processes. Coaud assesses and monitors risk exposures through interaction with the CRC.

The External Audit is responsible for the auditing the half-yearly Financial Statements and for review of the quarterly information (ITR) filed with the CVM, as well as for evaluation of the quality and sufficiency of the significant internal controls for preparation and adequate presentation of the Financial Statements, issuing an opinion thereon, based on procedures and standards established in rules that govern the exercise of the profession.

Internal Audit, directly linked to the Board of Directors, is responsible for the independent, ongoing and systematic assessment of the key risks to which the Bank is exposed, through periodic work in which it monitors, evaluates and measures the level of exposure and the actions to manage these risks, in addition to the adequacy of governance and internal controls. The work covers the areas and processes that pose the risks that are most sensitive to the Bank's operations and strategy, through checks as to the existence, quality, sufficiency, compliance and effectiveness of internal controls to mitigate these risks.

Audit Committee Report – 2nd Half of 2020

Banco do Nordeste do Brasil S.A.

3 - Activities of the period

The activities developed by Coaud, within the scope of its duties, are recorded in the Minutes of meetings and covered the set of responsibilities assigned to the Committee.

In compliance with its duties and responsibilities, Coaud held 40 meetings over the 2 nd half of 2020, highlighting those with: Board of Directors; Supervisory Board; Capital and Risk Committee, Executive Board; External and Internal Audit, and managing officers of the business areas, among which Information Technology, Internal Control and Compliance, Security, Risk Management, Financial Control and Accounting. The Committee also held meetings with CAPEF - Caixa de Previdência dos Funcionários do Banco do Nordeste do Brasil and CAMED - Caixa de Assistência dos Funcionários do Banco do Nordeste do Brasil. On these occasions, the issues related to each representative were addressed, and recommendations for improvement were provided, as applicable.

The six-month period was marked by the worsening of the impacts of the pandemic caused by the coronavirus on the economic, social and health areas. The Bank management adopted timely measures to protect its employees, aiming at the integrity of the people with whom relationships are maintained. Preventive actions were also implemented to safeguard the Bank's business and provide financial support to customers, in addition to the preservation of the environment and business continuity, with emphasis on the performance and collaboration of the Company's technological support. Coaud monitored such actions, noting that in the previous six-month period a specific recommendation had already been provided to the Audit Supervisory Office to carry out assessment work. As in the first half of the year, special attention was given to the potential impacts on loan portfolios, and the procedures for the respective set-up of accounting provisions.

The Committee also monitors and operates on the results of inspections and findings by external agencies and held meetings and/or kept in touch with representatives of the supervisory and control agencies.

The half-yearly reports of Coaud's activities, the minutes of the Committee's meetings, as well as its Annual Work Plan were submitted to the Board of Directors on a regular basis. The Committee participated monthly in the Board of Directors' meetings, with specific agenda.

Coaud was not aware of the existence and/or evidence of fraud or non- compliance with legal and regulatory standards that could jeopardize the continuity of the institution, perpetrated by management, employees or third parties.

Regarding Continuing Education, although the pandemic has restricted the in- person participation in training and professional development events, the Committee members kept up to date and invested in training over the six-month period, through the Febraban, in addition to participating in the course for Improvement in Governance and Capital Markets for Administrators of Public Companies and Mixed Economy Companies, held by IBGC.

Audit Committee Report – 2nd Half of 2020

Banco do Nordeste do Brasil S.A.

With regard to its duties, the Audit Committee developed the following activities:

3.1 Internal Audit

At the meetings held with the Audit Committee, its planning process, projects and compliance with the legislation and regulations applicable to the Internal Audit, as well as the technical training necessary for auditors to carry out their work efficiently and effectively. Among other, were discussed and evaluated. In addition, the results of the evaluation of the Internal Control system, the summaries and reports of the main works and the monitoring of the main recommendations of the internal and external audit as well as of the external supervisory and control agencies were addressed. Significant disciplinary audit cases were also monitored, and Special Rendering of Accounts (TCE) initiated by the Audit.

The Audit Committee followed the key recommendations issued by the Internal Audit, as well as sanitation measures, adopted by Management in meetings with representatives of the areas audited.

3.2 External Audit

Coaud assessed the planning and results of the main works performed by the independent auditors, their conclusions and recommendations, the key audit matters addressed by them and the compliance with the applicable auditing standards relating to the Financial Statements as well as recommendations for improving internal control. Coaud followed the implementation of the respective recommendations for improving processes, systems and mitigating risks.

3.3 Internal Control System The assessment of the effectiveness of the Compliance and Internal Control System was based mainly on the results of the work performed by the area itself, internal and external audit, by the external supervisory and control agencies, by the Control and Risk Board, and on information and documents received and analyzed, arising from different areas of BNB.

3.4 Transactions with Related Parties

Coaud assessed and monitored, together with Management and Internal Audit, the adequacy of transactions with related parties and concluded that they are adequate and in accordance with legal requirements.

3.5 Parameters and actuarial result

Meetings were held with the areas in charge and with the closed-end Private Pension Plan Entity on the BNB’s actuarial valuation process in relation to sponsored plans. Assumptions used, the adherence of the actuarial hypotheses and the results obtained by the plans were also evaluated.

Audit Committee Report – 2nd Half of 2020

Banco do Nordeste do Brasil S.A.

3.6 Risk Exposure Significant activities related to risk management were evaluated and monitored together with the Risk and Capital Committee.

3.7 Financial Statements

BNB’s Financial Statements, including explanatory information, the Management Report and the Independent Auditor’s Report, unqualified, for the year ended 12.31.2020, were audited and reviewed.

Before the disclosures, Coaud held a meeting with the independent auditors to assess the aspects involving the auditors' independence and the control environment in the generation of the information to be disclosed.

3.8 Audit Committee Recommendations New recommendations were made over the six-month period and the implementation of existing recommendations was monitored.

4 - Conclusions

Based on the activities carried out within the scope of its responsibilities, and the limitations inherent in the scope of its activities, the Audit Committee concluded that:

4.1 Compliance and Internal Control System

The Compliance and Internal Control System of Banco do Nordeste do Brasil is appropriate to the size and complexity of the Bank’s business, provides reasonable assurance that the objectives related to the operational efficiency and effectiveness, compliance with applicable laws and regulations and protection of the Bank’s assets have been achieved, and is subject to permanent attention by Management. Nevertheless, opportunities for improvement have been identified in the work of the internal controls, risk management, security, internal audit, external audit and external supervisory and control agencies, and have given rise to management actions for improvement of controls for mitigation of risks that may affect the Institution's processes, operations and business.

The Bank management has maintained the positive development of its model for meeting the demands involving Information Technology, contributing to optimization of the Bank’s operations, mitigation of risks and compliance with the internal audit’s and external supervisory agencies’ recommendations.

The culture and integrity of control have been settled over time, including in relation to the policy of consequences.

Transactions with related parties, evaluated and monitored in the period, together with Management and Internal Audit, complied with the applicable regulations.

Audit Committee Report – 2nd Half of 2020

Banco do Nordeste do Brasil S.A.

The main parameters and assumptions on which the actuarial calculations of sponsored pension fund benefit plans are based are reasonable and in line with best market practices.

Major risk exposures have been adequately managed by Management. The Committee has been discussing with Management and CRC about the integrated risk management matter, which has been subject matter of the Bank’s coordinated action and attention.

Weaknesses in processes, dealt with the Executive Board, have been resolved or are in progress for resolution, and there are no cases of recommendations not complied with.

There was no identification of occurrence of error or fraud to be reported to the Central Bank of Brazil under article 23 of CMN Resolution No. 3198/2004.

4.2 Internal Audit

Internal Audit performs its functions with independence, objectivity, quality and effectiveness. The Internal Audit performance and processes remain progressing, which may be evidenced by the quality of the work performed and other initiatives, such as the development of the Integrated System and the Audit Center.

The Internal Audit has adequately responded to the demands of the Audit Committee and to the needs and requirements of the Bank and Regulators, and its performance has been acknowledged by the Supervision of the Central Bank of Brazil.

With regard to qualification, it is important that there be investments to ensure the technical capacity of internal auditors, particularly in the areas of Information Technology (including cyber security issues), Risk Management (including model evaluation) and Capital Management.

4.3 External Audit

No significant events have been detected that could impair effectiveness of the performance, objectivity and independence of Ernst & Young Auditores Independentes S/S. In the Audit Committee’s evaluation, the work carried out by the External Audit was sufficient to ensure the quality and integrity of the Financial Statements, although a suggestion was made for review of the planning of the assessment of IT controls.

4.4 Financial Statements

The Financial Statements for the second half of 2020 were prepared in accordance with the legal standards and accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Central Bank of Brazil (Bacen), as well as the rules issued by the Brazilian Securities and Exchange

Audit Committee Report – 2nd Half of 2020

Banco do Nordeste do Brasil S.A.

Commission (“CVM”) and reflect, in all material respects, the Bank’s financial and patrimonial situation.

Fortaleza (Ceará State), February 24, 2021

AUDIT COMMITTEE

Audit Committee Report – 2nd Half of 2020

FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE - FNE Administrado pelo Banco do Nordeste do Brasil S.A.

Financial Statements

F N E

In R$ thousand

12.31.2020 FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE - FNE Administered by Banco do Nordeste do Brasil S.A. (Law No. 7827 of 09.27.1989) Individual Financial Statements BALANCE SHEETS Year ended December 31, 2020 and Year ended December 31, 2019 (Amounts in R$ thousand)

ASSETS LIABILITIES AND EQUITY

12.31.2020 12.31.2019 12.31.2020 12.31.2019 CURRENT ASSETS 32,787,731 36,749,337 CURRENT LIABILITIES 1,299 60 CASH AND CASH EQUIVALENTS (Note 4.c.1) 2,198,211 6,091,262 FUNDS COMMITTED WITH LOANS (Note 4.c.1) 12,095,415 16,599,936 EQUITY (Note 7.b) 96,267,876 89,289,553 AMOUNTS RECEIVABLE - CEF - EQUALIZATION OF BONUS FOR TIMELY PAYMENT - PROFROTA 38 46 TRANFERS FROM FEDERAL GOVERNMENT: LINKED CREDITS 82 859 In the year 7,788,374 8,157,554 ONLENDING DEBTORS 63,305 60,708 In prior years 91,121,728 82,964,174 LOANS (Notes 4.c.2 e 6) 18,423,600 13,985,163 INCOME FROM PRIOR YEARS (1,842,232) -941,402 Financing 9,913,363 6,458,745 INCOME FOR THE YEAR ENDED -799,994 -890,773 Export financing 217,711 181,794 Infrastructure and Development Financing 627,913 465,897 Agribusiness Financing 314,180 255,409 Rural Financing 7,750,923 7,109,342 (Allowance for loan losses) -400,490 -486,024 OTHER CREDITS (Note 4.c.4) 6,991 11,359 OTHER ASSETS (Note 4.c.5) 89 4 PROAGRO Securities 4 4 Agrarian Debt Bonds (TDAs) 92 - (Provision for Devaluation of Securities) -7 - NON-CURRENT ASSETS 63,481,444 52,540,276 LINKED CREDITS 30 1,195 ONLENDING DEBTORS 2,779,287 2,676,562 Onlending Debtors - Banco do Nordeste - article 9-A of Law No. 7827 (Note 5) 2,660,982 2,545,200 Onlending Debtors - Other Institutions 118,305 131,362 LOANS 60,701,981 49,862,247 Financing (Notes 4.c.2 e 6) 21,883,880 18,800,941 Export financing 65,759 1,197 Infrastructure and Development Financing 20,955,498 13,767,881 Agribusiness Financing 883,387 728,394 Rural Financing 16,913,457 16,563,834 OTHER ASSETS (Note 4.c.5) 146 272 Agrarian Debt Bonds (TDAs) 162 306 (Provision for Devaluation of Securities) -16 -34 TOTAL ASSETS 96,269,175 89,289,613 TOTAL LIABILITIES AND EQUITY 96,269,175 89,289,613 FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE - FNE Administered by Banco do Nordeste do Brasil S.A. Individual Financial Statements INCOME STATEMENTS Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 (Amounts in R$ thousand)

2nd half/2020 12.31.2020 12.31.2019 INCOME From loans (Note 6.f) 910,659 1,415,930 532,124 From remuneration of Cash and cash equivalents (Note 4.b.1) 163,613 545,992 1,381,079 From Reversal of Operating Provisions 7 8 48 EXPENSES From Management (Note 4.b) -767,112 -1,487,335 -1,422,679 From remuneration of Cash and Cash Equivalents (Note 4.b) -30,293 -70,339 -86,948 From Pronaf-compensation of Financial Agent/Performance Bonus (Note 4.b) -238,408 -450,463 -425,401 From Allowance for loan losses -292,047 -752,422 -868,798 From Audit -126 -128 -198 Allocation of Resources to SUDENE (Article 20, Law No. 7927, of 09.27.1989) -1,237 -1,237 LOSS -254,944 -799,994 -890,773

FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE - FNE Administered by Banco do Nordeste do Brasil S.A. Individual Financial Statements STATEMENTS OF CHANGES IN EQUITY Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 (Amounts in R$ thousand)

TRANFERS FROM RETAINED EARNINGS EVENTS TOTAL FEDERAL GOVERNMENT (ACCUMULATED LOSSES) BALANCES AT 12.31.2018 82,964,173 -917,821 82,046,352 Transfers from the Federal Government in the Year 8,157,554 - 8,157,554 Prior years’ adjustments - -23,580 -23,580 Loss for the Year - -890,773 -890,773 BALANCES AT 12.31.2019 91,121,727 (1,832,174) 89,289,553 CHANGES FOR THE YEAR 8,157,554 -914,353 7,243,201 BALANCES AT 12.31.2019 91,121,727 (1,832,174) 89,289,553 Transfers from the Federal Government in the Year 7,788,374 - 7,788,374 Prior years’ adjustments - -10,057 -10,057 Loss for the Year - -799,994 -799,994 BALANCES AT 12.31.2020 98,910,101 (2,642,225) 96,267,876 CHANGES FOR THE YEAR 7,788,374 -810,051 6,978,323 BALANCES AT 06.30.2020 95,182,671 (2,378,716) 92,803,955 Transfers from the Federal Government in the Six-Month Period 3,727,430 - 3,727,430 Prior years’ adjustments - -8,565 -8,565 Loss for the Six-Month Period - -254,944 -254,944 BALANCES AT 12.31.2020 98,910,101 (2,642,225) 96,267,876 CHANGES FOR THE SIX-MONTH PERIOD 3,727,430 -263,509 3,463,921 FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE - FNE Administered by Banco do Nordeste do Brasil S.A. Individual Financial Statements STATEMENTS OF CASH FLOWS Years ended December 31, 2020 and 2019 and six-month period ended December 31, 2020 (Amounts in R$ thousand)

2nd half/2020 12.31.2020 12.31.2019 CASH FLOWS FROM OPERATING ACTIVITIES Loss -254,944 -799,994 -890,773 Non-cash Expenses (Revenues): Allowance for loan losses 292,047 752,422 868,798 Provision for Devaluation of Securities 8 10 48 Reversal of allowances for loans -7 -8 -48 Accrued Liabilities Payable 1,299 1,240 -41 Adjusted Income (Loss) 38,403 -46,330 -22,016 Linked Credits -9 1,942 8,434 Onlending debtors -42,851 -105,322 -197,918 Loans (10,140,645) (16,030,597) (9,805,740) Amounts receivable – CEF – Equalization of bonus for timely payment Profrota 151 8 22 Other Credits -111 4,368 -1,696 Other Assets -13 42 209 Prior years’ adjustments -8,565 -10,057 -23,580 CASH USED IN OPERATING ACTIVITIES (10,153,640) (16,185,946) (10,042,285) CASH FLOWS FROM FINANCING ACTIVITIES Transfers from Federal Government 3,727,430 7,788,374 8,157,554 CASH PROVIDED BY FINANCING ACTIVITIES 3,727,430 7,788,374 8,157,554 Decrease in cash and cash equivalents (6,426,210) (8,397,572) (1,884,731) STATEMENT OF CHANGES IN CASH AND CASH EQUIVALENTS: At Beginning of Year 20,719,836 22,691,198 24,575,929 At End of Year 14,293,626 14,293,626 22,691,198 Decrease in cash and cash equivalents (6,426,210) (8,397,572) (1,884,731) NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS OF FUNDO CONSTITUCIONAL DE FINANCIAMENTO DO NORDESTE (FNE) Year ended December 31, 2020 and 2019 and Six-month period ended December 31, 2020

(Amounts expressed in thousands of reais, unless otherwise stated)

Notes to financial statements - Contents Note 6 - Financing transactions, onlending and Note 1 - History allowance for loan losses

Note 2 - Basis of preparation and presentation of Note 7 - Equity individual financial statements

Note 8 - Registration with the Federal Government Note 3 - Management Integrated Financial Management System (Siafi)

Note 4 - Significant accounting practices Note 9 - Supervisory agencies

Note 5 – Onlending to Banco do Nordeste and Note 10 - Approval of financial statements Other Institutions

NOTE 1 - History Fundo Constitucional de Financiamento do Nordeste - FNE was established by the Federal Constitution of 1988 (Article 159, item I, letter “c”), and is regulated by Law No. 7827 of 9.27.1989 and subsequent amendments, the most recent of which is Law No. 13682 of 06.19.2018. The purpose of the FNE is to foster the economic and social development of the Northeast region, through Banco do Nordeste do Brasil S.A., by offering financing to production sectors, in conformity with regional development plans, giving priority to activities developed by small farmers, small companies and staple food producers, and to irrigation projects. Non-refundable aid is prohibited. In view of the provisions in article 15-J of Law No. 13530 of 12.07.2017, FNE may invest funds in the scope of the Student Funding Program established by article15-D of that Law, intended for funding non-tuition-free higher education students, with positive evaluation in the processes conducted by the Ministry of Education, according to its own regulation, and that will also addresses the income bracket covered by this type of Fies.

NOTE 2 - Basis of preparation and presentation of individual financial statements The Individual Financial Statements were prepared in accordance with the provisions of Brazilian Corporate Law, if applicable, and the regulation specifically for constitutional funds established by the Federal Government. .

NOTE 3 - Management Banco do Nordeste do Brasil S.A. is responsible for: applying funds and implementing the credit policy, defining operational standards, procedures and conditions, applying the ranges of financial charges to financing applications and granting credit, formalizing agreements for onlending to other institutions authorized to operate by the Central Bank of Brazil (Bacen), observing the guidelines established by the Ministry of Regional Development, reporting on the results achieved, performing other activities related to the use of funds and recovery of credits, including renegotiating and settling debts, pursuant to articles 15-B, 15-C and 15-D of Law No. 7827.

NOTE 4 - Significant accounting practices FNE has its own accounting records and uses the accounting system of Banco do Nordeste to record its transactions in specific subtitles, and the results of operations are determined separately. For determining the results of operations, FNE’s social year coincides with the calendar year.

Significant accounting practices are as follows:

a) Functional currency FNE’s functional and reporting currency is the Brazilian real.

b) Recognition of Income and Expenses

b.1) Income and expenses are recorded on an accrual basis. FNE’s revenues consist of financial charges on loans and the interest paid by Banco do Nordeste on FNE’s cash and cash equivalents.

Description 2nd half /2020 12 .31. 20 20 12 .31 .201 9 Revenue from Remuneration of Cash and Cash Equivalents 163,613 545,992 1,381,079

b.2) Article 1-A of Law No. 10177 of 01.12.2011, introduced by Law No. 13682 of 06.19.2018, defined financial charges for non-rural financing with FNE funds to be calculated monthly, on a pro rata day basis, considering the following components:

I - Monetary Restatement Factor (FAM), derived from the variation of the Extended Consumer Price Index (IPCA), calculated by the Brazilian Institute of Geography and Statistics (IBGE) or from another index superseding it; II - the fixed portion of the Long-Term Rate (TLP), determined and disclosed pursuant to article 3 and sole paragraph of article 4 of Law No. 13483 of 09.21.2017; III - the Regional Development Coefficient (CDR), defined by the ratio between the per capita household income of the region under FNE and the Country’s per capita household income, limited to the maximum of 1% (one integer); and IV - The Program Factor (FP), calculated according to the type of operation or purpose of the project.

Resolution No. 4673 of 06.26.2018, issued by the National Monetary Council (CMN), defined the methodology for calculating the interest rates applicable to rural financing with funds from the Constitutional Financing Funds, except for operations under the National Family Farming Strengthening Program (Pronaf), denominated Constitutional Funds Rural Interest Rates (TRFC), made up by the components described below. The borrower of the rural credit operation may opt for the floating or fixed interest rate at the moment of contracting:

I) Monetary Restatement Factor (FAM) applicable to floating interest rate; II) Break-even inflation rate (BEIR) calculated pursuant to article 4 of CMN Resolution No. 4664 of 06.06.2018, applicable to fixed interest rate; III) Bonus for timely payment (“BA”) applicable to financial charges at 0.85% (eighty-five hundredths percent) or 1% (one integer). IV) Regional Development Coefficient (CDR); V) Program Factor (“FP”) defined by way of Resolution; VI) Adjustment Factor (“FA”) defined by way of Resolution; VII) Fixed interest rate (“JM”) calculated and disclosed in accordance with CMN Resolution No. 4600 of 09.25.2017.09.2017.

CMN Resolution No. 4674 of June 26, 2018, established the financial charges for rural financing with FNE funds, contracted in the period from July 1, 2018 to June 30, 2019, in accordance with the purpose of the loan and the size of the borrower, taking into consideration the Program Factors defined therein, the Monetary Restatement Factor and the Regional Development Coefficient applicable in the following terms: a) Effective fixed interest rate ranging from 5.41% p.a. to 6.14% p.a.; or b) Floating interest rate comprising a fixed portion ranging from -0.61% p.a. to 0.46% p.a., plus the Monetary Restatement Factor, calculated in accordance with article 3 of CMN Resolution No. 4673 of 06.26.2018.

The bonus for timely payment will be applied to the portion of the debt paid by the due date, in accordance with the methodology defined in article 2 of CMN Resolution No. 4673 of 06.26.2018. In the event of a deviation in the application of funds, the borrower will lose, without prejudice to any applicable legal measure, including those of enforceable nature, any and all benefit, especially those related to the bonus for timely payment. Under normal conditions, the financial charges at rates established by legislation are recorded in the Fund’s proper income statement accounts. Past-due and unpaid amounts are subject to contractually agreed default charges, and the portion of these charges that exceeds the rates established by legislation is recorded as the Fund’s unearned income. Recognition of the bonus expenses is carried out concurrently with the payment of charges by the borrower.

Pronaf-level financing is subject to financial charges established by the CMN, pursuant to the legislation and the Program regulation of the BACEN’s Rural Credit Manual. b.3) The Bank’s del credere commission is established as follows: I) 3% p.a. on financing taken out with FNE funds as from 12.01.1998, pursuant to Law No. 10177 of 01.12.2001; II) 6% p.a. for transactions resulting from onlending to Banco do Nordeste, in its name and at its own risk, to grant loans (article 9-A of Law No. 7827) III) 2.5% p.a. for transactions of the Programa Nacional de Financiamento da Ampliação e Modernização da Frota Pesqueira Nacional (Profrota Pesqueira) with large companies, with shared risk, in accordance with Decree No. 5818 of 06.26.2006, combined with CMN Resolution No. 3293 of 06.28.2005. IV) percentage negotiated with the financial institutions that operate onlending from FNE, observing the limit established by legislation (Administrative Ruling No. 147 of 04.05.2018), of the Ministry of Regional Development; V) the Bank is not entitled to any commission for financing under Pronaf A, A/Microcredit B, A/C, Semiarid, Forest, Emergency, Flooding, Drought, Semiarid-Drought-2012 and Drought-2012- Costing, according to the legislation and regulation of the Program; and VI) 3% p.a. in the cases defined in article 1, items I to IV, and 6% p.a. in the cases defined in article 1, sole paragraph, of Interministerial Administrative Ruling No. 245 of 10.14.2008, for loans reclassified under the terms of article 31 of Law No. 11775 of 09.17.2008.

b.4) FNE’s expenses refer to administration fee payable to the Bank as the Fund manager; yielding payable to the Bank on the Fund’s cash and cash equivalents; the additional administration fee; yielding payable to the Bank on financing under Pronaf A, A/Microcredit, B, A/C, Forest, Semiarid, Emergency, Flooding, Drought, Semiarid-Drought-2012 - Group B, Semiarid-Drought-2012 - Other Groups, Drought-2012-Costing - Group B, Drought-2012-Costing - Other Groups, and other Pronafs with shared risk; yielding payable to the Bank on disbursement under Pronaf A/Microcredit, B, Semiarid, Forest and other Pronafs with shared risk; performance Premium on reimbursement under PRONAF Groups A, A/Microcredit, B, A/C, Semiarid, Forest, Semiarid-Drought-2012 - Other Groups, Drought-2012-Costing - Other Groups and other PRONAFs with shared risk; allowance for loan losses recognized pursuant to Interministerial Administrative Ruling No. 11 of 12.28.2005, of the Ministry of Finance and Ministry of National Integration; and the engagement of independent audit services, in addition to bonuses and discounts established by legislation and allocation of funds provided for in paragraph 6, article 20 of Law No. 7827.

The administration fee paid to the Bank is appropriated on a monthly basis, according to the percentages below, as defined in article 17-A of Law No. 7827 (introduced by Law No. 13682 of 06.19.2018), applied to the Equity of FNE deducted from the balance of cash and cash equivalents referred to in article 4 of Law No. 9126 of 11.10.1995, of the amounts transferred to Banco do Nordeste based on article 9-A of Law No. 7827, of onlending balances to other institutions according to Administrative Ruling No. 147 of 04.05.2003 of the Ministry of National Integration, and of the balances of investments under Pronaf addressed by article 6 of Law No. 10177 of 01.12.2001, and the Program regulation (MCR-10) (groups A/Microcredit, Forest, Semi-arid region, Emergency, Flood, Drought/1998, Semi-arid Region-Drought 2012 and Drought-2012/Costing): I) 2.7% (two and seven tenths percent) per year in 2019; II) 2.4% (two and four tenths percent) per year in 2020; III) 2.1% (two and one tenths percent) per year in 2021; IV) 1.8% (two and eight tenths percent) per year in 2022; and V) 1.5% (one and five tenths percent) per year as from January 1, 2023.

Banco do Nordeste is entitled to the percentage of 0.35% (thirty-five hundredths percent) p.a. on the balances of cash and cash equivalents addressed by article 4 of Law No. 9126 of 11.10.1995.

The amount to be received by Banco do Nordeste as administration fee, after deducting the amount of the yielding on cash and cash equivalents, may be increased up to 20% (twenty percent) based on the timely-payment factor for loans with operational risk fully assumed by FNE or with risk shared between the Bank and FNE, calculated in accordance with the methodology for calculating the allowance for loan losses applicable to bank loan. The timely-payment factor will be regulated by a joint act of the State Ministries of Economy and of Regional Development, disclosed by the Ministry of Economy. The administration fee plus yielding to Banco do Nordeste on cash and cash equivalents is limited, every month, to 20% (twenty percent) of the accumulated amount, up to the reference month, of transfers addressed by letter c of item I of the main section of article 159 of Federal Constitutions. The calculation

and appropriation system of administration fee was regulated in Decree No. 9290 of 02.21.2018, as amended by Decree No. 9539 of 10.24.2018.

Banco do Nordeste’s yielding on Pronaf financing, yielding on disbursement and performance bonus on reimbursements comply with percentages and criteria defined by legislation and by the Program Regulation.

Breakdown of FNE Expenses 2nd half/2020 12.31.2020 12.31.2019 Administration fee 767,112 1,487,335 1,422,679 BNB’s Yielding on Cash and Cash Equivalents 30,293 70,339 86,948 Yielding on PRONAF Balance 151,797 297,098 288,343 Yielding on PRONAF Disbursements 50,221 84,834 73,952 Performance Bonus 36,390 68,531 63,106 Total 1,035 ,813 2,008 ,137 1,935 ,028 c) Current Assets and Non-Current

These are stated at cost or realizable value, including earnings and monetary variations earned.

c.1) Cash and cash equivalents consist of cash assets, which represent funds available for use in loans, and Funds Committed for Loans, which represent restricted cash in connection with yet- unreleased installments of contracted operations corresponding to the amounts outstanding by the balance sheet date, plus the payments expected during the 12 (twelve) subsequent months and any mismatches between the amounts to be released after such 12 (twelve) months and the estimated inflow of funds in to FNE during such period. FNE’s cash and cash equivalents held by Banco do Nordeste are remunerated based on extra-market rate, disclosed by Bacen. Specification 12.31.2020 12.31.2019 Cash and cash equivalents 2,198,211 6,091,262 Funds committed to loans (1) 12,095,415 16,599,936 Total Cash and Cash Equivalents 14 ,293 ,626 22 ,691 ,198

c.2) Total loans are stated at the amount of principal plus financial charges, less unearned income and allowance for loan losses (Note 6).

c.3) For set-up and write-off of Allowance for Loan Losses, the criteria set out in Interministerial Administrative Ruling No. 11, of 12.28.2005, are observed, as follows: i) set-up for the total installments of principal and charges overdue for more than 180 (one hundred and eighty) days, in the case of the transactions with full risk assumed by the Fund; ii) set-up at the percentage equivalent to the risk assumed by the Fund over the total installments of principal and charges overdue for more than 180 (one hundred and eighty) days, in the case of shared risk transactions; iii) principal and charges of risk assumed by the Fund, overdue for more than 360 (three hundred and sixty) days are written off as losses by the Fund; and iv) amounts recognized as losses are recorded in the Fund's clearing accounts, in the form established in the previous item, until all procedures for their collection are exhausted.

c.4) Law No. 13340 of 09.28.2016, with amendments introduced by Laws No. 13465 of 07.11.2017, No. 13606 of 01.09.2018 and No. 13729 of 11.08.2018, authorizes the settlement and rescheduling of rural credit debts taken out until 12.31.2011 with FNE funds and mixed funds from other sources with FNE, and of operations to support the Japanese and Brazilian Cooperation Program for the Development of the Cerrado Region (Prodecer) - Phase III, establishing, for cases of settlement, rebates on the restated balance due, according to the criteria defined therein, authorizing FNE to assume the burden arising from the measure. Renegotiations under the terms of Law No. 13340/16 only took place until December 2019, in accordance with the law. In 2020, there were no rebates under the aforementioned law.

The exemptions/rebates, according to Laws No. 12249, No. 12844 and No. 13340, are shown below:

Specification 2nd half/2020 12.31.2020 12.31.2019

Exemption/Rebate - FNE Operations honored by the 31 704 10,745 Bank Exemption/Rebate - Operations with Other Sources - BNB 195 587 559,922 Discounts granted in Renegotiations 8,075 15,456 213,077 Total 8,301 16,747 783,744

c.5) The account “Other Credits” includes FNE’s rights on chattels and properties received by Banco do Nordeste as amortization or settlement of debts. After assets are sold, the sale proceeds are apportioned between FNE and Banco do Nordeste, proportionally to the risk assumed, pursuant to article 7 of Interministerial Administrative Ruling No. 11 of 12.28.2005.

Specification 12.31.2020 12.31.2019 Rights on assets received in loans 6,991 11,359 Total Other Credits 6,991 11 ,359

c.6) The proceeds from Agrarian Debt Bonds (TDAs) for repayment of loans granted using FNE funds and those received to cover credits granted under Proagro are recorder under account “Other Assets” and are stated at their face value, plus expected yield on each note, including, when applicable, the effects of adjustments of assets to market or realizable value.

Specification 12.31.2020 12.31.2019 PROAGRO securities 4 4 Agrarian Debt Bonds (TDAs) 254 306 (Provision for devaluation of Securities) (23) (34) Total other assets 235 276 d) Tax Exemption FNE is entitled to tax exemption, and its results, income and financing operations are free of any tax, contribution or other lien, as provided for by Law No. 7827, as amended.

NOTE 5 – Onlending to Banco do Nordeste and Other Institutions a) The debit balance of onlending to Banco do Nordeste, based on article 9 - A of Law No. 7827, through Subordinated Debt Instrument, is broken down as follows:

Spec ification 12.31.2020 12.31.2019 Funds Available 1,855,825 1,629,533 Funds Applied 805,157 915,667 Total onlending to Banco do Nordeste (Note 6) 2,660 ,982 2,545 ,200

a.1) The line “Funds Available” records amounts temporarily not invested by the Banco do Nordeste in loans, and yield at extra-market interest rate disclosed by Bacen. This yielding is accounted for under Funds Available, matched against the specific account of income from Yielding from Funds Available-Onlending Law No. 7827 - article 9-A.

a.2) The line “Funds Applied” corresponds to the amounts released by Banco do Nordeste to the borrowers of the financing agreements, restated based on contractual indices, as set forth by legislation and the Subordinated Debt Instrument entered into. These charges are accounted for under Funds Applied, matched against interest income from Onlending to Banco do Nordeste-Law No. 7827 - article 9-A..

a.3) The table below shows the remuneration on available and applied funds:

Specifi cati on 2nd half/2020 12.31.2020 12.31.2019 Remuneration on Available Funds 19,050 48,210 82,543 Remuneration on Applied Funds 28,542 67,659 93,211 Total 47 ,592 115 ,869 175 ,754 b) The debit balance of onlending to Other Institutions, based on article 9 of Law No. 7827, is broken down as follows: Specification 12.31.2020 12.31.2019 Current assets 63,305 60,708 Noncurrent assets 118,305 131,362 Total (Nota 6) 181 ,610 192 ,070

NOTE 6 – Financing transactions, onlending and allowance for loan losses

a) Breakdown of Loan Portfolio

a.1) Total Portfolio 12.31.2020 12.31.2019 Financing Current Past due Balance Current Past due Balance Financing 31,182,395 614,848 31,797,243 24,461,918 797,768 25,259,686 Export financing 283,470 - 283,470 182,991 - 182,991 Infrastructure and development financing 21,583,411 - 21,583,411 14,233,778 - 14,233,778 Agribusiness financing 1,171,218 26,349 1,197,567 924,448 59,355 983,803 Rural financing 23,912,959 751,421 24,664,380 23,027,092 646,084 23,673,176 Subtotal 78 ,133 ,453 1,392 ,618 79 ,526 ,071 62 ,830 ,227 1,503 ,207 64 ,333 ,434 Onlending to BNB 2,660,982 - 2,660,982 2,545,200 - 2,545,200 Onlending to other institutions 143,169 38,441 181,610 153,629 38,441 192,070 Total portfolio 80 ,937 ,604 1,431 ,059 82 ,368 ,663 65 ,529 ,056 1,541 ,648 67 ,070 ,704 Allowance (49,692) (350,798) (400,490) (58,282) (427,742) (486,024) Total, net (1) 80 ,887 ,912 1,080 ,261 81 ,968 ,173 65 ,470 ,774 1,113 ,906 66 ,584 ,680 (1) The “Current” status took into consideration allowances arising from renegotiations/acquisitions and the allowance set up on loan transactions with indication of irregularities, which are subject to inquiry by the Internal Audit Area. The “Past due” status took into consideration allowances set up exclusively due to delay.

a.2) Full Risk Portfolio for BNB 12.31.2020 12.31.2019 Financing Current Past due Balance Current Past due Balance Agribusiness financing 2,467 - 2,467 1,934 - 1,934 Rural financing 94,307 6,129 100,436 81,348 5,430 86,778 Subtotal 96 ,774 6,129 102 ,903 83 ,282 5,430 88 ,712 Onlending to BNB 2,660,982 - 2,660,982 2,545,200 - 2,545,200 Onlending to other institutions 142,823 - 142,823 152,286 - 152,286 Total portfolio 2,900 ,579 6,129 2,906 ,708 2,780 ,768 5,430 2,786 ,198 Total net (1) 2,900 ,579 6,129 2,906 ,708 2,780 ,768 5,430 2,786 ,198 (1) The “Current” status took into consideration allowances arising from renegotiations/acquisitions and the allowance set up on loan transactions with indication of irregularities, which are subject to inquiry by the Internal Audit Area. The “Past due” status took into consideration allowances set up exclusively due to delay.

a.3) Shared Risk Portfolio 12.31.2020 12.31.2019 Financing Current Past due Balance Current Past due Balance Financing 31,077,162 606,120 31,683,282 24,355,185 789,750 25,144,935 Export financing 283,470 - 283,470 182,991 - 182,991 Infrastructure and development financing 21,583,411 - 21,583,411 14,233,778 - 14,233,778 Agribusiness financing 1,111,424 20,869 1,132,293 856,259 54,751 911,010 Rural financing 16,500,636 370,277 16,870,913 15,512,686 307,634 15,820,320 Subtotal 70 ,556 ,104 997 ,266 71 ,553 ,369 55 ,140 ,899 1,152 ,135 56 ,293 ,034 Total portfolio 70 ,556 ,104 997 ,266 71 ,553 ,369 55 ,140 ,899 1,152 ,135 56 ,293 ,034 Allowance (33,888) (239,321) (273,209) (38,409) (287,131) (325,540) Total, Net (1) 70 ,522 ,216 757 ,945 71 ,280 ,160 55 ,102 ,490 865 ,004 55 ,967 ,494 (1) The “Current” status took into consideration allowances arising from renegotiations/acquisitions and the allowance set up on loan transactions with indication of irregularities, which are subject to inquiry by the Internal Audit Area. The “Past due” status took into consideration allowances set up exclusively due to delay.

a.4) Full Risk Portfolio for FNE 12.31.2020 12.31.2019 Financing Current Past d ue Balance Current Past due Balance Financing 105,233 8,728 113,961 106,733 8,018 114,751 Agribusiness financing 57,327 5,480 62,807 66,255 4,604 70,859 Rural financing 7,318,016 375,015 7,693,031 7,433,058 333,020 7,766,078 Subtotal 7,480 ,576 389 ,223 7,869 ,799 7,606 ,046 345 ,642 7,951 ,688 Onlending to other institutions 346 38,441 38,787 1,343 38,441 39,784

Total portfolio 7,480 ,922 427 ,664 7,908 ,586 7,607 ,389 384 ,083 7,991 ,472 Allowance (15,804) (111,477) (127,281) (19,873) (140,611) (160,484) Total, Net (1) 7,465 ,118 316 ,187 7,781 ,305 7,587 ,516 243 ,472 7,830 ,988 (1) The “Current” status took into consideration allowances arising from renegotiations/acquisitions and the allowance set up on loan transactions with indication of irregularities, which are subject to inquiry by the Internal Audit Area. The “Past due” status took into consideration allowances set up exclusively due to delay. b) Breakdown by maturity b.1) Current Loans (1) From From 31 From 61 From 91 From 181 Type of Total at Total at 1 to 14 From 1 to to 60 to 90 to 180 to 360 Over 360 Customer/Activity 12.31.2020 12.31.2019 days 30 days days days days days days Rural 72,432 321,711 458,692 403,206 1,685,850 3,800,266 16,105,086 22,847,243 21,869,820 Manufacturing 10,277 312,709 237,519 233,254 725,927 1,537,054 18,894,405 21,951,145 14,607,824 Government - 2,518 3,216 3,216 9,647 19,503 874,034 912,134 703,167 Other services 3,675 208,296 206,426 182,835 553,157 1,197,239 16,667,399 19,019,027 15,002,021 Trade 4,545 409,206 381,481 372,139 1,105,700 2,220,162 5,848,414 10,341,647 6,699,965 Financial brokers - 3 3 3 10 20 147 186 188 Total 90,929 1,254,443 1,287,337 1,194,653 4,080,291 8,774,244 58,389,485 75,071,382 58,882,985 (1) Include loans overdue up to 14 days.

b.2) Falling due installments From 1 From 31 From 61 From 91 From 181 Total at Type of to 30 to 60 to 90 to 180 to 360 Over 360 Total at 12.31.2019 Customer/Activity days days days days days days 12.31.2020 Rural 22,557 32,135 23,832 145,501 253,177 1,351,995 1,829,197 1,887,538 Manufacturing 16,824 17,253 16,021 44,796 87,020 495,892 677,806 1,036,205

7,950 7,592 22,283 41,141 278,258 365,163 538,004 Other services 7,939 Trade 8,725 9,039 8,388 24,257 44,073 186,350 280,832 529,829 Tota l 56,045 66,377 55,833 236,837 425,411 2,312,495 3,152,998 3,991,576

b.3) Past due installments From 15 From 31 From 61 From 91 From 181 Type of to 30 to 60 to 90 to 180 to 360 Over 360 Total at Total at Customer/Activity days days days days days days 12.31.2020 12.31.2019 Rural 222,857 61,703 46,169 132,055 252,798 1,115 716,697 674,205 Manufacturing 9,156 21,625 21,679 69,151 158,434 66 280,112 336,243 Other services 6,097 10,497 10,430 33,177 75,294 23 135,519 174,009 Trade 6,125 10,970 10,980 37,008 104,273 7 169,363 274,415 Total 244,235 104,795 89,258 271,391 590,799 1,211 1,301,691 1,458,872 c) Pursuant to the legislation that regulates Constitutional Financing Funds, the Pronaf and article 8 of Law No. 13001 of 06.20.2014, the risk of transactions with FNE’s funds is as follows:

c.1) Transactions contracted until 11.30.1998:

• the risk is fully attributed to FNE; and • in onlending to other institutions authorized to operate by Bacen, the risk is fully assumed by FNE. Under a specific clause of the onlending agreements, the risk on financing granted to final borrowers is fully assumed by the operator institution;

c.2) Transactions contracted beginning 12.01.1998

• in financing under Programa da Terra , the risk lies with FNE; • in transactions under Pronaf, Groups A, A/Microcredit, B and A/C, and Forest, Semiarid, Emergency, Flooding, Drought, Semiarid-Drought-2012 and Drought-2012-Costing, the risk lies totally with FNE; • in onlending to Banco do Nordeste whose funds are used in BNB’s own lending operations, the risk is fully assumed by Banco do Nordeste;

• in onlending to other institutions authorized to operate by Bacen, contracted after Administrative Ruling No. 616 of 05.26.2003 (current Administrative Ruling No. 147 of 04.05.2018) becomes effective, the risk lies totally with Banco do Nordeste. Under referred to Administrative Ruling and under a specific clause of the onlending agreements, the risk on financing granted is fully assumed by the operator institution; in the transactions addressed by article 31 of Law No. 11775 of 09.17.2008, the risk lies totally with Banco do Nordeste, if the risk of the original transaction is fully attributed to Banco do Nordeste, or shared, when the rescheduled transaction involves this type of risk; and • in other transactions, the risk is 50% for FNE and 50% for Banco do Nordeste, pursuant to CMN Resolution No. 2682 of 12.21.1999.

d) Changes in the allowance for loan losses in the year are as follows: Speci fication 12.31.2020 12.31.2019 Allowance for loan losses at the beg inning of the period 486 ,024 506 ,638 . Full FNE Risk 160,483 163,976 . Shared risk 325,541 342,662 (+) Net allowance recognized for the period 752 ,424 868 ,798 Allowance for loan losses – expenses 752 ,424 868 ,798 . Full FNE Risk 296,961 296,781 . Allowance for past due payment/Renegotiations 296,964 296,929 . Allowance Adjustments due to discounts (3) (148) . Shared risk 455,463 572,017 . Allowance for past due payment/Renegotiations 459,800 574,762 . Adjustments of provision for operations indicating irregularities (4,337) (2,745) (-) Loans written off as loss for the period (837 ,958) (889 ,412) . Full FNE Risk (330,163) (300,273) . Shared risk (507,795) (589,139) (=) Allowance for loan losses at the end of the period 400 ,490 486 ,024 . Full FNE Risk 127,281 160,484 . Shared risk 273,209 325,540

e) At 12.31.2020, the amount of R$ 33,538 (R$ 37,875 at 12.31.2019) is recorded as Allowance for Loan Losses, related to an extraordinary allowance to cover the FNE’s risk on loan transactions granted with indication of irregularities, which are subject to inquiry by the Banco do Nordeste’s Internal Audit Area. In such case, transaction balances were considered, according to the risk attributed to FNE, by supplementing those that already recorded provision for past due payments under Interministerial Administrative Ruling No. 11 of 12.28.2005 f) “Income from loans” is recorded in the Income Statement at the net amount as follows:

2nd Specification 12.31.2020 12.31.2019 half /2020 Income from loans (1) 2,487,096 4,481,649 4,049,557 Del credere commission of Banco do Nordeste (1,039,505) (1,949,580) (1,607,175) Del credere commission of Other Institutions (1,670) (3,195) (2,853) Expenses on negative monetary restatement (28,348) (89,332) (10,582) Expenses on renegotiation discounts granted (1) (8,075) (15,456) (213,077) Expenses on Rebates/bonuses for timely payment - contracted by (496,821) (995,822) (1,096,024) Banco do Nordeste Expenses on Rebates/bonuses for timely payment - Onlending Law (1,096) (6,824) (15,525) No. 7827 - article 9-A Expenses on Rebates/bonuses for timely payment - Onlending to other (695) (1,249) (1,478) institutions Main Rebate Expenses Ops. w / Rec. FAT-BNDES - Law No. 10,193, of February 14, 2001 (1) (1) - (1) Expenses on loans - Other sources - Law No. 11322 - (274) (51) Expenses with Other BNB Operations - Rebate Laws No. 12,249, 12,844, of 6/11/2010 and 7/19/2013 (1) (195) (587) (559,922)

Expenses with FNE loans honored by Banco do Nordeste- Rebate (31) (704) (10,745) Laws No. 12249 and No. 12844 of 06.11.2010 and 07.19.2013 Adjustment of amounts arising from disposal of assets - (2,695) (1) Total 910 ,659 1,415 ,930 532 ,124

(1) Includes effects of renegotiations of loans, based on Law No. 13340 of 09.28.2016, as amended by Laws No. 13465 of 07.11.2017, No. 13606 of 01.09.2018, and No. 13729 of 11.08.2018 (Note 4.b.3)

The amount of bonus for timely payment granted by FNE in the year ended reached R$ 505,283, equivalent to 25.3% of income from loans. In the same period of 2019, this expense reached R$ 527,210, equivalent to 25.9% of referred to income. The ratio of bonus for timely payment/income from loan transactions is not correlated with the percentage of bonus for timely payment (15%) defined in current legislation, therefore various bonus ranges are applied in FNE transactions, such as 25% on Semiarid and 15% for other than Semiarid, applied in older transactions, in addition to other rates defined in specific legal instruments. The bonuses for timely payment were granted under Constitutional Financing Funds legislation, basically as a result of the payment by the borrowers of principal and interest charges on the contractually agreed dates, covering the FNE loan transactions, the operations resulting from onlending to the institutions based on Administrative Ruling No. 147 of 04.05.2018, and Banco do Nordeste’s onlending operations based on article 9-A of Law No. 7827, as follows:

Specification 2nd half/2 020 12.31.2020 12.31.2019 Timely payment bonus - FNE loans 496,821 995,808 1,096,021 Timely payment bonus - Onlending to other 695 1,249 1,478 Institutions Timely payment bonus - BNB’s Onlending 1,096 6,824 15,525 Operations - article 9-A of Law No. 7827 Timely payment bonus – renegotiations loans - 14 3 Total 498 ,612 1,003 ,895 1,113 ,027

g) Recognition of Losses and Return of the Bank’s Share of Risk

g.1) Regardless of the provisions set forth in sole paragraph of article 3, Interministerial Administrative Ruling No. 11, based on which losses can be recorded in FNE’s accounting books at the amounts of principal and interest charges past due for more than 360 days, according to the risk percentage assumed by the FNE. Banco do Nordeste recognizes losses on these transactions, considering the amounts of principal and interest charges past due for more than 329 days. g.2) Funds related to Banco do Nordeste’s share of risk are returned to FNE on the second business day after losses are recognized by FNE, according to the criterion set forth in item II, letter “a”, article 5 of Interministerial Administrative Ruling No. 11 of 12.28.2005, in compliance with the provision in letter g.1 above. g.3) Over the year ended, Banco do Nordeste returned to FNE the amount of R$ 513,972 (R$ 596,399 in the same period 2019), related to BNB’s share of risk in transactions that were written off as loss, as follows: Specification 12.31.2020 12.31.2019 Interministerial Administrative Ruling No. 11 of 12.28.2005 - shared risk 507,811 589,145 Interministerial Administrative Ruling No. 11 of 12.28.2005 - Bank full risk 6,161 7,254 Total 513 ,972 596 ,399 h) Measures adopted to mitigate the economic impacts from the Covid-19 pandemic

CMN Resolution No. 4798, dated 04.06.2020, suspended for up to 12 (twelve) months the amounts overdue and falling due until December 31, 2020, with a possible increase at the end of the operation, for non-rural operations, non-defaulting or those in delay up to 90 days, of responsibility of FNE’s beneficiaries impacted due to the state of public calamity recognized in an act of the Executive Branch, on account of the Covid-19 pandemic.

CMN Resolution No. 4801, dated 04.09.2020, authorized the extension until August 15, 2020 of the overdue loan amounts from 01 to 08.14.2020 of costing and investment rural credit operations entered into by rural producers, including family farmers and their cooperatives, whose sale of production has been harmed as a result of the social distancing measures adopted to mitigate the impacts caused by the COVID-19 pandemic.

The amount of loans whose installments were suspended based on these Resolutions is shown below:

Amount Type of Settlement Number renegotiated CMN Resolution No. 4782/20 – Covid 19 10,409 3,685,431 Automatic Renegotiation CMN Res. No. 4782 and No. 4798/2020 86,803 42,382,793 CMN Resolution No. 4801/2020 6,751 347,519 CMN Resolution No. 4798/2020 4,845 1,174,710 Automatic Renegotiation CMN Res. No. 4801/2020 90,011 100,011 Law No. 13998/20 P-FIES - Covid-19 1 15 CMN Res. No. 4840/2020 – Automatic Renegotiation Pronaf B 145,019 139,712 CMN Res. No. 4801-4840/2020 – Automatic Renegotiation 7,501 10,051 Covid 19 Renegotiation - Additional 444 128,323 Covid-19 Par-Renegotiation - Additional 2 233 Covid-19 Digital Renegotiation - Additional 1,558 146,425 Total 353 ,344 48 ,115 ,223

NOTE 7 – Equity

a) The Equity of FNE are originated as follows:

a.1) transfers from the Federal Government at the proportion of 1.8% of the collection of Income Tax (IR) and Federal VAT (IPI) on a 10-day period basis; a.2) returns and yields from its applications; and a.3) yields from FNE’s temporarily not applied cash, paid by Banco do Nordeste

b) In the year, the net negative adjustment of R$10,057 (R$23,580 in 2019) refers to recalculations of charges on loan transactions.

Specification 12.31.2020 12.31.2019 Transfer From Federal Government in the year 7,788,374 8,157,554 Transfer From Federal Government in prior years 91,121,727 82,964,173 P&L from Prior Years (1,842,231) (941,401) P&L for the Year (799,994) (890,773) Total Equity 96 ,267 ,876 89 ,289 ,553

NOTE 8 - Registration with the Federal Government Integrated Financial Management System (Siafi)

In compliance with Interministerial Administrative Ruling No. 11 of 12.28.2005, the accounting information related to FNE is available on SIAFI, considering the FNE’s specific characteristics.

NOTE 9 - Supervisory agencies

Banco do Nordeste keeps at the disposal of the supervisory agencies the Fund’s statements of changes in financial position and income as of the end of the month. Pursuant to the legislation, the FNE’s audited Statement of financial position are published every six months and submitted to the National Congress for inspection and control.

NOTE 10 - Approval of individual financial statements

The Individual Financial Statements were approved by Banco do Nordeste’s Board of Directors at a meeting held on February 24, 2021.

Fortaleza (CE), February 24, 2021

The Executive Board

Note: These notes are an integral part of the Individual Financial Statements.

São Paulo Corporate Towers Av. Presidente Juscelino Kubitschek, 1.909 Vila Nova Conceição 04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000 ey.com.br

Independent auditor’s report on special-purpose financial statements

To the Management Fundo Constitucional de Financiamento do Nordeste - FNE (Administered by Banco do Nordeste do Brasil S.A.)

Opinion

We have audited the accompanying financial statements of Fundo Constitucional de Financiamento do Nordeste (“Fund”), which comprise the balance sheet as at December 31, 2020, and the related statements of income, of changes in equity and of cash flows for year then ended, and a summary of significant accounting practices and other explanatory information. These financial statements were prepared in accordance with the accounting practices described in Notes 2 and 4 and are considered for special purposes as they do not meet all requirements contained in the accounting practices adopted in Brazil.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fundo Constitucional de Financiamento do Nordeste - FNE as at December 31, 2019, its financial performance and its cash flows for the year then ended, in accordance with accounting practices described in Notes 2 and 4.

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 financial statements” section of our report. We are independent of the Fund and comply with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the professional standards issued by Brazil’s National Association of State Boards of Accountancy (“CFC”) and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of matter - Basis of preparation of the special-purpose financial statements

We draw attention to Notes 2 and 4 to the financial statements, which describe their basis of preparation. These financial statements were prepared by the Fund’s Administrator to comply with the requirements of the regulation established by the Federal Government specifically for constitutional funds. Consequently, these financial statements may not be appropriate for other purposes. Our opinion is not qualified in respect of this matter.

São Paulo Corporate Towers Av. Presidente Juscelino Kubitschek, 1.909 Vila Nova Conceição 04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000 ey.com.br

Responsibilities of the Fund’s Administrator for the financial statements

The Fund’s Administrator is responsible for the preparation and fair presentation of the accompanying financial statements in accordance with accounting practices described in Notes 2 and 4, and for such internal control as the Administrator determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the administrator is responsible for assessing the Fund’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 the administrator either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

The Fund’s Administrator is charged with governance and also responsible for overseeing the Fund’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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, either individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercised professional judgment and maintained professional skepticism throughout the audit. We also: As part of an audit in accordance with the Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained 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 one resulting from error, as fraud may involve override of internal controls, collusion, forgery, intentional omissions or misrepresentations.

• Obtained 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 Fund’s internal control.

São Paulo Corporate Towers Av. Presidente Juscelino Kubitschek, 1.909 Vila Nova Conceição 04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000 ey.com.br

• Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Fund’s Administrator.

• Concluded on the appropriateness of use, by the Fund’s Administrator, 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 Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditors’ report to the related disclosures in the 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 Fund to cease to continue as a going concern.

• Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the corresponding transactions and events in a manner that achieves fair presentation.

We communicate 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 may have been identified during our audit.

São Paulo, February 24, 2021.

ERNST & YOUNG Auditores Independentes S.S. CRC-2SP034519/O-6

Renata Zanotta Calçada Accountant CRC-1RS062793/O-8

BOARD OF DIRECTOR : Cláudio de Oliveira Torres (President) – Charles Laganá Putz - Eudes de Gouveia Varela – Liduina Aragão Matos Donato – Rheberny Oliveira Santos Pamponet – Romildo Carneiro Rolim – Saumíneo da Silva Nascimento EXECUTIVE BOARD : Romildo Carneiro Rolim (President) – Anderson Aorivan da Cunha Possa (Director of Business) – Bruno Ricardo Pena de Sousa (Director of Planning) – Cornélio Farias Pimentel (Director of Control and Risk) – Hailton José Fortes (Director Financial and Credit) – Haroldo Maia Junior (Director of Management) SUPERVISORY BOARD : Frederico Schettini Batista (President) – André de Castro Silva – Carlos Henrique Soares Nuto – Fabiano de Figueiredo Araújo – José Mário Valle AUDIT’S COMMITTEE: Eudes de Gouveia Varela (Coordinator) – Debora Santille – João Décio Ames – Rudinei dos Santos (Members) CONTROLLER: Aíla Maria Ribeiro de Almeida Medeiros (Accountant CRC-CE 016318/O-7) ACCOUNTANT: José Graciano Dias – CRC-CE 007949/O-7