INTEGRATED ANNUAL SHAREHOLDERS’ LETTER 2020 Integrated annual shareholders’ letter as of December 31, 2020 1 INTEGRATED ANNUAL SHAREHOLDERS’ LETTER 2020 Contents 1. CHAIRMAN’S LETTER. .............................................................................................................................. 4 2. ABOUT THIS LETTER TO SHAREHOLDERS .................................................................................................. 5 3. ECONOMIC AND FINANCIAL SYSTEM CONTEXT ..................................................................................... 6 3.1. Economic overview at a worldwide level .............................................................................................. 6 3.2. Economic overview of the Republic of Argentina ................................................................................. 7 4. INTRODUCTION TO THE BANK ............................................................................................................... 8 4.1. Introduction to the bank ........................................................................................................................ 8 4.2. Capital Structure .................................................................................................................................. 8 4.3. Subsidiaries ......................................................................................................................................... 8 4.4. Banco Patagonia in figures .................................................................................................................. 8 4.5. Framework for the Bank’s performance ............................................................................................ 9 4.6. Strategic Alliances................................................................................................................................ 9 4.7. History ............................................................................................................................................... 10 4.8. BANCO DO BRASIL ........................................................................................................................ 10 5. SUBSIDIARIES .......................................................................................................................................... 11 6. FINANCIAL AND INCOME/LOSS ANALYSIS OF THE ENTITY ............................................................ 14 7. POLICY AND PROJECT FOR THE DISTRIBUTION OF EARNINGS ................................................... 19 7.1. Procedure for the payment of dividends according to the applicable regulations ........................ 19 7.2. Project for the distribution of earnings ............................................................................................ 20 8. STRATEGY FOR CORPORATE SOCIAL RESPONSIBILITY ............................................................... 21 8.1. Identification and relationship with the stakeholders ...................................................................... 22 8.2. Model for the creation of value ........................................................................................................ 22 9. CORPORATE GOVERNANCE …..….. ...................................................................................................... 23 9.1. Corporate Government best practices ............................................................................................... 24 9.2. Board of Directors of the bank ........................................................................................................... 24 9.3. Characteristics of the Board of directors ............................................................................................. 24 9.4. Supervisory Committee .................................................................................................................... 27 9.5. Bank’s Committees ............................................................................................................................ 28 9.6. Board of Directors’ compensation and Management compensation policy ........................................ 31 9.7. Organizational Structure .................................................................................................................... 32 10. INTERNAL CONTROL AND RISK MANAGEMENT ........................................................................... 32 10.1. Risk Management ......................................................................................................................... 32 10.2. Internal Controls ............................................................................................................................ 38 10.3. Control Activities............................................................................................................................ 39 10.4. Monitoring ..................................................................................................................................... 40 10.5. Internal Codes ............................................................................................................................... 43 10.6. Prevention of money laundering and terrorist financing ................................................................ 44 11. BANK MANAGEMENT ... ...................................................................................................................... 45 11.1. Projected commercial policy and relevant aspects of business, financial and investment planning…………… ........................................................................................................................ 45 11.2. Digital Business............................................................................................................................... 45 12. CUSTOMERS ........................................................................................................................................ 47 12.1. Customers profile .......................................................................................................................... 48 12.2. The network ................................................................................................................................. 51 12.3. Business with companies .............................................................................................................. 53 12.4. Finance and goverment sector ........................................................................................................ 54 12.5. Receivables and Foreign Trade .………………. .......................................................................... 55 12.6. Relationship with clients ................................................................................................................ 57 12.7. Customer Experience .................................................................................................................... 59 2 INTEGRATED ANNUAL SHAREHOLDERS’ LETTER 2020 12.8. Accessibility ................................................................................................................................... 60 12.9. Physical security ........................................................................................................................... 61 12.10. Secure management of data ....................................................................................................... 62 12.11. Technology communications and Systems ................................................................................... 62 13. EMPLOYEES .................................................................................................................................. 63 13.1. Employee Profile .................................................................................................................... 64 13.2. Jobs and job opportunities ............................................................................................................. 65 13.3. Ongoing training ............................................................................................................................ 66 13.4. Performance management .......................................................................................................... 68 13.5. Climate management : Containment and caring for people .......................................................... 69 13.6. Internal communication ............... ................................................................................................ 70 13.7. Benefits with focus on wellness and health ................................................................................... 71 14. SOCIETY ............................................................................................................................................... 72 14.1. Strategy for private social investment ............................................................................................ 73 14.2. Diagnosis and scope of social impact ............................................................................................. 74 14.3. Education ...................................................................................................................................... 75 14.4. Support to entrepreneurship .......................................................................................................... 77 14.5. Volunteering work .........................................................................................................................