Agi improves capital efficiency with new method for allocation to operational risks approved by Brazilian Central Bank

São Paulo, July 19, 2022 – We announce to the general market that we have received an authorization by the Central Bank (BACEN) to change the calculation methodology of capital allocation for our operational risks exposure (RWAopad), as of July 2022. We estimate an increase around 300bps in the current Capital Adequacy Ratio.

This is a result from strategical decisions that we realized over the recent years: focus on the relationship and bonding with our target demographic, higher exposure to safer products and clusters of clients, progress of Agi’s business model with a higher value offer to customers, more efficient management of operational risks with decreasing relative losses decreasing and greater share of payroll credit portfolios.

The new method is more adherent to the current profile of our assets and more efficient in capital allocation, releasing Tier 1 Capital for Agi’s indicators. This new scenario enhances the business’ sustainability, maximizing our competitiveness and improving the capacity to create value and wellbeing for our customers and society.