2022 Report and Financial Statements

2022 REPORT AND FINANCIAL STATEMENTS - BANCO REGIONAL LETTER FROM THE PRESIDENT ECONOMIC AND FINANCIAL PERFORMANCE 47 c.20 Important information regarding the financial year c.20.1 Previus Merger Commitment with Sudameris Bank S.A.E.C.A. On November 14, 2022 was subcribed the Previus Marger Commiment by Absortion with Sudameris Bank S.A.E.C.A. as absorbing entity and Banco Regional S.A.E.C.A. as absorbed entity. The agreement was recorded by the respectively directories of both Banks and documented in Directory Act N° 021/2022 dated November 14, 2022 for Banco Regional S.A.E.C.A. and Directory Act N° 1138 dated November 11, 2022 for Sudameris Bank S.A.E.C.A. c.20.2 Adjustments to allowances charged to retained earnings for the years 2019-2020 and incomes for the year 2021. Banco Regional SAECA was inspected by the Superintendency of Banks (SIB) of the Central Bank of Paraguay according to Resolution SB. SG. N° 020/2019 dated March 18, 2019. In the framework of this inspection, in the second quarterly of financial year 2021, the Superintendence of Banks reported the result of the inspection on certain debtors and ordered to the Bank to adjust retained earning. The total adjustment amounted to the sum of Gs. 176.532.211.557 of which Gs. 164.761.029.710 were charged to retained earnings for the years 2019-2020 and Gs. 11.771.181.847 were charged to results for the financial year 2021. These adjustments were formally reported by management to the SIB inspectors by means of notes, attaching the supporting documentation of the calculation and the accounting entries made. Finally, by means of Resolution No. 22, Minute No. 4 of January 20, 2022, the Bank acknowledged the conclusions reached by the Board of Directors of the Central Bank of Paraguay, thus concluding the inspection by the Superintendency of Banks. D. EQUITY d.1. Effective equity The effective equity constitutes the basis for the determination of operational limits and restrictions established by the Superintendence of Banks of the Central Bank of Paraguay for financial entities operating in Paraguay. The effective shareholders' equity of the Bank as of December 31, 2022 and 2021 respectively, amounts to Gs. 1.368.566.622.862 and Gs. 1.532.177.682.472 respectively. Law No. 5787 dated December 19, 2016, establishes the composition of the principal (Level 1) and supplementary (Level 2) capital of financial institutions for the purpose of calculating their solvency. This Law also establishes the minimum proportion that must always exist between the principal capital and the amount of risk-weighted assets and contingencies, in national or foreign currency, including their branches in the country and abroad, which may not be less than 8%. In the case of the minimum ratio between the principal (Tier 1) and supplementary (Tier 2) capital combined and the total amount of risk-weighted assets and contingencies of a financial institution, in domestic or foreign currency, including its branches in the country and abroad, shall not be less than 12% or exceed 14%. As of December 31, 2022, and 2021, the Entity has the following relationship: Tier 1 Principal capital - Tier 2 - Principal capital plus complementary capital December 31, 2022 11,53% 13,67% December 31, 2021 12,76% 13,67%

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