Latest Financial Statement - 03/2017 - KRAUS - SCC LTDA - PRUDENCIAL

The Capital Ratio is the ratio between Regulatory Capital and Risk Weighted Assets. Higher capital ratios indicate a safer bank, whereas low ratios may suggest vulnerability to financial distress.

The Fixed Asset Ratio is the relationship between Fixed Assets and Reference Equity. Lower Fixed Asset Ratios indicate greater flexibility in meeting obligations, while high ratios can negatively impact liquidity needs.

Shareholder´s Equity in banking represents the residual value of assets minus liabilities, often termed the bank´s "net worth" or "book value". It includes capital invested by owners, retained earnings, and reserves, acting as a crucial safety cushion against losses and a key indicator of financial stability for investors and regulators.

Net income is the profit remaining after all costs, expenses, taxes, and interest are deducted from a company´s total revenue, often referred to as the "bottom line". It measures a company´s overall profitability, representing the earnings attributable to shareholders. Specifically for reporting to the Central Bank, financial institutions submit data from the first quarter of the year, the first half of the year, the third quarter, and the second half of the year, and the 3-month, 6-month, and 12-month data are calculated from these.

Net income is the profit remaining after all costs, expenses, taxes, and interest are deducted from a company´s total revenue, often referred to as the "bottom line". It measures a company´s overall profitability, representing the earnings attributable to shareholders. Specifically for reporting to the Central Bank, financial institutions submit data from the first quarter of the year, the first half of the year, the third quarter, and the second half of the year, and the 3-month, 6-month, and 12-month data are calculated from these.

Net income is the profit remaining after all costs, expenses, taxes, and interest are deducted from a company´s total revenue, often referred to as the "bottom line". It measures a company´s overall profitability, representing the earnings attributable to shareholders. Specifically for reporting to the Central Bank, financial institutions submit data from the first quarter of the year, the first half of the year, the third quarter, and the second half of the year, and the 3-month, 6-month, and 12-month data are calculated from these.

A bank´s credit portfolio represents the total collection of loans, advances, and credit lines granted to clients, managed for risk and returns.

Funding in banking refers to how financial institutions raise money—primarily through customer deposits, wholesale market borrowing, or equity—to finance loans and operations.

In a banking context, liabilities represent all obligations and debts that the bank has with third parties, that is, resources from clients or investors that must be paid or returned on specific dates. These are the resources that finance banking activities but do not belong to the bank, such as demand deposits, savings, time deposits, and loans received.

Regulatory capital amount formed by the sum of the Tier I Capital and Tier II Capital portions.

In a bank´s balance sheet, securities are financial assets acquired by the institution (generally in Current Assets or Long-Term Receivables) with the objective of generating cash flow, diversifying risks, or complying with regulatory requirements. They represent credit or ownership rights, such as stocks, debentures, government bonds, and fund units.

Total assets in a bank´s financial glossary represent the sum of all financial and physical resources owned or controlled by the bank, including cash, loans, and securities. It is a primary measure of bank size, calculated by adding current and non-current assets on the balance sheet, typically equaling total liabilities plus stockholders´ equity.