Banestes' investor relations website contains forward-looking statements that are subject to risks and uncertainties, as they were based on management assumptions and information currently available. Forward-looking statements include statements related to the intentions, beliefs or current expectations of the Company or its management regarding a series of issues, including: 

. general economic, political and business conditions in Brazil and the state of Espírito Santo in particular;

. variations in exchange and/or interest rates

. Banestes' level of capitalization;

. cost and availability of funds;

. Banestes' capital expenditure plans;

. changes in tax legislation;

. current and future regulations, especially banking legislation, including minimum capital requirements, reserve requirements, etc.;

. implementation of Banestes' operational, financial and growth strategies;

. tendencies that affect Banestes' financial situation or operating results;

. Brazil's banking sector;

. supply and demand for Banestes' products;

. an increase in Banestes clients' default levels and other payment defaults;

. an increase in provisions for losses arising from Banestes' loans;

. a reduction in Banestes' deposits, number of clients and/or revenue;

. competition in banking and financial services;

. adverse rulings in court cases and/or administrative procedures involving Banestes;

. management expectations and estimates concerning future financial performance, financial plans and programs, and the effect of competition;

. changes in Banestes' regional and national activities;

. credit risks and other risks related to loans;

. other factors and tendencies that may jeopardize the company's financial situation and those risk factors presented under "Risk Factors"; and

. other statements on this website related to non-historical events.

Investors should be aware that the above-mentioned factors, as well as other factors discussed on this website, may affect the company's future results and lead to results that are materially different from those contained in the forward-looking statements on the site and in the documents contained therein. 

Forward-looking statements also include information on the company's possible or estimated future operating results. This information is presented in several sections of this website, as well as in statements that include the words "believe", "may", "continue", "expect", "forecast", "intend", "plan", "estimate", "anticipate", or similar expressions. 

Forward-looking statements do not constitute a guarantee of performance. They involve risks, uncertainties and assumptions since they refer to future events and therefore depend on circumstances that may or may not occur. Banestes' future financial situation, operating results, strategies, market share and market cap may differ substantially from the figures expressed or implied in said forward-looking statements. Many of the factors determining these results and values are beyond the company's capacity to control or predict. 

Investors are advised not to place undue trust in forward-looking statements.

Risk Factors

Before making an investment decision, potential investors should carefully consider all the information available on this website, especially the risks mentioned below. Banestes' businesses, financial situation and operating results may be adversely and materially affected by any of these risks and therefore have a negative impact on the company's securities. The risks described below are those that Banestes believes can materially affect the company. Additional risks unknown to Banestes or currently regarded as negligible may also affect its businesses.

1) Risks Related to Macroeconomic Factors

. The federal government has exercised, and continues to exercise, significant influence over the Brazilian economy. This influence, as well as Brazil's economic and political conditions, may adversely affect Banestes' business, financial situation and operating results, as well as the price of its shares.

. Inflation and certain measures taken by the federal government to contain it, including increases in official interest rates, may substantially increase economic uncertainties in Brazil and have a considerable adverse effect on Banestes' operating results and the price of its shares.

. Exchange rate fluctuations may materially jeopardize Banestes and the price of its shares;

. Restrictions on international remittances may adversely affect Banestes' foreign shareholders;

. Events and risk perception in other countries, especially emerging countries, may have a negative impact on Brazil's economy, Banestes‘ business and the price of its shares;

. Brazil's economic situation may limit the ability of Banestes clients to comply with their loan obligations;

. Accusations of political corruption may generate political and economic instability.

2) Risks Related to Brazil's Banking Industry

. Banestes' business is highly dependent on the regulatory environment;

. Changes in reserve requirements and compulsory deposits may negatively affect Banestes' profitability;

. Changes in basic interest rates made by the Central Bank may adversely affect Banestes' operating results and profitability;

. The application of a limit on bank lending interest rates as a result of the application of Consumer Protection Code rules on banks or by rate listing practiced by government entities may have an unfavorable effect on Banestes' interest income and its capacity to grant loans.

. The growing competition in Brazil‘s banking services may have a negative impact on business prospects;

. Changes in the minimum limits for rural and housing loans may negatively affect operations;

. The public's perception of credit to individuals as being predatory or abusive may have a significant adverse effect on business dealings.

3) Risks Related to the Company's Shares

. An active and liquid market for Banestes' preferred shares may not develop, limiting investors' ability to sell their shares at the price and time desired;

. The relative volatility and illiquidity of the Brazilian securities market may substantially limit investors' ability to sell their preferred shares at the price and time desired

. Banestes may need additional funds in the future, which may dilute the percentage of investor's shareholdings in its capital stock.

. Banestes' preferred shareholders may not receive dividends;

. Banestes' preferred shares do not have voting rights;

. The legality of Banestes' adhesion and the adhesion of the selling shareholder to arbitration as a means of resolving any controversies may be challenged;