Resolution No. JPRF-G-2023-060 Approves the Budget of BANECUADOR B.P. for the 2023 Fiscal Year

Resolution No. JPRF-G-2023-060 THE FINANCIAL POLICY AND REGULATION BOARD CONSIDERING: That, Article 226 of the Constitution of the Republic of Ecuador provides: "State institutions, their agencies, dependencies, public servants, and persons acting by virtue of a state authority shall exercise only the competencies and powers attributed to them in the Constitution and the law. They shall have the duty to coordinate actions for the fulfillment of their purposes and to make effective the enjoyment and exercise of the rights recognized in the Constitution."; That, Article 309 of the Fundamental Norm stipulates that entities regulating the national financial system shall be responsible for "preserving their security, stability, transparency, and solidity."; That, Article 310 of the Magna Carta mandates: "The public financial sector shall have as its purpose the sustainable, efficient, accessible, and equitable provision of financial services. The credit it grants shall be oriented preferentially to increase the productivity and competitiveness of productive sectors that allow achieving the objectives of the Development Plan and of the less favored groups, in order to promote their active inclusion in the economy"; That, Article 13 of the Organic Monetary and Financial Code, Book I, created the Financial Policy and Regulation Board as part of the Executive Function, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health services policy and regulation; That, Article 14.1 letter a. number 14 ibid., states that it is a faculty of the Financial Policy and Regulation Board: "To annually approve the budget of the entities of the public financial sector, their reforms, as well as to regulate their execution; (...)"; That, with Resolution No. JPRF-G-2022-019 of January 27, 2022, the Financial Policy and Regulation Board approved the budget for the 2022 fiscal year of BANECUADOR B.P.; That, on September 29, 2022, the Financial Policy and Regulation Board issued Resolution No. JPRF-F-2022-037, which reformed the applicable regulation for the stage of the budgetary cycle involving the approval of the budget draft of the entities of the public financial sector; That, through Letter No. BANECUADOR-BANECUADOR-2022-0473-OF of December 28, 2022, addressed to the Financial Policy and Regulation Board, the General Manager of BANECUADOR B.P., Mgs. William Fernando Chiang Espinoza, submits "in digital file, the Budget Draft of BanEcuador B.P. for the year 2023, for the knowledge and approval of the Financial Policy and Regulation Board."; That, BANECUADOR B.P., through Letters Nos. BANECUADOR-D-2022-0078-OF of December 30, 2022, BANECUADOR-BANECUADOR-2023-0010-OF of January 12, 2023, and BANECUADOR-BANECUADOR-2023-0018-OF of January 18, 2023 as an addendum to the aforementioned Letter No. BANECUADOR-BANECUADOR-2022-0473-OF, sent some clarifications, specifications, and documentation supporting the information provided for the approval of the Budget Draft for the 2023 fiscal year; That, the Technical Secretariat of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2023-0005-M of January 20, 2023, submits to the President of the Board the following reports: i. Technical Report No. JPRF-CTIFSP-2023-0002 of January 20, 2023, considering the favorable pronouncement of the members of the Board of Directors of BANECUADOR B.P. in the Board Session of December 28, 2022, with Resolution No. D-2022-158, and the review of the figures presented through Letter No. BANECUADOR-BANECUADOR-2022-0473-OF, the addendums and their annexes sent by BANECUADOR B.P. to the Financial Policy and Regulation Board,

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it is recommended to submit for the knowledge and resolution the approval of the budget draft for the 2023 fiscal year. ii. The Legal Report No. JPRF-CJF-2023-002 of January 20, 2023 concludes that it corresponds to the Financial Policy and Regulation Board to approve the budget of the Bank of the Ecuadorian Social Security Institute for the 2023 fiscal year, which was sent by its General Manager through Letter No. BANECUADOR-BANECUADOR-2022-0473-OF, the addendums and their annexes sent, in accordance with Article 14.1. numeral 14 literal a. of the Organic Monetary and Financial Code, Book I.; That, the Financial Policy and Regulation Board, in an ordinary session convened by technological means on January 21, 2023 and held via video conference on January 24, 2023, reviewed the memorandum No. JPRF-ST-2023-0005-M of January 20, 2023, issued by the Technical Secretariat of the Board; as well as the Legal Report No. JPRF-CJF-2023-002 of January 20, 2023 and the Technical Report No. JPRF-CTIFSP-2023-0002 of January 20, 2023, issued respectively by the Coordination of Financial Policy and Norms and the Technical Coordination of Financial Inclusion and Prepaid Health Policy of the aforementioned Board and the corresponding draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session convened by technological means on January 21, 2023 and held via video conference on January 24, 2023, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES: SINGLE ARTICLE.- Approve the budget of BANECUADOR B.P. for the 2023 fiscal year, which covers from January 1 to December 31, 2023, under the terms indicated by the General Manager in Letter No. BANECUADOR-BANECUADOR-2022-0473-OF of December 28, 2022, which are derived from the Annex that forms part of this Resolution. GENERAL PROVISIONS FIRST.- The administration of BANECUADOR B.P. must consider the budget for the 2023 fiscal year as a management instrument that must be translated into the efficient use of resources, prioritizing those investments and expenses that allow it to have efficient processes and procedures in order to strictly comply with what is established in Article 310 of the Constitution of the Republic of Ecuador, Article 3 of Executive Decree No. 677 signed on May 13, 2015, the Social Statute, and the Organic Statute of Organizational Management by Processes. The budget execution must consider aspects that guarantee the efficient use of resources, taking into account the merger process to be carried out between BANECUADOR B.P. and the NATIONAL FINANCIAL CORPORATION B.P. SECOND.- The legal representative of BANECUADOR B.P. will be in charge of the execution of the budget; in turn, the Board of Directors of BANECUADOR B.P. will exercise control over the budget execution, under the terms of the "Budget Management Standards for Entities of the Public Financial Sector" contained in the Codification of Monetary, Financial, Securities and Insurance Resolutions; this, for the full compliance with regulatory requirements, among others, highlights the need to monitor placement and portfolio recovery targets, the delinquency indicator, the intermediation margin, and the exercise result projected by the entity for 2023.

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THIRD.- In the event that there have been any budgetary movements or impacts directly related to the operations of BANECUADOR B.P. in the days prior to the issuance of this Resolution, these movements must be regularized immediately. Such movements and regularizations cannot affect the total amount of the Institutional Budget for the year 2023 approved by the Financial Policy and Regulation Board with this Resolution. FOURTH.- It is ordered that BANECUADOR B.P. submit the approved budget for the 2023 fiscal year to the Ministry of Economy and Finance and to the National Assembly within a term of 30 days, counted from the issuance of this Resolution, in compliance with what is established in Articles 112 of the Organic Code of Public Planning and Public Finances and 94 of its General Regulation. FIFTH.- The Board of Directors and the General Manager of BANECUADOR B.P., within the scope of their competencies, must coordinate with the executing entities of the projects that facilitate the subsidy of the 1% and 5% credit products; such coordination will include the formalization of the respective agreements, under the terms of Letter No. MEF-SP-2022-1222 of December 15, 2022 from the Undersecretary of Budget of the Ministry of Economy and Finance, addressed to the General Manager (E) of BANECUADOR B.P., for the transfer of the respective allocations for the year 2023, based on their planning, in observance of Article 178 of the Organic Code of Public Financial Planning. FINAL PROVISION.- This Resolution shall enter into force from the present date, without prejudice to its publication in the Official Register, and shall be published on the institutional website of the Financial Policy and Regulation Board within a maximum term of two days from its issuance. NOTIFY.- Given in the Metropolitan District of Quito, on January 24, 2023. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned Resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on January 24, 2023.- I CERTIFY. TECHNICAL SECRETARIAT Dr. Nelly Arias Zavala

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ANNEX Institutional Budget of BANECUADOR B.P. for the 2023 fiscal year In millions of dollars Source: Letter No. BANECUADOR-BANECUADOR-2022-0473-OF of December 28, 2022. BUDGET EXECUTED BUDGET PROJECTED TO DRAFT Variation Codified VS Draft Variation Codified VS Draft EXECUTED APPROVED CODIFIED 2023 2023-2022 2023-2022 2021 2022 2022 I. ADMINISTRATIVE EXECUTION BUDGET ORDINARY BUDGET Income 179.5 186.1 186.1 114.3 146.30 182.36 -3.72 -2.0% Income on Loans and Investments 174.2 172.4 172.4 109.2 136.63 147.66 -24.73 -14.3% Earned Commissions and Financial Profits 1.1 0.8 0.8 0.5 0.70 0.73 -0.02 -3.0% Income from Services and Operational 4.2 12.9 12.9 4.6 8.98 33.97 21.03 162.4% Expenses 115.7 138.2 138.2 74.2 112.48 138.97 0.77 0.6% Interest and Commissions 39.1 40.0 40.0 26.6 35.72 34.23 -5.79 -14.5% Personnel Expenses 49.1 51.9 51.9 32.2 48.39 49.84 -2.02 -3.9% Operating Expenses 23.1 32.3 32.3 12.5 21.78 33.94 1.69 5.2% Internal Transfers and 3.4 4.3 4.3 2.6 3.90 4.26 0.00 0.0% Capital Investments 1.0 9.8 9.8 0.3 2.68 16.69 6.89 70.3% Surplus(+)/Deficit(-) 63.8 47.9 47.9 40.0 33.83 43.40 -4.49 -9.4% EXTRAORDINARY BUDGET Income 2.0 3.9 3.9 0.8 1.08 3.05 -0.88 -22.4% Sale of Assets 0.0 3.9 3.9 0.0 0.00 3.05 -0.88 -22.4% Other Income 2.0 0.0 0.0 0.8 1.08 0.00 0.00 0.0% Expenses 3.5 5.3 5.3 2.3 3.24 5.22 -0.06 -1.1% Personnel Reduction 0.3 1.5 1.5 0.0 0.00 1.54 0.00 0.0% Extraordinary Expenses 3.2 3.7 3.7 2.3 3.24 3.68 -0.06 -1.5% Surplus(+)/Deficit(-) -1.5 -1.4 -1.4 -1.5 -2.16 -2.17 -0.82 60.7% Surplus(+)/Deficit(-) 62.3 46.5 46.5 38.6 31.67 41.22 -5.31 -11.4% II. POLICY BUDGET (Net Loan) 0.00 Income 743.2 915.2 915.2 573.2 717.2 766.4 -148.8 -16.3% Portfolio Recovery 642.1 631.8 631.8 427.8 513.4 582.6 -49.2 -7.8% Effective 575.4 521.7 521.7 418.9 502.7 519.7 -2.0 -0.4% Renewed 65.6 109.4 109.4 7.9 9.4 62.0 -47.4 -43.4% Written-off 1.1 0.7 0.7 1.0 1.3 0.9 0.3 37.6% Deposit Collection 84.3 96.0 96.0 0.0 0.0 94.5 -1.5 -1.5% Financial Disinvestments 0.0% Available Funds 0.0 177.5 177.5 145.4 197.1 89.3 -88.2 -49.7% Financing Lines 0.0 10.0 10.0 -10.0 -100.0% Renewal Collection 0.0% Other Sources and Others 16.8 0.0 6.7 0.0% Expenses 805.6 961.7 961.7 611.7 748.9 807.6 -154.1 -16.0% Credit Concession 540.7 709.4 709.4 348.1 473.2 668.0 -41.4 -5.8% Financial Investments 46.8 155.4 155.4 147.2 160.6 45.5 -109.9 -70.7% Available Funds 165.0 0.0% Deposit Withdrawal 0.0 28.3 18.1 0.0% Payment of Credit to Financial Institutions 0.0% Stock Market Financing 0.0% Payment of Collection Resources 53.1 97.0 97.0 48.9 97.0 94.1 -2.9 -2.9% Other Uses and Others 0.0 39.4 0.0% Surplus(+)/Deficit(-) of -62.3 -46.5 -46.5 -38.6 -31.7 -41.2 5.3 -11.4% III. GLOBAL SURPLUS(+)/DEFICIT(-) (I+II) 0.0 0.00 0.00 - IV. FINANCING OF III : 0.0 0.00 0.00 - Variation of Availability and Other Mov. 0.00 Total Income and Expenses 924.7 1,105.2 1,105.2 688.2 864.6 951.8 -153.4 -13.9% Total Expenses + Surplus - 924.7 1,105.2 1,105.2 688.2 864.6 951.8 -153.4 -13.9% September 30. 2022 December 31. 2022