Earnings Release Report 1Q11
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Earnings Release Report 1Q11

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São Paulo, May 11, 2011 – Banco Indusval S.A., financial institution focused on corporate lending, operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and Futures ...

São Paulo, May 11, 2011 – Banco Indusval S.A., financial institution focused on corporate lending, operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and IDVL4, announces its financial results for the first quarter of 2011 (1Q11).

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Earnings Release Report 1Q11 Earnings Release Report 1Q11 Document Transcript

  • 1Q11 Results New Partners, Capital Increase, Strenghthened Management and Operating Agreement with SertradingSão Paulo, May 11, 2011 – Banco Indusval S.A., financial institution focused on corporate lending,operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and FuturesExchange - BM&FBOVESPA under tickers IDVL3 and IDVL4, announces its financial results for thefirst quarter of 2011 (1Q11). Highlights of the Period IDVL4: R$ 8.98 per share Closing: 05/11/2011 Capital increase of R$ 201 million, subscribed by Total shares: 41.212.984 Warburg Pincus, as well as the controlling Market Cap: R$ 370.1 MM shareholders of Sertrading and of Indusval. + 21.892.709 Subscription receipts = R$ 566.7 MM Market Cap Acquisition of minority interest in Sertrading, with the signing of an operating agreement for the acquisition of its foreign trade receivables. Conference Calls/ Webcasts: 05/12/2011 JP Morgan also participates in the deal through a US$ 25 million loan for operational expansion, with In English the right to acquire subscription warrants to 11h00 (Brasília) / 10h00 (US EST) preferred shares up to 2.5% of the Bank’s capital. Connection USA:+1 786 924-6977 Connection Brazil:+55 11 4688-6361 Code: Banco Indusval The Bank’s management is strengthened with the election of new members to the Board of Directors and Executive Board who will bring corporate and In Portuguese financial expertise, as well as international 10h00 (Brasília) / 9h00 (US EST) experience. Phone: +55 11 4688-6361 Code: Banco Indusval New Vision and Strategy: Innovation and excellence in corporate lending, as well as leadership in the fixed-income capital market. Website: www.indusval.com.br/ir 1/22
  • SummaryNessage from the Management............................................................... 3 The Transaction................................................................................................ 3 Strengthned Management…………......................................................................... 5 First Quarter Results…………................................................................................ 6Key Indicators…………............................................................................. 7Operating Performance…........................................................................ 8Credit Portfolio…….................................................................................. 10Funding................................................................................................. 14Liquidity............................................................................................... 15Capital Adequacy................................................................................. . 15Risk Ratings.......................................................................................... 16Capital Market………............................................................................... 16New Statutory Bodies Elected……………………............................................... 19BALANCE SHEET…………........................................................................... 20INCOME STATEMENT.……………………........................................................... 22 2/22
  • Message from the ManagementThe first quarter of 2011 marks a new chapter in Indusval’s history. During 43 years of the Indusvalbrand’s existence, we witnessed decisive moments in the evolution of our businesses: frombrokerage to bank in 1991; the merger with Multistock in 2003; the sale of the Direct ConsumerCredit operation in 2004; inauguration of the first branch offices outside São Paulo in 2006; the IPOin 2007; the strategic rethink in 2010; and in 2011, the signing of the Agreements object of aMaterial Fact disclosed on March 22, 2011, and adopted the new brand BANCO INDUSVAL &PARTNERS to reflect this new phase.More than merely increasing the capital structure to support the growth of our operations, the newagreements represent a significant leap towards the adoption of a new vision to make us aninnovative bank that excels in corporate lending through a profound knowledge of our clients’operations and the sectors in which they operate, and become a leader in the growing corporatebonds market in Brazil in the medium and long terms.This vision was developed in partnership with our new partners and managers who are adding theirentrepreneurship skills, expertise in the management of companies and financial institutions, theirforeign trade background and knowhow of the agribusiness dynamics and processes. In addition,this operation will add Sertrading’s important and diversified client base that is complementary toIndusval’s client portfolio, as well as its global relations and international experience.The objective is clear: to return our historical growth levels through the generation of high qualityassets in the middle and upper middle markets, while reducing our credit risk through an in-depthknowledge of our clients’ operations, besides expanding the offering of financial products, reinforcingour generation of recurring revenue from services.This transformation is already underway. The professionals working in the new product areas arealready structuring their teams, and concluded their short-, medium- and long-term strategic plan.Our financial statements should soon show the initial signs. However, our value proposition shouldmaterialize with greater consistency in the medium and long terms.The Transaction: • Expansion of the Capital Base: To strengthen and expand Banco Indusval’s capital base with the aim of growing its assets with a stronger structure, the capital was increased by R$ 201 million through the admission of new partners and a private subscription to new shares, as follows: - R$ 150 million – Warburg Pincus - R$ 30 million – Controlling shareholders of Sertrading - R$ 21 million – Controlling shareholders of Banco Indusval This partial capital increase was approved by the Company’s Board of Directors on May 6, 2011 and is subject to approval of the Central Bank of Brazil. • Important Strategic Partner: Warburg Pincus is one of the world’s largest private equity funds. They have invested approximately US$37 billion in over 600 companies across 30 countries in its 40 years of history. One of its specialties is investing in finance companies and it has already invested approximately US$ 8 billion in 66 financial services institutions worldwide. It is currently a shareholder in more than 12 banking institutions in the United States, Asia and Europe. After subscribing and paying its stake in the Bank’s capital through WP X Fundo de Investimento em Participações, Warburg Pincus signed a Shareholders’ Agreement that includes the right to appoint a member to the Board of Directors. The fund appointed its CEO 3/22
  • in Brazil, Mr. Alain Belda, former Chairman and CEO of Alcoa (USA) and current member of the Board of Directors of Citibank (USA). This is the first significant investment by a large international private equity fund in a Brazilian credit bank, which opens up new long-term funding avenues for Brazil’s financial sector.• Capital Injection in Sertrading S.A. and Operating Agreement: On April 1, 2011, Banco Indusval invested R$ 25 million by subscribing to the common shares as part of a capital increase at Sertrading, one of the biggest logistics and foreign trade services companies in Brazil. Founded in 2001, Sertradings main shareholders are Alfredo De Goeye Junior, Jair Ribeiro da Silva Neto and Mineração Santa Elina Indústria e Comércio S.A. With this investment, the bank will hold a 17.7% minority interest in Sertrading. The table presents Sertrading’s key financial data: Growth R$ Million 2010 2009 (%) Foreign Trade Volume transacted R$ 1,600.0 R$ 1,100.0 45% Net Income R$ 502.5 R$ 345.8 45% Operating Profit R$ 30.4 R$ 15.1 101% Net Profit R$ 12. 8 R$ 6.3 103% EBITDA R$ 30.9 R$ 16.2 91% On April 1, 2011, the Bank also executed: - a Shareholders’ Agreement with the controlling shareholders of Sertrading regulating (a) the Bank’s option to acquire the remaining capital of the company in the next 2 years; (b) the appointment of two (2) members to the Board of Directors; and (c) veto rights on specific matters, including mergers and acquisitions and significant indebtedness; and - an Operating Agreement, valid for 5 years, with preemptive rights for the acquisition of receivables generated by its foreign trade activities. Note that during its 10 years of operations, Sertrading has never registered any default on its receivables, thanks to the quality of its clients and its close monitoring of their operations. The Bank plans to obtain several synergies from the Sertrading deal, especially (i) to expand its operations in the foreign trade platform to gain access to bigger clients, thus broadening its quality-asset generation base; (ii) to increase the visibility of its clients’ operational chain, mitigating the risks of these operations and expanding the offering of corresponding financial products; and (iii) cross-selling of the bank’s financial products to Sertrading’s client base.• Acquisition of agricultural bond issuer: On April 15, 2011, the Bank acquired 100% of the capital of Serglobal Comércio de Cereais Ltda, an issuer of agricultural bonds, as well as the portfolio and team that invests in Sertrading’s Rural Product Certificates, for R$ 15 million. The transaction signifies the transfer of Sertrading’s expertise in the past 8 years to the bank. The objective is to expand the bank’s operations to certain segments in the agricultural sector in which the team absorbed from Sertrading has significant expertise.• Agreement with J.P. Morgan: Through the agreements signed on March 22, 2011: − J.P. Morgan will grant to the Bank a US$ 25 million loan, with a 2-year term and half- yearly interest payments; and − J.P. Morgan has committed to subscribe in the future to Banco Indusval’s preferred stock warrants representing 2.5% of its capital. J.P. Morgan will neither join the controlling block of shareholders nor participate in the management of Banco Indusval. 4/22
  • Strengthened Management:After duly approved by the Central Bank, Manoel Felix Cintra Neto will take office as Chairman ofthe Board of Directors, while Luiz Masagão Ribeiro and Jair Ribeiro da Silva Neto take office asJoint CEOs.Jair Ribeiro da Silva Neto was one of the founders and served as the chairman of BancoPatrimônio (1988-1999), chairman of Banco Chase Manhattan S.A. and executive officer at JPMorgan Chase (NY) (2000-2003). More recently, he was a shareholder, the CEO and chairman ofCPM Braxis S.A. (2005-2010), one of Brazil’s largest IT services companies, whose control was soldin October 2010 to an industry giant: the European Cap Gemini.Jair Ribeiro will lead the commercial, funding, treasury, products and corporate finance areas,while the co-CEO Luiz Masagão will focus on the credit, risk, compliance, IT, legal andadministrative areas. By dividing the areas between two executive officers and seasonedshareholders, we seek to achieve excellence in all of the bank operations related to corporate loansand financial services.The following executives also joined the bank in April 2011: − Francisco Cote Gil (Commercial Vice-President) was partner and executive officer at BBA and Itaú BBA (1990 – 2009) and executive officer at Banco Crefisul de Investimento (Citibank), where he worked for 18 years. − Gilberto Faiwichow (Treasury Vice-President) worked as treasurer at ING (Brazil) (1989 – 1992), partner at Black River Asset Management (Cargill Group) (2005 – 2008) and co- founder and treasurer of Banco Rendimento (1992 – 2000). − André Mesquita (Products & Corporate Finance Vice-President) served as COO of Cotia Trading (Argentina) (1996 – 2000), was co-founder of Sertrading (2001- 2011) and former CFO of CPM Braxis (2005 – 2011).Katia Moroni, currently executive officer at the bank, she will serve as Vice-President of TradeFinance, Syndications, Funding and Investor Relations.Gilmar Melo de Azevedo, current executive officer of the bank, will serve as Vice-President forSpecial Credits, reporting to Mr. Manoel Cintra, and will be responsible to manage the creditrenegotiation and recovery for lower quality loans.Eliezer L. Ribeiro da Silva, current executive officer, takes the responsibility for the CreditDepartment for midsized companies.With the aim of constantly improving our governance, Alain Belda (Warburg Pincus), Alfredo deGoeye Junior (CEO of Sertrading), Guilherme Afonso Ferreira (Bahema) and Walter Iorio(former KPMG) will serve as Independent Members of our Board of Directors, after duly approved bythe Central Bank of Brazil.First Quarter ResultsThe 1Q11 results do not yet reflect the effects of this partnership, except for the expenses alreadyprovisioned, resulting from the negotiation and restructuring process.For the bank, the first quarter was a period of intense planning and negotiation of the operationsdescribed above. Loan operations remained stable in relation to 4Q10, while increasing 14.4% from1Q10.The most important aspect in terms of results was the R$ 67 million increase in allowance for loanlosses and the increase in loans overdue more than 60 days, which generated expenses with 5/22
  • allowance for loan losses of R$ 101.6 million, raising the balance for loan loss allowances to R$212.6million, signifying 183% cover of the loans overdue more than 60 days.The increased allowance, announced in the Material Fact notice dated March 22, 2011, aims tosafeguard the profitability of the bank’s future operations, segregating any credit problems resultingfrom loans granted during the economic crisis. This decision provides greater comfort to the newshareholders and management members so that they may focus their attention and efforts ondevising the new business strategy. Thus, it was a conservative and one-off measure adopted topave the way for periods of lower fluctuations in profitability and growth.Also worth pointing out is the high liquidity of our balance sheet: cash of R$ 1.0 billion, equivalent to58% of total deposits, reflecting the management’s conservative approach and the capital increasecarried out in late March, which brought Indusval one of the highest capital adequacy (Basel) ratiosin the market: 24%. This high liquidity is unique in the market and places the bank in a privilegedposition for the new pace of growth defined by the new shareholders and strategy. 6/22
  • Key IndicatorsThe financial and operating information presented in this report are based on consolidated financials prepared in millions ofReais (local currency), according to Brazilian GAAP (BRGAAP). Results 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Financial Intermediation Income 118.1 115.9 114.4 1.9% 3.3% Financial Interm. Expenses bef. ALL (77.8) (67.9) (67.7) 14.7% 14.9% Result from Financial Int. before ALL 40.3 48.0 46.7 -16.2% -13.7% 1 ALL Expenses (101.6) (13.5) (11.5) 652.3% 787.6% Result from Financial Intermediation (61.4) 34.5 35.2 -277.7% -274.2% Recurring Operating Result (87.5) 6.4 11.2 -1459.2% -880.6% Non-Recurring Operating Expenses (2.7) (0.3) (0.4) 788.6% 540.6% Operating Result (90.3) 6.1 10.8 -1571.5% -936.5% Net Profit (Loss) (54.5) 5.9 7.3 -1024.2% -841.5% Assets & Liabilities 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Loan Portfolio 1,890.2 1,876.9 1,655.6 0.7% 14.2% Loan Portfolio + Guarantees and L/Cs 1,966.6 1,941.2 1,719.0 1.3% 14.4% Cash & Short Term Investments 567.1 51.7 377.3 996.3% 50.3% Securities and Derivatives 1,825.9 1,261.3 979.4 44.8% 86.4% Total Assets 4,346.8 3,276.1 3,048.6 32.7% 42.6% Total Deposits 1,759.0 1,577.6 1,363.6 11.5% 29.0% Open Market 1,312.8 538.6 605.7 143.7% 116.8% Foreign Borrowings 350.7 325.3 408.4 7.8% -14.1% Domestic On-lending 137.0 127.7 108.7 7.3% 26.0% Shareholders’ Equity 563.7 426.4 430.7 32.2% 30.9% Performance 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Free Cash 1,027.0 732.8 707.1 40.1% 45.2% NPL 60 days/ Loan portfolio 6.1% 3.8% 3.5% 2.3 p.p. 2.6 p.p. NPL 90 days/ Loan portfolio 4.6% 3.3% 2.8% 1.4 p.p. 1.8 p.p. 2 Basel Index 23.7% 17.6% 21.1% 6.1 p.p. 2.6 p.p. ROAE -37.3% 5.6% 7.0% -42.9 p.p. -44.2 p.p. Net Interest Margin (NIM) 4.6% 6.5% 7.0% -1.9 p.p. -2.5 p.p. Adjusted Net Interest Margin (NIMa) 5.9% 7.9% 8.5% -2.0 p.p. -2.7 p.p. 3 Efficiency Ratio 80.9% 65.7% 61.0% 15.2 p.p. 19.9 p.p. Efficiency Ratio (excl. non-recurring Expenses) 72.3% 64.3% 60.2% 8.0 p.p. 12.1 p.p. Other Information 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Number of Corporate Clients 707 709 680 -0.3% 4.0% Number of Employees 357 362 350 -1.4% 2.0% Details in the respective sessions of this report 1 1Q11 additional Loan loss Allowances incl. 2 1T11 partial capitalization under reserves 3 non-recurring expenses includedBanco Indusval & Partners (BI&P) is a commercial bank with 43 years of experience in the financial markets, focusingon local and foreign currency corporate loan products. The Bank relies on a network of 11 branches strategicallylocated in economically relevant Brazilian regions, including an offshore branch, and its brokerage firm operating atthe São Paulo Stock, Commodities and Futures Exchange - BM&FBOVESPA. The Bank is a publicly-held financialinstitution listed at Level 1 Corporate Governance of the BM&FBOVESPA since July 2007 and voluntarily adoptsadditional practices specific to companies listed in the Novo Mercado special trading segment. 7/22
  • Operating PerformanceProfitabilty Financial Intermediation 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Financial Intermediation Revenues 118.1 115.9 114.4 1.9% 3.3% Loan Operations 64.3 68.8 61.2 -6.5% 5.2% Loans & Discounts Receivables 60.3 61.3 52.1 -1.7% 15.8% Financing 3.6 4.5 6.5 -20.6% -44.8% Other 0.4 2.9 2.6 -85.7% -83.8% Securities 40.7 24.2 24.3 68.2% 67.7% Derivative Financial Instruments 5.4 14.2 1.6 -61.8% 231.9% FX Operations Result 7.7 8.7 27.3 -12.3% -72.0% Financial Intermediation Expenses 179.5 81.4 79.2 120.5% 126.7% Money Market Funding 72.0 60.1 38.8 19.8% 85.5% Time Deposits 46.4 41.7 29.5 11.1% 57.2% Repurchase Transactions 22.3 16.1 8.3 38.8% 168.3% Interbank Deposits 3.3 2.3 1.0 46.9% 238.0% Loans, Assign. & Onlending 5.9 7.8 28.9 -25.1% -79.7% Foreign Borrowings 3.6 5.8 26.3 -37.0% -86.2% Dom. Borrowings+Onlending 2.2 2.1 2.7 8.2% -16.0% Allowance for Loan Losses 101.6 13.5 11.5 652.3% 787.6% Financial Intermediation Result (61.4) 34.5 35.2 -277.7% -274.2%Result from Financial Intermediation, detailed in notes 15.a and 15.b to the quarterly financialstatements, reflects the stability in the income from financial intermediation in the quarter. Theincrease in funding expenses was mainly due to the higher funding volume and, consequently,higher cash balance in the period, which resulted in higher income from securities operations.The R$ 67 million increase in allowance for loan losses and the increase in loans overdue more than60 days resulted in provisioning expenses of R$ 101.6 million for loan losses, raising the allowanceof loan losses to R$ 212.6 million, with a 183% cover of the loans overdue more than 60 days. Theincreased allowance, announced in the Material Fact notice, aims to safeguard the profitability of thebank’s future operations, segregating any credit problems resulting from loans granted during theeconomic crisis. This decision provides greater comfort to the new shareholders and managementmembers so that they may focus their attention and efforts on devising the new business strategy.Net Interest Margin Net Interest Margin (*) 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 A. Result from Financial Int. before ALL 40.3 48.0 46.7 -16.2% -13.7% A1 Adjustment FX fluctuation *1 (1.5) (0.4) (0.0) 241.4% 70658.8% A.a Adj. Financial Interm Result before ALL 38.8 47.6 46.7 -18.5% -16.8% B. Average Interest bearing Assets 3,583.1 3,036.4 2,720.1 18.0% 31.7% Zero remuneration average assets adjustment (881.2) (561.5) (484.6) 56.9% 81.8% B.a Adj Average Interest bearing Assets 2,701.9 2,474.9 2,235.5 9.2% 20.9% Net Interest Margin (NIM) (A/B) 4.6% 6.5% 7.0% -0.3 p.p. -0.4 p.p. Adj.Net Interest Margin (NIMa) (Aa/Ba) 5.9% 7.9% 8.6% -2.0 p.p. -2.7 p.p. (*) annualized *1 FX changes from ADR deals deducted from other Operating Expenses 8/22
  • Net interest margin (NIM) stood at 4.6%, mainly due to the higher carry-forward of cash. Adjustednet interest margin (NIMa) stood at 5.9%, reflecting the foreign exchange effects on financialintermediation and exclusion from the remunerable asset base the average balances of assets with abalancing item of equal amount, interest rate and tenor in repo operations under liabilities.Efficiency Ratio Efficiency Ratio 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Personnel Expenses 14.7 15.4 12.4 -4.2% 18.7% Contributions and Profit-sharing 2.1 1.2 2.5 82.1% -14.9% Administrative Expenses 11.4 11.3 8.9 1.1% 27.8% Taxes 3.5 4.2 3.2 -16.2% 11.3% Other Operating Expenses 4.8 3.0 3.5 57.1% 36.0% A1- Recurring Operating Expenses 36.6 35.1 30.5 4.2% 19.9% A1 Adjustment FX fluctuation *1 (1.5) (0.4) (0.0) 241.4% n.m. A1- Adj. Recurring Operating Exp. 35.1 34.7 30.5 1.3% 15.1% Personnel Expenses*2 1.4 0.3 0.0 353.6% n.m. Administrative Expenses*3 0.0 0.0 0.4 n.m. n.m. Other Operating Expenses*4 1.3 0.0 0.0 n.m. n.m. A2- Total Adjusted Op. Expenses 2.7 0.3 0.4 788.6% 540.6% A- Operating Expenses Total 37.8 35.0 30.9 8.2% 22.3% Gross Income Fin. Interm. (w/o ALL) 40.3 48.0 46.7 -16.2% -13.7% Income from Services Rendered 3.5 4.0 2.8 -14.2% 22.4% Income from Banking Tariffs 0.2 0.3 0.2 -10.6% 21.5% Other Operating Income 4.6 1.5 1.0 200.5% 361.6% B- Operating Income Total 48.6 53.9 50.7 -9.9% -4.2% Recurring Efficiency Ratio (A1/B) 72.3% 64.3% 60.2% 8.0 p.p. 12.1 p.p. Efficiency Ratio (A/B) 77.9% 64.9% 61.0% 13.0 p.p. 16.9 p.p. *1 FX expenses from ADR deals accounted under Other operating expenses deducted *2 Taxes and indemnifications- dismissals *3 Consultancy expenses *4 Investment Agreement Expenses- Lawyers, Auditors, etc.The efficiency ratio in 1Q11 was impacted by non-recurring expenses of R$ 2.7 million (R$ 0.3million in 4Q10 and R$ 0.4 million in 1Q10) in other operating expenses. These expenses are relatedto amounts and charges provisioned and/or paid as severance pay to employees terminated (R$ 1.4million), additional labor contingency provisions (R$ 0.8 million) and expenses related to theInvestment Agreement (R$ 0.5 million paid to auditors, lawyers, etc.). The efficiency ratio adjustedfor non-recurring expenses came to 72.3% in the quarter, versus 64.3% in 4Q10 and 60.2% in1Q10. We understand that this ratio is still high and shall be normalized with the gradual assetgrowth and cash reduction.Net ProfitThe results of the quarter reflect the expenses pursuant to the Management’s decision in line withthe negotiations under the Investment Agreement, preparing the Bank for its new phase. The mainimpact results from expenses with allowance for loan losses, amounting to R$ 101.6 million,including the constitution of additional allowance of R$ 67 million, and non-recurring expenses of R$2.7 million related to severance pay, labor contingencies and costs related to the structuring of theinvestment agreement, as detailed above. 9/22
  • Credit PortfolioOn March 31, 2011, the Credit Portfolio, which includes guarantees, sureties and letters of credit,detailed in Note 6 to the Financial Statements, totaled around R$ 2.0 billion, up 14.4% from 1Q10. Credit Portfolio by Product 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Loan Operations 1,527.2 1,550.9 1,348.2 -1.5% 13.3% Loans & Discounted Receivables 1,348.0 1,353.5 1,158.9 -0.4% 16.3% BNDES/ Finame 124.6 112.6 85.0 10.6% 46.6% Direct Consumer Credit – used vehicles 4.8 6.2 12.7 -22.2% -61.8% Financing in Foreign Currency 32.0 51.9 32.4 -38.3% -1.1% Other Financing 10.2 14.2 22.8 -27.8% -55.1% Assignment with Co-obligation 7.5 12.4 36.5 -39.7% -79.5% Advances on Foreign Exchange Contracts 353.8 316.2 300.3 11.9% 17.8% Other Loans 9.2 9.8 7.1 -5.7% 30.9% DISBURSED CREDIT OPERATIONS 1,890.2 1,876.9 1,655.6 0.7% 14.2% Guarantees Issued (L/Gs and L/Cs) 76.4 64.3 63.4 18.9% 20.6% TOTAL 1,966.6 1,941.2 1,719.0 1.3% 14.4% Allowance for Loan Losses (212.6) (119.6) (110.7) 77.7% 92.0% Credit Portfolio by Currency 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Local Currency - Real 1,504.4 1,508.7 1,322.9 -0.3% 13.7% Foreign Currency 385.9 368.2 332.7 4.8% 16.0% TOTAL 1,890.2 1,876.9 1,655.6 0.7% 14.2%Working capital loans and discounts of receivables to the middle market companies accounted forthe bulk (88%) of the total loans in the period.Trade finance operations, which include foreign currency loans (R$ 32.0 million) and advances onforeign exchange contracts (R$ 353.8 million), totaled R$ 385.9 million, representing 20% of theloan portfolio, up 5% in the quarter and 16% in 12 months, despite the 2.04% and 8.98%appreciation of the Brazilian real in the respective periods. In U.S. dollar terms, the trade financeportfolio grew 7.01% in the quarter and 26.7% in 12 months, to US$ 236.7 million, from US$ 221.1million on December 31, 2010 and US$ 186.8 million on March 31, 2010.The Loan Portfolio also includes BNDES/FINAME onlendings, which increased 11% and 47% in thecomparison periods, respectively; the run off balance from the Direct Consumer Credit – UsedVehicles portfolio discontinued in October 2008; and the portion of middle market loans and carfinancings assigned to other financial institutions under our credit risk coverage (co-obligation). It isworth mentioning that the used vehicle financing and credit assignments outstanding balancesrepresent only R$ 12.3 million, less than 1% of the loan portfolio.As shown below, the middle market segment accounts for 82% of the Loan Portfolio, while the LargeCompanies platform (companies with revenues of over R$ 400 million), which was structured in July2010, represents 14% of the portfolio, up 4% in the quarter. 10/22
  • Credit Portfolio By Cliente Segment 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10Middle Market 1,554.5 1,538.5 1,557.5 1.0% -0.2%Local Currency - Real 1,241.3 1,253.5 1,224.8 -1.0% 1.3%Loans & Discounted Receivables 1,118.6 1,139.3 1,139.8 -1.8% -1.9%Financing 10.2 14.2 - -27.8% n.m.BNDES / FINAME 112.4 99.9 85.0 12.5% 32.3%Foreign Currency 313.1 285.1 332.7 9.8% -5.9%Large Companies 267.2 256.5 - 4.2% n.m.Local Currency - Real 194.5 173.4 - 12.1% n.m.Loans & Discounted Receivables 182.3 160.7 - 13.4% n.m.BNDES / FINAME 12.2 12.7 - -4.2% n.m.Foreign Currency 72.7 83.1 - -12.5% n.m.Other 68.6 81.9 98.1 -16.3% -30.1%Consumer Credit – used vehicles 11.7 15.2 28.2 -23.2% -58.6%Acquired Loans & Financing 47.7 56.9 62.9 -16.2% -24.2%Other Loans 9.2 9.8 7.1 -5.7% 30.9%Disbursed Credit Operations 1,890.2 1,876.9 1,655.6 0.7% 14.2%Guarantees Issued 76.4 64.3 63.4 18.9% 20.6%TOTAL 1,966.6 1,941.2 1,719.0 1.3% 14.4%Allowance for Loan Losses (212.6) (119.6) (110.7) 77.7% 92.0% Industry % Agribusiness 17.56% Food & Beverage and Tobacco 17.52% Civil Construction 10.01% Chemical & Pharmaceutical 4.96% Automotive 4.51% Transportation & Logistics 4.47% Financial Institutions 4.44% Textile, Apparel and Leather 3.93% Education 3.42% Metal Industry 2.91% Power Generation & Distribution 2.84% Individuals 2.72% Oil and Biofuel 2.63% Financial Services 2.20% Pulp & Paper 2.19% Wood & Furniture 1.81% Retail & Wholesale 1.37% Other Industries (*) 10.51% TOTAL 100.00% (*) Individual participation of less than 1.3% of credit portfolio 11/22
  • By Economic Activity By Segment Other Upper Services Individuals Middle 23% 7% 14% Financial Middle Retail and Cos Market other 3% 82% 4% Commerce 11% Industry 56% By Product By Client Concentration 10 largest Other 20% Other 24% 1% BNDES / Loans & FINAME Discounts 8% 91% 61 - 160 11. - 60. 24% 32% By Maturity By Guarantee 181 to 91 to 180 360 Vehicles Securities 19% 15% Real State 1% 3% Aval PN 10% 26% Pledge / Lien 2% Others Pledge 4% Above Monitored Up to 90 360 days 6% days 30% Receivables 36% 48% Loan Portfolio Quality Rating AA A B C D E F G H Prov / Comp. TOTAL Cred % Required Provision % 0% 0.5% 1% 3% 10% 30% 50% 70% 100% O/S Loans 35.4 666.1 476.4 430.8 87.5 91.7 22.2 10.1 69.9 - 1,890.21Q11 11.2% Allowance for Loan Losses 0.0 3.3 4.8 12.9 8.8 27.5 11.1 7.1 69.9 67.2 212.6 O/S Loans 47.8 664.4 480.7 417.1 107.9 65.5 37.8 20.2 35.5 - 1,876.94Q10 6.4% Allowance for Loan Losses 0.0 3.3 4.8 12.5 10.8 19.6 18.9 14.1 35.5 0.0 119.6 O/S Loans 0.0 488.8 471.2 494.3 63.6 26.3 20.2 6.2 0.0 - 1,570.51Q10 4.3% Allowance for Loan Losses 0.0 2.4 4.7 14.8 6.4 7.9 10.1 4.4 0.0 17.3 68.0 12/22
  • On March 31, 2011, allowance for loan losses totaled R$ 212.6 million and consisted of: (a)regulatory provisions of R$ 145.4 million; and (b) complementary provisions of 3.5% of the loanportfolio in the amount of R$ 67.2 million. Complementary provisions are constituted to meetpotential difficulties in the payment of renegotiated loans and the aging of loans overdue more than60 days (non-performing loans – NPL), classified between D and H, thus increasing the cover to75.5%, from 44.8% in 4Q10 and 49.3% in 1Q10.As explained earlier, despite the impact on immediate results, the increase in allowance for loanlosses aims to safeguard the future operations of the bank, segregating problematic loans resultingfrom the economic crisis and providing more comfort to new shareholders and managementmembers to focus their attention and efforts on devising the new business strategy.On March 31, 2011, the Loan Portfolio comprised loans renegotiated with clients in the amount ofR$242.6 million, mostly classified between D and H, even when they are not overdue. Loansclassified between D and H totaled R$ 281.5 million, equivalent to 14.9% of the loan portfolio, ofwhich 59% were performing loans.The balance of loans with installments overdue more than 60 days totaled R$ 115.9 million,equivalent to 6.1% of the loan portfolio. The balance of loans with installments overdue more than90 days, comparable to Central Bank data, totaled R$ 87.6 million, equivalent to 4.6% of the loanportfolio (NPL 90 days). According to the Central Bank, default rates (more than 90 days) forcorporate loans have remained stable at around 3.6% since March 2010. > 60 days > 90 daysDefault by segment 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 Total Credit Portfolio NPL %T NPL %T NPL %T NPL %TMiddle Market 1,554.5 1,538.5 112.1 7.2% 67.2 4.4% 84.2 5.4% 56.6 3.7%Large Companies 267.2 256.50 - - - - - - - -Other 68.6 81.9 3.8 5.5% 5.1 6.2% 3.4 4.9% 4.5 5.5%TOTAL 1,890.2 1,876.9 115.9 6.1% 72.2 3.8% 87.6 4.6% 61.2 3.3%Allowance Loan Losses (ALL) 212.6 119.6ALL / NPL - 183.4% 165.6% 242.76% 195.6%ALL/ Loan Portfolio 11.2% 6.4% - - - -The table above shows that the allowance for loan losses corresponds to 11.2% of the loan portfolio,up 4.8 p.p. from 4Q10, covering 183.4% (+17.8 p.p.) of the loans overdue more than 60 days and2.4 times the loans overdue more than 90 days (+47.1 p.p.).In 1Q11, loans amounting to R$ 8.7 million (R$ 6.0 million in 4Q10), classified as H for 180 daysand hence were 100% provisioned, were written off. Recovery of overdue loans totaled R$ 0.4million in the quarter (R$ 3.0 million in 4Q10). 13/22
  • FundingFunding increased 10.6% from the previous quarter to reach R$ 2.2 million, 84.4% in reais and15.6% in foreign currency. Total Funding 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Total Deposits 1,759.0 1,577.6 1,363.6 11.5% 29.0% Time Deposits 680.5 739.9 698.5 -8.0% -2.6% Insured Time Deposits (DPGE)* 830.0 591.0 572.0 40.4% 45.1% Agribusiness & Bank Notes 95.9 82.0 8.7 16.9% 1006.6% Interbank Deposits 113.5 116.5 42.5 -2.6% 166.9% Demand Deposits and Other 39.1 48.2 42.0 -18.7% -6.7% Domestic Onlending 137.0 127.7 108.7 7.3% 26.0% Foreign Borrowings 350.7 325.3 408.4 7.8% -14.1% Trade Finance 331.9 307.0 296.8 8.1% 11.8% IFC A/B Loan 18.8 18.3 111.6 2.8% -83.1% TOTAL 2,246.7 2,030.6 1,880.7 10.6% 19.5%Funding in reais mainly consists of deposits (78% of total funding), mainly through the issue of BankDeposit Certificates (CDB) (30.3%) and Time Deposits with Special Guarantee (DPGE) (36.9%). Theincrease in the balance of DPGEs over the previous quarter reflects the 2- and 3 year-fundingoperations, before the capital increase date was confirmed, anticipating the demand for longer-termassets. Therefore, the average term of deposits was 806 days from issue (+49 days) and 532 daysfrom the close of the quarter (+36 days), as follows: Avg term from Avg term Type of Deposit issuance to maturity Time Deposits 572 341 Interbank 228 125 DPGE 1,141 790 Agribusiness & Bank Notes 203 132 Portfolio of Deposits 806 532 (*) from March 31, 2011 Deposits By Type By Investor By Maturity A LC+B N Other Time 5% Interbk 5% Individual +360Depo sit 6% 13% days up to 90(DP GE) Demand 46% days 48% Financial Institucio 2% Inst 33% nal 6% 55% Enterpris 91to 180 Time 1 to 81 e days Depo sit 360 days 21% 13% 39% 8% 14/22
  • Foreign borrowings reflect basically the growth of the Trade Finance portfolio financed through linesgranted by foreign correspondent banks. The balance of IFC’s A loan, amounting to R$ 18.8 millionand maturing in September, is totally hedged against exchange and interest rate fluctuations sinceits disbursement in October 2008.LiquidityOn March 31, 2011, cash totaled R$ 2,339.8million and, excluding Money Market Free Cash – R$ MMFunding (R$ 1,312.8 million), resulted infree cash of R$ 1,027.0 million, equivalent 1,027to 58.4% of total deposits, including R$197.7 million subscribed and paid till March 733 70731, 2010, held in reserve for capitalizationuntil approved by the Central Bank of Brazil.Bear in mind that the period for subscriptionof the preemptive rights by theshareholders of Banco Indusval S.A. endedon April 25, 2011, and the period forsubscription of the remaining reserved and 1Q10 4Q10 1Q11apportioned shares ended on May 2, 2011.Capital AdequacyThe Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the riskin their operations. In this context, the Central Bank of Brazil has stipulated that banks operating inthe country should maintain a minimum percentage of 11.0%, calculated according to the BaselAccord regulations, which provides greater security to Brazil’s financial system against oscillations ineconomic conditions.The following table shows Banco Indusval S.A.’s position in relation to the minimum capitalrequirements of the Central Bank: Basel Index 1Q11 4Q10 1Q10 1Q11/ 4Q10 1Q11/1Q10 Total Capital 563.7 426.4 443.1 32.2% 27.2% Required Capital 261.8 266.6 231.4 -1.8% 13.2% Margin over Required Capital 301.9 159.8 211.7 89.0% 42.6% Basel Index 23.7% 17.6% 21.1% 609.3% 262.0%As mentioned in the previous item, the reference equity already includes the amounts subscribed upto March 31, 2011, held for capital increase, and absorbs the negative net result of R$ 54.5 million,mainly due to the additional allowance. 15/22
  • Risk Ratings Financial Agency Classification Obs. Last Report Statements B+/Positive/B Global Standard & Poors Dec. 28, 2010 Sept. 30, 2010 brBBB+/ Positive/ brA-3 National Brasil Financial Strenghth: D- Stable Global Moodys Ba3/Stable/ Not Prime Nov. 25, 2010 Sept. 30, 2010 National Brasil A2br/ Stable/ BR-2 10.02 Riskbank Index RiskBank April 20, 2011 Dec. 31, 2010 Ranking: 56 Low Risk Short Term FitchRatings BBB/ Stable/ F3 National Brasil Dec. 21, 2011 Sept. 30, 2010Capital MarketTotal sharesOn March 31, 2011, Banco Indusval S.A. had a total of 41,212,984 shares, of which 27,000,000were common shares (IDVL3) and 14,212,984 were preferred shares (IDVL4), with 746,853 held intreasury. The shares from the capital increase will be issued only after the Central Bank’s approval,in accordance with legislation.Share Buyback ProgramThe 4th Share Buyback Program for the acquisition of up to 1,301,536 preferred shares, approved bythe Board of Directors on August 10, 2010, is effective till August 9, 2011. Indusval S.A. CTVM is theintermediary for this program. Until March 31, 2011, a total of 772,453 preferred shares (IDVL4)had been acquired under this program.Free Float Number of Shares as of 31.03.2011 Corporate Controlling Type Management Treasury Free Float % Capital Group Common 27,000,000 (17,116,985) (2,574,269) - 7,309,558 27.1% Preferred 14,212,984 (610,981) (159,570) (746,853) 12,299,964 86.5% TOTAL 41,212,984 (17,727,966) (2,733,839) (746,853) 19,609,522 47.6%The 7,309,458 common shares in free float are owned by the Ribeiro and Ciampolini families, whoare not part of the controlling group. Thus, the preferred shares regularly traded on the stockexchange total 12,299,964, equivalent to 29.8% of the total capital.Stock Option PlanThe following Stock Option Plans were approved for the Company’s executive officers and managers,as well as individuals who provide services to the Company or its subsidiaries:• Stock Option Plan I approved at the Extraordinary Shareholders’ Meeting of March 26, 2008.• Stock Option Plan II approved at the Extraordinary Shareholders’ Meeting of April 29, 2011.• Stock Option Plan III approved at the Extraordinary Shareholders’ Meeting of April 29, 2011. 16/22
  • The above-mentioned Stock Option Plans are filed in the IPE System of the Securities and ExchangeCommission of Brazil (CVM) and are also available for consultation on the Company’s IR website.The table below shows the options granted by Banco Indusval S.A. under the Stock Option Plan I: Quantity Data da Term for Exercise Grace period Granted Exercised Extinct Not Exercised outorga exercise Price R$ 07/22/08 3 years 5 years 10.07 161,896 - - 161,896 02/10/09 3 years 5 years 5.06 229,067 25,600 10 203,457 02/22/10 3 years 5 years 8.56 525,585 - 15,263 510,322 08/06/10 3 years 5 years 7.72 261,960 - 2,524 259,436 02/09/11 3 years 5 years 8.01 243,241 - - 243,241 1,421,749 25,600 17,797 1,378,352No option was granted till date under the Stock Option Plans II and III.Shareholder RemunerationOn April 7, 2011, the Bank paid Interest on Equity in the amount of R$ 4.2 million related to 1Q11,as advance payment of the minimum mandatory dividend for 2011. This amount corresponds to R$0.10477 per share or R$ 0.08905 net of withholding income tax.Share PerformanceThe shares of Banco Indusval (IDVL4) closed 1Q11 at R$ 9.02, for market cap of R$ 365.0 million,including the shares on March 31, 2011 and excluding treasury stock. The price of IDVL4 sharesappreciated 13.46% in 1Q11 and 5.5% in 12 months, while the Ibovespa index dropped 1.04% and2.54%, respectively. Share Price Evolution in the last 12 months 130 120 110 100 90 80 IBOVESPA IDVL4 70 5/ 010 10 10 1/ 011 3/ 011 11 10 0 10 6/ 010 0 8/ 010 0 0 0 2/ 011 1 12 1 1 12 201 01 01 01 11 201 01 01 01 20 20 20 20 20 2 /2 /2 /2 /2 /2 2 /2 /2 2 /2 /2 4/ 3/ 3/ 7/ 6/ 4/ 2/ 3/ 2/ / 27 16 26 15 24 /3 22 11 23 5/ 7/ 9/ 1/ 3/ 5/ /1 /2 /1 11 7/ 9/ 4/ 10Liquidity and Trading VolumeThe preferred shares of Banco Indusval (IDVL4) were traded in 98% of the sessions in 1Q11 and inthe past 12 months. In 1Q11, a total of 3.7 million IDVL4 shares were traded over 1,272 17/22
  • transactions on the spot market, for total volume of R$ 32 million. In the past 12 months, thevolume traded on the spot market was R$ 90.7 million, representing approximately 11.1 millionpreferred shares over 3,990 trades.Shareholder BaseDetailed distribution of preferred capital: March 31/ 2011 Dec.31/ 2010 # % Type of Shareholder Qty PN % PN # Inv. Qty PN % PN % Total Inv. Total Controlling Group 4 1,062,453 7.48% 44.11% 4 1,026,653 7.20% 44.00% Management 10 159,570 1.12% 6.63% 10 159,570 1.10% 6.60% Families 14 539,931 3.80% 19.05% 12 515,931 3.60% 19.00% National Institutional Investors 57 7,273,467 51.17% 17.65% 47 7,332,667 51.60% 17.90% Foreign Investors 11 2,818,399 19.83% 6.84% 12 2,842,625 20.00% 6.90% Corporates 11 26,100 0.18% 0.06% 9 17,400 0.10% 0.00% Individuals 437 1,586,211 11.16% 3.85% 514 1,571,341 11.10% 3.80% Treasury 0 746,853 5.25% 1.81% - 746,797 5.20% 1.80% TOTAL 544 14,212,984 100% 100% 608 14,212,984 100% 100%Subscription of SharesOn March 23, 2011, the Board of Directors approved a capital increase, within the authorizedcapital, through a private subscription to new shares, at the issue price of R$ 9.20 per common andpreferred share, under the same conditions as the shares existing on that date.As announced in the Notice to Shareholders dated March 24, 2011, the period for subscription of thepreemptive rights and for reservation of unsubscribed shares ended on April 25, 2011. In the period,a total of 9,585,090 common shares and 11,947,060 were subscribed for a total amount of R$198,095,780.00. In the same period, a firm order was placed for subscription of the 360,559unsubscribed common shares amounting to R$ 3,317,142.80, guaranteeing a minimum capitalincrease of R$ 201,412,922.80.As announced in the Notice to Shareholders on April 27, 2011, since the reservations forsubscriptions of unsubscribed shares were fewer than the unsubscribed shares available, all thereservation orders were approved for exercise between April 28, 2011 and May 2, 2011.After the subscription of the preemptive rights and apportionment of unsubscribed shares, a total of9,945,649 common shares and 11,947,060 preferred shares were subscribed and paid, which wererepresented by subscription receipts amounting to R$ 201,412,922.80, deposited at the CentralBank of Brazil until its ratification, when they will be substituted by shares in the shareholders’custody. The subscription receipts are available for trading on the Bovespa under the tickers IDVL9and IDVL10. 18/22
  • Elected Statutory BodiesBoard of Directors: (elected at the AGM held on April 29, 2011 and subject to the approval of the CentralBank of Brazil) Manoel Felix Cintra Neto – Executive Chairman Antonio Geraldo da Rocha Carlos Ciampolini Jair Ribeiro da Silva Neto Luiz Masagão Ribeiro Alain JP Belda – Independent member Alfredo de Goeye Junior – Independent member Guilherme Afonso Ferreira – Independent member Walter Iorio – Independent memberExecutive Office: elected at the Board of Directors meeting held on May 06, 2011 subject to the approval ofthe Central Bank of Brazil) Jair Ribeiro da Silva Neto – Co-CEO Luiz Masagão Ribeiro – Co-CEO André Mesquita – Vice-President - Products & Corporate FInance Francisco Paulo Cote Gil – Vice-President - Commercial Gilberto Faiwichow – Vice-President - Treasury Gilmar Melo de Azevedo – Vice-President – Special Loans Katia Ap Rocha Moroni – Vice-President - Trade Finance, Syndications, Funding & IR Eliezer L Ribeiro da Silva – Officer – Middle Market Credit Dept.Supervisory Board:As per the A.G.M. of April 29, 2011, the Supervisory Board will be operative during FY 2011 with themembers that acted during 2010 reelected, to mention: Francisco de Paula dos Reis Jr - Accountant Jairo da Rocha Soares – Accountant, Auditoe and Economist Luiz Alberto de Castro Falleiros – Economist 19/22
  • BALANCE SHEET Consolidated R$ 000 Assets 3/31/2010 12/31/2010 3/31/2011 Current 2,516,462 2,672,676 3,818,699 Cash 2,949 7,081 3,897 Short-term interbank investments 374,362 44,648 563,227 Open market investments 311,163 22,507 540,959 Interbank deposits 63,199 22,141 22,268 Securities and derivative financial instruments 975,295 1,255,106 1,819,265 Own portfolio 443,867 586,517 658,024 Subject to repurchase agreements 398,223 540,385 781,924 Linked to guarantees 93,303 92,751 134,012 Subject to the Central Bank 198,683 Derivative financial instruments 39,902 35,453 46,622 Interbank accounts 4,235 1,553 2,106 Payment and receipts pending settlement 940 - 1,092 Restricted credits - Deposits with the Brazilian Central Bank 3,295 1,553 1,014 Loans 782,771 920,861 842,536 Loans - private sector 789,212 933,827 890,506 Loans - public sector 21,767 9,137 4,247 (-) Allowance for loan losses (28,208) (22,103) (52,217) Other receivables 337,075 400,319 539,599 Foreign exchange portfolio 324,835 325,586 397,698 Income receivables 642 85 13 Negotiation and intermediation of securities 17,033 75,341 63,055 Sundry 3,708 4,756 97,269 (-) Allowance for loan losses (9,143) (5,449) (18,436) Other assets 39,775 43,108 48,069 Other assets 40,499 43,538 49,447 (-) Provision for losses (1,420) (1,915) (2,505) Prepaid expenses 696 1,485 1,127 Long term 518,989 590,638 515,696 Marketable securities and derivative financial instruments 4,083 6,151 6,614 Linked to guarantees 36 31 31 Derivative financial instruments 4,047 6,120 6,583 31 Interbank Accounts 10,681 7,352 7,140 Pledged Deposits - Caixa Economica Federal 10,681 7,352 7,140 Loans 427,513 503,536 484,806 Loans - private sector 497,331 595,564 624,937 Loans - public sector 3,479 - - (-) Allowance for loan losses (73,297) (92,028) (140,131) Other receivables 75,332 72,703 16,469 Trading and Intermediation of Securities 74 244 243 Sundry 75,323 72,503 17,994 (-) Allowance for loan losses (65) (44) (1,768) Other rights 1,380 896 667 Prepaid Expenses 1,380 896 667 Permanent Assets 13,104 12,828 12,410 Investments 1,686 1,686 1,686 Other investments 1,686 1,686 1,686 Property and equipment 11,418 11,142 10,724 Property and equipment in use 2,179 2,192 2,192 Revaluation of property in use 3,538 3,538 3,538 Other property and equipment 12,379 12,515 12,511 (-) Accumulated depreciation (6,970) (7,103) (7,517) Leasehold Improvements 292 300 - - - TOTAL ASSETS 3,048,555 3,276,142 4,346,805 20/22
  • Consolidated R$ 000Liabilities 3/31/2010 12/31/2010 3/31/2011Current 1,895,649 2,074,519 2,780,139 Deposits 725,274 820,679 761,590 Cash deposits 41,707 47,682 38,240 Interbank deposits 42,510 105,393 105,087 Time deposits 640,801 667,133 617,356 Other 256 471 907 Funds obtained in the open market 605,650 538,580 1,312,773 Own portfolio 395,980 538,580 776,286 Third party portfolio 209,670 462,999 Free cash portfolio 73,488 Funds from securities issued or accepted 8,665 74,648 88,319 Agribusiness Letter of Credit & Bank Notes 8,665 74,648 88,319 Interbank accounts 476 - 475 Receipts and payment pending settlement 476 - 475 Interdepartamental accounts 9,947 5,898 9,004 Third party funds in transit 9,947 5,898 9,004 Borrowings 389,450 324,800 350,689 Foreign borrowings 389,450 324,800 350,689 Onlendings 42,074 43,297 44,025 BNDES 19,569 18,087 16,131 FINAME 22,505 25,210 27,894 Other liabilities 114,113 266,617 213,264 Collection and payment of taxes and similar charges 818 571 650 Foreign exchange portfolio 22,164 22,002 62,996 Taxes and social security contributions 2,932 4,474 9,590 Social and statutory liabilities 2,352 3,661 5,534 Negotiation and intermediation securities 24,155 195,316 77,938 Derivative financial instruments 55,228 34,184 45,398 Sundry 6,464 6,409 11,158Long Term 721,751 774,736 1,002,235 Deposits 629,625 674,941 901,534 - Interbank Deposits - 11,088 8,392 Time deposits 629,625 663,853 893,142 Funds from securities issued or accepted - 7,345 7,571 Agribusiness Letter of Credit & Bank Notes - 7,345 7,571 Loan obligations 18,984 549 - Foreign loans 18,984 549 - Onlending operations - Governmental Bureaus 66,663 84,354 92,984 Federal Treasure 19,299 - 12,694 BNDES 3,161 28,154 30,445 FINAME 39,621 39,856 47,852 Other Institutions 4,582 16,344 1,993 Other liabilities 6,479 7,547 146 Taxes and social security contributions 5,815 5,647 117 Derivative financial instrument 482 - 29 Sundry 182 1,900 -Future results 423 462 701Shareholders Equity 430,732 426,425 563,730 Capital 370,983 370,983 568,665 Capital Reserve 1,016 2,212 2,540 Revaluation reserve 1,978 1,928 1,911 Profit reserve 63,322 55,812 55,812 (-) Treasury stock (6,898) (5,957) (5,958) Asset valuation Adjustment 331 1,447 (553) Accumulated Profit / (Loss) - - (58,687) TOTAL LIABILITIES 3,048,555 3,276,142 4,346,805 21/22
  • INCOME STATEMENT R$ 000 Consolidated 1Q10 4Q10 1Q11 Income from Financial Intermediation 114,386 115,930 118,123 Loan operations 61,153 68,758 64,312 Income from securities 24,272 24,198 40,713 Income from derivative financial instruments 1,638 14,239 5,437 Income from foreign exchange transactions 27,323 8,735 7,661 Expenses from Financial Intermediaton 79,167 81,396 179,487 Money market funding 38,792 60,052 71,972 Loans, assignments and onlendings 28,923 7,833 5,866 Income from derivative financial instruments - - - Allowance for loan losses 11,452 13,511 101,649 Gross Profit from Financial Instruments 35,219 34,534 (61,364) Other Operating Income (Expense) (24,429) (28,400) (28,900) Income from services rendered 2,831 4,041 3,466 Income from tariffs 195 265 237 Personnel expenses (12,422) (15,700) (16,139) Other administrative expenses (9,331) (11,258) (11,383) Taxes (3,188) (4,234) (3,549) Other operating income 990 1,521 4,570 Other operating expense (3,504) (3,035) (6,102) Operating Profit 10,790 6,134 (90,264) Non-Operating Profit (16) 1,417 (483) Earnings before taxes ad profit-sharing 10,774 7,551 (90,747) Income tax and social contribution (947) (499) 38,394 Income tax 162 154 (461) Social contribution 97 183 (277) Deferred fiscal assets (1,206) (836) 39,132 Contributions and Equity (2,482) (1,159) (2,111) Net Profit for the Period 7,345 5,893 (54,464) 22/22