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3Q12 Institutional Presentation
Summary                              History and Profile                                    PINE                          ...
History and Profile
PINESpecialized in providing financial solutions for wholesale clients…                                                   ...
History...with extensive knowledge of Brazil’s corporate credit cycle.                                                    ...
Business Strategy
Competitive LandscapePINE serves a niche market of companies that lack adequate banking options, seeking a bank that fully...
Focus Always on the ClientThe bank develops a strategy of product diversity, tailored to meet the needs of each client.   ...
Corporate CreditStrong track record and solid credit origination and approval process.                                    ...
FICCPINE is the 2nd player in commodity derivatives1.                     Client Notional Derivatives Portfolio by Market ...
PINE InvestimentosConsolidation of the Investment Banking franchise.                                                      ...
DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors.                      ...
PillarsStrategy supported by solid fundamentals, built and achieved over the years…        Adequate capital structure     ...
Rating Upgrades...with market recognition and positive evaluation by rating agencies.    On December 7th, 2011:           ...
Highlights and Results
3Q12 Events and Highlights                        US$30 million, 7-year funding transaction with the Global Climate Partne...
3Q12 Financial Highlights    The main performance indicators continued to show positive development in the period…        ...
Product and Revenue Diversification...with contributions from all business lines, fruits of the strategy of complete servi...
Loan Portfolio1The portfolio has maintained its product distribution…                                                     ...
Loan Portfolio Quality... with quality, collaterals, and adequate credit coverage.                                  Loan P...
Active Loan Portfolio Management                                                3Q12                                      ...
FundingDiversified sources of funding…                                                                                    ...
Asset & Liability Management... presenting a positive gap between credit and funding.                                     ...
Capital Adequacy Ratio (BIS)BIS ratio reached 17.0%.                                                                      ...
Capital IncreaseCentral Bank approved the capital increase announced in August 2012.                   The capital increas...
Corporate Governance and PINE4
Management StructureNon-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decisi...
Corporate GovernancePINE commits to best corporate governance practices…                              Three independent me...
Committees…favoring collective decision making.                    Main decisions are taken by committees: Board of Direct...
Dividends and Interest on Own CapitalPINE has delivered an attractive dividend yield paying dividends/interest on own capi...
Appendix
Social Investment and ResponsibilityPINE supports and promotes the Brazilian culture and sports                           ...
Investor Relations                                                                                        Noberto N. Pinhe...
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Banco Pine - Institutional Presentation 3Q12

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Banco Pine - Institutional Presentation 3Q12

  1. 1. 3Q12 Institutional Presentation
  2. 2. Summary History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Distribution Pillars Rating Upgrades Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees Dividends and Interest on own Capital AppendixInvestor Relations | 3Q12 | 2/33
  3. 3. History and Profile
  4. 4. PINESpecialized in providing financial solutions for wholesale clients… Credit Portfolio by Annual Client Revenues September 30th, 2012 Up to R$150 million 7% R$150 million to R$500 million 19% Over R$1 billion 56% R$500 million to R$1 billion 18% Profile Focused on establishing long-term relationships Business is structured along four primary business lines: Profound knowledge and product penetration • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE Investimentos: Investment Banking and Investment Management • Distribution of Banking Products: Funding and investment solutions for foreign and local investorsInvestor Relations | 3Q12 | 4/33
  5. 5. History...with extensive knowledge of Brazil’s corporate credit cycle. November, 2012 Opening of broker dealer in New York, PINE Securities USA LLC August, 2012 Subscription of PINE’s capital by DEG, Proparco, Controlling shareholder and management 1939 Pinheiro Family October, 2011 1,216 founds Subscription of PINE’s capital by DEG Banco Central do End of 2007 Nordeste Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business 1,015 867 October, 2007 Creation of the Hedging Desk 827 825 801 May, 2007 Creation of PINE Investimentos product line and opening of Cayman branch 1975 Noberto Pinheiro 2005 becomes one of Noberto Pinheiro becomes PINE’s sole 7,444 7,063 BMC’s controlling shareholder shareholders 6,033 335 Corporate Credit Portfolio (R$ Millions) 4,804 Shareholders Equity (R$ Millions) 209 4,254 152 171 121 126 140 136 2,854 62 18 1,214 1997 155 184 222 341 521 620 755 663 761 Noberto and Nelson Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Pinheiro sell their Sept-12 stake in BMC and found PINE Asian Russian Devaluation Nasdaq Sept. 11 Brazilian Subprime European Crisis Crisis of the real Elections Community (Lula) March, 2007 May, 2012 IPO 15 yearsInvestor Relations | 3Q12 | 5/33
  6. 6. Business Strategy
  7. 7. Competitive LandscapePINE serves a niche market of companies that lack adequate banking options, seeking a bank that fullyunderstands their needs. Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporates Large Multi-Services banks Foreign banks are in a deleveraging process 100% Corporate PINE Foreign and Full service Bank – Credit, Hedging, and Investment Banks 100% focused on providing complete service Investment Bank products – with room for to companies, offering customized products growth . Corporate & SME ~10 clients per officer Competitive Advantages: SME & Retail Focus Fast response: Strong relationship with clients, with the credit committee meeting twice a week and response times Retail to clients of no more than one week Specialized services Tailor-made solutions Product diversityInvestor Relations | 3Q12 | 7/33
  8. 8. Focus Always on the ClientThe bank develops a strategy of product diversity, tailored to meet the needs of each client. CDs CDIs LCIs Pricing of Assets and CCBs Private Liabilities Placements RDBs Eurobonds Liquidity LCAs Management Financial CDBs Letters Fixed Income Local Currency Currencies Trading CRIs Debentures Commodities Foreign Currency Equities Underwriting Distribution Treasury WorkingCapital Working Capital Overdraft Financial Advisory Capital Accounts Markets Local Currency M&A BNDES Onlending Clients Onlending Project Finance PINE Corporate Bank Guarantees Corporate & Investimentos Credit Foreign Currency Compror Structured Participation Finance Trade Finance ACC/ACE Funds FICC Structured Export Finance Private Credit Finance Investment Finimp Funds Management Bank Guarantees Letters of Credit Real Estate Funds 2,770 onlending Fixed Income Currencies Exclusive Funds Rural Credit Commodities Syndicated and Portfolio Structured Loans Management Swap NDFs Structured Swaps OptionsInvestor Relations | 3Q12 | 8/33
  9. 9. Corporate CreditStrong track record and solid credit origination and approval process. Actions Credit Committee Personalized, agile service, working closely with clients Meets twice a week – reviewing 20 proposals on average and keeping a low client to account officer ratio: each officer handles ~10 economic groups on average. Minimum quorum: 4 members - attendance of CEO or Chairman is mandatory Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information. Members: Chairman of the Board Established long term relationships with more than 600 economic groups CEO Chief Operating Officer Origination network is comprised of 11 branches divided Chief Administrative Officer into 14 origination platforms in Brazil’s major economic Chief Risk Officer centers More than 30 credit analysts, assuring that analysis is Participants: fundamentally driven and based on industry-specific FICC Executive Director intelligence Credit Analysts Efficient loan and collateral processes, documentation, Other members of the Corporate Banking and controls, which has resulted in a low NPL track record origination team Credit Approval: Electronic Process Regional Heads of CRO, Executive Origination Officers Credit Analysts Origination and Credit Directors and Analysts CREDIT COMMITTEE Analysis of Credit Credit origination Credit analysis, visit to clients, data Discussion on sizing, collateral, Presentation to the Credit Committee Centralized and unanimous updates, interaction with internal structure, etc. decision making process research teamInvestor Relations | 3Q12 | 9/33
  10. 10. FICCPINE is the 2nd player in commodity derivatives1. Client Notional Derivatives Portfolio by Market Notional Value and MtM September 30th, 2012 R$ millions Fixed Notional Value Income MtM 22% Stressed MtM 629 597 358 354 354 Currency 56% 256 238 178 157 126 Commodities 4,287 4,720 3,709 3,712 4,875 22% Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Market Segments Portfolio Profile Fixed Income: Fixed, Floating, Inflation, Libor Scenario on September, 30th Duration: 210 days Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Mark-To-Market : R$238 million Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$629 million1Source: Cetip Report, September 2012Investor Relations | 3Q12 | 10/33
  11. 11. PINE InvestimentosConsolidation of the Investment Banking franchise. Transactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. R$ 90,000,000 R$ 36,000,000 R$ 90,400,000 Debentures Debentures Debentures Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions. Coordinator Lead Coordinator Coordinator Assets under Management: Fixed Income, Credit Funds, Exclusive Mandates. July, 2012 August, 2012 September, 2012 Volume of Underwriting Transactions Revenues R$ Millions R$ Millions 880 52 623 346 18 18 242 14 217 2 3Q11 2Q12 3Q12 9M11 9M12 3Q11 2Q12 3Q12 9M11 9M12Investor Relations | 3Q12 | 11/33
  12. 12. DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors. Actions Funding R$ Millions Responsible for serving investors, offering traditional 5,182 6,248 6,725 investments and also alternatives tied to the credit origination platform, capital markets, and asset 973 1,447 1,679 International management. It counts on PINE’s expertise in structuring and intermediating fixed income transactions. 4,209 4,801 5,046 Local Divided by type of investors to provide tailor made solutions. Sept-10 Sept -11 Sept -12 Investors Market Segments Family Offices Local Currency Traditional investments (local deposits such as CDB/RDB/CDI, Individuals LCA/LCI) Corporates Senior and subordinated local notes Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, Asset Managers CDCAs, among others) Financial Institutions Pension Funds Foreign Currency Foreign Investors Time Deposits and CD – Certificate of Deposit Senior and Subordinated bonds issued by PINE Debt Capital Markets (CCB, Credit Fund, Bonds) – through Credit Linked NotesInvestor Relations | 3Q12 | 12/33
  13. 13. PillarsStrategy supported by solid fundamentals, built and achieved over the years… Adequate capital structure Strong and motivated team Capital Adequacy Ratio (BIS) of 17.0% Meritocracy Regulatory Capital: R$1.4 billion Right incentives Highly qualified team Corporate clients Efficient funding structure Strong relationship Longer average maturities: 16 months (Sept/12) Customized service Greater diversification of funding sources In-depth knowledge of client needs USD25 million 10 year funding with Proparco Product diversityInvestor Relations | 3Q12 | 13/33
  14. 14. Rating Upgrades...with market recognition and positive evaluation by rating agencies. On December 7th, 2011: On May 14th, 2012 On August 23rd, 2012: PINE’s rating in global scale, to Foreign and Local Currency Long- PINE’s outlook upgraded to BB+ from BB- (two notches) Term IDR to BB from BB- Positive PINE’s rating in national scale, to National Long-Term Rating to brAA from brA (three notches) A+(bra) from A(bra) Viability rating upgraded to bb On August 23rd, 2011: from bb- Local currency rating, to brA from Banco Pine S.A. USD 125 million brA- Subordinated notes to B+ from B Reaffirmed the Rating in foreign currency in BB- Revision from PINE’s outlook to positive The agency based its ratings on the strong Fitch attributed this upgrade to the Moodys explained that the positive outlook asset-quality, adequate liquidity, capital, and diversification of PINEs funding profile and its reflects PINE’s profitability through a well- earnings. S&P also emphasizes the gradual good assets and liabilities management, executed strategy, and which has ensured funding diversification, through foreign provided by the adequate match of the credit earnings recurrence. The rating action also issuances, securitizations, and the recent and funding books. In addition, the Agency captures the banks improved funding capital increase subscribed by DEG. considered that the positive liquidity gap diversification, well managed asset quality allied with the good cash position evidences metrics and its good liquidity and capital the Banks overall solid financial strength. management. According to the Agency, the Bank’s continued increase in fee income, mainly due to higher product penetration, is a good indicator of the successful maintenance of profitability levels.Investor Relations | 3Q12 | 14/33
  15. 15. Highlights and Results
  16. 16. 3Q12 Events and Highlights US$30 million, 7-year funding transaction with the Global Climate Partnership Fund (GCPF), fund backed by the German Government with the KFW Bankengruppe, the Government of Denmark and IFC, and managed by Deutsche Bank. Approval by the Central Bank of the first phase of the capital increase in the amount of R$139.6 million. Amount already incorporated into shareholders´equity. Positive revenue contributions from all business lines in 9M12: 60.2% from Corporate Credit, 17.6% from Hedging Desk, 11.2% from Treasury and 11.0% from PINE Investimentos, which continues to demonstrate the recurring nature of these revenue streams. Positive liquidity gap maintained for over 10 quarters: 14 months for credit versus 16 months for funding. Highly liquid balance sheet, with a strong cash position of R$1.4 billion, or 41% of time deposits. Nominated by the International Finance Corporation (IFC), as the best issuing bank, in recognition of Pine´s support of the energy efficiency sector. Ranked amongst the 15 largest players in the CETIP derivatives ranking, and 2nd largest in commodity derivatives. 9th largest bank in Brazil in offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine.Investor Relations | 3Q12 | 16/33
  17. 17. 3Q12 Financial Highlights The main performance indicators continued to show positive development in the period… R$ Millions Total Credit Risk1 Total Funding Shareholders Equity 8.3% 7.6% 23.8% 6,725 1,216 6,875 7,444 6,248 982 Sept-11 Sept-12 Sept -11 Sept -12 Sept-11 Sept-12 Fee Income Net Income ROAE 170 bps 23.7% 19.0%2 86.7% 28 38 47 17.3% 17.7% 15 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobond,s and fund shares)2 Excludes capital increase of R$139.6 million incorporated into shareholders´equity Investor Relations | 3Q12 | 17/33
  18. 18. Product and Revenue Diversification...with contributions from all business lines, fruits of the strategy of complete service to clients. Clients with more than one Product Penetration Ratio – Clients with more than one Product More than 1 product 1 product 2.9 41% 40% 37% 2.8 2.8 59% 60% 63% Sept-10 Sept-11 Sept-12 Sept-10 Sept-11 Sept-12 Revenue Mix 9M11 9M12 PINE Investimentos 11.0% PINE Corporate Investimentos Credit 3.9% 65.9% Treasury Treasury Corporate 4.9% 11.2% Credit 60.2% FICC FICC 25.3% 17.6%Investor Relations | 3Q12 | 18/33
  19. 19. Loan Portfolio1The portfolio has maintained its product distribution… R$ millions 7,641 7,444 7,426 7,063 64 47 6,875 81 6,545 100 Retail 124 1,021 1,154 942 6,033 6,057 190 782 756 5,613 230 269 772 Trade finance 622 1,599 1,699 336 533 1,687 1,684 1,534 555 1,372 1,022 1,117 822 Guarantees 827 800 883 881 883 846 881 912 670 644 279 325 386 783 4 BNDES Onlending 75 172 Private Securities 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 3,174 Working Capital Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 ¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobonds, and fund shares)Investor Relations | 3Q12 | 19/33
  20. 20. Loan Portfolio Quality... with quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans > 90 days B September 30th, 2012 40.5% Contracts overdue 0.8% Installments Overdue 0.6% 0.7% 0.6% C 0.5% 0.4% 11.7% 0.2% 0.2% 0.2% 0.2% D-E 2.5% F-H AA-A 1.6% 43.7% Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Credit Coverage Collaterals +80 bps Products Pledge 47% Guarantees 2% Investments 3% 3.7% 3.5% 2.7% Properties Pledge 22% Receivables Sept-11 Jun-12 Sept-12 26%Investor Relations | 3Q12 | 20/33
  21. 21. Active Loan Portfolio Management 3Q12 2Q12 Others Others; 9% Construction 9% Telecom Financial Material Sugar and Ethanol 2% Meatpacking; 2% Sugar and Ethanol; Institutions 2% 16% 19% 2% Financial Chemicals Institutions; 2% 2% Chemicals; 3% Telecom 2% Food Industry; 3% Food Industry 3% Construction 12% Metal and Mining; 3% Construction Beverages and 10% Tobacco Beverages and 3% Tobacco; 4% Vehicles and Parts Vehicles and Parts; 4% 4% Electric and Electric andMetal and Mining Specialized Services; Renewable Energy; 4% Renewable Energy 4% 9% 10% Specialized Transportation and Services Lo gistics; 5% 4% Foreign Trade Agriculture Agriculture; 9% 6% 9% Foreign Trade; 5% Transportation Infrastructure Infrastructure; 7% and Logistics 6% 6% Reduction of exposure to the Sugar and Ethanol sector, from 19% to 16%; Increased participation in other sectors such as Electric and Renewable Energy, Transportation and Logistics, Foreign Trade; Reshuffle of the 20 largest clients in approximately 25%; Reduced relative participation of the top 20 clients when compared to shareholders equity by 6%, or 17% when considering the capital increase; and 20 largest clients represented 27% of the total portfolio.Investor Relations | 3Q12 | 21/33
  22. 22. FundingDiversified sources of funding… R$ millions Trade Finance 6,933 6,725 6,544 6,421 Private Placements 6,248 1,089 5,902 753 1,083 841 Multilateral Lines 814 118 5,437 5,322 596 250 234 180 125 5,182 86 353 276 295 156 International Capital 377 84 310 260 158 435 267 246 233 Markets 413 205 237 553 160 155 281 291 561 166 194 282 247 256 200 21 Local Capital Markets 194 185 33 813 - 829 867 867 868 898 33 829 626 42 112 31 867 53 66 161 194 33 BNDES 46 165 106 176 224 320 41 210 250 281 223 198 214 212 228 213 272 218 Demand Deposits 1,196 1,186 1,228 1,177 1,287 1,253 1,463 1,530 1,114 Interbank Time Deposits High Net Worth Individual 2,130 2,128 2,153 2,056 Time Deposits 1,720 1,845 1,965 1,654 1,592 Corporate Time Deposits Institutional Time Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 DepositsInvestor Relations | 3Q12 | 22/33
  23. 23. Asset & Liability Management... presenting a positive gap between credit and funding. Matching of Transactions Loan / Total Funding CREDIT FUNDING 80% 81% 76% 76% 73% BNDES BNDES Trade Finance Trade Finance Deposits Working Capital, Private Financial Bills Securities1 And Cash Intl. Funding 1 Includes debentures, CRIs, eurobonds, and fund shares Sept-11 Dez-11 Mar-12 Jun-12 Sept-12 ALM Deposits vs. Total Funding R$ Millions R$ Millions Credit Funding 6,248 6,933 6,725 2,947 2,165 2,155 41% 45% 46% 1,739 1,679 Others 1,363 957 Total Deposits 494 59% 55% 54% 33 118 162 - No maturity Up to 3 From 3 to 12 From 1 to 3 From 3 to 5 More than 5 months months years years years Sept-11 Jun-11 Sept-12Investor Relations | 3Q12 | 23/33
  24. 24. Capital Adequacy Ratio (BIS)BIS ratio reached 17.0%. Tier II Tier I Minimum Capital Requirement (11%) 19.6% 18.4% 18.5% 17.4% 17.1% 17.0% 16.6% 16.4% 15.9% 4.5% 3.6% 4.2% 3.6% 3.7% 3.4% 3.0% 3.1% 3.3% 14.8% 15.1% 14.3% 14.0% 13.8% 13.4% 13.2% 13.3% 12.6% Sept -10 Dec -10 Mar - 11 Jun -11 Sept -11 Dec -11 Mar -12 Jun - 12 Sept -12 R$ million BIS Ratio(%) Tier I 1,210 14.0% Tier II 256 3.0% Total 1,466 17.0%Investor Relations | 3Q12 | 24/33
  25. 25. Capital IncreaseCentral Bank approved the capital increase announced in August 2012. The capital increase resulted in the issuance of 6,558,123 common shares in the amount of R$93,649,996.44, and 3,220,203 preferred shares, totaling R$45,984,498.84, at a unit price of R$14.28. Summary Total of R$139.6 million Total Shares Subscribed: 6,558,123 common shares and 3,220,203 preferred shares: 2,100,839 by DEG; 519,577 by Management; 587,732 by minorities; and 12,055 left overs subscribed by minority shareholders. With the aproval of the Central Bank, the shareholders´ structure is as follows: Common Preferred Total % Controlling Shareholder 58,444,889 15,595,863 74,040,752 68.2% Management - 5,923,784 5,923,784 5.5% Free Float - 28,271,724 28,271,724 26.0% Individuals - 2,734,411 2,734,411 2.5% Institutional Investors - 11,330,025 11,330,025 10.4% DEG - 5,005,067 5,005,067 4.6% Foreign Investors - 9,202,221 9,202,221 8.5% Treasury - 394,840 394,840 0.4% Total 58,444,889 50,186,211 108,631,100 100.0% For managerial purposes, minority shareholders were considered individuals.Investor Relations | 3Q12 | 25/33
  26. 26. Corporate Governance and PINE4
  27. 27. Management StructureNon-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decisionmaking process. BOARD Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann Chairman Vice Chairman Independent External Independent Independent Director Director Director Director EXTERNAL AUDIT INTERNAL AUDIT COMPENSATION AUDIT COMMITTEE PWC Tikara Yoneya COMMITTEE CEO Noberto N. Pinheiro Junior HUMAN RESOURCES Sidney Vilhena COO CRO CAO CFO Norberto Zaiet Gabriela Chiste Ulisses Alcantarilla Susana Waldeck Origination Credit and F.I. Research Asset & Liabilities Back Controlling Investment Banking Compliance & Internal Office Accounting Sales & Trading Controls Legal Tax Planning Research Macro / Credit, Market ,and Collaterals Management IT Commodities Liquidity Risks Special Situations Accounts Payable International Middle Office Office Management Marketing Investor RelationsInvestor Relations | 3Q12 | 27/33
  28. 28. Corporate GovernancePINE commits to best corporate governance practices… Three independent members and one external member on the Board of Directors Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990 Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo Abril Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association Gustavo Junqueira: Former Head of PINE Investimentos, Member of the Board of Directors at EZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica São Paulo Stock Exchange (BM&FBovespa) Level 2 Corporate Governance Audit and Compensation Committee reporting directly to the Board of Directors 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation cases First Brazilian bank to release BR GAAP and IFRS quarterlyInvestor Relations | 3Q12 | 28/33
  29. 29. Committees…favoring collective decision making. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge, ideas, and information Transparency 45 days BOARD OF DIRECTORS RISK COMPENSATION AUDIT COMMITTEE COMMITTEE COMMITTEE 45 days Bi-annually Monthly CEO COMMITTEES ASSET & LIABILITY INTERNAL INVESTMENT HUMAN PERFORMANCE EXECUTIVE CREDIT COMMITTEE LITIGATION CONTROLS AND IT ETHICS ALCO BANK RESOURCES EVALUATION COMPLIANCE Monthly Twice a week Weekly Weekly Bi-monthly Every 2 months Monthly Bi-monthly Quarterly On demandInvestor Relations | 3Q12 | 29/33
  30. 30. Dividends and Interest on Own CapitalPINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterlybasis. R$ millions 55 45 40 40 35 35 33 30 30 25 25 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 3Q12Investor Relations | 3Q12 | 30/33
  31. 31. Appendix
  32. 32. Social Investment and ResponsibilityPINE supports and promotes the Brazilian culture and sports Culture Social Paulo von Poser: exhibit of the painter Paulo Instituto Alfabetização Solidária von Poser, who is one of Brazil’s most prominent Instituto Casa da Providência artists Quebrando o Tabu: documentary based on the Sports analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against Minas Tênis Clube: training program for drugs athletes Além da Estrada: motion picture, which received the award for best director in the 2010 Rio Festival Most Green Bank Recognized by the International Finance Corporation (IFC), private agency programs of Responsible Credit the World Bank as the most "green" bank as a “Lists of Exceptions”: the Bank does not finance result of its transactions under the Global projects or those organizations that damage the Trade Finance Program (GTFP) and its on environment, are involved in illegal labor lending to companies focused on renewable practices or produce, sell or use products, energy and ethanol substances or activities considered prejudicial to society. System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally- Global Compact produced sustainability reports for corporate PINE joined the Global Compact initiative in loans. October 2012. The UN initiative mobilizes the international business community to adopt fundamental and internationally accepted values in their business practices in the areas of human rights, labor relations, environment and combating corruption, which are reflected in ten principles.Investor Relations | 3Q12 | 32/33
  33. 33. Investor Relations Noberto N. Pinheiro Júnior CEO Susana Waldeck Norberto Zaiet Junior CFO / IRO COO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Ana Lopes Investor Relations Analyst Fone: +55-11-3372-5343 www.pine.com/ir ir@pine.com This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as such are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy (political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax legislation) and therefore are subject to change without prior notice. Given that PINE is in quiet period because of the issuance of Financial Bills of its 2nd public issuance, we recommend that any potential investor read in conjunction with this Press Release, the Final Prospectus (in particular the section "Risk Factors") and the documents incorporated by reference to it, such as PINEs Reference Form, available on its website (www.pine.com/ir).Investor Relations | 3Q12 | 33/33

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