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3Q11 Institutional Presentation
- 2. Summary Macroeconomic Context History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit Hedging Desk PINE Investimentos and Distribution Pillars Rating Upgrades Highlights and Results Corporate Governance and Shares Organizational Structure Corporate Governance Committees Capital Increase Dividends Appendix Investor Relations | 3Q11 | 2/37
- 4. Macroeconomic Context Some reasons for the Brazilian growth. Brazil – Real GDP vs. Total Credit/GDP 50 45 3,400 Real GDP Total Credit/GDP 12% 9% 7% Decreasing Real Interest Rate 40 35 30 2,900 2,400 4% 2% -1% 4% 25 20 1,900 1,400 003 004 005 006 007 008 009 010 011 --6% -9% -11% 99 00 01 02 03 04 05 06 07 08 09 10 11 12 25% 20 20 20 20 20 20 20 20 20 Real GDP Total Credit/GDP 199 200 200 200 200 200 200 200 200 200 200 201 201 201 Brazil - Distribution of Families Income Low Unemployment Rate 14.5% BraBsrialzil ÍndIniadia China ÁfSroicuat hdoA fSruicla 20% 15% 13.5% 12.5% 11.5% 10.5% 10% 5% 9.5% 8.5% 7.5% 6.5% 0% -5% No labor income Less than or equal to 1 min wage 1 to 2 MW 2 to 3 MW 3 to 5 MW 5 to 10 MW 10 to 20 MW 20 MW 2001 2002 2003 2004 2005 2006 2007 2008 2009 5.5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unemployment (seasonally adjusted) Yearly mean Investor Relations | 3Q11 | 4/37
- 5. Macroeconomic Context Other reasons for the Brazilian success: external and relative fiscal discipline. 10% 8% 6% 4% Primary Results / GDP Public Debt / GDP 250% 200% 2% 0% -2% -4% -6% 150% 100% -8% -10% -12% 1999 2001 2003 2005 2007 2009 2011 2013 2015 50% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 Brazil France Germany Bra il China France German Italy Japan Russia Spain UK USA 21% EU Exported Commodities Main Trading Partners 190 180 Brazil Germany India Italy Japan UK USA Spain 27% CHINA MERCOSUR USA 170 160 150 140 18% 1% 2% 2% 2% JAPAN RUSSIA SOUTH KOREA 130 120 110 100 90 MEXICO 10% 15% 4% INDIA REST OF THE WORLD 2005 2006 2007 2008 2009 2010 2011* Iron Ore Soy Sugar Coffee Meat (*) Estimates for 2011 Investor Relations | 3Q11 | 5/37
- 7. PINE Wholesale Bank specialized in providing financial solutions for companies… Credit Portfolio by Annual Client Revenues September 30th, 2011 Up to R$150 million 14% Over R$1 billion 50% R$150 million to R$500 million 17% R$500 million to R$1 billion 19% Profile Focused on establishing long-term relationships with Business is structured along four primary business lines: g g p companies PINE thoroughly understands the needs and strategies of its clients offering a wide range of financial instruments g p y • Corporate Credit: credit and financing products • Hedging Desk: instruments for hedging and risk management clients, • PINE I ti t I t t B ki d in local and foreign currencies Close relationship with clients: the average number of Investimentos: Investment Banking and Investment Management • Distribution: investment solutions for foreign and local investors products used by those clients served by more than one product is 2.9. Investor Relations | 3Q11 | 7/37
- 8. History ...with extensive knowledge of Brazil’s corporate credit cycle. 1939 Corporate Bank Hybrid Bank Pinheiro Family founds Banco Central do Nordeste Wholesale Bank End of 2007 Decision to exit the payroll-deductible loans business Consolidation of the strategy to provide full service to companies October, 2007 C ti f th H di D k 1975 Noberto Pinheiro becomes one of BMC’s controlling Creation of the Hedging Desk May, 2007 Creation of the Corporate Finance Division BMC s shareholders 2005 Noberto Pinheiro becomes PINE’s sole shareholder 6 5,839 6,556 1997 Noberto and Nelson Pinheiro sell their (R$ million) (R$ million) 14 2,982 3,191 4,256 33 9 Corporate Credit Portfolio Payroll-deductible Loan Portfolio stake in BMC and found PINE 52 184 222 341 521 620 755 663 761 1,21 - - - - 80 61 55 119 245 552 1,23 1,029 475 177 98 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 Sep-11 May, 2007 IPO Investor Relations | 3Q11 | 8/37
- 10. Competitive Landscape PINE serves a niche market of companies with few banking options, seeking a bank that fully understands their demands. Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for companies Large Multi-service banks PINE Corporate sector mid-sized banks Opportunity to grow operations Wholesale Bank Only 10 clients per officer PINE: focused on providing complete service to companies, offering customized products. Competitive Advantages: 9 Fast response: Credit committee twice a week and answer to clients in up to 1 week 9 Specialized services Foreign Banks 9 Tailor-made solutions 9 Products diversity Mid-sized banks Investor Relations | 3Q11 | 10/37
- 11. Focus on the Client The bank develops a strategy of product diversity, tailored to meet the needs of each client… CDIs Interest Rates CDs LCIs CCBs Private Placements Currency Commodities CDBs RDBs LCAs Eurobonds Financial Letters Local Currency Pricing of Assets and Liabilities CRIs Debentures Equities Working Capital Overdraft Foreign Currency Distribution Treasury Liquidity Management Trading Working Capital Underwriting Accounts BNDES Onlending Bank Guarantees Compror/Vendor ACC/ACE Clients Corporate Credit PINE Investimentos Capital Markets Advisory Local Currency Onlending Foreign Currency g Corporate Finance Asset M&A S d/ Bank Guarantees Exclusive Funds Export Finance Finimp Letters of Credit 2 770 onlending Hedging Desk Fixed Income Currency Trade Finance Credit Funds Management Wealth Management Structured/ Project Finance Portfolio Management Swap NDF Structured Swaps 2,770 Syndicated and Structured Loans Commodities Options Investor Relations | 3Q11 | 11/37
- 12. Corporate Credit ... aimed at diversification of credit instruments for companies... Actions Credit Committee Meeting frequency: twice a week Minimum quorum: 4 members - attendance of CEO or Personalized, agile service, working closely with clients and keeping a low company to officer ratio: each account manager handles only 10 economic groups on average. q Chairman is mandatory Members: Chairman of the Board Origination staff comprised of 76 people focused on specific geographic areas, providing the bank with local and extremely up-to-date credit intelligence. CEO Chief Corporate Banking Officer Chief Operations Officer Chief Credit Officer Relationship with more than 600 different economic groups Origination network is comprised of 10 branches divided into 14 business platforms in Brazil’s major economic centers Participants: CFO Chief Asset Management Officer Credit Analyst More than 30 credit analysts, assuring that analysis are based on industry-specific intelligence Efficient loan and collaterals processes, documentation, Other members of the Corporate Banking team and controls, which has resulted in NPL ratios at the lowest historical range pp Credit Approval: Electronic Process Origination Officers Credit Analysts Credit origination analysis clients Regional Heads of Origination and Credit Analysis Chief Credit Officer and Credit Analysts Presentation to the Credit Committee CREDIT COMMITTEE (5 Members) Centralized and unanimous Discussion on sizing sizing, collateral collateral, Credit analysis, visit to clients, data updates, interaction with internal research team decision making process structure, etc. Investor Relations | 3Q11 | 12/37
- 13. Hedging Desk ...offering hedging products that puts PINE as the 2nd largest commodities NDF provider*... Client Notional Derivatives Portfolio by Market Client Notional Derivatives Portfolio by Industry September 30th, 2011 Fixed Income 30% Sugar and Ethanol 17% Beverages and Tobacco 8% Transportation and Logistics 8% Textile and Apparel 5% Metal and Mining Currencies 3% Electric and Renewable Energy 3% Electronics 3% Infrastructure Commodities 10% 60% Foreign Trade 18% 2% Construction 2% Other 7% Notional: R$3.7 billion Agriculture 24% Market Segments Portfolio Profile Fixed Income: Fixed Floating Inflation Libor Scenario on September 30th: Duration: 209 days MTM: R$178 million Fixed, Floating, Inflation, Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar, Spot Stress Scenario (Brazilian Real-US Dollar R$2.40 and Commodities Price: -31%): Stressed MTM: R$417 million (potential credit risk exposure with clients) Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy *Source: Cetip Report of September. Investor Relations | 3Q11 | 13/37
- 14. PINE Investimentos and Distribution ...and adding value to companies, always optimizing the use of the Bank's capital. PINE Investimentos PINE Investimentos offers unique solutions for its clients in Capital Markets, Asset Management, Investment Management and Structured /Project Finance Investment Banking Investment Management Asset Management Fixed Income Funds Capital Markets Structuring and Corporate Finance M&A Wealth Management Portfolio Credit Funds Exclusive Mandates Placement of Securities Structured Transactions Strategic and Financial Advisory Structured / Project Finance Management Distribution Desk Local and Foreign Investors Family Offices Companies Financial Institutions Foreign Investors Individuals Asset Managers Pension Funds Investor Relations | 3Q11 | 14/37
- 15. Pillars A strategy supported by solid bases, built and achieved over the years… Adequate capital structure Strong and motivated team Meritocracy Incentives Qualification US$125 million subordinated debt, approved by the Brazilian Central Bank as Tier II capital in June/10 Regulatory Capital: R$ 1.3 billion (Sep/11) Capital Adequacy Ratio (BIS) of 19.6% (Sep/11) DEG and PINE partnership (Mar/11) Corporate clients Customized service In-depth knowledge of client needs Efficient funding structure Longer average maturities: 18 months (Sep/11) Greater diversification of funding sources Product diversity USD 106 million A/B Loan (Jan/11) R$ 300 million FIDC (Apr/11) Investor Relations | 3Q11 | 15/37
- 16. Rating Upgrades ...with market recognition and positive evaluation by rating agencies. On August 23rd 2011, Standard & Poor’s upgraded PINE’s rating as below: Local currency rating, to brA from brA-Reaffirmed the Rating in foreign currency in BB-/B Revision from PINE’s outlook to positive According to the agency, PINE has been successful in implementing its strategy of being a dedicated low corporate segment bank, diversifying its revenues and funding sources and maintaining good asset quality and adequate liquidity. S&P could raise the ratings if PINE continues expanding and improving its profitability while maintaining its liquidity and asset quality at current levels. On May 24th 2010, Fitch Ratings upgraded PINE’s rating as below: Foreign and Local Currency Long-Term IDR to 'BB-' from 'B+;’ National Long-Term Rating to 'A(bra)' from 'A-(bra)‘ National Short-Term Rating to 'F1(bra)' from 'F2(bra) Individual Rating to 'C/D' from 'D' According to the agency, "since the second half of 2009, Pine resumed focus on Corporate credit growth (...) and also expanded revenues from cross-selling with the Treasury, addressed to its customers, and services financial advisory””. On July 13th 2011, Austin Ratings upgraded PINE’s rating as below : Long-Term Rating to ‘A+’ from ‘A’; Reaffirmed the Short-Term Rating in ‘A-2’ According to the agency, “the rating upgrade is supported by the lower exposure of the bank’s balance sheet and earnings to to exogenous sector and regulatory factors.” Austin also emphasizes that “the bank has remained consistent with the strategy established, with a well-defined focus, aimed at increasing cross selling.” Investor Relations | 3Q11 | 16/37
- 18. 3Q11 Highlights Improvement on the major KPIs in the 3Q11… Net Income (R$ Million) 5.5% Corporate Net Income (R$ Million) 11.7% Shareholders' Equity (R$ Million) 10.0% 36.1 38.1 39.3 43.9 892 7 981.8 2Q11 3Q11 892.7 Jun-11 Sep-11 2Q11 3Q11 ROAE Corporate ROAE 110 bps Jun Sep Corporate Credit* (R$ Million) 4.5% 17.3% 17.3% 19.0% 20.1% 6,249 6,530 Jun-11 Sep-11 2Q11 3Q11 2Q11 3Q11 (*) Includes debentures Investor Relations | 3Q11 | 18/37
- 19. Product and Revenue Diversification ...with contributions from all business lines, as a result 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 66% 55% 40% 2.5 2.8 34% 45% 60% Sep-09 Sep-10 Sep-11 Sep-09 Sep-10 Sep-11 Corporate Income Breakdown 9M10 9M11 Corporate Credit 69 4% PINE Investimentos 4.2% Corporate Credit 65.9% PINE Investimentos 3.9% 69.4% Treasury 5.4% Treasury 4.9% Hedging Desk 21.0% Hedging Desk 25.3% Investor Relations | 3Q11 | 19/37
- 20. Credit Portfolio Credit portfolio evolution remained positive, posting a 4.5% growth in the quarter... 6 530 Corporate Credit Breakdown 78 558 97 71 746 534 601 751 (R$ Million) Private Securities* 4,794 5,265 5,747 5,792 6,249 6,530 Corporate credit portfolio grew 24.0% in 12 months. 455 629 833 871 902 872 511 634 842 827 1,022 1,117 1,372 1,534 695 728 764 705 Trade finance Bank Guarantees 3,416 4,118 4,462 2 284 2,703 2,821 2,792 3,251 3,358 3,132 3,126 3,300 87 176 242 350 Onlendings 2,284 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 (*) Includes debentures Working Capital ( ) 9 54 Total Credit Portfolio ** (R$ Million) Increase of the corporate loan portfolio, which represents 98.5% of the total credit portfolio. 4,089 4,731 4,960 5,188 5,601 6,016 6,022 6,439 6,65 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 (**) Includes corporate credit, debentures, remaining payroll-deductible loans and credit acquired from financial institutions Investor Relations | 3Q11 | 20/37
- 21. Credit Portfolio Profile ...growing in a diversified manner, both in sectors and products... C di P f li b S Geographic Distribution Mid-West 12% North 1% Credit Portfolio by Sector Agriculture 8% Transportation and Logistics 6% Foreign Trade 5% Meat packing 4% Specialized Northeast 5% Construction 8% Infrastructure 8% Services 4% Beverages and Tobacco 4% Southeast 75% South 7% Credit Portfolio by Product Trade Electric and Renewable Telecom 3% Vehicles and Parts Bank Guarantees 24% Finance 11% (*) Includes debentures Private Securities* 1% Sugar and Ethanol Energy 10% 3% Metal and Mining 3% Financial Food Industry Institutions 2% Onlendings 13% 17% 2% Other 13% Working Capital 51% Investor Relations | 3Q11 | 21/37
- 22. Credit Portfolio Quality ...with quality, collaterals and increased credit coverage. Credit Portfolio Quality – September 2011 Non Performing Loans Contracts Overdue Installments Overdue B 26.3% 2.1% .8% C 6.6% D E 1. 1.1% 0.5% 0.4% 0.4% 0.7% 0.5% 0.5% 0.3% 0.2% 0.2% More than 15 days More than 30 y y days y y y y More than 60 days More than 90 days More than 120 days More than 180 days AA-A 63.0% D-1.9% F-H 2.2% Total Credit Coverage Collaterals 120 bps 20 bps Receivables 35% Property Pledge 18% 1.7% 2.7% 2.9% Products Pledge Investments 43% Sep-10 Jun-11 Sep-11 4% Investor Relations | 3Q11 | 22/37
- 23. Funding Funding is growing with quality and diversity... On September, 2011: Local funding: 77% Offshore Funding: 23% Trade Finance growth in the quarter 38.1% F di Mi Capital Market 6,098 377 596 814 200 160 282 267 310 166 179 155 84 86 203 194 194 185 204 237 Funding Mix (R$ Million) Private Placements / Others Multilateral Lines Trade Finance 5,375 4,871 4,531 4,634 5,589 5,447 5,780 14969 214 212 228 42 41 53 66 201 224 320 272 209 165 176 242 453 626 829 867 898 867 419 330 249 192 152 125 92 71 527 525 448 405 413 435 225 230 239 227 72 77 87 151 108 75 276 Loan Assignments BNDES 3,852 529 840 1,123 1,064 1,124 1,432 1,559 1,114 1,287 1,253 89 91 85 175 218 63 39 50 36 85 206 248 87 Interbank deposits Demand deposits Individuals 1,225 1,570 1,566 1,646 1,683 1,564 1,736 1,878 2,000 Corporate Clients Institutional Foreign Funding – Multilateral Agencies A/B Loan (January, 2011) Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 US$106 Million Investor Relations | 3Q11 | 23/37
- 24. Funding and Credit Portfolio Maturities ... posting a 4 months positive gap between credit and funding… R$ million Credit Funding 2,866 ,798 24 547 2,129 500 - 1 1,32 458 168 66 1,5 1,5 604 402 No maturity Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years More than 5 years (includes Cash) Average Maturity Credit: 14 months Funding: 18 months Investor Relations | 3Q11 | 24/37
- 25. Capital Adequacy Ratio (BIS) ...while BIS ratio grew 300 bps versus 2Q11, reaching 19.6% in 3Q11. BIS Tier II Tier I 17.2% 18 5% 18.4% 11% Minimum Regulatoty Capital 19.6% 0.5% 0.5% 0.5% 3.9% 3.6% 3.6% 3.7% 3.4% 4.5% . % 15.6% 14.9% 18.5% 8. % 17.4% 17.1% 16.6% 16.7% 15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2% 15.1% Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 The main effects on BIS – September vs. June Operational Risk Assessment: up 1.4% Capital increase from DEG: up 0.7% Local Bond s bordination: p 0 2% R$ thousand BIS Ratio Tier I 979,938 15.1% Tier II 295,716 4.5% subordination: up 0.2% , Total 1,275,654 19.6% Investor Relations | 3Q11 | 25/37
- 26. Balance Sheet Strength In summary, PINE has buffers of liquidity, capital and credit portfolio coverage. Total Loan Credit Coverage Ratio 4% .7% 2.7% 2.9% 1.7% 2.4 2 2 Sep Sep-10 Dec Dec-10 Mar Mar-11 Jun Jun-11 Sep Sep-11 Capital Cash/Time Deposits Regulatoty Capital 11% Minimum Regulatoty Capital 40% 43% 42% 42% 41% 18.4% 17.4% 17.1% 16.6% 19.6% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Investor Relations | 3Q11 | 26/37
- 27. Corporate Governance and Shares
- 28. Organizational Structure Non-bureaucratic structure and flat hierarchy, speeding the decision taking process. Noberto Pinheiro Chairman Noberto N. Pinheiro Jr. Vice Chairman Maurízio Mauro Independent Member Mailson da Nóbrega Independent Member Antonio Hermann Independent Member Board of Directors Fernando Albino External Member Internal Audit Tikara Yoneya External Audit PwC Fiscal Council Sidney Veneziani Sérgio Machado Operational Risk & Compliance Alcindo Itikawa CEO Noberto N. Pinheiro Jr. Planning and Control Susana Waldeck Sales & Trading Norberto Zaiet Jr. Credit Gabriela Chiste Operations Ulisses Alcantarilla Corporate Banking Clive Botelho Asset Management Gustavo Junqueira Origination Platform : • São Paulo • Campinas • Ribeirão Preto Corporate Credit • Analysis and granting of credit • Credit risk monitoring and analysis by sector Fixed Income Research Market and liquidity Risks Human Resources Accounting Controlling Tax Planning Processing and Formalization • Local • Offshore Legal Delinquency C t B ki Trading Desk Hedging Desk • Fixed Income • Currencies • Commodities International I Rl i Advisory Structured Finance Investment Management Wealth Management • São José do Rio Preto • Rio de Janeiro • Curitiba • Porto Alegre • Belo Horizonte • Recife • Fortaleza Marketing IT Accounts Payable Product Control Corporate Banking Middle Office Investor Relations Macro and Commodities Research Funding Capital Markets Distribution P d t • Tangará da Serra Products Investor Relations | 3Q11 | 28/37
- 29. Corporate Governance PINE adopts the 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 Fernando Albino de Oliveira: Former Director of the CVM and a partner at Albino Advogados Associados Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association São Paulo Stock Exchange (BM&FBovespa) Level 1 Corporate Governance Fiscal Council 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation cases First bank to release BR GAAP and IFRS simultaneously and quarterly Investor Relations | 3Q11 | 29/37
- 30. Committees …favoring collegiate decision making. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge and information Transparency Board of Directors Fiscal Council PwC Executive Committee Treasury Committee (ALCO) Products Committee Credit Committee Internal Controls and Audit Delinquency Committee Corporate Finance Committee Committee Cayman Committee Performance Evaluation Committee Ethics Committee IT Committee Human Resources Committee Risks Committee Investor Relations | 3Q11 | 30/37
- 31. Capital Increase DEG, member of KfW Bankengruppe, second largest German bank, concluded on September 9th, the subscription of PINE`s capital of 2.94%. The capital increase of PINE will be the first equity investment by DEG in a Brazilian financial institution. The agreement will expand the capital structure of PINE and collaboration between the two institutions . Main issues: Price per share: R$17.20 Total Shares: 2,543,604 preferred shares Total Amount: R$43,749,988.80 After approval by the Brazilian Central Bank, the ownership structure will have the following composition: Base 10/19/11 Common Preferred Total % Controlling Shareholder 4 5,443,872 14,370,556 59,814,428 69.1% Management - 2,753,446 2,753,446 3.2% Free Float - 24,010,134 24,010,134 27.7% Individuals * - 4,525,343 4,525,343 5.2% Institutional Investors - 9,002,817 9,002,817 10.4% Foreign Investors - 7,938,370 7,938,370 9.2% DEG * - 2,543,604 2,543,604 2.9% Total 45,443,872 41,134,136 86,578,008 * The shares related to the capital increase that took place in September are pending approval by the Central Bank. Investor Relations | 3Q11 | 31/37
- 32. Dividends PINE pays dividends/interest on own capital on a quarterly basis. Dividends and Interest on Own Capital (R$ Million) 16 25 25 33 45 30 35 40 35 15 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 3Q11 Investor Relations | 3Q11 | 32/37
- 33. Appendix
- 34. Social Responsibility Banco PINE supports and promotes Brazilian culture Social Casa Hope Instituto Alfabetização Solidária Culture Diário de Navegação: addresses the first years of the occupation of the Brazilian coast by the Portuguese colonizers Instituto Casa da Providência Hospital Pequeno Príncipe GRAACC - Grupo de Apoio ao Adolescente e à Criança com Câncer Colégio Mão Amiga Paulo von Poser: exhibit of the painter Paulo von Poser, who is one of the main figures in Brazilian art Teatro Cultura Artística: it is one of the sponsors of the project for the renovation of the Cultura Artística Theater Sports Minas Tênis Clube: training program for thl t Quebrando o Tabu: documentary based on the analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against drugs athletes Além da Estrada: motion picture picture, which Tênis Sobre Rodas: a project conducted by the Brilho Brasileiro Institute founded by tennis player Vanessa Menga, which benefits 80 disabled tennis players received the award for best director in the 2010 Rio Festival Responsible Credit Green Building “Lists of Exceptions”: the Bank does not finance – with multilateral organizations lines - projects or those organizations that damage the environment, are involved in illegal labor practices or produce, sell or use products, substances or activities considered prejudicial to society. System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally-d d produced t i bilit sustainability t reports f for t corporate loans. Investor Relations | 3Q11 | 34/37
- 35. Ratings Moody’s Standard & Fitch Ratings Riskbank LF Rating Austin Poor's nd Foreign rrency Long Term Ba2 BB- BB- - - - Short Term B B - - - Local an Cur Long Term Ba2 BB- BB- - - - Short Term B B - - - Brazil National Scale Long Term A1.br brA A(bra) 10.78 Low Risk for the Medium Term (-) A+ A+ Short Term Br-1 F1(bra) Investor Relations | 3Q11 | 35/37
- 36. Key Performance Indicators 3Q11 2Q11 3Q10 9M11 9M10 Earnings and Returns Net Income (R$ thousand) 38,061 36,084 37,596 105,595 103,372 Annualized ROAE 17.3% 17.3% 18.6% 15.5% 16.6% Annualized ROAAw1 2.5% 2.5% 3.0% 2.4% 2.8% Annualized financial margin before provision 6.0% 6.6% 8.1% 6.2% 7.1% Annualized financial mergin after provision 5.2% 5.8% 7.1% 5.4% 6.5% Balance Sheet (R$ thousand) Total credit portfolio2 6,654,354 6,439,157 5,601,470 6,654,354 5,601,470 Corporate credit and private securities3 6,529,892 6,248,697 5,265,410 6,529,892 5,265,410 Risk weighted assets 6,214,582 6,026,322 5,206,221 6,214,582 5,206,221 Total deposits4 3,676,446 3,605,498 3,584,541 3,676,446 3,584,541 Total funding 6,097,571 5,780,490 5,374,700 6,097,571 5,374,700 Shareholders' equity 981,779 892,700 872,761 981,779 872,761 Credit portfolio quality Non performing loans - 15 days 0.7% 0.3% 0.8% 0.7% 0.8% Non performing Loans - 60 days 0.5% 0.2% 0.6% 0.5% 0.6% Non performing loans - 90 days 0.3% 0.2% 0.5% 0.3% 0.5% Credit coverage 2.9% 2.7% 1.7% 2.9% 1.7% Performance BIS ratio 19.6% 16.6% 18.4% 19.6% 18.4% Efficiency ratio 38.8% 40.8% 31.8% 39.7% 34.7% Earnings per share (R$) 5 0.44 0.43 0.45 1.22 1.24 Book value per share (R$) 5 11.34 10.62 10.47 11.34 10.47 (1) Risk weighted assets. (2) Includes bank guarantees, debentures and the remaining retail portfolio. (3) Includes bank guarantees and debentures debentures. (4) Includes Agribusiness Letter o f Credit. (5) Includes shares subscribed in the capital increase, still pending on approval o f the Central Bank. Investor Relations | 3Q11 | 36/37
- 37. Investor Relations Norberto Zaiet Junior CFO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Alexandre Cavalcanti Investor Relations Manager Phone: +55-11-3372-5553 www.bancopine.com.br/ir ir@bancopine.com.br This presentation contains forward-looking statements related to business prospects, estimates for operating and financial results, and estimates related to prospects for growth at Banco Pine. These are merely projections and as such are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents, and are, therefore, subject to change without prior notice. Investor Relations | 3Q11 | 37/37