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1Q10 Institutional Presentation

Banco PINE is a Brazilian bank that focuses on providing financial services to companies with annual revenues over R$150 million. It has a history dating back to 1939 and focuses on relationship-driven and customized services. In the first quarter of 2010, Banco PINE maintained its solid position through agile management of risks during the economic crisis, with a continued focus on cross-selling opportunities to existing corporate clients.

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Institutional Presentation 1Q10
Investor Relations | 1Q10 2/38 History and Profile Banco PINE at a Glance History of Banco PINE Management of the Crisis Agility in Granting Credit Strategies for the Current Scenario Market Positioning Organizational Structure Cross-Selling Opportunities 1Q10 Results Corporate Governance and Shares Corporate Governance Main Committees Shares Breakdown Shares Dividends Social Responsibility Appendix Agenda
History and Profile
Investor Relations | 1Q10 4/38 PINE excels at providing financial services to Companies Banco Pine at a Glance Credit Portfolio by Customers’ Annual Revenues A1.br Brazil national scale Ba2 Long/short-term foreign and local-currency deposit Focused on serving companies with annual revenues above R$150 million, offering a complete range of financial products in local and foreign currency Total assets of R$7.8 billion Total credit exposure of R$ 5.0 billion Relationship-driven, agile and service-oriented Strong team, with correct incentives in all areas of operation Shareholders’ Equity of R$839 million PINE4: traded at BMF&Bovespa Level 1 Corporate Governance Solid Credit Br A- Brazil national scale BB- Long/short-term foreign and local-currency deposit A(bra) Brazil national scale BB- Long/short-term foreign and local-currency deposit March 31, 2010 Over R$ 1 BI 50% R$ 500 MM to R$ 1 BI 22% R$ 150 MM to R$ 500 MM 16% Up to R$ 150 MM 12%
Investor Relations | 1Q10 5/38 1939 – Pinheiro Family founds its first bank in Brasil – Banco Central do Nordeste 1975 - Noberto Pinheiro becomes one of the contolling shareholder of Banco BMC 1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE 2005 - Noberto Pinheiro becomes Banco PINE´s sole shareholder 2007 – Start up of Cayman branch and IPO 2009 - Foundation of PINE Investimentos 1997 Foundation of Banco PINE Sole focus on Corporate Lending History of Banco PINE Founded in 1997, Banco PINE has been showing a track record of resilient development 2004 Opportunity Identified in the payroll loan segment 2007 IPO Cayman Branch Decision to deleverage payroll lending 2005 Noberto Pinheiro becomes Banco PINE’s sole shareholder Strategic decision of exiting the payroll-loan business, at the end of 2007 CORPORATE 100% focused on the Bank’s traditional core business Agile, complete and customized services for Companies Cross-Selling: diversified and sophisticated products PAYROLL-LOAN Reduced margins Increased competition Excessive regulation Scale needs Lack of cross-selling opportunities Excessive lengthening of maturities End of pre-payment fee 1939 Foundation of Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of the BMC’s controlling shareholder 2009 Foundation of PINE Investimentos
Investor Relations | 1Q10 6/38 Management of the Crisis Agile and specialized management to overcome the crisis Banco PINE’s strengths for managing the crisis: No dependency upon long-term funding. Deleveraging of payroll loans and auto loans “pilot project”, before the crisis Strict policy of matching assets and liabilities, combined with agility and efficiency in managing cash position Repurchase of own shares and MTN bonds Focus on companies with solid fundamentals and close relationship with clients Strong credit analysis, structuring and monitoring of the collateralized credit portfolio Strong risk controls and very low market risk exposure (Average VaR of R$1.4 million in 1Q10) Lack of leveraged derivatives exposure Cross sale of credit products and financial services *Effective cash position at the last day of each period. 37% 33% 40% 51% 45% 47% 37% 34% Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Cash Position / Time Deposits* 1,967 1,841 1,243 1,334 1,756 2,154 2,784 2,715 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Time Deposits+ Agribusiness Letter of Credit (R$ Million) 5,047 4,885 4,264 3,873 3,922 4,113 4,753 4,980 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Total Loan Portfolio (R$ Million)
Investor Relations | 1Q10 7/38 Agility in Granting Credit 72-hour process in average; credit analysis may be concluded within 1 business day in special cases Reports on credit visits and loan transactions structuring Credit analysis, visits to clients, data update, interaction with internal research team and issue of opinion Issue of opinion Presentation of proposals to the Committee CREDIT COMMITTEE Electronic Process Sales Officer Credit Analyst Platform and Regional Superintendents Chief Credit Officer and Credit Analysts Strong origination team Relationship close to clients and business with high renewal ratio among clients/repeat businesses Cross sale of credit products and financial services Diligent and complete credit analysis Expertise and flexibility in credit structuring Close monitoring of borrowers’ credit evolution Agile credit decision making process Management of receivables portfolio risks and collaterals quality Efficient loan process, documentation and controls
Strategies for the Current Scenario
Investor Relations | 1Q10 9/38 Simple structure and flat hierarchy Organizational Structure Operating Risk & Compliance Pine Investimentos Gustavo Junqueira Control and Market/ Liquidity Risk Susana Waldeck Financial & Products Norberto Zaiet Jr. Corporate Sales Clive Botelho Internal Auditors Tikara Yoneya External Auditors Deloitte Noberto Pinheiro Chairman Noberto Pinheiro Jr. Vice-Chairman Maurizio Mauro Independent Member Fernando Albino External Member Mailson da Nóbrega Independent Member Board of Directors Sidney Veneziani Sérgio Machado Alcindo Itikawa Fiscal Council CEO Noberto N. Pinheiro Jr. Credit Risk & Research Gabriela Chiste Corporate Operations Ulisses Alcantarilla Corporate • Loan Portfolio R$4.4 billion • 430 Clients • São Paulo • Ribeirão Preto • São José do Rio Preto • Rio de Janeiro • Curitiba • Porto Alegre • Belo Horizonte • Recife Corporate Credit • Analysis and granting of credit • Credit risk monitoring and analysis by sector Treasury • Local • International • Clients Funding • Local • International International • Cayman • Trade Finance Macro Research Products Investor Relations Market and liquidity Risk Human Resources Accounting Controlling Department Credit Structuring Credit Funds Financial Advisory Private Equity Distribution Corporate Processing and Formalization Legal
Investor Relations | 1Q10 10/38 Large multiple banks Wholesale mid-size banks Poorly served segment Banco PINE: focused on corporate loan, offering tailor-made sophisticated products with transparency and agility. Mid-sized banks Foreign Banks Large banks consolidation process have reduced clients’ credit limits Market Positioning PINE is positioned in a segment poorly served in the local market Foreign banks have reduced their risk appetite after the global financial crisis
Investor Relations | 1Q10 11/38 Strategies for the New Scenario Loan portfolio expansion and cross-selling opportunities Challenges for the New Scenario: Lower interest rates & volatility Capital optimization: Stronger leveraging Cross-selling: More products per client Corporate Loans Loans Overdraft accounts Discounts Compror/Vendor Linked Collection Foreign Exchange / Trade Finance Exports ACC/ACE Letter of Credit Documentary Collection Prepayment Imports Letter of Credit Advance Payments Documentary Collection Spot Foreign Exchange Foreign currency loans and investments Loans (2,770) Foreign Lending Foreign Investments Onlending FINAME Automatic Manufacturer Agribusiness Others EXIM Pre-shipping Special Pre-shipping Post-shipping Automatic BNDES FINEM Guarantees Bidding Public tenders Performance Credit/Financial Institutions Treasury Currencies Rates Commodities Equities Macro Advisory Investments Local Currency CDB/ RDB Government Bonds FIDC (Receivables Investment Funds) CDI (Interbank Deposit Certificate) LCA (Agribusiness) Credit Funds Private Equity Foreign Currency CD -Certificate of Deposit Demand Deposit Accounts Eurobonds Custody Account Money Market Accounts Time Deposit Private Equity PINE Investimentos Underwriting and Syndicated Loans Private Equity Credit Funds Advisory
Investor Relations | 1Q10 12/38 Positioning of our business: “More than selling products, our mission is to understand the needs of our clients in order to provide solutions for their businesses, strengthening the relationship” Client Selection Business Analysis Visits Strategies Sharing of Information Visits Information Analysis Planning of actions and executions Offer to Client Cross-selling Strategy for creation of a cross-selling culture
Investor Relations | 1Q10 13/38 Cross-Selling Opportunities PINE Investimentos Clients’ Dealing Desk Clients’ Dealing Desk offers alternatives for mitigating market risk mismatches, giving more predictability to clients’ balance sheets Markets Currencies Derivatives Commodities Derivatives Interest Derivatives FX Others Products Non Deliverable Forward Options Swap Structure Options Double Indexed time deposits Low exposure to market risks It does not offer exotic and/or leveraged derivatives VaR, on March 31, R$1,160 thousand Average VaR in the quarter R$ 1,439 thousand Creation of new values for clients and optimization of the Bank's capital usage Third-parties Asset Management Credit Funds Private Equity Funds Corporate Services Mergers & Acquisitions Financial Advisory Credit Structuring Syndicated Loans Banco PINE’s current partnerships include: Private Equity Fund in association with the American Global Emerging Market Fund (GEM) Financial advisory services provided together with Pátria Investimentos Exclusive credit funds Additional products to our core business, credit to Companies
1Q10 Results
Investor Relations | 1Q10 15/38 1Q10 Highlights Banco PINE continued to grow its deposits and its loan portfolio, with better quality 10.1% 10.7% 15.3% 1Q09 4Q09 1Q10 ROAE 460 bps 520 bps D QoQ D YoY 30,842 38,223 47,880 1Q09 4Q09 1Q10 Operating Income (R$ Thousand) 25.3% 55,2% D QoQ D YoY 2,842 4,118 4,462 Mar-09 Dec-09 Mar-10 Corporate Loan Portfolio (R$ Million) 8.3% 57.0% D QoQ D YoY 14,187 7,097 4,800 1Q09 4Q09 1Q10 Provisions for Loan Losses (R$ Thousand) (Excludes additionals and reversions) -32.4% -66.2% D QoQ D YoY 1,553 3,029 3,013 Mar-09 Dec-09 Mar-10 Total Deposits + Agribusiness Letter of Credit (R$ Million) -0.5% 94.1% D QoQ D YoY 1.6% 0.7% 0.7% Mar-09 Dec-09 Mar-10 Non-Performing Loans -90 bps D QoQ D YoY
Investor Relations | 1Q10 16/38 Balance Sheet The on-book loan portfolio posted a 5.1% increase in the quarter R$ million Mar-10 Dec-09 Mar-09 Assets 7,792 6,984 5,537 Securities and derivative financial instruments 2,968 2,761 2,344 Lending operations 3,996 3,802 2,769 (-) Allowance for loan losses (67) (76) (97) Net lending operations 3,929 3,726 2,672 Other 895 497 521 Liabilities 6,953 6,159 4,718 Deposits 2,735 2,784 1,520 Money market funding 2,236 1,600 1,483 Funds from acceptance and securities issued 817 815 855 Other 1,165 960 860 Shareholders' equity 839 825 819 Liabilities and Shareholders' equity 7,792 6,984 5,537
Investor Relations | 1Q10 17/38 Results Operating Income grew 25.3% in 1Q10 R$ thousand 1Q10 4Q09 1Q09 Gross income from financial intermediation 78,187 132,343 68,970 Fee Income 13,245 20,590 11,341 Personnel expenses (10,989) (11,488) (10,522) Administrative expenses (18,855) (20,896) (20,764) Tax expenses (7,289) (6,752) (6,136) Other operating income / expenses (6,419) (75,574) (12,047) Operating Income 47,880 38,223 30,842 Non-operating income - (512) 1,317 Income before taxes and profit sharing 47,880 37,711 32,159 Income and social contribution taxes (12,451) (15,355) (8,689) Profit sharing (5,258) (1,208) (3,400) Net income 30,171 21,148 20,070 Annualized ROAE 15.3% 10.7% 10.1%
Investor Relations | 1Q10 18/38 Loan Portfolio The corporate loan portfolio recorded 8.3% growth in 1Q10 and 57.0% in 12 months 3,873 4,753 4,980 Mar-09 Dec-09 Mar-10 Total Loan Portfolio (R$ Million) 4.8% 28.6% D QoQ D YoY 75% 89% 92% 25% 11% 8% Mar-09 Dec-09 Mar-10 Loan Portfolio Mix Individuals Corporate 1,767 2,703 2,822 72 176 242 43 21 19 688 707 745 272 511 634 Mar-09 Dec-09 Mar-10 Corporate Loan Portfolio Mix (R$ Million) Guarantees Trade Finance Resolution 2770 BNDES onlendings Working Capital 8.3% 57.0% 2,842 4,118 4,462 D QoQ D YoY
Investor Relations | 1Q10 19/38 Loan Portfolio by Product Guarantees Loan Portfolio - Corporate Banco PINE operates in the major sectors of the economy and offers a full range of credit products Operations in Major Sectors of Economy Sugar and Ethanol 15% Infrastructure 12% Energy 12% Agriculture 8% Vehicles and Autoparts 6% Financial Institutions 5% Construction 5% Logistics 5% Specialized Services 4% Pharmaceuticals 3% Meat Processing 3% Metallurgy 3% Mining 3% Trade Finance 2% Medical Services 2% Other 12% Working Capital 63% BNDES onlendings 5% Resolution 2770 1% Trade Finance 17% Guarantees 14% Receivables 38% Product Fiduciary Alienation 27% Investments 6% Property Fiduciary Alienation 8% Promissory Notes 16% Payroll 5%
Investor Relations | 1Q10 20/38 Loan Portfolio - Quality The coverage of the overdue portfolio reached 225% in March 2010 0.00% 1.95% 0.30% 0.91% 0.11% 0.65% 0.96% 1.00% 0.60% 0.90% 0.71% 0.67% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mar-10 Real Devaluation Nasdaq WTC Brazilian Elections Banco Santos Liquidity Crisis Global Financial Crisis Credit Portfolio Quality D-H Overdue Portfolio/ Total Portfolio AA, 23.0% A, 52.2% B, 19.5% C, 3.5% D-E, 0.5% F-H, 1.3%
Investor Relations | 1Q10 21/38 Provisions for Loan Losses Due to better quality of the portfolio, the Bank decided to reverse the remaining additional provision recognized in 4Q08 R$ thousand Provisions for Loan Losses History of Provisions for Loan Losses Settlement of some operations, in some cases after mergers or acquisitions Low number of clients with overdue credit in the quarter Expectation of positive credit cycle in 2010 1Q10 4Q09 3Q09 2Q09 1Q09 4Q08 Accounting Provisions (1,300) 7,203 (20,298) (22,043) (14,187) (46,547) Aditional Provisions - - - - - 20,600 Reversal (3,500) (14,300) - (2,800) - - (4,800) (7,097) (20,298) (24,843) (14,187) (25,947) Total Provisions for Loan Loses
Investor Relations | 1Q10 22/38 Loan Portfolio - Individuals Above 50% reduction of individuals loan portfolio in a year, in line with the strategy of discontinuing payroll loans BUSINESS’ EXPENSES Prepayment of loan transactions Provisions for loan losses Personnel and administrative expenses (including expenses with the payroll insurance and commissions) EXPECTATION TO REDUCE THE CREDIT AT AN ACCELERATED PACE Expenses related to this business should be reduced until the end of 2010 THE EXIT STRATEGY OF THE PAYROLL LOAN BUSINESS IS NEARING A CONCLUSION 832 441 351 93 56 48 Mar-09 Dec-09 Mar-10 Individuals Loan Portfolio Mix(R$ Million) On book Off book 925 497 399 -19.8% -56.9% D QoQ D YoY
Investor Relations | 1Q10 23/38 Funding Diversified sources of funding Comfortable funding situation Subordinated Notes Joint Bookrunners Public Offering 2010 US$ 125 Million Foreign Funding - Private Issuances US$ 33.6 Million US$ 35.5 Million US$ 52.8 Million US$ 39.9 Million US$ 20.0 Million 1,553 3,029 3,013 832 441 351 712 586 521 382 242 447 143 229 296 Mar-09 Dec-09 Mar-10 Funding Mix (R$ Million)) Borrowings and onlendings Funds from Acceptance and Securities Issued Trade Finance / Cayman Loan Assignments Total Deposits 2.2% DQoQ 27.8% DYoY 3,622 4,527 4,628 3,622 4,527 4,628 1Q09 4Q09 1Q10 Total Funding (R$ Million) 2.2% 27.8% D Tri D Ano
Investor Relations | 1Q10 24/38 Funding vs. Credit and Cash Position Due to the issuance of subordinated debt made in 1Q10, the average term of funding increased to 16 months, compared with 11 months for the loan portfolio (1) It does not consider Shareholders Equity Type of Asset Funding Time Deposits Corporate Domestic Loans Corporate BNDES On-lending BNDES On-lending Corporate International Loans FX Lines Debt Bonds – Senior and Subordinated Up to 3 months (includes Cash) R$ 1,886 3 to 12 months R$ 1,662 1 to 3 years R$ 1,654 3 to 5 years R$ 47 Over 5 years R$ 3 Credit + Cash Position With no Maturity R$ 50 Up to 3 months R$ 1,674 3 to 12 months R$ 1,141 1 to 3 years R$ 1,325 3 to 5 years R$ 198 Over 5 years R$ 240 Funding(1)
Investor Relations | 1Q10 25/38 BIS Ratio BIS ratio was 14.9%. Including the new issuance, this ratio would be 18.7% Equity (R$ Thousand) Basel Ratio % Tier I 836,448 14.4% Tier II 29,282 0.5% Total 865,730 14.9% Tier II (new issuance) (1) 222,525 3.8% BIS (including new issuance) (1) 1,088,255 18.7% (1) The issuance of subordinate notes occured in February, 2010. Waiting for authorizatio n of the Brazilian Central Bank to be incorporated into Banco PINE's Tier II
Corporate Governance and Shares
Investor Relations | 1Q10 27/38 Corporate Governance Banco PINE adopts the best corporate governance practices Clear Policies Performance Monitoring Risk Management Settlement of Responsibilities Alignment of Internal Policies Compliance with Legislation and interests Two independent members and one external member in the Board of Directors Mailson Ferreira da Nóbrega: Finance Minister of Brazil from 1988 to 1990 Maurizio Mauro: CEO of Booz Allen Hamilton and Grupo Abril Fernando Albino de Oliveira: ex-director of CVM and partner of Albino Advogados Associados São Paulo Stock Exchange Level 1 of Corporate Governance Fiscal Council 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation
Investor Relations | 1Q10 28/38 Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge and information Transparency Main Committees Banco PINE believes that the use of the best corporate governance practices substantially enhances its business‟ outcome Board of Directors Fiscal Council Audit Support Committee Treasury Committee (ALCO) National and Foreign Funding Products Committee Credit Committee Retail Committee Delinquency Committee Compliance and Basel Risk Committee Executive Committee Performance Evaluation Committee Ethics Committee IT Committee Human Resources Committee PINE Investimentos Committee
Investor Relations | 1Q10 29/38 Shareholders’ Structure The management holds 3.3% of the total shares ON PN Total % Noberto Nogueira Pinheiro 45,443,872 14,338,627 59,782,499 70.0% Management - 2,817,955 2,817,955 3.3% Free Float - 20,733,812 20,733,812 24.3% Subtotal 45,443,872 37,890,394 83,334,266 - Treasury - 2,074,839 2,074,839 2.4% Total 45,443,872 39,965,233 85,409,105 100.0% Base: 03/31/2010
Investor Relations | 1Q10 30/38 Dividends On March 31, 2010, the total amount of R$ 15.0 million in interest on own capital and dividends were paid to shareholders R$ million R$ Gross Value Total Value Value per Share Interest on own capital 12.1 0.145294 Dividends 2.9 0.034704 Total paid in 1Q10 15.0 0.179998 Since 2008, Banco PINE has paid quarterly dividends/interest on own capital quarterly
Investor Relations | 1Q10 31/38 Social Casa Hope Instituto Alfabetização Solidária Instituto Sedes Sapientiae Instituto Casa da Providência Charity Day - ICAP Brasil CTVM Sports Minas Tênis Clube: training program for athletes Passe de Mágica: created in 2004 by Magic Paula and Branca, former Brazilian basketball players, to offer basketball instruction for children Projeto Rede Atletismo Novos Talentos: (New Talent Athletics Network Project) training program for athletes developed and maintained by the Aquarela Foundation LOB do Tênis Feminino: development of women's tennis in Brazil at the level of global competitiveness Social Responsibility Banco PINE supports and promotes the Brazilian culture Culture A Cidade e a Rosa: retrospective of the artist Paulo Von Poser Diário de bordo de Pero Lopes de Sousa e a viagem de Martim Afonso de Sousa (1530- 1532): expedition that resulted in the foundation of São Vicente, Brazil’s first settlement Responsible Credit “Lists of Exceptions”: the Bank does not finance 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-produced sustainability reports for corporate loans. Green Building
Appendix
Investor Relations | 1Q10 33/38 Global Foreign Currency Long Term Outlook Local Currency Long Term Outlook National Long Term Short Term Outlook Bank Financial Strength Ba2 Stable Ba2 Stable A1.br Br-1 Stable D A BB-B Stable BB-B Stable br A-Stable Global Foreign Currency Long Term Short Term Outlook Local Currency Long Term Short Term Outlook National Long Term Outlook 10.27 Low Risk for Medium Term (-) Global Foreign Currency Long Term Short Term Outlook Local Currency Long Term Short Term Outlook National Long Term Short Term Outlook Individual Support BB-B Stable BB-B Stable A(bra) F1(bra) Stable C/D 5 Ratings Solid credit structure
Investor Relations | 1Q10 34/38 Macroeconomic Scenario Challenge for the new scenario: economic growth and interest rate below historic rates Brazil: Main Economic Indicators - Banco Pine ECONOMIC INDICATORS (basis scenario: 75% of probability) 2002 2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012-15 (F) Real GDP growth rate (%) 2.7% 1.1% 5.7% 3.2% 4.0% 5.4% 5.1% -0.2% 6.4% 5.2% 5.0% R$:US$ end of the period (nominal) 3.54 2.91 2.67 2.34 2.14 1.79 2.40 1.75 1.73 1.90 1.62 R$:US$ average (nominal) 2.99 3.06 2.92 2.44 2.18 1.95 1.84 2.00 1.80 1.86 1.75 BR inflation (IPC / IPCA) 12.5% 9.3% 7.6% 5.7% 3.1% 4.5% 5.9% 4.3% 5.6% 5.0% 4.0% BR inflation (IGP-M) 25.3% 8.7% 12.5% 1.3% 3.8% 7.7% 9.8% -1.7% 8.0% 6.0% 5.0% BR interest rate (Selic, end of the period) 25.0% 16.5% 17.8% 18.00% 13.25% 11.25% 13.75% 8.75% 12.50% 10.50% 8.50% BR interest rate (Selic, average) 19.5% 23.1% 16.4% 19.15% 15.06% 11.98% 12.54% 9.92% 10.46% 11.92% 9.50% Total external debt (US$bn) 196.0 200.0 185.0 154.0 156.0 166.0 170.0 169.9 174.5 183.0 188.0 Private(US$bn) 85.0 80.0 70.0 66.0 80.0 96.0 103.0 105.6 114.0 125.0 131.1 Public (US$bn) 111.0 120.0 115.0 88.0 76.0 70.0 67.0 64.3 60.5 58.0 56.8 External Reserves (US$bn) 38.0 49.0 53.0 54.0 86.0 180.0 207.0 239.0 270.0 320.0 450.0 Total external debt (% of reserves) 516% 408% 349% 285% 181% 92% 82% 68% 54% 50% 37% Private (% of reserves) 224% 163% 132% 122% 93% 53% 50% 42% 35% 33% 26% Public (% of reserves) 292% 245% 217% 163% 88% 39% 32% 26% 19% 17% 11% Trade balance (US$bn) 13.2 24.8 33.8 44.8 46.2 40.0 25.0 25.4 15.0 10.0 15.0 Current Account (US$bn) -7.6 4.2 11.7 14.0 13.6 1.5 -35.0 -24.3 -50.0 -55.0 -60.0 Current Account (% of GDP) -1.5% 0.8% 1.8% 1.6% 1.3% 0.1% -3.1% -2.4% -4.2% -4.9% -5.0% Primary Surplus (% of GDP) 3.5% 3.9% 4.2% 4.4% 3.9% 4.0% 4.3% 2.1% 2.8% 3.3% 3.3% Public sector net debt/GDP 55.5% 57.2% 51.8% 51.5% 45.0% 42.7% 37.0% 43.0% 41.0% 38.0% 39.0% Brazil Risk (bps, end of period) 1,439 463 383 311 194 221 450 224 150 80 50
Investor Relations | 1Q10 35/38 Financial Statements Highlights R$ million 6 6 26 50 97 49 2004 2005 2006 2007 2008 2009 Provisions for Loan Losses 19.8% 35.7% 23.0% 26.4% 16.3% 16.4% 10.3% 19.1% 15.1% 12.0% 12.5% 9.9% 2004 2005 2006 2007 2008 2009 ROAE ROAE Average Selic 43 49 86 141 151 120 2004 2005 2006 2007 2008 2009 Personnel and Administrative Expenses (excludes commissions) 32 68 63 150 133 85 2004 2005 2006 2007 2008 2009 Net Income Net Income Personnel and Administrative Expenses (excludes commissions) Provisions Loan Losses ROAE
Investor Relations | 1Q10 36/38 Balance Sheet Highlights R$ million *It includes Agribusiness Letters of Credit 1,386 1,991 3,215 5,700 6,176 6,984 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Assets 171 209 335 800 827 825 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Shareholders' Equity 421 553 853 1,951 1,462 3,029 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Deposits 18.2% 20.7% 19.2% 18.3% 19.3% 15.6% Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 BIS Ratio Total Assets Shareholders’ Equity Deposits* BIS Ratio
Investor Relations | 1Q10 37/38 Other Key Figures R$ million 782 1,324 2,077 4,325 4,264 4,753 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Loan Portfolio 759 1,341 2,085 3,623 3,737 4,527 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Funding 54% 41% 40% 54% 39% 67% 2% 28% 32% 28% 26% 10% 8% 6% 11% 7% 13% 36% 5% 25% 17% 11% 18% 13% 4% 4% 5% Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Funding Breakdown (%) Deposits Loan Assignments Securities Issued Other Funding Borrowings and Onlendings Total Funding Total Loan Portfolio Funding Breakdown 54% 41% 40% 54% 39% 67% 2% 28% 32% 28% 26% 10% 8% 6% 11% 7% 13% 5% 36% 25% 17% 7% 18% 13% 4% 4% 5% Dez/Dez/Dez/Dez/Dez/Dez/Mix de Captação (%) Depositos Cessão de Crédito Recursos, Aceites e Emissão de Títulos Trade Finance/Cayman Obrigações por Repasses
Investor Relations | 1Q10 38/38 Investor Relations Noberto Nogueira Pinheiro Jr. CEO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Analyst Phone: +55-11-3372-5553 www.bancopine.com.br/ir ir@bancopine.com.br This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of 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, 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.

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1Q10 Institutional Presentation

  • 1.
  • 2.
    Investor Relations |1Q10 2/38 History and Profile Banco PINE at a Glance History of Banco PINE Management of the Crisis Agility in Granting Credit Strategies for the Current Scenario Market Positioning Organizational Structure Cross-Selling Opportunities 1Q10 Results Corporate Governance and Shares Corporate Governance Main Committees Shares Breakdown Shares Dividends Social Responsibility Appendix Agenda
  • 3.
  • 4.
    Investor Relations |1Q10 4/38 PINE excels at providing financial services to Companies Banco Pine at a Glance Credit Portfolio by Customers’ Annual Revenues A1.br Brazil national scale Ba2 Long/short-term foreign and local-currency deposit Focused on serving companies with annual revenues above R$150 million, offering a complete range of financial products in local and foreign currency Total assets of R$7.8 billion Total credit exposure of R$ 5.0 billion Relationship-driven, agile and service-oriented Strong team, with correct incentives in all areas of operation Shareholders’ Equity of R$839 million PINE4: traded at BMF&Bovespa Level 1 Corporate Governance Solid Credit Br A- Brazil national scale BB- Long/short-term foreign and local-currency deposit A(bra) Brazil national scale BB- Long/short-term foreign and local-currency deposit March 31, 2010 Over R$ 1 BI 50% R$ 500 MM to R$ 1 BI 22% R$ 150 MM to R$ 500 MM 16% Up to R$ 150 MM 12%
  • 5.
    Investor Relations |1Q10 5/38 1939 – Pinheiro Family founds its first bank in Brasil – Banco Central do Nordeste 1975 - Noberto Pinheiro becomes one of the contolling shareholder of Banco BMC 1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE 2005 - Noberto Pinheiro becomes Banco PINE´s sole shareholder 2007 – Start up of Cayman branch and IPO 2009 - Foundation of PINE Investimentos 1997 Foundation of Banco PINE Sole focus on Corporate Lending History of Banco PINE Founded in 1997, Banco PINE has been showing a track record of resilient development 2004 Opportunity Identified in the payroll loan segment 2007 IPO Cayman Branch Decision to deleverage payroll lending 2005 Noberto Pinheiro becomes Banco PINE’s sole shareholder Strategic decision of exiting the payroll-loan business, at the end of 2007 CORPORATE 100% focused on the Bank’s traditional core business Agile, complete and customized services for Companies Cross-Selling: diversified and sophisticated products PAYROLL-LOAN Reduced margins Increased competition Excessive regulation Scale needs Lack of cross-selling opportunities Excessive lengthening of maturities End of pre-payment fee 1939 Foundation of Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of the BMC’s controlling shareholder 2009 Foundation of PINE Investimentos
  • 6.
    Investor Relations |1Q10 6/38 Management of the Crisis Agile and specialized management to overcome the crisis Banco PINE’s strengths for managing the crisis: No dependency upon long-term funding. Deleveraging of payroll loans and auto loans “pilot project”, before the crisis Strict policy of matching assets and liabilities, combined with agility and efficiency in managing cash position Repurchase of own shares and MTN bonds Focus on companies with solid fundamentals and close relationship with clients Strong credit analysis, structuring and monitoring of the collateralized credit portfolio Strong risk controls and very low market risk exposure (Average VaR of R$1.4 million in 1Q10) Lack of leveraged derivatives exposure Cross sale of credit products and financial services *Effective cash position at the last day of each period. 37% 33% 40% 51% 45% 47% 37% 34% Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Cash Position / Time Deposits* 1,967 1,841 1,243 1,334 1,756 2,154 2,784 2,715 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Time Deposits+ Agribusiness Letter of Credit (R$ Million) 5,047 4,885 4,264 3,873 3,922 4,113 4,753 4,980 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Total Loan Portfolio (R$ Million)
  • 7.
    Investor Relations |1Q10 7/38 Agility in Granting Credit 72-hour process in average; credit analysis may be concluded within 1 business day in special cases Reports on credit visits and loan transactions structuring Credit analysis, visits to clients, data update, interaction with internal research team and issue of opinion Issue of opinion Presentation of proposals to the Committee CREDIT COMMITTEE Electronic Process Sales Officer Credit Analyst Platform and Regional Superintendents Chief Credit Officer and Credit Analysts Strong origination team Relationship close to clients and business with high renewal ratio among clients/repeat businesses Cross sale of credit products and financial services Diligent and complete credit analysis Expertise and flexibility in credit structuring Close monitoring of borrowers’ credit evolution Agile credit decision making process Management of receivables portfolio risks and collaterals quality Efficient loan process, documentation and controls
  • 8.
    Strategies for theCurrent Scenario
  • 9.
    Investor Relations |1Q10 9/38 Simple structure and flat hierarchy Organizational Structure Operating Risk & Compliance Pine Investimentos Gustavo Junqueira Control and Market/ Liquidity Risk Susana Waldeck Financial & Products Norberto Zaiet Jr. Corporate Sales Clive Botelho Internal Auditors Tikara Yoneya External Auditors Deloitte Noberto Pinheiro Chairman Noberto Pinheiro Jr. Vice-Chairman Maurizio Mauro Independent Member Fernando Albino External Member Mailson da Nóbrega Independent Member Board of Directors Sidney Veneziani Sérgio Machado Alcindo Itikawa Fiscal Council CEO Noberto N. Pinheiro Jr. Credit Risk & Research Gabriela Chiste Corporate Operations Ulisses Alcantarilla Corporate • Loan Portfolio R$4.4 billion • 430 Clients • São Paulo • Ribeirão Preto • São José do Rio Preto • Rio de Janeiro • Curitiba • Porto Alegre • Belo Horizonte • Recife Corporate Credit • Analysis and granting of credit • Credit risk monitoring and analysis by sector Treasury • Local • International • Clients Funding • Local • International International • Cayman • Trade Finance Macro Research Products Investor Relations Market and liquidity Risk Human Resources Accounting Controlling Department Credit Structuring Credit Funds Financial Advisory Private Equity Distribution Corporate Processing and Formalization Legal
  • 10.
    Investor Relations |1Q10 10/38 Large multiple banks Wholesale mid-size banks Poorly served segment Banco PINE: focused on corporate loan, offering tailor-made sophisticated products with transparency and agility. Mid-sized banks Foreign Banks Large banks consolidation process have reduced clients’ credit limits Market Positioning PINE is positioned in a segment poorly served in the local market Foreign banks have reduced their risk appetite after the global financial crisis
  • 11.
    Investor Relations |1Q10 11/38 Strategies for the New Scenario Loan portfolio expansion and cross-selling opportunities Challenges for the New Scenario: Lower interest rates & volatility Capital optimization: Stronger leveraging Cross-selling: More products per client Corporate Loans Loans Overdraft accounts Discounts Compror/Vendor Linked Collection Foreign Exchange / Trade Finance Exports ACC/ACE Letter of Credit Documentary Collection Prepayment Imports Letter of Credit Advance Payments Documentary Collection Spot Foreign Exchange Foreign currency loans and investments Loans (2,770) Foreign Lending Foreign Investments Onlending FINAME Automatic Manufacturer Agribusiness Others EXIM Pre-shipping Special Pre-shipping Post-shipping Automatic BNDES FINEM Guarantees Bidding Public tenders Performance Credit/Financial Institutions Treasury Currencies Rates Commodities Equities Macro Advisory Investments Local Currency CDB/ RDB Government Bonds FIDC (Receivables Investment Funds) CDI (Interbank Deposit Certificate) LCA (Agribusiness) Credit Funds Private Equity Foreign Currency CD -Certificate of Deposit Demand Deposit Accounts Eurobonds Custody Account Money Market Accounts Time Deposit Private Equity PINE Investimentos Underwriting and Syndicated Loans Private Equity Credit Funds Advisory
  • 12.
    Investor Relations |1Q10 12/38 Positioning of our business: “More than selling products, our mission is to understand the needs of our clients in order to provide solutions for their businesses, strengthening the relationship” Client Selection Business Analysis Visits Strategies Sharing of Information Visits Information Analysis Planning of actions and executions Offer to Client Cross-selling Strategy for creation of a cross-selling culture
  • 13.
    Investor Relations |1Q10 13/38 Cross-Selling Opportunities PINE Investimentos Clients’ Dealing Desk Clients’ Dealing Desk offers alternatives for mitigating market risk mismatches, giving more predictability to clients’ balance sheets Markets Currencies Derivatives Commodities Derivatives Interest Derivatives FX Others Products Non Deliverable Forward Options Swap Structure Options Double Indexed time deposits Low exposure to market risks It does not offer exotic and/or leveraged derivatives VaR, on March 31, R$1,160 thousand Average VaR in the quarter R$ 1,439 thousand Creation of new values for clients and optimization of the Bank's capital usage Third-parties Asset Management Credit Funds Private Equity Funds Corporate Services Mergers & Acquisitions Financial Advisory Credit Structuring Syndicated Loans Banco PINE’s current partnerships include: Private Equity Fund in association with the American Global Emerging Market Fund (GEM) Financial advisory services provided together with Pátria Investimentos Exclusive credit funds Additional products to our core business, credit to Companies
  • 14.
  • 15.
    Investor Relations |1Q10 15/38 1Q10 Highlights Banco PINE continued to grow its deposits and its loan portfolio, with better quality 10.1% 10.7% 15.3% 1Q09 4Q09 1Q10 ROAE 460 bps 520 bps D QoQ D YoY 30,842 38,223 47,880 1Q09 4Q09 1Q10 Operating Income (R$ Thousand) 25.3% 55,2% D QoQ D YoY 2,842 4,118 4,462 Mar-09 Dec-09 Mar-10 Corporate Loan Portfolio (R$ Million) 8.3% 57.0% D QoQ D YoY 14,187 7,097 4,800 1Q09 4Q09 1Q10 Provisions for Loan Losses (R$ Thousand) (Excludes additionals and reversions) -32.4% -66.2% D QoQ D YoY 1,553 3,029 3,013 Mar-09 Dec-09 Mar-10 Total Deposits + Agribusiness Letter of Credit (R$ Million) -0.5% 94.1% D QoQ D YoY 1.6% 0.7% 0.7% Mar-09 Dec-09 Mar-10 Non-Performing Loans -90 bps D QoQ D YoY
  • 16.
    Investor Relations |1Q10 16/38 Balance Sheet The on-book loan portfolio posted a 5.1% increase in the quarter R$ million Mar-10 Dec-09 Mar-09 Assets 7,792 6,984 5,537 Securities and derivative financial instruments 2,968 2,761 2,344 Lending operations 3,996 3,802 2,769 (-) Allowance for loan losses (67) (76) (97) Net lending operations 3,929 3,726 2,672 Other 895 497 521 Liabilities 6,953 6,159 4,718 Deposits 2,735 2,784 1,520 Money market funding 2,236 1,600 1,483 Funds from acceptance and securities issued 817 815 855 Other 1,165 960 860 Shareholders' equity 839 825 819 Liabilities and Shareholders' equity 7,792 6,984 5,537
  • 17.
    Investor Relations |1Q10 17/38 Results Operating Income grew 25.3% in 1Q10 R$ thousand 1Q10 4Q09 1Q09 Gross income from financial intermediation 78,187 132,343 68,970 Fee Income 13,245 20,590 11,341 Personnel expenses (10,989) (11,488) (10,522) Administrative expenses (18,855) (20,896) (20,764) Tax expenses (7,289) (6,752) (6,136) Other operating income / expenses (6,419) (75,574) (12,047) Operating Income 47,880 38,223 30,842 Non-operating income - (512) 1,317 Income before taxes and profit sharing 47,880 37,711 32,159 Income and social contribution taxes (12,451) (15,355) (8,689) Profit sharing (5,258) (1,208) (3,400) Net income 30,171 21,148 20,070 Annualized ROAE 15.3% 10.7% 10.1%
  • 18.
    Investor Relations |1Q10 18/38 Loan Portfolio The corporate loan portfolio recorded 8.3% growth in 1Q10 and 57.0% in 12 months 3,873 4,753 4,980 Mar-09 Dec-09 Mar-10 Total Loan Portfolio (R$ Million) 4.8% 28.6% D QoQ D YoY 75% 89% 92% 25% 11% 8% Mar-09 Dec-09 Mar-10 Loan Portfolio Mix Individuals Corporate 1,767 2,703 2,822 72 176 242 43 21 19 688 707 745 272 511 634 Mar-09 Dec-09 Mar-10 Corporate Loan Portfolio Mix (R$ Million) Guarantees Trade Finance Resolution 2770 BNDES onlendings Working Capital 8.3% 57.0% 2,842 4,118 4,462 D QoQ D YoY
  • 19.
    Investor Relations |1Q10 19/38 Loan Portfolio by Product Guarantees Loan Portfolio - Corporate Banco PINE operates in the major sectors of the economy and offers a full range of credit products Operations in Major Sectors of Economy Sugar and Ethanol 15% Infrastructure 12% Energy 12% Agriculture 8% Vehicles and Autoparts 6% Financial Institutions 5% Construction 5% Logistics 5% Specialized Services 4% Pharmaceuticals 3% Meat Processing 3% Metallurgy 3% Mining 3% Trade Finance 2% Medical Services 2% Other 12% Working Capital 63% BNDES onlendings 5% Resolution 2770 1% Trade Finance 17% Guarantees 14% Receivables 38% Product Fiduciary Alienation 27% Investments 6% Property Fiduciary Alienation 8% Promissory Notes 16% Payroll 5%
  • 20.
    Investor Relations |1Q10 20/38 Loan Portfolio - Quality The coverage of the overdue portfolio reached 225% in March 2010 0.00% 1.95% 0.30% 0.91% 0.11% 0.65% 0.96% 1.00% 0.60% 0.90% 0.71% 0.67% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mar-10 Real Devaluation Nasdaq WTC Brazilian Elections Banco Santos Liquidity Crisis Global Financial Crisis Credit Portfolio Quality D-H Overdue Portfolio/ Total Portfolio AA, 23.0% A, 52.2% B, 19.5% C, 3.5% D-E, 0.5% F-H, 1.3%
  • 21.
    Investor Relations |1Q10 21/38 Provisions for Loan Losses Due to better quality of the portfolio, the Bank decided to reverse the remaining additional provision recognized in 4Q08 R$ thousand Provisions for Loan Losses History of Provisions for Loan Losses Settlement of some operations, in some cases after mergers or acquisitions Low number of clients with overdue credit in the quarter Expectation of positive credit cycle in 2010 1Q10 4Q09 3Q09 2Q09 1Q09 4Q08 Accounting Provisions (1,300) 7,203 (20,298) (22,043) (14,187) (46,547) Aditional Provisions - - - - - 20,600 Reversal (3,500) (14,300) - (2,800) - - (4,800) (7,097) (20,298) (24,843) (14,187) (25,947) Total Provisions for Loan Loses
  • 22.
    Investor Relations |1Q10 22/38 Loan Portfolio - Individuals Above 50% reduction of individuals loan portfolio in a year, in line with the strategy of discontinuing payroll loans BUSINESS’ EXPENSES Prepayment of loan transactions Provisions for loan losses Personnel and administrative expenses (including expenses with the payroll insurance and commissions) EXPECTATION TO REDUCE THE CREDIT AT AN ACCELERATED PACE Expenses related to this business should be reduced until the end of 2010 THE EXIT STRATEGY OF THE PAYROLL LOAN BUSINESS IS NEARING A CONCLUSION 832 441 351 93 56 48 Mar-09 Dec-09 Mar-10 Individuals Loan Portfolio Mix(R$ Million) On book Off book 925 497 399 -19.8% -56.9% D QoQ D YoY
  • 23.
    Investor Relations |1Q10 23/38 Funding Diversified sources of funding Comfortable funding situation Subordinated Notes Joint Bookrunners Public Offering 2010 US$ 125 Million Foreign Funding - Private Issuances US$ 33.6 Million US$ 35.5 Million US$ 52.8 Million US$ 39.9 Million US$ 20.0 Million 1,553 3,029 3,013 832 441 351 712 586 521 382 242 447 143 229 296 Mar-09 Dec-09 Mar-10 Funding Mix (R$ Million)) Borrowings and onlendings Funds from Acceptance and Securities Issued Trade Finance / Cayman Loan Assignments Total Deposits 2.2% DQoQ 27.8% DYoY 3,622 4,527 4,628 3,622 4,527 4,628 1Q09 4Q09 1Q10 Total Funding (R$ Million) 2.2% 27.8% D Tri D Ano
  • 24.
    Investor Relations |1Q10 24/38 Funding vs. Credit and Cash Position Due to the issuance of subordinated debt made in 1Q10, the average term of funding increased to 16 months, compared with 11 months for the loan portfolio (1) It does not consider Shareholders Equity Type of Asset Funding Time Deposits Corporate Domestic Loans Corporate BNDES On-lending BNDES On-lending Corporate International Loans FX Lines Debt Bonds – Senior and Subordinated Up to 3 months (includes Cash) R$ 1,886 3 to 12 months R$ 1,662 1 to 3 years R$ 1,654 3 to 5 years R$ 47 Over 5 years R$ 3 Credit + Cash Position With no Maturity R$ 50 Up to 3 months R$ 1,674 3 to 12 months R$ 1,141 1 to 3 years R$ 1,325 3 to 5 years R$ 198 Over 5 years R$ 240 Funding(1)
  • 25.
    Investor Relations |1Q10 25/38 BIS Ratio BIS ratio was 14.9%. Including the new issuance, this ratio would be 18.7% Equity (R$ Thousand) Basel Ratio % Tier I 836,448 14.4% Tier II 29,282 0.5% Total 865,730 14.9% Tier II (new issuance) (1) 222,525 3.8% BIS (including new issuance) (1) 1,088,255 18.7% (1) The issuance of subordinate notes occured in February, 2010. Waiting for authorizatio n of the Brazilian Central Bank to be incorporated into Banco PINE's Tier II
  • 26.
  • 27.
    Investor Relations |1Q10 27/38 Corporate Governance Banco PINE adopts the best corporate governance practices Clear Policies Performance Monitoring Risk Management Settlement of Responsibilities Alignment of Internal Policies Compliance with Legislation and interests Two independent members and one external member in the Board of Directors Mailson Ferreira da Nóbrega: Finance Minister of Brazil from 1988 to 1990 Maurizio Mauro: CEO of Booz Allen Hamilton and Grupo Abril Fernando Albino de Oliveira: ex-director of CVM and partner of Albino Advogados Associados São Paulo Stock Exchange Level 1 of Corporate Governance Fiscal Council 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation
  • 28.
    Investor Relations |1Q10 28/38 Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge and information Transparency Main Committees Banco PINE believes that the use of the best corporate governance practices substantially enhances its business‟ outcome Board of Directors Fiscal Council Audit Support Committee Treasury Committee (ALCO) National and Foreign Funding Products Committee Credit Committee Retail Committee Delinquency Committee Compliance and Basel Risk Committee Executive Committee Performance Evaluation Committee Ethics Committee IT Committee Human Resources Committee PINE Investimentos Committee
  • 29.
    Investor Relations |1Q10 29/38 Shareholders’ Structure The management holds 3.3% of the total shares ON PN Total % Noberto Nogueira Pinheiro 45,443,872 14,338,627 59,782,499 70.0% Management - 2,817,955 2,817,955 3.3% Free Float - 20,733,812 20,733,812 24.3% Subtotal 45,443,872 37,890,394 83,334,266 - Treasury - 2,074,839 2,074,839 2.4% Total 45,443,872 39,965,233 85,409,105 100.0% Base: 03/31/2010
  • 30.
    Investor Relations |1Q10 30/38 Dividends On March 31, 2010, the total amount of R$ 15.0 million in interest on own capital and dividends were paid to shareholders R$ million R$ Gross Value Total Value Value per Share Interest on own capital 12.1 0.145294 Dividends 2.9 0.034704 Total paid in 1Q10 15.0 0.179998 Since 2008, Banco PINE has paid quarterly dividends/interest on own capital quarterly
  • 31.
    Investor Relations |1Q10 31/38 Social Casa Hope Instituto Alfabetização Solidária Instituto Sedes Sapientiae Instituto Casa da Providência Charity Day - ICAP Brasil CTVM Sports Minas Tênis Clube: training program for athletes Passe de Mágica: created in 2004 by Magic Paula and Branca, former Brazilian basketball players, to offer basketball instruction for children Projeto Rede Atletismo Novos Talentos: (New Talent Athletics Network Project) training program for athletes developed and maintained by the Aquarela Foundation LOB do Tênis Feminino: development of women's tennis in Brazil at the level of global competitiveness Social Responsibility Banco PINE supports and promotes the Brazilian culture Culture A Cidade e a Rosa: retrospective of the artist Paulo Von Poser Diário de bordo de Pero Lopes de Sousa e a viagem de Martim Afonso de Sousa (1530- 1532): expedition that resulted in the foundation of São Vicente, Brazil’s first settlement Responsible Credit “Lists of Exceptions”: the Bank does not finance 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-produced sustainability reports for corporate loans. Green Building
  • 32.
  • 33.
    Investor Relations |1Q10 33/38 Global Foreign Currency Long Term Outlook Local Currency Long Term Outlook National Long Term Short Term Outlook Bank Financial Strength Ba2 Stable Ba2 Stable A1.br Br-1 Stable D A BB-B Stable BB-B Stable br A-Stable Global Foreign Currency Long Term Short Term Outlook Local Currency Long Term Short Term Outlook National Long Term Outlook 10.27 Low Risk for Medium Term (-) Global Foreign Currency Long Term Short Term Outlook Local Currency Long Term Short Term Outlook National Long Term Short Term Outlook Individual Support BB-B Stable BB-B Stable A(bra) F1(bra) Stable C/D 5 Ratings Solid credit structure
  • 34.
    Investor Relations |1Q10 34/38 Macroeconomic Scenario Challenge for the new scenario: economic growth and interest rate below historic rates Brazil: Main Economic Indicators - Banco Pine ECONOMIC INDICATORS (basis scenario: 75% of probability) 2002 2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012-15 (F) Real GDP growth rate (%) 2.7% 1.1% 5.7% 3.2% 4.0% 5.4% 5.1% -0.2% 6.4% 5.2% 5.0% R$:US$ end of the period (nominal) 3.54 2.91 2.67 2.34 2.14 1.79 2.40 1.75 1.73 1.90 1.62 R$:US$ average (nominal) 2.99 3.06 2.92 2.44 2.18 1.95 1.84 2.00 1.80 1.86 1.75 BR inflation (IPC / IPCA) 12.5% 9.3% 7.6% 5.7% 3.1% 4.5% 5.9% 4.3% 5.6% 5.0% 4.0% BR inflation (IGP-M) 25.3% 8.7% 12.5% 1.3% 3.8% 7.7% 9.8% -1.7% 8.0% 6.0% 5.0% BR interest rate (Selic, end of the period) 25.0% 16.5% 17.8% 18.00% 13.25% 11.25% 13.75% 8.75% 12.50% 10.50% 8.50% BR interest rate (Selic, average) 19.5% 23.1% 16.4% 19.15% 15.06% 11.98% 12.54% 9.92% 10.46% 11.92% 9.50% Total external debt (US$bn) 196.0 200.0 185.0 154.0 156.0 166.0 170.0 169.9 174.5 183.0 188.0 Private(US$bn) 85.0 80.0 70.0 66.0 80.0 96.0 103.0 105.6 114.0 125.0 131.1 Public (US$bn) 111.0 120.0 115.0 88.0 76.0 70.0 67.0 64.3 60.5 58.0 56.8 External Reserves (US$bn) 38.0 49.0 53.0 54.0 86.0 180.0 207.0 239.0 270.0 320.0 450.0 Total external debt (% of reserves) 516% 408% 349% 285% 181% 92% 82% 68% 54% 50% 37% Private (% of reserves) 224% 163% 132% 122% 93% 53% 50% 42% 35% 33% 26% Public (% of reserves) 292% 245% 217% 163% 88% 39% 32% 26% 19% 17% 11% Trade balance (US$bn) 13.2 24.8 33.8 44.8 46.2 40.0 25.0 25.4 15.0 10.0 15.0 Current Account (US$bn) -7.6 4.2 11.7 14.0 13.6 1.5 -35.0 -24.3 -50.0 -55.0 -60.0 Current Account (% of GDP) -1.5% 0.8% 1.8% 1.6% 1.3% 0.1% -3.1% -2.4% -4.2% -4.9% -5.0% Primary Surplus (% of GDP) 3.5% 3.9% 4.2% 4.4% 3.9% 4.0% 4.3% 2.1% 2.8% 3.3% 3.3% Public sector net debt/GDP 55.5% 57.2% 51.8% 51.5% 45.0% 42.7% 37.0% 43.0% 41.0% 38.0% 39.0% Brazil Risk (bps, end of period) 1,439 463 383 311 194 221 450 224 150 80 50
  • 35.
    Investor Relations |1Q10 35/38 Financial Statements Highlights R$ million 6 6 26 50 97 49 2004 2005 2006 2007 2008 2009 Provisions for Loan Losses 19.8% 35.7% 23.0% 26.4% 16.3% 16.4% 10.3% 19.1% 15.1% 12.0% 12.5% 9.9% 2004 2005 2006 2007 2008 2009 ROAE ROAE Average Selic 43 49 86 141 151 120 2004 2005 2006 2007 2008 2009 Personnel and Administrative Expenses (excludes commissions) 32 68 63 150 133 85 2004 2005 2006 2007 2008 2009 Net Income Net Income Personnel and Administrative Expenses (excludes commissions) Provisions Loan Losses ROAE
  • 36.
    Investor Relations |1Q10 36/38 Balance Sheet Highlights R$ million *It includes Agribusiness Letters of Credit 1,386 1,991 3,215 5,700 6,176 6,984 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Assets 171 209 335 800 827 825 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Shareholders' Equity 421 553 853 1,951 1,462 3,029 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Deposits 18.2% 20.7% 19.2% 18.3% 19.3% 15.6% Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 BIS Ratio Total Assets Shareholders’ Equity Deposits* BIS Ratio
  • 37.
    Investor Relations |1Q10 37/38 Other Key Figures R$ million 782 1,324 2,077 4,325 4,264 4,753 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Loan Portfolio 759 1,341 2,085 3,623 3,737 4,527 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Total Funding 54% 41% 40% 54% 39% 67% 2% 28% 32% 28% 26% 10% 8% 6% 11% 7% 13% 36% 5% 25% 17% 11% 18% 13% 4% 4% 5% Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Funding Breakdown (%) Deposits Loan Assignments Securities Issued Other Funding Borrowings and Onlendings Total Funding Total Loan Portfolio Funding Breakdown 54% 41% 40% 54% 39% 67% 2% 28% 32% 28% 26% 10% 8% 6% 11% 7% 13% 5% 36% 25% 17% 7% 18% 13% 4% 4% 5% Dez/Dez/Dez/Dez/Dez/Dez/Mix de Captação (%) Depositos Cessão de Crédito Recursos, Aceites e Emissão de Títulos Trade Finance/Cayman Obrigações por Repasses
  • 38.
    Investor Relations |1Q10 38/38 Investor Relations Noberto Nogueira Pinheiro Jr. CEO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Analyst Phone: +55-11-3372-5553 www.bancopine.com.br/ir ir@bancopine.com.br This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of 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, 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.