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2Q10 Institutional Presentation

- Banco PINE is a Brazilian bank focused on providing corporate financial services to companies with annual revenues over R$150 million. It offers credit, treasury, and investment products. - The presentation discusses Banco PINE's history, business strategy of cross-selling multiple products, organizational structure, current performance, and future prospects. Key metrics like loans, deposits, and profitability increased in the most recent quarter and year. - Banco PINE aims to sustain earnings growth by leveraging cross-selling opportunities within its existing corporate client base and maintaining its solid credit quality and adequate capital levels.

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Institutional Presentation 2Q10
History and Profile Banco PINE at a Glance History of Banco PINE Business Strategy Cross-Selling Opportunities Agility in Granting Credit Organizational Structure Current Scenario and Future Prospects Highlights and Results Corporate Governance and Shares Agenda Corporate Governance Main Committees Shareholders’ Structure Shareholders’ Profile Dividends Social Responsibility Market Recognition Rating upgrade by Fitch Events and Highlights of the Period Banco PINE Investor Relations | 2Q10 2/35
History and Profile
Banco PINE Results based on strong credit structure and on services and products cross-selling Banco PINE Specialized on financial services for corporations: Banco PINE is focused on serving companies with annual revenues above R$150 million, and thoroughly understands the needs and strategies of its clients Banco PINE offers: • Credit and onlending products in local and foreign currency • Financial and strategic advisory services • Treasury products • Investments Results Growth: Positive contribution of all business lines: Corporate Loans, Sales Desk and PINE Investimentos Close relationship with clients:: 81% of the active client base uses more than one product offered by the Bank 102 new corporate loan clients added in 2Q10, to approximately 950 companies Solid Credit Structure A1.br Brazil national scale Ba2 Long/short-term foreign and local-currency deposit 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 Investor Relations | 2Q10 4/35
History of Banco PINE Founded in 1997, Banco PINE has been showing a track record of resilient development 1997 Foundation of Banco PINE Sole focus on Corporate Lending 2004 Opportunity Identified in the payroll loan segment 2007 IPO Foundation of the Cayman Branch 2005 Noberto Pinheiro becomes Banco PINE’s sole shareholder 1939 Foundation of Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of the BMC’s controlling shareholder 2009 Foundation of PINE Investimentos 1939 – Pinheiro Family founds its first bank in Brasil – Banco Central do Nordeste 1975 - Noberto Pinheiro becomes one of the controlling shareholders 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 Investor Relations | 2Q10 5/35
Business Strategy
Cross-selling Opportunities Financial instruments diversity for the diverse needs of our clients Challenges : Lower interest rates & lower volatility Capital optimization: Selective loan portfolio growth Cross-selling: More products per client Corporate Loans Loans Overdraft accounts Foreign Exchange / Trade Finance Exports ACC/ACE Letter of Credit Onlending FINAME Automatic Guarantees Bidding Public tenders Treasury (Sales Desk) Currencies Investments Local Currency CDB/ RDB Government Bonds PINE Investimentos Underwriting and Syndicated Loans Private Equity Discounts Compror/Vendor Linked Collection 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 Manufacturer Agribusiness Others EXIM Pre-shipping Special Pre-shipping Post-shipping Automatic BNDES FINEM Performance Credit/Financial Institutions Rates Commodities Equities Macro Advisory 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 Credit Funds Advisory Investor Relations | 2Q10 7/35
Cross-selling Opportunities Diversity of financial instruments to meet the needs of our customers Credit products in local and foreign currency Loans Overdraft accounts Discounts BNDES onlending Guarantees Compror/Vendor ACC/ACE Export Pre-payment Finimp Letter of Credit Funding products in local and foreign currency Local deposits Double index CDB LCA (Agribusiness Letters of Credit)/LCI BNDES onlending FIDC and Credit funds Senior and subordinated local financial notes Time Deposits CD – Certificate of Deposit Eurobonds Subordinated notes Credit and Funding Products 2,770 onlending Clients’ Sales Desk PINE Investimentos Products for mitigating market risk mismatches Currencies, Commodities, Interest and Index derivatives: NDF Options Swaps Structured Options FX 2,770 onlending Credit Structuring Syndicated Loans Third-parties Asset Management Credit Funds Private Equity Funds Corporate Services Mergers & Acquisitions Financial Advisory Investor Relations | 2Q10 8/35
Agility in Granting Credit 72-hour process in average; credit analysis may be concluded within 1 business day in special cases Presentation of proposals to the Committee CREDIT COMMITTEE Electronic Process Chief Credit Officer and Credit Analysts Platform and Strong origination team Close relationship to clients and business with high renewal ratio among clients Cross-selling of credit products and financial services Diligent and complete credit analysis Issue of opinion Credit analysis, visits to clients, data update, interaction with internal research team and issue of opinion Reports on credit visits and loan transactions structuring Regional Superintendents Credit Analyst Sales Officer 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 Investor Relations | 2Q10 9/35
Organizational Structure Simple structure and flat hierarchy Fiscal Council CEO OOppeerraattiinngg RRiisskkss 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 Noberto N. Pinheiro Jr. Operating Risks & Compliance Pine Investimentos Gustavo Junqueira Control and Market/ Liquidity Risk Susana Waldeck Financial & Products Norberto Zaiet Jr. Corporate Sales Clive Botelho Credit Risk & Research Gabriela Chiste Corporate Operations Ulisses Alcantarilla Corporate • Loan Portfolio R$4.8 billion • 939 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 • Sales Desk 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 | 2Q10 10/35
The Current Scenario and Future Prospects Banco PINE is well positioned in the market and prepared for sustainable earnings growth Adequate capital structure Issuance of a US$125 million subordinated debt, approved by the Brazilian Central Bank as Tier II capital in June Capital Adequacy Ratio (BIS) of 18.5% Efficient funding structure Lengthening: 18 months average (June/2010) Greater diversification Well prepared and encouraged team Meritocracy Qualification Cross-selling opportunities in the client base 102 new corporate loan clients added in 2Q10 Products diversity built over the past years 81% of the client base uses more than one product (June/2010) Investor Relations | 2Q10 11/35
Highlights and Results
Highlights Main indicators improvement: profitability, credit and funding 34.5 Operating Income (R$ Million) D 12M D Quarter 75.2% 26.2% 47.9 D 6M 65.8% 60.4 65.3 108.3 2Q09 1Q10 2Q10 1H09 1H10 21.8 Net Income (R$ Million) D 12M D Quarter 63.3% 18.0% 30.2 35.6 D 6M 57.1% 41.9 65.8 2Q09 1Q10 2Q10 1H09 1H10 Corporate Loan Portfolio 3,068 3,416 (R$ Million) D 12M D 6M D Quarter 56.3% 16.4% 7.5% 4,118 4,462 4,794 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 D 12M D Quarter -650 bps -600 bps 40.0% 39.5% Efficiency Ratio 33.5% D 6M -310 bps 39.3% 36.2% 2Q09 1Q10 2Q10 1H09 1H10 11.1% D 12M D Quarter 680 bps 260 bps 15.3% ROAE 17.9% D 6M 580 bps 10.5% 16.3% 2Q09 1Q10 2Q10 1H09 1H10 1,917 Total Deposits+ Agribusiness Letter of 2,302 Credit (R$ Million) D 12M D 6M D Tri 66.0% 5.1% 5.6% 3,029 3,013 3,183 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 13/35
Earnings Consistent income growth in the last quarters, as a result of selective credit portfolio increase and cross-selling strategy Even during the global financial crisis, ROAE maintained a minimum of 10% 260 bps increase in the quarter 17.1% 9.9% 10.1% 11.1% 11.3% 10.7% 15.3% 17.9% 13.2% 10.5% 10.8% 16.3% ROAE 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 Gradual and consistent income growth in post-crisis period Net Income 18% up in the quarter 33,429 19,821 20,070 21,800 Net Income (R$ Thousand) 22,068 21,148 30,171 35,605 53,250 41,870 43,216 65,776 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 Investor Relations | 2Q10 14/35
Loan Portfolio Positive development of the loan portfolio Corporate loan portfolio grew 7.5% in 2Q10 and 56.3% in 12 months 3,533 3,534 3,070 2,842 3,068 3,416 4,118 4,462 4,794 Corporate Loan (R$ Million) Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Increase of the corporate loan portfolio, which represented 72% of the total loan portfolio in June 2008 and now is responsible for 94% of the total 5,047 4,885 4,264 Total Credit (R$ Million) 3,873 3,922 4,113 4,753 4,980 5,208 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 15/35
Loan Portfolio Profile Banco PINE operates in the major sectors of the economy, with product diversity and regional distribution that mirrors the GDP’s Loan Portfolio by Region Loan Portfolio by Sector Southeast 66% South 12% Northeast 10% Mid-West 10% Northeast 2% Electric and Renewable Energy Agriculture 8% Construction 7% Financial Institutions 6% Meat packing 5% Vehicles and Parts 5% Loan Portfolio by Product Working Capital 58% BNDES onlendings 9% Resolution 2770 1% Trade Finance 14% Guarantees 18% 11% Transportation Sugar and Ethanol 15% Infrastructure 13% and Logistics 4% Pharmaceutical and Cosmetic 3% Foreign Trade 3% Metallurgy 3% Specialized Services 2% Foodstuffs 2% Healthcare 2% Other 11% Investor Relations | 2Q10 16/35
Loan Portfolio Quality The coverage of the overdue portfolio reached 214.7% in June 2010 Credit Portfolio Quality – June 2010 A, 49.6% D-H Overdue Credit Portfolio/ Total Credit 1.6% 1.7% 1.3% 0.7% 0.7% 0.7% Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 AA, 26.3% B, 18.9% C, 3.5% D-E, 0.4% F-H, 1.3% Overdue Credit Portfolio/ Total Credit 1.8% 1.7% 1.5% 0.8% 0.7% 0.7% Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 17/35
Funding Banco PINE maintains diversified funding sources 4,396 4,311 3,772 3,656 3,701 3,875 4,553 4,655 4,890 Total Funding (R$ Million) Multilateral Organizations US$28.9 Million US$33.5 Million US$30.2 Million US$20.0 Million US$50.9 Million Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 24 29 144 147 467 288 1,119 554 429 1,005 2,354 2,148 Funding Mix (R$ Million) 35 35 29 156 143 127 496 382 306 663 713 959 832 1,462 1,553 642 679 1,917 27 142 275 576 552 2,302 26 27 229 229 296 508 242 447 160 586 521 541 440 351 268 3,029 3,013 3,183 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Subordinanted Debt Borrowings and Onlendings Funds from Acceptance and Securities Issued Trade Finance / Cayman Loan Assignments Total Deposits Investor Relations | 2Q10 18/35
Funding and Loan Portfolio Maturities In 2Q10, the average term of funding was 18 months, compared with 13 months for the loan portfolio R$ Million From 3 to 12 months R$1,675 Loan Portfolio + Cash Position From 1 to 3 years R$1,069 From 3 to 5 years R$250 From 1 to 3 years R$1,185 From 3 to 5 years R$299 More than 5 years R$661 Funding(1) (1) Excluding Shareholders’ Equity More than 5 years R$76 Up to 3 months (includes Cash) R$2,557 No Maturity R$36 Up to 3 months R$1,244 From 3 to 12 months R$1,465 Investor Relations | 2Q10 19/35
Capital Adequacy Ratio (BIS) BIS ratio was 18.5% in June, which demonstrates a comfortable capital base. The rate growth reflects the approval of subordinated debt as Tier II 16.5% 15.6% 19.3% 18.6% 19.3% 17.2% 15.6% 14.9% 18.5% BIS Ratio Public Offering February / 2010 Subordinated Notes Joint Bookrunners US$125 Million Equity (R$ thousand) BIS Ratio (%) Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Tier I 854,041 14.6% Tier II 228,230 3.9% BIS Ratio 1,082,271 18.5% Investor Relations | 2Q10 20/35
Results Operating Income grew 26.2% in 2Q10 2Q10 1Q10 2Q09 Gross income from financial intermediation 89,491 78,187 43,922 Fee Income 15,719 13,245 29,498 Personnel expenses (11,911) ( 10,989) (9,266) Other administrative expenses (19,356) ( 18,855) ( 21,805) Tax Expenses (7,361) (7,289) (7,716) Other Operating (expenses) income (6,147) (6,419) (131) R$ Thousand Operating Income 60,435 47,880 34,502 Non-operating income (790) - 886 Income before taxes 59,645 47,880 35,388 Income and social contribution taxes (15,485) ( 12,451) (9,056) Profit Sharing (8,555) (5,258) (4,532) Net Income 35,605 30,171 21,800 ROAE 17.9% 15.3% 11.1% Investor Relations | 2Q10 21/35
Balance Sheet The on-book loan portfolio posted a 2.5% increase in the quarter Jun-10 Mar-10 Jun-09 Assets 8,014 7,792 6,275 Securities and derivative financial instruments 3,364 2,968 2,791 Lending operations 4,097 3,996 2,951 (-) Allowance for loan losses (68) ( 67) (107) Net lending operations 4,029 3,929 2,844 Other 621 895 640 R$ Million Liabilities 7,161 6,953 5,463 Deposits 2,929 2,735 1,849 Money market funding 2,100 2,236 1,915 Funds from acceptance and securities issued 1,050 817 769 Other 1,082 1,165 930 Shareholders' equity 853 839 811 Liabilities and Shareholders' equity 8,014 7,792 6,275 Investor Relations | 2Q10 22/35
Consistent and Consolidated Strategy Banco PINE is a commercial bank focused on delivering a full set of financial services to corporations We will intensify our focus on companies, closely follow our client portfolio and endeavor to meet their needs swiftly and in a personalized manner as well as offer a wide range of products that increase the potential for cross-selling opportunities (Press Release 4Q08 – Page 2) Our strategy is not only working capital and trade finance, but a strategy to service a company in a cross-selling amplified (...) The type of client chosen is focused on a comprehensive strategy for delivering multiple products (Conference Call 2Q09) We are and will be a commercial credit bank, this is our vocation, it is our DNA (Conference Call 2Q09) Our goal is to offer a wide range of products that meet the needs of our clients, and also optimize our capital use, therefore increasing our per-client profitability (Conference Call 3Q09) These two parts, putting more capital to work and cross-selling strategy, will make ROAE 2010 closer to 15% (Conference Call 3Q09) We are optimistic and believe in a growth tendency and recovery for the next quarters (Conference Call 4Q09) As we said since the end of 2008, the Bank successfully reinforced its strategy of cross-selling financial instruments (Conference Call 4Q09) Investor Relations | 2Q10 23/35
Corporate Governance and Shares
Corporate Governance Banco PINE adopts the best corporate governance practices CClleeaarr PPoolliicciieess Performance Monitoring Settlement of Responsibilities Alignment of Internal Policies 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 RRiisskk MMaannaaggeemmeenntt Compliance with Legislation and interests Fiscal Council 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation Investor Relations | 2Q10 25/35
Main Committees Banco PINE believes that the use of the best corporate governance practices substantially enhances its business outcome 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 FFiissccaall CCoouunncciill 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 | 2Q10 26/35
Ownership Structure On July 1st, BMFBovespa granted Banco PINE’s request for an extension of the deadline for complying with the minimum free-float requirement Base: 07/30/2010 Common Preferred Total % Noberto Nogueira Pinheiro 45,443,872 14,490,556 59,934,428 70.2% Management - 2,631,243 2,631,243 3.1% Free Float - 20,768,595 20,768,595 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% The Bank shall maintain at least 24.3% free float until January 10, 2011 Should free float exceed 24.3% at any time before January 10, 2011, the Bank will not permit a reduction of this level Investor Relations | 2Q10 27/35
Shareholders’ Profile Shareholders' profile change since the crisis 2007 IPO Foreign Investors 78.4% Institucional Investors 12.9% 39.7% 39.5% 37.8% 38.3% 38.4% 38.5% 39.5% 39.8% 40.5% 41.0% Foreign Investors 42.0% 41.6% 41.7% 39.3% 38.6% 40.7% 40.3% 40.1% 40.1% 39.6% 39.8% 38.4% 38.2% 38.1% 38.0% 37.3% Institutional Investors Individuals 8.7% Individuals 21.9% 21.5% 21.4% 21.5% 21.4% 20.9% 20.4% 21.1% 20.8% 19.9% Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 TThhee PPrriiccee//BBooookk VVaalluuee mmuullttiippllee wwaass 11..1177xx oonn AAuugguusstt 2200,, 22001100 21.1% 20.4% 21.0% Investor Relations | 2Q10 28/35
Dividends Since 2008, Banco PINE has paid dividends/interest on equity on a quarterly-basis Dividends and Interest on Own Capital R$ million R$ Gross Amount Total Amount Amount per share 1Q10 15.0 0.179998 2Q10 20.0 0.239997 Total paid in 1H10 35.0 0.419995 Interest on Own Capital and Dividends 16 25 25 (R$ Million) 33 45 30 35 1H07 2H07 1H08 2H08 1H09 2H09 1H10 Investor Relations | 2Q10 29/35
Social Responsibility Banco PINE supports and promotes the Brazilian culture Social Casa Hope Instituto Alfabetização Solidária Instituto Sedes Sapientiae Instituto Casa da Providência Sports Minas Tênis Clube: training program for athletes Passe de Mágica: created in 2004 by Magic Paula and Branca, former Brazilian basketball Culture A Cidade e a Rosa (The City and the Rose): retrospective of the artist Paulo Von Poser Paisagem e Olhar (Landscape and View): featuring watercolors of the biodiversity of the Rainforest Embarcações (Typical Vessels of the Brazilian Coast): registers the beauty of vessels from north to south of Brazil 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 Green Building Responsible Credit “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-produced sustainability reports for corporate loans. Investor Relations | 2Q10 30/35
Market Recognition
Rating upgrade by Fitch Consistent performance and credit quality On May 24, Fitch Ratings, one of the main international ratings agencies, raised PINE's ratings as follows: Long-Term Local and Foreign Currency IDR from “B+” to “BB-” National Long-Term rating from “A-(bra)” to “A(bra)” National Short-Term rating from “F2(bra)” to “F1(bra)” Individual rating from “D” to “C/D” The agency attributed the improvement in ratings due to the following factors : Bank's consistent performance during the global financial crisis Adequate credit quality Consistent risks and credit manage Favorable capitalization ratios According to the agency, “the Bank’s rating reflects its agility in adapting to economic volatility, its strategy of consistently managing risks and balance sheet adjustments”. Additionally, 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”. Investor Relations | 2Q10 32/35
Events and Highlights of the Period Market recognition Banco PINE is one of the top 15 banks in Brazil in terms of Corporate Loans, according to the 2010 edition of Melhores e Maiores, from Exame magazine Banco PINE was considered the Best Commercial Bank in Brazil by World Finance Banking Awards The award was created by British magazine World Finance. Among the factors analyzed were: solutions for clients and optimization of relationships, innovation and flexibility and staying ahead of the competition. Investor Relations | 2Q10 33/35
Banco PINE Pioneering spirit, solid and transparent, with the agility that companies need The first Brazilian bank of its size to go public One of the 15 largest banks in Corporate loans, noted for its good management during the crisis Clear, accessible and consistent information Investor Relations | 2Q10 34/35
Investor Relations Norberto Zaiet Júnior CFO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Analyst Phone: +55-11-3372-5553 / 5552 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. Investor Relations | 2Q10 35/35

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2Q10 Institutional Presentation

  • 1.
  • 2.
    History and Profile Banco PINE at a Glance History of Banco PINE Business Strategy Cross-Selling Opportunities Agility in Granting Credit Organizational Structure Current Scenario and Future Prospects Highlights and Results Corporate Governance and Shares Agenda Corporate Governance Main Committees Shareholders’ Structure Shareholders’ Profile Dividends Social Responsibility Market Recognition Rating upgrade by Fitch Events and Highlights of the Period Banco PINE Investor Relations | 2Q10 2/35
  • 3.
  • 4.
    Banco PINE Resultsbased on strong credit structure and on services and products cross-selling Banco PINE Specialized on financial services for corporations: Banco PINE is focused on serving companies with annual revenues above R$150 million, and thoroughly understands the needs and strategies of its clients Banco PINE offers: • Credit and onlending products in local and foreign currency • Financial and strategic advisory services • Treasury products • Investments Results Growth: Positive contribution of all business lines: Corporate Loans, Sales Desk and PINE Investimentos Close relationship with clients:: 81% of the active client base uses more than one product offered by the Bank 102 new corporate loan clients added in 2Q10, to approximately 950 companies Solid Credit Structure A1.br Brazil national scale Ba2 Long/short-term foreign and local-currency deposit 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 Investor Relations | 2Q10 4/35
  • 5.
    History of BancoPINE Founded in 1997, Banco PINE has been showing a track record of resilient development 1997 Foundation of Banco PINE Sole focus on Corporate Lending 2004 Opportunity Identified in the payroll loan segment 2007 IPO Foundation of the Cayman Branch 2005 Noberto Pinheiro becomes Banco PINE’s sole shareholder 1939 Foundation of Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of the BMC’s controlling shareholder 2009 Foundation of PINE Investimentos 1939 – Pinheiro Family founds its first bank in Brasil – Banco Central do Nordeste 1975 - Noberto Pinheiro becomes one of the controlling shareholders 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 Investor Relations | 2Q10 5/35
  • 6.
  • 7.
    Cross-selling Opportunities Financialinstruments diversity for the diverse needs of our clients Challenges : Lower interest rates & lower volatility Capital optimization: Selective loan portfolio growth Cross-selling: More products per client Corporate Loans Loans Overdraft accounts Foreign Exchange / Trade Finance Exports ACC/ACE Letter of Credit Onlending FINAME Automatic Guarantees Bidding Public tenders Treasury (Sales Desk) Currencies Investments Local Currency CDB/ RDB Government Bonds PINE Investimentos Underwriting and Syndicated Loans Private Equity Discounts Compror/Vendor Linked Collection 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 Manufacturer Agribusiness Others EXIM Pre-shipping Special Pre-shipping Post-shipping Automatic BNDES FINEM Performance Credit/Financial Institutions Rates Commodities Equities Macro Advisory 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 Credit Funds Advisory Investor Relations | 2Q10 7/35
  • 8.
    Cross-selling Opportunities Diversityof financial instruments to meet the needs of our customers Credit products in local and foreign currency Loans Overdraft accounts Discounts BNDES onlending Guarantees Compror/Vendor ACC/ACE Export Pre-payment Finimp Letter of Credit Funding products in local and foreign currency Local deposits Double index CDB LCA (Agribusiness Letters of Credit)/LCI BNDES onlending FIDC and Credit funds Senior and subordinated local financial notes Time Deposits CD – Certificate of Deposit Eurobonds Subordinated notes Credit and Funding Products 2,770 onlending Clients’ Sales Desk PINE Investimentos Products for mitigating market risk mismatches Currencies, Commodities, Interest and Index derivatives: NDF Options Swaps Structured Options FX 2,770 onlending Credit Structuring Syndicated Loans Third-parties Asset Management Credit Funds Private Equity Funds Corporate Services Mergers & Acquisitions Financial Advisory Investor Relations | 2Q10 8/35
  • 9.
    Agility in GrantingCredit 72-hour process in average; credit analysis may be concluded within 1 business day in special cases Presentation of proposals to the Committee CREDIT COMMITTEE Electronic Process Chief Credit Officer and Credit Analysts Platform and Strong origination team Close relationship to clients and business with high renewal ratio among clients Cross-selling of credit products and financial services Diligent and complete credit analysis Issue of opinion Credit analysis, visits to clients, data update, interaction with internal research team and issue of opinion Reports on credit visits and loan transactions structuring Regional Superintendents Credit Analyst Sales Officer 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 Investor Relations | 2Q10 9/35
  • 10.
    Organizational Structure Simplestructure and flat hierarchy Fiscal Council CEO OOppeerraattiinngg RRiisskkss 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 Noberto N. Pinheiro Jr. Operating Risks & Compliance Pine Investimentos Gustavo Junqueira Control and Market/ Liquidity Risk Susana Waldeck Financial & Products Norberto Zaiet Jr. Corporate Sales Clive Botelho Credit Risk & Research Gabriela Chiste Corporate Operations Ulisses Alcantarilla Corporate • Loan Portfolio R$4.8 billion • 939 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 • Sales Desk 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 | 2Q10 10/35
  • 11.
    The Current Scenarioand Future Prospects Banco PINE is well positioned in the market and prepared for sustainable earnings growth Adequate capital structure Issuance of a US$125 million subordinated debt, approved by the Brazilian Central Bank as Tier II capital in June Capital Adequacy Ratio (BIS) of 18.5% Efficient funding structure Lengthening: 18 months average (June/2010) Greater diversification Well prepared and encouraged team Meritocracy Qualification Cross-selling opportunities in the client base 102 new corporate loan clients added in 2Q10 Products diversity built over the past years 81% of the client base uses more than one product (June/2010) Investor Relations | 2Q10 11/35
  • 12.
  • 13.
    Highlights Main indicatorsimprovement: profitability, credit and funding 34.5 Operating Income (R$ Million) D 12M D Quarter 75.2% 26.2% 47.9 D 6M 65.8% 60.4 65.3 108.3 2Q09 1Q10 2Q10 1H09 1H10 21.8 Net Income (R$ Million) D 12M D Quarter 63.3% 18.0% 30.2 35.6 D 6M 57.1% 41.9 65.8 2Q09 1Q10 2Q10 1H09 1H10 Corporate Loan Portfolio 3,068 3,416 (R$ Million) D 12M D 6M D Quarter 56.3% 16.4% 7.5% 4,118 4,462 4,794 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 D 12M D Quarter -650 bps -600 bps 40.0% 39.5% Efficiency Ratio 33.5% D 6M -310 bps 39.3% 36.2% 2Q09 1Q10 2Q10 1H09 1H10 11.1% D 12M D Quarter 680 bps 260 bps 15.3% ROAE 17.9% D 6M 580 bps 10.5% 16.3% 2Q09 1Q10 2Q10 1H09 1H10 1,917 Total Deposits+ Agribusiness Letter of 2,302 Credit (R$ Million) D 12M D 6M D Tri 66.0% 5.1% 5.6% 3,029 3,013 3,183 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 13/35
  • 14.
    Earnings Consistent incomegrowth in the last quarters, as a result of selective credit portfolio increase and cross-selling strategy Even during the global financial crisis, ROAE maintained a minimum of 10% 260 bps increase in the quarter 17.1% 9.9% 10.1% 11.1% 11.3% 10.7% 15.3% 17.9% 13.2% 10.5% 10.8% 16.3% ROAE 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 Gradual and consistent income growth in post-crisis period Net Income 18% up in the quarter 33,429 19,821 20,070 21,800 Net Income (R$ Thousand) 22,068 21,148 30,171 35,605 53,250 41,870 43,216 65,776 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 Investor Relations | 2Q10 14/35
  • 15.
    Loan Portfolio Positivedevelopment of the loan portfolio Corporate loan portfolio grew 7.5% in 2Q10 and 56.3% in 12 months 3,533 3,534 3,070 2,842 3,068 3,416 4,118 4,462 4,794 Corporate Loan (R$ Million) Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Increase of the corporate loan portfolio, which represented 72% of the total loan portfolio in June 2008 and now is responsible for 94% of the total 5,047 4,885 4,264 Total Credit (R$ Million) 3,873 3,922 4,113 4,753 4,980 5,208 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 15/35
  • 16.
    Loan Portfolio Profile Banco PINE operates in the major sectors of the economy, with product diversity and regional distribution that mirrors the GDP’s Loan Portfolio by Region Loan Portfolio by Sector Southeast 66% South 12% Northeast 10% Mid-West 10% Northeast 2% Electric and Renewable Energy Agriculture 8% Construction 7% Financial Institutions 6% Meat packing 5% Vehicles and Parts 5% Loan Portfolio by Product Working Capital 58% BNDES onlendings 9% Resolution 2770 1% Trade Finance 14% Guarantees 18% 11% Transportation Sugar and Ethanol 15% Infrastructure 13% and Logistics 4% Pharmaceutical and Cosmetic 3% Foreign Trade 3% Metallurgy 3% Specialized Services 2% Foodstuffs 2% Healthcare 2% Other 11% Investor Relations | 2Q10 16/35
  • 17.
    Loan Portfolio Quality The coverage of the overdue portfolio reached 214.7% in June 2010 Credit Portfolio Quality – June 2010 A, 49.6% D-H Overdue Credit Portfolio/ Total Credit 1.6% 1.7% 1.3% 0.7% 0.7% 0.7% Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 AA, 26.3% B, 18.9% C, 3.5% D-E, 0.4% F-H, 1.3% Overdue Credit Portfolio/ Total Credit 1.8% 1.7% 1.5% 0.8% 0.7% 0.7% Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Investor Relations | 2Q10 17/35
  • 18.
    Funding Banco PINEmaintains diversified funding sources 4,396 4,311 3,772 3,656 3,701 3,875 4,553 4,655 4,890 Total Funding (R$ Million) Multilateral Organizations US$28.9 Million US$33.5 Million US$30.2 Million US$20.0 Million US$50.9 Million Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 24 29 144 147 467 288 1,119 554 429 1,005 2,354 2,148 Funding Mix (R$ Million) 35 35 29 156 143 127 496 382 306 663 713 959 832 1,462 1,553 642 679 1,917 27 142 275 576 552 2,302 26 27 229 229 296 508 242 447 160 586 521 541 440 351 268 3,029 3,013 3,183 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Subordinanted Debt Borrowings and Onlendings Funds from Acceptance and Securities Issued Trade Finance / Cayman Loan Assignments Total Deposits Investor Relations | 2Q10 18/35
  • 19.
    Funding and LoanPortfolio Maturities In 2Q10, the average term of funding was 18 months, compared with 13 months for the loan portfolio R$ Million From 3 to 12 months R$1,675 Loan Portfolio + Cash Position From 1 to 3 years R$1,069 From 3 to 5 years R$250 From 1 to 3 years R$1,185 From 3 to 5 years R$299 More than 5 years R$661 Funding(1) (1) Excluding Shareholders’ Equity More than 5 years R$76 Up to 3 months (includes Cash) R$2,557 No Maturity R$36 Up to 3 months R$1,244 From 3 to 12 months R$1,465 Investor Relations | 2Q10 19/35
  • 20.
    Capital Adequacy Ratio(BIS) BIS ratio was 18.5% in June, which demonstrates a comfortable capital base. The rate growth reflects the approval of subordinated debt as Tier II 16.5% 15.6% 19.3% 18.6% 19.3% 17.2% 15.6% 14.9% 18.5% BIS Ratio Public Offering February / 2010 Subordinated Notes Joint Bookrunners US$125 Million Equity (R$ thousand) BIS Ratio (%) Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Tier I 854,041 14.6% Tier II 228,230 3.9% BIS Ratio 1,082,271 18.5% Investor Relations | 2Q10 20/35
  • 21.
    Results Operating Incomegrew 26.2% in 2Q10 2Q10 1Q10 2Q09 Gross income from financial intermediation 89,491 78,187 43,922 Fee Income 15,719 13,245 29,498 Personnel expenses (11,911) ( 10,989) (9,266) Other administrative expenses (19,356) ( 18,855) ( 21,805) Tax Expenses (7,361) (7,289) (7,716) Other Operating (expenses) income (6,147) (6,419) (131) R$ Thousand Operating Income 60,435 47,880 34,502 Non-operating income (790) - 886 Income before taxes 59,645 47,880 35,388 Income and social contribution taxes (15,485) ( 12,451) (9,056) Profit Sharing (8,555) (5,258) (4,532) Net Income 35,605 30,171 21,800 ROAE 17.9% 15.3% 11.1% Investor Relations | 2Q10 21/35
  • 22.
    Balance Sheet Theon-book loan portfolio posted a 2.5% increase in the quarter Jun-10 Mar-10 Jun-09 Assets 8,014 7,792 6,275 Securities and derivative financial instruments 3,364 2,968 2,791 Lending operations 4,097 3,996 2,951 (-) Allowance for loan losses (68) ( 67) (107) Net lending operations 4,029 3,929 2,844 Other 621 895 640 R$ Million Liabilities 7,161 6,953 5,463 Deposits 2,929 2,735 1,849 Money market funding 2,100 2,236 1,915 Funds from acceptance and securities issued 1,050 817 769 Other 1,082 1,165 930 Shareholders' equity 853 839 811 Liabilities and Shareholders' equity 8,014 7,792 6,275 Investor Relations | 2Q10 22/35
  • 23.
    Consistent and ConsolidatedStrategy Banco PINE is a commercial bank focused on delivering a full set of financial services to corporations We will intensify our focus on companies, closely follow our client portfolio and endeavor to meet their needs swiftly and in a personalized manner as well as offer a wide range of products that increase the potential for cross-selling opportunities (Press Release 4Q08 – Page 2) Our strategy is not only working capital and trade finance, but a strategy to service a company in a cross-selling amplified (...) The type of client chosen is focused on a comprehensive strategy for delivering multiple products (Conference Call 2Q09) We are and will be a commercial credit bank, this is our vocation, it is our DNA (Conference Call 2Q09) Our goal is to offer a wide range of products that meet the needs of our clients, and also optimize our capital use, therefore increasing our per-client profitability (Conference Call 3Q09) These two parts, putting more capital to work and cross-selling strategy, will make ROAE 2010 closer to 15% (Conference Call 3Q09) We are optimistic and believe in a growth tendency and recovery for the next quarters (Conference Call 4Q09) As we said since the end of 2008, the Bank successfully reinforced its strategy of cross-selling financial instruments (Conference Call 4Q09) Investor Relations | 2Q10 23/35
  • 24.
  • 25.
    Corporate Governance BancoPINE adopts the best corporate governance practices CClleeaarr PPoolliicciieess Performance Monitoring Settlement of Responsibilities Alignment of Internal Policies 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 RRiisskk MMaannaaggeemmeenntt Compliance with Legislation and interests Fiscal Council 100% tag along rights for all shareholders, including non-voting shares Arbitration procedures for fast settlement of litigation Investor Relations | 2Q10 25/35
  • 26.
    Main Committees BancoPINE believes that the use of the best corporate governance practices substantially enhances its business outcome 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 FFiissccaall CCoouunncciill 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 | 2Q10 26/35
  • 27.
    Ownership Structure OnJuly 1st, BMFBovespa granted Banco PINE’s request for an extension of the deadline for complying with the minimum free-float requirement Base: 07/30/2010 Common Preferred Total % Noberto Nogueira Pinheiro 45,443,872 14,490,556 59,934,428 70.2% Management - 2,631,243 2,631,243 3.1% Free Float - 20,768,595 20,768,595 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% The Bank shall maintain at least 24.3% free float until January 10, 2011 Should free float exceed 24.3% at any time before January 10, 2011, the Bank will not permit a reduction of this level Investor Relations | 2Q10 27/35
  • 28.
    Shareholders’ Profile Shareholders'profile change since the crisis 2007 IPO Foreign Investors 78.4% Institucional Investors 12.9% 39.7% 39.5% 37.8% 38.3% 38.4% 38.5% 39.5% 39.8% 40.5% 41.0% Foreign Investors 42.0% 41.6% 41.7% 39.3% 38.6% 40.7% 40.3% 40.1% 40.1% 39.6% 39.8% 38.4% 38.2% 38.1% 38.0% 37.3% Institutional Investors Individuals 8.7% Individuals 21.9% 21.5% 21.4% 21.5% 21.4% 20.9% 20.4% 21.1% 20.8% 19.9% Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 TThhee PPrriiccee//BBooookk VVaalluuee mmuullttiippllee wwaass 11..1177xx oonn AAuugguusstt 2200,, 22001100 21.1% 20.4% 21.0% Investor Relations | 2Q10 28/35
  • 29.
    Dividends Since 2008,Banco PINE has paid dividends/interest on equity on a quarterly-basis Dividends and Interest on Own Capital R$ million R$ Gross Amount Total Amount Amount per share 1Q10 15.0 0.179998 2Q10 20.0 0.239997 Total paid in 1H10 35.0 0.419995 Interest on Own Capital and Dividends 16 25 25 (R$ Million) 33 45 30 35 1H07 2H07 1H08 2H08 1H09 2H09 1H10 Investor Relations | 2Q10 29/35
  • 30.
    Social Responsibility BancoPINE supports and promotes the Brazilian culture Social Casa Hope Instituto Alfabetização Solidária Instituto Sedes Sapientiae Instituto Casa da Providência Sports Minas Tênis Clube: training program for athletes Passe de Mágica: created in 2004 by Magic Paula and Branca, former Brazilian basketball Culture A Cidade e a Rosa (The City and the Rose): retrospective of the artist Paulo Von Poser Paisagem e Olhar (Landscape and View): featuring watercolors of the biodiversity of the Rainforest Embarcações (Typical Vessels of the Brazilian Coast): registers the beauty of vessels from north to south of Brazil 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 Green Building Responsible Credit “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-produced sustainability reports for corporate loans. Investor Relations | 2Q10 30/35
  • 31.
  • 32.
    Rating upgrade byFitch Consistent performance and credit quality On May 24, Fitch Ratings, one of the main international ratings agencies, raised PINE's ratings as follows: Long-Term Local and Foreign Currency IDR from “B+” to “BB-” National Long-Term rating from “A-(bra)” to “A(bra)” National Short-Term rating from “F2(bra)” to “F1(bra)” Individual rating from “D” to “C/D” The agency attributed the improvement in ratings due to the following factors : Bank's consistent performance during the global financial crisis Adequate credit quality Consistent risks and credit manage Favorable capitalization ratios According to the agency, “the Bank’s rating reflects its agility in adapting to economic volatility, its strategy of consistently managing risks and balance sheet adjustments”. Additionally, 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”. Investor Relations | 2Q10 32/35
  • 33.
    Events and Highlightsof the Period Market recognition Banco PINE is one of the top 15 banks in Brazil in terms of Corporate Loans, according to the 2010 edition of Melhores e Maiores, from Exame magazine Banco PINE was considered the Best Commercial Bank in Brazil by World Finance Banking Awards The award was created by British magazine World Finance. Among the factors analyzed were: solutions for clients and optimization of relationships, innovation and flexibility and staying ahead of the competition. Investor Relations | 2Q10 33/35
  • 34.
    Banco PINE Pioneeringspirit, solid and transparent, with the agility that companies need The first Brazilian bank of its size to go public One of the 15 largest banks in Corporate loans, noted for its good management during the crisis Clear, accessible and consistent information Investor Relations | 2Q10 34/35
  • 35.
    Investor Relations NorbertoZaiet Júnior CFO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Analyst Phone: +55-11-3372-5553 / 5552 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. Investor Relations | 2Q10 35/35