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4Q10 Institutional Presentation
- 1. Institutional Presentation 4Q10and 2010
- 2. History and Profile PINE at a Glance Summary History Organizational Structure Business Strategy Brazilian Competitive Landscape Diversity of Products Corporate Credit Sales Desk Distribution PINE Investimentos Current Scenario and Future Prospects Highlights and Results IFRS Corporate Governance and Shares Corporate Governance Main Committees Shareholders’ Structure Shareholders Profile Dividends Other Highlights DEG and PINE Partnership 2010 Events Social Responsibility Appendix Investor Relations | 4Q10 | 2/44
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- 4. PINE at aGlance PINE specializes in providing corporate banking and risk management services for mid and large companies Credit Portfolio by Clients’ Annual Revenues PINE is an agile bank, focused on establishing long-term relationships with companies in the Upper Middle and Corporate segments Up to R$150 MM 12% December 31, 2010 PINE thoroughly understands the needs and strategies of its clients, offering a broad range of financial instruments and risk management tools for local and foreign currency Over R$1 BI 53% R$150 MM to R$500 MM 20% Strong relationships and penetration with clients: more than 80% of our clients are served by more than one of our financial products R$500 MM to R$1 BI 15% Business is structured along four primary business lines: • Corporate Credit: credit and financing products • Sales Desk: Instruments for hedging and risk management Solid Credit Ratings • PINE Investimentos: vehicle for Investment Banking products and Asset Management • Distribution: investment solutions for foreign and local investors A1.br Brazil national scale Ba2 Long term foreign and local-currency deposit Br A- Brazil national scale Strategy based on: • Product diversity • Qualified human capital • Efficient risk management BB- Long term foreign and local-currency deposit A(bra) Brazil national scale BB Long term foreign and local • Agility BB- local-currency deposit Investor Relations | 4Q10 | 4/44
- 5. History Founded in1997 PINE has shown a track record of continued development 1939 1975 1997 2005 2007 Foundation of Banco PINE Noberto Pinheiro becomes Banco PINE’s sole shareholder Foundation of Banco Central do Nordeste by the Pinheiro Family Noberto Pinheiro becomes one of BMC’s controlling shareholders …. Consolidation of PINE’s corporate banking strategy IPO 1939 – Pinheiro Family founds its first bank in Brazil – 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 – IPO Investor Relations | 4Q10 | 5/44
- 6. Organizational Structure Non-bureaucraticstructure and flat hierarchy, streamlining the decision making process Board of Directors Internal Auditors Tikara Yoneya External Auditors PwC Noberto Pinheiro Chairman Noberto N. Pinheiro Jr. Vice-Chairman Maurizio Mauro Independent Member Fernando Albino External Member Mailson da Nóbrega Independent Member Fiscal Council O ti l Ri k Sidney Veneziani Sérgio Machado Alcindo Itikawa CEO Noberto N. Pinheiro Jr. Operational Risk & Compliance PINE Investimentos Gustavo Junqueira Planning and Control Susana Waldeck Sales & Trading Norberto Zaiet Jr. Origination Clive Botelho Credit Risk & Analysis Gabriela Chiste Operations Ulisses Alcantarilla q Corporate • 14 origination platforms • São Paulo • Campinas • Ribeirão Preto Corporate Credit • Analysis and granting of credit • Credit risk monitoring and analysis by sector Market and liquidity Risks Human Resources Accounting Controlling Investment Banking • Capital Markets • Corporate Finance • Distressed and Special Situations Investment Corporate Processing and Formalization Legal Trading Risk Management • Fixed Income • Currencies • Commodities Local Distribution • São José do Rio Preto • Rio de Janeiro • Curitiba • Porto Alegre • Belo Horizonte • Recife • Fortaleza Management Asset Management International Distribution Macro and Commodities Research Products Investor Relations Investor Relations | 4Q10 | 6/44
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- 8. Brazilian Competitive Landscape Financial sector consolidation reduced options to our target segment Focus on the upper middle and low corporate segments Large Multiple banks Consolidation in the banking sector caused reduction in the availability of credit lines and Corporate sector mid-sized banks Opportunity to expand operations IB and PINE f d l i f financial instruments to the bank’s segment Unique approach: offering diversity of products to PINE: focused on complete service for companies, offering tailor-made products. Foreign Banks a market segment poorly serviced by the banking industry PINE is the generally the client’s first call for structured solutions 9 Fast response 9 Dedicated team of specialists with deep Mid-sized banks knowledge of the clients business, balance sheet and market positioning 9 Tailor-made solutions based on a diverse product base Investor Relations | 4Q10 | 8/44
- 9. Diversity of Products A diversity of financial instruments for the diverse needs of our clients Corporate Credit Credit products in local and foreign currency Sales Desk Derivative products for mitigating markets’ mismatches risks for clients PINE Investimentos Investment Banking C it l k t Loans Overdraft accounts BNDES onlending Bank Guarantees Fixed Income Currencies Commodities Capital markets Corporate finance Distressed & Special Situations Investment Management Compror/Vendor ACC/ACE Export Finance Finimp Letters of Credit g Asset Management Wealth Management 2,770 onlending Syndicated Loans Structured Loans Distribution Investment products in local and foreign currency CD – Certificate of Deposit Eurobonds Subordinated notes 2,770 onlending Local deposits Double index CDB LCA /LCI Senior and subordinated local notes Multilateral lines Debt Capital Markets Time Deposits Investor Relations | 4Q10 | 9/44
- 10. Corporate Credit Constantlysearching for diversification and expansion of the credit exposure Actions Personalized, agile service, working closely with clients and keeping a low ratio of companies per officer: each account manager covers only 13 economic groups on Credit Portfolio by Product Working l Resolution Trade 2770 0.2% average. More than 70 officers focused on specific geographic areas. It provides the bank with local and highly updated credit intelligence. Capital 58.4% Bank G Finance 9.1% Guarantees 17.8% Active business relationship with more than 600 different economic groups Origination network is comprised of 10 branches divided into 14 b siness business platforms in different Bra ilian Brazilian economic BNDES centers More than 30 credit analysts that guarantee intelligent analysis in each sector onlending 14.5% Efficient loan and collaterals process, documentation and controls, which results in historically low NPL ratios Credit Approval: Electronic Process Origination Officers Credit Analysts Credit origination Credit analysis, visit to clients, data updates, interaction with internal Regional Heads of Origination and Credit Analysis Discussion around sizing, collateral, structure etc Chief Credit Officer and Credit Analysts Presentation to the Credit Committee CREDIT COMMITTEE (6 Members) Centralized and unanimous decision making process research team Investor Relations | 4Q10 | 10/44
- 11. Sales Desk Expertisequalifies the Bank to quickly respond to market conditions and clients demands Portfolio Breakdown Business DERIVATIVE SEGMENTS Fixed Income: Fixed Floating Inflation Libor As of December 31, 2010 Fixed Fixed, Floating, Inflation, Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar, Spot Income 29% Currencies 63% Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy Notional: R$ 2,822 million Commodities 8% Purpose To bring predictability to the clients’ balance sheet TRENDS clients Increased participation of Commodities hedging in the Executed with clients that have an ongoing credit relationship with PINE, rated between AA and C 8 professionals assigned to the desk, dedicated to serve total portfolio Short-term portfolio (average maturity of transactions under 6 months) p g , clients on their daily needs According to Cetip ranking, PINE is number 13 in overall derivatives and top 3 in commodities hedging Increased usage of risk mitigation tools such as initial margin and threshold. Investor Relations | 4Q10 | 11/44
- 12. PINE Investimentos Creatingnew values for our clients and optimizing the use of the Bank’s Capital PINE Investimentos offers unique solutions for its clients in Investment Banking and Investment Management. With a highly qualified team with deep knowledge of the market, this area operates as an advisor and not as counterparty, serving the interests and needs of companies and their shareholders, in a customized manner and with diversity of products. Capital Markets Investment Banking Investment Management Structuring and Placement of Securities Asset Management Fixed Income Funds Intermediation Structured Transactions Corporate Finance Credit Funds Exclusive Mandates Wealth Management M&A P tf li M t Private Placements Strategic and Financial Advisory Restructuring Corporate Governance Portfolio Management p Distressed & Special Situations Advisory on Workouts Negotiation of NPLs Ad i A iiti f St dA t Advisory on Acquisitions of Stressed Assets Investor Relations | 4Q10 | 12/44
- 13. Distribution Desk Investmentalternatives in local and foreign currency to domestic and foreign investors PINE’s Distribution Desk is responsible for serving investors, offering traditional investments and also alternatives tied to the credit origination platform, capital market, asset management and other structured transactions. The objective is to provide the clients with a diversified portfolio of investments in line with market development, that adjust to investors’ risk profiles. The Distribution Desk counts on PINE’s expertise in structuring and intermediation of fixed income transactions. Our Distribution Desk is segmented by type of investor to provide a personalized approach. Investors Products Family Offices High Net Worth Individuals Local Currency Traditional investments (local deposits such as CDB/RDB/CDI, LCA/LCI) Senior and subordinated local notes Corporates Asset Managers Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, CDCAs, among others) Derivatives Financial Institutions F i C Pension Funds Foreign Investors Foreign Currency Time Deposits and CD – Certificate of Deposit Senior and Subordinated bonds issued by PINE Debt Capital Markets (CCB, Credit Fund, Bonds) – through Credit Linked Notes Derivatives Investor Relations | 4Q10 | 13/44
- 14. The Current Scenarioand Future Prospects PINE has the key resources to continue developing its strategy: adequate capitalization, efficient funding and strong management team Adequate capital structure Efficient funding structure US$125 million subordinated debt, approved by the Brazilian Central Bank as Tier II capital in June 2010 Regulatory Capital: R$ 1.1 billion (Dec/10) Lengthening of average maturities: 18 months (Dec/10) Greater diversification of funding sources Capital Adequacy Ratio (BIS) of 17.4% (Dec/10) DEG and PINE partnership (Feb/11) A/B Loan of USD 106 million (Jan/11) FIDC of R$ 300 million (Apr/11) Corporate clients Strong and motivated team Meritocracy Incentives Customized service Deep knowledge of clients needs Product diversity Qualification Around 80% of the client base is served by more than one product Investor Relations | 4Q10 | 14/44
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- 16. 2010 Highlights Allmajor BS and P&L indicators showed improvement in 2010 Corporate Credit Portfolio (R$ Million) 39.5% Operating Income (R$ Million) 39.1% Total Funding (R$ Million) 23.3% 5,747 196.4 4 531 5,589 4,531 4,118 141.2 Dec-09 Dec-10 Dec-09 Dec-10 2009 2010 Net Income(R$ Million) ROAE Effiency Ratio 39.0% 370 bps -70 bps 85.1 118.3 10.3% 14.0% 34.6% 33.9% 2009 2010 2009 2010 2009 2010 Investor Relations | 4Q10 | 16/44
- 17. 2010 Highlights -Corporate Highlights for the corporate business Consistent performance in the corporate business Broad and close relationship with companies in various sectors, such as sugar and alcohol, infrastructure, renewable energy, construction, among others Positive contribution of all business segments: Corporate Credit, Sales Desk and PINE Investimentos Net Income of R$ 159.3 million ROAE of 18.8% Corporate Business Income Breakdown FY 2010 Corporate Credit 67% PINE Investimentos 3% Treasury 7% Sales Desk 23% Investor Relations | 4Q10 | 17/44
- 18. NIM – NetInterest Margin Income from financial intermediation increased and margins remained stable Income from Financial Intermediation Before Provision (R$ Million) 22.5% Income from Financial Intermediation After Provision (R$ Million) 16.7% 422.8 345 3 345.2 295.8 345.3 2009 2010 2009 2010 Financial Margin Before Provision Financial Margin After Provision -40 bps -60 bps 7.8% 7.4% 6.7% 6.1% 2009 2010 2009 2010 Investor Relations | 4Q10 | 18/44
- 19. 5,747 Credit Portfolio Consistent development Corporate Credit Portfolio Mix 13 (R$ Million) 1,022 4,794 688 5,265 543 520 21 4,462 19 18 15 4,118 Resolution 2770 Corporate credit portfolio 176 242 455 629 833 688 350 3 0 511 634 842 827 540 708 663 707 745 66 44 36 32 Trade Finance Guarantees 3,070 2,842 3,068 3,416 grew 9.1% in 4Q10, 39.5% in 12 months. 276 87 2,104 1 767 1,964 2,284 2,703 2,821 2,792 3,251 3,358 85 72 68 272 292 BNDES onlending 1,767 , Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Working Capital T t l C dit P tf li Corporate credit portfolio Total Credit Portfolio (R$ Million) represents 97% of the total credit portfolio. 4,264 3,873 3,922 4,113 4,753 4,980 5,208 5,617 6,029 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Investor Relations | 4Q10 | 19/44
- 20. Credit Portfolio Profile- Corporate Diversified growth Agriculture 9% Credit Portfolio by Industry Credit Portfolio by Product Construction 6% Transportation and Logistics 6% Financial Institutions 5% Meat packing 4% Specialized Services Working Capital Resolution Trade Finance 2770 0.2% Electric and Renewable Energy 10% 3% Vehicles and Parts 3% Pharmaceutical and Cosmetic 3% 58.4% Bank 9.1% Guarantees Infrastructure 13% Telecom 3% Foreign Trade 3% BNDES l di 17.8% Sugar and Ethanol 14% Foodstuffs Metal and 2% Mining 2% Other 14% onlending 14.5% Credit portfolio by region Local Presence North 2% Pernambuco 2% Total: T t l 71% Ceará 2% Minas Gerais 9% Mid-West 11% Northeast 10 Branches 14 Business Platforms Rio de Janeiro 11% São Paulo 34% Paraná 6% Southeast 70% 6% South 11% Rio Grande do Sul 7% Investor Relations | 4Q10 | 20/44
- 21. Non-Recurring Provision Countercyclicalmovement: even more conservative standard for credit coverage In 4Q10, PINE created non-recurring provisions for loan losses, in two ways: Reclassification of transactions in accordance with Resolution 2682: all companies with active transactions were analyzed and 9.5% of companies in the portfolio were upgraded, while 7.9% were downgraded. A generic additional provision was made to bring the coverage o g p g g f the credit portfolio to a more comfortable level. Total Credit Coverage 44 bps D-H Coverage -130 bps 320 bps 2.45% 71 bps 94.1% 89.6% 92.8% 2.01% 1.74% Dec-09 Sep-10 Dec-10 Dec-09 Sep-10 Dec-10 Investor Relations | 4Q10 | 21/44
- 22. As of December31, 2010 Efficient Risk Management Constant monitoring of the credit portfolio and balance sheet Overdue Total Contracts Overdue Installments Credit Portfolio quality B 23.8% Collaterals Receivables 38% Property Fiduciary Alienation Non Performing Loans C 2.6% 6.3% 2.0% D-E 0 9% Product 16% 1.0% 1.3% 0.8% 0.3% Dec-08 Dec-09 Dec-10 AA-A 67.2% 0.9% F-H 1.7% Fiduciary Alienation 36% Investments 10% Total portfolio coverage: 2.45% Leverage1 Cash Position / Time Deposits Average Value at Risk (R$ Thousand) 4.7x 5.5x 6.4x 40% 37% 43% 2,669 1,389 1,637 2008 2009 2010 1 - Funding / Shareholder Equity 2008 2009 2010 2008 2009 2010 Investor Relations | 4Q10 | 22/44
- 23. Retail Portfolio Reducedimpact coming from the retail business expected for 2011, due to the retail credit portfolio run-off Payroll Credit Portfolio (R$ Million) run * 029 1,0 890 730 594 475 378 286 225 177 Projected Run-off of Retail Loans Assigned with Recourse Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 (*) On and off book portfolio (R$ Million) 152 74 31 11 Dec-10 Dec-11 Dec-12 Dec-13 Investor Relations | 4Q10 | 23/44
- 24. Increasingly Diversified FundingSources Comfortable funding situation 179 166 194 194 160 200 152 55 52 51 Funding Mix (R$ Million) 2770 Lines Private Placements 5,375 4,871 4,531 4,634 5,589 199 214 453 626 829 472 393 350 361 326 419 330 249 192 226 230 239 227 242 141 116 108 75 276 203 105 104 79 74 77 87 151 71 71 60 54 53 54 Capital Market Multilateral Lines L 3,852 3,729 3,621 3,674 1,149 1,114 1,146 1,478 1,572 249 317 282 529 101 102 82 169 68 87 176 242 601 536 473 914 797 650 6 Loan Assignments Trade Finance BNDES 531 1,778 1,817 1,867 1,908 1,912 681 786 1,309 887 891 93 85 84 85 72 Individuals Corporate Clients Total Depo 689 683 945 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Institutional osits Foreign Funding – Multilateral Agencies A/B Loan (January, 2011) US$106.0 Million Investor Relations | 4Q10 | 24/44
- 25. Funding and CreditPortfolio Maturities 3 month positive gap between credit and funding R$ million Loan Portfolio + Cash Position Funding 2,578 9 1,759 - 2 1,675 1,644 434 106 42 1,400 1,420 580 396 No Maturity Up to 3 months (includes Cash) From 3 to 12 months From 1 to 3 years From 3 to 5 years More than 5 years (*) Does not consider Shareholders' Equity Average Term Credit: 15 months Funding: 18 months Investor Relations | 4Q10 | 25/44
- 26. Capital Adequacy Ratio(BIS) BIS ratio at comfortable levels BIS Ratio Tier II Tier I Public Offering Minimum Capital Requirement (11%) 0.8% 0.6% US$ 125 Million 0.8% 0.5% 0.5% 0 5% 3.7% 3.6% 3 6% 19.3% 18.6% 19.3% 17.2% 15.6% 14.9% 18.5% 18.4% 17.4% Subordinated Notes 18.5% 17.8% 18.7% 0.5% 3. % 3.6% 16.7% 15.1% 14.4% 14.8% 14.8% 13.8% February / 2010 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 BIS Ratio Equity (R$ Thousand) 861,152 Tier I 13.8% 226,139 1,087,291 Tier II 3.6% Capital Adequacy 17.4% Investor Relations | 4Q10 | 26/44
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- 28. 2010 Highlights Themain ratios show results of PINE's strategy Total Revenue (R$ million) 14.7% Corporate Total Revenue (R$ million) 12.7% Total Revenues (-) Fee Income and Comissions (R$ Million) 9.4% 484 2 423 4 463.2 457 7 422.3 484.2 423.4 457.7 406.2 2009 2010 2009 2010 Net Income (R$ million) ROAE 220 b Corporate Net Income (R$ million) 2009 2010 22.3% bp 12.9% 132.5 162.1 17.7% 19.9% 155.5 175.6 2009 2010 2009 2010 2009 2010 Investor Relations | 4Q10 | 28/44
- 29. IFRS – MainChanges IFRS impacts over the main figures of the bank Impairment PINE estimates a loan loss provision based on the historical loss and recoverable amounts and other circumstances recognized upon evaluation. These criteria differ in certain aspects from the criteria adopted under BR GAAP. Effective Interest Rate In IFRS all revenues and expenses related to financial instruments are incorporated to the effective interest rates while the contract is active An important impact is the recognition of certain revenues that in BR GAAP are booked as Fee I d i IFRS b k d t f th ff ti i t t t (th f i di Income, and in are booked as part of the effective interest rate therefore, recognized in an accrual basis). Accrual of Credit Portfolios Sold with Recourse Under BR GAAP the income from assigned loan portfolio with recourse was recognized upon the sale, in IFRS the income of transactions assigned with recourse are recognized on an accrual basis throughout the life of the contract. Income Tax and Social Contribution Adjustments to deferred Income Tax and Social Contribution calculated on IFRS adjustments were reflected in the reconciliation. Investor Relations | 4Q10 | 29/44
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- 31. Corporate Governance PINEadopts the best corporate governance practices Two independent members and one external member on the Board of Directors Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990 Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo Abril Fernando Albino de Oliveira: Former Director of CVM’s and a partner of Albino Advogados Associados São Paulo Stock Exchange (BM&FBovespa) 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 cases Investor Relations | 4Q10 | 31/44
- 32. Main Committees PINEbelieves 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 Fiscal Council Audit Support Committee Executive Committee Treasury Committee (ALCO) National and Foreign Funding Products Credit Committee Retail Committee Compliance and Basel Risk Committee Corporate Finance Committee Committee Delinquency Committee Performance Evaluation Committee Ethics Committee IT Committee Human Resources Committee Investor Relations | 4Q10 | 32/44
- 33. Shareholders’ Structure OnDecember 29th, free floating adequacy reached through the sale of a portion from shares in treasury. Base 03/21/11 ON PN Total % Controlling Shareholder 4 5,443,872 14,370,556 59,814,428 70.0% Management - 2,737,946 2,737,946 3.2% Free Float - 21,481,892 21,481,892 25.2% Individuals - 4,509,255 4,509,255 5.3% Institutional Investors - 6,608,707 6,608,707 7.7% Foreign Investors - 10,363,930 10,363,930 12.1% Subtotal 45,443,872 38,590,394 8 4,034,266 0.0% Treasury - 1,374,839 1,374,839 1.6% Total 45,443,872 39,965,233 85,409,105 100.0% Market Maker In January 2011, hiring of XP Investimentos as Market Maker to increase the PINE4’s liquidity in the market Investor Relations | 4Q10 | 33/44
- 34. Shareholders’ Profile Shareholders'profile change since the crisis 2007 IPO Foreign Investors 78.4% 40.5% 41.0% 42.0% 41.6% 41.7% 42.7% 42.7% 42.2% 41.2% 38.2% 40.1% 39.6% 39.8% 40 4% 44.8% Institutional Investors Institutional Investors 12.9% 38.5% 39.5% 39.8% 38.4% 38.2% 38.1% 38.0% 37.3% 37.6% 37.9% 39.0% 40.4% Foreign Investors Individuals Individuals 8.7% 21.4% 20.9% 20.4% 21.1% 20.8% 19.9% 20.4% 21.0% 19.7% 19.4% 18.7% 18.3% 17.0% Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Investor Relations | 4Q10 | 34/44
- 35. Dividends Since 2008,Banco PINE has paid dividends/interest on own capital 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 3Q10 20.0 0.239997 4Q10 20.0 0.238282 Total paid in 2010 75.0 0.898274 Dividends and Interest on Own Capital (R$ Million) 45 16 25 25 33 30 35 40 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Investor Relations | 4Q10 | 35/44
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- 37. DEG and PINEPartnership Subscription agreement with DEG – a leading German bank – for an equity investment in PINE Highlights Member of KfW Bankengruppe, one of the five largest banks in Germany DEG’s investment in PINE will be their first equity investment in a Brazilian financial institution DEG will subscribe new preferred shares issued by the Bank by the lower value between R$43.7 million and €20 million DEG will acquire approximately 2,422,480 shares (with capital increase) If the investment had occurred in December 2010, the book value per share would have gone from R$10,33 to R$10,54 by the end of 2010 Investor Relations | 4Q10 | 37/44
- 38. 2010 Events andHighlights Market Recognition PINE is one of the 15 largest banks in the country in Corporate credit*, according to the 2010 edition of Melhores e Maiores, from Exame magazine PINE was considered the Best Commercial Bank in Brazil by World Finance Banking Awards in August 2010. The award was created by British magazine World Finance. Some of the most important criteria were: solutions for clients and optimization of relationships, innovation and flexibility, and staying ahead of the competition On May 24, Fitch Ratings raised PINE's ratings, citing the agility in adapting to economic volatility, its strategy of consistently managing risks and balance sheet adjustments In September, 2010, LF Ratings raised PINE’s rating from A to A+. According to the agency, the upgrade reflects aspects related to support, management, strategy and financial strength During the same period Austin Ratings upgraded PINE's rating outlook to positive Investor Relations | 4Q10 | 38/44
- 39. Social Responsibility BancoPINE supports and promotes Brazilian culture Social Casa Hope Instituto Alfabetização Solidária Culture A Cidade e a Rosa (The City and the Rose): retrospective of the artist Paulo Von Poser Instituto Sedes Sapientiae Instituto Casa da Providência Paisagem e Olhar (Landscape and View): featuring watercolors of the biodiversity of the Rainforest Sports Minas Tênis Clube: training program for athletes Passe de Mágica: created in 2004 by Magic P l d B f B ili b k tb ll Embarcações (Typical Vessels of the Brazilian Coast): registers the historic beauty of vessels from north to south of Brazil Paula and Branca, former Brazilian basketball players, to offer basketball instruction for children Projeto Rede Atletismo Novos Talentos: (New Talent Athletics Network Project) i i f hl d l d d Responsible Credit training program for athletes developed and maintained by the Aquarela Foundation Green Building “Lists of Exceptions”: the Bank does not finance – with multilateral organizations lines - projects or those organizations that damage the environment, are involved in illegal labor practices or produce, sell or use products, substances or activities considered prejudicial to society. System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally-produced sustainability reports for corporate loans. Investor Relations | 4Q10 | 39/44
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- 41. Ratings Moody’s Standard& Fitch Ratings Riskbank LF Rating Austin Poor's nd Foreign rrency Long Term Ba2 BB- BB- - - - Short Term B B - - - Local an Cur Long Term Ba2 BB- BB- - - - Short Term B B - - - Brazil National Scale Long Term A1.br brA- A(bra) 10.47 Low Risk for the Medium Term (-) A+ A Short Term Br-1 F1(bra) Investor Relations | 4Q10 | 41/44
- 42. Key Performance Indicators– BR GAAP 4Q10 3Q10 4Q09 2010 2009 Earnings and Returns Net Income (R$ million) 1 4,898 37,596 21,148 118,270 8 5,086 Annualized ROAE 7.0% 18.6% 10.7% 14.0% 10.3% Annualized ROAAw 1 1.1% 3.0% 1.9% 2.3% 1.9% Annualized financial margin before provision 8.5% 8.4% 11.3% 7.4% 7.8% Annualized financial mergin after provision 4.9% 7.4% 11.9% 6.1% 6.7% Balance Sheet (R$ thousand) Total loan portfolio 2 6,015,846 5,601,470 4,731,043 6,015,846 4,731,043 Corporate credit portfolio 2 5,746,649 5,265,410 4,118,057 5,746,649 4,118,057 Assets weighted by risk 5,473,250 5,206,221 4,682,157 5,473,250 4,682,157 Total deposits 3 3,698,360 3,584,541 3,029,269 3,698,360 3,029,269 Total funding 5,588,883 5,374,700 4,531,036 5,588,883 4,531,036 Shareholders' equity 867,132 872,761 825,212 867,132 825,212 Credit portfolio quality Non performing loans - 15 days 0.26% 0.83% 0.77% 0.26% 0.83% Non performing Loans - 60 days 0.24% 0.69% 0.72% 0.24% 0.69% Non performing loans - 90 days 0.15% 0.56% 0.54% 0.15% 0.56% Loan coverage 2.45% 1.74% 2.01% 2.45% 2.01% Performance BIS ratio 17.4% 18.4% 15.6% 17.4% 15.6% Efficiency ratio 33.8% 30.6% 26.4% 33.9% 34.6% Earnings per share (R$) 0.18 0.45 0.25 1.41 1.02 Book value per share (R$) 10.33 10.47 9.90 10.33 9.90 ( 1) Risk weighted assets. ) g (2) Includes guarantees. (3) Includes Agribusiness Letter of Credit. Investor Relations | 4Q10 | 42/44
- 43. Key Performance Indicators– IFRS 2010 2009 Year (%) Earnings and Returns Net Income (R$ thousand) 162,073 132,537 22.3 ROAE 19.9% 17.7% 220 bps ROAAw 1 3.2% 3.0% 20 bps NIM 7.8% 8.4% -60 bps Balance Sheet (R$ thousand) Total loan portfolio 2 6,004,414 4,722,309 27.1 Shareholders' equity 855,290 769,566 11.1 Loan coverage 2.0% 1.9% 10 bps Performance Efficiency ratio 31.5% 32.2% -70 bps Earnings per share (R$) 1.95 1.58 23.4 Book value per share (R$) 10.19 9.23 10.3 (1) Risk weighted assets . (2) Includes guarantees. Investor Relations | 4Q10 | 43/44
- 44. Investor Relations NorbertoZaiet Junior CFO Nira Bessler Head of Investor Relations Alejandra Hidalgo Investor Relations Analyst Phone: +55-11-3372-5553 / 5552 www.bancopine.com.br/rir 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 | 4Q10 | 44/44