Banco PINE's Corporate Banking Strategy and Financial Results

Banco PINE specializes in the corporate sector, offering its
clients a complete range of financial products and services
August - 2010

Banco PINE
2Q10
Presentation

Agenda
Highlights and Results
Business Strategy
Business Opportunities
Cross-Selling Opportunities
Agility in Granting Credit
Organizational Structure
Human Resources
The Current Scenario and Future Prospects
Corporate Governance and Shares
Corporate Governance
Main Committees
Shareholders’ Structure
Shareholders’ Profile
Dividends
Social Responsibility
Rating upgrade by Fitch
Events and Highlights of the Period
Banco PINE
Investor Relations | August - 2010 3/32

Highlights
Main indicators improvement: profitability, credit and funding
Operating Income (R$ Million)
Δ 12M Δ Quarter
75.2% 26.2%
Δ 6M
65.8%
Net Income (R$ Million)
Δ 12M Δ Quarter
63.3% 18.0%
Δ 6M
57.1%
Corporate Loan Portfolio
(R$ Million)
Δ 12M Δ 6M Δ Quarter
108 3 65.8
56.3% 16.4% 7.5%
34.5
47.9
60.4 65.3
108.3
21.8
30.2 35.6 41.9
2Q09 1Q10 2Q10 1H09 1H10
3,068 3,416
4,118 4,462 4,794
J 09 S 09 D 09 M 10 J 10
2Q09 1Q10 2Q10 1H09 1H10 ROAE Efficiency Ratio
Jun-Sep-Dec-Mar-Jun-Total Deposits+ Agribusiness Letter of
Credit (R$ Million)
Δ 12M Δ Quarter
-650 bps -600 bps
Δ 6M
-310 bps
Δ 12M Δ Quarter
680 bps 260 bps
Δ 6M
580 bps
Δ 12M Δ 6M
Δ Tri
66.0% 5.1%
5.6%
40.0% 39.5%
33 5%
39.3%
15.3%
17.9%
11.1% 36.2%
10.5%
16.3%
1,917
2,302
3,029 3,013 3,183
33.5%
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 2Q09 1Q10 2Q10 1H09 1H10 2Q09 1Q10 2Q10 1H09 1H10

Earnings
Consistent income growth in the last quarters, as a result of selective credit portfolio increase and
cross-selling strategy
ROAE
Even during the global
financial crisis, ROAE
maintained a minimum of 10%
7.1%
3%
7.9%
%
6.3%
260 bps increase in the
quarter
17
9.9%
10.1%
11.1%
11.3%
10.7%
15.
1
13.2%
10.5%
10.8%
16
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10
Net Income (R$ Thousand)
76
Gradual and consistent income
growth in post-crisis period
Net Income 18% up in the
quarter
33,429
,821
,070
,800
,068
,148
30,171
35,605
53,250
41,870
43,216
65,77
19,
20,
21
22
21,
3
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10

Loan Portfolio
Positive development of the loan portfolio
Corporate Loan (R$ Million)
Corporate loan portfolio grew 7.5% in
2Q10 and 56.3% in 12 months
8
462
,794
3,533
3,534
3,070
2,842
3,068
3,416
4,11
4,4
4,
Total Credit (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
047
85
4
53
980
208
the total loan portfolio in June 2008
and now is responsible for 94% of the
total
5,0
4,8
4,264
3,873
3,922
4,113
4,75
4,9
5,2

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
GDP s
South
12%
Loan Portfolio by Sector
Northeast
10%
A i l
Construction
7% Financial
Institutions
Meat packing
Southeast
66%
Mid-West
10%
Northeast
2%
Electric and
Renewable
Energy
Agriculture
8%
6%
5%
Vehicles and
Parts
5%
Loan Portfolio by Product
Working Capital
11% Transportation
and Logistics
4%
Pharmaceutical
58% BNDES onlendings
9%
Resolution 2770
1%
Infrastructure
13%
and Cosmetic
3%
Foreign Trade
3%
Metallurgy
3%
Trade Finance
14%
Sugar and
Ethanol
15%
Specialized
Services
2%
Foodstuffs
2%
Healthcare
2%
Other
11%
Guarantees
18%

Loan Portfolio Quality
The coverage of the overdue portfolio reached 214.7% in June 2010
D-H Overdue Credit Portfolio/ Total Credit
Credit Portfolio Quality – June 2010
1 6% 1 7%
A, 49.6%
1.6% 1.7%
1.3%
0.7% 0.7% 0.7%
M 09 J 09 S 09 D 09 M 10 J 10
B, 18.9%
Mar-Jun-Sep-Dec-Mar-Jun-Overdue Credit Portfolio/ Total Credit
AA,
26 3%
C, 3.5%
26.3% D-E, 0.4%
F-H, 1.3% 1.8% 1.7%
1.5%
0.8% 0.7% 0.7%
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10

Funding
Banco PINE maintains diversified funding sources
Total Funding (R$ Million)
Multilateral Organizations
4,396
4,311
3,772
,656
,701
3,875
4,553
4,655
4,890
US$28.9 Million US$33.5 Million
3
3
3
3
US$30.2 Million US$20.0 Million US$50.9 Million
229 296 508
24
29
26 27
229
Funding Mix (R$ Million)
Subordinanted Debt
1,119
1,005
552
440 351 268
288
429
663 713
642
576
586 521 541
467 554
496 382 306
275
242 447 160
144 147
156 143 127
142
35
35 29
27
Borrowings and
Onlendings
Funds from
Acceptance and
2,354 2,148
1,462 1,553
1,917
2,302
3,029 3,013 3,183
959 832
679
Securities Issued
Trade Finance /
Cayman
Loan Assignments
,
Total Deposits

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
Loan Portfolio + Cash Position From 3 to 5
years
Funding(1)
From 3 to 12
months
R$1,675
From 1 to 3
years
R$1,069
From 3 to 5
years
R$250
From 1 to 3
years
R$1,185
R$299
More than 5
years
R$661
More than 5
years
R$76
No Maturity
R$36
From 3 to 12
Up to 3
months
(includes
Cash)
R$2,557
Up to 3
months
R$1,244
months
R$1,465
(1) Excluding Shareholders’ Equity

Capital Adequacy Ratio (BIS)
BIS ratio was 18.5% in June, which demonstrates a comfortable capital base. The growth rate
reflects the approval of subordinated debt as Tier II
BIS Ratio
Public Offering
February / 2010
Subordinated Notes
Joint Bookrunners
16.5%
15.6%
19.3%
18.6%
19.3%
17.2%
15.6%
14.9%
18.5%
US$125 Million
p p
Equity (R$ thousand) BIS Ratio (%)
Tier I 854,041 14.6%
Tier II 228,230 3.9%
BIS Ratio 1,082,271 18.5%

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)

Business Opportunities
The banking sector concentration reduced the credit offer to the segment which Banco PINE is in
Positioning in 2008 Positioning in 2010
Large Mutiple
banks
Corporate sector mid-size banks
Opportunity to expand operations
Banco PINE: focused on corporate loan,
offering tailor-made products with
transparency and agility.
Foreign
Banks
Mid-sized banks

Cross-selling Opportunities
Financial instruments diversity for the diverse needs of our clients
Challenges :
L it t t l
Capital optimization:
Selective loan portfolio growth
Lower interest rates & lower
volatility
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
Manufacturer
Agribusiness
Others
EXIM
Pre-shipping
Performance
Credit/Financial
Institutions
Rates
Commodities
Equities
Macro Advisory
FIDC (Receivables
Investment Funds)
CDI (Interbank
Deposit
Certificate)
LCA ( Agribusiness)
q y
Credit Funds
Advisory
Letter of Credit
Advance Payments
Documentary
Collection
Spot Foreign
Exchange
pp g
Special Pre-shipping
Post-shipping
Automatic BNDES
FINEM
g )
Credit Funds
Private Equity
Foreign Currency
CD -Certificate of
Deposit
Foreign currency
loans and
investments
Loans (2,770)
Foreign Lending
Demand Deposit
Accounts
Eurobonds
Custody Account
Money Market
Foreign
Investments
Accounts
Time Deposit
Private Equity

Cross-selling Opportunities
Diversity of financial instruments for the diverse needs of our customers
Credit products in local and foreign currency
Loans
Funding products in local and foreign currency
Local deposits
Credit and Funding Products
Overdraft accounts
Discounts
BNDES onlending
Guarantees
Double index CDB
LCA (Agribusiness Letters of Credit)/LCI
BNDES onlending
FIDC and Credit funds
Compror/Vendor
ACC/ACE
Export Pre-payment
Finimp
Senior and subordinated local financial notes
Time Deposits
CD – Certificate of Deposit
Eurobonds
Letter of Credit
2,770 onlending
Subordinated notes
2,770 onlending
Clients’ Sales Desk PINE Investimentos
Products for mitigating market risk mismatches
Currencies, Commodities, Interest and
Index derivatives:
Credit Structuring
Syndicated Loans
Third-parties Asset Management
NDF
Options
Swaps
Structured Options
Credit Funds
Private Equity Funds
Corporate Services
Mergers & Acquisitions
p
FX Financial Advisory

Agility in Granting Credit
72-hour process in average; credit analysis may be concluded within 1 business day in special cases
CREDIT COMMITTEE
Strong origination team
Presentation of
proposals to the
Chief Credit Officer
Close relationship to clients and business with high
renewal ratio among clients
Cross-selling of credit products and financial
Committee
rocess
and Credit Analysts
Platform and
g p
services
Diligent and complete credit analysis
Issue of opinion
Credit analysis, visits
to clients, data
ctronic Pr
Regional
Superintendents
Expertise and flexibility in credit structuring
Close monitoring of borrowers’ credit evolution
,
update, interaction
with internal research
team and issue of
opinion
Reports on credit
Ele
Agile credit decision-making process Credit Analyst
Management of receivables portfolio risks and
collaterals quality
visits and loan
transactions
structuring
Sales Officer
Efficient loan process, documentation and
controls

Organizational Structure
Simple structure and flat hierarchy
Board of Directors
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
CEO
Fiscal Council
Operating Risks
Sidney Veneziani
Sérgio Machado
Alcindo Itikawa
Noberto N. Pinheiro Jr.
& Compliance
Pine Investimentos
Gustavo Junqueira
Control and Market/
Liquidity Risk
Financial & Products
N b t Z i t J
Corporate Sales
Cli B t lh
Credit Risk & Research
G b i l Chi t
Corporate Operations
Uli Al t ill
q y
Susana Waldeck
Clive Botelho Norberto Zaiet Jr. Ulisses Alcantarilla Gabriela Chiste Corporate
• Loan Portfolio
R$4.8 billion
• Clients
Corporate Credit
• Analysis and granting
of credit
• Credit monitoring
Treasury
Corporate
• Local
Processing and
• International
Formalization
950 • Sales Desk
• São Paulo
L l • Ribeirão Preto
• São José do Rio Preto
• Rio de Janeiro
• Curitiba
• Porto Alegre
• Belo Horizonte
Market and
liquidity Risk
Human Resources
Credit Structuring
Credit Funds
Financial Advisory
risk and analysis by
sector
Funding
• Local
• International
International
• Cayman
• Accounting
Controlling
Department
Private Equity
Distribution
Legal
• Recife
Trade Finance
Macro Research
Products
Investor Relations

Human Resources
Banco PINE’s employees are its main assets
Performance Management and Recognition
Culture based on meritocracy
100% of employees profit sharing eligible
Semiannual individual performance evaluation
Qualification
Monitoring the potential of each employee
The Bank provides continuous training actions
PINE University: programs to encourage the development, with incentives for language courses
and short-duration, graduate, MBA programs, among other
Compensation and Benefits
Meritocracy : semiannual bonus programs aligned to the Bank's strategy, by encouraging cross-selling

The Current Scenario and Future Prospects
Banco PINE is well positioned in the market and prepared for sustainable earnings growth
Adequate capital structure
9 Issuance of a US$125 million
subordinated debt, approved by the
Brazilian Central Bank as Tier II capital
Efficient funding structure
9 Lengthening: 18 months average
9 Greater diversification
in June
9Capital Adequacy Ratio (BIS) of 18.5%
Cross selling opportunities in the client
Well prepared and encouraged
team
9Meritocracy
Cross-base
9102 new corporate loan clients added in
2Q10 y
9Qualification
9 Products diversity built over the past years
981% of the client base uses more than one
product (June/2010)

Corporate
Governance and
Shares

Corporate Governance
Banco PINE adopts the best corporate governance practices
Two independent members and one external member in the
Board of Directors
Mailson Ferreira da Nóbrega: Finance Minister of Brazil
Clear Policies Performance
Monitoring
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
Settlement of
Responsibilities
Alignment of
Internal Policies
São Paulo Stock Exchange Level 1 of Corporate Governance
C li ith
Fiscal Council
100% l i h f ll h h ld i l di
Risk Management
Compliance with
Legislation and
interests
tag along rights for all shareholders, including non-voting
shares
Arbitration procedures for fast settlement of litigation

Main Committees
Banco PINE believes that the use of the best corporate governance practices substantially enhances
its business business‟ outcome
Main decisions are taken by committees: Board of Directors and a structure of specific committees
Non-stop exchange of knowledge and information
T
Transparency
Board of
Directors
Fiscal Council
Audit
S t
Support
Committee
Executive
Committee
Treasury
Committee
National and
Foreign Funding
Credit Retail
Compliance
and Basel
PINE
Investimentos
(ALCO)
Products
Committee
Committee Committee
Delinquency
C itt
Risk
Committee
Performance
Evaluation
Ethics
C itt
IT
Committee Committee Committee C itt
Committee Committee
Human
Resources
Committee

Ownership Structure
On July 1, BM&FBovespa 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

Shareholders’ Profile
Shareholders' profile change since the crisis
2007
IPO
F i I
Foreign Investors
78.4%
Institucional
39.7% 39.5%
39.5%
39.8%
40.5%
41.0%
42.0% 41.6% 41.7%
39 3%
40.7%
40.3% 40.1% 40.1% 39.6%
39.8%
Foreign Investors
Investors
12.9%
37.8%
38.3% 38.4% 38.5%
39.3%
38.6% 38.4% 38.2% 38.1% 38.0%
37.3%
Institutional Investors
Individuals
8.7%
21.1%
21.9% 21.5% 21.4% 21.5% 21.4%
20.9%
20.4%
21.1% 20.8%
19.9%
20.4%
21.0%
Individuals
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
The Price/Book Value multiple was 1.17x on August 20, 2010

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 l Capital and d d d
Dividends
(R$ Million)
45
16
25 25
33 30
35
1H07 2H07 1H08 2H08 1H09 2H09 1H10

Social Responsibility
Banco PINE supports and promotes the Brazilian culture
Social
Casa Hope
Instituto Alfabetização Solidária
Culture
A Cidade e a Rosa: 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 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.

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”.

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.

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
Norberto Zaiet Júnior
CFO
Clive Botelho
Corporate Sales Executive Vice-president
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.

Banco PINE's Corporate Banking Strategy and Financial Results

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Banco PINE's Corporate Banking Strategy and Financial Results

Similar to Banco PINE's Corporate Banking Strategy and Financial Results (20)

More from Kianne Paganini

More from Kianne Paganini (20)

Recently uploaded

Recently uploaded (20)

Banco PINE's Corporate Banking Strategy and Financial Results