Banco Pine, profile picture
Uploaded byBanco Pine
PDF, PPTX420 views

Banco Pine - Institutional Presentation 2Q12

This document provides an overview of PINE's history, business lines, and recent financial highlights. PINE has been in business since 1939 and focuses on providing financial solutions to large corporate clients in Brazil. It has four primary business lines: corporate credit, financial and commodity instruments, investment banking, and distribution. The document outlines PINE's ownership history and growth over time, with its corporate credit portfolio and shareholders' equity both increasing significantly in recent years.

Embed presentation

Download as PDF, PPTX
Institutional Presentation 2Q12
Summary History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Pillars Rating Upgrades Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees Dividends and Interest on own Capital Appendix Investor Relations | 2Q12 | 2/34
History and Profile
PINE Specialized in providing financial solutions for wholesale clients… Credit Portfolio by Annual Client Revenues June 30th, 2012 Up to R$ 150 million 17% R$ 150 to R$500 > R$ 1 million billion 12% 56% R$ 500 million to R$ 1 billion 15% Profile Focused on establishing long-term relationships g g p Business is structured along four primary business lines: g p y Profound knowledge and product penetration • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE I Investimentos: I ti t Investment B ki t t Banking and d Investment Management • Distribution: Funding and investment solutions for foreign and local investors Investor Relations | 2Q12 | 4/34
History ...with extensive knowledge of Brazil’s corporate credit cycle. August, 2012 Subscription of PINE’s capital by DEG ,Proparco1,Controlling1shareholder 1939 and management Pinheiro Family October, 2011 founds End of 2007 Subscription of PINE’s capital by DEG PINE s Banco Central do Focus on expanding the Corporate Banking franchise Nordeste Discontinuation of the payroll-deductible loan business 1,053 1,015 October, 2007 Creation of the Hedging Desk 867 827 825 May, 2007 801 Creation of PINE Investimentos product line and start up of Cayman branch 2005 1975 Noberto Pinheiro becomes Noberto Pinheiro PINE’s sole shareholder 7,478 becomes one of 6,921 BMC’s controlling shareholders 335 5,747 Corporate Credit Portfolio (R$ Millions) Shareholders' Equity (R$ Millions) q y( $ ) 209 4,181 4 181 152 171 121 126 140 136 2,854 3,070 62 18 1,214 1997 155 184 222 341 521 620 755 663 761 Noberto and Nelson Pinheiro sell their Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-12 stake in BMC and found PINE Asian Russian Devaluation Nasdaq Sept. 11 Brazilian Subprime European Crisis Crisis of the real Elections Community (Lula) March, 2007 May, 2012 1 Subject to precedent conditions and final negotiations IPO 15 years Investor Relations | 2Q12 | 5/34
Business Strategy
Competitive Landscape PINE serves a niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs. Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporates Large Multi-Services banks Foreign banks are in a deleveraging process g g gp 100% Corporate PINE Foreign and Full service Bank – Credit, Hedging, and Investment Banks 100% focused on providing complete service Investment Bank products – with room for to companies, offering customized products growth . Corporate & SME ~10 clients per officer Competitive Advantages: SME & Retail  Focus  Fast response: Strong relationship with clients, with the credit committee meeting twice a week and response times Retail to clients of no more than one week  S Specialized services i li d i  Tailor-made solutions  Product diversity Investor Relations | 2Q12 | 7/34
Focus Always on the Client The bank develops a strategy of product diversity, tailored to meet the needs of each client. CDs CDIs LCIs Pricing of Assets and CCBs Private Liabilities Placements RDBs Eurobonds Liquidity LCAs Management Financial Letters Fixed Income CDBs Local Currency Currencies Trading CRIs Debentures Commodities Foreign Currency Equities Distribution Treasury Working Capital Working Capital g Underwriting Overdraft Capital Accounts Markets Local Currency Private BNDES Onlending Placements Clients Onlending Advisory PINE Corporate Bank Guarantees Advisory Investimentos Credit Foreign Currency Compror Investment Structured/ Management Trade Finance ACC/ACE Project FICC Structured Export Finance Finance Structured/ Finance Project Credit Funds Bank Finimp Finance Guarantees Letters of Credit Fixed Income Fixed Income Currencies 2,770 onlending Funds Syndicated and Portfolio Commodities Structured Loans Management Swap NDFs Structured Swaps Options Investor Relations | 2Q12 | 8/34
Corporate Credit Strong track record and solid credit origination and approval process. Actions Credit Committee Personalized, agile service, working closely with clients Meets twice a week – reviewing 20 proposals on average and keeping a low client to account officer ratio: each officer handles ~10 economic groups on average. 10 Minimum quorum: 4 members - attendance of CEO or q Chairman is mandatory Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information. Members: Chairman of the Board Established long term relationships with more than 600 economic groups CEO Chief Operations Officer Origination network is comprised of 11 branches divided Chief Administrative Officer into 14 origination platforms in Brazil’s major economic Chief Risk Officer centers More than 30 credit analysts, assuring that analysis is Participants: fundamentally driven and based on industry-specific FICC Executive Director intelligence Credit Analysts Efficient loan and collateral processes, documentation, Other members of the Corporate Banking and controls, which has resulted in a low NPL track record origination team pp Credit Approval: Electronic Process Regional Heads of CRO, Executive Origination Officers Credit Analysts Origination and Credit Directors and Analysts CREDIT COMMITTEE Analysis of Credit Credit origination analysis, clients, Credit analysis visit to clients data sizing, collateral, Discussion on sizing collateral Presentation to the Credit Committee Centralized and unanimous updates, interaction with internal structure, etc. decision making process research team Investor Relations | 2Q12 | 9/34
FICC PINE is the 1st player in terms of OTC commodities NDF for clients¹… Client Notional Derivatives Portfolio by Market Notional Value and MtM June 30th, 2012 R$ millions Notional Value MtM Stressed MtM 597 Fixed Income Currency 358 24% 60% 354 354 224 256 178 157 84 126 Commodities 16% 3,457 , 3,709 , 3,712 , 4,287 , 4,720 , Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Market Segments Portfolio Profile Fixed Income: Fixed Floating Inflation Libor Fixed, Floating, Inflation, Scenario on June 30th: June, Duration: 249 days Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Mark-To-Market: R$256 million Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$597 million 1Source: Cetip Report, June 2012 Investor Relations | 2Q12 | 10/34
PINE Investimentos … and #10th in Debt Capital Markets1 in Brazil. Volume of Underwriting Transactions Revenues R$ Millions R$ Millions 381 18 346 16 317 12 2Q11 1Q12 2Q12 2Q11 1Q12 2Q12 Selected Transactions R$540,000,000 R$115,000,000 R$25,000,000 R$100,000,000 R$67,000,000 M&A Project Finance Certificate of Real Estate Promissory Notes (ICVM 476) Promissory Notes (ICVM 476) Receivables Exclusive Advisor Exclusive Advisor Coordinator Coordinator Coordinator March, 2012 May, 2012 May, 2012 May, 2012 June, 2012 1Source: Anbima Investor Relations | 2Q12 | 11/34
Distribution Investment alternatives in local and foreign currency to domestic and foreign investors. Actions Funding R$ Millions +50% Responsible for serving investors, offering traditional +17% 6,933 investments and also alternatives tied to the credit origination platform capital markets and asset platform, markets, 5,902 5 902 1,736 International management. 1,152 4,622 It counts on PINE’s expertise in structuring and 986 intermediating fixed income transactions. g 4,750 5,197 Local Divided by type of investors to provide tailor made 3,636 solutions. Jun-10 Jun-11 Jun-12 Investors Market Segments Family Offices Local Currency T diti Traditional i l investments (l t t (local d l deposits such as CDB/RDB/CDI it h CDB/RDB/CDI, Individuals LCA/LCI) Corporates Senior and subordinated local notes Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, Asset Managers CDCAs, among others) Financial Institutions Pension Funds Foreign Currency Foreign Investors 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 Investor Relations | 2Q12 | 12/34
Pillars Strategy supported by solid fundamentals, built and achieved over the years… Adequate capital structure Strong and motivated team Capital Adequacy Ratio (BIS) of 15.9% Meritocracy Regulatory Capital: R$1.3 billion Right incentives Capital increase announced and closer partnerships Highly qualified team with DEG and Proparco will raise BIS to 17.5% 17 5% Corporate clients Efficient funding structure g p Strong relationship Longer average maturities: 16 months (Jun/12) g g ( ) Customized service Greater diversification of funding sources In-depth knowledge of client needs USD25 million 10 year funding with Proparco Product diversity USD106 million A/B Loan (Jan/11) with the IIC Investor Relations | 2Q12 | 13/34
Rating Upgrades ...with market recognition and positive evaluation by rating agencies. On December 7th, 2011: On May 14th, 2012 On August 23rd, 2012: PINE’s rating in global scale, to Foreign and Local Currency Long- PINE’s outlook upgraded to BB+ from BB- (two notches) Term IDR to 'BB' from 'BB'- Positive PINE’s rating in national scale, to National Long-Term Rating to brAA from brA (three notches) 'A+(bra)' from 'A(bra)' Viability rating upgraded to 'bb' On August 23rd, 2011: from 'bb-' Local currency rating, to brA from Banco Pine S.A. USD 125 million brA- Subordinated notes to 'B+' from 'B' Reaffirmed the Rating in foreign currency in BB- Revision from PINE’s outlook to positive The agency based its ratings on the strong Fitch attributed this upgrade to the Moody's explained that the positive outlook asset-quality, adequate liquidity, capital, and diversification of PINE's funding profile and its reflects PINE’s profitability through a well- earnings. S&P also emphasizes the gradual good assets and liabilities management, executed strategy, and which has ensured funding diversification, through foreign provided by the adequate match of the credit earnings recurrence. The rating action also issuances, securitizations, issuances securitizations and the recent books. addition, and funding books In addition the Agency bank s captures the bank's improved funding capital increase subscribed by DEG. considered that the positive liquidity gap diversification, well managed asset quality allied with the good cash position evidences metrics and its good liquidity and capital the Bank's overall solid financial strength. management. According to the Agency, the Bank’s continued increase in fee income, mainly due to higher product penetration, is a good indicator of the successful maintenance of profitability levels. Investor Relations | 2Q12 | 14/34
Highlights and Results
2Q12 Events and Highlights Capital increase of approximately R$155 0 million The increase will take place starting with the R$155.0 million. execution, on this date, of a subscription agreement with DEG in the amount of R$30.0 million coupled with an investment of R$93.7 million by the controlling shareholder and R$7.2 million by PINE’s management. In addition, the French agency Proparco approved the principle of an investment amounting up to €10 million. These transactions will increase the BIS Ratio to 17.5%, an improvement of approximately 160 b i t l bps. All ttransactions are subject t regulatory approvals and other precedent ti bj t to l t l d th d t conditions as announced in the Material Fact released today. In April, PINE carried out its first offering of financial bills known as Letras Financeiras, issuing R$313.2 million in two-year notes. Highly liquid balance sheet with a strong cash position of R$1.4 billion, which corresponds to 38% of time deposits. p Positive liquid gap between the credit and funding portfolios of 3 months: 13 months for credit and 16 months for funding. PINE has maintained this positive gap for over 2 years. Positive contributions from all business lines in the quarter: 58.4% from Corporate Credit, 19.8% from FICC, 11.5% from the Treasury, and PINE Investimentos contributed 10.3%, demonstrating recurrence in its results. Ranked amongst the 15 largest banks in the Cetip derivatives ranking and 1st in terms of OTC commodities NDF for clients. 9th largest bank in Brazil offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 2Q12 | 16/34
Capital Increase PINE is honored with DEG’s trust and partnership with the announcement of another transaction and welcomes Proparco. The second equity investment by DEG in a Brazilian financial institution, both with PINE, and the first by Proparco in a Latin America financial institution. In addition to the subscription made by DEG, of R$30.0 million, and by Proparco, of R$25.0 million, the capital increase also includes the participation of the controlling shareholder and the senior management, for a total of R$100.8 million. Summary Total of ~R$155 million Premium on Shares: 15% over the average price of the last 60 days Total Shares: 6,558,123 common shares and 4,352,590 preferred shares BIS Ratio: to 17.5%, 14 5% for Tier I and 3 0% for Tier II 17 5% 14.5% 3.0% The aforementioned transactions further strengthen the capital structure of PINE as well as the relationships with DEG and Proparco, and will allow the Bank to continue to expand its activities in a sustainable manner. After approval by the Brazilian Central Bank the ownership structure will have the following composition: Bank, With Capital increase Common Preferred Total % Controlling Shareholder 58,444,889 15,595,863 74,040,752 67.5% Management - 5,591,947 5,591,947 5.1% Free Float - 30,005,788 30 005 788 30,005,788 30 005 788 27.3% 27 3% DEG - 5,005,068 5,005,068 4.6% Proparco - 1,750,700 1,750,700 1.6% Individuals - 3,382,393 3,382,393 3.1% Local Institutional Investors - 11,054,997 11,054,997 10.1% Foreign Investors F i I t - 8,812,630 8 812 630 8,812,630 8 812 630 8.0% 8 0% Treasury - 125,000 125,000 0.1% Total 58,444,889 51,318,598 109,763,487 100% Investor Relations | 2Q12 | 17/34
2Q12 Financial Highlights The main performance indicators continued to show positive development in the period… R$ Millions Loan Portfolio¹ Total Funding Shareholders’ Equity 18.6% 17.5% 17.9% 6,305 , 7,478 , 5,902 , 6,933 , 893 1,053 Jun -11 Jun - 12 Jun -11 Jun -12 Jun -11 Jun -12 Credit Coverage Net Income ROAE 140 bps 27.8% 130 bps 36 46 17.3% 18.7% 2.7% 4.0% Jun-11 Jun-12 2Q11 2Q12 2Q11 2Q12 ¹ Includes debentures, CRIs, eurobonds and hedge fund shares Investor Relations | 2Q12 | 18/34
Product and Revenue Diversification ...with contributions from all business lines, fruits of the strategy of complete service to clients. Clients with more than one Product Penetration Ratio – Clients with more than one Product More than 1 product 1 product 2.9 44% 38% 60% 2.8 2.6 56% 62% 40% Jun-10 Jun-11 Jun-12 Jun-10 Jun-11 Jun -12 Revenue Mix 1H11 1H12 PINE Investimentos 10.3% PINE Investimentos Corporate 5.5% Credit 63.5% 63 5% Treasury Treasury Corporate 3.3% 11.5% Credit 58.4% FICC FICC 27.7% 19.8% Investor Relations | 2Q12 | 19/34
Loan Portfolio1 The portfolio continued to grow, +2.4% QoQ and +18.6% YoY… R$ millions 7,300 7,478 6,732 , 6,935 1,154 Trade fi T d finance 6,305 1,021 782 5,823 756 5,760 772 5,277 533 622 1,684 1 684 1,599 1 599 Guarantes 4,811 1,534 1,687 555 1,372 1,022 1,117 704 827 821 883 881 883 Onlending BNDES 842 846 912 644 881 342 572 - 251 297 - 71 122 472 - Private Securities 2,792 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 Working Capital Jun-10 Set-10 Dez-10 Mar-11 Jun-11 Set-11 Dez-11 Mar-12 Jun-12 ¹ Includes debentures, CRIs, eurobonds and hedge fund shares Investor Relations | 2Q12 | 20/34
Loan Portfolio Profile ... in a diversified manner... Loan Portfolio by Industry Segments Geographic Distribution Others; 9% North Telecom 2% 1% Meatpacking; 2% Sugar and Ethanol; 19% Midwest Financial 11 % Institutions; 2% Chemicals; 3% Food Industry; 3% Northeast Metal and Mining; 3% g 7% Construction 10% Beverages and Tobacco; 4% Vehicles and Parts; South 4% 8% Southeast Electric and 73% Specialized S S i li d Services; i Renewable Energy; 4% 9% Transportation and Lo gistics; 5% Agriculture; 9% Foreign Trade; 5% Infrastructure; 7% Investor Relations | 2Q12 | 21/34
Loan Portfolio Quality ... with quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans > 90 days B June 30th, 2012 36.9% Contracts Overdue Installments Overdue 0.7% 0.7% 0.6% 0.5% 0.5% C 0.3% 0 3% 0.3% 0 3% 0.3% 0 3% 10.9% 0.2% 0.2% D-E 1.8% F-H AA-A 2.3% 48.1% Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Credit Coverage Collaterals +130 bps Products Pledge +40 bps 46% Guarantees 2% Investments 3% 4.0% 3.6% 2.7% Properties Pledge Receivables 23% Jun -11 Mar-12 Jun-12 26% Investor Relations | 2Q12 | 22/34
Funding Diverse sources of funding… R$ millions Trade Finance 6,933 Private Placements 6,544 6,421 6,248 1,089 753 Multilateral Lines 5,902 841 814 118 5,437 5 437 596 250 234 5,182 5,322 86 353 125 International Capital 377 84 276 295 435 267 310 246 233 Markets 4,622 413 158 205 237 553 160 155 281 291 166 194 282 247 256 Local Capital Markets 405 200 21 194 185 33 867 813 151 - 829 867 868 227 898 626 867 31 33 BNDES 203 - 42 66 112 106 161 194 46 320 53 210 165 250 281 223 453 224 41 228 36 198 214 272 212 201 Demand Deposits 175 218 1,196 1,186 1,228 1,287 , 1,253 1,463 1 463 1,530 1 530 1,114 1 114 Interbank Time D b k i Deposits i 1,124 High Net Worth Individual Time Deposits 1,965 2,130 2,128 2,153 1,646 , 1,654 , 1,592 1,720 1,845 Corporate Time Deposits Institutional Time Jun-10 Sept-10 xDec-10 Mar-11 Jun-11 Sept-11 xDec-11 Mar-12 Jun-12 Deposits Investor Relations | 2Q12 | 23/34
Asset & Liability Management ... presenting a positive gap of 3 months between the credit and funding portfolios. Matching of Transactions Loan / Total Funding CREDIT FUNDING 82% 80% 81% 76% 76% BNDES BNDES Trade Finance Trade Finance Deposits Working Capital, Private Local & International Securities1 And Cash Capital Markets Private Placements/ Multilateral / Lines Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 1 Includes debentures, CRIs, eurobonds, and hedge fund shares ALM Deposits vs. Total Funding R$ Millions , 5,902 6,421 6,933 R$ Millions 3,124 Credit Funding 2,344 39% 41% 45% 1,921 1,775 1,590 1,642 Others 1,056 Total Deposits 402 94 135 61% 59% 55% - 33 No maturity Up to 3 From 3 to 12 From 1 to 3 From 3 to 5 More than 5 months months years years years (includes Cash) Jun -11 Mar -12 Jun-12 Investor Relations | 2Q12 | 24/34
Capital Adequacy Ratio (BIS) BIS ratio reached 15.9%. Tier II Tier I Minimum Capital Requirement (11%) 19.6% 18.5% 18.4% 18.5% 17.4% 17.1% 4.5% 16.6% 16.4% 17.5% 3.9% 3.6% 4.2% 15.9% 3.6% 3 6% 3.7% 3.4% 3.1% 3.3% 3.0% 14.6% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.5% With Jun -10 Sept-10 Dec -10 Mar -11 Jun -11 Sept-11 Dec -11 Mar -12 Jun -12 Capital Increase R$ million BIS Ratio (%) Tier I 1,055 12.6% Tier II 277 3.3% Total 1,331 15.9% Investor Relations | 2Q12 | 25/34
Guidance for 2012 PINE is ready to continue growing with its clients, and reaffirms its guidance for 2012. Guidance Expanded Corporate Credit Portfolio 17% - 22% Personnel and Ad i i P l d Administrative Expenses i 8% - 12% 2% NIM 5.5% - 7.5% ROAE 17% - 20% Investor Relations | 2Q12 | 26/34
Corporate Governance and PINE4
Management Structure Non-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decision making process. BOARD Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann Chairman Vice Chairman Independent External Member Independent Independent Member Member Member EXTERNAL AUDIT INTERNAL AUDIT COMPENSATION AUDIT COMMITTEE PWC Tikara Yoneya COMMITTEE CEO Noberto Pinheiro Jr HUMAN RESOURCES Sidney Vilhena COO CRO CAO CFO Norberto Zaiet Gabriela Chiste Ulisses Alcantarilla Susana Waldeck Origination Credit and F.I. Research Asset & Liabilities Back Controlling Investment Banking Compliance & Internal Office Accounting Sales & Trading g Controls Legal Tax Planningg Research Macro / Market and Liquidity Risks Collaterals Management IT Commodities Special Situations Accounts Payable International Middle Office Office Management Marketing Investor Relations Investor Relations | 2Q12 | 28/34
Corporate Governance PINE commits to best corporate governance practices… Three independent members and one external member on the Board of Directors Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990 Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo Abril Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association Gustavo Junqueira: Former Head of PINE Investimentos, Member of the Board of Directors at EZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica São Paulo Stock Exchange (BM&FBovespa) Level 2 Corporate Governance Audit and Compensation Committee reporting directly to the Board of Directors 100% tag along rights for all shareholders including non-voting shares shareholders, non voting Arbitration procedures for fast settlement of litigation cases First Brazilian bank to release BR GAAP and IFRS quarterly Investor Relations | 2Q12 | 29/34
Committees …favoring collective decision making. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge, ideas, and information p Transparencyy 45 days BOARD OF DIRECTORS RISK COMPENSATION AUDIT COMMITTEE COMMITTEE COMMITTEE 45 days Bi-annually Monthly CEO COMMITTEES TREASURY INTERNAL INVESTMENT HUMAN PERFORMANCE EXECUTIVE CREDIT COMMITTEE LITIGATION CONTROLS AND IT ETHICS BANK RESOURCES EVALUATION ALCO COMPLIANCE Monthly Twice a week Weekly Weekly Bi-monthly Every 2 months Monthly 45 days Quarterly On demand Investor Relations | 2Q12 | 30/34
Dividends and Interest on Own Capital PINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis. 55 45 40 40 35 35 33 30 25 25 16 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 Investor Relations | 2Q12 | 31/34
Appendix
Social Investment and Responsibility PINE supports and promotes the Brazilian culture and sports Culture Social Paulo von Poser: exhibit of the painter Paulo von Poser, who is one of Brazil’s most prominent Instituto Alfabetização Solidária artists Instituto Casa da Providência Quebrando o Tabu: documentary based on the analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against drugs Além da Estrada: motion picture, which received the award for best director in the 2010 Sports Rio Festival Minas Tênis Clube: training program for athletes Responsible Credit “Lists of E “Li f Exceptions”: the B k d i ” h Bank does not fi finance projects or those organizations that damage the environment, are involved in illegal labor Most Green Bank practices or produce, sell or use products, substances or activities considered prejudicial to society. y System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally- produced sustainability reports for corporate loans. Recognized by the International Finance Corporation (IFC), private agency programs of the World Bank as the most "green" bank as a result of its transactions under the Global Trade Finance Program (GTFP) and its on lending to companies focused on renewable energy and ethanol. Investor Relations | 2Q12 | 33/34
Investor Relations Noberto Pinheiro Jr. CEO Susana Waldeck Norberto Zaiet Jr. CFO COO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Phone: +55-11-3372-5343 ir.pine.com.br ir@pine.com.br This presentation contains forward-looking statements related to business prospects, estimates for operating and financial results, and estimates related to prospects for growth at Banco Pine. These are merely projections and as such are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents, and are, therefore, subject to change without prior notice. Investor Relations | 2Q12 | 34/34

More Related Content

PDF
Banco Pine - Institutional Presentation 3Q12
byBanco Pine
 
PDF
Banco Pine - Institutional Presentation 4Q12
byBanco Pine
 
PDF
Banco Pine - Institutional Presentation 1Q12
byBanco Pine
 
PDF
Pgc Overview Mar 2011 V4
bygdcrsmith
 
PDF
Revival investments & financial solutions v1
byRevival Investment Solution Pvt.Ltd
 
PDF
Revival investments & financial solutions v1
byRevival Investment Solution Pvt.Ltd
 
PDF
SBIC Presentation
bySaratoga Investment Corp.
 
PDF
Credential Details
bymjwhite
 
Banco Pine - Institutional Presentation 3Q12
byBanco Pine
 
Banco Pine - Institutional Presentation 4Q12
byBanco Pine
 
Banco Pine - Institutional Presentation 1Q12
byBanco Pine
 
Pgc Overview Mar 2011 V4
bygdcrsmith
 
Revival investments & financial solutions v1
byRevival Investment Solution Pvt.Ltd
 
Revival investments & financial solutions v1
byRevival Investment Solution Pvt.Ltd
 
SBIC Presentation
bySaratoga Investment Corp.
 
Credential Details
bymjwhite
 

What's hot

PDF
BDO Private Equity Study 2012
byMMMTechLaw
 
PDF
Pgc Overview 1009 V2
bygdcrsmith
 
PDF
Sortis Re Presentation 20100428 En
byMartin Paev
 
PDF
Sortis group presentation 20130209 en
byMartin Paev
 
PDF
Cisi April June2011 Cp Dseminars
bycoussey
 
PPTX
What is a Business Development Company (BDC)
bydcalaway
 
PDF
Q3 Earning Report of BB&T Corporation
byearningreport earningreport
 
PDF
Request corporate presentation5-20-10
byMonster12
 
PDF
Jpm 28feb12 jes staley
bymontgold
 
PDF
DSMC - Latham & Watkins Presentation Offsets Panel Discussion 27 June...
byMATTHEW COCHRAN
 
PDF
NYSE:PRO Analyst Day Presentation - 4Mar11
byMatthew Balfour
 
PDF
AXGN 3Q12 Fact Sheet
byCOCKRELL GROUP
 
PDF
Swedbank CMD Erkki Raasuke
bySwedbank
 
PPTX
Hdfc
byStewart Serrao
 
PDF
ameriprise AEED45CE-26BE-403D-9B1D-2B0CB1B4E184_2008_AR
byfinance43
 
PDF
Workshop Private Equity - Rannaleet
bySocial Europe
 
BDO Private Equity Study 2012
byMMMTechLaw
 
Pgc Overview 1009 V2
bygdcrsmith
 
Sortis Re Presentation 20100428 En
byMartin Paev
 
Sortis group presentation 20130209 en
byMartin Paev
 
Cisi April June2011 Cp Dseminars
bycoussey
 
What is a Business Development Company (BDC)
bydcalaway
 
Q3 Earning Report of BB&T Corporation
byearningreport earningreport
 
Request corporate presentation5-20-10
byMonster12
 
Jpm 28feb12 jes staley
bymontgold
 
DSMC - Latham & Watkins Presentation Offsets Panel Discussion 27 June...
byMATTHEW COCHRAN
 
NYSE:PRO Analyst Day Presentation - 4Mar11
byMatthew Balfour
 
AXGN 3Q12 Fact Sheet
byCOCKRELL GROUP
 
Swedbank CMD Erkki Raasuke
bySwedbank
 
Hdfc
byStewart Serrao
 
ameriprise AEED45CE-26BE-403D-9B1D-2B0CB1B4E184_2008_AR
byfinance43
 
Workshop Private Equity - Rannaleet
bySocial Europe
 

Similar to Banco Pine - Institutional Presentation 2Q12

PDF
Censo FGVCepe
byVitor Asseituno
 
PDF
Super Returns Latin America 2011
byVictor Carlos Casabona Filho
 
PDF
4Q12 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
PDF
1st annual Brazil conference, Nova York, 15 e 16 de Maio de 2006
byGafisa RI !
 
PPTX
2Q11 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
PDF
Merrill lynch non deal road show, Europa, 17 à 19 de Maio de 2006
byGafisa RI !
 
PDF
Merrill Lynch Home Loans
bybfaggiano
 
PDF
2Q11 Results Conference Call
byKianne Paganini
 
PDF
4Q11 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
PDF
ACG European Capital Tour Pamela Hendrickson and Dominique Gaillard
byACGEU
 
PDF
APIMEC Presentation - 2011
byBI&P - Banco Indusval & Partners - Investor Relations
 
PDF
Public meeting presentation with analysts and investors
byGafisa RI !
 
PDF
Borch Corporate January 2012
byKimBorch
 
PDF
Corporate Overview
byjimikemo
 
PDF
BANESTO-SANTANDER INVESTOR DAY 2011
byBANCO SANTANDER
 
PPT
Tresauris Overview
byjaquesd
 
PDF
Ffh introduction
byFullerton Securities
 
PDF
Private Equity and Venture Capital
byAlexey Milevskiy
 
PDF
1Q12 Earnings Conference Call
byKianne Paganini
 
PDF
Q3 2012 Investor Relation Presentation
byshubinaekaterina
 
Censo FGVCepe
byVitor Asseituno
 
Super Returns Latin America 2011
byVictor Carlos Casabona Filho
 
4Q12 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
1st annual Brazil conference, Nova York, 15 e 16 de Maio de 2006
byGafisa RI !
 
2Q11 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
Merrill lynch non deal road show, Europa, 17 à 19 de Maio de 2006
byGafisa RI !
 
Merrill Lynch Home Loans
bybfaggiano
 
2Q11 Results Conference Call
byKianne Paganini
 
4Q11 Results Presentation
byBI&P - Banco Indusval & Partners - Investor Relations
 
ACG European Capital Tour Pamela Hendrickson and Dominique Gaillard
byACGEU
 
APIMEC Presentation - 2011
byBI&P - Banco Indusval & Partners - Investor Relations
 
Public meeting presentation with analysts and investors
byGafisa RI !
 
Borch Corporate January 2012
byKimBorch
 
Corporate Overview
byjimikemo
 
BANESTO-SANTANDER INVESTOR DAY 2011
byBANCO SANTANDER
 
Tresauris Overview
byjaquesd
 
Ffh introduction
byFullerton Securities
 
Private Equity and Venture Capital
byAlexey Milevskiy
 
1Q12 Earnings Conference Call
byKianne Paganini
 
Q3 2012 Investor Relation Presentation
byshubinaekaterina
 

More from Banco Pine

PDF
Graus de Miopia| Comentários Diários de Economia e Negócios
byBanco Pine
 
PDF
Efeitos Temporários Duradouros | Retrospectiva Prospectiva: Comentários Mensa...
byBanco Pine
 
PDF
Calendário Econômico Pine: Cenas do próximo capítulo
byBanco Pine
 
PDF
Indústria Segue Seu (Alto Desvio) Padrão| Comentários Diários de Economia e N...
byBanco Pine
 
PDF
Piruetas em Gelo Fino| Comentários Diários de Economia e Negócios
byBanco Pine
 
PDF
Contradições no Mercado de Crédito | Comentários Diários de Economia e Negócios
byBanco Pine
 
PDF
Balanço de Pagamentos: Tendências Mantidas | Comentários Diários de Economia ...
byBanco Pine
 
PDF
Calendário Econômico Pine: Um pouco de tudo
byBanco Pine
 
PDF
Cenário Inflacionário: O Conjuntural e o Estrutural | Comentários Diários de ...
byBanco Pine
 
PDF
Calendário Econômico Pine: Inflação em aceleração
byBanco Pine
 
PDF
Atividade Claudicante, Projeções Vacilantes| Comentários Diários de Economia ...
byBanco Pine
 
PDF
Calendário Econômico Pine: Novos sinais de desaquecimento
byBanco Pine
 
PDF
Calendário Econômico Pine: Melhora (temporária) em junho
byBanco Pine
 
PDF
Retrospectiva Prospectiva: Ajustes e Complicações
byBanco Pine
 
PDF
Alívio Temporário e o Longo Prazo| Comentários Diários de Economia e Negócios
byBanco Pine
 
PDF
Calendário Econômico Pine: Disparidades da inflação
byBanco Pine
 
PDF
Pine Flash Note: PIB dos EUA e FOMC – implicações e complicações
byBanco Pine
 
PDF
Calendário Econômico Pine: Atividade e inflação enfraquecidas
byBanco Pine
 
PDF
Conta Externas: Alívio Transitório| Comentários Diários de Economia e Negócios
byBanco Pine
 
PDF
Pine Flash Note: Fiscal na ponta do lápis
byBanco Pine
 
Graus de Miopia| Comentários Diários de Economia e Negócios
byBanco Pine
 
Efeitos Temporários Duradouros | Retrospectiva Prospectiva: Comentários Mensa...
byBanco Pine
 
Calendário Econômico Pine: Cenas do próximo capítulo
byBanco Pine
 
Indústria Segue Seu (Alto Desvio) Padrão| Comentários Diários de Economia e N...
byBanco Pine
 
Piruetas em Gelo Fino| Comentários Diários de Economia e Negócios
byBanco Pine
 
Contradições no Mercado de Crédito | Comentários Diários de Economia e Negócios
byBanco Pine
 
Balanço de Pagamentos: Tendências Mantidas | Comentários Diários de Economia ...
byBanco Pine
 
Calendário Econômico Pine: Um pouco de tudo
byBanco Pine
 
Cenário Inflacionário: O Conjuntural e o Estrutural | Comentários Diários de ...
byBanco Pine
 
Calendário Econômico Pine: Inflação em aceleração
byBanco Pine
 
Atividade Claudicante, Projeções Vacilantes| Comentários Diários de Economia ...
byBanco Pine
 
Calendário Econômico Pine: Novos sinais de desaquecimento
byBanco Pine
 
Calendário Econômico Pine: Melhora (temporária) em junho
byBanco Pine
 
Retrospectiva Prospectiva: Ajustes e Complicações
byBanco Pine
 
Alívio Temporário e o Longo Prazo| Comentários Diários de Economia e Negócios
byBanco Pine
 
Calendário Econômico Pine: Disparidades da inflação
byBanco Pine
 
Pine Flash Note: PIB dos EUA e FOMC – implicações e complicações
byBanco Pine
 
Calendário Econômico Pine: Atividade e inflação enfraquecidas
byBanco Pine
 
Conta Externas: Alívio Transitório| Comentários Diários de Economia e Negócios
byBanco Pine
 
Pine Flash Note: Fiscal na ponta do lápis
byBanco Pine
 

Banco Pine - Institutional Presentation 2Q12

  • 1.
  • 2.
    Summary History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Pillars Rating Upgrades Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees Dividends and Interest on own Capital Appendix Investor Relations | 2Q12 | 2/34
  • 3.
  • 4.
    PINE Specialized in providingfinancial solutions for wholesale clients… Credit Portfolio by Annual Client Revenues June 30th, 2012 Up to R$ 150 million 17% R$ 150 to R$500 > R$ 1 million billion 12% 56% R$ 500 million to R$ 1 billion 15% Profile Focused on establishing long-term relationships g g p Business is structured along four primary business lines: g p y Profound knowledge and product penetration • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE I Investimentos: I ti t Investment B ki t t Banking and d Investment Management • Distribution: Funding and investment solutions for foreign and local investors Investor Relations | 2Q12 | 4/34
  • 5.
    History ...with extensive knowledgeof Brazil’s corporate credit cycle. August, 2012 Subscription of PINE’s capital by DEG ,Proparco1,Controlling1shareholder 1939 and management Pinheiro Family October, 2011 founds End of 2007 Subscription of PINE’s capital by DEG PINE s Banco Central do Focus on expanding the Corporate Banking franchise Nordeste Discontinuation of the payroll-deductible loan business 1,053 1,015 October, 2007 Creation of the Hedging Desk 867 827 825 May, 2007 801 Creation of PINE Investimentos product line and start up of Cayman branch 2005 1975 Noberto Pinheiro becomes Noberto Pinheiro PINE’s sole shareholder 7,478 becomes one of 6,921 BMC’s controlling shareholders 335 5,747 Corporate Credit Portfolio (R$ Millions) Shareholders' Equity (R$ Millions) q y( $ ) 209 4,181 4 181 152 171 121 126 140 136 2,854 3,070 62 18 1,214 1997 155 184 222 341 521 620 755 663 761 Noberto and Nelson Pinheiro sell their Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-12 stake in BMC and found PINE Asian Russian Devaluation Nasdaq Sept. 11 Brazilian Subprime European Crisis Crisis of the real Elections Community (Lula) March, 2007 May, 2012 1 Subject to precedent conditions and final negotiations IPO 15 years Investor Relations | 2Q12 | 5/34
  • 6.
  • 7.
    Competitive Landscape PINE servesa niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs. Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporates Large Multi-Services banks Foreign banks are in a deleveraging process g g gp 100% Corporate PINE Foreign and Full service Bank – Credit, Hedging, and Investment Banks 100% focused on providing complete service Investment Bank products – with room for to companies, offering customized products growth . Corporate & SME ~10 clients per officer Competitive Advantages: SME & Retail  Focus  Fast response: Strong relationship with clients, with the credit committee meeting twice a week and response times Retail to clients of no more than one week  S Specialized services i li d i  Tailor-made solutions  Product diversity Investor Relations | 2Q12 | 7/34
  • 8.
    Focus Always onthe Client The bank develops a strategy of product diversity, tailored to meet the needs of each client. CDs CDIs LCIs Pricing of Assets and CCBs Private Liabilities Placements RDBs Eurobonds Liquidity LCAs Management Financial Letters Fixed Income CDBs Local Currency Currencies Trading CRIs Debentures Commodities Foreign Currency Equities Distribution Treasury Working Capital Working Capital g Underwriting Overdraft Capital Accounts Markets Local Currency Private BNDES Onlending Placements Clients Onlending Advisory PINE Corporate Bank Guarantees Advisory Investimentos Credit Foreign Currency Compror Investment Structured/ Management Trade Finance ACC/ACE Project FICC Structured Export Finance Finance Structured/ Finance Project Credit Funds Bank Finimp Finance Guarantees Letters of Credit Fixed Income Fixed Income Currencies 2,770 onlending Funds Syndicated and Portfolio Commodities Structured Loans Management Swap NDFs Structured Swaps Options Investor Relations | 2Q12 | 8/34
  • 9.
    Corporate Credit Strong trackrecord and solid credit origination and approval process. Actions Credit Committee Personalized, agile service, working closely with clients Meets twice a week – reviewing 20 proposals on average and keeping a low client to account officer ratio: each officer handles ~10 economic groups on average. 10 Minimum quorum: 4 members - attendance of CEO or q Chairman is mandatory Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information. Members: Chairman of the Board Established long term relationships with more than 600 economic groups CEO Chief Operations Officer Origination network is comprised of 11 branches divided Chief Administrative Officer into 14 origination platforms in Brazil’s major economic Chief Risk Officer centers More than 30 credit analysts, assuring that analysis is Participants: fundamentally driven and based on industry-specific FICC Executive Director intelligence Credit Analysts Efficient loan and collateral processes, documentation, Other members of the Corporate Banking and controls, which has resulted in a low NPL track record origination team pp Credit Approval: Electronic Process Regional Heads of CRO, Executive Origination Officers Credit Analysts Origination and Credit Directors and Analysts CREDIT COMMITTEE Analysis of Credit Credit origination analysis, clients, Credit analysis visit to clients data sizing, collateral, Discussion on sizing collateral Presentation to the Credit Committee Centralized and unanimous updates, interaction with internal structure, etc. decision making process research team Investor Relations | 2Q12 | 9/34
  • 10.
    FICC PINE is the1st player in terms of OTC commodities NDF for clients¹… Client Notional Derivatives Portfolio by Market Notional Value and MtM June 30th, 2012 R$ millions Notional Value MtM Stressed MtM 597 Fixed Income Currency 358 24% 60% 354 354 224 256 178 157 84 126 Commodities 16% 3,457 , 3,709 , 3,712 , 4,287 , 4,720 , Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Market Segments Portfolio Profile Fixed Income: Fixed Floating Inflation Libor Fixed, Floating, Inflation, Scenario on June 30th: June, Duration: 249 days Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Mark-To-Market: R$256 million Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$597 million 1Source: Cetip Report, June 2012 Investor Relations | 2Q12 | 10/34
  • 11.
    PINE Investimentos … and#10th in Debt Capital Markets1 in Brazil. Volume of Underwriting Transactions Revenues R$ Millions R$ Millions 381 18 346 16 317 12 2Q11 1Q12 2Q12 2Q11 1Q12 2Q12 Selected Transactions R$540,000,000 R$115,000,000 R$25,000,000 R$100,000,000 R$67,000,000 M&A Project Finance Certificate of Real Estate Promissory Notes (ICVM 476) Promissory Notes (ICVM 476) Receivables Exclusive Advisor Exclusive Advisor Coordinator Coordinator Coordinator March, 2012 May, 2012 May, 2012 May, 2012 June, 2012 1Source: Anbima Investor Relations | 2Q12 | 11/34
  • 12.
    Distribution Investment alternatives inlocal and foreign currency to domestic and foreign investors. Actions Funding R$ Millions +50% Responsible for serving investors, offering traditional +17% 6,933 investments and also alternatives tied to the credit origination platform capital markets and asset platform, markets, 5,902 5 902 1,736 International management. 1,152 4,622 It counts on PINE’s expertise in structuring and 986 intermediating fixed income transactions. g 4,750 5,197 Local Divided by type of investors to provide tailor made 3,636 solutions. Jun-10 Jun-11 Jun-12 Investors Market Segments Family Offices Local Currency T diti Traditional i l investments (l t t (local d l deposits such as CDB/RDB/CDI it h CDB/RDB/CDI, Individuals LCA/LCI) Corporates Senior and subordinated local notes Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, Asset Managers CDCAs, among others) Financial Institutions Pension Funds Foreign Currency Foreign Investors 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 Investor Relations | 2Q12 | 12/34
  • 13.
    Pillars Strategy supported bysolid fundamentals, built and achieved over the years… Adequate capital structure Strong and motivated team Capital Adequacy Ratio (BIS) of 15.9% Meritocracy Regulatory Capital: R$1.3 billion Right incentives Capital increase announced and closer partnerships Highly qualified team with DEG and Proparco will raise BIS to 17.5% 17 5% Corporate clients Efficient funding structure g p Strong relationship Longer average maturities: 16 months (Jun/12) g g ( ) Customized service Greater diversification of funding sources In-depth knowledge of client needs USD25 million 10 year funding with Proparco Product diversity USD106 million A/B Loan (Jan/11) with the IIC Investor Relations | 2Q12 | 13/34
  • 14.
    Rating Upgrades ...with marketrecognition and positive evaluation by rating agencies. On December 7th, 2011: On May 14th, 2012 On August 23rd, 2012: PINE’s rating in global scale, to Foreign and Local Currency Long- PINE’s outlook upgraded to BB+ from BB- (two notches) Term IDR to 'BB' from 'BB'- Positive PINE’s rating in national scale, to National Long-Term Rating to brAA from brA (three notches) 'A+(bra)' from 'A(bra)' Viability rating upgraded to 'bb' On August 23rd, 2011: from 'bb-' Local currency rating, to brA from Banco Pine S.A. USD 125 million brA- Subordinated notes to 'B+' from 'B' Reaffirmed the Rating in foreign currency in BB- Revision from PINE’s outlook to positive The agency based its ratings on the strong Fitch attributed this upgrade to the Moody's explained that the positive outlook asset-quality, adequate liquidity, capital, and diversification of PINE's funding profile and its reflects PINE’s profitability through a well- earnings. S&P also emphasizes the gradual good assets and liabilities management, executed strategy, and which has ensured funding diversification, through foreign provided by the adequate match of the credit earnings recurrence. The rating action also issuances, securitizations, issuances securitizations and the recent books. addition, and funding books In addition the Agency bank s captures the bank's improved funding capital increase subscribed by DEG. considered that the positive liquidity gap diversification, well managed asset quality allied with the good cash position evidences metrics and its good liquidity and capital the Bank's overall solid financial strength. management. According to the Agency, the Bank’s continued increase in fee income, mainly due to higher product penetration, is a good indicator of the successful maintenance of profitability levels. Investor Relations | 2Q12 | 14/34
  • 15.
  • 16.
    2Q12 Events andHighlights Capital increase of approximately R$155 0 million The increase will take place starting with the R$155.0 million. execution, on this date, of a subscription agreement with DEG in the amount of R$30.0 million coupled with an investment of R$93.7 million by the controlling shareholder and R$7.2 million by PINE’s management. In addition, the French agency Proparco approved the principle of an investment amounting up to €10 million. These transactions will increase the BIS Ratio to 17.5%, an improvement of approximately 160 b i t l bps. All ttransactions are subject t regulatory approvals and other precedent ti bj t to l t l d th d t conditions as announced in the Material Fact released today. In April, PINE carried out its first offering of financial bills known as Letras Financeiras, issuing R$313.2 million in two-year notes. Highly liquid balance sheet with a strong cash position of R$1.4 billion, which corresponds to 38% of time deposits. p Positive liquid gap between the credit and funding portfolios of 3 months: 13 months for credit and 16 months for funding. PINE has maintained this positive gap for over 2 years. Positive contributions from all business lines in the quarter: 58.4% from Corporate Credit, 19.8% from FICC, 11.5% from the Treasury, and PINE Investimentos contributed 10.3%, demonstrating recurrence in its results. Ranked amongst the 15 largest banks in the Cetip derivatives ranking and 1st in terms of OTC commodities NDF for clients. 9th largest bank in Brazil offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 2Q12 | 16/34
  • 17.
    Capital Increase PINE ishonored with DEG’s trust and partnership with the announcement of another transaction and welcomes Proparco. The second equity investment by DEG in a Brazilian financial institution, both with PINE, and the first by Proparco in a Latin America financial institution. In addition to the subscription made by DEG, of R$30.0 million, and by Proparco, of R$25.0 million, the capital increase also includes the participation of the controlling shareholder and the senior management, for a total of R$100.8 million. Summary Total of ~R$155 million Premium on Shares: 15% over the average price of the last 60 days Total Shares: 6,558,123 common shares and 4,352,590 preferred shares BIS Ratio: to 17.5%, 14 5% for Tier I and 3 0% for Tier II 17 5% 14.5% 3.0% The aforementioned transactions further strengthen the capital structure of PINE as well as the relationships with DEG and Proparco, and will allow the Bank to continue to expand its activities in a sustainable manner. After approval by the Brazilian Central Bank the ownership structure will have the following composition: Bank, With Capital increase Common Preferred Total % Controlling Shareholder 58,444,889 15,595,863 74,040,752 67.5% Management - 5,591,947 5,591,947 5.1% Free Float - 30,005,788 30 005 788 30,005,788 30 005 788 27.3% 27 3% DEG - 5,005,068 5,005,068 4.6% Proparco - 1,750,700 1,750,700 1.6% Individuals - 3,382,393 3,382,393 3.1% Local Institutional Investors - 11,054,997 11,054,997 10.1% Foreign Investors F i I t - 8,812,630 8 812 630 8,812,630 8 812 630 8.0% 8 0% Treasury - 125,000 125,000 0.1% Total 58,444,889 51,318,598 109,763,487 100% Investor Relations | 2Q12 | 17/34
  • 18.
    2Q12 Financial Highlights The main performance indicators continued to show positive development in the period… R$ Millions Loan Portfolio¹ Total Funding Shareholders’ Equity 18.6% 17.5% 17.9% 6,305 , 7,478 , 5,902 , 6,933 , 893 1,053 Jun -11 Jun - 12 Jun -11 Jun -12 Jun -11 Jun -12 Credit Coverage Net Income ROAE 140 bps 27.8% 130 bps 36 46 17.3% 18.7% 2.7% 4.0% Jun-11 Jun-12 2Q11 2Q12 2Q11 2Q12 ¹ Includes debentures, CRIs, eurobonds and hedge fund shares Investor Relations | 2Q12 | 18/34
  • 19.
    Product and RevenueDiversification ...with contributions from all business lines, fruits of the strategy of complete service to clients. Clients with more than one Product Penetration Ratio – Clients with more than one Product More than 1 product 1 product 2.9 44% 38% 60% 2.8 2.6 56% 62% 40% Jun-10 Jun-11 Jun-12 Jun-10 Jun-11 Jun -12 Revenue Mix 1H11 1H12 PINE Investimentos 10.3% PINE Investimentos Corporate 5.5% Credit 63.5% 63 5% Treasury Treasury Corporate 3.3% 11.5% Credit 58.4% FICC FICC 27.7% 19.8% Investor Relations | 2Q12 | 19/34
  • 20.
    Loan Portfolio1 The portfoliocontinued to grow, +2.4% QoQ and +18.6% YoY… R$ millions 7,300 7,478 6,732 , 6,935 1,154 Trade fi T d finance 6,305 1,021 782 5,823 756 5,760 772 5,277 533 622 1,684 1 684 1,599 1 599 Guarantes 4,811 1,534 1,687 555 1,372 1,022 1,117 704 827 821 883 881 883 Onlending BNDES 842 846 912 644 881 342 572 - 251 297 - 71 122 472 - Private Securities 2,792 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 Working Capital Jun-10 Set-10 Dez-10 Mar-11 Jun-11 Set-11 Dez-11 Mar-12 Jun-12 ¹ Includes debentures, CRIs, eurobonds and hedge fund shares Investor Relations | 2Q12 | 20/34
  • 21.
    Loan Portfolio Profile ...in a diversified manner... Loan Portfolio by Industry Segments Geographic Distribution Others; 9% North Telecom 2% 1% Meatpacking; 2% Sugar and Ethanol; 19% Midwest Financial 11 % Institutions; 2% Chemicals; 3% Food Industry; 3% Northeast Metal and Mining; 3% g 7% Construction 10% Beverages and Tobacco; 4% Vehicles and Parts; South 4% 8% Southeast Electric and 73% Specialized S S i li d Services; i Renewable Energy; 4% 9% Transportation and Lo gistics; 5% Agriculture; 9% Foreign Trade; 5% Infrastructure; 7% Investor Relations | 2Q12 | 21/34
  • 22.
    Loan Portfolio Quality ...with quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans > 90 days B June 30th, 2012 36.9% Contracts Overdue Installments Overdue 0.7% 0.7% 0.6% 0.5% 0.5% C 0.3% 0 3% 0.3% 0 3% 0.3% 0 3% 10.9% 0.2% 0.2% D-E 1.8% F-H AA-A 2.3% 48.1% Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Credit Coverage Collaterals +130 bps Products Pledge +40 bps 46% Guarantees 2% Investments 3% 4.0% 3.6% 2.7% Properties Pledge Receivables 23% Jun -11 Mar-12 Jun-12 26% Investor Relations | 2Q12 | 22/34
  • 23.
    Funding Diverse sources offunding… R$ millions Trade Finance 6,933 Private Placements 6,544 6,421 6,248 1,089 753 Multilateral Lines 5,902 841 814 118 5,437 5 437 596 250 234 5,182 5,322 86 353 125 International Capital 377 84 276 295 435 267 310 246 233 Markets 4,622 413 158 205 237 553 160 155 281 291 166 194 282 247 256 Local Capital Markets 405 200 21 194 185 33 867 813 151 - 829 867 868 227 898 626 867 31 33 BNDES 203 - 42 66 112 106 161 194 46 320 53 210 165 250 281 223 453 224 41 228 36 198 214 272 212 201 Demand Deposits 175 218 1,196 1,186 1,228 1,287 , 1,253 1,463 1 463 1,530 1 530 1,114 1 114 Interbank Time D b k i Deposits i 1,124 High Net Worth Individual Time Deposits 1,965 2,130 2,128 2,153 1,646 , 1,654 , 1,592 1,720 1,845 Corporate Time Deposits Institutional Time Jun-10 Sept-10 xDec-10 Mar-11 Jun-11 Sept-11 xDec-11 Mar-12 Jun-12 Deposits Investor Relations | 2Q12 | 23/34
  • 24.
    Asset & LiabilityManagement ... presenting a positive gap of 3 months between the credit and funding portfolios. Matching of Transactions Loan / Total Funding CREDIT FUNDING 82% 80% 81% 76% 76% BNDES BNDES Trade Finance Trade Finance Deposits Working Capital, Private Local & International Securities1 And Cash Capital Markets Private Placements/ Multilateral / Lines Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 1 Includes debentures, CRIs, eurobonds, and hedge fund shares ALM Deposits vs. Total Funding R$ Millions , 5,902 6,421 6,933 R$ Millions 3,124 Credit Funding 2,344 39% 41% 45% 1,921 1,775 1,590 1,642 Others 1,056 Total Deposits 402 94 135 61% 59% 55% - 33 No maturity Up to 3 From 3 to 12 From 1 to 3 From 3 to 5 More than 5 months months years years years (includes Cash) Jun -11 Mar -12 Jun-12 Investor Relations | 2Q12 | 24/34
  • 25.
    Capital Adequacy Ratio(BIS) BIS ratio reached 15.9%. Tier II Tier I Minimum Capital Requirement (11%) 19.6% 18.5% 18.4% 18.5% 17.4% 17.1% 4.5% 16.6% 16.4% 17.5% 3.9% 3.6% 4.2% 15.9% 3.6% 3 6% 3.7% 3.4% 3.1% 3.3% 3.0% 14.6% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.5% With Jun -10 Sept-10 Dec -10 Mar -11 Jun -11 Sept-11 Dec -11 Mar -12 Jun -12 Capital Increase R$ million BIS Ratio (%) Tier I 1,055 12.6% Tier II 277 3.3% Total 1,331 15.9% Investor Relations | 2Q12 | 25/34
  • 26.
    Guidance for 2012 PINEis ready to continue growing with its clients, and reaffirms its guidance for 2012. Guidance Expanded Corporate Credit Portfolio 17% - 22% Personnel and Ad i i P l d Administrative Expenses i 8% - 12% 2% NIM 5.5% - 7.5% ROAE 17% - 20% Investor Relations | 2Q12 | 26/34
  • 27.
  • 28.
    Management Structure Non-bureaucratic, entrepreneurial,and meritocratic culture with a flat hierarchy, speeding the decision making process. BOARD Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann Chairman Vice Chairman Independent External Member Independent Independent Member Member Member EXTERNAL AUDIT INTERNAL AUDIT COMPENSATION AUDIT COMMITTEE PWC Tikara Yoneya COMMITTEE CEO Noberto Pinheiro Jr HUMAN RESOURCES Sidney Vilhena COO CRO CAO CFO Norberto Zaiet Gabriela Chiste Ulisses Alcantarilla Susana Waldeck Origination Credit and F.I. Research Asset & Liabilities Back Controlling Investment Banking Compliance & Internal Office Accounting Sales & Trading g Controls Legal Tax Planningg Research Macro / Market and Liquidity Risks Collaterals Management IT Commodities Special Situations Accounts Payable International Middle Office Office Management Marketing Investor Relations Investor Relations | 2Q12 | 28/34
  • 29.
    Corporate Governance PINE commitsto best corporate governance practices… Three independent members and one external member on the Board of Directors Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990 Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo Abril Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association Gustavo Junqueira: Former Head of PINE Investimentos, Member of the Board of Directors at EZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica São Paulo Stock Exchange (BM&FBovespa) Level 2 Corporate Governance Audit and Compensation Committee reporting directly to the Board of Directors 100% tag along rights for all shareholders including non-voting shares shareholders, non voting Arbitration procedures for fast settlement of litigation cases First Brazilian bank to release BR GAAP and IFRS quarterly Investor Relations | 2Q12 | 29/34
  • 30.
    Committees …favoring collective decisionmaking. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge, ideas, and information p Transparencyy 45 days BOARD OF DIRECTORS RISK COMPENSATION AUDIT COMMITTEE COMMITTEE COMMITTEE 45 days Bi-annually Monthly CEO COMMITTEES TREASURY INTERNAL INVESTMENT HUMAN PERFORMANCE EXECUTIVE CREDIT COMMITTEE LITIGATION CONTROLS AND IT ETHICS BANK RESOURCES EVALUATION ALCO COMPLIANCE Monthly Twice a week Weekly Weekly Bi-monthly Every 2 months Monthly 45 days Quarterly On demand Investor Relations | 2Q12 | 30/34
  • 31.
    Dividends and Intereston Own Capital PINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis. 55 45 40 40 35 35 33 30 25 25 16 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 Investor Relations | 2Q12 | 31/34
  • 32.
  • 33.
    Social Investment andResponsibility PINE supports and promotes the Brazilian culture and sports Culture Social Paulo von Poser: exhibit of the painter Paulo von Poser, who is one of Brazil’s most prominent Instituto Alfabetização Solidária artists Instituto Casa da Providência Quebrando o Tabu: documentary based on the analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against drugs Além da Estrada: motion picture, which received the award for best director in the 2010 Sports Rio Festival Minas Tênis Clube: training program for athletes Responsible Credit “Lists of E “Li f Exceptions”: the B k d i ” h Bank does not fi finance projects or those organizations that damage the environment, are involved in illegal labor Most Green Bank practices or produce, sell or use products, substances or activities considered prejudicial to society. y System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally- produced sustainability reports for corporate loans. Recognized by the International Finance Corporation (IFC), private agency programs of the World Bank as the most "green" bank as a result of its transactions under the Global Trade Finance Program (GTFP) and its on lending to companies focused on renewable energy and ethanol. Investor Relations | 2Q12 | 33/34
  • 34.
    Investor Relations Noberto Pinheiro Jr. CEO Susana Waldeck Norberto Zaiet Jr. CFO COO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Phone: +55-11-3372-5343 ir.pine.com.br ir@pine.com.br This presentation contains forward-looking statements related to business prospects, estimates for operating and financial results, and estimates related to prospects for growth at Banco Pine. These are merely projections and as such are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents, and are, therefore, subject to change without prior notice. Investor Relations | 2Q12 | 34/34