2. 2/31Investor Relations | 2014 |
Profile and History
Pine
History
Business Strategy
Competitive Landscape
Focus Always on the Client
Corporate Credit
FICC
Pine Investimentos
Highlights and Results
Corporate Governance
Organizational Structure
Corporate Governance
Committees
Social Investment and Responsibility
Summary
4. 4/31Investor Relations | 2014 |
Pine
Specialized in providing financial solutions for corporate clients…
Credit Portfolio by Annual Client Revenues
Profile
Focused on establishing long-term relationships
Profound knowledge and product penetration
Business is structured along three primary business lines:
• Corporate Credit: credit and financing products
• FICC: instruments for hedging and risk
management
• Pine Investimentos: Capital Markets, Financial
Advisory, Project & Structured Finance and
Research
December 30th, 2014
Over R$2 billion
41%
R$500 million to
R$2 billion
35%
R$250 million to
R$500 million
12%
Up to R$250
million
12%
5. 5/31Investor Relations | 2014 |
...with extensive knowledge of Brazil’s corporate credit cycle.
History
1997
Noberto and Nelson
Pinheiro sell their
stake in BMC and
found Pine
1939
Pinheiro Family
founds
Banco Central do
Nordeste
1975
Noberto Pinheiro
becomes one of
BMC’s controlling
shareholders
Devaluation
of the real
Nasdaq Sept. 11 Brazilian
Elections
(Lula)
SubprimeAsian
Crisis
Russian
Crisis
European
Community
End of 2007
Focus on expanding the Corporate Banking franchise
Discontinuation of the payroll-deductible loan business
May, 2007
Creation of Pine Investimentos products line and
opening of the Cayman branch
2005
Noberto Pinheiro becomes Pine’s sole
shareholder
October, 2007
Beginning of the FICC Business
October, 2011
Subscription of Pine’s capital by DEG
August, 2012
Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management
November, 2012
Opening of the broker dealer in New York, Pine Securities USA LLC
March, 2007
IPO
May, 2014
17 years
155 184 222 341 521 620 755 663 761
1,214
2,854 3,108
4,195
5,763
6,963
7,911
9,920 9,826
18
62
121 126 140 136 152 171
209
335
801
827 825
867
1,015
1,220
1,272 1,256Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Corporate Credit Portfolio (R$ Million)
Shareholders' Equity (R$ Million)
7. 7/31Investor Relations | 2014 |
Competitive Landscape
Pine serves a niche market of companies with few options for banks.
100% focused on providing complete service
to companies, offering customized products
Corporate & SME
SME & Retail
Retail
100% Corporate
Large Multi-Services banks
Market
Consolidation of the banking sector has decreased
the supply of credit lines and financial instruments
for corporate
Foreign banks are in a deleveraging process
PINE
Full service Bank – Credit, Hedging, and Investment
Bank products – with room for growth
~15 clients per officer
Competitive Advantages:
Focus
Fast response: Strong relationship with
clients, with the credit committee meeting
twice a week and response times to clients of
no more than one week
Specialized services
Tailor-made solutions
Product diversity
Foreign and
Investment Banks
8. 8/31Investor Relations | 2014 |
Focus Always on the Client
Strategy of product diversity, tailored to meet the needs of each individual client.
Working Capit
CDIs
Bank
Guarantees
Exclusive Funds
Portfolio
Management
Swap NDFs
Structured Swaps
BNDES Onlending
Bank Guarantees
Compror
ACC/ACE
Export Finance
Finimp
Lettersof Credit
2,770 onlending
Overdraft
Accounts
Syndicated and
Structured Loans
Fixed Income
Currencies
Commodities
Equities
CDBs
CDs
RDBs
LCAs
LCIs
DebenturesCRIs
CCBs
Eurobonds
Private
Placements
Financial
Letters
Clients
Treasury
Corporate
Credit
FICC
Pine
Investimentos
Distribution
Capital
Markets
Financial Advisory
Local Currency
Foreign Currency
Fixed Income Currencies
Commodities
Pricing of Assets and
Liabilities
Liquidity
Management
Trading
Local Currency
Onlending
Foreign Currency
Trade Finance
Participation
Funds
Options
Working CapitalUnderwriting
Corporate &
Structured
Finance
M&A
Project Finance
Structured
Finance
Private Credit
Funds
Real Estate Funds
Rural Credits
Aircraft
Financing
Investment
Management
In addition to the
headquarters located in the
city of São Paulo, Pine has 11
branches throughout Brazil, in
the States of Ceará, Mato
Grosso, Minas Gerais, Paraná,
Pernambuco, Rio de Janeiro,
Rio Grande do Sul, and
São Paulo. The origination
network also counts with a
Cayman Branch and a broker
dealer in New York (USA).
9. 9/31Investor Relations | 2014 |
Corporate Credit
Actions Credit Committee
Strong track record and solid credit origination and approval process.
Credit Approval: Electronic Process
Origination Officers
Credit origination Credit analysis, visit to clients, data
updates, interaction with internal
research team
Credit Analysts
Regional Heads of
Origination and Credit
Analysis
Presentation to the Credit Committee
CRO, Executive
Directors and Analysts
of Credit
Centralized and unanimous
decision making process
CREDIT COMMITTEE
Meets once a week – reviewing 20 proposals on average
Minimum quorum: 4 members - attendance of CEO or
Chairman is mandatory
Members:
Chairman of the Board
CEO
Chief Operating Officer
Chief Administrative Officer
Chief Risk Officer
Participants:
FICC Executive Director
Credit Analysts Team
Other members of the Corporate Banking
origination team
Personalized and agile service, working closely with
clients and keeping a low client to account officer ratio:
each officer handles ~15 economic groups
Geographic coverage of clients, providing the bank with
local and extremely up-to-date credit intelligence and
information
Established long term relationships with more than 600
economic groups
Origination network is comprised of 11 branches divided
into 14 origination platforms in Brazil’s major economic
centers
25 credit analysts, assuring that analysis is fundamentally
driven and based on industry-specific intelligence
Efficient loan and collateral processes, documentation,
and controls, which has resulted in a low NPL track record
Discussion on sizing, collateral,
structure etc.
10. 10/31Investor Relations | 2014 |
December 30th, 2014
Scenario on December 30th:
Duration: 154 days
Mark-to-Market: R$221 million
Efficient capital allocation with reference equity required of
only R$35 million
Stress Scenario (Dollar: +31% and Commodities Prices: -30%):
Stressed MtM : (R$365 million)
R$ million
FICC
Proven trackrecord: 2nd in commodity derivatives1.
Client Notional Derivatives by Market
Market Segments
Notional Value and MtM
Portfolio Profile
1Fonte: Reporte Cetip, December 2014
Fixed Income: Fixed, Floating, Inflation, Libor
Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,
Australian Dollar
Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn,
Cotton, Metals, Energy
11,148 11,268 14,382 8,376 7,703
327
482
354 288
221
(310)
(243)
(532)
(47)
(365)
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Notional Amount
MtM
Stressed MtM
Commodities
15%
Fixed Income
8%
Currencies
77%
11. 11/31Investor Relations | 2014 |
R$ million
Pine Investimentos
Volume of Underwriting Transactions
Selected Transactions
Capital Markets: Structuring and Distribution of Fixed
Income Transactions.
Financial Advisory: Project & Structured Finance, M&A,
and hybrid capital transactions.
Research: Macro, Commodities, and Corporate.
1,040
2,073
1,294
1,973
506
2012 2013 2014
Local Market International Market
1,800
1,040
4,046
August, 2014
Export Prepayment Finance
Structuring Agent
August, 2014
Long Term Loan
Financial Advisor
US$58,000,000R$25,000,000
R$391,459,000
July, 2014
Project Finance
Financial Advisor
R$459,300,000
June, 2014
M&A
Advisor
R$75,000,000
March, 2014
CRI (ICVM 476)
Lead Cordinator
September, 2014
Debentures
R$50,000,000
Lead Coordinator
R$40,000,000
December, 2014
Lead Cordinator
CCB
R$45,200,000
November, 2014
Debentures
Lead Coordinator
December, 2014
BNDES Onlending
R$630,000,000
Coordinator
13. 13/31Investor Relations | 2014 |
2014 Events and Highlights
1.Liquid balance sheet, with cash position of R$1.6 billion, equivalent to 48% of time deposits.
2.Expansion in the positive liquidity gap over the past years, with 12 months for credit versus 16 months for funding.
3.Diversified revenues with positive contributions from all business lines: 74.4% from Corporate Credit, 19.4% from FICC, 3.3% from
Pine Investimentos and 2.9% from Treasury.
4.Active and constant liability management with a reduction in the average cost of funding of 3.6 p.p. of the CDI rate in the past 12
months.
5.Increase of 0.5 p.p. in the Tier I BIS ratio over 2014 reaching 13.9% of total capital, representing 26.4% higher than the minimum
required by the Brazilian Central Bank.
6.Execution of two transactions of the Pine-DEG partnership, totaling US$43 million in 2014.
7.16th largest bank in derivative transactions and the 2nd largest in commodity derivatives segment according to CETIP – OTC
Clearing House.
14. 14/31Investor Relations | 2014 |
4.8% 4.3%
2013 2014
NIM Evolution
-0.5 p.p.
162 97
2013 2014
Net Income
-40.1%
9,930 9,826
Dec-13 Dec-14
Total Loan Portfolio'
-1.0%
8,383 8,500
Dec-13 Dec-14
Total Funding
+1.4%
2014 Financial Highlights
1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)
R$ million
The main performance indicators were within expectations in the period...
1,272 1,256
Dec-13 Dec-14
Shareholders' Equity
-1.3%
13.0%
7.6%
2013 2014
ROAE
-5.4 p.p.
15. 15/31Investor Relations | 2014 |
2.8
3.0
2.8
Dec-12 Dec-13 Dec-14
39% 38% 40%
61% 62% 60%
Dec-12 Dec-13 Dec-14
1 Product More than 1 product
Corporate
Credit
62.9%
FICC
27.9%
Pine
Investimentos
5.5%
Treasury
3.7%
2013
Corporate
Credit
74.4%
FICC
19.4%
Pine
Investimentos
3.3%
Treasury
2.9%
2014
Product and Revenue Diversification
... with contributions from all business lines.
Clients with more than one product Penetration Ratio – Clients with more than one product
Revenue Mix
16. 16/31Investor Relations | 2014 |
4.5% 4.2%
3Q14 4Q14
-0.3 p.p.
Net Interest Margin
Recurring1 - NIM Evolution Impacts in Period
NIM Breakdown
NIM in line with guidance.
1Considers the liabilities hedge effect
Lower flow of transactions in the FICC business.
Average cash position 7.5% higher than the 3Q14 position
Mark to market of private securities that compose the
expanded loan portfolio.
R$ million
4Q14 3Q14 4Q13 2014 2013
Recurring Financial Margin
Income from financial intermediation 83 92 90 380 390
Overhedge effect 10 4 3 9 6
Liabilities hedge effect 1 5 - (0) -
Recurring Income from financial intermediation 94 101 93 389 396
17. 17/31Investor Relations | 2014 |
R$ million
4Q14 3Q14 4Q13 2014 2013
Operating expenses1
52 49 56 198 203
(-) Non-recurring expenses (3) (4) (1) (12) (6)
Recurring Operating Expenses (A) 49 45 55 186 197
Recurring Revenues2
(B) 116 127 118 481 513
Recurring Efficiency Ratio (A/B) 42.2% 35.4% 46.6% 38.7% 38.4%
1
Other administrative expenses +tax expenses +personnel expenses
2
Gross Income from financial intermediation - provision for loan losses +fee income +overhedge effect - hedge impact
Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank.
Expenses and Efficiency Ratio
Expenses
Efficiency Ratio
Cost control, better than the guidance range.
25 24
2725
22 22
46.6%
35.4%
42.2%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
0
5
10
15
20
25
30
35
40
45
50
4Q13 3Q14 4Q14
92
9795
90
38.4% 38.7%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
0
20
40
60
80
100
120
140
2013 2014
Personnel
Expenses
Other
administrative
expenses
Recurring
Efficiency Ratio
(%)
18. 18/31Investor Relations | 2014 |
4,200 4,236 4,284 4,509
5,050 5,092 4,904 4,731 4,730
853 826 844
990
1,068 1,103
1,071 1,248 1,302
2,114
2,501
2,807
3,073
2,909 2,905
2,941 2,896 2,969781
842
1,059
965
903 989 1,116 924 826
Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Trade finance: 8.4%
Bank Guarantees:30.2%
BNDES Onlending: 13.3%
Working Capital: 48.1%
7,948
8,405
8,994
9,537
9,930
10,090 10,032
9,800 9,826
-1.0%
+0.3%
1 Includes Stand by LC
2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals
R$ million
Loan Portfolio
The portfolio ended the period at R$9.8 billion...
19. 19/31Investor Relations | 2014 |
40%40%39%42%
6%5%5%
5%
8%9%7%
8%
10%9%13%8%
10%9%9%8%
12%14%12%
9%
14%14%15%20%
Dec-14Dec-13Dec-12Mar-12
Sugar and
Ethanol
Construction
Agriculture
Energy
Infrastructure
Transportation
andLogistics
Others
Sugar and Ethanol
14%
Construction
12%
Agriculture
10%
Electric and
Renewable Energy
10%Infrastructure
8%
Transportation
and Logistics
6%
Telecom
4%
Chemicals
4%
Vehiclesand Parts
4%
Specialized
Services
3%
Foreign Trade
3%
Metallurgy
3%
Meatpacking
3%
Retail
2%
Food Industry
2%
Construction
Material
1%
Other
11%
Dec-14
Continuous Loan Portfolio Management
Sectors Rebalance
...with increased sector diversification...
The composition of the portfolio of the 20th largest clients changed by over 25% in the past twelve months;
The total portfolio share of the 20th largest clients remained below 25%, in line with market peers.
20. 20/31Investor Relations | 2014 |
Working
Capital
60%
Trade
Finance
23%
Onlending
16%
Guarantees
1%
MT
47%
SP
31%
PR
9% BA
5%
NE
3%
GO
2% RS
2%
MG
1%
Working
Capital
45%
Guarantees
40%
Onlending
12%
Trade
Finance
3%
Working
Capital
79%
Guarantees
21%
Residential
Lots
38%
Residential
38%
Warehouse
15%
Mall
6%
Commercial
3%
Main Sectors
Sugar and Ethanol | Agriculture| Construction
Sugar and Ethanol Agriculture
Construction
Exposure by State Exposure by Product Exposure by State Exposure by Product
Exposure by Segment Exposure by Product
SP
77%
MG
15%
PR
5%
MS
3%
GO
1%
21. 21/31Investor Relations | 2014 |
Working
Capital
85%
Guarantees
11%
BNDES
Onlending
4%
Concession
33%
Transportation
29%
Industrial
27%
Oil and Gas
7%
Energy
4%
Guarantees
72%
Working
Capital
19%
BNDES
Onlending
9%
Wind Energy
68%Transmitting
11%
Equipment
Supplier
8%
Distributors
7%
SHPs UHEs
3%
UTE
2%
Trader
1%
Main Sectors
Energy and Infrastructure
Energy Infrastructure
Exposure by Segment Exposure by Segment
Exposure by ProductExposure by Product
22. 22/31Investor Relations | 2014 |
1.2% 1.2%
1.1%
0.7%
0.1%
0.7%
0.3% 0.3%
1.1%
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
5.8%
4.2%
5.0%
2.9%
2.1%
2.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Dec-13 Sept-14 Dec-14
D-H Portfolio Coverage ofTotal Portfolio
AA-A
42.7%
B
35.2%
C
17.1%
D-E
2.6%
F-H
2.4%
December 30th, 2014
Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio
excluding Bank Guarantees and Stand-by Letters of Credit.
1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,682
2Covegare of Total Portfolio: Provisions / Loan Portfolio Res. 2,682
Loan Portfolio Quality
95% of loan portfolio classified between AA-C ratings.
Loan Portfolio Quality – Res. 2,682
Credit Coverage
Non Performing Loans > 90 days (Total Contract)
Collaterals
Products
Pledge
42%
Receivables
18%
Properties
Pledge
37%
Investments
3%
24. 24/31Investor Relations | 2014 |
46% 47% 47% 43% 41%
54% 53% 53% 57% 59%
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
TotalDeposits Others
83% 82% 83%
80% 80%
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
7.8x 7.9x 7.9x 7.7x 7.8x
5.5x 5.6x 5.6x 5.4x 5.4x
-
1. 0
2. 0
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10. 0
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Expanded Loan Portfolio
Loan Portfolio excluding
Bank Guarantees
17
16
16
16 16
15
14
14 13
12
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Funding
Credit
Leverage: Expanded Loan Portfolio / Shareholders’ Equity
Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit /
Shareholders’ Equity
Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of
Credit / Total Funding
Asset & Liability Management
... keeping a positive gap between credit and funding.
Leverage
ALM – Average Maturity
Credit over Funding Ratio
Total Deposits over Total Funding
R$ millionmonths
8,6388,383 8,798 8,559 8,500
25. 25/31Investor Relations | 2014 |
R$ Million BIS (%)
Tier I 1,256 12.5%
Tier II 146 1.4%
Total 1,402 13.9%
Capital Adequacy Ratio (BIS), Basel III
BIS ratio reached 13.9%.
13.4%
15.0% 14.7%
13.7%
12.0% 12.2% 12.2% 12.4% 12.5%
2.8%
2.1% 2.3%
2.2%
2.1% 1.5% 1.5% 1.4% 1.4%
16.2%
17.1% 17.0%
15.9%
14.1% 13.7% 13.7% 13.8% 13.9%
Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Tier II Tier I
Minimum Regulatory
Capital (11%)
26. 26/31Investor Relations | 2014 |
2015 Guidance
Assumption | GDP contraction between 0.5% and 0.3%.
Guidance
Expanded Loan Portfolio - 5% to + 5%
Personnel and Administrative Expenses -10% to - 5%
NIM 4% to 5%
ROAE 7% to 10%
28. 28/31Investor Relations | 2014 |
Organizational Structure
Non-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy.
CEO
Noberto N. Pinheiro Jr.
COO
Alexandre Aoude
CRO
Gabriela Chiste
CAO
Ulisses Alcantarilla
CFO
Norberto Zaiet
INTERNAL AUDIT
Tikara Yoneya
COMPENSATION
COMMITTEE
AUDIT
COMMITTEE
EXTERNAL AUDIT
PWC
Noberto N. Pinheiro Noberto N. Pinheiro Jr. Mailson da Nóbrega Maurizio Mauro Gustavo Junqueira Susana Waldeck
Chairman Vice Chairman
Independent
Director
Independent
Director
External
Director
External
Director
BOARD
HUMAN RESOURCES & IT
Ivan Farber
Origination
Investment Banking
Sales & Trading
Research Macro/
Commodities/Corporate
Credit
Corporate Research
Compliance, Internal
Controls and IT Security
Credit, Market, Operational
and Liquidity Risks
Financial Modeling
Asset & Liabilities Back
Office
Legal
Collaterals Management
Special Situations
Middle Office
Office Management
Controlling
Accounting
Tax Planning
Accounts Payable
Marketing
Investor Relations
International Division
29. 29/31Investor Relations | 2014 |
Corporate Governance
Pine is committed to best corporate governance practices…
Two Independent Members and Two External Members 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
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
Harumi Susana Ueta Waldeck: Former CFO of Pine, with over 17 years of experience at the
company. She brings the day-to-day experience to the Board.
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
Arbitration procedures for fast settlement of litigation cases
30. 30/31Investor Relations | 2014 |
Social Investment and Responsibility
Focus on the short, medium and long term.
Social Investment Recognition
Partnerships
Most Green Bank
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 onlending to companies focused on renewable energy and ethanol
Efficiency Energy
Recognition by World Bank for support in the Energy Efficiency sector.
Responsible Credit
“Lists of Exceptions”: the Bank does not finance projects or those
organizations that damage the environment, are involved in illegal
labor practices or produce, sell or use products, substances or activities
considered prejudicial to society.
System of environmental monitoring, financed by the IADB and
coordinated by FGV, and internally-produced sustainability reports for
corporate loans
Protocolo Verde – “Green Protocol”, an agreement
between FEBRABAN and the Ministry of the Environment
to support development that does not compromise future
generations.
Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and
Miguel Rio Branco, in addition to sponsoring and supporting films and
documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the
drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além
da Estrada (Charly Braun) and others.
Sustainability Annual Report
Sixth consecutive year disclosing the
Sustainability Report in the GRI
standard. The 2014 report, with its high
level of clarity, transparency and quality
was recognized with the second place in
the Abrasca Annual Report Award,
considering its category of companies
with net income to R$3 billion.
31. 31/31Investor Relations | 2014 |
This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as such
are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy
(political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax
legislation) and therefore are subject to change without prior notice.
Noberto N. Pinheiro Junior
CEO
Norberto Zaiet Junior
CFO/IRO
Raquel Varela
Head of Investor Relations
Luiz Maximo
Investor Relations Specialist
Ana Lopes
Investor Relations Analyst
Gabriel Netto
Investor Relations Assistant
Fone: (55 11) 3372-5343
www.pine.com/ir
ri@pine.com
Investor Relations
Editor's Notes
Recurring income from financial intermediation totaled R$389 million, with margin (NIM) at 4.3%, within the guidance range of 4.0% to 5.0%.
Year on year, the lower margin is mainly explained by a defensive mix of portfolio, by an average cash position 16.1% higher than the average of 2013 and also by an increase in FICC and Treasury risk aversion.
In 4Q14, recurring income from financial intermediation totaled R$94 million, with recurring net interest margin (NIM) at 4.2%. This reduction compared to the previous quarter is mainly explained by the lower flow of transactions in the FICC business, by an average cash position 7.5% higher than the 3Q14, and also by the mark to market of private securities that compose the expanded loan portfolio.