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Institutional presentation 4 q172

The document provides an overview of Pine Bank including: - Pine Bank has a focus on long-term relationships and specialized services. It has a presence in major Brazilian cities. - The bank has three primary business lines: corporate credit, financial instruments for hedging, and capital markets/investment banking services. - Key shareholders include the controlling family shareholder with 68% ownership and development banks DEG and Proparco. - In 2017, Pine Bank worked to increase transactions under $10 million, penetrate new clients, offer new products/services, and evolve its investment banking arm as part of a turnaround effort. Accounting results showed a net profit of $2 million for the period.

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4Q17 Institutional Presentation
Profile and History Business Strategy Corporate Governance Economic Overview Results
Pine Bank Profile  Focused on establishing long-term relationships  Fast response in credit approval  Specialized services  Customized products | Product diversity  Presence in Brazil’s major cities and business capitals:  São Paulo, matriz  Campinas  Curitiba  Porto Alegre  Ribeirão Preto  Rio de Janeiro  São José do Rio Preto  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 Investor Relations| 4Q17 | 3/36 Ownership Structure Dec/28 ON PN Total % Controlling Shareholder 65,178,483 17,228,694 82,407,177 68.0% Management - 5,928,595 5,928,595 4.9% Free Float - 30,300,607 30,300,607 25.0% Individuals - 9,233,022 9,233,022 7.6% Institutional Investors - 10,465,719 10,465,719 8.6% Foreign Investors - 2,915,071 2,915,071 2.4% DEG - 5,581,714 5,581,714 4.6% Proparco - 2,105,081 2,105,081 1.7% Total 65,178,483 53,457,896 118,636,379 97.9% Treasury - 2,535,645 2,535,645 2.1% Total 65,178,483 55,993,541 121,172,024 100.0%
3Q17 Reassessment of the Bank’s portfolio History 1997 Noberto Pinheiro sell his stake in BMC and found Pine 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of BMC’s controlling shareholders Subprime European Community 2007 Discontinuation of the payroll-deductible loan business, with changes in the corporate business strategy. Hence, there was a creation of Pine Investimentos, besides the opening of the Cayman branch October, 2011 Subscription of Pine’s capital by DEG August, 2012 Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management 2015 Portfolio deleveraging strategy due to an political and economic scenario March, 2007 IPO May, 2017 20 years Car-Wash Investor Relations| 4Q17 | 4/36 ...
Profile and History Business Strategy Corporate Governance Economic Overview Results
 Meets once a week – reviewing on ~ 25 proposals  Mandatory Quorum: 5 members Committee Members:  President  Vice-President for Finances  Vice-President Administrative  Vice-President for Corporate and Investment Banking  Credit Superintendent Superior Committee Members:  Two members of the Board Participants:  Sales Desk Director  Credit Analysts Team  Other members of the Corporate Banking origination team Actions Credit Committee  Personalized and agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~25 economic groups  Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information  Established long term relationships  Pine has approximately 20 professionals in the credit analysis area, 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 Corporate Credit 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 Centralized and unanimous decision making process CREDIT COMMITTEE Discussion on sizing, collateral, structure etc. Superior Committee Approval Tickets over R$ 15 MM Credit Approval: Electronic Process Investor Relations| 4Q17 | 6/36
Sales Desk Market Segments Competitive Advantages Sample Transaction  One Stop Shop: credit and risk mitigation  Every transaction demands prior credit approval  Collaterals surpass approved derivative’s limits  Agility| Client Focused| Diversification  Currencies (90%): Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar  Commodities (5%): Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy  Fixed Income(5%): Fixed, Floating, Inflation, Libor Transaction is closed and Treasury does hedge GDA Limits Types of Derivatives Collaterals PINE Credit Analysis Process Sales Desk • Credit Analysis • Collaterals • Cross-selling opportunity • Credit Committee Approval Client 1st 2nd Margin Calls ManagementDerivatives Trader prices the transaction, including spread Investor Relations| 4Q17 | 7/36
Operating Model Selected Transactions Pine Investimentos March, 2017 CRI R$ 47,000,000 Lead Coordinator March, 2017 Structure Credit Facility R$ 90,000,000 Lead Coordinator May, 2017 R$ 60,000,000 Bond May, 2017 Promissory Note R$ 40,000,000 Lead Coordinator May, 2017 BRDE Bank Guarantee R$ 10,000,000 Pine Investimentos Financial AdvisoryCapital Markets Project Finance  Fixed Income (CRIs, CRAs)  Infrastructure Debentures  Equities  Securitization  Hybrid capital transactions  Project & Structured Finance Investors  Family Offices  Individuals  Companies  Asset Managers  Financial Institutions  Pension Funds  Foreign Investors  Hedge Funds Investor Relations| 4Q17 | 8/36
Parceria Estratégicas DEG e PROPARCO  Founded in 1962 in Germany, DEG is one of the largest institutions in Europe that contribute to growth and development of private companies in emerging market  It belongs to the KFW Bankengruppe, Germany's largest public development bank  Promotes development of private enterprises in emerging markets through long-term financing About DEG Group Structure About PROPARCO Group Structure  Founded in 1977 in Paris, started it´s activities in Brazil in 2006  Proparco is the subsidiary of Agence Francaise de Dévelopement ( AFD)  Focused on emergence of a strong and innovative private sector with aim of supporting growth and sustainability in Emerging Market 57% French Financial Institutions France International Organizations French companies Investment Funds & Foundations 26% 13% 3% 1% Strategic Partnerships Investor Relations| 4Q17 | 9/36
Profile and History Business Strategy Corporate Governance Economic Overview Results
Organizational Structure INTERNAL AUDIT COMPENSATION COMMITTEE AUDIT COMMITTEE EXTERNAL AUDIT PWC BOARD OF DIRECTORS Corporate & IB Mauro Sanchez Legal, Compliance, AML and IS Jefferson Miceli Risk, Credit and Finance João Brito Business Corporate Banking Investment Banking New Businesses Products Digital Channels Risks (Liquidity, Market, Credit and Operational) Credit Strategic Planning and P&L Commercial Planning and Valuation Accounting Tax Accounts Payable IR, Funding and Marketing Research International Sales & Trading ALM & FLOW Legal Compliance and AML IS CEO Norberto Zaiet Jr. IT Eugenio Fabbri HR Camilla Suave Operations Ulisses Alcantarilla Operations Back-office Special Assets Middle Office Services Investor Relations| 4Q17 | 11/36 Noberto Pinheiro Rodrigo Pinheiro Igor Pinheiro Norberto Zaiet Gustavo Junqueira Mailson de Nóbrega Fábio Dutra Sérgio Machado Chairman Vice Chairman Member Member Independent Member Independent Member Independent Member Independent Member
 Four Independent Members on the Board of Directors  Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990  Gustavo Junqueira: Former Head of Pine Investimentos, Member of the Boards of Directors at EZTEC, Rumo, Cosan, Moinho Paulista and Sociedade Rural Brasileira, as well as managing partner at Brasilpar.  Fabio Dutra: Executive with extensive experience in financial institutions in products, innovation, commercial and market development areas and with technological bias, adding in to the Bank’s digital transformation  Sérgio Machado Zica de Castro: Manager with vast experience in leadership position in the financial market, being a member of Pine’s Audit Committee since 2013  São Paulo Stock Exchange (B3) 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 Corporate Governance Investor Relations| 4Q17 | 12/36
Partnerships Social Investment and Responsibility Social Investment Recognition 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 Investor Relations| 4Q17 | 13/36 Seventh consecutive year disclosing the Sustainability Report in the GRI standard. For more information, access the website ir.pine.com.
Profile and History Business Strategy Corporate Governance Economic Overview Results
Real GDP SELIC IPCA (CPI) Gross Government Debt Macroeconomic Investor Relations| 4Q17 | 15/36
Corporate and Households Credit/GDP Public Banks, National and Internacional Privates Banks Interest and Spread Credit Growth Investor Relations| 4Q17 | 16/36
Projeções ... porém, espera-se que esse cenário tenha uma leve melhora em 2017. Source: Pine Bank, December 2017 Guidance Investor Relations| 4Q17 | 17/36 Brazil: Key Economic Indicators - PINE INDICATORS 2012 2013 2014 2015 2016E 2017E 2018E 2019E Real GDP growth rate (%) 1.9% 3.0% 0.5% -3.5% -3.5% 1.0% 2.5% 3.5% BRLUSD (eop) 2.04 2.34 2.66 3.90 3.26 3.31 3.18 2.98 BRLUSD (average) 1.95 2.16 2.35 3.34 3.48 3.19 3.26 3.08 IPCA (CPI) 5.8% 5.9% 6.4% 10.7% 6.3% 2.9% 3.8% 4.3% IGP-M (PPI) 7.8% 5.5% 3.5% 10.5% 7.2% -0.5% 4.2% 5.0% Selic (interest rate, eop) 7.25% 10.00% 11.75% 14.25% 13.75% 7.00% 6.75% 9.00% Selic (interest, average) 8.46% 8.44% 11.02% 13.58% 14.15% 9.83% 6.77% 7.88% Trade balance (USD bn) 19.4 2.6 -3.9 19.7 47.7 67.1 50.0 35.0 Current account (USD bn) -74.2 -74.8 -104.2 -58.9 -23.5 -9.8 -40.0 -55.0 Current account (% GDP) -3.0% -3.0% -4.2% -3.3% -1.3% -0.5% -1.8% -2.0% FDI (US$bn) 87 69 97 74 78.9 70.3 80.0 95.0 Primary surplus (% GDP) 2.2% 1.7% -0.6% -1.9% -2.5% -1.7% -1.0% 0.1% Gross government debt (% GDP) 53.7% 51.5% 56.3% 65.5% 70.0% 74.0% 75.1% 75.9%
Profile and History Business Strategy Corporate Governance Economic Overview Results
Turnaround 19/36Investor Relations| 4Q17 | • Transactions less than R$10 million • Greater penetration in new clients • New products and services • New officers dedicated to companies with revenues less than R$500 million • Evolved our Investment Banking arm Credit Production • Pine Online • Internet Banking to the Corporate segment Continuous Bank Digitalization • Increase in provisions Portfolio Re-assessment • Block Trade • Reached the minimun Free Float requeriment PINE4 • Election of two independent members to the Board of Directors • Election of two technical members to the Audit Committee Corporate Governance
Accounting Result 20/36Investor Relations| 4Q17 | R$ '000 Corporate Portfolio Consolidated Portfolio Gross income from financial intermediation 55,210 (7,459) 47,751 - - - Provision for loan losses (1,329) 10,084 8,755 Gross income from financial intermediation after loan losses 53,881 2,625 56,506 - - - Fee income 21,232 772 22,004 Personnel expenses (18,097) (4,768) (22,865) Other administrative expenses (17,354) (8,794) (26,148) Tax expenses (4,312) - (4,312) Other operating income (expenses) (3,726) (13,529) (17,255) Operating income 31,624 (23,694) 7,930 - - - Non-operating income 2,010 1,424 3,434 Income before taxes and profit sharing 33,634 (22,270) 11,364 - - - Income tax and social contribution (15,267) 10,296 (4,971) Profit sharing (3,772) (609) (4,381) Net result 14,595 (12,583) 2,012 Monitored Portfolio
Financial Margin Breakdown – Corporate and Monitored Portfolio Consolidated Margin NIM 21/36Investor Relations| 4Q17 | R$ million Corporate Portfolio Monitored Portfolio Total Income from financial intermediation - exorvehedge (A) 55 (7) 48 Managerial Income from financial intermediation - ex orvehedge (C)¹ 45 (7) 38 Average earning assets (B) 5,070 816 5,886 Financial Margin before provision (%) (A/B) 4.4% -3.6% 3.3% Managerial Financial Margin before provision (%) (C/B) 3.6% -3.6% 2.6% ¹ Ex-income from the valuation of assets taken as collateral and marked at maket value R$ million 4Q17 3Q17 4Q16 2017 2016 Financial Margin Income from financial intermediation 43 (26) 17 110 172 Overhedge effect 5 (10) (3) (9) (65) Securities's MtM effect (10) 61 - 51 - Managerial income from financial intermediation 38 26 14 151 106 Average earning assets 1 5,886 5,930 5,703 5,701 6,143 Managerial Financial Margin before provision (%) 2.6% 1.8% 1.0% 2.7% 1.7% 1 Excludes repo transactions and the liability portion of derivatives and term sale of non-operating assets.
Personnel and Administrative Expenses - Corporate and Monitored Portfolio Consolidated Efficiency Ratio Efficiency Ratio 22/36Investor Relations| 4Q17 | R$ million 4Q17 3Q17 4Q16 2017 2016 Operating expenses1 53 53 44 195 170 (-) Non-recurring expenses (2) (4) - (6) - Recurring Operating Expenses (A) 51 49 44 189 170 Revenues 2 (B) 60 45 36 232 178 Efficiency Ratio (A/B) 86.0% 110.1% 124.1% 81.3% 95.1% 1 Other administrative expenses + tax expenses + personnel expenses 2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect Operating expenses 40 14 53 (-) Non-recurring expenses (2) - (2) Recurring Operating Expenses (A) 38 14 51 Revenues (B) 76 (7) 70 Managerial Revenues (C)¹ 66 (7) 60 Efficiency Ratio (A/B) 49.4% - 73.6% Managerial Efficiency Ratio (A/C) 56.9% - 86.0% ¹ Ex-income from the valuation of assets taken as collateral and marked at maket value R$ million Corporate Portfolio Monitored portfolio Total
Client Notional Derivatives by Market Market Segments Investor Relations | 4Q17 | 23/36 Solid trackrecord Sales Desk Notional Value and MtM Portfolio Profile  Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar  Commodities: Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy  Fixed income: Fixed, Floating, Inflation, Libor  Duration: 162 days  MtM: R$56 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%):  Stressed MtM: R$50 million Commodities 5% Fixed Income 5% Currencies 90%
Investor Relations| 4Q17 | 24/36 Pine Investimentos Selected Transactions  Capital Markets: Structuring and Distribution of Fixed Income Transactions.  Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions. March, 2017 CRI R$ 47,000,000 Lead Coordinator March, 2017 Structure Credit Facility R$ 90,000,000 Lead Coordinator May, 2017 R$ 60,000,000 Bond May, 2017 Promissory Note R$ 40,000,000 Lead Coordinator May, 2017 BRDE Bank Guarantee R$ 10,000,000 October, 2017 R$ 22,000,000 Lead Coordinator December, 2017 Bond R$ 60,000,000 Coordinator December, 2017 Structure Credit Facility R$ 32,000,000 Structure Credit Facility December, 2017 R$ 32,000,000 Lead Coordinator Coordinator Structure Credit Facility
Investor Relations| 4Q17 | 25/36 ¹ Includes Standby LC ² Includes receivables on purchase of assets. Expanded Loan Portfolio 2,975 3,203 3,331 3,356 3,360 437 370 298 319 314419 399 388 313 278 2,120 2,022 2,123 1,934 1,903 493 470 442 395 309 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Securities: 5% Bank Guarantees: 30.9% Trade finance: 4.5% BNDES Onlending : 5.1% Working Capital: 54.5% 6,445 6,465 6,582 6,318 6,163 1 2 R$ million
Investor Relations| 4Q17 | 26/36 Loan Portfolio Breakdown Breakdown – Corporate and Monitored Portfolio Non Performing Loans > 90 days (Total Contract)¹ ¹ Includes securities and ex-bank guarantees and stand by LC Evolution per portfolio R$ million Volume % Volume % Volume % Working capital¹ 2,700 44% 660 11% 3,360 55% Onlendings 311 5% 3 0% 314 5% Trade finance² 240 4% 38 1% 278 5% Res. 2.682 Loan Portfolio 3,250 53% 701 11% 3,952 64% Bank guarantees 1,862 30% 40 1% 1,903 31% Securities 194 3% 115 2% 309 5% Expanded Loan Portfolio 5,306 86% 857 14% 6,163 100% 1 Includes receivables on purchase of assets 2 Includes Standby LC Corporate Portfolio Monitored Portfolio Consolidated Portfolio 4.1%4.2% 3.7% 0.7%0.6% 1.5%1.3% 0.7% 1.7% Dec-17Sept-17Jun-17Mar-17Dec-16Sept-16Jun-16Mar-16Dec-15 3Q17 4Q17 Δ 3Q17 4Q17 Δ 348 357 9 Active Groups 24 26 2 5,450 5,306 -2.6% Risk Volume (R$ million) 868 857 -1.3% 15.7 14.9 -5.3% Average Ticket (R$ million) 36.2 33.0 -8.9% Corporate Portfolio Monitored Portfolio
Ratings Sectors Investor Relations| 4Q17 | 27/36 Credit Production 18,613 18,062 17,907 17,694 16,981 16,134 335 359 361 372 372 382 300 350 400 450 500 550 600 650 700 750 800 14,500 15,000 15,500 16,000 16,500 17,000 17,500 18,000 18,500 19,000 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Average Ticket (R$ '000) Active Groups Average Ticket and Active Groups  365 new operations  Total amount of R$3.4 billions  Average Ticket of approximately R$9 million  + 15% increase in our active clients base AA-B 74% C 26% Agriculture 17% Energy 15% Sugar and Ethanol 15% Real Estate 8% Transportation and 8% Chemical and petrochemical 6% Foreign Trade 6% Engineering 5% Others 20% Production since 3Q16
Investor Relations| 4Q17 | 28/36 Funding 460 464 446 461 376 384 460 421 344 367 2,980 3,241 3,893 3,988 4,192 46 72 114 116 103 17 11 27 19 14 454 383 331 332 365 213 240 203 273 168 247 203 176 153 129 204 86 89 91 0 448 386 403 334 295 239 150 178 142 915,692 5,697 6,280 6,252 6,101 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Trade Finance: 1.5% Multilateral Lines: 4.8% International Capital Markets: 0% Financial Letter : 2.1% Local Capital Markets: 2.8% Onlending: 6% Demand Deposits: 0.2% Interbank Time Deposits: 1.7% High Net Worth Individual Time Deposits: 68.7% Corporate Time Deposits: 6% Institutional Time Deposits: 6.2% R$ million
Investor Relations| 4Q17 | 29/36  Pine launched its digital investment platform, Pine Online  Products: CDBs, LCAs and LCIs  App: IOS and Android  The Bank's five largest funding channels PINE ONLINE
Cash Position Total Deposits over Total Funding Capital Adequacy Ratio (BIS), Basel III Investor Relations| 4Q17 | 30/36 Capital & Liability Management 6,2805,692 5,697 6,252 6,101 15.0% 14.7% 14.2% 11.9% 12.1% 0.4% 0.4% 0.4% 0.5% 0.4% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Tier II Tier I 12.4%12.4% 14.6% 15.1%15.4% R$ million
Investor Relations| 4Q17 | 31/36 Ratings Foreign andLocal Currency Long Term B- B+ National Long Term BB- BBB+
Balanço PatrimonialBalance Sheet Investor Relations| 4Q17 | 32/36 R$ million Dec-17 Sept-17 Dec-16 QoQ (%) YoY (%) Assets 8,601 9,039 8,150 -4.8% 5.5% Cash 167 149 77 12.0% 116.2% Interbank investments 1,242 903 587 37.6% 111.6% Securities 2,514 3,203 2,745 -21.5% -8.4% Interbank accounts 1 1 1 -0.5% -12.5% Lending operations 3,952 3,989 3,830 -0.9% 3.2% (-) Provisions for loan losses (580) (597) (227) 3.0% -155.7% Net lending operations 3,372 3,392 3,603 -0.6% -6.4% Other receivables 1,195 1,282 1,019 -6.8% 17.2% Property and equipments 110 110 118 0.2% -6.4% Investments 108 108 108 0.0% 0.0% Property and equipment in use 2 2 10 13.8% -76.8% Intangible 0 0 0 -1.3% -14.4% Liabilities 7,692 8,123 7,002 -5.3% 9.9% Deposits 3,901 3,813 2,598 2.3% 50.1% Money market funding 398 561 484 -29.1% -17.8% Funds from acceptance and securities issued 1,241 1,319 1,571 -5.9% -21.0% Interbank and Interbranch accounts 7 16 4 -57.9% 87.4% Borrowings and onlendings 751 807 1,141 -7.0% -34.2% Derivative financial instruments 1,152 1,295 866 -11.0% 33.1% Other liabilities 153 214 254 -28.7% -39.8% Deferred Results 90 97 84 -7.1% 7.0% Shareholders' equity 908 915 1,148 -0.8% -20.9% Liabilities and shareholders' equity 8,601 9,039 8,150 -4.8% 5.5%
Managerial Income Statement (overhedge effect) Investor Relations| 4Q17 | 33/36 R$ million 4Q17 3Q17 4Q16 2017 2016 Income from financial intermediation 213 93 208 722 609 Lending transactions 113 102 101 464 453 Securities transactions 76 10 76 233 331 Derivative financial instruments (0) (2) 15 21 (112) Foreign exchange transactions 25 (18) 15 4 (63) Expenses with financial intermediation (157) (445) (205) (997) (590) Funding transactions (133) (140) (163) (569) (554) Borrowings and onlendings (33) 12 (32) (53) 52 Provision for loan losses 9 (317) (11) (375) (88) Gross income from financial intermediation 57 (352) 3 (275) 19 Other operating (expenses) income (49) (54) (19) (155) (90) Fee income 22 19 22 81 72 Personnel expenses (23) (23) (22) (89) (85) Other administrative expenses (26) (26) (18) (89) (67) Tax expenses (4) (4) (4) (17) (19) Other operating income 6 4 8 51 36 Other operating expenses (24) (24) (5) (92) (29) Operating income 8 (406) (16) (430) (72) Non-operating income 3 2 4 9 19 Income before taxes and profit sharing 11 (403) (12) (422) (53) Income tax and social contribution (5) 164 6 178 53 Profit sharing (4) (4) (4) (19) (15) Net income 2 (244) (9) (263) (14)
Income Statement Investor Relations| 4Q17 | 34/36 R$ million 4Q17 3Q17 4Q16 2017 2016 Income from financial intermediation 208 102 211 731 674 Lending transactions 113 102 101 464 453 Securities transactions 76 10 76 233 331 Derivative financial instruments (5) 8 18 31 (47) Foreign exchange transactions 25 (18) 15 4 (63) Expenses with financial intermediation (157) (445) (205) (997) (590) Funding transactions (133) (140) (163) (569) (554) Borrowings and onlendings (33) 12 (32) (53) 52 Provision for loan losses 9 (317) (11) (375) (88) Gross income from financial intermediation 51 (342) 6 (266) 84 Other operating (expenses) income (49) (54) (19) (155) (90) Fee income 22 19 22 81 72 Personnel expenses (23) (23) (22) (89) (85) Other administrative expenses (26) (26) (18) (89) (67) Tax expenses (4) (4) (4) (17) (19) Other operating income 6 4 8 51 36 Other operating expenses (24) (24) (5) (92) (29) Operating income 3 (396) (13) (421) (6) Non-operating income 3 2 4 9 19 Income before taxes and profit sharing 6 (394) (9) (413) 13 Income tax and social contribution 0 154 3 169 (12) Profit sharing (4) (4) (4) (19) (15) Net income 2 (244) (9) (263) (14)
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. Norberto Zaiet Junior CEO João Brito CFO Raquel Varela Bastos Head of Investor Relations, Local Funding and Communication Luiz Maximo Investor Relations Manager Kianne Paganini Investor Relations Analyst Fone: (55 11) 3372-5343 ir.pine.com ir@pine.com Investor Relations Investor Relations| 4Q17 | 35/36

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Institutional presentation 4 q172

  • 1.
  • 2.
    Profile and History BusinessStrategy Corporate Governance Economic Overview Results
  • 3.
    Pine Bank Profile  Focusedon establishing long-term relationships  Fast response in credit approval  Specialized services  Customized products | Product diversity  Presence in Brazil’s major cities and business capitals:  São Paulo, matriz  Campinas  Curitiba  Porto Alegre  Ribeirão Preto  Rio de Janeiro  São José do Rio Preto  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 Investor Relations| 4Q17 | 3/36 Ownership Structure Dec/28 ON PN Total % Controlling Shareholder 65,178,483 17,228,694 82,407,177 68.0% Management - 5,928,595 5,928,595 4.9% Free Float - 30,300,607 30,300,607 25.0% Individuals - 9,233,022 9,233,022 7.6% Institutional Investors - 10,465,719 10,465,719 8.6% Foreign Investors - 2,915,071 2,915,071 2.4% DEG - 5,581,714 5,581,714 4.6% Proparco - 2,105,081 2,105,081 1.7% Total 65,178,483 53,457,896 118,636,379 97.9% Treasury - 2,535,645 2,535,645 2.1% Total 65,178,483 55,993,541 121,172,024 100.0%
  • 4.
    3Q17 Reassessment of theBank’s portfolio History 1997 Noberto Pinheiro sell his stake in BMC and found Pine 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of BMC’s controlling shareholders Subprime European Community 2007 Discontinuation of the payroll-deductible loan business, with changes in the corporate business strategy. Hence, there was a creation of Pine Investimentos, besides the opening of the Cayman branch October, 2011 Subscription of Pine’s capital by DEG August, 2012 Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management 2015 Portfolio deleveraging strategy due to an political and economic scenario March, 2007 IPO May, 2017 20 years Car-Wash Investor Relations| 4Q17 | 4/36 ...
  • 5.
    Profile and History BusinessStrategy Corporate Governance Economic Overview Results
  • 6.
     Meets oncea week – reviewing on ~ 25 proposals  Mandatory Quorum: 5 members Committee Members:  President  Vice-President for Finances  Vice-President Administrative  Vice-President for Corporate and Investment Banking  Credit Superintendent Superior Committee Members:  Two members of the Board Participants:  Sales Desk Director  Credit Analysts Team  Other members of the Corporate Banking origination team Actions Credit Committee  Personalized and agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~25 economic groups  Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information  Established long term relationships  Pine has approximately 20 professionals in the credit analysis area, 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 Corporate Credit 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 Centralized and unanimous decision making process CREDIT COMMITTEE Discussion on sizing, collateral, structure etc. Superior Committee Approval Tickets over R$ 15 MM Credit Approval: Electronic Process Investor Relations| 4Q17 | 6/36
  • 7.
    Sales Desk Market SegmentsCompetitive Advantages Sample Transaction  One Stop Shop: credit and risk mitigation  Every transaction demands prior credit approval  Collaterals surpass approved derivative’s limits  Agility| Client Focused| Diversification  Currencies (90%): Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar  Commodities (5%): Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy  Fixed Income(5%): Fixed, Floating, Inflation, Libor Transaction is closed and Treasury does hedge GDA Limits Types of Derivatives Collaterals PINE Credit Analysis Process Sales Desk • Credit Analysis • Collaterals • Cross-selling opportunity • Credit Committee Approval Client 1st 2nd Margin Calls ManagementDerivatives Trader prices the transaction, including spread Investor Relations| 4Q17 | 7/36
  • 8.
    Operating Model Selected Transactions PineInvestimentos March, 2017 CRI R$ 47,000,000 Lead Coordinator March, 2017 Structure Credit Facility R$ 90,000,000 Lead Coordinator May, 2017 R$ 60,000,000 Bond May, 2017 Promissory Note R$ 40,000,000 Lead Coordinator May, 2017 BRDE Bank Guarantee R$ 10,000,000 Pine Investimentos Financial AdvisoryCapital Markets Project Finance  Fixed Income (CRIs, CRAs)  Infrastructure Debentures  Equities  Securitization  Hybrid capital transactions  Project & Structured Finance Investors  Family Offices  Individuals  Companies  Asset Managers  Financial Institutions  Pension Funds  Foreign Investors  Hedge Funds Investor Relations| 4Q17 | 8/36
  • 9.
    Parceria Estratégicas DEG ePROPARCO  Founded in 1962 in Germany, DEG is one of the largest institutions in Europe that contribute to growth and development of private companies in emerging market  It belongs to the KFW Bankengruppe, Germany's largest public development bank  Promotes development of private enterprises in emerging markets through long-term financing About DEG Group Structure About PROPARCO Group Structure  Founded in 1977 in Paris, started it´s activities in Brazil in 2006  Proparco is the subsidiary of Agence Francaise de Dévelopement ( AFD)  Focused on emergence of a strong and innovative private sector with aim of supporting growth and sustainability in Emerging Market 57% French Financial Institutions France International Organizations French companies Investment Funds & Foundations 26% 13% 3% 1% Strategic Partnerships Investor Relations| 4Q17 | 9/36
  • 10.
    Profile and History BusinessStrategy Corporate Governance Economic Overview Results
  • 11.
    Organizational Structure INTERNAL AUDIT COMPENSATION COMMITTEE AUDITCOMMITTEE EXTERNAL AUDIT PWC BOARD OF DIRECTORS Corporate & IB Mauro Sanchez Legal, Compliance, AML and IS Jefferson Miceli Risk, Credit and Finance João Brito Business Corporate Banking Investment Banking New Businesses Products Digital Channels Risks (Liquidity, Market, Credit and Operational) Credit Strategic Planning and P&L Commercial Planning and Valuation Accounting Tax Accounts Payable IR, Funding and Marketing Research International Sales & Trading ALM & FLOW Legal Compliance and AML IS CEO Norberto Zaiet Jr. IT Eugenio Fabbri HR Camilla Suave Operations Ulisses Alcantarilla Operations Back-office Special Assets Middle Office Services Investor Relations| 4Q17 | 11/36 Noberto Pinheiro Rodrigo Pinheiro Igor Pinheiro Norberto Zaiet Gustavo Junqueira Mailson de Nóbrega Fábio Dutra Sérgio Machado Chairman Vice Chairman Member Member Independent Member Independent Member Independent Member Independent Member
  • 12.
     Four IndependentMembers on the Board of Directors  Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990  Gustavo Junqueira: Former Head of Pine Investimentos, Member of the Boards of Directors at EZTEC, Rumo, Cosan, Moinho Paulista and Sociedade Rural Brasileira, as well as managing partner at Brasilpar.  Fabio Dutra: Executive with extensive experience in financial institutions in products, innovation, commercial and market development areas and with technological bias, adding in to the Bank’s digital transformation  Sérgio Machado Zica de Castro: Manager with vast experience in leadership position in the financial market, being a member of Pine’s Audit Committee since 2013  São Paulo Stock Exchange (B3) 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 Corporate Governance Investor Relations| 4Q17 | 12/36
  • 13.
    Partnerships Social Investment andResponsibility Social Investment Recognition 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 Investor Relations| 4Q17 | 13/36 Seventh consecutive year disclosing the Sustainability Report in the GRI standard. For more information, access the website ir.pine.com.
  • 14.
    Profile and History BusinessStrategy Corporate Governance Economic Overview Results
  • 15.
    Real GDP SELIC IPCA (CPI) GrossGovernment Debt Macroeconomic Investor Relations| 4Q17 | 15/36
  • 16.
    Corporate and Households Credit/GDP PublicBanks, National and Internacional Privates Banks Interest and Spread Credit Growth Investor Relations| 4Q17 | 16/36
  • 17.
    Projeções ... porém, espera-seque esse cenário tenha uma leve melhora em 2017. Source: Pine Bank, December 2017 Guidance Investor Relations| 4Q17 | 17/36 Brazil: Key Economic Indicators - PINE INDICATORS 2012 2013 2014 2015 2016E 2017E 2018E 2019E Real GDP growth rate (%) 1.9% 3.0% 0.5% -3.5% -3.5% 1.0% 2.5% 3.5% BRLUSD (eop) 2.04 2.34 2.66 3.90 3.26 3.31 3.18 2.98 BRLUSD (average) 1.95 2.16 2.35 3.34 3.48 3.19 3.26 3.08 IPCA (CPI) 5.8% 5.9% 6.4% 10.7% 6.3% 2.9% 3.8% 4.3% IGP-M (PPI) 7.8% 5.5% 3.5% 10.5% 7.2% -0.5% 4.2% 5.0% Selic (interest rate, eop) 7.25% 10.00% 11.75% 14.25% 13.75% 7.00% 6.75% 9.00% Selic (interest, average) 8.46% 8.44% 11.02% 13.58% 14.15% 9.83% 6.77% 7.88% Trade balance (USD bn) 19.4 2.6 -3.9 19.7 47.7 67.1 50.0 35.0 Current account (USD bn) -74.2 -74.8 -104.2 -58.9 -23.5 -9.8 -40.0 -55.0 Current account (% GDP) -3.0% -3.0% -4.2% -3.3% -1.3% -0.5% -1.8% -2.0% FDI (US$bn) 87 69 97 74 78.9 70.3 80.0 95.0 Primary surplus (% GDP) 2.2% 1.7% -0.6% -1.9% -2.5% -1.7% -1.0% 0.1% Gross government debt (% GDP) 53.7% 51.5% 56.3% 65.5% 70.0% 74.0% 75.1% 75.9%
  • 18.
    Profile and History BusinessStrategy Corporate Governance Economic Overview Results
  • 19.
    Turnaround 19/36Investor Relations| 4Q17| • Transactions less than R$10 million • Greater penetration in new clients • New products and services • New officers dedicated to companies with revenues less than R$500 million • Evolved our Investment Banking arm Credit Production • Pine Online • Internet Banking to the Corporate segment Continuous Bank Digitalization • Increase in provisions Portfolio Re-assessment • Block Trade • Reached the minimun Free Float requeriment PINE4 • Election of two independent members to the Board of Directors • Election of two technical members to the Audit Committee Corporate Governance
  • 20.
    Accounting Result 20/36Investor Relations|4Q17 | R$ '000 Corporate Portfolio Consolidated Portfolio Gross income from financial intermediation 55,210 (7,459) 47,751 - - - Provision for loan losses (1,329) 10,084 8,755 Gross income from financial intermediation after loan losses 53,881 2,625 56,506 - - - Fee income 21,232 772 22,004 Personnel expenses (18,097) (4,768) (22,865) Other administrative expenses (17,354) (8,794) (26,148) Tax expenses (4,312) - (4,312) Other operating income (expenses) (3,726) (13,529) (17,255) Operating income 31,624 (23,694) 7,930 - - - Non-operating income 2,010 1,424 3,434 Income before taxes and profit sharing 33,634 (22,270) 11,364 - - - Income tax and social contribution (15,267) 10,296 (4,971) Profit sharing (3,772) (609) (4,381) Net result 14,595 (12,583) 2,012 Monitored Portfolio
  • 21.
    Financial Margin Breakdown– Corporate and Monitored Portfolio Consolidated Margin NIM 21/36Investor Relations| 4Q17 | R$ million Corporate Portfolio Monitored Portfolio Total Income from financial intermediation - exorvehedge (A) 55 (7) 48 Managerial Income from financial intermediation - ex orvehedge (C)¹ 45 (7) 38 Average earning assets (B) 5,070 816 5,886 Financial Margin before provision (%) (A/B) 4.4% -3.6% 3.3% Managerial Financial Margin before provision (%) (C/B) 3.6% -3.6% 2.6% ¹ Ex-income from the valuation of assets taken as collateral and marked at maket value R$ million 4Q17 3Q17 4Q16 2017 2016 Financial Margin Income from financial intermediation 43 (26) 17 110 172 Overhedge effect 5 (10) (3) (9) (65) Securities's MtM effect (10) 61 - 51 - Managerial income from financial intermediation 38 26 14 151 106 Average earning assets 1 5,886 5,930 5,703 5,701 6,143 Managerial Financial Margin before provision (%) 2.6% 1.8% 1.0% 2.7% 1.7% 1 Excludes repo transactions and the liability portion of derivatives and term sale of non-operating assets.
  • 22.
    Personnel and AdministrativeExpenses - Corporate and Monitored Portfolio Consolidated Efficiency Ratio Efficiency Ratio 22/36Investor Relations| 4Q17 | R$ million 4Q17 3Q17 4Q16 2017 2016 Operating expenses1 53 53 44 195 170 (-) Non-recurring expenses (2) (4) - (6) - Recurring Operating Expenses (A) 51 49 44 189 170 Revenues 2 (B) 60 45 36 232 178 Efficiency Ratio (A/B) 86.0% 110.1% 124.1% 81.3% 95.1% 1 Other administrative expenses + tax expenses + personnel expenses 2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect Operating expenses 40 14 53 (-) Non-recurring expenses (2) - (2) Recurring Operating Expenses (A) 38 14 51 Revenues (B) 76 (7) 70 Managerial Revenues (C)¹ 66 (7) 60 Efficiency Ratio (A/B) 49.4% - 73.6% Managerial Efficiency Ratio (A/C) 56.9% - 86.0% ¹ Ex-income from the valuation of assets taken as collateral and marked at maket value R$ million Corporate Portfolio Monitored portfolio Total
  • 23.
    Client Notional Derivativesby Market Market Segments Investor Relations | 4Q17 | 23/36 Solid trackrecord Sales Desk Notional Value and MtM Portfolio Profile  Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar  Commodities: Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy  Fixed income: Fixed, Floating, Inflation, Libor  Duration: 162 days  MtM: R$56 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%):  Stressed MtM: R$50 million Commodities 5% Fixed Income 5% Currencies 90%
  • 24.
    Investor Relations| 4Q17| 24/36 Pine Investimentos Selected Transactions  Capital Markets: Structuring and Distribution of Fixed Income Transactions.  Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions. March, 2017 CRI R$ 47,000,000 Lead Coordinator March, 2017 Structure Credit Facility R$ 90,000,000 Lead Coordinator May, 2017 R$ 60,000,000 Bond May, 2017 Promissory Note R$ 40,000,000 Lead Coordinator May, 2017 BRDE Bank Guarantee R$ 10,000,000 October, 2017 R$ 22,000,000 Lead Coordinator December, 2017 Bond R$ 60,000,000 Coordinator December, 2017 Structure Credit Facility R$ 32,000,000 Structure Credit Facility December, 2017 R$ 32,000,000 Lead Coordinator Coordinator Structure Credit Facility
  • 25.
    Investor Relations| 4Q17| 25/36 ¹ Includes Standby LC ² Includes receivables on purchase of assets. Expanded Loan Portfolio 2,975 3,203 3,331 3,356 3,360 437 370 298 319 314419 399 388 313 278 2,120 2,022 2,123 1,934 1,903 493 470 442 395 309 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Securities: 5% Bank Guarantees: 30.9% Trade finance: 4.5% BNDES Onlending : 5.1% Working Capital: 54.5% 6,445 6,465 6,582 6,318 6,163 1 2 R$ million
  • 26.
    Investor Relations| 4Q17| 26/36 Loan Portfolio Breakdown Breakdown – Corporate and Monitored Portfolio Non Performing Loans > 90 days (Total Contract)¹ ¹ Includes securities and ex-bank guarantees and stand by LC Evolution per portfolio R$ million Volume % Volume % Volume % Working capital¹ 2,700 44% 660 11% 3,360 55% Onlendings 311 5% 3 0% 314 5% Trade finance² 240 4% 38 1% 278 5% Res. 2.682 Loan Portfolio 3,250 53% 701 11% 3,952 64% Bank guarantees 1,862 30% 40 1% 1,903 31% Securities 194 3% 115 2% 309 5% Expanded Loan Portfolio 5,306 86% 857 14% 6,163 100% 1 Includes receivables on purchase of assets 2 Includes Standby LC Corporate Portfolio Monitored Portfolio Consolidated Portfolio 4.1%4.2% 3.7% 0.7%0.6% 1.5%1.3% 0.7% 1.7% Dec-17Sept-17Jun-17Mar-17Dec-16Sept-16Jun-16Mar-16Dec-15 3Q17 4Q17 Δ 3Q17 4Q17 Δ 348 357 9 Active Groups 24 26 2 5,450 5,306 -2.6% Risk Volume (R$ million) 868 857 -1.3% 15.7 14.9 -5.3% Average Ticket (R$ million) 36.2 33.0 -8.9% Corporate Portfolio Monitored Portfolio
  • 27.
    Ratings Sectors Investor Relations|4Q17 | 27/36 Credit Production 18,613 18,062 17,907 17,694 16,981 16,134 335 359 361 372 372 382 300 350 400 450 500 550 600 650 700 750 800 14,500 15,000 15,500 16,000 16,500 17,000 17,500 18,000 18,500 19,000 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Average Ticket (R$ '000) Active Groups Average Ticket and Active Groups  365 new operations  Total amount of R$3.4 billions  Average Ticket of approximately R$9 million  + 15% increase in our active clients base AA-B 74% C 26% Agriculture 17% Energy 15% Sugar and Ethanol 15% Real Estate 8% Transportation and 8% Chemical and petrochemical 6% Foreign Trade 6% Engineering 5% Others 20% Production since 3Q16
  • 28.
    Investor Relations| 4Q17| 28/36 Funding 460 464 446 461 376 384 460 421 344 367 2,980 3,241 3,893 3,988 4,192 46 72 114 116 103 17 11 27 19 14 454 383 331 332 365 213 240 203 273 168 247 203 176 153 129 204 86 89 91 0 448 386 403 334 295 239 150 178 142 915,692 5,697 6,280 6,252 6,101 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Trade Finance: 1.5% Multilateral Lines: 4.8% International Capital Markets: 0% Financial Letter : 2.1% Local Capital Markets: 2.8% Onlending: 6% Demand Deposits: 0.2% Interbank Time Deposits: 1.7% High Net Worth Individual Time Deposits: 68.7% Corporate Time Deposits: 6% Institutional Time Deposits: 6.2% R$ million
  • 29.
    Investor Relations| 4Q17| 29/36  Pine launched its digital investment platform, Pine Online  Products: CDBs, LCAs and LCIs  App: IOS and Android  The Bank's five largest funding channels PINE ONLINE
  • 30.
    Cash Position Total Depositsover Total Funding Capital Adequacy Ratio (BIS), Basel III Investor Relations| 4Q17 | 30/36 Capital & Liability Management 6,2805,692 5,697 6,252 6,101 15.0% 14.7% 14.2% 11.9% 12.1% 0.4% 0.4% 0.4% 0.5% 0.4% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Tier II Tier I 12.4%12.4% 14.6% 15.1%15.4% R$ million
  • 31.
    Investor Relations| 4Q17| 31/36 Ratings Foreign andLocal Currency Long Term B- B+ National Long Term BB- BBB+
  • 32.
    Balanço PatrimonialBalance Sheet InvestorRelations| 4Q17 | 32/36 R$ million Dec-17 Sept-17 Dec-16 QoQ (%) YoY (%) Assets 8,601 9,039 8,150 -4.8% 5.5% Cash 167 149 77 12.0% 116.2% Interbank investments 1,242 903 587 37.6% 111.6% Securities 2,514 3,203 2,745 -21.5% -8.4% Interbank accounts 1 1 1 -0.5% -12.5% Lending operations 3,952 3,989 3,830 -0.9% 3.2% (-) Provisions for loan losses (580) (597) (227) 3.0% -155.7% Net lending operations 3,372 3,392 3,603 -0.6% -6.4% Other receivables 1,195 1,282 1,019 -6.8% 17.2% Property and equipments 110 110 118 0.2% -6.4% Investments 108 108 108 0.0% 0.0% Property and equipment in use 2 2 10 13.8% -76.8% Intangible 0 0 0 -1.3% -14.4% Liabilities 7,692 8,123 7,002 -5.3% 9.9% Deposits 3,901 3,813 2,598 2.3% 50.1% Money market funding 398 561 484 -29.1% -17.8% Funds from acceptance and securities issued 1,241 1,319 1,571 -5.9% -21.0% Interbank and Interbranch accounts 7 16 4 -57.9% 87.4% Borrowings and onlendings 751 807 1,141 -7.0% -34.2% Derivative financial instruments 1,152 1,295 866 -11.0% 33.1% Other liabilities 153 214 254 -28.7% -39.8% Deferred Results 90 97 84 -7.1% 7.0% Shareholders' equity 908 915 1,148 -0.8% -20.9% Liabilities and shareholders' equity 8,601 9,039 8,150 -4.8% 5.5%
  • 33.
    Managerial Income Statement (overhedgeeffect) Investor Relations| 4Q17 | 33/36 R$ million 4Q17 3Q17 4Q16 2017 2016 Income from financial intermediation 213 93 208 722 609 Lending transactions 113 102 101 464 453 Securities transactions 76 10 76 233 331 Derivative financial instruments (0) (2) 15 21 (112) Foreign exchange transactions 25 (18) 15 4 (63) Expenses with financial intermediation (157) (445) (205) (997) (590) Funding transactions (133) (140) (163) (569) (554) Borrowings and onlendings (33) 12 (32) (53) 52 Provision for loan losses 9 (317) (11) (375) (88) Gross income from financial intermediation 57 (352) 3 (275) 19 Other operating (expenses) income (49) (54) (19) (155) (90) Fee income 22 19 22 81 72 Personnel expenses (23) (23) (22) (89) (85) Other administrative expenses (26) (26) (18) (89) (67) Tax expenses (4) (4) (4) (17) (19) Other operating income 6 4 8 51 36 Other operating expenses (24) (24) (5) (92) (29) Operating income 8 (406) (16) (430) (72) Non-operating income 3 2 4 9 19 Income before taxes and profit sharing 11 (403) (12) (422) (53) Income tax and social contribution (5) 164 6 178 53 Profit sharing (4) (4) (4) (19) (15) Net income 2 (244) (9) (263) (14)
  • 34.
    Income Statement Investor Relations|4Q17 | 34/36 R$ million 4Q17 3Q17 4Q16 2017 2016 Income from financial intermediation 208 102 211 731 674 Lending transactions 113 102 101 464 453 Securities transactions 76 10 76 233 331 Derivative financial instruments (5) 8 18 31 (47) Foreign exchange transactions 25 (18) 15 4 (63) Expenses with financial intermediation (157) (445) (205) (997) (590) Funding transactions (133) (140) (163) (569) (554) Borrowings and onlendings (33) 12 (32) (53) 52 Provision for loan losses 9 (317) (11) (375) (88) Gross income from financial intermediation 51 (342) 6 (266) 84 Other operating (expenses) income (49) (54) (19) (155) (90) Fee income 22 19 22 81 72 Personnel expenses (23) (23) (22) (89) (85) Other administrative expenses (26) (26) (18) (89) (67) Tax expenses (4) (4) (4) (17) (19) Other operating income 6 4 8 51 36 Other operating expenses (24) (24) (5) (92) (29) Operating income 3 (396) (13) (421) (6) Non-operating income 3 2 4 9 19 Income before taxes and profit sharing 6 (394) (9) (413) 13 Income tax and social contribution 0 154 3 169 (12) Profit sharing (4) (4) (4) (19) (15) Net income 2 (244) (9) (263) (14)
  • 35.
    This report maycontain 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. Norberto Zaiet Junior CEO João Brito CFO Raquel Varela Bastos Head of Investor Relations, Local Funding and Communication Luiz Maximo Investor Relations Manager Kianne Paganini Investor Relations Analyst Fone: (55 11) 3372-5343 ir.pine.com ir@pine.com Investor Relations Investor Relations| 4Q17 | 35/36