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Institutional presentation 4Q15

The document provides an overview of Pine's business for 4Q15, including: - A history of Pine since 1997 and profile of its focus on corporate clients. - An overview of its three primary business lines: corporate credit, FICC (financial instruments), and Pine Investimentos (capital markets). - Highlights of its financial results for 4Q15, including a 7.4% decrease in total funding and a 1.5% decrease in shareholders' equity from the prior quarter. Revenue contributions came from all business lines, and expenses declined 12.6% year-over-year through cost controls.

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4Q15 Institutional Presentation
2/34Investor Relations | 4Q15 |  Profile and History  Pine  History  Business Strategy  Competitive Landscape  Focus Always on the Client  Corporate Credit  FICC  Pine Investimentos  Highlights and Results  Corporate Governance  Corporate Governance  Social Investment and Responsibility Summary
Profile and History
4/34Investor Relations | 4Q15 | Over R$2 billion 35% R$500 million to R$2 billion 35% Up to R$500 million 30% Pine Specialized in providing financial solutions for corporate clients… Credit Portfolio by Annual Client Revenues Profile  Focused on establishing long-term relationships  Profound knowledge and product penetration  Business is structured along three primary business lines:  Corporate Credit: credit and financing products  FICC: instruments for hedging and risk management  Pine Investimentos: Capital Markets, Financial Advisory, Project & Structured Finance and Research December 31st, 2015
5/34Investor Relations | 4Q15 | 155 184 222 341 521 620 755 663 761 1.214 2.854 3.108 4.195 5.763 6.963 7.911 9.920 9.826 6.933 18 62 121 126 140 136 152 171 209 335 801 827 825 867 1.015 1.220 1.272 1.256 1.163 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Corporate Credit Portfolio (R$ Million) Shareholders' Equity (R$ Million) ...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 Devaluati- on of the real Nasdaq Sept. 11 Brazilian Elections (Lula) SubprimeRussian 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, 2015 18 years
Business Strategy
7/34Investor Relations | 4Q15 | 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
8/34Investor Relations | 4Q15 | Focus Always on the Client Products tailored to meet the needs of each individual client. In addition to the headquarters located in the city of São Paulo, Pine has 6 branches throughout Brazil, in the States of Mato Grosso, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, and São Paulo. The origination network also counts with a Cayman Branch.
9/34Investor Relations | 4Q15 | 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 Risk Officer  Chief Financial 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 10 branches divided into 14 origination platforms in Brazil’s major economic centers  Pine has approximentely 25 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 Discussion on sizing, collateral, structure etc.
10/34Investor Relations | 4Q15 | 7,703 7,482 7,948 3,270 4,941 221 349 366 560 479 (365 ) (103 ) 33 894 160 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Notional Amount MtM Stressed MtM Commodities 11% Fixed Income 8% Currencies 81% December 31st, 2015  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 R$ million FICC Solid trackrecord. Client Notional Derivatives by Market Market Segments Notional Value and MtM Portfolio Profile Scenario on December 31st, 2015:  Duration: 281 days  Mark-to-Market: R$479 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%):  Stressed MtM : R$160 million
11/34Investor Relations | 4Q15 | R$25,000,000 October, 2015 Promissory note Lead Coordinator July, 2015 Project Finance R$104,000,000 Coordinator September, 2015 Infratructure Debentures Lead Coordinator R$10,300,000 5 1 3Q15 4Q15 14 12 2014 2015 R$ million Pine Investimentos Fee Generation Selected Transactions  Capital Markets: Structuring and Distribution of Fixed Income Transactions.  Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions.  Research: Macro and Commodities. December, 2015 CRI R$21,300,000 Lead Coordinator December, 2015 Bridge Loan R$18,000,000 Coordinator July, 2015 Project Finance R$78,000,000 Coordinator September, 2015 Debentures Coordinator R$500,000,000 R$20,000,000 June, 2015 CRI Lead Coordinator Lead Coordinator October, 2015 Project Finance R$7,500,000
Highlights and Results
13/34Investor Relations | 4Q15 | Highlights  Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 53% of time deposits.  Excess capital, with a BIS ratio of 15.0%, being 14.1% in Tier I Capital.  Loan portfolio coverage ratio above 5% as a result of a significant increase in provisions.  Relevant improvement in the operating income results QoQ.  Retraction of 12.6% in personnel and administrative expenses, even in an inflationary scenario.  Deleverage of the loan portfolio given the continuous worsening of the economic scenario.  Continuous liability management with a diversified portfolio and adequate terms.
14/34Investor Relations | 4Q15 | 3.5% 3.6% 3Q15 4Q15 11 bps 7.5% 3.4% 2014 2015 -410 bps 1,256 1,181 1,163 Dec-14 Sept-15 Dec-15 Shareholders' Equity -1.5% -7.4% 8,500 7,409 6,859 Dec-14 Sept-15 Dec-15 Total Funding -7.4% -19.3% 9,826 7,691 6,933 Dec-14 Sept-15 Dec-15 Total Loan Portfolio1 -9.9% -29.4% 7,409 6,859 Sept-15 Dec-15 Total Funding -7.4% 7,691 6,933 Sept-15 Dec-15 Total Loan Portfolio 1 -9.9% 1,181 1,163 Sept-15 Dec-15 Shareholders' Equity -1.5% 3.5% 3.6% 3Q15 4Q15 ROAE 0.1 p.p 2.9% 3.2% 3Q15 4Q15 NIM Evolution 0.33 p.p. 10 10 3Q15 4Q15 Net Income Financial Highlights 1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares) R$ million The main performance indicators were within expectations in the period… 10 10 3Q15 4Q15 2.9% 3.2% 3Q15 4Q15 33 bps 94 41 2014 2015 -56.5% 4.3% 3.4% 2014 2015 -95 bps
15/34Investor Relations | 4Q15 | Credit 61.4% Bank Guarantees 17.7% FICC 14.5% Pine Investimentos 3.8% Treasury 2.6% 2015 Credit 63.2%Bank Guarantees 11.2% FICC 19.4% Pine Investimentos 3.3% Treasury 2.9% 2014 Revenue Mix Participations by Business  Flat credit revenue, in line with the conservative strategy adopted by the Bank;  Lower volume of transactions in the FICC Business  Pine Investimentos remains active in structuring operations. Product and Revenue Diversification ...with contributions from all business lines.
16/34Investor Relations | 4Q15 | R$ million 4Q15 3Q15 4Q14 2015 2014 Financial Margin Income from financial intermediation 73 1 83 207 380 Overhedge effect (15) 55 10 64 9 Income from financial intermediation 58 56 93 272 389 2.9% 3.2% 3Q15 4Q15 33 bps 4.3% 3.4% 2014 2015 -95 bps Net Interest Margin NIM Evolution Main Impacts NIM Breakdown  Lower revenue contribution from FICC;  Mark to market of securities and derivatives according to 4.277 Resolution of the Central Bank of Brazil;  Pre-payment of the FIDC senior quotas; and  Higher level of cash as a proportion of assets during the year.
17/34Investor Relations | 4Q15 | Expenses and Efficiency Ratio Personnel and Administrative Expenses Expenses and Efficiency Ratio Rigorous cost control. 27 22 23 22 20 19 42.2% 50.6% 60.0% -100% -80% -60% -40% -20% 00% 20% 40% 60% 0 5 10 15 20 25 30 35 40 45 50 4Q14 3Q15 4Q15 97 8990 74 38.7% 47.5% -100% -80% -60% -40% -20% 00% 20% 40% 60% 0 20 40 60 80 100 120 140 2014 2015 Personnel Expenses Other administrative expenses Recurring Efficiency Ratio (%) R$ million 4Q15 3Q15 QoQ 4Q14 YoY 2015 2014 YoY Personnel expenses 23 22 7.5% 27 -12.1% 89 97 -7.4% Other administrative expenses 19 20 -5.7% 22 -14.1% 74 90 -18.1% Subtotal 42 42 1.2% 49 -13.0% 163 187 -12.6% Non-recurring expenses (4) (4) 6.5% (3) 37.4% (11) (12) -5.7% Total 38 38 0.7% 47 -18.0% 152 174 -12.5% Employees1 361 375 -3.7% 409 -11.7% 361 409 -11.7% 1 Including outsourced ones
18/34Investor Relations | 4Q15 | 5,050 5,093 4,904 4,731 4,730 4,440 4,066 3,650 3,282 1,068 1,103 1,071 1,248 1,302 1,118 1,074 924 794 2,909 2,905 2,941 2,896 2,969 3,191 2,896 2,492 2,373 903 989 1,116 924 826 909 585 626 485 Dez-13 Mar-14 Jun-14 Set-14 Dez-14 Mar-15 Jun-15 Set-15 Dez-15 Trade finance: 7% Fiança: 34.2% Repasses: 11.4% Capital de giro : 47.3% 8,621 7,691 6,933 9,6579,8269,800 10,03210,090 9,930 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 amounted to R$6.9 billion... -29.4% -9.9% 2 7.0% 1
19/34Investor Relations | 4Q15 | 36%40%40%39% 6% 6%5%5% 10% 8%9%7% 10%10%9%9% 12%12%14% 12% 13%14%14% 15% 13%10%9%13% Dec-15Dec-14Dec-13Dec-12 Energy Sugar and Ethanol Real Estate Agriculture Engineering Transportation and Logistics Others Continuous Loan Portfolio Management Sectors Rebalance ...with improved sector diversification.  The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;  The share of wallet of the 20 largest clients remained at around 30%, in line with market peers. Energy 13% Sugar and Ethanol 13% Real Estate 12% Agriculture 10%Engineering 10% Transportation and Logistics 6% Telecom 4% Foreign Trade 3% Metallurgy 3% Retail 3% Vehicles and Parts 3% Chemicals 3% Specialized Services 3% Construction Material 2% Meatpacking 2% Food Industry 1% Other 9%
20/34Investor Relations | 4Q15 | Wind Power 72% UTE 1% Distributors 8% Transmitting 9% Equip. Supplier 6% SHPs UHEs 4% Guarantees 62% Working Capital 28% BNDES Onlending 10% Working Capital 80% Guarantees 20% Residential Lots 43% Residential 34% Warehouse 12% Mall 9% Commercial 2% Main Sectors Energy| Sugar and Ethanol | Real Estate Energy (13%) Sugar and Ethanol(13%) Real State (12%) Exposure by Product Exposure by Segment Exposure by Product Exposure by State Exposure by Product Exposure by Segment Working Capital 51% Guarantees 32% BNDES Onlending 11% Trade Finance 7% SP 68% MG 22% PR 8% GO 2%
21/34Investor Relations | 4Q15 | Concession 34% Transporta -tion 33% Industrial 27% Oil and Gas 5% Energy 2% Working Capital 83% Guarantees 14% BNDES Onlending 3% Working Capital 74% BNDES Onlending 13% Trade Finance 11% Guarantees 1% MT 33% SP 31% BA 11% PR 9% MG 8% Others 8% Main Sectors Agriculture| Engineering Agriculture (10%) Engineering (10%) Exposure by Product Exposure by Product Exposure by SegmentExposure by State
22/34Investor Relations | 4Q15 | 5.0% 7.7% 9.3% 2.9% 4.1% 5.1% 00% 02% 04% 06% 08% 10% 12% 00% 01% 02% 03% 04% 05% 06% 07% 08% 09% 10% Dec-14 Sept-15 Dec-15 D-H Portfolio Coverage of Total Portfolio Coverage of D-H Overdue Portfolio 162% 127% 80% 50.0% 250.0% 450.0% 650.0% AA-A 35.2% B 28.9% C 26.6% D-E 4.5% F-H 4.8% Products Pledge 40% Receivables 16% Properties Pledge 42% Investments 3% December 31st, 2015 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 2Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio Loan Portfolio Quality 90.7% of the loan portfolio is classified between AA-C ratings. Loan Portfolio Quality – Res. 2,682 Credit Coverage Non Performing Loans > 90 days (Total Contract) Collaterals 1 2 3 0.1% 0.7% 0.3% 0.3% 0.1% 2.1% 1.8% 1.2% 1.7% Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15
23/34Investor Relations | 4Q15 | 2,175 2,314 2,271 1,905 1,720 1,209 951 853 841 1,112 1,022 761 731 545 361 291 343 324 475 659 908 920 1,122 1,273 1,322 1,321 1,570 90 76 80 98 69 157 197 359 336 23 27 41 30 27 24 18 33 18 1,141 1,174 1,086 1,292 1,333 1,161 1,091 952 806 632 582 594 709 635 509 476 207 295 792 833 508 892 747 796 787 764 751 459 434 427 323 347 338 318 318 279 113 364 346 388 687 837 819 1,022 1,029 500 478 473 531 430 773 735 545 113 871 834 1,064 819 839 929 605 692 497 8,367 7,611 7,409 6,859 8,383 8,797 8,559 8,638 8,500 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept Dec-15 Trade Finance: 7.2% Private Placements: 1.7% Multilateral Lines: 15% International Capital Markets: 4.1% Financial Letter : 10.9% Local Capital Markets: 4.3% Onlending: 11.8% Demand Deposits: 0.3% Interbank Time Deposits: 4.9% High Net Worth Individual Time Deposits: 22.9% Corporate Time Deposits: 4.7% Institutional Time Deposits: 12.3% R$ million Funding Diversified sources of funding... 58% 48% 48% 47%41% 41%41% 35% 53% Cash over Deposits
24/34Investor Relations | 4Q15 | 41% 36% 37% 39% 45% 59% 64% 63% 61% 55% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Total Deposits Others 80% 77% 76% 70% 66% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 7.8x 7.8x 7.1x 6.5x 6.0x 5.4x 5.2x 4.7x 4.4x 3.9x - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Expanded loan Porfolio Loan Portfolio excluding Bank Guarantees 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 ... matching assets’ and liabilities’ duration. Leverage Credit over Funding Ratio Total Deposits over Total Funding R$ millionmonths 6,8598,367 7,564 7,4098,500 Asset and Liability Management (ALM) 1.2 0.3 5.5 0.0 1.3 0.5 Obrigações por operações com compromisso derecompra (REPO) Financiamentoatravés de títulos e valores mobiliários Depósitos à vista Financiamentopor depósitos, títulos emitidos,empréstimos erepasses Outras Obrigações PL Assets 0.1 0.9 4.1 2.7 0.5 0.6 Disponibilidades e Equivalentes Ativos vinculados a compromissos de recompra (REPO) Ativos Financeiros Carteira de Crédito Outros Ativos Ativos Ilíquidos Liabilities 8.9 8.9 Equity Demand deposits REPO financing Secured funding Unsecured funding Other liabilities Other assets Illiquid assets Credit Portfolio Trading portfolio assets Assets financed through REPOs Cash and cash equivalents Coverage of 134%
25/34Investor Relations | 4Q15 | 12.4% 12.2% 12.3% 12.2% 14.1% 1.4% 0.8% 0.8% 0.9% 0.9% 13.9% 13.0% 13.1% 13.1% 15.0% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Tier II Tier I Minimum Regulatory Capital (11%) Capital Adequacy Ratio (BIS), Basel III BIS ratio reached 15.0%, due to the deleveraging of the Loan Portfolio
26/34Investor Relations | 4Q15 | Rating Long term BB BB Ba3 - Short Term B B - - Long term brA+ A+(bra) A3.br Short Term - F1+(bra) Br-2 LocalCurrency AndForeignCurrency National 9,67
27/34Investor Relations | 4Q15 | R$ million Dec-15 Sept-15 Dec-14 Assets 8,860 9,920 10,447 Cash 93 123 180 Interbank investments 505 445 243 Securities 3,159 3,451 3,005 Interbank accounts 1 1 1 Lending operations 4,121 4,775 6,313 (-) Provisions for loan losses (210) (198) (186) Net lending operations 3,910 4,577 6,127 Other receivables 1,073 1,310 872 Property and equipments 120 13 20 Investments 108 - - Property and equipment in use 11 12 19 Intangible 1 1 1 Liabilities 7,697 8,739 9,191 Deposits 1,970 1,846 2,314 Money market funding 500 756 169 Funds from acceptance and securities issued 2,070 2,036 2,043 Interbank and Interbranch accounts 8 13 1 Borrowings and onlendings 2,283 3,040 3,174 Derivative financial instruments 281 264 265 Other liabilities 507 719 1,139 Deferred Results 78 65 85 Shareholders' equity 1,163 1,181 1,256 Liabilities and shareholders' equity 8,860 9,920 10,447 Balance Sheet
28/34Investor Relations | 4Q15 | R$ million 4Q15 3Q15 2Q15 1Q15 4Q14 2015 2014 Income from financial intermediation 215 758 180 633 402 1,785 1,359 Lending transactions 146 178 176 201 198 701 781 Securities transactions 93 81 83 68 79 325 324 Derivative financial instruments (18) 488 (64) 285 107 691 209 Foreign exchange transactions (7) 11 (14) 79 19 68 45 Expenses with financial intermediation (183) (758) (153) (600) (363) (1,693) (1,088) Funding transactions (163) (322) (134) (257) (201) (876) (689) Borrowings and onlendings 6 (380) 24 (288) (108) (638) (282) Provision for loan losses (26) (56) (42) (55) (54) (180) (117) Gross income from financial intermediation 32 (0) 27 33 39 92 271 Other operating (expenses) income (37) (53) (34) (34) (43) (158) (152) Fee income 18 26 25 21 23 90 93 Personnel expenses (23) (22) (22) (23) (27) (89) (97) Other administrative expenses (19) (20) (17) (18) (22) (74) (90) Tax expenses (6) (2) (10) (4) (3) (23) (11) Other operating income 2 2 1 11 4 16 25 Other operating expenses (7) (36) (12) (22) (17) (78) (71) Operating income (5) (53) (7) (1) (3) (66) 120 Non-operating income 3 (1) 1 4 (1) 8 15 Income before taxes and profit sharing (2) (53) (6) 3 (4) (59) 135 Income tax and social contribution 22 73 17 20 15 133 0 Profit sharing (9) (10) (2) (13) (6) (33) (41) Net income 10 10 10 10 5 41 94 Managerial Income Statement (overhedge effect and provisions reclassified)
29/34Investor Relations | 4Q15 | R$ million 4Q15 3Q15 4Q14 2015 2014 Income from financial intermediation 230 703 392 1,721 1,350 Lending transactions 146 178 198 701 781 Securities transactions 93 81 79 325 324 Derivative financial instruments (3) 433 96 627 200 Foreign exchange transactions (7) 11 19 68 45 Expenses with financial intermediation (183) (758) (363) (1,627) (1,028) Funding transactions (163) (322) (201) (876) (689) Borrowings and onlendings 6 (380) (108) (638) (282) Provision for loan losses (26) (56) (54) (113) (58) Gross income from financial intermediation 46 (55) 29 94 322 Other operating (expenses) income (37) (53) (43) (225) (211) Fee income 18 26 23 90 93 Personnel expenses (23) (22) (27) (89) (97) Other administrative expenses (19) (20) (22) (74) (90) Tax expenses (6) (2) (3) (23) (11) Other operating income 2 2 4 16 25 Other operating expenses (7) (36) (17) (145) (131) Operating income 10 (108) (14) (131) 111 Non-operating income 3 (1) (1) 8 15 Income before taxes and profit sharing 12 (108) (15) (123) 126 Income tax and social contribution 7 128 25 197 9 Profit sharing (9) (10) (6) (33) (41) Net income 10 10 5 41 94 Income Statement
30/34Investor Relations | 4Q15 | Guidance 2016 Expanded Loan Portfolio -5% to 0% NIM 3% to 4% Personnel and Administratve Expenses -10% to -5% ROAE 4% to 8% Guidance 2016 Pine GDP (E) 2016: -3.5%
Corporate Governance
32/34Investor Relations | 4Q15 | Corporate Governance Pine is committed to best corporate governance practices  Two Independent Members and one External Member on the Board of Directors  Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990  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
33/34Investor Relations | 4Q15 | 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.
34/34Investor Relations | 4Q15 | 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. Investor Relations Noberto N. Pinheiro Junior CEO João Brito CFO Raquel Varela Bastos Head of Investor Relations, Funding & Distribution, Marketing & Press Luiz Maximo Investor Relations Coordinator Gabriel Netto Investor Relations Analyst Phone: (55 11) 3372-5343 ir.pine.com ir@pine.com

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Institutional presentation 4Q15

  • 1.
  • 2.
    2/34Investor Relations |4Q15 |  Profile and History  Pine  History  Business Strategy  Competitive Landscape  Focus Always on the Client  Corporate Credit  FICC  Pine Investimentos  Highlights and Results  Corporate Governance  Corporate Governance  Social Investment and Responsibility Summary
  • 3.
  • 4.
    4/34Investor Relations |4Q15 | Over R$2 billion 35% R$500 million to R$2 billion 35% Up to R$500 million 30% Pine Specialized in providing financial solutions for corporate clients… Credit Portfolio by Annual Client Revenues Profile  Focused on establishing long-term relationships  Profound knowledge and product penetration  Business is structured along three primary business lines:  Corporate Credit: credit and financing products  FICC: instruments for hedging and risk management  Pine Investimentos: Capital Markets, Financial Advisory, Project & Structured Finance and Research December 31st, 2015
  • 5.
    5/34Investor Relations |4Q15 | 155 184 222 341 521 620 755 663 761 1.214 2.854 3.108 4.195 5.763 6.963 7.911 9.920 9.826 6.933 18 62 121 126 140 136 152 171 209 335 801 827 825 867 1.015 1.220 1.272 1.256 1.163 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Corporate Credit Portfolio (R$ Million) Shareholders' Equity (R$ Million) ...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 Devaluati- on of the real Nasdaq Sept. 11 Brazilian Elections (Lula) SubprimeRussian 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, 2015 18 years
  • 6.
  • 7.
    7/34Investor Relations |4Q15 | 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.
    8/34Investor Relations |4Q15 | Focus Always on the Client Products tailored to meet the needs of each individual client. In addition to the headquarters located in the city of São Paulo, Pine has 6 branches throughout Brazil, in the States of Mato Grosso, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, and São Paulo. The origination network also counts with a Cayman Branch.
  • 9.
    9/34Investor Relations |4Q15 | 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 Risk Officer  Chief Financial 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 10 branches divided into 14 origination platforms in Brazil’s major economic centers  Pine has approximentely 25 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 Discussion on sizing, collateral, structure etc.
  • 10.
    10/34Investor Relations |4Q15 | 7,703 7,482 7,948 3,270 4,941 221 349 366 560 479 (365 ) (103 ) 33 894 160 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Notional Amount MtM Stressed MtM Commodities 11% Fixed Income 8% Currencies 81% December 31st, 2015  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 R$ million FICC Solid trackrecord. Client Notional Derivatives by Market Market Segments Notional Value and MtM Portfolio Profile Scenario on December 31st, 2015:  Duration: 281 days  Mark-to-Market: R$479 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%):  Stressed MtM : R$160 million
  • 11.
    11/34Investor Relations |4Q15 | R$25,000,000 October, 2015 Promissory note Lead Coordinator July, 2015 Project Finance R$104,000,000 Coordinator September, 2015 Infratructure Debentures Lead Coordinator R$10,300,000 5 1 3Q15 4Q15 14 12 2014 2015 R$ million Pine Investimentos Fee Generation Selected Transactions  Capital Markets: Structuring and Distribution of Fixed Income Transactions.  Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions.  Research: Macro and Commodities. December, 2015 CRI R$21,300,000 Lead Coordinator December, 2015 Bridge Loan R$18,000,000 Coordinator July, 2015 Project Finance R$78,000,000 Coordinator September, 2015 Debentures Coordinator R$500,000,000 R$20,000,000 June, 2015 CRI Lead Coordinator Lead Coordinator October, 2015 Project Finance R$7,500,000
  • 12.
  • 13.
    13/34Investor Relations |4Q15 | Highlights  Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 53% of time deposits.  Excess capital, with a BIS ratio of 15.0%, being 14.1% in Tier I Capital.  Loan portfolio coverage ratio above 5% as a result of a significant increase in provisions.  Relevant improvement in the operating income results QoQ.  Retraction of 12.6% in personnel and administrative expenses, even in an inflationary scenario.  Deleverage of the loan portfolio given the continuous worsening of the economic scenario.  Continuous liability management with a diversified portfolio and adequate terms.
  • 14.
    14/34Investor Relations |4Q15 | 3.5% 3.6% 3Q15 4Q15 11 bps 7.5% 3.4% 2014 2015 -410 bps 1,256 1,181 1,163 Dec-14 Sept-15 Dec-15 Shareholders' Equity -1.5% -7.4% 8,500 7,409 6,859 Dec-14 Sept-15 Dec-15 Total Funding -7.4% -19.3% 9,826 7,691 6,933 Dec-14 Sept-15 Dec-15 Total Loan Portfolio1 -9.9% -29.4% 7,409 6,859 Sept-15 Dec-15 Total Funding -7.4% 7,691 6,933 Sept-15 Dec-15 Total Loan Portfolio 1 -9.9% 1,181 1,163 Sept-15 Dec-15 Shareholders' Equity -1.5% 3.5% 3.6% 3Q15 4Q15 ROAE 0.1 p.p 2.9% 3.2% 3Q15 4Q15 NIM Evolution 0.33 p.p. 10 10 3Q15 4Q15 Net Income Financial Highlights 1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares) R$ million The main performance indicators were within expectations in the period… 10 10 3Q15 4Q15 2.9% 3.2% 3Q15 4Q15 33 bps 94 41 2014 2015 -56.5% 4.3% 3.4% 2014 2015 -95 bps
  • 15.
    15/34Investor Relations |4Q15 | Credit 61.4% Bank Guarantees 17.7% FICC 14.5% Pine Investimentos 3.8% Treasury 2.6% 2015 Credit 63.2%Bank Guarantees 11.2% FICC 19.4% Pine Investimentos 3.3% Treasury 2.9% 2014 Revenue Mix Participations by Business  Flat credit revenue, in line with the conservative strategy adopted by the Bank;  Lower volume of transactions in the FICC Business  Pine Investimentos remains active in structuring operations. Product and Revenue Diversification ...with contributions from all business lines.
  • 16.
    16/34Investor Relations |4Q15 | R$ million 4Q15 3Q15 4Q14 2015 2014 Financial Margin Income from financial intermediation 73 1 83 207 380 Overhedge effect (15) 55 10 64 9 Income from financial intermediation 58 56 93 272 389 2.9% 3.2% 3Q15 4Q15 33 bps 4.3% 3.4% 2014 2015 -95 bps Net Interest Margin NIM Evolution Main Impacts NIM Breakdown  Lower revenue contribution from FICC;  Mark to market of securities and derivatives according to 4.277 Resolution of the Central Bank of Brazil;  Pre-payment of the FIDC senior quotas; and  Higher level of cash as a proportion of assets during the year.
  • 17.
    17/34Investor Relations |4Q15 | Expenses and Efficiency Ratio Personnel and Administrative Expenses Expenses and Efficiency Ratio Rigorous cost control. 27 22 23 22 20 19 42.2% 50.6% 60.0% -100% -80% -60% -40% -20% 00% 20% 40% 60% 0 5 10 15 20 25 30 35 40 45 50 4Q14 3Q15 4Q15 97 8990 74 38.7% 47.5% -100% -80% -60% -40% -20% 00% 20% 40% 60% 0 20 40 60 80 100 120 140 2014 2015 Personnel Expenses Other administrative expenses Recurring Efficiency Ratio (%) R$ million 4Q15 3Q15 QoQ 4Q14 YoY 2015 2014 YoY Personnel expenses 23 22 7.5% 27 -12.1% 89 97 -7.4% Other administrative expenses 19 20 -5.7% 22 -14.1% 74 90 -18.1% Subtotal 42 42 1.2% 49 -13.0% 163 187 -12.6% Non-recurring expenses (4) (4) 6.5% (3) 37.4% (11) (12) -5.7% Total 38 38 0.7% 47 -18.0% 152 174 -12.5% Employees1 361 375 -3.7% 409 -11.7% 361 409 -11.7% 1 Including outsourced ones
  • 18.
    18/34Investor Relations |4Q15 | 5,050 5,093 4,904 4,731 4,730 4,440 4,066 3,650 3,282 1,068 1,103 1,071 1,248 1,302 1,118 1,074 924 794 2,909 2,905 2,941 2,896 2,969 3,191 2,896 2,492 2,373 903 989 1,116 924 826 909 585 626 485 Dez-13 Mar-14 Jun-14 Set-14 Dez-14 Mar-15 Jun-15 Set-15 Dez-15 Trade finance: 7% Fiança: 34.2% Repasses: 11.4% Capital de giro : 47.3% 8,621 7,691 6,933 9,6579,8269,800 10,03210,090 9,930 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 amounted to R$6.9 billion... -29.4% -9.9% 2 7.0% 1
  • 19.
    19/34Investor Relations |4Q15 | 36%40%40%39% 6% 6%5%5% 10% 8%9%7% 10%10%9%9% 12%12%14% 12% 13%14%14% 15% 13%10%9%13% Dec-15Dec-14Dec-13Dec-12 Energy Sugar and Ethanol Real Estate Agriculture Engineering Transportation and Logistics Others Continuous Loan Portfolio Management Sectors Rebalance ...with improved sector diversification.  The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;  The share of wallet of the 20 largest clients remained at around 30%, in line with market peers. Energy 13% Sugar and Ethanol 13% Real Estate 12% Agriculture 10%Engineering 10% Transportation and Logistics 6% Telecom 4% Foreign Trade 3% Metallurgy 3% Retail 3% Vehicles and Parts 3% Chemicals 3% Specialized Services 3% Construction Material 2% Meatpacking 2% Food Industry 1% Other 9%
  • 20.
    20/34Investor Relations |4Q15 | Wind Power 72% UTE 1% Distributors 8% Transmitting 9% Equip. Supplier 6% SHPs UHEs 4% Guarantees 62% Working Capital 28% BNDES Onlending 10% Working Capital 80% Guarantees 20% Residential Lots 43% Residential 34% Warehouse 12% Mall 9% Commercial 2% Main Sectors Energy| Sugar and Ethanol | Real Estate Energy (13%) Sugar and Ethanol(13%) Real State (12%) Exposure by Product Exposure by Segment Exposure by Product Exposure by State Exposure by Product Exposure by Segment Working Capital 51% Guarantees 32% BNDES Onlending 11% Trade Finance 7% SP 68% MG 22% PR 8% GO 2%
  • 21.
    21/34Investor Relations |4Q15 | Concession 34% Transporta -tion 33% Industrial 27% Oil and Gas 5% Energy 2% Working Capital 83% Guarantees 14% BNDES Onlending 3% Working Capital 74% BNDES Onlending 13% Trade Finance 11% Guarantees 1% MT 33% SP 31% BA 11% PR 9% MG 8% Others 8% Main Sectors Agriculture| Engineering Agriculture (10%) Engineering (10%) Exposure by Product Exposure by Product Exposure by SegmentExposure by State
  • 22.
    22/34Investor Relations |4Q15 | 5.0% 7.7% 9.3% 2.9% 4.1% 5.1% 00% 02% 04% 06% 08% 10% 12% 00% 01% 02% 03% 04% 05% 06% 07% 08% 09% 10% Dec-14 Sept-15 Dec-15 D-H Portfolio Coverage of Total Portfolio Coverage of D-H Overdue Portfolio 162% 127% 80% 50.0% 250.0% 450.0% 650.0% AA-A 35.2% B 28.9% C 26.6% D-E 4.5% F-H 4.8% Products Pledge 40% Receivables 16% Properties Pledge 42% Investments 3% December 31st, 2015 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 2Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio Loan Portfolio Quality 90.7% of the loan portfolio is classified between AA-C ratings. Loan Portfolio Quality – Res. 2,682 Credit Coverage Non Performing Loans > 90 days (Total Contract) Collaterals 1 2 3 0.1% 0.7% 0.3% 0.3% 0.1% 2.1% 1.8% 1.2% 1.7% Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15
  • 23.
    23/34Investor Relations |4Q15 | 2,175 2,314 2,271 1,905 1,720 1,209 951 853 841 1,112 1,022 761 731 545 361 291 343 324 475 659 908 920 1,122 1,273 1,322 1,321 1,570 90 76 80 98 69 157 197 359 336 23 27 41 30 27 24 18 33 18 1,141 1,174 1,086 1,292 1,333 1,161 1,091 952 806 632 582 594 709 635 509 476 207 295 792 833 508 892 747 796 787 764 751 459 434 427 323 347 338 318 318 279 113 364 346 388 687 837 819 1,022 1,029 500 478 473 531 430 773 735 545 113 871 834 1,064 819 839 929 605 692 497 8,367 7,611 7,409 6,859 8,383 8,797 8,559 8,638 8,500 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept Dec-15 Trade Finance: 7.2% Private Placements: 1.7% Multilateral Lines: 15% International Capital Markets: 4.1% Financial Letter : 10.9% Local Capital Markets: 4.3% Onlending: 11.8% Demand Deposits: 0.3% Interbank Time Deposits: 4.9% High Net Worth Individual Time Deposits: 22.9% Corporate Time Deposits: 4.7% Institutional Time Deposits: 12.3% R$ million Funding Diversified sources of funding... 58% 48% 48% 47%41% 41%41% 35% 53% Cash over Deposits
  • 24.
    24/34Investor Relations |4Q15 | 41% 36% 37% 39% 45% 59% 64% 63% 61% 55% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Total Deposits Others 80% 77% 76% 70% 66% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 7.8x 7.8x 7.1x 6.5x 6.0x 5.4x 5.2x 4.7x 4.4x 3.9x - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Expanded loan Porfolio Loan Portfolio excluding Bank Guarantees 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 ... matching assets’ and liabilities’ duration. Leverage Credit over Funding Ratio Total Deposits over Total Funding R$ millionmonths 6,8598,367 7,564 7,4098,500 Asset and Liability Management (ALM) 1.2 0.3 5.5 0.0 1.3 0.5 Obrigações por operações com compromisso derecompra (REPO) Financiamentoatravés de títulos e valores mobiliários Depósitos à vista Financiamentopor depósitos, títulos emitidos,empréstimos erepasses Outras Obrigações PL Assets 0.1 0.9 4.1 2.7 0.5 0.6 Disponibilidades e Equivalentes Ativos vinculados a compromissos de recompra (REPO) Ativos Financeiros Carteira de Crédito Outros Ativos Ativos Ilíquidos Liabilities 8.9 8.9 Equity Demand deposits REPO financing Secured funding Unsecured funding Other liabilities Other assets Illiquid assets Credit Portfolio Trading portfolio assets Assets financed through REPOs Cash and cash equivalents Coverage of 134%
  • 25.
    25/34Investor Relations |4Q15 | 12.4% 12.2% 12.3% 12.2% 14.1% 1.4% 0.8% 0.8% 0.9% 0.9% 13.9% 13.0% 13.1% 13.1% 15.0% Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Tier II Tier I Minimum Regulatory Capital (11%) Capital Adequacy Ratio (BIS), Basel III BIS ratio reached 15.0%, due to the deleveraging of the Loan Portfolio
  • 26.
    26/34Investor Relations |4Q15 | Rating Long term BB BB Ba3 - Short Term B B - - Long term brA+ A+(bra) A3.br Short Term - F1+(bra) Br-2 LocalCurrency AndForeignCurrency National 9,67
  • 27.
    27/34Investor Relations |4Q15 | R$ million Dec-15 Sept-15 Dec-14 Assets 8,860 9,920 10,447 Cash 93 123 180 Interbank investments 505 445 243 Securities 3,159 3,451 3,005 Interbank accounts 1 1 1 Lending operations 4,121 4,775 6,313 (-) Provisions for loan losses (210) (198) (186) Net lending operations 3,910 4,577 6,127 Other receivables 1,073 1,310 872 Property and equipments 120 13 20 Investments 108 - - Property and equipment in use 11 12 19 Intangible 1 1 1 Liabilities 7,697 8,739 9,191 Deposits 1,970 1,846 2,314 Money market funding 500 756 169 Funds from acceptance and securities issued 2,070 2,036 2,043 Interbank and Interbranch accounts 8 13 1 Borrowings and onlendings 2,283 3,040 3,174 Derivative financial instruments 281 264 265 Other liabilities 507 719 1,139 Deferred Results 78 65 85 Shareholders' equity 1,163 1,181 1,256 Liabilities and shareholders' equity 8,860 9,920 10,447 Balance Sheet
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    28/34Investor Relations |4Q15 | R$ million 4Q15 3Q15 2Q15 1Q15 4Q14 2015 2014 Income from financial intermediation 215 758 180 633 402 1,785 1,359 Lending transactions 146 178 176 201 198 701 781 Securities transactions 93 81 83 68 79 325 324 Derivative financial instruments (18) 488 (64) 285 107 691 209 Foreign exchange transactions (7) 11 (14) 79 19 68 45 Expenses with financial intermediation (183) (758) (153) (600) (363) (1,693) (1,088) Funding transactions (163) (322) (134) (257) (201) (876) (689) Borrowings and onlendings 6 (380) 24 (288) (108) (638) (282) Provision for loan losses (26) (56) (42) (55) (54) (180) (117) Gross income from financial intermediation 32 (0) 27 33 39 92 271 Other operating (expenses) income (37) (53) (34) (34) (43) (158) (152) Fee income 18 26 25 21 23 90 93 Personnel expenses (23) (22) (22) (23) (27) (89) (97) Other administrative expenses (19) (20) (17) (18) (22) (74) (90) Tax expenses (6) (2) (10) (4) (3) (23) (11) Other operating income 2 2 1 11 4 16 25 Other operating expenses (7) (36) (12) (22) (17) (78) (71) Operating income (5) (53) (7) (1) (3) (66) 120 Non-operating income 3 (1) 1 4 (1) 8 15 Income before taxes and profit sharing (2) (53) (6) 3 (4) (59) 135 Income tax and social contribution 22 73 17 20 15 133 0 Profit sharing (9) (10) (2) (13) (6) (33) (41) Net income 10 10 10 10 5 41 94 Managerial Income Statement (overhedge effect and provisions reclassified)
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    29/34Investor Relations |4Q15 | R$ million 4Q15 3Q15 4Q14 2015 2014 Income from financial intermediation 230 703 392 1,721 1,350 Lending transactions 146 178 198 701 781 Securities transactions 93 81 79 325 324 Derivative financial instruments (3) 433 96 627 200 Foreign exchange transactions (7) 11 19 68 45 Expenses with financial intermediation (183) (758) (363) (1,627) (1,028) Funding transactions (163) (322) (201) (876) (689) Borrowings and onlendings 6 (380) (108) (638) (282) Provision for loan losses (26) (56) (54) (113) (58) Gross income from financial intermediation 46 (55) 29 94 322 Other operating (expenses) income (37) (53) (43) (225) (211) Fee income 18 26 23 90 93 Personnel expenses (23) (22) (27) (89) (97) Other administrative expenses (19) (20) (22) (74) (90) Tax expenses (6) (2) (3) (23) (11) Other operating income 2 2 4 16 25 Other operating expenses (7) (36) (17) (145) (131) Operating income 10 (108) (14) (131) 111 Non-operating income 3 (1) (1) 8 15 Income before taxes and profit sharing 12 (108) (15) (123) 126 Income tax and social contribution 7 128 25 197 9 Profit sharing (9) (10) (6) (33) (41) Net income 10 10 5 41 94 Income Statement
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    30/34Investor Relations |4Q15 | Guidance 2016 Expanded Loan Portfolio -5% to 0% NIM 3% to 4% Personnel and Administratve Expenses -10% to -5% ROAE 4% to 8% Guidance 2016 Pine GDP (E) 2016: -3.5%
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    32/34Investor Relations |4Q15 | Corporate Governance Pine is committed to best corporate governance practices  Two Independent Members and one External Member on the Board of Directors  Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990  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
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    33/34Investor Relations |4Q15 | 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.
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    34/34Investor Relations |4Q15 | 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. Investor Relations Noberto N. Pinheiro Junior CEO João Brito CFO Raquel Varela Bastos Head of Investor Relations, Funding & Distribution, Marketing & Press Luiz Maximo Investor Relations Coordinator Gabriel Netto Investor Relations Analyst Phone: (55 11) 3372-5343 ir.pine.com ir@pine.com

Editor's Notes

  • #17 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.