1q13 earnings release report

1/20

Conclusion of the cycle of changes started in April 2011

Capital increase of up to R$92 million and additional allowance for

loans granted under the previous credit concession criteria

BI&P - Banco Indusval & Partners is a commercial bank with 45 years of experience in the financial market, focusing on local and foreign

currency, fixed income and corporate finance for companies. BI&P relies on a network of 11 branches strategically located in economically

relevant Brazilian regions, including an offshore branch in Cayman Islands, its brokerage firm operating at the São Paulo Stock, Commodities

and Futures Exchange - BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which originates agricultural bonds.

Highlights

This quarter we completed a cycle that begun in April 2011 with

the entry of a new management team and new shareholders

including the private equity fund Warburg Pincus. It was two

years of restructuring of the Bank as a whole, adoption of a new Vision,

change in the operating segment (migration to bigger companies with

lower risk), changes to the credit granting criteria, expansion and

sophistication of the product offering, renewal of nearly 80% of the

sales team, structuring of the derivatives and agricultural bonds desk, a

more active treasury area, acquisition of an investment banking team

(Voga), structuring and distribution of fixed income products and

establishment of new strategic alliances in Brazil and abroad. Today, all

the teams, processes and strategies are fully operational.

During the period, we recycled our loan portfolio by acquiring

new customers and through credit exit from poor quality loans.

To conclude this first cycle and to ensure that the future Bank results

are not contaminated, in 1Q13 we decided to strengthen the

allowance for loan losses (ALL). Of the total ALL expenses of

R$133.4 million in the quarter, R$126.5 million pertain exclusively to the

loans originated before April 2011. With this, the allowance coverage

for loans classified between D and H increased from 47.3% in December

2012 to 96.4% in March 2013, reflecting a more conservative approach

by the current management. As a result of this allowance, we recorded

a loss of R$91.4 million in the quarter.

On a parallel note, we announced on this date a capital increase of up

to R$92 million, of which the private equity fund Warburg Pincus and

the controlling shareholders have already committed to subscribed to

R$82 million, which underlines the confidence of all the parties in

laying the solid foundation for a differentiated bank in the

market.

After the approval by Brazilian Central Bank in April 17, we also

announced on this date the closing of the acquisition process of Voga

Empreendimentos e Participações Ltda, which is fully integrated

into BI&P activities and working together with the sales team to identify

new business opportunities.

IDVL4: R$7.24 per share

Closing: May 14, 2013

Outstanding Shares: 62,371,178

Market Cap: R$451.6 million

Price/Book Value: 0.91

Conference Call / Webcasts

May 15, 2013

In English

11 a.m. (US EST) / 12 p.m. (Brasília)

Connections

Brazil: +55 11 4688-6361

USA: +1 786 924-6977

Code: BI&P

In Portuguese

10 a.m. (US EST) / 11 a.m. (Brasília)

Number: +55 11 4688-6361

Code: BI&P

Website

www.bip.b.br/ir

http://www.bip.b.br/ir

2/20

Summary

Message from the Management ............................................................................................. 3

Macroeconomic Environment ................................................................................................. 4

Key Indicators ..................................................................................................................... 5

Operating Performance ......................................................................................................... 6

Credit Portfolio .................................................................................................................... 9

Funding ............................................................................................................................ 14

Free Cash ......................................................................................................................... 15

Capital Adequacy ............................................................................................................... 15

Risk Ratings ...................................................................................................................... 15

Capital Markets .................................................................................................................. 16

Balance Sheet ................................................................................................................... 18

Income Statement ............................................................................................................ 20

3/20

Message from Management

Since April 2011, we have been working on broadly restructuring Banco BI&P, on expanding our operations, on

reviewing the credit granting criteria, on expanding the product offering and on strengthening the teams. This

restructuring was concluded in the first quarter of 2013 and the most significant changes are:

New Vision and new management team, with a team of renowned professionals;

New sales team: around 80% of the team was renewed, with the entry of professionals better qualified for

our multiple product offering;

Repositioning of our target market to focus on bigger companies with lower risk;

New lending criteria, with more conservative risk and diversification criteria;

Reconstruction of the expanded credit portfolio within the new parameters, and portfolio growth of 52.8%

since March 2011;

Expansion of the product and service offering for the purpose of cross selling to the customer base;

Structuring of the derivatives and agricultural bonds desk and an active treasury area in all the markets;

Investment banking team from Voga and fixed income structuring and distribution team already integrated

with the Bank’s operations, working jointly with the sales team to identify new business opportunities;

Broadening of the funding mix, with diversification of funding sources and reduction of funding cost.

In addition to all the efforts and investments made in processes and technology, we have worked in building a

highly qualified team that is aligned with our values. During this period, we conducted organizational climate

surveys, 360-degree feedback, force curve analysis, and constant training programs. We also placed emphasis on

the trainee and intern program since we believe that by laying a solid foundation will we become a sustainable

bank in the long run.

To conclude this first cycle and to ensure that the future results of the Bank do not get tainted for

loan losses, in 1Q13 we decided to strengthen the allowance for loan losses (ALL). Of the total ALL

expenses of R$133.4 million in this quarter, R$126.5 million pertain exclusively to the loans originated before

April 2011, of which R$110.7 million are the additional provisions. With this, we substantially improved coverage

for loans classified between D and H, which increased from 47.3% in December 2012 to 96.4% in March 2013,

reflecting a more conservative approach by the current management. As a result of this allowance, we recorded

a loss of R$91.4 million in the quarter.

At the same time, to maintain shareholders' equity at the same level as at the end of 2012, we

announced on this date a capital increase of up to R$92 million, of which the private equity fund

Warburg Pincus and the controlling shareholders have already committed to subscribe R$82 million, which

underlines the confidence of all the parties in laying the solid foundation for a differentiated bank in the market.

Had this capital increase taken place at the end of March 2013, it would have raised our Basel Index from the

current 14.2% to 16.8%.

And why create an additional provision now? As mentioned already, this quarter we concluded the whole process

of building a new BI&P, with the most recent step being the acquisition of Voga and the arrival of a strong

investment banking team. With this reinforcement to our allowance, we plan to eliminate possible problems from

the past that could impact our future results. Our focus now is to gain scale in terms of assets and accelerate the

generation of fee revenue in order to deliver an adequate result for our shareholders.

4/20

Macroeconomic Scenario

Despite the recent volatility of economic data - with strong growth in January and a slowdown in February - the

Brazilian economy is showing more consistent signs of recovery in the first quarter, especially in terms of

investments. The country’s GDP will probably show that the economy grew at the best pace since 2010, with

industry recovering. Another sector worthy of highlighting is agriculture which, in the first quarter, did not suffer

from the unusual climatic conditions such as in the beginning of 2012 in south Brazil and should register a new

gain production record during the harvest in the first half of this year.

In a scenario of improved economic data and continuously high inflation, the Central Bank of Brazil started a

monetary tightening cycle, yet maintained a cautious approach on account of the deep uncertainties surrounding

the global economy, notably the weak economic growth in Europe and the recent slowdown of the Chinese

economy, indicating that the increase in interest rates should be less intense.

In the foreign exchange market, the higher volatility seen at the end of 2012 continued in the beginning of this

year and the Central Bank once again intervened by using exchange derivatives several times during the quarter

to maintain the exchange rate within the range of R$1.95 and R$2.05. These interventions make it clear that the

Central Bank wants to avoid inflationary pressures resulting from the devaluation of the Real as it happened in

2012.

Credit volume in the national financial system grew 2.5% in the quarter to reach R$2.43 trillion. Credit volume in

12 months increased by 17%, with the average loan term increasing to 75 months in March 2012 to 86 months

in the first quarter of 2013. As a percentage of GDP, credit volume increased from 53.8% in the fourth quarter of

2012 to 53.9% in March 2013, well above the 49.3% in the same period last year.

Default in the individuals segment dropped from 8.0% in the last quarter of 2012 to 7.6% now, while corporate

default remained practically stable at 3.6%. The slight improvement in default indicators is in line with the more

selective approach to lending adopted by banks and the gradual improvement of the economy, which has kept

unemployment rates at close to historic lows.

Macroeconomic Data 1Q13 4Q12 1Q12 2013e

Real GBP Growth (Q/Previous Q) 1.0%(e) 0.6% 0.1%

2.9%

Inflation (IPCA - IBGE) – quarterly change 1.94% 1.99% 1.22% 6.00%

Inflation (IPCA - IBGE) – annual change 6.59% 5.84% 5.24%

6.00%

FX (US$/R$) – quarterly change -1.45% 0.64% -2.86% 5.50%

Interest Rate (Selic) 7.25% 7.25% 9.75% 8.50%

e= expectation

5/20

Key Indicators

The financial and operating information presented in this report are based on consolidated financials prepared in

millions of Real (local currency), according to Brazilian GAAP (BRGAAP), except were otherwise stated.

Results 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Result from Financial Int. before ALL adjusted 1 44.8 44.3 1.2% 51.6 -13.1%

Effects of hedge accounting and discounts 1 (22.1) 4.3 -618.9% (0.7) n.c.

Result from Financial Int. before ALL 22.8 48.5 -53.1% 50.8 -55.2%

ALL Expenses 2 (133.4) (7.9) 1598.1% (14.4) 826.4%

Result from Financial Intermediation (110.6) 40.7 -371.9% 36.4 -403.7%

Net Operating Expenses (33.9) (33.8) 0.2% (27.2) 24.8%

Operating Result (144.5) 6.9 n.c. 9.3 n.c.

Net Profit (Loss) (91.4) 3.6 n.c. 5.0 n.c.

Assets & Liabilities 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Loan Portfolio 2,522.7 2,624.3 -3.9% 2,385.6 5.7%

Expanded Loan Portfolio 3 3,047.5 3,067.9 -0.7% 2,759.1 10.5%

Cash & Short Term Investments 611.3 447.8 36.5% 642.3 -4.8%

Securities and Derivatives 769.7 731.3 5.2% 1,309.8 -41.2%

Securities excl. Agro Sec. & Private Credit Bonds 4 417.4 445.9 -6.4% 1,100.1 -62.1%

Total Assets 4,259.1 4,022.0 5.9% 4,583.0 -7.1%

Total Deposits 2,451.3 2,274.6 7.8% 2,087.8 17.4%

Open Market 193.2 241.9 -20.1% 1,058.4 -81.7%

Foreign Borrowings 396.4 388.6 2.0% 407.8 -2.8%

Domestic Onlending 322.1 335.5 -4.0% 240.2 34.1%

Shareholders’ Equity 498.4 587.2 -15.1% 590.5 -15.6%

Performance 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Free Cash 760.1 571.1 33.1% 643.6 18.1%

NPL 60 days/ Loan portfolio 2.3% 1.5% 0.8 p.p. 3.2% -0.8 p.p.

NPL 90 days/ Loan portfolio 2.2% 1.2% 1.0 p.p. 2.7% -0.6 p.p.

Basel Index 4 14.2% 14.9% -0.7 p.p. 17.5% -3.4 p.p.

ROAE -52.2% 2.5% -54.7 p.p. 3.5% -55.7 p.p.

Adjusted Net Interest Margin (NIMa) 5 5.4% 5.2% 0.2 p.p. 6,7% -1.3 p.p.

Efficiency Ratio 155.3% 78.4% 76.8 p.p. 67.6% 87.7 p.p.

Other Information 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Number of Corporate Clients 811 851 -4.7% 775 4.6%

Number of Employees 449 436 3.0% 426 5.4%

BI&P Employees 397 401 -1.0% 394 0.8%

Brokerage house and Serglobal Employees 52 35 48.6% 32 62.5%

Details in the respective sections of this report:

1 Excluding (i) effects of the discontinuance of the treatment of hedge accounting, adopted in 2Q12, for booking hedges of cash flows, which

continue to be protected by hedge, and (ii) discounts granted in operations renegotiated in the period. More details in the Profitability section

of this report. 2 Including additional provisions.

3 Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and agro securities (CDCA, CDA/WA and CPR).

4 Excluding Agro Securities (CPRs and CDA/WA) and Private Credit Bonds (PNs and debentures).

5 Excluding (i) repos with equivalent volumes, tenors and rates both in assets, and (ii) effects of the discontinuance of the treatment of hedge

accounting, and also discounts granted in operations renegotiated in the period.

n.c. = not comparable

6/20

Operating Performance

Financial Intermediation Result

before Allowance for Loan Losses Net Profit

Expanded Credit Portfolio Funding

Profitability

Financial Intermediation 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Financial Intermediation Revenues 87.6 123.7 -29.2% 161.8 -45.9%

Credit Operations 56.0 62.3 -10.2% 70.2 -20.3%

Loans & Discounts Receivables 44.8 46.9 -4.3% 62.9 -28.7%

Financing 6.8 7.5 -9.2% 6.4 7.4%

Other 4.3 8.0 -45.8% 0.9 354.7%

Securities 19.6 28.6 -31.4% 68.6 -71.4%

Derivative Financial Instruments 2.0 15.6 -87.4% (3.7) 152.3%

FX Operations Result 10.0 17.2 -41.7% 26.7 -62.5%

Financial Intermediation Expenses 64.8 75.2 -13.8% 111.0 -41.6%

Money Market Funding 53.2 56.4 -5.7% 85.3 -37.6%

Time Deposits 40.8 40.0 2.1% 45.2 -9.8%

Repurchase Transactions 4.6 8.4 -45.2% 30.5 -84.9%

Interbank Deposits 1.3 1.6 -19.9% 3.1 -59.8%

Agro Notes (LCA), Real Estate Notes (LCI) & Bank Notes (LF) 6.5 6.5 0.5% 6.4 1.6%

Loans, Assignments & Onlending 11.6 18.8 -38.0% 25.6 -54.6%

Foreign Borrowings 6.9 14.5 -52.7% 22.2 -69.1%

Domestic Borrowings & Onlending 4.8 4.3 11.9% 3.5 37.9%

Gross Result from Financial Intermediation before ALL 22.8 48.5 -53.1% 50.8 -55.2%

Allowance for Loan Losses (ALL) (133.4) (7.9) 1598.1% (14.4) 826.4%

Gross Result from Financial Intermediation (110.6) 40.7 n.c. 36.4 n.c.

50,8 59,6

48,4 48,5

22,8

51,6

43,3 45,6 44,3 44,8

1Q12 2Q12 3Q12 4Q12 1Q13

R$ m

illio

n

Financial Intermediation Result before ALL

Financial Intermediation Result before ALL adjusted

5,0 2,4 3,1 3,6

1Q12 2Q12 3Q12 4Q12 1Q13

R$ m

illio

n

2,8 2,8 3,0 3,1 3,0

1Q12 2Q12 3Q12 4Q12 1Q13

R$ b

illio

n

Private Credit Bonds (PNs and Debentures)Agro Bonds (CPR, CDA/WA and CDCA)Guarantees IssuedTrade FinanceLoans & Financing in Reais

2,7 2,8 2,9 3,0 3,2

1Q12 2Q12 3Q12 4Q12 1Q13

R$ b

illio

n

total Trade Finance & Foreign Borrowings

Domestic Onlending Interbank & Demand Deposits

Agro Bonds, Bank and Real Estate Notes Insured Time Deposits

-91.4

10.5% 15.8%

7/20

In 1Q13, the Result from Financial Intermediation before Expenses with Allowance for Loan Losses totaled

R$22.8 million, down 53.1% from 4Q12 and 55.2% from 1Q12. This result was especially impacted: (i) in the

item Derivative Financial Instruments, by the effect of discontinuance of the designation of hedge accounting,

adopted in 2Q12, of operations to protect the cash flow, which continue to be protected by hedge operations;

and (ii) in the item Loan Operations, by the discounts granted in operations renegotiated during the period.

Excluding the impact of the discontinuance of hedge accounting and the discounts given on renegotiations to

enable correct comparison between the quarters, the Result from Financial Intermediation before Expenses with

Allowance for Loan Losses would be R$44.8 million, up 1.2% in the quarter and down 13.1% from 1Q12, as

shown below:

Financial Interm. Result before ALL w/o effects of hedge accounting and discounts granted in operations renegotiated

1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

A. Result from Financial Int. before ALL 22.8 48.5 -53.1% 50.8 -55.2%

B. Effect of discontinuance of the designation of hedge accounting (15.6) 6.2 -350.3% - n.m.

C. Discounts granted in operations renegotiated (6.5) (2.0) 228.6% (0.7) 771.3%

Adjusted Result from Financial Int. before ALL (A-B-C) 44.8 44.3 1.2% 51.6 -13.1%

n.m. = not measurable

Revenue from Credit Operations decreased (ROC) decreased from R$62.3 million in 4Q12 to R$56.0 million in

1Q13, basically due to the discounts granted on loans renegotiated during the period (R$6.5 million). Excluding

this amount, for correct comparison of the ROCs, the same remained practically stable, despite the fewer

business days in the period.

Income from Securities, which includes the results from the treasury’s proprietary position and CPR, CDA/WA and

debentures, with offset in funding expenses, decreased significantly during the period in proportion to the

significant reduction in the positions in the quarter.

The Result from Derivative Financial Instruments includes results from operations involving swaps, forwards,

futures and options used to hedge against exchange and interest rate exposure for funding operations indexed

to the inflation indexes, as well as foreign borrowings (non-trade related), hedging of commodity prices resulting

from CPR operations and indexers of federal government bonds held in the securities portfolio, in addition to the

proprietary position. The decrease in this item in the quarter is mainly due to the effect of discontinuance of the

designation of hedge accounting in 2Q12 of operations to protect cash flow from funding indexed to inflation

indexes IPCA and IGPM and foreign borrowings, with exposure to the risk of variation in interest and foreign

exchange rates, as detailed in notes 3(d) and 5(c) of the financial statements. Since then, the mark to market of

the hedge operations, which continue to protect these cash flows, was no longer booked in shareholders' equity

but in the income statement. The result of this in 1Q13 was a loss of R$15.8 million.

Income from Foreign Exchange Transactions and expenses with Foreign Borrowings were especially impacted by

the drop in demand from customers and the decline in spreads on these operations.

As for Expenses with Time Deposits, the increase of 2.1% in the quarter is in line with the 1.1% increase in the

average balance of Time Deposits in these periods (R$1,703.1 million in 1Q13 and R$1.684,9 million in 4Q12)

and the decrease of 9.8% in 12 months refers, in particular, to the fall of the benchmark interest rate. Similar to

these expenses, Expenses with Interbank Deposits and Agribusiness Letters of Credit, Real Estate Notes and

Bank Notes are also related to the average balances in the periods being compared.

Note that the Result from Financial Intermediation in 1Q13 was strongly impacted by expenses with allowance

for loan losses amounting to R$133.4 million. In the first quarter, as a prudential measure in light of a few loans

that are in the credit exit phase and which have longer terms, we set aside an additional allowance of R$110.7

million. With this, we strengthened our balance sheet for a possible deterioration of these loans, pertaining to

customers acquired before 2011, increasing the coverage of loans classified between D and H (ALL/Loans D-H)

from 47.3% at the end of December 2012 to 96.4% at the end of March 2013.

8/20

Net Interest Margin (NIM)

Adjusted net interest margin was 2.7% in 1Q13, down 3.1 p.p. in the quarter and 3.9 p.p. from 1Q12.

Net Interest Margin 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

A. Result from Financial Interm. before ALL 22.8 48.5 -53.1% 50.8 -55.2%

B. Average Interest bearing Assets 3,603.6 3,891.0 -7.4% 4,234.5 -14.9%

Adjustment for non-remunerated average assets 1 (229.2) (505.2) -54.6% (1,096.9) -79.1%

B.a Adj. Average Interest bearing Assets 3,374.4 3,385.8 -0.3% 3,137.6 7.5%

Adjusted Net Interest Margin (NIMa) (Aa/Ba) 2.7% 5.9% -3.1 p.p. 6.6% -3.9 p.p.

1 Repos with equivalent volumes, tenors and rates both in assets and liabilities.

As described in the section on Profitability, considering the effects on the Result from Financial Intermediation

from the discontinuance of the designation of hedge accounting and discounts granted during renegotiations, of

-R$15.8 million and R$6.5 million, respectively, in the quarter, NIM would increase to 5.4% in 1Q13, as the

following table shows:

Net Interest Margin w/o effects of hedge accounting and discounts granted in operations renegotiated

1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

A. Result from Financial Interm. before ALL 45.0 43.1 4.3% 51.6 -12.7%

B. Average Interest bearing Assets 3,603.6 3,891.0 -7.4% 4,234.5 -14.9%

Adjustment for non-remunerated average assets 1 (229.2) (505.2) -54.6% (1,096.9) -79.1%

B.a Adjusted Average Interest bearing Assets 3,374.4 3.385,8 -0.3% 3,137.6 7.5%

Adjusted Net Interest Margin (NIMa) (Aa/Ba) 2 5.4% 5.2% 0.2 p.p. 6,7% -1.3 p.p.

1 Repos with equivalent volumes, tenors and rates both in assets and liabilities 2 Excluding (i) effects of the discontinuance of the treatment of hedge accounting, adopted in 2Q12, for booking hedges of cash flows, which

continue to be protected by hedge, and (ii) discounts granted in operations renegotiated in the period.

Efficiency

The efficiency ratio was 115.3% in 1Q13, -76.8 p.p. in the quarter and -87.7 p.p. when compared to 1Q12.

Efficiency Ratio 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Personnel Expenses 26.4 23.7 11.3% 22.7 16.0%

Contributions and Profit-sharing 5.4 1.8 196.6% 2.1 153.9%

Administrative Expenses 13.4 13.3 0.3% 13.1 1.9%

Taxes 3.6 4.3 -16.8% 3.7 -2.8%

A- Total Operating Expenses 48.8 43.2 12.9% 41.7 17.0%

Gross Income Financial Intermediation (w/o ALL) 22.8 48.5 -53.1% 50.8 -55.2%

Income from Services Rendered 6.5 6.7 -4.4% 6.6 -2.1%

Income from Banking Tariffs 0.2 0.2 -10.9% 0.2 -13.6%

Other Net Operating Income (*) 2.0 (0.4) n.c. 4.1 -49.9%

B- Total Operating Income 31.4 55.1 -43.0% 61.7 -49.1%

Efficiency Ratio (A/B) 155.3% 78.4% 76.8 p.p. 67.6% 87.7 p.p.

(*) Net of other Operating Expenses to offset the cost of acquisition and income on sale of commodities in the activity of Serglobal Cereais.

Net Profit

The operating income of -R$144,5 million in 1Q13, after (i) the non-operating loss from the sale of properties and

non-operating assets of the R$669 thousand, (ii) taxes and contributions of the R$59,2 million, and (iii) profit

sharing of the R$5,4 million, resulted in a loss of R$91.4 million.

9/20

Credit Portfolio

Expanded Credit Portfolio

The Expanded Credit Portfolio remained practically stable in the quarter but grew 10.5% in 12 months. The

Expanded Credit Portfolio includes loan and financing operations in Brazilian Real and trade finance operations,

both detailed in note 6(a) to the financial statements, as well as: (i) guarantees issued (sureties, guarantees and

letters of credit), (ii) agribusiness bonds originated from the absorption of the operations of Serglobal Cereais

(CPR and CDA/WA); and (iii) private credit bonds (promissory notes and debentures). Items (ii) and (ii) were

both booked under Securities as per Central Bank regulations.

Expanded Credit Portfolio by Product Group 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Loans & Financing in Real 2,019.8 2,080.6 -2.9% 1,861.3 8.5%

Trade Finance (ACC/ACE/IMPFIN) 415.4 426.0 -2.5% 442.8 -6.2%

Guarantees Issued (LGs & L/Cs) 172.5 158.2 9.0% 163.8 5.3%

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 370.9 327.1 13.4% 229.7 61.5%

Private Credit Bonds (Securities: PNs & Debentures) 41.1 40.1 2.5% 25.5 60.9%

Other 27.8 35.9 -22.5% 35.9 -22.5%

TOTAL 3,047.5 3,067.9 -0.7% 2,759.1 10.5%

The Middle Market segment comprises customers with

annual revenue between R$40 million and R$400 million

and Corporate segment includes companies with annual

revenue between R$400 million and R$2 billion. The

Other segment basically refers to Consumer Credit

operations for Used Vehicles and financing of non-

operating assets.

Loans and financing operations in Real, which include loans, bills discounted, acquisition of client receivables and

BNDES onlendings, represented 66.3% of the Expanded Credit Portfolio. The highest growth was in loans and

discounted receivables, up 10.2% in 12 month and down 2.6% in the quarter, and BNDES onlending, up 38.2%

in 12 months and down 4.8% in the quarter.

Trade Finance operations correspond to 13.6% of the Expanded Credit Portfolio and include import financing,

which account for 27.5% of Trade Finance operations, and export financing, which account for 72.5%. Though

we maintained our credit lines with foreign banks, the Trade Finance portfolio was negatively impacted, mainly

due to the adverse external scenario.

Guarantees issued (sureties, guarantees and import letters of credit) correspond to 5.7% of the Expanded Credit

Portfolio, up 9.0% from 4Q12 and 5.3% from 1Q12. This growth reflects the higher share of Corporate segment

customers since these operations have greater demand in this segment.

Though the portfolio of agribusiness bonds and private credit bonds represent credit exposure, it is classified

under “held for sale” marketable securities in the balance sheet, in accordance with Brazilian Central Bank

regulations due to its tradability, and has been growing consistently in recent quarters. The private bonds

portfolio grew 2.5% in the quarter and 60.9% in 12 months.

51% 51% 42% 39% 47%

48% 48% 56% 59% 51%

2% 2% 2% 2% 1%

1Q12 2Q12 3Q12 4Q12 1Q13

Expanded Credit Porfolio

Middle Market Corporate Others

10/20

The agribusiness bonds portfolio continues to increase its share of the Expanded Credit Portfolio, accounting for

12.2% in 1Q13.

Agro Bonds Portfolio 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Booked under Securities 311.2 245.3 26.9% 184.1 69.0%

Warrants - CDA/WA 7.1 8.0 -10.6% 7.2 -1.8%

Agro Product Certificate - CPR 304.1 237.4 28.1% 176.9 71.9%

Booked under Credit Portfolio - Loans & Financing 59.7 81.8 -27.0% 45.6 31.1%

Agro Credit Rights Certificate - CDCA 59.7 81.8 -27.0% 45.6 31.1%

AGRICULTURAL BONDS 370.9 327.1 13.4% 229.7 61.5%

Our Expanded Credit Portfolio breakdown is as follows:

By Economic Activity By Region By Customer Segment

By Economic Sector By Product

Industry 49%

Commerce 28%

Other Services

20%

Individuals 2%

Financial Institution

1%

North 1%

Northeast 2%

South 19%

Midwest 21%

Southeast 57%

Corporate 52%

Middle Market 47%

Others 1%

7,0% 1,0% 1,4% 1,6% 1,7% 1,7% 1,8%

2,5% 2,9% 3,0% 3,0% 3,0% 3,1% 3,3% 3,9% 4,2%

5,7% 13,0% 13,4%

22,8%

Other sectors (% lower than 1%)

Individuals

Financial institutions

Power Generation & Distribution

Machinery and Equipments

Electronics

Financial Services

Education

Advertising & Publishing

Commerce - Retail & Wholesale

Oil & Biofuel

Metal Industry

Textile, apparel & Leather

Pulp & Paper

Chemical & Pharmaceutical

Transportation & Logistics

Automotive

Construction

Food & Beverage

Agribusiness

Loans & Discounts

56%

BNDES Onlending

10%

Trade Finance

14%

Agro Bonds 12% Guarantees

Issued 6%

Debentures 1%

Other 1%

11/20

Credit Porfolio

The “classic” credit portfolio, which excludes guarantees issued and credits classified under “held for sale”

marketable securities, totaled R$2.5 billion at the end of March 2013, in which Operations in Real accounted for

R$2.1 billion while Trade Finance operations totaled R$415.4 million.

This quarter, the portfolio was more evenly balanced between the Middle Market and Corporate segments: the

Middle Market segment accounted for 49.0% of the credit portfolio (42.0% in December 2012) and the

Corporate segment for 49.6% (56.4% in December 2012). Other loans, classified as Other, include the balance

of the direct consumer credit - used vehicles (CDC) portfolio, portfolios acquired from other banks and financing

of non-operating assets, and corresponded to 1.4% of the portfolio (1.6% in December 2012).

Credit Portfolio By Client Segment 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Middle Market 1,237.1 1,101.9 12.3% 1,500.8 -17.6%

Local Currency - Real 1,072.6 882.0 21.6% 1,211.3 -11.4%

Loans & Discounted Receivables 913.7 737.4 23.9% 1,051.7 -13.1%

Financing 0.0 0.0 n.m. 0.0 n.m.

BNDES / FINAME Onlending 158.9 144.7 9.9% 159.6 -0.4%

Foreign Currency 164.5 219.9 -25.2% 289.6 -43.2%

Corporate 1,251.0 1,479.8 -15.5% 830.6 50.6%

Local Currency - Real 1,000.0 1,273.7 -21.5% 677.3 47.6%

Loans & Discounted Receivables 839.6 1,083.0 -22.5% 518.8 61.9%

BNDES / FINAME Onlending 160.4 190.7 -15.9% 71.5 124.5%

Acquired Receivables 0.0 0.0 n.m. 87.1 -100.0%

Foreign Currency 250.9 206.1 21.7% 153.3 63.7%

Other 34.7 42.6 -18.6% 54.2 -36.0%

Consumer Credit – used vehicles 0.3 0.6 -45.7% 3.0 -89.8%

Acquired Loans & Financing 4.9 6.7 -26.5% 18.3 -73.0%

Non-Operating Asset Sales Financing 29.4 35.3 -16.6% 32.9 -10.5%

CREDIT PORTFOLIO 2,522.7 2,624.3 -3.9% 2,385.6 5.7%

By Collateral By Customer Concentration By Maturity

Aval PN 50%

Receivables 25%

Pledge / Lien 9%

Property 8%

Monitored Pledge

5% Vehicles

2% Securities 1%

10 largest 16%

11 - 60 32%

61 - 180 27%

Other 25%

Up 90 days 36%

91 to 180 days 19%

181 to 360 days 16%

+360 days 29%

12/20

Quality of Credit Porfolio

Rating AA A B C D E F G H Comp. TOTAL

ALL/ Loan

Port. %

Required Provision % 0% 0,5% 1% 3% 10% 30% 50% 70% 100%

1Q

13

Outstanding Loans 43.9 1,020.3 908.3 321.9 49.0 108.2 42.8 4.5 23.7 - 2,522.7 8.7%

ALL 0.0 5.1 9.1 9.7 4.9 32.5 21.4 3.1 23.7 110.7 220.2

4Q

12

Outstanding Loans 53.4 1,103.2 919.8 344.7 65.0 82.2 27.1 8.5 20.4 - 2,624.3 3.7%

ALL 0.0 5.5 9.2 10.3 6.5 24.7 13.6 6.0 20.4 0.0 96.1

1Q

12

Outstanding Loans 94.9 921.4 776.9 397.8 38.8 97.8 19.9 11.7 26.4 - 2,385.6 4.3%

ALL 0.0 4.6 7.8 11.9 3.9 29.4 10.0 8.2 26.4 0.0 102.0

During the quarter, we maintained the percentage of loans classified between AA and B high, at 97.8%, thus

maintaining the quality of the credit portfolio. The balance of loans classified in the low risk categories (AA to B)

accounted for 78.2% of the loan operations in the quarter (79.1% and 75.2%, respectively, at the end of 4Q12

and 1Q12), as the following chart shows:

Of the R$228.3 million classified between D and H (R$203.2 million in December 2012 and R$194.6 million in

March 2012), R$169.1 million correspond to loans whose payments are regular, equivalent to 74% of the total

(81% in December 2012 and 61% in March 2012). The remaining 26% correspond to overdue loans and are

detailed below:

Default by segment 1Q13 4Q12 > 60 days > 90 days

1Q13 4Q12 1Q13 4Q12

Credit Portfolio NPL %T NPL %T NPL %T NPL %T

Middle Market 1,237.1 1,101.9 45.9 3.7% 37.9 3.4% 44.8 3.6% 30.9 2.8%

Corporate 1,251.0 1,479.8 5.5 0.4% 1.5 0.1% 1.9 0.2% - 0.0%

Others 34.7 42.6 7.7 22.3% 0.2 0.5% 7.6 21.9% 0.2 0.5%

TOTAL 2,522.7 2,624.3 59.2 2.3% 39.6 1.5% 54.3 2.2% 31.1 1.2%

Allowance Loan Losses (ALL) 220.2 96.1

ALL / NPL - 372.2% 242.7% 405.1% 309.3%

ALL / Loan Portfolio 8.7% 3.7% - - - -

The default rate on loans overdue by more than 60 days (NPL 60 days) dropped 0.8 p.p. in 12 months but

increased by 0.8 p.p. from the previous quarter, while loans overdue by more than 90 days (NPL 90 days)

increased by 1.0 p.p. in the quarter but declined 0.6 p.p. in relation to March 2012, reflecting the improving

quality of our credit portfolio in the past 12 months.

The improvement in the NPL indicators in the 12-month comparison reflects the strategy adopted in 2011 of

enhancing the credit portfolio with better quality loans; on the other hand, the worsening of the indicators in the

4%

2%

2%

39%

42%

40%

33%

35%

36%

17%

13%

13%

8%

8%

9%

1Q12

4Q12

1Q13

AA A B C D - H

78.2%

79.1%

75.2%

13/20

quarter basically reflects the performance of older customers, that is, those acquired before 2011, for whom the

additional allowance mentioned earlier was created.

A comparison of the performance of the older portfolio (customers acquired before 2011) with that of the new

portfolio shows the better quality of the customers acquired under the new lending policy, as the table shows:

ALL/Credit Portfolio Ratio 1Q13

ALL/Credit Portfolio 8.7%

Clients acquired after April 2011 1.7%

Middle Market 2.7%

Corporate 1.1%

Clients acquired before April 2011 8.2%

Clients acquired after April 2011 including additional ALL 18.8%

Allowance for loan losses totaled R$220.2 million, providing coverage of 3.7x the balance of NPL 60 days, and of

4.1x the balance of NPL 90 days, mainly impacted, as mentioned earlier, by the additional provision of R$110.7

million for customers in the portfolio prior to April 2011.

Note that the potential default rate (ratio of installments overdue by between 15 and 60 days to the total credit

portfolio) was 0.2% in March 2013, a significant improvement of 0.6 p.p. in the quarter and of 0.4 p.p. in 12

months. During the quarter, R$9.3 million (R$15.3 million in 4Q12 and R$55.1 million in 1Q12) in loan

operations, already fully provisioned, were written off as losses.

14/20

Funding

Funding totaled R$3.2 billion at the end of March 2013, increasing 5.7% in the quarter and 15.9% in 12 months.

Time deposits through the issue of Bank Deposit Certificates (CDB) and Time Deposits with Special Guarantee

(DPGE I) are the main sources, accounting for 25.8% and 29.4%, respectively, of total funding. Funding through

agribusiness letters of credit (LCA), which increased 30% in the quarter and 63.9% in the year, Real Estate

Letters of Credit (LCI), which began in the second half of 2012, and Bank Notes (LF) correspond, all together, to

16.7% of the total funding balance, contributing to more balanced funding costs and diversification of our

product offering.

Funding in foreign currency is especially allocated to Trade Finance operations and its balance is impacted by

foreign exchange variations.

Total Funding 1Q13 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Total Deposits 2,451.3 2,274.6 7.8% 2,087.8 17.4%

Time Deposits 818.1 707.0 15.7% 816.2 0.2%

Insured Time Deposits (DPGE) 931.8 1,007.4 -7.5% 799.7 16.5%

Agro Notes (LCA) 473.7 364.4 30.0% 288.9 63.9%

Bank Notes (LF) 33.1 29.5 12.1% 7.6 337.2%

Real Estate Notes (LCI) 23.9 12.1 96.9% 0.0 n.m.

Interbank Deposits 91.4 98.0 -6.7% 127.4 -28.3%

Demand Deposits and Other 79.3 56.1 41.2% 48.0 65.3%

Domestic Onlending 322.1 335.5 -4.0% 240.2 34.1%

Foreign Borrowings 396.4 388.6 2.0% 407.8 -2.8%

Trade Finance 345.9 337.4 2.5% 362.3 -4.5%

Other Foreign Borrowings 50.5 51.2 -1.3% 45.4 11.2%

TOTAL 3,169.7 2,998.7 5.7% 2,735.7 15.9%

By Type By Investor By Maturity

The average term of deposits stood at 745 days from issuance (800 days in December 2012) and 391 days from

maturity (430 days in December 2012).

Average Term in days

Type of Deposit from issuance to maturity 1

Time Deposits 476 310

Interbank 100 47

Time Deposits Special Guarantee (DPGE) 1,369 661

Agro Notes (LCA) 115 67

Bank Notes (LF) 891 602

Real Estate Notes (LCI) 169 104

Portfolio of Deposits 2 745 391

1 From March 31, 2013. | 2 Volume weighted average.

Time Deposit 26%

Insured Time Dep.

(DPGE) 29%

Agro Bonds 15%

Bank and Real Estate

Notes 2%

Onlendings 10%

Trade Finance

11%

Foreign Loans 2%

Interbank 3%

Demand 2%

Institutional Investors

42%

Corporates 15%

Individuals 6%

National Banks 8%

Brokers 3%

Other 4%

BNDES 10%

Foreign Banks 12%

Demand 2%

up 90 days 34%

90 to 180 days 12%

180 to 360 days

13%

+360 days 39%

15/20

Free Cash

On March 31, 2013, the free cash position totaled R$760.1 million,

equivalent to 31% of total deposits and 1.5x shareholders’ equity. The

calculation considers cash, short-term interbank investments and securities

less funds raised in the open market and debt securities classified under

marketable securities, comprising rural product certificates (CPRs),

agribusiness deposit certificates and warrants (CDAs/WAs), debentures and

promissory notes (NPs).

Capital Adequacy

The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk in their

operations. In this context, the Central Bank of Brazil has stipulated that banks operating in the country should

maintain a minimum percentage of 11%, calculated according to the Basel II Accord regulations, which provides

greater security to Brazil’s financial system against oscillations in economic conditions.

In line with the best risk management practices, the BI&P bank has been taking steps to implement the Basel III

requirements. Thus, the Basel Index in the first quarter was impacted by the new criteria for weighting risk

according to the size of corporate customers.

The following table shows BI&P’s position in relation to the Central Bank’s minimum capital requirements:

Basel Index

1Q13 1Q13* 4Q12 1Q13/4Q12 1Q12 1Q13/1Q12

Total Capital 485.3 577,3 583.3 -16.8% 588.1 -17.5%

Tier I 486.3 578,3 584.3 -16.8% 576.6 -15.7%

Tier II 1.3 1,3 1.3 -0.9% 14.0 -90.5%

Deductions (2.3) (2,3) (2.3) 0.0% (2.4) -4.8%

Required Capital 376.8 376,8 430.3 -12.4% 369.1 2.1%

Credit Risk allocation 329.0 329,0 372.9 -11.8% 326.8 0.7%

Market Risk Allocation 29.9 29,9 38.2 -21.7% 22.1 35.2%

Operating Risk Allocation 17.9 17,9 19.7 -9.2% 20.2 -11.4%

Excess over Required Capital 108.5 200,5 153.1 -29.1% 219.0 -50.5%

Basel Index 14.2% 16,8% 14.9% -0.7 p.p. 17.5% -3.4 p.p.

* Simulation of the Basel Index if the capital increase of R$92 million occurred in March 31, 2013.

Risk Ratings

Agency Classification Observation Last

Report Financial

Data

Standard & Poor’s BB/ Negative/ B

brA+/ Negative/ brA-1

Global Scale

Local Scale - Brazil Mar. 13, 2013 Dec 31, 2012

Moody's Ba3/ Stable/ Not Prime

A2.br/ Stable/ BR-2

Global Scale

Local Scale - Brazil Feb. 14, 2013 Sept 30, 2012

FitchRatings BBB/ Stable/ F3 Local Scale - Brazil Nov. 12, 2012 Sept. 30, 2012

RiskBank 10,38

Ranking: 41

Riskbank Index

Low Risk Short Term Apr. 12, 2013 Dec 31, 2012

644 571

760

1Q12 4Q12 1T13

R$ m

illio

n

16/20

Capital Market

Total Shares and Free Float

Number of shares as of March 31,2013

Type Corporate

Capital Controlling

Group Management Treasury Free Float %

Common 36,945,649 20,743,333 277,307 - 15,925,009 43.1%

Preferred 26,160,044 619,026 60,125 734,515 24,746,378 94.6%

TOTAL 63,105,693 21,362,359 337,432 734,515 40,671,387 64.4%

Share Buyback Program

The following Stock Option Plans, approved for the Company’s executive officers and managers, as well as

individuals who provide services to the Company or its subsidiaries, had the following balances on March 31,

2013:

Quantity Stock Option Plan

Date of Approval

Grace Period Term for Exercise

Granted Exercised Extinct Not Exercised

I 03.26.2008 Three years Five years 2,039,944 37,938 215,967 1,786,039

II 04.29.2011 Three years Five years 1,840,584 - 326,048 1,514,536

III 04.29.2011 Five years Seven years 1,850,786 - - 1,850,786

IV 04.24.2012 Up to five years Five years 605,541 - 14,745 590,796

6,336,855 37,938 556,760 5,742,157

The aforementioned Stock Options Plans are filed in the IPE system of the Securities and Exchange Commission

of Brazil (CVM) and are also available in the Company’s IR website.

Remuneration to Shareholder

In the first quarter of 2013, the Bank neither provisioned nor paid interest on equity, calculated based on the

Long-Term Interest Rate (TJLP) and calculated towards the minimum dividend for fiscal year 2013. The Board of

Directors will, by the end of the year, study the possibility of early payment of interest on equity after

considering the results and the tax efficiency of such payment.

Share Performance

The preferred shares of BI&P (IDVL4), listed in the Level 2 Corporate Governance segment of BM&FBOVESPA,

closed March 2013 at R$7.49, for market cap of R$467.2 million, including the shares existing on March 31, 2013

and excluding treasury stock. The price of IDVL4 shares dropped 5.8% in the quarter and 12.9% (11.6%

adjusted for earnings) in the 12 months ended in March 2013. The Bovespa Index (Ibovespa) dropped 7.5% in

the quarter and 12.6% in relation to 1Q12. At the end of the quarter, the price/book value (P/BV) was 0.94.

17/20

Share Price evolution in the last 12 months

Liquidity and Trading Volume

The preferred shares of BI&P (IDVL4) were traded in 100% of the sessions in the quarter and 92.6% of the 243

sessions in the past 12 months. The volume traded on the spot market in the quarter was R$2.3 million,

involving 294,000 IDVL4 shares in 454 trades. In the 12 months ended in March 2013, the volume traded on the

spot market was R$26.3 million, involving around 3.7 million preferred shares in 2,325 trades.

Shareholder Base

Position as of March 31, 2013

Qtt Type of Shareholder IDVL3 % IDVL4 % TOTAL %

5 Controlling Group 20,743,333 56.1% 619,026 2.4% 21,362,359 33.9%

6 Management 277,307 0.8% 60,125 0.2% 337,432 0.5%

- Treasury - 0.0% 734,515,00 2.8% 734,515 1.2%

39 National Investors 1,201,090 3.3% 8,471,079 32.4% 9,672,169 15.3%

13 Foreign Investors 4,891,304 13.2% 13,980,344 53.4% 18,871,648 29.9%

6 Corporate - 0.0% 6,712 0.0% 6,712 0.0%

288 Individuals 9,832,615 26.6% 2,288,243 8.7% 12,120,858 19.2%

357 TOTAL 36,945,649 100.0% 26,160,044 100.0% 63,105,693 100.0%

18/20

Balance Sheet

Consolidated R$ thousand

Assets 03/31/12 12/31/12 03/31/13

Current 3,811,194 3,063,804 3,295,573

Cash 25,215 18,250 64,521

Short-term interbank investments 617,066 429,535 546,759

Open market investments 559,764 377,495 518,490

Interbank deposits 57,302 52,040 28,269

Securities and derivative financial instruments 1,281,882 671,587 718,515

Own portfolio 615,536 473,468 515,238

Subject to repurchase agreements 524,128 26,654 51,598

Linked to guarantees 129,701 150,415 127,461

Subject to the Central Bank - - -

Derivative financial instruments 12,517 21,050 24,218

Interbank accounts 3,337 938 11,996

Loans 1,294,343 1,495,533 1,354,555

Loans - private sector 1,316,621 1,515,490 1,451,470

Loans - public sector - - -

(-) Allowance for loan losses (22,278) (19,957) (96,915)

Other receivables 538,250 390,712 545,482

Foreign exchange portfolio 408,036 363,445 508,913

Income receivables 1,136 67 43

Negotiation and intermediation of securities 34,381 14,356 27,444

Sundry 100,282 17,300 13,909


(-) Outras provisões - - -

Other assets 51,101 57,249 53,745

Other assets 52,183 59,695 50,248

(-) Provision for losses (2,780) (4,277) -

Prepaid expenses 1,698 1,831 3,497

Long term 719,321 906,467 907,312

Short-term interbank investments - - -

Open market investments - - -

Interbank deposits - - -

Marketable securities and derivative financial instruments 27,918 59,737 51,163

Own portfolio 52 42 42

Subject to repurchase agreements - - -

Linked to guarantees - - -


Interbank Accounts 4,784 4,083 -

Loans 556,306 693,561 625,129

Loans - private sector 625,260 756,459 737,581

Loans - public sector - - -


Other receivables 129,823 148,536 199,332

Credit guarantees honored - 778 -

Trading and Intermediation of Securities 536 524 517

Sundry 134,501 156,024 204,788


Other rights 490 550 31,688

Permanent Assets 52,498 51,711 56,236

Investments 24,578 24,980 29,403

Subsidiaries and Affiliates 22,892 23,294 27,717

Other investments 1,842 1,842 1,842

(-) Loss Allowances (156) (156) (156)

Property and equipment 13,739 13,648 14,077

Property and equipment in use 1,210 1,210 1,210

Revaluation of property in use 2,634 2,634 2,634

Other property and equipment 18,440 19,660 20,481

(-) Accumulated depreciation (8,545) (9,856) (10,248)

Intangible 14,181 13,083 12,756

Goodwill 2,391 2,276 2,276

Other intangible assets 13,100 13,100 13,100

(-) Accumulated amortization (1,310) (2,293) (2,620)

TOTAL ASSETS 4,583,013 4,021,982 4,259,121

19/20


Liabilities 03/31/12 12/31/12 03/31/13

Current 2,984,718 2,123,097 2,512,472

Deposits 982,842 839,973 928,651

Cash deposits 47,964 56,145 79,284

Interbank deposits 126,365 97,867 91,336

Time deposits 808,513 685,961 758,031

Other - - -

Funds obtained in the open market 1,058,390 241,904 193,228

Own portfolio 520,776 26,745 51,699

Third party portfolio 175,021 106,200 53,211

Unrestricted Portfolio 362,593 108,959 88,318

Funds from securities issued or accepted 296,488 376,325 497,095

Agribusiness Letters of Credit, Real State Notes & Bank Notes 296,488 376,325 497,095

Interbank accounts 327 - 180

Receipts and payment pending settlement 327 - 180

Interdepartamental accounts 19,724 9,168 15,741

Third party funds in transit 19,724 9,168 15,741

Borrowings 362,521 388,626 396,399

Foreign borrowings 362,521 388,626 396,399

Onlendings 95,761 119,575 125,570

BNDES 58,487 77,426 83,659

FINAME 37,274 42,149 41,911

Other liabilities 168,665 147,526 355,608

Collection and payment of taxes and similar charges 835 509 287

Foreign exchange portfolio 72,021 46,177 206,208

Taxes and social security contributions 3,563 4,682 4,156

Social and statutory liabilities 1,750 10,320 2,500

Negotiation and intermediation securities 63,956 70,082 74,364


Sundry 8,490 8,152 14,581

Long Term 1,006,412 1,310,648 1,247,172

Deposits 808,429 1,028,553 992,003

Interbank Deposits 1,080 110 58

Time deposits 807,349 1,028,443 991,945

Funds from securities issued or accepted - 29,751 33,503

Agribusiness Letters of Credit, Real State Notes & Bank Notes - 29,751 33,503

Loan obligations 45,230 - -

Foreign loans 45,230 - -

Onlending operations - Governmental Bureaus 144,477 215,876 196,525

Federal Treasure 9,980 8,407 7,702

BNDES 61,639 118,477 101,588

FINAME 71,873 88,780 87,017

Other Institutions 985 212 218

Other liabilities 8,276 36,468 25,141

Taxes and social security contributions 6,297 29,598 18,468

Derivative financial instrument 213 2,620 2,420

Sundry 1,766 4,250 4,253

Future results 1,378 1,036 1,031

Shareholders' Equity 590,505 587,201 498,446

Capital 572,396 572,396 572,396

Capital Reserve 8,248 14,886 17,565

Revaluation reserve 1,377 1,340 1,327

Profit reserve - 3,512 (87,860)

(-) Treasury stock (5,859) (5,859) (5,859)

Asset valuation Adjustment 12,578 - -

Accumulated Profit / (Loss) 1,765 - -

Minority Interest - 926 877

TOTAL LIABILITIES 4,583,013 4,021,982 4,259,121

20/20

Income Statement


1Q12 4Q12 1Q13

Income from Financial Intermediation 161,778 123,742 87,588

Loan operations 70,197 62,343 55,972

Income from securities 68,606 28,626 19,626

Income from derivative financial instruments (3,746) 15,554 1,960

Income from foreign exchange transactions 26,721 17,219 10,030

Expenses from Financial Intermediaton 125,348 83,055 198,223

Money market funding 85,303 56,444 53,208

Loans, assignments and onlendings 25,647 18,756 11,631

Allowance for loan losses 14,398 7,855 133,384

Gross Profit from Financial Instruments 36,430 40,687 (110,635)

Other Operating Income (Expense) (27,151) (33,835) (33,887)

Income from services rendered 6,590 6,747 6,451

Income from tariffs 199 193 172

Personnel expenses (22,738) (23,700) (26,373)

Other administrative expenses (13,123) (13,331) (13,371)

Taxes (3,705) (4,326) (3,600)

Result from affiliated companies 1,544 991 787

Other operating income 4,971 5,473 3,204

Other operating expense (889) (5,882) (1,157)

Operating Profit 9,279 6,852 (144,522)

Non-Operating Profit 2,884 (1,616) (669)

Earnings before taxes ad profit-sharing 12,163 5,236 (145,191)

Income tax and social contribution (4,979) 220 59,189

Income tax 579 (4,553) 6,632

Social contribution 415 (2,722) 4,057

Deferred fiscal assets (5,973) 7,495 48,500

Statutory Contributions & Profit Sharing (2,139) (1,831) (5,431)

Net Profit for the Period 5,045 3,625 (91,433)

1q13 earnings release report

Investor Relations