4q11 results conference call

Earnings Conference Call

4Q11 and 2011

Content

2011 Events and Highlights Page 3

2011 Key Figures Page 4

Extraordinary Revenues Page 5

Product and Revenue Diversification Page 6

Credit Portfolio Page 7

Credit Portfolio Profile Page 8

Credit Portfolio Quality Page 9

2/18Investor Relations | 2011 |

Hedging Desk Page 10

PINE Investimentos Page 11

Funding Page 12

Funding and Credit Portfolio Maturities Page 13

Capital Adequacy Ratio (BIS) Page 14

Solid Balance Sheet Page 15

2011 Guidance Page 16

2012 Guidance Page 17

2011 Events and HighlightsMarket Recognition.

Two-notch upgrade on global scale by S&P to BB+.

Four-notch upgrade on national scale by S&P to brAA.

Capital increase: German bank DEG buys a 2.9% stake in PINE’s capital.

US$ 25-million, 10-year funding transaction with Proparco in December 2011.

First financial institution controlled by Brazilian shareholders to raise funding in Islamic format, in theamount of US$ 37.5 million from Saudi Arabia-based Al Rajhi Bank, booked in 1Q12.


Syndicated A/B Loan, globally coordinated by IIC, in January, 2011, amounting to US$106 million.

High credit coverage, liquidity and capital ratios, as well as a positive liquidity gap.

Ranked 2nd largest commodities NDF provider for clients and 13th largest derivatives provider in Cetip’sranking.

13th largest credit provider to companies and 12th largest credit provider to large companies based onExame magazine’s “Maiores e Melhores” guide.

“Most green bank” in Latin America and Caribbean according to International Finance Corporation(IFC).

2011 Key FiguresImprovement in KPIs in the period…

(*) Includes private securities

5,747 6,921

Dec-10 Dec-11

Expanded Corporate Credit Portfolio*

(R$ Million)

20.4%

5,589

6,600

2010 2011

Total Funding(R$ Million)

18.1%

2.5%

3.6%

Dec-10 Dec-11

Corporate Credit Coverage

110 bps


867.1

1,015.1

Dec-10 Dec-11

Shareholders' Equity(R$ Million)

17.1%

14.0%

17.2%

2010 2011

ROAE

320 bps

Dec-10 Dec-11 2010 2011Dec-10 Dec-11

118.3

161.5

2010 2011

Net Income(R$ Million)

36.6%

Successful outcome in lawsuit questioning the Cofins tax calculation base.

PINE used the bulk of these funds to create extraordinary and additional provisions in various lines of itsbalance sheet, making it even more solid.

Extraordinary Revenues...with extraordinary revenues directed to the strengthening of the balance sheet...


Future Impacts:

� Cofins tax calculation base is now smaller, yielding quarterly gross savings of around R$ 3.0 million.

� Positive effect on the net working capital (current assets – current liabilities)

Product and Revenue Diversification ...with contributions from all business lines, as a result of the strategy of complete service to clients.

Clients with more than one Product Penetration Ratio – Clients with more than one Product

35%47%

59%

65%53%

41%

More than 1 product 1 product

2.42.9 3.0


Corporate Revenues Breakdown

Dec-09 Dec-10 Dec-11 Dec-09 Dec-10 Dec-11

Corporate Credit67.0%

Hedging Desk 22.9%

Treasury7.3%

PINE Investimentos

2.9%

2010

Corporate Credit63.7%

Hedging Desk 24.7%

Treasury8.6%

PINE Investimentos

3.0%

2011

Credit Portfolio

Corporate credit portfolio expanded 20.4% in 12 months

Credit portfolio continues to expand...

2,703 2,821 2,792 3,251 3,358 3,132 3,126 3,300 3,286

- - -

- -71 122

251 297

176 242 455

629 833 871 902

872 873

511 634

842

827

1,022 1,117 1,372

1,534 1,687

728 764

705

558

534 601

751

746 777

Corporate Credit Breakdown (R$ Million)

Trade finance

Bank Guarantees

Onlendings

Private Securities*

4,1184,462

4,7945,265

5,7475,792

6,273

6,7036,920


Corporate loan portfolioincreases its share of thetotal credit portfolio to98.9%

(*) Includes debentures, CRIs and hedge fund shares

(**) Includes credit to companies, Debentures, remaining retail portfolio and acquired portfolio from financial istitutions

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11

Working Capital

4,7

31

4,9

60

5,1

88

5,6

01

6,0

16

6,0

22

6,4

64

6,8

29

7,0

21


Total Credit Portfolio **(R$ Million)

Credit Portfolio Profile... growing in a diversified manner, both in sectors and products...

Credit Portfolio by Industry Geographic Distribution

Construction9%

Electric and Renewable Energy8%

Agriculture7%

Foreign Trade6%

Transportation and Logistics

6%

Meatpacking4%

Food Industry3%

Telecom3%

South 6%

Northeast5%

MidWest10%

North1%


Sugar and Ethanol19%

Infrastructure10%

3%

Specialized Services3%

Metal and Mining3%

Vehicles and Parts3%

Beverages and Tobacco

2%

Financial Institutions

2%

Chemicals2%

Other10%

Southeast78%

6%

Credit Portfolio Quality

Credit Portfolio Quality – December 2011 Non Performing Loans > 60 days

... with quality, collateral and increased credit coverage.

AA-A59.0%

B28.6%

C8.5%

D-E1.4%

F-H2.5%

0.7%0.7%

0.5%

1.1%1.0%

0.1%

0.4%

0.2%

0.5%0.4%

Contracts Overdue

Installments Overdue


Total Credit Coverage Collaterals

2.5%2.9%

3.6%

Dec-10 Sep-11 Dec-11

110 bps

70 bpsProducts Pledge46%

Receivables31%

Property Pledge18%

Investments3%

Guarantees2%

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11

Hedging Desk

Client Notional Derivatives Portfolio by Market Client Notional Derivatives Portfolio by Industry

PINE is the 2nd largest provider of commodities NDFs for clients*.

December 31st, 2011

Commodities8%

Fixed Income

31%

Currencies61%

Sugar and Ethanol19%

Foreign Trade12%

Transportation and Logistics

10%

Beverages and Tobacco

9%Metal and Mining

8%

Textile and Apparel

5%

Electric and Renewable Energy5%

Construction2%

Meatpacking2%

Infrastructure1%

Other6%


Market Segments Portfolio Profile

Notional: R$3.7 billion

Scenario on December, 31st :

Duration: 273 days

Mark-To-Market : R$157 million

Stress Scenario (Dollar: +20% and Commodities Prices: -30%):

Stressed MTM: R$333 million

*Source: Cetip Report of December.

Fixed Income: Fixed, Floating, Inflation, Libor

Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar, Spot

Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn,Cotton, Metals, Energy

Agriculture21%

PINE InvestimentosCreating value to clients and optimizing the Bank's use of capital

Market Segments Revenues (R$ Million)

Capital Markets: Structuring, securities placements,structured operations

Advisory

Investment Management: Fixed Income, Credit HedgeFunds, Exclusive Mandates, Portfolio Management 12,771

14,927

2010 2011

16.9%


Selected Transactions in 2011

R$25,000,000.00

June

Coordinator

Debentures and Subscription Bonus

R$242,400,000.00

June

Leader Coordinator

Debentures andICVM 476

Issuer

May

Co-Manager

US$300,000,000.00Global Medium Term Note Program

US$ 75,000,00011.50% Senior Secured Notes due 2016

R$80,000,000.00

June

Debentures

Leader Coordinator

Issuer

R$ 30,000,000.00

December

Debentures andICVM 476

Issuer

2010 2011

FundingFunding is growing with quality and diversity...

1,463 1,530 1,114 1,287 1,253

1,196 91 85 175

198 214

218

212 228 250

39 50 36

46 42

41

53 66 112

206 248 201

224 320

272 210 165

106

- --

-21

33

247 256 281

176 242

453

626 829

867

898 867 867

419 330

249

192

152

125

92 71 56

525 448

405

413 377

435

596 814 753

230 239

227

200 160

282

267 310 353

77 87 151

166 158

172

102

86 250

75 276 203

194 194

201

220

237 246

Funding Mix (R$ Million)

International Capital Market

Private Placements / Others

Multilateral Lines

Trade Finance

Loan Assignments

BNDES

Local Capital Markets

Interbank deposits

5,5895,375

4,8714,6344,531

5,480

6,0276,319

6,600


Islamic Funding(December, 2011)

US$37.5 Million1 year tenor

Multilateral Loan(December, 2011)

US$25.0 Million10 years tenor

1,570 1,566 1,646 1,654 1,592 1,720 1,845 1,965 2,130

1,123 1,064 1,124 1,463 1,530 1,114

1,287


Interbank deposits

Demand deposits

Individuals

Corporate Clients

Institutional

CREDIT FUNDING

BNDES BNDES

Trade Finance Trade Finance

Deposits

Working Capital, PrivateSecurities* And Cash

Letras Financeiras

Offshore Funding

Asset Liability Management... posting a 4-month positive gap between credit and funding maturities...

Matching of Transactions

89%

88%

82%

80%

76%

Credit to Total FundingRatio


ALM

Offshore Funding

Average Maturity

Credit: 14 months

Funding: 18 months

R$ million

-

3,1

93

1,5

10

1,5

21

383

119

112

1,9

43

1,7

90

1,5

47

764

388

No maturity Up to 3 months

(includes Cash)

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

More than 5 years

Credit Funding


* Includes debentures, CRIs, eurobonds and hedge fund shares

Capital Adequacy Ratio (BIS)

15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2%15.1% 14.3%

0.5%0.5% 3.9% 3.6%

3.6% 3.7% 3.4%

4.5%4.2%

BISTier II Tier I

15.6%14.9%

18.5% 18.4% 17.4%17.1% 16.6%

11% MinimumRegulatoty Capital

19.6%18.5%

...with the BIS ratio ending the period at 18.5%


15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2%15.1% 14.3%


R$ thousand BIS Ratio

(%)Tier I 1,016,629 14.3%

Tier II 297,045 4.2%

Total 1,313,674 18.5%

Balance Sheet StrengthIn summary, PINE has buffers of liquidity, capital and credit portfolio coverage to escalate its business and balance sheet consistently

Positive Liquidity GapCredit Coverage Ratio

18 18 19

18 18

15 16

15 15 14

Funding Average Maturity (months)

Credit Average Maturity (months)

2.5

%

2.7

%

2.7

%

2.9

% 3.6

%


Cash / Time DepositsCapital


17.4

%

17.1

%

16.6

%

19.6

%

18.5

%


Regulatoty Capital 11% Minimum Regulatoty Capital


43% 42% 42% 41% 41%


Guidance 2011

Guidance Actual

Corporate Credit Portfolio 20% - 25% 20.4%

Personnel and Administrative Expenses 5% - 10% 22.6%

PINE achieved its key guidance targets for 2011...


Personnel and Administrative Expenses 5% - 10% 22.6%

NIM 5.5% - 7.5% 6.4%

Corporate ROAE 17% - 20% 17.5%

Guidance 2012PINE is ready to capture 2012's opportunities, maintaining the focus on an adequate risk return balance.

Guidance

Corporate Credit Portfolio 17% - 22%

Personnel and Administrative Expenses 8% - 12%


Personnel and Administrative Expenses 8% - 12%

NIM 5.5% - 7.5%

Corporate ROAE 17% - 20%

Investor Relations

Norberto Zaiet Junior

CFO

Nira Bessler

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager


This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of PINE. These aremerely projections and, as such, are based exclusively on the expectations of PINE’s management concerning the future of the business and its continued access to capital to fund the Company’s businessplan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry,among other factors and risks disclosed in PINE’s filed disclosure documents and are, therefore, subject to change without prior notice.


Alexandre Cavalcanti


Phone: +55-11-3372-5553

www.bancopine.com.br/ir

[email protected]

4q11 results conference call

Economy & Finance