banco pine - institutional presentation 2q12

Institutional Presentation2Q122Q12

Summary

History and ProfilePINEHistory

Business StrategyCompetitive LandscapeFocus on the ClientCorporate CreditCorporate CreditFICCPINE InvestimentosPillarsRating Upgrades

Highlights and Results

Corporate Governance and PINE4Organizational Structure Organizational Structure Corporate GovernanceCommitteesDividends and Interest on own Capital

Appendix

2/34Investor Relations | 2Q12 |

History and Profile

PINESpecialized in providing financial solutions for wholesale clients…

Credit Portfolio by Annual Client RevenuesJune 30th, 2012

Up to R$ 150million

> R$ 1 billion

R$ 150 toR$500million

17%

billion56%

R$ 500 million to

R$ 1 billion

12%

Profile

Focused on establishing long-term relationships Business is structured along four primary business lines:

15%

g g p

Profound knowledge and product penetration

g p y

• Corporate Credit: credit and financing products• FICC: instruments for hedging and risk

management• PINE I ti t I t t B ki d• PINE Investimentos: Investment Banking and

Investment Management• Distribution: Funding and investment solutions

for foreign and local investors


History...with extensive knowledge of Brazil’s corporate credit cycle.

1939Pinheiro Family

founds End of 2007

August, 2012Subscription of PINE’s capital

by DEG ,Proparco1,Controlling shareholder and management

1

October, 2011Subscription of PINE’s capital by DEGfounds

Banco Central do Nordeste

October, 2007Creation of the Hedging Desk

Focus on expanding the Corporate Banking franchiseDiscontinuation of the payroll-deductible loan business

Subscription of PINE s capital by DEG

827 825

867

1,015 1,053

1975Noberto Pinheiro

2005Noberto Pinheiro becomes

May, 2007Creation of PINE Investimentos product line

and start up of Cayman branch

801 827 825

Noberto Pinheiro becomes one of

BMC’s controlling shareholders

PINE’s sole shareholder

Corporate Credit Portfolio (R$ Millions)

Shareholders' Equity (R$ Millions) 4 181

5,747

6,921 7,478

209

335

1997

q y ( $ )

155 184 222 341 521 620 755 663 761 1,214

2,854 3,070

4,181

18 62

121 126 140 136 152 171 209

Noberto and Nelson Pinheiro sell their stake in BMC and

found PINE

Devaluation Nasdaq Sept. 11 Brazilian SubprimeAsian Russian European

155 184 222 341 521 620 663

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

Jun-

12


March, 2007IPO

of the realNasdaq Sept. 11 Brazilian

Elections(Lula)

SubprimeAsian Crisis

Russian Crisis

European Community

May, 201215 years1 Subject to precedent conditions and final negotiations

Business Strategy

Competitive LandscapePINE serves a niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs.understands their needs.

Market

Consolidation of the banking sector has

Large Multi-Services banks

Consolidation of the banking sector hasdecreased the supply of credit lines and financialinstruments for corporates

Foreign banks are in a deleveraging process

100% Corporate

g g g p

PINE

100% focused on providing complete service to companies, offering customized products

.

Corporate & SME

Full service Bank – Credit, Hedging, andInvestment Bank products – with room forgrowth

Foreign and Investment Banks

Corporate & SME

SME & Retail

~10 clients per officer

Competitive Advantages: Focus

Retail

Fast response: Strong relationship withclients, with the credit committeemeeting twice a week and response timesto clients of no more than one week

S i li d i


Specialized services Tailor-made solutions Product diversity

Focus Always on the ClientThe bank develops a strategy of product diversity, tailored to meet the needs of each client.

CDIsCDs

LCIs

CCBs PrivatePricing of Assets and

Liabilities

Fixed Income

Currencies

CDBs

RDBs

LCAs

Eurobonds

PrivatePlacements

Financial Letters

Local Currency

Liabilities

LiquidityManagement

Working Capital

Overdraft

Currencies

Commodities

Equities

DebenturesCRIs

TreasuryDistribution

Foreign Currency

Trading

Working CapitalUnderwriting

BNDES Onlending

Bank Guarantees

Compror

ACC/ACE

OverdraftAccounts

ClientsCorporate

Credit PINE

Investimentos

Capital Markets

Advisory

Local Currency

Onlending

Foreign Currency

Trade Finance

g

Advisory

Private Placements

Structured/ Investment

Management

BankGuarantees

Fixed Income Funds

ACC/ACE

Export Finance

Finimp

Letters of Credit

2,770 onlending

FICC

Fixed Income Currencies

Credit Funds

Structured/ProjectFinance

Structured/ ProjectFinance

StructuredFinance

Management

Funds

Portfolio Management

Swap NDFsStructured Swaps

Syndicated andStructured LoansCommodities


Options

Corporate CreditStrong track record and solid credit origination and approval process.

Actions Credit Committee

Meets twice a week – reviewing 20 proposals on average

Minimum quorum: 4 members - attendance of CEO or

Personalized, agile service, working closely with clientsand keeping a low client to account officer ratio: eachofficer handles ~10 economic groups on average. q

Chairman is mandatory

Members:Chairman of the Board

officer handles 10 economic groups on average.

Geographic coverage of clients, providing the bank withlocal and extremely up-to-date credit intelligence andinformation.

Chairman of the BoardCEOChief Operations OfficerChief Administrative OfficerChief Risk Officer

Established long term relationships with more than 600economic groups

Origination network is comprised of 11 branches dividedinto 14 origination platforms in Brazil’s major economiccenters

Participants:FICC Executive Director Credit Analysts

centers

More than 30 credit analysts, assuring that analysis isfundamentally driven and based on industry-specificintelligence

Credit Approval: Electronic Process

Other members of the Corporate Banking origination team

Efficient loan and collateral processes, documentation,and controls, which has resulted in a low NPL track record

pp

Origination OfficersOrigination Officers

Credit origination Credit analysis visit to clients data

Credit AnalystsCredit AnalystsRegional Heads of

Origination and Credit Analysis

Regional Heads of Origination and Credit

Analysis

Presentation to the Credit Committee

CRO, Executive Directors and Analysts

of Credit

CRO, Executive Directors and Analysts

of Credit

Centralized and unanimous

CREDIT COMMITTEE CREDIT COMMITTEE

Discussion on sizing collateral


Credit origination Credit analysis, visit to clients, data updates, interaction with internal

research team

Presentation to the Credit Committee Centralized and unanimous decision making process

Discussion on sizing, collateral, structure, etc.

FICCPINE is the 1st player in terms of OTC commodities NDF for clients¹…

Client Notional Derivatives Portfolio by Market Notional Value and MtMJune 30th, 2012

597

Notional Value MtM Stressed MtM

R$ millions

Fixed Income24% Currency

60%

256

224

358 354 354

Commodities16% 3,457 3,709 3,712 4,287 4,720

84 178 157 126

16%

Market Segments Portfolio Profile

Scenario on June 30th:Fixed Income: Fixed Floating Inflation Libor

, , , , ,

Jun-11 Sept-11 Dec-11 Mar-12 Jun-12

Scenario on June, 30th:

Duration: 249 days

Mark-To-Market: R$256 million

Fixed Income: Fixed, Floating, Inflation, Libor

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

Stress Scenario (Dollar: +31% and Commodities Prices: -30%):

Stressed MTM: R$597 million

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


1Source: Cetip Report, June 2012

PINE Investimentos… and #10th in Debt Capital Markets1 in Brazil.

Volume of Underwriting Transactions RevenuesR$ Millions R$ Millions

381

317 346 16

18

317

12

Selected Transactions

2Q11 1Q12 2Q12 2Q11 1Q12 2Q12

R$540,000,000M&A

R$115,000,000Project Finance

R$25,000,000

Certificate of Real EstateReceivables

R$100,000,000Promissory Notes (ICVM 476)

R$67,000,000Promissory Notes (ICVM 476)

Exclusive Advisor Exclusive Advisor Coordinator Coordinator Coordinator


March, 2012 May, 2012 May, 2012 May, 2012 June, 20121Source: Anbima

DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors.

Actions Funding

Responsible for serving investors, offering traditionalinvestments and also alternatives tied to the creditorigination platform capital markets and asset 5 902

6,933+50%

+17%

R$ Millions

origination platform, capital markets, and assetmanagement.

It counts on PINE’s expertise in structuring andintermediating fixed income transactions.

986

1,152

1,736

4,622

5,902 International

g

Divided by type of investors to provide tailor madesolutions.

3,636 4,750 5,197 Local

Family Offices

Market SegmentsInvestors

Jun-10 Jun-11 Jun-12

Local CurrencyT diti l i t t (l l d it h CDB/RDB/CDI

Individuals

Corporates

Asset Managers

Traditional investments (local deposits such as CDB/RDB/CDI,LCA/LCI)Senior and subordinated local notesDebt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs,CDCAs, among others)

Financial Institutions

Pension Funds

Foreign InvestorsForeign Currency

Time Deposits and CD – Certificate of DepositSenior and Subordinated bonds issued by PINE


Senior and Subordinated bonds issued by PINEDebt Capital Markets (CCB, Credit Fund, Bonds) – through CreditLinked Notes

PillarsStrategy supported by solid fundamentals, built and achieved over the years…

Strong and motivated teamAdequate capital structure

MeritocracyRight incentivesHighly qualified team

Capital Adequacy Ratio (BIS) of 15.9%Regulatory Capital: R$1.3 billionCapital increase announced and closer partnerships with DEG and Proparco will raise BIS to 17 5%with DEG and Proparco will raise BIS to 17.5%

Corporate clients

Strong relationship

Efficient funding structure

Longer average maturities: 16 months (Jun/12)g pCustomized serviceIn-depth knowledge of client needsProduct diversity

g g ( )Greater diversification of funding sourcesUSD25 million 10 year funding with ProparcoUSD106 million A/B Loan (Jan/11) with the IIC


Rating Upgrades...with market recognition and positive evaluation by rating agencies.

On December 7th, 2011:PINE’s rating in global scale, toBB+ from BB- (two notches)

On May 14th, 2012Foreign and Local Currency Long-Term IDR to 'BB' from 'BB'-

On August 23rd, 2012:PINE’s outlook upgraded to Positive

PINE’s rating in national scale, tobrAA from brA (three notches)

On August 23rd, 2011:Local currency rating, to brA from

National Long-Term Rating to'A+(bra)' from 'A(bra)'Viability rating upgraded to 'bb'from 'bb-'Banco Pine S.A. USD 125 millionLocal currency rating, to brA from

brA-Reaffirmed the Rating in foreigncurrency in BB-Revision from PINE’s outlook topositive

Subordinated notes to 'B+' from 'B'

positive

Fitch attributed this upgrade to thediversification of PINE's funding profile and itsgood assets and liabilities management,provided by the adequate match of the creditand funding books In addition the Agency

The agency based its ratings on the strongasset-quality, adequate liquidity, capital, andearnings. S&P also emphasizes the gradualfunding diversification, through foreignissuances securitizations and the recent

Moody's explained that the positive outlookreflects PINE’s profitability through a well-executed strategy, and which has ensuredearnings recurrence. The rating action alsocaptures the bank's improved fundingand funding books. In addition, the Agency

considered that the positive liquidity gapallied with the good cash position evidencesthe Bank's overall solid financial strength.According to the Agency, the Bank’s continuedincrease in fee income, mainly due to higher

issuances, securitizations, and the recentcapital increase subscribed by DEG.

captures the bank s improved fundingdiversification, well managed asset qualitymetrics and its good liquidity and capitalmanagement.


product penetration, is a good indicator of thesuccessful maintenance of profitability levels.

Highlights and Results

2Q12 Events and Highlights

Capital increase of approximately R$155 0 million The increase will take place starting with theCapital increase of approximately R$155.0 million. The increase will take place starting with theexecution, on this date, of a subscription agreement with DEG in the amount of R$30.0 million coupledwith an investment of R$93.7 million by the controlling shareholder and R$7.2 million by PINE’smanagement. In addition, the French agency Proparco approved the principle of an investmentamounting up to €10 million. These transactions will increase the BIS Ratio to 17.5%, an improvement of

i t l 160 b All t ti bj t t l t l d th d tapproximately 160 bps. All transactions are subject to regulatory approvals and other precedentconditions as announced in the Material Fact released today.

In April, PINE carried out its first offering of financial bills known as Letras Financeiras, issuing R$313.2million in two-year notes.

Highly liquid balance sheet with a strong cash position of R$1.4 billion, which corresponds to 38% of timedeposits.p

Positive liquid gap between the credit and funding portfolios of 3 months: 13 months for credit and 16months for funding. PINE has maintained this positive gap for over 2 years.

Positive contributions from all business lines in the quarter: 58.4% from Corporate Credit, 19.8% fromFICC, 11.5% from the Treasury, and PINE Investimentos contributed 10.3%, demonstrating recurrence in itsresults.

Ranked amongst the 15 largest banks in the Cetip derivatives ranking and 1st in terms of OTC commoditiesNDF for clients.


9th largest bank in Brazil offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine.

Capital IncreasePINE is honored with DEG’s trust and partnership with the announcement of another transaction and welcomes Proparco.welcomes Proparco.

The second equity investment by DEG in a Brazilian financial institution, both with PINE, and the first by Proparco in aLatin America financial institution.

Summary

In addition to the subscription made by DEG, of R$30.0 million, and by Proparco, of R$25.0 million, the capital increasealso includes the participation of the controlling shareholder and the senior management, for a total of R$100.8million.

Total of ~R$155 million

Premium on Shares: 15% over the average price of the last 60 days

Total Shares: 6,558,123 common shares and 4,352,590 preferred shares

BIS Ratio: to 17 5% 14 5% for Tier I and 3 0% for Tier II

The aforementioned transactions further strengthen the capital structure of PINE as well as the relationships with DEGand Proparco, and will allow the Bank to continue to expand its activities in a sustainable manner.

After approval by the Brazilian Central Bank the ownership structure will have the following composition:

BIS Ratio: to 17.5%, 14.5% for Tier I and 3.0% for Tier II

After approval by the Brazilian Central Bank, the ownership structure will have the following composition:

With Capital increase Common Preferred Total %Controlling Shareholder 58,444,889 15,595,863 74,040,752 67.5%Management - 5,591,947 5,591,947 5.1%Free Float - 30 005 788 30 005 788 27 3%Free Float - 30,005,788 30,005,788 27.3%

DEG - 5,005,068 5,005,068 4.6%Proparco - 1,750,700 1,750,700 1.6%Individuals - 3,382,393 3,382,393 3.1%Local Institutional Investors - 11,054,997 11,054,997 10.1%F i I t 8 812 630 8 812 630 8 0%


Foreign Investors - 8,812,630 8,812,630 8.0%Treasury - 125,000 125,000 0.1%Total 58,444,889 51,318,598 109,763,487 100%

2Q12 Financial HighlightsThe main performance indicators continued to show positive development in the period…

R$ Millions

Loan Portfolio¹

18.6%

Total Funding

17.5%

Shareholders’ Equity

17.9%

6,305 7,478 5,902 6,933 893 1,053 , ,

Jun 11 12

, ,

Jun 11 Jun 12Jun JunJun -11 -12Jun -11 -12 Jun -11 Jun -12

Net Income

Jun JunJun -11 -12

ROAE

140 bps

Credit Coverage

27.8%140 bps

130 bps

36 46 17.3% 18.7%2.7% 4.0%


2Q11 2Q12 2Q11 2Q12Jun-11 Jun-12¹ Includes debentures, CRIs, eurobonds and hedge fund shares

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

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

2.9

More than 1 product 1 product

2.860%44% 38%

2.6

40%56% 62%

Revenue MixJun-10 Jun-11 Jun -12

1H11 1H12

Jun-10 Jun-11 Jun-12

CorporateCredit63 5%

PINE Investimentos

5.5%

PINE Investimentos

10.3%

63.5%Treasury

3.3%

CorporateCredit58.4%

Treasury11.5%


FICC

27.7%

FICC

19.8%

Loan Portfolio1

The portfolio continued to grow, +2.4% QoQ and +18.6% YoY…R$ millions

T d fi6,732 6,935

7,300 7,478

1 684 1 599 533 622

772

756 782

1,021 1,154 Trade finance

Guarantes5,277

5,760 5,8236,305

,

881 883 883 821 827

1,022 1,117 1,372

1,534 1,687 1,684 1,599

704

555

533 622 Guarantes

Onlending BNDES

4,811

-

- -71 122

251 297 342 572

472

644 846 881 912

881 883 842

Onlending BNDES

Private Securities

2,792 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332

Private Securities

Working Capital

Jun-10 Set-10 Dez-10 Mar-11 Jun-11 Set-11 Dez-11 Mar-12 Jun-12

Working Capital


¹ Includes debentures, CRIs, eurobonds and hedge fund shares

Loan Portfolio Profile... in a diversified manner...

Loan Portfolio by Industry Segments Geographic Distribution

Midwest11%

North1 %

Sugar and Ethanol; 19%

Financial Institutions; 2%

Meatpacking; 2%

Telecom2%

Others; 9%

Northeast7%

ConstructionMetal and Mining; 3%

Food Industry; 3%

Chemicals; 3%

Institutions; 2%

Southeast73%

South8%

Construction10%

Electric and S i li d S i

Vehicles and Parts; 4%

Beverages and Tobacco; 4%

g

Renewable Energy; 9%

Agriculture; 9%

Infrastructure; 7%Foreign Trade; 5%

Transportation and Logistics; 5%

Specialized Services; 4%


Loan Portfolio Quality... with quality, collaterals, and adequate credit coverage.

Loan Portfolio Quality Non Performing Loans > 90 days

0.7% 0.7%Contracts Overdue

Installments Overdue

B36.9%

June 30th, 2012

0.5% 0.5%

0.6%

0 3% 0 3% 0 3%C

0.2%

0.3% 0.3%

0.2%

0.3%10.9%

D-E1.8%

F-H

Credit Coverage Collaterals


AA-A48.1%

2.3%

Products Pledge

46%Guarantees2%

+40 bps

+130 bps

Investments3%

2.7%3.6% 4.0%


Receivables26%

Properties Pledge

23%Jun -11 Mar-12 Jun-12

FundingDiverse sources of funding…

R$ millions

Trade Finance

234 250 118 596

814 753

841 1,089

Private Placements

Multilateral Lines

5 4375,902

6,2486,544 6,421

6,933

829 898 867 867 868 813 -21

33 247 256 281 291 553

194 194

185

205 237 246 233 295

227

200 160

282

267 310 353 276

234

151

166 158

155

84 86 250 125

118

405

413 377 435

596 International Capital Markets

Local Capital Markets

5,4375,182

4,622

5,322

1 463 1 530 1 114 1,287 1,253 1,196 1,186 1,228 175

198 214 218

212 228 250 281 223

201 224 320

272 210 165 106 161 194

36 46 42

41 53 66 112 31 33

453

626 829

867 898 867

-203 227 BNDES

Demand Deposits

b k i D i

1,646 1,654 1,592 1,720 1,845 1,965 2,130 2,128 2,153

1,124 1,463 1,530 1,114

,Interbank Time Deposits

High Net Worth Individual Time Deposits

Corporate Time Deposits, , 1,592

Jun-10 Sept-10 xDec-10 Mar-11 Jun-11 Sept-11 xDec-11 Mar-12 Jun-12

Corporate Time Deposits

Institutional Time Deposits


Asset & Liability Management... presenting a positive gap of 3 months between the credit and funding portfolios.

Matching of Transactions

CREDIT FUNDING 82% 80%76%

81%76%

Loan / Total Funding

BNDES BNDES

Trade Finance Trade Finance

Deposits

Working Capital, PrivateSecurities1 And Cash

Local & International Capital Markets

Private Placements/ Multilateral

6,4215,902 6,933ALM Deposits vs. Total Funding

/Lines

1 Includes debentures, CRIs, eurobonds, and hedge fund shares

R$ Millions


R$ Millions

39% 41% 45%

Others

,3,124

1,921 1,642 1,590

2,344

1,775

Credit Funding

61% 59% 55%

TotalDeposits

-

402 94 33

1,590

1,056

135


Jun-11 Mar-12 Jun-12

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

Capital Adequacy Ratio (BIS)BIS ratio reached 15.9%.

Tier II Tier IMinimum Capital Requirement (11%)

3.9% 3.6%3 6%

4.5%4.2%

18.5% 18.4%17.4% 17.1%

18.5%19.6%

16.4% 15.9% 17.5%16.6%3.6% 3.7% 3.4%

4.2%3.1% 3.3% 3.0%

14.6% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.5%

Jun -10 Sept-10 Dec -10 Mar-11 Jun -11 Sept-11 Dec -11 Mar-12 Jun -12 With Capital

Increase

R$ million BIS Ratio (%)

Tier I 1,055 12.6%

Tier II 277 3.3%

Total 1,331 15.9%


Total 1,331 15.9%

Guidance for 2012PINE is ready to continue growing with its clients, and reaffirms its guidance for 2012.

Guidance

Expanded Corporate Credit Portfolio 17% - 22%

P l d Ad i i i 8% 2%Personnel and Administrative Expenses 8% - 12%

NIM 5.5% - 7.5%

ROAE 17% - 20%


Corporate Governance and PINE4

Management StructureNon-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decision making process.making process.

Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann

BOARD

INTERNAL AUDIT COMPENSATION AUDIT COMMITTEEEXTERNAL AUDIT

Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann

Chairman Vice Chairman IndependentMember

External Member IndependentMember

IndependentMember

CEONoberto Pinheiro Jr

Tikara Yoneya COMMITTEE AUDIT COMMITTEEPWC

HUMAN RESOURCESSidney Vilhena

COO Norberto Zaiet

CROGabriela Chiste

CAOUlisses Alcantarilla

CFOSusana Waldeck

OriginationInvestment BankingSales & Trading

Asset & Liabilities Back OfficeLegal

ControllingAccountingTax Planning

Credit and F.I. ResearchCompliance & InternalControlsg

Research Macro / CommoditiesInternational

Collaterals ManagementSpecial SituationsMiddle Office

gITAccounts PayableOffice ManagementMarketingInvestor Relations

Market and Liquidity Risks


Corporate GovernancePINE commits to best corporate governance practices…

Three independent members and one external member on the Board of DirectorsThree independent members and one external member on the Board of DirectorsMailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo AbrilAntonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director ofBrazilian Banking AssociationBrazilian Banking AssociationGustavo Junqueira: Former Head of PINE Investimentos, Member of the Board of Directors atEZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica

São Paulo Stock Exchange (BM&FBovespa) Level 2 Corporate GovernanceSão 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 shares100% tag along rights for all shareholders, including non voting shares

Arbitration procedures for fast settlement of litigation cases

First Brazilian bank to release BR GAAP and IFRS quarterlyFirst Brazilian bank to release BR GAAP and IFRS quarterly


Committees…favoring collective decision making.

Main decisions are taken by committees: Board of Directors and a structure of specific committeesNon-stop exchange of knowledge, ideas, and informationTransparencyp y

45 days BOARD OF DIRECTORS

RISK COMMITTEE

AUDIT COMMITTEE

COMPENSATION COMMITTEE

CEO

Bi-annually Monthly45 days

COMMITTEES

Twice a week WeeklyMonthly Bi-monthly Every 2 monthsWeekly Monthly Quarterly On demand45 days

CREDITTREASURY

COMMITTEE ALCO

EXECUTIVE LITIGATIONHUMAN

RESOURCESINVESTMENT

BANKPERFORMANCE EVALUATION IT ETHICS

INTERNAL CONTROLS AND

COMPLIANCE


Dividends and Interest on Own CapitalPINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis.basis.

55

45

40

55

40

25 25

33 30

35

40

35

40

16

25 25

1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H121H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12


Appendix

Social Investment and ResponsibilityPINE supports and promotes the Brazilian culture and sports

Social

Instituto Alfabetização Solidária

CulturePaulo von Poser: exhibit of the painter Paulovon Poser, who is one of Brazil’s most prominentartists

Instituto Casa da Providência Quebrando o Tabu: documentary based on theanalysis from the former President of Brazil,Fernando Henrique Cardoso, on the fight againstdrugsAlém da Estrada: motion picture, whichreceived the award for best director in the 2010

SportsMinas Tênis Clube: training program forathletes

received the award for best director in the 2010Rio Festival

Responsible Credit

“Li f E i ” h B k d fi

Most Green Bank

“Lists of Exceptions”: the Bank does not financeprojects or those organizations that damage theenvironment, are involved in illegal laborpractices or produce, sell or use products,substances or activities considered prejudicial tosociety.y

System of environmental monitoring, financed bythe IADB and coordinated by FGV, and internally-produced sustainability reports for corporateloans.

Recognized by the International Finance Corporation(IFC), private agency programs of the World Bank as themost "green" bank as a result of its transactions underthe Global Trade Finance Program (GTFP) and its on


the Global Trade Finance Program (GTFP) and its onlending to companies focused on renewable energy andethanol.

Investor Relations

Noberto Pinheiro Jr.

CEOCEO

Susana Waldeck Norberto Zaiet Jr.

CFO COO

Raquel Varela

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager

Phone: +55-11-3372-5343

ir.pine.com.br

[email protected]


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

banco pine - institutional presentation 2q12

Documents

corporate credit portfolio

credit analysts

service bank credit

solid credit origination

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