1q12 earnings conference call

Earnings Conference Call

1Q12

2/15 Investor Relations | 1Q12|

Content

1Q12 Events and Highlights Page 3

1Q12 Key Figures Page 4

Product and Revenue Diversification Page 5

Credit Portfolio Page 6

Credit Portfolio Profile Page 7

Credit Portfolio Quality Page 8

Hedging Desk Page 9

PINE Investimentos Page 10

Funding Page 11

Asset & Liability Management Page 12

Capital Adequacy Ratio (BIS) Page 13

2012 Guidance Page 14


1Q12 Events and Highlights

In April, PINE carried out its first offering of financial bills known as Letras Financeiras, issuing R$313.2

million in two-year notes.

Highly liquid balance sheet with a strong cash position of R$1.2 billion, which corresponds to 34% of

time deposits.

Positive liquidity gap between the credit and funding portfolios of 3 months: 14 months for credit and

17 months for funding. The Bank has maintained this positive gap for 24 months.

Positive revenue contributions from all business lines in the quarter: 57.3% from Corporate Credit,

24.3% from Hedging Desk, 8.2% from Treasury, with the highlight for PINE Investimentos, which

contributed 10.2%.

Ranked by CETIP among the 14 largest banks in derivative transactions for clients and first in

commodity NDFs for clients.


1Q12 Key Figures The main indicators showed improvement in the period…

5,823 7,300

Mar - 11 Mar - 12

Expanded Corporate Credit Portfolio1

25.4 %

1 Includes guarantees and private securities

5,322 6,421

Mar - 11 Mar - 12

Total Funding

20.7%

879 1,029

Mar - 11 Mar - 12

Shareholders´ Equity

17.1 %

31 47

1Q11 1Q12

Net Income

51.6%

15.2% 19.5%

1Q11 1Q12

430 bps

ROAE

2.7% 3,5%

Mar - 11 Mar - 12

Corporate Credit

Coverage

80 bps

R$ Millions


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

Corporate Revenues Breakdown

2.5

2.7

3.0

Mar - 10 Mar - 11 Mar - 12

40% 44% 58%

60% 56% 42%

Mar - 10 Mar - 11 Mar - 12

More than 1 product 1 product

Corporate Credit69.0%

Hedging Desk27.1%

Treasury3.4%

PINE Investimentos

0.5%

1Q11

Corporate Credit57.3%

Hedging Desk24,3%

Treasury8.2%

PINE Investimentos

10.2%

1Q12


Credit Portfolio The portfolio continued to grow, +5.3% QoQ and +25.4% YoY…

¹ Includes debentures, CRIs, and hedge fund shares

R$ Millions

2,821 2,792 3,251 3,358 3,132 3,126 3,300 3,286 3,370

71 122 251 297 342

261 472

644 846

881 912 881 883 883

634 842

827

1.022 1.117 1.372

1.534 1.687 1.684

840

722

569

547 622

782

765 782

1.021

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

Trade finance

Guarantees

BNDES Onlending

Private Securities

Working Capital

4,556 4,828

5,292

5,773 5,823

6,314 6,732

6,935 7,300

Expanded Corporate Credit Portfolio1


Credit Portfolio Profile

Credit Portfolio by Industry Segments Geographic Distribution

... growing in a diversified manner…

Southeast76%

South7%

Northeast5%

Midwest10%

North2%

Sugar and Ethanol20%

Construction9%

Agriculture8%

Infrastructure8%

Electric and Renewable

Energy8%

Foreingn Trade5%

Transportation and Logistics

5%

Food Industry4%

Specialized Services

4%

Meatpacking3%

Metal and Mining3%

Beverages and Tobacco

3%

Vehicles and Parts3%

Chemicals2%

Telecom2%

Financial Instituions

2%Materials of Constrution and

Decoration

2%

Others9%


Credit Portfolio Quality

Credit Portfolio Quality – March 2012

Total Credit Coverage

Non Performing Loans > 90 days

Collaterals

... with quality, collaterals, and adequate credit coverage.

2.7% 3.6% 3.5%

Mar - 11 Dec - 11 Mar - 12

80 bps

- 10 bps

AA-A52.7%

B32.7%

C11.1%

D-E1.5%

F-H2.0%

Products Pledge

44%

Receivables31%

Properties Pledge

20%

Investments3%

Guarantees2%

0.6%

0.5% 0.5%

0.7% 0.7%

0.3%

0.2%

0.3% 0.3%

0.2%

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

Contracts Overdue

Installments Overdue


Commodities8%

Fixed Income

30%

Currency62%

Hedging Desk

Client Notional Derivatives Portfolio by Market

Market Segments

Notional Value and (MtM)

Portfolio Profile

PINE is the 1st player in terms of commodities to clients¹.

Notional: R$4.3 billion

Scenario on March, 31st

Duration: 198 days

Mark-To-Market : R$126 million

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

Stressed MTM: R$354 million

March 31st, 2012

*Source: Cetip Report, March 2012.

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$ Millions

3,428 3,457 3,709 3,712 4,287

106 84

178 157 126

236 224

358 354 354


Notional Value

MtM

MtM Stressed


0 1

16

1Q11 4Q11 1Q12

-

233

317

1Q11 4Q11 1Q12

PINE Investimentos

Volume of Underwriting Transactions

Revenues

Creating new values to clients and optimizing the Bank's use of capital.

Capital Markets: Structuring and Distribution of

Fixed Income Transactions.

Financial Advisory: Project Finance, M&A, and

hybrid capital transactions.

Assets under Management: Fixed Income, Credit

Funds, Exclusive Mandates, and Portfolio

Management.

R$ Millions

R$ Millions


Funding Diverse sources of funding…

R$ Millions

1,566 1,646 1,654 1,592 1,720 1,845 1,965 2,130 2,128

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

1,287 1,253 1,196 1,186 85

175

198 214

218

212 228 250 281

248 201

224 320

272 210 165 106 161

50 36

46 42

41 53 66 112 31

242 453

626 829

867 898 867

867 868

-

-

-

21

33

247 256 281 291

276

203

194

194

201

220 237 246 233

239

227

200

160 282

267 310 353 276

87

151

166

158 172

102 86 250

125

448

405

413 377

435

596 814

753 841


Funding Breakdown Trade Finance

Private Placements

Multilateral Lines

International Capital

Markets

Local Capital Markets

BNDES

Demand Deposits

Interbank Time Deposits

High Net Worth Individual

Time Deposits

Corporate Time Deposits

Institutional Time

Deposits

5,182

4,622

4,304

5,437 5,322

5,936

6,248 6,544 6,421


70% 63% 59%

30% 37% 41%

Mar - 10 Mar - 11 Mar - 12

Others

Deposits

5,322 4,304 6,421

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

ALM Deposits vs. Total Funding

Matching of Transactions

CREDIT FUNDING

BNDES BNDES

Trade Finance Trade Finance

Deposits

Working Capital, Private Securities* And Cash

Letras Financeiras

Offshore Funding * Includes debentures, CRIs, eurobonds, and hedge fund shares

88% 82%

80% 76%

81%


Credit Exposure to Total Funding Ratio

R$ Millions

-

2,668

1,969

1,594

435

109 31

1,608

2,336

1,432

915

144

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

R$ Millions


Capital Adequacy Ratio (BIS) BIS ratio ends the period at 16.4%.

14.4% 14.6% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3%

0.5%

3.9% 3.6% 3.6% 3.7% 3.4%

4.5% 4.2%

3.1%


Tier II Tier I

14.9%

18.5% 18.4% 17.4% 17.1%

Minimum Regulatory

Capital (11%)

16.6%

19.6% 18.5%

16.4%

R $ million Bis R atio ( % )

Tier I 1,025 13.3%

Tier II 237 3.1%

Total 1,262 16.4%


Guidance 2012 PINE is ready to capture 2012's business opportunities, and reaffirms the guidance for 2012.

Guidance

Expanded Corporate Credit Portfolio 17% - 22%

Personnel and Administrative Expenses 8% - 12%

NIM 5.5% - 7.5%

ROAE 17% - 20%


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 are

merely 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 business

plan. 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.

Investor Relations

Norberto Zaiet Junior

COO

Susana Waldeck

CFO

Raquel Varela

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager

Fone: +55-11-3372-5343

www.pine.com.br/ri

[email protected]

http://www.bancopine.com.br/ri

mailto:[email protected]

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