cc 4 t15 eng

4Q15 Earnings ReleaseConference CallFebruary, 19th 2016

2/19Investor Relations | 4Q15 |

Highlights

Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 53% of time deposits.

Excess capital, with a BIS ratio of 15.0%, being 14.1% in Tier I Capital.

Loan portfolio coverage ratio above 5% as a result of a significant increase in provisions.

Relevant improvement in the operating income results QoQ.

Retraction of 12.6% in personnel and administrative expenses, even in an inflationary scenario.

Deleverage of the loan portfolio given the continuous worsening of the economic scenario.

Continuous liability management with a diversified portfolio and adequate terms.


1,256 1,181 1,163

Dec-14 Sept-15 Dec-15

Shareholders' Equity

-1.5%

-7.4%

8,5007,409

6,859


Total Funding

-7.4%-19.3%

9,826 7,691 6,933


Total Loan Portfolio1

-9.9%-29.4%

7,409 6,859

Sept-15 Dec-15

Total Funding

-7.4%

7,691 6,933

Sept-15 Dec-15

Total Loan Portfolio1

-9.9%

1,181 1,163

Sept-15 Dec-15

Shareholders' Equity

-1.5%

3.5% 3.6%

3Q15 4Q15

ROAE

0.1 p.p

2.9% 3.2%

3Q15 4Q15

NIM Evolution

0.33 p.p.

10 10

3Q15 4Q15

Net Income

Financial Highlights

1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)

R$ million

The main performance indicators were within expectations in the period…

3Q15 4Q15

10 10

3Q15 4Q15

2.9% 3.2%

33 bps

3Q15 4Q15

3.5% 3.6%

11 bps

2014 2015

9441

-56.5

%

2014 2015

4.3%3.4%

-95 bps

2014 2015

7.5%

3.4%

-410 bps


Credit61.4%

Bank Guarantees 17.7%

FICC14.5%

Pine Investimentos

3.8%

Treasury2.6%

2015

Credit63.2%Bank Guarantees

11.2%

FICC19.4%

Pine Investimentos

3.3%

Treasury2.9%

2014Revenue Mix

Participations by Business

Flat credit revenue, in line with the conservative strategy adopted by the Bank;

Lower volume of transactions in the FICC Business

Pine Investimentos remains active in structuring operations.

Product and Revenue Diversification...with contributions from all business lines.


R$ million4Q15 3Q15 4Q14 2015 2014

Financial MarginIncome from financial intermediation 73 1 83 207 380

Overhedge effect (15) 55 10 64 9 Income from financial intermediation 58 56 93 272 389

3Q15 4Q15

2.9% 3.2%

33 bps

2014 2015

4.3%3.4%

-95 bps

Net Interest Margin

NIM Evolution Main Impacts

NIM Breakdown

Lower revenue contribution from FICC;

Mark to market of securities and derivatives according

to 4.277 Resolution of the Central Bank of Brazil;

Pre-payment of the FIDC senior quotas; and

Higher level of cash as a proportion of assets during

the year.


Expenses and Efficiency Ratio

Personnel and Administrative Expenses

Expenses and Efficiency Ratio

Rigorous cost control.

2722 2322 20 19

42.2%50.6%

60.0%

-100%

-80%

-60%

-40%

-20%

00%

20%

40%

60%

0

5

10

15

20

25

30

35

40

45

50

4Q14 3Q15 4Q15

978990

74

38.7%47.5%

-100%

-80%

-60%

-40%

-20%

00%

20%

40%

60%

0

20

40

60

80

100

120

140

2014 2015

PersonnelExpenses

OtheradministrativeexpensesRecurringEfficiency Ratio(%)

R$ million4Q15 3Q15 QoQ 4Q14 YoY 2015 2014 YoY

Personnel expenses 23 22 7.5% 27 -12.1% 89 97 -7.4%Other administrative expenses 19 20 -5.7% 22 -14.1% 74 90 -18.1%Subtotal 42 42 1.2% 49 -13.0% 163 187 -12.6%Non-recurring expenses (4) (4) 6.5% (3) 37.4% (11) (12) -5.7%Total 38 38 0.7% 47 -18.0% 152 174 -12.5%Employees1 361 375 -3.7% 409 -11.7% 361 409 -11.7%1 Including outsourced ones


4,730 4,440 4,066 3,650 3,282

1,3021,118

1,074924

794

2,9693,191

2,896

2,4922,373

826 909

585

626

485

Dec-14 Mar-15 J un-15 Sept-15 Dec-15

Trade finance: 7%

Bank Guarantees:34.2%

BNDES Onlending :11.4%

Working Capital: 47.3%

8,621

7,691

6,933

9,6579,826

7.0%

1 Includes Stand by LC2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

R$ million

Loan PortfolioThe portfolio amounted to R$6.9 billion...

1

2

-29.4%

-9.9%


36%40%40%39%

6%6%5%5%

10%8%9%7%

10%10%9%9%

12%12%14%12%

13%14%14%15%

13%10%9%13%

Dec-15Dec-14Dec-13Dec-12

Energy

Sugar andEthanol

Real Estate

Agriculture

Engineering

Transportationand Logistics

Others

Continuous Loan Portfolio Management

Sectors Rebalance...with improved sector diversification.

The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;

The share of wallet of the 20 largest clients remained at around 30%, in line with market peers.

Energy13%

Sugar and Ethanol13%

Real Estate12%

Agriculture10%Engineering

10%

Transportation and Logistics

6%

Telecom4%

Foreign Trade3%

Metallurgy3%

Retail3%

Vehicles and Parts3%

Chemicals3%

Specialized Services

3%

Construction Material

2%

Meatpacking2%

Food Industry1%

Other9%


Wind Power72%

UTE1%

Distributors8%

Transmitting9%

Equip. Supplier

6%

SHPs UHEs4%

Guarantees62%

Working Capital

28%

BNDES Onlending

10%

Working Capital

80%

Guarantees20%

Residential Lots43%

Residential34%

Warehouse12%

Mall9%

Commercial2%

Main SectorsEnergy| Sugar and Ethanol | Real Estate

Energy (13%) Sugar and Ethanol(13%)

Real State (12%)

Exposure by Product Exposure by Segment Exposure by Product Exposure by State

Exposure by Product Exposure by Segment

Working Capital

51%

Guarantees32%

BNDES Onlending

11%

Trade Finance

7%SP

68%

MG22%

PR8%

GO2%


Concession34%

Transporta-tion33%

Industrial27%

Oil and Gas5%

Energy2%

Working Capital

83%

Guarantees14%

BNDES Onlending

3%

Working Capital

74%

BNDES Onlending

13%

Trade Finance

11%

Guarantees1%

MT33%

SP31%

BA11%

PR9%

MG8%

Others8%

Main SectorsAgriculture| Engineering

Agriculture (10%) Engineering (10%)

Exposure by Product Exposure by Product

Exposure by Segment

Exposure by State


5.0%

7.7%

9.3%

2.9%4.1%

5.1%

00%

02%

04%

06%

08%

10%

12%

00%01%02%03%04%05%06%07%08%09%10%

Dec-14 Sept-15 Dec-15D-H Portfolio Coverage of Total Portfolio Coverage of D-H Overdue Portfolio

162% 127% 80%50.0%

250.0%

450.0%

650.0%

AA-A35.2% B

28.9%

C26.6%

D-E4.5%

F-H4.8%

Products Pledge40%

Receivables16%

Properties Pledge42%

Investments3%

December 31st, 2015

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit.

1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,6822Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio

Loan Portfolio Quality90.7% of the loan portfolio is classified between AA-C ratings.Loan Portfolio Quality – Res. 2,682

Credit Coverage

Non Performing Loans > 90 days (Total Contract)

Collaterals

1 2 3

0.1%0.7% 0.3% 0.3%

0.1%2.1% 1.8% 1.2%

1.7%

Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15


7,703 7,482 7,948 3,270 4,941

221349 366

560479

(365 )

(103 )33

894

160


Notional AmountMtMStressed MtM

Commodities11%

Fixed Income8%

Currencies81%

December 31st, 2015

Fixed income: Fixed, Floating, Inflation, Libor

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

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

R$ million

FICCSolid trackrecord.

Client Notional Derivatives by Market

Market Segments

Notional Value and MtM

Portfolio Profile

Scenario on December 31st, 2015:

Duration: 281 days

Mark-to-Market: R$479 million

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

Stressed MtM : R$160 million


R$25,000,000

October, 2015

Promissory note

Lead Coordinator

J uly, 2015

Project Finance

R$104,000,000

Coordinator

September, 2015

InfratructureDebentures

Lead Coordinator

R$10,300,000

5 1

3Q15 4Q15

14 12

2014 2015

R$ million

Pine Investimentos

Fee Generation

Selected Transactions

Capital Markets: Structuring and Distribution of

Fixed Income Transactions.

Financial Advisory: Project & Structured Finance,

M&A, and hybrid capital transactions.

Research: Macro and Commodities.

December, 2015

CRI

R$21,300,000

Lead Coordinator

December, 2015

Bridge Loan

R$18,000,000

Coordinator

Lead Coordinator

October, 2015

Project Finance

R$7,500,000

J uly, 2015

Project Finance

R$78,000,000

Coordinator

September, 2015

Debentures

Coordinator

R$500,000,000

R$20,000,000

J une, 2015

CRI

Lead Coordinator


1,7201,209 951 853 841

545

361291 343 324

1,122

1,2731,322 1,321 1,570

69157

197 359 336

2724

18 33 18

1,3331,161

1,091 952 806

635

509476 207 295

747

796787

764 751

347

338272

318 279

687

837819 1,022 1,029

430773

735 545 113

839 929

605 692497

8,367

7,5647,409

6,859

8,500

Dec-14 Mar-15 J un-15 Sept Dec-15

Trade Finance: 7.2%

Private Placements: 1.7%

Multilateral Lines: 15%

International Capital Markets:4.1%Financial Letter : 10.9%

Local Capital Markets: 4.3%

Onlending: 11.8%

Demand Deposits: 0.3%

Interbank Time Deposits: 4.9%

High Net Worth Individual TimeDeposits: 22.9%Corporate Time Deposits: 4.7%

Institutional Time Deposits:12.3%

R$ million

FundingDiversified sources of funding...

48%

47%

41%

48%

53% Cash over Deposits

-19.3% -7.4%


41% 36% 37% 39% 45%

59% 64% 63% 61% 55%


Total Deposits Others

80% 77% 76%70%

66%

Dec-14 Mar-15 Jun-15 Sept-15 Dec-15

7.8x 7.8x7.1x

6.5x6.0x

5.4x 5.2x4.7x 4.4x

3.9x

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00


Expanded loan Porfolio

Loan Portfolio excludingBank Guarantees

Leverage: Expanded Loan Portfolio / Shareholders’ Equity Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Shareholders’ Equity

Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters ofCredit / Total Funding

Asset & Liability Management... matching assets’ and liabilities’ duration.

Leverage Credit over Funding Ratio

Total Deposits over Total FundingR$ millionmonths

6,8598,367 7,564 7,4098,500

Asset and Liability Management (ALM)

1.2 0.3

5.5

0.0 1.3

0.5 Obrigações por operações com compromisso de recompra (REPO)

Financiamento através de títulos e valores mobiliários

Depósitos à vista

Financiamento por depósitos, títulos emitidos, empréstimos e repasses

Outras Obrigações

PL

Assets0.1

0.9

4.1

2.7

0.5 0.6 Disponibilidades e Equivalentes

Ativos vinculados a compromissos de recompra (REPO)

Ativos Financeiros

Carteira de Crédito

Outros Ati vos

Ativos Ilíquidos

Liabilities

8.9 8.9

Equity

Demand deposits

REPO financing Secured funding

Unsecured funding

Other liabilities Other assets

Illiquid assets

Credit Portfolio

Trading portfolio assets

Assets financed through REPOs Cash and cash equivalents

Coverage of 134%


12.4% 12.2% 12.3% 12.2%14.1%

1.4% 0.8% 0.8% 0.9%

0.9%13.9%13.0% 13.1% 13.1%

15.0%


Tier II Tier I Minimum Regulatory Capital (11%)

Capital Adequacy Ratio (BIS), Basel III BIS ratio reached 15.0%, due to the deleveraging of the Loan Portfolio


2015 Performed

Expanded Loan Portfolio -15% to -5% -29.4% NIM 3.5% to 4.5% 3.4% Personnel and Administratve Expenses -15% to -10% -12.6% ROAE 5% to 8% 3.4%

Guidance 2015 Estimated versus Performed

Guidance 2015 based on GDP estimated of -1.5%

2015 real GDP of -3.5 to -4.0%


Guidance 2016Expanded Loan Portfolio -5% to 0% NIM 3% to 4% Personnel and Administratve Expenses -10% to -5% ROAE 4% to 8%

Guidance 2016 Pine GDP (E) 2016: -3.5%


This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as such are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy (political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax legislation) and therefore are subject to change without prior notice.

Noberto N. Pinheiro JuniorCEO

João BritoCFO

Raquel Varela BastosHead of Investor Relations, Funding & Distribution, Marketing & Press

Luiz MaximoInvestor Relations Coordinator

Gabriel NettoInvestor Relations Analyst

Phone: (55 11) 3372-5343

[email protected]

Investor Relations