Download - 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.
3/18Investor Relations | 2011 |
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
4/18Investor Relations | 2011 |
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...
5/18Investor Relations | 2011 |
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
6/18Investor Relations | 2011 |
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
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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
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
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%
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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
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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%
10/18Investor Relations | 2011 |
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%
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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
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Islamic Funding(December, 2011)
US$37.5 Million1 year tenor
Multilateral Loan(December, 2011)
US$25.0 Million10 years tenor
1,570 1,566 1,646 1,654 1,592 1,720 1,845 1,965 2,130
1,123 1,064 1,124 1,463 1,530 1,114
1,287
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Interbank deposits
Demand deposits
Individuals
Corporate Clients
Institutional
CREDIT FUNDING
BNDES BNDES
Trade Finance Trade Finance
Deposits
Working Capital, PrivateSecurities* And Cash
Letras Financeiras
Offshore Funding
Asset Liability Management... posting a 4-month positive gap between credit and funding maturities...
Matching of Transactions
89%
88%
82%
80%
76%
Credit to Total FundingRatio
13/18Investor Relations | 2011 |
ALM
Offshore Funding
Average Maturity
Credit: 14 months
Funding: 18 months
R$ 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
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
* 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%
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15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2%15.1% 14.3%
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
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
%
15/18Investor Relations | 2011 |
Cash / Time DepositsCapital
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
17.4
%
17.1
%
16.6
%
19.6
%
18.5
%
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Regulatoty Capital 11% Minimum Regulatoty Capital
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
43% 42% 42% 41% 41%
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
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...
16/18Investor Relations | 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%
17/18Investor Relations | 2011 |
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
18/18Investor Relations | 2011 |
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.
Investor Relations Manager
Alexandre Cavalcanti
Investor Relations Manager
Phone: +55-11-3372-5553
www.bancopine.com.br/ir