1q11 institutional presentation
TRANSCRIPT
History and ProfilePINE at a Glance
Summary
HistoryOrganizational Structure
Business StrategyCompetitive LandscapeCompetitive LandscapeDiversity of ProductsCorporate CreditSales DeskPINE InvestimentosDistributionThe Current Scenario and Future Prospects
Highlights and Results
Corporate Governance and SharesCorporate GovernanceMain CommitteesShareholders’ StructureShareholders StructureShareholders ProfileDividends
Other HighlightsDEG and PINE Partnership 1Q11 Events and HighlightsSocial Responsibility
Appendix
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Appendix
PINE at a GlancePINE specializes in providing financial solutions for mid and large companies
Credit Portfolio by Clients’ Annual Revenues
Focused on establishing long-term relationships withcompanies Up to R$150
million12%
As of March 31, 2011
PINE thoroughly understands the needs and strategies ofits clients, offering a broad range of financialinstruments in local and foreign currencies
S l i hi d i i h li
Over R$1 billion51%
R$150 million to
R$500 million
12%
Strong relationship and penetration with clients: morethan 80% of our clients are served by more than one ofour financial products
Business is structured along four primary business lines:
R$500 million to
R$1 billion15%
22%
g p y• Corporate Credit: credit and financing products• Sales Desk: Instruments for hedging and risk
management• Distribution: investment solutions for foreign and
local investors
Solid Credit Ratings
15%
local investors• PINE Investimentos: vehicle for Investment
Banking products and Asset Management
Strategy based on: Br A- Brazil national scale
A1.br Brazil national scale
Ba2 Long term foreign and local-currency deposit
gy• Product diversity• Qualified human capital• Efficient risk management• Agility
BB- Long term foreign and local-currency deposit
A(bra) Brazil national scale
BB Long term foreign and local
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BB- Long term foreign and local-currency deposit
HistoryFounded in 1997, PINE has shown a track record of continued development
1997 20051939 1975 20071997Foundation of Banco
PINE
2005Noberto Pinheiro
becomes Banco PINE’s sole shareholder
1939Foundation of
Banco Central do Nordeste by the Pinheiro Family
1975Noberto Pinheiro becomes one of
BMC’s controlling shareholders
….Consolidation of PINE’s corporate banking strategy
2007IPO
1939 – Pinheiro Family founds its first bank in Brazil – Banco Central do Nordeste
1975 - Noberto Pinheiro becomes one of the controlling shareholders of Banco BMC
1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE
2005 - Noberto Pinheiro becomes Banco PINE’s sole shareholder
2007 – IPO
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Organizational StructureNon-bureaucratic structure and flat hierarchy, streamlining the decision making process
Board of Directors
Internal AuditorsTikara Yoneya
Internal AuditorsTikara Yoneya
External AuditorsPwC
External AuditorsPwC
Noberto Pinheiro Chairman
Noberto N. Pinheiro Jr.Vice-Chairman
Maurizio MauroIndependent
Member
Fernando AlbinoExternal Member
Mailson da NóbregaIndependent
Member
Antonio Hermann*Independent
Member
Fiscal Council
O ti l Ri kO ti l Ri k
Tikara YoneyaTikara Yoneya PwCPwC
Sidney VenezianiSérgio MachadoAlcindo Itikawa
Sidney VenezianiSérgio MachadoAlcindo Itikawa
Fiscal Council
CEONoberto N. Pinheiro Jr.
CEONoberto N. Pinheiro Jr.
Operational Risk& Compliance
Operational Risk& Compliance
PINE InvestimentosGustavo Junqueira
PINE InvestimentosGustavo Junqueira
Planning and ControlSusana Waldeck
Planning and ControlSusana Waldeck
Sales & TradingNorberto Zaiet Jr.Sales & Trading
Norberto Zaiet Jr.Origination
Clive BotelhoOrigination
Clive BotelhoCredit Risk & Analysis
Gabriela ChisteCredit Risk & Analysis
Gabriela ChisteOperations
Ulisses AlcantarillaOperations
Ulisses Alcantarillaqq
Corporate• 14 origination
platforms• São Paulo• Campinas• Ribeirão Preto
Corporate Credit• Analysis and granting
of credit• Credit risk monitoring
and analysis by sector
Market and liquidity RisksHuman ResourcesAccountingControlling
Investment Banking• Capital Markets• Corporate Finance• Distressed and
Special Situations
Investment
Corporate Processing and FormalizationLegal
TradingSales Desk• Fixed Income• Currencies• Commodities
Local Distribution• São José do Rio Preto• Rio de Janeiro• Curitiba• Porto Alegre• Belo Horizonte• Recife• Fortaleza
ManagementAsset Management
Local DistributionInternational DistributionMacro and Commodities ResearchProductsInvestor Relations
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Fortaleza
* Pending approval from the Brazilian Central Bank
Brazilian Competitive LandscapeFinancial sector consolidation reduced options to our target segment
Focus on the upper middle and low corporatesegments
Large Multiple banks
Large Multiple banks
segments
Consolidation in the banking sector causedreduction in the supply of credit lines and
Corporate sector mid-sized banks Opportunity to expand operations
PINE f d l i f IB and IB and
reduction in the supply of credit lines andfinancial instruments to the bank’s segment
Unique approach: offering diversity of products toPINE: focused on complete service for companies, offering tailor-made products.
IB and Foreign Banks
IB and Foreign Banks
Unique approach: offering diversity of products toa market segment poorly serviced by the bankingindustry
Competitive Advantages: Fast response Dedicated team of specialists with deep
knowledge of the clients business, balance
Mid-sized banksMid-sized bankssheet and market positioning
Tailor-made solutions based on a diverseproduct base
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Diversity of ProductsA diversity of financial instruments for the diverse needs of our clients
Credit products in local andforeign currency
Corporate Credit
Derivative products for mitigatingmarkets’ mismatches risks for clients
Sales Desk
Investment Banking
C it l k t
PINE Investimentos
Working CapitalOverdraft accountsBNDES onlendingBank Guarantees
Fixed IncomeCurrenciesCommodities
Capital marketsCorporate financeDistressed & Special Situations
Investment ManagementCompror/VendorACC/ACEExport FinanceFinimpLetters of Credit
g
Asset ManagementWealth Management
Letters of Credit2,770 onlendingSyndicated LoansStructured Loans
Investment products in local and foreign currencyDistribution
CD – Certificate of DepositEurobondsSubordinated notes2,770 onlending
Local deposits Double index CDBLCA /LCISenior and subordinated local notes
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Multilateral linesDebt Capital Markets (CCBs, Debentures,FIDCs, CRIs, CRAs, CDCAs, among others)
Time Deposits
Corporate CreditConstantly searching for diversification and expansion of our credit exposure
Actions
Personalized, agile service, working closely with clientsand keeping a low ratio of companies per officer: eachaccount manager covers only 14 economic groups on
Credit Portfolio by Product
2770 Resolution
As of March 31, 2011
account manager covers only 14 economic groups onaverage.
More than 70 officers focused on specific geographicareas. It provides the bank with local and highly updatedcredit intelligence.
Working Capital54.7%
Trade finance 10.3%
Resolution0.2%
Relationship with more than 600 different economicgroups
Origination network is comprised of 10 branches dividedinto 14 b siness platforms in different Bra ilian economic
54.7%
Bank Guarantees
19.5%
into 14 business platforms in different Brazilian economiccenters
More than 30 credit analysts that guarantee intelligentanalysis in each sector
BNDES Onlendings
15.2%
Credit Approval: Electronic Process
Efficient loan and collaterals process, documentation andcontrols, which results in historically low NPL ratios
Origination OfficersOrigination Officers
Credit origination Credit analysis, visit to clients, data updates, interaction with internal
Credit AnalystsCredit Analysts
Discussion around sizing, collateral, structure etc
Regional Heads of Origination and Credit
Analysis
Regional Heads of Origination and Credit
Analysis
Presentation to the Credit Committee
Chief Credit Officerand Credit AnalystsChief Credit Officerand Credit Analysts
Centralized and unanimous decision making process
CREDIT COMMITTEE (6 Members)
CREDIT COMMITTEE (6 Members)
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updates, interaction with internal research team
collateral, structure etc decision making process
Sales DeskExpertise qualifies the Bank to quickly respond to market conditions and clients demands
Fixed Income
31%
Breakdown of Derivative Portfolio Notional Business
DERIVATIVE SEGMENTS
Fixed Income: Fixed Floating Inflation Libor
As of March 31st, 2011
31% Fixed Income: Fixed, Floating, Inflation, Libor
Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar, Spot
Commodities13%
Currencies56%
Commodities: Sugar, Soybean (Grain, Meal and Oil),Corn, Cotton, Metals, Energy
Purpose
To bring predictability to the clients’ balance sheet
TRENDS
Increased participation of Commodities hedging in the
Notional: R$3.4 billion
To bring predictability to the clients balance sheet
Executed with clients that have an ongoing creditrelationship with PINE, rated between AA and C
8 professionals assigned to the Desk, dedicated to serve
Increased participation of Commodities hedging in thetotal portfolio
Short-term portfolio (average maturity of transactionsof 188 days)
p g ,clients on their daily needs
According to Cetip ranking, PINE is number 13 in overallderivatives and top 2 in commodities hedging to clients
Increased usage of risk mitigation tools such as initialmargin and threshold.
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PINE InvestimentosCreating new values for clients and optimizing the use of the Bank’s Capital
PINE Investimentos offers unique solutions for its clients in Investment Banking and Investment Management.
With a highly qualified team with deep knowledge of the market, this area operates as an advisor and not ascounterparty, serving the interests and needs of companies and their shareholders, in a customized manner and withdiversity of products.
Capital MarketsSt t i d Pl t f S iti
Investment Banking Investment Management
Asset ManagementFixed Income Funds
Structuring and Placement of SecuritiesIntermediationStructured Transactions
Corporate Finance
Credit FundsExclusive Mandates
Wealth ManagementP tf li M tM&A
Private PlacementsStrategic and Financial AdvisoryRestructuringCorporate Governance
Portfolio Management
Corporate Governance
Distressed & Special SituationsAdvisory on WorkoutsNegotiation of NPLs
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Advisory on Acquisitions of Stressed Assets
DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors
PINE’s Distribution Desk is responsible for serving investors, offering traditional investments and also alternatives tiedto the credit origination platform, capital market, asset management and other structured transactions.
The objective is to provide the clients with a diversified portfolio of investments in line with market development,that adjust to investors’ risk profiles. The Distribution Desk counts on PINE’s expertise in structuring andintermediation of fixed income transactions.
O Di t ib ti D k i t d b t f i t t id li d hOur Distribution Desk is segmented by type of investor to provide a personalized approach.
ProductsInvestors
Family Offices
Individuals
Local CurrencyTraditional investments (local deposits such asCDB/RDB/CDI, LCA/LCI)Senior and subordinated local notes
Products
Corporates
Asset Managers
Senior and subordinated local notesDebt Capital Markets (CCBs, Debentures, FIDCs, CRIs,CRAs, CDCAs, among others)Derivatives
F i CFinancial Institutions
Pension Funds
Foreign Investors
Foreign CurrencyTime Deposits and CD – Certificate of DepositSenior and Subordinated bonds issued by PINEDebt Capital Markets (CCB, Credit Fund, Bonds) – throughCredit Linked Notes
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Foreign InvestorsDerivatives
The Current Scenario and Future ProspectsPINE has the key resources to continue developing its strategy: adequate capitalization, efficient funding and strong management team
Adequate capital structure Efficient funding structure
funding and strong management team
US$125 million subordinated debt, approved by theBrazilian Central Bank as Tier II capital in June 2010
Regulatory Capital: R$ 1.1 billion (Mar/11)
Lengthening of average maturities: 551 days(Mar/11)
Greater diversification of funding sources
Capital Adequacy Ratio (BIS) of 17.1% (Mar/11)
DEG and PINE partnership (Feb/11)
USD 106 million A/B Loan (Jan/11)
R$ 300 million FIDC (Apr/11)
Strong and motivated teamCorporate clients Strong and motivated teamMeritocracy
Incentives
Corporate clientsCustomized service
Deep knowledge of clients needs
QualificationProduct diversity
Around 80% of the client base is served by morethan one product
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1Q11 HighlightsAll main indicators showed improvement in the period...
Corporate Credit Portfolio*(R$ Million)
29.8%
Total Funding(R$ Million)
17.5%
Operating Income (R$ Milllion)
0.6%
4 462
5,792
4,634 5,447
47.9 48.2 4,462 4,634
Mar-10 Mar-11(*) Includes Debentures
Mar-10 Mar-11 1Q10 1Q11
Net Income (R$ Million) ROAE NIM before Provision
4.3% -10 bps
30.1 31.5 15.3% 15.2% 6.4% 6.4%
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1Q10 1Q11 1Q10 1Q11 1Q10 1Q11
1Q11 Highlights - Corporate... with highlight for the Corporate business earnings.
Corporate business consistent performance
Close relationship with companies in various sectors such as sugar and alcohol infrastructure renewableClose relationship with companies in various sectors, such as sugar and alcohol, infrastructure, renewableenergy and construction, among others
Positive contribution of all business lines: Corporate Credit, Sales Desk and PINE Investimentos
Net Income of R$35.4 million
ROAE of 17.2%
Corporate Income Breakdown
1Q10 1Q11
Corporate
PINE Investimentos
2.3% Corporate Credit69.0%
Treasury3.4%
PINE Investimentos
0.5%
Corporate Credit77.7%
Sales Desk13.1%
Treasury6.9%
Sales Desk27.1%
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Credit PortfolioPositive credit portfolio development...
13 5,747 5,792
71
827
1,022 1,117 688
543
520 591
21
19 18
15
13 10 Corporate Credit Mix (R$ Million)
Private Securities4,1184,462
4,794
5,26571
*
Corporate creditportfolio grew 29.8%in 12 months.176
242 455
629 833
871
350
511 634
842
827
688 708
663
707 745
44 36
32
21
Resolution 2770
Trade finance2,842
3,068
3,416
1,767 1,964 2,284
2,703 2,822 2,792 3,251 3,358 3,132
72 68
87
272 292
350 688 Bank Guarantees
BNDES Onlending
W ki C it l
(*) Includes Debentures Total Credit Portfolio (R$ Million)
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
Working Capital
8 7 016
022
Increase of the corporateloan portfolio, whichrepresents 98% of the totalcredit portfolio.
3,87
3
3,92
2
4,11
3
4,75
3
4,96
0
5,20
8
5,61 6,0
6,0
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(**) Includes corporate credit, debentures, remaining payroll-deductible loans and credit acquired from financial institutions
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
Credit Portfolio Profile - Corporate... growing in a diversified manner, both in sectors and products.
Credit Portfolio by Sector Credit Portfolio by Product
Electric and Renewable
Energy9%
Construction8%
Transportation and Logistics
7%
Financial Institutions
4% Meat packing4%
Foreign TradeTrade
finance
2770 Resolution
0.2%
Agriculture9%
9% Foreign Trade4%
Telecom3%
Specialized Services
Working Capital54.7%
B k
finance 10.3%
Sugar and
Infrastructure10%
Services3%
Vehicles and Parts3%
Pharmaceutical and Cosmetic
2% BNDES Onlendings
Bank Guarantees
19.5%
Geographic Distribution
Sugar and Ethanol
17%Metal and
Mining2%
Construction Materials
2%
Other13%
Onlendings15.2%
Local Presence
T t l 70%*
Mid-West14%
North2%
Total: 70%*Pernambuco 2%
Minas Gerais 9%
Ceará 2%
Southeast69%South
Northeast6%
10 Branches
14 Business Platforms
Rio de Janeiro 11%
São Paulo 33%
Paraná 6%
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9%
Rio Grande do Sul 7%
(*) Share in the Brazilian GDP
Efficient Risk ManagementConstant monitoring of the credit portfolio and balance sheet.
As of March 31, 2011
Credit Portfolio Quality Non Performing Loans(15 days overdue)
B25.6% Receivables
36%
Collaterals
Overdue Contracts
Overdue Installments
C5.8%
Property Pledge
18%
1.5%
AA-A65.1%
D-E1.4%
F-H2.1%
Products Pledge
42%Investments
4%
1.2%1.0%
0.7%
0.3%
0.7%
Average Value at Risk (R$ Thousand)Cash Position x Time DepositsTotal Credit Coverage
Mar-10 Dec-10 Mar-11
1,4391,908
625
34%43% 42%
1.74%
2.45%2.66%
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1Q10 4Q10 1Q11Mar-10 Dec-10 Mar-11Mar-10 Dec-10 Mar-11
Payroll-Deductible Loans PortfolioReduced impact coming from the retail business expected for 2011, due to the retail credit portfolio run-off.run off.
Payroll-Deductible Loans Portfolio(R$ Million)
90
8
730
594
475
378
286
225
177
148
1
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11Payroll Deductible Loan Run-off Forecast -
Retail(R$ Million)
*
126
74
31
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31 11 3
Mar-11 Dec-11 Dec-12 Dec-13 Dec-14*Portfolio assigned with recourse
FundingFunding is growing with quality and...
326 200 160
282 194
194 201
217 230
222 Funding Mix (R$ Million)Other Foreign Funding
Capital Market
5,375
4,8714 6343
5,589 5,447
270 362 192 152
125 176 242 453
626 829
867 472 393 350
361 326
385
225
230 239 227
200 282
141 116 108
75 276 203
175 138 127
130 142 206
Multilateral Lines
Trade Finance
4,6344,531
3,8523,6743,621
Tot1,123 1,064 1,124 1,463 1,559 1,114
89
91 85 175
198 214 218
148
245 298 238
270 312
797 650
529
419 330 249 125
72 68
87
242
601 536
473 283 247 141 116
BNDES
Loan Assignments
Interbank and D d D i
tal Deposits + LCA1,225
1,570 1,566 1,646 1,654 1,564 1,720 753
807
840
85
88 218
162 797 Demand Deposits
Individuals
Corporate Clients
A*
497 861
,
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
Institutional
Foreign Funding – Multilateral AgenciesA/B Loan (January, 2011)
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US$106.0 Million
(*) LCA - Agribusiness Letters of Credit
Funding and Credit Portfolio Maturities ... posting an 80 days positive gap between credit and funding.
R$ million
Credit
Funding
1,98
5
1,85
5
1,88
0
85
99
1,73
7
- 398
98
42
1,1 8 1,2
780
404
No Maturity Up to 3 From 3 to 12 From 1 to 3 From 3 to 5 More than 5
(*) Does not consider Shareholders' equity
y pmonths
(includes Cash)months years years years
Average Maturity
Credit: 471 days
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Funding: 551 days
Capital Adequacy Ratio (BIS)BIS ratio remained at a comfortable level.
Public Offering
BIS Ratio Tier II Tier I
18 6% 19 3%11% - Minimum Regulatoty Capital
Subordinated Notes
Public OfferingUS$125 Million
0.8%0.6%
0.5%0.5% 0.5% 3.9% 3.6%
3.6% 3.7%
18,6% 19,3%17,2%
15,6% 14,9%18,5% 18,4% 17,4%
g y p
17,1%
17.8% 18.7%16.7% 15.1% 14.4% 14.6% 14.8% 13.8% 13.4%
February/2010
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
Tier I 13.4%
Tier II 3 7%
866,124
238 492
R$ Thousand BIS Ratio (%)
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Tier II 3.7%
Total 17.1%
238,492
1,104,616
Corporate GovernancePINE adopts the best corporate governance practices.
Two 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 AbrilFernando Albino de Oliveira: Former Director of CVM’s and a partner of Albino AdvogadosAssociadosAntonio Hermann*: Former CEO of Banco Itamaraty, Director at FEBRABAN and elected Director ofBrazilian Banking Association
São Paulo Stock Exchange (BM&FBovespa) Level 1 of Corporate Governance
Fiscal Council
100% tag along rights for all shareholders, including non-voting shares
Arbitration procedures for fast settlement of litigation cases
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* Pending approval from the Brazilian Central Bank
Main CommitteesPINE believes that the use of the best corporate governance practices substantially enhancesits business outcome.its business outcome.
Main decisions are taken by committees: Board of Directors and a structure of specificcommitteesNon stop exchange of knowledge and informationNon-stop exchange of knowledge and informationTransparency
Board ofBoard ofBoard ofDirectorsBoard ofDirectors
Fiscal CouncilFiscal CouncilAuditAudit
SupportCommittee
SupportCommittee
ExecutiveCommitteeExecutiveCommittee
TreasuryCommittee
(ALCO)
TreasuryCommittee
(ALCO)
National andForeign Funding
Products
National andForeign Funding
ProductsCredit
CommitteeCredit
CommitteeRetail
CommitteeRetail
Committee
Complianceand Basel Risk
Committee
Complianceand Basel Risk
Committee
Corporate Finance
Committee
Corporate Finance
Committee(ALCO)(ALCO) CommitteeCommitteeCommitteeCommittee CommitteeCommittee
DelinquencyCommittee
DelinquencyCommittee
PerformanceEvaluationCommittee
PerformanceEvaluationCommittee
EthicsCommittee
EthicsCommittee
ITCommittee
ITCommittee
HumanResourcesCommittee
HumanResourcesCommittee
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Shareholders’ StructureOn December 29th, free floating adequacy reached through the sale of a portion from shares in treasury.treasury.
March 31, 2011
Common Preferred Total %
Controlling Shareholder 45,443,872 14,370,556 59,814,428 70.0%g , , , , , ,
Management - 2,737,946 2,737,946 3.2%
Free Float - 21,481,892 21,481,892 25.2%
Individuals - 4,506,453 4,506,453 5.3%
Institutionals - 6,584,407 6,584,407 7.7%
Foreign - 10,391,032 10,391,032 12.2%
Subtotal 45,443,872 38,590,394 84,034,266
Treasury - 1,374,839 1,374,839 1.6%
Total 45,443,872 39,965,233 85,409,105 100.0%
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Shareholders’ ProfileShareholders' profile evolution
2007IPO
ForeignInvestors
78.4%
ForeignInvestors
78.4%
45.7%
48.4%
Foreign Investors
InstitutionalInvestors12.9%
InstitutionalInvestors12.9%
38.4% 38.7%39.7% 39.3% 39.4%
40.3% 40.3% 39.9%39.0%
36.1% 36.2%
33.4%
30 7%
36.4% 36.1% 36.0% 35.9% 35.2% 35.5% 35.8%36.9%
38.2%
42.4% 42.4%
25.2% 25.2% 24 3% 24.8% 25.4%24 1% 23 8%
30.7%Institutional Investors
Individuals
Individuals8.7%
Individuals8.7%
24.3% 24.1% 23.8% 23.2% 22.8%21.5% 21.4% 20.9% 21.0%
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11
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DividendsSince 2008, Banco PINE has paid dividends/interest on own capital on a quarterly-basis.
Dividends and Interest on Own Capital
R$ million R$ R$ million R$
Gross Amount Total Amount Amount per share
Interest on own capital 12.7 0.15
Dividends 2.3 0.03 Total paid in 1Q11 15.0 0.18
Dividends and Interest on Own Capital (R$ Million)
45 40
16 25 25
33 30 35
40
15
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1S07 2S07 1S08 2S08 1S09 2S09 1S10 2S10 1Q11
DEG and PINE PartnershipSubscription agreement with DEG – a leading German bank – for an equity investment in PINE.
Highlights
M b f KfW B k f th fi l t b k i GMember of KfW Bankengruppe, one of the five largest banks in Germany
DEG’s investment in PINE will be their first equity investment in a Brazilian financial institution
ll b b f d h d b h k b h l l b $DEG will subscribe new preferred shares issued by the Bank by the lower value between R$43.7million and €20 million
DEG will acquire approximately 2,422,480 shares (with capital increase)
If the investment had occurred in December 2010, the book value per share would have gonefrom R$10,33 to R$10,54 by the end of 2010
32/38Investor Relations | 1Q11 |
1Q11 Events and HighlightsMarket Recognition.
PINE is ranked the 13th largest bank in Cetip’s overall derivatives ranking and the 2nd largest incommodities hedge for clientscommodities hedge for clients
On April 6th, PINE’s corporate credit FIDC transaction was successfully completed. The amountof the transaction was R$ 300 million, with a AA+ rating attributed by S&P
PINE was considered, for the second consecutive year, the best commercial bank in Brazil in theWorld Finance Banking Awards. The award was created by British magazine World Finance.Some of the most important criteria were: solutions for clients and optimization ofp prelationships, innovation and flexibility, and staying ahead of the competition
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Social ResponsibilityBanco PINE supports and promotes Brazilian culture
SocialCasa HopeInstituto Alfabetização Solidária
CultureDiário de Navegação: addresses the first yearsof the occupation of the Brazilian coast by thePortuguese colonizers
Instituto Casa da ProvidênciaHospital Pequeno PríncipeGRAACC - Grupo de Apoio ao Adolescente e à Criança com CâncerColégio Mão Amiga
Paulo von Poser: exhibit of the painter Paulovon Poser, who is one of the main figures inBrazilian artTeatro Cultura Artística: it is one of thesponsors of the project for the renovation of theCultura Artística TheaterColégio Mão Amiga
SportsMinas Tênis Clube: training program forthl t
Cultura Artística TheaterQuebrando o Tabu: documentary based on theanalysis from the former President of Brazil,Fernando Henrique Cardoso, on the fight againstdrugsAlém da Estrada: motion picture whichathletes
Tênis Sobre Rodas: projeto executado peloInstituto Brilho Brasileiro fundado pela tenistaVanessa Menga, que beneficia 80 portadores dedeficiência física
Além da Estrada: motion picture, whichreceived the award for best director in the 2010Rio Festival
Responsible Credit
Green Building
“Lists of Exceptions”: the Bank does not finance –with multilateral organizations lines - projects orthose organizations that damage theenvironment, are involved in illegal laborpractices or produce, sell or use products,substances or activities considered prejudicial tosociety.
System of environmental monitoring, financed bythe IADB and coordinated by FGV, and internally-
d d t i bilit t f t
34/38Investor Relations | 1Q11 |
produced sustainability reports for corporateloans.
Ratings
Fitch RatingsFitch Ratings LF RatingLF Rating AustinAustinRiskbankRiskbankMoody’sMoody’s Standard & Poor's
Standard & Poor's
nd
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Long Term Ba2 BB- BB- - - -
Short Term B B-
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Long Term Ba2 BB- BB- - - -
Short Term B B-
- -
Bra
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Sca
le Long Term A1.br brA- A(bra) 10.47Low Risk for the Medium Term (-)
A+ A
Short Term Br-1 F1(bra)
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Key Performance Indicators
1Q11 4Q11 1Q10 Quarter (%) Year (%)
Earnings and Returns
Net Income (R$ thousand) 31,450 14,898 30,148 111.1 4.3
Annualized ROAE 15.2% 7.0% 15.3% 820 bps -10 bps
Annualized ROAAw 1 2.3% 1.1% 2.5% 120 bps -20 bps
Annualized financial margin before provision 6.4% 8.5% 6.4% -210 bps 0 bps
Annualized financial mergin after provision 5.5% 4.9% 6.3% 60 bps -90 bps
Balance Sheet (R$ thousand)
Total credit portfolio 2 6,022,018 6,015,846 4,959,557 0.1 21.4
Corporate credit and private securities risk 3 5,792,235 5,746,649 4,461,581 0.8 29.8
Risk weighted assets 5,650,198 5,473,250 4,942,817 3.2 14.3
Total deposits 4 3,364,504 3,698,360 3,012,901 -9.0 11.7
Total funding 5,446,978 5,588,883 4,634,379 -2.5 17.5g , , , , , ,
Shareholders' equity 878,549 867,132 839,027 1.3 4.7
Credit portfolio quality
Non performing loans - 15 days 0.7% 0.3% 0.7% 40 bps 0 bps
Non performing Loans - 60 days 0 4% 0 1% 0 6% 20 bps -20 bpsNon performing Loans 60 days 0.4% 0.1% 0.6% 20 bps 20 bps
Non performing loans - 90 days 0.3% 0.1% 0.5% 10 bps -30 bps
Credit coverage 2.7% 2.4% 1.7% 20 bps 90 bps
Performance
BIS ratio 17 1% 17 4% 14 9% 30 bps 220 bpsBIS ratio 17.1% 17.4% 14.9% -30 bps 220 bps
Efficiency ratio 38.9% 33.8% 39.5% 520 bps -60 bps
Earnings per share (R$) 0.37 0.18 0.36 105.6 2.8
Book value per share (R$) 10.45 10.33 10.07 1.2 3.8 (1) Risk weighted assets.(2) Includes bank guarantees and debentures.(3) Includes bank guarantees
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(3) Includes bank guarantees.(4) Includes Agribusiness Letter o f Credit.
Investor Relations
Norberto Zaiet Junior
CFOCFO
Nira Bessler
Head of Investor Relations
Alexandre Cavalcanti
Investor Relations Manager
Alejandra Hidalgo
Investor Relations Analyst
Phone: +55-11-3372-5553
b i b /iwww.bancopine.com.br/ir
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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 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, the performance of the Brazilian economy and theindustry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents and are, therefore, subject to change without prior notice.