4q10 institutional presentation

Institutional Presentation4Q10 d 20104Q10 and 2010

History and ProfilePINE at a Glance

Summary

HistoryOrganizational Structure

Business StrategyBrazilian Competitive LandscapeBrazilian Competitive LandscapeDiversity of ProductsCorporate CreditSales DeskDistributionPINE InvestimentosCurrent Scenario and Future Prospects

Highlights and Results

IFRS

Corporate Governance and SharesCorporate GovernanceCorporate GovernanceMain CommitteesShareholders’ StructureShareholders ProfileDividends

Other HighlightsDEG and PINE Partnership 2010 EventsSocial Responsibility

2/44Investor Relations | 4Q10 |

Social Responsibility

Appendix

History and Profile

PINE at a GlancePINE specializes in providing corporate banking and risk management services for mid and large companies

Credit Portfolio by Clients’ Annual Revenuescompanies

PINE is an agile bank, focused on establishing long-termrelationships with companies in the Upper Middle andCorporate segments

Up to R$150 MM12%

December 31, 2010

Corporate segments

PINE thoroughly understands the needs and strategies ofits clients, offering a broad range of financialinstruments and risk management tools for local andforeign currency

Over R$1 BI53%

R$150 MM to R$500 MM

20%

12%

foreign currency

Strong relationships and penetration with clients: morethan 80% of our clients are served by more than one ofour financial products

R$500 MM to R$1 BI15%

20%

Business is structured along four primary business lines:• Corporate Credit: credit and financing products• Sales Desk: Instruments for hedging and risk

management

15%

Solid Credit Ratings

management• PINE Investimentos: vehicle for Investment

Banking products and Asset Management• Distribution: investment solutions for foreign and

local investorsBr A- Brazil national scale

A1.br Brazil national scale

Ba2 Long term foreign and local-currency deposit

Strategy based on:• Product diversity• Qualified human capital• Efficient risk management

BB- Long term foreign and local-currency deposit

A(bra) Brazil national scale

BB Long term foreign and local


• Efficient risk management• Agility

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


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

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

TradingRisk Management• 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


Fortaleza

Business Strategy

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 availability 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 availability 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

PINE is the generally the client’s first call forstructured solutions

Fast responseDedicated team of specialists with deep

Mid-sized banksMid-sized banksknowledge of the clients business, balancesheet and market positioningTailor-made solutions based on a diverseproduct base


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

LoansOverdraft 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 depositsDouble index CDBLCA /LCISenior and subordinated local notes


Multilateral linesDebt Capital Markets

Time Deposits

Corporate CreditConstantly searching for diversification and expansion of the credit exposure

Actions

Personalized, agile service, working closely with clientsand keeping a low ratio of companies per officer: eachaccount manager covers only 13 economic groups on

Credit Portfolio by Product

Working l

Trade

Resolution 27700.2%

account manager covers only 13 economic groups onaverage.

More than 70 officers focused on specific geographicareas. It provides the bank with local and highly updatedcredit intelligence.

Capital58.4%

Bank G

Finance9.1%

Active business relationship with more than 600 differenteconomic groups

Origination network is comprised of 10 branches dividedinto 14 b siness platforms in different Bra ilian economic BNDES

Guarantees17.8%

into 14 business platforms in different Brazilian economiccenters

More than 30 credit analysts that guarantee intelligentanalysis in each sector

BNDES onlending

14.5%

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)


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

Portfolio Breakdown Business

DERIVATIVE SEGMENTS

Fixed Income: Fixed Floating Inflation Libor

As of December 31, 2010

Fixed Fixed Income: Fixed, Floating, Inflation, Libor

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

Fixed Income

29%Currencies

63%

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

Notional: R$ 2,822 million

Commodities8%

Purpose

To bring predictability to the clients’ balance sheet

TRENDS

Increased participation of Commodities hedging in theTo 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 transactionsunder 6 months)

p g ,clients on their daily needs

According to Cetip ranking, PINE is number 13 in overallderivatives and top 3 in commodities hedging

Increased usage of risk mitigation tools such as initialmargin and threshold.


PINE InvestimentosCreating new values for our 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 ahighly qualified team with deep knowledge of the market, this area operates as an advisor and not as counterparty,serving the interests and needs of companies and their shareholders, in a customized manner and with diversity ofproducts.

Capital MarketsStructuring and Placement of Securities

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

p

Distressed & Special SituationsAdvisory on WorkoutsNegotiation of NPLsAd i A i iti f St d A t


Advisory on Acquisitions of Stressed Assets

Distribution DeskInvestment 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

High Net Worth 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


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 (Dec/10)

Lengthening of average maturities: 18 months(Dec/10)

Greater diversification of funding sources

Capital Adequacy Ratio (BIS) of 17.4% (Dec/10)

DEG and PINE partnership (Feb/11)

A/B Loan of USD 106 million (Jan/11)

FIDC of R$ 300 million (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


Highlights and Results

2010 HighlightsAll major BS and P&L indicators showed improvement in 2010

Corporate Credit Portfolio(R$ Million)

39.5%

Operating Income (R$ Million)

39.1%

Total Funding(R$ Million)

23.3%

5,747 196.4 4 531

5,589

4,118 141.2 4,531

Dec-09 Dec-10 2009 2010

Net Income(R$ Million) ROAE Effiency Ratio

Dec-09 Dec-10

39.0% 370 bps-70 bps

85.1

118.3

10.3%

14.0% 34.6% 33.9%


2009 2010 2009 2010 2009 2010

2010 Highlights - CorporateHighlights for the corporate business

Consistent performance in the corporate business

Broad and close relationship with companies in various sectors such as sugar and alcohol infrastructureBroad and close relationship with companies in various sectors, such as sugar and alcohol, infrastructure,renewable energy, construction, among others

Positive contribution of all business segments: Corporate Credit, Sales Desk and PINE Investimentos

Net Income of R$ 159.3 million

ROAE of 18.8%

FY 2010

Corporate Business Income Breakdown

Corporate Credit67%

Treasury7%

PINE Investimentos

3%

Sales Desk23%


NIM – Net Interest MarginIncome from financial intermediation increased and margins remained stable

Income from Financial Intermediation Before Provision

(R$ Million)

22.5%

Income from Financial Intermediation After Provision

(R$ Million)

16.7%

422.8 345 3

345.2 295.8 345.3

2009 2010 2009 2010

Financial Margin Before Provision

Financial Margin After Provision

-40 bps -60 bps

7.8% 7.4% 6.7%6.1%


2009 2010 2009 2010

5,747

Credit PortfolioConsistent development

1,022 688

543

520

21 19

18

15

13 Corporate Credit Portfolio Mix (R$ Million)

Resolution 27704,1184,462

4,794

5,265

Corporate credit portfolio

176 242 455

629 833

3 0

511 634

842

827

540 708

663

707 745

688

66 44

36 32

21

Trade Finance

Guarantees

3,0702,842

3,0683,416

Corporate credit portfoliogrew 9.1% in 4Q10, 39.5%in 12 months.

2,104 1 767 1,964

2,284 2,703 2,821 2,792

3,251 3,358

85

72 68

87 276

272 292

350 688 708 Guarantees

BNDES onlending

1,767 ,

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Working Capital

T t l C dit P tf li

Corporate credit portfolio

Total Credit Portfolio (R$ Million)

Corporate credit portfoliorepresents 97% of the totalcredit portfolio.

4,26

4

3,87

3

3,92

2

4,11

3

4,75

3

4,98

0

5,20

8

5,61

7

6,02

9



Credit Portfolio Profile - CorporateDiversified growth

Agriculture9%

Construction6%

Transportation and Logistics

6%

Financial Institutions

5% Meat packing4%

Specialized Services

Working Capital

Trade Finance

Resolution 27700.2%

Credit Portfolio by Industry Credit Portfolio by Product

Electric and Renewable

Energy10%

3%

Vehicles and Parts3%

Pharmaceutical and Cosmetic

3%

Capital58.4%

Bank Guarantees

Finance9.1%

Infrastructure13%

3%

Telecom3%

Foreign Trade3%

BNDES l di

Guarantees17.8%

Sugar and Ethanol

14%

Foodstuffs2%Metal and

Mining2%

Other14%

onlending14.5%

Credit portfolio by region Local Presence

T t l 71%North

2% Total: 71%Pernambuco 2%

Minas Gerais 9%

Ceará 2%

Northeast

Mid-West11%

2%

10 Branches

14 Business Platforms

Rio de Janeiro 11%

São Paulo 34%

Paraná 6%Southeast

70%South 11%

6%


Rio Grande do Sul 7%

Non-Recurring Provision Countercyclical movement: even more conservative standard for credit coverage

In 4Q10, PINE created non-recurring provisions for loan losses, in two ways:

Reclassification of transactions in accordance with Resolution 2682: all companies with active transactions wereanalyzed and 9.5% of companies in the portfolio were upgraded, while 7.9% were downgraded.

A generic additional provision was made to bring the coverage of the credit portfolio to a more comfortable level.g p g g p

Total Credit Coverage

44 bps

D-H Coverage

-130 bps320 bps

2.45%

71 bps

94.1% 89.6% 92.8%2.01%

1.74%

2.45% 89.6%


Dec-09 Sep-10 Dec-10Dec-09 Sep-10 Dec-10

As of December 31, 2010

Efficient Risk ManagementConstant monitoring of the credit portfolio and balance sheet

Overdue Total Contracts

Overdue Installments

Credit Portfolio qualityB

23.8%

Collaterals

Receivables38%

Property Fiduciary Alienation

Non Performing Loans

2.6%

2.0%

C6.3%

D-E0 9% Product

16%

1.0%1.3%

0.8%0.3%

Dec-08 Dec-09 Dec-10

AA-A67.2%

0.9%F-H

1.7%

Product Fiduciary Alienation

36%Investments

10%

Total portfolio coverage: 2.45%

Leverage1 Cash Position / Time Deposits

Total portfolio coverage: 2.45%

Average Value at Risk (R$ Thousand)

4.7x

5.5x

6.4x

40%

37%

43% 2,669

1,3891,637


2008 2009 2010

1 - Funding / Shareholder Equity

2008 2009 2010 2008 2009 2010

Retail PortfolioReduced impact coming from the retail business expected for 2011, due to the retail credit portfolio run-off

Payroll Credit Portfolio(R$ Million)

run off*

029

1,0

890

730

594

475

378

286

225

177

Projected Run-off of Retail Loans Assigned with Recourse

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10(*) On and off book portfolio

(R$ Million)

152

74


31 11

Dec-10 Dec-11 Dec-12 Dec-13

Increasingly Diversified Funding SourcesComfortable funding situation

152 200 160 194 194 166 179

55

52 51

Funding Mix (R$ Million)

2770 Lines

Private Placements

5,375

4,8714,6344,531

5,589

199 214 453

626 829

472 393

350

361 326

419 330 249

192 152

226

230 239 227

200

242 141 116 108

75 276 203

105 104 79 74

77 87 151

71 71 60 54

53 54 Capital Market

Multilateral Lines

L

3,8523,6743,6213,729

1,149 1,114 1,146 1,478 1,572

101

102 82 169

199

68

87

176 242 453

601

536

473

472 393

914 797 650

529 317 282 249

6 242 141 116 104 Loan Assignments

Trade Finance

BNDES

1,309 1,778 1,817 1,867 1,908 1,912 681 786

887

891

93 85

84

85 72

68 531 601

Individuals

Corporate Clients

Total Depo

689 683 945


Clients

Institutional

osits

Foreign Funding – Multilateral Agencies

A/B Loan (January, 2011)


US$106.0 Million

Funding and Credit Portfolio Maturities 3 month positive gap between credit and funding

R$ million

Loan Portfolio + Cash Position

Funding

2,57

8

9

-

2

1,67

5

1,64

4

434

106

42 1,

400

1,42

0

1,75

9

580

396

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

(*) Does not consider Shareholders' Equity

Credit: 15 monthsFunding: 18 months

Average Term


Capital Adequacy Ratio (BIS)BIS ratio at comfortable levels

BIS Ratio Tier II Tier I

Public OfferingUS$ 125 Million0.8% 0.8%

0.6%0.5%

0.5% 0 5% 3.7% 3.6%3 6%

19.3% 18.6% 19.3%17.2%

15.6% 14.9%

18.5% 18.4% 17.4%

Minimum Capital Requirement (11%)

Subordinated Notes

18.5% 17.8% 18.7%16.7% 15.1% 14.4% 14.8% 14.8% 13.8%

0.5% 3. % 3.6%3.6%

February / 2010Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Tier I 13.8%

BIS Ratio861,152

Equity (R$ Thousand)


Tier II 3.6%

Capital Adequacy 17.4%

226,139

1,087,291

2010 HighlightsThe main ratios show results of PINE's strategy

Total Revenue(R$ million)

14.7%

Corporate Total Revenue(R$ million)

12.7%

Total Revenues (-) Fee Income and Comissions

(R$ Million)

9.4%

484 2 457 7 423 4 463.2 422.3

484.2 406.2

457.7 423.4 463.2

Net Income (R$ million)

2009 2010 2009 2010

ROAE

220 b

Corporate Net Income(R$ million)

2009 2010

22.3% 220 bp12.9%

132.5 162.1

17.7%19.9%

155.5

175.6


2009 2010 2009 2010 2009 2010

IFRS – Main ChangesIFRS impacts over the main figures of the bank

ImpairmentPINE estimates a loan loss provision based on the historical loss and recoverable amounts and other

ImpairmentPINE estimates a loan loss provision based on the historical loss and recoverable amounts and othercircumstances recognized upon evaluation. These criteria differ in certain aspects from the criteriaadopted under BR GAAP.circumstances recognized upon evaluation. These criteria differ in certain aspects from the criteriaadopted under BR GAAP.

Effective Interest RateIn IFRS all revenues and expenses related to financial instruments are incorporated to theeffective interest rates while the contract is activeAn important impact is the recognition of certain revenues that in BR GAAP are booked as FeeI d i IFRS b k d t f th ff ti i t t t (th f i d i

Effective Interest RateIn IFRS all revenues and expenses related to financial instruments are incorporated to theeffective interest rates while the contract is activeAn important impact is the recognition of certain revenues that in BR GAAP are booked as FeeI d i IFRS b k d t f th ff ti i t t t (th f i d iIncome, and in IFRS are booked as part of the effective interest rate (therefore, recognized in anaccrual basis).Income, and in IFRS are booked as part of the effective interest rate (therefore, recognized in anaccrual basis).

Accrual of Credit Portfolios Sold with RecourseUnder BR GAAP the income from assigned loan portfolio with recourse was recognized upon thesale, in IFRS the income of transactions assigned with recourse are recognized on an accrual basisthroughout the life of the contract.

Accrual of Credit Portfolios Sold with RecourseUnder BR GAAP the income from assigned loan portfolio with recourse was recognized upon thesale, in IFRS the income of transactions assigned with recourse are recognized on an accrual basisthroughout the life of the contract.

Income Tax and Social ContributionAdjustments to deferred Income Tax and Social Contribution calculated on IFRS adjustments were

Income Tax and Social ContributionAdjustments to deferred Income Tax and Social Contribution calculated on IFRS adjustments were


reflected in the reconciliation.reflected in the reconciliation.

Corporate Governance and PINE4

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 AdvogadosAssociados

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


Main CommitteesPINE believes that the use of the best corporate governance practices substantially enhancesits business outcomeits 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


Shareholders’ StructureOn December 29th, free floating adequacy reached through the sale of a portion from shares in treasury.treasury.

Base 03/21/11

ON PN Total %

Controlling Shareholder 45,443,872 14,370,556 59,814,428 70.0%

Management - 2,737,946 2,737,946 3.2%

Free Float - 21 481 892 21 481 892 25 2%Free Float 21,481,892 21,481,892 25.2%

Individuals - 4,509,255 4,509,255 5.3%

Institutional Investors - 6,608,707 6,608,707 7.7%

Foreign Investors - 10,363,930 10,363,930 12.1%

Subtotal 45,443,872 38,590,394 84,034,266 0.0%

Treasury - 1,374,839 1,374,839 1.6%

Total 45,443,872 39,965,233 85,409,105 100.0%

Market MakerIn January 2011, hiring of XP Investimentos as Market Maker to increase the PINE4’sliquidity in the marketliquidity in the market


Shareholders’ ProfileShareholders' profile change since the crisis

2007IPO

ForeignInvestors

78.4%

ForeignInvestors

78.4% 40.5%41.0%

42.0% 41.6%41.7%

42.7% 42.7% 42.2%41.2%

38.2%

40.1% 39.6% 39.8%

40 4%

44.8%

Institutional Investors

InstitutionalInvestors12.9%

InstitutionalInvestors12.9%

38.5%39.5% 39.8%

38.4% 38.2% 38.1% 38.0%37.3% 37.6% 37.9%

39.0%

40.4%

Foreign Investors

Individuals

Individuals8.7%

Individuals8.7%

21.4%20.9% 20.4%

21.1% 20.8%19.9% 20.4%

21.0%19.7% 19.4%

18.7% 18.3%17.0%

Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10


DividendsSince 2008, Banco PINE has paid dividends/interest on own capital on a quarterly-basis.

Dividends and Interest on Own Capital

R$ million R$

Gross Amount Total Amount Amount per Share1Q10 15.0 0.179998

2Q10 20.0 0.239997

3Q10 20.0 0.239997

4Q10 20.0 0.238282

Total paid in 2010 75.0 0.898274

Dividends and Interest on Own Capital (R$ Million)

45

16

25 25 33

45

30 35

40


1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10

Other Highlights

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


2010 Events and HighlightsMarket Recognition

PINE is one of the 15 largest banks in the country in Corporate credit*, according to the 2010 edition ofMelhores e Maiores, from Exame magazine

PINE was considered the Best Commercial Bank in Brazil by World Finance Banking Awards in August 2010.The award was created by British magazine World Finance. Some of the most important criteria were:solutions for clients and optimization of relationships, innovation and flexibility, and staying ahead of thecompetition

On May 24, Fitch Ratings raised PINE's ratings, citing the agility in adapting to economic volatility, itsstrategy of consistently managing risks and balance sheet adjustments

In September, 2010, LF Ratings raised PINE’s rating from A to A+. According to the agency, the upgradereflects aspects related to support, management, strategy and financial strength

During the same period Austin Ratings upgraded PINE's rating outlook to positive


Social ResponsibilityBanco PINE supports and promotes Brazilian culture

SocialCasa HopeInstituto Alfabetização Solidária

CultureA Cidade e a Rosa (The City and the Rose): retrospective ofthe artist Paulo Von Poser

Instituto Sedes SapientiaeInstituto Casa da Providência Paisagem e Olhar (Landscape and View):

featuring watercolors of the biodiversityof the Rainforest

SportsMinas Tênis Clube: training program forathletesPasse de Mágica: created in 2004 by MagicP l d B f B ili b k tb ll

Embarcações (Typical Vessels of the Brazilian Coast):registers the historic beauty of vessels from north to south ofBrazil

Paula and Branca, former Brazilian basketballplayers, to offer basketball instruction forchildrenProjeto Rede Atletismo Novos Talentos:(New Talent Athletics Network Project)

i i f hl d l d dResponsible Credit

training program for athletes developed andmaintained by the Aquarela Foundation

Green Building

“Lists of Exceptions”: the Bank does not finance – withmultilateral organizations lines - projects or those organizationsthat damage the environment, are involved in illegal laborpractices or produce, sell or use products, substances oractivities considered prejudicial to societyactivities considered prejudicial to society.

System of environmental monitoring, financed by the IADB andcoordinated by FGV, and internally-produced sustainabilityreports for corporate loans.


Appendix

Ratings

Fitch RatingsFitch Ratings LF RatingLF Rating AustinAustinRiskbankRiskbankMoody’sMoody’s Standard & Poor's

Standard & Poor's

nd

Fo

reig

n

rren

cy

Long Term Ba2 BB- BB- - - -

Short Term B B-

- -

Lo

cal an

Cu

r

Long Term Ba2 BB- BB- - - -

Short Term B B-

- -

Bra

zil

Nati

on

al

Sca

le Long Term A1.br brA- A(bra) 10.47Low Risk for the Medium Term (-)

A+ A

Short Term Br-1 F1(bra)


Key Performance Indicators – BR GAAP

4Q10 3Q10 4Q09 2010 2009

Earnings and Returns

Net Income (R$ million) 14,898 37,596 21,148 118,270 85,086

Annualized ROAE 7.0% 18.6% 10.7% 14.0% 10.3%

Annualized ROAAw 1 1.1% 3.0% 1.9% 2.3% 1.9%

Annualized financial margin before provision 8.5% 8.4% 11.3% 7.4% 7.8%

Annualized financial mergin after provision 4.9% 7.4% 11.9% 6.1% 6.7%

Balance Sheet (R$ thousand)Balance Sheet (R$ thousand)

Total loan portfolio 2 6,015,846 5,601,470 4,731,043 6,015,846 4,731,043

Corporate credit portfolio 2 5,746,649 5,265,410 4,118,057 5,746,649 4,118,057

Assets weighted by risk 5,473,250 5,206,221 4,682,157 5,473,250 4,682,157

Total deposits 3 3,698,360 3,584,541 3,029,269 3,698,360 3,029,269

Total funding 5,588,883 5,374,700 4,531,036 5,588,883 4,531,036

Shareholders' equity 867,132 872,761 825,212 867,132 825,212

Credit portfolio quality

Non performing loans - 15 days 0.26% 0.83% 0.77% 0.26% 0.83%

Non performing Loans - 60 days 0.24% 0.69% 0.72% 0.24% 0.69%

Non performing loans - 90 days 0.15% 0.56% 0.54% 0.15% 0.56%

Loan coverage 2.45% 1.74% 2.01% 2.45% 2.01%

PerformancePerformance

BIS ratio 17.4% 18.4% 15.6% 17.4% 15.6%

Efficiency ratio 33.8% 30.6% 26.4% 33.9% 34.6%

Earnings per share (R$) 0.18 0.45 0.25 1.41 1.02

Book value per share (R$) 10.33 10.47 9.90 10.33 9.90 (1) Risk weighted assets.


( ) g(2) Includes guarantees.(3) Includes Agribusiness Letter o f Credit.

Key Performance Indicators – IFRS

2010 2009 Year (%)

Earnings and Returns

Net Income (R$ thousand) 162,073 132,537 22.3

ROAE 19 9% 17 7% 220 bROAE 19.9% 17.7% 220 bps

ROAAw 1 3.2% 3.0% 20 bps

NIM 7.8% 8.4% -60 bps

Balance Sheet (R$ thousand)Balance Sheet (R$ thousand)

Total loan portfolio 2 6,004,414 4,722,309 27.1

Shareholders' equity 855,290 769,566 11.1

Loan coverage 2.0% 1.9% 10 bps

Performance

Efficiency ratio 31.5% 32.2% -70 bps

Earnings per share (R$) 1.95 1.58 23.4

Book value per share (R$) 10.19 9.23 10.3 (1) Ri k i ht d t(1) Risk weighted assets .(2) Includes guarantees.


Investor Relations

Norberto Zaiet Junior

CFOCFO

Nira Bessler

Head of Investor RelationsHead of Investor Relations

Alejandra Hidalgo

Investor Relations Analyst

Phone: +55-11-3372-5553 / 5552

www.bancopine.com.br/rir

[email protected]


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.

4q10 institutional presentation

Economy & Finance