bi&p- indusval - 3q13 results presentation

Your Banking Partner

Results Presentation

3Q13

Disclaimer

This presentation may contain references and statements representing future

expectations. plans of growth and future strategies of BI&P. These references and

statements are based on the Bank’s assumptions and analysis and reflect the

management’s beliefs. according to their experience. to the economic environment

and to predictable market conditions.

As there may be various factors out of the Bank’s control. there may be significant

differences between the real results and the expectations and declarations herewith

eventually anticipated. Those risks and uncertainties include. but are not limited to

our ability to perceive the dimension of the Brazilian and global economic aspect.

banking development. financial market conditions. competitive. government and

technological aspects that may influence both the operations of BI&P as the market

and its products.

Therefore. we recommend the reading of the documents and financial statements

available at the CVM website (www.cvm.gov.br) and at our Investor Relations page in

the internet (www.bip.b.br/ir) and the making of your own appraisal.

2

Highlights

3

Volume of origination by the Banco BI&P commercial team: the Expanded Credit Portfolio, including the loans assigned

to Banco Intercap, totaled R$3.4 billion, +3.9% in the quarter and +12.2% from September 2012. Including the Banco

Intercap portfolio, the consolidated Expanded Credit Portfolio totaled R$3.6 billion, +21.5% in the year.

The Emerging Companies and Corporate segments accounted for 48.7% and 50.5%, respectively.

Loans rated between AA and B corresponded to 84.5% of the expanded credit portfolio of Banco BI&P. Noteworthy are

the loans granted during the period: 99.9% were rated between AA and B

The Managerial Expense with ALL in 3Q13 (annualized) was 0.75% of the expanded credit portfolio (1.1% in 2Q13), in line

with the conservative credit policy adopted by the Bank and lower than Management’s expectations.

Funding volume totaled R$3.1 billion and Free Cash totaled R$657.9 million at the end of 3Q13, in line to the growth of

the loan portfolio.

Adjusted Revenue from Credit Operations and Agro Bonds (CPR), which reflects the Bank's core business, totaled

R$78.0 million in the period, increasing 12.7% in the quarter and 32.7% in 12 months.

Income from Services Rendered, which includes fees for structuring corporate finance operations, increased 16.7% in

3Q13 and 31.6% in 12 months.

Net Income from the quarter was R$2.0 million, mainly due to the increase in revenues from credit operations and CPR.

In the beginning of November, we announced the launch of guide investimentos, which will provide asset management

services for high-income individuals through an investment platform that includes investment consulting and advice,

financial content and intelligence, and a tailor-made product offering selected by analysts and economists.

On November 4, 2013, we concluded the acquisition of Banco Intercap S.A. and, consequently, announced a capital

increase of R$107 million, to be subscribed by the shareholders of Banco Intercap. Messrs. Roberto de Rezende Barbosa

and Afonso Antônio Hennel will join the Bank BI&P’s controlling group, and also, after approval by the extraordinary

shareholders’ meeting, the Board of Directors of the Bank as Vice Chairman and Director, respectively.

Banco BI&P Strategic Layout

COMMERCIAL BANK

82% ASSET GROWTH

STRONG QUALITY ASSET GENERATION

FUNDING DIVERSIFICATION

WELL PROVISIONED, SOLID CREDIT

PORTFOLIO

New Management

New Commercial Team

New Credit and HR Policies

New Structure of Controls

Business Repositioning

Multiproduct Offering

Treasury and Derivatives Desk

Active/Creative

JOINT VENTURES

FOR

ASSET GENERATION

MORE THAN R$400 MILLION OF

ASSETS ORIGINATED

New Joint Ventures

3 new partnerships in

negotiation, focusing the

following segments:

- Agriculture

- Real Estate

New Team Acquired

New Strategy in Course

Robust Pipeline and Backlog

Partnership with Moelis & Co.

(global investment bank)

INVESTMENT BANK

STRUCTURING AND FIXED-

INCOME DISTRIBUTION

52 MANDATES IN PROGRESS

MORE THAN 65 PROPOSALS

PRESENTED

BROKERAGE HOUSE

DISTRIBUTION

RETAIL FUNDING

NEW DISTRIBUTION PLATFORM

100% INCREASE IN THE CLIENT BASE

IN THE LAST 12 MONTHS

New Management Hired

Business Strategy and Model

Redefined

New Systems Acquired

Launched in November 2013

4

guide investimentos

5

guide investimentos: innovative investments platform

Operates in allocation and distribution of financial assets to high net worth individuals. Focus

Investment Funds (of third parties), fixed-income, credit, real estate funds, pension funds,

structured products, stocks, future markets and commodities.

Products

Portfolio

Tailor-made portfolio recommendation for each client without charging for rebates, eliminating

any eventual conflict of interest and allowing the recommendation of products that are more

suitable to each investment profile.

Value

Proposition

investment consulting and advice, financial content and intelligence, and a tailor-made product

offering selected by analysts and economists. Services

Acquisition of Banco Intercap

6

Concluded in November 2013

R$107 million, to be subscribed by Banco Intercap shareholders Capital

Increase

Shareholders of 2 solid groups will join the controlling group and the Board of Directors: Afonso

Hennel (Semp Group) and Roberto de Rezende Barbosa (NovAmerica / Cosan)

Corporate

Governance

Intercap operations has been absorbed into Banco BI&P technological infrastructure, expected

to be ended on January 1, 2014 Technology

Integration taking place, estimated to end in December 2013

By the end of the process, Banco BI&P will have a smaller team compared to June 2013 People

Index of 15.4%, in case of the acquisition had been concluded in September 2013 Basel Index

2,991 3,068 3,048 3,229 3,355

3,635

3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*

R$ m

ilhões

Expanded Credit Porfolio Intercap Expanded Credit Portfolio BI&P

Portfolio assigned to Intercap Private Credit Bonds (PN and Debentures)

Agricultural Bonds (CPR, CDA/WA and CDCA) Guarantees Issued (L/G and L/C)

Trade Finance Loans and Financing in Real

Expanded Credit Portfolio Growth of 21.5% in 12 months.

7 * Considers the consolidated Expanded Credit Portfolio, which includes the expanded credit portfolio of Banco Intercap.

1,253 1,200

1,445 1,538 1,586

3Q12 4Q12 1Q13 2Q13 3Q13

R$ m

illion

Emerging Companies

1,682 1,820 1,567 1,659 1,644

3Q12 4Q12 1Q13 2Q13 3Q13

R$

mill

ion

Corporate

Client Segmentation Emerging Companies and Corporate segments participation in the expanded

portfolio of Banco BI&P near the strategic mix of 50%-50%...

8 Note: Other Credits includes Consumer Credit Vehicles. Acquired Loans and Non-Operating Asset Sales Financing.

Migration of clients from Emerging Companies to Corporate = ~R$260mn as of Sept. 30. 2012

Annual revenues from R$80mn to R$400mn Annual revenues of between R$400mn and R$2bn

Average exposure per client |

R$ million 2Q13 3Q13

Corporate 8.1 8.4

Emerging Companies 3.6 3.2

47.6%

48.7%

51.4%

50.5%

1.0%

0.8%

2Q13

3Q13

Emerging Companies Corporate Other

Expanded Credit Portfolio Development ...focusing on higher quality assets...

9

687 728 589

773 685

3Q12 4Q12 1Q13 2Q13 3Q13

R$ m

illion

New Transaction

3,229 3,258 685 (582)

(63) (11)

2Q13 AmortizedCredits

CreditExits

Write offs NewOperations

3Q13

R$ m

illion

99% of the new

transactions in the

last 12 months are

classified between

AA and B.

Loans 30.8%

Credit Assignments

5.7%

Confirming 0.0%

Discount Receivables

0.3%

NCE 5.9%

CCE 3.3%

CCBI 2.5%

Loans & Discounts in

Real 49%

Trade Finance

12%

BNDES Onlendings

10%

Guarantees Issued

6% Agricultural Bonds 21%

Private Credit Bonds

0.9%

Other 1%

3Q13

Loans 32.8%

Credit Assignments

16.5%

Confirming 0.6%

Discount Receivables

0.2%

NCE 1.9%

CCE 2.2%

CCBI 1.8%

Expanded Credit Portfolio ...and increasing the new products share in the portfolio...

10

Loans & Discounts in

Real 56%

Trade Finance

16%

BNDES Onlendings

10%

Guarantees Issued

6% Agricultural Bonds 10%

Private Credit Bonds

1.4%

Other 1%

3Q12

NCE: Export Credit Notes; CCE: Export Credit Certificate; CCBI: Real Estate Credit Bank Note.

12.8%

1.8%

2.3%

2.4%

2.6%

2.6%

2.7%

3.4%

3.7%

3.7%

4.3%

4.4%

5.5%

7.5%

7.9%

8.7%

23.6%

Other industries*

Financial Activities

Metal Industry

Education

Raw Materials

Chemical & Pharmaceutical

Textile, Apparel & Leather

Power Generation & Distribution

Transportation & Logistics

Commerce - Retail & Wholesale

Livestock

Infrastructure

Automotive

Oil, Biofuel & Sugar

Food & Beverage

Construction

Agriculture

3Q13

7.5% 1.4% 1.5% 1.8% 2.0% 2.4% 2.8% 3.0% 3.0% 3.4% 3.5% 3.9% 3.9% 3.9% 4.0%

5.2% 6.9%

7.6% 8.1%

8.9% 15.3%

Other industries*

Information, Comunication and I.T.

Electronics

Machines and Equipment

Power Generation & Distribution

Education

Chemical & Pharmaceutical

International Comerce

Textile, Apparel & Leather

Transportation & Logistics

Infrastructure

Pulp and Paper

Commerce - Retail & Wholesale

Financial Activities

Metal Industry

Oil, Biofuel & Sugar

Food & Beverage

Livestock

Automotive

Construction

Agriculture

3Q12

Expanded Credit Portfolio ...with relevant exposure in agriculture...

11 * Other industries with less than 1.4% of share.

Expanded Credit Portfolio ...and promoting risk dilution.

12

18.5%

13.3%

11.7%

32.0%

29.6%

28.6%

26.9%

27.0%

26.0%

22.2%

30.0%

33.7%

3Q11

3Q12

3Q13

Client Concentration

Top 10 11 - 60 largest 61 - 160 largest Other

The reduction of concentration is one of the results

of the new credit policy adopted since April 2011.

Credit Portfolio Quality 99.9% of loans granted in the quarter were rated from AA to B

13

Credits rated between D and H totaled R$317.8

million at the end of 3Q13:

− R$247.6 million (78% of Credit Portfolio

between D-H) in normal payment course;

− Only R$70.1 million overdue +60 days; and

− 66.2% covered. 6%

3%

2%

37%

42%

36%

35%

38%

42%

14%

7%

7%

8%

11%

13%

3Q12

2Q13

3Q13

AA A B C D - H

79.7%

81.7%

78.4%

AA 2%

AA 2%

AA 3%

A 36%

A 42%

A 3%

B 42%

B 48%

B 11%

C 7%

C 4%

C 23% D - H

13% D - H 3%

D - H 60%

3Q13

* New Credit Policy: adopted since April 2011.

New Credit Policy* Clients

Loan Portfolio

Previous Credit Policy Clients

Loan Portfolio

In Sept 2013, 66.2%

of credits rated

between D-H covered

Operating Performance and Profitability

14

Adjusted Revenues from Credit Operations and CPR 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

A. Revenues from Credit Operations and agro bonds (CPR) 79.4 60.0 32.4% 62.9 26.3%

B. Recoveries of written-of operations 3.0 1.7 75.2% 5.9 49.1%

C. Discounts granted on settled operations (1.6) (11.0) 85.5% (1.8) -11.4%

Adjusted Revenues from Credit Operations and CPR (A-B-C) 78.0 60.7 12.7% 74.3 32.3%

5.8% 5.3% 5.4% 3.2% 5.6% 5.9% 4.7%

4.5% 4.4% 4.1% 4.1% 4.1% 4.8% 4.1%

3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13

Net Interest Margin (NIM)

NIM without effects of discontinuance of designation of hedge accounting and discounts *

Managerial NIM with Clients *

* Includes revenues from agro bonds (CPR)

Credit Portfolio Quality

15

1 Managerial Expense with Allowance for Loan Losses (ALL) = ALL expenses + Discounts granted upon settlement of loans – Revenues from

recovery of loans written off. | * New Credit Policy: adopted since April 2011.

5.5% 4.5%

8.5% 8.2%

12.4%

1.9% 1.2% 2.2% 2.1% 2.6%

0.3% 0.1% 0.4% 0.5% 0.6%

3Q12 4Q12 1Q13 2Q13 3Q13

NPL 90 days / Credit Portfolio

Clients Previous Credit Policy Total

Clients New Credit Policy*

7.5%

4.9%

9.4% 10.6%

14.0%

3.1% 1.5%

2.3% 2.6% 2.9%

1.1% 0.4% 0.4% 0.5% 0.6%

3Q12 4Q12 1Q13 2Q13 3Q13

NPL 60 days / Credit Portfolio

Clients Previous Credit Policy Total

Clients New Credit Policy*

Managerial Allowance for Loan Losses (ALL)

Expense1 in 3Q13, annualized, was 0.75% of

the Expanded Credit Portfolio

1.10%

0.75%

2Q13 3Q13

Managerial ALL Expense 1

Time Deposits (CDB) 23%

Insured Time

Deposits (DPGE)

30%

LCA 19%

LF and LCI 3%

Interbank & Demand Deposits

2%

Onlandings 11%

Foreign Borrowings

12%

3Q13

2,936 2,999 3,170 3,142 3,082

3Q12 4Q12 1Q13 2Q13 3Q13

R$ m

illion

In Local Currency in Foreign Currency

Funding Product mix helps with cost reduction

16

Time Deposits (CDB) 23%

Insured Time

Deposits (DPGE)

35% LCA 11%

LF and LCI 1%

Interbank & Demand Deposits

5%

Onlandings 10%

Foreign Borrowings

15%

3Q12

Operating Performance and Profitability

17 n.r.= not representative

3.1 3.6 2.0

3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13

R$ m

illion

Net Profit

-110.1

2.2 2.5 1.4

2.4

3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13

Return on Average Equity (ROAE) %

n.r.

-91.4

n.r.

-20.6

n.r.

10.8

587.6 587.2 498.4

569.6 574.5

683.0

3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*

R$ m

illion

Shareholders’ Equity

15.82% 14.94% 14.17% 14.55% 14.48% 15.4%

3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*

Basel Index (Tier I)

5.1x 5.2x 6.1x

5.7x 5.7x 5.3x

3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*

Leverage Expanded Credit Portfolio / Equity

Capital Structure and Ratings

18

Agency Rating Last

Report

Standard & Poor’s

Global: BB/Negative/ B

National: brA+/Negative/brA-1 Aug/13

Moody’s Global: Ba3/Negative/Not Prime

National: A2.br/Negative/BR-2 Jul/13

Fitch

Ratings National: BBB/Stable/F3 Set/13

RiskBank Index: 9.80

Low Risk Short Term Oct/13

* Simulation of the conclusion of the merger with Banco Intercap at the end of 3Q13.

BI&P+

Intercap

BI&P+

Intercap

BI&P+

Intercap

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