1/20

BI&P - Banco Indusval & Partners is a commercial bank with more than 45 years of experience in the financial market, focusing on local and foreign

currency, fixed income and corporate finance for companies. BI&P relies on a network of 11 branches strategically located in economically relevant

Brazilian regions, including an offshore branch in Cayman Islands, its brokerage firm operating at the São Paulo Stock, Commodities and Futures

Exchange - BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which originates agricultural bonds.

Highlights

Expanded Credit Portfolio of R$3.9 billion, with organic and inorganic

growth of 15.3% in the quarter and 26.1% in relation to December 2012.

Organic portfolio growth, considering only the loans originated by BI&P, was

9.0% in the quarter and 19.2% in the year.

Loans rated between AA and B, after consolidating the balance sheet of

Banco Intercap, totaled 87.1% of the expanded credit portfolio (81.4% in

December 2012). 99% of the loans granted in the quarter were rated

between AA and B.

Emerging Companies and Corporate segments accounted for 47.0%

and 52.2%, respectively, of the expanded credit portfolio.

Managerial Expense with Allowance for Loan Losses (ALL)

(annualized) in 4Q13 was 0.95% of the expanded credit portfolio (0.75% in

3Q13), in line with the conservative lending policy adopted by the Bank and

lower than Management’s expectations.

Funding totaled R$3.9 billion and Free Cash totaled R$758.0 million at the

end of 4Q13, keeping step with credit portfolio growth.

Income from Services Rendered and Tariffs totaled R$9.9 million in the

quarter, slightly lower than in the previous quarter but 42.8% higher than in

4Q12.

Result in the quarter was a loss of R$10.0 million, mainly due to the following: (i)

the more conservative approach to lending, (ii) the negative impact, with no cash

effect, of the discontinuance of the designation of hedge accounting of operations

to protect cash flows, which continue to be protected by hedge operations, and

(iii) the ALL expense of Banco Intercap in 4Q13, that reached the limit of R$6.0

million established by the shareholders of both banks for the first year after the

merger, concentrating this expense in a single quarter and generating an

accounting loss of R$2.3 million for Intercap in 4Q13, further consolidated to the

financial statements of Banco BI&P.

In November 2013, we announced the launch of the project to transform our

brokerage arm, Guide Investimentos, which, besides continuing to serve our

institutional customers, will now also provide asset management services for high

income individuals through an innovative investment platform. With the

announcement, in February 2014, of the strategic alliance with Omar Camargo

Corretora de Valores, the biggest and most traditional company in the sector in

the state of Paraná, apart from expanding its customer base, Guide is also

embarking on geographical and operational expansion across all states in

Southern Brazil. The creation of Guide is strategically important for the Bank, both

in terms of distribution of the products developed by our investment banking

team and in the diversification of the Bank’s funding sources.

IDVL4: R$4.45 per share

Closing: February 26, 2014

Outstanding Shares: 88,800,610

Market Cap: R$395.2 million

Price/Book Value: 0.59

Conference Call / Webcasts

February 27, 2014

In English

10 a.m. (US EST) / 1 p.m. (Brasília)

Connections

Brazil: +55 11 4688-6361

EUA: +1 786 924-6977

Code: Banco BI&P

In Portuguese

9 a.m. (US EST) / 12 p.m. (Brasília)

Number: +55 11 4688-6361

Code: Banco BI&P

Website www.bip.b.br/ir

Expanded Credit Portfolio of R$3.9 billion, 15.3% up in 4Q13, with the merger of Banco Intercap

Launch of Guide Investimentos completes BI&P restructuring cycle

99% of fresh loans granted by BI&P in the period rated between AA and B

Managerial ALL Expense (annualized) lower than 1% of the expanded portfolio, reflecting the healthy

credit portfolio

2/20

Summary

Message from Management ................................................................................................. 3

Macroeconomic Scenario ..................................................................................................... 4

Key Indicators ................................................................................................................... 5

Operating Performance ....................................................................................................... 6

Credit Portfolio .................................................................................................................. 9

Funding .......................................................................................................................... 14

Free Cash ....................................................................................................................... 15

Capital Adequacy ............................................................................................................. 15

Credit Ratings .................................................................................................................. 15

Capital Markets ................................................................................................................ 16

Balance Statement ........................................................................................................... 18

Income Statement ........................................................................................................... 20

3/20

Message from the Management

In 4Q13, we concluded the second phase of the strategic restructuring program we launched in April 2011. In

this second phase, the focus was on strengthening the investment banking area, gaining scale and diversifying

the funding structure. During the course of 2013, these objectives were attained through:

The joint venture C&BI Agro Partners between Banco BI&P and Ceagro Agrícola Ltda to focus on

originating agro bonds. With this merger, we positioned ourselves as a major partner in Brazil’s agro

business market: the agro bonds portfolio, which totaled R$327.1 million at the end of 2012, ended 2013 at

R$758.8 million, growing 132% in the period.

The acquisition of Voga Empreendimentos e Participações Ltda, expanding our operation into fixed

income securities, long-term funding, mergers and acquisitions, and structured operations.

Additional allowance for loan losses in the amount of R$110.7 million for loans granted before April

2011, to prevent contamination of the Bank’s future results, and the subsequent capital increase of

R$90.0 million to which Warburg Pincus, a private equity fund, the controlling shareholders and a few other

shareholders of the Company subscribed.

The merger of Banco BI&P with Banco Intercap, expanding our capital base and strengthening the

controlling group and the Board of Directors of BI&P with the entry of Messrs. Afonso Antônio Hennel and

Roberto de Rezende Barbosa, former controlling shareholders of Banco Intercap.

The launch of the project to transform our brokerage Guide Investimentos, which provides wealth

management services for high income individuals, thereby expanding our capacity for distribution of

investment products, diversification of funding sources and broadening our fee revenue sources.

As a result of the initiatives taken in 2013, we closed the quarter with a significant growth in the expanded credit

portfolio, which totaled R$3.9 billion, up 15.3% in the quarter (9.0% organic growth) and 26.1% in the year

(19.2% organic). Loans to the Corporate segment corresponded to 52.2% and loans to the Emerging Companies

segment accounted for 47.0% of the expanded credit portfolio.

We maintained the high quality of the expanded credit portfolio, which closed 4Q13 with 87.1% of the loans

rated between AA and B (81.4% in 4Q12). The managerial allowance for loan losses (annualized) was 0.95% in

the quarter, which is in line with the credit risk profile drawn up by the management.

Funding volume kept in step with credit portfolio growth, ending the quarter at R$3.9 billion, for growth of

26.3% from 3Q13 and 29.8% in twelve months. It is worth highlighting the funds raised through time deposits

(bank deposit certificates (CDB) and time deposits with special guarantee (DPGE)), agribusiness letters of credit

(LCA), real estate letters of credit (LCI) and bank notes (LF), which reached the historic mark of R$3.0 billion in

this quarter, and the increase in the number of customers, which increased from 2,538 in September 2013 to

3,973 in December 2013, especially through the distribution of our funding products in the retail segment

through brokers and distributors.

Result in the quarter was a loss of R$10.0 million, mainly due to the following: (i) the more conservative

approach to lending, (ii) the negative impact, with no cash effect, of the discontinuance of the designation of

hedge accounting of operations to protect cash flows, which continue to be protected by hedge operations, and

(iii) the ALL expense of Banco Intercap in 4Q13, that reached the limit of R$6.0 million established by the

shareholders of both banks for the first year after the merger, concentrating this expense in a single quarter and

generating an accounting loss of R$2.3 million for Intercap in 4Q13, further consolidated to the financial

statements of Banco BI&P.

The expected profitability will come with scale gains, that is, with the expansion of the credit portfolio and

increase in service fees. For this, we rely on well-structured teams that are committed to our institutional values

and are already executing the strategies drawn up. Today we have a robust Bank that is prepared for both

growth and new business. In 2013 we sowed the seeds and in 2014 we expect to reap the fruits of executing our

strategic plan.

4/20

Macroeconomic Scenario

The last quarter of the year was marked by growing market concerns about the deteriorating public finances in

Brazil and the possible downgrade of the country’s rating by international rating agencies. Though the Brazilian

government’s primary surplus in 2013 was higher than its committed target, a sizable portion of these funds

came from extra revenues, further increasing the market’s apprehensions about the state of public finances in

2014 - an election year. With regard to economic activity, the industrial sector continued its weak performance in

October, November and December, forcing a downward revision of economic growth projections for 2013 and

2014. On the positive side, the notable developments were the auctions for infrastructure concessions held in the

closing months of the year, which will encourage investments in highways, ports and airports.

Even in an environment of moderate economic activity, inflation remains at uncomfortably high levels, with the

Extended National Consumer Price Index (IPCA) well above the center of the target of 4.5%. Despite the price

controls implemented by the government, IPCA ended 2013 up 5.91%, higher than the 5.84% in 2012. The main

items behind the increase in prices during the year were Food and Beverages, and Personal Expenses. In this

scenario, the Central Bank of Brazil continued its monetary tightening policy, raising the basic interest rate (Selic)

by one more percentage point in the quarter to close December at 10% p.a.

In the foreign exchange market, October to December saw a highly volatile U.S. dollar due to the uncertainties

about fiscal management in Brazil and the U.S. Federal Reserve’s decision to reduce purchases of treasury bonds

and mortgage-backed bonds by US$10 billion. These oscillations and the consequent depreciation of the Brazilian

real against the dollar led the Central Bank of Brazil to announce the extension of the foreign exchange auction

program, with a few adjustments, to at least until June 30, 2014. In January, the Bank started scaling down the

foreign exchange swap offering from US$500 million to US$200 million daily. Despite these measures, the dollar

rose 6.1% in the last three months of 2013 to close the year R$2.36/US$.

Credit volume in Brazil’s national financial system grew 14.6% in the year to reach R$2.715 trillion. Average loan

term increased from 87.5 months in December 2012 to 101.6 months in December 2013. Credit as a percentage

of GDP ended December at 56.5%, higher than 55.1% at the end of September, and has remained above 50%

since May 2012.

Default in the individuals segment dropped from 8.0% in 4Q12 to 6.7% in 4Q13, while corporate default declined

from 3.7% to 3.1%. These marginal improvements in default rates are the result of the more selective approach

to credit adopted by Brazilian banks.

Macroeconomic Data 4Q13 3Q13 4Q12 2013 2014(e)

Real GBP Growth (Q/Previous Q) 0.0%(e) -0.50% 0.90% 2.1%(e) 1.50%

Inflation (IPCA - IBGE) – quarterly change 2.00% 0.60% 2.00% 5.90% 6.00%

Inflation (IPCA - IBGE) – annual change 5.90% 5.90% 5.80% 5.90% 6.00%

FX (US$/R$) – quarterly change 6.10% -0.40% 1.10% 15.40% 3.40%

Interest Rate (Selic) 10.00% 9.00% 7.25% 10.00% 11.00%

e= expected

5/20

Key Indicators

The financial and operating information presented in this report are based on consolidated financials prepared in millions of Real (local

currency), according to Brazilian GAAP (BRGAAP), except were otherwise stated.

Results 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

Loan Operations & Agro Bonds (CPR) adjusted 1 110.7 78.0 41.9% 60.8 81.9% 318.6 267.4 19.2%

Effect of recoveries and discounts (0.5) 1.4 -133.0% 7.1 -106.5% (10.5) 10.8 -196.4%

Revenues from Securities (w/o CPR), Derivatives & FX 46.5 46.9 -1.0% 49.5 -6.2% 184.6 325.2 -43.2%

Effect of discontinuance of hedge accounting (3.6) (0.1) n.c. 6.2 -157.4% (32.9) 36.6 -189.8%

Financial Intermediation Expenses (w/o ALL) (111.4) (80.2) 38.8% (75.2) 48.1% (347.1) (432.7) -19.8%

Result from Financial Int. before ALL 41.7 46.0 -9.2% 48.5 -14.0% 112.8 207.4 -45.6%

ALL Expenses 2 (16.0) (6.7) 140.0% (7.9) 103.8% (156.2) (56.7) 175.3%

ALL Expenses - Banco BI&P (7.0) (6.7) 5.7% (7.9) -10.2% (147.2) (56.7) 159.6%

ALL Expenses - Banco Intercap 3 (9.0) 0.0 n.c. 0.0 n.c. (9.0) 0.0 n.c.

Result from Financial Intermediation 25.7 39.3 -34.5% 40.7 -36.8% (43.4) 150.6 -128.8%

Net Operating Expenses (38.3) (32.3) 18.5% (33.8) 13.2% (140.2) (118.7) 18.1%

Recurring Operating Result (12.6) 7.0 -280.3% 6.9 -283.6% (183.6) 31.9 n.c.

Non-Recurring Operating Expenses 0.0 (0.7) n.c. 0.0 n.c. (1.0) (0.3) 274.7%

Operating Result (12.6) 6.3 -299.4% 6.9 -283.6% (184.6) 31.7 n.c.

Net Profit (Loss) (10.0) 2.0 n.c. 3.6 n.c. (120.0) 14.2 n.c.

Assets & Liabilities 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12

Loan Portfolio 3,025.2 2,549.0 18.7% 2,624.3 15.3%

Expanded Loan Portfolio 4 3,867.1 3,355.2 15.3% 3,067.9 26.1%

Cash & Short Term Investments 241.0 179.8 34.1% 447.8 -46.2%

Securities and Derivatives 1,347.7 1,278.7 5.4% 731.3 84.3%

Securities excl. Agro. & Private Credit Bonds5 684.8 673.1 1.7% 445.9 53.6%

Total Assets 4,936.8 4,171.0 18.4% 4,022.0 22.7%

Total Deposits 3,219.0 2,391.2 34.6% 2,274.6 41.5%

Open Market 85.9 107.5 -20.1% 241.9 -64.5%

Foreign Borrowings 364.3 365.3 -0.3% 388.6 -6.3%

Domestic Onlendings 310.0 325.4 -4.7% 335.5 -7.6%

Shareholders’ Equity 674.2 574.5 17.4% 587.2 14.8%

Performance 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

Free Cash 758.0 657.9 15.2% 571.1 32.7%

NPL 60 days/ Loan portfolio 2.3% 2.9% -0.6 p.p. 1.5% 0.8 p.p.

NPL 90 days/ Loan portfolio 1.9% 2.6% -0.8 p.p. 1.2% 0.7 p.p.

Basel Index 14.8% 14.5% 0.4 p.p. 14.9% -0.1 p.p.

ROAE -6.2% 1.4% -7.6 p.p. 2.5% -8.7 p.p. -19.0% 2.4% 0.0 p.p.

Adjusted Net Interest Margin (NIMa) 6 5.0% 5.6% -0.6 p.p. 5.2% -0.2 p.p. 4.7% 5.7% -1.0 p.p.

Efficiency Ratio 101.0% 84.0% 17.0 p.p. 78.4% 22.6 p.p. 130.1% 68.7% 61.4 p.p.

Other Information 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12

Number of Corporate Clients 1,063 865 22.9% 851 24.9%

Number of Employees 443 432 2.5% 436 1.6%

Banco BI&P and Voga employees 372 371 0.3% 401 -7.2%

Brokerage house and Serglobal employees 71 61 16.4% 35 102.9%

n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero).

Details in the respective sections of this report: 1 Excluding (i) revenues from recovery of loans written off, and (ii) discounts granted upon settlement of operations in the period. More

details in the Profitability section of this report. 2 Including additional provisions. 3 More details are included on page 7 of this report. 4 Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and Agro Securities (CDCA, CDA/WA and CPR). 5 Excluding Agro Securities (CPRs and CDA/WA) and Private Credit Bonds (PNs and debentures) for trading. 6 Excluding (i) repos with equivalent volumes, tenors and rates both in assets, and (ii) effects of the discontinuance of the treatment of hedge

accounting, and also discounts granted in operations settled in the period.

6/20

Operating Performance

Financial Intermediation Result

before Allowance for Loan Losses Net Profit

Expanded Credit Portfolio Funding

Profitability Financial Intermediation 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

Financial Intermediation Revenues 153.1 126.2 21.3% 123.7 23.7% 459.9 640.0 -28.1%

Loan Operations and Agro Bonds adjusted ** 110.7 78.0 41.9% 60.8 81.9% 318.6 267.4 19.2%

Effects recoveries and discounts ** (0.5) 1.4 -133.0% 7.1 -106.5% (10.5) 10.8 -196.4%

Loan Operations and Agro Bonds 110.2 79.4 38.8% 68.0 62.1% 308.2 278.2 10.8%

Loans, Discount Receivables and Agro bonds (CPR) 99.0 68.7 44.0% 52.5 88.6% 264.6 225.2 17.5%

Financing 9.5 7.7 23.7% 7.5 26.3% 32.8 29.3 11.8%

Other 1.7 3.0 -43.3% 8.0 -78.6% 10.7 23.7 -54.7%

Securities (w/o Agro bonds) 26.4 21.4 23.4% 23.0 14.7% 77.3 245.1 -68.5%

Derivatives (6.5) 2.9 n.c. 15.6 -141.7% (9.4) 22.1 -142.4%

FX Operations Result 23.0 22.4 2.6% 17.2 33.6% 83.8 94.6 -11.4%

Financial Intermediation Expenses (111.4) (80.2) 38.8% (75.2) 48.1% (347.1) (432.7) -19.8%

Money Market Funding (82.5) (56.4) 46.2% (56.4) 46.2% (245.2) (330.3) -25.8%

Time Deposits (59.2) (40.8) 45.2% (40.0) 48.2% (181.3) (163.3) 11.0%

Repurchase Transactions (4.8) (2.7) 82.5% (8.4) -42.3% (15.1) (129.7) -88.3%

Interbank Deposits (0.4) (0.6) -29.1% (1.6) -74.9% (3.0) (10.5) -71.1%

Agro (LCA), Real Estate (LCI) & Bank Notes (LF) (18.1) (12.4) 45.2% (6.5) 177.8% (45.7) (26.8) 70.5%

Loans, Assignments & Onlending (28.4) (23.2) 22.1% (18.8) 51.2% (100.9) (102.4) -1.5%

Foreign Borrowings (22.6) (18.3) 22.9% (14.5) 55.7% (80.0) (84.7) -5.6%

Domestic Borrowings & Onlending (4.7) (4.9) -4.4% (4.3) 9.3% (19.7) (17.6) 11.9%

Sales operations/transfer of financial assets (0.5) (0.5) -12.5% 0.0 n.c. (1.0) 0.0 n.c.

Gross Result from Financial Interm. before ALL 41.7 46.0 -9.2% 48.5 -14.0% 112.8 207.4 -45.6%

Allowance for Loan Losses (ALL) (16.0) (6.7) 140.0% (7.9) 103.8% (156.2) (56.7) 175.3%

ALL Expenses - Credits from Banco BI&P (7.0) (6.7) 5.7% (7.9) -10.2% (147.2) (56.7) 159.6%

ALL Expenses - Credits from Banco Intercap (9.0) 0.0 n.c. 0.0 n.c. (9.0) 0.0 n.c.

Gross Result from Financial Intermediation 25.7 39.3 -34.5% 40.7 -36.8% (43.4) 150.6 -128.8% * Excluding the effects of (i) discounts granted upon settlement of loans in the peri, and (ii) by the discontinuance of the designation of hedge accounting, more details in the Profitability section of this report. ** Excluding the effects of (i) recoveries from operations written off, and (ii) discounts granted upon settlement of loans in the period.

48.5

22.8

2.4

46.0 41.7 44.3 44.8

26.9

47.7 47.5

4Q12 1Q13 2Q13 3Q13 4Q13

R$ m

illio

n

Financial Intermediation Result before ALL

Financial Intermediation Result before ALL adjusted *

3.6 2.0

-10.0

14.2

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

R$ m

illio

n

-20.6 -91.4

3.1 3.0 3.2 3.4 3.9

4Q12 1Q13 2Q13 3Q13 4Q13

R$ b

illio

n

Private Credit Bonds (PNs and Debentures)

Agro Bonds (CPR, CDA/WA and CDCA)

Guarantees Issued

Trade Finance

Loans and Financing in Real

3.0 3.2 3.1 3.1

3.9

4Q12 1Q13 2Q13 3Q13 4Q13

R$ b

iliio

n

Trade Finance & Foreign Borrowings

Domestic Onlending Interbank & Demand Deposits

Agro Bonds, Bank & Real Estate Notes Insured Time Deposits (DPGE)

Time Deposits

29.8%

-120.0

7/20

Financial Intermediation Result before allowance for loan losses closed 4Q13 at R$41.7 million, as against R$46.0

million in 3Q13, down 9.2% mainly due to the following: (i) in the item derivative financial instruments, by the

discontinuance of the designation of hedge accounting, adopted in 2Q12, of operations to protect cash flows,

which continue to be protected by hedge operations (with no cash effect), and (ii) in the item loan operations, by

the discounts granted on loans settled during the period.

Adjusted Revenue from Loan Operations and CPR, from which the impact of discounts granted upon settlement

of loans and recoveries of loans written off is excluded to enable better comparison, as shown below, increased

41.9% in 4Q13 and 19.2% in 2013, reflecting the increase in the average balance of the loan portfolio and CPR

in the periods.

Adjusted Revenues from Loan Operations and CPR 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

A. Revenues from Loan Operations and Agro Bonds (CPR) 110.2 79.4 38.8% 68.0 62.1% 308.2 278.2 10.8%

B. Recoveries of written-off operations 1.7 3.0 -43.3% 8.0 -78.6% 10.7 23.7 -54.7%

C. Discounts granted upon settlement of operations (2.2) (1.6) 36.8% (0.8) 164.6% (21.2) (12.8) 65.1%

Adj. Revenues from Loan Operations and CPR (A-B-C) 110.7 78.0 41.9% 60.8 81.9% 318.6 267.4 19.2%

Revenue from Securities, with offset in funding expenses, totaled R$47.0 million, up 31.0% in the quarter. As in the

previous quarter, revenue from securities was mainly driven by revenue from fixed-income securities, especially CPRs

and government bonds.

The result from derivative financial instruments includes results from operations involving swaps, forwards, futures

and options used to hedge against exchange and interest rate exposure for funding operations indexed to the inflation

indexes, as well as foreign borrowings (non-trade related), hedging of commodity prices resulting from CPR operations

and indexers of federal government bonds held in the securities portfolio, in addition to the directional portfolio. This

item was an expense of R$6.5 million in the quarter. Excluding the effects of the discontinuance of the designation of

hedge accounting, which has no cash effect and which, since 2Q12, has been affecting this item in the Income

Statement instead of Shareholders’ Equity, the item would be a negative R$2.9 million in the quarter.

Both income from foreign exchange transactions and expenses with foreign borrowings were especially affected

by the oscillation in the dollar (US$)/real (R$) exchange rate and by the decline in customer demand.

Expenses with Time Deposits increased in the quarter, mainly due to the following: (i) increase in the average

balance of time deposits in the period, of R$120.7 million, in both CDBs and DPGEs, and (iii) the consecutive

hikes in the basic interest rate (Selic) during the period. The decrease in Expenses with Interbank Deposits is

directly related to the decline in the average balances of interbank deposits, while Expenses with Agribusiness

Letters of Credit, Real Estate Notes and Bank Notes increased, mainly due to the increase in their average

balances.

The managerial expense with allowance for loan losses in the quarter, which includes similar expense at Banco

Intercap, and considering the discounts granted upon loan settlements, recovery of loans written off and

reimbursement by the former controllers of Banco Intercap totaled R$13.3 million, which corresponds to 0.95%

(annualized) of the expanded credit portfolio.

Note that at the time of merger of Banco Intercap with Banco BI&P, the controlling shareholders of both banks

agreed that the allowance for loan losses on loans originated at Banco Intercap and absorbed by Banco BI&P in

the first year after the merger will not exceed R$6.0 million and that Banco BI&P will be reimbursed by the

former controlling shareholders of Banco Intercap if this expense is higher than the ceiling established for the

period. In 4Q13, the first quarter of this period, the loans originated by Banco Intercap generated an expense

higher than the ceiling and the reimbursement was booked under Other Operating Income.

Result from Financial Intermediation totaled R$25.7 million in the quarter, compared to R$39.3 million in 3Q13,

mainly due to the above-mentioned effects.

8/20

Net Interest Margin (NIM)

As described in the section on Profitability, considering the effects on the result from financial intermediation

from the discontinuance of the designation of hedge accounting and discounts granted upon settlement of loans,

adjusted NIM was 5.0% in 4Q13, as the following table shows:

Net Interest Margin 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

A. Result from Finan. Int. before ALL adjusted 1 47.5 47.7 -0.5% 43.1 10.0% 166.9 183.6 -9.1%

A.a. Result from Finan. Interm. before ALL 41.7 46.0 -9.2% 48.5 -14.0% 112.8 207.4 -45.6%

B. Average Interest bearing Assets 4,018.5 3,657.9 9.9% 3,891.0 3.3% 3,735.9 4,106.4 -9.0%

Adjustm. for non-remunerated average assets 2 (116.4) (154.4) -24.6% (505.2) -77.0% (173.8) (870.8) -80.0%

B.a. Adjusted Average Interest bearing Assets 3,902.1 3,503.5 11.4% 3,385.8 15.2% 3,562.1 3,235.6 10.1%

Net Interest Margin (Aa/Ba) 4.3% 5.4% -1.0 p.p. 5.9% -1.5 p.p. 3.2% 6.4% -3.2 p.p.

Adjusted Net Interest Margin (A/Ba) 1 5.0% 5.6% -0.6 p.p. 5.2% -0.2 p.p. 4.7% 5.7% -1.0 p.p.

Managerial NIM with Clients 4.0% 4.1% -0.1 p.p. 4.4% -0.4 p.p. 4.0% 4.1% 0.0 p.p.

1 Excluding (i) effects of the discontinuance of the treatment of hedge accounting, adopted in 2Q12, for booking hedges of cash flows, which

continue to be protected by hedge, and (ii) discounts granted in operations settled in the period. 2 Repos with equivalent volumes, tenors and rates both in assets and liabilities.

Managerial Interest Margin with Clients, which consists of revenues from loan operations, derivatives, CPR

operations and guarantees issued to clients, and excludes discounts granted upon settlement of loans, remained

stable in the quarter. In twelve months, margin declined 0.4 p.p., as a result of a more conservative profile of

the portfolio.

Efficiency

The efficiency ratio in the quarter was 101.0%, up 17.0% p.p. in relation to 3Q13.

Efficiency Ratio 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12 2013 2012 2013/2012

Personnel Expenses 29.8 24.1 23.8% 23.7 25.8% 106.4 89.8 18.5%

Contributions and Profit-sharing 1.8 1.9 -2.2% 1.8 -0.3% 11.8 9.2 28.6%

Administrative Expenses 21.6 17.2 25.5% 13.3 61.7% 67.8 53.1 27.6%

Taxes 3.8 2.9 29.2% 4.3 -12.1% 12.4 12.6 -1.9%

A. Total Operating Expenses 57.0 46.1 23.7% 43.2 32.0% 198.4 164.8 20.4%

Gross Income Financial Intermediation (w/o ALL) 41.7 46.0 -9.2% 48.5 -14.0% 112.8 207.4 -45.6%

Income from Services Rendered 9.6 10.1 -4.3% 6.7 43.0% 34.8 26.4 32.1%

Income from Banking Tariffs 0.3 0.2 42.9% 0.2 36.3% 0.8 0.7 10.1%

Other Net Operating Income * 4.8 (1.4) n.c. (0.4) n.c. 4.1 5.4 -23.9%

B. Total Operating Income 56.4 54.9 2.8% 55.1 2.5% 152.5 239.8 -36.4%

Efficiency Ratio (A/B) 101.0% 84.0% 17.0 p.p. 78.4% 22.6 p.p. 130.1% 68.7% 61.4 p.p.

(*) Net of other Operating Expenses to offset the cost of acquisition and income on sale of commodities in the activity of Serglobal Cereais.

Net Profit

The operating income in the quarter was -R$12.6 million, and after (i) the non-operating profit from the sale of

properties and non-operating assets of the -R$1.3 million, (ii) taxes and contributions of the +R$5.7 million, and (iii)

profit sharing of the -R$1.9 million, resulted in a loss of R$10.0 million in the quarter.

9/20

Credit Portfolio

Expanded Credit Portfolio

In December 2013, the expanded credit portfolio totaled R$3.9 billion, growing 15.3% in the quarter (9.0%

organic growth) and 26.1% in the year (19.2% organic).

The expanded credit portfolio includes loan and financing operations in Brazilian real and trade finance

operations, both detailed in note 6(a) to the financial statements, as well as: (i) guarantees issued (sureties,

guarantees and letters of credit), (ii) agro bonds generated by the absorption of the operations of Serglobal

Cereais (CPR and CDA/WA), and (iii) private credit bonds (promissory notes and debentures). Items (ii) and (iii)

are both booked under securities (TVM) as per Central Bank regulations.

Expanded Credit Portfolio by Product Group 4Q13 3Q13* 4Q13/3Q13 4Q12 4Q13/4Q12

Loans & Financing in Real 2,156.6 1,803.1 19.6% 1,602.5 34.6%

Assignment of Receivables Originated by our Customers 308.9 186.5 65.6% 478.1 -35.4%

Trade Finance (ACC/ACE/IMPFIN) 410.1 404.9 1.3% 426.0 -3.7%

Guarantees Issued (LGs & L/Cs) 179.0 185.4 -3.5% 158.2 13.1%

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 758.8 701.4 8.2% 327.1 132.0%

Private Credit Bonds (Securities: PNs & Debentures) 25.2 29.5 -14.8% 40.1 -37.2%

Other 28.7 44.4 -35.4% 35.9 -20.0%

Expanded Credit Portfolio 3,867.1 3,355.2 15.3% 3,067.9 26.1%

* Including R$97.2 of loans assigned to Banco Intercap in 3Q13.

The Emerging Companies segment consists of companies

with annual revenue between R$80 million and R$400

million, while the Corporate segment includes companies

with annual revenue between R$400 million and R$2

billion. The Other segment basically consists of Consumer

Credit operations for Used Vehicles and financing of non-

operating assets.

Loans and financing in real, which also include discounted receivables, totaled R$2.2 billion, up 19.6% in the

quarter and 34.6% in 12 months, of which R$184.7 million were originated by Banco Intercap. Receivables

originated by our customers, which corresponded to 8.0% of the expanded credit portfolio in 4Q13, increased

65.6% in the quarter, mainly due to the reallocation of assets originated by Banco Intercap, which were settled

in the quarter to better quality assets, but decreased 35.4% in twelve months, in line with our strategy.

At the end of 4Q13, trade finance operations corresponded to 10.6% of the expanded credit portfolio, totaling

R$410.1 million, up 1.3% in the quarter but down 3.7% in 12 months, of which R$7.0 million were originated by

Banco Intercap. These operations consist of import and export financing, which accounted for 32.8% and 67.2%,

respectively.

Guarantees issued (sureties, guarantees and import letters of credit) totaled R$179.0 million (R$0.2 million

originated by Banco Intercap), corresponding to 4.6% of the expanded credit portfolio.

In 4Q13, the agro bonds portfolio totaled R$758.8 million, growing 8.2% in the quarter and 132.0% in 12

months, as a result of joint ventures and alliances entered into over the past two years.

39% 47% 48% 49% 47%

59% 51% 51% 50% 52%

2% 1% 1% 1% 1%

4Q12 1Q13 2Q13 3Q13* 4Q13

Expanded Credit Portfolio

Emerging Companies Corporate Other

* Including the loans assigned to Banco Intercap.

10/20

Agro Bonds Portfolio 4Q13 3Q13* 4Q13/3Q13 4Q12 4Q13/4Q12

Booked under Securities 637.8 591.3 7.9% 245.3 160.0%

Warrants - CDA/WA 15.6 11.5 36.2% 8.0 95.8%

Agro Product Certificate - CPR 622.2 579.9 7.3% 237.4 162.1%

Booked under Credit Portfolio - Loans & Financing 121.0 110.1 9.8% 81.8 47.9%

Agro Credit Rights Certificate - CDCA 121.0 110.1 9.8% 81.8 47.9%

EXPANDED CREDIT PORTFOLIO 758.8 701.4 8.2% 327.1 132.0%

* Including R$15.3 of CPR assigned to Banco Intercap in 3Q13.

The private credit bonds portfolio totaled R$25.2 million in the quarter and consists of debentures, which are

classified under ‘held for sale’ marketable securities in the balance sheet in accordance with Central Bank

regulations due to their tradability.

Our Expanded Credit Portfolio breakdown is as follows:

By Economic Activity By Region By Customer Segment

By Economic Sector By Product

Industry 38%

Commerce 30%

Other Services

28%

Individuals 2%

Financial Institutions

2%

North 2%

Northeast 4%

Midwest 20%

Southeast 54% South

20%

Emerging Companies

47%

Corporate 52%

Other 1%

11.4% 1.6% 1.7% 2.0% 2.1% 2.3% 2.3% 2.3% 2.7%

3.8% 3.8% 3.9% 3.9% 4.2%

6.4% 6.6%

7.6% 9.4%

22.1%

Other industries*

International commerce

Machinery and Equipments

Education

Metal Industry

Raw Materials

Chemical & Pharmaceutical

Financial Instituitions

Textile, apparel & Leather

Transportation & Logistics

Commerce - Retail & Wholesale

Infrastructure

Livestock

Power Generation & Distribution

Automotive

Food & Beverage

Oil, Biofuel & Sugar

Real Estate

Agriculture

Loans & Discounts

56%

BNDES Onlending

8%

Trade Finance

10%

Agro Bonds 19%

Guarantees Issued

5%

Debentures 1%

Other 1%

11/20

Credit Portfolio

The classic credit portfolio ended 4Q13 at R$3.0 billion, growing 18.7% in the quarter and 15.3% in 12 months,

of which R$2.6 billion were loans in real and R$410.1 million were foreign currency loans.

At the end of the quarter, the Emerging Companies segment accounted for 44.9% (47.5% in 3Q13) of the credit

portfolio, while the Corporate segment accounted for 54.1% (51.5% in 3Q13). Loans classified as Others, which

include financing of non-operating assets and the balance of the direct consumer credit - used vehicles (CDC)

portfolio, corresponded to 1.0% of the total portfolio (1.1% in 3Q13).

Credit Portfolio By Client Segment 4Q13 3Q13* 4Q13/3Q13 4Q12 4Q13/4Q12

Emerging Companies 1,357.9 1,209.8 12.2% 1,101.9 23.2%

Local Currency - Real 1,150.1 1,001.4 14.8% 882.0 30.4%

Loans & Discounted Receivables 1,025.4 866.5 18.3% 737.4 39.1%

Assignment of Receivables Originated by our Customers 0.0 1.2 n.c. 0.0 n.c.

BNDES / FINAME 124.7 133.8 -6.8% 144.7 -13.8%

Foreign Currency 207.8 208.4 -0.3% 219.9 -5.5%

Corporate 1,636.5 1,311.6 24.8% 1,479.8 10.6%

Local Currency - Real 1,434.3 1,115.1 28.6% 1,273.7 12.6%

Loans & Discounted Receivables 953.5 739.8 28.9% 1,083.0 -12.0%

Assignment of Receivables Originated by our Customers 308.9 185.3 66.7% 0.0 n.c.

BNDES / FINAME 171.9 190.0 -9.5% 190.7 -9.9%

Foreign Currency 202.3 196.5 3.0% 206.1 -1.9%

Other 30.8 27.6 11.7% 42.6 -27.7%

Consumer Credit – used vehicles 0.0 0.0 -79.1% 0.6 -98.4%

Acquired Loans & Financing 2.1 2.4 -13.4% 6.7 -68.6%

Non-Operating Asset Sales Financing 28.7 25.1 14.3% 35.3 -18.7%

CREDIT PORTFOLIO 3,025.2 2,549.0 18.7% 2,624.3 15.3%

* Including R$81.9 of loans assigned to Banco Intercap in 3Q13.

By Collateral By Customer Concentration By Maturity

Aval PN

56%

Receivables

22%

Pledge /

Lien 5%

Property

8%

Monitored

Pledge 4%

Vehicles

2% Securities

3%

Top 10 13%

11 - 60 30%

61 - 160 25%

Other 32%

Up 90 days 32%

91 to 180 days 19%

181 to 360 days 18%

+360 days 31%

12/20

Quality of Credit Portfolio

Rating AA A B C D E F G H Additional

ALL TOTAL

ALL/

Credit Portfolio

% Required Provision % 0% 0,5% 1% 3% 10% 30% 50% 70% 100%

4Q

13

Outstanding Loans 114.5 1,226.8 1,196.8 146.3 136.8 28.0 32.9 24.8 118.2 - 3,025.2 7.3%

Allowance for Loan Losses 0.0 6.1 12.0 4.4 13.7 8.4 16.4 17.3 118.2 23.8 220.4

3Q

13

Outstanding Loans 56.3 877.4 1,032.5 183.0 130.7 25.7 41.0 6.9 113.5 - 2,467.0 8.5%

Allowance for Loan Losses 0.0 4.4 10.3 5.5 13.1 7.7 20.5 4.8 113.5 30.6 210.4

2Q

12

Outstanding Loans 53.4 1,103.2 919.8 344.7 65.0 82.2 27.1 8.5 20.4 - 2,624.3 3.7%

Allowance for Loan Losses 0.0 5.5 9.2 10.3 6.5 24.7 13.6 6.0 20.4 0.0 96.1

We maintained our focus on lending to customers with better credit standing, which is evident from the high

percentage of loans rated between AA and B, which represented 99% of all lending in 4Q13. The balance of

loans classified in the low risk categories (AA to B) ended the quarter at 83.9% of the total loan operations

(compared to 79.7% and 81.4% respectively, at the end of 3Q13 and 4Q12), as the following chart shows:

In December 2013, after consolidating Banco Intercap’s portfolio, loans amounting to R$340.7 million were rated

between D and H (R$317.8 million in September 2013 and R$203.2 million in December 2012), out of which

R$270.5 million were loans whose payments are regular, equivalent to 79% of the total portfolio (78% in

September 2013 and 81% in December 2012). The balance 21% corresponds to overdue loans and is detailed

below:

Default by segment 4Q13 3Q13 > 60 days > 90 days

4Q13 3Q13 4Q13 3Q13

Credit Portfolio NPL % NPL % NPL % NPL %

Emerging Companies 1,357.9 1,168.4 51.9 3.8% 51.6 4.4% 38.5 2.8% 46.6 4.0%

Corporate 1,636.5 1,271.0 11.0 0.7% 12.9 1.0% 10.5 0.6% 11.1 0.9%

Other 30.8 27.6 7.3 23.8% 7.2 26.1% 7.3 23.7% 7.2 26.1%

TOTAL 3,025.2 2,467.0 70.3 2.3% 71.7 2.9% 56.3 1.9% 64.9 2.6%

Allowance for Loan Losses (ALL) 220.4 210.4

ALL / NPL - 313.7% 293.6% 391.8% 324.0%

ALL / Loan Portfolio 7.3% 8.5% - - - -

The default rate on loans overdue more than 60 days (NPL 60 days) decreased 0.6 p.p. in the quarter but

increased 0.8 p.p. in 12 months. Loans overdue more than 90 days (NPL 90 days) decreased 0.8 p.p. in the

quarter but increased 0.7 p.p. in relation to 4Q12.

2.0%

2.3%

3.8%

42.0%

35.6%

40.6%

35.0%

41.9%

39.6%

13.1%

7.4%

4.8%

7.7%

12.9%

11.3%

4Q12

3Q13

4Q13

AA A B C D - H

83.9%

79.7%

79.1%

13/20

NPL 60 days/ Credit Portfolio Ratio 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12

NPL 60 days/ Credit Portfolio 2.3% 2.9% -0.6 p.p. 1.5% 0.8 p.p.

Clients upon the new credit policy 0.3% 0.6% -0.3 p.p. 0.4% -0.1 p.p.

Clients upon the previous credit policy (acquired before April 2011) 10.3% 14.0% -3.6 p.p. 4.9% 5.4 p.p.

The credit portfolio coverage index remained high in 4Q13 at around 7.3% (8.5% in 3Q13). The balance

allowance for loan losses of R$220.4 million provided coverage of 3.1 times the NPL 60 balance and 3.9 times

the NPL 90 balance at the end of December 2013.

The managerial expense with allowance for loan losses (ALL), including Banco Intercap’s portfolio, corresponded

to 0.95% of the expanded credit portfolio, in line with the conservative credit policy adopted by the Bank. There

were no fresh provisions for the balance of loans granted prior to April 2011 and we still have an additional

allowance (not allocated) of R$ 23.8 million.

14/20

Funding

Funding totaled R$3.9 billion at the end of December 2013, including R$495.6 million raised by Banco Intercap,

increasing 26.3% from September 2013 and 29.8% from December 2012. Bank deposit certificates (CDB) and

time deposits with special guarantee (DPGE), booked under the item “time deposits”, remain the principal

funding sources, jointly accounting for 57.3% of total funding.

Funding through agribusiness letters of credit (LCA), which are backed by agribusiness operations, a segment in

which Banco BI&P specializes, continues to increase its share of total funding, accounting for 19.3% of total

funding (18.8% in 3Q13). Real estate letters of credit (LCI) and bank notes (LF) too have been increasing their

share, jointly accounting for 4.3% of total funding in 4Q13, compared to 3.3% in 3Q13. Foreign currency funding

is especially allocated to trade finance operations and its balance is impacted by foreign exchange variations.

Total Funding 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12

Total Deposits 3,219.0 2,391.2 34.6% 2,274.6 41.5%

Time Deposits 1,004.2 719.4 39.6% 707.0 42.0%

Insured Time Deposits (DPGE) 1,227.5 939.9 30.6% 1,007.4 21.8%

Agro Notes (LCA) 751.7 578.1 30.0% 364.4 106.2%

Real Estate Notes (LCI) 110.7 65.8 68.2% 12.1 n.c.

Bank Notes (LF) 55.6 34.8 59.9% 29.5 88.5%

Interbank Deposits 25.6 15.7 63.1% 98.0 -73.9%

Demand Deposits and Other 43.9 37.6 16.8% 56.1 -21.9%

Domestic Onlending 310.0 325.4 -4.7% 335.5 -7.6%

Foreign Borrowings 364.3 365.3 -0.3% 388.6 -6.3%

Trade Finance 329.1 332.1 -0.9% 337.4 -2.5%

Other Foreign Borrowings 35.2 33.2 6.1% 51.2 -31.2%

TOTAL 3,893.3 3,081.9 26.3% 2,998.7 29.8%

By Type By Investor By Maturity

The average term of deposits stood at 775 days from issuance (757 days in September 2013) and 393 days from

maturity (324 days in September 2013).

Average Term in days

Type of Deposit from issuance to maturity 1

Interbank 221 148

Time Deposits 748 561

Time Deposits with Special Guarantee (DPGE) 1.211 456

Agro Notes (LCA) 193 125

Real Estate Letters of Credit (LCI) 223 144

Bank Notes (LF) 834 281

Portfolio of Deposits 2 775 393

1 From September 30, 2013. | 2 Volume weighted average.

Time Deposit 26%

Insured Time Dep.

(DPGE) 32%

Agro Bonds 19% Bank &

Real Estate Notes 4%

BNDES Onlendings

8%

Trade Finance

8%

Interbank 1%

Demand 1%

Institutional Investors

40%

Enterprises 17%

National Banks 6% Brokers

7%

Individuals 11%

Other 2%

BNDES Onlending

8% Foreign Banks 9%

demand 1%

Up 90 days 29%

91 to 180 days 19%

181 to 360 days

12%

+360 days 39%

15/20

Free Cash

On December 31, 2013, the free cash position totaled R$758.0 million,

equivalent to 23.5% of total deposits and 1.1x shareholders’ equity. The

calculation considers cash, short-term interbank investments and securities

less funds raised in the open market and debt securities classified under

marketable securities, comprising rural product certificates (CPRs),

agribusiness deposit certificates and warrants (CDAs/WAs), debentures and

promissory notes (NPs).

Capital Adequacy

The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk in their

operations. In this context, the Central Bank of Brazil has stipulated that banks operating in the country should

maintain a minimum percentage of 11%, calculated according to the Basel II and Basel III Accord regulations,

which provides greater security to Brazil’s financial system against oscillations in economic conditions.

The following table shows BI&P’s position in relation to the Central Bank’s minimum capital requirements:

Basel Index 4Q13 3Q13 4Q13/3Q13 4Q12 4Q13/4Q12

Total Capital 643.1 554.9 15.9% 583.3 10.2%

Tier I 643.1 555.8 15.7% 584.3 10.1%

Tier II 0.0 1.3 n.c. 1.3 n.c.

Deductions 0.0 (2.3) n.c. (2.3) n.c.

Required Capital 476.9 421.6 13.1% 430.8 10.7%

Credit Risk allocation 444.0 362.6 22.4% 372.9 19.1%

Market Risk Allocation 17.0 42.5 -60.0% 38.2 -55.6%

Operating Risk Allocation 15.9 16.5 -3.6% 19.7 -19.4%

Excess over Required Capital 166.2 133.3 24.7% 153.1 8.6%

Basel Index 14.8% 14.5% 0.4 p.p. 14.9% -0.1 p.p.

Risk Ratings

Agency Classification Observation Last

Report Financial

Data

Standard & Poor’s BB / Negative / B

brA+ / Negative / brA-1

Global Scale

Local Scale - Brazil August 6, 2013 March 31, 2013

Moody's Ba3 / Negative / Not Prime

A2.br / Negative / BR-1

Global Scale

Local Scale - Brazil July 4, 2013 March 31, 2013

FitchRatings BBB / Stable / F3 Local Scale - Brazil September 5, 2013 June 30, 2013

RiskBank 9.82

Ranking: 49

RiskBank Index

Low Risk Short Term

(under review)

January 10, 2014 September 30, 2013

571 658

758

4Q12 3Q13 4Q13

R$ m

illio

n

16/20

Capital Market

Total Shares and Free Float

Number of shares as of December 31, 2013

Type Corporate

Capital Controlling

Group Management Treasury Free Float %

Common 44,410,897 24,608,810 57,876 - 19,744,211 44,5%

Preferred 31,021,907 513,788 279,489 734,515 29,494,115 95,1%

TOTAL 75,432,804 25,122,598 337,365 734,515 49,238,326 65,3%

Share Buyback Program

The following Stock Option Plans, approved for the Company’s executive officers and managers, as well as

individuals who provide services to the Company or its subsidiaries, had the following balances on December 31,

2013:

Quantity Stock Option Plan

Date of Approval

Grace Period Term for Exercise

Granted Exercised Extinct Not Exercised

I 03.26.2008 Three years anos

Five years 2,039,944 37,938 457,662 1,544,344

II 04.29.2011 Three years Five years 1,840,584 - 367,243 1,473,341

III 04.29.2011 Five years Seven years 1,850,786 - - 1,850,786

IV 04.24.2012 Up to five years Five years 605,541 - 37,852 567,689

6,336,855 37,938 862,757 5,436,160

The aforementioned Stock Options Plans are filed in the IPE system of the Securities and Exchange Commission

of Brazil (CVM) and are also available in the Company’s IR website.

Remuneration to Shareholder

During 2013 the Bank neither provisioned nor paid interest on equity, calculated based on the Long-Term

Interest Rate (TJLP) and towards the minimum dividend for fiscal year 2013.

Share Performance

The preferred shares of BI&P (IDVL4), listed in the Level 2 Corporate Governance segment of BM&FBOVESPA,

closed December 2013 at R$5.99, for market cap of R$447.4 million, including the shares existing on December

31, 2013 and excluding treasury stock. The price of IDVL4 shares decreased 4.9% in the quarter and 24.7% in

the 12 months ended December 2013. In comparison, the Bovespa Index (Ibovespa) dropped 1.6% in the

quarter and 15.5% in relation to the closing of 2012. At the end of 4Q13, the price/book value (P/BV) was 0.66.

17/20

Share Price evolution in the last 12 months

Liquidity and Trading Volume

The preferred shares of BI&P (IDVL4) were traded in 88.5% of the sessions in the quarter and 95.6% of the 248

sessions in the past 12 months. The volume traded on the spot market in the quarter was R$14.0 million,

involving 2.4 million IDVL4 shares in 433 trades. In the 12 months ended in December 2013, the volume traded

on the spot market was R$30.1 million, involving around 4.7 million preferred shares in 2,889 trades.

Shareholder Base

Position as of December 31,2013

# Type of Shareholder IDVL3 % IDVL4 % TOTAL %

8 Controlling Group 24,608,810 55.4% 513,788 1.7% 25,122,598 33.3%

5 Management 57,876 0.1% 279,489 0.9% 337,365 0.4%

- Treasury -

0.0% 734,515 2.4% 734,515 1.0%

23 National Investors 1,201,090 2.7% 7,905,681 25.5% 9,106,771 12.1%

11 Foreign Investors 10,681,337 24.1% 17,763,852 57.3% 28,445,189 37.7%

9 Corporate -

0.0% 600,812 1.9% 600,812 0.8%

276 Individuals 7,861,784 17.7% 3,223,770 10.4% 11,085,554 14.7%

332 TOTAL 44,410,897 100.0% 31,021,907 100.0% 75,432,804 100.0%

60

70

80

90

100

110

IBOVESPA IDVL4

18/20

Balance Sheet

Consolidated R$ thousand

ASSETS 12/31/12 09/30/13 12/31/13

Current 3,063,804 3,131,671 3,759,360

Cash 18,250 36,653 38,446

Short-term interbank investments 429,535 143,122 202,571

Open market investments 377,495 117,499 177,500

Interbank deposits 52,040 25,623 25,071

Securities and derivative financial instruments 671,587 1,236,149 1,314,212

Own portfolio 473,468 954,523 972,249

Subject to repurchase agreements 26,654 25,871 14,039

Linked to guarantees 150,415 210,730 169,468

Subject to the Central Bank - - 109,250

Derivative financial instruments 21,050 45,025 49,206

Interbank accounts 938 2,545 4,412

Loans 1,495,533 1,269,980 1,725,250

Loans - private sector 1,515,490 1,342,186 1,807,228

Loans - public sector - - -

(-) Allowance for loan losses (19,957) (72,206) (81,978)

Other receivables 390,712 375,392 391,013

Credit guarantees honored - 507 507

Foreign exchange portfolio 363,445 323,650 292,330

Income receivables 67 1,058 433

Negotiation and intermediation of securities 14,356 37,418 72,992

Sundry 17,300 22,611 33,157

(-) Allowance for loan losses (4,456) (9,852) (8,406)

Other assets 57,249 67,830 83,456

Other assets 59,695 59,227 84,890

(-) Provision for losses (4,277) - (6,790)

Prepaid expenses 1,831 8,603 5,356

Long term 906,467 951,854 1,085,304

Short-term interbank investments - - -

Marketable securities and derivative financial instruments 59,737 42,525 33,518

Own portfolio 42 31 839

Derivative financial instruments 59,695 42,494 32,679

Interbank Accounts 4,083 3,066 2,966

Loans 693,561 630,239 738,156

Loans - private sector 756,459 755,413 863,993

Loans - public sector - - -

(-) Allowance for loan losses (62,898) (125,174) (125,837)

Other receivables 148,536 248,551 309,720

Credit guarantees honored 778 - -

Trading and Intermediation of Securities 524 498 523

Foreign exchange portfolio - - 1,171

Income receivables - - 817

Sundry 156,024 251,246 311,414

(-) Allowance for loan losses (8,790) (3,193) (4,205)

Other assets 550 27,473 944

Permanent Assets 51,711 87,522 92,141

Investments 24,980 31,630 33,460

Subsidiaries and Affiliates 23,294 29,939 31,767

Other investments 1,842 1,847 1,849

(-) Loss Allowances (156) (156) (156)

Property and equipment 13,648 13,639 13,937

Property and equipment in use 1,210 1,210 1,152

Revaluation of property in use 2,634 2,634 2,634

Other property and equipment 19,660 22,739 24,657

(-) Accumulated depreciation (9,856) (12,944) (14,506)

Intangible 13,083 42,253 44,744

Goodwill 2,276 25,030 25,368

Other intangible assets 13,100 20,945 23,788

(-) Accumulated amortization (2,293) (3,722) (4,412)

TOTAL ASSETS 4,021,982 4,171,047 4,936,805

19/20

Consolidated R$ thousand

LIABILITIES 12/31/12 09/30/13 12/31/13

Current 2,123,097 2,547,624 2,680,745

Deposits 839,973 959,086 1,036,371

Cash deposits 56,145 37,559 43,854

Interbank deposits 97,867 15,674 25,564

Time deposits 685,961 905,853 966,953

Funds obtained in the open market 241,904 107,500 85,905

Own portfolio 26,745 25,800 14,005

Third party portfolio 106,200 81,700 71,900

Unrestricted Portfolio 108,959 - -

Funds from securities issued or accepted 376,325 645,621 868,884

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 376,325 645,621 868,884

Interbank accounts - 391 -

Receipts and payment pending settlement - 391 -

Interdepartamental accounts 9,168 11,811 8,191

Third party funds in transit 9,168 11,811 8,191

Borrowings 388,626 332,193 329,479

Foreign borrowings 388,626 332,193 329,479

Onlendings 119,575 122,375 122,022

BNDES 77,426 80,798 71,769

FINAME 42,149 41,577 50,253

Other liabilities 147,526 368,647 229,893

Collection and payment of taxes and similar charges 509 565 487

Foreign exchange portfolio 46,177 24,771 5,941

Taxes and social security contributions 4,682 15,920 14,646

Social and statutory liabilities 10,320 2,188 3,606

Negotiation and intermediation securities 70,082 219,743 159,262

Derivative financial instruments 7,604 67,325 22,291

Sundry 8,152 38,135 23,660

Long Term 1,310,648 1,046,932 1,579,460

Deposits 1,028,553 753,396 1,264,708

Interbank Deposits 110 - -

Time deposits 1,028,443 753,396 1,264,708

Funds from securities issued or accepted 29,751 33,095 49,068

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 29,751 33,095 49,068

Loan obligations - 33,072 34,800

Foreign loans - 33,072 34,800

Onlending operations - Governmental Bureaus 215,876 203,037 187,959

Federal Treasure 8,407 6,956 6,893

BNDES 118,477 111,416 89,102

FINAME 88,780 84,461 91,769

Other Institutions 212 204 195

Other liabilities 36,468 24,332 42,925

Taxes and social security contributions 29,598 7,853 30,883

Derivative financial instrument 2,620 7,253 6,189

Sundry 4,250 9,226 5,853

Future results 1,036 2,035 2,439

Shareholders' Equity 587,201 574,456 674,161

Capital 572,396 662,384 769,843

Capital Reserve 14,886 22,223 23,468

Revaluation reserve 1,340 1,302 1,290

Profit reserve 3,512 - -

(-) Treasury stock (5,859) (5,859) (5,859)

Asset valuation Adjustment - (2) (124)

Accumulated Profit / (Loss) - (106,406) (115,272)

Minority Interest 926 814 815

TOTAL LIABILITIES 4,021,982 4,171,047 4,936,805

20/20

Income Statement

Consolidated R$ thousand

INCOME STATEMENT 4Q12 3Q13 4Q13 2012 2013

Income from Financial Intermediation 123,742 126,177 153,099 640,033 459,879

Loan operations 62,343 64,950 89,624 258,285 260,679

Income from securities 28,626 35,848 46,958 265,057 124,748

Income from derivative financial instruments 15,554 2,944 (6,491) 22,087 (9,367)

Income from foreign exchange transactions 17,219 22,435 23,008 94,604 83,819

Expenses from Financial Intermediaton 83,055 86,883 127,375 489,413 503,259

Money market funding 56,444 56,440 82,536 330,328 245,189

Loans, assignments and onlendings 18,756 23,237 28,361 102,353 100,857

Sales operations/transfer of financial assets - 536 469 - 1,005

Allowance for loan losses 7,855 6,670 16,009 56,732 156,208

Gross Profit from Financial Instruments 40,687 39,294 25,724 150,620 (43,380)

Other Operating Income (Expense) (33,835) (32,986) (38,304) (118,958) (141,218)

Income from services rendered 6,747 10,077 9,646 26,357 34,810

Income from tariffs 193 184 263 732 806

Personnel expenses (23,700) (24,091) (29,815) (89,818) (106,417)

Other administrative expenses (13,331) (17,171) (21,558) (53,118) (67,794)

Taxes (4,326) (2,945) (3,804) (12,625) (12,383)

Result from affiliated companies 991 2,311 2,175 4,146 5,675

Other operating income 5,473 1,501 20,267 20,236 26,119

Other operating expense (5,882) (2,852) (15,478) (14,868) (22,034)

Operating Profit 6,852 6,308 (12,580) 31,662 (184,598)

Non-Operating Profit (1,616) 367 (1,285) (1,115) (835)

Earnings before taxes ad profit-sharing 5,236 6,675 (13,865) 30,547 (185,433)

Income tax and social contribution 220 (2,805) 5,741 (7,136) 77,234

Income tax (4,553) (1,400) 1,243 (12,631) 7,549

Social contribution (2,722) (683) 757 (7,504) 4,588

Deferred fiscal assets 7,495 (722) 3,741 12,999 65,097

Statutory Contributions & Profit Sharing (1,831) (1,868) (1,826) (9,192) (11,819)

Net Profit for the Period 3,625 2,002 (9,950) 14,219 (120,018)