1Q11 Institutional Presentation

1Q11I tit ti l P t tiInstitutional Presentation

History and ProfilePINE at a Glance

Summary

HistoryOrganizational Structure

Business StrategyCompetitive LandscapeCompetitive LandscapeDiversity of ProductsCorporate CreditSales DeskPINE InvestimentosDistributionThe Current Scenario and Future Prospects

Highlights and Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShareholders’ StructureShareholders StructureShareholders ProfileDividends

Other HighlightsDEG and PINE Partnership 1Q11 Events and HighlightsSocial Responsibility

Appendix

2/38Investor Relations | 1Q11 |

Appendix

History and Profile

PINE at a GlancePINE specializes in providing financial solutions for mid and large companies

Credit Portfolio by Clients’ Annual Revenues

Focused on establishing long-term relationships withcompanies Up to R$150

million12%

As of March 31, 2011

PINE thoroughly understands the needs and strategies ofits clients, offering a broad range of financialinstruments in local and foreign currencies

S l i hi d i i h li

Over R$1 billion51%

R$150 million to

R$500 million

12%

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

Business is structured along four primary business lines:

R$500 million to

R$1 billion15%

22%

g p y• Corporate Credit: credit and financing products• Sales Desk: Instruments for hedging and risk

management• Distribution: investment solutions for foreign and

local investors

Solid Credit Ratings

15%

local investors• PINE Investimentos: vehicle for Investment

Banking products and Asset Management

Strategy based on: Br A- Brazil national scale

A1.br Brazil national scale

Ba2 Long term foreign and local-currency deposit

gy• Product diversity• Qualified human capital• Efficient risk management• Agility

BB- Long term foreign and local-currency deposit

A(bra) Brazil national scale

BB Long term foreign and local


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

Antonio Hermann*Independent

Member

Fiscal Council

O ti l Ri kO ti l Ri k

Tikara YoneyaTikara Yoneya PwCPwC

Sidney VenezianiSérgio MachadoAlcindo Itikawa

Sidney VenezianiSérgio MachadoAlcindo Itikawa

Fiscal Council

CEONoberto N. Pinheiro Jr.

CEONoberto N. Pinheiro Jr.

Operational Risk& Compliance

Operational Risk& Compliance

PINE InvestimentosGustavo Junqueira

PINE InvestimentosGustavo Junqueira

Planning and ControlSusana Waldeck

Planning and ControlSusana Waldeck

Sales & TradingNorberto Zaiet Jr.Sales & Trading

Norberto Zaiet Jr.Origination

Clive BotelhoOrigination

Clive BotelhoCredit Risk & Analysis

Gabriela ChisteCredit Risk & Analysis

Gabriela ChisteOperations

Ulisses AlcantarillaOperations

Ulisses Alcantarillaqq

Corporate• 14 origination

platforms• São Paulo• Campinas• Ribeirão Preto

Corporate Credit• Analysis and granting

of credit• Credit risk monitoring

and analysis by sector

Market and liquidity RisksHuman ResourcesAccountingControlling

Investment Banking• Capital Markets• Corporate Finance• Distressed and

Special Situations

Investment

Corporate Processing and FormalizationLegal

TradingSales Desk• Fixed Income• Currencies• Commodities

Local Distribution• São José do Rio Preto• Rio de Janeiro• Curitiba• Porto Alegre• Belo Horizonte• Recife• Fortaleza

ManagementAsset Management

Local DistributionInternational DistributionMacro and Commodities ResearchProductsInvestor Relations


Fortaleza

* Pending approval from the Brazilian Central Bank

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 supply of credit lines and

Corporate sector mid-sized banks Opportunity to expand operations

PINE f d l i f IB and IB and

reduction in the supply of credit lines andfinancial instruments to the bank’s segment

Unique approach: offering diversity of products toPINE: focused on complete service for companies, offering tailor-made products.

IB and Foreign Banks

IB and Foreign Banks

Unique approach: offering diversity of products toa market segment poorly serviced by the bankingindustry

Competitive Advantages: Fast response Dedicated team of specialists with deep

knowledge of the clients business, balance

Mid-sized banksMid-sized bankssheet and market positioning

Tailor-made solutions based on a diverseproduct base


Diversity of ProductsA diversity of financial instruments for the diverse needs of our clients

Credit products in local andforeign currency

Corporate Credit

Derivative products for mitigatingmarkets’ mismatches risks for clients

Sales Desk

Investment Banking

C it l k t

PINE Investimentos

Working CapitalOverdraft accountsBNDES onlendingBank Guarantees

Fixed IncomeCurrenciesCommodities

Capital marketsCorporate financeDistressed & Special Situations

Investment ManagementCompror/VendorACC/ACEExport FinanceFinimpLetters of Credit

g

Asset ManagementWealth Management

Letters of Credit2,770 onlendingSyndicated LoansStructured Loans

Investment products in local and foreign currencyDistribution

CD – Certificate of DepositEurobondsSubordinated notes2,770 onlending

Local deposits Double index CDBLCA /LCISenior and subordinated local notes


Multilateral linesDebt Capital Markets (CCBs, Debentures,FIDCs, CRIs, CRAs, CDCAs, among others)

Time Deposits

Corporate CreditConstantly searching for diversification and expansion of our credit exposure

Actions

Personalized, agile service, working closely with clientsand keeping a low ratio of companies per officer: eachaccount manager covers only 14 economic groups on

Credit Portfolio by Product

2770 Resolution


account manager covers only 14 economic groups onaverage.

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

Working Capital54.7%

Trade finance 10.3%

Resolution0.2%

Relationship with more than 600 different economicgroups

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

54.7%

Bank Guarantees

19.5%

into 14 business platforms in different Brazilian economiccenters

More than 30 credit analysts that guarantee intelligentanalysis in each sector

BNDES Onlendings

15.2%

Credit Approval: Electronic Process

Efficient loan and collaterals process, documentation andcontrols, which results in historically low NPL ratios

Origination OfficersOrigination Officers

Credit origination Credit analysis, visit to clients, data updates, interaction with internal

Credit AnalystsCredit Analysts

Discussion around sizing, collateral, structure etc

Regional Heads of Origination and Credit

Analysis

Regional Heads of Origination and Credit

Analysis

Presentation to the Credit Committee

Chief Credit Officerand Credit AnalystsChief Credit Officerand Credit Analysts

Centralized and unanimous decision making process

CREDIT COMMITTEE (6 Members)

CREDIT COMMITTEE (6 Members)


updates, interaction with internal research team

collateral, structure etc decision making process

Sales DeskExpertise qualifies the Bank to quickly respond to market conditions and clients demands

Fixed Income

31%

Breakdown of Derivative Portfolio Notional Business

DERIVATIVE SEGMENTS

Fixed Income: Fixed Floating Inflation Libor

As of March 31st, 2011

31% Fixed Income: Fixed, Floating, Inflation, Libor

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

Commodities13%

Currencies56%

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

Purpose

To bring predictability to the clients’ balance sheet

TRENDS

Increased participation of Commodities hedging in the

Notional: R$3.4 billion

To bring predictability to the clients balance sheet

Executed with clients that have an ongoing creditrelationship with PINE, rated between AA and C

8 professionals assigned to the Desk, dedicated to serve

Increased participation of Commodities hedging in thetotal portfolio

Short-term portfolio (average maturity of transactionsof 188 days)

p g ,clients on their daily needs

According to Cetip ranking, PINE is number 13 in overallderivatives and top 2 in commodities hedging to clients

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


PINE InvestimentosCreating new values for clients and optimizing the use of the Bank’s Capital

PINE Investimentos offers unique solutions for its clients in Investment Banking and Investment Management.

With a highly qualified team with deep knowledge of the market, this area operates as an advisor and not ascounterparty, serving the interests and needs of companies and their shareholders, in a customized manner and withdiversity of products.

Capital MarketsSt t i d Pl t f S iti

Investment Banking Investment Management

Asset ManagementFixed Income Funds

Structuring and Placement of SecuritiesIntermediationStructured Transactions

Corporate Finance

Credit FundsExclusive Mandates

Wealth ManagementP tf li M tM&A

Private PlacementsStrategic and Financial AdvisoryRestructuringCorporate Governance

Portfolio Management

Corporate Governance

Distressed & Special SituationsAdvisory on WorkoutsNegotiation of NPLs


Advisory on Acquisitions of Stressed Assets

DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors

PINE’s Distribution Desk is responsible for serving investors, offering traditional investments and also alternatives tiedto the credit origination platform, capital market, asset management and other structured transactions.

The objective is to provide the clients with a diversified portfolio of investments in line with market development,that adjust to investors’ risk profiles. The Distribution Desk counts on PINE’s expertise in structuring andintermediation of fixed income transactions.

O Di t ib ti D k i t d b t f i t t id li d hOur Distribution Desk is segmented by type of investor to provide a personalized approach.

ProductsInvestors

Family Offices

Individuals

Local CurrencyTraditional investments (local deposits such asCDB/RDB/CDI, LCA/LCI)Senior and subordinated local notes

Products

Corporates

Asset Managers

Senior and subordinated local notesDebt Capital Markets (CCBs, Debentures, FIDCs, CRIs,CRAs, CDCAs, among others)Derivatives

F i CFinancial Institutions

Pension Funds

Foreign Investors

Foreign CurrencyTime Deposits and CD – Certificate of DepositSenior and Subordinated bonds issued by PINEDebt Capital Markets (CCB, Credit Fund, Bonds) – throughCredit Linked Notes


Foreign InvestorsDerivatives

The Current Scenario and Future ProspectsPINE has the key resources to continue developing its strategy: adequate capitalization, efficient funding and strong management team

Adequate capital structure Efficient funding structure

funding and strong management team

US$125 million subordinated debt, approved by theBrazilian Central Bank as Tier II capital in June 2010

Regulatory Capital: R$ 1.1 billion (Mar/11)

Lengthening of average maturities: 551 days(Mar/11)

Greater diversification of funding sources

Capital Adequacy Ratio (BIS) of 17.1% (Mar/11)

DEG and PINE partnership (Feb/11)

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

R$ 300 million FIDC (Apr/11)

Strong and motivated teamCorporate clients Strong and motivated teamMeritocracy

Incentives

Corporate clientsCustomized service

Deep knowledge of clients needs

QualificationProduct diversity

Around 80% of the client base is served by morethan one product


Highlights and Results

1Q11 HighlightsAll main indicators showed improvement in the period...

Corporate Credit Portfolio*(R$ Million)

29.8%

Total Funding(R$ Million)

17.5%

Operating Income (R$ Milllion)

0.6%

4 462

5,792

4,634 5,447

47.9 48.2 4,462 4,634

Mar-10 Mar-11(*) Includes Debentures

Mar-10 Mar-11 1Q10 1Q11

Net Income (R$ Million) ROAE NIM before Provision

4.3% -10 bps

30.1 31.5 15.3% 15.2% 6.4% 6.4%


1Q10 1Q11 1Q10 1Q11 1Q10 1Q11

1Q11 Highlights - Corporate... with highlight for the Corporate business earnings.

Corporate business consistent performance

Close relationship with companies in various sectors such as sugar and alcohol infrastructure renewableClose relationship with companies in various sectors, such as sugar and alcohol, infrastructure, renewableenergy and construction, among others

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

Net Income of R$35.4 million

ROAE of 17.2%

Corporate Income Breakdown

1Q10 1Q11

Corporate

PINE Investimentos

2.3% Corporate Credit69.0%

Treasury3.4%

PINE Investimentos

0.5%

Corporate Credit77.7%

Sales Desk13.1%

Treasury6.9%

Sales Desk27.1%


Credit PortfolioPositive credit portfolio development...

13 5,747 5,792

71

827

1,022 1,117 688

543

520 591

21

19 18

15

13 10 Corporate Credit Mix (R$ Million)

Private Securities4,1184,462

4,794

5,26571

*

Corporate creditportfolio grew 29.8%in 12 months.176

242 455

629 833

871

350

511 634

842

827

688 708

663

707 745

44 36

32

21

Resolution 2770

Trade finance2,842

3,068

3,416

1,767 1,964 2,284

2,703 2,822 2,792 3,251 3,358 3,132

72 68

87

272 292

350 688 Bank Guarantees

BNDES Onlending

W ki C it l

(*) Includes Debentures Total Credit Portfolio (R$ Million)

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

Working Capital

8 7 016

022

Increase of the corporateloan portfolio, whichrepresents 98% of the totalcredit portfolio.

3,87

3

3,92

2

4,11

3

4,75

3

4,96

0

5,20

8

5,61 6,0

6,0


(**) Includes corporate credit, debentures, remaining payroll-deductible loans and credit acquired from financial institutions


Credit Portfolio Profile - Corporate... growing in a diversified manner, both in sectors and products.

Credit Portfolio by Sector Credit Portfolio by Product

Electric and Renewable

Energy9%

Construction8%

Transportation and Logistics

7%

Financial Institutions

4% Meat packing4%

Foreign TradeTrade

finance

2770 Resolution

0.2%

Agriculture9%

9% Foreign Trade4%

Telecom3%

Specialized Services

Working Capital54.7%

B k

finance 10.3%

Sugar and

Infrastructure10%

Services3%

Vehicles and Parts3%

Pharmaceutical and Cosmetic

2% BNDES Onlendings

Bank Guarantees

19.5%

Geographic Distribution

Sugar and Ethanol

17%Metal and

Mining2%

Construction Materials

2%

Other13%

Onlendings15.2%

Local Presence

T t l 70%*

Mid-West14%

North2%

Total: 70%*Pernambuco 2%

Minas Gerais 9%

Ceará 2%

Southeast69%South

Northeast6%

10 Branches

14 Business Platforms

Rio de Janeiro 11%

São Paulo 33%

Paraná 6%


9%

Rio Grande do Sul 7%

(*) Share in the Brazilian GDP

Efficient Risk ManagementConstant monitoring of the credit portfolio and balance sheet.


Credit Portfolio Quality Non Performing Loans(15 days overdue)

B25.6% Receivables

36%

Collaterals

Overdue Contracts

Overdue Installments

C5.8%

Property Pledge

18%

1.5%

AA-A65.1%

D-E1.4%

F-H2.1%

Products Pledge

42%Investments

4%

1.2%1.0%

0.7%

0.3%

0.7%

Average Value at Risk (R$ Thousand)Cash Position x Time DepositsTotal Credit Coverage

Mar-10 Dec-10 Mar-11

1,4391,908

625

34%43% 42%

1.74%

2.45%2.66%


1Q10 4Q10 1Q11Mar-10 Dec-10 Mar-11Mar-10 Dec-10 Mar-11

Payroll-Deductible Loans PortfolioReduced impact coming from the retail business expected for 2011, due to the retail credit portfolio run-off.run off.

Payroll-Deductible Loans Portfolio(R$ Million)

90

8

730

594

475

378

286

225

177

148

1

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11Payroll Deductible Loan Run-off Forecast -

Retail(R$ Million)

*

126

74

31


31 11 3

Mar-11 Dec-11 Dec-12 Dec-13 Dec-14*Portfolio assigned with recourse

FundingFunding is growing with quality and...

326 200 160

282 194

194 201

217 230

222 Funding Mix (R$ Million)Other Foreign Funding

Capital Market

5,375

4,8714 6343

5,589 5,447

270 362 192 152

125 176 242 453

626 829

867 472 393 350

361 326

385

225

230 239 227

200 282

141 116 108

75 276 203

175 138 127

130 142 206

Multilateral Lines

Trade Finance

4,6344,531

3,8523,6743,621

Tot1,123 1,064 1,124 1,463 1,559 1,114

89

91 85 175

198 214 218

148

245 298 238

270 312

797 650

529

419 330 249 125

72 68

87

242

601 536

473 283 247 141 116

BNDES

Loan Assignments

Interbank and D d D i

tal Deposits + LCA1,225

1,570 1,566 1,646 1,654 1,564 1,720 753

807

840

85

88 218

162 797 Demand Deposits

Individuals

Corporate Clients

A*

497 861

,


Institutional

Foreign Funding – Multilateral AgenciesA/B Loan (January, 2011)


US$106.0 Million

(*) LCA - Agribusiness Letters of Credit

Funding and Credit Portfolio Maturities ... posting an 80 days positive gap between credit and funding.

R$ million

Credit

Funding

1,98

5

1,85

5

1,88

0

85

99

1,73

7

- 398

98

42

1,1 8 1,2

780

404

No Maturity Up to 3 From 3 to 12 From 1 to 3 From 3 to 5 More than 5

(*) Does not consider Shareholders' equity

y pmonths

(includes Cash)months years years years

Average Maturity

Credit: 471 days


Funding: 551 days

Capital Adequacy Ratio (BIS)BIS ratio remained at a comfortable level.

Public Offering

BIS Ratio Tier II Tier I

18 6% 19 3%11% - Minimum Regulatoty Capital

Subordinated Notes

Public OfferingUS$125 Million

0.8%0.6%

0.5%0.5% 0.5% 3.9% 3.6%

3.6% 3.7%

18,6% 19,3%17,2%

15,6% 14,9%18,5% 18,4% 17,4%

g y p

17,1%

17.8% 18.7%16.7% 15.1% 14.4% 14.6% 14.8% 13.8% 13.4%

February/2010


Tier I 13.4%

Tier II 3 7%

866,124

238 492

R$ Thousand BIS Ratio (%)


Tier II 3.7%

Total 17.1%

238,492

1,104,616

Corporate Governance and Shares

Corporate GovernancePINE adopts the best corporate governance practices.

Two independent members and one external member on the Board of DirectorsMailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo AbrilFernando Albino de Oliveira: Former Director of CVM’s and a partner of Albino AdvogadosAssociadosAntonio Hermann*: Former CEO of Banco Itamaraty, Director at FEBRABAN and elected Director ofBrazilian Banking Association

São Paulo Stock Exchange (BM&FBovespa) Level 1 of Corporate Governance

Fiscal Council

100% tag along rights for all shareholders, including non-voting shares

Arbitration procedures for fast settlement of litigation cases


* Pending approval from the Brazilian Central Bank

Main CommitteesPINE believes that the use of the best corporate governance practices substantially enhancesits business outcome.its business outcome.

Main decisions are taken by committees: Board of Directors and a structure of specificcommitteesNon stop exchange of knowledge and informationNon-stop exchange of knowledge and informationTransparency

Board ofBoard ofBoard ofDirectorsBoard ofDirectors

Fiscal CouncilFiscal CouncilAuditAudit

SupportCommittee

SupportCommittee

ExecutiveCommitteeExecutiveCommittee

TreasuryCommittee

(ALCO)

TreasuryCommittee

(ALCO)

National andForeign Funding

Products

National andForeign Funding

ProductsCredit

CommitteeCredit

CommitteeRetail

CommitteeRetail

Committee

Complianceand Basel Risk

Committee

Complianceand Basel Risk

Committee

Corporate Finance

Committee

Corporate Finance

Committee(ALCO)(ALCO) CommitteeCommitteeCommitteeCommittee CommitteeCommittee

DelinquencyCommittee

DelinquencyCommittee

PerformanceEvaluationCommittee

PerformanceEvaluationCommittee

EthicsCommittee

EthicsCommittee

ITCommittee

ITCommittee

HumanResourcesCommittee

HumanResourcesCommittee


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

March 31, 2011

Common Preferred Total %

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

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

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

Individuals - 4,506,453 4,506,453 5.3%

Institutionals - 6,584,407 6,584,407 7.7%

Foreign - 10,391,032 10,391,032 12.2%

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

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

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


Shareholders’ ProfileShareholders' profile evolution

2007IPO

ForeignInvestors

78.4%

ForeignInvestors

78.4%

45.7%

48.4%

Foreign Investors

InstitutionalInvestors12.9%

InstitutionalInvestors12.9%

38.4% 38.7%39.7% 39.3% 39.4%

40.3% 40.3% 39.9%39.0%

36.1% 36.2%

33.4%

30 7%

36.4% 36.1% 36.0% 35.9% 35.2% 35.5% 35.8%36.9%

38.2%

42.4% 42.4%

25.2% 25.2% 24 3% 24.8% 25.4%24 1% 23 8%

30.7%Institutional Investors

Individuals

Individuals8.7%

Individuals8.7%

24.3% 24.1% 23.8% 23.2% 22.8%21.5% 21.4% 20.9% 21.0%

Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11


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

Dividends and Interest on Own Capital

R$ million R$ R$ million R$

Gross Amount Total Amount Amount per share

Interest on own capital 12.7 0.15

Dividends 2.3 0.03 Total paid in 1Q11 15.0 0.18

Dividends and Interest on Own Capital (R$ Million)

45 40

16 25 25

33 30 35

40

15


1S07 2S07 1S08 2S08 1S09 2S09 1S10 2S10 1Q11

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


1Q11 Events and HighlightsMarket Recognition.

PINE is ranked the 13th largest bank in Cetip’s overall derivatives ranking and the 2nd largest incommodities hedge for clientscommodities hedge for clients

On April 6th, PINE’s corporate credit FIDC transaction was successfully completed. The amountof the transaction was R$ 300 million, with a AA+ rating attributed by S&P

PINE was considered, for the second consecutive year, the best commercial bank in Brazil in theWorld Finance Banking Awards. The award was created by British magazine World Finance.Some of the most important criteria were: solutions for clients and optimization ofp prelationships, innovation and flexibility, and staying ahead of the competition


Social ResponsibilityBanco PINE supports and promotes Brazilian culture

SocialCasa HopeInstituto Alfabetização Solidária

CultureDiário de Navegação: addresses the first yearsof the occupation of the Brazilian coast by thePortuguese colonizers

Instituto Casa da ProvidênciaHospital Pequeno PríncipeGRAACC - Grupo de Apoio ao Adolescente e à Criança com CâncerColégio Mão Amiga

Paulo von Poser: exhibit of the painter Paulovon Poser, who is one of the main figures inBrazilian artTeatro Cultura Artística: it is one of thesponsors of the project for the renovation of theCultura Artística TheaterColégio Mão Amiga

SportsMinas Tênis Clube: training program forthl t

Cultura Artística TheaterQuebrando o Tabu: documentary based on theanalysis from the former President of Brazil,Fernando Henrique Cardoso, on the fight againstdrugsAlém da Estrada: motion picture whichathletes

Tênis Sobre Rodas: projeto executado peloInstituto Brilho Brasileiro fundado pela tenistaVanessa Menga, que beneficia 80 portadores dedeficiência física

Além da Estrada: motion picture, whichreceived the award for best director in the 2010Rio Festival

Responsible Credit

Green Building

“Lists of Exceptions”: the Bank does not finance –with multilateral organizations lines - projects orthose organizations that damage theenvironment, are involved in illegal laborpractices or produce, sell or use products,substances or activities considered prejudicial tosociety.

System of environmental monitoring, financed bythe IADB and coordinated by FGV, and internally-

d d t i bilit t f t


produced sustainability reports for corporateloans.

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

1Q11 4Q11 1Q10 Quarter (%) Year (%)

Earnings and Returns

Net Income (R$ thousand) 31,450 14,898 30,148 111.1 4.3

Annualized ROAE 15.2% 7.0% 15.3% 820 bps -10 bps

Annualized ROAAw 1 2.3% 1.1% 2.5% 120 bps -20 bps

Annualized financial margin before provision 6.4% 8.5% 6.4% -210 bps 0 bps

Annualized financial mergin after provision 5.5% 4.9% 6.3% 60 bps -90 bps

Balance Sheet (R$ thousand)

Total credit portfolio 2 6,022,018 6,015,846 4,959,557 0.1 21.4

Corporate credit and private securities risk 3 5,792,235 5,746,649 4,461,581 0.8 29.8

Risk weighted assets 5,650,198 5,473,250 4,942,817 3.2 14.3

Total deposits 4 3,364,504 3,698,360 3,012,901 -9.0 11.7

Total funding 5,446,978 5,588,883 4,634,379 -2.5 17.5g , , , , , ,

Shareholders' equity 878,549 867,132 839,027 1.3 4.7

Credit portfolio quality

Non performing loans - 15 days 0.7% 0.3% 0.7% 40 bps 0 bps

Non performing Loans - 60 days 0 4% 0 1% 0 6% 20 bps -20 bpsNon performing Loans 60 days 0.4% 0.1% 0.6% 20 bps 20 bps

Non performing loans - 90 days 0.3% 0.1% 0.5% 10 bps -30 bps

Credit coverage 2.7% 2.4% 1.7% 20 bps 90 bps

Performance

BIS ratio 17 1% 17 4% 14 9% 30 bps 220 bpsBIS ratio 17.1% 17.4% 14.9% -30 bps 220 bps

Efficiency ratio 38.9% 33.8% 39.5% 520 bps -60 bps

Earnings per share (R$) 0.37 0.18 0.36 105.6 2.8

Book value per share (R$) 10.45 10.33 10.07 1.2 3.8 (1) Risk weighted assets.(2) Includes bank guarantees and debentures.(3) Includes bank guarantees


(3) Includes bank guarantees.(4) Includes Agribusiness Letter o f Credit.

Investor Relations

Norberto Zaiet Junior

CFOCFO

Nira Bessler

Head of Investor Relations

Alexandre Cavalcanti

Investor Relations Manager

Alejandra Hidalgo

Investor Relations Analyst

Phone: +55-11-3372-5553

b i b /iwww.bancopine.com.br/ir

[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.

1Q11 Institutional Presentation

Economy & Finance

Transcript of 1Q11 Institutional Presentation