4Q09 Institutional Presentation

46
Banco PINE is specialized in financial services for companies Institutional P i Presentation 4Q09 4Q09

Transcript of 4Q09 Institutional Presentation

Banco PINE is specialized in financial services for companies

InstitutionalP iPresentation

4Q094Q09

Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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Profile

PINE excels at providing financial services to Companies

Banco Pine at a Glance

Credit Portfolio by Customers’ Annual Revenues

Focused on serving companies with annual revenues R$ 500 MM to R$ 1 BIFocused on serving companies with annual revenues

above R$150 million, offering a complete range offinancial products in local and foreign currency

Total assets of R$7.0 billion

R$ 1 BI25%

R$ 150 MM to R$ 500 MM

18%

Total credit exposure of R$ 4.8 billion

Total funding of R$4.5 billionOver R$ 1 BI

45%Up to R$ 150

MM12%

Relationship-driven, agile and service-oriented

Strong team, with correct incentives in all areas ofoperation Solid Credit

12%

A1.br Brazil national scale Ba2 Long/short-term foreign and

local-currency deposit

p

Shareholders’ Equity of R$825 million

PINE4: traded at BMF&Bovespa Level 1 CorporateG

Solid Credit

GovernanceBr A- Brazil national scale BB- Long/short-term foreign and

local-currency deposit

A-(bra) Brazil national scale B L / h t t f i d

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B+ Long/short-term foreign and local-currency deposit

December 31, 2009

History of Banco PINEFounded in 1997, Banco PINE has been showing a track record of resilient development

1997Foundation of Banco

2004Opportunity

2007IPO

2005Noberto Pinheiro

1939Foundation of

1975Noberto Pinheiro

2009Foundation of f

PINESole focus on

Corporate Lending

pp yIdentified in the payroll

loan segment

IPOCayman Branch

Decision to deleverage

payroll lending

becomes Banco PINE’s sole shareholder

fBanco Central do

Nordestebecomes one of the BMC’s controlling

shareholder

PINE Investimentos

1939 – Pinheiro Family founds its first bank in Brasil –Banco Central do Nordeste

1975 - Noberto Pinheiro becomes one of the contolling

Strategic decision of deleveraging the payroll-loanbusiness, at the end of 2007

CORPORATEshareholder of Banco BMC

1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE

100% focused on the Bank’s traditional corebusinessAgile, complete and customized services forCompaniesCross-Selling: diversified and sophisticated

2005 - Noberto Pinheiro becomes Banco PINE´s sole shareholder

2007 – Start up of Cayman branch and IPO

products

PAYROLL-LOANReduced marginsIncreased competition

2009 - Foundation of PINE Investimentosp

Excessive regulationScale needsLack of cross-selling opportunitiesExcessive lengthening of maturitiesEnd of pre payment fee

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End of pre-payment fee

Management of the CrisisAgile and specialized management to overcome the crisis

Banco PINE’s strengths for managing the crisis:

No dependency upon long-term funding. Deleveraging of payrollloans and auto loans “pilot project”, before the crisis

Total Credit Exposure (R$ Million)

Strict policy of matching assets and liabilities, combined with agilityand efficiency in managing cash positionRepurchase of own shares and MTN bondsFocus on companies with solid fundamentals and close relationshipwith clients 4,639 5,047 4,885

4 264 3 922 4 113 4,753

Strong credit analysis, structuring and monitoring of thecollateralized credit portfolioStrong risk controls and very low market risk exposure (VaR of 0.09%of Shareholder’s Equity in December 2009 and of 0.26% in December2008)

4,264 3,873 3,922 4,113

M /08 J /08 S /08 D /08 M /09 J /09 S /09 D /09Lack of leveraged derivatives exposureCross sale of credit products and financial services

Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09

Cash Position/ Time Deposits * Time Deposits + Agribusiness Letter of Credit (R$ Million)

31%37% 33%

40%

51%45% 47%

37%1,621

1,967 1,841

1,243 1,334 1,756

2,154

2,784

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*Effective cash position at the last day of each period.

Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09 Mar/08 Jun/08 Sep/08 Dec/08 Mar/09 Jun/09 Sep/09 Dec/09

Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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Strategies for the New ScenarioNew Scenario

Market PositioningPINE is positioned in a segment poorly served in the local market

Large multiple banksLarge multiple banks

Large banks consolidation process have reduced clients’ credit limits Foreign banks

have reduced th i i k

Banco PINE has expanded its exposure to companies with higher annual

revenues (as % of the loan portfolio)Large multiple banksLarge multiple banks

Wholesale Wholesale

their risk appetite after

the global financial crisis

revenues (as % of the loan portfolio)

18%

19% 17% 13% 12%Up to R$ 150 MM

mid-size banks

Poorly served segmentBanco PINE: focused on corporate loan, offering tailor-made

sophisticated products with transparency and agility.

mid-size banks

Poorly served segmentBanco PINE: focused on corporate loan, offering tailor-made

sophisticated products with transparency and agility.Foreign Banks

Foreign Banks

28%30%

25%

29%

20%20% 18%

R$ 150 MM to R$ 500 MM

R$ 500 MM to R$ 1 BI

Mid-sized banksMid-sized banks 35% 37%45%

22%

28%

Over R$ 1 BI

Mid-sized banksMid-sized banks30% 35% 37%

Mar-09 Jun-09 Sep-09 Dec-09

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Corporate BusinessAgile and prudent credit approval process

Thorough and diligent credit analysisExpertise and flexibility in credit structuring

Corporate Credit Origination Credit Approval Process (38 employees)

Strong origination teamFocus on attracting and retaining the best account p y g

Close monitoring of borrowers’ credit evolutionAgile credit decision making processManagement of receivables portfolio risks andcollaterals quality

g gofficers - meritocratic cultureFlat hierarchyRelationship close to clients and business withhigh renewal ratio among clients/repeat q y

Efficient loan process, documentation andcontrols

businessesCross sale of credit products and financial services

Credit expansion417 active clients pIncreased penetration with existing clients (crossselling)Fast credit approvalHigh processing technology

417 active clients

Avg Ticket R$10.3 million

Risk monitoring and mitigationAvg Tenor 13 months

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Simple structure and flat hierarchy

Organizational Structure

Board of Directors

Internal AuditorsTikara Yoneya

Internal AuditorsTikara Yoneya

External AuditorsDeloitte

External AuditorsDeloitte

Noberto PinheiroChairman

Noberto Pinheiro Jr.Vice-Chairman

Maurizio MauroIndependent Member

Fernando AlbinoExternal Member

Mailson da NóbregaIndependent Member

Board of Directors

Operating RiskOperating Risk

Sidney VenezianiPeter Edward Wilson

Alcindo Itikawa

Sidney VenezianiPeter Edward Wilson

Alcindo Itikawa

Fiscal CouncilCEONoberto N. Pinheiro Jr.

CEONoberto N. Pinheiro Jr.

Operating Risk& ComplianceOperating Risk& Compliance

Pine InvestimentosRodrigo Boulos

Pine InvestimentosRodrigo Boulos

Control and Market/Liquidity Risk

Control and Market/Liquidity Risk Financial & Products

Cli B t lhFinancial & Products

Cli B t lhCorporate SalesMi l GCorporate SalesMi l G

Credit Risk & ResearchG b i l Chi t

Credit Risk & ResearchG b i l Chi t

Corporate OperationsUli Al t ill

Corporate OperationsUli Al t illRodrigo BoulosRodrigo Boulos q y

Susana Waldeckq y

Susana WaldeckClive BotelhoClive BotelhoMiguel GenoveseMiguel Genovese Gabriela ChisteGabriela ChisteUlisses AlcantarillaUlisses Alcantarilla

Corporate• Loan Portfolio

R$4.1 billion• 417 Clients

Corporate Credit• Analysis and granting

of credit• Credit risk monitoring

Treasury• Local• International• Clients

Market and liquidity RiskHuman Resources

Credit StructuringCredit FundsFinancial Advisory

Corporate Processing and FormalizationL l

417 Clients• São Paulo• Ribeirão Preto• São José do Rio Preto• Rio de Janeiro• Curitiba• Porto Alegre• Belo Horizonte

Credit risk monitoring and analysis by sector

Clients

Funding• Local• International

International• Cayman• Trade Finance

AccountingControlling Department

Private EquityDistribution

Legal

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• Belo Horizonte• Recife

Trade Finance

Macro ResearchProductsInvestor Relations

Strategies for the New Scenario Loan portfolio expansion and cross-selling opportunities

Challenges for the New Scenario:Challenges for the New Scenario:

Capital optimization:

Stronger leveraging

Capital optimization:

Stronger leveraging

Lower interest rates & volatilityLower interest rates & volatilityCross-selling:

More products per client

Cross-selling:

More products per client

Corporate

Loans

Loans

Overdraft accounts

Foreign Exchange / Trade Finance

Exports

ACC/ACE

Letter of Credit

Onlending

FINAME

Automatic

Guarantees

Bidding

Public tenders

Treasury

Currencies

Rates

Investments

Local Currency

CDB/ RDB

Government Bonds

PINE Investimentos

Underwriting and Syndicated Loans

Private EquityDiscounts

Compror/Vendor

Linked Collection

Letter of Credit

Documentary Collection

Prepayment

Imports

Letter of Credit

Manufacturer

Agribusiness

Others

EXIM

Pre-shipping

Performance

Credit/Financial Institutions

Commodities

Equities

Macro Advisory

FIDC (Receivables Investment Funds)

CDI (Interbank Deposit Certificate)

LCA (Agribusiness)

q y

Credit Funds

Advisory

Letter of Credit

Advance Payments

Documentary Collection

Spot Foreign Exchange

pp g

Special Pre-shipping

Post-shipping

Automatic BNDES

FINEM

( g )

Credit Funds

Private Equity

Foreign Currency

CD -Certificate of Deposit

Foreign currency loans and investments

Loans (2,770)

Foreign Lending

Demand Deposit Accounts

Eurobonds

Custody Account

Money Market

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Foreign Investments

Accounts

Time Deposit

Private Equity

Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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4Q09 Results

2009 HighlightsDuring 2009, PINE showed the strength of its fundamentals

Efficient cash management and strict match of assets and liabilities: buyback of own shares and bondsEfficient cash management and strict match of assets and liabilities: buyback of own shares and bonds

Cost structure adjustments brought forwardCost structure adjustments brought forward

Efficient cash management and strict match of assets and liabilities: buyback of own shares and bondsEfficient cash management and strict match of assets and liabilities: buyback of own shares and bonds

Local and foreign credit growthLocal and foreign credit growth

No payroll loans assignments and anticipation of expenses related to this businessNo payroll loans assignments and anticipation of expenses related to this business

Better credit quality (0.7% NPL on December 31, 2009)Better credit quality (0.7% NPL on December 31, 2009)

Strong risk controls and low exposure to market risk (VaR equivalent to 0.09% of equity in 4Q09)Strong risk controls and low exposure to market risk (VaR equivalent to 0.09% of equity in 4Q09)

Deposits posted the highest level ever in the Bank history, above R$ 3 billionDeposits posted the highest level ever in the Bank history, above R$ 3 billion

Revenue increase through Cross Selling: Credit products, Treasury /Dealing Desk and PINE InvestimentosRevenue increase through Cross Selling: Credit products, Treasury /Dealing Desk and PINE Investimentos

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p p g y, $p p g y, $

Banco PINE continued to grow its deposits and its loan portfolio, with improved quality

4Q09 Highlights

Non-Performing LoansCorporate Credit (R$ Million)Provisions for Loan Losses (R$ Thousand)

(excludes additional and reversal)

1 3%

-200 bps-600 bps

Δ QoQ Δ YoY

-200 bps-600 bps

Δ QoQ Δ YoY

4 118

34.1%20.6%

Δ QoQ Δ YoY

25 947

Δ QoQ Δ YoY

-72.6%-65.0%

Δ QoQ Δ YoY

-60 bps -20 bps

0.9%1.3%

0.7%

Dec-08 Sep-09 Dec-09

3,070 3,416 4,118

Dec-08 Sep-09 Dec-09

25,94720,298

7,097

4Q08 3Q09 4Q09

Total Deposits (R$ Million) Operating Income (R$ Thousand)

Including Agribusiness Letter of Credit

3 029

107.2%31.6%

Δ QoQ Δ YoY28.6%1.6%

Δ QoQ Δ YoY

1,462 2,302

3,029

Dec 08 Sep 09 Dec 09

29,728 37,639 38,223

4Q08 3Q09 4Q09

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Dec-08 Sep-09 Dec-09 Q08 3Q09 Q09

Balance SheetThe on-book loan portfolio posted a 18.4% increase in the quarter

D 09 S 09 D 08

R$million

Dec-09 Sep-09 Dec-08

Assets 6,984 7,200 6,176

Securities and derivative financial instruments 2,761 3,578 2,788

Lending operations 3,802 3,210 3,030

(-) Allowance for loan losses (76) (105) (95)

Net lending operations 3,726 3,105 2,935

Other 497 517 453 Other 497 517 453

Liabilities 6,159 6,385 5,349

Deposits 2,784 2,201 1,423

Money market funding 1,600 2,585 2,119

Borrowings and onlendings 815 718 819

Other 960 881 988

Shareholders' equity 825 815 827

Liabilities and Shareholders' equity 6,984 7,200 6,176

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ResultsOperating Income grew 28.6% in 12 months

R$ thousand

4Q09 3Q09 4Q08

Gross income from financial intermediation 132,343 50,594 63,246

Fee Income 20,590 21,678 10,888

Other administrative expenses and personnel expenses (31 494) (28 525) (36 703) Other administrative expenses and personnel expenses (31,494) (28,525) (36,703)

Payroll loan commissions - expenses (890) (873) (5,949)

Tax expenses (6,752) (6,286) (5,921)

Other operating income / expenses (75,574) 1,051 4,167

Operating Income 38,223 37,639 29,728

Non-operating income (512) (1) (1,099)

Income before taxes and profit sharing 37,711 37,638 28,629

Income and social contribution taxes (15 355) (9 566) (5 977) Income and social contribution taxes (15,355) (9,566) (5,977)

Profit sharing (1,208) (6,004) (2,831)

Net income 21,148 22,068 19,821

Annualized ROAE 10.7% 11.3% 9.9%

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Loan PortfolioIn the corporate loan portfolio, working capital loans recorded a 14.4% growth in 4Q09 and 22.2% in 20092009

Loan Portfolio Mix

Total Loan Portfolio (R$ Million)

85% 89%

26%15% 11%

Individuals

11.5%15.6%

Δ QoQΔ YoY

74%85% 89%

Dec-08 Sep-09 Dec-09

Corporate

4,264 4,113

4,753

Dec-08 Sep-09 Dec-09

Corporate Loan Portfolio Mix (R$ Million)

Δ QoQ

20 6%

Δ YoY

34 1%4,118

Dec 08 Sep 09 Dec 09Dec 08 Sep 09 Dec 09

844 276

350

511

Guarantees

Trade Finance

20.6% 34.1%

3,070

3,416

,

2,099 2,244 2,566

85 87

176

66 32

21

544 703

276

Resolution 2770

BNDES onlendings

Working

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Dec-08 Sep-09 Dec-09

Working Capital

Loan Portfolio - CorporateBanco PINE offers a complete range of loan products in both local and foreign currency. 114% of the corporate loan portfolio is covered by guarantees

Loan Portfolio by Product

corporate loan portfolio is covered by guarantees

BNDES onlendings

Operations in Major Sectors of Economy

Financial

Working Capital

62%

onlendings4%

Resolution 2770 1%

Agriculture7%

Specialized Services

6%

Institutions6%

Vehicles and Autoparts

6%

Trade Finance

21%

Guarantees

Energy11%

Construction5%

Logistics4% Product

Fiduciary

Guarantees12%

Infrastructure13%

Meat Processing3%

Metallurgy3%

Fiduciary Alienation

24%Investments

7%

Property Fiduciary Alienation

Sugar and Ethanol

16%

Trade Finance3%

Other17% Receivables

9%

Promissory

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Receivables33%

yNotes22%

Payroll5%

Loan Portfolio - QualityBanco PINE’s Non-Performing Loans stood below 2% even during the crisis, with a peak in June. The coverage of the D H portfolio was 94 1% in December

D-H Overdue Portfolio/ Total Portfolio

coverage of the D-H portfolio was 94.1% in December

Quality of Loan Portfolio

1.95%

D H Overdue Portfolio/ Total Portfolio

A, 50.1%

Quality of Loan Portfolio

0.91% 0.96% 1.00%0.90%

1.28%

0 71%

B, 19.4%

0.00%

0.30%

0.11%

0.65% 0.60%0.71%

C, 3.7%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sep-09 Dec-09

Real Devaluation

Nasdaq WTC Brazilian Elections

Banco Santos Liquidity Crisis

Global Financial Crisis

AA, 24.7%

C, 3. %

D-E, 0.6%

F-H, 1.5%

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Provisions for Loan LossesDue to the improvement in the portfolio quality, the Bank decided to reverse part of the additional provision recognized in 4Q08provision recognized in 4Q08

R$ thousand

Provisions for Loan Losses

4Q09 3Q09 4Q08 2009 20084Q09 3Q09 4Q08 2009 2008

Accounting provisions 7,203 (20,298) (46,547) (49,325) (97,187)

Additional provisions - - 20,600 - 20,600 p , ,

Reversal (14,300) - - (17,100) -

Total provisions for loan losses (7,097) (20,298) (25,947) (66,425) (76,587)

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Loan Portfolio - IndividualsAbove 50% reduction of individuals loan portfolio in a year, in line with the strategy of discontinuing payroll loanspayroll loans

Individuals Loan Portfolio Mix (R$ Million)

EXIT FROM THE PAYROLL BUSINESS

Margin reductionIncrease on competitors

114 Δ QoQ Δ YoY1,073

-19.6% -53.7%p

Excessive regulationScale necessityNo cross-selling opportunitiesExcessive lengthening of terms

959 66

56 -14.1% -50.7%

618

497

Excessive lengthening of termsEnd of pre payment feeOthers

552 441

Dec-08 Sep-09 Dec-09

On book

Off book

-20.3% -54.1%

THE EXIT STRATEGY OF THE PAYROLL LOAN BUSINESS IS NEARING A CONCLUSION

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FundingDiversified sources of funding

Comfortable funding situationComfortable funding situation

DPGE, in Regulation f Fi i l 242

229

Funding Mix (R$ Million)

Borrowings and

17.6%

Δ QoQ

21.1%

Δ YoY

4,527

3 848

Central Bank’s FX a ctions

FGC (Brazilian FDIC) special credit lines

DPGE, in April 2009 (time deposit with R$20 million special guarantee

of Financial Notes (LetrasFinanceiras) in Feb 2010

553

441

663 576

586

496 275

242

157 142 Borrowings and onlendings

Funds from Acceptance and Securities IssuedTrade Finance / Cayman

3,737 3,848

Reduction of compulsory limits

auctions and trade finance lines

lines gby the FGC)

Banco PINE’s DPGE Limit: R$2.1 billion. Only 22% of

1,462

2,302 3,029

959 Cayman

Loan Assignments

Total Deposits

R$2.1 billion. Only 22% of the limit utilized

Foreign Funding – Private Placements

Dec-08 Sep-09 Dec-09

Public Offering g g

Subordinated NotesJoint Bookrunners

Public Offering2010

US$ 33.6 Million

US$ 35 5 Million US$ 57 4 Milli

US$ 39.9 Million

US$ 20 0 Milli

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US$ 35.5 Million US$ 57.4 MillionUS$ 20.0 Million

US$ 125 Million

Funding vs. Credit and Cash PositionMaturities aligned: average term of 14 months for funding and 13 months for credit

1 to 3 years31.6%

Credit + Cash Position

Type of Asset Funding

Debt Bonds – Senior

d S b di t d

3 to 12 months29.5% 3 to 5 years

0.3%

Time Deposits

Corporate

Domestic Loans

and Subordinated

Up to 3 months

(includes Cash)38.6%

Corporate

International LoansFX Lines

38.6%

1 to 3 years28.3%

3 to 5 years3 0%

Funding(1)

Corporate

BNDES On-lending BNDES On-lending

With no Maturity

0.9%3 to 12

3.0%Over 5 years

2.9%

Up to 3 months 23.9%

3 to 12 months41.0%

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(1) It does not consider Shareholders Equity

Issuance of Subordinated NotesIn February, 2010, Banco PINE concluded with success the issuance of subordinated notes

Subordinated Notes

Public Offering2010

Subordinated NotesJoint Bookrunners

US$ 125 Million

Issuer Banco PINE S.A.

Type of issue Subordinated note to be incorporated into Banco Pine’s Reference Equity – Tier II

Format Rule 144A/Regulation S

Rating Ba3 (Moody’s)

$ llSize US$125 million

Maturity January-17

Interest rate 8.75% p.a. to be paid semi-annually

Joint Lead Managers HSBC Securities (USA) and Credit Suisse Securities (USA)

Joint BookrunnersHSBC Securities (USA) Inc, Credit Suisse Securities (USA) LLC and Banco Espirito Santo de Investimentos S A

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Santo de Investimentos, S.A.

BIS RatioBIS ratio was 15.6%. Including the new issuance, this ratio would be 19.6%

Equity R$ thousand Basel Ratio (%)

Tier I 824,794 15.1%

Tier II 30,024 0.5%

Total 854 818 15 6%Total 854,818 15.6%

Tier II (new issuance) (1) 217,550 4.0%

BIS (including new issuance) (1) 1,072,368 19.6%

(1) The issuance of subordinated notes occured on February 2, 2010.

Waiting for authorization of the Brazilian Central Bank to be incorporated into Banco PINE’s Tier II.

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Financial MarginFinancial Margin growth in the quarter

4Q09 2009

Financial Margin Before Provisions (excluiding repo) 11.3% 7.8%

Main factors impacting 4Q09 financial margin

Local and foreign credit increase

Reduction in funding cost

Proprietary treasury revenue increase, which includes sell of Cetip’s stocks (maintaining VaRequivalent to 0.09% of equity in December, 2009) and

Dealing Desk (which serves companies) performance

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Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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CorporateGovernance andGovernance and

Shares

Corporate GovernanceBanco PINE adopts the best corporate governance practices

Two independent members and one external member in theBoard of Directors

Mailson Ferreira da Nóbrega: Finance Minister of BrazilClear PoliciesClear Policies Performance

MonitoringPerformanceMonitoring

Mailson Ferreira da Nóbrega: Finance Minister of Brazilfrom 1988 to 1990Maurizio Mauro: CEO of Booz Allen Hamilton and GrupoAbrilFernando Albino de Oliveira: ex-director of CVM andpartner of Albino Advogados Associados

Settlement ofResponsibilitiesSettlement of

ResponsibilitiesAlignment of

Internal PoliciesAlignment of

Internal Policies

partner of Albino Advogados Associados

São Paulo Stock Exchange Level 1 of Corporate Governance

C li ithC li ith

Fiscal Council

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

Risk ManagementRisk ManagementCompliance withLegislation and

interests

Compliance withLegislation and

interests

voting shares

Arbitration procedures for fast settlement of litigation

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Main CommitteesBanco PINE believes that the use of the best corporate governance practices substantially enhancesits business‟ outcome

Main decisions are taken by committees: Board of Directors and a structure of specific committeesNon-stop exchange of knowledge and informationT

its business outcome

Transparency

Board ofBoard ofBoard ofDirectorsBoard ofDirectors

Fiscal CouncilFiscal CouncilAudit

S tAudit

S tSupportCommittee

SupportCommittee

ExecutiveCommitteeExecutiveCommittee

TreasuryCommitteeTreasury

Committee

National andForeign Funding

National andForeign Funding CreditCredit RetailRetail

Complianceand Basel

Complianceand Basel PINE

InvestimentosPINE

InvestimentosCommittee(ALCO)

Committee(ALCO)

ProductsCommitteeProducts

CommitteeCommitteeCommittee CommitteeCommittee

DelinquencyC itt

DelinquencyC itt

RiskCommittee

RiskCommittee

PerformanceEvaluation

PerformanceEvaluation Ethics

C ittEthics

C ittIT

C ittIT

C itt

HumanResources

HumanResources

InvestimentosCommittee

InvestimentosCommittee

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CommitteeCommitteeCommitteeCommittee CommitteeCommittee CommitteeCommitteeCommitteeCommittee

Shareholders’ StructureShareholders' mix change

Common Preferred Total %

Controlling Shareholder 45,443,872 17,302,322 62,746,194 73.5%

Management - 844,246 844,246 1.0%

Free Float - 19,673,994 19,743,826 23.1%

Subtotal 45 443 872 37 820 562 83 334 266 97 6% Subtotal 45,443,872 37,820,562 83,334,266 97.6%

Treasury - 2,074,839 2,074,839 2.4%

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

Base: 02/28/2010

2007IPO

78.4%78.4%46.1%

48.0%

42 5%

Foreign Investors

37 1%

38.5% 38.8%

39.7% 39.5%

37.8%38.3% 38.4% 38.5%

39.5%

42.5%

41.3%40.3% 40.1%

39.2%38.6%

40.7% 40.3% 40.1% 40.1%39.6%

12.9%12.9%34.3%

31.4%

36.1%37.1%

Institutional Investors

8.7%8.7% 21.4% 21.6% 21.2% 21.1% 21.1%21.9% 21.5% 21.4% 21.5% 21.4%

20 9%

Individuals

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19.7% 20.6%20.9%

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

SharesThe Price/Book Value ratio was 1.11 on March 4, 2010

Basis Price 100: 12/31/08Final Date: 03/09/10

350Δ 205%R$ 10.94

250

300

Δ 85%69,576

150

200

R$ 3.59

50

100

37,550

0

12/2

008

1/20

09

2/20

09

3/20

09

4/20

09

5/20

09

6/20

09

7/20

09

8/20

09

9/20

09

10/2

009

11/2

009

12/2

009

1/20

10

2/20

10

3/20

10

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PINE4 IBOVESPA

DividendsIn 2009, Banco PINE paid the total gross amount of R$ 75.0 million in interest on own capital and dividendsdividends

R$ Million R$

Gross Value Total Value Value per Sharep1Q09 25.0 0.2955 2Q09 20.0 0.2391 3Q09 15.0 0.1800 4Q09 15.0 0.1800

R$ million

Total paid in 2009 75.0 0.8946

Total Gross Interest on Own Capital and Dividends Paid

57 2

75.0 31.1%

R$ million

57.2

2008 2009

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2008 2009

Social ResponsibilityBanco PINE supports and promotes the Brazilian culture

SocialCasa HopeInstituto Alfabetização Solidária

CulturePaisagem e Olhar: watercolor pictures showing thebiodiversity of the Atlantic Rainforest

Charity Day - ICAP Brasil CTVM

Sports

Embarcações: historic record of typical Brazilian boats

Revoluções Brasileiras:reports about the braverySports

Fortalecimento do Hipismo (Strengthening Equestrian Sports): dissemination of equestrian sports as a healthy activity that is accessible to various social segments.Crianças e Jovens que Brilham (Children and Youth that Shine): tennis training workshops in state and municipal

reports about the braveryof Brazilian ancestors

Museus Brasileiros: a collection ofthe country’s leading museums

Shine): tennis training workshops in state and municipal schoolsLOB do Tênis Feminino: development of women's tennis in Brazil at the level of global competitiveness

Anita Malfatti: retrospective of worksand biography

Responsible Credit“Lists of Exceptions”: the Bank does not finance projectsor those organizations that damage the environment, are

Green Building

involved in illegal labor practices or produce, sell or useproducts, substances or activities considered prejudicial tosociety.System of environmental monitoring, financed by the IADBand coordinated by FGV, and internally-produced

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sustainability reports for corporate loans.

RatingsSolid credit structure

Global

Foreign Currency

Long Term

O tl k

Ba2

Stable

BB-

B

Global

Foreign Currency

Long Term

Short Term

Global

Foreign Currency

Long Term B+Outlook

Local Currency

Long Term

Outlook

Stable

Ba2

Stable

B

Stable

BB-

Short Term

Outlook

Local Currency

Long Term

Short Term

Outlook

Local Currency

Long Term

B

Positive

B+Outlook

National

Long Term

Short Term

Stable

A1.br

Br-1

B

Stable

br A

Short Term

Outlook

National

Long Term

Long Term

Short Term

Outlook

National

B+

B

Positive

Outlook

Bank Financial Strength

Stable

D

br A-

Stable

Long Term

OutlookLong Term

Short Term

Outlook

Individual

A-(bra)

F2(bra)

Positive

A10.7

Individual

Support

D

5

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Agenda

ProfileBanco PINE at a GlanceHistory of Banco PINEManagement of the CrisisManagement of the Crisis

Strategies for the New ScenarioMarket PositioningCorporate BusinessC pOrganizational StructureStrategies for the New Scenario

4Q09 Results

Corporate Governance and SharesCorporate GovernanceMain CommitteesShares BreakdownSharesDividendsSocial ResponsibilityR iRatings

Appendix

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Appendix

Macroeconomic ScenarioChallenge for the new scenario: economic growth and interest rate below historic rates

Brazil: Main Economic Indicators - Banco Pine

ECONOMIC INDICATORS (basis scenario: 75% of probability) 2002 2003 2004 2005 2006 2007 2008 2009 2010F11-15 (F)

Real GDP growth rate (%) 2,7% 1,1% 5,7% 3,2% 4,0% 5,4% 5,1% -0,2% 5,0% 5,5%

R$:US$ end of the period (nominal) 3,54 2,91 2,67 2,34 2,14 1,79 2,40 1,75 1,75 1,58

R$:US$ average (nominal) 2,99 3,06 2,92 2,44 2,18 1,95 1,84 2,00 1,84 1,65

BR inflation (IPC / IPCA) 12,5% 9,3% 7,6% 5,7% 3,1% 4,5% 5,9% 4,3% 5,1% 4,5%

BR inflation (IGP-M) 25,3% 8,7% 12,5% 1,3% 3,8% 7,7% 9,8% -1,7% 6,6% 6,5%

BR interest rate (Selic, end of the period) 25,0% 16,5% 17,8% 18,00% 13,25% 11,25% 13,75% 8,75% 11,50% 10,50%

BR interest rate (Selic average) 19 5% 23 1% 16 4% 19 15% 15 06% 11 98% 12 54% 9 92% 10 08% 11 00%BR interest rate (Selic, average) 19,5% 23,1% 16,4% 19,15% 15,06% 11,98% 12,54% 9,92% 10,08% 11,00%

Total external debt (US$bn) 196,0 200,0 185,0 154,0 156,0 166,0 170,0 169,9 174,5 188,0

Private(US$bn) 85,0 80,0 70,0 66,0 80,0 96,0 103,0 105,6 114,0 131,1

Public (US$bn) 111,0 120,0 115,0 88,0 76,0 70,0 67,0 64,3 60,5 56,8

External Reserves (US$bn) 38,0 49,0 53,0 54,0 86,0 180,0 207,0 239,0 270,0 450,0

T l l d b (% f ) 516% 408% 349% 285% 181% 92% 82% 68% 54% 37%Total external debt (% of reserves) 516% 408% 349% 285% 181% 92% 82% 68% 54% 37%

Private (% of reserves) 224% 163% 132% 122% 93% 53% 50% 42% 35% 26%

Public (% of reserves) 292% 245% 217% 163% 88% 39% 32% 26% 19% 11%

Trade balance (US$bn) 13,2 24,8 33,8 44,8 46,2 40,0 25,0 25,4 15,0 15,0

Current Account (US$bn) -7,6 4,2 11,7 14,0 13,6 1,5 -35,0 -24,3 -45,0 -60,0

Current Account (% of GDP) -1,5% 0,8% 1,8% 1,6% 1,3% 0,1% -3,1% -2,4% -3,9% -4,7%

Primary Surplus (% of GDP) 3,5% 3,9% 4,2% 4,4% 3,9% 4,0% 4,3% 2,1% 2,0% 3,3%

Public sector net debt/GDP 55,5% 57,2% 51,8% 51,5% 45,0% 42,7% 37,0% 43,0% 41,0% 39,0%

Brazil Risk (bps, end of period) 1.439 463 383 311 194 221 450 224 150 80

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Macroeconomic ScenarioI and GDP are highly correlated; personal C is determined by the wage mass

14.0%

15.0%

16.0%

18.0%

18.5%

19.0%Gross investment (% of GDP)Corporate credit (% of GDP)

2.0%

3.0%

7.0%

10.0%

GDP YoY growthGross investment e personal consumption YoY growth (% of GDP)

10.0%

11.0%

12.0%

13.0%

14.0%

16.0%

16.5%

17.0%

17.5%

18.0%

-2.0%

-1.0%

0.0%

1.0%

-2.0%

1.0%

4.0%

8.0%

9.0%

3T00

1T01

3T01

1T02

3T02

1T03

3T03

1T04

3T04

1T05

3T05

1T06

3T06

1T07

3T07

1T08

3T08

1T09

3T09

15.0%

15.5%

Discretionary credit - corporate (quarterly average - % of GDP)

-3.0%

1997

.I

1997

.IV

1998

.III

1999

.II

2000

.I

2000

.IV

2001

.III

2002

.II

2003

.I

2003

.IV

2004

.III

2005

.II

2006

.I

2006

.IV

2007

.III

2008

.II

2009

.I

2009

.IV

-5.0%

Personal consumption YoY growth (% of GDP)Gross investment YoY growth (% of GDP)

15.0%

17.0%

65 0%

67.0%Personal consumption (% of GDP)Personal credit (% of GDP)

15.0%

8 0%

10.0%

Personal consumption (YoY % change)

Real mass of wages (YoY % change)

Gross investment (quarterly data - 4 quarter moving average - % of GDP)Real GDP growth (YoY)

7 0%

9.0%

11.0%

13.0%

59.0%

61.0%

63.0%

65.0%

-5.0%

0.0%

5.0%

10.0%

0 0%

2.0%

4.0%

6.0%

8.0%

3.0%

5.0%

7.0%

3T00

1T01

3T01

1T02

3T02

1T03

3T03

1T04

3T04

1T05

3T05

1T06

3T06

1T07

3T07

1T08

3T08

1T09

3T09

55.0%

57.0%

-15.0%

-10.0%

2T03

4T03

2T04

4T04

2T05

4T05

2T06

4T06

2T07

4T07

2T08

4T08

2T09

4T09

-4.0%

-2.0%

0.0%

Real mass of wages (quarterly average YoY % change)

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Discretionary credit - personal (quarterly average - % of GDP)Personal consumption (quarterly data - 4 quarter moving average - % of GDP)

Real mass of wages (quarterly average - YoY % change)Personal consumption (quarterly data - YoY % change)

Source: IBGE, BC and Banco Pine Economic Reseach Department

Financial Statements Highlights

R$ million

Net Income Personnel and Administrative Expenses (excludes commissions)

141 151

120

150133

43 49

86

2004 2005 2006 2007 2008 2009

32

68 6385

2004 2005 2006 2007 2008 2009

35.7%

Provisions for Loan Losses ROAE

9719.8%

23.0%26.4%

16.3%19.1%

6 626

50 49

2004 2005 2006 2007 2008 2009

10.3%16.4%19.1%

15.1%12.0% 12.5%

9.9%

2004 2005 2006 2007 2008 2009

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ROAE Average Selic

Balance Sheet Highlights

R$ million

Total Assets Shareholders’ Equity

5 700 6,1766,984 800 827 825

1,386 1,9913,215

5,700 ,

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

171 209335

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

Deposits* BIS Ratio

3,029 20 7% 19 2% 19 3%

421 553853

1,9511,462

3,029

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

18.2%20.7% 19.2% 18.3% 19.3%

15.6%

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

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*It includes Agribusiness Letters of Credit

Other Key Figures

R$ million

Total Funding Total Loan Portfolio

2,077

4,325 4,264 4,753

2,085

3,623 3,7374,527

782 1,3242,077

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

7591,341

,

Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

Funding Breakdown

25%17% 7%

18% 13%

4% 4% 5%

2% 28% 32%

28%

26%

10%

8%

6%11%

7%

13%5%36%

25% 18% 13%

54%41% 40%

54%39%

67%

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Dec/04 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09

Deposits Loan Assignments Securities Issued Other Funding Borrowings and Onlendings

Investor Relations

Clive Botelho

CFO

Nira Bessler

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Analyst

Phone: +55-11-3372-5552

www.bancopine.com.br/ir

[email protected]

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This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Banco Pine. These aremerely projections and, as such, are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’sbusiness plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and theindustry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents and are, therefore, subject to change without prior notice.