Post on 27-Jul-2015
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
2/45
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
3/45
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$825 million
PINE4: traded at BMF&Bovespa Level 1 CorporateG
Solid Credit
GovernanceBr A- Brazil national scale BB- Long/short-term foreign and
local-currency deposit
A-(bra) Brazil national scale B L / h t t f i d
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B+ Long/short-term foreign and local-currency deposit
December 31, 2009
History of Banco PINEFounded in 1997, Banco PINE has been showing a track record of resilient development
1997Foundation of Banco
2004Opportunity
2007IPO
2005Noberto Pinheiro
1939Foundation of
1975Noberto Pinheiro
2009Foundation of f
PINESole focus on
Corporate Lending
pp yIdentified in the payroll
loan segment
IPOCayman Branch
Decision to deleverage
payroll lending
becomes Banco PINE’s sole shareholder
fBanco Central do
Nordestebecomes one of the BMC’s controlling
shareholder
PINE Investimentos
1939 – Pinheiro Family founds its first bank in Brasil –Banco Central do Nordeste
1975 - Noberto Pinheiro becomes one of the contolling
Strategic decision of deleveraging the payroll-loanbusiness, at the end of 2007
CORPORATEshareholder of Banco BMC
1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE
100% focused on the Bank’s traditional corebusinessAgile, complete and customized services forCompaniesCross-Selling: diversified and sophisticated
2005 - Noberto Pinheiro becomes Banco PINE´s sole shareholder
2007 – Start up of Cayman branch and IPO
products
PAYROLL-LOANReduced marginsIncreased competition
2009 - Foundation of PINE Investimentosp
Excessive regulationScale needsLack of cross-selling opportunitiesExcessive lengthening of maturitiesEnd of pre payment fee
6/45
End of pre-payment fee
Management of the CrisisAgile and specialized management to overcome the crisis
Banco PINE’s strengths for managing the crisis:
No dependency upon long-term funding. Deleveraging of payrollloans and auto loans “pilot project”, before the crisis
Total Credit Exposure (R$ 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
7/45
*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
8/45
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
10/45
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
11/45
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
13/45
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
14/45
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
16/45
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$million
Dec-09 Sep-09 Dec-08
Assets 6,984 7,200 6,176
Securities and derivative financial instruments 2,761 3,578 2,788
Lending operations 3,802 3,210 3,030
(-) Allowance for loan losses (76) (105) (95)
Net lending operations 3,726 3,105 2,935
Other 497 517 453 Other 497 517 453
Liabilities 6,159 6,385 5,349
Deposits 2,784 2,201 1,423
Money market funding 1,600 2,585 2,119
Borrowings and onlendings 815 718 819
Other 960 881 988
Shareholders' equity 825 815 827
Liabilities and Shareholders' equity 6,984 7,200 6,176
18/45
ResultsOperating Income grew 28.6% in 12 months
R$ 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%
19/45
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
20/45
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%
22/45
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)
23/45
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
24/45
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
25/45
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%
26/45
(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$125 million
Maturity January-17
Interest rate 8.75% p.a. to be paid semi-annually
Joint Lead Managers HSBC Securities (USA) and Credit Suisse Securities (USA)
Joint BookrunnersHSBC Securities (USA) Inc, Credit Suisse Securities (USA) LLC and Banco Espirito Santo de Investimentos S A
27/45
Santo de Investimentos, S.A.
BIS RatioBIS ratio was 15.6%. Including the new issuance, this ratio would be 19.6%
Equity R$ 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.
28/45
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
29/45
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
30/45
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
32/45
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
33/45
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
34/45
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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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
ir@bancopine.com.br
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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.