2Q11 Institutional Presentation
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Transcript of 2Q11 Institutional Presentation
History and Profile
Summary
History and ProfilePINE at a GlanceHistoryOrganizational Structure
Business StrategyCompetitive LandscapeDiversity of ProductsCorporate CreditHedging DeskHedging DeskPINE InvestimentosDistributionThe Current Scenario and Future Prospects
Highlights and Results
Corporate Governance and SharesCorporate GovernanceMain CommitteesShareholders’ StructureShareholders ProfileDividends
Other Highlights2Q11 Events and HighlightsSocial Responsibility
2/36Investor Relations | 2Q11 |
Appendix
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
As of June 30, 2011
Up to R$150 million
15%
PINE thoroughly understands the needs and strategies ofits clients, offering a broad range of financialinstruments in local and foreign currencies
S l i hi i h li li h d
Over R$1 billion50%
R$150 million to
R$500 million
16%
15%
Strong relationship with clients: clients that are servedby more than one product, in average, are served by 2.8products
Business is structured along four primary business lines:
R$500 million to
R$1 billion19%
16%
g p y• Corporate Credit: credit and financing products• Hedging Desk: Instruments for hedging and risk
management• Distribution: investment solutions for foreign and
local investors
Solid Credit Ratings
local investors• PINE Investimentos: vehicle for Investment
Banking and Asset Management
Strategy based on: Br A Brazil national scale
A1.br Brazil national scale
Ba2 Long term foreign currency deposit
gy• Product diversity• Qualified human capital• Efficient risk management• Agility
BB- Long term foreign currency deposit – Positive Outlook
A(bra) Brazil national scale
BB Long term foreign currency
4/36Investor Relations | 2Q11 |
BB- Long term foreign 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
5/36Investor Relations | 2Q11 |
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 HermannIndependent
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 Credit• 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 ResourcesAccountingControllingT Pl i
Investment Banking• Capital Markets• Corporate Finance• Distressed and
Special Situations
Investment
Corporate Processing and FormalizationLegal
TradingHedging Desk• Fixed Income• Currencies• Commodities
Local Distribution• São José do Rio Preto• Rio de Janeiro• Curitiba• Porto Alegre• Belo Horizonte• Recife• Fortaleza
Tax PlanningManagementAsset Management
Local DistributionInternational DistributionMacro and Commodities ResearchProductsInvestor Relations
6/36Investor Relations | 2Q11 |
Fortaleza
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
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.
Unique approach: offering diversity of products toa market segment poorly serviced by the bankingindustry
IB and Foreign Banks
IB and Foreign Banks
Competitive Advantages:Fast responseDedicated team of specialists with deepknowledge of the clients business, balance
Mid-sized banksMid-sized bankssheet and market positioningTailor-made solutions based on a diverseproduct base
8/36Investor Relations | 2Q11 |
Client-oriented StrategyA diversity of financial instruments to better serve our clients needs
CDIs
Interest Rates
CDs
LCIs
CCBs PrivatePlacements
Currency
Commodities
CDBs
RDBs
LCAs
Eurobonds
Placements
Financial Letters
Local Currency Pricing of Assets and Liabilities
OverdraftAccounts
EquitiesDebenturesCRIs
TreasuryDistribution
Foreign Currency
LiquidityManagement
TradingWorking Capital
Underwriting
BNDES Onlending
Bank Guarantees
Compror/Vendor
ACC/ACE
ClientsCorporate
Credit PINE
Investimentos
Capital Markets
Corporate Finance
Special
Local Currency
Onlending
Foreign Currency
Trade Finance(Import and Export)
Private Placements
Financial Advisory
WarrantiesExclusive Funds
Project Finance
ACC/ACE
Export Finance
Finimp
Letters ofCredit
2 770 onlending
Sales DeskSpecial Situations
Investment Management
Interest Rates Currency
(Import and Export)
Structured FinanceCredit Funds
Portfolio Management
Swap NDFStructured Swaps
2,770 onlending
Syndicated andStructured Loans
te est ates Cu e cy
Commodities
9/36Investor Relations | 2Q11 |
Structured Swaps
Options
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 10 economic groups on
Credit Portfolio by ProductAs of June 30, 2011
Bank Guarantees
Trade finance11.9% Private
S iti *
(*) Includes debentures
account manager covers only 10 economic groups onaverage.
Origination staff comprised of 79 people focused onspecific geographic areas. It provides the bank with localand highly updated credit intelligence.
BNDES
Guarantees22.0%
Securities*1.6%
2770 Resolution
0.2%
Relationship with more than 600 different economicgroups
Origination network is comprised of 10 branches dividedinto 14 b siness platforms in different Bra ilian economic
Working
BNDES Onlendings
14.4%
into 14 business platforms in different Brazilian economiccenters
More than 30 credit analysts that guarantee intelligentanalysis in each sector
gCapital50.0%
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 (5 Members)
CREDIT COMMITTEE (5 Members)
10/36Investor Relations | 2Q11 |
updates, interaction with internal research team
collateral, structure etc decision making process
Hedging Desk – PINE’s FICC businessExpertise qualifies the Bank to quickly respond to market conditions and clients demands
Breakdown of Derivative Portfolio Notional Business
DERIVATIVE SEGMENTS
Fixed Income: Fixed Floating Inflation Libor
As of June 30, 2011
Fixed I Fixed Income: Fixed, Floating, Inflation, Libor
Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar, Spot
Income30%
Currencies62%
Commodities: Sugar, Soybean (Grain, Meal and Oil),Corn, Cotton, Metals, Energy
Commodities8%
62%
Purpose
To bring predictability to the clients’ balance sheet
TRENDS
Increased participation of Commodities hedging in the
Notional: R$3.5 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 208 days)
p g ,clients on their daily needs
According to Cetip ranking, PINE is ranked on top 15th inoverall derivatives and 4th in commodities hedging toclients
Increased usage of risk mitigation tools such as initialmargin and threshold.
11/36Investor Relations | 2Q11 |
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 and deep knowledge of the market this area operates as an advisor and not asWith a highly qualified team and 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.
Investment Banking Investment Management
Asset ManagementFixed Income Funds
Capital MarketsStructuring and Placement of Securities
Credit FundsExclusive Mandates
Wealth ManagementP tf li M t
IntermediationStructured Transactions
Corporate FinanceM&A Portfolio ManagementM&APrivate PlacementsStrategic and Financial AdvisoryRestructuringCorporate Governance
Distressed & Special SituationsAdvisory on WorkoutsNegotiation of NPLsAdvisory on Acquisitions of Stressed
12/36Investor Relations | 2Q11 |
y qAssets
DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors
PINE’s Distribution Desk is responsible for serving investors, offering traditional investment products and alsoalternatives linked to the credit origination platform, capital market, asset management and other structuredtransactions.
The objective is to provide the clients with a diversified portfolio of investments in line with market development,that adjusts to investors’ risk profiles. The Distribution Desk counts on PINE’s expertise in structuring andintermediation of fixed income transactions.
Our Distribution Desk is segmented by type of investor to provide a personalized service.
ProductsInvestors
Family Offices
Individuals
Local CurrencyTraditional investments (local deposits such asCDB/RDB/CDI, LCA/LCI)Senior and subordinated local notes
Products
Companies
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
13/36Investor Relations | 2Q11 |
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 (Jun/11)
Lengthening of average maturities: 19 months(Jun/11)
Greater diversification of funding sources
Capital Adequacy Ratio (BIS) of 16.6% (Jun/11)
DEG and PINE partnership (Mar/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
14/36Investor Relations | 2Q11 |
2Q11 HighlightsImprovement on the major KPIs in the 2Q11...
Corporate Credit (R$ Million)
7.9%
* Total Funding(R$ Million)
6.1%
Corporate Net Income (R$ Million)
11.0%
5,792 6,249
5,447 5,780 35.4 39.3
Mar-11 Jun-11 Mar-11 Jun-11 1Q11 2Q11Mar-11 Jun-11(*) Includes debentures
Mar-11 Jun-11 1Q11 2Q11
Net Income (R$ Million)
14 7%
ROAE
210 bps
Corporate ROAE
180 bps14,7% 210 bps 180 bps
31.5 36.1
15.2%
17.3%
17.2%
19.0%
16/36Investor Relations | 2Q11 |
1Q11 2Q11 1Q11 2Q11 1Q11 2Q11
Product and Revenue Diversification ... with contributions from all business lines, as a result of the strategy of complete service to clients.
Corporate Revenues Evolution Penetration Ratio - Clients with more than one Product
R$ Million
174.4199.2
225.52.6
2.8
.
Jun-09 Jun-10 Jun-11
2.3
Jun-09 Jun-10 Jun-11
Corporate Income Breakdown1H10 1H11
Corporate Credit71 6%
PINE Investimentos
2.7%
Corporate Credit63.5%
PINE Investimentos
5.5%
71.6%
Hedging Desk
Treasury7.4% Treasury
3.3%
17/36Investor Relations | 2Q11 |
Hedging Desk 18.4%
Hedging Desk 27.7%
Credit PortfolioCredit portfolio evolution remained positive, posting a 7.9% growth in the quarter...
6 249
558
534 601 751
-
-71
97 Corporate Credit Breakdown (R$ Million)
Private Securities*
4 462
4,794
5,265
5,7475,792
6,249
Corporate credit portfolio grew 30.3% in 12 months.
242 455
629 833
871 902
511 634
842
827
1,022 1,117 1,372
695
728 764
705
--
--
-
Trade finance
Bank Guarantees
3,068
3,416
4,1184,462
1 964 2,284
2,703 2,821 2,792 3,251 3,358 3,132 3,126
68 87
176 242 455
292
350 744
Onlendings
(*) Includes debentures Total Credit Portfolio (R$ Million)
1,964
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
Working Capital
( )
8 01
016
022
,439
Total Credit Portfolio (R$ Million)
Increase of the corporateloan portfolio, whichrepresents 98% of the totalcredit portfolio.
3,89
3
4,08
9
4,73
1
4,96
0
5,18
8
5,60 6,0
6,0 6,
18/36Investor Relations | 2Q11 |
(**) Includes corporate credit, debentures, remaining payroll-deductible loans and credit acquired from financial institutions
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
Credit Portfolio Profile - Corporate... growing in a diversified manner, both in sectors and products...
Mid-West12%
North2%
C di P f li b S
Geographic Distribution
Northeast5%
12%Credit Portfolio by Sector
Infrastructure8%
Transportation and Logistics
6%
Meat packing5% Foreign Trade
5%
Financial
Southeast72%
South 9%
l
Construction8%
Financial Institutions
4%
Metal and Mining4%
Bank
Trade finance11 9%
Credit Portfolio by Product
Electric and
Agriculture9%
Telecom3%
Specialized Services Bank
Guarantees22.0%
11.9% Private Securities*
1.6%
2770 Resolution
0.2%Sugar and Ethanol
Electric and Renewable
Energy9%
Services3%
Vehicles and Parts3%
Pharmaceutical
BNDES Onlendings
14.4%
16%Pharmaceutical and Cosmetic
2%Other15%
19/36Investor Relations | 2Q11 |
Working Capital50.0%
(*) Includes debentures
Credit Portfolio Quality... with quality, collaterals and credit coverage.
Credit Portfolio Quality – June 2011 Non Performing Loans
B23.2%
Contracts Overdue
Instalments Overdue
C5.7% 1.
1%
9%
AA-A67.8%
D-E1.4%
F-H1.9%
0.
0.5%
0.5%
0.4%
0.4%
0.3%
0.2%
0.2%
0.2%
0.1%
0.1%
Total Credit Coverage Collaterals
More than 15 days
More than 30 days
More than 60 days
More than 90 days
More than 120 days
More than 180 days
94 b
Receivables38%Property
Pledge16%
94 bps4 bps
Products PledgeInvestments
1.76%
2.66% 2.70%
20/36Investor Relations | 2Q11 |
40%6%
Jun-10 Mar-10 Jun-11
FundingFunding is growing with quality and diversity...
102
Funding Mix( R$ Million)
Private Placements
Capital Market5.589
5 3755.447
5.780
829 898
413 377
435 596
419 249
192 152
125
92
230 239 227
200 160
282
267
75 276 203
194 194 201
220
77 87 151
166 179 172
102 Multilateral Lines
Loan Assignments
Trade Finance
5.375
4.8714.6344.531
3.8523.674
1,463 1 559 1 114 1,287
91 85 175
198 214 218
212
39 50 36
46 42 41
53
85
206 248 201
224 320 272
209
87
176 242 453
626 867 898
596
527
525 448
405
650 529
419 330
247 225 116 108 78 72
BNDES
Interbank deposits
Demand deposits
1 225 1,570 1,566 1,646 1,654 1,564 1,720 1,845
807
840
1,123 1,064 1,124 1,463 1,559 1,114
88
89 77
63 84
85 68
87 596 Demand deposits
Individuals
Corporate Clients
861 1,225
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
Institutional
Foreign Funding – Multilateral Agencies
A/B Loan (January, 2011)
21/36Investor Relations | 2Q11 |
US$106.0 Million
Funding and Credit Portfolio Maturities ... posting a 4 months positive gap between credit and funding,
R$ million
Credit Funding
2,61
6
9 6
-
1,71
9
1,23
5
384
186
53
1,41
2
1,78
6
1,38
0
555
395
No Maturity Up to 3 months
(includes Cash)
From 3 to 12 months
From 1 to 3 years
From 3 to 5 years
More than 5 years
Average Maturity
Credit: 15 months
22/36Investor Relations | 2Q11 |
Funding: 19 months
Capital Adequacy Ratio (BIS)... while BIS ratio remained at a comfortable level.
0 6%
BIS Tier II Tier I
19.3%17.2%
15 6% 18 4% 17 4%
11% MinimumRegulatoty Capital
0.6%
0.5%0.5% 0.5% 3.9% 3.6%
3.6% 3.7% 3.4%
15.6%14.9%
18.5% 18.4% 17.4%17.1% 16.6%
18.7%16.7% 15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2%
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
BIS R ti Equity (R$ Thousand)
BIS Ratio
(%)
Tier I 907,057 13.2%
Tier II 230,523 3.4%
BIS 1,137,580 16.6%
23/36Investor Relations | 2Q11 |
Balance Sheet Strength and ProfitabilityIn summary, PINE shows profitability and buffers of liquidity, capital and credit portfolio coverage.
ROAE Total Loan Credit Coverage Ratio
5%
16.3
%
15.9
%
45%
.66%
2.70
%
10.
1H09 1H10 1H11
1.76
%
1.74
% 2.4 2 2
Capital Cash/Time Deposits DEG Regulatory Capital 11% Minimum Regulatoty Capital
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
0.7%
17,3%17.3%
18.5
%
18.4
%
17.4
%
17.1
%
16.6
%
43%40%
43% 42% 42%
24/36Investor Relations | 2Q11 |
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11Jun-10 Sep-10 Dec-09 Mar-11 Jun-11
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 and a partner of Albino AdvogadosAssociadosAntonio Hermann: Former CEO of Banco Itamarati, 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
First bank to release BR GAAP and IFRS simultaneously and quarterly
26/36Investor Relations | 2Q11 |
y q y
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 Council
PwCPwC
ExecutiveCommitteeExecutiveCommittee
TreasuryCommittee
(ALCO)
TreasuryCommittee
(ALCO)
ProductsCommitteeProducts
CommitteeCredit
CommitteeCredit
Committee
Internal Controls and
Audit
Internal Controls and
Audit DelinquencyCommittee
DelinquencyCommittee
Corporate Finance
Committee
Corporate Finance
Committee(ALCO)(ALCO) CommitteeCommitteeCommitteeCommittee
Cayman Committee
Cayman Committee
PerformanceEvaluationCommittee
PerformanceEvaluationCommittee
EthicsCommittee
EthicsCommittee
ITCommittee
ITCommittee
HumanResourcesCommittee
HumanResourcesCommittee
Risks Committee
Risks Committee
27/36Investor Relations | 2Q11 |
Shareholders’ StructureFree float of 25.6%.
Base 07/29/11
Common Preferred Total %Common Preferred Total %
Controlling Shareholder 45,443,872 14,370,556 59,814,428 71.2%
Management - 2,737,946 2,737,946 3.3%
Free Float - 21,481,892 21,481,892 25.6%
Individuals - 4,581,823 4,581,823 5.5%
Institutional Investors - 7,651,642 7,651,642 9.1%
Foreign Investors - 9,248,427 9,248,427 11.0%
Total 45,443,872 38,590,394 84,034,266
28/36Investor Relations | 2Q11 |
DividendsSince 2008, Banco PINE has paid dividends/interest on own capital on a quarterly-basis.
Dividends and Interest on Own Capital
R$ million R$
Gross Amount Total Amount Amount per share
1Q11 15.0 0.18
2Q11 20.0 0.24 Q
Total paid in 1H11 35.0 0.42
Dividends and Interest on Own Capital (R$ Million)
45 40
16
25 25
33 30 35
40 35
29/36Investor Relations | 2Q11 |
1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11
2Q11 Events and HighlightsMarket Recognition.
PINE was ranked the 14th largest bank in Brazil in corporate credit and among the 12 largest banks in credit forlarge corporations, according to the Maiores e Melhores (Largest & Best) ranking compiled by Exame magazine.
PINE was ranked the 15th largest bank in Cetip’s overall derivatives ranking, and the 4th largest in commoditieshedging for clients.
Austin Rating upgraded PINE’s long-term rating in July 2011 from ‘A’ to ‘A+’ in July 2011.
On April 6th, PINE’s first Corporate Credit FIDC was successfully implemented. The amount of the fund is R$ 300million, with a AA+ rating attributed by S&P.
PINE was considered “The Most Green Bank” byInternational Finance Corporation’s (IFC) privateprograms agency of the World Bank. This was due to itsTrade Finance Program (GTFP) transactions worldwideand to its Corporate Loans to companies focused onand to its Corporate Loans to companies focused onrenewable energy and the ethanol market .
31/36Investor Relations | 2Q11 |
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: a project conducted bythe Brilho Brasileiro Institute founded by tennisplayer Vanessa Menga, which benefits 80disabled tennis players
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
32/36Investor Relations | 2Q11 |
produced sustainability reports for corporateloans.
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) 10.48Low Risk for the Medium Term (-)
A+ A+
Short Term Br-1 F1(bra)
34/36Investor Relations | 2Q11 |
Key Performance Indicators
2Q11 1Q11 2Q10 1H11 1H10
Earnings and Returns
Net Income (R$ thousand) 36,084 31,450 35,605 67,534 65,776
Annualized ROAE 17.3% 15.2% 17.9% 15.9% 16.3%
Annualized ROAAw 1 2.5% 2.3% 2.9% 2.4% 2.7%
Annualized financial margin before provision 6.4% 6.4% 7.7% 6.1% 6.9%
Annualized financial mergin after provision 5.7% 5.5% 7.0% 5.3% 6.5%
Balance Sheet (R$ thousand)
Total credit portfolio 2 6 439 157 6 022 018 5 187 902 6 439 157 5 187 902Total credit portfolio 6,439,157 6,022,018 5,187,902 6,439,157 5,187,902
Corporate credit and private securities 3 6,248,697 5,792,235 4,794,092 6,248,697 4,794,092
Risk weighted assets 6,026,322 5,650,198 5,045,471 6,026,322 5,045,471
Total deposits 4 3,605,498 3,364,504 3,183,043 3,605,498 3,183,043
Total funding 5,780,490 5,446,978 4,870,598 5,780,490 4,870,598
Shareholders' equity 892 700 878 549 853 300 892 700 853 300Shareholders equity 892,700 878,549 853,300 892,700 853,300
Credit portfolio quality
Non performing loans - 15 days 0.3% 0.7% 0.7% 0.3% 0.7%
Non performing Loans - 60 days 0.2% 0.4% 0.6% 0.2% 0.6%
Non performing loans 90 days 0 2% 0 3% 0 6% 0 2% 0 6%Non performing loans - 90 days 0.2% 0.3% 0.6% 0.2% 0.6%
Credit coverage 2.7% 2.7% 1.8% 2.7% 1.8%
Performance
BIS ratio 16.6% 17.1% 18.5% 16.6% 18.5%
ffi i i 39 9% 38 9% 33 % 39 % 36 2%Efficiency ratio 39.9% 38.9% 33.5% 39.5% 36.2%
Earnings per share (R$) 0.43 0.37 0.43 0.80 0.79
Book value per share (R$) 10.62 10.45 10.24 10.62 10.24 (1) Risk weighted assets.(2) Includes bank guarantees and debentures.(3) Includes bank guarantees.(4) Includes Agribusiness Letter of Credit.
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(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
36/36Investor Relations | 2Q11 |
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.