BI&P- Indusval- Earnings Release 3Q13

1/20

EARNINGS RELEASE

3rd

QUARTER 2013

Investment platform ‘guide’ launched

Managerial ALL expenses in the quarter (annualized) was 0.75%, compared to 1.1% in

the previous quarter, reflecting the quality of Banco BI&P’s credit portfolio

BI&P - Banco Indusval & Partners is a commercial bank with more than 45 years of experience in the financial market, focusing on local and foreign currency, fixed income and corporate finance for companies. BI&P relies on a network of 10 branches strategically located in economically relevant Brazilian regions, including an offshore branch in Cayman Islands, its brokerage firm operating at the São Paulo Stock, Commodities and Futures Exchange - BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which originates agricultural bonds.

Highlights

• Volume of origination by the Banco BI&P commercial team: the Expanded

Credit Portfolio, including the loans assigned to Banco Intercap, totaled

R$3.4 billion, up 3.9% in the quarter and 12.2% from September 2012.

Including the Banco Intercap portfolio, the consolidated Expanded Credit

Portfolio totaled R$3.6 billion, representing growth of 21.5% in the year.

• The Emerging Companies and Corporate segments accounted for

48.7% and 50.5%, respectively, of the expanded credit portfolio of Banco

BI&P.

• Loans rated between AA and B corresponded to 84.5% of the expanded

credit portfolio of Banco BI&P. Noteworthy are the loans granted during the

period: 99.9% were rated between AA and B

• The Managerial Expense with Allowance for Loan Losses (ALL) in

3Q13 (annualized) was 0.75% of the expanded credit portfolio (1.1% in

2Q13), in line with the conservative credit policy adopted by the Bank and

lower than Management’s expectations.

• Funding volume totaled R$3.1 billion and Free Cash totaled R$657.9 million

at the end of 3Q13, in line to the growth of the loan portfolio.

• Adjusted Revenue from Credit Operations and Agro Bonds (CPR),

(see page 7), which reflects the Bank's core business, totaled R$78.0 million

in the period, increasing 12.7% in the quarter and 32.7% in 12 months.

• Income from Services Rendered, which includes fees for structuring

corporate finance operations, increased 16.7% in 3Q13 and 31.6% in 12

months.

• Net Income from the quarter was R$2.0 million, mainly due to the increase

in revenues from credit operations and agro bonds (CPR).

• In the beginning of November, we announced the launch of guide

investimentos, which will provide asset management services for high-

income individuals through an investment platform that includes investment

consulting and advice, financial content and intelligence, and a tailor-made

product offering selected by analysts and economists.

• On November 4, 2013, we concluded the acquisition of Banco Intercap

S.A. and, consequently, announced a capital increase of R$107 million,

to be subscribed by the shareholders of Banco Intercap. Messrs. Roberto de

Rezende Barbosa and Afonso Antônio Hennel will join the Bank BI&P’s

controlling group, and also, after approval by the extraordinary shareholders’

meeting, the Board of Directors of the Bank as Vice Chairman and Director,

respectively.

IDVL4: R$5.71 per share

Closing: November 12, 2013

Outstanding Shares: 74.698.289

Market Cap: R$426.5 million

Price/Book Value: 0.74

Conference Call / Webcasts

13/11/2013

In English

10 a.m. (US EST) / 1 p.m. (Brasília)

Connections

Brazil: +55 11 4688-6361

EUA: +1 786 924-6977

Code: Banco BI&P

In Portuguese

9 a.m. (US EST) / 12 p.m. (Brasília)

Number: +55 11 4688-6361

Code: Banco BI&P

Website www.bip.b.br/ir

2/20

EARNING RELEASE 3

rd QUARTER 2013

Summary

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

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

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

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

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

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

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

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

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

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

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

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

3/20

EARNING RELEASE 3

rd QUARTER 2013

Message from the Management

In the third quarter, we concluded a few more stages of the cycle of changes we rolled out in 2011, with the

Bank’s commercial area maintaining the brisk pace in originating quality assets, and the

investment banking area working on a robust pipeline. The idea behind these measures is to gain scale

and drive revenue and fee generation.

In November 2013, we launched ‘guide investimentos’, an innovative investment platform that broadens the

scope of activity of our brokerage arm. The investment platform, which includes investment consulting and

advice, product offerings selected by analysts and economists, financial content and intelligence, and a tailor-

made offering for each client, was developed over the past 12 months for high-income individual investors. With

‘guide investimentos’, we plan to expand our distribution capacity for investment products, diversify our funding

sources and increase our revenue and fee sources.

This month we also concluded the acquisition of Banco Intercap, announced in June this year. Consequently,

we announced a capital increase of R$107.5 million, which will be subscribed to by the shareholders of Banco

Intercap and which will increase the capital stock of Banco BI&P to R$769.8 million. Messrs. Roberto de Rezende

Barbosa and Afonso Antônio Hennel will join the Bank BI&P’s controlling group, and also, after approval by the

extraordinary shareholders’ meeting, the Board of Directors of Banco BI&P as Vice Chairman and Director,

respectively.

This quarter, Banco BI&P’s commercial area once again demonstrated its excellent capacity to originate quality

assets, which resulted in the Expanded Credit Portfolio, which includes loans assigned to Banco Intercap,

growing 3.9% in the quarter and 12.2% in 12 months to reach R$3.4 billion. Loans to Emerging companies

corresponded to 48.7% and loans to the Corporate segment accounted for 50.5%. The expanded credit

portfolios of Banco BI&P and Banco Intercap jointly amounted to R$3.6 billion at the close of the quarter. In the

past 12 months, the consolidated portfolio grew 21.5%.

Thanks to the more conservative lending policy we adopted in 2011, the managerial expense with allowance for

loan losses (ALL) in the quarter corresponded to 0.75% (annualized) of the expanded credit portfolio, which was

lower than management’s expectations, reflecting our stricter criteria for loan origination and management.

The investment bank operation has been integrating with other areas of the Bank. During the quarter, we had 52

ongoing M&A and funding mandates, apart from the over 65 proposals already made to potential clients.

Result from financial intermediation before allowance for loan losses increased from R$2.4 million in 2Q13 to

R$46.0 million in 3Q13, mainly due to the increase in revenues from credit operations and agro bonds (CPR),

from R$69.2 million in 2Q13 to R$78.0 million in 3Q13. Driven by this result, and with operating expenses strictly

under control, we posted net income of R$2.0 million in the quarter.

We continued to diversify our funding sources, with funding through agribusiness letters of credit (LCA) and real

estate notes (LCI) increasingly sharply, from 12.6% of total funding in September 2012 to 22.0% in September

2013. The number of investors also increased sharply during the period, from around 1,200 to 2,700.

The Bank has started registering more stable results in the third quarter, thanks to the growth of the credit

portfolio, absence of additional provisions and recurring revenues from structuring fee and derivatives for clients.

Funding client base has been increased as well as funding through securities exempt from income tax for

individuals, such as LCAs and LCIs. The phase of changes and establishment of new areas was concluded with

the acquisition of Banco Intercap and the launch of ‘guide investimentos’. Our objective remains to gain scale

based on a solid foundation, with growing impact on our profitability.

4/20

EARNING RELEASE 3

rd QUARTER 2013

Macroeconomic Scenario

July was marked by the announcement of negative data about business activity and overall confidence, reflecting

the street protests across Brazil and the uncertain scenario abroad. However, this gloom surrounding the

economic scenario improved during the third quarter, backed by surprisingly positive data about the job market.

The continuation of the unemployment rate at historical lows has been the result of the higher-than-expected

performance of the services and business sectors. On the other hand, industry continued to deliver weak results

between July and September, pushing economic growth projections for the third quarter to almost zero, with a

negative bias, after the solid growth between April and June. During the coming months, the Brazilian

government’s handling of the auctions for infrastructure concessions and the consequent growth of investments

will be fundamental for improving the expectations of market players and for the country’s economic growth.

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

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

target ceiling at the end of the second quarter, the price index dropped significantly in July due to seasonal

factors and the withdrawal of the hike in public transport fares. Nevertheless, it once again increased towards

the end of the third quarter, indicating that this trend should continue through the closing months of the year.

To contain these pressures on prices, the Brazilian Central Bank continued its monetary tightening cycle, raising

the basic interest rate (Selic) to 9.0% p.a. and signaling that this cycle should continue at the upcoming

meetings of the Monetary Policy Committee to be held later this year.

In the foreign exchange market, July and August were marked by high volatility of the U.S. dollar caused by the

market’s fears that the U.S. Federal Reserve would start scaling down its monetary stimulation policy in

September. These fluctuations and the consequent depreciation of the Brazilian real against the dollar forced the

Brazilian Central Bank to implement a policy of daily intervention in the exchange market until the year-end. This

supply of exchange swaps, combined with the Federal Reserve’s decision to continue its monetary policy,

reduced exchange volatility and brought the dollar to close to R$2.20.

Credit volume in Brazil’s national financial system grew 9.7% until September 2013 to reach R$2.597 trillion.

Credit volume growth in 12 months was 15.7%, with the average loan term increasing from 80.6 months in

September 2012 to 96.7 months in September 2013. Credit as a percentage of GDP ended September at 55.5%,

higher than 55.2% at the end of June, and has remained above 50% since May 2012.

Default in the individuals segment dropped from 8.1% in the first quarter of 2012 to 7.0% this quarter, while

corporate default declined from 3.7% to 3.4%. These marginal improvements in default rates are the result of

the more selective approach to credit adopted by Brazilian banks.

Macroeconomic Data 3Q12 2Q13 3Q13 2013e

Real GBP Growth (Q/Previous Q) 0.4% 1.5% 0.0% (e)

2.5%

Inflation (IPCA - IBGE) – quarterly change 1.4% 1.2% 0.6% 5.8%

Inflation (IPCA - IBGE) – annual change 5.3% 6.7% 5.9%

5.8%

FX (US$/R$) – quarterly change 2.1% 10.1% -0.4% 7.4%

Interest Rate (Selic) 7.5% 8.0% 9.0% 10.0%

e= expected

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EARNING RELEASE 3

rd QUARTER 2013

Key Indicators

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

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

Results 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

Loan Operations & Agro Bonds (CPR) adjusted 1 78.0 69.2 12.7% 58.8 32.7% 207.9 207.5 0.2%

Effect of recoveries and discounts 1 1.4 (9.2) 115.3% 4.1 -65.5% (10.0) 3.7 n.c.

Revenues from Securities (w/o CPR), Derivatives & FX 46.9 46.6 0.6% 64.2 -26.9% 138.1 274.7 -49.7%

Effect of discontinuance of hedge accounting (0.1) (13.6) -98.9% 4.6 -103.2% (29.3) 30.4 -196.4%

Financial Intermediation Expenses (w/o ALL) (80.2) (90.6) -11.5% (83.3) -3.7% (235.7) (357.5) -34.1%

Result from Financial Int. before ALL 46.0 2.4 n.c. 48.4 -5.1% 71.1 158.8 -55.2%

ALL Expenses 2 (6.7) (0.1) n.c. (11.9) -43.9% (140.2) (48.9) 186.8%

Result from Financial Intermediation 39.3 2.2 n.c. 36.5 7.5% (69.1) 109.9 -162.9%

Net Operating Expenses (32.3) (35.7) -9.4% (27.0) 19.5% (101.9) (84.8) 20.1%

Recurring Operating Result 7.0 (33.4) 120.9% 9.5 -26.5% (171.0) 25.1 n.c.

Non-Recurring Operating Expenses (0.7) (0.4) 86.1% 0.0 n.c. (1.0) (0.3) 274.7%

Operating Result 6.3 (33.8) 118.7% 9.5 -33.6% (172.0) 24.8 n.c.

Net Profit (Loss) 2.0 (20.6) 109.7% 3.1 -36.1% (110.1) 10.6 n.c.

Assets & Liabilities 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Loan Portfolio 3 2,549.0 2,587.8 -1.5% 2,548.4 0.0%

Expanded Loan Portfolio 3 4 3,355.2 3,228.7 3.9% 2,990.9 12.2%

Cash & Short Term Investments 179.8 297.3 -39.5% 955.1 -81.2%

Securities and Derivatives 1,278.7 1,056.5 21.0% 613.1 108.6%

Securities excl. Agro. & Private Credit Bonds 5 673.1 626.5 7.4% 338.1 99.1%

Total Assets 4,171.0 4,198.2 -0.6% 4,337.1 -3.8%

Total Deposits 2,391.2 2,427.8 -1.5% 2,194.5 9.0%

Open Market 107.5 176.1 -39.0% 597.2 -82.0%

Foreign Borrowings 365.3 366.0 -0.2% 432.0 -15.4%

Domestic Onlendings 325.4 348.6 -6.6% 309.3 5.2%

Shareholders’ Equity 574.5 569.6 0.9% 587.6 -2.2%

Performance 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

Free Cash 657.9 660.7 -0.4% 628.7 4.6%

NPL 60 days/ Loan portfolio 2.9% 2.6% 0.3 p.p. 3.1% -0.2 p.p.

NPL 90 days/ Loan portfolio 2.6% 2.1% 0.6 p.p. 1.9% 0.7 p.p.

Basel Index 14.5% 14.6% -0.1 p.p. 15.8% -1.3 p.p.

ROAE 1.4% -14.6% 16.0 p.p. 2.2% -0.8 p.p. 0.0% 0.0% 0.0 p.p.

Adjusted Net Interest Margin (NIMa) 6 5.6% 3.2% 2.4 p.p. 5.8% -0.2 p.p. 4.7% 5.9% -1.3 p.p.

Efficiency Ratio 84.0% 474.9% n.c. 69.7% 14.3 p.p. 1.5 p.p. 65.8% 81.3 p.p.

Other Information 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Number of Corporate Clients 865 874 -1.0% 774 -11.8%

Number of Employees 437 448 -2.5% 423 -3.3%

Banco BI&P and Voga employees 376 390 -3.6% 388 -3.1%

Brokerage house and Serglobal employees 61 58 5.2% 35 -74.3%

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

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

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

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

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EARNING RELEASE 3

rd QUARTER 2013

Operating Performance

Financial Intermediation Result

before Allowance for Loan Losses Net Profit

Expanded Credit Portfolio Funding

Profitability

Financial Intermediation 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

Financial Intermediation Revenues 126.2 93.0 35.7% 131.7 -4.2% 306.8 516.3 -40.6%

Loan Operations and Agro Bonds (CPR) adjusted * 78.0 69.2 12.7% 58.8 32.7% 207.9 207.5 0.2%

Effects recoveries and discounts * 1.4 (9.2) 115.3% 4.1 -65.5% (10.0) 3.7 n.c.

Loan Operations and Agro Bonds 79.4 60.0 32.4% 62.9 26.3% 198.0 211.2 -6.3%

Loans, Discount Receivables and Agro bonds (CPR) 68.7 49.5 38.9% 49.1 39.9% 165.6 173.7 -4.6%

Financing 7.7 8.8 -12.3% 7.9 -2.2% 23.3 21.8 6.8%

Other 3.0 1.7 75.2% 5.9 -49.1% 9.0 15.7 -42.6%

Securities (w/o agro bonds (CPR)) 21.4 12.5 71.2% 53.4 -60.0% 50.9 221.2 -77.0%

Derivatives 2.9 (7.8) 137.8% 4.7 -37.8% (2.9) 6.5 -144.0%

FX Operations Result 22.4 28.3 -20.9% 10.6 111.0% 60.8 77.4 -21.4%

Financial Intermediation Expenses 80.2 90.6 -11.5% 83.3 -3.7% 235.7 357.5 -34.1%

Money Market Funding 56.4 53.0 6.5% 69.2 -18.5% 162.7 273.9 -40.6%

Time Deposits 40.8 40.4 0.9% 37.3 9.5% 122.0 123.3 -1.0%

Repurchase Transactions 2.7 3.0 -12.8% 22.7 -88.3% 10.3 121.3 -91.5%

Interbank Deposits 0.6 0.8 -32.3% 2.4 -76.4% 2.6 8.9 -70.4%

Agro (LCA), Real Estate (LCI) & Bank Notes (LF) 12.4 8.7 42.8% 6.9 81.4% 27.7 20.3 36.2%

Loans, Assignments & Onlending 23.2 37.6 -38.2% 14.0 65.5% 72.5 83.6 -13.3%

Foreign Borrowings 18.3 32.2 -43.1% 8.5 115.6% 57.4 70.3 -18.2%

Domestic Borrowings & Onlending 4.9 5.4 -9.1% 5.5 -11.6% 15.1 13.3 12.8%

Sales operations/transfer of financial assets 0.5 0.0 n.c. 0.0 n.c. 0.5 0.0 n.c.

Gross Result from Fin. Interm. before ALL 46.0 2.4 n.c. 48.4 -5.1% 71.1 158.8 -55.2%

Allowance for Loan Losses (ALL) (6.7) (0.1) n.c. (11.9) -43.9% (140.2) (48.9) 186.8%

Gross Result from Financial Intermediation 39.3 2.2 n.c. 36.5 7.5% (69.1) 109.9 -162.9%

* Excluding the effects of (i) recoveries from operations written off, and (ii) discounts granted upon settlement of loans in the period.

48.4 48.5

22.8

2.4

46.045.6 44.3 44.8

26.9

47.7

3Q12 4Q12 1Q13 2Q13 3Q13

R$ m

illio

n

Financial Intermediation Result before ALLFinancial Intermediation Result before ALL adjusted *

3.1 3.62.0

10.6

3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13

R$ m

illio

n

-20.6-91.4

3.0 3.1 3.0 3.2 3.4

3Q12 4Q12 1Q13 2Q13 3Q13

R$ b

illio

n

Credits assigned to Banco IntercapPrivate Credit Bonds (PNs and Debentures)Agro Bonds (CPR, CDA/WA and CDCA)Guarantees IssuedTrade FinanceLoans and Financing in Real

2.9 3.0 3.2 3.1 3.1

3Q12 4Q12 1Q13 2Q13 3Q13

R$ b

illio

n

TotalTrade Finance & Foreign BorrowingsDomestic OnlendingInterbank & Demand DepositsAgro Bonds, Bank & Real Estate NotesInsured Time Deposits (DPGE)

5.0%

-110.1

7/20

EARNING RELEASE 3

rd QUARTER 2013

Result from financial intermediation before allowance for loan losses totaled R$46.0 million in 3Q13, versus R$2.4

million in 2Q13, due to the increase in revenue from credit operations and agro bonds (CPR).

Adjusted Revenues from credit operations and CPR, from which the impact of discounts granted upon settlement

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

increased 12.7% in 3Q13, reflecting the increase in the average balance of the credit portfolio and CPR in the

quarter.

Revenues from Loan Operations and CPR adjusted 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

A. Revenues from Loan Operations and Agro Bonds (CPR) 79.4 60.0 32.4% 62.9 26.3% 198.0 211.2 -6.3%

B. Recoveries of written-off operations 3.0 1.7 75.2% 5.9 -49.1% 9.0 15.7 -42.6%

C. Discounts granted upon settlement of operations (1.6) (11.0) -85.5% (1.8) -11.4% (19.0) (12.0) 58.3%

Adj. Revenues from Loan Operations and CPR (A-B-C) 78.0 69.2 12.7% 58.8 32.7% 207.9 207.5 0.2%

Income from Securities, with offset in funding expenses, increased 60.6% in the quarter, mainly driven by the income

from fixed-income securities, especially CPRs and government bonds.

The Result from Derivative Financial Instruments includes results from operations involving swaps, forwards, futures

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

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

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

During the quarter, this item totaled R$2.9 million, versus a negative result of R$7.8 million in 2Q13 and R$4.7 million

in 3Q12.

Both Income from Foreign Exchange Operations and Expenses with Foreign Borrowings were especially impacted

by the variation in the dollar/real exchange rate during the quarter and by the decline in demand from clients.

With regard to Expenses with Foreign Borrowings, note that the loan obtained from JP Morgan in 2011, in the

amount of US$25 million, matured in June 2013 and, in August 2013, we obtained a loan from IFC in the amount

of US$15 million, with maturity in July 2016.

Expenses with Time Deposits increased slightly in the quarter due to the combination of the following factors: (i)

increase of R$11.6 million in the average balance of funding through time deposits with special guarantee (DPGE

I); (ii) decrease of R$55.4 million in the average balance of bank deposit certificates (CDB); and (iii) consecutive

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

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

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

balances.

The managerial expense with allowance for loan losses (ALL) in the quarter, which includes the reversals to ALL

originated by discounts granted upon settlement of loans and recoveries of loans written off, was R$6.1 million,

equivalent to 0.75% (annualized) of the expanded credit portfolio, which is below management’s expectations

and in line with the conservative credit policy adopted by the Bank since April 2011.

The Result from financial intermediation totaled R$39.3 million in the quarter, compared to R$2.2 million in

2Q13, mainly due to the above-mentioned factors.

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EARNING RELEASE 3

rd QUARTER 2013

Net Interest Margin (NIM)

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

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

adjusted NIM increased from 3.2% in 2Q13 to 5.6% in 3Q13, as the following table shows:

Net Interest Margin 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

A. Result from Finan. Int. before ALL adjusted 1 47.7 26.9 77.2% 45.6 4.6% 119.4 140.4 -15.0%

A.a. Result from Finan. Interm. before ALL 46.0 2.4 n.c. 48.4 -5.1% 71.1 158.8 -55.2%

B. Average Interest bearing Assets 3,657.9 3,626.3 0.9% 4,106.5 -10.9% 3,629.3 4,178.2 -13.1%

Adjustm. for non-remunerated average assets 2 (154.4) (184.0) -16.1% (874.3) -82.3% (189.2) (992.6) -80.9%

B.a. Adjusted Average Interest bearing Assets 3,503.5 3,442.3 1.8% 3,232.2 8.4% 3,440.0 3,185.5 8.0%

Net Interest Margin (Aa/Ba) 5.4% 0.3% 5.1 p.p. 6.1% -0.8 p.p. 4.2% 10.2% -6.0 p.p.

Adj. Net Interest Margin (A/Ba) 1 5.6% 3.2% 2.4 p.p. 5.8% -0.2 p.p. 7.1% 9.0% -1.9 p.p.

Managerial NIM with Clients 4.1% 4.1% 0.0 p.p. 4.5% -0.4 p.p. 4.1% 4.8% -0.7 p.p.

1 Repos with equivalent volumes, tenors and rates both in assets and liabilities. 2 Excluding (i) effects of the discontinuance of the treatment of hedge accounting, adopted in 2Q12, for booking hedges of cash flows, which

continue to be protected by hedge, and (ii) discounts granted in operations settled in the period.

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

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

stable in the quarter at 4.1%. In twelve months, margin declined 0.4 p.p., as a result of a more conservative

profile of the portfolio. We expect margin to stabilize at these levels but could increase slightly with the expected

growth of the Bank’s expanded credit portfolio over the coming quarters.

Efficiency

The efficiency ratio in the quarter stood at 84.0%, resulting from the growth in income from financial

intermediation, especially driven by revenues from credit operations.

Efficiency Ratio 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12

Personnel Expenses 24.1 26.1 -7.8% 21.4 12.4% 76.6 66.1 15.9%

Contributions and Profit-sharing 1.9 2.7 -30.7% 3.0 -37.1% 10.0 7.4 35.8%

Administrative Expenses 17.2 15.7 9.4% 13.0 31.7% 46.2 39.8 16.2%

Taxes 2.9 2.0 44.8% 2.3 30.8% 8.6 8.3 3.4%

A. Total Operating Expenses 46.1 46.6 -1.0% 39.7 16.0% 141.4 121.6 16.3%

Gross Income Financial Intermediation (w/o ALL) 46.0 2.4 n.c. 48.4 -5.1% 71.1 158.8 -55.2%

Income from Services Rendered 10.1 8.6 16.7% 7.7 31.6% 25.2 19.6 28.3%

Income from Banking Tariffs 0.2 0.2 -1.6% 0.2 -0.5% 0.5 0.5 0.7%

Other Net Operating Income * (1.4) (1.4) -3.5% 0.7 -290.3% (0.7) 5.8 -112.2%

B. Total Operating Income 54.9 9.8 n.c. 57.0 -3.7% 96.1 184.7 -48.0%

Efficiency Ratio (A/B) 84.0% 474.9% n.c. 69.7% 14.3 p.p. 147.2% 65.8% 81.3 p.p.

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

Net Profit

The operating income in the quarter was R$6,3 million, and after (i) the non-operating profit from the sale of

properties and non-operating assets of the R$367 thousand, (ii) taxes and contributions of the R$2.8 million, and

(iii) profit sharing of the R$1.9 million, resulted in a profit of R$2.0 million.

9/20

EARNING RELEASE 3

rd QUARTER 2013

Credit Portfolio

Expanded Credit Portfolio

In September 2013, the expanded credit portfolio, including the loans assigned to Banco Intercap, totaled R$3.4

billion, +3.9% in the quarter and +12.2% in 12 months.

The expanded credit portfolio of Banco BI&P totaled R$3.3 billion, up 0.9% from June 2013 and 8.9% in 12

months. The portfolio consists of loan and financing operations in Brazilian real and trade finance operations,

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

letters of credit), (ii) agribusiness bonds generated by the absorption of the operations of Serglobal Cereais (CPR

and CDA/WA); and (iii) private credit bonds (promissory notes and debentures). Items (ii) and (iii) are both

booked under Securities (TVM) as per Central Bank regulations.

Expanded Credit Portfolio by Product Group 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Loans & Financing in Real + Credits Assigned to Banco Intercap 1,803.1 1,765.7 2.1% 1,464.9 23.1%

(-) Credits assigned to Banco Intercap 81.9 0.0 n.c. 0.0 n.c.

Loans & Financing in Real 1,721.2 1,765.7 -2.5% 1,464.9 17.5%

Assignment of Receivables Originated by our Customers 186.5 250.3 -25.5% 509.5 -63.4%

Trade Finance (ACC/ACE/IMPFIN) 404.9 427.3 -5.3% 463.0 -12.6%

Guarantees Issued (LGs & L/Cs) 185.4 210.9 -12.1% 167.5 10.7%

Agro Bonds + Agro Bonds Assigned to Banco Intercap 701.4 477.9 46.8% 306.7 128.7%

(-) Agro Bonds Assigned to Banco Intercap 15.3 0.0 n.c. 0.0 n.c.

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 686.2 477.9 43.6% 306.7 123.7%

Private Credit Bonds (Securities: PNs & Debentures) 29.5 39.2 -24.8% 41.1 -28.3%

Other 44.4 57.4 -22.6% 38.1 16.5%

EXPANDED CREDIT PORTFOLIO 3,258.0 3,228.7 0.9% 2,990.9 8.9%

EXPANDED CREDIT PORT. + CREDIT ASSIGNMENTS TO INTERCAP 3,355.2 3,228.7 3.9% 2,990.9 12.2%

The Emerging Companies segment consists of companies

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

million, while the Corporate segment includes companies

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

billion. The Other segment basically consists of Consumer

Credit operations for Used Vehicles and financing of non-

operating assets.

Loans and financing in Brazilian real, which include bills discounted and also credits assigned to Banco Intercap,

increased 2.1% at the end of 3Q13 and 27.1% in twelve months. Receivables originated by our customers

assigned to Banco Bi&P represented 5.7% of the expanded credit portfolio in the quarter, down 25.5% in 3Q13

and 63.4% in 12 months, as a result of the reallocation of the portfolio to assets with higher returns.

At the end of 3Q13, Trade Finance operations, which accounted for 12.4% of the expanded credit portfolio,

decreased 5.3% in the quarter and 12.6% from September 2012, mainly due to the reduction in client demand.

These operations consist of import and export financing, which corresponded to 28.1% and 71.9%, respectively.

Guarantees issued (sureties, guarantees and import letters of credit), which correspond to 5.7% of the expanded

credit portfolio, decreased 12.1% from 2Q13 but increased 10.7% in 12 months.

As a result of the joint ventures and alliances built over the past two years, the portfolio of agribusiness and

private credit bonds, classified under ‘held for sale’ marketable securities in the balance sheet in accordance with

42% 39% 47% 48% 48.7%

56% 59%51% 51% 50.5%

2% 2% 1% 1% 0.8%

3Q12 4Q12 1Q13 2Q13 3Q13

Expanded Credit Portfolio

Emerging Companies Corporate Other

10/20

EARNING RELEASE 3

rd QUARTER 2013

Central Bank regulations due to its tradability, has been growing consistently in recent quarters, totaling R$605.6

million in 3Q13, up 44.4% in the quarter and 125.7% in 12 months. Including the credits assigned to Banco

Intercap, it totaled R$701.4 million, up 46.8% in 3Q13 and 128.7% in 12 months.

Agro Bonds Portfolio 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Booked under Securities 576.0 390.8 47.4% 233.9 146.3%

Warrants - CDA/WA 11.5 7.3 57.1% 7.7 48.0%

Agro Product Certificate - CPR 564.6 383.5 47.2% 226.1 149.7%

Booked under Credit Portfolio - Loans & Financing 110.1 87.1 26.4% 72.9 51.1%

Agro Credit Rights Certificate - CDCA 110.1 87.1 26.4% 72.9 51.1%

Agricultural Bonds 686.2 477.9 43.6% 306.7 123.7%

AGRO BONDS PORTFOLIO 701.4 477.9 46.8% 306.7 128.7%

Our Expanded Credit Portfolio breakdown is as follows:

By Economic Activity By Region By Customer Segment

By Economic Sector By Product

Industry50%

Commerce26%

Other Services

22%

Individuals2%

Financial Institutions

0%

North2%

Northeast4%

Midwest19%

South20%

Southeast55%

Corporate50%

Emerging Companies

49%

Other1%

12.8%1.8%2.3%2.4%2.6%2.6%2.7%3.4%3.7%3.7%4.3%4.4%

5.5%7.5%7.9%

8.7%23.6%

Other industries*

Financial Instituitions

Metal Industry

Education

Raw Materials

Chemical & Pharmaceutical

Textile, apparel & Leather

Power Generation & Distribution

Transportation & Logistics

Commerce - Retail & Wholesale

Livestock

Infrastructure

Automotive

Oil, Biofuel & Sugar

Food & Beverage

Construction

Agriculture

Loans & Discounts

49%

BNDES Onlending

10%

Trade Finance

12%

Agro Bonds21% Guarantees

Issued6%

Debentures1%

Other1%

11/20

EARNING RELEASE 3

rd QUARTER 2013

Credit Portfolio

The ‘classic’ credit portfolio, which does not include guarantees issued and loans classified under ‘held for sale’

marketable securities and includes loans assigned to Banco Intercap, totaled R$2.5 million, down 1.5% in the

quarter and unchanged in the 12-month period.

The classic credit portfolio of Banco BI&P closed 3Q13 at R$2.5 billion, down 4.7% from the previous quarter, of

which R$2.1 billion were loans in Brazilian real and R$404.9 million pertained to trade finance operations.

At the end of the quarter, the Emerging companies segment accounted for 47.4% (49.1% in 2Q13) of the classic

portfolio and the Corporate segment accounted for 51.5% (49.6% in 2Q13). Loans classified as Other, which

include the balance of the direct consumer credit - used vehicles (CDC) portfolio, portfolios acquired from other

banks and financing of non-operating assets, correspond to 1.1% of the total portfolio (1.2% in 2Q13).

Credit Portfolio By Client Segment 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Emerging Companies 1,168.4 1,271.4 -8.1% 1,127.7 3.6%

Local Currency - Real 960.0 1,046.5 -8.3% 880.2 9.1%

Loans & Discount of Receivables + Credits Assigned to Intercap 866.5 880.8 -1.6% 712.3 21.6%


Loans & Discounted Receivables 825.0 880.8 -6.3% 712.3 15.8%


Financing 0.0 0.0 n.c. 0.0 n.c.

BNDES / FINAME 133.8 159.3 -16.0% 136.6 -2.0%

Foreign Currency 208.4 224.9 -7.3% 247.5 -15.8%

Corporate 1,271.0 1,284.8 -1.1% 1,373.6 -7.5%

Local Currency - Real 1,074.6 1,082.3 -0.7% 1,158.2 -7.2%

Loans & Discount of Receivables + Credits Assigned to Intercap 739.8 650.5 13.7% 515.6 43.5%


Loans & Discounted Receivables 699.3 650.5 7.5% 515.6 35.6%


BNDES / FINAME 190.0 187.9 1.1% 164.5 15.5%

Foreign Currency 196.5 202.4 -3.0% 215.5 -8.8%

Other 27.6 31.7 -12.9% 47.0 -41.3%

Consumer Credit – used vehicles 0.0 0.1 -70.5% 1.1 -96.1%

Acquired Loans & Financing 2.4 3.6 -33.1% 8.9 -72.5%

Non-Operating Asset Sales Financing 25.1 27.9 -9.9% 37.0 -32.2%

CREDIT PORTFOLIO 2,467.0 2,587.8 -4.7% 2,548.4 -3.2%

CREDIT PORTFOLIO WITH CREDIT ASSIGNMENTS TO INTERCAP 2,549.0 2,587.8 -1.5% 2,548.4 0.0%

By Collateral By Customer Concentration By Maturity

Aval PN49%

Receivables25%

Pledge / Lien7%

Property10%

Monitored Pledge

5%Vehicles

2%Securities2%

Top 1015%

11 - 6032%

61 - 180 27%

Other26%

Up 90 days32%

91 to 180 days17%

181 to 360 days18%

+360 days33%

12/20

EARNING RELEASE 3

rd QUARTER 2013

Quality of Credit Portfolio

Rating AA A B C D E F G H Additional

ALL TOTAL

ALL/ Credit

Portfolio %

Required Provision % 0% 0.5% 1% 3% 10% 30% 50% 70% 100%

3Q

13

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

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

2Q

13

Outstanding Loans 65.7 1,078.0 971.5 192.8 109.9 17.4 30.0 4.0 118.6 - 2,587.8 8.3%


3Q

12

Outstanding Loans 158.2 948.3 892.4 349.2 45.8 103.5 12.4 3.9 34.8 - 2,548.4 4.1%


We remain focused on lending to clients with better credit standing, which is evident from the high percentage of

loans rated in the low risk categories (between AA and B), which reached 99.9% in 3Q13, compared to 98.2% in

2Q13. The balance of loans rated between AA and B ended the quarter at 79.7% of total loans (compared to

81.7% and 78.4% respectively, at the end of 2Q13 and 3Q12), as the following chart shows:

Of the R$317.7 million classified between D and H (R$279.8 million in June 2013 and R$200.4 million in

September 2012), R$247.6 million correspond to loans whose payments are regular, equivalent to 78% of the

total (compared to 77% in June 2013 and 61% in September 2012). The remaining 22% correspond to overdue

loans and are detailed below:

Default by segment 3Q13 2Q13 > 60 days > 90 days

3Q13 2Q13 3Q13 2Q13

Credit Portfolio NPL % NPL % NPL % NPL %

Emerging Companies 1,168.4 1,271.4 51.6 4.4% 51.3 4.0% 46.6 4.0% 40.6 3.2%

Corporate 1,271.0 1,284.8 12.9 1.0% 8.4 0.7% 11.1 0.9% 5.9 0.5%

Other 27.6 31.7 7.2 26.1% 7.2 22.8% 7.2 26.1% 7.2 22.8%

TOTAL 2,467.0 2,587.8 71.7 2.9% 66.9 2.6% 64.9 2.6% 53.8 2.1%

Allowance for Loan Losses (ALL) 210.4 214.4

ALL / NPL - 293.6% 320.3% 324.0% 398.7%

ALL / Loan Portfolio 8.5% 8.3% - - - -

The default rate on loans overdue by more than 60 days (NPL 60 days) increased 0.3 p.p. in the quarter but

decreased 0.2 p.p. from 3Q12. Loans overdue by more than 90 days (NPL 90 days) increased 0.5 p.p. in the

quarter and 0.7 p.p. in relation to 3Q12. The increase in NPL 90 days in both the quarter and the 12-month

period is mainly due to the arrears of a few loans granted before April 2011.

13/20

EARNING RELEASE 3

rd QUARTER 2013

NPL 60 days/ Credit Portfolio Ratio 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

NPL 60 days/ Credit Portfolio 2.9% 2.6% 0.3 p.p. 3.1% -0.1 p.p.

Clients upon the new credit policy 14.0% 10.6% 3.4 p.p. 7.5% 0.9 p.p.

Clients upon the previous credit policy (acquired before April 2011) 0.6% 0.5% 0.1 p.p. 1.1% -0.4 p.p.

In 3Q13, the credit portfolio coverage index remained high at around 8.5% (8.3% in 2Q13), due to the balance

allowance for loan losses of R$210.4 million, as against R$214.4 million in 2Q13. This balance allowance provided

coverage of 2.9x of the NPL 60 balance and 3.2x of the NPL 90 balance at the end of September 2013.

The managerial expense with allowance for loan losses (ALL) corresponded to 0.75% (annualized) of the

expanded credit portfolio, in line with the conservative credit policy adopted by the Bank. There were no fresh

provisions for the balance of loans granted prior to April 2011 and we still have an additional allowance (not

allocated) of R$30.6 million.

14/20

EARNING RELEASE 3

rd QUARTER 2013

Funding

Funding volume totaled R$3.1 billion at the end of September 2013, down 1.9% from June 2013 and up 5.0%

from September 2012. Bank Deposit Certificates (CDB) and Time Deposits with Special Guarantee (DPGE I),

booked under the item ‘time deposits’, remain the principal funding sources, jointly accounting for 53.8% of total

funding.

Funding through LCAs, which are backed by agribusiness operations, a segment in which Banco BI&P specializes,

continues to increase its share of total funding, accounting for 18.8% of total funding, compared to 15.6% in

2Q13. Real estate letters of credit (LCI) and bank notes (LF) too have been increasing their share, jointly

accounting for 3.3% of total funding in 3Q13, compared to 2.4% in 2Q13. Funding in foreign currency is

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

Total Funding 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Total Deposits 2,391.2 2,427.8 -1.5% 2,194.5 9.0%

Time Deposits 719.4 822.7 -12.6% 664.6 8.2%

Insured Time Deposits (DPGE) 939.9 944.8 -0.5% 1,019.0 -7.8%

Agro Notes (LCA) 578.1 489.2 18.2% 328.8 75.8%

Real Estate Notes (LCI) 65.8 40.2 63.8% 5.3 n.c.

Bank Notes (LF) 34.8 34.0 2.4% 36.4 -4.5%

Interbank Deposits 15.7 58.2 -73.1% 92.1 -83.0%

Demand Deposits and Other 37.6 38.8 -3.2% 48.3 -22.3%

Domestic Onlending 325.4 348.6 -6.6% 309.3 5.2%

Foreign Borrowings 365.3 366.0 -0.2% 432.0 -15.4%

Trade Finance 332.1 366.0 -9.3% 381.1 -12.9%

Other Foreign Borrowings 33.2 0.0 n.c. 50.8 -34.7%

TOTAL 3,081.9 3,142.3 -1.9% 2,935.8 5.0%

By Type By Investor By Maturity

The average term of deposits stood at 757 days from issuance (740 days in June 2013) and 324 days from

maturity (353 days in June 2013).

Average Term in days

Type of Deposit from issuance to maturity 1

Interbank 344 161

Time Deposits 431 272

Time Deposits with Special Guarantee (DPGE) 1,389 499

Agro Notes (LCA) 184 122

Real Estate Letters of Credit (LCI) 205 133

Bank Notes (LF) 891 421

Portfolio of Deposits 2 757 324

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

Time Deposit23%

Insured Time Dep.

(DPGE)30%

Agro Bonds19%

Bank & Real Estate

Notes3%

BNDES Onlendings

11%

Trade Finance

11%

Interbank1%

Demand1%

Institutional Investors

44%

Corporates11%

Individuals7%

National Banks5%

Brokers8%

Other2%

BNDES11%

Foreign Banks12%

+360 days33%

Up 90 days31%91 to 180

days19%

181 to 360 days16%

demand1%

15/20

EARNING RELEASE 3

rd QUARTER 2013

Free Cash

On September 30, 2013, the free cash position totaled R$657.9 million,

equivalent to 27.5% of total deposits and 1.1x shareholders’ equity. The

calculation considers cash, short-term interbank investments and securities

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

marketable securities, comprising rural product certificates (CPRs),

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

promissory notes (NPs).

Capital Adequacy

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

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

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

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

In a simulation, if the acquisition of Banco Intercap was concluded at the close of 3T13, our Basel Index at the end

of September 2013 would be 15.4%, 0.9 pp higher than the current Basel index of Banco BI&P of 14,5%.

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

Basel Index 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12

Total Capital 554.9 554.3 0.1% 585.2 -5.2%

Tier I 555.8 555.3 0.1% 586.2 -5.2%

Tier II 1.3 1.3 -0.7% 1.4 -3.5%

Deductions (2.3) (2.3) 0.0% (2.4) -4.8%

Required Capital 421.6 419.1 0.6% 407.0 3.6%

Credit Risk allocation 362.6 353.3 2.7% 350.7 3.4%

Market Risk Allocation 42.5 47.9 -11.4% 36.6 16.0%

Operating Risk Allocation 16.5 17.9 -7.9% 19.7 -16.3%

Excess over Required Capital 133.3 135.2 -1.4% 178.2 -25.2%

Basel Index 14.5% 14.6% -0.1 p.p. 15.8% -1.3 p.p.

Risk Ratings

Agency Classification Observation Last

Report Financial

Data

Standard & Poor’s BB / Negative / B

brA+ / Negative / brA-1 Global Scale

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

Moody's Ba3/ Negative / Not Prime

A2.br/ Negative / BR-2 Global Scale

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

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

RiskBank 9.80

Ranking: 51 RiskBank Index

Low Risk Short Term October 11, 2013 June 30, 2013

629 661 658

3Q12 2Q13 3Q13

R$ m

illio

n

16/20

EARNING RELEASE 3

rd QUARTER 2013

Capital Market

Total Shares and Free Float

Number of shares as of September 30, 2013

Type Corporate

Capital Controlling

Group Management Treasury Free Float %

Common 44,410,897 22,166,552 57,876 - 22,186,469 50.0%

Preferred 31,021,907 399,889 279,489 734,515 29,608,014 95.4%

TOTAL 75,432,804 22,566,441 337,365 734,515 51,794,483 68.7%

Share Buyback Program

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

individuals who provide services to the Company or its subsidiaries, had the following balances on September 30,

2013:

Quantity Stock Option Plan

Date of Approval

Grace Period Term for Exercise

Granted Exercised Extinct Not Exercised

I 26.03.2008 Three years Five years 2,039,944 37,938 657,662 1,544,344

II 29.04.2011 Three years Five years 1,840,584 - 367,243 1,473,341

III 29.04.2011 Five years Seven years 1,850,786 - - 1,850,786

IV 24.04.2012 Up to five years Five years 605,541 - 35,044 570,498

6,336,855 37,938 859,949 5,438,969

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

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

Remuneration to Shareholder

During 9M13 the Bank neither provisioned nor paid interest on equity, calculated based on the Long-Term

Interest Rate (TJLP) and towards the minimum dividend for fiscal year 2013. The Board of Directors will, by the

end of the year, study the possibility of early payment of interest on equity after considering the results and the

tax efficiency of such payment.

Share Performance

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

closed September 2013 at R$6.30, for market cap of R$470.6 million, including the shares existing on September

30, 2013 and excluding treasury stock. The price of IDVL4 shares decreased 9.9% in the quarter and -4.4% in

the 12 months ended September 2013. In comparison, the Bovespa Index (Ibovespa) dropped 10.3% in the

quarter and -11.6% in relation to 3Q12. At the end of 3Q13, the price/book value (P/BV) was 0.82.

17/20

EARNING RELEASE 3

rd QUARTER 2013

Share Price evolution in the last 12 months

Liquidity and Trading Volume

The preferred shares of BI&P (IDVL4) were traded in 96.9% of the sessions in the quarter and 94.7% of the 246

sessions in the past 12 months. The volume traded on the spot market in the quarter was R$6.4 million,

involving 0.9 million IDVL4 shares in 587 trades. In the 12 months ended in September 2013, the volume traded

on the spot market was R$25.6 million, involving around 2.2 million preferred shares in 3,664 trades.

Shareholder Base

Position as of September 30,2013

# Type of Shareholder IDVL3 % IDVL4 % TOTAL %

5 Controlling Group 22,166,552 49.9% 399,889 1.3% 22,566,441 29.9%

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

- Treasury - 0.0% 734,515,00 2.4% 734,515 1.0%

22 National Investors 1,201,090 2.7% 8,648,620 27.9% 9,849,710 13.1%

11 Foreign Investors 10,681,337 24.1% 17,815,852 57.4% 28,497,189 37.8%

6 Corporate - 0.0% 6,712 0.0% 6,712 0.0%

274 Individuals 10,304,042 23.2% 3,136,830 10.1% 13,440,872 17.8%

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

60

70

80

90

100

110

120

130

IBOVESPA IDVL4 adjusted for earnigns IDVL4

18/20

EARNING RELEASE 3

rd QUARTER 2013

Balance Sheet

Consolidated R$ thousand

Assets 9/30/2012 6/30/2013 9/30/2013

Current 3,433,129 3,128,533 3,131,671

Cash 6,324 26,552 36,653

Short-term interbank investments 941,951 270,732 143,122

Open market investments 921,810 246,708 117,499

Interbank deposits 20,141 24,024 25,623

Securities and derivative financial instruments 568,460 1,011,301 1,236,149

Own portfolio 364,271 649,604 954,523

Subject to repurchase agreements 9,056 69,426 25,871

Linked to guarantees 172,429 160,716 210,730

Subject to the Central Bank - 89,784 -

Derivative financial instruments 22,704 41,771 45,025

Interbank accounts 2,680 3,201 2,545

Loans 1,366,002 1,359,621 1,269,980

Loans - private sector 1,384,176 1,408,066 1,342,186

Loans - public sector - - -

(-) Allowance for loan losses (18,174) (48,445) (72,206)

Other receivables 498,874 394,416 375,392

Credit guarantees honored - - 507

Foreign exchange portfolio 415,595 320,987 323,650

Income receivables 52 58 1,058

Negotiation and intermediation of securities 21,341 61,573 37,418

Sundry 66,379 16,753 22,611


Other assets 48,838 62,710 67,830

Other assets 48,911 56,946 59,227

(-) Provision for losses (2,757) - -

Prepaid expenses 2,684 5,764 8,603

Long term 852,124 985,743 951,854

Short-term interbank investments 6,824 - -

Marketable securities and derivative financial instruments 44,626 45,188 42,525

Own portfolio 41 43 31


Interbank Accounts 4,202 3,001 3,066

Loans 651,963 655,164 630,239

Loans - private sector 726,648 807,148 755,413

Loans - public sector - - -


Other receivables 144,171 251,685 248,551

Credit guarantees honored 778 - -

Trading and Intermediation of Securities 518 495 498

Sundry 148,986 260,163 251,246


Other rights 338 30,705 27,473

Permanent Assets 51,895 83,929 87,522

Investments 23,968 29,559 31,630

Subsidiaries and Affiliates 22,282 27,868 29,939

Other investments 1,842 1,847 1,847

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

Property and equipment 14,401 14,178 13,639

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

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

Other property and equipment 19,965 22,740 22,739

(-) Accumulated depreciation (9,408) (12,406) (12,944)

Intangible 13,526 40,192 42,253

Goodwill 2,391 24,585 25,030

Other intangible assets 13,100 18,664 20,945

(-) Accumulated amortization (1,965) (3,057) (3,722)

TOTAL ASSETS 4,337,148 4,198,205 4,171,047

19/20

EARNING RELEASE 3

rd QUARTER 2013


Liabilities 9/30/2012 6/30/2013 9/30/2013

Current 2,496,098 2,538,587 2,547,624

Deposits 808,109 1,021,586 959,086

Cash deposits 48,334 38,781 37,559

Interbank deposits 91,878 58,128 15,674

Time deposits 667,897 924,677 905,853

Other - - -

Funds obtained in the open market 597,214 176,141 107,500

Own portfolio 9,302 56,517 25,800

Third party portfolio 240,045 104,621 81,700

Unrestricted Portfolio 347,867 15,003 -

Funds from securities issued or accepted 341,511 550,198 645,621

Agribusiness Letters of Credit, Real State Notes & Bank Notes 341,511 550,198 645,621

Interbank accounts 185 556 391

Receipts and payment pending settlement 185 556 391

Interdepartamental accounts 8,312 9,892 11,811

Third party funds in transit 8,312 9,892 11,811

Borrowings 431,964 365,999 332,193

Foreign borrowings 431,964 365,999 332,193

Onlendings 128,029 131,247 122,375

BNDES 82,609 90,018 80,798

FINAME 45,420 41,229 41,577

Other liabilities 180,774 282,968 368,647

Collection and payment of taxes and similar charges 820 452 565

Foreign exchange portfolio 54,286 5,353 24,771

Taxes and social security contributions 2,864 13,201 15,920

Social and statutory liabilities 2,000 4,500 2,188

Negotiation and intermediation securities 95,942 133,055 219,743


Sundry 11,286 50,857 38,135

Long Term 1,252,501 1,089,265 1,046,932

Deposits 1,015,931 842,830 753,396

Interbank Deposits 195 32 -

Time deposits 1,015,736 842,798 753,396

Funds from securities issued or accepted 28,943 13,172 33,095

Agribusiness Letters of Credit, Real State Notes & Bank Notes 28,943 13,172 33,095

Loan obligations - - 33,072

Foreign loans - - 33,072

Onlending operations - Governmental Bureaus 181,267 217,312 203,037

Federal Treasure 8,733 7,435 6,956

BNDES 85,132 122,487 111,416

FINAME 86,985 87,186 84,461

Other Institutions 417 204 204

Other liabilities 26,360 15,951 24,332

Taxes and social security contributions 22,099 7,550 7,853

Derivative financial instrument 1,203 4,246 7,253

Sundry 3,058 4,155 9,226

Future results 990 795 2,035

Shareholders' Equity 587,559 569,558 574,456

Capital 572,396 661,812 662,384 Capital Reserve 12,331 19,866 22,223

Revaluation reserve 1,352 1,315 1,302

Profit reserve 7,339 - -

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

Asset valuation Adjustment - 31 (2)

Accumulated Profit / (Loss) - (108,455) (106,406)

Minority Interest - 848 814

TOTAL LIABILITIES 4,337,148 4,198,205 4,171,047

20/20

EARNING RELEASE 3

rd QUARTER 2013

Income Statement


3Q12 2Q13 3Q13 9M12 9M13

Income from Financial Intermediation 131,684 93,015 126,177 516,291 306,780

Loan operations 62,885 50,133 64,950 195,942 171,055

Income from securities 53,436 22,316 35,848 236,431 77,790

Income from derivative financial instruments 4,730 (7,780) 2,944 6,533 (2,876)

Income from foreign exchange transactions 10,633 28,346 22,435 77,385 60,811

Expenses from Financial Intermediaton 95,145 90,778 86,883 406,358 375,884

Money market funding 69,220 53,005 56,440 273,884 162,653

Loans, assignments and onlendings 14,043 37,628 23,237 83,597 72,496

Sales operations/transfer of financial assets - - 536 - 536

Allowance for loan losses 11,882 145 6,670 48,877 140,199

Gross Profit from Financial Instruments 36,539 2,237 39,294 109,933 (69,104)

Other Operating Income (Expense) (27,046) (36,041) (32,986) (85,123) (102,914)

Income from services rendered 7,656 8,636 10,077 19,610 25,164

Income from tariffs 185 187 184 539 543

Personnel expenses (21,441) (26,138) (24,091) (66,118) (76,602)

Other administrative expenses (13,042) (15,694) (17,171) (39,787) (46,236)

Taxes (2,252) (2,034) (2,945) (8,299) (8,579)

Result from affiliated companies 1,138 402 2,311 3,155 3,500

Other operating income 6,053 1,147 1,501 14,763 5,852

Other operating expense (5,343) (2,547) (2,852) (8,986) (6,556)

Operating Profit 9,493 (33,804) 6,308 24,810 (172,018)

Non-Operating Profit (1,230) 752 367 501 450

Earnings before taxes ad profit-sharing 8,263 (33,052) 6,675 25,311 (171,568)

Income tax and social contribution (2,160) 15,109 (2,805) (7,356) 71,493

Income tax (1,970) 1,074 (1,400) (8,078) 6,306

Social contribution (1,170) 457 (683) (4,782) 3,831

Deferred fiscal assets 980 13,578 (722) 5,504 61,356

Statutory Contributions & Profit Sharing (2,972) (2,694) (1,868) (7,361) (9,993)

Net Profit for the Period 3,131 (20,637) 2,002 10,594 (110,068)

BI&P- Indusval- Earnings Release 3Q13

Economy & Finance

Transcript of BI&P- Indusval- Earnings Release 3Q13