4Q11 Results Presentation

Disclaimer

This presentation may contain references and statements re presenting futureexpectations, plans of growth and future strategies of BI&P .

These references and statements are based on the Bank’s assu mptions andanalysis and reflect the management’s beliefs, according to their experience, toanalysis and reflect the management’s beliefs, according to their experience, tothe economic environment and to predictable market conditi ons.

As there may be various factors out of the Bank’s control, the re may besignificant differences between the real results and the ex pectations anddeclarations herewith eventually anticipated. Those risk s and uncertaintiesinclude, but are not limited to our ability to perceive the di mension of theBrazilian and global economic aspect, banking development , financial marketconditions, competitive, government and technological aspects that mayconditions, competitive, government and technological aspects that mayinfluence both the operations of BI&P as the market and its pr oducts.

Therefore, we recommend the reading of the documents and fin ancialstatements available at the CVM website (www.cvm.gov.br) a nd at our InvestorRelations page in the internet (www.indusval.com.br/ir) a nd the making of yourown appraisal.

Highlights

� Expanded Loan Portfolio grew around 13% in 4Q11 and 31% in 2011:

‒ Corporate: 28% of Loan Portfolio, +47% in the quarter and +150% in the year;

‒ Middle Market: The volume remained steady, despite the significant exit oflower quality loans. After finishing the exit of non-target credits, Middle Marketlower quality loans. After finishing the exit of non-target credits, Middle Marketportfolio will resume growth, in line with the strategy of loan portfolio balance of45% of Corporate and 55% and Middle Market loans until the end of 2012.

� Latest funding at lower cost due to rating improvement, diversification of fundingproduct mix and expansion of investors base.

� Net Profit increased by 41% in the quarter, accompanied by a slight increase in netmargin and recovery in profitability ratios.

� Migration to Level 2 Corporate Governance Segment of BM&FBovespa in final

1

� Migration to Level 2 Corporate Governance Segment of BM&FBovespa in finalphase.

� In 4Q11 we finished most of the workforce changes and the introduction of newproducts, systems and controls defined in the strategic plan. Great emphasis on theconstruction of stronger teams and the building of a meritocratic culture focused onexcellence and results.

2,534

Evolution of Credit PortfolioGrowth with quality assets

1,941 1,9942,109

2,248

2,534

mill

ion

4Q10 1Q11 2Q11 3Q11 4Q11

Loans in Reais Trade Finance Guarantees

Agricultural Notes (CPRs) Promissory Notes (NPs)

2

R$

mill

ion

With Multi-Product Offering23 created or redesigned financial products

3

Credit PortfolioBreakdown by Product Group

Agro and Promissory � Loans and Discount Operations in

Loans & Discounts in Reais

62%Trade

Finance

BNDES8%

Other1%

Guarantees Issued

6%

Promissory Notes

(CPR/PNs)5%

� Loans and Discount Operations inReais share remained steady, withsignificant growth in the Corporateportfolio.

� Trade Finance portfolio of US$265million grew 3,8% in 4Q11, despitethe foreign lines contraction.

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62%Finance18%

� Agricultural Notes (CPRs) portfolioincreased from R$40 million in 3Q11to R$114 million in 4Q11.

� Definition:

• Middle Market: companies with annual

Credit PortfolioMaintenance of Corporate and Middle Market balance until the end of 2012

Corporate28%

Other3%

revenues from R$40 million to R$400 million;

• Corporate: companies with annual revenuesabove R$400 million up to R$2 billion.

� Corporate clients already account for 28% of loanportfolio with 47% volume growth in the quarterand 150% in the year.

� Middle Market portfolio volume maintained,despite substantial exit of lower quality loans.

Middle Market

69%

28%

Corporate21%

Other3%

4Q11

despite substantial exit of lower quality loans.

� The previously disclosed strategy of maintainingthe Corporate / Middle Market credit portfolio mixat 45% / 55% until the end of 2012 will continue.

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Middle Market

76%

21%

3Q11

Credit PortfolioExposure by client and terms of transactions

10 largest

17%Other24%

Clie

nt

Con

cent

ratio

n

� 60 largest borrowers account for 49%of Loan Portfolio, from 51% in 3Q11and 52% in 4Q10.

� Average exposure by client:

• Middle Market = R$ 2.7 million

• Corporate = R$ 7.2 million

11 - 6032%61 - 160

27%

up 90

+360 days26%

Clie

nt

Con

cent

ratio

n

6

� 73% of Loan Portfolio to mature up to360 days.

up 90 days40%

91 to 180 days19%

181 to 360 days

15%

26%

Mat

urity

Credit PortfolioSignificant presence of Agribusiness and Food related activities

17%

2%2%

2%8%

Agribusiness

Food & Beverage

15%

3%

3%

3%

3%

3%

2%2%

Civil Construction

Automotive

Textile, Apparel and Leather

Power Generation & Distribution

Pulp & Paper

Chemical & Pharmaceutical

Financial Services

Transportation & Logistics

Metal industry

Education

7

14%

6%5%

4%

4%

4% Oil & Biofuel

Retail & Wholesale

Individuals

Advertising and Publishing

Financial Institutions

Other Industries

Credit Portfolio Quality

4Q11

86.9%

89.7%

4Q10

3Q11

AA A B C D - H

85.8%

� Loans rated between D and H include:

– R$ 119 million in normal payment performance = 5.3% of Loan Portfolio;

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– R$ 119 million in normal payment performance = 5.3% of Loan Portfolio;

– R$ 114 million overdue more than 60 days = 5.0% of Loan Portfolio.

� Default levels still related to transactions with medium-sized companies booked in previousyears.

� Decrease of 1.3 p.p. in the 60 days default rate compared to 3Q11.

� Allowance for Loan Losses cover 133% of loans overdue +90 days.

FundingEnsures liquidity and supports the growth of credit portfolio

2,0312,247 2,230

2,4202,533

R$

mill

ion

4Q10 1Q11 2Q11 3Q11 4Q11

in Reais in Foreign Currency

R$

mill

ion

9

FundingDiversification of sources to reduce costs

Time Deposits (CDBs)

Foreign Borrowings

18%

Onlendings9%

� Local Funding accounts for 82% of total funding.

�(CDBs)

29%

Insured Time Deposits (DPGE)

30%

Agro & Financial

Notes (LCA/LF)

9%

Demand Deposits

2%

Interbank Deposits

3%

18%� There was a slight reduction in the cost of new local

funding, due to the:− improvement of risk perception among

investors, as evident from the three-notch raisein the ratings assigned by Standard & Poor’s(BB/stable/brA+);

− diversification of the product mix (LCAs);− strong expansion of the investor base.

� Trade Finance funding accounts for 90% of foreignborrowings.Foreign Funding – US$ million

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borrowings.

� Despite the foreign funding remained contracted,our new funding in foreign currency totaled US$247million in Dec/2011 from US$196 million inDec/2010, up 26.6% in the year.

195

247

4Q10 4Q11

Foreign Funding – US$ million

Liquidity and Asset & Liability Management

Free Cash Asset & Liability Management

733

1,027923 914 887

4Q10 1Q11 2Q11 3Q11 4Q11

R$

mill

ion

959

415335

620642

474

253

1,087

90 days 180 days 360 days +360 days

Assets Liabilities

R$

mill

ion

11

4Q10 1Q11 2Q11 3Q11 4Q11 90 days 180 days 360 days +360 days

Free Cash equivalent to 48% of Deposits and

154% of Shareholder’s Equity.

ProfitabilityNet Interest Margin

6.5%

7.9%

5.9%5.2%

6.3% 6.6%

NIM NIM(a)

4.6%3.7%

4.6% 4.8%5.9%

5.2%

4Q10 1Q11 2Q11 3Q11 4Q11

Net Interest Margin 4Q11 3Q11 4Q11/3Q11 4Q10 4Q11/4Q10 2011 2010 2011/2010

A. Result from Financial Int. before ALL 49.3 45.0 9.5% 47.6 3.6% 170.6 190.2 -10.3%

B. Average Interest bearing Assets 4,205.8 3,971.7 5.9% 3,036,4 38.5% 3,961.2 2,869.3 38.1%

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B. Average Interest bearing Assets 4,205.8 3,971.7 5.9% 3,036,4 38.5% 3,961.2 2,869.3 38.1%

Adjustment for non-remunerated average Assets1 (1,139.7) (1,058.9) 7.6% (561.5) 103.0% (1,071.3) (546.7) 96.0%

B.a Adjusted Average Interest bearing Assets 3,066.1 2,912.8 5.3% 2,474.9 23.9% 2,889.9 2,322.6 24.4%

Net Interest Margin (NIM) (A/B) 4.8% 4.6% 0.2 p.p. 6.4% -1.6 p.p. 4.2% 13.7% -9.5 p.p.

Adusted Net Interest Margin (NIMa) (A/Ba) 6.6% 6.3% 0.3 p.p. 7.9% -1.3 p.p. 5.7% 864% -2.7 p.p.

1 Repos with amounts, maturities and rates equivalent both in assets and liabilities.

Efficiency Ratio

79% 79%

71%

78%73% 74%

� Standardized Efficiency Ratio includes management adjustments in order to:

– eliminate non-recurring revenues and expenses related to the corporate and

65%

71%

61%

67%63%

4Q10 1Q11 2Q11 3Q11 4Q11

Efficiency Ratio Standardized Efficiency Ratio

– eliminate non-recurring revenues and expenses related to the corporate andorganizational restructuring;

– standardize 4Q11 events related to the collective bargaining agreement paid in thequarter retroactively to September and the Executive Officers’ variable compensationnot provisioned during the year; and

– exclude sales revenues and costs of agricultural commodities from the activity of theacquired subsidiary of Sertrading to determine the efficiency ratio of the financialactivity.

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Human Resources

� Increase in headcount, from 385 employees in 3Q11 to 421 professionals in 4T11,including:

– Hiring of 10 trainees;– Hiring of 10 trainees;

– Hiring of 10 former interns.

� No significant increase of headcount in 2012 is expected.

� Focus on renovating and training the teams.

� Leadership training, personnel management and best practices in human resources.

� 360º Performance Evaluation with forced curve in order to identify and reward thebest performances.best performances.

� 3rd Trainee Program: 3,500 candidates, from which 10 trainees were hired.

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Profitability

� Net Profit increased 40.7% in 4Q11 due tothe loan portfolio growth, the local fundingcost reduction and the credit recoveryobserved in the quarter.5,9 5,1 7,3

10,3

Net Profit - R$ million

� 2011 result was mainly affected by theincrease in allowance for loan losses, withexpense of R$101.6 million in 1Q11.

4Q10 1Q11 2Q11 3Q11 4Q11

0,71,0

Return on Average Assets (ROAA) - %

5,6 5,2

7,3

Return on Average Equity (ROAE) - %

15

0,70,5

0,71,0

4Q10 1Q11 2Q11 3Q11 4Q11

5,6

3,65,2

4Q10 1Q11 2Q11 3Q11 4Q11

Capital Structure

426

564 567 578 577

Shareholder’s Equity – R$ million

4,6

3,5 3,7 3,94,4

Leverage

Credit Portfolio / Shareholder’s Equity

4Q10 1Q11 2Q11 3Q11 4Q11

23.7%

Basel Index (Tier I)

3,5

4Q10 1Q11 2Q11 3Q11 4Q11

� High capitalization index.

17.6%

23.7%21.6% 21.1%

18.2%

4Q10 1Q11 2Q11 3Q11 4Q11

� Low leverage allows healthy portfolio growth.

� Discipline in monitoring the strategy and thebusiness goals for improved efficiency,margins and profitability.

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Capital Distribution and Shareholder Remuneration

Controlling Group

34%

Individuals20%

2008 2009 2010 2011

Management1%

Treasury1%

Institutional Investors

14%Foreign Investors

30%Position as of 12.31.2011

2008 2009 2010 2011

Outstanding Shares 1 43,000,001 42,048,101 40,466,187 62,358,840

IOE gross amount (R$ million) 25.5 27.0 25.1 27.8

IOE gross amount per Share (R$) 0.59 0.64 0.61 0.53

Price to Book Value per Share 0.38 0.81 0.75 0.73

Market Value (R$ million) 171.6 348.6 321.7 420.91 Issued Shares - Treasury Shares

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Ratings

Agency Classification Last Report

Standard & PoorsGlobal Scale: BB/ Stable/ B

Local Scale: brA+/ Stable/ brA-1Dec. 2011

Moody’s Global: Ba3/ Stable/ Not Prime

Local Scale: A2.br/ Stable/ BR-2Nov. 2011

FitchRatings Local Scale: BBB/ Stable/ F3 Dec. 2011

Index: 10.08RiskBank

Index: 10.08

Low Risk to Short TermJan. 2012

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