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2Q16 Institutional
Presentation
2/39 Investor Relations | 2Q16 |
Profile and History
Pine
History
Business Strategy
Competitive Landscape
Focus Always on the Client
Corporate Credit
FICC
Pine Investmentos
Strategic Partnership
Corporate Governance
Organizational Structure
Corporate Governance
Committees
Social Investment and Responsibility
Economic Overview
Macroeconomic
Credit Growth
Expectations
Highlights and Results
Summary
3/39 Investor Relations | 2Q16 |
Profile and History
4/39 Investor Relations | 2Q16 |
Pine
Specialized in providing financial solutions for corporate clients…
Credit Portfolio by Annual Client Revenues Customer Profile
Bank Profile
Focused on establishing long-term relationships
Fast response | Specialized services
Customized products | Product diversity
R$ 6,271 million in Loan Portfolio
R$ 1,165 million in Shareholders’ Equity
Long-term National Rating at AA+ by Fitch
Business is structured along three primary business lines:
Corporate Credit: credit and financing products
FICC: instruments for hedging and risk
management
Pine Investimentos: Capital Markets, Financial
Advisory, Project & Structured Finance and
Research
Large Corporate (> R$ 2.000 millions)
Corporate (R$ 500 - R$ 2.000 millions)
Companies (R$ 50 - R$ 500 millions)
Retail (PFs e small companies)
Balance sheets audited by third parties, corporate governance,
well defined hedging policies, and the lower risk profile Over R$2 billion35%
R$500 million to R$2 billion
33%
Up to R$500 million
32%
5/39 Investor Relations | 2Q16 |
...with extensive knowledge of Brazil’s corporate credit cycle.
History
1997
Noberto Pinheiro sell
his stake in BMC and
found Pine
1939
Pinheiro Family
founds
Banco Central do
Nordeste
1975
Noberto Pinheiro
becomes one of
BMC’s controlling
shareholders
Devaluati-
on of the
real
Nasdaq Sept. 11 Brazilian
Elections
(Lula)
Subprime Russian
Crisis
European
Community
End of 2007
Focus on expanding the Corporate Banking franchise
Discontinuation of the payroll-deductible loan business
May, 2007
Creation of Pine Investimentos products line and
opening of the Cayman branch
2005
Noberto Pinheiro becomes Pine’s controller
October, 2007
Beginning of the FICC Business
October, 2011 Subscription of Pine’s capital by DEG
August, 2012
Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management
2014
Portfolio deleveraging strategy due to an adverse scenario
March, 2007
IPO
May, 2016
19 years
155 184 222 341 521 620 755 663 761 1,214
2,854 3,105
4,192
5,763
6,9637,911
9,920 9,826
6,9336,271
1862
121 126 140 136 152 171209
335
801827 825
867
1,015
1,220
1,272 1,256
1,163 1.165
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Jun-1
6
Corporate Credit Portfolio (R$ Million)
Shareholders' Equity (R$ Million)
6/39 Investor Relations | 2Q16 |
Business Strategy
7/39 Investor Relations | 2Q16 |
Competitive Landscape
Pine serves a niche market of companies with few options for banks.
100% focused on providing complete service
to companies, offering customized products
100% Corporate
Large Multi-Services banks
Market
Consolidation of the banking sector has decreased
the supply of credit lines and financial instruments
for corporate
Foreign banks are in a deleveraging process
PINE
Full service Bank – Credit, Hedging, and Investment
Bank products – with room for growth
~15 clients per officer
Competitive Advantages:
Focus
Fast response: Strong relationship with
clients, with the credit committee meeting
once a week ensures rapid return to customer
needs
Specialized services
Tailor-made solutions
Product diversity
Foreign and
Investment Banks
SME & Retail
Corporate e SME
Retail
8/39 Investor Relations | 2Q16 |
Focus Always on the Client
Products tailored to meet the needs of each individual client.
In addition to the
headquarters located in the
city of São Paulo, Pine has 6
branches throughout Brazil , in
the States of Mato
Grosso, Paraná,
Pernambuco, Rio de Janeiro,
Rio Grande do Sul, and
São Paulo. The origination
network also counts with a
Cayman Branch, especially for
Trade Finance transactions.
9/39 Investor Relations | 2Q16 |
Corporate Credit
Actions Credit Committee
Strong track record and solid credit origination and approval process.
Credit Approval: Electronic Process
Origination
Officers
Credit origination
Credit analysis, visit to
clients, data updates,
interaction with internal
research team
Credit Analysts
Regional Heads of
Origination and
Credit Analysis
Presentation to the Credit
Committee
Directors and
Analysts of Credit
Centralized and
unanimous decision
making process
CREDIT
COMMITTEE
Meets once a week – reviewing on ~ 20 proposals
Minimum quorum: 4 members - attendance of CEO or
Chairman is mandatory
Committee Members:
CEO
Chief Financial Officer
Chief Administrative Officer
Credit Director
Corporate and Investment Banking Director
Superior Committee Members:
Two members of the Board
Participants:
FICC Director
Credit Analysts Team
Other members of the Corporate Banking origination
team
Personalized and agile service, working closely with clients and
keeping a low client to account officer ratio: each officer
handles ~15 economic groups
Geographic coverage of clients, providing the bank with local
and extremely up-to-date credit intelligence and information
Established long term relationships with more than 500
economic groups
Pine has approximately 20 professionals in the credit analysis
area, assuring that analysis is fundamentally driven and based
on industry-specific intelligence
Efficient loan and collateral processes, documentation, and
controls, which has resulted in a low NPL track record
Discussion on sizing,
collateral, structure etc.
Superior
Committee
Approval
Tickets over R$ 15 MM
10/39 Investor Relations | 2Q16 |
June 30rd, 2016
Currencies (79%): Dollar, Euro, Yen, Pound, Canadian
Dollar, Australian Dollar
Commodities (12%): Sugar, Soybean ( Grain, Meal and Oil),
Corn, Cotton, Metals, Energy
Fixed income (9%): Fixed, Floating, Inflation, Libor
FICC
Solid trackrecord.
Market Segments Competitive Advantages
One Stop Shop: credit and risk mitigation
Every transaction demands prior credit approval
Collaterals surpass approved derivative’s limits
Agility| Client Focused| Diversification
Average of 30 days to close a derivative transaction
(domestic large banks average - 90 days)
Sample Transaction
Trader prices the
transaction, including spread
Treasury hedges the
transaction
Transaction closed
Treasury informs the spot
price
Global Derivatives
Agreement
(ISDA Master Agreement)
• Limits
• Types of Derivatives
• Collaterals
• Market Risk: 100% Hedged
• Limits
PINE Credit Analysis
Process
FICC
• Credit Analysis
• Collaterals
• Cross-selling opportunity
• Credit Committee Approval
Client 1st
2nd
Margin Calls Management Derivatives
11/39 Investor Relations | 2Q16 |
Pine Investimentos
9th largest bank in fixed income market, and the 5th player in short-term transactions.
Operating Model
Selected Transactions
Pine Investimentos
Financial Advisory Capital Markets Project
Finance
Fixed Income (CRIs, CRAs)
Infrastructure Debentures
Equities
Securitization
Hybrid capital
transactions
Project & Structured
Finance
Investidores
Family Offices
Individuals
Companies
Asset Managers
Financial Institutions
Pension Funds
Foreign Investors
Hedge Funds
R$25,000,000
October, 2015
Promissory note
Lead Coordinator
December, 2015
CRI
R$21,300,000
Lead Coordinator
December, 2015
Bridge Loan
R$18,000,000
Coordinator Lead Coordinator
October, 2015
Project Finance
R$7,500,000
April, 2016
CPR
R$10,000,000
Lead Coordinator
April, 2016
Promissory Note
R$20,000,000
Lead Coordinator
April, 2016
Structure CCB
R$35,000,000
Lead Coordinator
May, 2016
CPR
R$25,500,000
Lead Coordinator
June, 2016
CPR
R$22,700,000
Lead Coordinator
12/39 Investor Relations | 2Q16 |
Strategic Partnerships
About DEG
About PROPARCO
Group Structure
Group Structure
DEG and PROPARCO
Founded in 1962 in Germany, DEG is one of the largest
institutions in Europe that contribute to growth and
development of private companies in emerging market
It belongs to the KFW Bankengruppe, Germany's largest public
development bank
Promotes development of private enterprises in emerging
markets through long-term financing
Consolidated Assets
EUR 7.6 billion
May, 2015
Founded in 1977 in Paris, started it´s activities in Brazil in
2006
Proparco is the subsidiary of Agence Francaise de
Dévelopement ( AFD)
Focused on emergence of a strong and innovative private
sector with aim of supporting growth and sustainability in
Emerging Market
Consolidated Assets
EUR 3.72 billion
May, 2015
57%
French
Financial
Institutions
International
Financial
Organisations
French
Companies
Investment
funds &
Foundations
26% 13% 3% 1%
13/39 Investor Relations | 2Q16 |
Corporate Governance
14/39 Investor Relations | 2Q16 |
Organizational Structure
Non-bureaucratic Culture, entrepreneurial and meritocratic with a flat hierarchy
CEO
Norberto Zaiet Jr.
INTERNAL AUDIT
Tikara Yoneya
COMPENSATION
COMMITTEE AUDIT COMMITTEE
EXTERNAL AUDIT
PWC
Noberto N. Pinheiro Jr. Rodrigo Pinheiro Igor Pinheiro Noberto Pinheiro Norberto Zaiet Gustavo Junqueira Mailson de Nóbrega Susana Waldeck
President Vice-President Vice-President Member Member Independent
Member
Independent
Member
External
Member
BOARD OF DIRECTORS
RISKS COMMITTEE
Corporate & IB Finances Operations Business
Structuring- DCM
Investment Banking
Corporate Banking
Assets and Liabilities
Back-office
Legal
Compliance, Internal
Control and Security of
Information
Collaterals Management
Management Special
Assets
Middle Office
Exchange
Services
Sales & Trading
International
Research Macro /
Commodities/ Companies
Funding & Distribution
Marketing
Investor Relations
Structured Products
ALM e FLOW
Accounting and Tax
Planning
Technology
Market and Liquidity
Risks
Strategic Planning and
P&L
Commercial Planning and
Valuation
Credit
Credit
Register
15/39 Investor Relations | 2Q16 |
Corporate Governance
Pine is committed to best corporate governance practices
Two Independent Members and one External Member on the Board of Directors
Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990
Gustavo Junqueira: Former Head of Pine Investimentos, Member of the Board of Directors at EZTEC, Financial
Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica
Harumi Susana Ueta Waldeck: Former CFO of Pine, with over 17 years of experience at the company. She brings
the day-to-day experience to the Board.
São Paulo Stock Exchange (BM&FBOVESPA) Level 2 Corporate Governance
Audit and Compensation Committee reporting directly to the Board of Directors
100% tag along rights for all shareholders, including non-voting shares
Arbitration procedures for fast settlement of litigation cases
16/39 Investor Relations | 2Q16 |
Social Investment and Responsibility
Focus on the short, medium and long term.
Social Investment Recognition
Partnerships
Most Green Bank
Recognized by the International Finance Corporation (IFC), private
agency programs of the World Bank as the most "green" bank as a result
of its transactions under the Global Trade Finance Program (GTFP) and
its onlending to companies focused on renewable energy and ethanol
Efficiency Energy
Recognition by World Bank for support in the Energy Efficiency sector.
Responsible Credit
“Lists of Exceptions”: the Bank does not finance projects or those
organizations that damage the environment, are involved in illegal
labor practices or produce, sell or use products, substances or activities
considered prejudicial to society.
System of environmental monitoring, financed by the IADB and
coordinated by FGV, and internally-produced sustainability reports for
corporate loans
Protocolo Verde – “Green Protocol”, an agreement
between FEBRABAN and the Ministry of the Environment
to support development that does not compromise future
generations.
Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and
Miguel Rio Branco, in addition to sponsoring and supporting films and
documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the
drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além
da Estrada (Charly Braun) and others.
Sustainability Annual Report
Seventh consecutive year disclosing the
Sustainability Report in the GRI
standard. The 2015 report, with its high
level of clarity, transparency and quality
was recognized with the fourth place in
the Abrasca Annual Report Award,
considering its category of companies
with net income to R$3 billion.
17/39 Investor Relations | 2Q16 |
Economic Overview
18/39 Investor Relations | 2Q16 |
Macroeconomic
Real GDP
SELIC
IPCA (CPI)
Gross Government Debt
Due to the challenging economic scenario...
4.4
1.4
3.1
1.1
5.8
3.2 4.0
6.1 5.1
-0.1
7,5
3.9
1.9
3.0
0.1
-3.8 -3.5
1.0 2.0
1.5
-6
-4
-2
0
2
4
6
8
10
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Forecast
Real GDP growth rate (%) Média móvel 4 anos
17.6
17.5
19.2
23.5
16.4
19.1
15.3
12.0
12.5
10.1
9.9
11.8
8.6
8.3
11,0
13.5 14.0
11.6 10.6
10.0
5
10
15
20
25
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Forecast
Selic (interest rate, average) Média móvel 4 anos
67.3
76.1
71.5
68.0
67.0
55.5
56.7
56.0
59.2
51.8 51.3
53.8 51.7
57.2
66.5
75.6
80.4
82.0 84.0
50
60
70
80
90
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Forecast
Gross government debt (% GDP)
Moving Avarage 4 years
Moving Avarage 4 years
6.0
7.7
12.5
9.3
7.6
5.7
3.1
4.5
5.9
4.3
5.96.5
5.8 5.96.4
10.7
7.3
5.5
4.5 4.5
3
5
7
9
11
13
15
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Forecast
IPCA (CPI)
19/39 Investor Relations | 2Q16 |
Credit Growth
Corporate and Households
Credit/GDP
Public Banks, National and Internacional Privates Banks
Interest and Spread
... the credit environment is directly affected...
-5
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012 2013 2014 2015 2016
Credit growth (% YoY, nominal)
Corporate Households
-0.5
4.8
-5
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012 2013 2014 2015 2016
Credit growth (% YoY, nominal)
Public banks National private banks International private banks
5.3
-3.2
0.6
30.6
12.1
18.5
0
10
20
30
40
50
60
2008 2009 2010 2011 2012 2013 2014 2015 2016
52.4
Credit growth (% YoY, nominal)
0
5
10
15
20
25
30
35
2011 2012 2013 2014 2015 2016
Interest and Spread - Corporate (% YoY)
Investment Funding Spread
20/39 Investor Relations | 2Q16 |
Expectations ...however, we expect that this scenario has a slight improvement in 2017.
Source: Pine Bank, June 2016
Brazil: Key Economic Indicators - PINE
INDICATORS 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E
Real GDP growth rate (%) 5.1% -0.1% 7.5% 3.9% 1.9% 3.0% 0.1% -3.9% -3.5% 1.0%
BRLUSD (eop) 2.40 1.75 1.69 1.83 2.08 2.35 2.65 3.87 3.50 3.25
BRLUSD (average) 1.83 2.00 1.76 1.67 1.95 2.16 2.35 3.33 3.56 3.38
IPCA (CPI) 5.9% 4.3% 5.9% 6.5% 5.8% 5.9% 6.4% 10.7% 7.3% 5.5%
IGP-M (PPI) 9.8% -1.7% 11.3% 5.1% 7.8% 5.5% 3.5% 10.5% 8.9% 5.5%
Selic (interest rate, eop) 13.75% 8.75% 10.75% 11.00% 7.25% 10.00% 11.75% 14.25% 13.25% 11.25%
Selic (interest, average) 12.54% 9.92% 10.00% 11.71% 8.46% 8.44% 11.02% 13.58% 14.04% 11.63%
Trade balance (USD bn) 25.0 25.3 20.1 29.8 19.4 2.6 -3.9 19.7 52.5 40.0
Current account (USD bn) 0.0 0.0 -77.3 -73.2 -78.4 -83.0 -103.6 -58.9 -10.1 -10.0
Current account (% GDP) -1.7% 0.0% -3.5% -2.8% -3.5% -3.8% -4.8% -3.3% -0.6% -0.5%
FDI (US$bn) 51 31 88 101 87 69 97 75 75.0 60.0
Primary surplus (% GDP) 3.3% 1.9% 2.6% 2.9% 2.2% 1.7% -0.6% -1.9% -2.7% -2.0%
Gross government debt (% GDP) 56.0% 59.3% 51.8% 51.3% 54.8% 53.3% 58.9% 66.4% 75.6% 80.4%
21/39 Investor Relations | 2Q16 |
Highlights and Results
22/39 Investor Relations | 2Q16 |
Highlights
Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 52% of time deposits.
Excess capital, with a BIS ratio of 15.9%, being 15.4% in Tier I Capital.
Loan portfolio coverage ratio at around 6% as a result of a significant increase in provisions in the periods.
Retraction of 8% in personnel and administrative expenses in the semester.
Continuous liability management with a diversified portfolio and adequate terms.
23/39 Investor Relations | 2Q16 |
7,409 6,859
Sept-15 Dec-15
Total Funding
-7.4%
7,691 6,933
Sept-15 Dec-15
Total Loan Portfolio1
-9.9%
1,181 1,163
Sept-15 Dec-15
Shareholders' Equity
-1.5%
3.5% 3.6%
3Q15 4Q15
ROAE
0.1 p.p
2.9% 3.2%
3Q15 4Q15
NIM Evolution
0.33 p.p.
10 10
3Q15 4Q15
Net Income
Financial Highlights
1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)
R$ million
20
1
1H15 1H16
-93.3%
8,621 6,608 6,271
Jun-15 Mar-16 Jun-16
1
-5.1%
-27.3%
7,564 6,270 5,925
Jun-15 Mar-16 Jun-16
-5.5%
-21.7%
1,208 1,174 1,165
Jun-15 Mar-16 Jun-16
-0,8%
-3.5%
3.7%
2.0%
1H15 1H16
-170 bps
3.3%0.2%
1H15 1H16
-310 bps
24/39 Investor Relations | 2Q16 |
Revenue Mix Product and Revenue Diversification
Business Lines
Credit47.3%
Bank Guarantees 19.5%
FICC20.6%
Pine Investimentos
6.1%
Treasury6.5%
1H16
Credit68.9%
Bank Guarantees 15.6%
FICC12.3%
Pine Investimentos
3.1%
Treasury0%
1H15
25/39 Investor Relations | 2Q16 |
Net Interest Margin
NIM Main Impacts
NIM Breakdown
QoQ: Margin stability.
YoY:
- Lower revenue contribution from FICC
- Lower loan portfolio proportion on total assets
3.3%
2.0% 2.0%
2Q15 1Q16 2Q16
0 bps.
-130 bps.
2Q16 1Q16 2Q15 1H16 1H15
Financial Margin
Income from financial intermediation 51 71 80 122 134
Overhedge effect (21) (38) (10) (60) 24
Income from financial intermediation 30 33 70 62 158
26/39 Investor Relations | 2Q16 |
Expenses and Efficiency Ratio
Personnel and Administrative Expenses
Expenses and Efficiency Ratio
Rigorous cost control.
2220 21
17 16 16
44.9%
81.6% 86.7%
-200%
-150%
-100%
-50%
00%
50%
100%
0
5
10
15
20
25
30
35
40
2Q15 1Q16 2Q16
Personnel Expenses
Other administrativeexpenses
Recurring EfficiencyRatio (%)
2Q16 1Q16 2Q15 1H16 1H15
Personnel expenses 21 20 22 41 44
Other administrative expenses 16 16 17 32 35
Subtotal 37 36 38 73 79
Non-recurring expenses (3) (2) (2) (5) (3)
Total 34 34 36 68 75
Employees1 337 344 389 337 389
1 Including outsourced ones
27/39 Investor Relations | 2Q16 |
1 Includes Stand by LC 2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals
R$ million
Loan Portfolio
The portfolio amounted to R$6.3 billion...
1
-27.3%
-5.1%
2
4,0663,650
3,282 3,172 3,139
1,074
924
794 747 659
2,896
2,492
2,3732,250
2,122
585
626
485438
351
Jun-15 Sept-15 Dec-15 Mar-16 Jun-16
Trade finance: 5.6%
Bank Guarantees: 33.8%
BNDES Onlending : 10.5%
Working Capital: 50.1%
7,691
6,9336,608
8,621
6,271
28/39 Investor Relations | 2Q16 |
Continuous Loan Portfolio Management
Sectors Rebalance
...with improved sector diversification.
The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;
The share of wallet of the 20 largest clients remained at around 30%, in line with market peers.
37%38%40%44%41%
7%7%5%5%
5%10%10%10%
7%9%
10%9%8%7%7%
12%12%13%12%10%
12%12%12%11%9%
12%12%12%14%19%
Jun-16Jun-15Jun-14Jun-13Jun-12
Sugar andEthanol
Energy
Real Estate
Engineering
Agriculture
Transportationand Logistics
Others
Sugar and Ethanol12%
Energy12%
Real Estate12%
Engineering10%
Agriculture10%
Transportation and Logistics
7%Telecom
5%
Foreign Trade4%
Metallurgy3%
Retail3%
Specialized Services
2%
Construction Material
2%
Mining2%
Vehicles and Parts2%
Meatpacking2%
Food Industry1%
Other11%
29/39 Investor Relations | 2Q16 |
Main Sectors
Sugar and Ethanol | Energy| Real Estate
Sugar and Ethanol (12%) Energy (12%)
Real Estate (12%)
Exposure by Product Exposure by State Exposure by Product Exposure by Segment
Exposure by Product Exposure by Segment
Working Capital
66%
Guarantees21%
BNDES Onlending
11%
Trade Finance
2%
Guarantees63%
Working Capital
26%
BNDES Onlending
11%
Wind Power77%
Transmitting10%
Equip. Supplier
9%
SHPs UHEs4%
SP65%
MG23%
PR7%
GO3%
RS2%
Capital de Giro77%
Fianças23%
Loteamento42%
Residencial31%
Galpões12%
Shopping11%
Comercial4%
30/39 Investor Relations | 2Q16 |
Main Sectors
Engineering | Agriculture
Engineering (10%) Agriculture (10%)
Exposure by Product Exposure by Product
Exposure by State
Exposure by Segment
Concession36%
Transporta-tion32%
Industrial24%
Oil and Gas6%
Energy2%
Working Capital
82%
Guarantees15%
BNDES Onlending
3%
Working Capital
79%
BNDES Onlending
1%
Trade Finance
13%
Guarantees7%
MT30%
SP33%
BA10%
PR6%
MS6%
Others15%
31/39 Investor Relations | 2Q16 |
1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,682 2Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio
June 30th, 2016
Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio
excluding Bank Guarantees and Stand-by Letters of Credit.
Loan Portfolio Quality
~90% of the loan portfolio is classified between AA-C ratings.
Loan Portfolio Quality – Res. 2,682
Credit Coverage
Non Performing Loans > 90 days (Total Contract)
Collaterals
Products Pledge
44%
Receivables13%
Properties Pledge
42%
Investments2%
0.3% 0.3%1.1%
2.1%1.8%
1.2%1.7%
0.7%1.3%
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
AA-A22.4%
B27.7%
C35.9%D-E
9.2%
F-H4.7%
6.6%
10.5%
13.8%
4.1%4.9%
5.9%
00%
02%
04%
06%
08%
10%
12%
-01%
01%
03%
05%
07%
09%
11%
13%
15%
Jun-15 Mar-16 Jun-16
D-H Portfolio Coverage of Total Portfolio
80%
546%
167%
50.0%
250.0%
450.0%
650.0%
Coverage D-H Overdue Portfolio1 2 3
32/39 Investor Relations | 2Q16 |
R$ million
Funding
Diversified sources of funding...
47% 41% 53% 53% 52% Cash over Deposits
951 853 841 787 648
291 343 324 348261
1,322 1,321 1,570 1,662 1,939
197 359336 218 15618
3318 17 19
1,091 952 806 759 668
476207 295 284 296
787764 751 761 734
272318 279
244216
8191,022 1,029
777680
735545
113
6139
605692
497
352
270
7,5647,409
6,859
6,270
5,925
Jun-15 Sept Dec-15 Mar-16 Jun-16
Trade Finance: 4.5%
Private Placements: 0.7%
Multilateral Lines: 11.5%
International Capital Markets:3.6%
Financial Letter : 12.4%
Local Capital Markets: 5%
Onlending: 11.3%
Demand Deposits: 0.3%
Interbank Time Deposits: 2.6%
High Net Worth Individual TimeDeposits: 32.7%
Corporate Time Deposits: 4.4%
Institutional Time Deposits:10.9%
33/39 Investor Relations | 2Q16 |
37% 39%45% 48% 51%
63% 61%55% 52% 49%
Jun-15 Sept-15 Dec-15 Mar-16 Jun-16
Total Deposits Others
Leverage: Expanded Loan Portfolio / Shareholders’ Equity
Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit /
Shareholders’ Equity
Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of
Credit / Total Funding
Asset & Liability Management
... matching assets’ and liabilities’ duration.
Leverage Credit over Funding Ratio
Total Deposits over Total Funding R$ million R$ billion
6,270 7,564 7,409 6,859 5,925
Asset and Liability Management (ALM)
76%
70%66%
69% 70%
Jun-15 Sept-15 Dec-15 Mar-16 Jun-16
1.2
0.7
4.7
0.0
1.2
0.6
Assets
0.1
0.3
3.7
2.9
0.5
0.9
Liabilities
8.4 8.4
Coverage of 125%
Cash and cash equivalents
Assets financed through REPOs
Other assets
Credit Portfolio
Trading portfolio assets
Illiquid assets
Secured funding
Other liabilities
Unsecured funding
Demand deposits
Equity
REPO Financing
7.1x6.5x
6.0x5.6x 5.4x
4.7x4.4x
3.9x 3.7x 3.6x
-
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
10,0 0
Jun-15 Sept-15 Dec-15 Mar-16 Jun-16
Expanded loan Porfolio
Loan Portfolio excludingBank Guarantees
34/39 Investor Relations | 2Q16 |
Capital Adequacy Ratio (BIS), Basel III
BIS ratio of 15.9%, being 15.4% in Tier I Capital.
12.3% 12.2%14.1% 14.7% 15.4%
0.8% 0.9%
0.9% 0.4%0.5%
13.1%13.1%
15.0% 15.1%15.9%
Jun-15 Sept-15 Dec-15 Mar-16 Jun-16
Tier II Tier IMinimum Regulatory Capital (10,5%)
35/39 Investor Relations | 2Q16 |
Rating
Fore
ign
an
d
Local
Cu
rre
ncy
Long Term B+ BB- B1 -
Nati
on
al
Long Term BBB- A+ Baa2 10,14
36/39 Investor Relations | 2Q16 |
Balance Sheet
R$ million
Jun-16 Mar-16 Jun-15
Assets 8,436 8,507 10,031
Cash 71 87 272
Interbank investments 836 632 327
Securities 2,893 2,866 3,061
Interbank accounts 1 1 1
Lending operations 3,746 3,967 5,281
(-) Provisions for loan losses (223) (196) (217)
Net lending operations 3,523 3,771 5,064
Other receivables 994 961 1,291
Property and equipments 119 190 14
Investments 108 178 -
Property and equipment in use 10 11 13
Intangible 1 1 1
Liabilities 7,270 7,333 8,823
Deposits 1,976 1,913 1,539
Money market funding 612 635 432
Funds from acceptance and securities issued 1,913 2,054 2,182
Interbank and Interbranch accounts 11 0 9
Borrowings and onlendings 1,542 1,805 3,118
Derivative financial instruments 709 336 182
Other liabilities 441 515 1,291
Deferred Results 67 75 70
Shareholders' equity 1,165 1,174 1,208
Liabilities and shareholders' equity 8,436 8,507 10,031
37/39 Investor Relations | 2Q16 |
Managerial Income Statement
(overhedge effect and provisions reclassified)
R$ million
2Q16 1Q16 4Q15 3Q15 2Q15 1H16 1H15
Income from financial intermediation 71 94 215 758 180 164 813
Lending transactions 114 122 146 178 176 235 377
Securities transactions 79 77 93 81 83 156 151
Derivative financial instruments (67) (72) (18) 488 (64) (139) 220
Foreign exchange transactions (55) (33) (7) 11 (14) (88) 64
Expenses with financial intermediation (74) (87) (183) (758) (153) (161) (752)
Funding transactions (101) (111) (163) (322) (134) (211) (391)
Borrowings and onlendings 59 50 6 (380) 24 109 (264)
Provision for loan losses (33) (26) (26) (56) (42) (60) (98)
Gross income from financial intermediation (4) 6 32 (0) 27 3 60
Other operating (expenses) income (23) (24) (37) (53) (34) (46) (69)
Fee income 15 16 18 26 25 32 46
Personnel expenses (21) (20) (23) (22) (22) (41) (44)
Other administrative expenses (16) (16) (19) (20) (17) (32) (35)
Tax expenses (5) (7) (6) (2) (10) (12) (14)
Other operating income 15 10 2 2 1 25 12
Other operating expenses (11) (8) (7) (36) (12) (18) (34)
Operating income (26) (17) (5) (53) (7) (44) (8)
Non-operating income 3 9 3 (1) 1 12 5
Income before taxes and profit sharing (23) (9) (2) (53) (6) (31) (3)
Income tax and social contribution 18 22 22 73 17 40 37
Profit sharing (2) (5) (9) (10) (2) (7) (14)
Net income (7) 8 10 10 10 1 20
38/39 Investor Relations | 2Q16 |
Income Statement
R$ million
2Q16 1Q16 2Q15 1H16 1H15
Income from financial intermediation 92 132 190 224 788
Lending transactions 114 122 176 235 377
Securities transactions 79 77 83 156 151
Derivative financial instruments (46) (33) (54) (79) 196
Foreign exchange transactions (55) (33) (14) (88) 64
Expenses with financial intermediation (74) (87) (86) (161) (686)
Funding transactions (101) (111) (134) (211) (391)
Borrowings and onlendings 59 50 24 109 (264)
Provision for loan losses (33) (26) 24 (60) (31)
Gross income from financial intermediation 18 45 104 63 103
Other operating (expenses) income (23) (24) (101) (46) (135)
Fee income 15 16 25 32 46
Personnel expenses (21) (20) (22) (41) (44)
Other administrative expenses (16) (16) (17) (32) (35)
Tax expenses (5) (7) (10) (12) (14)
Other operating income 15 10 1 25 12
Other operating expenses (11) (8) (79) (18) (101)
Operating income (5) 21 3 16 (33)
Non-operating income 3 9 1 12 5
Income before taxes and profit sharing (1) 30 5 28 (27)
Income tax and social contribution (4) (16) 7 (20) 62
Profit sharing (2) (5) (2) (7) (14)
Net income (7) 8 10 1 20
39/39 Investor Relations | 2Q16 |
This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as such
are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy
(political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax
legislation) and therefore are subject to change without prior notice.
Investor Relations
Norberto Zaiet Junior
CEO
João Brito
CFO
Raquel Varela Bastos
Head of Investor Relations, Funding & Distribution, Marketing & Press
Luiz Maximo
Investor Relations Coordinator
Kianne Paganini
Investor Relations Analyst
Phone: (55 11) 3372-5343
ir.pine.com