Institutional presentation 3Q16

3Q16 Institutional Presentation

2/37Investor Relations | 3Q16 |

Profile and History Pine History

Business Strategy Competitive Landscape Focus Always on the Client Corporate Credit FICC Pine Investimentos Strategic Partnership

Corporate Governance Organizational Structure Corporate Governance Social Investment and Responsibility

Economic Overview Macroeconomic Credit Growth Expectations

Highlights and Results

Summary


Profile and History


PineSpecialized 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$ 6,238 million in Loan Portfolio

R$ 1,152 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 billion38%

R$500 million to R$2 billion

23%

Up to R$500 million39%


...with extensive knowledge of Brazil’s corporate credit cycle. History

1997Noberto Pinheiro sell his stake in BMC and found

Pine

1939Pinheiro Family

foundsBanco Central do

Nordeste

1975Noberto 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 2007Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

May, 2007Creation of Pine Investimentos products line and

opening of the Cayman branch 2005

Noberto Pinheiro becomes Pine’s controller

October, 2007Beginning of the FICC Business

October, 2011Subscription of Pine’s capital by DEG

August, 2012 Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management

2014Portfolio deleveraging strategy due to an adverse scenario

March, 2007IPO

May, 201619

years

155 184 222 341 521 620 755 663 761 1,2142,854 3,105

4,1925,763

6,9637,911

9,920 9,826

6,933 6,238

1862

121 126 140 136 152 171 209

335

801 827 825867

1,015

1,2201,272 1,256

1,163 1,152

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Sept

-16

Corporate Credit Portfolio (R$ Million)Shareholders' Equity (R$ Million)


Business Strategy


Competitive LandscapePine 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

https://www.btgpactual.com/home/home.aspx/Index

http://www.banrisul.com.br/

http://www.sofisa.com.br/


Focus Always on the ClientProducts tailored to meet the needs of each individual client.

In additionto theheadquarterslocatedin thecity ofSão Paulo, Pine has6 branchesthroughoutBrazil, in theStates of Mato Grosso, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, and São Paulo. The originationnetwork also counts with aCayman Branch, especially for Trade Finance transactions.


Corporate Credit

Actions Credit CommitteeStrong track record and solid credit origination and approval process.

Credit Approval: Electronic Process

Origination Officers

Credit originationCredit analysis, visit to clients, data updates,

interaction with internal research team

Credit AnalystsRegional 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


September 30rd, 2016

Currencies (83%): Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar

Fixed income (10%): Fixed, Floating, Inflation, Libor

Commodities (7%): Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy

FICCSolid 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


Pine Investimentos9th place in volume of short-term fixed income transactions, being the 5th player in the number of transactions

Operating Model

Selected Transactions

Pine Investimentos

Financial AdvisoryCapital MarketsProjectFinance

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

J uly, 2016

Bank Guarantee

R$ 38,000,000

Coordinator

J une, 2016

CPR

R$22,700,000

Lead Coordinator

May, 2016

CPR

R$25,500,000

Lead Coordinator

April, 2016

Structure CCB

R$35,000,000

Lead Coordinator

April, 2016

Promissory Note

R$20,000,000

Lead Coordinator

J uly, 2016

Bond

R$ 400,000,000

September, 2016

Structure CreditFacility

R$ 10,000,000

Lead Coordinator

September, 2016

Mortage Backed Securities

R$ 10,000,000

Lead Coordinator

September, 2016

Bond

R$ 469,000,000


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 AssetsEUR 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 AssetsEUR 3.72 billion

May, 2015

57%

French Financial

Institutions

International Financial

Organisations

French Companies

Investment funds &

Foundations

26%

13%

3% 1%


Corporate Governance


Organizational StructureNon-bureaucratic Culture, entrepreneurial and meritocratic with a flat hierarchy

CEONorberto Zaiet Jr.

INTERNAL AUDIT COMPENSATION COMMITTEE AUDIT COMMITTEEEXTERNAL AUDIT

PWC

Noberto N. Pinheiro Jr. Rodrigo Pinheiro Igor Pinheiro Noberto Pinheiro Norberto Zaiet Gustavo

JunqueiraMailson de Nóbrega Susana Waldeck

President Vice-President Vice-President Member Member Independent Member

Independent Member

External Member

BOARD OF DIRECTORS

RISKS COMMITTEE

Corporate & IB FinancesOperationsBusiness

Structuring- DCMInvestment BankingCorporate Banking

Assets and Liabilities Back-office LegalCompliance, Internal Control and Security of InformationCollaterals ManagementManagement Special AssetsMiddle OfficeExchangeServices

Sales & TradingInternationalResearch Macro / Commodities/ CompaniesFunding & DistributionMarketingInvestor RelationsStructured ProductsALM e FLOW

Accounting and Tax PlanningTechnologyMarket and Liquidity RisksStrategic Planning and P&LCommercial Planning and Valuation

Credit

CreditRegister


Corporate GovernancePine 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


Social Investment and ResponsibilityFocus 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.


Economic Overview


17.6

17.5

19.2

23.5

16.4

19.1

15.3

12.0

12.510.1

9.9

11.8

8.6

8.3

11.0

13.5 14.1

11.8

9.510.0

5

10

15

20

25

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

Selic (interest rate, average) Média móvel 4 anos

4.4

1.43.1

1.1

5.8

3.24.0

6.15.1

-0.1

7.5

3.9

1.93.0

0.1

-3.8-3.5

0.82.5

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

Macroeconomic

Real GDP

SELIC

IPCA (CPI)

Gross Government Debt

Due to the challenging economic scenario...

Moving Avarage 4 years

Moving Avarage 4 years

6.0

7.7

12.5

9.3

7.6

5.7

3.14.5

5.9

4.3

5.96.5

5.8 5.9 6.4

10.7

7.0

5.0 4.5 4.5

3

5

7

9

11

13

15

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

IPCA (CPI)

67

76

7268

67

55 57

56

59

5251

5452

57

6772

75

8082

50

60

70

80

90

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

Gross government debt (% GDP)


0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Credit growth (% YoY, nominal)

Credit Growth

Corporate and Households

Credit/GDP

Public Banks, National and Internacional Privates Banks

Interest and Spread

... the credit environment is directly affected...

50.8

-10

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016


Corporate Households

-6.5

3.6

-505

1015202530354045

2008 2009 2010 2011 2012 2013 2014 2015 2016


Public banks National private banks International private banks

-0.3

1.8

-14.6

0

5

10

15

20

25

30

35

2011 2012 2013 2014 2015 2016

Interest and Spread - Corporate (% YoY)

Investment Funding Spread

29.8

11.8

18.0


Expectations...however, we expect that this scenario has a slight improvement in 2017.

Source: Pine Bank, September 2016

Brazil: Key Economic Indicators - PINEINDICATORS 2011 2012 2013 2014 2015 2016E 2017E 2018EReal GDP growth rate (%) 3.9% 1.9% 3.0% 0.1% -3.9% -3.5% 0.8% 2.5%BRLUSD (eop) 1.83 2.08 2.35 2.65 3.87 3.25 3.00 2.85BRLUSD (average) 1.67 1.95 2.16 2.35 3.33 3.47 3.13 2.95IPCA (CPI) 6.5% 5.8% 5.9% 6.4% 10.7% 7.0% 5.0% 4.5%IGP-M (PPI) 5.1% 7.8% 5.5% 3.5% 10.5% 7.7% 4.7% 5.0%Selic (interest rate, eop) 11.00% 7.25% 10.00% 11.75% 14.25% 13.75% 11.00% 9.00%Selic (interest, average) 11.71% 8.46% 8.44% 11.02% 13.58% 14.15% 11.75% 9.50%Trade balance (USD bn) 29.8 19.4 2.6 -3.9 19.7 50.1 35.0 20.0Current account (USD bn) -73.2 -78.4 -83.0 -103.6 -58.9 -18.4 -25.0 -40.0Current account (% GDP) -2.8% -3.5% -3.8% -4.8% -3.3% -1.0% -1.2% -2.0%FDI (US$bn) 101 87 69 97 75 70.0 80.0 90.0Primary surplus (% GDP) 2.9% 2.2% 1.7% -0.6% -1.9% -2.4% -2.1% -1.0%Gross government debt (% GDP) 51.3% 54.8% 53.3% 58.9% 66.4% 72.0% 75.0% 80.0%


Highlights and Results


Highlights

Liquid balance sheet with a cash position of R$ 1.8 bi, equivalent to 50% of time deposits.

Excess capital, with a BIS ratio of 15.8%, being 15.3% in Tier I Capital.

Loan portfolio coverage ratio surpassed 6% as a result of relevant provisions over the past quarters.

Retraction of approximately 8% in personnel and administrative expenses in the accumulated of 9 months.

Continuous liability management with a diversified portfolio and adequate terms.


10

-7 -73Q15 2Q16 3Q16

-163.7%

4.9%

7,409 6,859

Sept-15 Dec-15

Total Funding

-7.4%

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

7,691 6,271 6,238

Sept-15 J un-16 Sept-16

Total Loan Portfolio1

-0.5%-18.9%

7,691 6,933

Sept-15 Dec-15

Total Loan Portfolio1

-9.9%

7,409 5,925 5,908


Total Funding

-0.3%-20.3%

1,181 1,165 1,152


Shareholders' Equity

-1.1%

-2.4%

3.5%

-2.4% -2.3%3Q15 2Q16 3Q16

ROAE-580 bps.

10 bps.3.3%2.0% 2.0%

3Q15 2Q16 3Q16

NIM

-90 bps.


Revenue MixProduct and Revenue Diversification

Business Lines

Credit48.0%

Bank Guarantees 21.9%

FICC20.0%

Pine Investimentos

7.2%

Treasury2.9%

9M16

Credit66.5%

Bank Guarantees 18.0%

FICC11.2%

Pine Investimentos

4.3%

Treasury0%

9M15


Net Interest Margin NIM Breakdown

NIM

NIM Breakdown

R$ million3Q16 2Q16 3Q15 9M16 9M15

Financial MarginIncome from financial intermediation 32 51 1 154 135

Overhedge effect (2) (21) 55 (62) 79 Income from financial intermediation 30 30 56 92 214

3.3%1.97% 2.05%

3Q15 2Q16 3Q16

NIM-90 bps.

10 bps.


Expenses and Efficiency Ratio

Personnel and Administrative Expenses

Expenses and Efficiency Ratio

Rigorous cost control.

R$ million3Q16 2Q16 3Q15 9M16 9M15

Personnel expenses 21 21 22 62 66 Other administrative expenses 17 16 20 49 55 Subtotal 38 37 42 111 121 Non-recurring expenses (3) (3) (4) (9) (7)Total 35 34 38 102 114

Employees1 339 337 375 339 375 1 Including outsourced ones

22 21 2120

16 17

50.6%

86.7% 77.6%

-200%

-150%

-100%

-50%

00%

50%

100%

0

5

10

15

20

25

30

35

40

3Q15 2Q16 3Q16

Personnel Expenses

Other administrativeexpensesRecurring EfficiencyRatio (%)


3,650 3,282 3,172 3,139 3,275

924794 747 659 520

2,4922,373 2,250 2,122 2,104

626

485438

351 339

Sept-15 Dec-15 Mar-16 J un-16 Sept-16

Trade finance: 5.4%

Bank Guarantees: 33.7%

BNDES Onlending : 8.3%

Working Capital: 52.5%

6,9336,608

6,271

7,691

6,238

1 Includes Stand by LC2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

R$ million

Loan PortfolioThe portfolio amounted to R$6.2 billion...

1

-18.9%

-0.5%

2


Continuous Loan Portfolio Management

Sectors Rebalance...with improved sector diversification.

Diversified growth (lower tickets and increased number of active clients).

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.

38%38%40%41%41%

6%7%6%5%6%9%9%8%9%6%

11%10%11%8%9%

12%12%14%14%16%

12%12%9%9%10%

12%12%12%14%12%

Sept-16Sept-15Sept-14Sept-13Sept-12

Real Estate

Energy

Sugar and Ethanol

Agriculture

Engineering

Transportationand Logistics

Others

Real Estate12%

Energy12%

Sugar and Ethanol12%

Agriculture11%

Engineering9%

Transportation and Logistics

6%Telecom

5%

Foreign Trade5%

Specialized Services

4%

Metallurgy3%

Retail3%

Mining2%

Construction Material

2%

Vehicles and Parts2%

Meatpacking2%

Food Industry1%

Other9%


7.7%

13.8%15.1%

4.1%

5.9% 6.1%

00%

02%

04%

06%

08%

10%

12%

-01%

01%

03%

05%

07%

09%

11%

13%

15%

17%

Set-15 J un-16 Set-16Carteira D-H Cobertura da Carteira Total

127% 167% 193%

50.0%

250.0%

450.0%

650.0%

Cobertura da Carteira D-H Vencida

1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,6822Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio

September 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~85% 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

1 2 3

0.3%1.1%

2.1% 1.8%1.2%

1.7%0.7%

1.3% 1.5%

sept-14 dec-14 mar-15 jun-15 sept-15 dec-15 mar-16 jun-16 sept-16

Products Pledge39%

Receivables13%Properties

Pledge45%

Investments2%

AA-A23.9%

B26.4%

C34.6%D-E

9.8%

F-H5.3%


853 841 787 648 617

343 324 348 261 376

1,321 1,570 1,662 1,9392,600

359 336 218 156

133

3318 17 19

29

952 806 759 668

530207 295 284 296

198764 751 761 734259

318 279 244 216 206

1,022 1,029777 680 665

545 11361

39 33

692497

352270 262

7,409

6,859

6,2705,925 5,908


Trade Finance: 4.4%

Private Placements: 0.6%

Multilateral Lines: 11.3%

International Capital Markets:3.5%Financial Letter : 4.4%

Local Capital Markets: 3.4%

Onlending: 9%

Demand Deposits: 0.5%

Interbank Time Deposits: 2.3%

High Net Worth Individual TimeDeposits: 44%Corporate Time Deposits: 6.4%

Institutional Time Deposits:10.4%

R$ million

FundingDiversified sources of funding...

41%

53%

53%

52%

50% Cash over Deposits

-20.3% -0.3%


39% 45% 48% 51%64%

61% 55% 52% 49%36%


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 ofCredit / Total Funding

Asset & Liability Management... matching assets’ and liabilities’ duration.

Leverage Credit over Funding Ratio

Total Deposits over Total FundingR$ millionR$ billion

5,9257,409 6,859 6,270 5,908

Asset and Liability Management (ALM)

70%66% 69% 70% 70%

Sept-15 Dec-15 Mar-16 Jun-16 Sept-16

6.5x6.0x 5.6x 5.4x 5.4x

4.4x3.9x 3.7x 3.6x 3.6x

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.0 0


Expanded loan Porfolio

Loan Portfolio excludingBank Guarantees

1.2

0.7

5.2

0.00.70.5

Assets0.1

0.2

3.7

2.9

0.5

0.9

Liabilities

8.3 8.3

Coverage of 143%

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


Capital Adequacy Ratio (BIS), Basel III BIS ratio of 15.8%, being 15.3% in Tier I Capital.

12.2%14.1% 14.7% 15.4% 15.3%

0.9%0.9% 0.4% 0.5% 0.5%

13.1%

15.0% 15.1%15.9% 15.8%

Set-15 Dez-15 Mar-16 J un-16 Set-16

Tier II Tier I Minimum Regulatory Capital (10.5%)


Rating

Fore

ign

and

Loca

l Cu

rren

cy

Long Term B+ BB- B1 -

Natio

nal

Long Term BBB- A+ Baa2 9.29


Balance Sheet

R$ millionSept-16 Jun-16 Sept-15

Assets 8,323 8,436 9,920 Cash 70 71 123 Interbank investments 865 836 445 Securities 2,867 2,893 3,451 Interbank accounts 0 1 1 Lending operations 3,655 3,746 4,775 (-) Provisions for loan losses (223) (223) (198) Net lending operations 3,432 3,523 4,577 Other receivables 971 994 1,310 Property and equipments 118 119 13

Investments 108 108 - Property and equipment in use 10 10 12 Intangible 1 1 1

Liabilities 7,171 7,270 8,739 Deposits 2,641 1,976 1,846 Money market funding 478 612 756 Funds from acceptance and securities issued 1,398 1,913 2,036 Interbank and Interbranch accounts 27 11 13 Borrowings and onlendings 1,487 1,542 3,040 Derivative financial instruments 813 709 264 Other liabilities 261 441 719 Deferred Results 66 67 65

Shareholders' equity 1,152 1,165 1,181

Liabilities and shareholders' equity 8,323 8,436 9,920


Managerial Income Statement(overhedge effect and provisions reclassified)

R$ million

3Q16 2Q16 1Q16 4Q15 3Q15 9M16 9M15

Income from financial intermediation 236 71 94 215 758 401 1,570 Lending transactions 116 114 122 146 178 352 555 Securities transactions 99 79 77 93 81 254 232 Derivative financial instruments 12 (67) (72) (18) 488 (127) 709 Foreign exchange transactions 10 (55) (33) (7) 11 (78) 75

Expenses with financial intermediation (224) (74) (87) (183) (758) (385) (1,510)Funding transactions (180) (101) (111) (163) (322) (392) (713)Borrowings and onlendings (26) 59 50 6 (380) 83 (644)Provision for loan losses (17) (33) (26) (26) (56) (77) (154)

Gross income from financial intermediation 13 (4) 6 32 (0) 16 60

Other operating (expenses) income (25) (23) (24) (37) (53) (71) (121)Fee income 19 15 16 18 26 50 72 Personnel expenses (21) (21) (20) (23) (22) (62) (66)Other administrative expenses (17) (16) (16) (19) (20) (49) (55)Tax expenses (3) (5) (7) (6) (2) (14) (16)Other operating income 3 15 10 2 2 28 14 Other operating expenses (6) (11) (8) (7) (36) (25) (70)

Operating income (12) (26) (17) (5) (53) (56) (61)

Non-operating income 3 3 9 3 (1) 15 5

Income before taxes and profit sharing (10) (23) (9) (2) (53) (41) (56)

Income tax and social contribution 7 18 22 22 73 47 111 Profit sharing (4) (2) (5) (9) (10) (11) (24)Net income (7) (7) 8 10 10 (5) 31


Income Statement

R$ million3Q16 2Q16 3Q15 9M16 9M15

Income from financial intermediation 239 92 703 463 1,491 Lending transactions 116 114 178 352 555 Securities transactions 99 79 81 254 232 Derivative financial instruments 14 (46) 433 (65) 629 Foreign exchange transactions 10 (55) 11 (78) 75

Expenses with financial intermediation (224) (74) (758) (385) (1,443)Funding transactions (180) (101) (322) (392) (713)Borrowings and onlendings (26) 59 (380) 83 (644)Provision for loan losses (17) (33) (56) (77) (87)

Gross income from financial intermediation 15 18 (55) 78 48

Other operating (expenses) income (25) (23) (53) (71) (188)Fee income 19 15 26 50 72 Personnel expenses (21) (21) (22) (62) (66)Other administrative expenses (17) (16) (20) (49) (55)Tax expenses (3) (5) (2) (14) (16)Other operating income 3 15 2 28 14 Other operating expenses (6) (11) (36) (25) (137)

Operating income (10) (5) (108) 6 (140)

Non-operating income 3 3 (1) 15 5

Income before taxes and profit sharing (7) (1) (108) 21 (135)

Income tax and social contribution 4 (4) 128 (15) 190 Profit sharing (4) (2) (10) (11) (24)Net income (7) (7) 10 (5) 31


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 JuniorCEO

João BritoCFO

Raquel Varela BastosHead of Investor Relations, Funding & Distribution, Marketing & Press

Luiz MaximoInvestor Relations Coordinator

Kianne PaganiniInvestor Relations Analyst

Phone: (55 11) 3372-5343

[email protected]