2011 Investors' Meeting Presentation - São Paulo

APIMEC SP MeetingA t 2011August - 2011

History and Profile

Summary

History and ProfilePINE at a GlanceHistory

Business StrategyCompetitive LandscapeFocusing on the ClientCorporate CreditHedging DeskPINE Investimentos and DistributionPINE Investimentos and DistributionPillars

Highlights and Results

Corporate Governance and SharesOrganizational StructureHuman Resources: PINE CultureCorporate GovernanceCommittees StructureShareholders’ StructurePINE4

Other HighlightsOther Highlights1H11 Events and HighlightsPINE's ratings upgraded by S&P and AustinSocial Responsibility

2/37Investor Relations | 2Q11 |

Appendices

History and Profile

PINE at a GlancePINE specializes in providing financial solutions for medium and large size companies...

Credit Portfolio by Annual Client RevenuesFocused on establishing long-term relationships withcompanies

PINE thoroughly understands the needs and strategies of

Up to R$150 million

15%

As of June 30, 2011

its clients, offering a broad range of financialinstruments in local and foreign currencies

Close relationship with clients: the average number ofproducts used by those clients served by more than one

Over R$1 billion50%

R$150 million to

R$500 million

16%p y yproduct is 2.8.

Business is structured along three primary business lines:• Corporate Credit: credit and financing products

R$500 million to

R$1 billion19%

Solid Credit Ratings

• Hedging Desk: Instruments for hedging and riskmanagement

• PINE Investimentos: vehicle for InvestmentBanking and Asset Management

Strategy based on:• Product diversity• Qualified human capital• Efficient risk management

Br A Brazil national scale

A1.br Brazil national scale

Ba2 Long term foreign currency deposit

Last revised: 04/27/10

• AgilityBr A Brazil national scale

BB- Long term foreign currency deposit –Positive Outlook

A(bra) Brazil national scale

Last revised : 08/23/11


BB- Long term foreign currency deposit

Last revised : 08/02/11

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

1997 20051939 1975 20071997Fountaion ofBanco PINE

2005Noberto Pinheiro

becomes Banco PINE’s sole shareholder

1939Pinheiro Family

founds theBanco Central do

Nordeste

1975Noberto Pinheiro becomes one of

BMC’s controlling shareholders

….Consolidation of

strategy to provide full service to companies

2007IPO

1939 – Pinheiro Family founds its first bank in Brazil – Banco Central do Nordeste

1975 - Noberto Pinheiro becomes one of the controlling shareholders of Banco BMC

1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE

2005 - Noberto Pinheiro becomes Banco PINE’s sole shareholder

2007 – IPO


Business Strategy

Competitive LandscapePINE serves a niche market of companies with few banking options, seeking a dedicated bank that fully understands their demands.fully understands their demands.

Focus on the upper-middle and low corporatesegments

Large Multi-service banks

Large Multi-service banks

segments

Consolidation of the banking sector has resulted inless availability of credit lines and financial

Corporate sector mid-sized banks Opportunity to grow operations

PINE f d idi l i

less availability of credit lines and financialinstruments

Unique approach: PINE offers diverse products toPINE: focused on providing complete serviceto companies, offering customized products.

Unique approach: PINE offers diverse products toan underserved market segment of the bankingindustry

Foreign Banks

Foreign Banks

Competitive Advantages: Fast response Dedicated team of specialists with in-depth

knowledge of clients’ businesses, balance

Mid-sized banksMid-sized bankssheets, and market positioning

Tailor-made solutions based on a diverseproduct base


Focusing on the ClientThe bank develops a strategy of product diversity, tailored to the needs of each client

CDIs

Interest Rates

CDs

LCIs

CCBs PrivatePlacements

Currency

Commodities

CDBs

RDBs

LCAs

Eurobonds

Placements

Financial Letters

Local Currency Pricing of Assets and Liabilities

Working Capital

Overdraft Accounts

EquitiesDebenturesCRIs

TreasuryDistribution

Foreign Currency

LiquidityManagement

Trading

Underwriting

BNDES Onlending

Bank Guarantees

Compror/Vendor

ACC/ACE

ClientsCorporate

Credit PINE

Investimentos

Capital Markets

Corporate Finance

Special

Local Currency

Onlending

Foreign Currency

Trade Finance(Import and Export)

Private Placements

Financial Advisory

BankGuarantees

Exclusive Funds

Project Finance

ACC/ACE

ExportFinance

Finimp

Letters of Credit

2 770onlending

Sales DeskSpecial Situations

Investment Management

Interest Rates Currency

(Import and Export)

Structured FinanceCredit Funds

Portfolio Management

Swap NDFStructured Swaps

2,770onlending

Syndicated and

Structured Loans

y

Commodities


Structured Swaps

Options

Corporate Credit... aimed at diversification of credit instruments...

Actions Credit Committee

Meeting frequency: twice a week

Minimum quorum: 4 members - attendance of CEO or

Personalized, agile service, working closely with clientsand keeping a low company to officer ratio: each accountmanager handles only 10 economic groups on average. q

Chairman is mandatory

Members:Chairman of the Board

manager handles only 10 economic groups on average.

Origination staff comprised of 79 people focused onspecific geographic areas, providing the bank with localand extremely up-to-date credit intelligence.

Chairman of the BoardCEOCorporateOperationsChief Credit Officer

Relationship with more than 600 different economicgroups

Origination network is comprised of 10 branches dividedinto 14 business platforms in Brazil’s major economiccenters

Participants:CFOPINE InvestimentosCredit Analyst

centers

More than 30 credit analysts, guaranteeing that analysisare based on industry-specific intelligence

Efficient loan and collaterals process, documentation, and

Credit Approval: Electronic Process

Credit AnalystOther members of the Origination

Efficient loan and collaterals process, documentation, andcontrols, which has resulted in NPL ratios at an all-timelow range

Origination OfficersOrigination Officers

Credit origination Credit analysis, visit to clients, data updates, interaction with internal

Credit AnalystsCredit AnalystsRegional Heads of

Origination and Credit Analysis

Regional Heads of Origination and Credit

Analysis

Presentation to the Credit Committee

Chief Credit Officerand Credit AnalystsChief Credit Officerand Credit Analysts

Centralized and unanimous decision making process

CREDIT COMMITTEE (5 Members)

CREDIT COMMITTEE (5 Members)

Discussion on sizing, collateral, structure, etc.


updates, interaction with internal research team

decision making processstructure, etc.

Hedging Desk... increasing solutions to make client balance sheets more predictable...

Breakdown of Derivative Portfolio Notional BusinessAs of June 30, 2011

Fixed I

DERIVATIVES SEGMENTS

Fixed Income: Fixed Floating Inflation LiborIncome30%

Currencies62%

Fixed Income: Fixed, Floating, Inflation, Libor

Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar, Spot

Commodities8%

62%Commodities: Sugar, Soybeans (Grain, Meal and Oil),Corn, Cotton, Metals, Energy

Purpose

Notional: R$3.5 billion

To make client balance sheets more predictable

TRENDS

Increased share of Commodities hedging in the totalTo make client balance sheets more predictable

Executed with clients that have an ongoing creditrelationship with PINE, rated between AA and C

8 professionals assigned to the Desk, dedicated to

Increased share of Commodities hedging in the totalportfolio

Short-term portfolio (average maturity of transactionsis 208 days)

p g ,serving clients’ daily needs

According to the Cetip ranking, PINE is ranked in the top15 in overall derivatives and 4th in commodities hedgingfor clients

Increased usage of risk mitigation tools such as initialmargin and threshold.


PINE Investimentos and Distribution... and adding value to companies, always optimizing the use of the Bank's capital.

PINE Investimentos

PINE Investimentos offers unique solutions for its clients in Investment Banking and Investment Management

Asset ManagementFixed Income Funds

Capital MarketsStructuring and

Distressed & Special Situations

Corporate FinanceM&A

Investment Banking Investment Management

Wealth ManagementPortfolio Fixed Income Funds

Credit FundsExclusive Mandates

Structuring and Placement of SecuritiesIntermediationStructured Transactions

Advisory on WorkoutsNegotiation of NPLsAdvisory on Acquisitions of Stressed Assets

M&APrivate PlacementsStrategic and Financial AdvisoryRestructuringCorporate

Management

Corporate Governance

Distribution Desk

Foreign InvestorsFamily Offices Companies Financial Institutions

Local and Foreign Investors


Individuals Asset Managers Pension Funds

PillarsA strategy supported by solid bases, built and achieved over the years.

Strong and motivated teamAdequate capital structureMeritocracyIncentivesQualification

US$125 million subordinated debt, approved by the Brazilian Central Bank as Tier II capital in June/10Regulatory Capital: R$ 1.1 billion (Jun/11)Capital Adequacy Ratio (BIS) of 16.6% (Jun/11)DEG and PINE partnership (Mar/11)G p p ( )

Corporate clientsCustomized serviceIn-depth knowledge of client needs

Efficient funding structureLonger average maturities: 19 months (Jun/11)Greater diversification of funding sources

Product diversity USD 106 million A/B Loan (Jan/11)R$ 300 million FIDC (Apr/11)


Highligths and Results

2Q11 HighlightsMajor KPIs showed improvement in 2Q11...

Corporate Credit (R$ Million)

7.9%

* Total Funding(R$ Million)

6.1%

Corporate Net Income (R$ Million)

11.0%

5,792 6,249

5,447 5,780 35.4 39.3

Mar-11 Jun-11 Mar-11 Jun-11 1Q11 2Q11Mar-11 Jun-11(*) Includes debentures

Mar-11 Jun-11 1Q11 2Q11

Net Income (R$ Million)

14 7%

ROAE

210 bps

Corporate ROAE

180 bps14,7% 210 bps 180 bps

31.5 36.1

15.2%

17.3%

17.2%

19.0%


1Q11 2Q11 1Q11 2Q11 1Q11 2Q11

Product and Revenue Diversification ... with contributions from all business lines, resulting from the strategy of providing complete service to clients.

Corporate Revenues Growth Penetration Ratio - Clients with more than one Product

R$ Million

174.4199.2

225.52.6

2.8

.

Jun-09 Jun-10 Jun-11

2.3

Jun-09 Jun-10 Jun-11

Corporate Income Breakdown1H10 1H11

Corporate Credit71 6%

PINE Investimentos

2.7%

Corporate Credit63.5%

PINE Investimentos

5.5%

71.6%

Hedging Desk

Treasury7.4% Treasury

3.3%


Hedging Desk 18.4%

Hedging Desk 27.7%

Credit PortfolioCredit portfolio growth remained positive, posting 7.9% growth for the quarter...

6 249

558

534 601 751

-

-71

97 Corporate Credit Breakdown (R$ Million)

Private Securities*

4 462

4,794

5,265

5,7475,792

6,249

Corporate credit portfolio grew 30.3% in 12 months.

242 455

629 833

871 902

511 634

842

827

1,022 1,117 1,372

695

728 764

705

--

--

-

Trade finance

Bank Guarantees

3,068

3,416

4,1184,462

1 964 2,284

2,703 2,821 2,792 3,251 3,358 3,132 3,126

68 87

176 242 455

292

350 744

Onlendings

(*) Includes debentures Total Credit Portfolio (R$ Million)

1,964

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

Working Capital

( )

8 01

016

022

,439

Total Credit Portfolio (R$ Million)

Increase of the corporateloan portfolio, whichrepresents 98% of the totalcredit portfolio.

3,89

3

4,08

9

4,73

1

4,96

0

5,18

8

5,60 6,0

6,0 6,


(**) Includes corporate credit, debentures, remaining payroll-deductible loans and credit acquired from financial institutions


Credit Portfolio Profile - Corporate... growing in a diversified manner, both in sectors and products...

Mid-West12%

North2%

C di P f li b S

Geographic Distribution

Northeast5%

12%Credit Portfolio by Sector

Infrastructure8%

Transportation and Logistics

6%

Meat packing5% Foreign Trade

5%

Financial

Southeast72%

South 9%

l

Construction8%

Financial Institutions

4%

Metal and Mining4%

Bank

Trade finance11 9%

Credit Portfolio by Product

Electric and

Agriculture9%

Telecom3%

Specialized Services Bank

Guarantees22.0%

11.9% Private Securities*

1.6%

2770 Resolution

0.2%Sugar and Ethanol

Electric and Renewable

Energy9%

Services3%

Vehicles and Parts3%

Pharmaceutical

BNDES Onlendings

14.4%

16%Pharmaceutical and Cosmetic

2%Other15%


Working Capital50.0%

(*) Includes debentures

Credit Portfolio Quality... with quality, collateral and credit coverage.

Credit Portfolio Quality – June 2011 Non Performing Loans

B23.2%

Contracts Overdue

Instalments Overdue

C5.7% 1.

1%

9%

AA-A67.8%

D-E1.4%

F-H1.9%

0.

0.5%

0.5%

0.4%

0.4%

0.3%

0.2%

0.2%

0.2%

0.1%

0.1%

Total Credit Coverage Collaterals

More than 15 days

More than 30 days

More than 60 days

More than 90 days

More than 120 days

More than 180 days

94 b

Receivables38%Property

Pledge16%

94 bps4 bps

Products PledgeInvestments

1.76%

2.66% 2.70%


40%6%

Jun-10 Mar-10 Jun-11

FundingFunding is growing with quality and diversity...

Funding Mix( R$ Million) Private Placements

5 589 5 4475,780

413 377

435 596 192

152 125

92

230 227

200 160

282

267

75 276 203

194 194 201

220

77 87 151

166 179 172

102 Capital Market

Multilateral Lines

Loan Assignments

5,5895,375

4,8714,6344,531

3,8523 674

5,447

91 85 175

198 214 218

212

39 50 36

46 42 41

53

206 248 201

224 320 272

209

176 242 453

626 829

867 898

527

525 448

405

650 529

419 330 249

247 225

230 239

116 108 78 72

Trade Finance

BNDES

Interbank deposits

,3,674

6 6 1 654 1 720 1 845 807

840

1,123 1,064 1,124 1,463 1,559 1,114

1,287

88

89

85

77

63 84

85 68

87 596

527

Demand deposits

Individuals

Corporate Clients

861 1,225

1,570 1,566 1,646 1,654 1,564 1,720 1,845


Corporate Clients

Institutional

Foreign Funding – Multilateral Agencies

A/B Loan (January, 2011)


US$106.0 Million

Funding and Credit Portfolio Maturities ... posting a 4 month positive gap between credit and funding,

R$ million

Credit Funding

2,61

6

9 6

-

1,71

9

1,23

5

384

186

53

1,41

2

1,78

6

1,38

0

555

395

No Maturity Up to 3 months

(includes Cash)

From 3 to 12 months

From 1 to 3 years

From 3 to 5 years

More than 5 years

Average Maturity

Credit: 15 months


Funding: 19 months

Capital Adequacy Ratio (BIS)... while the BIS ratio remained at a comfortable level.

0 6%

BIS Tier II Tier I

19.3%17.2%

15 6% 18 4% 17 4%

11% MinimumRegulatoty Capital

0.6%

0.5%0.5% 0.5% 3.9% 3.6%

3.6% 3.7% 3.4%

15.6%14.9%

18.5% 18.4% 17.4%17.1% 16.6%

18.7%16.7% 15.1% 14.4% 14.6% 14.8% 13.8% 13.4% 13.2%


BIS R ti Equity (R$ Thousand)

BIS Ratio

(%)

Tier I 907,057 13.2%

Tier II 230,523 3.4%

BIS 1,137,580 16.6%


Balance Sheet Strength and ProfitabilityIn summary, PINE shows profitability and buffers of liquidity, capital and credit portfolio coverage.

ROAE Total Loan Credit Coverage Ratio

5%

16.3

%

15.9

%

45%

.66%

2.70

%

10.

1H09 1H10 1H11

1.76

%

1.74

% 2.4 2 2

Capital Cash/Time Deposits DEG Regulatory Capital 11% Minimum Regulatoty Capital

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

0.7%

17,3%17.3%

18.5

%

18.4

%

17.4

%

17.1

%

16.6

%

43%40%

43% 42% 42%


Jun-10 Sep-10 Dec-10 Mar-11 Jun-11Jun-10 Sep-10 Dec-09 Mar-11 Jun-11

Corporate Governance and Shares

Organizational StructureIn line with the strategy of agility and proximity, PINE has a non-bureaucratic structure and flat hierarchy...hierarchy...

Board of Directors

Internal AuditorsTikara Yoneya

Internal AuditorsTikara Yoneya

External AuditorsPwC

External AuditorsPwC

Noberto Pinheiro Chairman

Noberto N. Pinheiro Jr.Vice Chairman

Maurizio MauroIndependent

Member

Fernando AlbinoExternal Member

Mailson da NóbregaIndependent

Member

Antonio HermannIndependent

Member

Fiscal Council

O ti l Ri kO ti l Ri k

Tikara YoneyaTikara Yoneya PwCPwC

Sidney VenezianiSérgio MachadoAlcindo Itikawa

Sidney VenezianiSérgio MachadoAlcindo Itikawa

Fiscal Council

CEONoberto N. Pinheiro Jr.

CEONoberto N. Pinheiro Jr.

Operational Risk& Compliance

Operational Risk& Compliance

PINE InvestimentosGustavo Junqueira

PINE InvestimentosGustavo Junqueira

Planning and ControlSusana Waldeck

Planning and ControlSusana Waldeck

Sales & TradingNorberto Zaiet Jr.Sales & Trading

Norberto Zaiet Jr.Origination

Clive BotelhoOrigination

Clive BotelhoCredit Risk & Analysis

Gabriela ChisteCredit Risk & Analysis

Gabriela ChisteOperations

Ulisses AlcantarillaOperations

Ulisses Alcantarillaqq

Corporate Credit• 14 origination

platforms• São Paulo• Campinas• Ribeirão Preto

Corporate Credit• Analysis and granting

of credit• Credit risk monitoring

and analysis by sector

Market and liquidity RisksHuman ResourcesAccountingControllingT Pl i

Investment Banking• Capital Markets• Corporate Finance• Distressed and

Special Situations

Investment

Corporate Processing and FormalizationLegal

TradingHedging Desk• Fixed Income• Currencies• Commodities

Local Distribution• São José do Rio Preto• Rio de Janeiro• Curitiba• Porto Alegre• Belo Horizonte• Recife• Fortaleza

Tax PlanningManagementAsset Management

Local DistributionInternational DistributionMacro and Commodities ResearchProductsInvestor Relations


Fortaleza

Human Resources: PINE Culture...and a team that is always prepared, motivated and ready to serve clients.

Principles of PINE Culture

Cooperative and high performance environment Close relationship between managers and employees

High School11%

Jun/11

Close relationship between managers and employees Integrated areas Organizational environment

Talent Management and Training

University55%

Elementary School

6%

g g Fostering ongoing development of employees Universidade PINE (PINE University): development activities and internal

training, with subsidies for languages courses, short courses, graduatecourses, MBAs and others

Specializations, Masters and Doctarates

28%

Meritocracy Culture based on meritocracy 100% eligible for profit sharing program Semiannual individual performance evaluation Semiannual individual performance evaluation

Your potential is our difference.


Corporate GovernancePINE adopts the best corporate governance practices…

Two independent members and one external member on the Board of DirectorsTwo independent members and one external member on the Board of DirectorsMailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo AbrilFernando Albino de Oliveira: Former Director of the CVM and a partner at Albino AdvogadosAssociadosAssociadosAntonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director ofBrazilian Banking Association

São Paulo Stock Exchange (BM&FBovespa) Level 1 Corporate GovernanceSão Paulo Stock Exchange (BM&FBovespa) Level 1 Corporate Governance

Fiscal Council

100% tag along rights for all shareholders including non-voting shares100% tag along rights for all shareholders, including non voting shares

Arbitration procedures for fast settlement of litigation cases

First bank to release BR GAAP and IFRS simultaneously and quarterlyFirst bank to release BR GAAP and IFRS simultaneously and quarterly


Committees…and encourages decisions made by committees, effectively contributing to the success of business.

Key decisions are made by committees: Board of Directors and a structure of specific committees

Non-stop exchange of knowledge and information

Board ofBoard of

Non-stop exchange of knowledge and information

Transparency

Board ofDirectorsBoard ofDirectors

Fiscal CouncilFiscal Council

PwCPwC

ExecutiveCommitteeExecutiveCommittee

TreasuryCommittee

(ALCO)

TreasuryCommittee

(ALCO)

ProductsCommitteeProducts

CommitteeCredit

CommitteeCredit

Committee

Internal Controls and

Audit

Internal Controls and

Audit DelinquencyCommittee

DelinquencyCommittee

Corporate Finance

Committee

Corporate Finance

Committee(ALCO)(ALCO) CommitteeCommitteeCommitteeCommittee

Cayman Committee

Cayman Committee

PerformanceEvaluationCommittee

PerformanceEvaluationCommittee

EthicsCommittee

EthicsCommittee

ITCommittee

ITCommittee

HumanResourcesCommittee

HumanResourcesCommittee

Risks Committee

Risks Committee


Shareholders’ StructureFree float of 25.6%.

Base 07/29/11

C P f d T t l %Common Preferred Total %

Controlling Shareholder 45,443,872 14,370,556 59,814,428 71.2%

Management - 2,737,946 2,737,946 3.3%

Free Float - 21,481,892 21,481,892 25.6%

Individuals 4 581 823 4 581 823 5 5%Individuals - 4,581,823 4,581,823 5.5%

Institutional Investors - 7,651,642 7,651,642 9.1%

Foreign Investors - 9,248,427 9,248,427 11.0%

Total 45,443,872 38,590,394 84,034,266

Market Maker

In January 2011, XP Investimentos was hired as a Market Maker to increase PINE4’sliquidity in the marketliquidity in the market.


PINE4Banco PINE pays dividends/interest on own capital on a quarterly basis and has shown an historical above-market dividend yield.above market dividend yield.

Indicators

P/E: 5.65P/BV: 0.95Price: R$ 10.11

Dividend Yield Dividends and Interest on Own Capital (R$ Million)

8.9%

4.6%5.7%

6.9% 7.1%5.8%

7.8%

16

25 25

33

45

30 35

40 35


PINE Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6

Sources: Bloomberg, Economática and Banco Pine’s Investor Relations Department – Quotes as of 08/23/2011

1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11

Other Highligths

1H11 Events and HighlightsAll pillars resulted in market recognition...

PINE was ranked the 14th largest bank in Brazil in corporate credit and among the 12 largest banks in credit forlarge corporations, according to the Maiores e Melhores (Biggest & Best) ranking compiled by Exame magazine.

PINE was ranked the 15th largest bank in Cetip’s overall derivatives ranking, and the 4th largest in commoditieshedging for clients.

On April 6th, PINE’s corporate credit FIDC transaction was successfully completed. The amount of thetransaction was R$ 300 million, with a AA+ rating attributed by S&P.

PINE was considered, for the second consecutive year, the best, y ,commercial bank in Brazil by the World Finance Banking Awards. Theaward was created by British magazine World Finance. Some of themost important criteria were: solutions for clients and optimizationof relationships, innovation and flexibility, and staying ahead of thecompetition

PINE was considered “The Most Green Bank” by International FinanceCorporation’s (IFC) private programs agency of the World Bank This

competition.

Corporation s (IFC) private programs agency of the World Bank. Thiswas due to its Global Trade Finance Program (GTFP) transactions andits Corporate Loans to companies focused on renewable energy andthe ethanol market .


PINE's Ratings Upgraded by S&P and Austin... and werereflected in rating agencies evaluations.

On August 23, Standard & Poor’s upgraded PINE’s ratings as follow:

Local currency from brA- to brAForeign currency BB-/B rating affirmedRevised outlook review to positive

According to the agency, PINE has been successful in implementing its strategy of being a dedicated lowcorporate segment bank, diversifying its revenues and funding sources and maintaining good asset qualityand adequate liquidity. S&P could raise the ratings if PINE continues expanding and improving itsprofitability while maintaining its liquidity and asset quality at current levels.

On July 13, Austin Ratings upgraded PINE’s ratings as follow:

Long-term rating from A to A+Short-term A-2 rating affirmed

A di t th “th ti d i t d b th l f th b k’ b lAccording to the agency, “the rating upgrade is supported by the lower exposure of the bank’s balancesheet and earnings to to exogenous sector and regulatory factors.” Austin also emphasizes that “the bankhas remained consistent with the strategy established, with a well-defined focus, aimed at increasing crossselling.”


Social ResponsibilityBanco PINE supports and promotes Brazilian culture

SocialCasa HopeInstituto Alfabetização Solidária

CultureDiário de Navegação: discusses the early yearsof the occupation of the Brazilian coast byPortuguese colonizers

Instituto Casa da ProvidênciaHospital Pequeno PríncipeGRAACC - Grupo de Apoio ao Adolescente e à Criança com CâncerColégio Mão Amiga

Paulo von Poser: exhibit of the painter Paulovon Poser, who is one of the main figures inBrazilian artTeatro Cultura Artística: it is one of thesponsors of a project to renovate the CulturaArtística TheaterColégio Mão Amiga

SportsMinas Tênis Clube: training program forthl t

Artística TheaterQuebrando o Tabu: documentary based onanalysis by the former President of Brazil,Fernando Henrique Cardoso, on the fight againstdrugsAlém da Estrada: motion picture which receivedathletes

Tênis Sobre Rodas: a project conducted bythe Brilho Brasileiro Institute founded bytennis player Vanessa Menga, which benefits 80disabled tennis players

Além da Estrada: motion picture which receivedthe award for best director at the 2010 RioFestival

Responsible Credit

Green Building

“Lists of Exceptions:” the Bank does not financeprojects or organizations that harm theenvironment, use illegal labor practices, orproduce, sell or use products, substances oractivities considered prejudicial to society.

System of environmental monitoring, financed bythe IADB and coordinated by FGV, and internally-produced sustainability reports for corporateloans.


Appendices

Ratings

Fitch RatingsFitch Ratings LF RatingLF Rating AustinAustinRiskbankRiskbankMoody’sMoody’s Standard & Poor's

Standard & Poor's

nd

Fo

reig

n

rren

cy

Long Term Ba2 BB- BB- - - -

Short Term B B-

- -

Lo

cal an

Cu

r

Long Term Ba2 BB- BB- - - -

Short Term B B-

- -

Bra

zil

Nati

on

al

Sca

le Long Term A1.br brA A(bra) 10.48Low Risk for the Medium Term (-)

A+ A+

Short Term Br-1 F1(bra)


Key Performance Indicators

2Q11 1Q11 2Q10 1H11 1H10

Earnings and Returns

Net Income (R$ thousand) 36,084 31,450 35,605 67,534 65,776

Annualized ROAE 17.3% 15.2% 17.9% 15.9% 16.3%Annualized ROAE 17.3% 15.2% 17.9% 15.9% 16.3%

Annualized ROAAw 1 2.5% 2.3% 2.9% 2.4% 2.7%

Annualized financial margin before provision 6.4% 6.4% 7.7% 6.1% 6.9%

Annualized financial mergin after provision 5.7% 5.5% 7.0% 5.3% 6.5%

Balance Sheet (R$ thousand)Balance Sheet (R$ thousand)

Total credit portfolio 2 6,439,157 6,022,018 5,187,902 6,439,157 5,187,902

Corporate credit and private securities 3 6,248,697 5,792,235 4,794,092 6,248,697 4,794,092

Risk weighted assets 6,026,322 5,650,198 5,045,471 6,026,322 5,045,471

Total deposits 4 3,605,498 3,364,504 3,183,043 3,605,498 3,183,043

Total funding 5 780 490 5 446 978 4 870 598 5 780 490 4 870 598Total funding 5,780,490 5,446,978 4,870,598 5,780,490 4,870,598

Shareholders' equity 892,700 878,549 853,300 892,700 853,300

Credit portfolio quality

Non performing loans - 15 days 0.3% 0.7% 0.7% 0.3% 0.7%

N f i L 60 d 0 2% 0 4% 0 6% 0 2% 0 6%Non performing Loans - 60 days 0.2% 0.4% 0.6% 0.2% 0.6%

Non performing loans - 90 days 0.2% 0.3% 0.6% 0.2% 0.6%

Credit coverage 2.7% 2.7% 1.8% 2.7% 1.8%

Performance

BIS ratio 16.6% 17.1% 18.5% 16.6% 18.5%

Efficiency ratio 39.9% 38.9% 33.5% 39.5% 36.2%

Earnings per share (R$) 0.43 0.37 0.43 0.80 0.79

Book value per share (R$) 10.62 10.45 10.24 10.62 10.24 (1) Risk weighted assets.(2) Includes bank guarantees and debentures.


(3) Includes bank guarantees.(4) Includes Agribusiness Letter o f Credit.

Investor Relations

Norberto Zaiet Junior

CFOCFO

Nira Bessler

Head of Investor Relations

Alexandre Cavalcanti

Investor Relations Manager

Alejandra Hidalgo

Investor Relations Analyst

Phone: +55-11-3372-5553

b i b /iwww.bancopine.com.br/ir

[email protected]


This presentation contains forward-looking statements related to business prospects, estimates for operating and financial results, and estimates related to prospects for growth at Banco Pine. These aremerely projections and as such are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’sbusiness plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy andthe industry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents, and are, therefore, subject to change without prior notice.

2011 Investors' Meeting Presentation - São Paulo

Economy & Finance

brazil banco central

credit portfolio

solid credit ratings

nelson pinheiro

banking sector

niche market of companies

dedicated bank

primary business lines