BANCO PINE S.A. 2013-02-25 T-18:45

(Convenience translation into English from the Original previously issued in Portuguese)

Individual and Consolidated Financial Statements under BRGAAP for the years ended
December 31, 2012 and 2011, for the Six-Months ended December 31, 2012 and the
Independent Auditor”s Report.

Banco Pine S.A.

PricewaterhouseCoopers Independent Auditors

(A free translation of the original in Portuguese)

Independent Auditor’s Report

To the Board of Directors and Stockholders
Banco Pine S.A.

We have audited the accompanying financial statements of Banco Pine S.A. (the “Institution”) standing
alone, which comprise the balance sheet as at December 31, 2012 and the statements of operations,
changes in equity and cash flows for the year and six-month period then ended, as well as the
accompanying consolidated financial statements of Banco Pine S.A. and its subsidiaries
(“Consolidated”), which comprise the consolidated balance sheet as at December 31, 2012, and the
consolidated statements of operations, changes in equity and cash flows for the year and six-month
period then ended, and a summary of significant accounting policies and other explanatory
information.

Managements responsibility for the
consolidated financial statements

Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate
by the Brazilian Central Bank (BACEN), and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Brazilian and International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
Institution’s preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Institution’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

Banco Pine S.A.
our audit opinion.
Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of
Banco Pine S.A. standing alone and of Banco Pine S.A. and its subsidiaries as at December 31, 2012,
and the Institution’s financial performance and cash flows, as well as the consolidated financial
performance and cash flows, for the year and six-month period then ended, in accordance with
accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian
Central Bank (BACEN).

Other matters
Statement of value added

We have also audited the Institution’s and the consolidated statements of value added for the year and
six-month period then ended December 31, 2012, prepared under management’s responsibility, the
presentation of which is required by Brazilian corporate legislation for listed companies. These
statements were subjected to the same audit procedures described above and, in our opinion, are fairly
presented, in all material respects, in relation to the financial statements taken as a whole.

Sáo Paulo, February 6, 2013

PricewaterhouseCoopers
Auditores Independentes
CRC 28Po00160/0-5

Edison Arisa Pereira
Contador CRC 18P127241/0-0

PINE

BANCO PINE S/A
Corporate Taxpayer ID (CNPJ) 62.144.175/0001-20
Publicly-held Company
Company Registry (NIRE): 35300525515

SUMMARY OF THE AUDIT COMMITTEE REPORT
FOR THE YEAR ENDED DECEMBER 31, 2012

The Audit Committee of Banco Pine S/A and its subsidiaries were established in March
2012, in compliance with the regulations set forth by the Central Bank of Brazil (Bacen)
and the Brazilian Securities and Exchange Commission (CVM).

As determined by the Bylaws of Banco Pine S/A and its Internal Regulations (available
at the website www.pine.com/ir), the Committee is incumbent upon to ensure (1) the
quality and integrity of financial statements; (ii) the compliance with legal and
regulatory requirements; (iii) the activities, independence and quality of the independent
audit firm’s works; (iv) the activities, independence and quality of the Internal Audit’s
works; and (v) the quality and effectiveness of internal and risk management controls.

The Management is responsible for the preparation of the financial statements of Banco
Pine S/A and Banco Pine S/A and its subsidiaries – (“Consolidated”) in accordance with
Brazilian accounting practices applicable to institutions whose operations are authorized
by Bacen. The Management is also responsible for (i) establishing procedures that
ensure the quality of information and processes used in the preparation of the financial
statements, (ii) managing PINE”s operation risks and (i1i) supervising internal control
and compliance activities.

Independent Audit is responsible for examining the financial statements and issuing the
report on their adequacy, in all material respects, in accordance with Brazilian
accounting practices applicable to institutions whose operations are authorized by
Bacen, as per the Brazilian Corporate Law and the rules set forth by the National
Monetary Council (CMN) and the Bacen.

Internal audit’s activities focus on the assessment of the efficiency and effectiveness of
internal and risk management controls and the compliance of processes with
Management ‘s rules and procedures.

The Committee”s activities during 2012:

The Committee held 13 meetings with Banco Pine S/A and its subsidiaries (“PINE”)
core areas, including business, credit, internal control and compliance, risk
management, operations, controllership, accounting and information technology areas.

The Audit Committee”s 2012 Work Plan consisted of organizing Committee”s activities,
due to its implementation in March, as well as supervising the operations, processes and
systems inherent to PINE”s business.

Special meetings were held with the independent audit firm and the Internal Audit to
discuss the annual plan and its implementation, as well as to monitor actions established
by Management concerning audit’s findings.

PINE

As a result of these meetings, the Committee had the opportunity to give the Board of
Directors suggestions to improve controls and risk management, in addition to
monitoring their effective implementation within the established terms.

Internal Control Systems:

According to schedule and work plan for the year ended December 31, 2012, the
Committee was informed on PINE”s control and information processes, methods and
system, and then assessed their quality and the managers” commitment with their
monitoring and improvement.

All Organization”s main activities, including those exercised by other companies (key
third parties), were analyzed. Thus, related risks were identified, and controls were used
to reduce them at an adequate management level. Such mapping, risks and controls are
recorded in an electronic data system acquired from a renowned and specialized
consulting firm.

Based on information collected during the meetings, the Committee considers that the
internal control systems are consistent with PINE”s size and operation complexity,
which contributes to business efficiency, adequacy of financial reporting and
compliance with standards and regulations applicable to its transactions.

Consolidated Risk Management:

PINE”s Risk Management is conducted on a consolidated basis by the Chief Risk
Officer, comprising the main risks regulated by Bacen, namely Credit Risk, Market
Risk, Liquidity Risk and Operational Risk.

At work meetings with the Risk Management unit, the Committee was informed on the
processes, method, systems and main reports used to manage Market, Liquidity, Credit
and Operational Risks, including the activities of a specific risk committee. The Report
on Risk Management activities during 2012 was also discussed and approved by the
Committee.

Independent Auditor:

The Committee and the Independent Audit – PricewaterhouseCoopers (PwC) – held
meetings to approve the Quarterly Financial Information (ITR) and the Half-Year and
Annual Financial Statements. These meetings also discussed the Audit Annual Plan, and
the compliance with Audit”s Independence Policy was verified.

Recommendations from reports on internal controls were presented and discussed in the
Committee, which, jointly with the Internal Audit and respective areas, established
action plans to put them into practice. No weaknesses concerning the compliance with
the law, regulations and internal rules that may jeopardize the Organizations business
were found. The Committee considers that the Independent Auditor”s planning and
works are consistent with PINE”s size and operation complexity.

Internal Audit

The Committee approved the Internal Audit structure and its Annual Plan-which
comprise all Organizations operations, risks and processes-, monitoring the
implementation of the Plan at its meetings. The permanent attendance of the Internal
Audit at the Committee”s meetings enables the necessary support to activities and
compliance with requirements.

PINE

The Internal Audit is also responsible for meeting the regulatory agencies”
requirements, presenting and discussing these agencies” reports and requirements at
meetings with the Committee.

Consolidated Financial Statements:

The Committee assessed the processes for preparation of financial information, parent
company and consolidated statements of financial position, financial reports and notes
to the financial statements. It discussed with PwC and the Organization”s officers the
relevant practices used in the preparation of the financial statements in accordance with
Brazilian accounting practices applicable to institutions whose operations are authorized
by Bacen.

Conclusion

After due consideration of its responsibilities and inherent limitations deriving from the
scope of its works, the Audit Committee recommends that the Board of Directors
approve the financial statements of Banco Pine S/A and Banco Pine S/A and its
subsidiaries – Consolidated for the year ended December 31, 2012.

Sáo Paulo, February 6, 2013

Maurízio Mauro
Chairman of the Audit Committee
Independent Member of the Board of Directors

William Pereira Pinto
Specialist Member

Tadeu Machado Zica
Member Representing Non-controlling Shareholder

(This is a free translation of the original in Portuguese.)

BANCO PINE S.A.
Public Company
CNPJ 62.144.175/0001-20

STATEMENT OF THE MANAGEMENT ON FINANCIAL STATEMENTS

A PINE

After the Companys Financial Statements analysis, related to the period ended on December 31, 2012,
accompanied by the Management Report, the balance sheet, other parts of the Financial Statements, the
Independent Auditors Report and the Audit Committee Report (“Financial Statements”), the members of
the Executive Management, pursuant to the Article 25, Paragraph 1, section VI, of the CVM Instruction
n*480, from February 7, 2009, DECLARE THAT the Financial Statements were discussed, revised and

agreed.

Members of the Executive Management

Noberto Nogueira Pinheiro Junior
Alexandre Eduardo Vasarhelyi
Gabriela Redonda Chiste
Harumi Susana Ueta Waldeck
Norberto Zaiet Junior
Sergio Luis Patricio
Ulisses Marcio Alcantarilla
Angela Maria Lellis Martins
Gustavo Gierum
Rodrigo Esteves Pinheiro
Marco Antonio de Paulo Maciel
Welinton Gesteira Souza
Jefferson Dias Micelli
Paulo Augusto Luz Ferreira Saba
Luiz Eduardo Marinho da Silva Oliveira
Paulo Roberto Schiavon de Andrade
Joáo Vicente Peregrino de Brito

(This is a free translation of the original in Portuguese.)

Investor Relations

Sáo Paulo, February 6, 2013.

BANCO PINE S.A.
Public Company
CNPJ 62.144.175/0001-20

STATEMENT OF THE MANAGEMENT ON THE INDEPENDENT AUDITORS REPORT

A PINE

After the Companys Financial Statements analysis, related to the period ended on December 31, 2012,
accompanied by the Management Report, the balance sheet, other parts of the Financial Statements, the
Independent Auditors Report and the Audit Committee Report, the members of the Executive
Management, pursuant to the Article 25, Paragraph 1, section V, of the CVM Instruction n%480, from
February 7, 2009, DECLARE THAT the opinion expressed in the Independent Auditors Report was discussed,

revised and agreed.

Members of the Executive Management

Noberto Nogueira Pinheiro Junior
Alexandre Eduardo Vasarhelyi
Gabriela Redonda Chiste
Harumi Susana Ueta Waldeck
Norberto Zaiet Junior
Sergio Luis Patricio
Ulisses Marcio Alcantarilla
Angela Maria Lellis Martins
Gustavo Gierum
Rodrigo Esteves Pinheiro
Marco Antonio de Paulo Maciel
Welinton Gesteira Souza
Jefferson Dias Micelli
Paulo Augusto Luz Ferreira Saba
Luiz Eduardo Marinho da Silva Oliveira
Paulo Roberto Schiavon de Andrade
Joáo Vicente Peregrino de Brito

(This is a free translation of the original in Portuguese.)

Investor Relations

Sáo Paulo, February 6, 2013.

A PINE

MANAGEMENT REPORT
PINE – 2012

Dear Shareholders,

PINE”s Management, in accordance with the law, presents the material facts and relevant events of the year thus far
for your appreciation. This report includes the Individual and Consolidated Financial Statements for the twelve-month
period ended December 31, 2012.

1- MESSAGE FROM THE MANAGEMENT
Dear shareholders, investors, clients, and analysts,

2012 witnessed another year of important achievements and excellent results. We celebrated the gh anniversary of our IPO
and the fifteenth anniversary of the Bank. It was a superior year in terms of PINE’s individual and relative performance. It
has been five years of a solidly grounded strategy, with continuous investments in the complete and long-term coverage of
our corporate clients and investors, in the Bank’s product portfolio and in human capital. As a result, we continued to
successfully reap the benefits of our consolidated strategy. Our shareholders’ equity exceeded R$1.2 billion, while net
income surpassed R$187 million, which represents a ROAE of approximately 17%

An important milestone in 2012 was the capital increase, divided into two phases. It was in excess of R$170 million, thanks to
the participation of DEG, Proparco, management, minority shareholders, and the controlling shareholder. This capital
increase represents not only the commitment of PINE’s shareholders and management to its fundamentals, but also the
belief that the growth strategy is sustainable.

On the funding side, in the first half of the year, we carried out our first public offering of financial bills, totaling R$313
million, and in the second half we issued a further R$200 million. In the third quarter we raised a R$30 million with a 7-year
term through the Global Climate Partnership Fund (GCPF), managed by Deutsche Bank. GCPF is a public-private partnership
dedicated to mitigating climate change in emerging and developing markets. The cooperation with GCPF is in line with PINE’s
strategy to contribute to the sustainable economic growth in Brazil, especially in the areas of sustainable energy,
infrastructure and agribusiness. In December, we concluded our first funding transaction in Chile, under the modality
denominated Huaso Bond, in the total of approximately US$73 million. This was the first funding transaction of ¡ts kind to be
carried out in the Chilean market by a non Spanish speaking entity. Yet during the 4Q12, we concluded our second funding
transaction with Al Rajhi Bank, also with the participation of Commerzbank, JP Morgan, and Citigroup.

Our corporate loan portfolio is currently more diversified, with a wider range of products, beyond the traditional working
capital transactions, strengthening even more our cross sell strategy. Derivative products for clients grew substantially and
we were once again ranked among the 15 largest players in derivatives and the second largest in commodity derivatives for
clients according to Cetip. Through PINE Investimentos, we carried out transactions in the capital market, financial advisory,
MáA, project and structured finance areas. Our fixed-income underwriting transactions exceeded R$1 billion, and, as a
result, PINE was ranked 9′ in number of transactions and 11% in financial volume, based on the fixed income origination
ranks by Anbima.

In March, we migrated to the BMSFBOVESPA’s corporate governance level 2 listing segment. This transition reflects PINE’s
commitment to transparency, creating value for ¡ts stakeholders, and was a natural step, as the Bank already met many of
this segment’s requirements.

In October PINE joined the Global Compact, a UN initiative designed to mobilize the corporate community to adopt values
related to human rights, work relations, environment and corruption prevention in ¡ts business practices. In December we
adhered to the Equator Principles, which apply to project finance transactions in excess of US$10 million. These principles
are based on health, safety and environmental guidelines. We are the first and only bank of our size to adhere to the Equator
Principles.

In November we opened our first U.S. subsidiary, PINE Securities USA LLC, a subsidiary dedicated to capital markets and
research. PINE’s geographical scope expansion will provide more accurate information on the Brazilian market to foreign
clients and ease the access of Brazilian corporate clients to global investors. This is another of PINE’s initiatives geared
towards the offer of a complete service portfolio and the building of long-term ties with clients, investors and the market in
general.

The bank’s continuous growth was reflected in improved ratings and market recognition. The International Finance
Corporation (IFC), the World Bank’s agency for private programs, recognized PINE as the best issuer of transactions focused
on energy efficiency. In August Moody’s upgraded PINE’s outlook to positive. According to the agency, the positive outlook
reflects its growing franchise and profitability through a well-executed strategy, which has ensured earnings recurrence. The
rating action also captures the bank’s improved funding diversification, well managed asset quality metrics and good liquidity
and capital management.

We are proud of our achievements in 2012 and began 2013 optimistic, expecting a positive recovery of the global economy,
with the maintenance of the growth rates in Asia, a positive resolution to the European region and growth acceleration in the
North American and Brazilian economies. We will continue to invest in the full coverage of our clients and in our team,
increasing the portfolio of products and services and maintaining very close relationships with each one of them.

1

A PINE

2- PERIOD HIGHLIGHTS

Total Credit Risk! i
Total Funding Shareholders’ Equity
12.5% 7.9%
ss 2 20.2%
7,062
6,544 , 1,220
7,065 7,948 xx ,
1,015
Dec-11 Dec-12 Dec-11 Dec-12 Dec-11 Dec-12
Fee Income Net Income ROAE
96.7% 15.4% _
. 70 bps
17.9%?
162
187
120 17.2% 16.8%
61
2011 2012 2011 2012 2011 2012

1 Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, DRIs, eurobonds and fund shares)

2 Excludes capital increase of R$139.6 million incorporated into shareholders equity in September 2012

3- CORPORATE PROFILE

PINE is a wholesale bank focused on long-term relationships with large companies. The bank offers Credit, including
Working Capital, Onlending lines from BNDES and Multilateral Organizations, Trade Finance, Bank Guarantees, as well
as hedging products (Fixed Income, Currencies, and Commodities), Capital Markets, Financial Advisory Services and
Project € Structured Finance.

PINE has a broad client relationship network in various industries, such as sugar and ethanol, infrastructure, electric
and renewable energy, agriculture, and others.

4- PERFORMANCE

Result Highlights

With the capital increase announced in August, PINE surpassed R$1.2 billion in Shareholders’ Equity, 20.2% higher
when compared to December 2011. Annualized Return on Average Equity (ROAE) ended 2012 at 16.8% Net income for
the year was R$187 million, a 15.4% YoY increase.

A PINE

2012 2011 A%
Earnings and Profitability
Net Income (R$ millions) 187 162 15.4%
Annualized ROAE 16.8% 17.2% -40 bps
Balance Sheet (R$ millions)
Total assets 10,406 11,144 -6.6%
Loan Portfolio? 7,948 7,065 12.5%
Total deposits? 3,716 3,794 -2.1%
Funding 7,062 6,544 7.9%
Shareholders’ equity 1,220 1,015 20.2%
Credit portfolio quality
Non performing loans – 90 days 0.6% 0.2% 40 bps
Credit coverage 3.3% 3.4% -10 bps
Performance
BIS ratio 16.2% 18.5% -230 bps
Earnings per share? (R$) 1.73 1.87 -7.5%
Book value per share? (R$) 11.23 11.72 -4.2%

Uncludes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities
(bonds, CRIs, eurobonds and fund shares)

2 Includes Agribusiness and Real Estate Letters of Credit

3 It considers 108,631,00 stocks for 2012 and 86,577,870 stocks for 2011

Loan Portfolio

Total credit risk, which includes Letters of Credit, Bank Guarantees, Negotiable Instruments Receivable and Private
Securities, reached R$7,948 million in December 2012, increasing 12.5% YoY. We highlight the bank guarantees’
growth, which was positively impacted by the inclusion of the new product “Fianca BNDES”, offered to PINE clients
since September 2012, with a 25.3%growth in the year, surpassing R$2,114 million.

The Loan Portfolio Coverage Ratio was 3.3%in December 2012, compared to 3.4%in December 2011.
FICC

FICC (Fixed Income, Commodities and Currencies) business provides risk management products and hedging solutions
on interest rates, currencies, and commodities to help clients manage the risks on their balance sheets. The key
markets in this business line are Fixed Income, Currencies, and Commodities. PINE offers to its clients the main
derivative instruments, which include non-deliverable forwards (NDFs), swaps and some options-based structures.

According to the ranking compiled by CETIP – OTC Clearing House (CETIP) published in December 2012, PINE ¡is one of
the 15 largest players in derivative transactions for clients and the 2″* largest player in commodities derivatives
transactions for clients. Since 2011, PINE presents prominent position in this ranking.

PINE Investimentos

PINE Investimentos, the Bank’s Investment Banking unit, works closely with its clients to offer customized and unique
solutions in the Capital Markets, Financial Advisory, and Project €: Structured Finance areas.

In 2012, PINE Investimentos led and structured more than R$1.0 billion in fixed income transactions, through ¡ts
different areas of expertise. The transaction volume increased 21.5% compared to 2011. During 2012, PINE
Investimentos posted recurring results and executed transactions in Capital Markets, Project Finance and MEA,
consolidating its strategy. In December, PINE ranked 9!” in origination by number of transactions and 11*” by financial
volume, according to the Brazilian Financial and Capital Markets Association (Anbima).

Funding

Total funding stood at R$7,062 million in December 2012, increasing 7.9% from December 2011. The balance of time
deposits, including Agribusiness Credit Notes (LCA) and Real Estate Credit Notes (LCI), reached R$3,565 million, in line
with the same period of 2011. The average weighted term of deposits was 11 months, while the average term of
funding transactions was 17 months.

A PINE

On December 13, 2012, PINE concluded its first funding in Chile, under the modality denominated Huaso Bond. The
transaction amounted to UF1.5 million, roughly US$73 million, with a 5-year term. Celfin Capital and ] PMorgan acted
as book runners. This was the first funding transaction, under the Huaso Bond modality, issued a Brazilian company in
the Chilean market. Yet during the 4Q12, PINE concluded its 2″* Islamic format issuance with Al Rajhi Bank, also with
the participation of Commerzbank, JP Morgan, and Citigroup.

PINE maintains a conservative policy regarding its liquidity position. During the 4012, the deposits growth, the
financial bills and the Huaso Bond issuances raised PINE’s cash position to R$1.8 billion, equivalent to 50% of time
deposits. This position is above the policy of maintaining the cash position around 30%of the deposits.

In the international arena, PINE maintained ¡ts base of correspondent banks at around 60 institutions. These
institutions include banks in various countries and multilateral agencies such as DEG, Proparco, IFC, IDB and FMO.

Asset and Liability Management

In accordance with PINE’s asset and liability management, funding sources are aligned in terms of maturity and cost
with their respective credit transactions. While the weighted average maturity of the loan portfolio is 14 months, the
funding period is 17 months, which ensures a comfortable situation for the Bank. This positive liquidity gap has been
maintained for over 30 months.

Capital Adequacy Ratio (BIS)

In the quarter, the capital adequacy ratio (BIS) reached 16.2% well above the minimum rate required by the Brazilian
regulation (11%). The ratio includes the capital increase of R$139.6 million, which was incorporated into Shareholders’
Equity in September.

5- ORIGINATION NETWORK

Headquartered in Sáo Paulo, SP, with a presence in Brazil’s major cities and business capitals, Curitiba, Porto Alegre,
Recife, Fortaleza, Rio de Janeiro, Belo Horizonte, Campinas, Ribeiráo Preto, and Sáo José do Rio Preto. PINE’s
origination network is further complemented by its location in the Cayman Islands and New York. PINE’s business
strategy does not depend on an extensive branch network, since the team is organized regionally and the Bank
constantly monitors and visits its clients. This leads to substantial benefits in its fixed-cost structure.

6- HUMAN RESOURCES

PINE’s employees are its main asset. Therefore, the objective of the Human Resources department ¡is to attract,
retain and develop the best professionals, while maintaining a high-performance work environment focused on results
and based on meritocracy. PINE had 424 employees by the end of December 2012.

7- CORPORATE GOVERNANCE

PINE has active corporate governance policies, given its permanent commitment to shareholders and other
stakeholders. Besides integrating Level 2 of Corporate Governance of BMéFBovespa, some of PINE’s practices include:

Two independent members and one external member to the Board of Directors
100%tag-along rights for all shares, including preferred shares

Adoption of arbitration procedures for rapid settlement of disputes

Quarterly disclosure of earnings in two accounting standards: BR GAAP and IFRS
Compensation and Audit committees, which report directly to the Board of Directors

SUS

o

INTEREST ON EQUITY AND DIVIDENDS

On January 11, 2013, PINE paid a total of R$29.9 million as dividends and interest on own capital, which corresponds
to a gross payout per share of R$0.28. Of this total, R$16.1 million represents interest on own capital and R$13.8
million, dividends. During 2012, PINE distributed a total of R$60.2 million of interest on own capital and R$39.7
million of dividends, representing a dividend yield of 6.4% Since 2008, PINE has distributed Dividends/ Interest on own
capital quartely.

EN PINE

9- MARKET RECOGNITION

According to the “Melhores e Maiores” ranking compiled by Exame magazine, PINE is the 15* largest bank in Brazil
offering corporate credit, 9′ in credit to lager companies, and 5th in wealth generated per employee.

10- INVESTOR RELATIONS

PINE makes information available to shareholders via its corporate website (www. pine.com/ir), electronic bulletins,
and quarterly reports, as well as through its Investor Relations department (tel: +55-11-3372-5343, e-mail:
irepine.com).

11- SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

PINE knows that being socially and environmentally responsible means above all acting ethically in all areas and
contributing through its business to the economic development of society to assure that all resources are used
sustainably. Each year, PINE expands its social activities by increasing the number of projects it sponsors in the
cultural, sports, educational, and social areas.

Equator Principles

On December 11, 2012, PINE adopted the Equator Principles, which are principles applied to Project Finance
transactions in excess of US$10 million and are based on International Finance Corporation Performance Standards on
social and environmental sustainability and on the World Bank Group Environmental, Health, and Safety Guidelines
(EHS Guidelines).

12- RATINGS

STANDARD – FitchRatinges Moodys.com RISKbank:
¿POOR’S ma >

h-] ED Long Term BB+ BB Ba2

A E E Short Term B B

E E El Long Term B8+ 88 Ba2

5 Short Term B B
ki] Long Term brAA Abra) Al.br
E 10.49
E Short Term F1(bra) Br-1

13- PINE STOCK (PINE4)

In 4012, PINE repurchased 600,000 of ¡ts own shares. These shares are currently held in treasury and will be used as
compensation for executive officers, in accordance with Brazilian Monetary Council Resolution 3,921. At the end of
the quarter, the total amount held in treasury was 994,840 shares.

14- EXTERNAL AUDITORS

PINE adopts the procedure of limiting the services rendered by its independent auditors so as to ensure the auditor’s
independence and objectivity pursuant to Brazilian and international standards.

15- SUBSEQUENT EVENTS

On February 5, 2013, the regulatory period to exercise the subscription rights and leftovers referred to the Proparco
capital increase began, Proparco will subscribe a total of R$26,954,999.40 at a price of R$14.28 per share. In this
period, it will be issued, a minimum of 1,887,605 and a maximum of 6,030,087 shares in case all minority shareholders
subscribe.

The Management

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
BALANCE SHEETS AT DECEMBER 31, 2012 AND 2011

(In thousands of reais)

Consolidated

CURRENT ASSETS 7,966,113 8,488,630 7,996,043 8,531,220
Cash 4. 126,111 114,008 126,111 114,010
Short-term interbank investments 5. 397,584 473,049 404,587 490,817
Open market investments 279,205 181,027 286,208 198,795
Interbank deposits 100,299 267,585 100,299 267,585
Foreign currency investments 18,080 24,437 18,080 24,437
Marketable securities and derivative financial instruments 3,914,354 4,687,695 3,934,238 4,710,264
Own portfolio 6.a) 1,815,047 1,152,901 1,834,931 1,175,470
Subject to repurchase agreements 6.a) 1,847,955 3,205,733 1,847,955 3,205,733
Derivative financial instruments 6.b) 180,232 143,115 180,232 143,115
Restricted deposits – Brazilian Central Bank 6.a) – 45,392 – 45,392
Subject to guarantees 6.a) 71,120 140,554 71,120 140,554
Interbank accounts 1,435 12,678 1,435 12,678
Restricted deposits:
Brazilian Central Bank 1,435 12,678 1,435 12,678
Loan operations 7. 2,549,888 2,385,747 2,549,888 2,385,747
Loan operations – private sector 2,664,448 2,490,107 2,664,448 2,490,107
Loan operations – public sector 5,966 18,362 5,966 18,362
Allowance for loan losses (120,526) (122,722) (120,526) (122,722)
Other receivables 796,143 755,926 799,186 758,177
Foreign exchange portfolio 8. 522,796 602,419 522,796 602,419
Income receivable 18,867 11,940 18,867 11,940
Negotiation and intermediation of securities 41,898 30,275 41,898 30,275
Sundry 9. 216,719 124,513 219,762 126,764
Allowance for other loan losses 7.d) (4,137) (13,221) (4,137) (13,221)
Other assets 180,598 59,527 180,598 59,527
Non-operating assets 176,279 58,017 176,279 58,017
Prepaid expenses 4,319 1,510 4,319 1,510
LONG-TERM RECEIVABLES 2,285,451 2,411,985 2,378,588 2,602,202
Interbank investments 5. – 5,253 – 5,253
Interbank deposits – 5,253 – 5,253
Marketable securities and derivative financial instruments 386,334 519,938 326,603 414,724
‘Own portfolio 6.a) 229,233 342,721 169,502 237,507
Derivative financial instruments 6.b) 157,101 177,217 157,101 177,217
Loan operations 7. 1,459,023 1,560,452 1,609,039 1,853,621
Loan operations – private sector 1,520,512 1,593,070 1,672,130 1,886,239
Loan operations – public sector 338 4,269 338 4,269
Allowance for loan losses (61,827) (36,887) (63,429) (36,887)
Other receivables 429,515 315,086 432,367 317,348
Income receivable 27,435 24,330 27,435 24,330
Deposits in guarantee 16. (b) (c) 197,491 181,448 199,189 182,910
Sundry 9. 204,751 109,548 205,905 110,348
Allowance for other loan losses (162) (240) (162) (240)
Other assets 10,579 11,256 10,579 11,256
Prepaid expenses 10,579 11,256 10,579 11,256
PERMANENT ASSETS 188,882 124,473 31,021 10,105
Investments 157,863 114,677 – 159
Investments in local subsidiaries 10. 157,863 114,520 – –
Other investments – 157 – 159
Property and equipment in use t1.a) 28,966 7,395 28,968 7,471
Facilities, furniture and equipment in use 13,652 14,045 13,652 14,045
Other fixed assets in use 28,645 4,792 28,647 4,901
Accumulated depreciation (13,331) (11,442) (13,331) (11,475)
Intangible assets 11.b) 2,053 2,401 2,053 2,475
Expenses for acquisition and development of software 9,450 9,072 9,915 9,537
Accumulated amortization (7,397) (6,671) (7,862) (7,062)

TOTAL ASSETS 10,440,446 11,025,088 10,405,652 11,143,527

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
BALANCE SHEETS AT DECEMBER 31, 2012 AND 2011

(In thousands of reais)

Ind Consolidated
NM NS LN 2012 10H)
CURRENT LIABILITIES 5,724,010 6,925,245 5,708,159 6,891,325
Deposits 12. 1,898,520 1,861,636 1,878,417 1,821,671
Demand deposits 30,134 112,415 30,053 111,826
Interbank deposits 108,932 117,637 108,932 97,827
Time deposits 1,759,454 1,631,584 1,739,432 1,612,018
Funds obtained in the open market 13. 1,832,661 3,190,416 1,832,661 3,190,416
Own portfolio 1,832,661 3,190,416 1,832,661 3,190,416
Funds from acceptance and issuance of securities 18. 499,593 451,008 499,593 451,008
Real estate letters of credit 11,965 3,581 11,965 3,581
Agribusiness letters of credit 377,368 283,606 377,368 283,606
Financial bills 1,101 5,256 1,101 5,256
Securities issued abroad 109,159 158,565 109,159 158,565
Interbank accounts 14. 37 6,366 37 6,366
Correspondent banks 37 6,366 37 6,366
Interdepartmental accounts 22,425 2,422 22,425 2,422
Third-party funds in transit 22,425 2,422 22,425 2,422
Borrowings and onlendings 17. 1,225,474 1,235,614 1,225,474 1,235,614
Local borrowings – other institutions – 2,012 – 2,012
Foreign borrowings 892,862 932,878 892,862 932,878
Local onlendings – official institutions 322,376 299,600 322,376 299,600
Foreign onlendings 10,236 1,124 10,236 1,124
Derivative financial instruments 6.b) 77,060 74,027 77,060 74,027
Derivative financial instruments 77,060 74,027 77,060 74,027
Other liabilities 168,240 103,756 172,492 109,801
Collection and payment of taxes and similar 15. a) 936 1,182 936 1,182
Foreign exchange portfolio 8. 75,133 390 75,133 390
Social and statutory payables 9,018 11,161 9,018 11,161
Tax and social security contributions 15. b) 30,075 21,193 33,983 27,145
Negotiation and intermediation of securities 4,575 11,222 4,575 11,222
Subordinated debt 19. 12,342 11,564 12,342 11,564
Sundry 15.c) 36,161 47,044 36,505 47,137
Other 36,161 47,044 36,505 47,137
LONG-TERM LIABILITIES 3,440,419 3,034,355 3,421,476 3,183,730
Deposits 12. 1,577,218 1,741,176 1,440,579 1,661,858
Interbank deposits 21,221 8,752 12,068 8,058
Time deposits 1,555,997 1,732,424 1,428,511 1,653,800
Funds from acceptance and issuance of securities 18. 792,470 204,088 792,470 204,088
Agribusiness letters of credit 7,830 23,449 7,830 23,449
Financial bills 573,164 17,746 573,164 17,746
Securities issued abroad 211,476 162,893 211,476 162,893
Borrowings and onlendings 17. 631,237 637,251 749,972 865,543
Local borrowings – other institutions – – 118,735 228,292
Foreign borrowings 61,305 3,958 61,305 3,958
Local onlendings – official institutions 569,932 567,661 569,932 567,661
Foreign onlendings – 65,632 – 65,632
Derivative financial instruments 6.b) 23,333 39,371 23,333 39,371
Derivative financial instruments 23,333 39,371 23,333 39,371
Other liabilities 416,161 412,469 415,122 412,870
Tax and social security contributions 15. b) 77,290 59,681 77,853 60,081
Subordinated debt 19. 304,930 292,655 304,930 292,655
Sundry 15.c) 33,941 60,133 32,339 60,134
Provision for contingent liabilities 16.c) 22,963 48,292 22,963 48,292
Other 10,978 11,841 9,376 11,842
DEFERRED INCOME 56,071 50,407 56,071 53,391
EQUITY 20. 1,219,946 1,015,081 1,219,946 1,015,081
Capital 935,683 796,045 935,683 796,045
Local residents 842,654 723,551 842,654 723,551
Foreign residents 93,029 72,494 93,029 72,494
Capital reserves 11,685 14,032 11,685 14,032
Revenue reserves 267,192 179,739 267,192 179,739
Proposed additional dividend 18,559 26,726 18,559 26,726
Carrying value adjustments (423) (1,461) (423) (1,461)
Treasury shares (12,750) – (12,750) –
TOTAL LIABILITIES AND EQUITY 10,440,446 11,025,088 10,405,652 11,143,527

The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)
BANCO PINE S.A. AND SUBSIDIARIES

STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
AND FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2012

(In thousands of reais, except net income per share)

month period

AVE
PJ]

2nd six-
month period

INCOME FROM FINANCIAL INTERMEDIATION
Loan operations

Marketable securities

Derivative financial instruments

Foreign exchange transactions

EXPENSES FOR FINANCIAL INTERMEDIATION
Funds obtained in the market

Borrowings and onlendings

Provision for loan losses

GROSS PROFIT FROM FINANCIAL INTERMEDIATION

OPERATING INCOME (EXPENSE)
Income from services rendered
Income from bank charges
Personnel expenses

Other administrative expenses
Taxes

Equity in the results of investees
Other operating income

Other operating expenses

OPERATING PROFIT
NON-OPERATING RESULTS

INCOME BEFORE INCOME TAXES AND
PROFIT SHARING

INCOME TAX AND SOCIAL CONTRIBUTION
Provision for current income tax

Provision for current social contribution
Deferred income tax and social contribution
PROFIT SHARING

NET INCOME

NUMBER OF OUTSTANDING SHARES
NET INCOME PER SHARE – IN REAIS

21.a)
21.b)

21.c)
21.0)

21.e)
21,1)
21.9)
21.h)

21)
21.)

21.k)

22.

507,829
238,321
205,372
34,182
29,954

(853,091)
(253,815)
(56,429)
(42,847)

154,738

(42,623)
25,953
4,753
(42,668)
(48,066)
(6,139)
17,316
21,469
(15,241)

112,115

15,719

127,834
(27,180)
(21,514)
(13,255)
7,589
(5,271)
95,383

107,636,260
0.88616

1,212,298
513,096
489,998

64,338
144,866

(851,301)
(617,705)
(150,291)

(83,305)

360,997

(110,793)
50,359
7,066
(85,461)
(90,408)
(11,111)
42,834
59,349
(83,421)

250,204

20,045

270,249
(48,539)
(21,820)
(13,439)
(13,280)
(34,257)

187,453

107,636,260
1.74154

1,368,381
632,909
436,915
161,562
136,995

(1,043,717)
(706,876)
(248,116)

(88,725)

324,664

(47,422)
40,990
5,053
(69,286)
(100,382)
(83,757)
12,623
228,971
(131,634)

277,242

4,403

281,645
(59,235)
(19,296)
(12,185)
(27,754)
(60,896)

161,514

84,034,266

1.92200

517,106
251,838
201,132
34,182
29,954

(355,661)
(249,423)
(63,494)
(42,744)

161,445
(45,038)
53,323

4,753
(44,464)
(48,747)

(8,636)

15,559
(16,826)

116,407

15,719

132,126
(30,889)
(24,154)
(14,423)

7,688
(5,854)

95,383

107,636,260
0.88616

1,236,601
547,573
479,824

64,338
144,866

(860,406)
(607,400)
(169,701)

(83,305)

376,195
(115,197)
112,825

7,066
(88,779)
(92,265)
(16,829)

47,909
(85,124)

260,998

20,037

281,035
(57,995)
(28,388)
(16,454)
(13,153)
(85,587)

187,453

107,636,260
1.74154

1,400,572
658,090
443,925
161,562
136,995

(1,067,176)
(700,007)
(278,444)

(88,725)

333,396
(48,540)
56,363

5,053
(71,098)
(102,013)
(36,689)

231,886
(132,042)

284,856

4,403

289,259
(66,307)
(23,643)
(14,612)
(28,052)
(61,438)

161,514

84,034,266

1.92200

The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

STATEMENTS OF VALUE ADDED FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
AND FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2012

(In thousands of reais)

PINE

2nd six-

Individual
2

2nd six-

[eE IE

A

Revenues

Financial intermediation
Services rendered

Bank charges

Provision for loan losses
Other

Expenses for financial intermediation

Goods and services acquired from third parties
Materials, electricity and other

Third-party services

Other

Gross value added
Depreciation and amortization
Net value added produced by the institution

Value added transferred from others
Equity in the results of investees

Total value added to be distributed
Distribution of value added

Personnel
Salaries
Benefits, training
Social charges
Profit sharing

Taxes, charges and contributions
Federal

State

Municipal

Income tax and social contribution

Remuneration of third-party capital
Rents and leased assets

Remuneration of own capital
Interest on own capital/dividends
Retained earnings

517,636
507,829
25,953
4,753
(42,847)
21,948

310,244

40,158
305
29,930
9,923

167,234
2,615
164,619

17,316
17,316

181,935
181,935

47,939
28,276
4,383
10,009
5,271

33,319
3,992
25
2,122
27,180

5,294
5,294

95,383
60,000
35,383

1,182,391
1,212,298
50,359
7,066
(83,305)
(4,027)

767,996

75,064

588
56,228
18,248

339,331
4,512
334,819

42,834
42,834

377,653
377,653

119,718
57,378
8,410
19,673
34,257

59,650
7,027
14
4,070
48,539

10,832
10,832

187,453
100,000
87,453

1,427,439
1,368,381
40,990
5,053
(88,725)
101,740

954,992

86,179

835
67,247
18,097

386,268
3,884
382,384

12,623
12,623

395,007
395,007

130,182
45,948
6,771
16,567
60,896

92,992
30,395
5

3,357
59,235

10,319
10,319

161,514
90,000
71,514

546,889
517,106
53,323
4,753
(42,744)

14,451

312,917

40,749

308
30,358
10,083

193,223
2,642

190,581

190,581
190,581

50,317
29,492
4,498
10,473
5,854

39,525
5,124
25
3,487
30,889

5,356
5,356

95,383
60,000
35,383

1,256,008
1,236,601
112,825
7,066
(83,305)
(17,179)

777,101

76,677

595
57,543
18,539

402,230
4,590

397,640

397,640
397,640

124,366
59,668
8,607
20,504
35,587

74,824
9,621
14
7,194
57,995

10,997
10,997

187,453
100,000
87,453

1,477,509
1,400,572
56,363
5,053
(88,725)
104,246

978,451

87,512

843
68,354
18,315

411,546
3,998

407,548

407,548
407,548

132,536
47,176
6,931
16,991
61,438

102,996
32,539
6

4,144
66,307

10,502
10,502

161,514
90,000
71,514

The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS (DIRECT METHOD) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

AND SIX-MONTH PERIOD ENDED DECEMBER 31, 2012
(In thousands of reais)

PINE

PTE

Note month period

Individual
2011

2nd six-
month period

Consolidated

OPERATING ACTIVITIES

Adjusted net income 116,214
Net income for the period 95,383
Provision for devaluation of non-operating assets –
Allowance for loan losses 42,847
Deferred taxes (7,589)
Depreciation and amortization 2,615
Provision for contingencies 577
Equity in the results of investee (17,316)
Loss on sale of property and equipment (303)
Changes in assets and liabilities (13,513)
(Increase) decrease in short-term interbank investments 211,466
(Increase) decrease in marketable securities (802,896)
(Increase) decrease in loan operations (45,863)
(Increase) decrease in other receivables 319,225
(Increase) decrease in other assets (121,928)
(Increase) decrease in interbank and interdepartmental accounts (7,412)
(Increase) decrease in derivative financial instruments 62,760
Increase (decrease) in deposits (65,504)
Increase (decrease) in purchase and sale commitments 569,608
Increase (decrease) in funds from acceptance and issuance of securities 273,107
Increase (decrease) in borrowings and onlendings (337,009)
Increase (decrease) in other liabilities (77,883)
Increase (decrease) in deferred income 8,816
Net cash provided by (used in) operating activities 102,701
INVESTING ACTIVITIES

Capital increase in subsidiaries (509)
Acquisition of property and equipment in use (24,637)
Acquisition of intangible assets (205)
Net cash used in investing acti (25,351)
FINANCING ACTIVITIES

Capital increase 139,635
Premium on subscription of shares (2,347)
Acquisition(sale) of treasury shares (11,193)
Interest on own capital and dividends paid (50,996)
Net cash provided by (used in) financing activities 75,099
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 152,449
Cash and cash equivalents at the beginning of the period 4 270,947
Cash and cash equivalents at the end of the period 4 423,396

249,326
187,453

83,305
13,280
4,512
2,927
(42,834)
683
(143,590)
170,015
924,984
(153,576)
(158,764)
(120,394)
24,917
(30,006)
(127,074)
(1,357,755)
636,967
(16,154)
57,586
5,664
105,736

(509)
(25,618)
(642)
(26,769)

139,638
(2,347)
(12,750)
(102,108)

22,433

101,400
321,996
423,396

292,084
161,514
9,957
88,725
27,754
3,884
12,782
(12,623)

91

686
(223,245)
(1,321,738)

251,191

292,770

(70,000)
(1,143)
(373)
(71,516)

43,749

1,413
(63,009)
(17,847)

203,407
118,589
321,996

133,356
95,383

42,744
(7,688)
2,642

577

(302)
(24,984)
211,466
(823,368)
39,073
324,395
(121,928)
(7,412)
62,760
(83,255)
569,608
273,107
(895,285)
(79,302)
5,157
108,372

(24,698)
(205)
(24,843)

139,635
(2,347)

(11,193)

(50,996)
75,099

158,628
271,771
430,399

292,121
187,453

83,305
13,153
4,590
2,927
693
(197,723)
170,015
882,186
(12,026)
(160,019)
(120,394)
24,917
(30,006)
(164,533)
(1,357,755)
636,967
(125,711)
55,956
2,680
94,398

(25,553)
(646)
(26,199)

139,638
(2,347)
(12,750)
(102,108)
22,433

90,632
339,767
430,399

305,119
161,514
9,957
88,725
28,052
3,998
12,782
91
(64,580)

240,539

(1 143)
(371)
(1,514)

43,749

1,413
(63,009)
(17,847)

221,178
118,589
339,767

The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)

BANCO PINE S.A.

STATEMENTS OF CHANGES IN EQUITY

(In thousands of reais, except dividends and interest on own capital per share)

PINE

ATTE ENTES
Carrying value Treasury Proposed

At December 31, 2010 422,606 – 222,938 – 24,316 213,599 (6,008) (10,319) – – 867,132
Capital increase – 373,439 (200,000) – (16,810) (112,880) – – – – 43,749
Premium on sale of treasury shares – – 713 – – – – – – – 713
Sale of treasury shares – – – – – – – 700 – – 700
Cancellation of treasury shares – – (9,619) – – – – 9,619 – – –
Carrying value adjustments – – – – – – 4,547 – – – 4,547
Net income – 161,514 161,514
Appropriations (Note 20): – – –
Legal reserve – – – – 8,076 – – – – (8,076) –
Statutory reserve – – – – – 63,438 – – – (63,438) –
Approval/payment of proposed additional dividend – – – – – – – – 26,726 (26,726) –
Dividends (R$0.4423 per share) – – – – – – – – – (19,862) (19,862)
Interest on own capital (R$0.6286 per share) – – – – – – – – – (43,412) (43,412)
At December 31, 2011 422,606 373,439 14,032 – 15,582 164,157 (1,461) – 26,726 – 1,015,081
Capital increase 513,077 (373,439) – – – – – – – – 139,638
Acquisition of treasury shares – – – – – – – (12,750) – – (12,750)
Other reserves – – – (2,347) – – – – – – (2,347)
Carrying value adjustments – – – – – – 1,038 – – – 1,038
Net income 187,453 187,453
Appropriations (Note 20): – –
Legal reserve – – – – 9,373 – – – – (9,373) –
Statutory reserve – – – – – 78,080 – – – (78,080) –
Approval/payment of proposed additional dividend – – – – – – – – (8,167) – (8,167)
Dividends (R$0.3660 per share) – – – – – – – – – (89,755) (89,755)
Interest on own capital (R$0.5546 per share) – – – – – – – – – (60,245) (60,245)
At December 31, 2012 935,683 – 14,032 (2,347) 24,954 242,238 (423) (12,750) 18,559 – 1,219,946
At June 30, 2012 796,048 – 14,032 – 20,185 211,624 (1,711) (1,557) 14,189 – 1,052,810
Capital increase 139,635 – – – – – – – – – 139,635
Acquisition of treasury shares – – – – – – – (11,193) – – (11,193)
Other reserves – – – (2,347) – – – – – – (2,347)
Carrying value adjustments – – – – – – 1,288 – – – 1,288
Net income 95,383 95,383
Appropriations (Note 20): – –
Legal reserve – – – – 4,769 – – – – (4,769) –
Statutory reserve – – – – – 30,614 – – – (30,614) –
Approval/payment of proposed additional dividend – – – – – – – – 4,370 4,370

Dividends (R$0.2740 per share) – – – – – – – – (29,763) (29,763)

Interest on own capital (R$0.2783 per share) – – – – – – – – – (30,237) (30,237)
At December 31, 2012 935,683 . 14,032 (2,347) 24,954 242,238 (423) (12,750) 18,559 – 1,219,946
The accompanying notes are an integral part of these financial statements.

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

1. OPERATIONS

Banco Pine S.A. (the “Institution” or “Banco Pine”) is authorized to operate commercial, credit financing and foreign exchange portfolios.

The Institution’s operations are conducted in the context of a group of institutions which act jointly, and certain transactions involve the co-participation and intermediation
of other members of the Pine Financial Group. The benefits from the intercompany services and the costs for the operating and administrative structures are absorbed,
either jointly or individually, by these companies as is most practicable and reasonable in the circumstances.

2. PRESENTATION OF FINANCIAL STATEMENTS

This presentation consists of the quarterly financial information of Banco Pine, which includes those of its Grand Cayman Branch and Pine Securities (Individual) and the
consolidated financial information of Banco Pine and Subsidiaries (Consolidated).

The financial information is presented in reais (R$), which is the Institution’s functional currency and that of its branch abroad. Unless otherwise indicated, the financial
information expressed in reais was rounded to the nearest thousand.

In compliance with Resolution 505/06, of the Brazilian Securities Commission (CVM), the Individual and Consolidated Financial Statements, as at December 31, 2012,
were authorized for issue on February, 04, 2013 by the Institution’s Board of Directors, among other matters.

The consolidated financial statements consider the transactions of Banco Pine S.A., including its branch abroad, its direct and indirect subsidiaries and the special purpose
entity that are presented below:

AA Total Assets Capital

Branch Abroad

Agéncia Grand Cayman Foreign Branch 494,187 6,131 82,238 (6.458)
Pine Securities USA LLC’% Broker Dealer 9,208 10,218 9,106 (1,111)
Subsidiaries

Pine Investimentos Distribuidora de Títulos e Valores Mobilários Ltda. Securities dealer 200,158 13,384 38,074 5,774
Pine Comercializadora de Energia Elétrica Ltda ‘* Consulting 80,944 77,400 80,429 (165)
Pine Corretora de seguros Ltda. (” Insurance broker 235 500 234 (278)
Pine Assessoria e Consultoria Ltda. % Consulting 35,468 1 35,009 33,396
Pine Assessoria em Comercializacáo de Energia ‘“ Consulting 3 10 3 7
Pine Planejamento e Servigos Ltda Consulting 4,984 10 4,117 4,107

Special Purpose Entity (SPE)
Pine Crédito Privado Fundo de Investimento em Direítos Creditórios Financeiros- Receivables investment fund (FIDC) 178,506 110,594 178,466 35,966

AE Total Assets Capital

Branch Abroad
Agéncia Grand Cayman Foreign Branch 505.595 5,627 83,870 18,239
Subsidiaries
Pine Investimentos Distribuidora de Títulos e Valores Mol Securitles dealer 37.472 13,384 32,300 8,728
Pine Comercializadora de Energia Elétrica Ltda ‘* Consulting 81,441 77,400 80,594 2,276
Pine Corretora de seguros Ltda. ‘ Insurance broker 3,001 1 13 12
Pine Assessoria e Consultoria Ltda. % Consulting 2,032 1 1,613 1,612
Special Purpose Entity (SPE)
Pine Crédito Privado Fundo de Investimento em Direitos Creditórios Financeiros- Receivables investment fund (FIDO)

333,510 301,601 333,506 5.398

“Pine Corretora de Seguros Lida. was consttuted on December 12, 2011. The company has capita of RS500, divided into 500 shares, ful subscribed and paid in local currency.
(2 Pine Assessoria e Consultoria Ltda was consttuted on December 12, 2011. The company has capital f R$S00, divided into 500 shares, R$! was paid up upon constitution and the remaining RS499 wil be paid up in local currency up to January
2013.

1) Ax the Extraordinary General Meeting (AGE) held on August 19, 2011, approval was given for a capital increase in Pine Comercializadora de Energia Elétrica Ltda. (formerly BP Empreendimentos e Particisagóes S.A.), of R$70,000, from RS7.400 to.
AS77.400, with the issue of 60,069,871 new nominative common shares. On February 16, 2012, the corporation was transformed ito a limited labiity partnership and ts name was changed from BP Empreendimentos e Participagóes S.A. to Pine.
Comercializadora de Energia Elétrica Ltda.

9 Pine Assessoria em Comercializacáo de Energía Lida. was consiltuted on April 24, 2012. Capital is R$10, comprising 10,000 quotas of RS1 each, fully subscribed and paid up in Brazlian currency and distributed as follows: 90% – Pine
Comercializadora de Energia Elétrica, 10% – the Institution.

0% Pine Planejamento o Servigos Ltda, was constituled an June 26, 2012. Capital is RS1O, comprising 10,000 quotas of ASI each, fuly subscribed and paid up in Brazllan currency and distributed as follows between tho partners: 0.01% – Pino
Comercializadora de Energia Eética, 99.899 – hr Insituin.

1% Pine Securities USA LLC. was constituted on October, 2012. The company has capital of R$10.000.
a) Pine Crédito Privado

Since the control over receivables assigned to this receivables investment fund (FIDC) still lies with the Institution (receipt, transfer and collection), and the Institution is the
owner of the subordinated shares, management decided to consolidate the FIDC, as provided for in CVM Circular 01/2007.

In accordance with Article 5 of CVM Instruction 408/04, we present below the information of Pine Crédito Privado, considered in preparing the consolidated financial
statements:

i) Name, nature, purpose and activities of the FIDC:

Pine Crédito Privado Fundo de Investimento em Direitos Creditórios Financeiros, managed by Citibank Distribuidora de Títulos e Valores Mobiliários S/A., was constituted
as a closed fund on December 7, 2010. Distribution commenced on March 28, 2011. The Fund offered 207,000 senior shares at a unit value of R$1. The distribution period
ended on April 6, 2011. The Fund will terminate its activities in up to 180 days from the date on which the Senior Shares outstanding are redeemed in full (54 months
subsequent to the Fund’s distribution date).

The purpose of the Fund is to increase shareholder value, exclusively through the acquisition of financial segment Credit Rights, on business loans (working capital),
originated and assigned by Pine, which meet the Qualifying Criteria, as well as the portfolio composition and diversification indices established in the Regulation. As an
additional activity, the Fund will also make investments in Other Assets.

li) Investment in the equity and results of the FIDC.

In accordance with Article 24, item XV, of CVM Instruction 356, and wording of CVM Instruction 393, and Chapter 21 of the Fund Regulation, 69% of the Fund’s equity will
comprise senior shares and 31% will comprise subordinated shares. This ratio will be determined daily and shall be made available for consultation monthly by the Fund
shareholders.

Página 7

(A free translation of the original in Portuguese)

RR PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(in thousands of eais except unit share price)
ii) Nature of the Institution’s involvement with the FIDC and type of exposure to loss, if any, arising from this involvement.

Verification of whether the credit rights meet the assignment terms is, pursuant to the assignment agreement, the sole responsibility of the assignor (Banco Pine), without
limiting the assignee’s (Fund) right, either directly or through third parties, to also conduct such verification.

Non-compliance with any obligation originating from the credit rights and other active components of the Fund’s portfolio, is attributed to the subordinated shares up to the
limit corresponding to the sum of their total value. Once this total has been exceeded, the default of credit rights held by the Fund is attributed to the senior shares. The
subordinated shares do not have a profitability target, however, they may benefit from any surplus yield generated by the credit right portfolio.

In the event the percentage of subordinated shares falls below 31% of the Fund’s equity, the Institution shall have five business days to recoup this minimum ratio, through
the subscription of new subordinated shares, and if this does not occur, the management entity shall call an Evaluation Event under the terms of the Fund regulations. In
the event the subordinated shares comprise more than 31% of the Funds Equity, the management entity may partially amortize the subordinated shares in the amount
necessary to rebalance this ratio.

iv) Amount and nature of receivables, payables, income and expenses between the Instit
over the FIDC assets.

No loans were assigned to the FIDC for the year ended December 31,2012 (December 31, 2012 – R$303,651 ). No income was generated by these assignments to the
Fund.

Additionally, on account of its investment in subordinated shares in this Fund, the Institution recognized income at December, 31 2012 income of R$ 16,557 (December 31,
2011 – R$10,614), recorded in the “result of marketable securities” account.

ion and FIDC, assets transterred by the Institution and rights of use

v) Total assets, liabi

les and equity of the FIDC.

E E
Current assets 7,004 17,772 Current 40 4
Cash 1 3. Other liabilties 40 4
Short-term interbank investments. 7,003 17,768
Loan operations – –
Other recelvables 171,502 1
Long-term receivables 19,884 315,738
Marketable securities 151,618 22.569
Loan operations 293,169 Equity 178,466 333,506
Total assets 178,506 333,510 Total liabilities and equity 178,506 333,510

vi) Guarantees, sureties, mortgages or other collateral pledged in favor of the FIDC.
Banco Pine has provided no guarantee, surety, mortgage or other collateral in favor of the FIDC or its investors.

vii) Identification of the principal beneficiary or group of principal beneficiaries of the FIDC’s activities.
Banco Pine is the sole holder of all the subordinated shares of this Fund. The senior shares are held by different qualified investors.

3. SIGNIFICANT ACCOUNTING PRACTICES

The quarterly financial information of Banco Pine is prepared and presented in accordance with the accounting practices adopted in Brazil applicable to institutions
authorized to operate by the Brazilian Central Bank (BACEN) and to corporations, and by the Brazilian Securities Commission (CVM).

The standards issued by the Brazilian Accounting Pronouncements Committee (CPC) related to the process of convergence with international accounting standards,
approved by CVM, but not yet ratified by BACEN, were not adopted in the consolidated balance sheets. The standards approved by CVM which did not conflict with the
rules of the National Monetary Council (CMN) and BACEN and those which had been ratified by BACEN were adopted for the disclosure purposes of the quarterly financial
information.

We present below the main accounting practices used:
a) Consolidation

The balances and the results of the transactions between Banco Pine and its subsidiaries Pine Investimentos, Pine Comercializadora, Pine Corretora, Pine Assessoria and
Pine Assessoria em Comercializagáo de Energia were eliminated. For FIDC consolidation purposes, the balance of the loan assignment receivables portfolio was included
in the Institution’s loan operations portfolio, with a corresponding entry of the senior shares in the “Borrowings and onlendings – local” account, net of investments in
investment fund shares, comprising the shares held of this Fund.

b) Determination of the results of operations
Income and expenses are recorded on the accrual basis of accounting, which establishes that revenues and expenses should be included in the determination of the
results for the periods in which they occur, simultaneously when correlated, irrespective of their receipt or payment.

Financial revenue and expenses are prorated, based substantially on the exponential method.
Transactions with floating rates or those indexed to foreign currencies are adjusted up to the balance sheet date.

c) Cash and cash equivalents

Cash and cash equivalents comprise cash in local and foreign currencies, short-term financial investments and time deposits, with maturities at the original investment date
equal to or less than 90 days and which present an immaterial risk of change in fair value. These are used by the Institution to manage its short-term commitments.

d) Short-term interbank investments

Short-term interbank investments are presented at cost plus related earnings up to the balance sheet dates.

e) Marketable securities

In accordance with BACEN Circular 3068, of November 8, 2001, the Institution’s securities are classified in the following categories: “trading securities”, “available-for-sale
securities” and “held-to-maturity securities”.

Trading securities are those acquired to be traded on a frequent and active basis. These securities are presented at cost plus related earnings up to the balance sheet
dates and adjusted based on fair value with the adjustments recorded in the corresponding revenue or expense account in results for the period.

The securities classified as available for sale are those for which Management has no intention to hold to maturity or which were not acquired to be traded on a frequent
and active basis. These securities are recorded at cost plus related eamings up to the balance sheet dates and are adjusted to market value against the “Carrying value
adjustments” account in equity, net of tax effects.

The securities classified as held to maturity are those which management acquires with the intention and financial ability to hold in its portfolio to maturity. These securities
are recorded at cost plus related earnings. Premium and discount, where applicable, are appropriated to results based on the term of the individual securities.

Página 8

(A free translation of the original in Portuguese)

RR PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

Trading securities are presented in current assets, irrespective of their maturities.

1) Derivative financial instruments

In accordance with BACEN Circular 3082, of January 30, 2002, and Letter-Circular 3026, of July 5, 2002, the derivative financial instruments related to transactions with
options, forward transactions, futures and swaps are recorded in compliance with the following criteria:

Options: premiums paid or received are recorded in assets or liabilities, respectively, until the options are effectively exercised and recorded as a decrease or
increase in the cost of the asset or right, based on the effective exercise of the option, or as revenue or expense in the case of non-exercise;

Futures: daily adjustments are recorded in an asset or liability account and appropriated daily as revenue or expense;

Swaps: differences receivable or payable are recorded in an asset or liability account, respectively, and appropriated as revenue or expense on a pro rata basis to
the balance sheet date;

Forward contracts: recorded at the contract closing amount, less the difference between this amount and the spot price of the asset or right, recognizing the revenue
and expense over the term of the contract up to the balance sheet date.
The derivative financial instruments are measured at fair value, with the corresponding gains or losses recorded as follows:

Derivative financial instruments which do not qualify as hedges, as revenue or expense in results for the period

Financial instruments which meet hedging criteria are classified either as fair value or cash flow hedges.
Fair value hedges are designed to offset risks arising from the exposure to fluctuations in the market value of the hedged item. The instruments and hedged items are
adjusted to fair value and recorded in a profit or loss account.

9) Loan operations and allowance for loan losses

The loan operations are classified, as regards risk level, based on criteria which consider current economic conditions, past experience and the specific risks related to the
transactions, the borrowers and the guarantors, in compliance with the parameters established by CMN Resolution 2682/99, which require the periodic analysis of the
portfolio and its classification into nine levels (from “AA” to “H”).

Income from loan operations past due for more than 60 days, regardless of the risk level, is only recognized as revenue on the date it is effectively received. The revenue
assigned loans with or without co-obligation are recognised in the income statement on the date that the assignments are made.

H-rated operations (allowance recorded at 100%) remain at this level for six months, and are subsequently written off against the existing allowance and controlled over a
five-year period in memorandum accounts and are no longer presented in the balance sheet.
Renegotiated loans are held at the same level at which they were originally classified at the time of the renegotiation.

Renegotiated loans which had already been written off to loss and which were recorded in memorandum accounts, are H rated, and any gains arising from the
renegotiation are only recognized when actually received.

The allowance for loan losses meets the minimum requirement established by the aforementioned Resolution, as described in Note 7.

The allowance for loan losses related to credit assignments with co-obligation is calculated based on the same guidelines established by BACEN for unassigned loan
operations.

h) Prepaid expenses

These are controlled by contract and accounted for in the prepaid expenses account. The expenses are appropriated to results for the period based on the corresponding
contract term and recorded in the “Other administrative expenses” account.

i) Other current assets and long-term receivables

These are stated at cost, including, where applicable, related accrued income and monetary variations, less the corresponding provisions for loss or adjustments to
realizable value.

j) Permanent assets

These assets are stated at cost and consider the following:
Investments in subsidiaries are accounted for using the equity method

. Property and equipment items correspond to rights in tangible assets which are used in the Institution’s business activities, or exercised for this purpose, including those
arising from transactions which transfer the risks, benefits and control of assets to the entity.

Depreciation of property and equipment is computed and recorded on the straight-line method at annual rates which consider the economic useful lives of the assets

Intangible assets correspond to the rights acquired in non-physical assets which are used in the Institution’s business or which are exercised for this purpose. The
intangible assets with identifiable useful lives are generally amortized on the straight-line method over the estimated period of economic benefit.

k) Impairment of non-financial assets
An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash generating unit is the smallest

identifiable group of assets which generates cash flows that are largely independent from other assets and groups. Impairment losses are recognized in results for the
period. The non-financial asset amounts, except for deferred tax assets are tested, at least, annually to determine whether there is any indication of impairment.

I) Purchase and sale commitments

The purchase (sale) of financial assets based on a fixed price resale (repurchase) contract is recorded in the consolidated balance sheet as financing granted (received),
based on the nature of the debtor (creditor), in the “Funds obtained in the open market” account.

m) Current and long-term liabilities

These are stated at known or estimated amounts including, where applicable, accrued charges and monetary or exchange variations up to the balance sheet dates.

n) Contingent assets and liabilities and legal obligations

The recognition, measurement and disclosure of contingent assets and liabilities, and legal obligations (tax and social security) are based on the criteria defined in
Resolution 3823/09, and Letter Circular 3429/10, which approved CPC Technical Pronouncement 25, as follows:

Contingent assets: are not recorded in the financial statements, except when there is evidence which assures a high degree of confidence that they will be realized,
normally through a final and unappealable court decision.

Contingent liabilities: the reserve for contingencies is determined based on the probability of an unfavorable sentence or outcome of the related litigation, as well as
the probable period of the loss. The necessary reserve is calculated based on an analysis of each process and the opinion of the legal advisors. Reserves are recorded for
processes in which the possibility of loss is deemed probable. The reserves required could be changed in the future based on the progress of each suit;

Página 9

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

Legal obligations (tax and social security): comprise administrative proceedings or lawsuits related to tax and social security obligations, the legality or constitutionality
of which is being contested, whose amounts, regardless of the related probability of success, are recorded at the full amount in dispute and adjusted in accordance with the
legislation in force.

0) Provision for income tax and social contribution

The provisions for income tax and social contribution are recorded at the following statutory rates: Income tax – 15%, plus a 10% surcharge on taxable income exceeding
R$ 240 (for the year), and social contribution – 15%. Further, deferred tax assets are recorded on temporary differences based on the assumption that the future taxable
income generated by the Institution will be sufficient to offset these assets.

In accordance with Provisional Measure (MP) 449/08, subsequently enacted into Law 11941/09, the changes in the criteria used to recognize revenue, costs and expenses
computed in determining net income, introduced by Law 11638/07 and by Articles 36 and 37 of the MP, may be ignored for purposes of calculating the taxable income if
companies elect to use the Transitional Tax System (RTT). In this case, for tax purposes, the accounting methods and criteria in force at December 31, 2007 will be
followed.

p) Profit sharing

Banco Pine has its own profit sharing program (PPLR) ratified by the Bank Employees Trade Union.
The general assumptions of this program are: (a) business unit performance; (b) establishment of a fund for distribution across the organization; and (c) assessment of the
skills and the meeting of targets in the supporting areas. The related expenses were recognized in the “Profit sharing” account”.(See Note 23(a)).

q) Use of estimates

The preparation of financial statements requires Management to make estimates and assumptions, to the best of its judgment, that affect the reported amounts of certain
assets, liabilities, revenues and expenses and other transactions, such as the fair value of assets and derivatives and the allowance for loan losses, the establishing of the
period for realizing deferred tax assets, property and equipment depreciation rates, amortization of deferred charges and reserves for contingences and others. Actual
results may differ from these estimates.

r) Net income per share

This is calculated based on the number of outstanding shares paid up at the date of the quarterly financial information.

4. CASH AND CASH EQUIVALENTS

TA

2012 2011 2012 2011
Cash 126,111 114,008 126,111 114,010
Shorterm interbank investments(1) 297,285 207,988 304,288 225,757
Total cash and cash equivalents 423,396 321,996 430,399 339,767

“7 These aro vansaciions wi maturitss at the original investment date equal to or less than 90 days.
5. INTERBANK INVESTMENTS

Interbank investments at December 31, 2012 and 2011, are comprised as follows:

AE TEE TAE

EXA EA ETA

Investments in purchase and sale agreements
Own portfolio position

Financial Treasury Bills (LFT) 110,029 – – – 110,029
National Treasury Bills (LTN) 74,150 – – – 74,150
Federal Treasury Notes (NTN) 95,026 – – – 95,026
Subtotal 279,205 – – – 279,205
Total investments in purchase and sale

commitments 279,205 – – – 279,205
Interbank deposits
Own porto!
Floating – – 324 1,604 1,928
Rural CDI – 4,651 – 22,119 26,770
Subtotal – 4,651 324 23,723 28,698
Subject to guarantees
Floating – 996 24,994 45,611 71,601
Subtotal – 996 24,994 45,611 71,601
Total interbank

deposits – 5,647 25,318 69,334 100,299
Foreign currency investments
Foreign currency investments 18,080 – – – 18,080
Total foreign currency investments 18,080 – – – 18,080
Total short-term interbank

investments 297,285 5,647 25,318 69,334 397,584

Up to TEE From 91 to TE
30 days EOS EA EOS

Financial Treasury Bills (LFT) 110,029 – – – 110,029
National Treasury Bills (TN) 81,153 – – – 81,153
Federal Treasury Notes (NTN) 95,026 – – – 95,026
Subtotal 286,208 – – – 286,208
Total investments in purchase and sale

commitments 286,208 – – – 286,208
Interbank deposits
Own portfolio
Floating – – 324 1,604 1,928
Rural CDI – 4,651 – 22,119 26,770
Subtotal – 4,651 324 23,723 28,698

Página 10

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

PINE

Subject to guarantees
Rural CDI
Subtotal
Total interbank
deposits
Foreign currency investments
Foreign currency investments
Total foreign currency investments
Total short-term interbank
investments

Financial Treasury Bills (LFT)

National Treasury Bills (LTN)

Federal Treasury Notes (NTN)

Total investments in purchase and sale
commitments

Floating
Rural CDI
Subtotal
Subject to guarantees
Floating
Subtotal
Total interbank
deposits
Foreign currency investments
Foreign currency investments
Total foreign currency investments
Total short-term interbank
investments

– 996 24,994
– 996 24,994

– 5,647 25,318
18,080 – –
18,080 – –
304,288 5,647 25,318

E
ET

From 91 to
EA

Up to TEE]
E

EOS

81,599 – – –
21,003 – – –
78,485 – – –

181,027 – – –

– 5,195 196,459 390

531 3,151 11,363 401
531 8,346 207,822 791

– – 15,472 34,623

– . 15,472 34,623

531 8,346 223,294 35,414
24,437 – – –
24,437 – – –
205,995 8,346 223,294 35,414

E
EA

From 91 to
OO

Up to From 31 to

OO EOS

45,611
45,611

169,334

More than
E

5,003

5,003

250

5,253

More than
EA

71,601
71,601

100,299

18,080
18,080

81,539
21,003
78,485

181,027
207,047
15,446

222,493

50,345
50,345

272,838

24,437
24,437

investments in purchase and sale commitments

Financial Treasury Bills (LFT)

National Treasury Bills (LTN)

Federal Treasury Notes (NTN)

Total investments in purchase and sale
commitments

Rural CDI
Subtotal
Subject to guarantees
Floating
Subtotal
Total interbank
deposits
Foreign currency investments
Foreign currency investments
Total foreign currency investments
Total interbank
investments

81,599 – – –
38,771 – – –
78,485 – – –

198,795 – – –

– 5,195 196,459 390

531 3,151 11,363 401
531 8,346 207,822 791

– – 15,472 34,623

– – 15,472 34,623

531 8,346 223,294 35,414
24,437 – – –
24,437 – – –
223,763 8,346 223,294 35,414

6. MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS

a) Marketable securities

The securities portfolio at December 31, 2012 and 2011

Available-for-sale securities:
Own portfoli
NTN
Promissory Notes
Eurobonds

Receivables investment fund

shares
Investment fund quotas
Cerificate of Real Estate Receivables (CRI)
Total available-for-sale

securities

was comprised as follows:

an

AE]
maturity

E
360 days

From 91 to
EOS

More than
360 days

. – – – 150,403
– – 61,070 – –
– – – – 2,123
– – – – 59,781
337,047 – – – –
– – – – 16,976
337,047 – 61,070 – 229,233

Página 11

5,003

5,003

250

5,253

5,253

150,403
61,070
2,123

59,731
337,047
16,976

627,350

81,539
38,771
78,485

198,795
207,047
15,446

222,493

50,345
50,345

272,838

24,437
24,437

496,070

A
EAN

150,694
61,362
2,109

59,731
337,047
17,250

628,193

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

PINE

Own portfoli
LIN –
NTN –
Debentures –
Subtotal –
Subject to repurchase

agreements:
LIN –
Debentures –
Subtotal –
Subject to guarantees
LIN –
Subtotal –
Total trading

securities –

Total securities 337,047

No stated
maturity

Promissory Notes –
Eurobonds –
Investment fund quotas? 337,047
Certificates of Real Estate Receivables (CRI) –
Total available-for-sale

securities 337,047

1
Own portfolio:
LIN –
NTN –
Debentures –
Subtotal –
Subject to repurchase
commitments:
LIN –
Debentures –
Subtotal –
Subject to
guarantees:
LIN –
Subtotal –
Total trading

securities –

Total securities 337,047

Available-for-sale securities:
Own portfoli
LIN
NTN
Receivables investment fund

shares
Investment fund quotas
Certificates of real estate receivables (CRI)
Subtotal
Subject to repurchase
commitments:
NTN
Subtotal
Total available-for-sale
securities

Own portfoli

LIN

NTN

Debentures

Subtotal

Subject to repurchase
commitments:

LIN

NTN

Debentures

Subtotal

Brazilian Central Bank deposits

LIN

Subtotal

599,836 30,067 12,813 174,169
209,704 – – 144,427

– 4,018 91,190 150,706
809,540 34,085 104,003 469,302
1,680,794. – – –
167,161 – – –
1,847,955 – – –
71,120 – – –
71,120 – – –
2,728,615 34,085 104,003 469,802
2,728,615 95,155 104,003 698,535

CARA
TEE AE More than

EOS 360 days 360 days

– – – 150,403
– 61,070 . –

– – – 2,123

– – – 16,976

– 61,070 – 169,502
599,836 30,067 12,813 194,053
209,704 – – 144,427

– 4,018 91,190 150,706

809,540 34,085 104,003 489,186
1,680,794. – – –
167,161 – – –
1,847,955 – – –
71,120 – – –
71,120 – – –
2,728,615 34,085 104,003 489,186
2,728,615 95,155 104,003 658,688

E

E More than
360 days 360 days

No stated 7

– – 3,334 –
– – – 222,489
– – – 105,214
280,301 – – –
– – – 15,018
280,301 – 3,334 342,721
– 289,190 – –
– 289,190 . .
280,301 289,190 3,334 342,721
– – 85,158 106,566
– 629,027 – 27,135
– – – 21,380
– 629,027 85,158 155,081
– 2,575,197 – –
– 310,584 – –
– 30,812 – –
– 2,916,543 – –
– – 45,392 –
– 2,916,543 45,392 –

Página 12

816.885
354,131
245.914

1,416,930

1,680,794
167,161
1,847,955

71,120
71,120

3,336,005

3,963,355

150,403
61,070
2,123
337,047
16,976

567,619

836.769
354,131
245.914

1,436,814

1,680,794
167,161
1,847,955

71,120
71,120

3,355,889

3,923,508

3,334
222,489

105,214
280,801

15,018
626,356

289,190
289,190

915,546

191,724
656,162

21,380
869,266

2,575,197
310,534
30,812
2,916,543

45,392
45,392

811,377
345,710
299,976

1,397,063

1,663,090
157,878
1,820,968

70,837
70,837

3,288,868

3,917,061

A
EAN

150,694
61,362
2,109
397,047
17.250

568,462

831,261
345,710
299,976

1,416,947

1,663,090
157,878
1,820,968

70,837
70,837

3,308,752

3,877,214

A
EA

3,307
223,462

105,214
280,301

15,018
627,302

290,722
290,722

918,024

191,404
656,136

21,380
868,920

2,563,730
308,953
30,812
2,903,495

44,968
44,968

(A free tran:

¡tion of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(n thousands of reais, except unit share price)

Subject to
guarantees:
LIN . – 140,036 – 140,036 138,726
NTN – – – 518 518 504
Subtotal – – 140,036 518 140,554 139,230
Total trading
securities – 3,545,570 270,586 155,599 3,971,755 3,956,613
Total securities 280,301 3,834,760 273,920 498,320 4,887,301 4,874,637

ETA

Up to E More than Curve based
30 days 360 days E
securities:
– – 3,334 – 3,334 3,307
– – – 222.489 222,489 223.462
Investment fund quotas 280,301 – – – 280,301 280,301
Certificates of real estate receivables (CRI) – – – 15,018 15,018 15,018
Subtotal 280,301 – 3,334 237,507 521,142 522,088
Subject to repurchase
commitments:
NTN – 289,190 – – 289,190 290,722
Subtotal – 289,190 – – 289,190 290,722
Total available-for-sale
securities 280,301 289,190 3,334 237,507 810,332 812,810
– – 85,158 106,566 191,724 191,404
– 629,027 – 27,135 656,162 656,136
– – – 22,569 22,569 22,569
Debentures – – – 21,380 21,380 21,380
Subtotal – 629,027 85,158 177,650 891,835 891,489
Subject to repurchase
commitments:
LIN – 2,575,197 – – 2,575,197 2,563,730
NTN – 310,534 – – 310,534 308,953
Debentures – 30,812 – – 30.812 30,812
Subtotal – 2,916,543 – – 2,916,543 2,903,495
Brazilian Central Bank deposits
LIN – – 45,392 – 45,392 44,968
Subtotal – – 45,392 – 45,392 44,968
Subject to
guarantee:
LIN – – 140,036 – 140,036 138,726
NTN – – – 518 518 504
Subtotal – – 140,036 518 140,554 139,230
Total trading
securities – 3,545,570 270,586 178,168 3,994,324 3,979,182
Total securities 280,301 3,834,760 273,920 415,675 4,804,656 4,791,992

(1) Securkies classified in the “trading” category are stated based on their maturity dates

(2) The quotas total R$338,601 (December 31, 2011 – R$280,301), not including the provision for devaluation of investment fund quotas in the amount of R$1,554, of which R$251,304 (December 31, 2011 – R$236,698) of Pine CM Fundo de
Investimento Mulimercado Crédito Privado and R$87,297 (December 31, 2011 – R$43,603) of Pine FICFI Mutimercado Crédito Privado Investimento no Exterior. The assets comprising the funds are, in their majority, debentures, promissory notes and
receivables certficates in the total amount of A$756,027 (note 7a)

At December 31,2012 and 2011 there was no securities classified as “held to maturity”.

In accordance with Article 5 of Circular no. 3.068/08, from The Central Bank, the revaluation regarding the classification of the securities is allowed upon the semester-end
balance. On December 31, 2012 securities totalling R$ 188,501 were reclassified from “available-for-sale” to “trading” generating an additional income of R$ 12,524
classified as “Income from financial intermediation – Marketable securities”.

The market values of the securities recorded in the “available for sale” and “trading” categories were determined based on the prices and rates exercised at December 31,
2012 and 2011, disclosed by the Brazilian Association of Financial and Capital Market Institutions (ANBIMA), BMáFBovespa S.A. – Bolsa de Valores, Mercadorias e
Futuros, by investment fund managers and by the international information agencies. The mark-to-market adjustment of the securities recorded in the “available for sale”
category generated a loss of R$843 on an Individual and Consolidated basis (December 31, 2011 – loss of R$2,478 on an Individual and Consolidated basis), affecting the
equity of the Institution by R$514 on an Individual and Consolidated basis (December 31, 2011 – R$1,487 on an Individual and Consolidated basis), net of tax effects. The
mark-to-market adjustment of the securities recorded in the “trading” category resulted in a gain of R$ 47,137 in the Individual and Consolidated (December 31, 2011 –
gain of R$15,142 in Individual and Consolidated) in results.

b) Derivative financial instruments

i) Utilization policy

The growing level of company sophistication in a global market prompted an increase in the demand for derivative financial instruments to manage balance sheet exposure

to market risks, arising mainly from fluctuating interest and foreign exchange rates, the price of commodities and other asset prices. As a result, Banco Pine offers its
customers alternatives for mitigating market risks through appropriate instruments, as well as to meet its own needs for managing these risks.

ii) Management

The management of portfolio risks is controlled using techniques which include the following: VaR, sensitivity, liquidity risk and stress scenarios. Based on this information,
the necessary derivative financial instruments are contracted by the treasury department, pursuant to Management’s previously defined market and liquidity risk policy.
Derivative transactions carried out by Banco Pine with customers are neutralized to eliminate market risks.

The sale of derivative financial instruments to customers is subject to prior credit limit approval. The credit limit approval process also considers potential stress scenarios.

Knowing the customer, their operating sector and their risk appetite profile, as well as being able to provide information on the risks involved in the transaction and in the
terms and conditions negotiated, ensures that the relationship between the parties is transparent and permits the Institution to offer customers the products which are most
appropriate to their specific needs.

Página 13

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

The majority of the derivative contracts negotiated by the Institution with customers in Brazil, comprise swaps, forward transactions, options and futures registered at
BM8FBovespa or CETIP S.A. – Balcáo Organizado de Ativos e Derivativos. The derivative contracts negotiated abroad comprise futures, forward transactions, options and
swaps mainly registered at the Chicago, New York and London exchanges. We stress that although certain trades abroad are carried out over-the-counter (OTC), the
related risks are low in relation to the Institution’s total transactions.

The main market risk factors monitored by Banco Pine include exchange rates, local interest rate volatility (fixed, reference rate (TR), General Price Index – Market (IGP-
M) long-term interest rate (TJLP) and Extended Consumer Price Index (IPCA)), exchange coupon and commodities. The Institution adopts a conservative approach,
minimizing its exposure to risk factors and to the mismatching of the portfolios terms.

) Evaluation and measurement criteria, methods and assumptions used to determine value

The Institution uses the market reference rates disclosed principally by BM8FBovespa, Intercontinental Exchange (ICE) and Bloomberg to determine the fair value of the
derivative financial instruments. For derivatives whose prices are not directly disclosed by the exchanges, the fair values are obtained through pricing models that use
market information, determined based on the prices disclosed for assets with the greatest liquidity. Based on these prices, the Institution extracts the interest curves and
market volatilities which are used as entry data for the models. The OTC derivatives, forward contracts and securities with low liquidity are determined in this way.

iv) Amounts recorded in balance sheet and memorandum accounts, segregated into the following categories: index, counterparty, trading market, notional
values, maturities, cost and fair values.

At December 31, 2012 and 2011, the derivative financial instrument positions are as follows:

ANO

ASSETS

Swap – difference receivable 216,102 218,386
Forward contracts- receivable 85,122 89.876
Premiums on unexercised options 36,109 12,070
Total receivable 337,333 320,332
LIABILITIES

Swap – difference payable 37,625 59,914
Forward contracts- payable 21,647 41,722
Premiums on written options 41,121 11,762
Total payable 100,393 113,398
Net amount 236,940 206,934

v) Derivative financial instruments by index

[TO

jual and Consolidated AN
Swap

Market risk

Asset positio 2,794,342 3,207,127 3,020,976 186,151
Interest 2,067,246 2,312,680 2,202,483 110,197
Currency 644,261 805,350 731,310 74,040
Commodities 19,028 19,011 18,970 4
Variable income 63,807 70,086 68,213 1,873
Liability position: 2,794,342 3,028,650 2,915,600 113,050
Interest 1,919,358 2,110,087 2,018,062 92,005
Currency 874,984 918,583 897,538 21,045
Total swaps – 178,477 105,376 299,201
Forward contracts

Asset positio 2,579,250 2,634,263 2,648,976 (14,713)
Interest 554,932 554,085 558,167 (4,082)
Currency 1,874,582 1,927,728 1,938,929 (11,201)
Commodities 149,736 152,450 151,880 570
Liability position: 2,579,250 2,570,788 2,593,764 (22,976)
Interest 1,375,129 1,388,212 1,406,871 (18,659)
Currency 998,478 997,204 1,002,419 (5,215)
Commodities 205,643 185,372 184,474 898
Net amount – 63,475 55,212 8,263
Options

Premiums on unexercised options: 1,200,312 36,109 36,260 (151)
Currency 661,386 10,052 14,977 (4,924)
Commodities 538,926 26,057 21,284 4,773
Premiums on written options: 1,842,841 41,121 48,072 (6,951)
Currency 1,160,633 15,859 19,084 (8,226)
Commodities 682,208 25,263 28,988 (8,725)
Net amount (5,012) (11,812) 6,800
Futures

Purchase: 1,985,824 – – (3,295)
Interest 1,063,206 – – (167)
Currency 840,567 – – (8.128)
Commodities 82,051 . – –
Sale: 2,563,454 . – 5,997
Interest 2,424,256 – – 5,832
Currency 48,362 . – 17
Commodities 90,836 – – (6)
Net amount – – 2,702
Total receivable (payable) and gain (loss) 236,940 148,776 316,966

Página 14

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

O] AT
EA amount

Swap
Cash flow hedge
Asset position: 378,378 513,066 455,213 57,853
Interest 176,755 203,048 200,945 2,103
Currency 201,623 310,018 254,268 55,750
Cash flow
Liability position: 378,378 505,676 448,102 57,574
Interest 378,378 505,676 448,102 57.574
Net amount – 7,390 TAM 115,427
Market risk
Asset position: 3,361,674 3,668,486 3,558,486 110,000
Interest 2,551,854 2,718,439 2,650,710 67.729
Currency 692,150 810,262 769,158 41,104
Commodities 68,936 82,088 82,088 .
Variable income 49,234 57,697 56,530 1,167

. 3,361,674 3,517,404 3,514,720 2,684

2,258,571 2,344,982 2,346,322 (1,340)

Currency 1,107,084 1,171,308 1,167,284 4,024
Commodities 1,019 1,114 1,114 .
Net amount – 151,082 43,766 112,684
Total swaps 158,472 50,877 228,111
Forward contracts
Asset posi 1,911,012 2,017,793 2,072,136 (54,343)
Interest 1,623,686 1,708,350 1,753,918 (45,563)
Currency 287,326 309,443 318,223 (6,780)
Liability position: 1,911,012 1,969,639 1,996,274 (26,635)
Currency 1,644,086 1,664,603 1,704,045 (69,442)
Commodities 266,926 305,036 292,229 12,807
Net amount – 48,154 75,862 (80,978)
Options
Premiums on unexercised options: 116,737 12,070 8,192 3,878
Currency 68,087 6,471 2,198 4,278
Commodities 48,650 5,599 5,994 (395)
Premiums on written options: 301,316 11,762 15,815 (4,053)
Currency 199,087 5,799 3,117 2.682
Commodities 102,229 5,963 12,698 (6,735)
Net amount 308 (7,623) 7,931
Futures
Purchase: 1,064,871 – – (10,300)
Interest 883,792 – – (741)
Currency 35,974 – – (9.559)
Commodities 145,105 – – –
Sale: 4,115,825 . – 13,184
Interest 3,154,424 – – 1,776
Currency 871,105 . – 11,400
Commodities 90,296 – – 8
Net amount – – 2,884
Total receivable (payable) and gain (loss) 206,934 119,116 157,948

vi) Derivative financial instruments by maturity

DEN

EEE ES LO
ET EOS ETS

Asset position:
Swap 416,506 61,832 37,590 371,916 244,977 2,074,306 3,207,127
Forward contracts 528,921 542,766 251,175 628,976 424,161 258,264 2,634,263
Options 4,427 10,252 – 15,600 5,830 – 36,109
Futures 253,621 863,967 – 63,513 271,637 533,086 1,985,824
Liability position:
Swap 398,096 59,832 36,677 359,265 283,501 1,941,279 3,028,650
Forward contracts 525,369 533,868 243,298 597,121 413,609 287,523 2,570,788
Options 4,954 13,745 206 14,706 7,510 – 41,121
Futures 89,151 100,009 2,361 352.469 949,454 1,070,010 2,563,454

Página 15

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

DEA

From 9Tto ES LES
ETA EOS EOS

Asset position:

Swap 70,507 348,539 14,245 805,415 290,667 2,652,179 4,181,552
Forward contracts 160,686 309,844 308,763 524,459 562,406 151,635 2,017,793
Options – 28 4,141 6,375 1,526 – 12,070
Futures. 364,469 362,163 84,804 119,907 – 133,528 1,064,871
Liability position:

Swap 72,109 360,569 13,612 796,381 270,994 2,509,415 4,023,080
Forward contracts 162,099 310,283 301,848 496,136 546,694 152,579 1,969,639
Options 9 287 4,295 5,695 1,526 – 11,762
Futures. 985,334 23,437 24,087 89,189 1,850,687 1,143,091 4,115,825

jancial

vii) Derivative struments by trading market
At December 31, 2012 and 2011, the swaps, forward contracts and options, whose notional values are recorded in a memorandum account are comprised as follows:

COTE)

2012
AS ES COC TO
Exchange 90,300 – 1,842,470 4,549,278 49,700 – 170,166 5,110,629
BMEFBOVESPA 90,300 – 1,246,325 4,374,560 49,700 – 81,500 4,920,315
Exchanges abroad – 596,145 174,718 – – 88,666 190,314
otc 2,704,042 2,579,250 1,200,683 – 3,690,352 1,911,012 247,887 70,067
Financial institutions 55,220 151,117 22,683 – 1,671,614 182,678 54,951 70,067
Companies 2,648,822 2,428,133 1,178,000 – 2,018,738 1,728,334 192,936 –
Total 2,794,342 2,579,250 3,043,153 4,549,278 3,740,052 1,911,012 418,053 5,180,696

viii) Results from derivative financial instruments
We present below the gains and losses (realized or unrealized) which had an effect on the results for the year ended December 31, 2012 and 2011:

COTA

ANO

Swap 844,223 702,542 141,681 260,934 144,511 116,423
Futures 4,607,047 4,762,362 (155,318) 2,505,439 2,456,547 48,892
Forward contracts 490,012 427,625 62,387 184,258 201,532 (17,274)
Options 318,172 302,587 15,585 132,324 118,803 13,521
Total 6,259,454 6,195,116 64,338 3,082,955 2,921,393 161,562

xi) Amount and type of guarantee margin

The margin amounts deposited in guarantee at December 31, 2012 and 2011 are comprised as follows:

Individual and Consolidated

Guarantee margin – Judicial
NTN – 517
Subtotal – 517

Guarantee margin – Exchange clearing house – BMC
LTN 10,870 1,029
Subtotal 10,870 1,029

Guarantee margin – BM8FBovespa.

LTN 60,250 139,008
Subtotal 160,250 139,008
Total 71,120 140,554

x) Cash flow hedge

At March 31, 2012, there were derivative financial instruments used as a cash flow hedge, consisting of a swap, the fair value of which totaled R$436,278, and hedged
items, subordinated debt and securities issued abroad, the balances of which, adjusted to market value, totaled R$368,365. The adjustments to market value were
recorded in a specific equity account. In the second quarter of 2012, Banco Pine decided to discontinue this hedge accounting and, as established in Circular 3082/02,
transferred the gain of R$3,651, net of tax effects, to results for the quarter.

7. CREDIT PORTFOLIO, GUARANTEES PROVIDED AND SECURITIES WITH CREDIT RISK

We present below a summary of the loan operation portfolio information at December 31, 2012 and 2011:

Página 16

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)
a) By type of loan:

TA]

PE 2012 2011 2012 2011
Publio sector 6,304 22,631 6.304 22,681
Working capital 2,186,731 2,336,923 2,338,349 2,630,090
Resolution 3844 (formeriy Resolution 2770) – 9,617 – 9,617
Overdraft account 12,086 23,265 12,086 23.265
BNDES/FINAME onlending 852,643 873,177 852,648 873,177
Paycheck deductible loans 35.926 43,115 35,926 43,115
Foreign currency financing 280,156 217,859 280,156 217,859
Export financing 798,784 503,819 798,784 503,819
Discounted notes and others – 65,653 – 65,653
Direct consumer financing (CDC) – vehicles 227 514 227 514
Buyer financing (Compror) 18,407 9,237 18,407 9,287
Subtotal Loan Operations 4,191,264 4,105,810 4,342,882 4,398,977
Debtors for purchase of assets!”” 114,120 31,185 114,120 31,185
Advances on foreign exchange contracts and income receivable 2 491,539 549,764 491,539 549,764
Credit Receivables ‘” 89,075 89,075
Credit portfolio 4,885,998 4,686,759 5,037,616 4,979,926
Loans for imports 8814 14,220 8814 14,220
Guarantees provided 2,114,296 1,687,365 2,114,296 1,687,365
Coobiigations in loan assignments 334 58,439 334 58.439
Guarantees provided and responsibilities 2,123,444 1,760,024 2,123,444 1,760,024
Notes and credits receivable'” 30,767 3,313 30,767 3,313
Corporate bonds ‘* 756,027 321,757 756,027 321,757
Securities with credit risk 786,794 325,070 786,794 325,070
Total expanded portfolio 7,796,236 6,771,853 7,947,854 7,065,020

(1 Recorded in “Other recevables – sundry” (Note 9a)
(2 Recorded in “Other labiities” and “Foreign exchange portfolio” Note 8)
U% Mostly promissory notes and recelvables certicates in the funds’ portfolio and in Banco Pine’s portfolio (Nate 6(a)).

b) By maturity:

LEO
IE

Up to 3 months 1,369,941 28.26 1,603 411 1,371,544 28.07
From 3 to 12 months 1,883,264 38.85 37.376 95.89 1,920,640 39.31
From 1 to 3 years 1,088,845 22.46 – – 1,088,845 22.29
From 3 to 5 years 367,983 7.59 – – 367,983 7.53
From 5 to 15 years 136,986 284 – – 136,986 281
Total credit portfolio 4,847,019 100.00 38,979 100.00 4,885,998 100.01
Up to 3 months 381,292 17.96 – – 381,292 17.96
From 3 to 12 months 580,128 27.32 – – 580,128 27.32
From 1 to 3 years 664,898 31.31 – – 664,898 31.31
From 3 to 5 years 477,887 2251 – – 477,887 22.51
From 5 to 15 years 19,239 091 – – 19,239 0.90
Total guarantees provided and responsibilities 2,123,444 100.01 – – 2,123,444 100.00
Up to 3 months 167,688 2131 – – 167,688 21.31
From 3 to 12 months 173,918 22.10 – – 173,918 22.10
From 1 to 3 years 201,585 25.62 – – 201,585 25.62
From 3 to 5 years 211,240 26.85 – – 211,240 26.85
From 5 to 15 years 32,363 4.12 – – 32,363 442
Total securities with credit risk 786,794 100.00 – – 786,794 100.00
Total expanded portfolio 7,757,257 38,979 7,796,236

LEO
ENE

Up to 3 months 1,369,941 27.41 1,603 411 1,371,544 27.23
From 3 to 12 months 1,883,264 37.68 37.376 95.89 1,920,640 38.13
From 1 to 3 years 1,240,463 24.82 – – 1,240,463 24.62
From 3 to 5 years 367,983 7.36 – – 367,983 7.30
From 5 to 15 years 136,986 2.73 – – 136,986 272
Total credit portfolio 4,998,637 100.00 38,979 100.00 5,037,616 100.00
Up to 3 months 381,292 17.96 – – 381,292 17.96
From 3 to 12 months 580,128 27.32 – – 580,128 27.32
From 1 to 3 years 664,898 31.31 – – 664,898 31.31
From 3 to 5 years 477,887 2251 – – 477,887 22.51
From 5 to 15 years 19,239 0.90 – – 19,239 0.90
Total guarantees provided and responsil 2,123,444 100.00 – – 2,123,444 100.00
Up to 3 months 167,688 2131 – – 167,688 21.31
From 3 to 12 months 173,918 22.10 – – 173,918 22.10
From 1 to 3 years 201,585 25.62 – – 201,585 25.62
From 3 to 5 years 211,240 26.85 – – 211,240 26.85
From 5 to 15 years 32,363 4.12 – – 32,363 442
Total securities with credit risk 786,794 100.00 – – 786,794 100.00
Total expanded portfolio 7,908,875 38,979 7,947,854

Página 17

(A free tran:

tion of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

LEO

IE
Up to 3 months 1,651,554 35.39 6,151 31.63 1,657,705 35.37
From 3 to 12 months 1,394,507 29.88 13,296 68.37 1,407,803 30.04.
From 1 to 3 years 1,196,144 25.63 – – 1,196,144 25.52
From 3 to 5 years 280,010 6.00 – – 280,010 5.97
From 5 to 15 years 145,097 3.10 – – 145,097 3.10
Total credit portfolio 4,667,312 100.00 19,447 100.00 4,686,759 100.00
Up to 3 months 277,044 15.74 – – 277,044 15.74
From 3 to 12 months 656,871 37.32 – – 656,871 37.32
From 1 to 3 years 202,343 11.50 – – 202,343 11.50
From 3 to 5 years 454,581 25.83 – – 454,581 25.83
From 5 to 15 years 169,185 961 – – 169,185 96t
Total guarantees provided and responsibilities 1,760,024 100.00 – – 1,760,024 100.00
From 1 to 3 years 72,530 22.31 – – 72,530 22.31
From 3 to 5 years 252,540 77.69 – – 252,540 77.69
Total securities with credit risk 325,070 100.00 – – 325,070 100.00
Total expanded portfolio 6,752,406 19,447 6,771,853

LEO

IE
Up to 3 months 1,651,554 33.29 6,151 31.63 1,657,705 33.29
From 3 to 12 months 1,394,507 28.11 13,296 68.37 1,407,803 28,27
From 1 to 3 years 1,241,717 25.03 – – 1,196,143 24.02
From 3 to 5 years 527,604 10.64 – – 573,178 1151
From 5 to 15 years 145,097 293 – – 145,097 291
Total credit portfolio 4,960,479 100.00 19,447 100.00 4,979,926 100.00
Up to 3 months 277,044 15.74 – – 277,044 15.74
From 3 to 12 months 656,871 37.32 – – 656,871 37.32
From 1 to 3 years 202,343 11.50 – – 202,343 11.50
From 3 to 5 years 454,581 25.83 – – 454,581 25.83
From 5 to 15 years 169,185 961 – – 169,185 96t
Total guarantees provided and responsibi 1,760,024 100.00 – – 1,760,024 100.00
From 1 to 3 years 72,530 22.31 – – 72,530 22.31
From 3 to 5 years 252,540 77.69 – – 252,540 77.69
Total securities with credit risk 325,070 100.00 – – 325,070 100.00
Total expanded portfolio 7,045,573 19,447 7,065,020

c) By economic activity sector:

Consolidated
2012 2011 2012 2011

Sugar and ethanol 1,144,383 1,260,168 1,166,457 1,301,433
Electric and renewable energy 1,039,048 540,793 1,039,048 549,941
Civil construction 907,379 653,800 925,388 681,986
Agriculture 665,999 473,622 689,671 518,686
Building and engineering – Infrastructure 504,045 549,081 529,777 595,831
Transportation and logistics 388,854 377,090 395,830 387220
Metal products 350,883 157,867 350,883 165,452
Specialized services 344,351 264,829 356,212 290,498
Foreign trade 332,186 372,916 332,186 372,916
Vehicles and parts 235,522 195,226 242,934 205,342
Foodstufís 234,768 213,971 246,208 230,529
Mining 192,512 34,460 192,512 34,460
Chemical and petrochemical 158,890 168,111 158,890 168,111
Telecommunications 152,618 214,116 156,508 219,175
Financial institution 147,986 212,953 155,766 223,104.
Hardware and home decor 136,037 70,003 148,696 88,725
Meal processing 130,581 236,907 130,581 236,907
Paper and pulp 111,674 63,415 111,674 63,415
Steel products 95,467 – 95,467 .
Beverages and tobacco 90.902 161,622 94,262 175782
Information technology 62,537 28,675 62,537 28,675
Individuals 53,340 128,320 53,340 128,320
Retail trade 51,299 38,693 51,299 33,693
Water and sanitation 42,901 19,813 42,901 19,313
Plastic and rubber 42,721 13,216 42,721 19,216
Texile and clothing 42.286 70,771 45,039 75,375
Medical services 39,224 16,383 39,224 16,383
Pharmaceuticals and cosmeticos 29,757 80,605 29,757 80,605
Communications and printing 20,668 27,182 20,668 27,182
Mechanics 19,912 33,670 19,912 33,670
Electroelectronics 15,604 52,581 15,604 52,581
Wholesale trade 11,415 20,705 11,415 20,705
Leather and footwear 6,487 13,335 6.487 13,335
Teaching institution – 18,454 – 18,454
Total expanded portfolio 7,796,236 6,771,853 7,947,854 7,065,020

Página 18

(A free tran:

BANCO PINE S.A. AND SUBSIDIARIES

tion of the original in Portuguese)

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

PINE

d) By risk level and allowance:

RENE

ECTS

TRA

Papers with credit

TOS

Total allowance

928,420
1,361,232
1,910,667
424,580
76,198
6,581
26,430
70,540
42,421
4,847,019

IoTmoov>z

a
5

941,386
1,386,003
2,007,566
441,512
76,198
6,581
26,430
70,540
42,421
4,998,637

IoTmoov>z

a
5

AR 1,597,064
A 1,049,926
B 1,425,046
o 423,676
D 48,701
E 12,451
F 64,945
G 3,450
H 42,054
Additional provision ‘”) –
Total 4,667,313

11,420
24,871
36,979

REE

ECTS

11,420
24,871
36,979

REE

ECTS

5,521

REE

ECTS

928,420
1,361,232
1,910,838
425,669
76,239
7,466
26,882
81,960
67,291
4,885,998

6,806
19,108
12,770
7,624
2,240
13,441
57,872
67,291

186,652

TRA

941,386
1,386,003
2,007,737
442,651
76,239
7,466
26,882
81,960
67,292
5,037,616

6,930
20,077
13,280
7,624
2,240
13,441
57,872
67,290

188,254

RE

1,597,064
1,049,926
1,425,104
424,290
53,895
12,473
71,662
4,830
47,575

4,686,759

5,250
14,251
12,727
5,383
3,742
35,892
3,381
47,575
44,929

173,070

RE

618,897
25,000
142,897

Papers with cre:
53

618,897
25,000
142,897

Papers with credit

325,070

Papers with credit

TOS

SS

Allowance for
papers with credit

1,547,317
1,386,232
2,053,735
425,669
76,239
7,466
26,882
81,960
67,291
5,672,792

1,560,283
1,411,003
2,150,634
442,651
76,239
7,466
26,882
81,960
67,292
5,824,410

47,575

5,011,829

6,931
20,587
12,770
7,624
2,240
13,441
57,372
67,291

188,206

Total allowance

Total allowance

5,250
14,251
12,727

5,383
3,742
35,832
3,381
47,575
44,929
173,070

Total allowance

AR 1,890,231
A 1,049,926
B 1,425,046
o 423,676
D 48,701
E 12,451
F 64,945
G 3,450
H 42,054
Additional provision ‘* –
Total 4,960,480

1,380
5,521

19,446

1,890,231
1,049,926
1,425,104
424,290
53,895
12,473
71,662
4,830
47,575

4,979,926

5,250
14,251
12,727

5,383

3,742
35,892

3,381
47,575
44,929

173,070

325,070

(% In December 31, 2011 there was additional provision in the amount of R$44,929, of which R$26,700 is B rated and R$18,229 is C rated.

d) By concentration level:

2012
pr]

TN

TN

2012
pr]

2,215,301
1,049,926
1,425,104
424,290
$53,835
12,473
71,662
4,830
47,575

5,304,996

5,250
14,251
12,727

5,383

3,742
35,832

3,381
47,575
44,929

173,070

Largest borrowers

Largest borrower 198,469
2nd to 10th 1,216,552
1istto 20th 823,888
21stto 50th 1,584,935
5tst to 100th 1,516,952
Other borrowers 2,455,440
Total expanded portfolio 7,796,236

EE
2.55
15.60
10.57
20.33
19.46
31.50
100.00

216,540
1,112,487

650,415
1,327,777
1,252,029
2,212,605
6,771,853

Página 19

198,469
1,216,552

890,377
1,584,936
1,516,952
2,600,568
7,947,854

ATT
2.50
15.31
10.45
19.94
19.09
32.72
100.00

1,231,730
2,526,072
7,065,020

(A free trans!

ion of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)
€) Banco Pine’s total expanded credit portfolio concentration by activity sector:

Consolidated

2011
Agricultural 107,391 59,907 107,391 104,971
Housing 27.811 15,390 27,811 15,390
Manufacturing 1,398,625 1,409,323 1,398,625 1,503,611
Commercial 188,500 163,125 188,500 163,125
Financial intermediation 99,188 21,779 99,188 31,990
Other services 5,773,549 5,000,846 5,925,167 5,144,510
Individuals 201,172 101,483 201,172 101,483
Total expanded portfolio 7,796,236 6,771,853 7,947,854 7,065,020
f) Change in the allowances tor loan losses and other loan losses, in accordance with Resolution 2.682/99:
EAT)
Details 2012 2011
Opening balance 173,070 116,082
Additions/Reversals 83,305 88,725
Amount written off (69,986) (64,253)
Exchange variation ‘” 263 2,516
Closing balance 186,652 173,070
TA
Details 2012 2011
Opening balance 173,070 116,082
Additions/Reversals 83,305 88,725
Amount written off (69,986) (64,253)
PDD Funds 1,602 –
Exchange variation ‘” 263 2,516
Closing balance 188,254 173,070

TW Exchange varon on the alowance for loan losses (PDD) of the overseas branch, classified in the “Other operating expenses” Ine in the statement of operations.

9) Change in the pro

m for loan operations assigned with coobligation:

Individual and Consolidated

Details 2012 2011
Opening balance 9,966 6,036
Additions – 8,801
Reversal (9,964) (4,871)
Closing balance!” 2 9,966
TU Presemted in “Other Informañior |

i) Credit assignments

For the year ended 31 December, 2012, loans were assigned without coobligation in the amount of R$94,436 to parties not related to the Institution (December 31, 2011 –
R$441,622, of which R$303,651 was assigned to Pine Crédito Privado Fundo de Investimento em Direitos Creditórios Financeiros with no gain or loss). These
assignments generated a loss in relation to their face value of R$74,156 (December 31, 2011 – R$ 63,716), without discounting the allowance for loan losses in the
amount of R$70,353 (December 31, 2011 – R$38,248). The results of the assignments are recorded in the “Other operating income/expenses” account. Additionally,
contracts previously written off with a loss of R$ 63,841 were transferred. These disposals generated a gain of R$ 1,062, recorded in “Loan Operations” .

j) Credit recoveries

For the year ended December 31, 2012, credits previously written off as a loss were recovered in an amount of R$ 4,009 (December 31, 2011 – R$12,618) recorded in the
“Loan operations” account.

k) Renegotiation of contracts

At December 31, 2012, renegotiated contracts totaled R$130,152 (December 31, 2011 – R$ 17,935). The original ratings attributed to these contracts were maintained.

8. FOREIGN EXCHANGE PORTFOLIO

Individual and Consolidated

Other receivables

2011
Exchange purchases pending settlement 513,509 583,641
Rights on exchange sales 54,018 32
Income receivable 9,260 18,746
Advances in local currency received (53,991) – . .
Exchange sales pending settiement – – 53,976 34
Liabilties for exchange purchases – – 503,436 531,374
Advances on foreign exchange contracts – (482,279) (531,018)
Total 522,796 602,419 75,133 390

Página 20

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

9. OTHER RECEIVABLES – SUNDRY

(a) These comprise the following amounts:

Advances and salary prepayments 205 – 205 313 – 313
Advances for payments on our behalf 5,004. – 5,004. 3,753 – 3,753
Deferred tax assets (Note 9/(b)) 87,217 55,835 143,052 85,712 56,158 141,870
Debtors for purchase of assets 29,937 84,183 114,120 15,363 15,822 31,185
Income tax available for offset (Note 16.b) 538 34,733 35,271 12,351 36,804 49,155
Amounts receivable from affilates 973 – 973 . . .
Fiscal incentive options – – – – 49 49
Notes and credits receivable 89,842 30,000 119,842 2,598 715 3,313
Sundry debtors 3,003 – 3,003 4,423 – 4,423
Total 216,719 204,751 421,470 124,513 109,548 234,061

Advances and salary prepayments 205 – 205 313 – 313
Advances for payments on our behalf 5,004. – 5,004. 3,753 – 3,758
Deferred tax assets (Note 9/)) 87,217 56,099 143,316 85,712 56,289 142,001
Debtors for purchase of assets 29,937 84,183 114,120 15,363 15,822 31,185
Income tax available for offset (Note 16.5) 856 35,623 36,479 12,350 37,473 49,823
Fiscal incentive options – – – – 49 49
Notes and credits receivable!” 89,842 30,000 119,842 2,598 715 3,313
Sundry debtors 6,701 – 6,701 6,675 – 6,675
Total 219,762 205,905 425,667 126,764 110,348 237,112

b) Deferred tax assets

At December 31, 2012 and 2011, the deferred tax assets and deferred tax liabilities related to income tax (IRPJ) and social contribution on net income (CSLL) were
comprised as follows:

Deferred tax assets

Allowance for

loan losses 45,948 27,569 73,517 43,178 25,907 69,085
MTM Cash flow hedge – – – 95 57 152
Adjustment of avallable-for-sale securities 214 129 343 620 am 991
Credits written off to loss 14,437 8,662 23,099 12,523 7,513 20,036
Futures market – Law 11196 2,714 1,629 4,343 334 200 534
Allowance for loss on loans

assigned with co-obligation 1 – 1 2,492 1,495 3,987
Provision for tax risks and

contingent liabiities 12,000 7,199 19,199 11,489 6,813 18,302
Provision for profit sharing 5,191 3,115 8,306 8,287 4,973 13,260
Provision for adjustment of loan assignments – – – 458 275 733
Provision for lawyers’ fees 2,344 1,406 3,750 2,960 1,776 4,736
Provision for equity accounting loss abroad 2,424 1,455 3,879 . – –
Provision for bank guarantees – – – 3,794, 2,277 6.071
Provision – FIDC 401 240 641 . – –
Provision for Resolution 3921 1,244 747 1,991 . – –
Provision for devaluation of assets 2,489 1,494 3,983 2,489 1,494 3,983
Total 89,407 53,645 143,052 88,719 53,151 141,870

Allowance for

loan losses 45,948 27,569 73,517 43,178 25,907 69,085
MTM Cash flow hedge – – – 95 57 152
Adjustment of available-for-sale securities. 214 129 343 620 371 991
Credits written off to loss 14,437 8,662 23,099 12,523 7,513 20,036
Futures market – Law 11196 2,714 1,629 4,343 334 200 534
Allowance for loss on loans.

assigned with co-obligation 1 – 1 2,492 1,495 3,987
Provision for tax risks and

contingent liabilities. 12,165 7,298 19,463 11,579 6,854 18,433
Provision for profit sharing 5,191 3,115 8,306 8,287 4,973 13,260
Provision for adjustment of loan assignments – – – 458 275 733
Provision for lawyers’ fees. 2,344 1,406 3,750 2,960 1,776 4,736
Provision for equity accounting loss abroad 2424 1,455 3,879
Provision for bank guarantees – – – 3,794 2,277 6,071
Provision – FIDC 401 240 641 – – –
Provision for Resolution 3921 1,244 747 1,991 – – –
Provision for devaluation of assets. 2,489 1,494 3,983 2,489 1,494 3,983
Total 89,572 53,744 143,316 88,809 53,192 142,001

Página 21

(A free tran:

tion of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

Martto-market adjustment of derivative

financial instruments 20,308 12,184 32,492 24,858 14,914 39,772
Adjustment of trading securities 11,394 6,836 18,230 3,784 2,270 6,054
Asset adjustment of judicial deposits 584 350 934 356 161 517
MTM trading shares – – – 39 23 62
MTM Cash flow hedge – – – 70 42 112
Total (Note 15.b) 32,286 19,370 51,656 29,107 17,410 46,517

Martto-market adjustment of derivative

financial instruments 20,308 12,184 32,492 24,858 14,914 39,772
Adjustment of trading securiies 11,394 6,836 18,230 3,784 2,270 6.054
Asset adjustment of judicial deposits 602 361 963 369 171 540
MTM trading shares – – – 39 23 62
MTM Cash flow hedge – – – 70 42 112
Total (Note 15.b) 32,304 19,381 51,685 29,120 17,420 46,540
Changes in deferred tax assets and deterred tax

Individual Consolidated
Deferred tax assets 2012 2011 EH EH
Opening balance 141,870 186,516 142,001 187,106
Amount recorded 163,930 168,756 164,425 169,325
Reversal (162,748) (213,402) (163,110) (214,430)
Closing balance 143,052 141,870 143,316 142,001

Opening balance 46,517 60,154 46,540 60,339
Amount recorded 107,362 64,995 107,700 88,699
Reversal (102,223) (78,632) (102,555) (102,438)
Closing balance 51,656 46,517 51,685 46,540

Projected realization of deferred tax assets and deferred tax liabilities

EAT

Upto 1 year 54,511 32,706 87,217 54,511 32,706 87,217
From 1 to 2 years 9,295 5,577 14,872 9,295 5,577 14,872
From 2 o 3 years 5,949 3,569 9,518 5,949 3,569 9,518
From 3 to 4 years 4,094 2,456 6,550 4,094 2,456 6,550
From 4 to 5 years 1,770 1,062 2,832 1,770 1,062 2,832
From 5 to 10 years 13,788 8,275 22,063 13,953 8,374 22,327
Total 89,407 53,645 143,052 89,572 53,744 143,316

Upto 1 year 10,264 6,158 16,422 10,264 6,159 16,423
From 1 to 2 years 3,710 2,226 5,936 3,710 2,226 5,996
From 2o 3 years 6,258 3,755 10,013 6,258 3,755 10,013
From 3 to 4 years 4,447 2,668 7,115 4,447 2,668 7,115
From 4 to 5 years 5,689 3,413 9,102 5,689 3,412 9,101
From 5 to 10 years 1,918 1,150 3,068 1,936 1,161 3,097
Total 32,286 19,370 51,656 32,304 19,381 51,685

10. INVESTMENTS

Pine Ass. em ASS an Pine

UC Investimentos _ Energia Eletr. ‘” Ad (AECA
Holding – % 99.990 10.00 99.998 99.999 99.9998 99.998 –
Number of shares held 10,000 10,000 892,298,000 77,399,000 500,000 500,000 –
Capital 10 10 13,384 77.400 1 500 .
Equity 4,117 3 38,074 80,429 35,009 234 .
Netincome (loss) 4,107 7 5,774 (165) 33,396 (278) 42,841
Investment amount 4,117 – 38,074 80,429 35,009 234 157,863
Equity in the results of investee: 4,107 – 5,774 (165) 33,396 (278) 42,834

Página 22

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

TS an Pine

ETE PESETA ATTE
Holding – % 99.998 100.00 99.9998 99.998 –
Number of shares held 892,298,000 77,400,000 500,000 500,000 –
Capital 13,385 77,400 1 1 .
Equity 32,300 80,594. 1,613 13 .
Netincome (loss) 8,723 2,276 1,612 12 12,623
Investment amount 32,300 80,594 1,613 13 114,520
Equity in the results of investee 8,723 2,276 1,612 12 12,623

1% Pine Corretora de Seguros Ltda. was consttuted on December 12, 2011. The company has capital of RS500, divided into 500 shares, fuly subscribed and paid in local currency.
(2 Pine Assessoria e Consultoria Ltda was consttuted on December 12, 2011. The company has capital f R$S00, divided into 500 shares, R$! was paid up upon constitution and the remaining RS499 wil be paid up in local currency up to January
2013.

E Ax the Extraordinary General Meeting (AGE) held on August 19, 2011, approval was given for a capitl increase in Pine Comercializadora de Energia Elétrica Ltda. (formerly BP Empreendimentos e Particisagóes S.A.), of R$70,000, from RS7.400 to.
AS77.400, with the issue of 60,069,871 new nominative common shares. On February 16, 2012, the corporation was transformed into a limited labiity partnership and ts name was changed from BP Empreendimentos e Participagóes S.A. to Pine.
Comercializadora de Energía Elétrica Ltda.

9 Pine Assessoria em Comercializacáo de Energía Lida. was consiltuted on April 24, 2012. Capital is R$10, comprising 10,000 quotas of RS1 each, fully subscribed and paid up in Brazlian currency and distributed as follows: 90% – Pine
Comerciaizadora de Energia Elétrica, 10% – the Institution.

U% Pine Planejamento e Servigos Lida. was consttuted on June 26, 2012. Capital is R$10, comprising 10,000 quotas of RS1 each, ful subscribed and paid up in Brazilan currency and distributed as folows between the partners: 0.01% – Pine

Comercializadora de Energia Elétrica, 99.99% – the Institution
11. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

a) Property and equipment in use

TT

COTE COTA

Facilities 20 10,690 (8,932) 1,758 10,690 (8,932) 1,758
Furniture and equipment in use 10 2,962 (1,459) 1,503 2,962 (1,459) 1,503
Communications system 10 1,426 (739) 687 1,428 (739) 689
Data processing system 10 921 (849) 72 921 (849) 72
Security system 10 31 (19) 12 31 (19) 12
Transport system 20 26,267 (1,333) 24,934 26,267 (1,333) 24,934
Total 42,297 (13,331) 28,966 42,299 (13,331) 28,968

LA LETA EST

CTS CTN CA
Facilities 20 10,446 (7,221) 3,225 10,446 (7,221) 3,225
Furniture and equipment in use 10 3,599 (1,763) 1,836 3,599 (1,763) 1,836
Communications system 10 1,866 (923) 943 1,868 (923) 945
Data processing system 10 1,074 (972) 102 1,074 (972) 102
Security system 10 147 (119) 28 147 (119) 28
Transport system 20 1,705 (444) 1,261 1812 (477) 1,335
Total 18,837 (11,442) 7,395 18,946 (11,475) 7471

b) Intangible assets

IA
ETS

Expense for acquisition and
development of software 10 9,450
Total 9,450

DAA]
ETA

Expense for acquisition and
development of software 10 9,072
Total 9,072

12. DEPOSITS

a) Analysis by maturity:

Accumulated
EAS

(7.397)
(1,397)

Accumulated
EAT

(6,671)
(6,671)

9,915
9,915

9,537
9,537

ST

(7,862)
(7,862)

STE

(7,062)
(7,062)

3 Interbank OS

LT deposits. LT LT LOTO
No stated maturity 30,134 – – 30,053 – –
Up to 30 days – 296,206 32,749 – 283,819 32,749
From 31 to 60 days – 271,205 40,128 – 269,568 40,128
From 61 to 90 days – 416,556 10,282 – 412,695 10,282
From 91 to 180 days – 443,007. 1,506 – 441,089 1,506
From 181 to 360 days – 332,480 24,267 – 332,261 24,267
More than 360 days – 1,555,997 21,221 – 1,428,511 12,068
Total 30,134 3,315,451 130,153. 30,053. 3,167,943 121,000

Página 23

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

DAT] 3 Interbank Demand uN

OS deposits rot OS ro
No stated maturity 112,415 – – 111.826 – –
Up to 30 days – 386,244 24,059 – 375,101 24,059
From 31 to 60 days – 153,694 36,553 – 153,694 36,553
From 61 to 90 days – 281,324 8,542 – 281,324 8,542
From 91 to 180 days – 416,850 25,731 – 416,850 25,034
From 181 to 360 days – 393,472 22,752 – 385,049 3,639
More than 360 days – 1,732,424 8,752 – 1,653,800 8,058
Total 112,415 3,364,008 126,389 111,826 3,265,818 105,885

b) Analysis by market segment:

DEE e Interbank
LORETO rr deposits.

Manufacturing, commercial and

services 29,705 1,032,986 – 29,705 1,032,986 –
Related companies 81 147,508 9,153 . – –
Individuals 348 16,445 – 348 16,445 .
Financial institutions and

investment funds. – 2,118,512 121,000 – 2,118,512 121,000
Total 30,134 3,315,451 130,153 30,053 3,167,943 121,000

Manufacturing, commercial and

services 111,690 1,067,175 – 111,647 1,067,175 –
Related companies 546 98,190 20,504 – – –
Individuals 179 125,623 – 179 125,623 –
Financial institutions and
Investment funds. – 2,073,020 105,885 – 2,073,020 105.885
Total 112,415 3,364,008 126,389 111,826 3,265,818 105,885
13. FUNDS OBTAINED IN THE OPEN MARKET
Aa]
2012 2011
National Treasury Bills (TN) 1,674,484 2,565,657
Federal Treasury Notes (NTN) – 593,961
Debentures 158,177 30,798
Total 1,832,661 3,190,416

14. INTERBANK ACCOUNTS – LOCAL CORRESPONDENTS

These comprise amounts received in advance related to installments of loan operations assigned with coobligation to be transferred to the assignees on the corresponding
due dates, recorded at the present value of the obligation on the base date, in the amount of R$37 at December 31, 2012 (December 31, 2011 – R$6,366 in the individual
and consolidated).

15. OTHER LIABILITIES
a) Collection and payment of taxes and similar:
At December 30, 2012, this balance consists of tax on financial transactions (IOF) payable in the amount of R$ 936 (December 31, 2011 – RS 1,182).

b) Tax and social security contributions

Taxes and contributions on

third-panty services 220 – 220 220 – 220
Taxes and contributions on salaries 2,981 2,981 3,106 – 3,106
Income tax 6911 – 6911 10,409 – 10,409
Service tax (ISS) 425 – 425 562 – 562
Withholding income tax (IRRF) 2,776 – 2,776 2,783 – 2,783
Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) 340 – 340 480 – 480
payable
Provision for deferred income tax(IR) and social contribution (CS) (Note 9.b) 16,422 35,234 51,656 16,423 35,262 51,685
Provision for tax risks (Note 16(b) and (c)) – 42,056 42,056 – 42,591 42,591
Total 30,075 77,290 107,365 33,983 77,853 111,836

Taxes and contributions on

third-panty services 117 – 117 117 – 117
Taxes and contributions on salaries 2,870 – 2,870 2,920 – 2,920
Taxes and contributions on income – – – 5,568 – 5,568
Service tax (ISS) 283 – 283 444 – 444
IRRF 964 – 964 1.011 – 1.011
IRRF – on interest on own capital 700 – 700 700 – 700
PIS and COFINS payable 226 – 226 352 – 352
Provision for deferred IR and CS (Note 9.b) 16,033 30,484 46,517 16,033 30,507 46,540
Provision for tax risks (Note 16(b) and (c)) – 29,197 29,197 – 29,574 29,574
Total 21,193 59,681 80,874 27,145 160,081 87,226

Página 24

(A free translation of the origi

in Portuguese)

PINE
BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

e) Sundry

Individual

Provision for personnel expenses 27,582 – 27,582 27.829 – 27.829
Cashiers checks 4,916 – 4,916 4,916 – 4.916
Provision for contingent

liabilties- civil (Note 16.0) – 18,298 18,298 – 18,298 18,298
Provision for contingent

liabilties – labor (Note 16.d) – 4,665 4,665 – 4,665 4,665
Provision for losses – assignment

with coobligation (Note 28.a) – 2 2 – 2 2
Provision for guarantees – – –
Provision FIDC – 1,602 1,602 . . .
Other administrative expenses 2,768 9,374 12,142 2,830 9,374 12,204
Accounts payable 49 – 49 49 – 49
Sundry creditors – local 846 – 846 881 – 881
Total 36,161 33,941 70,102 36,505 32,339 68,844

Provision for personnel expenses 39,142 – 39,142 39,214 – 39,214
Cashiers checks 3,718 – 3,718 3,718 – 3,718
Provision for contingent

liabilties- civil (Note 16.0) – 16,025 16,025 – 16,025 16,025
Provision for contingent

liabilties – labor (Note 16.d) – 7,124 7,124 – 7,124 7,124
Provision for losses – assignment

with coobligation (Note 28.a) – 9,966 9,966 – 9,966 9,966
Provision for guarantees – 15,178 15,178 – 15,178 15,178
Other administrative expenses 2,185 11,840 14,025 2,206 11,841 14,047
Sundry creditors – local 1,997 – 1,997 1,997 – 1,997
Capital subscription to be paid up 2 – 2 2 – 2
Total 47,044 160,133 107,177 47,137 60,134 107,271

16. CONTINGENT ASSETS AND LIABILITIES AND LEGAL OBLIGATIONS – TAX AND SOCIAL SECURITY CONTRIBUTIONS
a) Contingent assets

There were no contingent assets at December 31, 2012 or 2011.

b) Legal obligations – taxes and social security

These are legal and administrative processes related to tax and social security obligations. The main processes are as follows:
PIS: R$ 32,011 – Individual – R$32,538 – Consolidated (December 31, 2011 – R$26,831 – Individual – R$27,201 – Consolidated): the Institution and Pine Investimentos
filed legal proceedings designed to suspend the provisions of Article 3, paragraph 1, of Law 9718/1998, which changed the calculation basis of PIS and COFINS so that
they are levied on all corporate revenues. Prior to this rule, suspended in innumerous recent decisions by the Federal Supreme Court, only revenues derived from services
rendered and the sale of merchandise were líable to this tax. The injunction filed by Banco Pine received a partially favorable ruling and the appeal lodged by the Federal
Government was dismissed.Currently awaiting judgment of the admissibility of the Special and Extraordinary Appeals filed by the Federal Government.

COFINS: In November 2005, the Federal Supreme Court (STF) judged as unconstitutional paragraph 1 of Article 3, of Law 9718/98, which introduced the new calculation
base for COFINS determination purposes from February 1999, broadening the concept of revenue. Accordingly, the calculation base of COFINS was decreased and gave
rise to the unquestionable right to recover the amount of overpaid tax. The injunction filed against the Federal Government by the Institution claiming the right to offset the
refund of the incorrectly paid amount of COFINS against other current taxes was successful.

Based on the decision of May 21, 2010 which rejected the two extraordinary appeals lodged by the Federal Government, an interlocutory appeal for wit of certiorari on
extraordinary appeal was filed. Upon referral to the Federal Supreme Court, the Chief Justice referred the case records to the Court of origin, on the grounds of Article 543-
B of the Code of Civil Procedures, considering the analysis of the General Repercussion already issued through Special Appeal RE 585235.Subsequently, on May 18,
2011, the interlocutory appeal was dismissed and the Federal Government filed petitions seeking clarification of the decision, claiming that a material error had occurred in
respect of the aforementioned RE and indicating that RE 609096 was correct. The petitions for clarification were dismissed. Further, as a result of this sentence, a special
appeal was lodged for the same purpose. The Deputy Chief Judge of the Regional Federal Court of the 3rd Region received the special appeal as a request for
reconsideration and upheld the appealed sentence. Notified of this decision, the Federal Goverment lodged no further appeal. The final ruling was handed down on
October 21. 2011 and certified on November 8. 2011

Supported by the opinion of its legal advisors and responsible attorneys, according to whom the case is settled at the STF with no possibility of any further appeal by the
National Treasury, the Institution reversed the corresponding provision for contingencies, for the period from May 2005 to October 2011, considering that it no longer
consists of a legal obligation and no loss is probable, and recognized a net revenue in the total amount of R$150,510 on a Individual basis and R$ 151,357 on a
Consolidated basis, for final quarter of 2011, which was recorded in the “Other operating income” account and in the “Tax expenses” account.

In this respect, the Institution will file a request for proof of claim at the Brazilian Federal Revenue authority (RFB), regarding COFINS which was overpaid during the
period from June 2000 to April 2005, in the historical amount of R$15,679 in the Institution and R$ 15,872 on a Consolidated basis, which adjusted for inflation, based on
the variation in the SELIC rate up to December 30, 2012, totaled R$34,490 (December 31, 2011 -R$ 33,154) in the Institution and R$34,919 (December 31, 2011 -R$
33,565) on a Consolidated basis. Based on the final and unappealable sentence and the administrative procedure filed at the RFB, a corresponding tax credit was
recognized in “Other receivables – Tax recoverable”, as a counter entry to the “Other operating income” account.

The amounts of the legal obligations and respective judicial deposits are presented as follows:

Social integration program

(Pis)
Social contribution on revenues – – 160,295 150,728 – – 161,197 151,573
Total 32,011 26,831 192,222 177,440 32,538 27,201 193,649 178,644

Página 25

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

PINE

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

c) Contingencies classified as probable are generally provided tor and for the years ended December 31, 2012 and 2011 are comprised as follows:

Tax contingencies 10,045 2,366
Labor contingencies 4,665 7,124
Civil contingencies 18,298 16,025
Total 33,008 25,515

d) Activity in liability provisions

2,076 1,660

536 746
2,657 1,602
5,269 4,008

10,053

4,665
18,298
33,016

2,373 2,347 1,917
7,124 596 746
16,025 2,657 1.602
25,522 5,540 4,265

Opening balance 29,197 7,124
Amount recorded (reversed) 10,991 (2,980)
Adjustment 1,868 521
Closing balance 42,056 4,665

16,025 52,346
1,294 (8.610)

979 21,283
18,298 65,019

165,423
(149,285)
13,059
29,197

5,788 5,238 176,449
1,132 10,426 (137,727)

204 361 13,624
7,124 16,025 52,346

Opening balance 29,574 7,124
Amount recorded (reversed) 11,116 (2,980)
Adjustments 1,901 521
Closing balance 42,591 4,665

16,025 52,723
1,294 (8.485)

979 21,316
18,298 65,554

167,015
(150,648)
13,207
29,574

€) We present below the main suits and proceedings tor which the likelihood of loss is considered possible:

Labor: At December 31, 2012, the Institution had no labor claims classified as possible.
Civil: At December 31, 2012, the Institution had no civil claims classified as possible (December 31, 2011 – R$6,663).

17. BORROWINGS AND ONLENDINGS

E

5,788 5,238 178,041
1,132 10,426 (139,090)

204 361 13,772
7,124 16,025 52,723

Local onlendings – official institutions
Foreign onlendings

Foreign borrowings

Total

py EN
EL PRO
70,958 251,418

– 10,236

389,617 503,245
460,575 764,899

mE EN
ES 12 months

O
330,475

330,475

From 1to
O

Ea
OO NE

132,022 107,435 892,308

– – 10.236

– 61,305 954,167

132,022 168,740 1,856,711

Local borrowings – other institutions”
Local oniendings – official institutions – BNDES
Foreign onlendings

Foreign borrowings

Total

70,958 251,418

– 10,236
389,617 509,245
460,575 764,899

330,475

330,475

E

EOS GRE
TA ES
118,735 – 118,735
132,022 107,435 892,308
– – 10,236
– 61,305 954,167
250,757 168,740 1,975,446

Local borrowings – other institutions
Local oniendings – official institutions – BNDES
Foreign onlendings

Foreign borrowings

Total

pS EN
3 months PO
– 2,012

75,854 223,746
985 139
481,430 451,448
558,269 677,345

O
327,980
9,379

337,309

ET
O

ETA ET
5 years Ea

– – 2.012

197,586 102,145 867,261

56,253 – 66,756

3,958 – 936,836

197,797 102,145 1,872,865

Local borrowings – other institutions”
Local oniendings – official institutions – BNDES
Foreign onlendings

Foreign borrowings

Total

pS EN
3 months PO
– 2,012

75,854 223,746
985 139
481,430 451,448
558,269 677,345

7 At December 91, 2012, A$118,735 comprises the amount of the senior shares of FIDC (December 31, 2011 – R$228,292)

18. FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES

a) Funds from acceptance

327,930
9,379

337,309

AE
ES

ETA ET
15 years

228,292 – 230,304

197,586 102,145 867,261

56,253 – 66,756

3,958 – 936,836

426,089 102,145 2,101,157

CEA)

Real estate letters of credit – LC!
Agribusiness letters of credit (LCA)
Financial Bills (LF)

Total

07 From 3 to
ES

2,236 9,729

285,197 92,171

– 1,101

287,433 103,001

Página 26

7,830
562,941
570,771

E a
5 years TS

– – 11.965

– – 385,198

8,529 1,694 574,265

8,529 1,694 971,428

(A free translation of the origi

in Portuguese)

PINE
BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)
Individual and Consolidated

07 From 3 to TE From 3 to From 5 to

ES gíS OE TS
Real estate letters of credit – LC! 3,581 – – – – 3,581
Agribusiness letters of credit (LCA) 216,103 67,503 23,449 – – 307,055
Financial Bills (LF) 5,256 – 1,003 – 16,743 23,002
Total 224,940 67,503 24,452 – 16,743 333,638

b) Securities issued abroad

These are funds obtained through the global fixed-rate note program which, at December 31, 2012, amount to R$312,268 (December 31, 2011 – R$308,655), maturing up
to 2022 and interest of up to 8.80% per annum plus LIBOR and exchange variation, and working capital in the amount of R$8,367 (December 31, 2011 – R$12,803)
maturing up to 2014.

We present below an analysis of the tranches and balances adjusted at the balance sheet dates:

COTE)

CT SS Final
[Tranche – USS of Issuance rate maturity pe Eo
4,091 US$ 20%a.a+ Libor Jun/2014 8,367 12,808
8,000 US$ 1,85% a.a + Libor Nov/2014 16,391 22,573
9.394 US$ 2/0%aa+Libor Oc12013 19,295 35.421
1,044 US$ 8,7%a.a+ Libor Jan/2017 2,226 2,042
39,833 US$ 3/0%aa+Libor Jar/2014 81,616 201,720
25,000 US$ 4,2%aa+Libor Apr/2022 51,555 46.899
73,000 CLP 6,0% a.a + Var.UF Dec/2017 141,185 –
Total 320,635 321,458
Current (109,159) (158,565)
Total long-term liabilities 211,476 162,893

The Institution is required to comply with certain financial covenants related to the maintenance of specific performance, liquidity and debt ratios tied to financing
agreements in the amount of R$19,295 (FMO-Nederlandse Financierings Maatschappij Voor Ontwi-The Hague), which if not met could cause settlement to be accelerated.
Further, the Institution has lines with certain multilateral bodies (IFC – International Finance Corporation and IDB – Inter-American Development Bank) which guarantee the
Institution’s loans in the amount of US$100,000 (R$204,350 based on the US dollar ptax rate at December 31, 2012). At December 31, 2012, Banco Pine was using the
amount of US$40.356 (R$82,467 based on the US dollar exchange ptax rate at December 31, 2012)”, and was compliant with the performance indexes.

19. SUBORDINATED DEBT

COTE)

ET Maturity CT Interest rate 2012 2011
Fixed rate notes Public 1/6/2017 – US$125,000 8.75% p.a + LIBOR 267,705 245,944
Fixed rate notes Private 12/29/2016 US$15,000 4.82% p.a. + LIBOR – 28,134
Financial bilis Private 8/21/2017 R$45,152 111.3% of CDI 49,567 30,141
Total 317,272 304,219
20. EQUITY

a) Capital

Subscribed and paid-up capital totals R$935,683 and comprises 108,631,100 (December 31, 2011 – 84,034,266) nominative shares, of which 58,444,889 (December 31,
2011 – 45,443,872) are common shares and 50,186,211 (December 31, 2011 – 38,590,394) are preferred shares with no par value. The Institution is authorized to
increase its capital, without the necessity of any amendment to the bylaws, by up to a further 100,000,000 common or preferred shares, all of which shall be nominative,
book-entry and with no par value, by decision of the Board of Directors.

As deliberated at a meeting of the Board of Directors held on September 25, 2012 and approved by the Central Bank on November 12, 2012, the capital increase in the
amount of R$139,635 through the issue of 3,220,203 shares, with 2,100,839 to shareholder DEG – Deutsche Investitions und Entwicklungsgesellschaft mbH (“DEG”) and
1,119,364 to other shareholders, nominative preferred shares and 6,558,123 nominative common shares to the controlling shareholder, from R$796,048 to R$935,683,
divided into 108,631,100 nominative shares, of which R$58,444,889 are common shares and 50,186,211 are preferred shares, with no par value.

At the Extraordinary General Meeting held on December 22, 2011 and approved by Central Bank on February 9, 2012, it was decided: a) a capital increase from
R$466,358 to R$ 666,358, with no new issue of shares, through the incorporation of a portion of the balance of the Premium on Subscription of Shares reserve, in the
amount of R$ 200,000; b) a further capital increase to R$ 796,048, with the issue of 12,274,766 nominative new shares, of which 6,442,894 were common shares and
5,831,872 were preferred shares, which will be distributed to the stockholders as a bonus, based on a ratio of 14.17769510243 new bonus shares for each lot of 100
shares held. Subsequent to the issue of the new stock, the total number of shares increased from 86,578,008 nominative shares to 98,852,774 nominative shares, of which
51.886.766 are common shares and 46.966.008 are oreferred shares.

As deliberated at a meeting of the Board of Directors held on September 8, 2011 and October 25, 2011 and approved by the Central Bank on January 6, 2012, an increase
in share capital in the value of R$ 43,752 was approved with the issuance of 2,543,742 preferred shares, 2,543,604 in favour of the shareholder DEG – Deutsche
Investitions – und Entwicklungsgesellschaft Mbg (“DEG”),and 138 in favour of others shareholders.

b) Capital reserve

The capital reserve, pursuant to the provisions of Law 11638/07, may only be used to (i) absorb losses which are in excess of retained eamings and the revenue reserves:
(ii) increase capital; (iii) cancel treasury shares; and (iv) pay dividends on preferred shares provided that they are entitled to this benefit.

Cc) Revenue reserve

The Institution’s revenue reserve comprises legal and statutory reserves. The balance of the revenue reserves may not exceed the Institution’s capital, and any excess
must be capitalized or distributed as dividends. The Institution has no other revenue reserves.

Legal reserve – Pursuant to Law 11638/07 and the bylaws, the Institution must appropriate 5% of its net income for each year to the legal reserve. The legal reserve shall
not exceed 20% of the Bank’s paid-up capital. However, the Institution may choose not to appropriate a portion of its net income to the legal reserve for the year in which
the balance of this reserve plus the capital reserves, exceeds 30% of its capital.

Statutory reserve – Pursuant to Law 11638/07, the bylaws may constitute other reserves, provided that their purpose, the percentage of net income to be appropriated
thereto and the maximum amount to be maintained in each such reserve ¡s specified. The appropriation of funds to these reserves should not be approved to the detriment
of the mandatory dividend. The Institution recorded a statutory reserve of 100% of its net income, in the amount of R$78,080, after the appropriation of 5% to the legal
reserve of R$9,373, the deduction of the payment of interest on own capital of R$60,245 and dividends in the amount of R$39,755, to maintain the Institution’s operating
marain compatible with its asset transactions.

Página 27

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

d) Dividends and interest on own capital

Stockholders are entitled to a minimum dividend of 25% of annual net income, adjusted pursuant to Brazilian corporate legislation, subject to the approval of the General
Meeting of stockholders.

In accordance with the provisions of Law 9249/95, of December 26, 1995, interest on own capital was accrued, calculated based on the variation in TJLP for the period.
This interest on own capital decreased the expense for income tax and social contribution for the year ended December 31, 2012 by R$24,098 ( December 31, 2011 –
R$17.961).

We present below the approved dividends and interest on own capital for the net income of period:

Ny

A A

Net of withholding

Description AS O
tax amount

O

Interest on own capital 12/26/2012 1/11/2013 0.1501 16,154 0.1276 13,731

Interest on own capital 9/24/2012 10/11/2012 0.1430 14,083 0.1216 11,971
Interest on own capital 6/22/2012 7112/2012 0.1529 15,113 0.1300 12,846
Interest on own capital 3/27/2012 4/12/2012 0.1507 14,895 0.1281 12,661
Dividends 12/26/2012 1/11/2013 0.1286 13,846
Dividends 9/24/2012 10/11/2012 0.1617 15,917
Dividends 6/22/2012 7112/2012 0.1011 9,887
Dividends 3/27/2012 4/12/2012 0.0011 105

In accordance with Letter Circular 3516 of July 21, 2011, the proposed additional dividend in excess of the minimum dividend, in the amount of R$18,559 (December 31,
2011 – R$ R$26.726) is classified in a specific equity account.
We present below the reconciliation of dividends and interest on own capital for the years ended December 31, 2012 and 2011:

Netincome 187,453 161,514
Legal reserve (9,373) (8,076)
Calculation base 178,080 153,438
Interest on capital 60,245 52,827
Withholding tax – IRRF (15%) (9,037) (7,924)
Prepaid dividends 39,755 37,173
Amount proposed 90,963 82,076
% of calculation base 51.08% 53.49%

e) Treasury shares

At a meeting of the Board of Directors on September 16, 2011,the acquisition of self-issued shares of Pine was authorized for up to 2,154,011 preference shares to be
held in treasury for subsequent sale, as well as payment of variable remuneration for the statutory directors of the Bank in agreement with the terms of Resolution
3.921/11, without reducing equity. lt was repurchased 713,395 shares in the amount of R $ 9,588 at an average cost of 13.44. The authorisation prevailed until August 31,
2012.

Ata meeting of the Board of Directors on December 6, 2012, the acquisition of selfissued shares of Pine was authorized for up 1,219,659 preference shares, to be held in
treasury for subsequent sale, as well as payment of variable remuneration for the statutory directors of the Bank in accordance with the terms of Resolution 3.921/11,
without reducing equity. This plan have already been repurchased 600,000 shares in the amount of R $ 7,679 with an cost of 12.80. Authorization for issue can be granted
until December 5, 2013.

During the second semester Pine transferred 318,555 preferred shares of its own issuance, which were held in treasury, for the Board of Directors as variable
remuneration in accordance with Resolution 3.9211/11 in the amount of R$ 4,517 with an average cost of R$ 14.18.

At 31 December, 2012 the bank had 994,840 preferred shares on treasury of its own issuance in the amount of R$ 12,750. The market value of these shares corresponded
to R$ 14,923. At 31 December, 2011 there were no treasury shares.

1) Carrying value adjustments

COTA

2012 2011
Available-for-sale financial assets (843) (2,478)
Debt instruments (843) (2,478)
Cash flow hedge – (102)
Hedged item – (681)
Hedging instrument – 279
Other 7 87
Income tax 343 1,032
Total (423) (1,461)

21. STATEMENT OF OPERATIONS

a) Loan operations

Individual RT

2012 2011 2012 2011

Advance to depositors 664 267 664 267

Loans 347,276 430,915 381,753 456,095

Discounted bilis 119 961 119 961

Financing 146,459 159,341 146,459 159,341

Financing – foreign currency 18,578 41,425 18,578 41,426

Total 513,096 632,909 547,573 658,090
b) Results of securities

Individual E

2012 2011 2012 2011

Fixed.income securities (FIDC) 16,557 10,614 – –

Fixedincome securities 479,636 487,911 486,305 455,601

Expense for fixed-income securities (3,998) (9,216) (4,284) (0.316)

Variable-income securties – 3,280 – 3,688

Expense for variable+income securities (2,197) (5,674) (2,197) (6,048)

Total 489,998 436,915 479,824 443,925

Página 28

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

c) Funds obtained in the market

Individual TA]

2012 2011 ENA 2011
Expenses for interbank deposits 15,547 25,933 14,423 23,290
Expenses for time deposits 307,280 346,594 297,128 342,367
Expenses for purchase and sale commitments 145,243 194,093 146,314 194,093
Expenses for securities issued abroad 74,317 93,417 74,317 93,418
Expenses for contribution to credit guarantee fund 17.826 13,748 17,826 13,748
Expenses for agríbusiness letters of credit 27,374 27,839 27,374 27,839
Expenses for financial bills 28,880 5,171 28,880 5,171
Expenses for real estate letters of credit 1,138 81 1,138 81
Total 617,705 706,876 607,400 700,007

d) Borrowings and onlendings

TA]

2012, 2011 2012 2011
Expenses for onlendings (BNDES) 37.893 40,546 37,893 10,546
Expenses for foreign onlendings – Resolution 3844 3,756 4,496 3,756 4,496
Expenses for payables to foreign bankers 104,793 199,389 104,793 199,389
Expenses for local loans – FIDC – – 19,410 30,328
Expenses for foreign borrowings 3,849 3,685 3,849 3.685
Total 150,291 248,116 169,701 278,444

e) Income from services rendered

TA]

EA 2012 2011
Credit facility fee. 15,642 15,642 9,347
Commission for guarantees 28,866 28,866 17,637
¡Commission for intermediary services 5,135 65,256 27.714
Other 716 3,061 1,665
Total 50,359 112,825 56,363
1) Personnel expenses
TY TA]
2012 2011 2012 2011
Salaries 55.865 44,931 58,099 16,125
Benefits 7,930 6,441 8,125 6,596
Social charges 19,673 16,567 20,504 16,991
Directors’ fees 969 719 984 732
Training 480 380 482 335
Intems 544 298 585 319
Total 85,461 69,286 88,779 71,098
9) Other administrative expenses
A
2012 2011 2012 2011
Water, electricity and gas 432 387 139 395
Rents 8,246 7,257 8412 7.440
Leased assets 2,585 3,062 2,585 3.062
Communications 3,592 3,149 3,608 3,155
Charitable contributions so 58 104 83
Maintenance and repair of assets 2,222 1,356 2.227 1,360
Material 157 448 157 448
Data processing 8,230 7,511 8,280 7.563
Promotions and public relations 2,405 1,531 2.418 1,599
Advertising and publicity 2,109 1,455 2,182 1,500
Publications 909 658 986 736
Insurance 395 770 397 773
Financial system services 14,858 10,831 15,237 11,208
“Third-pany services 6,513 5,089 7,075 5,506
Surveillance and security 3,274 2,095 3,274 2,095
Specialized technical services 12,016 33,572 12,267 33,692
Transportation 1,592 1,380 1,616 1,388
Travel 3,273 2,443 3.438 2.468
Fines imposed by BACEN 1 10 1 10
Court decisions 9,307 8,638 9,807 8,638
Other administrative expenses 3,590 4,798 3,875 4,956
Amortization and depreciation 4,512 3,884. 4,590 3.998
Total 90,408 100,382 92,265 102,013
h) Tax expenses
TJ TA]
2012 2011 2012 2011
Sence tax (ISS) 2871 2,478 5,994 3,263
Social contribution on revenues(COFINS) 2,297 15,706 4,420 16,366
COFINS legal process ‘” – 9,648 – 10,965
Social integration program (PIS) 3,338 3,188 3,798 3.323
Other 2,605 2,737 2.622 2,772
Total 1,111 39,757 16,829 36,689

(*) Amount related to the COFINS legal process described in Note 16.b)

Página 29

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

i) Other operating income

TY A

2012 2011 2012 2011
Recovery of charges and expenses 964 4,049 958 4.034
Indexation 2,908 14,265 2.951 14,466
Exchange variation – liablity transaction 12 – 12 –
Reversal of provision for transfer of assignments 939 1,974 939 1,974
Reversal of provision for credit assignment with coobligation 9,964 4,066 9,964 4,066
Reversal of provision for guarantees 15,178 – 15,178 .
Indexation of judicial deposits 8,793 – 8.850 .
Reversal of provision for tax risks 1,079 5,799 1,079 5,799
Reversal of judicial deposits 279 en 279 8
Other operating income ‘? 14,840 805 3,285 958
Reversal of provision for labor risks 1,467 – 1,467 –
Income of securities and receivables 1,593 3,891 1,593 3,891
Reversal of provision for COFINS legal process |” – 160,158 – 162,322
Recovery of expense for COFINS legal process ‘” 1,338 33,153 1,354 33,565
Total 59,349 228,971 47,909 231,886
“T Amount related to the COFINS legal process described in Note 16.b)
(21 Refers mainly to the cost sharing between affiliates for the use of the common structure of R$ 11,699 in the Individual.
j) Other operating expenses

TY TA]

2012 2011 2012 2011
Provision for labor and civil proceedings 2.927 12,782 3,146 12,782
Indexation of taxes and contributions 424 16,759 457 17,069
Charges on credits assigned 2,020 73,449 2,020 73.449
Reversal/provision for transfer of assignments!” (528) 1,617 (628) 1,617
Expenses for assignment’? 74,387 – 74,387 –
Provision for guarantee – 15,178 – 15,178
Provision for credit assignment with coobligation – 3,931 – 3,981
Provision for FIDC 1,602 – 1,602 .
Other operating expenses 2,589 7,918 4,040 8.016
Total 83,421 131,634 85,124 132,042

“7 provision for charges on recepis in advance of installments of credit assigrment transactions
U% R74,156 comprises losses for loan assigrments with coobligaion, as described in Note 7.1)

k) Non-operating results

For the year ended December 31, 2012, the amount of R$ R$20,045 in the Individual and R$20,037 in the Consolidated (December 31,2011 – R$4,404 Individual and
Consolidated) corresponds mainly to the sale of assets received as payment in kind for the settlement of loan transactions,

22. INCOME TAX AND SOCIAL CONTRIBUTION

Reconciliation of expenses for income tax and social contribution on net income:

TY TA]
2012 2011 2012 2011
Income before income tax (IRP.)) and social contribution (CSLL)
and less profit sharing 235,992 220,749 245.448 227,821
Interest on capital 60,245 52,827 60,245 52,827
Result before taxes on income 175,747 167,922 185,203 174,994
Current rate 40% 40% 40% 40%
Projected expense for IRP and CSLL, based on current tax rate (70,299) (67,169) (74,081) (69,998)
Temporary differences 15,044 43,304 14,916 43,716
Effects of income tax and social contribution on temporary differences (13,280) (27,754) (13,153) (28,052)
Other adjustments. 19,996 (7,616) 14,323 (11,973)
Income tax and social contribution (48,539) (59,235) (57,995) (66,307)
Comprising:
Current taxes (85,259) (31,481) (44,842) (68,255)
Deferred taxes (13,280) (27,754) (13,153) (28,052)
Expense recognized (48,539) (59,235) (57,995) (66,307)

23. RELATED-PARTY TRANSACTIONS
a) Management compensation

For the year ended December 31, 2012, the Institution approved the new Compensation Plan which addresses the standards and guidelines for the payment of fixed and
variable compensation applicable to the members of the Board of Directors and statutory directors and, at the discretion of the specific committee, other executive officers
with important positions and functions, in accordance with the provisions of Resolution 3921/10, of the National Monetary Council.

The new Plan has the following main objectives: (¡) alignment of the Institution’s executive compensation practices in relation to its risk management policy; (ii) prevention
of conduct that increases risk exposure to levels above those considered prudent in the short, medium and long-term strategies adopted by the Institution; (ii) creation of
an instrument designed to retain and attract talent for the Institutior’s key positions; and (iv) adaptation of the compensation policy to meet the requirements of Resolution
3921/10.

The compensation defined in the Plan takes the following into consideration: (i) the Institution’s current and potential risks; (ii) the Institution’s overall result, in particular,
recurring realized income (net book income for the period adjusted based on unrealized results and free of the effects of controllable non-recurring events); (li) capacity to
generate cash flows; (iv) the economic environment in which the Institution operates and its related trends; (v) long-term sustainable financial bases and adjustments to
future payments, based on the risks assumed, fluctuation in capital costs and liquidity projections; (vi) the individual performance of the Directors based on the target
agreements entered into by each director as established in the PLR and filed in the Institution’s head office; (vii) the performance of the business unit; and (vii) the relation
between the Directors’ individual performance. the business unit performance and the Institution’s overall performance.

Variable compensation is calculated as follows:

a) up to 50% of the amount established for variable compensation is paid in kind, at the same time as the payment of Profit Sharing (PLA).

b) an amount corresponding to 10% of that established for variable compensation shall be paid in preferred shares of the Institution at the same time as the PLR payment.

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PINE
BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(in thousands of reas, except unit share price)
c) an amount corresponding to the remaining 40% of variable remuneration will be paid in preferred shares of the Institution and will be granted to the employee at the
same time as the payment of the amount in kind. The right to dispose of these shares will be on a “Deferred” basis, increasing in the line with the level of responsibility of
the Director.

The delivery of the shares related to deferred variable compensation attributable to the Directors will only occur if none of the following are verified during the applicable
deferral period: (i) a significant decrease in realized recurring income;(ii) loss in the Institution or business unit, or (iii) verification of errors in accounting and/or
administrative procedures which affect the results determined during the vesting period of the right to variable compensation.

The Institution’s Compensation Committee, approved at the general meeting held on January 16, 2012, will be responsible for (i) presenting proposals to the board of
directors regarding the various forms of fixed and variable compensation, as well as benefits and the special recruitment and termination programs; (ii) monitoring the
implementation and operation of the Institution’s management compensation policy; (iii) reviewing annually the Institution’s directors’ compensation policy, recommending
adjustments or improvements to the board of directors; (iv) recommending to the board of directors the total amount of the directors’ compensation to be submitted to the
general meeting, in accordance with Article 152 of Brazilian Corporation Law; (v) evaluating future internal and external scenarios and their possible impact on the
directors’ compensation policy; (vi) analyzing the Institution’s directors’ compensation policy in relation to market practices, to identify significant differences as compared
to peer companies, proposing necessary adjustments; (vii) ensuring that the directors’ compensation policy is permanently in line with the risk management policy, the
Institution’s current and expected financial position and the provisions of this resolution; and (viii) preparing annually, within a period of ninety days as from December 31,
of each year, a Compensation Committee Report, as required by National Monetary Council Resolution 3921/10.

For the year ended December 31,2012, variable remuneration was determined in the amount of R$5,872, in accordance with the criteria defined in the new plan.

COTA

Salaries and Fees of the Board of Directors and Executive Board 2012 2011
Fixed compensation 7,841 5,549
Variable compensation 17,669 13,357
Other 2,997 952
Total 28,507 19,858

Short-term benefits paid to directors mainly comprise salaries and social security contributions, paid leave and sick pay, profit sharing and bonuses (when payable within
twelve months subsequent to the year-end closing) and non-monetary benefits (such as health care and free or subsidized goods or services).

b) Employment agreement termination

The employment agreements are valid for an indefinite period. The officer is not entitled to any financial compensation when the employment relationship is terminated
voluntarily or due to the non-fulfillment of his/her obligations. If the employment agreement is terminated by the Institution, the officer may receive indermification. At
December 31, 2012, compensation in the amount of R$1,246 was paid to officers who left the Institution. No compensation was paid for the year ended December 31,2011.
c) Related parties

The related-party transaction mainly with the companies listed in Note 2, are carried out at the average amounts, terms and rates evidenced in the market, effective on the
corresponding dates with commutative conditions and comprise the following:

Income (expenses)

2012 2011 2012 2011
Marketable securities 169,502 105,214 16,557 10,614
Pine Crédito Privado – FIDO 169,502 105,214 16,557 10,614
Demand deposits 144 649 – –
Pine Investimentos 55 546

Pine Comercializadora de Energia Eléftrica – 40

Pine Corretora 8 1

Pine Assessoria 5 1

Pine Assesoria em Comercializagáo de Energia 3

Pine Planejamento Ltda 9

Directors and immediate fami!” 64 6 – –
Interbank deposits 9,152 20,504 (1,224) (2,643)
Pine Investimentos 9,152 20,504 (1,224) (2,643)
Time deposits 161,590 108,528 (10,209) (5,145)
Pine Investimentos 26,546 14,145 (1,602) (637)
Pine Comercializadora de Energia Eléftrica 80,541 81,293 (7,065) (6,588)
Pine Corretora 220 750 (45) .
Pine Assessoria 35,421 2,001 (1,403) m
Pine Planejamento Ltda 4,782 – (86) .
Directors and immediate fami!” 14,080 10,339 (68) (919)

(1 These amounts are not consolidated.
d) Capital ownership

The following table presents the direct investment in common and preferred shares, at December 31, 2012 and 2011, of stockholders with more than five percent of total
shares and of members of the Board of Directors and Executive Board.

2012
TT TT ET E EJ LJ
[Stockholders shares O) shares ES E shares(%)
Individuals 58,444,889 100.00 15,595,863 31.08 74,040,752 68.16
Board of Directors – – 3,281,010 6.54 3,281,010 3.02
Executive officers – – 2,635,774 5.25 2,635,774 2.39
Total 58,444,889 100.00 21,512,647 42.87 79,957,536 73.57
E
TT TT ET E EJ LJ
[Stockholders shares O) shares ES E shares(%)
Individuals 45,443,872 100.00 14,370,556 37.23 59,814,428 71.18
Board of Directors – – 2,150,452 5.57 2,150,452 256
Executive officers – – 602,994 1.56 602,994 072
Total 45,443,872 100.00 17,124,002 44.36 62,567,874 74.46

Página 31

(A free translation of the original in Portuguese)

RR PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

24. COMMITMENTS, GUARANTEES AND OTHER INFORMATION

2012 2011
Sureties and guarantees 2,114,296 1,687,365
Credit assignment with co-obligation 334 58,439
Letter of credit 8,814 14,220
Total 2,123,444 1,760,024

25. EMPLOYEE BENEFITS

The Institution makes monthly contributions to a private pension company for VGBL and PGBL plans, at the option of the participant, in an amount equivalent to 1% of the
employee’s gross salary, provided that the employee also contributes at least 1% of his/her gross salary, to supplement their social security benefits, as part of a defined
contribution plan, and this is the sole responsibility of the Institution as sponsor.

For the year ended December 31, 2012 totaled R$ 342 (December 31, 2011 – R$ 279).

26. PROFIT SHARING PROGRAM

Banco Pine has a profit sharing program (PPLR) ratified by the Bank Employees’ Trade Union.
The general assumptions of this program are: (a) business unit performance; (b) establishment of a fund for distribution across the organization; and (c) assessment of the

skills and the meeting of targets in the supporting areas. The related expenses were recognized in the “Profit sharing” account”.
27. RISK AND CAPITAL MANAGEMENT

a) Introduction and overview

Banco Pine is exposed to risks resulting from the use of financial instruments which are continuously measured and monitored and has an analysis structure made up of a
board of directors, a council and a committee that assess the following risks:

Credit risk

Liquidity risk

Market risks

Operational risks

Risk management framework

The Board of Directors is responsible for identifying and controlling risks; however, there are other independent areas which are also responsible for managing and
monitoring risks.

b) Credit risk
Definition

Credit risk is the exposure to loss in the case of total or partial default of customers or counterparties in fulfilling their financial obligations with the Institution. Credit
risk management seeks to support the definition of strategies, in addition to establishing limits, including an analysis of exposure and trends, as well as the effectiveness of
the credit policy.

Credit risk management
Duties:

+ Formulate Credit Policies with all the Institutior’s units, including collateral requirements, credit assessment, risk rating and presentation of reports, legal and
documentary procedures, as well as compliance with regulatory and statutory requirements.

+ Establish the structure for approval and renewal of Credit lines. Limits are established and approved by the Credit Committee.

+ Revise and assess Credit risk. The Credit area evaluates all credit exposure which exceeds established limits, prior to the release of the credit lines to the
customers by the related business unit. Renewals and revisions of credit lines are subject to the same review process.

+ Limit concentration of exposure by counterparties, geographic regions and economic sectors, and by credit rating, market liquidity and country.

+ Develop and maintain the Institution’s risk classification to categorize exposure according to the degree of risk of financial loss and focus management on inherent
risk. The risk classification system is used to calculate credit exposure. The current risk classification structure includes degrees of credit risk and availability of
guarantees or other tools to mitigate credit risk.

+ Offer advice, guidance and specialized techniques to promote credit risk management best practices throughout the Institution.
Credit analysis and granting:

+ Assess the risks involved in transactions and the customers’ ability to settle their obligations according to the contracted terms.
Credit risk controls and management:

+ Perform preventive monitoring of active customers designed to anticipate default in the portfolio of operations involving credit risk, support decisions and commercial
strategies and provide data that permit the Credit Committee and Executive Board to monitor compliance with Banco Pine’s Strategic Planning.

Special Asset Management (Credit recovery department):
+ The Institution has a specific credit recovery area which is designed to support the areas involved in the collections process, and to identify and resolve potential risks to

the Institution, seeking agile and effective solutions to minimize possible losses, to be a source of information regarding payments which are overdue or which for some
reason are no longer certain, and to promote control over the risks which, pursuant to the policy established by the Institution, are managed by the Special Assets Area.

e) Liquidity risk
Definition

Liquidity risk is associated with possible difficulties the Institution may face in meeting its obligations resulting from its financial liabilities.

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PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(in thousands of reais except unit share price)
Liquidity risk management

Liquidity risk management seeks to protect the Institution from possible market developments that generate liquidity issues. Accordingly, the Institution monitors its
portíolios with regards to maturities, volumes and the liquidity of its assets.

Daily control is carried out through reports in which the following items are monitored:
+ Maturity mismatches between payment and receipt flows Group wide;

xx Projection of liquidity stress scenarios defined by the Asset-Liability Committee (ALCO).

This information is checked against the Institution’s cash position each day and assessed each week by ALCO.

Liquidity is managed by the Market, Liquidity and P£L Risk Oversight Board, which reports to the Risk Control Oversight Board.
d) Market risk

i) Definition

Market risks are related to possible monetary losses due to fluctuations in variables that impact market prices and rates. Oscillations of financial variables such as
the price of input material and end products, inflation, interest rates and foreign exchange rates have the potential for causing loss in almost all companies and,

therefore, represent financial risk factors.

The Market Risk to which an institution is exposed is mainly due to three factors: a) exposure – amount exposed to risk; b) sensitivity – the impact of price

fluctuations; and c) variation – the magnitude of price variations. We stress that, among these factors, exposure and sensitivity are controllable by the Institution as

part of its appetite for risk, while variation is a market characteristic, and as a result out of the Institution’s control.

Market risks can be classified under different types, such as interest rate risk, foreign exchange risk, commodities price risk and share price risk. Each type represents the
risk of incurring losses due to oscillations in the respective variable.

li) Market risk management

Market risk is managed in a centralized manner by an area that is independent in relation to the trading desk and is chiefly responsible for monitoring and analyzing
market risk originating in positions assumed by the Institution vis-a-vis its appetite for risk as defined by ALCO and approved by the Board of Directors.

Market risk is managed daily by the Market Risk department, which calculates the Value at Risk (VaR) and generates the Duration Gap of Primitive Risk Factor
mismatches of assets in the Institution’s portfolio.

Amounts are compared daily to the VAR limits, exposure by Primitive Risk and Stop Loss Factors established by ALCO and approved by the Institution’s Board of
Directors.

For stress tests, scenarios considering bear and bull markets on the Commodities and Futures Exchange, as well as changes to the interest rate curves, are used.
Scenarios generated by ALCO may also be used.

iii) Methodologies
Fair value:

The purpose of marking to market (Fair Value) is to ensure that the pricing of assets and liabilities in the Institution’s portfolio is as transparent as possible for shareholder
protection.

Value at risk (VaR):

VaR measures the worst expected loss in a horizon given by normal market conditions in a given confidence level, that is, VAR provides a measure of market risk.
Market risk management uses VaR as a measure of the Group’s potential losses. For the calculations, the parameters used are the horizon of one day and a 99%
confidence interval. The calculation is based on closing market prices, taken from different sources (Anbima, BM8FBovespa, and the Brazilian Central Bank, among
others).

The VaR analysis is performed by market, vertex and risk factors associated with the interest curve, share prices, foreign exchange and commodities. If the VaR limit is
surpassed, an evaluation of the operations will be performed and those that present more risks will be readjusted by the Treasury in order to reduce risks and seek
alignment with the maximum exposure limit. Market liquidity will be evaluated as these operations are readjusted.

iv) Sensitivity analysis
Pursuant to CVM Instruction 475, of December 17, 2008, we present below the possible impacts in the net income generated by the sensitivity analysis for all transactions

involving financial instruments, which expose the Institution to risks arising from exchange and interest rate fluctuations or any other types of exposure at December 31,
2012:

TAS

Scenarios
Exposure AO AO) E
Fixed interest rate variations (541) (28,484) (66,969)
IGPM coupon variations 90 (756) (1,511)
IPCA coupon variations (272) 2,767 5.534
TJLP rate TULP variations 671 913 1,826
US dollar coupon rate Exchange coupon variation (553) 234 469
Other currency coupon rate Exchange coupon variation 1 (9) (19)
LIBOR Other currencies Variation in LIBOR (265) (2,419) (4,837)
Currencies Change in exchange variation 8 (833) (667)
Total (uncorrelated sum)” (3,159) (39,381) (78,762)
Total (correlated sum)” (861) (28,087) (56,174)

“Uncorrelated sum: sum of he resulis obtained in the worst case stress scenarios for each risk factor.
*Correlated sum: the worst result of the sum of he stress test scenarios of all of the risk factors considering the correlation between them.

Página 33

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¡tion of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

Scenario comprising the variation in market factors between December 31, 2012 and January 7, 2013 (variation in the fixed rate from 7.14% to 7.12% in a 1-year curve and from 8.44% to
8.49% in a 4-year curve, variation in the US dollar from 2.044 to 2.031, and variation in the IPCA coupon from 0.82% to 0.94% in a 1 year curve).

Scenario | – Probable

. , Soenario comprising a 25% shock to the market interest rate curve amounts (disclosed by BMEF), and to the closing prices (US dollar and equity), as in the following example:
Scenario Il – Possible

Market rate New market rate
Curve (1 year) Shock (1 year)
Fixed interest rate (PRE) 7.14% 25% 8.92%

Price index (IGPM) 1.60% 25% 2.00%

Price index (IPCA) 0.82% 25% 1.02%

TJLP rate 1.47% -25% 1.10%

US dollar coupon rate 1.34% -25% 1.01%

Other currency coupon rate 0.91% 25% 1.14%

LIBOR – USD 0.83% -25% 0.62%
Currencies 2.0435 25% 2.5544

Scenario comprising a 50% shock to the market interest rate curve values (disclosed by BM8F), and in the closing prices (US dollar and equity), as in the following example:
Scenario Ill – Remote

Market rate New market rate
Curve (1 year) Shock (year)
Fixed interest rate (PRE) 7.14% 50% 10.71%

Price index (IGPM) 1.60% 50% 2.40%

Price index (IPCA) 0.82% 50% 1.29%

TJLP rate 1.47% -50% 0.73%

US dollar coupon rate 1.34% -50% 0.67%

Other currency coupon rate 0.91% 50% 1.37%

LIBOR – USD 0.83% -50% 0.41%
Currencies 2.0435 50% 3.0653

* For Scenarios Il and Il, the result of the high or low stress scenario was considered to obtain the most significant portfolio losses.
e) Capital management

Capital management is an important process that runs the institution in order to optimize the use of capital and achieve its strategic objectives. In order to generate stability
in the financial results and improve the allocation of capital, continuous improvement is fundamental to the management and control of credit, market, liquidity and
operational.

According to Resolution n*3.988/11 from Central Ba nk, capital management is defined as a continuous process:

+ Capital monitoring and control carried out by the Institution;
+ Assessing the need for capital to face the risks to which the Institution is subject;
+ Planning targets and capital requirements, based on the Institution’s strategic objectives.

Policies and strategies for capital management, considers a prospective position, anticipating capital needs arising from possible changes in market conditions and are
periodically reviewed by the Executive Board and the Board of Directors, in order to determine their compatibility with the strategic plan of the Institution.

Financial Institutions are required to permanently maintain capital compatible with the risks of their activities, represented by Required Regulatory Capital (PRE). PRE is
calculated considering, at least the sum of the portions of credit risk, market risk and operational risk. Compliance with the regulatory capital limits is strictly followed by
management and monitored daily by the risk area.

At December 31, 2012, the Institution’s Basel ratio was 16.19% (December 31, 2011 – 18.48%), calculated based on the consolidated financial information.

Reference equity (PR) 1,477,645 1,313,674
Tier! 1,220,446 1,016,629
Equity 1,219,946 1,015,081
Martto-market adjustments 500 1,548
Tier 257,199 297,045
Subordinated debt 287,699 298,593
Martto-market adjustments (500) (1,548)
Required regulatory capital (PRE) 1,004,123 781,922
Credit risk 899,670 760,492
Market risk 95,559 11,749
Operational risk 8,894 9,681
Surplus PR 473,522 531,752
Basel ratio – % 16.19% 18.48%

Banco Pine, pursuant to Circular 3477/09, reports information on a quarterly basis related to the management of risk and required regulatory capital (PRE). The report
containing related details, structure and methodologies is available on the following website: www.pine.com.br/ri

1) Equity to fixed asset ratio

In accordance with BACEN Resolution 2286/96, the equity to fixed assets ratio ¡s limited to 50.0%. At December 31, 2012, the equity to fixed assets ratio was 12.36%
(December 31, 2011 – 6.99%).

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PINE
BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

(Un thousands of reais, except unit share price)

28. OTHER INFORMATION

a) Provision for credit assignment with coobligation

At December 31, 2012, the Institution had a provision for losses in the amount of R$2 (December 31, 2011 – R$9,966) related to loan operations assigned with co-
obligation in the total amount of R$334 (December 31, 2011 – 58,439). This provision is recorded in Other liabilities- sundry.

b) Insurance

The Institution’s insurance strategy is based mainly on risk concentrations and materiality, and policies are contracted at amounts established by Management, considering
the nature of its business and the advice of its insurance brokers. Insurance coverage at December 31, 2012 is as follows:

5 AN
Directors and Officers Liabiity (D8:0) Civil liabty for directors and officers 20,000
Vehicles Fire, robbery and colision for 11 vehicles 2,286
Buildings, machines, fumiture and fixtures Any material damage to facilities,

machinery and equipment 12,000,
Bankers insurance Cash 300
Aircraft insurance Arcraft-part guarantees 339,560

c) Operating lease
Banco Pine has liabilities generated by operating leases. The amounts corresponding to the commitments for leased equipment are not presented in the balance sheet,

since the related lease agreements do not include a purchase option. The cost of the lease agreements is recognized in the statement of operations in the “Administrative
expenses – leased assets” account.

COTE)
2011

Expense for leased assets

Machinery and equipment leasing 4.54% 2 965 913
Aircraft leasing ‘” 6.10% 2 1,620 2,149
Total 2,585 3,062

Tin September 2012 the lease of aircraft contract ended.

d) Fair value of financial instruments

In accordance with CVM Instruction 235, we present below a comparison between the carrying amounts of financial assets and liabilities measured at amounts other than
fair value and their corresponding fair values at the end of the year.

Carrying amount

Assets

Short-term interbank investments(1) 404,587 404,587
Loan operations (i) 4,034,669 4,154,628
Other recelvables(i) 902,500 694,734
Total financial assets 5,341,756 5,253,949

Liabilities

Demand deposits (il 30,053 30,058

Interbank deposits 121,000 121,000
Time deposíts (iv) 3,118,806 3,167,943
Funds from acceptance and issuance of securies (4) 1,308,575 1,292,063
Borrowings and onlendings (iv) 1,972,096 1,975,446
‘Subordinated debt (iv) 329,499 317,272
Total financial liabilities 6,880,029 6,903,777

We present below the methods and assumptions used to estimate fair value:

i) The fair values of the short-term interbank investments substantially approximate their carrying amounts.

ii) The loan operations and other receivables are measured net of the allowance for loan losses. The fair value of these operations represents the discounted value of the
expected future cash flows. The expected cash flows are discounted at current market rates to determine their fair values.

iii) The estimated fair values of the demand and interbank deposits substantially approximate their carrying amounts.

iv) The estimated fair values of the time deposits and other loans which are not quoted in an active market are based on discounted cash flows, using the interest rates for
new debts with similar maturities.

29. SUBSEQUENTS EVENTS

On February 4, 2012 at a meeting of the Board of Directors an increase of capital was approved with a minimum of R$ 26,954,999.40 and maximum of R$ 86,124,004.60,

through the issue of a minimum of 1,887,605 and maximum of 6,031,093 new preferred shares, all nominative without, par value. The issue price will be R$14.28.

A Proparco – Societe de Promotion et de Participation Pour La Cooperation Economique S.A. (“Proparco”) has a strong commitment to subscribe 1,887,605 preference
shares of the Bank, to the value of R$ 26,954,999.40, as a consequence of the preferred subscription rights of the controlling shareholders of the Bank.

Rights will be given to all ordinary shareholders that hold a shareholder position in the Bank on February 4, 2013, for a period of 30 days, to exercise their preemptive
rights, from February 5, 2013 to March 6, 2013. The shareholders holding these preference shares can subscribe for the preferred shares arising from the increase in
proportion to their equity holding.

After the subscription of shares and the integralization of the capital increase a new meeting of the Board of Directors will be announced, to approve partial or complete
capital increase, within the limit of authorized capital. After approval by the Board of Directors, the capital increase will be subject to authorization by the Central Bank.

Página 35

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=78a5f77640dbe95b67ec9a3b367c4612VFdwQmVFMTZRWGxOUkVGNFRucE5ORTlCUFQwPQ==&secuencia=-1&t=1682366909