PINE
Av. das Nacóes Unidas 8,501/30* andar, Sáo Paulo, SP PIN b
BMAaFBOVESPA: PINE4
www.pine.com/ir
Quarterly Earnings Release – 2Q13 (BR GAAP)
PINE REPORTS NET INCOME OF R$84 MILLION IN 1H13,
ANOTHER RECURRENT QUARTER IN ALL BUSINESS LINES
Sáo Paulo, August 12, 2013 – PINE (BMEFBOVESPA: PINE4), a wholesale bank focused on establishing and maintaining long-
term relationships with large corporate clients and investors, announces today its consolidated results for the second quarter
of 2013 (2Q13), presented in BR GAAP. Key data for the period follows.
RS millions
Total Loan Portfolio * Total Funding Shareholders’ Equity
17.7%
–
8,994
7,642 6,972 7,111 M0
1,053
Jun-12 Jun-13 Jun-12 Jun-13 Jun-12 Jun-13
Fee Income Net Income ROAE
-3.2% -8.7% -450 bps
62 60 92 18.6%
84 14.1%
1412 1413 1412 1413 1412 1413
Y Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares)
Other Highlights
= Positive revenue contributions from all business lines in the first half: 63.1% from Corporate Credit, 29.4% from FICC,
7.1% from PINE Investimentos, and 0.4% from Treasury.
= Maintenance of the positive liquidity gap for over 12 quarters: 15 months for credit, versus 16 months for funding.
= Liquid balance sheet, with cash position of R$1.5 billion, equivalent to 44% of time deposits.
= PINE was ranked among the 16 largest players in derivative transactions and the second largest player in commodity
derivatives according to Cetip – Brazilian OTC Clearing House.
= PINE is among the 15 largest banks offering credit to large corporates and the sixth Brazilian controlled private owned
bank, according to the Melhores e Maiores ranking compiled by Exame magazine.
= Also according to Exame magazine, PINE went up 5 positions in the ranking of largest banks by equity and today holds
the thirtieth place, being the thirteenth among Brazilian controlled private owned banks.
= In July 2013, PINE joined Protocolo Verde – “Green Protocol”, an agreement between Febraban and the Ministry of the
Environment to support development that does not compromise future generations.
= On August 6, the Board of Directors approved a new share buyback program with a limit of up to 1,942,417 preferred
shares and valid for one year.
Investor Relations +55 11 3372-5343 |Raquel Varela
Alejandra Hidalgo
Luiz Maximo
Ana Carolina Lopes
Contents
Macroeconomic Scenario 3
Business Performance 4
Financial Performance 4
Financial Margin 5
Fee Income 5
Personnel and Administrative Expenses 5
Efficiency Ratio 5
Corporate Credit 6
Loan Quality and Provision for Loan Losses – Resolution 2682 6
FICC 8
PINE Investimentos 9
Funding 9
Asset and Liability Management 10
Capital Structure 10
About PINE 11
Balance Sheet 12
Income Statement 13
PINE
Macroeconomic Scenario
The second quarter of 2013, especially its second half, was marked by certain fundamental changes in the US and Brazil,
chiefly affecting the interest/exchange rate tandem not only domestically, but also in most of the developed and emerging
markets. In the US, the shift in tone by various FED officials towards containing the monetary stimulus by reducing the
quantitative easing in 2013 (rather than in 2014) and the institution’s more optimistic market outlook in regard to the
recovery of employment and GDP growth pushed up 10-year Treasury yields to around 2.5%-2.6% p.a. This was sufficient to
generate a deterioration in the sovereign risk of several important economies and push up the dollar in comparison with the
currency basket and, in particular, the Real.
The devaluations hit the currencies of both the emerging and developed economies, affecting them through three distinct
channels: reductionss in commodity prices (common to Brazil, Chile, Colombia, Australia and South Africa), a
deceleration/reduction in foreign investment inflow (shared by Brazil, Peru, Australia, Colombia, Turkey, Russia, South
Africa and India), and economic, social and political instability (common to Brazil, Turkey and South Africa). The point in
common, therefore, in regard to the devaluation of virtually all currencies against the U.S. dollar is the slowdown or reversal
of capital inflows triggered by the FED”s change in the posture.
Reinforcing the appreciation of the dollar, the downward revision of expected Chinese GDP growth in 2013 and 2014 to 7.0%
(versus the previous 8.0%-8.5%) and prospects of a recession in the Eurozone (where we expect a GDP slide of 0.4% in 2013)
have led to global growth expectations of only 3.1%. This has in turn has led to a downturn in agricultural and non-
agricultural commodity prices, a deterioration in the operational portion of the external accounts of traditional commodity-
exporting countries and a consequent devaluation of their respective currencies since the beginning of the year (e.g. Brazil,
Chile, Colombia, Australia, Turkey, South Africa, Russia and, to a lesser degree, Mexico).
Finally, the social catharsis that took hold of Brazil, very different in nature from the recent social and political turmoil that
swept through South Africa and Turkey, must bear some portion of blame for the devaluation of the Real by implying
additional fiscal deteriorations and populist-driven increases in government spending. Given a government that has to
produce credibility shocks to attract net foreign capital inflow, even more so when the external accounts are suffering, the
strategy of reducing primary surpluses and the implementation/acceleration of populist spending does not appear to be the
best way of reining in the devaluation of the Real and its probable inflationary effects.
The problem is that even credibility shocks have a limited effect when the gradual slowdown in international liquidity ¡is
combined with the abrupt and significant worsening of Brazil’s balance of payments. In fact, these two forces configure (and
determine) a weaker Real of between 2.25/US$ and 2.30/US$, and create inflationary prospects consistent with a structural
variation of 6.0% p.a. in the IPCA consumer price index, even more so against a background of full employment (seasonally-
adjusted unemployment equal to or lower than 6.0%).
The Brazilian government’s pursuit of greater credibility is both necessary and clear. In the ambit of the finance ministry, ¡it
takes the form of a R$38 billion reduction in discretionary spending, while in the ambit of the Central Bank, it is understood
here as an attempt to ensure the less distant (instead of sooner) convergence of expected inflation to the mid-point of the
target. Thus the main point of our expectation of a year-end Selic of 9.5% lies in the fact that the Central Bank’s objective is
to reduce inflation to around 5.5% p.a. and ensure that this tendency persists into 2014, even if the economy grows by only
2% in 2013.
At the end of the day, it is Brazil’s economic growth that pays the bill. The more accentuated devaluation of the Real
(characterized by greater volatility) is normally associated with steeper inflation and higher interest rates. This picture
becomes even more unstable when there is full employment and the economy is relying on increased household (exhausted)
and government consumption. In this case in particular, popular pressure for social and infrastructure spending is even
greater, implying a probable additional reduction in the primary surplus (as a percentage of GDP) through an increase in
current spending and/or tax breaks, instead of prioritizing public spending cuts. The most likely outcome of all this is greater
domestic and foreign aversion to Brazil”s risk, in turn leading to a slowdown in private investments, the lower productivity of
production factors and exceptionally modest GDP growth of between 1.5% and 2.2% p.a. in 2013 and 2014.
Business Performance
PINE
PINE is a wholesale bank focused on establishing and maintaining long-term relationships with large corporate clients and
investors. lts strategy is based on knowing its clients well and understanding their businesses and potential in order to build
customized financial solutions and alternatives. This strategy requires a diverse range of products, highly qualified human
capital and efficient and agile risk management, areas in which the Bank is consistently evolving.
Products and services complementary to credit remained with participation around 40% to overall revenue in the first half.
This strengthens the increasingly more efficient allocation of capital and value creation in all the Bank’s business lines.
1H1
Corporate
Credit
Treasury
115% 58.4%
FICC
19.8%
PINE
Investimentos
10.3%
Financial Performance
1H13
Treasury
0.4%
Corporate
Credit
63.1%
FICC
29.4%
PINE
Investimentos
7.1%
PINE recorded Shareholders” Equity of R$1.2 billion, 19.6% higher than in June 2012, influenced by the capital increase
carried out by PINE”s controlling shareholder, management, DEG, Proparco and minority shareholders, which was concluded
in April 2013. Annualized Return on Average Equity (ROAE) reached 12.9% in the quarter and 14.1% in the first half.
Earnings and Profitability
Net income (R$ millions)
Annualized ROAE
Annualized ROAAw *
Annualized financial margin before provision
Annualized financial margin after provision
Balance Sheet (R$ millions)
Total assets
Loan portfolio 2
Risk weighted assets
Deposits *
Funding
Shareholders equity
Credit portfolio quality
Non performing loans – 90 days
Credit coverage index
Performance
BIS ratio
Efficiency ratio
Earnings per share – * (RS)
Book value per share – * (RS)
Market Cap * (RS)
E
39
12.9%
2.1%
4.9%
3.3%
10,457
8,994
7,845
3,581
7,111
1,259
0.6%
3.4%
17.0%
38.1%
0.35
11.35
1,330
Na qx a 1412
46 46 84 2
15.5% 18.7% 14.1% 18.6%
2.4% 2.5% 2.1% 2.7%
5.5% 7.8% 5.0% 7.1%
4.8% 6.1% 3.9% 6.0%
10,204 10,038 10,457 10,038
8,405 7,642 8,994 7,641
7,293 7,683 7,845 7,683
3,521 3,831 3,581 3,831
6,589 6,972 7,111 6,972
1,260 1,053 1,259 1,053
0.6% 0.2% 0.6% 0.2%
3.4% 3.7% 3.4% 3.7%
17.1% 15.9% 17.0% 15.9%
37.7% 28.2% 37.5% 28.9%
0.41 0.46 0.76 0.93
11.37 10.65 11.35 10.65
1,601 1,258 1,330 1,258
TRisk weighted assets
2 Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds,
CRIs, eurobonds and fund shares)
3 Includes Agribusiness and Real Estate Letters of Credit
4 It considers 110,842,313 stocks for the 2013 periods and 98,852,774 stocks for the 2012 periods
PINE
Financial Margin
In 1H13, Income from Financial Intermediation before provisions for loan losses totaled R$184 million, while net interest
margin (NIM) before provisions stood at 5.0%. The change in margin is explained mainly by the underperformed Treasury. The
decline in the SELIC benchmark interest rate, marginal decrease in spreads, and return of the provision to the levels
recorded in 2012, also contributed to the NIM.
RS milions
ERE 1013 Ey 15 1412
Income from financial intermediation 83 102 134 184 256
Cayman branch overhedge effect 6 e) 5 4 4
Income from financial intermediation desconsidering overhedge (A) 89 100 139 188 260
Provision for loan losses (29) (13) (30) (42) (41)
Income from financial intermediation after provision (B) 60 87 109 146 219
Average earning assets (C ) 7,356 7,412 7,359 7,596 7,418
Interbank Investments 640 508 369 537 534
Securities! 1,499 1,934 1,971 1,893 1,978
Credit transactions 5,299 5,076 5,225 5,261 5,109
(-) FIDC senior shares (82) (106) (206) (95) (203)
Annualized Financial Margin before provision (%) (A/C) 4.9% 5.5% 7.8% 5.0% 7.1%
Annualized Financial Margin after provision (%) (B/C) 3.3% 4.8% 6.1% 3.9% 6.0%
1 Excludes repo transactions and the liability portion of derivatives
Fee Income
Fee income remained in line YoY. Bank Revenues were positively impacted by the increase of approximately 80% in the Bank
Guarantee balance, whose revenues increased 50.0%, 1H13 over 1H12.
RS milions
2013 1013 2012 1413 1H12
Bank 22 20 13 42 28
PINE Investimentos 8 10 18 18 34
Total 30 30 31 60 62
Personnel and Administrative Expenses
Total personnel and administrative expenses decreased by 6.5% in the quarter, reflecting the tight cost control, and
remained virtually stable in the first half. PINE had a headcount of 397 in June 2013.
R$ millions
2013 1013 yl04 ya 1413 ALL Epa
Personnel expenses 22 22 22 44 44
Other administrative expenses 21 24 24 45 44
Subtotal 43 46 46 89 88
Efficiency Ratio
The efficiency ratio remained at adequate levels, totaling 37.5% in the first half and 38.1% in the quarter.
RS millions
2013 1013 2012 1H13 1412
Operating expenses * 47 50 50 96 96
(-) Non-recurring expenses 2 1 2 3 3
Recurring Operating Expenses (A) 45 49 48 93 93
Revenues ? (B) 118 130 170 248 322
Ratio (A/B) 38.1% 37.7% 28.2% 37.5% 28.9%
* Other administrative expenses +tax expenses +personnel expenses
2 Gross Income fro m financial intermediation – provision for loan losses +fee income +overhedge effect
PINE
Corporate Credit
Total expanded loan portfolio totaled R$8,994 million in June 30, 2013, representing increases of 7.0% QoQ and of 17.7% YoY.
The Working Capital portfolio, combined with the portfolio of Private Securities and Credit Receivable, which have similar
characteristics, grew by 6.6% YoY. The average maturity of the credit portfolio remains 15 months.
The highlight in the quarter was the 27.3% increase in Trade Finance transactions, arising from import transactions for
various industries, and 12.2% in Bank Guarantee transactions, especially with clients from the Electric and Renewable Energy
sector. The absorption of this growth is possible thanks to PINE”s high capitalization and relatively low leverage.
RS millions
Jun-12 Q0Q YoY
Working capital 3,332 4.7% 11.6%
Onlending 821 2.2% 2.8%
Trade finance! 832 1,154 27.3% -8.2%
Bank guarantees 2,501 1,599 12.2% 75.5%
Loan Portfolio 7,709 6,906 9.3% 22.0%
Private securities ? 670 670 -18.1% -18.1%
Expanded Loan Portfolio 8,379 7,576 7.1% 18.5%
Individual ? 26 65 -30.8% -72.3%
Ajusted Total Corporate Risk 8,405 7,642 7.0% 17.7%
1 Includes letters of credit to be used
? Includes debentures, CRIs, Hedge Fund Shares and Eurobonds
3 Loan portfolio with recourse acquired fro m financial institutions
Loan Portfolio Profile
Following the best practices, PINE regularly reassesses its clients” ratings. Given the macroeconomic scenario, this
reassessment resulted in the downgrading of approximately 7% of ¡ts portfolio with a consequent impact on the provisions for
loan losses, which returned to the levels recorded in 2012.
Loan Quality and Provision for Loan Losses – Resolution 2682
2013 1Q13
El ON
CO O IS
E o eN mE
Portfolio Rating Overdue To Expire TT
AO
AA 983 17.9% – AA 965 18.9% –
A 1,574 1,574 28.7% 8 A 1,603 1,603 31.3% 8
B 0 2,036 2,036 37.1% 20 B 0 1,758 1,758 34.4% 18
ld 2 517 519 9.5% 16 ld 0 531 531 10.4% 16
D 12 164 177 3.2% 18 D 0 80 80 1.6% 8
E 0 39 39 0.7% 12 E 0 3 3 0.1% 1
F 0 25 25 0.5% 12 F 0 25 26 0.5% 13
G 0 49 49 0.9% 34 G 1 54 54 1.1% 38
H 35 48 83 1.5% 83 H 49 44 93 1.8% 93
Total 50 5,433 5,483 100.0% 203 Total 51 5,063 5,114 100.0% 195
Required provision according to the transaction rating: AA: 0%, A: 0.5%, B: 1%, C: 3%, D: 10%, E: 30%, F: 50%, G: 70%, H: 100%
The coverage of the total loan portfolio ended the quarter at 3.4% and the overdue portfolio overcame the 400%.
PINE
Loan Portfolio Coverage Ratios
Total Loan Portfolio Coverage Overdue Portfolio Coverage
3.7%
: 3.5%
3.3% 3.4% 3.4% 484% 487%
402% 379% 405%
AAA AAA AAA AÁA AAA AAA AAA AÁAÁ-
Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Jun-12 Sept-12 Dec-12 Mar-13 Jun-13
*Coverage of Loan Portfolio: Provision/Portfolio without Bank Guarantees *Coverage of Overdue Portfolio: Provision/Overdue Portfolio
and Letters of Credit to be used
Portfolio by Risk Rating’
Jun-13 Mar-13
D-H
6.2% o 4.4% Dr
AA-C
o
93.8% 95.6%
The ratio of installments overdue more than 15 days decreased to 0.8% from 0.9% in March 2013, while the ratio of
installments overdue more than 90 days remained at 0.6%.
It’s worth to notice the marginal improvement in the ratio of total contract overdue more than 90 days.
Non-Performing Loans (Overdue Installments)’
Jun-13 Mar-13 yA
More than 15 days 0.8% 0.9% 0.7%
More than 30 days 0.8% 0.9% 0.5%
More than 60 days 0.7% 0.9% 0.4%
More than 90 days 0.6% 0.6% 0.2%
More than 120 days 0.6% 0.6% 0.2%
More than 180 days 0.3% 0.6% 0.1%
Non-Performing Loans (Total Contract)!
Jun-13 Mar-13 yA
More than 15 days 2.9% 1.7% 1.6%
More than 30 days 2.9% 1.5% 1.1%
More than 60 days 2.3% 1.5% 0.8%
More than 90 days 1.1% 1.2% 0.6%
More than 120 days 1.0% 1.2% 0.5%
More than 180 days 0.8% 1.0% 0.3%
1 Includes debentures, CRls, Hedge Fund, and Eurobonds and excludes Bank Guarantees and Letters of Credit to be used.
Active Management of the Loan Portfolio
PINE
In 2Q13, PINE continued to diversify its loan portfolio to further strengthen the solidity of its balance sheet. The allocation of
the portfolio by industry remains focused on sectors in which Brazil has competitive advantages, including Agribusiness, and
sectors with a vast growth potential, including Infrastructure and Electric and Renewable Energy.
The composition of the portfolio with the 20 largest clients changed by approximately 20%, confirming the liquidity and
flexibility of the Banks operations. The share of the 20 largest clients in the total portfolio is still at below 30%.
2013
Meatpacking. Financial
2% pnsuons Other
7%
/ Sugar and Ethanol
14%
Construction
Material
2%
Food Industry.
3%
Beverages and
Tobacco
3%
Telecom.
3%
Construction
12%
Vehicles and Parts
Chemicals.
4%
. Electric and
Foreign Trade Renewable Energy
11%
Metallurgy Infrastructure
5% 7%
Transportationand Specialized Services
Logistics
5%
Agriculture
7%
FICC
2012
Other
Meatpacking .. Telecom 9%
2% 2%
Financial
instutions Sugar and Etanol
2% A 19%
Chemicals
3% Sy
Food Industry
—
3%
Metallurgy Construction
E 10%
Beverages and
Tobacco
4%
Vehicles and Parts
4% Y ÑN
Specialized Services,
4%
| Agriculture
%
Transportation and. Foreign Trade A
Logistis 5% Infrastructure
7%
5%
Electric and
Renewable Energy
o%
FICC business provides risk management products and hedging solutions 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.
The total notional value of the derivatives portfolio for clients reached R$5.9 billion, with an average duration of 210 days as
of June 2013. The Mark-to-Market value of the portfolio closed the quarter at R$248 million. Based on the stress test
performed on the derivatives portfolio with clients amid an extremely negative scenario, with the U.S. dollar strengthening
by 31% against the Brazilian Real to R$2.92/US$ and commodity prices declining by 30%, the potential Mark-to-Market from
clients in the portfolio was R$298 million. This shows that the derivatives portfolio is well balanced and represents a
relatively low credit risk exposure, even under a stress scenario.
According to the ranking compiled by CETIP – OTC Clearing House published in June 2013, PINE was classified among the 16
largest players in derivative transactions for clients and the second largest player in commodity derivatives.
Client Notional Derivatives by Market – 2Q13
4 Currencies
Fixed
Income 68%
15%
Commodities
17%
Notional Amount and Counterparty Credit
Risk (MtM)
Notional value
MtM
— == Stressed MtM
597 629
E E
Da
298 298
255 Ti Ss
238 197 A 8
4,720 4,875 5,036 5,180 5,891
Jun-12 Sep-12 Dec-12 Mar-13 Jun-13
PINE
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 1H13, PINE Investimentos led
and structured more than R$1.1 billion in fixed income transactions.
On April 30, PINE held its first transaction worth US$250 million through the broker dealer in New York for a company from
the Sugar and Ethanol industry.
In June 2013, PINE was ranked 14! in fixed income origination by financial volume, according to the Brazilian Financial and
Capital Markets Association (Anbima).
Funding
Funding totaled R$7,111 million in June 2013, representing growth of 7.9% Q0Q and of 2.0% YoY. The time deposit balance,
including Agribusiness Credit Notes (LCA) and Real Estate Credit Notes (LCI), reached R$3,452 million in the quarter, 5.1%
higher Q0Q. The weighted average term of deposits was 10 months, while the weighted average term of funding transactions
was 16 months.
In the international arena, PINE”s base of correspondent banks remained at around 60 institutions, including banks in various
countries, development banks, including DEG and Proparco, and multilateral agencies, including the IFC, IDB and FMO.
R$ millions
AE Mar-13 ATA YA Q0Q YoY
Local Funding 4,556 4,317 4,423 5.5% 3.0%
Demand deposits 19 126 33 -84.9% -42.4%
Interbank deposits 110 110 194 – -43.3%
Time deposits + LCA + LCI 3,452 3,285 3,604 5.1% -4.2%
individuals 119 126 223 -5.6% -46.6%
Companies 1,013 972 1,228 4.2% -17.5%
Institutionals 2,320 2,186 2,153 6.1% 7.8%
Capital Markets 975 796 593 22.5% 64.4%
Onlendings + Trade Finance 1,859 1,621 1,902 14.7% -2.3%
Onlendings 862 859 813 0.3% 6.0%
Trade finance 997 752 1,011 32.6% -1.4%
Offshore onlendings – 10 78 -100.0% -100.0%
International Funding 696 651 647 6.9% 7.6%
Capital Markets 435 402 295 8.2% 47.5%
Muttilaterals 80 78 234 2.6% -65.8%
Other private placements and syndicated 181 171 118 5.8% 53.4%
loans
Total 7,111 6,589 6,972 7.9% 2.0%
Asset and Liability Management
PINE
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 15 months, the funding
period is 16 months, ensuring a comfortable situation for the Bank. This positive liquidity gap has been maintained for
approximately 3 years.
M Credit Funding
3,430
3,236
2,271
1,850
1,538
1,096
704
240 290
– 19 5
A
No maturity Up to 3 From3to 12 From1to3 From3to5 Morethan 5
months months years years years
(includes
Cash)
Capital Structure
The BIS ratio stood at 17.0% in the quarter, well above the minimum requirement (11%).
RS millions
Reference Equity
Tier |
Tier | – BIS Ratio %
Tier Il
Tier 11 – BIS Ratio %
Required Reference Equity
Credit Risk
Market Risk
Operational Risk
Excess of Reference Equity
BIS Ratio – %
Jun-13
1,472
1,273
14.7%
199
2.3%
954
863
84
518
17.0%
933
802
123
521
17.1%
919
845
68
412
15.9%
10
PINE
About PINE
PINE is a wholesale bank focused on long-term relationships with large companies and investors. 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, Project
€: Structured Finance.
Corporate Governance
PINE has active corporate governance policies, given its permanent commitment to shareholders and other stakeholders. In
addition to integrating Level 2 of Corporate Governance of the BMEFBOVESPA, PINE”s practices include:
Y” Two independent members and one external member to the Board of Directors
Y 100% tag-along rights for all shares, including preferred shares
y” Adoption of arbitration procedures for rapid settlement of disputes
y” Quarterly disclosure of earnings results in two accounting standards: BR GAAP and IFRS
y” Compensation and Audit committees, which report directly to the Board of Directors
PINE4
In accordance with its buyback program and pursuant to the Central Bank Resolution 3,921, PINE repurchased 478,900 of its
own shares in 2Q13, which are currently held in treasury. At the end of the quarter, a total of 1,296,149 shares were held in
treasury.
As of June 30’”, 2013
Common Preferred Total %
Controlting Shareholder 58,444,889 15,410,863 73,855,752 66.6%
Management – 6,035,158 6,035,158 5.4%
Free Float – 29,655,254 29,655,254 26.8%
Individuals – 3,071,445 3,071,445 2.8%
Local Institutional Investors – 11,638,078 11,638,078 10,
Foreign Investors – 8,053,059 8,053,059 7
DEG – 5,005,067 5,005,067 4
Proparco – 1,887,605 1,887,605 1.7%
Subtotal 58,444,889 51,101,275 109,546,164 98.8%
Treasury – 1,296,149 1,296,149 1.2%
Total 58,444,889 52,397,424 110,842,313 100.0%
Interest on Own Capital and Dividends
In July 2013, PINE paid a total of R$30.0 million as dividends and interest on own capital, which corresponds to a gross
payout per share of R$0.27. Of this total, R$15.7 million represents interest on own capital and R$14.3 million, dividends.
This payment will be added to the minimum mandatory dividends related to the 2013 fiscal year. Based on PINE”s shares
average price in the quarter (R$13.43) and the proceeds paid over the past four quarters, PINE4 has a dividend yield of 8.5%.
Protocolo Verde
Ministério do
between FEBRABAN and the Ministry of the Environment to support development that does not Meio Ambiente
compromise future generations. This adherence strengthens PINE”s commitment to best
environmental practices in the market. FEBRABAN
Ratings
In July 2013, PINE joined Protocolo Verde – “Green Protocol”. The letter of intent seals the deal ES3
STANDARD – Fite
¿POOR’S
a Long Term BB+ BB+ Baz
CO
Ez E Short Term B B
5
El ENE Long Term BB+ BB+ Ba2
ra [5]
pa Short Term B 8
7 Long Term brAA AA-(bra) At.br
E
ol
S 10.68
2 Short Term Ft+(bra) Br-1
11
PINE
Balance Sheet
RS millions
Jun-13 Mar-13 NY] Q00 YoY
Assets 10,457 10,204 10,038 2.5% 4.2%
Cash 120 212 12 -43.4% 900.0%
Interbank investments 669 611 571 9.5% 17.2%
Securities 2,977 3,604 3,586 -17.4% -17.0%
Interbank accounts 1 1 1 – –
Lending operations 5,483 5,114 5,238 7.2% 4.7%
(-) Provisions for loan losses (203) (195) (209) 4.1% -2.9%
Net lending operations 5,280 4,920 5,029 7.3% 5.0%
Other receivables 1,316 827 829 59.1% 58.7%
Property and equipments 94 30 9 213.3% 944.4%
Investments 66 – – – –
Property and equipment in use 27 28 6 3.6% 350.0%
Intangible 2 2 2 – –
Liabilities 9,198 8,944 8,985 2.8% 2.4%
Deposits 3,236 3,199 3,402 1.2% 4.9%
Money market funding 1,245 1,954 1,263 -36.3% -1.4%
Funds from acceptance and securities issued 1,230 1,163 1,019 5.8% 20.7%
Interbank and Interbranch accounts 17 6 30 183.3% -43.3%
Borrowings and onlendings 2,090 1,859 2,371 12.4% -11.9%
Derivative financial instruments 274 110 188 149.1% 45.7%
Other liabilities 1,046 595 662 75.8% 58.0%
Deferred Results 60 58 51 3.4% 17.6%
Shareholders’ equity 1,259 1,260 1,053 -0.1% 19.6%
Liabilities and shareholders’ equity 10,457 10,204 10,038 2.5% 4.2%
12
PINE
Income Statement
RS millions
yo YE] 1013 plo yA 1H13 1H12
Income from financial intermediation 341 233 438 574 719
Lending transactions 140 111 157 250 296
Securities transactions 71 58 142 129 279
Derivative financial instruments 48 62 36 111 30
Foreign exchange transactions 82 2 103 84 115
Expenses with financial intermediation (288) (144) (335) (432) (505)
Funding transactions (175) (119) (207) (294) (358)
Borrowings and onlendings (84) (12) (97) (96) (106)
Provision for loan losses (29) (13) (30) (42) (41)
Gross income from financial intermediation 53 89 104 142 215
Other operating (expenses) income (18) (19) (35) (37) (70)
Fee income 30 30 31 60 62
Personnelexpenses (22) (22) (22) (44) (44)
Other administrative expenses (21) (24) (24) (45) (44)
Tax expenses (4) (4) (4) (7) (8)
Other operating income 5 10 10 15 32
Other operating expenses (6) (9) (25) (16) (68)
Operating income 35 70 69 105 145
Non-operating income 3 2 1 5 4
Income before taxes and profit sharing 38 72 70 110 149
Income tax and social contribution 8 (19) (8) (11) (27)
Profit sharing (7) (8) (16) (15) (30)
Net income 39 46 46 84 92
This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and
growth outlook of PINE. These are merely projections and as such are based solely on management’s expectations regarding the future of
the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy
(political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation,
competitive pressures on products and prices and changes in tax legislation) and therefore are subject to change without prior notice.
13
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