BANCO PINE S.A. 2014-08-11 T-19:09

(Afree translation of the original version in portuguese)
Individual and Consolidate Financial Statements under BR GAAP for the Six-Month
Periods Ended June 30, 2014 and 2013, and Independent Auditors* Report

Banco Pine S.A.

PricewaterhouseCoopers Auditores Independentes

(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 “Tnstitution”) standing
alone, which comprise the balance sheet as at June 30, 2014 and the statements of operations, changes
in equity and cash flows for the 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 J une 30, 2014 and the consolidated statements of operations, changes
in equity and cash flows for the six-month period then ended, and a summary of significant accounting
practices and other explanatory information.

Management’s responsibility for
the 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 makingthose risk assessments, the auditor considers internal control relevant to the entity’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 entity’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
our audit opinion.

Banco Pine S.A.

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 June 30, 2014, and the
Institution’s financial performance and cash flows, as well as the consolidated financial performance
and cash flows for the six-month period then ended, in accordance with accounting practices adopted
in Brazil, applicable to institutions authorized to operate by BACEN.

Other matters
Statement of value added

We have also audited the Institution’s and the consolidated statements of value added for the six-
month period ended J une 30, 2014, 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, August 8, 2014

PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/0-5

Edison Arisa Pereira
Contador CRC 18P127241/ 0-0

PINE

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

SUMMARY OF THE AUDIT COMMITTEE REPORT
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014

The Audit Committee of Banco Pine S/A and its subsidiaries is a statutory body
subordinated to the Board of Directors, implemented in compliance with the regulations
of the Central Bank of Brazil (Bacen) and the Brazilian Securities and Exchange
Commission (CVM).

In accordance with the Bylaws of Banco Pine S/A and its Internal Regulations
(available on the website (www.pine.com/ir), it is the responsibility of the Committee to
ensure (i) the quality and integrity of financial statements, (ii) compliance with legal and
regulatory requirements, (iii) the performance, independence and quality of the work of
independent auditors, (iv) the performance, independence and quality of work of
Internal Audit, and (v) the quality and effectiveness of the internal control and risk
management systems.

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. 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 Conglomerate”s operation risks, and (iii) supervising internal control
and compliance activities.

The independent audit firm is responsible for examining the financial statements and
issuing a 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
the internal control and risk management systems, as well as on the compliance of
processes with Management’s rules and procedures.

Activities of the Committee in the 1% Half of 2014

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

The Audit Committee’s 2014 Work Plan consisted of analyzing the structures,
operations, processes and systems inherent to Pine Conglomerate”s business.

PINE

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. Also were held meetings with the Central
Bank of Brazil, for discussing those annual plans, biannual results, and aspects about
their regulations and standardization.

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.

In meeting held on August 1, 2014, were analyzed the financial statements for the
period ended in 06/30/2014, and prepared the corresponding summary of the Report of
Audit Committee, related to activities developed during the semester.

Internal Control System

According to schedule and work plan for 2014, the Committee was informed on Pine
Conglomerate”s control and information processes, methods and system, and then
assessed their quality and the managers” commitment with their monitoring and
improvement.

All Organizations 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 Conglomerate”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 Conglomerate’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.

Independent Audit

The Committee and the Independent Audit – PricewaterhouseCoopers (PwC) – held
meetings to approve the Quarterly Financial Information (ITR) and the Half-Year
Financial Statement. 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 Organization’s business

PINE

were found. The Committee considers that the independent auditor’s planning and
works are consistent with Pine Conglomerate”s size and operation complexity.

Internal Audit
The Committee approved the Internal Audit structure and its Annual Plan-which
comprise all Organization’s 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.

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 recommended 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 six-month period ended June 30, 2014.

Sáo Paulo, August 08, 2014

Maurízio Mauro

William Pereira Pinto

Sergio Machado Zica Castro

FM PINE

MANAGEMENT REPORT
PINE – 1H14

Dear shareholders,

Pines 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 six month period ended June 30, 2014.

1. MESSAGE FROM THE MANAGEMENT

The first half of 2014 was another period of positive revenue contributions in all business lines. As a result, in this semester, both SP and
Fitch reaffirmed our ratings, and thus, we continue one notch from the global investment grade.

The main dimensions of the balance sheet presented performance within expectations, reflecting the intensification of conservatism in
lending and strong fundamentals of the Bank in an economic scenario that remained with poor visibility.

We remain aligned with our strategy of offering clients an increasingly wider range of products, while serving the corporate market with
tailor-made services, building loyalty, and diversifying our income sources.

We are constantly working to build a better bank for our clients, shareholders, employees, and investors. We remain optimistic about our
business and vigilant regarding the domestic and international economic scenarios.

2. CORPORATE PROFILE

Pine (BMEFBOVESPA: PINE4) is a wholesale Bank focused on establishing long-term relationships with its clients. Its strategy is based on
knowing its clients well and understanding their business and potential in order to build customized solutions and alternatives. This strategy
requires product diversity, highly qualified human capital, and efficient and agile risk management, which are areas that the Bank is
consistently evolving.

3. PERIOD HIGHLIGHTS

+ Positive contributions from all business lines in the semester: 68.9% from Corporate Credit, 22.0% from FICC, 6.1% from Treasury,
and 3.0% from Pine Investimentos.

+ Maintenance of positive liquidity gap over the past years, with 14 months for credit versus 16 months for funding.

+ Liquid balance sheet, with cash position of R$1.4 billion, equivalent to 35% of time deposits.

+ R$230 million issuance through a Financial Bill, with a two-year term, at the end of July.

+ Although many Brazilian banks were downgraded in April, SEP reaffirmed Pine”s ratings based on the consistency of its financial
profile “even after incorporating the negative impact of the economic and industrial high risks in Brazil”.

+ Fitch has also reaffirmed Pine”s ratings, which “reflects the satisfactory credit profile of the Bank and its good performance over
the last years amid a deteriorated and relatively volatile operational environment”.

+ Pine executed another transaction of the Pine-DEG partnership, totaling US$18 million with a eight-year term, for a company in
the Construction Material sector.

e 11th largest bank in derivative transactions and the 2nd largest in commodity derivatives segment according to CETIP – OTC
Clearing House.

+ 13th largest bank offering credit to large companies, moving up two positions, vis-a-vis 2013, according to the Melhores e Maiores
ranking compiled by Exame magazine.

PINE

4, FINANCIAL HIGHLIGHTS

Total assets amounted to R$10,683 million in June 30, 2014, and net income reached R$70 million in the first half of 2014. Shareholders”
Equity reached R$1,270 million.

E] 1413 1
Earnings and Profitability
Net income (R$ million) 70 84 -16.7%
Annualized ROAE 11.4% 14.1% -270bps
Balance Sheet (R$ million)
Total assets 10,683 10,457 2.2%
Loan portfolio’ 10,032 8,994 11.5%
Deposits? 4,061 3,581 13.4%
Funding 8,559 7,111 20.4%
Shareholders’ equity 1,270 1,259 0.9%
Credit portfolio quality
Non performing loans – 90 days 0.2% 0.6% -40 bps
Credit coverage index 2.4% 3.7% -130 bps
Performance
BIS ratio 13.7% 17.0% -330 bps
Earnings per share? (RS) 0.60 0.77 -22.1%
Book value per share? (RS) 10.73 11.49 -6.6%

“Includes 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 Considers 118,372,603 shares for the 1H% and 109,546,164 shares forthe 1413.

5. FINANCIAL PERFORMANCE

Loan Portfolio

Pine offers traditional loan products to large companies, including Working Capital, Onlending lines from BNDES and Multilateral
Organizations, Trade Finance, Bank Guarantees. Total expanded loan portfolio reached R$10,032 million in June 30, 2014, practically stable
Q0Q and 11.5% higher YoY. The average maturity of the loan portfolio continues in 14 months. In June 2014, the coverage of total loan
portfolio was 2.4% and coverage of overdue portfolio surpassed 600%.

FICC

FICC (Fixed Income, Commodities and Currencies) 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), options-based structures and swaps. The total
notional value of the derivatives portfolio for clients totaled R$14.4 billion, with an average duration of 149 days at the end of the second
quarter.

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 1H14, PINE Investimentos led and structured approximately R$1
billion in fixed income transactions.

Funding
Total funding stood at R$8,559 million in June 2014, decreasing 2.7% Qo0Q and growing 20.4% YoY. In turn, the volume of time deposits and

onlendings evolved 14.1% and 26.0%, respectively, in twelve months. The average term of funding transactions remained at 16 months.

Capital Adequacy Ratio (BIS)

In the quarter, the capital adequacy ratio (BIS) remained at 13.7%, above the minimum rate required by the Brazilian regulation (11%). The
Tier | capital represented 12.2% while Tier Il represented 1.5%.

6. ORIGINATION NETWORK

Headquartered in Sáo Paulo, SP, with a presence in Brazil’s major cities and business capitals, such as Belo Horizonte, Campinas, Cuiabá,
Curitiba, Fortaleza, Porto Alegre, Recife, Ribeiráo Preto, Rio de Janeiro, and Sáo José do Rio Preto. Pine’s origination network is further
complemented by its location in the Cayman Islands, which aims to increase the supply of products and services by acting in the
international market, and a subsidiary in New York – Pine Securities USA LLC, which has its activities focused on the Capital Markets and
Research.

FM PINE

Pine’s employees are ¡ts 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. At the end June 2014,
Pine had 437 employees, including the outsourced ones.

7. HUMAN RESOURCES

8. 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 BMáFBovespa, some of Pine”s practices include:

+ Two independent members and two external members 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; and

+ Compensation and Audit committees, which report directly to the Board of Directors.

9. 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 (phone: +55-11-3372-5343, e-mail: irepine.com).

10. RATINGS
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11. PROFIT SHARING – INTEREST ON OWN CAPITAL AND DIVIDENDS
During the first semester of 2014, Pine paid a total of R$40 million as dividends and interest on own capital, which corresponds to a gross

payout per share of R$0.34. Of this total, R$33.2 million represents interest on own capital and R$6.8 million, dividends. Since 2008, Pine
distributes dividends/interest on own capital quarterly.

12. EXTERNAL AUDITORS

In compliance with CVM Instruction 381, of January 14, 2003, Pine reports that did not hire from the independent auditors any other services
than those related to the audit works for the period from January to June, 2014. 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.

The Management

(A free translation of the original in Portuguese)
BANCO PINE S.A. AND SUBSIDIARIES
BALANCE SHEETS AT JUNE 30, 2014 AND 2013
(In thousands of reais)

PINE

E
‘ASSETS 2013
CURRENT ASSETS 7,367,806 7,279,058 7,327,167 7,248,817
Cash 4. 86,574 119,988 93,402 120,026
Short-term interbank investments 5. 1,133,534 668,724 1,133,987 669,124
Open market investments 853,360 479,171 853,813 479,571
Interbank deposits 28,548 96,523 28,548 96,523
Investments in foreign currency 251,626 93,030 251,626 93,030
Marketable securities and derivative financial instruments 1,639,878 2,332,987 1,564,152 2,293,677
Own portfolio 6.a) 566,388 960,217 490,662 920,907
Subject to repurchase agreements 6. a) 500,370 1,058,161 500,370 1,058,161
Derivative financial instruments 6. b) 398,317 182,867 398,317 182,867
Subject to guarantees 6. a) 174,803 131,742 174,803 131,742
Interbank accounts 645 79 645 794
Unsettled payments and receipts 43 27 43 27
Restricted deposits:
Brazilian Central Bank 602 767 602 767
Loan operations 7. 3,534,578 2,532,720 3,555,593 2,537,396
Loan operations – private sector 3,275,872 2,630,878 3,297,115 2,635,554
Loan operations – public sector – 3,402 – 3,402
Assignment related loan operations 7.j) 330,438 – 330,438 –
Allowance for loan losses (71,732) (101,560) (71,960) (101,560)
Other receivables 856,101 1,447,498 862,805 1,451,421
Sureties and guarantees honored 393 – 393 –
Foreign exchange portfolio 8. 544,607 1,109,295 544,607 1,109,295
Income receivable 26,470 22,480 26,470 22,480
Negotiation and intermediation of securities 80,772 87,682 80,772 87,682
Sundry 9. 217,196 236,720 223,900 240,643
Allowance for other loan losses (13,337) (8,679) (13,337) (8,679)
Other assets 116,496 176,347 116,583 176,379
Non-operating assets 112,279 172,551 112,279 172,551
Prepaid expenses 4,217 3,796 4,304 3,828
LONG-TERM RECEIVABLES 3,242,735 3,051,188 3,237,053 3,114,089
Interbank investments 11,745 – 11,745 –
Interbank deposits 11,745 – 11,745 –
Marketable securities and derivative financial instruments 611,997 715,939 600,150 683,607
Own portfolio 6.a) 255,729 432,330 243,882 399,998
Derivative financial instruments 6. b) 153,295 283,609 153,295 283,609
Subject to guarantees 202,973 – 202,973 –
Loan operations 7. 2,049,394 1,856,056 2,049,394 1,947,613
Loan operations – private sector 2,035,641 1,948,029 2,035,641 2,039,586
Loan operations – public sector 19,527 – 19,527 –
Assignment related loan operations 7.5) 66,349 – 66,349 –
Allowance for loan losses (72,123) (91,973) (72,123) (91,973)
Other receivables 557,973 468,818 564,120 472,494
Income receivable 34,740 28,361 34,740 28,361
Deposits in guarantee 15. (c) (d) 213,342 202,961 214,576 204,724
Sundry 9. 311,322 237,806 316,235 239,719
Allowance for other loan losses (1,431) (810) (1,431) (310)
Other assets 11,626 10,375 11,644 10,375
Prepaid expenses 11,626 10,375 11,644 10,375
PERMANENT ASSETS 81,786 200,637 118,545 94,349
Investments 61,270 171,986 97,306 65,695
Investments in subsidiaries abroad 10.a) 6,958 – – –
Investments in local subsidiaries 10.a) 54,312 171,986 – –
Other investments 10.b) – – 97,306 65,695
Property and equipment in use t1.a) 19,433 27,013 19,935 27,016
Facilities, furniture and equipment in use 13,217 13,738 13,771 13,738
Other fixed assets in use 21,419 29,008 21,669 29,011
Accumulated depreciation (15,203) (15,733) (15,505) (15,733)
Intangible assets 11.b) 1,083 1,638 1,304 1,638
Expenses for acquisition and development of software 9,587 9,468 10,273 9,533
Accumulated amortization (8,504) (7,830) (8,969) (7,895)
TOTAL ASSETS 10,692,327 10,530,883 10,682,765 10,457,255

(A free translation of the original in Portuguese)
BANCO PINE S.A. AND SUBSIDIARIES
BALANCE SHEETS AT JUNE 30, 2014 AND 2013
(In thousands of reais)

PINE

E
INM AS 2 2013
CURRENT LIABILITIES 6,252,060 6,187,175 5,871,515 6,180,691
Deposits 12. 2,346,280 2,100,877 2,314,516 2,065,203
Demand deposits 43,416 19,138 40,778 18,811
Interbank deposits 81,085 108,546 79,447 108,546
Time deposits 2,221,779 1,973,193 2,194,291 1,937,846
Funds obtained in the open market 13. 502,376 1,245,309 469,751 1,245,309
Own portfolio 493,249 1,054,870 318,702 841,470
Third-party portfolio – 45,008 141,922 258,408
Unrestricted portfolio 9,127 145,431 9,127 145,431
Funds from acceptance and issuance of securities 1,069,441 717,538 1,069,441 717,355
Real estate letters of credit 17.a) 231,699 24,525 231,699 24,525
Agribusiness letters of credit 17.a) 544,611 303,515 544,611 303,332
Financial bills 17.a) 281,000 346,152 281,000 346,152
Securities issued abroad 17.b) 12,131 43,346 12,131 43,346
Interbank accounts 203 274 203 274
Unsettled receipts and payments 200 204 200 204
Correspondent banks 3 70 3 70
Interdepartmental accounts 22,525 16,552 22,525 16,552
Third-party funds in transit 22,525 16,552 22,525 16,552
Borrowings and onlendings 16. 1,647,727 1,313,373 1,647,727 1,313,373
Foreign borrowings 1,195,074 1,089,580 1,195,074 1,089,580
Local onlendings – official institutions 447,669 223,793 447,669 223,793
Foreign onlendings 4,984 – 4,984 –
Derivative financial instruments 6. b) 188,612 226,048 188,612 226,048
Derivative financial instruments 188,612 226,048 188,612 226,048
Other liabilities 474,896 567,204 158,740 596,577
Collection and payment of taxes and similar 14.a) 920 530 920 530
Foreign exchange portfolio 8. 6,166 480,187 6,166 480,187
Social and statutory payables 5,906 6,824 5,906 6,824
Taxes and social security contributions 14. b) 73,181 8,872 75,398 11,185
Negotiation and intermediation of securities 13,061 26,696 21,759 41,844
Subordinated debt 18. 11,423 13,305 11,423 13,305
Sundry 14.c) 364,239 30,790 37,168 42,702
Obligations for sale and transfer of financial assets 7.5) 330,438 – – –
Other 33,801 30,790 37,168 42,702
LONG-TERM LIABILITIES 3,101,066 3,024,669 3,472,049 2,957,525
Deposits 12. 830,711 1,315,700 815,435 1,171,189
Interbank deposits 323 6,651 282 1,614
Time deposits 830,388 1,309,049 815,153 1,169,575
Funds from acceptance and issuance of securities 557,306 512,556 557,306 512,556
Real estate letters of credit 17.a) 94,194 5,070 94,194 5,070
Agribusiness letters of credit 17.a) 60,259 11,822 60,259 11,822
Financial bills 17.a) 171,477 291,991 171,477 291,991
Securities issued abroad 17.b) 231,376 203,673 231,376 203,673
Borrowings and onlendings 16. 1,218,278 704,778 1,218,278 704,778
Foreign borrowings 286,325 66,468 286,325 66,468
Local onlendings – official institutions 638,641 638,310 638,641 638,310
Foreign onlendings 293,312 – 293,312 –
Derivative financial instruments 6. b) 59,692 47,784 59,692 47,784
Derivative financial instruments 59,692 47,784 59,692 47,784
Other liabilities 435,079 443,851 821,338 521,218
Tax and social security contributions 14. b) 21,438 90,938 21,446 91,541
Subordinated debt 18. 330,625 328,197 330,625 328,197
Sundry 14.c) 83,016 24,716 469,267 101,480
Obligations for sale and transfer of financial assets 7.5) 66,349 – – –
Provision for contingent liabilities 15. d) 10,530 15,574 10,530 15,606
Obligations for shares of investment funds – – 452,600 71,803
Other 6,137 9,142 6,137 14,071
DEFERRED INCOME 69,272 60,497 69,272 60,497
EQUITY 19. 1,269,929 1,258,542 1,269,929 1,258,542
Capital 1,112,259 967,259 1,112,259 967,259
Local residents 981,692 846,416 981,692 846,416
Foreign residents 130,567 120,843 130,567 120,843
Capital reserves – 10,215 – 10,215
Revenue reserves 195,966 312,227 195,966 312,227
Carrying value adjustments (16,948) (14,886) (16,948) (14,886)
Treasury shares (21,348) (16,273) (21,348) (16,273)
TOTAL LIABILITIES AND EQUITY 10,692,327 10,530,883 10,682,765 10,457,255

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

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

PINE

NS
INCOME FROM FINANCIAL INTERMEDIATION
Loan operations 20.a)
Marketable securities 20.b)
Derivative financial instruments 6.b)
Foreign exchange transactions
EXPENSES FOR FINANCIAL INTERMEDIATION
Funds obtained in the market 20.c)
Borrowings and onlendings 20.d)
Transactions for sale or transfer of financial assets
Provision for loan losses
GROSS PROFIT FROM FINANCIAL INTERMEDIATION
OPERATING INCOME (EXPENSE)
Income from services rendered 20.e)
Income from bank charges
Personnel expenses 20.f)
Other administrative expenses 20.9)
Tax expenses 20.h)
Equity in the results of investees 10.
Other operating income 20.i)
Other operating expenses 20.j)
OPERATING PROFIT
NON-OPERATING RESULTS 20.k)
INCOME BEFORE INCOME TAXES AND

PROFIT SHARING

INCOME TAX AND SOCIAL CONTRIBUTION 21.

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

PES

538,572
359,043
181,555
17,125
(19,151)

(393,968)
(281,628)
(40,213)
(38,588)
(33,539)

144,604

(41,622)
36,647
828
(42,373)
(43,724)
(4,789)
1,517
15,093
(4,821)

102,982

11,307

114,289
(21,349)
(26,601)
(16,416)
21,668
(22,472)
70,468

118,372,603
0.59531

2013

560,466
242,431
123,433
110,595

84,007

(430,252)
(295,906)
(91,939)

(42,407)
130,214

(29,740)
41,976
1,211
(42,260)
(44,035)
(5,695)
13,618
16,140
(10,695)

100,474

5,026

105,500
(7,468)
(7,864)
(4,915)

5,311

(13,816)

84,216

109,546,164
0.76877

PES

526,109
361,803
166,873
16,584
(19,151)

(346,919)
(280,451)
(40,213)

(26,255)
179,190

(73,318)
43,456
828
(45,648)
(46,343)
(5,414)
16,658
(36,855)

105,872

11,307

117,179
(23,675)
(28,127)
(17,228)
21,680
(23,036)
70,468

118,372,603
0.59531

573,992
250,454
128,936
110,595

84,007

(427,960)
(293,614)
(91,939)

(42,407)
146,032

(41,090)
58,640
1,211
(43,992)
(44,852)
(7,413)
15,205
(19,889)

104,942

5,026

109,968
(11,211)
(10,471)
(5,986)

5,246
(14,541)

84,216

109,546,164
0.76877

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

(A free translation of the original in Portuguese) FA PINE

BANCO PINE S.A. AND SUBSIDIARIES
STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED JUNE 30, 2014 AND 2013
(In thousands of reais, except net income per share)

Lucro líquido do período 70,468 84,216
Available-for-sale financial assets (19,601) (24,940)
Cash flow hedges (73) –

Income tax 11,358 9,976
Other (8,632) 78
Comprehensive net income 53,520 69,330

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

(A free translation of the original in Portuguese)

PINE

BANCO PINE S.A. AND SUBSIDIARIES
STATEMENTS OF VALUE ADDED FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013
(In thousands of reais)

[UE

2014 2013

Income 564,087 571,718 535,248 595,922
Financial intermediation 538,572 560,466 526,109 573,992
Services rendered 36,647 41,976 43,456 58,640
Bank charges 828 1,211 828 1,211
Provision for loan losses (33,539) (42,407) (26,255) (42,407)
Other 21,579 10,472 (8,890) 4,486
Expenses for financial intermediation 360,429 387,845 320,664 389,697
Goods and services acquired from third parties 36,440 36,012 38,693 36,768
Materials, electricity and other 344 306 357 309
Third-party services 28,060 25,854 30,088 26,394
Other 8,036 9,852 8,248 10,065
Gross value added 167,218 147,861 175,891 169,457
Depreciation and amortization 2,128 3,048 2,223 3,048
Net value added produced by the institution 165,090 144,813 173,668 166,409
Value added transterred from others 1,517 13,618 xx xx
Equity in the results of investees 1,517 13,618 – –
Total value added to be distributed 166,607 158,431 173,668 166,409
Distribution of value added 166,607 158,431 173,668 166,409
Personnel 64,845 56,076 68,684 58,533
Salaries 28,410 28,670 31,123 29,846
Benefits and training 4,369 4,308 4,606 4,483
Social charges 9,594 9,282 9,919 9,663
Profit sharing 22,472 13,816 23,036 14,541
Taxes, charges and contributions 26,138 13,163 29,089 18,624
Federal 2,265 3,497 2,605 4,376
State 2 6 3 5
Municipal 2,522 2,192 2,806 3,032
Income tax and social contribution 21,349 7,468 23,675 11,211
Remuneration of third-party capital 5,156 4,976 5,427 5,036
Rents and leased assets 5,156 4,976 5,427 5,036
Remuneration of own capital 70,468 84,216 70,468 84,216
Interest on own capital/dividends 40,000 60,000 40,000 60,000
Retained earnings 30,468 24,216 30,468 24,216

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

(A free translation of the original in Portuguese)

BANCO PINE S.A.

STATEMENT OF CHANGES IN EQUITY

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

PINE

TEMES

Paid-up Capital RI US Oca

capital [ESE Legal Statutory adjustments shares CE
At December 31, 2012 935,683 11,685 24,954 260,797 (423) (12,750) – 1,219,946
Capital increase (Note 19) 31,576 – – – – – – 31,576
Other capital reserves – (1,470) – – – – – (1,470)
Acquisition of treasury shares – – – – – (3,523) – (3,523)
Carrying value adjustments – – – – (14,463) – – (14,463)
Net income – – – – – 84,216 84,216

Appropriations (Note 19): 7

Legal reserve – – 4,211 – – – (4,211) –
Statutory reserve – – – 20,005 – – (20,005) –
Approval of proposed additional dividend – – – (18,558) – – – (18,558)
Payment of proposed additional dividend – – – 20,818 – – – 20,818
Prepaid dividends (R$0.2675 per share) – – – – – – (29,304) (29,304)
Interest on own capital (R$0,2802 per share) – – – – – – (30,696) (30,696)
At June 30, 2013 967,259 10,215 29,165 283,062 (14,886) (16,273) – 1,258,542
At December 31, 2013 1,112,259 14,032 15,605 169,360 (16,765) (22,083) – 1,272,408
Acquisition of treasury shares – – – – – (21,348) – (21,348)
Cancellation of treasury shares – (14,032) (9,874) 22,083 (1,823)
MTM available-for-sale securities – – – – 468 – – 468
MTM Cash flow hedge – – – – (44) – – (44)
Other carrying value adjustments – – – – (607) – – (607)
Net income – – – – – – 70,468 70,468
Appropriations (Note 19):
Legal reserve – – 3,523 – – – (3,523) –
Statutory reserve – – – 26,945 – – (26,945) –
Approval of proposed additional dividend – – – (21,177) – – – (21,177)
Payment of proposed additional dividend – – – 11,584 – – – 11,584
Prepaid dividends (R$0.2336 per share) – – – – – – (6,737) (6,737)
Interest on own capital (R$0,2595 per share) – – – – – – (33,263) (33,263)
At June 30, 2014 1,112,259 – 19,128 176,838 (16,948) (21,348) – 1,269,929

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(In thousands of reais)

PINE

DIGA

OPERATING ACTIVITIES

Adjusted net income

Net income for the six-month period

Provision for loan losses

Deferred taxes

Depreciation and amortization

Provision for contingencies

Equity in the results of investee

Profit (loss) on sale of property and equipment/investment

Adjustment to fair value of other investments

Changes in assets and liabilities

Increase) decrease in short-term interbank investments

Increase) decrease in marketable securities

Increase) decrease in loan operations

Increase) decrease in other receivables

Increase) decrease in other assets

Increase) decrease in interbank and interdepartmental accounts

(Increase) decrease in derivative financial instruments
(
(
(
(
(
(

Increase (decrease) in deposits
Increase (decrease) in purchase and sale commitments

Increase (decrease) in funds from acceptance and issuance of securities
Increase (decrease) in borrowings and onlendings

Increase (decrease) in other liabilities

Increase (decrease) in deferred income

Net cash provided by operating acti

INVESTING ACTIVITIES

Acquisition/sale of property and equipment in use
Investments in/ sale of intangible assets

Acquisition of investments

Receipt of dividends from subsidiaries

Capital decrease/increase in subsidiaries

Net cash provided by (used in) investing activities

FINANCING ACTIVITIES

Capital increase

Other capital reserves

Sale/acquisition of treasury shares
Interest on own capital and dividends paid
Net cash used in financing activities

INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the six-month period

Cash and cash equivalents at the end of the six-month period 4

PUES

81,418
70,468
33,539

(21,668)
2,128
(2,073)
(1,517)

541

364,626
17,392
387,987

(106,656)
(48,259)
50,691

7,607
21,217
(87,341)
(45,203)
(110,952)
368,932
(91,562)
773
446,044

3,227

53,507

56,734

(23,171)
(45,520)
(68,691)

434,087
757,474
1,191,561

PE]

104,028
84,216
42,407
(5,311)
3,048
(6,704)
(13,618)
(10)
195,042
3,776
1,366,442
(417,200)
(690,418)
4,454
(4,995)
44,296
(59,161)
(587,352)
(61,969)
161,440
431,304
4,425
299,070

(652)
(18)

268,792
423,396
692,188

PUES

63,880
70,468
26,255
(21,680)
2,223
(2,073)
541
(11,854)
441,831
17,391
386,514
(65,853)
(49,141)
50,620
7,607
21,217
(26,250
(39,041
(110,952)
(87,931
336,877
773
505,711

3,265
14
(8,943)

(5,664)

(23,171)
(45,520)
(68,691)

431,356
767,486
1,198,842

Consolidated

2013

107,046
84,216
42,407

(5,246)
3,048
(6,674)
(10)
(10,695)
239,956
3,776
1,398,236
(363,416)
(692,186)
4,422
(4,995)
44,296
(82,604)
(587,352)
(62,152)
114,508
462,998
4,425
347,002

(653)
(18)
(55,000)

(55,671)

31,576
(1,470)
(3,523)

(55,686)
(29,103)

262,228
430,399
692,627

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

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

1. OPERATIONS

Banco Pine S.A. (the “Institution” or “Banco Pine”) is authorized to operate commercial, credit and 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 or intermediation of member
companies 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 financial statements of Banco Pine, which include those of its Grand Cayman Branch (Individual) and the consolidated financial statements of Banco
Pine and Subsidiaries (Consolidated).

The financial statements are 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 June 30, 2014, were authorized for
issue on August 7, 2014, 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 entities
presented below:

NS

Business activity Total assets Ta) (loss)

Foreign branch
Grand Cayman Branch Overseas branch 1,041,361 6,608 76,697 (1,554)

Subsidiaries

Pine Securities USA LLC Brokerage 8,519 11,013 6,959 (1,547)
Pine Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. Securities dealer 190,041 13,385 44,185 2,420
Pine Comercializadora de Energia Elétrica Ltda (1) (2) Consulting 3,525 1,000 3,516 32
Pine Corretora de seguros Ltda. Insurance broker 247 500 246 1
Pine Assessoria e Consultoria Ltda. Consulting 3,922 500 3,473 487
Pine Assessoria em Comercializagáo de Energia Consulting 32 60 32 (9)
Pine Planejamento e Servigos Ltda Consulting 3,122 10 2,890 667

Special purpose entities

Pine Crédito Privado Fundo de Invest. em Direitos Creditórios Financeiros (a) Receivables investment 26,902 16,949 26,889 3,985
FIP Rio Corporate – Fundo De Investimento Em Participacoes (b) (3) Private equity fund (FIP) 114,008 64,893 105,260 10,706
IRE VII Desenvolvimento Imobiliário S/A (c) (4) SPE 52,313 51,878 51,077 126
Fundo de Investimento em Direitos Creditórios – FIDC Pine Agro (d) (5) FIDC 631,639 571,429 631,527 40,802

NS

Business activity AS a) (loss)

Foreign branches
Grand Cayman Branch Overseas branch 514,516 6,647 84,521 (4,627)

Subsidiaries

Pine Securities USA LLO Brokerage 10,958 11,078 10,223 350
Pine Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. Securities dealer 254,167 13,385 39,194 1,120
Pine Comercializadora de Energia Elétrica Ltda (1) (2) Consulting 82,838 77.400 82,114 1,685
Pine Corretora de seguros Ltda. Insurance broker 239 500 237 4
Pine Assessoria e Consultoria Ltda. Consulting 35,972 500 35,575 66
Pine Assessoria em Comercializagáo de Energia Consulting 47,211 60 47 (6)
Pine Planejamento e Servigos Ltda Consulting 15,558 10 14,862 10,744

Special purpose entities

Pine Crédito Privado Fundo de Invest. em Direitos Creditórios Financeiros (a) FIDC 107,178 80,875 107,141 6,112
FIP Rio Corporate – Fundo De Investimento Em Participacoes (b) FP 87,126 42,000 71,936 29,936
IRE VII Desenvolvimento Imobiliário S/A (0) sPE 44,105 33,896 32,668 (916)

(1) According to the contractual amendment dated December 26, 2013, capital in Pine Comercializadora de Energía was decreased from R77,400 to R$1,000.
(2) Pine Comercializadora de Energía Elética Ltda. holds 90% ol Pine Assessoría em Comercializagáo de Energía.
(8) FIDO Pine Agro was consituted on Seplember 16, 2013 and 171,428,571 shares were paid in by he nsilution on September 17, 2013.

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, in essence, the Institution is
responsible for providing the guarantees to the FIDC’s investors as regards expected receivables and yield, management decided to consolidate the FIDC, as provided for in CVM
Circular 01/07.

In accordance with Article 5 of CVM Instruction 408/04, we present below the information on 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 the 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).

Página 8

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

The purpose of the Fund is to increase Shareholder returns, 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 Fund regulations. The Fund also invests its
resources in Other assets.

1i) Investment in the equity and results of the FIDC

In accordance with Article 24, section XV, of CVM Instruction 356, as amended by CVM Instruction 393, and Chapter 21 of the Fund Regulations, 69% of the Fund’s net assets will
comprise senior shares and 31% will comprise subordinated shares. This ratio will be calculated daily and shall be made available for consultation monthly by the Fund’s
shareholders.

The nature of the Institutions 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 transfer agreement, the sole responsibility of the assignor (Banco Pine), without limiting the
assignee’s (Fund’s) 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 rights portfolio.

In the event that 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 Fund’s equity, the management entity may partially amortize the subordinated shares in the amount necessary to rebalance this
ratio.

iv) Amount and nature of the receivables, payable, income and expenses between the Institution and the FIDC, assets transferred by the Institution and rights of use
over the FIDC assets.

No loans were assigned to the FIDC for the six-month periods ended June 30, 2014 and 2013.

Additionally, on account of its investment in subordinated shares in this Fund, at June 30, 2014, the Institution recognized income of R$4,215 (June 30, 2013 – a loss of R$1,039) in
the “marketable securities” account.

v) Total assets, liabilities and equity of the FIDC at June 30, 2014 and 2013:

Current assets and long-term receivables 26,902 107,177 Currentand long-term liabilities 13 35
Cash 10 24 Otherliabiliies 13 35
Short-term interbank investments 453 400
Marketable securities 5,196 12,442
Loan operations 21,243 94,311 Equity 26,889 107,142
Total assets 26,902 107,177 – Totalliabilities and equity 26,902 107,177

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.

b) FIP Rio Corporate

Since the Institution is the sole shareholder of this Private Equity Fund (FIP), management decided to consolidate the Fund, pursuant to BACEN Resolution 2723 of May 31, 2000.

i) Name, nature, purpose and activities of the FIP

FIP Rio Corporate, managed by BNY Mellon Financial Services Distributor Securities S.A. was constituted as a closed-end fund on April 18, 2013. The Fund offered 100,000 shares
with a par value of R$ 1. The closing date for the distribution is 30 months from the date of the first payment of shares, which was on May 15, 2013. The Fund will terminate its
activities five years from the date of the first payment of shares, which may be extended, as per proposed by the Manager and approved at the General Meeting of Shareholders.

The purpose of the Fund is to increase shareholder value over the long term by investing in shares of the investee company, whose sole purpose is to develop and grow its real
estate business, through leasing and sales.

v) Total assets, liabilities and equity of the FIP at June 30, 2014 and 2013:

Current assets 114,008 87,126 Currentliabilities 8,748 15,190
Cash 1 1 Other liabilities 8,748 15,190
Trading securities 114,007 87,125

Shares in investment funds 25 –

Privately held company shares 113,982 87,125 Equity 105,260 71,936
Total assets 114,008 87,126 Total liabilities and equity 114,008 87,126

c) IRE VII Desenvolvimento Imobiliário S/A

Since it has control over the SPE’s activities, the Institution’s management decided to consolidate IRE VII Desenvolvimento Imobiliário S/A, in accordance with the provisions of CVM
Instruction 408/04.
i) Name, nature, purpose and activities of the SPE.

IRE VII! Desenvolvimento Imobiliário S/A was constituted as a corporation on December 9, 2010. Its main activities include the management, purchase, sale and rental of properties
owned by itself or by third parties; real estate development and investment in other companies as a partner or shareholder.

li) Investment in the equity and results of the SPE
On May 16, 2013, through FIP Rio Corporate, the Institution acquired 100% of the shares of IRE VII Desenvolvimento Imobiliário Ltda.

Página 9

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Total assets, liabilities and equity of the SPE at June 30, 2014 and 2013:

Current assets 3,509 12,682 Currentliabilities 1,236 11,437
Cash 511 14. Taxand social security contributions 58 10
Trading securities 1,927 12,471 – Otherliabilities 1,178 11,427
Other receivables 1,071 197

Permanent assets 48,804 31,423 – Equity 51,077 32,668
Property and equipment 48,804 31,423

Total assets 52,813 44,105 – Totalliabilities and equity 52,313 44,105

d) FIDC Pine Agro

Since the risks and rewards of the receivables assigned to the Fund remain with the Institution through its acquisition of 100% of the subordinated shares, management decided to
consolidate FIDC Pine Agro, as provided for in CVM Circular Letter 01/07.

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

Fundo de Investimento em Direitos Creditórios Financeiros – FIDC Pine Agro, managed by Oliveira Trust Distribuidora de Títulos e Valores Mobiliários S.A., was constituted as a
closed-end fund on September 16, 2013. The Fund’s equity comprises two types of shares: Senior Shares and Subordinated Shares, in accordance with Article 12 of CVM
Instruction 356/01. The first offer of the Fund’s Senior Shares was carried out under the terms of Instruction 476/09, only for Qualified Investors acquiring a minimum amount of R$
1,000 (one million reais). The Fund has no fixed duration.

Santander Brasil S.A. was contracted to render the following services for the Fund: controllership; qualified custody of portfolio assets; safekeeping of supporting documents, and
booking of the shares.

The purpose of the Fund is to provide a long-term return to Shareholders through investing in the acquisition of credit rights from (i) loan operations, originated and granted by the
assignor on either an exclusive or pooled basis, to clients in its business segments, and (ii) debentures issued by clients in its business segments, owned by the assignor, which may
have guarantees, including real guarantees, to ensure that they meet the assignment conditions and qualifying criteria, as well as the portfolio composition and diversification indices
established in the Fund regulations.

The Fund may acquire credit rights arising from and granted by assignors in the following business segments: (i) sugar and alcohol; (ii) agriculture (primary production); (iii) food
segment retailers and distributors; (iv) animal protein; (v) grain; (vi) beverages; (vii) renewable energy; (viii) trading; (ix) agricultural inputs; (x) paper and pulp; and (xi) value-added
products.

Investment in the equity and results of the FIDC

In accordance with Article 24, item XV, of CVM Instruction 356, as amended by CVM Instruction 393, and Chapter 21 of the Fund regulations, 70% of the Fund’s equity will comprise
senior shares and 30% will comprise subordinated shares. This ratio will be calculated daily and shall be made available for consultation by the Fund’s shareholders monthly.

li) Nature of the Institution’s involvement with the FIDC and type of exposure to losses, if any, arising from this involvement

Verification of whether the credit rights meet the assignment terms is, pursuant to the transfer agreement, the sole responsibility of the Custodian, without limiting the assignee’s
(Fund’s) right, either directly or through third parties, to conduct their own verification.

Non-compliance by the drawees 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 rights portfolio.

In the event the percentage of subordinated shares falls below 30% of the Fund’s equity, the Institution, pursuant to a request from the management entity, will have five consecutive
days to subscribe new subordinated shares to achieve the proportion equivalent to the guarantee ratio. If this does not occur within the established deadline, the management entity
will call a General Meeting of Shareholders to discuss (a) the early liquidation of the fund, or (ii) extraordinary amortization.

iv) Amount and nature of the receivables, payables, income and expenses between the Institution and the FIDC, assets transferred by the Institution and rights of use
over the FIDC assets.
Loans were assigned to FIDC Pine Agro in the amount of R$220.098 for the six-month period ended June 30, 2014.

Additionally, on account of its investment in subordinated shares in this Fund, the Institution recognized income of R$24,674 for the six-month period ended June 30, 2014, in the
“marketable securities” account.

v) Total assets, liabilities and equity of FIDC Pine Agro at June 30, 2014:

Current assets 631,639 – Currentliabi 112
Cash 12 Otherliabilities 112
Short-term interbank investments 30,698
Trading securities 216,690
Loan operations 373,531
Other receivables 10,708 Equity 631,527
Total assets 631,639 – Totalliabilities and equity 631,639

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 Fund 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 financial statements of Banco Pine are 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), where applicable.

Página 10

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

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 these financial statements.

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

The balances and the results of the transactions between Banco Pine and its subsidiaries and special purpose entities were eliminated in the consolidated financial statements. In the
consolidation process of the FIDCs, the balance of the loan assignment receivables portfolio was included in the Institution’s loan operations portfolio, with the corresponding entry of
the senior shares in the “Borrowings and onlendings – local”, account, net of balance of investments in investment fund shares, comprising the shares held of this Fund.

For comparison purposes, in compliance with BACEN Circular letter 3658 of May 13, 2014, obligations for shares of investment funds were reclassified from the “Borrowings and
onlendings” account to the “Other liabilities” account in the balance sheet. The expenses generated by the obligations for shares of investment funds were also reclassified from
“expenses for borrowings and onlendings” to “Other operating expenses” in the statement of operations.

b) Determination of the results of operations

Income and expenses are recorded on the accrual basis of accounting, which establishes that these 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 income and expenses are prorated, based substantially on the compound interest method.
Transactions with floating rates or those indexed to foreign currencies are adjusted up to the balance sheet date.

€) 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.
€) Marketable securities

In accordance with BACEN Circular 3068, 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 income 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 earnings 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.

Trading securities are presented in current assets, irrespective of their maturities.
1) Derivative financial instruments

In accordance with BACEN Circular 3082/02 and Circular-Letter 3026/02, 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 up 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.

Página 11

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

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 as losses 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.

h) Write off of financial assets

As established by BACEN Resolution 3533/08, financial assets are written off when the contractual rights to the cash flow of the financial asset expire or when the financial asset is
sold or transferred.

The sale or transfer of a financial asset is currently classified as:

A transaction with substantial transfer of risks and rewards: the transferor transfers substantially all risks and rewards of ownership of the financial assets involved in the
transaction, such as (i) unconditional sale of financial assets , (ii ) sale of financial asset combined with an option to repurchase the asset at fair value at the time of repurchase , and
(iii) sale of a financial asset combined with an option to buy or sell, the exercise of which is unlikely to occur;

A transaction with substantial retention of risks and rewards: the transferor retains substantially all risks and rewards of ownership of the financial assets involved in the
transaction, such as: (i) sale of the financial asset combined with a commitment to repurchase the same asset at a fixed price or the sale price plus any income generated; (ii)
securities loan agreements; (iii) sale of the financial asset combined with a total rate of return swap that transfers the exposure to market risk back to the transferor; ( iv ) sale of the
financial asset combined with an option to buy or sell which is unlikely to be exercised; and ( v ) sale of receivables for which the seller or transferor guarantees, by any means, to
compensate the purchaser or transferee for credit losses that may occur, or whose sale has occurred in conjunction with the acquisition of subordinated shares of the FIDC.

Transactions without transfer or substantial retention of risks and rewards: in which the transferor neither transfers nor retains substantially all the risks and rewards of
ownership of the financial asset involved in the transaction.

The allowance for loan losses complies with the guidelines established by BACEN Resolution 2682/99.

i) Prepaid expenses

These are controlled by contract and recorded 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.

5) 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.

k) 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 the 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.
1) 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 that generates cash flows that are largely independent of the cash flows from other assets or groups of assets. 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.
m) 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.

n) 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.

0) 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 Circular Letter 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, generally
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 may be changed in the future, based on the progress of each suit; When the probability of loss is deemed possible, no
provision is recorded and the related suits are merely disclosed;

Página 12

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Legal obligations (tax and social security): these are 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.

p) 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$ 120 (for

the six-month period), 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.

q) 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”.

r) 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.

s) Net income per share

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

4. CASH AND CASH EQUIVALENTS

US

2013
Cash . . . 120,026
Short-term interbank investments(1) 1,104,987 572,200 1,105,439 572,601
Total cash and cash equivalents 1,191,561 692,188 1,198,842 692,627

(1) These are transactions with maturties at the original investment date equal to or less than 90 days.
5. INTERBANK INVESTMENTS

Interbank investments at June 30, 2014 and 2013, are comprised as follows:

Upto3 months 3to12months RIO

ESTATE

Investments in purchase and sale commitments
Own portfolio position

National 693,998 – – 693,998
Financial 150,000 – – 150,000
Subtotal 843,998 – – 843,998
Sold position
Eurobond 9,362 – – 9,362
Subtotal 9,362 – – 9,362
Total investments in purchase and sale

commitments 853,360 – – 853,360
Interbank deposits
Own portfolio
Floating 1,576 12,884 11,745 26,205
Rural CD! 14,088 – – 14,088
Total interbank

deposits 15,664 12,884 11,745 40,293
Foreign currency investments
Foreign currency investments 251,626 – – 251,626
Total foreign currency investments 251,626 – – 251,626
Total interbank

investments 1,120,650 12,884 11,745 1,145,279

Página 13

ql
(A free translation of the original in Portuguese) a PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)
Consolidated

Upto3 months 3to12months RIO

ESTATE

Investments in purchase and sale commitments
Own portfolio position

LTN 694,451 – – 694,451
LET 150,000 – – 150,000
Subtotal 844,451 – – 844,451
Sold position
Eurobond 9,362 – – 9,362
Subtotal 9,362 . . 9,362
Total investments in purchase and sale
commitments 853,813 . >. 853,813
Interbank deposits
Own portfolio
Floating 1,576 12,884 11,745 26,205
Rural CDI 14,088 – – 14,088
Total interbank

deposits 15,664 12,884 11,745 40,293
Foreign currency investments
Foreign currency investments 251,626 – – 251,626
Total foreign currency investments 251,626 – – 251,626
Total interbank

investments 1,121,103 12,884 11,745 1,145,732

[Security/Maturity Up to 3 months 3to12 months

Investments in purchase and sale commitments
Own portfolio position

LFT 16,001 – 16,001
LTN 39,800 – 39,800
National 221,586 – 221,586
Subtotal 277,387 – 277,387
Financed position
LTN 46,913 – 46,913
Subtotal 46,913 – 46,913
Sold position
NTN 154,871 – 154,871
Subtotal 154,871 . 154,871
Total investments in purchase and sale

commitments 479,171 – 479,171
Interbank deposits
Own portfolio
Floating – 7,539 7,539
Rural CD! 25,550 101 25,651
Subtotal 25,550 7,640 33,190
Subject to guarantees
Floating 20,482 42,851 63,333
Subtotal 20,482 42,851 63,333
Total interbank

deposits 46,032 50,491 96,523
Foreign currency investments
Foreign currency investments 93,030 93,030
Total foreign currency investments 93,030 – 93,030
Total interbank

investments 618,233 50,491 668,724

Consolidated

ETNIA MA AEREA AP LO

Investments in purchase and sale commitments
Own portfolio position

LFT 16,001 – 16,001
LTN 40,200 – 40,200
NTN 221,586 – 221,586
Subtotal 277,787 – 277,787
Financed position
LTN 46,913 – 46,913
Subtotal 46,913 – 46,913
Sold position
NTN 154,871 – 154,871
Subtotal 154,871 – 154,871
Total investments in purchase and sale

commitments 479,571 – 479,571

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)
Interbank deposits

Own portfolio
Floating – 7,539 7,539
Rural CD! 25,550 101 25,651
Subtotal 25,550 7,640 33,190
Subject to guarantees
Floating 20,482 42,851 63,333
Subtotal 20,482 42,851 63,333
Total interbank

deposits 46,032 50,491 96,523
Foreign currency investments
Foreign currency investments 93,030 93,030
Total foreign currency investments 93,030 – 93,030
Total interbank

investments 618,633 50,491 669,124

6. MARKETABLE SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS
a) Marketable securities

The securities portfolio at June 30, 2014 and 2013 was comprised as follows:

Ca

Up to 3 months 3 to 12 months IERTIO ETIa 5 to 15 years TT

NTN 22,970 – – – 22,970 23,191
Debentures – 20,808 16,293 – 37,101 38,192
Promissory notes 39,683 – – – 39,683 39,586
Receivables investment fund
shares – o 10,470 208,158 – 218,628 218,628
Subtotal 62,653 – 31,278 224,451 – 318,382 319,597
Subject to

guarantees:
NTN 51,851 49,880 – 152,280 50,693 – 304,704 323,089
Subtotal 51,851 49,880 152,280 50,693 – 304,704 323,089
Total available-for-sale

securities 114,504 49,880 183,558 275,144 – 623,086 642,686
Trading securities(1):
Own portfolio:
LTN – 27,138 – 4,571 – – 31,709 31,659
NTN – 10,998 41,084 52,695 20,219 124,996 131,143
Debentures 3,700 40,493 – 77,155 32,679 – 154,027 151,551
Investment fund shares (2) 193,003 o – – – 193,003 205,353
Subtotal 196,703 78,629 122,810 85,374 20,219 503,735 519,706
Subject to repurchase

agreements:
LTN – 190,339 – 70,325 – – 260,664 260,055
NTN 82,303 o – – – 82,303 82,831
Debentures 1,425 5,264 – 35,922 104,652 – 147,263 143,885
Eurobonds 10,140 – – – – 10,140 10,020
Subtotal 93,868 195,603 106,247 104,652 – 500,370 496,791
Subject to

guarantees:
LTN – 14,294 > 15,123 – – 29,417 29,343
NTN – 21,448 – 22,207 – – 43,655 44,495
Subtotal – 35,742 37,330 – – 73,072 73,838
Total trading

securities 290,571 309,974 266,387 190,026 20,219 1,077,177 1,090,335
Total marketable securities 405,075 359,854 449,945 465,170 20,219 1,700,263 1,733,021

Ta

Ca

TIEM] MAREO EAS 110 3 years Ea 5to 15 years E

NTN 22,970

– – – 22,970 23,191

Debentures – 20,808 16,293 – 37,101 38,192
Promissory notes 39,683 – – – – 39,683 39,586
Subtotal 62,653 – 20,808 16,293 – 99,754 100,969
Subject to

guarantees:
NTN 51,851 49,880 152,280 50,693 – 304,704 323,089
Subtotal 51,851 49,880 152,280 50,693 – 304,704 323,089
Total available-for-sale

securities 114,504 49,880 173,088 66,986 – 404,458 424,058

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Trading securities(1):

Own portfolio:
LFT – 13,001 – 134,016 72,765 219,782 219,782
LTN – 27,138 4,571 – – 31,709 31,659
NTN – 10,998 41,084 52,695 20,219 124,996 131,143
Debentures 3,700 40,493 77,155 32,679 – 154,027 151,551
Investment fund shares (2) 104,276 – – – – 104,276 102,222
Subtotal 107,976 91,630 122,810 219,390 92,984 634,790 636,357
Subject to repurchase

‘commitments:
LTN – 190,339 70,325 – – 260,664 260,055
NTN 82,303 – – – – 82,303 82,831
Debentures 1,425 5,264 35,922 104,652 – 147,263 143,885
Eurobonds 10,140 – – – – 10,140 10,020
Subtotal 93,868 195,603 106,247 104,652 – 500,370 496,791
Subject to

guarantees:
LTN – 14,294 15,123 – – 29,417 29,343
NTN – 21,448 22,207 – – 43,655 44,495
Subtotal – 35,742 37,330 – – 73,072 73,838
Total trading

securities 201,844 322,975 266,387 324,042 92,984 1,208,232 1,206,986
Total marketable securities 316,348 372,855 439,475 391,028 92,984 1,612,690 1,631,044

Ca

[Security/Maturity WAS EAS 110 3 years Ea 5to 15 years E

LTN – 183,907 – – – 183,907 184,788
NTN – o 119,950 145,561 48,920 314,431 333,788
Debentures – o 20,420 – 65,147 85,567 90,354
Receivables investment fund
shares – 32,332 – – 32,332 32,332
Certificates of real estate receivables (CRI) – 15,085 – – – 15,085 15,000
Total available-for-sale

securities – 198,992 172,702 145,561 114,067 631,322 656,262
Trading securities(1):
Own portfolio:
LTN 447,887 3,208 – 3,015 – – 454,110 454,131
NTN – 8,150 – 11,942 5,825 19,951 45,868 46,689
Debentures 1,287 o 7,413 2,017 – 10,717 10,667
Investment fund shares (2) 225,484 o – – – 225,484 240,055
Eurobonds 57 62 – 21,133 3,794 – 25,046 24,721
Subtotal 674,715 11,420 43,503 11,636 19,951 761,225 776,263
Subject to repurchase

agreements:
LTN 249,999 450,624 – 40,239 – – 740,862 742,140
NTN – o 98,502 3,612 – 102,114 102,228
Debentures 96,639 o 50,135 68,411 – 215,185 212,923
Subtotal 346,638 450,624 188,876 72,023 – 1,058,161 1,057,291
Subject to

guarantees:
LTN – 67,756 – – – 67,756 67,268
NTN – – – 15,066 48,920 63,986 68,333
Subtotal – 67,756 – 15,066 48,920 131,742 135,601
Total trading

securities 1,021,353 529,800 232,379 98,725 68,871 1,951,128 1,969,155
Total marketable securities 1,021,353 728,792 405,081 244,286 182,938 2,582,450 2,625,417

Consolidated

Ca

MAELO RS KIO O 5 to 15 years SEN

LIN – 183,907 – – – 183,907 184,788
NTN – 119,950 145,561 48,920 314,431 333,788
Debentures – – 20,420 – 65,147 85,567 90,354
CRI – 15,085 – – – 15,085 15,000
Total avallable-tor-sale

securities – 198,992 140,370 145,561 114,067 598,990 623,930

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Trading securities(1):

Own portfolio:
LTN 447,887 3,208 – 3,015 – – 454,110 454,131
LFT 12,442 – – – – – 12,442 12,442
NTN 8,150 – – 11,942 5,825 19,951 45,868 46,689
Debentures 1,287 – – 7,413 2,017 – 10,717 10,667
Investment fund shares (2) 173,732 – – – 173,732 170,279
Eurobonds 57 62 – 21,133 3,794 – 25,046 24,721
Subtotal 643,555 3,270 43,503 11,636 19,951 721,915 718,929
Subject to repurchase

‘commitments:

LTN 249,999 450,624 – 40,239 – 740,862 742,140
NTN – – 98,502 3,612 – 102,114 102,228
Debentures 96,639 – – 50,135 68,411 – 215,185 212,923
Subtotal 346,638 450,624 188,876 72,023 “ 1,058,161 1,057,291
Subject to

guarantees:

LTN – 67,756 – – 67,756 67,268
NTN – 15,066 48,920 63,986 68,333
Subtotal – 67,756 – 15,066 48,920 131,742 135,601
Total trading

securities 990,193 521,650 232,379 98,725 68,871 1,911,818 1,911,821
Total marketable securities 990,193 720,642 372,749 244,286 182,938 2,510,808 2,535,751

(1) Securiles classified in the “trading” category are stated based on their maturiy dates.
(2) The assets comprising these funds are mostly debentures, promissory notes and receivables cerícates totaling R$489,459 (June 30, 2013 – AS548,942) (Note 7a.).

At June 30, 2014 and 2013, there were no securities classified as “held to maturity”.

As established in Article 5 of BACEN Circular 3068/08, securities may only be reclassified on the date of the half yearly balance sheets. At June 30, 2014 and 2013, no securities
were reclassified.

The market values of the securities recorded in the “available-for-sale” and “trading” categories were determined based on the prices and rates practiced on June 30, 2014 and 2013,
released by the Brazilian Association of Financial and Capital Market Institutions (ANBIMA), the Sáo Paulo Stock, Commodities and Futures Exchange (BM8FBOVESPA), – by the
investment fund managers and by the international information agencies. The mark-to-market adjustment of the securities recorded in the available-for-sale category resulted in a
loss adjustment of R$19,601 in the Individual and Consolidated (June 30, 2013 – loss adjustment of R$24,940 in the Individual and Consolidated), with an impact on the Institution’s
equity of R$11,761 in the Individual and Consolidated (June 30, 2013 – R$14,964 in the Individual and Consolidated), net of tax effects. The mark-to-market adjustment of the
securities recorded in the trading category resulted in a loss adjustment of R$13,158 in the Individual and an adjustment for gain of R$ 1,246 in the Consolidated (June 30, 2013
-loss adjustment of R$3 in the Individual and Consolidated) in the statement of operations.

b) Derivative financial instruments
i) Utilization policy

The growing level of corporate 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.

li) 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 policies. 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 enables the Institution to offer customers the products which are most appropriate to their
specific needs.

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 at the OTC clearing house, CETIP S.A. – Mercados Organizados. The derivative contracts traded 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 portfolio terms.

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

The Institution uses the market reference rates released principally by (No Suggestions), 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) Credit Deivatives

Represent, in general, a bilateral contract in which one of the parties purchases protection against the credit risk of a particular financial instrument (the risk is transferred). The
counterparty selling protection receives a remuneration that is usually paid in a linear throughout the duration of the operation mode. In the case of a credit event (“default”), the
counterparty who bought protection receive a payment, whose goal is to offset the loss on the financial instrument. In this case, the counterparty selling protection usually receives
the underlying asset in exchange for the payment.

On June 30, 2014, Pine conducted operations with client sovereign risk of the Federative Republic of Brazil.

Página 17

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013
(ln thousands of reais, unless otherwise stated)

v) 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 June 30, 2014 and 2013, the derivative financial instrument positions are as follows:

LENTES

CANA

ASSETS

Swap – difference receivable 63,882 136,846 200,728 49,622 255,293 304,915
Forward contracts- receivable 288,956 13,644 302,600 69,539 26,650 96,189
Premiums on unexercised options 45,479 2,571 48,050 63,706 1,666 65,372
Credit derivative – translerred risk – 234 234 – – .
Total receivable 398,317 153,295 551,612 182,867 283,609 466,476
LIABILITIES

Swap – difference payable (14,007) (52,135) (66,142) (62,742) (38,616) (101,358)
Forward contracts- payable (139,842) (6.626) (146,468) (77,007) (7.673) (84,680)
Premiums on written options (34,763) (831) (35,694) (86,299) (1,495) (87,794)
Total payable (188,612) (59,692) (248,304) (226,048) (47,784) (273,832)
Net amount 209,705 93,603 303,308 (43,181) 235,825 192,644

vi) Derivative financial instruments by index

LENTES

DE E EOS ESTI
Swap
Market risk
Asset position: 5,948,957 200,728 –
Interest 4,642,767 138,004
Currency 1,297,867 62,724
Variable income 8,323 – –
Liability position: 5,948,957 – (47,244)
Interest 2,346,257 – (45,143)
Currency 3,602,700 – (2,101)
Net amount 200,728 (47,244) (36,000)
Cash flow hedge
Asset position 259,675 – –
Currency 259,675 – –
Liability position: 259,675 – (18,898)
Interest 259,675 – (18,898)
Net amount – (18,698) (5,362)
Forward cont
Asset position 8,993,918 302,600 –
Interest 5,962,315 261,080
Currency 2,651,924 25,558
Commodities 379,679 15,962 –
Liability position: 8,993,918 – (146,468)
Interest 2,357,783 – (120,910)
Currency 6,513,880 – (24,620)
Commodities 122,805 – (938)
Net amount 302,600 (146,468) 290,562
Options
Premium on unexercised options: 1,826,686 48,050 –
Currency 1,408,231 24,952 –
Commodities 418,455 23,098 –
Premiums on written options: 1,261,281 – (35,694)
Currency 820,872 – (13,379)
Commodities 440,409 – (22,315)
Net amount 48,050 (35,694) 43,929
Credit derivatives
Asset position: 11.012 234 –
Security 11,012 234 –
Liability position: 11.012 – –
Security 11,012 – –
Net amount 234 – 234
Total receivable (payable) and gain (loss) 551,612 (229,406) 293,363

Página 18

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Individual and Consolidated

Swap

Market risk
Asset position:
Interest

Currency

Variable income
Liability position:
Interest

Currency

Net amount

Interest

Currency
Commodities
Liability position:
Interest

Currency
Commodities

Net amount

Options

Premium on unexe
Currency
Commodities
Premiums on written options:
Currency

Commodities

Net amount

¡sed option:

Total receivable (payable) and gain (loss)

vii) Derivative financial instruments – futures contracts

Interbank market
Currency
Commodities
Future exchange coupon:
Exchange swap

Total

Interbank market:
Index

US Dollar

Future exchange coupon:
Commodities

Total

viii) Derivative financial instruments by maturity

DES

TS

3,231,161 304,915 –
2,309,276 161,283 –
860,809 143,632 –
61,076 – –
3,231,161 – (101,358)
2,316,492 – (86,872)
914,669 – (64,486)
304,915 (101,358) 114,196
3,013,444 96,189 .
1,241,475 221 –
1,650,060 95,783 –
121,909 185 –
3,013,444 – (84,680)
1,103,342 – (1,008)
1,686,694 – (83.653)
223,408 – (19)
96,189 (84,680) (27,897)
1,200,329 65,372 –
560,944 23,601
639,385 41,771 –
1,472,961 – (87,794)
769,723 – (43,599)
703,238 – (44,195)
65,372 (87,794) (8,087)
466,476 (273,832) 78,212

DT

COME]

5

EN
O O

Purchase (payable)

2,046,626
3,033,201
167,313
532,682

5,779,822

DT

2,238,007 (394)
27,243 6,456
373,066 (22)
3,211,829 (9,532)
3,369,926 17,965
9,220,071 14,473 (282,141)

COME]

5
EN
O O

Purchase (payable)

3,019,181
1,268,241
1,750,940
230,138
230,138
3,249,319

MAS

3,347,392 6,967
3,322,760 (18,464)
24,632 25,431
170,853 .
170,853 –
3,518,245 6,967 32,383

Swap

Forward contracts
Options

Futures

Credit derivatives

ELO ESTO
1,813,592 755,196 2,293,292 230,429 1,116,123 6,208,632
7,062,900 1,668,674 261,581 763 – 8,993,918
1,711,148 1,299,440 70,525 6,854 – 3,087,967
9,970,476 3,540,449 1,193,275 149,383 146,310 14,999,893
– 11,012 – – – 11,012

Página 19

ql
(A free translation of the original in Portuguese) a PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

ENTES

MAS

30 12
ELO O HENO ESTO EAT

Swap 404,379 743,776

1,022,876 601,326 458,804 3,231,161
Forward contracts 1,685,715 977,706 350,023 – – 3,013,444
Options 1,678,338 950,335 44,617 – – 2,673,290
Futures 3,726,441 1,697,078 983,898 222,561 137,586 6,767,564

ix) Derivative financial instruments by trading market

At June 30, 2014 and 2013, the swaps, forward contracts and options, whose notional amounts are recorded in a memorandum account are comprised as follows:

CONTESTO

ES CS Futures
143,982

Exchange 252,084 2,245,772 14,999,893

BM8.FBOVESPA 110,800 – 1,598,278 14,463,128 –
Exchanges abroad 33,682 252,084 647,494 536,765 –
OTC 6,064,650 8,741,834 842,195 – 11,012
Financial institutions 928,935 137,321 – – 11,012
Companies 5,135,715 8,604,513 842,195 – –
Total 6,208,632 8,993,918 3,087,967 14,999,893 11,012

LENTES

Swaps Forward contracts CS

Exchange 185,171 175,792 1,563,206 6,740,284
BM8FBOVESPA 125,300 – 873,950 6,360,083
Exchanges abroad 59,871 175,792 689,256 380,201
ore 3,045,990 2,837,652 1,110,084 27,280
Financial institutions 552,091 306,099 – 27,280
Companies 2,493,899 2,531,553 1,110,084 –
Total 3,231,161 3,013,444 2,673,290 6,767,564

x) Amount and type of guarantee margin

The margin amounts deposited in guarantee at June 30, 2014 and 2013 are comprised as follows:

CONTESTO

Guarantee margin – Exchange clearing house – BMC.

National Treasury Bills (LTN) – 19,330
National Treasury Notes (NTN) 1,674 15,065
Subtotal 1,674 34,395
Guarantee margin – BMFEBOVESPA

LTN 15,123 48,426
NTN 346,685 48,921
Subtotal 361,808 97,347
Guarantee margin – Other

LTN 14,294 –
Subtotal 14,294 –
Total 377,776 131,742
xi) Cash flow hedge

On March 28, 2014, funds in the amount of US$ 115 million were obtained, divided into two tranches, through the Inter-American Development Bank (IDB), translated at the
exchange rate of R$2.26 : R$1.00 on that date, resulting in a debt of R$ 260 million. The grace period for payment of the principal extends February 15 to August 15, 2019. The
Institution opted to protect its exposure to the risks arising from this transaction with a cash flow hedge.

The effectiveness determined for the hedge portfolio complies with the requirements of BACEN Circular 3082 of January 30, 2002 and the hedge accounting structure was
established as follows:

a)

NS

DN TE
Hedges of onlendings abroad 259,675 (5,362) 270,871
Total 259,675 (5,362) 270,871

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

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

We present below a summary of the loan operation portfolio information at June 30, 2014 and 2013:

a) By type of loan:

COMETE USE
Details ES 2013 UE 2013 |
Public sector 19,527 3,402 19,527 3,402
Working capital 3,214,355 2,439,354 3,235,598 2,535,587
Resolution 3844 (previously Resolution 2770) 37,736 – 37,736 –
Overdraft account 10,245 10,503 10,245 10,503
BNDES/FINAME onlending 1,054,117 844,157 1,054,117 844,157
Payday loans 5,312 18,235 5,312 18,235
Foreign currency financing 561,346 325,108 561,346 325,108
Export financing 825,189 941,550 825,189 941,550
Subtotal – Loan operations 5,727,827 4,582,309 5,749,070 4,678,542
Debtors for purchase of assets(1) 200,555 126,038 200,555 126,038
Advances on foreign exchange contracts and income receivable (2) 550,905 578,678 550,905 578,678
Sureties and guarantees honored 393 – 393 –
Notes and credits receivable(1) 66,286 100,160 66,286 100,160
Credit portfolio 6,545,966 5,387,185 6,567,209 5,483,418
Loans for imports 4,123 154,639 4,123 154,639
Guarantees provided 2,941,178 2,806,972 2,941,178 2,806,972
Coobligations in loan assignments – ES – 83
Guarantees provided and responsibilities 2,945,301 2,961,694 2,945,301 2,961,694
Notes and credits receivable(1) 30,238 30,262 30,238 30,262
Corporate bonds (3) 489,459 518,680 489,459 518,680
Securities with credit risk 519,697 548,942 519,697 548,942
Total expanded portfolio 10,010,964 8,897,821 10,032,207 8,994,054

(1) Recorded in “Other recelvables – sundry” (Note 9a).
(2) Recorded in “Foreign exchange portfolio” (Note 8).
(3) Mostly debentures, promissory notes and receivables certificates in he funds’ portfolio and in Banco Pine’s portfolio (Note S(a)).

b) By maturity:

AÁmounts Amounts
UE pastdue

Up to 3 months 1,715,573 26.31 11,662 47.00 1,727,235 26.39
3 to 12 months 2,530,729 38.81 13,149 53.00 2,543,878 38.86
110 3 years 1,669,516 25.60 – – 1,669,516 25.50
31o 5 years 427,753 6.56 – – 427,753 6.53
5to 15 years 177,584 2.72 – – 177,584 2.72
Total credit portfolio 6,521,155 100.00 24,811 100.00 6,545,966 100.00
Up to 3 months 307,893 10.45 – – 307,893 10.45
3 to 12 months 955,344 32.44 – – 955,344 32.44
110 3 years 1,017,047 34.53 – – 1,017,047 34.53
30 5 years 665,017 22.58 – – 665,017 22.58
Total guarantees provided and responsibilities 2,945,301 100.00 – – 2,945,301 100.00
Up to 3 months 55,391 10.66 – – 55,391 10.66
3 to 12 months 45,757 8.80 – – 45,757 8.80
10 3 years 224,546 43.21 – – 224,546 43.21
310 5 years 153,625 29.56 – – 153,625 29.56
5 to 15 years 34,373 6.61 – – 34,373 6.50
More than 15 years 6,005 1.16 – – 6,005 1.17
Total securities with credit risk 519,697 100.00 – – 519,697 100.00
Total expanded portfolio 9,986,153 24,811 10,010,964

Consolidated

LS LTS

Falling due past due
Up to 3 months 1,715,572 26.22 11,662 47.00 1,727,234 26.30
3 to 12 months 2,551,972 39.01 13,149 53.00 2,565,121 39.06
110 3 years 1,669,516 25.52 – – 1,669,516 25.42
3 to 5 years 427,753 6.54 – – 427,753 6.51
5to 15 years 177,585 2.71 – – 177,585 2.71
Total credit portfolio 6,542,398 100.00 24,811 100.00 6,567,209 100.00
Up to 3 months 307,893 10.45 – – 307,893 10.45
3 to 12 months 955,344 32.44 – – 955,344 32.44
110 3 years 1,017,047 34.53 – – 1,017,047 34.53
3 to 5 years 665,017 22.58 – – 665,017 22.58
Total guarantees provided and responsibilities 2,945,301 100.00 – – 2,945,301 100.00

Página 21

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Up to 3 months 55,392 10.66 – – 55,392 10.66
3 to 12 months 45,757 8.80 – – 45,757 8.80
10 3 years 224,546 43.21 – – 224,546 43.21
310 5 years 153,625 29.56 – – 153,625 29.56
5 to 15 years 34,373 6.61 – – 34,373 6.61
More than 15 years 6,004 1.16 – – 6,004 1.16
Total securities with credit risk 519,697 100.00 – – 519,697 100.00
Total expanded portfolio 10,007,396 24,811 10,032,207

AÁmounts Amounts
UE pastdue

Up to 3 months 1,663,510 31.17 13,948 27.86 1,677,458 31.14
3 to 12 months 1,647,920 30.88 36,106 72.12 1,684,026 31.26
110 3 years 1,341,428 25.13 41 0.02 1,341,439 24.90
31o 5 years 546,155 10.23 – – 546,155 10.14
5 to 15 years 138,107 2.59 – – 138,107 2.56
Total credit portfolio 5,337,120 100.00 50,065 100.00 5,387,185 100.00
Up to 3 months 662,674 22.38 280 100.00 662,954 22.38
3 to 12 months 1,030,910 34.81 – – 1,030,910 34.81
110 3 years 783,414 26.45 – – 783,414 26.45
30 5 years 440,694. 14.88 – – 440,694 14.88
5 to 15 years 43,722 1.48 – – 43,722 1.48
Total guarantees provided and responsibilities 2,961,414 100.00 280 100.00 2,961,694 100.00
3 to 12 months 98,163 17.88 – – 98,163 17.88
110 3 years 18,328 3.34 25 100.00 18,353 3.34
30 5 years 161,543 29.43 – – 161,543 29.43
5 to 15 years 188,303 34.30 – – 188,303 34.30
More than 15 years 82,580 15.05 – – 82,580 15.05
Total securities with credit risk 548,917 100.00 25 100.00 548,942 100.00
Total expanded portfolio 8,847,451 50,370 8,897,821

LS LTS
EN past due

Up to 3 months 1,663,510 30.62 13,948 27.86 1,677,458 30.59
3 to 12 months 1,649,755 30.36 36,106 72.12 1,685,861 30.74
110 3 years 1,435,825 26.43 1 0.02 1,435,836 26.19
3 to 5 years 546,155 10.05 – – 546,155 9.96
5to 15 years 138,108 2,54 – – 138,108 252
Total credit portfolio 5,433,353 100.00 50,065 100.00 5,483,418 100.00
Up to 3 months 662,674 22.38 280 100.00 662,954 22.38
3 to 12 months 1,030,910 34.81 – – 1,030,910 34.81
110 3 years 783,414 26.45 – – 783,414 26.45
3 to 5 years 440,694 14.88 – – 440,694 14.88
5to 15 years 43,722 1.48 – – 43,722 1.48
Total guarantees provided and responsibilities 2,961,414 100.00 280 100.00 2,961,694 100.00
3 to 12 months 98,163 17.88 – – 98,163 17.88
110 3 years 18,328 3.34 25 100.00 18,353 3.34
3 to 5 years 161,543 29.43 – – 161,543 29.43
5to 15 years 188,303 34.30 – – 188,303 34.30
More than 15 years 82,580 15.05 – – 82,580 15.05
Total securities with credit risk 548,917 100.00 25 100.00 548,942 100.00
Total expanded portfolio 8,943,684 50,370 8,994,054

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

c) By business activit:

SI

2013

construction 1,281,232 323,919 1,296,102
Sugar and ethanol 1,252,514 1,064,605 1,253,775 1,074,270
Electric and renewable energy 1,169,235 997,492 1,169,235 997,492
Agriculture 1,034,229 608,012 1,037,206 618,110
Building and engineering – Infrastructure 786,348 588,380 788,272 606,702
Transportation and logistics 503,986 503,896 506,814 507,930
Vehicles and parts 435,214 456,704 435,214 461,745
Specialized services 391,777 423,052 391,777 428,479
Metal products 372,875 373,042 374,557 373,042
Telecommunications 347,352 318,765 348,651 318,765
Chemical and petrochemical 334,200 314,277 334,200 314,277
Foreign trade 312,252 284,174 313,093 293,736
Retail trade 301,796 276,287 301,796 278,808
Beverages and tobacco 242,486 224,514 242,486 233,320
Meat processing 189,307 222,306 191,069 222,306
Foodstufís 189,003 156,787 189,307 156,737
Construction material and decor 180,097 129,488 180,097 135,540
Steel products 117,297 98,710 117,297 98,710
Financial institution 76,841 96,487 76,841 96,487
Paper and pulp 67,839 72,846 70,437 72,846
Leisure and tourism 54,311 68,151 54,311 68,151
Information technology 45,739 64,809 45,739 64,809
Plastic and rubber 45,667 45,080 45,667 45,080
Mechanics 44,568 37,243 44,568 37,243
Water and sanitation 38,734 36,755 38,734 36,755
Textiles and clothing 32,214 32,595 32,214 34,431
Wholesale trade 28,238 34,219 28,238 34,219
Medical services 28,056 32,888 28,056 32,887
Leather and footwear 17,761 19,249 17,761 19,249
Pharmaceuticals and cosmetics 16,303 18,510 16,303 18,510
Electroelectronics 15,896 13,890 15,896 13,830
Individuals 8,756 3,486 8,756 3,486
Communications and printing 6,273 – 6,273 –
Mining 4,148 – 4,148 –
Total expanded portfolio 10,010,964 8,897,821 10,032,207 8,994,054

d) Credit portfolio by risk level and allowance, in accordance with Resolution 2682/99:

IEEE
ENTE ST Allowance Falling due TM Allowance
AA 1,059,484 – 1,059,484 – 1,061,408 – 1,061,408 –
A 1,986,306 – 1,986,306 9,932 1,990,969 – 1,990,969 9,955
B 2,272,232 10 2,272,242 22,722 2,283,944 10 2,283,954 22,839
c 846,906 1,404 848,310 25,449 849,850 1,404 851,254 25,538
D 235,965 10,216 246,181 24,618 235,965 10,216 246,181 24,618
E 36,169 9 36,178 10,853 36,169 9 36,178 10,853
F 26,737 46 26,783 13,391 26,737 46 26,783 13,391
G 52,198 10,553 62,751 43,927 52,198 10,553 62,751 43,926
H 5,158 2,573 7,731 7,731 5,158 2,573 7,731 7,731
Total 6,521,155 24,811 6,545,966 158,623 6,542,398 24,811 6,567,209 158,851
ETE
ENTE Allowance Falling due TM
AA 886,662 – 886,662 – 982,894 – 982,894 –
A 1,573,508 – 1,573,508 7,867 1,573,508 – 1,573,508 7,867
B 2,035,981 1 2,035,992 20,360 2,035,981 1 2,035,992 20,360
C 516,863 2,182 519,045 15,571 516,863 2,182 519,045 15,571
D 164,410 12,238 176,648 17,665 164,410 12,238 176,648 17,665
E 38,804 53 38,857 11,658 38,804 53 38,857 11,658
F 24,560 81 24,641 12,320 24,560 81 24,641 12,320
G 48,735 437 49,172 34,421 48,736 437 49,173 34,421
H 47,597 35,063 82,660 82,660 47,597 35,063 82,660 82,660
Total 5,337,120 50,065 5,387,185 202,522 5,433,353 50,065 5,483,418 202,522

€) By concentration level of the Institution’s total expanded portfolio:

Individual
Ea 2013
AT
Largest borrowers Amount O Amount O TT
Largest borrower 298,169 2.98 232,566 2.61 298,169 2.97 232,566 2.59
2nd to 10th 1,569,287 15.68 1,428,355 16.05 1,569,287 15.64 1,428,355 15.88
11th to 20th 1,067,344 10.66 1,018,394 11.45 1,067,344 10.64 1,018,394 11.32
21stto 50th 1,870,794 18.69 1,775,771 19.96 1,870,794 18.65 1,775,771 19.74
51st to 100th 1,753,704 17.52 1,612,965 18.13 1,753,704 17.48 1,627,333 18.09
Other borrowers 3,451,666 34.47 2,829,770 31.80 3,472,909 34.62 2,911,635 32.38
Total expanded portfolio 10,010,964 100.00 8,897,821 100.00 10,032,207 100.00 8,994,054 100.00

Página 23

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

MÁPINE

1) Banco Pine’s total expanded credit portfolio concentration by activity sector:

Consolidated

2013|
Agricultural 43,444 46,420 90,982
Housing – 25,231 – 25,231
Manufacturing 2,130,028 1,964,030 2,135,039 1,992,748
Commercial 780,038 251,379 780,880 255,735
Financial intermediation 103,866 138,197 106,462 144,248
Olher services 6,414,799 6,196,160 6,424,617 6,234,947
Individuals 538,789 250,163 538,789 250,163
Total expanded portfolio 10,010,964 8,897,821 10,032,207 8,994,054
9) Change in the allowances for loan losses and other loan losses, in accordance with Resolution 2682/99:
Individual
Details Era 2013|
Opening balance 178,130 186,652
Additions/Reversals 33,539 42,407
Amount written off (52,746) (26,777)
Exchange variation (1) (300) 240
Closing balance 158,623 202,522
ETA]
Details Er EE]
Opening balance 185,644 188,254
Additions/Reversals 33,539 40,805
Amount written off (52,746) (26,777)
PDD-FIDC (7,286) –
Exchange variation (1) (300) 240
Closing balance 158,851 202,522

(1) Exchange variation on the alowance for loan losses (PDD) of the overseas branch, classed in the “Other operating expenses” account in the statement of operations.
h) Credit recoveries

For the six-month period ended June 30, 2014, credits previously written off as a loss were recovered in an amount of R$4,848 (June 30, 2013 – R$6,540).

1) Renegotiation of contracts

At June 30, 2014, renegotiated contracts totaled R$151,511 (June 30, 2013 – R$ 124,767). The original ratings attributed to these contracts were maintained.

j) Transactions for the sale or transfer of financial assets
i. Transactions that neither transfer nor retain substantially all risks and rewards

For the six-month period ended June 30, 2014, loans were assigned, without coobligation, to parties not related to the Institution totalling R$ 1,978 (June 30, 2013 – R$ 7,957). These
assignments generated a loss in relation to their face value of R$ 1,315 for the six-month period ended June 30, 2014, without discounting the allowance for loan losses in the
amount of R$ 1,967 at June 30, 2014. The results of the assignments are recorded in the “Other operating expenses” account”. Additionally, contracts previously written off as a loss
in the amount of R$ 26,242 for the six-month period ended June 30, 2013 were assigned and these assignments generated a gain of R$ 2,910 recorded in the “Loan operations”
account. There were no assignments of contracts written off as a loss for the six-month period ended June 30, 2014.

li. Operations that retain substantially all risks and rewards

Since January 2012, as required by CMN Resolution 3533/08 do CMN, operations are accounted for considering whether the risks and rewards of ownership arising from the sale or
transfer of a financial asset are, or are not retained.

Loans were assigned to FIDC Pine Agro in the amount of R$220,098 for the six-month period ended June 30, 2014.

Assignments in Pine FIDC Agro comprise the following:

a]

LES

Credit operations assigned – Loans 181,594 181,594
Credit operations assigned – Financing 215,192 215,192
Total 396,786 396,786

8. FOREIGN EXCHANGE PORTFOLIO

LENTES
ES
2013

COTAS

Exchange purchases pending settlement 534,973 705,250 – –
Rights on exchange sales 4,313 391,589 – –
Income receivable 6,878 12,549 – –
Advances in local currency received (1,557) (83) – –
Exchange sales pending settlement – – 4,109 391,768
Liabilities for exchange purchases – – 546,084 654,548
Advances on foreign exchange contracts – – (544,027) (566,129)
Total 544,607 1,109,295 6,166 480,187

Página 24

ql
(A free translation of the original in Portuguese) a PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

9. OTHER RECEIVABLES – SUNDRY

a) Other receivables – Sundry

These are comprised as follows:

Advances and salary prepayments 1,926 1,926 1,915 1,915
Advances for payments on our behalf 6,666 – 6,666 5,425 – 5,425
Deferred tax assets (Note 9.b) 101,734 62,046 163,780 83,715 75,579 159,294
Debtors for purchase of assets 38,189 162,366 200,555 40,453 85,585 126,038
Income tax recoverable 107 54,353 54,460 325 43,442 43,767
Amounts receivable from affiliates 78 – 78 49 – 49
Notes and credits receivable 164,030 32,494 96,524 97,222 33,200 130,422
Sundry debtors – Brazil and abroad 4,466 63 4,529 7,616 – 7,616
Total 217,196 311,322 528,518 236,720 237,806 474,526

Advances and salary prepayments 1,996 1,996 1,994 1,994
Advances for payments on our behalf 7,720 – 7,720 5,461 – 5,461
Deferred tax assets (Note 9.b) 101,733 162,053 163,786 83,715 75,780 159,495
Debtors for purchase of assets 38,189 162,366 200,555 40,453 85,585 126,038
Income tax recoverable – 59,259 59,259 326 45,154 45,480
Notes and credits receivable 164,030 32,494 96,524 97,222 33,200 130,422
Sundry debtors – Brazil and abroad 10,232 63 10,295 11,472 – 11,472
Total 223,900 316,235 540,135 240,643 239,719 480,362

b) Deferred tax assets

At June 30, 2014 and 2013, the deferred tax assets and deferred tax liabilities in respect of corporate income tax (IRPJ) and social contribution on net income (CSLL) were

PERTARFERSO

Allowance for

loan losses 38,024 22,814 60,838 49,515 29,709 79,224
Adjustment of available-for-sale securities 4,900 2,940 7,840 6,235 3,741 9,976
Adjustment of trading securities 153 92 245 948 568 1,516
Credits written off as a loss 36,977 22,186 59,163 12,394 7,437 19,831
Futures market – Law 11196 – – 6,539 3,924 10,463
Provision for tax risks and

contingent liabilities 2,650 1,590 4,240 10,419 6,251 16,670
Provision for profit sharing 2,438 1,463 3,901 2,750 1,650 4,400
Provision for lawyers’ fees 1,534 921 2,455 2,285 1,372 3,657
Provision for equity accounting loss abroad 6,309 3,785 10,094 3,497 2,098 5,595
Provision for Resolution 3921 4,395 2,638 7,033 2,487 1,493 3,980
Provision for impairment of assets – – – 2,489 1,493 3,982
Hedge accounting adjustment – Instrument 1,341 804 2,145 – – –
Other provisions 3,641 2,185 5,826 – – –
Total 102,362 61,418 163,780 99,558 59,736 159,294

PERTARFERSO

Allowance for

loan losses 38,024 22,814 60,838 49,515 29,709 79,224
Adjustment of available-for-sale securities 4,900 2,940 7,840 6,235 3,741 9,976
Adjustment of trading securities 153 92 245 948 568 1,516
Credits written off as a loss 36,977 22,186 59,163 12,394 7,437 19,831
Futures market – Law 11196 – – – 6,539 3,924 10,463
Provision for tax risks and

contingent liabilities 2,652 1,591 4,243 10,545 6,326 16,871
Provision for profit sharing 2,438 1,463 3,901 2,750 1,650 4,400
Provision for lawyers’ fees 1,534 921 2,455 2,285 1,372 3,657
Provision for equity accounting loss abroad 6,309 3,785 10,094 3,497 2,098 5,595
Provision for Resolution 3921 4,397 2,639 7,036 2,487 1,493 3,980
Provision for impairment of assets – – – 2,489 1,493 3,982
Hedge accounting adjustment – Instrument 1,341 804 2,145 – – –
Other provisions 3,641 2,185 5,826 – – –
Total 102,366 61,420 163,786 99,684 59,811 159,495

Página 25

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Deferred tax liabilities

Markcto-market adjustment of derivative
financial instruments

Asset adjustment of judicial deposits

Income from renegotiation

Adjustment of unrestricted notes

Hedge accounting adjustment – Item

Total (Note 14.b)

PERSAS

31,711 19,026 50,737
356 214 570
447 268 715

1,322 794 2,116

33,836 20,302 54,138

33,415
594
1,394
2,360

37,763

20,049 53,464
357 951
836 2,230

1,416 3,776

22,658 60,421

Markcto-market adjustment of derivative
financial instruments

Asset adjustment of judicial deposits

Income from renegotiation

Adjustment of unrestricted notes

Hedge accounting adjustment – Item

Total (Note 14.b)

Activity of deferred tax assets and deferred tax liabilities

Deferred tax assets
Opening balance
Additions

Reversal

Closing balance

[Deferred tax liabilities
Opening balance
Additions

Reversal

Closing balance

31,711 19,026 50,787
356 214 570
447 268 715

33,836 20,302 54,138

ETA
162,535

79,262
(78,017)
163,780

2014
74,689
36,036

(56,587)
54,138

Projected realization of deferred tax assets and deferred tax liabilities

33,415
613
1,394
2,360

37,782

Individual
2013
143,052
55,679
(39,437)
159,294

EE
2013
51,656
33,301
(24,536)
60,421

20,049 53,464
369 982

836 2,230
1,416 3,776
22,670 60,452
SI

2014 2013
162,539 143,316
79,264 55,706
(78,017) (39,527)
163,786 159,495
US

2014 2013
74,689 51,685
36,036 33,309
(56.587) (24,542)
54,138 60,452

O

PEARFERO

Up to 1 year
1 to 2 years
210 3 years
310 4 years
410 5 years
5to 10 years
Total

CTN
2014

163,582 38,150 101,732
15,542 9,326 24,868
9,950 5,970 15,920
3,287 1,972 5,259
4,020 2,412 6,432
5,981 3,588 9,569
102,362 61,418 163,780

5,983
102,366

38,150 101,732
9,328 24,872
5,970 15,920
1,972 5,259
2,412 6,432
3,588 9,571

61,420 163,786

CONTESTO

PERSAS

Up to 1 year
1 to 2 years
210 3 years
3 to 4 years
410 5 years
5to 10 years
Total

10. INVESTMENTS

a) Investments in associated and subsidiary companies

20,668
4,690
2,712
157
224
5,385

33,836

12,401 33,069
2,814 7,504
1,627 4,339
94 251
134 358
3,232 8,617

20,302 54,138

a Pine Pine Ass. em a TS Ta

ESTTES ENSAGON (O EAS OMAGE [ESA

Holding – %. 100.0000 99.9900 10.000 99.9998 100.0000 9.9998
Number of shares held 5,000 10,000 10,000 892,298 1,000,000 500,000
Capital 11,013 10 60 13,385 1,000 500
Equity 6,959 2,890 32 44,185 3,516 3,473
Net income for the six-month period (1,547) 667 (9) 2,420 32 487
Investment amount 6,959 2,888 3 44,185 3,516 3,473
Equity in the results of investee (1,547) 667 (m 2,420 32 487
Foreign exchange variation (542) – – – – –

Página 26

03
Corretora
99.998
500,000
500
246

1 2,051

246 61,270

1 2,059

– (542)

ql
(A free translation of the original in Portuguese) É A PINE

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

a Pine Ass. em Ta TS Ta Ta
Planejamento (2) Comercial.(3) Investimentos – Energia Eletr. (3) Assessoria(1) Corretora(1)

Holding – %. 99.9900 10.00 99.9998 99.999 99.998 99.998

Number of shares held 10,000 10,000 892,298 77,399,000 500,000 500,000

Capital 10 60 13,385 77,400 500 500

Equity 14,862 47 39,194 82,114 35,575 237

Net income for the six-month period 10,744 (6) 1,120 1,685 66 4 13,613
Investment amount 14,861 5 39,194 82,114 35,575 237 171,986
Equity in the results of investee 10,744 (m 1,120 1,685 66 4 13,618

(1) According to the contractual amendment dated December 26, 2013, capital in Pine Comercializadora de Energia was decreased from R$77,400 to R$1,000.

b) Other investments

At June 30, 2014, Banco Pine has an amount of R$97,306 (June 30, 2013 – R$65,695) corresponding to the investment in land for real estate development, which is recorded in IRE
VII Desenvolvimento Imobiliário S/A. In the consolidated balance sheet this investment is recorded in the “Other investments” account.

11. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

a) Property and equipment in use

EAN

PTA] Accumulated 1 PO
CTC) ET CCSS

Facilities 10,238 (10,135) 10,575 (10,236) 339
Fumiture and equipment in use 10 2,979 (1,773) 1,206 3,196 (1,841) 1,355
Communications system 10 1,449 (902) 547 1,452 (903) 549
Data processing system 20 914 (885) 29 1,161 (1,017) 144
Security system 10 32 (21) 41 32 21) 41
Aircraft 10 16,293 (698) 15,595 16,293 (698) 15,595
Transport system 20 2,731 (789) 1,942 2,731 (789) 1,942
Total 34,636 (15,203) 19,433 35,440 (15,505) 19,935

EE

Annual LOTE] LO] Accumulated

o CAN) amount COTA)
Facilities 20 10,577 (9,875) 702 10,577 (9.875) 702
Fumiture and equipment in use 10 3,161 (1,592) 1,569 3,161 (1,592) 1,569
Communications system 10 1,426 (793) 633 1,429 (793) 636
Data processing system 20 1,162 (806) 256 1,162 (906) 256
Security system 10 32 (20) 12 32 (20) 12
Aircraft 10 24,083 (2,007) 22,076 24,083 (2,007) 22,076
Transportation systems 20 2,305 (540) 1,765 2,305 (540) 1,765
Total 42,746 (15,733) 27,013 42,749 (15,733) 27,016

b) Intangible assets

EAN

PT PA Net TO
EA E EAT

Expense for acquisition and
development of software 10 9,587 (8,504) 1,083 10,273 (8.969) 1,304
Total 9,587 (8,504) 1,083 10,273 (8,969) 1,304

EAN

IA PA Net TO
E EAN ELO EAN

Expense for acquisition and

development of software 10 9,468 (7,830) 1,638 9,533 (7,895) 1,638
Total 9,468 (7,830) 1,638 9,533 (7,895) 1,638
12. DEPOSITS
a) Analysis by maturity:

EE

PS OS ES ES OS

TES TES LEOTTA LEOTTA LOTTO
No stated maturity 43,416 – – 40,778 – –
Up to 30 days – 374,917 71,994 – 373,927 71,995
31 to 60 days – 418,941 6,327 – 418,031 6,327
61 to 90 days – 200,697 1,716 – 198,899 77
91 to 180 days – 672,784 691 – 667,403 691
181 to 360 days – 554,440 357 – 536,031 357
More than 360 days – 830,388 323 – 815,153 282
Total 43,416 3,052,167 81,408 40,778 3,009,444 79,729

Página 27

ql
(A free translation of the original in Portuguese) É A PINE

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

PE]
COLO COLO

a

EAN
Interbank
LOTO

Demand
LOTO

a
LOTTO

No stated maturity 19,138 – – 18,811 – –
Up to 30 days – 415,872 46,620 – 415.872 46,620
31 to 60 days 194,896 18,842 – 182,607 18,842
61 to 90 days 423,754 40,750 – 423,754 40,750
91 to 180 days 459,725 1,215 – 457,542 1,215
181 to 360 days 478,946 1,119 – 458,071 1,119
More than 360 days 1,309,049 6,651 – 1,169,575 1,614
Total 19,138 3,282,242 115,197 18,811 3,107,421 110,160

b) Analysis by market segment:

Manufacturing, commercial and

PE]

COTO COTO

SS

EAT]

TS
LOTT

Demand
LOTT

a
LOTTO

services 40,534 758,724 – 40,534 758,724 –
Related companies 2,638 42,723 1,679 – – –
Individuals 244 18,460 – 244 18,460 –
Financial institutions and

investment funds 2,232,260 79,729 – 2,232,260 79,729
Total 43,416 3,052,167 81,408 40,778 3,009,444 79,729

Manufacturing, commercial and

AA]
deposits

TS
deposits

Individual
TS
COTOS

Demand
COTOS

Time
deposits

services 18,261 952,925 – 18,261 962,925 –
Related companies 327 162,532 5,037 – – –
Individuals 550 17,366 – 550 17,366 –
Financial institutions and 2,149,419 110,160 – 2,137,130 110,160
investment funds
Total 19,138 3,282,242 115,197 18,811 3,107,421 110,160
13. FUNDS OBTAINED IN THE OPEN MARKET
EE
2014 2013|
Own portfolio
National Treasury Bills(LTN) 259,730 739,690
National Treasury Notes (NTN) 82,274 101,780
Debentures 143,849 213,400
Other securities issued abroad 7,396 –
Subtotal 493,249 1,054,870
Third-party portfolio
National Treasury Bills(LTN) – 45,008
Subtotal – 45,008
Unrestricted portfolio
Securities issued abroad 9,127 –
National Treasury Notes (NTN) – 145,431
Subtotal 9,127 145,431
Total funds obtained in the open market 502,376 1,245,309
SEE
2014 2013|
Own portfolio
National Treasury Bills(LTN) 229,032 739,690
National Treasury Notes (NTN) 82,274 101,780
Other securities issued abroad 7,396
Subtotal 318,702 841,470
Third-party portfolio
National Treasury Bills(LTN) – 45,008
Debentures 141,922 213,400
Subtotal 141,922 258,408
Unrestricted portfolio
Securities issued abroad 9,127 –
National Treasury Notes (NTN) – 145,431
Subtotal 9,127 145,431
Total funds obtained in the open market 469,751 1,245,309

Página 28

ql
(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

14. OTHER LIABILITIES
a) Collection and payment of taxes and similar:

At June 30, 2014, this balance consists of the tax on financial transactions (IOF) payable in the amount of R$920 (June 30, 2013 – R$530).

b) Tax and social security contributions

TJ

Taxes and contributions on

third-party services 123 – 123 144 – 144
Taxes and contributions on salaries 2,281 – 2,281 2,372 – 2,372
Taxes and contributions on income 34,788 – 34,788 36,481 – 36,481
Service tax (ISS) 354 – 354 555 – 555
Withholding income tax (IRRF) 2,238 – 2,238 2,288 – 2,288
Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) pe 328 – 328 489 – 489
Provision for deferred IRPJ and CSLL (Note 09) 33,069 21,069 54,138 33,069 21,069 54,138
Provision for tax risks (Note 15 (0) and (d)) – 369 369 – 377 377
Total 73,181 21,438 94,619 75,398 21,446 96,844

TJ

Taxes and contributions on

third-party services 116 – 116 126 – 126
Taxes and contributions on salaries 2,213 – 2,213 2,313 – 2,313
Taxes and contributions on income – – – 2,079 – 2,079
Service tax (ISS) 237 – 237 262 – 262
IRRF 1,130 – 1,130 1,198 – 1,198
PIS and COFINS payable 189 – 189 221 – 221
Provision for deferred IRPJ and CSLL (Note 09) 4,987 55,434 60,421 4,986 55,465 60,451
Provision for tax risks (Note 15 (0) and (d)) – 35,504 35,504 – 36,076 36,076
Total 8,872 90,938 99,810 11,185 91,541 102,726

c) Sundry

CJ

Provision for personnel expenses 18,569 – 18,569 20,153 – 20,153
Cashier’s checks 6,764 – 6,764 6,764 – 6,764
Provision for contingent

liabilities- civil (Note 15.e) – 8,239 8,239 – 8,239 8,239

Provision for contingent

liabilities – labor (Note 15.e) – 1,994 1,994 – 1,994 1,994
Other administrative expenses 4,742 6,137 10,879 5,167 6,137 11,304
Obligations for the sale and transfer of financial assets 330,438 66,349 396,786 – – –
Obligations for shares of investment funds – – – – 452,600 452,600
Sundry debtors – Brazil and abroad 3,240 – 3,241 4,598 – 4,598
Other provisions – 297 297 – 297 297
Negotiation and intermediation of securities 486 – 486 486 – 486
Total 364,239 83,016 447,255 37,168 469,267 506,435

CJ

Provision for personnel expenses 19,567 – 19,567 19,891 – 19,891
Cashier’s checks 5,231 – 5,231 5,231 – 5,231
Provision for contingent

liabilities- civil (Note 15.e) – 13,165 13,165 – 13,165 13,165
Provision for contingent

liabilities – labor (Note 15.e) – 2,409 2,409 – 2,441 2,441
Provision – FIDC – – – – 4,929 4,929
Other administrative expenses 3,340 9,142 12,482 3,389 9,142 12,531
Liabilities for investment fund shares
Sundry debtors – Brazil and abroad 2,652 – 2,652 14,191 – 14,191
Total 30,790 24,716 55,506 42,702 29,677 72,379

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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

15. CONTINGENT ASSETS AND LIABILITIES AND LEGAL OBLIGATIONS – TAX AND SOCIAL SECURITY CONTRIBUTIONS

a) Adherence to the programs for installment payment and discharging of tax debts (REFIS/Tax Amnesty – Law 12865/2013)

On December 31, 2013, considering the terms and benefits offered by the tax settlement program enacted by the Brazilian government, through Law 12865/13, the Institution’s
management reassessed, together with its legal counsel, the convenience of participating in this program. As a result, management decided to withdraw from specific proceedings
and to settle immediately the related contingent amounts.

The balance of these proceedings totaled R$357 in the Individual and R$948 in the Consolidated, resulting in a gain of R$213 (R$64 net of tax) in the Individual and a loss of R$140
(R$279 net of tax) in the Consolidated. These proceedings were mainly related to a PIS related challenge (1996 tax base) in Banco Pine, recorded as a provision at the full amount in
dispute. This process was settled in full with the balance of Judicial Deposits, in the amount of R$173. For the PIS suits for 1997 in the amount of R$10, with IRPJ for 1996 of R$10
and CSLL for 1997/98 of R$571. There were no amounts recorded as a provision in Pine Investimentos DTVM. The proceedings were partially paid with the balance of Judicial
Deposits in the amount of R$138.

b) Contingent assets
There were no contingent assets at June 30, 2014 and 2013.
Cc) Legal obligations – tax and social security

These are legal and administrative processes related to tax and social security obligations. The main processes are as follows:

PIS: The Institution and Pine Investimentos sought an injunction designed to render ineffective the wording of Article 3, paragraph 1, of Law 9718/1998, which changed the
calculation base of PIS and COFINS so that all corporate revenues are liable to these contributions. Prior to this rule, suspended in innumerous recent decisions by the Federal
Supreme Court (STF) only revenues derived from services rendered and the sale of merchandise were liable to these contributions. The injunction filed by Banco Pine received a
partially favorable judgment and the appeal lodged by the Federal Government was dismissed. The favorable final and unappealable decision was handed down on September 17,
2013.

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 that no loss is probable, and recognized a net gain in the total amount of R$35,163 in the Individual and R$35,764 in the Consolidated, for 2013, 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 the contributions to PIS which were overpaid during the
period from May 1999 to April 2005, in the historical amount of R$3,522 in the Individual and R$3,566 in the Consolidated, which adjusted for inflation, based on the variation in the
SELIC rate up to June 30, 2014, totaled R$8,514 in the Individual and R$8,620 in the Consolidated. Based on the final and unappealable judgment and the administrative procedure
filed at RFB, a corresponding tax credit was recognized in “Other receivables – Tax recoverable”, as a counter entry to the “Other operating income” account.

COFINS: In November 2005, the STF judged as unconstitutional Article 3, paragraph 1, 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.

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 that no loss is probable, and recognized a net gain in the total amount of R$150,510 in the Individual and R$151,357 in the Consolidated, for 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 Individual and R$15,872 in the Consolidated, which adjusted for inflation, based on the variation in the SELIC rate
up to June 30, 2014, totaled R$38,557 (June 30, 2013 – R$35,023) in the Individual and R$39,010 (June 30, 2013 – R$35,459) in the Consolidated. Based on the final and
unappealable judgment and the administrative procedure filed at 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:

CAN (O

Provision MEAT AA MENTE ToO

PIS – 34,421 34,142 34,394 – 34,985 34,361 34,954

COFINS – – 174,393 164,108 – – 175,379 165,033
Total – 34,421 208,535 198,502 – 34,985 209,740 199,987

d) Contingencies classified as probable are regularly provided for and for the six-month periods ended June 30, 2014 and 2013 are comprised as follows:

UE (ISI
OA Judicial deposits AA MENTE ToO
En]
Tax contingencies 369 1,083 1,769 2,144 377 1,091 1,798 2,422
Labor contingencies 1,994 2,409 827 553 1,994 2,441 827 553
Civil contingencies 8,239 13,165 2,211 1,762 8,239 13,165 2,211 1,762
Total 10,602 16,657 4,807 4,459 10,610 16,697 4,836 4,737

Página 30

ql
(A free translation of the original in Portuguese) a PINE

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

€) Activity in liability provisions

METE Tax/Legal
O) OS

Opening balance 716 1,925 9,997 12,638 42,056 4,665 18,298 65,019

Amount recorded (reversed) (853) (20) (2,110) (2,483) (7.682) (2,371) (5,702) (15,755)

Adjustments 6 89 352 447 1,130 115 569 1,814

Closing balance 369 1,994 8,239 10,602 35,504 2,409 13,165 51,078

CTA

Tax/Legal LT
OS TS

Opening balance 723 1,925 9,997 12,645 42,591 4,665 18,298 65,554

Amount recorded (reversed) (852) (20) (2,110) (2,482) (7.660) (2,369) (5,702) (15,731)

Adjustments 6 89 352 447 1,145 145 569 1,859

Closing balance 377 1,994 8,239 10,610 36,076 2,441 13,165 51,682

f) We present below the main suits and proceedings for which the likelihood of loss was deemed possible:

Labor: At June 30, 2014, the Institution had no labor claims classified as possible losses.
Civil: At June 30, 2014 and December 31, 2012, the Institution had no civil claims classified as possible losses.

16. BORROWINGS AND ONLENDINGS

CNE

UE From 3 to ES ET E

ELO PS SEO Ea TO
Local onlendings – official institutions 62,706 – 384,963 392,470 122,126 124,045 1,086,310
Foreign onlendings 2,322 – 2,662 128,169 132,114 33,029 298,296
Foreign borrowings 555,605 – 639,469 220,250 – 66,075 1,481,399
Total 620,633 1,027,094 740,889 254,240 223,149 2,866,005

COMER

pa ET E

3 months PS TO
Local borrowings – other institutions(1) 54,636 169,157 337,585 171,666 129,059 862,103
Foreign borrowings 540,508 549,072 – – 66,468 1,156,048
Total 595,144 718,229 337,585 171,666 195,527 2,018,151

17. FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES

a) Funds from exchange acceptances

CNE

pa EJ 5to

3 months PAS TO
Real estate letters of credit (LC) 92,515 139,184 93,760 434 – 325,893
Agribusiness letters of credit (LCA) 178,106 366,505 59,709 550 – 604,870
Financial bills (LF) 21,024 259,976 136,884 30,850 3,743 452,477
Total 291,645 765,665 290,353 31,834 3,743 1,383,240

ENEE

pa EJ 5to

3 months PAS TO
Lei 6,919 17,606 5,070 – – 29,595
LCA 188,403 114,929 11,822 – – 315,154
LE – 346,152 270,411 16,669 4,911 638,143
Total 195,322 478,687 287,303 16,669 4,911 982,892

b) Securities issued abroad

These are funds obtained through the global fixed-rate note program which, at June 30, 2014, totalled R$243,507 (June 30, 2013 – R$240,972), maturing up to 2023 and bearing
interest of up to 8.75% per annum plus LIBOR and exchange variation.

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

Página 31

(A free translation of the original in Portuguese)

BANCO PINE S.A. AND SUBSIDIARIES

NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

ENTES

ES OS LE]
CTE CO rate maturity
4,091 US$ – 2,00% a.a + Libor Jun/2014 – 6,047
2,000 US$ 1,85% a.a+ Libor Nov/2014 4,416 13,328
4,697 US$ 22%aa+ Libor Out/2013 10,458
1,044 US$ 87%a.a+ Libor Jan/2017 2,397 2,412
12,000 US$ 3/0%a.a+ Libor Jan/2014 – 13,505
23,529 US$ 4,20% a.a+ Libor Abr/2022 52,277 55,886
20,000 US$ 5,85% a.a + Libor Dez/2023 44,164 –
73,000 CLP 6/0%a.a + Var.UF Dez/2017 140,253 145,383
Total 243,507 247,019
(2) Current (12,131) (43,346)
Total long-term liabilities 231,376 203,673

18. SUBORDINATED DEBT

LENTES

2013
Fixed rate notes Publ 6/1/2017 US$125,000 8.75% p.a. 288,541 290,180
Financial bilis Private 6/12/2021 R$45,152 141.45% of CDI 55,388 51,322
Total 343,928 341,502
19. EQUITY
a) Capital

Pursuant to the bylaws, subscribed and paid-up capital totals R$1,112,259 and comprises 121,172,024 (June 30, 2013 – 110,842,313) registered shares, of which 65,178,483 (June
30, 2013 – 58,444,889) are common shares and 55,993,541 (June 30, 2013 – 52,397,424) 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 shares, with no par
value, by decision of the Board of Directors.

As resolved at a meeting of the Board of Directors held on February 4, 2013 and ratified by the Central Bank on April 19, 2013, capital was increased in the amount of R$31,576,
through the issue of 2,211,213 registered preferred shares, with 1,887,605 shares to PROPARCO – Société de Promotion et de Participation pour la Coopération Economique –
(PROPARCO) and 323,608 shares to other shareholders, from R$935,683 to R$967,259, comprising 110,842,313 registered shares, of which 58,444,889 are common shares and
52,397,424 are preferred shares, with no par value. The amount of this capital increase is recorded in equity in the “Capital” account.

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 earnings 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.

c) Revenue reserve

The Institution’s revenue reserve comprises the 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 Institution’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 establish statutory reserves, provided that their purpose, the percentage of net income to be allocated thereto and the
maximum amount to be maintained in each such reserve is specified. The allocation of funds to these reserves should not be approved to the detriment of the mandatory dividend.
The Institution established a statutory reserve of 100% of its net income, in the amount of R$26,945, after the transfer of 5% to the legal reserve of R$3,523, the deduction of the
payment of interest on own capital of R$33,263 and dividends in the amount of R$ 6,737, to maintain the Institution’s operating margin compatible with its asset transactions.

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, interest on own capital was accrued and declared, calculated based on the variation in the long-term interest rate (TJLP) for the
period. This interest on own capital decreased the expense for income tax and social contribution for the six-month period ended June 30, 2014 by R$13,305 (June 30, 2013 –
R$12,278).

We present below the dividends and interest on own capital related to income for the six-month period:

E TEO

Details TS O (gross) (gross) (net of IR) ETA
Interest on own capital 30/6/2014 17/7/2014 0.1414 16,733 0.1202 14,223
Interest on own capital 1/4/2014 14/4/2014 0.1366 16,530 0.1161 14,051
Dividends 30/6/2014 17/7/2014 0.0276 3,267 – –
Dividends 1/4/2014 14/4/2014 0.0287 3,470 –

Página 32

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

In accordance with Letter Circular 3516/11, the proposed additional dividend in excess of the minimum dividend, in the amount of R$11,584 (June 30, 2013 – R$20,819) is classified
in the “Revenue reserves” account.
We present below the reconciliation of dividends and interest on own capital for the six-month periods ended June 30, 2014 and 2013:

2013

Net income 70,468 84,216
Legal reserve (8,523) (4,211)
Calculation base 66,945 80,005
Interest on capital 33,263 30,696
Withholding tax – IRRF (15%) (4,989) (4,604)
Prepaid dividends 6,737 29,304
Amount proposed 35,011 55,396
%% of calculation base 52.30% 69.24%

e) Treasury shares

At a meeting of the Board of Directors on May 6, 2014, authorization was given for the acquisition of up to 2,423,440 of the Institution’s own preferred shares to be held in treasury for
subsequent sale, as well as the payment of variable remuneration to the Institution’s statutory directors, under the terms of Resolution 3921/11, without decreasing capital. Under this
plan, 1,946,538 shares were repurchased in the amount of R$14,630 at an average cost of R$7.48. The authorization will be effective up to November 5, 2014.

At a meeting of the Board of Directors held on March 27, 2014, approval was given for the cancellation of 2,440,732 registered preferred shares, held in treasury, with no decrease in
the amount of capital and with a decrease in share premium and the statutory reserve. These shares were acquired through a buyback program, approved by the Board of Directors,
in accordance with CVM Instruction 10, of February 14, 1980, amended by CVM Instructions 268, of November 13, 1997 and 390 of July 8, 2003.

At a meeting of the Board of Directors on March 27, 2014, authorization was given for the acquisition of up to 852,883 of the Institution’s own preferred shares to be held in treasury

for subsequent sale, as well as the payment of variable remuneration to the Institution’s statutory directors, under the terms of Resolution 3921/11, without decreasing capital. Under
this plan, 124,256 shares were repurchased in the amount of R$1,053 at an average cost of R$8.43. The authorization will be effective up to September 27, 2014.

At June 30, 2014, 2,799,421 (June 30, 2013 – 1,296,149) of the Institution’s own preferred shares were held in treasury in the amount of R$21,348 (June 30, 2013 – R$16,273). The
market value of these shares corresponded to R$21,052 (June 30, 2013 – R$15,554).

f) Carrying value adjustments

LENTES

2013

19, (24,940)

Marketable securities (19,601) (24,940)
Cash flow hedge (73) –
Hedged item 5,289 –
Hedging instrument (6,362) –

Other (8,632) 78

Income tax 11,358 9,977

Total (16,948) (14,885)

20. STATEMENT OF OPERATIONS

a) Loan operations

EE USE
2014 2013 En 2013|
Advance to depositors 107 203 107 203
Income from loans 243,209 147,279 248,103 155,526
Income from financing 115,727 94,949 113,593 94,725
Total 359,043 242,431 361,803 250,454
b) Marketable securities
EE USE
2014 2013 En 2013|
Income / Expense from transactions with fixed-income securities (FIDC) 28,889 (1,039) – –
Income from transactions with fixed-income securities 162,507 174,052 186,416 190,431
Expense for transactions with fixed+income securities (19,352) (61,492) (19,543) (61,495)
Income from transactions with variable-income securities 9,839 11,912 – –
Expense for variable-income securities (328) – – –
Total 181,555 123,433 166,873 128,936
c) Funds obtained in the market
EE USE
2014 2013 En 2013|
Expenses for interbank deposits 4,537 4,149 4,401 3,910
Expenses for time deposits 180,404 135,699 177,218 130,863
Expenses for purchase and sale commitments 20,553 52,917 22,698 55,700
Expense for (income from) securities issued abroad (7.433) 56,563 (7.433) 56,563
Expenses for contribution to credit guarantee fund 7,782 8,073 7,782 8,073
Expenses for agribusiness letters of credit 22,801 11,191 22,801 11,191
Expenses for financial bills 38,623 26,820 38,623 26,820
Expenses for real estate letters of credit 14,361 494 14,361 494
Total 281,628 295,906 280,451 293,614

Página 33

ql
(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

d) Borrowings and onlendings

ATA] TAO
2014 ENE 2014 2013
Expenses for onlendings (BNDES) 21,362 17,800 21,362 17.800
Expenses for foreign onlendings 2,429 146 2,429 146
Expenses for payables to foreign bankers 15,509 73,017 15,509 73,017
Expenses for loans abroad 913 976 913 976
Total 40,213 91,939 40,213 91,939
€) Income from services rendered
NJ Consolidated
2014 ENE 2014 2013
Credit facility fee 10,156 15,055 10,156 15,055
Commission on guarantees 21,669 18,160 21,669 18,160
Commission on intermediary services 4,801 8,740 11,548 25,232
Other 21 21 83 193
Total 36,647 41,976 43,456 58,640
1) Personnel expenses
ATA] TAO
2014 2013 2014 EE
Salaries 27,581 27,991 30,272 29,141
Benefits 4,245 4,172 4,468 4,341
Social charges 9,594 9,282 9,919 9,663
Directors” fees 655 484 655 493
Training 124 136 138 142
Interns 174 195 196 212
Total 42,373 42,260 45,648 43,992
9) Other administrative expenses
ATA] TAO
2014 ENE 2014 2013
Water, electricity and gas 280 231 292 234
Rental 4,705 4,477 4,975 4,538
Leased assets 452 498 452 498
Communications 1,695 1,756 1,709 1,756
Maintenance and repair of assets 912 953 915 956
Materials 65 75 65 75
Data processing 4,381 4,215 4,601 4,233
Public relations 1,539 1,635 1,600 1,694
Insurance 110 67 118 67
Financial system services 8,228 7,413 9,006 7,547
Third-party services 1,336 1,665 1,851 1,805
Surveillance and security services 2,608 2,314 2,608 2,314
Specialized technical services 7,361 5,903 7,799 6,089
Transportation 618 716 626 725
Travel 1,212 1,282 1,279 1,402
Other administrative expenses 6,094 7,787 6,224 7,871
Amortization and depreciation 2,128 3,048 2,223 3,048
Total 43,724 44,035 46,343 44,852
h) Tax expenses
ATA] TAO
2014 ENE 2014 2013
Service tax (ISS) 2,474 2,038 2,758 2,878
Social contribution on revenues(COFINS) 1,533 1,631 1,791 2,212
Social integration program (PIS) 249 1,584 296 1,714
Other 533 442 569 609
Total 4,789 5,695 5,414 7,413
1) Other operating income
ATA] TAO
2014 2013 2014 EE
Recovery of charges and expenses 750 755 750 759
Indexation – asset 632 1,410 642 1,438
Adjustment of judicial deposits 6,787 3,813 6,827 3,836
Reversal of provisions for labor, civil and tax proceedings 2,202 7,261 2,202 7,261
Other operating income 994 1,299 2,509 309
Reversal of provision for derivatives 3,728 – 3,728 –
Reversal of provision for FIDC – 1,602 – 1,602
Total 15,093 16,140 16,658 15,205

Página 34

ql
(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

j) Other operating expenses

TO Ca

2014 EE] 2014 2013|

Provision for labor and civil proceedings 423 – 423 –
Expense for assignment 1,315 6,811 1,315 6,811
Provision for FIDC – – – 4,929
Expense for obligations for shares of investment funds – – 31,735 4,144
Other operating expenses 3,083 3,884 3,382 4,005
Total 4,821 10,695 36,855 19,889

k) Non-operating income (expense)

For the six-month period ended June 30, 2014, the amount of R$11,307 in the Individual and in the Consolidated (June 30, 2013 – R$5,026 in the Individual and Consolidated)
corresponds mainly to the sale of assets received as payment in kind for the settlement of loan operations.

21. INCOME TAX AND SOCIAL CONTRIBUTION

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

Individual Consolidated
2014 EJE 2014 2013

Income before income tax (IRP.J) and social contribution (CSLL)
and less profit sharing 91,817 91,684 94,143 95,427
Interest on own capital (83,263) (30,696) (83,263) (30,696)
Income before taxation 58,554 60,988 60,880 64,731
Current rate 40% 40% 40% 40%
Expected expense for IRPJ and CSLL, based on current tax rate (23,422) (24,395) (24,352) (25,892)
Equity in the results of investees (765) – – –
Indemnity interest income 3,006 – 3,006 –
Different tax regimes in other companies – (253) 758 (254)
Other adjustments (168) 17,180 (8.087) 14,935
Income tax and social contribution (21,349) (7,468) (23,675) (11,211)

22. RELATED-PARTY TRANSACTIONS

a) Management compensation

In 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 (CMN).

The new Plan has the following main objectives: (i) alignment of the Institution’s executive compensation practices with 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; (iii) creation of an instrument designed to
attract and retain talent for the Institution’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 excluding the effects of controllable non-recurring events); (iii) 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 Executives based on the target agreements entered into by each director
as established in the PPLR program and filed at the Institutions head office; (vii) the performance of the business unit; and (viii) the relation between the Executives’ 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 cash, at the same time as the PPLR payment.

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

c) the amount corresponding to the remaining 40% of variable compensation will be paid in preferred shares of the Institution, delivered to the employee at the same time as the
payment in cash. The right to dispose of these shares will be on a “Deferred” basis, increasing in line with the Executive’s level of responsibility.

The delivery of the shares related to deferred variable compensation attributable to Executives will only occur if none of the following is 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 variable compensation.

The Institution’s Compensation Committee, constituted at the General Meeting held on January 16, 2012, is 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) annually reviewing the Institutions management compensation policy, recommending adjustments or
improvements to the board of directors; (iv) recommending to the board of directors the total amount of the executive 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 Institution’s management
compensation policy; (vi) analyzing the Institution’s compensation policy in relation to market practices, to identify significant differences as compared to peer companies, proposing
necessary adjustments; (vii) ensuring that this 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 (vii) preparing annually, within a period of ninety days as from December 31, of each year, a Compensation Committee Report, as required by
CMN Resolution 3921/10.

For the six-month period ended June 30, 2014, variable remuneration was determined in the amount of R$12,960 (June 30, 2013 – R$13,116) and the expense for the same period
was R$5,516 (June 30, 2013 – R$3,832) in accordance with the criteria defined in the new plan.

Página 35

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)
Individual and Consolidated

SAA SON 2014 2013
Fixed compensation 5,768 4,364
Variable compensation 12,960 13,116
Short-term benefits 2,577 1,519
Total 21,305 18,999

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 healthcare and free or subsidized goods or services).

Termination of employment agreement

The employment agreements are valid for an indefinite period. Officers are not entitled to any financial compensation when the employment relationship is terminated either
voluntarily or due to the non-fulfiliment of their obligations. If the employment agreement is terminated by the Institution, the officer may receive indemnification. During the six-month
period ended June 30, 2014, no compensation was paid to officers who left the Institution (June 30, 2013 – R$23).

b) Related parties

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

ET CNN

ENT ETE 2014 ETE
Marketable securities 335,893 12,442 38,728 (1,039)
Pine Crédito Privado – FIDC 5,196 12,442 4,215 (1,039)
FIP Rio Corporate 114,007 – 9,839 –
Pine Crédito Privado – FIDC Agro 216,690 – 24,674 –
Demand deposits 2,760 449 – –
Pine Investimentos 2,175 298 – –
Pine Comercializadora de Energia Elétrica 1 – –
Pine Corretora 7 4 –
Pine Assessoria 434 6 – –
Pine Assessoria em Comercializagáo de Energia 10 6 –
Pine Planejamento Ltda 13 7 –
IRE Vil Desenvolvimento Imobiliário Ltda 99 – – –
Administradores e familiares imediatos ‘” 21 128 – –
Interbank deposits 1,680 5,037 (136) (239)
Pine Investimentos 1,680 5,037 (136) (239)
Time deposits 54,444 186,711 (3,224) (6,687)
Pine Investimentos 36,082 29,025 (1,766) (994)
Pine Comercializadora de Energía Elétrica 755 82,441 (88) (2,976)
Pine Corretora 232 228 (12) (6)
Pine Assessoria 2,821 35,912 (854) (1,258)
Pine Planejamento Ltda 2,808 14,885 (456) (347)
Pine Assessoria em Comercializagáo de Energia 23 4 (1 (1
IRE Vil Desenvolvimento Imobiliário Ltda – 12,471 – (145)
Administradores e familiares imediatos ‘” 11,723 11,708 (37) (958)
Funds obtained in the open market 176,473 – (2,146) –
Pine Investimentos 143,849 – (3,354) –
Pine Crédito Privado – FIDC Agro 30,697 – 1,208 –
IRE Vil Desenvolvimento Imobiliário S/A. 1,927 – – –

(1) These amounts are not consolidated,.

Cc) Capital ownership

The following table presents the direct investment in common and preferred shares, at June 30, 2014 and 2013, of stockholders with more than five percent of total shares and of
members of the Board of Directors and Executive Board.

(A (A TO Preferred Total
OSO shares shares(%) DA shares (9%) shares shares (%)
Individuals 65,178,483 100.00 17,210,589 29.45 82,389,072 66.65
Board of Directors – – 3,736,574 6.39 3,736,574 3.02
Executive Officers – – 3,186,610 5.46 3,186,610 2.58
Total 65,178,483 100.00 24,133,773 41.30 89,312,256 72.25

Common Common Preferred A] Total
EOQUTTTO E shares(%) shares E E shares(%)
Individuals 51,886,766 100.00 15,595,863 33.21 67,482,629 68.27
Board of Directors – – 3,007,439 6.40 3,007,439 3.04
Executive Officers – – 2,083,458 4.44 2,083,458 2:11
Total 51,886,766 100.00 20,686,760 44.05 72,573,526 73.42

23. COMMITMENTS, GUARANTEES AND OTHER INFORMATION

2014 2013
Sureties and guarantees 2,941,178 2,806,972
Credit assignment with coobligation – 83
Letter of credit 4,123 154,639
Total 2,945,301 2,961,694

Página 36

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

24. 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 six-month period ended June 30, 2014, the amount of this contribution was R$192 (June 30, 2013 – R$186).
25. 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”.

26. RISK AND CAPITAL MANAGEMENT
a) Introduction and overview
Banco Pine is exposed to risks arising from the use of financial instruments which are continuously measured and monitored and has an analysis framework comprising directors, a

council and a committee responsible for assessing the following risks:
Credit risk
Liquidity risk
Market risk
Operational risk
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 the 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 of the Institution’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.

+ Review 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 reviews 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 enable 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 the control over the risks which, pursuant to the policy established by the Institution, are managed by the Special Assets Area.

€) Liquidity risk

Definition

Liquidity risk is associated with possible difficulties that the Institution may face in meeting its obligations as they fall due resulting from its financial liabilities.
Liquidity risk management

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

Daily control is carried out through reports in which the following items are monitored:

Página 37

(A free translation of the original in Portuguese)

AA PINE

38

BANCO PINE S.A. AND SUBSIDIARIES
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

+ Maturity mismatches between payment and receipt flows Group wide.

+ 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 P8L Risk Oversight Board, which reports to the Risk Control Oversight Board.

d) Market risk
1) 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 indices, 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, accordingly, out of the Institution’s control.

Market risks can be classified under different types, such as interest rate risk, foreign exchange risk, commodity price risk and share price risk. Each type represents the risk of
incurring losses due to oscillations in the corresponding 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 which 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, Liquidity and P8L Risk Oversight Department, which calculates the Value at Risk (VaR) and generates the Duration Gap of the 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 in BM8FBOVESPA, as well as changes to the interest rate curves, are used. Certain scenarios generated by ALCO
May also be used.

¡ii) 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 given horizon under 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 a one-day time horizon and a 99% confidence
interval. The calculation is based on closing market prices, taken from different sources (ANBIMA, (No Suggestions), and the Brazilian Central Bank, among others).

The VaR analysis is performed by market, vertex and risk factors associated with the interest curve, share, foreign exchange and commodity prices. If the VaR limit is surpassed, an
evaluation of the operations will be performed and those that present a greater risk will be readjusted by the Treasury in order to mitigate risk 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 475/08, we present below 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 June 30, 2014:

Sensitivity analysis

Scenarios
ESTO ON Possible () Remote (IM)
Fixed interest rate (PRE) Fixed interest rate variations 164 (20) (40)
General Market Price index (IGPM) IGPM coupon variations 240 (509) (1,018)
Price index (IPCA) IPCA coupon variation 252 (6.868) (13,737)
Long-term interest rate (TJLP) TJLP variations 16 1,289 2,577
US dollar coupon rate Exchange coupon variation 6,750 (8,651) (7.302)
Other currency coupon rates Exchange coupon variation 38 87 175
Ofíshore rates (LIBOR + other Offshore) Offshore rate variations 369 6,538 13,061
Currencies Change in exchange variation (15) (407) (814)
Total (uncorrelated sum)* (7,882) (19,385) (88,771)
Total (correlated sum)” 7,814 (3,541) (7,098)

“Uncorrelaed sum: sum ol he resulis oblaled in the worst stress scenarios for each risk factor.
*Correlated sum: the worst result of the sum of he stress test scenarios of allof the risk factors considering the correlation between them.

Página 38

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

Scenarios

Scenario comprising the variation in market factors between June 30, 2014 and July 7, 2014 (variation in the fixed rate from 10.91% to 10.92% in a 1-year curve and from 11.68% to

Scenario | – Probable 11.61% in a 3-year curve, variation in the US dollar from 2.2025 to 2.2228 and in the exchange coupon from 0.65% to 1.27% in a 1 year curve).

Scenario I- Possible (*) Scenario comprising a 25% shock to the market interest rate curve amounts (disclosed by BMEFBOVESPA), and to the closing prices (US dollar and equity), as in the following

example:

Market rate New market rate
Curve (1 year) Shock (1 year)
Fixed interest rale (PRE) 10.91% 25% 13.63%
General Market Price index (IGPM) 5.47% 25% 6.84%
Price index (IPCA) 4.85% 25% 6.08%
Long-term interest rate (TJLP) 5.54% 25% 6.92%
US dollar coupon rate 0.65% 25% 0.81%
Other currency coupon rate 1.02% 25% 1.28%
LIBOR – USD 0.55% 25% 0.68%
LIBOR Other currencies 0.17% 25% 0.21%
Currencies 2.2025 25% 2.7531

Scenario Il – Remote (* Scenario comprising a 50% shock to the market interest rate curve values (disclosed by BM8FBOVESPA), and in the closing prices (US dollar and equity), as in the following

example:

Market rate New market rate
Curve (1 year) Shock (1 year)
Fixed interest rale (PRE] 10.31% 50% 16.35%
General Market Price index (IGPM) 5.47% 50% 8.21%
Price index (IPCA) 4.85% 50% 7.29%
Long-term interest rate (TJLP) 5.54% 50% 8.31%
US dollar coupon rate 0.65% 50% 0.97%
Other currency coupon rate 1.02% 50% 1.53%
LIBOR – USD 0.55% 50% 0.82%
LIBOR Other currencies 0.17% 50% 0.26%
Currencies 2.2025 50% 3.3038

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

Capital management is an important process used by the Institution to optimize the use of capital and to achieve its strategic objectives. The ongoing enhancement of credit, market,
liquidity and operational risk management and control is essential to providing stability in financial results and to improving capital allocation.

In accordance with BACEN Resolution 3988/11, capital management is defined as an ongoing process for:
– Capital monitoring and control carried out by the Institution

. Assessing the need for capital to address the risks to which the Institution is subject

. Planning targets and capital requirements, based on the Institution’s strategic objectives

Capital policies and strategies are based on a forward-looking approach, anticipating the need for capital as a result of possible changes in market conditions and are reviewed
periodically by the Executive Board and Board of Directors, to ensure that they are compatible with the Institution’s strategic planning.

Financial institutions are required to permanently maintain their Required Regulatory Capital (PRE) compatible with the risks of their activities. PRE is calculated considering, at least,
the sum of the different portions of credit, market and operational risk.

In March 2013, BACEN published the rules relating to the definition of capital and regulatory capital requirements, for the purpose of implementing the recommendations (Basel 11!)
issued by the Basel Committee on Banking Supervision (BCBS) in Brazil. The main objectives are as follows: (i) improve the ability of financial institutions to absorb shocks occurring
in the financial system or in other economy sectors; (ii) mitigate the risk of financial sector contagion spreading to the real economy; (iii) assist in maintaining financial stability; and
(iv) foster sustainable economic growth. The application of the new Basel IIl rules commenced on October 1, 2013.

At June 30, 2014, the Institution’s Basel ratio was 13.66% (June 30, 2013 – 16.96%), calculated based on the consolidated financial information.

EX 2014 2013
Basel III(1) Basel Il

Tier | reference equity 1,255,861 1,273,506
1,255,861 1,273,506

Equity 1,269,929 1,258,542
(+) Prudential adjustments (2) (14,068) –
Mark-to-market adjustments – 14,964
Tier Il reference equity 151,759 198,699
Subordinated debt 151,759 213,663
Mark-to-market adjustments – (14,964)
Reference equity (PR) 1,407,620 1,472,205
Risk-weighted assets – RWA (3) 10,303,345 8,679,300
Credit risk 9,336,628 7,844,300
Market risk 779,147 759,473
Operational risk 187,570 75,527
Basel ratio – % 13.66% 16.96%
Tier | capital 12.19% 14.67%
Capital 12.19% 14.67%
Tier Il capital 1.47% 2.29%

(1) From October 2013, reference equity is determined pursuant to CMN Resolution 4192/13 based on the consolidated financial information
(2) Criteria used from October 2013, pursuant to CMN Resolution 4192/13

(3) For comparison purposes, the allocation of minimum required capital for the prior period was adjusted, since the amounts corresponding to “Risk-weighted assets – RWA” are now being disclosed.

Página 39

(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

f) Risk Management Report – Pillar 3

In October 2013, the Central Bank issued Circular No. 3678 which provides for the disclosure of information relating to risk management, the determination of the amount of risk-
weighted assets and the calculation of the Referential Equity (PR). The new circular takes effect from June 2014, when it gets repealed Circular No. 30 3477. The new publication
requirements incorporate the Brazilian regulatory requirements of Pillar 3 of Basel Il and present mainly in Basel III.

The content of our new Risk Management Report – Pillar 3 will be available on the website: www.pine.com/ri days after August 29, 2014

9) Equity to fixed assets ratio
In accordance with BACEN Resolution 2286/96, the equity to fixed assets ratio is limited to 50.0%. At June 30, 2014, the equity to fixed assets ratio was 2.23% (June 30, 2013 –

27. OTHER INFORMATION

a) Law 12973

On May 14, 2014, Provisional Measure 627 was enacted into Law 12973, changing the federal tax legislation regarding corporate income tax (IRPJ), social contribution on net
income (CSLL), social integration program (PIS) and social contribution on revenues (COFINS). Law 12973/14 addresses the following, among other matters:

+ Revocation of the Transitional Tax Regime (RTT), introduced by Law 11941, of May 27, 2009

+ Taxation of corporate entities domiciled in Brazil, related to equity increases resulting from profit sharing earned abroad by associated and subsidiary companies, and income
earned by individuals resident in Brazil through corporate entities controlled abroad.

The Institution does not expect that Law 12973/14 will have any significant accounting effects of the financial statements of Banco Pine and its subsidiaries.

b) Insurance

The Institution’s insurance strategy is based mainly on risk concentration and materiality, and policies are contracted at amounts established by Management, considering the nature
of the business and the advice of its insurance brokers. Insurance coverage at June 30, 2014 is as follows:

49 Type of coverage MTC
Directors and Officers Liability (D£.O) Civil liability for directors and officers 20,000
Vehicles Fire, robbery and collision for 18 vehicles 2,603
Buildings, machines, furniture and fixtures Any material damage to facilities, machinery and equipment 12,000
Bankers insurance Cash 300
Aircraft insurance Aircraft-part guarantees 624

Cc) 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.

Coma]
EE

Expense for leased assets
Machinery and equipment leasing 4.24% 3 452 498
Total 3 452 498

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 period.

SI

LIE E

Assets

Short-term interbank investments) 1,145,732 1,145,732
Loan operations (i) 5,574,572 5,590,219
Other receivables(i) 849,747 848,377
Total financial assets 7,570,051 7,584,328
Liabilities

Demand deposits (ii) 40,778 40,778
Interbank deposits (ii) 79,729 79,729
Time deposits (iv) 3,009,313 3,009,444
Funds from acceptance and issuance of securities (iv) 1,624,973 1,626,747
Borrowings and onlendings (iv) 2,608,561 2,595,134
Subordinated debt (iv) 343,875 342,048
Total financial líabilities 7,707,229 7,693,880

Página 40

ql
(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 SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(ln thousands of reais, unless otherwise stated)

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 value.
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.

e) Covenants

The Institution has credit lines with certain multilateral agencies which guarantee its loan operations. At June 30, 2014, Banco Pine was in compliance with the related performance
indices.

1) Disclosure of other services rendered by the independent auditors

In compliance with CVM Instruction 381, of January 14, 2003, for the period from January to June 2014, no services were contracted from the independent auditor other than those
related to the external audit. Banco Pine’s policy is to limit the services provided by its independent auditor to safeguard the auditor’s independence and objectivity in conformity with
Brazilian and international regulations.

Página 41

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=58080d23c74c7b94a22599e57a6fdc54VFdwQmVFNUVRVFJOUkVFMFRtcGpORTlSUFQwPQ==&secuencia=-1&t=1682366909