PINE
Av. das Nacóes Unidas 8,501/ 30% andar, Sáo Paulo, SP PINE
BM€FBOVESPA: PINE4
www.pine.com/ ir
Quarterly Earnings Release – 2Q14 (IFRS)
Sáo Paulo, September 05, 2014 – Pine (BM€FBOVESPA: PINE4), a wholesale bank focused on establishing and maintaining
long-term relationships with corporate clients and investors, announces today ¡ts consolidated results for 2Q14, presented in
IFRS. Key data for the period follows.
R$ million
Loan Portfolio 1 Funding
20.4%
11.7% A
_-
8,960 10,005 7,111 8,559
Jun-13 Jun-14 Jun-13 Jun-14
l Includes Stand by LC, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)
Performance
Pine is a wholesale bank focused on establishing and maintaining long-term relationships with corporate clients and
investors. Its strategy is based on knowing its clients well and understanding their businesses and potential in order to build
customized financial solutions and alternatives. This strategy requires a diverse range of products, highly qualified human
capital and efficient and agile risk management, areas in which the Bank is consistently evolving.
PI0FT] EoETa 2013 NET 1H13
Earnings and Profitability
Net Income (R$ million) 36 26 34 62 80
ROAE 11.8% 8.5% 11.1% 10.0% 13.1%
Balance Sheet (R$ million)
Total assets 10,639 10,686 9,936 10,639 9,936
Loan portfolio? 10,005 10,056 8,960 10,005 8,960
Deposits? 4,061 4,099 3,581 4,061 3,581
Funding 8,559 8,797 7,1111 8,559 7,1111
Shareholders’ equit y 1,266 1,269 1,276 1,266 1,276
Performance
Earnings per share (R$) 0.30 0.22 0.31 0.53 0.73
Book value per share? (R$) 10.70 10.49 11.65 10.70 11.65
+ Includes Standby LC, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares).
2 Includes Agribusiness and Real Estate Letters of Credit.
3 It considers 18,372,603 shares for 2Q14, 121047,768 shares for 104 and 109,546,164 shares for 2Q18
Investor Relations +55 11 3372-5343 |Raquel Varela
Alejandra Hidalgo
Luiz Maximo
Ana Carolina Lopes
PINE
Shareholders’ Equity and Net Income
Shareholders’ Equity Reconciliation – BR GAAP vs. IFRS
R$ million
Note IIS IES Jun-13
Shareholders’ equity – BR GAAP 1,270 1,271 1,259
Impairment a 28 30 58
Deferral of banking fees and commissions by the effective
interest rate method xx 29) 62 es
Hedge accounting f (3) (0) –
Income tax and social contribution on IFRS adjust ments e 0 1 (12)
Shareholders’ equity – IFRS 1,266 1,269 1,276
Net Income Reconciliation – BR GAAP vs. IFRS
R$ million
LN pLoJos 1014 2013 1H14 1H13
Net Income – BR GAAP 35 35 39 70 84
Impair ment a (2) (12) (9) (14) (9)
Deferral of bank fees and commissions under the effective
b 2 1 1 3 (11)
interest rate method
Hedge accounting f 0 0 0 0 1
Transfer of category in securities g (0) (2) – (2) 8
Income tax and social contribution on IFRS adjustments e (0) 5 3 4 8
Net Income – IFRS 36 26 34 62 80
a. Impairment
Under IFRS, based on the guidance in IAS 39 “Financial Instruments: Recognition and Measurement”, the Institution estimates the allowance
for loan losses based on its historical impairment and other circumstances known at the time of assessment. These criteria differ in certain
aspects from the criteria under BRGAAP, which uses certain regulatory limits defined by the Brazilian Central Bank to calculate the
allowance for loan losses.
b. Deferral of bank fees and commissions by the effective interest rate method
Under IFRS, in accordance with IAS 39 “Financial instruments: Recognition and Measurement”, inherent bank charges, commissions and
financial costs that are included in the effective interest rate of financial instruments calculated at a amortized cost are recognized in
income during the period that the respective contracts are in effect. Under BRGAAP, these fees and expenses are recognized directly in
income when received or paid.
c. Transactions for the sale or transfer of financial assets
The Institution wrote off assets related to credit assignments with substantial retention of risks and rewards from January 1, 2004 and, in
accordance with IFRS 1 requirements, the assets transferred with retention of risks and rewards were recomposed and recorded, and the
liabilities related to the co-obligations in the credit assignments were recorded on the IFRS transition date, and subsequently. Revenues
(expenses) recorded at the time of the credit assignments are recognized in income during the effective period of the respective
agreements.
d. Write-off of investment stated at cost
On the date of transition, the Institution wrote off investments stated at cost, previously recorded in assets, as they did not meet the
requirements for recognition
of assets under IFRS.
e. Income tax and Social Contribution on IFRS Adjustments
In accordance with AS 12, deferred income tax and social contribution on taxable, or deductible, temporary differences must be recorded.
Adjustments to deferred income tax and social contribution, calculated on IFRS adjustments, were reflected in the reconciliation.
f. Hedge accounting
Pursuant to IAS 39, on discontinuance of hedge accounting for cash flows, the cumulative gain or loss resulting from the hedging instrument,
that remains recognized as comprehensive income from the period when the hedge was in force, shall remain separately recognized in
Equity until the hedged item is settled.
g. Transfer of category in securities
lAS 39 prohibits the reclassification of financial instruments between categories, accordingly, the financial assets available for sale may not
be reclassified to other categories or vice-versa.
PINE
Balance Sheet
R$ million
Jun-14 Mar-14 Jun-13
Assets 10,639 10,686 9,936
Cash and cash equivalents 1,199 1,349 491
Financial assets designated at fair value 2,175 2,173 2,988
Financial assets held for trading 1,588 1,468 2,389
Debt instruments 1,032 874 1,915
Equity instruments 4 6 7
Derivatives 552 588 466
Available -for-sale financial assets 588 705 599
Debt and Capital instruments 588 705 599
Available -for-sale financial assets 6,448 6,389 5,608
Loans and receivables 6,448 6,389 5,608
Loans and advances to financial institutions 40 53 298
Loans and advances to clients 6,407 6,335 5,310
Other Assets 586 585 668
Tax credits 112 81 87
Fixed assets 97 88 66
Property and equipment 20 20 27
Intangible assets 1 1 2
Liabilities 9,373 9,416 8,660
Financial liabilities held for trading 248 143 274
Derivatives 248 143 274
Financial liabilities at amortized cost 8,963 9,141 8,206
Deposits from credit institutions 80 76 110
Deposits from clients 3,981 4,023 3,471
Money market funding 470 379 1,245
Securities issued abroad 692 1,037 881
Borrowings and onlending 3,332 3,211 2,100
Other financial liabilities 69 74 60
Subordinated debt 339 340 337
Provisions 31 24 7
Tax liabilities 36 1 2
Other liabilities 94 108 102
Shareholders’ equity 1,266 1,269 1,276
Liabilities and Shareholders’ equity 10,639 10,686 9,936
PINE
Consolidated Income Statement
R$ million
2014 plop ES 2013 1H14 1H13
Interest and similar income 224 219 180 443 321
Interest and similar expenses (378) (180) (132) (559) (248)
NET INTEREST INCOME (154) 39 48 (115) 73
Gains/ (losses) with financial assets and liabilities (net) 242 55 23 297 114
Financial assets and liabilities held for trading 44 42 27 85 114
Derivatives 24 12 40 36 104
Debt instrument 17 23 (13) 39 10
Equity instrument 3 7 – 10 –
Exchange variations (net) 199 13 (4) 212 –
Fee and commission income 20 12 23 33 33
Fee and commission expenses (2) (2) (1) (4) (3)
TOTAL INCOME 107 104 92 210 216
Administrative expenses (51) (62) (50) (113) (103)
Personnel expenses (32) (37) (29) (69) (59)
Tax expenses (2) (3) (4) (5) (7)
Other administrative expenses (17) (22) (17) (39) (37)
Other operations income (expenses) 2 (0) 4 2 5
Depreciation and amortization (1) (1) (2) (2) (3)
Provisions (net) 7 6 10 13 12
Losses on financial assets (impairment) (19) (20) (32) (39) (40)
Loans and receivables (19) (20) (32) (39) (42)
Debt instrument – – – – 2
Gain on sale of non-recurring assets 4 6 1 9 2
OPERATING INCOME BEFORE TAXES 48 33 23 80 89
Income tax (12) (6) 11 (18) (9)
CONSOLIDATED NET INCOME 36 26 34 62 80
This report is a free translation from the Portuguese version. In case of any divergence, discrepancy or difference between this version and
the Portuguese version, the Portuguese version shall prevail. This report may contain forward-looking statements concerning the business
prospects, projections of operating and financial results and growth outlook of Pine. These are merely projections and as such are based
solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions,
the performance of the sector and the Brazilian economy (political and economic changes, volatility in interest and exchange rates,
technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax legislation)
and therefore are subject to change without prior notice.
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