PINE
Av. das Nacóes Unidas 8.501/ 30% andar, Sáo Paulo, SP
BM€FBOVESPA: PINE4
www.pine.com/ ir
PINE
Earnings Release – 3Q14 (BR GAAP)
PINE REGISTERS RECURRING NET INCOME OF R$21 MILLION IN THE QUARTER, WITH CONSISTENT REVENUE
GENERATION AND INCREASED NET INTEREST MARGIN
Sáo Paulo, November 11, 2014 – Pine (BM€FBOVESPA: PINE4), a wholesale bank focused on establishing and maintaining long-term
relationships with corporate clients and investors, announces today its consolidated results for the third quarter of 2014 (3Q14).
9M13 9mi4
Treasury
Treasury
1.2% 4.0%
FICC FiCC Corporate
29.2% Corporate 21.1% Credit
Credit 71.3%
63.3%
PINE
Investimentos
PRE 3.6%
Investimentos
6.3%
3Q14 2014
In October, Standard € Poor’s reaffirmed Pine’s ratings based on ¡ts Earnings and Profitability
“strong risk position reflected in ¡ts strong asset quality and Recurring* Net income (R$ million) 21 35 40
conservative management”, besides ¡ts “adequate liquidity, and Net income (R$ millon) 19 35 40
ing5 y Y y
adequate capital and earnings”. In April, the same Rating agency Recurring? Annualized ROAE 69% 113% 134%
a Annualized ROAE 6.0% 116% 13.4%
downgraded many Brazilian banks.
. . . . . Recurring* Annualized ROAAw! 0.9% 1.5% 2.0%
Fitch has also reaffirmed Pine’s ratings, which “reflects the
. . . . Annualized ROAAw* 0.8% 1.5% 2.0%
satisfactory credit profile of the Bank and lts good performance Recurring* Annualized financial margin before provisior 4.5% 4.0% 5.1%
over the last years amid a deteriorated and relatively volatile Annualized financial margin before provision 4.3% 4.1% 5.7%
operational environment”.
Positive contributions from all business lines in the 9M14: 71.3% Balance Sheet (R$ million)
from Corporate Credit, 21.1% from FICC, 4.0% from Treasury, and Total assets 10,885 10,683 10,508
3.6%from Pine Investimentos. Loan portfolio? 9,800 10,032 9,537
Liquid balance sheet, with cash position of R$2.1 billion, equivalent Risk weighted assets 9,526 9,337 8,386
to 58%of time deposits. Deposits* 3,684 4,061 3,477
Positive liquidity gap over the past years, with 13 months for credit Funding 8,638 8,559 7,894
: Shareholders’ equit 1,273 1,270 1,264
versus 16 months for funding. quiEy
Execution of the third transaction of the Pine-DEG partnership, . . .
li 6625 mill ¡th a twel e 4 Credit portfolio quality
totaling US$25 million with a twelve-year term, for a company in Non performing loans – 90 days 0.1% 0.2% 0.1%
the Infrastructure sector, Credit coverage index 2.1% 2.4% 3.2%
16″ largest bank in derivative transactions and the 2” largest in D-H Portfolio 4.2% 5.8% 6.8%
commodity derivatives segment according to CETIP – OTC Clearing
House. Performance
13′ largest bank offering credit to large companies, moving up two BiSratio 13.8% 137% 15.9%
positions, vis-á-vis 2013, according to the “Melhores e Maiores” Recurring? Efficiency ratio 35.4% 37.1% 35.0%
ranking compiled by Exame magazine. Efficiency ratio 36.9% 36.8% 35.0%
Recurring? Earnings per share (R$) 0.18 0.29 0.37
Earnings per share (R$) 0.16 0.30 0.37
Book value per share* (R$) 10.71 10.73 11.61
Market Cap (R$ million) 924 890 977
Risk weighted assets. “Includes Standby LC, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares). “Includes Agribusiness and Real Estate Letters of Credit. “It considers
18,903,884 shares for 3Q14, 118,372,603 shares for 2Q14 and 108,924, 268 shares for 3Q13. *Reconciliation of results due to funding hedges in the gros amount of R$4.7 million and R$2.8 million net in 3Q14, gross amount of
R$1.6 million and R$0.9 million net in 2Q14. Considers the reclassification of FIDC expenses pursuant to Circular Letter n3,658 from Central Bank.
Investor Relations +55 11 3372-5343 [Raquel Varela
Alejandra Hidalgo
Luiz Maximo
Ana Carolina Lopes
PINE
Business 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 and alternative financial solutions. 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.
The 9M14 was another period of positive revenue contribution in all business lines. Given the scenario and the conservatism
of the Bank, the main dimensions of balance sheet performed as expected, although bottom line was impacted by the
substantial increase in provisions.
The less aggressive approach reflects management ‘s actions in light of a macroeconomic scenario with low visibility, and
temporarily affects profitability indicators. In the short term, management is taking initiatives to bring more efficiency to
the balance sheet, while keeping the bank prepared for a clearer scenario.
Financial Margin
In 3014, recurring income from financial intermediation before provisions for loan losses totaled R$101 million, with
recurring net interest margin (NIM) before provisions at 4.5%
The recurring financial margin before provision for loan losses presented a recovery when compared to 2Q14. This
improvement is explained by the systematic reduction of fundings costs, marginal improvements in origination spreads and
loan recoveries.
Strictly following its governance in credit risk modeling and maintaining the active management of the portfolio, Pine revised
the ratings of some clients, reclassifying part of its portfolio in 3Q14.
In addition, the Bank sold some distressed transactions (ratings G-H). This generated a reversal of R$36 million in the line of
provision for loan losses, and an expense in the amount of R$46 million in the line of other operating expenses.
The sum of all these initiatives generated an impact in provision expenses, as follows:
R$ thousand
Re-rating – Resolution 2682 (13,868)
Reversal of Provisions – Loan Assignment 35,957
Provisions for Loan Losses 22,089
Although the line “Provisions for Loan Losses” posts a positive impact due to the reasons previously explained, the economic
impact in the 3Q14 results is demonstrated below:
R$ thousand
Re-rating – Resolution 2682 (13,868)
Other Expenses (23,660)
Total (37,528)
The Financial Margin composition is follows below:
PINE
R$ million
3Q14 ga EJE 9mM14 9M13
Recurring Financial Margin
Income from financial intermediation 92 9 12 297 300
Overhedge effect 4 (3) a) (2) 3
Liabilities hedge effect 5 2 – Mm –
Recurring Income from financial intermediation (A) 101 9 11 294 303
Provision for loan losses 22 (14) (34) (4) (77)
Recurring Income from financial intermediation after provision (B) 123 78 77 290 226
Average earning assets (C ) 9,157 9,336 7,956 9,011 8,036
Interbank investments 1,337 1,247 770 1,099 638
Securities and derivatives* 1,349 1,543 1,5517 1,534 1,952
Credit transactions 6,471 6,546 5,669 6,378 5,446
Recurring Annualized Financial Margin before provision (% (A/C) 4.5% 4.0% 5.1% 4.4% 5.1%
Recurring Annualized Financial Margin after provision (9% (B/C) 5.5% 3.4% 3.9% 4.3% 3.8%
Financial Margin?
Annualized Financial Margin before provision (%) 4.3% 4.1% 5.7% 4.4% 5.1%
Annualized Financial Margin after provision (9%) 5.3% 3.5% 3.9% 4.3% 3.8%
Y Excludes repo transactions and the liability portion of derivatives.
2 Considers the impact of PINE17 and Huaso Bond hedge transactions.
Considers the reclassification of FIDC expenses pursuant to Circular Letter n%3,658 from Central Bank.
Fee Income
Fee income reached R$26 million in the third quarter of 2014, an increase of 8.3%when compared to 2Q14.
R$ million
3014 yop 3013 9M14 ELE]
Bank 21 19 26 59 68
PINE Investimentos 5 4 7 11 24
Total 26 24 33 70 92
Personnel and Administrative Expenses
In 9M14, personnel and administrative expenses reached R$138 million. During the third quarter, non-recurring expenses in
the amount of R$4 million negatively impacted the line. These expenses are related to organizational restructuring and
liability management.
At the end of September, Pine had 431 employees, including outsourced ones.
R$ million
3014 2Q14 3013 ES ELE
Personnel expenses 24 22 23 70 67
Other administrative expenses 22 20 24 68 69
Subtotal 46 42 47 138 136
Non-recurring expenses (4) (1 (1) (9) (4)
Total 42 41 46 129 132
Efficiency Ratio
The recurring efficiency ratio ended the 3Q14 at 35.4% an improvement of 170 bps over 2Q14.
R$ million
3Q14 PET] 3Q13 Ena 9M13
Operating expenses! 49 45 51 146 147
(-) Non-recurring expenses (4) (1) (1) (9) (4)
Recurring Operating Expenses (A) 45 43 50 137 143
Recurring Revenues? (B) 127 116 143 365 395
Recurring Efficiency Ratio (A/B) 35.4% 37.1% 35.0% 37.5% 36.2%
“Other administrative expenses +tax expenses + personnel expenses
2Gross Income from financial intermediation – provision for loan losses +fee income +overhedge effect – hedge impact
Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank.
Corporate Credit
PINE
The expanded loan portfolio totaled R$9,800 million on September 30, 2014, representing a contraction of 2.3% when
compared to J une 2014, and an increase of 2.8%over the same period of the last year.
R$ million
CTE IS Sept-13 Q0Q DS
Working capital? 4,731 4,904 4,509 -3.5% 4.9%
BNDES Onlending 1,248 1,071 990 16.5% 26.1%
Trade finance ? 924 1,116 965 -17.2% -4.2%
Bank guarantees 2,896 2,941 3,073 -1.5% -5.8%
Expanded Loan Portfolio 9,800 10,032 9,537 -2.3% 2.8%
“includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutio ns with recourse and individuals
2 Includes Stand byLC
Loan Portfolio Breakdown
Sept-14 Sept-13
Working Working
Capital Capital
48.3% 47.3%
Trade
Trade finance
finance 10.1%
9.4%
Onlending “
12.7% Bank Onening Bank
Cuarantees Guarantees
e 32.2%
Active Management of the Loan Portfolio
Pine continued to actively manage the allocation of capital in sectors that offer greater comparative advantage.
The composition of the portfolio of the 20 largest clients changed by over 25% compared to the past twelve months. This
demonstrates the liquidity and flexibility of the Bank’s operation. The share-of-wallet of the 20 largest clients remained
below 30%
Others
Foodindustry 10%
2%
Construction Material
2%
Sugar and Ethanol
14%
Retail
2%
ForeignTrade
Meatpacking
2%
Metallurgy
2%
Specialized Services.
3%
Chemicals
4%
Vehicles and Parts _-
4%
Telecom,
4%
Transportation and
Logistics
0%
Energy
Infrastructure 9%
8%
Rebalance
Electric and Renewable
Sugar and Ethanol
Construction
Agriculture
mElectric and
Renewable Energy
Infrastructure
Agriculture
11% Transportation and
42% 41% 41% 40% Logistics
Others
Mar-12 Sept-12 Sept-13 Sept-14
PINE
Loan Portfolio Profile and Quality
Loan Quality and Provision for Loan Losses – Resolution 2,682
Sept-14 Jun-14
TS lo % provision TS lo % provision
AA – 782 782 12.3% – AA – 1,061 1,061 16.2% –
A – 1,976 1,976 31.0% 10 A – 1,991 1,991 30.3% 10
B 0 2,314 2,314 36.3% 23 B 0 2,284 2,284 34.8% 23
Cc 51 981 1,032 16.2% 31 Cc 1 850 851 13.0% 26
D 0 147 147 2.3% 15 D 10 236 246 3.7% 25
E 6 63 69 1.1% 21 E 0 36 36 0.6% 11
F 0 37 37 0.6% 18 F 0 27 27 0.4% 13
G 0 12 13 0.2% 9 G 11 52 63 1.0% 44
H 2 3 5 0.1% 5 H 3 5 8 0.1% 8
Total 59 6,315 6,374 100.0% 132 Total 25 6,542 6,567 100.0% 159
Required provision according to the transaction rating: AA: 0% A: 0.5% B: 1% C: 3% D: 10% E: 30% F: 50% G: 70% H: 100%
Loan Portfolio by Risk – Resolution 2,682
Sept-14 un-14
a
D-H
4.2% 50% Ma
AA-C AA-C
95.8′ 94.2%
Loan Portfolio Coverage Ratios
In September 2014, the D-H portfolio improved to 4.2% of the total loan portfolio. As a result of this portfolio profile, the
coverage ratio reached 2.1%in 3Q14.
1,628%
679%
308%
6.2% 5.8%
4.2%
Mar-14 Jun-14 Sept-14
ma D-H Portfolio Coverage of Total Portfolio –=-=Coverage of D-H Overdue Portfolio
1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,682
2Covegare of Total Portfolio: Provisions/ Loan Portfolio Res. 2,682
“Coverage of D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio
PINE
Non-Performing Loans > 90 days (Overdue Installments)
%.of loan portfolio*
The NPL ratio of installments overdue more than 90 days ended the period at 0.1% compared to 0.2%in J une 2014.
0.6% 0.6% 0.6% 0.6%
0.4%
0.1% 0.1% 0.2% 0.1%
Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14
Non-Performing Loans > 90 days (Total Contract)
%of loan portfolio!
Considering the total contract, the ratio of more than 90 days remained stable at 0.3%when compared to J une 2014.
1.2% 1.2%
1.1%
0.8%
0.3% 0.3%
Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14
Includes debentures, CRls, Hedge Fund, and Eurobonds and excludes Bank Guarantees and Stand by Letters of Credit.
FICC
Pine’s FICC business provides risk management products and hedging solutions to help clients manage the risks on their
balance sheets. The key markets in this business line are Fixed Income, Currencies, and Commodities. Pine offers its clients
the main derivative instruments, which include non-deliverable forwards (NDFs), swaps and some options-based structures.
The total notional value of the derivatives portfolio for clients totaled R$8.4 billion, with an average duration of 163 days at
the end of September.
Despite the decrease in the notional amount, the greater volatility in the period allowed the steady revenue generation in
this business line.
Client Notional Derivatives by Market Notional Amount and Counterparty Credit Risk
(MtM)
Notional Amount
o MEM
= =- Stressed MtM
Currencies
78%
530 482
327 354 288
Fixed Income (47)
6% (195) e
243
= (310) a ) e
= — – 7
> 5324
Commodities 4
16% 11,090 11,148 11,268 14,382 8,376
Sept-13 Dec-13 Mar-14 Jun-14 Sept-14
A PINE
The R$288 million counterparty risk exposure (Mark to Market) considers the net value of Pine’s payables and receivables.
Thus, in September 2014, Pine would receive R$392 million from its counterparties and pay R$103 million.
Based on the stress test performed on the derivatives portfolio with clients, under an extremely negative scenario consisting
of the U.S. dollar strengthening by 31% against the Brazilian Real to reach R$3.22/ USD, and commodity prices falling by 30%
the potential Mark to Market in the portfolio would have been R$47 million payable.
Additionally, Pine hedges the portfolio in Exchanges and with Bank counterparties, with daily MtM settlement. This, coupled
with the portfolios’ short duration, assures the maintenance of liquidity levels according to policy.
According to the ranking compiled by CETIP – OTC Clearing House in September 2014, Pine is the 16′ largest bank in
derivatives transactions for clients, and maintains the 2″* position in commodity derivatives.
Pine Investimentos
Pine Investimentos, the Bank’s Investment Banking unit, works closely with ¡ts clients to offer customized and unique
solutions in Capital Markets, Financial Advisory, and Project € Structured Finance areas.
During the 9M14, Pine Investimentos participated in the underwriting of approximately R$1.7 billion in fixed income, in both
local and international markets. Furthermore, Pine provided advisory services to its clients on the structuring of R$0.9 billion
in M6A and project finance transactions in the same period.
Funding
Total funding reached R$8, 638 million in September 2014, growth of 0.9%over the last quarter and 9.4%in twelve months.
Given the high liquidity of the balance sheet – with over R$2 billion in cash – and the constant and active liability
management, Pine has reduced its funding costs. Over the 9M14, the Bank has carried out the following initiatives:
= Partial pre-payment of the Huaso Bond, around US$32 million or approximately 54%of the issuance, in J uly;
= Partial repurchase of the PINE17 bond, around US$25 million, or 20%of the total issuance;
= R$230 million Financial Bill issuance, with a two-year term, at the end of J uly;
= Increase in deposits of individuals through the distribution of Agribusiness and Real Estate Letters of Credit
for the private banking market. These letters of credit offer attractive cost and term.
= Non-renewal of some deposits, especially institutional ones, reflecting the pricing policy of funding adopted
by the Bank in a high liquidity scenario.
In twelve months, external funding growth resulted from several transactions: US$115 million through an A/B loan
transaction, with a five-year term, US$100 million syndicated loan, with a two-year term, US$20 million through a Senior
Unsecured Term Loan, with a ten-year term, and US$50 million through Pine’s third Islamic format issuance, with a one-year
term.
In the international market, Pine has around 70 correspondent banks in various countries, including development banks such
as DEG and Proparco, and multilateral agencies, including the IFC, IDB, and FMO.
PINE
R$ million
Sept-14 Q0Q DA
Local Funding 5,285 5,163 4,888 2.4% 8.1%
Demand deposits 30 41 20 -26.8% 50.0%
Interbank deposits 98 80 93 22.5% 5.4%
Time deposits +LCA +LCI 3,557 3,940 3,364 -9.7% 5.1%
Individuals * 920 908 373 1.3% 146.6%
Companies 731 761 1,048 -3.9% -30.2%
Institutionals 1,905 2,2711 1,943 -16.1% -2.0%
Capital Markets 1,601 1,102 1,411 45.3% 13.5%
Onlendings +Trade Finance 2,110 2,150 2,072 xx1.9% 1.8%
Onlendings 1,292 1,086 1,099 19.0% 17.6%
Trade finance 819 1,064 973 -23.0% -15.8%
International Funding 1,242 1,246 935 -0.3% 32.8%
Capital Markets 323 427 437 -24.4% -26.1%
Multilaterals 388 346 69 12.1% 462.3%
Other private placements and syndicated
loans 531 473 429 12.3% 23.8%
Total 8,638 8,559 7,894 0.9% 9.4%
* Includes securities distributed to individuals through other institutions.
Asset and Liability Management
In accordance with Pine’s asset and liability management, funding sources are aligned in terms of maturity and cost with
their respective credit transactions. While the weighted average maturity of the loan portfolio is 13 months, the funding
period is 16 months, ensuring a comfortable situation for the Bank.
Matching of Credit and Funding Breakdown
R$ Million R$ Billion
8,817 8,964
credit 8,391 8,422 8,638
7,512 Cash
Funding
6,528 IM Deposits
5,140
3,868 Working Capital
ortang Copla! 1 Domestic Capital Markets
2,395
International Funding
– 20 Onlending m mOnlending
No maturity- Upto3 Upto12 Upto3 years Upto’5 years – Total Trade Finance ImTrade Finance
months months
(includes Credit + Cash Funding
Cash)
PINE
Capital Structure
In the quarter, the capital adequacy ratio (BIS) reached 13.8% above the regulatory minimum level of 11% The Tier | capital
represented 12.4% while Tier Il represented 1.4% Over the last twelve months, the ratio change is mainly due to the
reduction in the amount of subordinated debt allowed for Tier Il capital composition.
R$ million
COS INES Sept-13
Reference Equity 1,413 1,408 1,476
Tier | 1,273 1,256 1,276
Tier | – BISRatio % 12.4% 12.2% 13.7%
Tier 11 140 152 200
Tier 11 – BISRatio % 1.4% 1.5% 2.2%
Required Reference Equity 929 937 1,024
Credit Risk 866 849 922
Market Risk 50 71 84
Operational Risk 14 17 18
Excess of Reference Equity 484 471 452
BIS Ratio – % 13.8% 13.7% 15.9%
PINE
About Pine
Pine is a wholesale bank focused on long-term relationships with corporate clients and investors. The bank offers Credit,
including Working Capital, Onlending lines from BNDES and Multilateral Organizations, Trade Finance, Bank Guarantees, as
well as hedging products (Fixed Income, Currencies, and Commodities), Capital Markets, Financial Advisory Services, Project
8. Structured Finance.
Corporate Governance
Pine has active corporate governance policies, given ¡ts permanent commitment to shareholders and other stakeholders. In
addition to integrating Level 2 of Corporate Governance of the BME.FBOVESPA, Pine’s practices include:
+ Two independent members and two external members on 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 results in two accounting standards: BR GAAP and IFRS; and
+ Compensation and Audit Committees, which report directly to the Board of Directors.
PINE4
As of October 31, 2014
(AS Preferred hol %|
Controlling Shareholder 65,178,483 17,210,589 82,389,072 68.0%
Management – 7,587,382 7,587,382 6.3%
Free Float – 28,927,430 28,927,430 23.9%
Individuals – 6,684,976 6,684,976 5.5%
Local Institutional Investors – 8,842,613 8,842,613 7.3%
Foreign Investors – 5,713,046 5,713,046 4.7%
DEG – 5,581,714 5,581,714 4.6%
Proparco – 2,105,081 2,105,081 1.7%
SubTotal 65,178,483 53,725,401 118,903, 884 98.1%
Treasury – 2,268,140 2,268,140 1.9%
Total 65,178,483 55,993,541 121,172,024 100%
Interest on Own Capital and Dividends
On October 10, 2014, Pine paid a total of R$16.9 million as interest on own capital, which corresponds to a gross payout per
share of R$0.14. This amount represents a dividend yield of 9.7% Since 2008, Pine distributes proceeds in a quarterly basis.
Ratings
STANDARD – FitchRatings Moodys.com RISKbank
8 POOR’S ATA
h-]
$ E ía Long Term 8B+ BB+ Bal
By?
923
3 1 Short Term B B
Ni] Long Term brAA AA-(bra) Aa2.br
5 10.47
3 Short Term FlxHbra) Br-1
10
PINE
Balance Sheet
R$ million
Sept-14 OS Sept-13
Assets 10,885 10,683 10,508
Cash 71 93 281
Interbank investments 1,529 1,146 870
Securities 2,041 2,164 2,627
Interbank accounts 1 1 6
Lending operations 6,374 6,567 5,855
(-) Provisions for loan losses (132) (159) (190)
Net lending operations 6,243 6,408 5,665
Other receivables 876 752 957
Property and equipments 125 119 101
Investments 105 97 73
Property and equipment in use 19 20 26
Intangible 1 1 2
Liabilities 9,612 9,413 9,243
Deposits 2,744 3,130 2,924
Money market funding 624 470 829
Funds fromacceptance and securities issued 1,960 1,627 1,505
Interbank and Interbranch accounts 9 23 34
Borrowings and onlendings 2,913 2,866 2,478
Derivative financial instruments 165 248 221
Other liabilities 1,120 980 1,182
Deferred Results 78 69 70
Shareholders’ equity 1,273 1,270 1,264
Liabilities and shareholders’ equity 10,885 10,683 10,508
According to Circular Letter n? 3,658 of Central Bank, the FIDC transactions shall be accounted from Borrowings
and Onlendings to the line of Other Liabilities (R$410 million in 3Q14, R$453 million in 2014 and R$455 million in 3Q13).
11
PINE
Accounting Income Statement
R$ million
3Q14 2014 3Q13 9M14 ENTE]
Income from financial interme diation 433 263 298 959 871
Lending transactions 222 194 154 584 405
Securities transactions 78 76 71 245 200
Derivative financial instruments 87 8 33 104 142
Foreign exchange transactions 45 (15) 40 26 124
Expenses with financial intermediation (319) (181) (221) (666) (648)
Funding transactions (208) (145) (146) (488) (439)
Borrowings and onlendings (133) (22) (41) (174) (132)
Provision for loan losses 22 (14) (34) (4) (77)
Gross income from financial intermediation 114 82 7 293 223
Other operating (expenses) income (95) (30) (17) (168) (58)
Fee income 26 24 33 70 92
Personnel expenses (24) (22) (23) (70) (67)
Other administrative expenses (22) (20) (24) (68) (69)
Tax expenses 6) (2) (4) (8) (11)
Other operating income 5 9 6 21 21
Other operating expenses (77) (19) (4) (114) (24)
Operating inc ome 19 52 60 125 165
Non-operating income 4 4 2 16 7
Income before taxes and profit sharing 23 57 62 140 172
Income tax and social contribution 7 (11) (11) (16) (22)
Profit sharing (12) (10) (11) (35) (26)
Netincome 19 35 40 89 124
Considers the reclassification of FIDC expenses pursuant to Circular Letter n? 3,658 of Central Bank. FIDCs expenses shall be
accounted in other administrative expenses. Before, compounded the expenses of borrowings and onlendings transactions, in the
amount of R$13.5 million, R$16.2 million and R$3.0 million respectively in 3Q14, 2Q14 and 3Q13.
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.
12
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=565ba92698cd432741fd5da56a915560VFdwQmVFNUVSWGhOUkVWNVQxUk5NazVuUFQwPQ==&secuencia=-1&t=1682366909
