PINE
Av. das Nacóes Unidas 8.501/ 30% andar, Sáo Paulo, SP PINE
BM€FBOVESPA: PINE4
www.pine.comj/ ri
Earnings Release – 4Q14 (BR GAAP)
Sáo Paulo, February 09, 2015 – Pine (BMG: 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 fourth quarter of 2014 (4014).
Dear Shareholders,
2014 was another year of important achievements and strong consistency in all business lines.
Based on a conservative and consistent strategy, we reduced throughout 2014 our growth projections and worked even
more rigidly and prudently in granting loans. We have prioritized the quality of the transactions and the increase in
real collaterals in order to preserve the liquidity and solidity of our operations, in a period marked by political and
economic uncertainties.
With this strategy we maintained our expanded loan portfolio mostly stable, increasing significantly the quality of
loans, up to the point in which 95.0% of our transactions were rated between AA and C, by December. We sacrificed
short-term profitability in order to further strengthen our balance sheet and to increase liquidity, anticipating a
scenario of economic contraction. Over the past three years, we have invested in our risk models in order to make our
provisions even more conservative and to protect our shareholders” equity.
Besides the improvement in the quality of the loan portfolio, this strategy also enabled the expansion of the positive
liquidity gap for four months, with 12 months for credit and 16 months for funding; the increase of 50 bps in Tier | BIS
ratio, with total capital reaching 13.9% – 26.4% above the minimum required by the Brazilian Central Bank; highly
liquid balance sheet with more than R$1.6 billion in cash representing 48% of time deposits; and strengthening of
provisions, further increasing the loan portfolio coverage ratio to around 3.0%
Also in accordance with our strategy, we reduced approximately 360 bps of the CDI rate in the cost of total funding in
the last 12 months, through syndicated loans in foreign currency, Financial Bill issuances, Agribusiness and Real Estate
Letters of Credit and prepayment/ repurchase of our own bonds.
In 2015, the year that Banco PINE will complete 18 years, the conservative approach in conducting business will
continue guiding our management with the clear objective of capital preservation and with a perennial growth
strategy built on solid foundations, with continuous investments in the range of products and in human capital.
Today we are among the 13 largest banks offering credit to large companies and the 6’” largest Brazilian controlled
private bank (according to the “Melhores e Maiores” ranking compiled by Exame magazine), the 16’” largest bank in
derivative transactions and the 2″* largest in commodity derivatives, according to CETIP – OTC Clearing House. Once
again we ranked among the first positions in the Top 5 ranking of the Central Bank, being one of the most consistent
institutions in their projections in 2014.
2015 is going to be another year full of challenges and we are confident in our strategy and in our solid foundations to
continue to expand our franchise, maintaining the adequate balance between risk and return. We will continue to
invest in our team and in the complete service to our clients, increasing the portfolio of products and services and
maintaining a very close relationship with each one of them.
Executive Committee
Investor Relations +55 11 3372-5343 |Raquel Varela
Luiz Maximo
Ana Carolina Lopes
Gabriel Netto
Highlights of the period:
A PINE
Liquid balance sheet, with a cash position of R$1.6 CAMERA TREO
Earnings and Profital
billion, equivalent to 48%of time deposits. Recurring* Net income (RS million) 8 21 37 97 162
. er , Lar . Net income (R$ million) 5 19 37 94 162
Increase In the positive liquidity gap, with 12 Recurring* Annualized ROAE 2.5% 6.9% 12.2% 7.6% 13.0%
months for credit versus 16 months for funding. Annualized ROAE 17% 60% 12.2% 75% 13.0%
Recurring* Annualized ROAAw! 0.3% 0.9% 1.7% 1.0% 1.9%
Diversified revenues with positive contributions from Amuaized ROAAw! 0.2% 0.8% 171% 10% 19%
. . . Recurring* Annualized financial margin 4,2% 45% 44% 4.3% 4.8%
all business lines: 74.4% from Corporate Credit, nmvaized financial margin 41% 43% 44% 43% 48%
19.4% from FICC, 3.3% from Pine Investimentos and
Balance Sheet (R$ million)
2.9% from Treasury. Total assets 10,447 10,885 10,545 10,447 10,545
. ÓN Loan portfolio? 9,826 9,800 9,930 9,826 9,930
Active and constant liability management that led to sk melghted assets 9,553 9,526 9312 9553 9312
a reduction of 360 bps of the CDI rate in the average peros a JO A 2 a
unding , , , , ,
cost of funding, in the past 12 months. Shareholders’ equity 1,256 1,273 11272 1256 1,7272
Increase of 50 bps in Tier | Capital, reaching 13.9% – cregitportrotio quality
of total capital, 26.4% higher than the minimum A e pe m0 Sa 0
redit coverage index . 1.9
required by the Brazilian Central Bank. D-H Portfolio 5.0% 4.2% 5.8% 5.0% 5.8%
Execution of two transactions of the Pine-DEG Performance
partnership, totaling US$43 million in 2014. aro po ma A A
BiSratio – Tier | 12.5% 12.4% 12.0% 12.5% 12.0%
16 largest bank in derivative transactions and the Recurring Efficiency ratio 42.2% 35.4% 46.6% 38.1% 38.4%
Efficiency ratio 42.2% 36.9% 46.6% 38.7% 38.4%
a : . o :
2″ largest in commodity derivatives according to Recurring* Earnings per share (R$) 0.07 0.18 0.34 0.81 148
CETIP _ OTC Clearing House. Earnings per share (R$) 0.04 0.16 0.34 0.79 1.48
Book value per share* (R$) 10.57 10.71 11.68 10.57 11.68
Market Cap (R$ million) 765 924 1,147 765 1,147
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
18,835,373 shares for 4Q14, 18,903,884 shares for 3Q14 and 108,924,268 shares for 4Q13. “Reconciliation of results due to funding hedges and provision of Bank Guarantees portfolio. Considers the reclassification of FIDC
expenses pursuant to Circular Letter n%3,658 from Central Bank.
PINE
Pine
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.
Revenue Breakdown
All business lines contributed positively over the last two years, as shown on the graphs below. The increased risk aversion in
Treasury and FICC business, in addition to a less favorable market for investment banking activities led to a greater
participation of credit revenues.
2013 2014
Treasury Treasury
3.7% 2.9%
Pine Pine
Investimentos Investimentos
5.5% 3.3%
Corporate FICC
Credit 19.4% Cor
porate
62.9% Credit
74.4%
FICC
27.9%
Financial Margin
Recurring income from financial intermediation totaled R$389 million, with NIM at 4.3% within the guidance range of 4.0%to
5.0%
Year on year, the lower margin is mainly explained by the mix of the portfolio, by an average cash position 16.1%higher than
the average of 2013 and also by increased risk aversion in both Treasury and FICC.
In 4014, recurring income from financial intermediation totaled R$94 million, with recurring net interest margin (NIM) at
4.2% This Q0Q reduction is mainly explained by the lower flow of transactions in the FICC business, by an average cash
position 7.5% higher than the 3Q14 position, and also by the mark to market of private securities that compose the expanded
loan portfolio.
R$ million
4Q14 3Q14 4013 PES 2013
Recurring Financial Margin
Income fromfinancial intermediation 83 92 90 380 390
Overhedge effect 10 4 3 9 6
Liabilities hedge effect 1 5 – (0)
Recurring Income from financial intermediation 94 101 93 389 396
Average earning assets 9,141 9,157 8,584 8,996 8,319
Interbank investments 886 1,337 769 456 537
Securities and derivatives! 1,912 1,349 1,696 2,193 2,072
Credit transactions 6,343 6,471 6,119 6,347 5,710
Recurring Annualized Financial Margin (%) 4.2% 4.5% 4.4% 4.3% 4.8%
Annualized Financial Margin (%) 4.1% 4.3% 4.4% 4.3% 4.8%
l 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%,658 from Central Bank.
PINE
Fee Income
Fee income reached R$23 million in the 4Q14, with a slight decrease QoQ. During the year, the reduction is mainly explained
by the contractin of credit facility fees, and also by unfavorable capital market trends.
R$ million
4014 3014 4013 2014 2013
Bank 20 21 23 79 91
PINE Investimentos 2 5 2 14 27
Total 23 26 25 93 118
Personnel and Administrative Expenses
Personnel and Administrative Expenses indicate the diligence and strict cost control of the Bank, performing even better
than the 3% to 5% guidance range. Excluding non-recurring expenses, mainly related to organizational movements and
management of liabilities, the expenses decreased 3.8%.over the year.
R$ million
Elo pEs 3Q14 4013 2014 2013
Personnel expenses 27 24 25 97 92
Other administrative expenses 22 22 25 90 95
Subtotal 49 46 50 187 187
Non-recurring expenses (3) (4) (1) (12) (6)
Total 47 42 49 174 181
Employees’ 409 431 463 409 463
“including outsourced ones
Efficiency Ratio
In 4Q14, the efficiency ratio was impacted by some initiatives that will bring benefits in the following year. 2015
Guidance leads to a reduction in personnel and administrative expenses from 10% to 5% During 2014, the efficiency
ratio remained stable.
R$ million
Llop E) 3Q14 op] 2014 2013
Operating expenses! 52 49 56 198 203
(-) Non-recurring expenses ) (4) (1) (12) (6)
Recurring Operating Expenses (A) 49 45 55 186 197
Recurring Revenues? (B) 116 127 118 481 513
Recurring Efficienc y Ratio (A/B) 42.2% 35.4% 46.6% 38.7% 38.4%
1 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
The expanded loan portfolio totaled R$9,826 million at the end of 2014, representing a contraction of 1.0% in 12 months, asa
result of increased conservatism. Thus, the loan portfolio was slightly below the guidance 0%to 5%
The 20 largest clients changed by over 25%in the past twelve months. This demonstrates the liquidity and flexibility that the
Bank manages its balance sheet. The share of the 20 largest clients reduced to around 25% in line with market peers.
In addition to the high loan quality, the Bank has a strong collateralization of its portfolio. These collaterals are subjected to
rigorous evaluation by a proper model and by third parties. In the case of real estate collaterals, for example, Pine considers
the forced sale value and not the market value. These collaterals are mostly in the form of fiduciary pledges, which ensures
the ownership of the property to the bank, besides the proven agility in the case of execution.
PINE
R$ million
Dec-14 CTS Dec -13 Q0Q YoY
Working capital? 4,730 4,731 5,050 0.0% -6.3%
BNDES Onlending 1,302 1,248 1,068 4.3% 21.9%
Trade finance ? 826 924 903 -10.6% -8.5%
Bank guarantees 2,969 2,896 2,909 2.5% 2.1%
Expanded Loan Portfolio 9,826 9,800 9,930 0.3% -1.0%
1 Includes debentures, CRIs, Hedge Fund Shares, Euro bonds, Credit Portfolio acquired from financial institutions with reco urse and Individuals
2 Includes Stand by LC
Loan Portfolio Breakdown
Dec-14 Dec-13
Working ;
Capital Working
48.1% apital
50.8%
Trade finance ade,
8.4%
9.1%
Onlending Onlending
13.3% Guarantee 10.8%
30.2% Bank
Guarantees
29.3%
Active Management of the Loan Portfolio
Dec-14
Construction Other
Food Industry, Material (11% Sugar and Ethanol
Retail_ 2% xx 14%
xx ISS
Meatpacking Ml Sugar and Ethanol
3% SS Construction DIA ps nu 14%
Metallurgy | 12% E Construction
3% Epia ELA pp
Foreign Trade El
3% K Agriculture
Specialized
e Agricult 3% 7% o% 2%
Vehicles part AN 5% 5% 5% 6% Infrastructure
AS
4% Transportation and
Electric and 42% 39% 40% 40% Logistics
Telecom Renewable Energy Others
4% Transportation – Infrastructure 10%
and Logistics 8%
5% r 7 r
Mar-12 Dec-12 Dec-13 Dec-14
Main Sectors
A PINE
The following graphics bring even more transparency to the Bank’s main operating sectors. Based on the Expanded Portfolio,
there is detailed information on products, regional areas and business segments. Noteworthy that the Bank operates
diligently and conservatively, adding fiduciary pledges for the majority of the transactions.
Sugar and Ethanol
Exposure by State
Construction
Exposure by Segment
Commercial
3%
Warehouse
pz
ETEEl
Residential a
38% 38%
Agriculture
Exposure by State
Exposure by Product
EA
12%
Ii
(e)
45%
Exposure by Product
Guarantees
21%
CE
(15)
79%
Exposure by Product
Onlending
pS
PINE
Energy
Exposure by Segment Exposure by Product
Trader
1%
BNDES
Onlending
9%
MEE
Capital
NS 19%
OS
Infrastructure
Exposure by Segment Exposure by Product
y BNDES
e A CAN
1 pu [ES (A
11%
Concession
Industrial Ea
Py E
MT
(eE)
ELA
Loan Portfolio Profile and Quality
Loan Quality and Provision for Loan Losses – Resolution 2,682
Dec-14 Sept-14
O O AN A O A % revision
AA – 693 693 11.0% – AA – 782 782 12.3% –
A – 2,003 2,003 31.7% 10 A – 1,976 1,976 31.0% 10
B 5 2,220 2,225 35.2% 22 B 0 2,314 2,314 36.3% 23
Cc 80 998 1,078 17.1% 32 Cc 73 959 1,032 16.2% 31
D 6 98 104 1.6% 10 D 0 147 147 2.3% 15
E 13 47 60 1.0% 18 E 8 61 69 1.1% 21
F 35 40 75 1.2% 37 F 1 36 37 0.6% 18
G 55 13 67 1.1% 47 G 13 – 13 0.2% 9
H 7 2 8 0.1% 8 H 4 2 5 0.1% 5
Total 199 6,114 6,313 100.0% 186 Total 98 6,276 6,374 100% 132
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%
PINE
Credit Expenses Reconciliation
In 4014, in line with the conservative approach and the strengthening of the balance sheet, Pine made an additional
provision of R$3.9 million in the Bank Guarantees portfolio.
Bank Guarantees portfolio reached R$2.969 million at the end of December 2014 with very high quality, being 94% of this
portfolio rated between AA and B. According to accounting rules, this amount is under “Other operating expenses”.
The reconciliation of total credit expenses is detailed as following:
R$ million
ES
Provision for Loan Losses (58)
Reversal of Provisions – Loan Assignment 3Q14 (36)
Other Operating Expenses (24)
Additional Provision – Bank Guarantees (4)
Provision for Loan Losses – Managerial (122)
Considering the managerial adjustment in Provision for Loan Losses, a total expense of R$122 million was recognized in 2014,
an increase of 21% compared to the 2014.
Loan Portfolio Coverage Ratios
In December 2014, the D-H portfolio represented 5.0%of the total loan portfolio. As a result of this portfolio profile and the
increase in provisions in 4Q14, the coverage ratio reached 2.9% This increase in provisions is an anticipation of an adverse
economic scenario for 2015.
5.8%
5.0%
4.2%
2.9% 2.9%
Dec-13 Sept-14 Dec-14
D-H Portfolio – Coverage of Total Portfolio
1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,682
2Covegare of Total Portfolio: Provisions/ Loan Portfolio Res. 2,682
Non-Performing Loans > 90 days
%of loan portfolio?
The ratio reached 1.1% which is the same level of J une 2013 and in line with historical levels.
10,
1.2% 1.2% 1.1% 1.1%
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
Includes debentures, CRIs, Hedge Fund, and Eurobonds and excludes Bank Guarantees and Stand by Letters of Credit.
A PINE
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.
Pine’s conservative policy coupled with the reduction in the market demand led to a reduction of 46.4% in the notional
amount in the half of the year, totaling R$7.7 billion with an average duration of 154 days at the end of December 2014.
Notional Amount
— 11M
== – Stressed MtM
Currencies
71%
482
327 354
Fixed Income 288 221
8% (47)
570) (243) ny a
=- ==” Y = ges)
y
Commodities > (532)
15% 11,148 11,268 14,382 8,376 7,703
Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
The R$221 million counterparty risk exposure (Mark to Market) considers the net value of Pine’s payables and receivables.
Thus, in December 2014, Pine would receive R$415 million from its counterparties and pay R$194 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$3.50/ USD, and commodity prices falling by 30%
the potential Mark to Market in the portfolio would have been R$365 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 December 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 2014, Pine Investimentos participated in the underwriting of approximately R$1.8 billion in fixed income, in both
local and international markets. Furthermore, Pine provided advisory services to its clients on the structuring of R$1.1 billion
in MEA and project finance.
Funding
Total funding reached R$8,500 million in December 2014, representing an increase of 1.4% in twelve months, despite the
1.6%reduction QoQ.
Given the high liquidity of the balance sheet and the constant and active liability management, Pine has been reducing ¡ts
funding costs. Over 2014, Pine 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 individuals deposits 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.
= Voluntary non-renewal of some deposits, especially institutional ones, reflecting the pricing policy adopted
by the Bank in a high liquidity scenario.
PINE
= Settlement of the Financial Bills issued in April and November 2012, amounting to R$373 million and R$210
million, respectively.
= Issuance of two transactions in A/B Loan format, one amounting to US$115 million, maximum of 5-year
term with IDB and Commerzbank, and the other amounting to US$100 million, maximum of 3-year term,
with IDB and 7 other banks: Barclays, BHD Panama, KfW, IDBNY, Commerzbank, LBBW, Intesa Sanpaolo.
In the international market, Pine has around 70 correspondent banks in various countries, including development banks such
as DEG and Proparco, and multilateral agencies, including the IFC, IDB, and FMO. The strengthening of the balance sheet
enabled a growth of 36.6%in international funding year on year.
R$ million
Dec-14 Sept-14 Dec-13 Q0Q DA
Local Funding 4,864 5,285 5,299 -8.0% -8.2%
Demand deposits 27 30 23 -10.0% 17.4%
Interbank deposits 69 98 90 -29.6% -23.3%
Time deposits +LCA +LCI 3,387 3,557 3,762 -4.8% -10.0%
Individuals * 1,122 920 475 22.0% 136.2%
Companies 545 731 1,112 -25.4% -51.0%
Institutionals 1,720 1,905 2,175 -9.7% -20.9%
Capital Markets 1,382 1,601 1,424 -13.7% -2.9%
Onlendings + Trade Finance 2,172 2,110 2,012 2.9% 8.0%
Onlendings 1,333 1,292 1,141 3.2% 16.8%
Trade finance 839 819 871 2.4% 3.7%
International Funding 1,464 1,242 1,072 17.9% 36.6%
Capital Markets 347 323 459 7.4% -24.4%
Multilaterals 687 388 113 77.1% 508.0%
Other private placements and syndicated
loans 430 531 500 -19.0% -14.0%
Total 8,500 8,638 8,383 -1.6% 1.4%
“includes securities distributed to individuals through other institutions.
10
Asset and Liability Management
PINE
In accordance with Pine’s asset and liability management, funding sources are aligned in terms of maturity and cost with
their respective credit transactions. Over 2014, we had a significant improvement in the liquidity gap, reaching an average
period of 12 months for the loan portfolio and 16 months for funding, compared to 15 months and 17 months in 2013,
respectively, ensuring a comfortable situation for the Bank.
Matching of Credit and Funding
R$ Million
8,341 8,280 8.478 8,500
7,925
Credit 7,364
Funding 6,191
4,686
3,358
1,657
– 27
Positive Liquidity Gap
Months
17 16 16 16 16
14 13
12
Funding
No maturity Upto3 Upto12 Upto3 years Upto5 years Total –Credit
months months s ; ; ; .
(includes
Cash) Dec-13 Mar-14 Jun-14 Sept-14 Dec-14
Breakdown
R$ Billion
Cash
Working Capital m
Onlendings M
Trade Finance E
Credit + Cash
m Deposits
m Domestic Capital Markets
International Funding
m Onlendings
m Trade Finance
Funding
11
PINE
Capital Structure
At the end of 2014, the capital adequacy ratio (BIS) reached 13.9% above the regulatory minimum level of 11% The Tier |
capital represented 12.5% 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
Dec-14 Setp-14 Dec-13
Reference Equity 1,402 1,413 1,442
Tier | 1,256 1,273 1,220
Tier | – BISRatio % 12.5% 12.4% 12.0%
Tier II 146 140 222
Tier 11 – BISRatio % 1.4% 1.4% 2.1%
Required Reference Equity 917 929 928
Credit Risk 868 866 847
Market Risk 35 50 66
Operational Risk 14 14 15
Excess of Reference Equity 485 484 514
BIS Ratio – % 13.9% 13.8% 14.1%
2015 Guidance
Based on an estimated GDP retraction of between 0.5%and 0.3% find below Pine”s guidance.
Expanded Loan Portfolio -5%to 5%
NIM 4%to 5%
Personnel and Administratve Expenses -10% to -5%
ROAE 7%to 10%
12
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 December 30, 2014
Ce SS) Total %
Controlling Shareholder 65,178,483 17,210,589 82,389,072 68.0%
Management – 7,664,302 7,664,302 6.3%
Free Float – 28,781,999 28,781,999 23.8%
Individual s – 7,068,528 7,068,528 5.8%
Local Institutional Investors – 8,570,401 8,570,401 7.1%
Foreign Investors – 5,456,275 5,456,275 4.5%
DEG – 5,581,714 5,581,714 4.6%
Proparco – 2,105,081 2,105,081 1.7%
SubTotal 65,178,483 53,656,890 118,835,373 98.1%
Treasury – 2,336,651 2,336,651 1.9%
Total 65,178,483 55,993,541 121,172,024 100%
Interest on Own Capital and Dividends
Following its policy of paying dividends on a quarterly basis established in 2008, Pine paid a total of R$14.3 million as interest
on own capital on January 15, 2015, which corresponds to a gross payout per share of R$0.12.
Considering all the proceeds distributed throughout the year and the share price at the end of 2014, this amount represents a
9.3% dividend yield.
Ratings
STANDARD FitchRatings Moodys.com RISKbank:
£POOR’S ro Sn
E 7 q Long Term BB+ BB+ Ba2
ByE
v-J335
$ y Short Term B B Ñ
E Long Term brAA AA-(bra) Al.br
z 10.73
E Short Term Fl+bra) Br-1
13
PINE
Balance Sheet
R$ million
DEBT Setp-14 Dec-13
Assets 10,447 10,885 10,545
Cash 180 71 157
Interbank investments 243 1,529 668
Securities 3,005 2,041 2,515
Interbank accounts 1 1 1
Lending operations 6,313 6,374 6,382
(-) Provisions for loan losses (186) (132) (186)
Net lending operations 6,127 6,243 6,196
Other receivables 872 876 904
Property and equipments 20 125 104
Investments – 105 76
Property and equipment in use 19 19 26
Intangible 1 1 2
Liabilities 9,191 9,612 9,272
Deposits 2,314 2,744 3,156
Money market funding 169 624 509
Funds fromacceptance and securities issued 2,043 1,960 1,738
Interbank and Interbranch accounts 1 9 15
Borrowings and onlendings 3,174 2,913 2,954
Derivative financial instruments 265 165 191
Other liabilities 1,139 1,120 641
Deferred Results 85 78 68
Shareholders’ equity 1,256 1,273 1,272
Liabilities and shareholders’ equity 10,447 10,885 10,545
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$418 million in 4014, R$410 million in 3Q14 and R$457 million in 4013).
14
PINE
Income Statement
R$ million
Elo pEs 3014 4013 2014 2013
Income from financial intermediation 392 433 310 1,350 1,182
Lending transactions 198 222 163 781 568
Securities transactions 79 78 63 324 263
Derivative financial instruments 96 87 53 200 196
Foreign exchange transactions 19 45 31 45 155
Expenses with financial intermediation (363) (319) (244) (1,028) (893)
Funding transactions (201) (208) (169) (689) (608)
Borrowings and onlendings (108) (133) (51) (282) (184)
Provision for loan losses (54) 22 (24) (58) (101)
Gross income from financial intermediation 29 114 66 322 289
Other operating (expenses) income (43) (95) (11) (211) (69)
Fee income 23 26 25 93 118
Personnel expenses (27) (24) (25) (97) (92)
Other administrative expenses (22) (22) (25) (90) (95)
Tax expenses (3) 3) (6) (11) (17)
Other operating income 4 5 52 25 73
Other operating expenses (17) (77) (32) (131) (56)
Operating income (14) 19 55 111 220
Non-operating income (1) 4 2 15 9
Income before taxes and profit sharing (15) 23 57 126 229
Income tax and social contribution 25 7 (9) 9 (31)
Profit sharing (6) (12) (11) (41) (37)
Net income 5 19 37 94 162
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$12.2 million, R$13.5 million and R$12.2 million respectively in 4014, 3Q14 and 4Q13.
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.
15
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=d1e9f5d31c5bc66afdc42649b0ecabd6VFdwQmVFNVVRWGxOUkVGNFQwUkJlazlSUFQwPQ==&secuencia=-1&t=1682366909
