Institutional presentation 3Q16

3Q16 Institutional

Presentation

2/37 Investor Relations | 3Q16 |

Profile and History

Pine

History

Business Strategy

Competitive Landscape

Focus Always on the Client

Corporate Credit

FICC

Pine Investimentos

Strategic Partnership

Corporate Governance

Organizational Structure


Committees

Social Investment and Responsibility

Economic Overview

Macroeconomic

Credit Growth

Expectations

Highlights and Results

Summary


Profile and History


Pine

Specialized in providing financial solutions for corporate clients…

Credit Portfolio by Annual Client Revenues Customer Profile

Bank Profile

Focused on establishing long-term relationships

Fast response | Specialized services

Customized products | Product diversity

R$ 6,238 million in Loan Portfolio

R$ 1,152 million in Shareholders’ Equity

Long-term National Rating at AA+ by Fitch

Business is structured along three primary business lines:

Corporate Credit: credit and financing products

FICC: instruments for hedging and risk

management

Pine Investimentos: Capital Markets, Financial

Advisory, Project & Structured Finance and

Research

Large Corporate (> R$ 2.000 millions)

Corporate (R$ 500 - R$ 2.000 millions)

Companies (R$ 50 - R$ 500 millions)

Retail (PFs e small companies)

Balance sheets audited by third parties, corporate governance,

well defined hedging policies, and the lower risk profile Over R$2 billion38%

R$500 million to R$2 billion

23%

Up to R$500 million

39%


...with extensive knowledge of Brazil’s corporate credit cycle.

History

1997

Noberto Pinheiro sell

his stake in BMC and

found Pine

1939

Pinheiro Family

founds

Banco Central do

Nordeste

1975

Noberto Pinheiro

becomes one of

BMC’s controlling

shareholders

Devaluati-

on of the

real

Nasdaq Sept. 11 Brazilian

Elections

(Lula) Subprime

Russian

Crisis European

Community

End of 2007

Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

May, 2007

Creation of Pine Investimentos products line and

opening of the Cayman branch

2005

Noberto Pinheiro becomes Pine’s controller

October, 2007

Beginning of the FICC Business

October, 2011 Subscription of Pine’s capital by DEG

August, 2012

Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management

2014

Portfolio deleveraging strategy due to an adverse scenario

March, 2007

IPO

May, 2016

19 years

155 184 222 341 521 620 755 663 761 1,214

2,854 3,105

4,192

5,763

6,9637,911

9,920 9,826

6,9336,238

1862

121 126 140 136 152 171209

335

801827 825

867

1,015

1,2201,272 1,256

1,163 1,152

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Sept-

16

Corporate Credit Portfolio (R$ Million)

Shareholders' Equity (R$ Million)


Business Strategy


Competitive Landscape

Pine serves a niche market of companies with few options for banks.

100% focused on providing complete service

to companies, offering customized products

100% Corporate

Large Multi-Services banks

Market

Consolidation of the banking sector has decreased

the supply of credit lines and financial instruments

for corporate

Foreign banks are in a deleveraging process

PINE

Full service Bank – Credit, Hedging, and Investment

Bank products – with room for growth

~15 clients per officer

Competitive Advantages:

Focus

Fast response: Strong relationship with

clients, with the credit committee meeting

once a week ensures rapid return to customer

needs

Specialized services

Tailor-made solutions

Product diversity

Foreign and

Investment Banks

SME & Retail

Corporate e SME

Retail

https://www.btgpactual.com/home/home.aspx/Index

http://www.banrisul.com.br/

http://www.sofisa.com.br/


Focus Always on the Client

Products tailored to meet the needs of each individual client.

In addition to the

headquarters located in the

city of São Paulo, Pine has 6

branches throughout Brazil , in

the States of Mato

Grosso, Paraná,

Pernambuco, Rio de Janeiro,

Rio Grande do Sul, and

São Paulo. The origination

network also counts with a

Cayman Branch, especially for

Trade Finance transactions.


Corporate Credit

Actions Credit Committee

Strong track record and solid credit origination and approval process.

Credit Approval: Electronic Process

Origination

Officers

Credit origination

Credit analysis, visit to

clients, data updates,

interaction with internal

research team

Credit Analysts

Regional Heads of

Origination and

Credit Analysis

Presentation to the Credit

Committee

Directors and

Analysts of Credit

Centralized and

unanimous decision

making process

CREDIT

COMMITTEE

Meets once a week – reviewing on ~ 20 proposals

Minimum quorum: 4 members - attendance of CEO or

Chairman is mandatory

Committee Members:

CEO

Chief Financial Officer

Chief Administrative Officer

Credit Director

Corporate and Investment Banking Director

Superior Committee Members:

Two members of the Board

Participants:

FICC Director

Credit Analysts Team

Other members of the Corporate Banking origination

team

Personalized and agile service, working closely with clients and

keeping a low client to account officer ratio: each officer

handles ~15 economic groups

Geographic coverage of clients, providing the bank with local

and extremely up-to-date credit intelligence and information

Established long term relationships with more than 500

economic groups

Pine has approximately 20 professionals in the credit analysis

area, assuring that analysis is fundamentally driven and based

on industry-specific intelligence

Efficient loan and collateral processes, documentation, and

controls, which has resulted in a low NPL track record

Discussion on sizing,

collateral, structure etc.

Superior

Committee

Approval

Tickets over R$ 15 MM


September 30rd, 2016

Currencies (83%): Dollar, Euro, Yen, Pound, Canadian

Dollar, Australian Dollar

Fixed income (10%): Fixed, Floating, Inflation, Libor

Commodities (7%): Sugar, Soybean ( Grain, Meal and Oil),

Corn, Cotton, Metals, Energy

FICC

Solid trackrecord.

Market Segments Competitive Advantages

One Stop Shop: credit and risk mitigation

Every transaction demands prior credit approval

Collaterals surpass approved derivative’s limits

Agility| Client Focused| Diversification

Average of 30 days to close a derivative transaction

(domestic large banks average - 90 days)

Sample Transaction

Trader prices the

transaction, including spread

Treasury hedges the

transaction

Transaction closed

Treasury informs the spot

price

Global Derivatives

Agreement

(ISDA Master Agreement)

• Limits

• Types of Derivatives

• Collaterals

• Market Risk: 100% Hedged

• Limits

PINE Credit Analysis

Process

FICC

• Credit Analysis

• Collaterals

• Cross-selling opportunity

• Credit Committee Approval

Client 1st

2nd

Margin Calls Management Derivatives


Pine Investimentos

9th place in volume of short-term fixed income transactions, being the 5th player in the number of transactions

Operating Model

Selected Transactions

Pine Investimentos

Financial Advisory Capital Markets Project

Finance

Fixed Income (CRIs, CRAs)

Infrastructure Debentures

Equities

Securitization

Hybrid capital

transactions

Project & Structured

Finance

Investidores

Family Offices

Individuals

Companies

Asset Managers

Financial Institutions

Pension Funds

Foreign Investors

Hedge Funds

July, 2016

Bank Guarantee

R$ 38,000,000

Coordinator

June, 2016

CPR

R$22,700,000

Lead Coordinator

May, 2016

CPR

R$25,500,000

Lead Coordinator

April, 2016

Structure CCB

R$35,000,000

Lead Coordinator

April, 2016

Promissory Note

R$20,000,000

Lead Coordinator

July, 2016

Bond

R$ 400,000,000

September, 2016

Structure CreditFacility

R$ 10,000,000

Lead Coordinator

September, 2016

Mortage Backed Securities

R$ 10,000,000

Lead Coordinator

September, 2016

Bond

R$ 469,000,000


Strategic Partnerships

About DEG

About PROPARCO

Group Structure

Group Structure

DEG and PROPARCO

Founded in 1962 in Germany, DEG is one of the largest

institutions in Europe that contribute to growth and

development of private companies in emerging market

It belongs to the KFW Bankengruppe, Germany's largest public

development bank

Promotes development of private enterprises in emerging

markets through long-term financing

Consolidated Assets

EUR 7.6 billion

May, 2015

Founded in 1977 in Paris, started it´s activities in Brazil in

2006

Proparco is the subsidiary of Agence Francaise de

Dévelopement ( AFD)

Focused on emergence of a strong and innovative private

sector with aim of supporting growth and sustainability in

Emerging Market

Consolidated Assets

EUR 3.72 billion

May, 2015

57%

French

Financial

Institutions

International

Financial

Organisations

French

Companies

Investment

funds &

Foundations

26% 13% 3% 1%




Organizational Structure

Non-bureaucratic Culture, entrepreneurial and meritocratic with a flat hierarchy

CEO

Norberto Zaiet Jr.

INTERNAL AUDIT

Tikara Yoneya

COMPENSATION

COMMITTEE AUDIT COMMITTEE

EXTERNAL AUDIT

PWC

Noberto N. Pinheiro Jr. Rodrigo Pinheiro Igor Pinheiro Noberto Pinheiro Norberto Zaiet Gustavo Junqueira Mailson de Nóbrega Susana Waldeck

President Vice-President Vice-President Member Member Independent

Member

Independent

Member

External

Member

BOARD OF DIRECTORS

RISKS COMMITTEE

Corporate & IB Finances Operations Business

Structuring- DCM

Investment Banking

Corporate Banking

Assets and Liabilities

Back-office

Legal

Compliance, Internal

Control and Security of

Information

Collaterals Management

Management Special

Assets

Middle Office

Exchange

Services

Sales & Trading

International

Research Macro /

Commodities/ Companies

Funding & Distribution

Marketing

Investor Relations

Structured Products

ALM e FLOW

Accounting and Tax

Planning

Technology

Market and Liquidity

Risks

Strategic Planning and

P&L

Commercial Planning and

Valuation

Credit

Credit

Register



Pine is committed to best corporate governance practices

Two Independent Members and one External Member on the Board of Directors

Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990

Gustavo Junqueira: Former Head of Pine Investimentos, Member of the Board of Directors at EZTEC, Financial

Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica

Harumi Susana Ueta Waldeck: Former CFO of Pine, with over 17 years of experience at the company. She brings

the day-to-day experience to the Board.

São Paulo Stock Exchange (BM&FBOVESPA) Level 2 Corporate Governance

Audit and Compensation Committee reporting directly to the Board of Directors

100% tag along rights for all shareholders, including non-voting shares

Arbitration procedures for fast settlement of litigation cases


Social Investment and Responsibility

Focus on the short, medium and long term.

Social Investment Recognition

Partnerships

Most Green Bank

Recognized by the International Finance Corporation (IFC), private

agency programs of the World Bank as the most "green" bank as a result

of its transactions under the Global Trade Finance Program (GTFP) and

its onlending to companies focused on renewable energy and ethanol

Efficiency Energy

Recognition by World Bank for support in the Energy Efficiency sector.

Responsible Credit

“Lists of Exceptions”: the Bank does not finance projects or those

organizations that damage the environment, are involved in illegal

labor practices or produce, sell or use products, substances or activities

considered prejudicial to society.

System of environmental monitoring, financed by the IADB and

coordinated by FGV, and internally-produced sustainability reports for

corporate loans

Protocolo Verde – “Green Protocol”, an agreement

between FEBRABAN and the Ministry of the Environment

to support development that does not compromise future

generations.

Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and

Miguel Rio Branco, in addition to sponsoring and supporting films and

documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the

drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além

da Estrada (Charly Braun) and others.

Sustainability Annual Report

Seventh consecutive year disclosing the

Sustainability Report in the GRI

standard. The 2015 report, with its high

level of clarity, transparency and quality

was recognized with the fourth place in

the Abrasca Annual Report Award,

considering its category of companies

with net income to R$3 billion.


Economic Overview


17.6

17.5

19.2

23.5

16.4

19.1

15.3

12.0

12.5

10.1

9.9

11.8

8.6

8.3

11.0

13.514.1

11.8

9.5

10.0

5

10

15

20

25

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

Selic (interest rate, average) Média móvel 4 anos

4.4

1.4

3.1

1.1

5.8

3.24.0

6.15.1

-0.1

7.5

3.9

1.9

3.0

0.1

-3.8-3.5

0.8

2.51.5

-6

-4

-2

0

2

4

6

8

10

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

Real GDP growth rate (%) Média móvel 4 anos

Macroeconomic

Real GDP

SELIC

IPCA (CPI)

Gross Government Debt

Due to the challenging economic scenario...

Moving Avarage 4 years

Moving Avarage 4 years

6.0

7.7

12.5

9.3

7.6

5.7

3.1

4.5

5.9

4.3

5.96.5

5.8 5.96.4

10.7

7.0

5.04.5 4.5

3

5

7

9

11

13

15

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

IPCA (CPI)

67

76

72

68

67

5557

56

59

5251

5452

57

67

72

75

8082

50

60

70

80

90

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Forecast

Gross government debt (% GDP)


0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Credit growth (% YoY, nominal)

Credit Growth

Corporate and Households

Credit/GDP

Public Banks, National and Internacional Privates Banks

Interest and Spread

... the credit environment is directly affected...

50.8

-10

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016


Corporate Households

-6.5

3.6

-5

0

5

10

15

20

25

30

35

40

45

2008 2009 2010 2011 2012 2013 2014 2015 2016


Public banks National private banks International private banks

-0.3

1.8

-14.6

0

5

10

15

20

25

30

35

2011 2012 2013 2014 2015 2016

Interest and Spread - Corporate (% YoY)

Investment Funding Spread

29.8

11.8

18.0


Expectations ...however, we expect that this scenario has a slight improvement in 2017.

Source: Pine Bank, September 2016

Brazil: Key Economic Indicators - PINE

INDICATORS 2011 2012 2013 2014 2015 2016E 2017E 2018E

Real GDP growth rate (%) 3.9% 1.9% 3.0% 0.1% -3.9% -3.5% 0.8% 2.5%

BRLUSD (eop) 1.83 2.08 2.35 2.65 3.87 3.25 3.00 2.85

BRLUSD (average) 1.67 1.95 2.16 2.35 3.33 3.47 3.13 2.95

IPCA (CPI) 6.5% 5.8% 5.9% 6.4% 10.7% 7.0% 5.0% 4.5%

IGP-M (PPI) 5.1% 7.8% 5.5% 3.5% 10.5% 7.7% 4.7% 5.0%

Selic (interest rate, eop) 11.00% 7.25% 10.00% 11.75% 14.25% 13.75% 11.00% 9.00%

Selic (interest, average) 11.71% 8.46% 8.44% 11.02% 13.58% 14.15% 11.75% 9.50%

Trade balance (USD bn) 29.8 19.4 2.6 -3.9 19.7 50.1 35.0 20.0

Current account (USD bn) -73.2 -78.4 -83.0 -103.6 -58.9 -18.4 -25.0 -40.0

Current account (% GDP) -2.8% -3.5% -3.8% -4.8% -3.3% -1.0% -1.2% -2.0%

FDI (US$bn) 101 87 69 97 75 70.0 80.0 90.0

Primary surplus (% GDP) 2.9% 2.2% 1.7% -0.6% -1.9% -2.4% -2.1% -1.0%

Gross government debt (% GDP) 51.3% 54.8% 53.3% 58.9% 66.4% 72.0% 75.0% 80.0%


Highlights and Results


Highlights

Liquid balance sheet with a cash position of R$ 1.8 bi, equivalent to 50% of time deposits.

Excess capital, with a BIS ratio of 15.8%, being 15.3% in Tier I Capital.

Loan portfolio coverage ratio surpassed 6% as a result of relevant provisions over the past quarters.

Retraction of approximately 8% in personnel and administrative expenses in the accumulated of 9 months.

Continuous liability management with a diversified portfolio and adequate terms.


10

-7 -7

3Q15 2Q16 3Q16

-163.7%

4.9%

7,409 6,859

Sept-15 Dec-15

Total Funding

-7.4%

1,181 1,163

Sept-15 Dec-15

Shareholders' Equity

-1.5%

3.5% 3.6%

3Q15 4Q15

ROAE

0.1 p.p

2.9% 3.2%

3Q15 4Q15

NIM Evolution

0.33 p.p.

10 10

3Q15 4Q15

Net Income

Financial Highlights

1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)

R$ million

7,691 6,271 6,238

Sept-15 Jun-16 Sept-16

Total Loan Portfolio1

-0.5%

-18.9%

7,691 6,933

Sept-15 Dec-15

Total Loan Portfolio1

-9.9%

7,409 5,925 5,908


Total Funding

-0.3%

-20.3%

1,181 1,165 1,152


Shareholders' Equity

-1.1%

-2.4%

3.5%

-2.4% -2.3%3Q15 2Q16 3Q16

ROAE

-580 bps.

10 bps.3.3%

2.0% 2.0%

3Q15 2Q16 3Q16

NIM

-90 bps.


Revenue Mix Product and Revenue Diversification

Business Lines

Credit48.0%

Bank Guarantees 21.9%

FICC20.0%

Pine Investimentos

7.2%

Treasury2.9%

9M16

Credit66.5%

Bank Guarantees 18.0%

FICC11.2%

Pine Investimentos

4.3%

Treasury0%

9M15


Net Interest Margin NIM Breakdown

NIM

NIM Breakdown

R$ million

3Q16 2Q16 3Q15 9M16 9M15

Financial Margin

Income from financial intermediation 32 51 1 154 135

Overhedge effect (2) (21) 55 (62) 79

Income from financial intermediation 30 30 56 92 214

3.3%1.97% 2.05%

3Q15 2Q16 3Q16

NIM-90 bps.

10 bps.


Expenses and Efficiency Ratio

Personnel and Administrative Expenses

Expenses and Efficiency Ratio

Rigorous cost control.

R$ million

3Q16 2Q16 3Q15 9M16 9M15

Personnel expenses 21 21 22 62 66

Other administrative expenses 17 16 20 49 55

Subtotal 38 37 42 111 121

Non-recurring expenses (3) (3) (4) (9) (7)

Total 35 34 38 102 114

Employees1 339 337 375 339 375 1 Including outsourced ones

2221 21

20

16 17

50.6%

86.7%77.6%

-200%

-150%

-100%

-50%

00%

50%

100%

0

5

10

15

20

25

30

35

40

3Q15 2Q16 3Q16

Personnel Expenses

Other administrativeexpenses

Recurring EfficiencyRatio (%)


3,6503,282 3,172 3,139 3,275

924

794 747 659 520

2,492

2,3732,250

2,122 2,104

626

485438

351 339

Sept-15 Dec-15 Mar-16 Jun-16 Sept-16

Trade finance: 5.4%

Bank Guarantees: 33.7%

BNDES Onlending : 8.3%

Working Capital: 52.5%

6,9336,608

6,271

7,691

6,238

1 Includes Stand by LC 2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

R$ million

Loan Portfolio

The portfolio amounted to R$6.2 billion...

1

-18.9%

-0.5%

2


Continuous Loan Portfolio Management

Sectors Rebalance

...with improved sector diversification.

Diversified growth (lower tickets and increased number of active clients).

The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;

The share of wallet of the 20 largest clients remained at around 30%, in line with market peers.

38%38%40%41%41%

6%7%6%5%6%9%9%8%9%6%

11%10%11%8%9%

12%12%14%14%16%

12%12%9%9%10%

12%12%12%14%12%

Sept-16Sept-15Sept-14Sept-13Sept-12

Real Estate

Energy

Sugar and Ethanol

Agriculture

Engineering

Transportationand Logistics

Others

Real Estate12%

Energy12%

Sugar and Ethanol12%

Agriculture11%

Engineering9%

Transportation and Logistics

6%Telecom

5%

Foreign Trade5%

Specialized Services

4%

Metallurgy3%

Retail3%

Mining2%

Construction Material

2%

Vehicles and Parts2%

Meatpacking2%

Food Industry1%

Other9%


7.7%

13.8%15.1%

4.1%

5.9% 6.1%

00%

02%

04%

06%

08%

10%

12%

-01%

01%

03%

05%

07%

09%

11%

13%

15%

17%

Set-15 Jun-16 Set-16

Carteira D-H Cobertura da Carteira Total

127%167% 193%

50.0%

250.0%

450.0%

650.0%

Cobertura da Carteira D-H Vencida

1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,682 2Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio

September 30th, 2016

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio

excluding Bank Guarantees and Stand-by Letters of Credit.

Loan Portfolio Quality

~85% of the loan portfolio is classified between AA-C ratings.

Loan Portfolio Quality – Res. 2,682

Credit Coverage

Non Performing Loans > 90 days (Total Contract)

Collaterals

1 2 3

0.3%1.1%

2.1%1.8%

1.2%1.7%

0.7%1.3% 1.5%

sept-14 dec-14 mar-15 jun-15 sept-15 dec-15 mar-16 jun-16 sept-16

Products Pledge

39%

Receivables13%Properties

Pledge45%

Investments2%

AA-A23.9%

B26.4%

C34.6%D-E

9.8%

F-H5.3%


853 841 787 648 617

343 324 348261 376

1,321 1,570 1,662 1,939

2,600

359336 218 156

133

3318 17 19

29

952 806 759 668

530207 295 284 296

198764 751 761 734259

318 279244

216 206

1,022 1,029777

680 665

545113

6139 33

692

497

352

270 262

7,409

6,859

6,270

5,925 5,908


Trade Finance: 4.4%

Private Placements: 0.6%

Multilateral Lines: 11.3%

International Capital Markets:3.5%

Financial Letter : 4.4%

Local Capital Markets: 3.4%

Onlending: 9%

Demand Deposits: 0.5%

Interbank Time Deposits: 2.3%

High Net Worth Individual TimeDeposits: 44%

Corporate Time Deposits: 6.4%

Institutional Time Deposits:10.4%

R$ million

Funding

Diversified sources of funding...

41% 53% 53% 52% 50% Cash over Deposits


39% 45% 48% 51%64%

61% 55% 52% 49%36%


Total Deposits Others

Leverage: Expanded Loan Portfolio / Shareholders’ Equity

Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit /

Shareholders’ Equity

Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of

Credit / Total Funding

Asset & Liability Management

... matching assets’ and liabilities’ duration.

Leverage Credit over Funding Ratio

Total Deposits over Total Funding R$ million R$ billion

5,925 7,409 6,859 6,270 5,908

Asset and Liability Management (ALM)

70%66%

69% 70% 70%


6.5x6.0x

5.6x 5.4x 5.4x

4.4x3.9x 3.7x 3.6x 3.6x

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.0 0


Expanded loan Porfolio

Loan Portfolio excludingBank Guarantees

1.2

0.7

5.2

0.00.7

0.5

Assets

0.1

0.2

3.7

2.9

0.5

0.9

Liabilities

8.3 8.3

Coverage of 143%

Cash and cash equivalents

Assets financed through REPOs

Other assets

Credit Portfolio

Trading portfolio assets

Illiquid assets

Secured funding

Other liabilities

Unsecured funding

Demand deposits

Equity

REPO Financing


Capital Adequacy Ratio (BIS), Basel III

BIS ratio of 15.8%, being 15.3% in Tier I Capital.

12.2%14.1% 14.7% 15.4% 15.3%

0.9%

0.9% 0.4%0.5% 0.5%

13.1%

15.0% 15.1%15.9% 15.8%

Set-15 Dez-15 Mar-16 Jun-16 Set-16

Tier II Tier IMinimum Regulatory Capital (10.5%)


Rating

Fore

ign

an

d L

ocal

Cu

rren

cy

Long Term B+ BB- B1 -

Nati

on

al

Long Term BBB- A Baa2 9.29


Balance Sheet

R$ million


Assets 8,323 8,436 9,920

Cash 70 71 123

Interbank investments 865 836 445

Securities 2,867 2,893 3,451

Interbank accounts 0 1 1

Lending operations 3,655 3,746 4,775

(-) Provisions for loan losses (223) (223) (198)

Net lending operations 3,432 3,523 4,577

Other receivables 971 994 1,310

Property and equipments 118 119 13

Investments 108 108 -

Property and equipment in use 10 10 12

Intangible 1 1 1

Liabilities 7,171 7,270 8,739

Deposits 2,641 1,976 1,846

Money market funding 478 612 756

Funds from acceptance and securities issued 1,398 1,913 2,036

Interbank and Interbranch accounts 27 11 13

Borrowings and onlendings 1,487 1,542 3,040

Derivative financial instruments 813 709 264

Other liabilities 261 441 719

Deferred Results 66 67 65

Shareholders' equity 1,152 1,165 1,181

Liabilities and shareholders' equity 8,323 8,436 9,920


Managerial Income Statement

(overhedge effect and provisions reclassified)

R$ million

3Q16 2Q16 1Q16 4Q15 3Q15 9M16 9M15

Income from financial intermediation 236 71 94 215 758 401 1,570

Lending transactions 116 114 122 146 178 352 555

Securities transactions 99 79 77 93 81 254 232

Derivative financial instruments 12 (67) (72) (18) 488 (127) 709

Foreign exchange transactions 10 (55) (33) (7) 11 (78) 75

Expenses with financial intermediation (224) (74) (87) (183) (758) (385) (1,510)

Funding transactions (180) (101) (111) (163) (322) (392) (713)

Borrowings and onlendings (26) 59 50 6 (380) 83 (644)

Provision for loan losses (17) (33) (26) (26) (56) (77) (154)

Gross income from financial intermediation 13 (4) 6 32 (0) 16 60

Other operating (expenses) income (25) (23) (24) (37) (53) (71) (121)

Fee income 19 15 16 18 26 50 72

Personnel expenses (21) (21) (20) (23) (22) (62) (66)

Other administrative expenses (17) (16) (16) (19) (20) (49) (55)

Tax expenses (3) (5) (7) (6) (2) (14) (16)

Other operating income 3 15 10 2 2 28 14

Other operating expenses (6) (11) (8) (7) (36) (25) (70)

Operating income (12) (26) (17) (5) (53) (56) (61)

Non-operating income 3 3 9 3 (1) 15 5

Income before taxes and profit sharing (10) (23) (9) (2) (53) (41) (56)

Income tax and social contribution 7 18 22 22 73 47 111

Profit sharing (4) (2) (5) (9) (10) (11) (24)

Net income (7) (7) 8 10 10 (5) 31


Income Statement

R$ million

3Q16 2Q16 3Q15 9M16 9M15

Income from financial intermediation 239 92 703 463 1,491

Lending transactions 116 114 178 352 555

Securities transactions 99 79 81 254 232

Derivative financial instruments 14 (46) 433 (65) 629

Foreign exchange transactions 10 (55) 11 (78) 75

Expenses with financial intermediation (224) (74) (758) (385) (1,443)

Funding transactions (180) (101) (322) (392) (713)

Borrowings and onlendings (26) 59 (380) 83 (644)

Provision for loan losses (17) (33) (56) (77) (87)

Gross income from financial intermediation 15 18 (55) 78 48

Other operating (expenses) income (25) (23) (53) (71) (188)

Fee income 19 15 26 50 72

Personnel expenses (21) (21) (22) (62) (66)

Other administrative expenses (17) (16) (20) (49) (55)

Tax expenses (3) (5) (2) (14) (16)

Other operating income 3 15 2 28 14

Other operating expenses (6) (11) (36) (25) (137)

Operating income (10) (5) (108) 6 (140)

Non-operating income 3 3 (1) 15 5

Income before taxes and profit sharing (7) (1) (108) 21 (135)

Income tax and social contribution 4 (4) 128 (15) 190

Profit sharing (4) (2) (10) (11) (24)

Net income (7) (7) 10 (5) 31


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.

Investor Relations

Norberto Zaiet Junior

CEO

João Brito

CFO

Raquel Varela Bastos

Head of Investor Relations, Funding & Distribution, Marketing & Press

Luiz Maximo

Investor Relations Coordinator

Kianne Paganini

Investor Relations Analyst

Phone: (55 11) 3372-5343

ir.pine.com

[email protected]