Cc 2 t16_eng
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- The company reported a cash position of R$1.5 billion and a BIS capital ratio of 15.9% in the 2Q16 earnings release conference call. - The loan portfolio decreased by 27.3% compared to the previous year due to significant increases in provisions. Expenses also decreased by 8% in the first half of the year from rigorous cost control. - The portfolio is diversified across sectors such as sugar and ethanol (12%), energy (12%), and real estate (12%). Funding sources remain diversified including deposits, which accounted for 51% of total funding.
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Cc 2 t16_eng
- 1. 2Q16 Earnings Release Conference Call August, 09th 2016
- 2. 2/17Investor Relations | 2Q16 | Highlights Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 52% of time deposits. Excess capital, with a BIS ratio of 15.9%, being 15.4% in Tier I Capital. Loan portfolio coverage ratio at around 6% as a result of a significant increase in provisions in the periods. Retraction of 8% in personnel and administrative expenses in the semester. Continuous liability management with a diversified portfolio and adequate terms.
- 3. 3/17Investor Relations | 2Q16 | 7,409 6,859 Sept-15 Dec-15 Total Funding -7.4% 7,691 6,933 Sept-15 Dec-15 Total Loan Portfolio 1 -9.9% 1,181 1,163 Sept-15 Dec-15 Shareholders' Equity -1.5% 3.5% 3.6% 3Q15 4Q15 ROAE 0.1 p.p 2.9% 3.2% 3Q15 4Q15 NIM Evolution 0.33 p.p. 10 10 3Q15 4Q15 Net Income Financial Highlights 1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares) R$ million 20 1 1H15 1H16 -93.3% 8,621 6,608 6,271 Jun-15 Mar-16 Jun-16 1 -5.1% -27.3% 7,564 6,270 5,925 Jun-15 Mar-16 Jun-16 -5.5% -21.7% 1,208 1,174 1,165 Jun-15 Mar-16 Jun-16 -0,8% -3.5% 3.7% 2.0% 1H15 1H16 -170 bps 3.3% 0.2% 1H15 1H16 -310 bps
- 4. 4/17Investor Relations | 2Q16 | Revenue Mix 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 Product and Revenue Diversification Credit 47.3% Bank Guarantees 19.5% FICC 20.6% Pine Investimentos 6.1% Treasury 6.5% 1H16 Credit 68.9% Bank Guarantees 15.6% FICC 12.3% Pine Investimentos 3.1% Treasury 0% 1H15
- 5. 5/17Investor Relations | 2Q16 | Net Interest Margin NIM Main Impacts NIM Breakdown QoQ: Margin stability. YoY: - Lower revenue contribution from FICC - Lower loan portfolio proportion on total assets 3.3% 2.0% 2.0% 2Q15 1Q16 2Q16 0 bps. -130 bps. 2Q16 1Q16 2Q15 1H16 1H15 Financial Margin Income from financial intermediation 51 71 80 122 134 Overhedge effect (21) (38) (10) (60) 24 Income from financial intermediation 30 33 70 62 158
- 6. 6/17Investor Relations | 2Q16 | Expenses and Efficiency Ratio Personnel and Administrative Expenses Expenses and Efficiency Ratio Rigorous cost control. 22 20 21 17 16 16 44.9% 81.6% 86.7% -200% -150% -100% -50% 00% 50% 100% 0 5 10 15 20 25 30 35 40 2Q15 1Q16 2Q16 Personnel Expenses Other administrative expenses Recurring Efficiency Ratio (%) R$ million 2Q16 1Q16 2Q15 1H16 1H15 Personnel expenses 21 20 22 41 44 Other administrative expenses 16 16 17 32 35 Subtotal 37 36 38 73 79 Non-recurring expenses (3) (2) (2) (5) (3) Total 34 34 36 68 75 Employees1 337 344 389 337 389 1 Including outsourced ones
- 7. 7/17Investor Relations | 2Q16 | 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$6.3 billion... 1 -27.3% -5.1% 2 4,066 3,650 3,282 3,172 3,139 1,074 924 794 747 659 2,896 2,492 2,373 2,250 2,122 585 626 485 438 351 Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 Trade finance: 5.6% Bank Guarantees: 33.8% BNDES Onlending : 10.5% Working Capital: 50.1% 7,691 6,933 6,608 8,621 6,271
- 8. 8/17Investor Relations | 2Q16 | Continuous Loan Portfolio Management Sectors Rebalance ...with improved sector diversification. 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. 37%38%40%44%41% 7%7%5% 5% 5% 10%10%10% 7%9% 10%9%8%7%7% 12%12%13%12%10% 12%12%12%11% 9% 12%12%12%14%19% Jun-16Jun-15Jun-14Jun-13Jun-12 Sugar and Ethanol Energy Real Estate Engineering Agriculture Transportation and Logistics Others Sugar and Ethanol 12% Energy 12% Real Estate 12% Engineering 10% Agriculture 10% Transportation and Logistics 7% Telecom 5% Foreign Trade 4% Metallurgy 3% Retail 3% Specialized Services 2% Construction Material 2% Mining 2% Vehicles and Parts 2% Meatpacking 2% Food Industry 1% Other 11%
- 9. 9/17Investor Relations | 2Q16 | Main Sectors Sugar and Ethanol | Energy| Real Estate Sugar and Ethanol (12%) Energy (12%) Real Estate (12%) Exposure by Product Exposure by State Exposure by Product Exposure by Segment Exposure by Product Exposure by Segment Working Capital 66% Guarantees 21% BNDES Onlending 11% Trade Finance 2% Working Capital 66% Guarantees 21% BNDES Onlending 11% Trade Finance 2% Guarantees 63% Working Capital 26% BNDES Onlending 11% Wind Power 77% Transmitting 10% Equip. Supplier 9% SHPs UHEs 4% Working Capital 77% Guarantees 23% Residential Lots 42% Residential 31% Warehouse 12% Mall 11% Commercial 4% SP 65% MG 23% PR 7% GO 3% RS 2%
- 10. 10/17Investor Relations | 2Q16 | Main Sectors Engineering | Agriculture Engineering (10%) Agriculture (10%) Exposure by Product Exposure by Product Exposure by StateExposure by Segment Concession 36% Transporta -tion 32% Industrial 24% Oil and Gas 6% Energy 2% Working Capital 82% Guarantees 15% BNDES Onlending 3% Working Capital 79% BNDES Onlending 1% Trade Finance 13% Guarantees 7% MT 30% SP 33% BA 10% PR 6% MS 6% Others 15%
- 11. 11/17Investor Relations | 2Q16 | 6.6% 10.5% 13.8% 4.1% 4.9% 5.9% 00% 02% 04% 06% 08% 10% 12% -01% 01% 03% 05% 07% 09% 11% 13% 15% Jun-15 Mar-16 Jun-16 D-H Portfolio Coverage of Total Portfolio 80% 546% 167% 50.0% 250.0% 450.0% 650.0% Coverage D-H Overdue Portfolio 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 June 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 ~86% 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 Products Pledge 44% Receivables 13% Properties Pledge 42% Investments 2% 0.3% 0.3% 1.1% 2.1% 1.8% 1.2% 1.7% 0.7% 1.3% Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 AA-A 22.4% B 27.7% C 35.9%D-E 9.2% F-H 4.7%
- 12. 12/17Investor Relations | 2Q16 | June 30th, 2016 Fixed income: Fixed, Floating, Inflation, Libor Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Commodities, Sugar, Soybean ( Grain, Meal and Oil), Corn, Cotton, Metals, Energy R$ million FICC Solid trackrecord. Client Notional Derivatives by Market Market Segments Notional Value and MtM Portfolio Profile Scenario on June 30th, 2016: Duration: 174 days Mark-to-Market: R$ 212 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MtM : R$ 315 million Commodities 22% Fixed Income 15% Currencies 62% 7.948 3.270 4.941 4.845 2.968 366 560 479 398 212 33 894 160 (171 ) 315 Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 Notional Amount MtM Stressed MtM
- 13. 13/17Investor Relations | 2Q16 | R$ million Pine Investimentos Fee Generation Selected Transactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions. Research: Macro and Commodities. 9th largest bank in fixed income market, and the 5nd player in short-term transactions. 6 6 1H15 1H16 December, 2015 CRI R$21,300,000 Lead Coordinator December, 2015 Bridge Loan R$18,000,000 Coordinator R$25,000,000 October, 2015 Promissory note Lead Coordinator Lead Coordinator October, 2015 Project Finance R$7,500,000 April, 2016 CPR R$10,000,000 Lead Coordinator April, 2016 Promissory Note R$20,000,000 Lead Coordinator April, 2016 Structure CCB R$35,000,000 Lead Coordinator May, 2016 CPR R$25,500,000 Lead Coordinator June, 2016 CPR R$22,700,000 Lead Coordinator
- 14. 14/17Investor Relations | 2Q16 | R$ million Funding Diversified sources of funding... 47% 41% 53% 53% 52% Cash over Deposits 951 853 841 787 648 291 343 324 348 261 1,322 1,321 1,570 1,662 1,939 197 359 336 218 15618 33 18 17 19 1,091 952 806 759 668 476 207 295 284 296 787 764 751 761 734 272 318 279 244 216 819 1,022 1,029 777 680 735 545 113 61 39 605 692 497 352 270 7,564 7,409 6,859 6,270 5,925 Jun-15 Sept Dec-15 Mar-16 Jun-16 Trade Finance: 4.5% Private Placements: 0.7% Multilateral Lines: 11.5% International Capital Markets: 3.6% Financial Letter : 12.4% Local Capital Markets: 5% Onlending: 11.3% Demand Deposits: 0.3% Interbank Time Deposits: 2.6% High Net Worth Individual Time Deposits: 32.7% Corporate Time Deposits: 4.4% Institutional Time Deposits: 10.9%
- 15. 15/17Investor Relations | 2Q16 | 37% 39% 45% 48% 51% 63% 61% 55% 52% 49% Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 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$ millionR$ billion 6,2707,564 7,409 6,859 5,925 Asset and Liability Management (ALM) 76% 70% 66% 69% 70% Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 1.2 0.7 4.7 0.0 1.2 0.6 Assets 0.1 0.3 3.7 2.9 0.5 0.9 Liabilities 8.4 8.4 Coverage of 125% 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 7.1x 6.5x 6.0x 5.6x 5.4x 4.7x 4.4x 3.9x 3.7x 3.6x - 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 Expanded loan Porfolio Loan Portfolio excluding Bank Guarantees
- 16. 16/17Investor Relations | 2Q16 | Capital Adequacy Ratio (BIS), Basel III BIS ratio of 15.9%, being 15.4% in Tier I Capital. 12.3% 12.2% 14.1% 14.7% 15.4% 0.8% 0.9% 0.9% 0.4% 0.5% 13.1% 13.1% 15.0% 15.1% 15.9% Jun-15 Sept-15 Dec-15 Mar-16 Jun-16 Tier II Tier I Minimum Regulatory Capital (10,5%)
- 17. 17/17Investor Relations | 2Q16 | 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. 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 ir@pine.com Investor Relations