2. Disclaimer
This presentation may contain references and statements representing future expectations,
plans of growth and future strategies of BI&P. These references and statements are based on
the Bank’s assumptions and analysis and reflect the management’s beliefs, according to
their experience, to the economic environment and to predictable market conditions.
As there may be various factors out of the Bank’s control, there may be significant
differences between the real results and the expectations and declarations herewith
eventually anticipated. Those risks and uncertainties include, but are not limited to our
ability to perceive the dimension of the Brazilian and global economic aspect, banking
development, financial market conditions, competitive, government and technological
aspects that may influence both the operations of BI&P as the market and its products.
Therefore, we recommend the reading of the documents and financial statements available
at the CVM website (www.cvm.gov.br) and at our Investor Relations page in the internet
(www.bip.b.br/ir) and the making of your own appraisal.
1
3. Highlights
• Expanded Credit Portfolio grows 8.9% during 1Q12 and 38.4% in 12 months, reaching R$2.8 billion.
Corporate segment already responds for 35% of Credit Portfolio.
• Continuous improvement in credit quality: Loans rated from AA to B up from 69.9% in 4Q11 to 75.3% in
1Q12 (vs. 62.3% in 1Q11).
• Agro Bonds Portfolio (CPR, CDA/WA e CDCA) reaches R$230 million, up 77.6% in the quarter, and
contributes to a more efficient funding mix through the issuance of Agribusiness Letters of Credit (LCAs).
• Funding follows the credit portfolio growth adding up to R$2.7 billion. The higher volume of funds obtained
through the issuance of LCAs and a marginal decline in cost of our time deposits (CDB) contributed to a
reduction in funding costs in Real of 0.9% of CDI during the quarter.
• Income from Services (Fees) grew by 90.1% compared to same quarter last year totaling R$6.6 million in the
quarter, reflecting the trend to add up higher value added products to our client offering.
• Net Profit in the quarter was R$5.0 million. This result is yet below the potential of the bank but it is aligned
to the Management’s forecast taking into consideration our leverage level, the seasonality of the first
quarter and the increased allowance for loan losses expenses of R$14.4 million in the period, still derived
from loans originated before 2011. The Efficiency Ratio and NIM followed the positive trend of the previous
quarters.
• Our Basel Ratio at 18.1% (Tier 1) is still one of the highest in the industry, allowing a high portfolio growth in
2012.
• On March 1st, our shares started trading at Level 2 Corporate Governance at BM&FBOVESPA.
2
4. Expanded Credit Portfolio
Growth with a broader product range
2,759
2,534
2,248
1,994 2,109
R$ million
1Q11 2Q11 3Q11 4Q11 1Q12
Loans & Discounted Receivables in Reais Trade Finance
Garantuees Issued (L/G and L/C) Agricultural Bonds (CPR, CDA/WA and CDCA)
Private Credit Bonds (PNs and Debentures)
3
5. Expanded Credit Portfolio Evolution
Increasing volume of new operations
646 2,759
2,534 (281)
(85) (55)
R$ million
4Q11 Credits received Credit Write Offs New 1Q12
and not exits operations
renewed New Operations
656 646
498
414
R$ miliion
298
1Q11 2Q11 3Q11 4Q11 1Q12
4
6. With Multiproduct Offering
50+ Financial Products Portfolio
• New products launched in the
quarter:
– Offshore Loan
– Real State Letter of Credit (LCI)
– Cash Flow Swap
– Commodities Options
• Revenues from Services (Fees), up
90% compared to 1Q11, to R$6.6
million in the quarter.
• Fee income from products launched
in the last year represented 25% of
revenues from services rendered in
1Q12, and 5% in 4Q11.
5
7. Expanded Credit Portfolio
Breakdown by Product Group
• Loans & Discounted Receivables in Real ended the
quarter at R$1.5 billion.
• Trade Finance portfolio totaled R$442.8 million
Loans & (US$243.0 million), slightly contracted in the
Discounts
Trade quarter due to changes in the foreign exchange
in Real
56% Finance rate.
16%
• BNDES Onlendings amounted to R$231.1 million,
up 11.6% in 1Q12, mainly in Corporate segment.
BNDES
Onlendings • Guarantees and Letters of Credit issued totaled
9%
R$163.8 million, increasing 17.2% in 1Q12.
Receivables
Aquired • Agricultural Bonds portfolio (Agro Product
Other
Private 1% from Certificate - CPR, Inventory Financing - CDA/WA,
Agricultural Customers and Certificate of Agro Credit Rights - CDCA),
Credit
Bonds Guarantees 3%
Bonds started in 1Q11, increasing by 77.6% in the
8% Issued
1%
6% quarter, amounting to R$229.7 million.
• Private Credit Bonds (Promissory Notes and
Debentures) totaled R$25.5 million, up 145%
compared to the previous quarter.
6
8. Agricultural Bonds Portfolio
Specializing in Agribusiness
• Agricultural bonds activity started in 1Q11 through
Agricultural Bonds the acquisition of the portfolio of the subsidiary
230
Serglobal.
129 • Due to their negotiability, Agro Product Certificate
R$ million
52 (CPR) and Inventory Financing (CDA/WA) are
28 37
classified as Marketable Securities, in available-for-
sale category; and Certificate of Agro Credit Rights
1Q11 2Q11 3Q11 4Q11 1Q12
(CDCA) are recorded in Loans & Discounted
CPR Warrant (CDA/WA) CDCA Receivables in the credit portfolio.
That activity is directly related to the performance of Brazilian agribusiness, with high
growth prospects and contribution to the expansion and profitability of our business,
including the reduction in funding cost through the Agribusiness Letters of Credit (LCA).
7
9. Credit Portfolio
Strategy for equilibrium between Corporate and Middle Market segment maintained
Middle Market
companies with annual revenues between
• Middle Market segment accounts for 63% of
R$40 million and R$400 million Credit Portfolio (69% in 4Q11), down 4.5% in the
quarter and 3.4% in 12 months.
1,554 1,604 1,593 1,572 1,501
• Corporate clients accounts for 35% of Credit
R$ million
Portfolio (28% in 4Q11), increasing by 29.5% in
1Q12 and 210.9% in 12 months.
1Q11 2Q11 3Q11 4Q11 1Q12
• Average Exposure by Client:
Corporate – Middle Market = R$2.9 million
– Corporate = R$5.6 million
companies with annual revenues between
R$400 million and R$2 billion
The previously disclosed strategy of maintaining
831
the Corporate / Middle Market credit portfolio mix
R$ million
641
322 436
267 at 45% / 55% until the end of 2012 maintained.
1Q11 2Q11 3Q11 4Q11 1Q12
Note: In addition to the Agro Bonds, the Private Credit Bonds, the Guarantees Issued and the above operations in Middle Market and
Corporate portfolios, the Credit Portfolio also includes Other Credits (CDC Vehicles, Acquired Loans and Financing, and Non-Operating
Asset Sales Financing), which totaled R$54.2 million in 1Q12.
8
10. Credit Portfolio + Agricultural Bonds
Significant presence of Agribusiness and Food related activities
Agribusiness
7% Agribusiness - Agricultural Bonds
1%1% 16%
1% Civil Construction
2%
2% Food & Beverage
2% Automotive
Pulp & Paper
3%
Textile, Apparel and Leather
9%
3% Transportation & Logistics
Chemical & Pharmaceutical
3%
Metal Industry
Power Generation & Distribution
3% Financial Institutions
Education
3% Oil & Biofuel
13%
Financial Services
4% Advertising and Publishing
Retail & Wholesale
4%
Individuals
4% Non-Financial Holdings
5% 13%
Other Industries
9
11. Credit Portfolio
Exposure by Client and Term of Transations
Client Concentration Maturity
10 largest
Other 16% +360 days
25% 26%
Up 90 days
40%
11 - 60
largest 181 to 360
61 - 160 days
largest 33%
16% 91 to 180
26% days
18%
Top 60 borrowers remain at 49% of Credit Portfolio (52% in 1Q11).
74% of Credit Portfolio to mature up to 360 days.
10
12. Credit Portfolio Quality
Higher quality of new operations
Rating NPL / Credit Portfolio
92%
6.8%
1Q12 4% 39% 32% 17% 8% 6.1% 6.3%
5.0%
90%
6.3% 3.2%
4Q11 2% 40% 28% 20% 10%
4.6% 4.7%
4.1%
85% 2.7%
1Q11 2% 35% 25% 23% 15%
1Q11 2Q11 3Q11 4Q11 1Q12
AA A B C D-H NPL 60 days NPL 90 days
• 92% of Credit Portfolio are classified between AA and C, out of which 75% between AA e B.
• 97% of the operations disbursed in 1Q12 were classified between AA and B.
• At the end of 1Q12, credits rated between D and H included:
– R$119.5 million in normal payment course = 5.0% of credit portfolio, and
– R$75.1 million overdue more than 60 days = 3.2% of credit portfolio.
• Allowance for Loan Losses covers 156% of credits overdue more than 90 days.
• R$55 million of fully provisioned H rated loans were written off during the quarter.
11
13. Funding
Cost reduction through diversified sources
2,736 • Funding volume increased 8% in the quarter, to
2,420 2,533
2,247 2,230 R$2.7 billion, highlighting time deposits (CDBs).
• Funding from Agribusiness Letters of Credit (LCA)
R$ million
increased by 36% in 1Q12 due to the growth in
agricultural bonds portfolio (Agro Product
Certificate - CPRs).
1Q11 2Q11 3Q11 4Q11 1Q12
in Reais in Foreign Currency • Reduction of 0,9% of CDI (benchmark rate) in local
funding cost during the quarter, for higher volume
Insured
of LCAs issued and marginal drop in time deposits
Time Time (CDB) cost derived from depositor base
Deposits Deposits
(CDB) diversification with improved risk perception.
(DPGE) Agro &
30% 29% Financial
Notes
• 90% of foreign currency funding is related to Trade
(LCA/LF) Finance portfolio.
11%
Onlendings Demand
9% Interbank Deposits
Foreign
Borrowings Deposits 2%
15% 4%
12
14. Performance
NIM and Efficiency Ratio
NIM
• NIM remained unchanged since credit portfolio
6.3% 6.6% 6.6% growth occurred mainly at the end of the
5.9%
5.2%
quarter, with increased Corporate segment
share in the portfolio.
4.6% 4.6% 4.8% 4.9%
3.7%
1Q11 2Q11 3Q11 4Q11 1Q12 • Improvement of Efficiency Ratio, given that the
standardized ratio dropped by 3.0 pp. Despite
NIM NIM(a) *
the positive trend, the ratio still remains high by
(i) the low leverage and (ii) fee income still
Efficiency Ratio under the expected level for next quarters.
78.6% 78.6% 77.6%
71.2% 68.1%
No significant headcount additions are
73.3% 76.1%
71.0% 70.9% 68.0% forecasted, thus business growth tends to
dilute administrative expenses.
1Q11 2Q11 3Q11 4Q11 1Q12
Efficiency Ratio Standardized Efficiency Ratio **
* NIM(a) adjusts remunerated average assets by repos with equivalent volumes, tenors and rates both in assets and liabilities.
** Standardized Efficiency Ratio includes management adjustments in order to (i) eliminate non-recurring revenues and
expenses; (ii) standardize personnel expenses, contributions and profit-sharing pro rata temporis; and (iii) exclude sales
revenues and costs of agricultural commodities from the activity of the acquired subsidiary of Sertrading to determine the
13 efficiency ratio of the financial activity.
15. Profitability
Net Profit • Net Profit does not yet evidence the credit portfolio
growth and it was particularly affected by the
increase in expenses with allowance for loan losses
for there was no relevant credit recoveries over the
10.3
7.3 quarter.
R$ million
5.1 5.0
• 1Q11 result was mainly affected by the increase of
R$101.6 million in allowance for loan losses in that
1Q11 2Q11 3Q11 4Q11 1Q12 quarter, in order to protect Bank’s future profitability
-31.7 from expected default.
Return on Average Equity (ROAE) % Retorn on Average Assets (ROAA) %
7.3
1.0
5.2 0.7
3.6 3.5 0.5 0.5
1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 4Q11
14
16. Capital Structure
Shareholders’ Equity Leverage
Expanded Credit Portfolio /
563.7 566.5 577.5 577.1 590.5 Shareholders’ Equity
4.4x 4.6x
3.5x 3.7x 3.9x
R$ million
1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12
Basel Index (Tier I)
23.7% • Capital Adequacy Index (Basel II) and low
21.6% 21.1%
18.2% 18.1% leverage allow healthy portfolio growth.
• Disciplined strategy and business goals
monitoring for efficient and profitable growth.
1Q11 2Q11 3Q11 4Q11 1Q12
15
17. Ratings
Agency Rating Last Report
Global: BB/ Estável/ B
Standard & Poor’s December 2011
National: brA+/ Stable/ brA-1
Global: Ba3/ Stable/ Not Prime
Moody’s November 2011
National: A2.br/ Stable/ BR-2
FitchRatings National: BBB/ Stable/ F3 December 2011
Índice: 10,08
RiskBank April 2012
Low risk to short term
16
18. Shares and Capital Distribution
Number of Shares Shareholders’ Distribution
Class
Common Preferred Total Individuals
20% Controlling
Capital Social 36,945,649 26,160,044 63,105,693 Group
34%
Controlling Group 20,743,333 630,626 21,373,959
Management 277,307 60,125 337,432
Management
Treasury - 734,515 734,515 1%
Foreign
Free Float 15,925,009 24,734,778 40,659,787 Investors Treasury
30% 1%
Free Float 43.1% 94.6% 64.4% Institutional
Investors
Position as of March 31, 2012.
14%
2008 2009 2010 2011
Outstanding Shares 1 43,000,001 42,048,101 40,466,187 62,358,840
IOE gross amount (R$ million) 25.5 27.0 25.1 27.8
IOE gross amount per share (R$ million) 0.59 0.64 0.61 0.53
Price to Book Value 0.38 0.81 0.75 0.73
Market Value (R$ million) 171.6 348.6 321.7 420.9
1 Issued Shares (-) Treasury Shares
17
19. Share Performance
110
100
90
80
70
IBOVESPA IDVL4 IDVL4 adjusted for earnings
60
IDVL4 IDVL4
Share Price 12.29.2011 R$ 6.75 Average Daily Volume
Share Price 03.30.2012 R$ 8.60 - in March 2012 R$ 156,782
Change in the period + 27.4% - in 1Q12 R$ 193,840
Maximum Share Price R$ 8.90 - in 12 months R$ 216,676
Minimum Share Price R$ 6.41
Market Value in 03.30.2012 R$ 536,286,024
Price to Book Value 0.9
18