Banco BI&P Earnings Release - 3rd Quarter 2013

1. EARNINGS RELEASE
3rd QUARTER 2013
Investment platform ‘guide’ launched
Managerial ALL expenses in the quarter (annualized) was 0.75%, compared to 1.1% in
the previous quarter, reflecting the quality of Banco BI&P’s credit portfolio
Highlights
IDVL4: R$5.71 per share
Closing: November 12, 2013
Outstanding Shares: 74.698.289
Market Cap: R$426.5 million
Price/Book Value: 0.74
Conference Call / Webcasts
13/11/2013
In English
10 a.m. (US EST) / 1 p.m. (Brasília)
Connections
Brazil: +55 11 4688-6361
EUA: +1 786 924-6977
Code: Banco BI&P
In Portuguese
9 a.m. (US EST) / 12 p.m. (Brasília)
Number: +55 11 4688-6361
Code: Banco BI&P
• Volume of origination by the Banco BI&P commercial team: the Expanded
Credit Portfolio, including the loans assigned to Banco Intercap, totaled
R$3.4 billion, up 3.9% in the quarter and 12.2% from September 2012.
Including the Banco Intercap portfolio, the consolidated Expanded Credit
Portfolio totaled R$3.6 billion, representing growth of 21.5% in the year.
• The Emerging Companies and Corporate segments accounted for
48.7% and 50.5%, respectively, of the expanded credit portfolio of Banco
BI&P.
• Loans rated between AA and B corresponded to 84.5% of the expanded
credit portfolio of Banco BI&P. Noteworthy are the loans granted during the
period: 99.9% were rated between AA and B
• The Managerial Expense with Allowance for Loan Losses (ALL) in
3Q13 (annualized) was 0.75% of the expanded credit portfolio (1.1% in
2Q13), in line with the conservative credit policy adopted by the Bank and
lower than Management’s expectations.
• Funding volume totaled R$3.1 billion and Free Cash totaled R$657.9 million
at the end of 3Q13, in line to the growth of the loan portfolio.
• Adjusted Revenue from Credit Operations and Agro Bonds (CPR),
(see page 7), which reflects the Bank's core business, totaled R$78.0 million
in the period, increasing 12.7% in the quarter and 32.7% in 12 months.
• Income from Services Rendered, which includes fees for structuring
corporate finance operations, increased 16.7% in 3Q13 and 31.6% in 12
months.
• Net Income from the quarter was R$2.0 million, mainly due to the increase
in revenues from credit operations and agro bonds (CPR).
Website
www.bip.b.br/ir
• In the beginning of November, we announced the launch of guide
investimentos, which will provide asset management services for highincome individuals through an investment platform that includes investment
consulting and advice, financial content and intelligence, and a tailor-made
product offering selected by analysts and economists.
• On November 4, 2013, we concluded the acquisition of Banco Intercap
S.A. and, consequently, announced a capital increase of R$107 million,
to be subscribed by the shareholders of Banco Intercap. Messrs. Roberto de
Rezende Barbosa and Afonso Antônio Hennel will join the Bank BI&P’s
controlling group, and also, after approval by the extraordinary shareholders’
meeting, the Board of Directors of the Bank as Vice Chairman and Director,
respectively.
BI&P - Banco Indusval & Partners is a commercial bank with more than 45 years of experience in the financial market, focusing on local and foreign
currency, fixed income and corporate finance for companies. BI&P relies on a network of 10 branches strategically located in economically relevant
Brazilian regions, including an offshore branch in Cayman Islands, its brokerage firm operating at the São Paulo Stock, Commodities and Futures
Exchange - BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which originates agricultural bonds.
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2. EARNING RELEASE
rd
3 QUARTER 2013
Summary
Message from Management ................................................................................................. 3
Macroeconomic Scenario ..................................................................................................... 4
Key Indicators ................................................................................................................... 5
Operating Performance ....................................................................................................... 6
Credit Portfolio .................................................................................................................. 9
Funding .......................................................................................................................... 14
Free Cash ....................................................................................................................... 15
Capital Adequacy ............................................................................................................. 15
Credit Ratings.................................................................................................................. 15
Capital Markets ................................................................................................................ 16
Balance Statement ........................................................................................................... 18
Income Statement .......................................................................................................... 20
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3. EARNING RELEASE
rd
3 QUARTER 2013
Message from the Management
In the third quarter, we concluded a few more stages of the cycle of changes we rolled out in 2011, with the
Bank’s commercial area maintaining the brisk pace in originating quality assets, and the
investment banking area working on a robust pipeline. The idea behind these measures is to gain scale
and drive revenue and fee generation.
In November 2013, we launched ‘guide investimentos’, an innovative investment platform that broadens the
scope of activity of our brokerage arm. The investment platform, which includes investment consulting and
advice, product offerings selected by analysts and economists, financial content and intelligence, and a tailormade offering for each client, was developed over the past 12 months for high-income individual investors. With
‘guide investimentos’, we plan to expand our distribution capacity for investment products, diversify our funding
sources and increase our revenue and fee sources.
This month we also concluded the acquisition of Banco Intercap, announced in June this year. Consequently,
we announced a capital increase of R$107.5 million, which will be subscribed to by the shareholders of Banco
Intercap and which will increase the capital stock of Banco BI&P to R$769.8 million. Messrs. Roberto de Rezende
Barbosa and Afonso Antônio Hennel will join the Bank BI&P’s controlling group, and also, after approval by the
extraordinary shareholders’ meeting, the Board of Directors of Banco BI&P as Vice Chairman and Director,
respectively.
This quarter, Banco BI&P’s commercial area once again demonstrated its excellent capacity to originate quality
assets, which resulted in the Expanded Credit Portfolio, which includes loans assigned to Banco Intercap,
growing 3.9% in the quarter and 12.2% in 12 months to reach R$3.4 billion. Loans to Emerging companies
corresponded to 48.7% and loans to the Corporate segment accounted for 50.5%. The expanded credit
portfolios of Banco BI&P and Banco Intercap jointly amounted to R$3.6 billion at the close of the quarter. In the
past 12 months, the consolidated portfolio grew 21.5%.
Thanks to the more conservative lending policy we adopted in 2011, the managerial expense with allowance for
loan losses (ALL) in the quarter corresponded to 0.75% (annualized) of the expanded credit portfolio, which was
lower than management’s expectations, reflecting our stricter criteria for loan origination and management.
The investment bank operation has been integrating with other areas of the Bank. During the quarter, we had 52
ongoing M&A and funding mandates, apart from the over 65 proposals already made to potential clients.
Result from financial intermediation before allowance for loan losses increased from R$2.4 million in 2Q13 to
R$46.0 million in 3Q13, mainly due to the increase in revenues from credit operations and agro bonds (CPR),
from R$69.2 million in 2Q13 to R$78.0 million in 3Q13. Driven by this result, and with operating expenses strictly
under control, we posted net income of R$2.0 million in the quarter.
We continued to diversify our funding sources, with funding through agribusiness letters of credit (LCA) and real
estate notes (LCI) increasingly sharply, from 12.6% of total funding in September 2012 to 22.0% in September
2013. The number of investors also increased sharply during the period, from around 1,200 to 2,700.
The Bank has started registering more stable results in the third quarter, thanks to the growth of the credit
portfolio, absence of additional provisions and recurring revenues from structuring fee and derivatives for clients.
Funding client base has been increased as well as funding through securities exempt from income tax for
individuals, such as LCAs and LCIs. The phase of changes and establishment of new areas was concluded with
the acquisition of Banco Intercap and the launch of ‘guide investimentos’. Our objective remains to gain scale
based on a solid foundation, with growing impact on our profitability.
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4. EARNING RELEASE
rd
3 QUARTER 2013
Macroeconomic Scenario
July was marked by the announcement of negative data about business activity and overall confidence, reflecting
the street protests across Brazil and the uncertain scenario abroad. However, this gloom surrounding the
economic scenario improved during the third quarter, backed by surprisingly positive data about the job market.
The continuation of the unemployment rate at historical lows has been the result of the higher-than-expected
performance of the services and business sectors. On the other hand, industry continued to deliver weak results
between July and September, pushing economic growth projections for the third quarter to almost zero, with a
negative bias, after the solid growth between April and June. During the coming months, the Brazilian
government’s handling of the auctions for infrastructure concessions and the consequent growth of investments
will be fundamental for improving the expectations of market players and for the country’s economic growth.
Even in an environment of moderate economic activity, inflation remains at uncomfortably high levels, with the
Extended National Consumer Price Index (IPCA) well above the center of the target of 4.5%. After exceeding the
target ceiling at the end of the second quarter, the price index dropped significantly in July due to seasonal
factors and the withdrawal of the hike in public transport fares. Nevertheless, it once again increased towards
the end of the third quarter, indicating that this trend should continue through the closing months of the year.
To contain these pressures on prices, the Brazilian Central Bank continued its monetary tightening cycle, raising
the basic interest rate (Selic) to 9.0% p.a. and signaling that this cycle should continue at the upcoming
meetings of the Monetary Policy Committee to be held later this year.
In the foreign exchange market, July and August were marked by high volatility of the U.S. dollar caused by the
market’s fears that the U.S. Federal Reserve would start scaling down its monetary stimulation policy in
September. These fluctuations and the consequent depreciation of the Brazilian real against the dollar forced the
Brazilian Central Bank to implement a policy of daily intervention in the exchange market until the year-end. This
supply of exchange swaps, combined with the Federal Reserve’s decision to continue its monetary policy,
reduced exchange volatility and brought the dollar to close to R$2.20.
Credit volume in Brazil’s national financial system grew 9.7% until September 2013 to reach R$2.597 trillion.
Credit volume growth in 12 months was 15.7%, with the average loan term increasing from 80.6 months in
September 2012 to 96.7 months in September 2013. Credit as a percentage of GDP ended September at 55.5%,
higher than 55.2% at the end of June, and has remained above 50% since May 2012.
Default in the individuals segment dropped from 8.1% in the first quarter of 2012 to 7.0% this quarter, while
corporate default declined from 3.7% to 3.4%. These marginal improvements in default rates are the result of
the more selective approach to credit adopted by Brazilian banks.
Macroeconomic Data
3Q12
2Q13
3Q13
2013e
Real GBP Growth (Q/Previous Q)
0.4%
1.5%
0.0% (e)
2.5%
Inflation (IPCA - IBGE) – quarterly change
1.4%
1.2%
0.6%
5.8%
Inflation (IPCA - IBGE) – annual change
5.3%
6.7%
5.9%
5.8%
FX (US$/R$) – quarterly change
2.1%
10.1%
-0.4%
7.4%
Interest Rate (Selic)
7.5%
8.0%
9.0%
10.0%
e= expected
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5. EARNING RELEASE
rd
3 QUARTER 2013
Key Indicators
The financial and operating information presented in this report are based on consolidated financials prepared in millions of
Real (local currency), according to Brazilian GAAP (BRGAAP), except were otherwise stated.
Results
3Q13
Loan Operations & Agro Bonds (CPR) adjusted 1
Effect of recoveries and discounts
1
2Q13 3Q13/2Q13
78.0
69.2
12.7%
3Q12 3Q13/3Q12
9M13
9M12 9M13/9M12
58.8
32.7%
207.9
207.5
0.2%
1.4
(9.2)
115.3%
4.1
-65.5%
(10.0)
3.7
n.c.
46.9
46.6
0.6%
64.2
-26.9%
138.1
274.7
-49.7%
Effect of discontinuance of hedge accounting
(0.1)
(13.6)
-98.9%
4.6
-103.2%
(29.3)
30.4
-196.4%
Financial Intermediation Expenses (w/o ALL)
(80.2)
(90.6)
-11.5%
(83.3)
-3.7%
46.0
2.4
n.c.
48.4
-5.1%
71.1
(6.7)
(0.1)
n.c.
(11.9)
-43.9%
(140.2)
(48.9)
186.8%
39.3
2.2
n.c.
36.5
7.5%
(69.1)
109.9
-162.9%
19.5%
(101.9)
(84.8)
20.1%
-26.5% (171.0)
25.1
n.c.
(1.0)
(0.3)
274.7%
Revenues from Securities (w/o CPR), Derivatives & FX
Result from Financial Int. before ALL
ALL Expenses
2
Result from Financial Intermediation
Net Operating Expenses
(235.7) (357.5)
158.8
-34.1%
-55.2%
(32.3)
(35.7)
-9.4%
(27.0)
7.0
(33.4)
120.9%
9.5
(0.7)
(0.4)
86.1%
0.0
Operating Result
6.3
(33.8)
118.7%
9.5
-33.6% (172.0)
24.8
n.c.
Net Profit (Loss)
2.0
(20.6)
109.7%
3.1
-36.1% (110.1)
10.6
n.c.
Recurring Operating Result
Non-Recurring Operating Expenses
Assets & Liabilities
Loan Portfolio
3Q13
3
2,549.0
Expanded Loan Portfolio 3 4
2Q13 3Q13/2Q13
2,587.8
3,355.2 3,228.7
Cash & Short Term Investments
-1.5%
n.c.
3Q12 3Q13/3Q12
2,548.4
0.0%
3.9% 2,990.9
12.2%
179.8
Securities excl. Agro. & Private Credit Bonds 5
Total Assets
297.3
-39.5%
955.1
-81.2%
1,278.7
Securities and Derivatives
1,056.5
21.0%
613.1
108.6%
673.1
626.5
7.4%
338.1
99.1%
-0.6% 4,337.1
-3.8%
4,171.0 4,198.2
Total Deposits
2,391.2
2,427.8
-1.5%
2,194.5
9.0%
Open Market
107.5
176.1
-39.0%
597.2
-82.0%
Foreign Borrowings
365.3
366.0
-0.2%
432.0
-15.4%
Domestic Onlendings
325.4
348.6
-6.6%
309.3
5.2%
Shareholders’ Equity
574.5
569.6
0.9%
587.6
-2.2%
Performance
3Q13
2Q13 3Q13/2Q13
3Q12 3Q13/3Q12
Free Cash
657.9
660.7
-0.4%
628.7
4.6%
NPL 60 days/ Loan portfolio
2.9%
2.6%
0.3 p.p.
3.1%
-0.2 p.p.
NPL 90 days/ Loan portfolio
9M13
9M12 9M13/9M12
2.6%
2.1%
0.6 p.p.
1.9%
0.7 p.p.
14.5%
14.6%
-0.1 p.p.
15.8%
-1.3 p.p.
1.4%
-14.6%
16.0 p.p.
2.2%
-0.8 p.p.
0.0%
0.0%
0.0 p.p.
5.6%
3.2%
2.4 p.p.
5.8%
-0.2 p.p.
4.7%
5.9%
-1.3 p.p.
Efficiency Ratio
84.0%
474.9%
n.c.
69.7%
14.3 p.p.
1.5 p.p.
65.8%
81.3 p.p.
Other Information
3Q13
Basel Index
ROAE
Adjusted Net Interest Margin (NIMa)
6
2Q13 3Q13/2Q13
3Q12 3Q13/3Q12
Number of Corporate Clients
865
874
-1.0%
774
-11.8%
Number of Employees
437
448
-2.5%
423
-3.3%
376
390
-3.6%
388
-3.1%
61
58
5.2%
35
-74.3%
Banco BI&P and Voga employees
Brokerage house and Serglobal employees
n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero).
Details in the respective sections of this report:
1
Excluding (i) revenues from recovery of loans written off, and (ii) discounts granted upon settlement of operations in the period. More
details in the Profitability section of this report.
2
Including additional provisions.
3
Including credits assigned to Banco Intercap.
4
Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and Agro Securities (CDCA, CDA/WA and CPR).
5
Excluding Agro Securities (CPRs and CDA/WA) and Private Credit Bonds (PNs and debentures) for trading.
6
Excluding (i) repos with equivalent volumes, tenors and rates both in assets, and (ii) effects of the discontinuance of the treatment of hedge
accounting, and also discounts granted in operations settled in the period.
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6. EARNING RELEASE
rd
3 QUARTER 2013
Operating Performance
Financial Intermediation Result
before Allowance for Loan Losses
R$ million
48.5
44.3
46.047.7
44.8
10.6
26.9
22.8
R$ million
48.4 45.6
Net Profit
3Q12
4Q12
1Q13
2Q13
3Q13
3.1
3.6
3Q12
2.4
4Q12
Financial Intermediation Result before ALL
Financial Intermediation Result before ALL adjusted *
2.0
1Q13
2Q13
3Q13
9M12 9M13
-91.4 -20.6
Expanded Credit Portfolio
-110.1
Funding
5.0%
2.9
3.1
3.2
3.4
1Q13
2Q13
3Q13
3.0
3.2
3.1
3.1
4Q12
1Q13
2Q13
3Q13
R$ billion
R$ billion
3.0
4Q12
3.0
3Q12
3Q12
Credits assigned to Banco Intercap
Private Credit Bonds (PNs and Debentures)
Agro Bonds (CPR, CDA/WA and CDCA)
Guarantees Issued
Trade Finance
Loans and Financing in Real
Total
Trade Finance & Foreign Borrowings
Domestic Onlending
Interbank & Demand Deposits
Agro Bonds, Bank & Real Estate Notes
Insured Time Deposits (DPGE)
Profitability
Financial Intermediation
3Q13 2Q13 3Q13/2Q13
Financial Intermediation Revenues
126.2
93.0
78.0
69.2
12.7%
58.8
32.7%
207.9
207.5
Effects recoveries and discounts *
1.4
(9.2)
115.3%
4.1
-65.5%
(10.0)
3.7
n.c.
Loan Operations and Agro Bonds
79.4
60.0
32.4%
62.9
26.3%
198.0
211.2
-6.3%
68.7
49.5
38.9%
49.1
39.9%
165.6
173.7
-4.6%
Financing
7.7
8.8
-12.3%
7.9
-2.2%
23.3
21.8
6.8%
Other
3.0
1.7
75.2%
5.9
-49.1%
9.0
15.7
-42.6%
Loan Operations and Agro Bonds (CPR) adjusted *
Loans, Discount Receivables and Agro bonds (CPR)
Securities (w/o agro bonds (CPR))
Derivatives
3Q12 3Q13/3Q12
35.7% 131.7
-4.2%
12.5
71.2%
53.4
-60.0%
50.9
221.2
-77.0%
137.8%
4.7
-37.8%
(2.9)
6.5
-144.0%
60.8
77.4
-21.4%
235.7 357.5
-34.1%
22.4
28.3
-20.9%
10.6
111.0%
90.6
-11.5%
83.3
-3.7%
Interbank Deposits
Agro (LCA), Real Estate (LCI) & Bank Notes (LF)
Loans, Assignments & Onlending
Foreign Borrowings
Domestic Borrowings & Onlending
0.2%
(7.8)
80.2
Repurchase Transactions
-40.6%
2.9
Financial Intermediation Expenses
Time Deposits
306.8 516.3
21.4
FX Operations Result
Money Market Funding
9M13 9M12 9M13/9M12
56.4
53.0
6.5%
69.2
-18.5%
162.7
273.9
40.8
40.4
0.9%
37.3
9.5%
122.0
123.3
-40.6%
-1.0%
2.7
3.0
-12.8%
22.7
-88.3%
10.3
121.3
-91.5%
-70.4%
0.6
0.8
-32.3%
2.4
-76.4%
2.6
8.9
12.4
8.7
42.8%
6.9
81.4%
27.7
20.3
36.2%
23.2
37.6
-38.2%
14.0
65.5%
72.5
83.6
-13.3%
18.3
32.2
-43.1%
8.5
115.6%
57.4
70.3
-18.2%
12.8%
4.9
5.4
-9.1%
5.5
-11.6%
15.1
13.3
0.5
0.0
n.c.
0.0
n.c.
0.5
0.0
n.c.
Gross Result from Fin. Interm. before ALL
46.0
2.4
n.c.
48.4
-5.1%
71.1 158.8
-55.2%
Allowance for Loan Losses (ALL)
(6.7)
(0.1)
n.c.
(11.9)
Gross Result from Financial Intermediation
39.3
2.2
n.c.
36.5
Sales operations/transfer of financial assets
*
-43.9% (140.2)
(48.9)
186.8%
7.5% (69.1) 109.9
-162.9%
Excluding the effects of (i) recoveries from operations written off, and (ii) discounts granted upon settlement of loans in the period.
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7. EARNING RELEASE
rd
3 QUARTER 2013
Result from financial intermediation before allowance for loan losses totaled R$46.0 million in 3Q13, versus R$2.4
million in 2Q13, due to the increase in revenue from credit operations and agro bonds (CPR).
Adjusted Revenues from credit operations and CPR, from which the impact of discounts granted upon settlement
of loans and recoveries of loans written off is excluded to enable better comparison, as shown in the table below,
increased 12.7% in 3Q13, reflecting the increase in the average balance of the credit portfolio and CPR in the
quarter.
Revenues from Loan Operations and CPR adjusted
A. Revenues from Loan Operations and Agro Bonds (CPR)
B. Recoveries of written-off operations
3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12 9M13 9M12 9M13/9M12
79.4
60.0
3.0
32.4%
62.9
26.3%
198.0
211.2
-6.3%
1.7
75.2%
5.9
-49.1%
9.0
15.7
-42.6%
C. Discounts granted upon settlement of operations
(1.6) (11.0)
-85.5%
(1.8)
-11.4%
(19.0)
(12.0)
58.3%
Adj. Revenues from Loan Operations and CPR (A-B-C)
78.0
12.7%
58.8
32.7% 207.9 207.5
0.2%
69.2
Income from Securities, with offset in funding expenses, increased 60.6% in the quarter, mainly driven by the income
from fixed-income securities, especially CPRs and government bonds.
The Result from Derivative Financial Instruments includes results from operations involving swaps, forwards, futures
and options used to hedge against exchange and interest rate exposure for funding operations indexed to the inflation
indexes, as well as foreign borrowings (non-trade related), hedging of commodity prices resulting from CPR operations
and indexers of federal government bonds held in the securities portfolio, in addition to the directional portfolio.
During the quarter, this item totaled R$2.9 million, versus a negative result of R$7.8 million in 2Q13 and R$4.7 million
in 3Q12.
Both Income from Foreign Exchange Operations and Expenses with Foreign Borrowings were especially impacted
by the variation in the dollar/real exchange rate during the quarter and by the decline in demand from clients.
With regard to Expenses with Foreign Borrowings, note that the loan obtained from JP Morgan in 2011, in the
amount of US$25 million, matured in June 2013 and, in August 2013, we obtained a loan from IFC in the amount
of US$15 million, with maturity in July 2016.
Expenses with Time Deposits increased slightly in the quarter due to the combination of the following factors: (i)
increase of R$11.6 million in the average balance of funding through time deposits with special guarantee (DPGE
I); (ii) decrease of R$55.4 million in the average balance of bank deposit certificates (CDB); and (iii) consecutive
hikes in the basic interest rate (Selic) during the period. The decrease in Expenses with Interbank Deposits is
directly related to the decline in the average balances of interbank deposits, while Expenses with Agribusiness
Letters of Credit, Real Estate Notes and Bank Notes increased, mainly due to the increase in their average
balances.
The managerial expense with allowance for loan losses (ALL) in the quarter, which includes the reversals to ALL
originated by discounts granted upon settlement of loans and recoveries of loans written off, was R$6.1 million,
equivalent to 0.75% (annualized) of the expanded credit portfolio, which is below management’s expectations
and in line with the conservative credit policy adopted by the Bank since April 2011.
The Result from financial intermediation totaled R$39.3 million in the quarter, compared to R$2.2 million in
2Q13, mainly due to the above-mentioned factors.
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8. EARNING RELEASE
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3 QUARTER 2013
Net Interest Margin (NIM)
As described in the section on Profitability, considering the effects on the result from financial intermediation
from the discontinuance of the designation of hedge accounting and discounts granted upon settlement of loans,
adjusted NIM increased from 3.2% in 2Q13 to 5.6% in 3Q13, as the following table shows:
Net Interest Margin
A. Result from Finan. Int. before ALL adjusted
3Q13
1
3Q12 3Q13/3Q12
9M13
9M12 9M13/9M12
2
26.9
77.2%
45.6
4.6%
119.4
140.4
-15.0%
2.4
n.c.
48.4
-5.1%
71.1
158.8
-55.2%
3,657.9
B. Average Interest bearing Assets
47.7
46.0
A.a. Result from Finan. Interm. before ALL
Adjustm. for non-remunerated average assets
2Q13 3Q13/2Q13
3,626.3
0.9% 4,106.5
-10.9%
3,629.3 4,178.2
-13.1%
(189.2)
-80.9%
(154.4)
(184.0)
-16.1% (874.3)
-82.3%
3,503.5
3,442.3
1.8% 3,232.2
8.4%
3,440.0 3,185.5
8.0%
Net Interest Margin (Aa/Ba)
5.4%
0.3%
5.1 p.p.
6.1%
-0.8 p.p.
4.2% 10.2%
-6.0 p.p.
Adj. Net Interest Margin (A/Ba) 1
5.6%
3.2%
2.4 p.p.
5.8%
-0.2 p.p.
7.1%
9.0%
-1.9 p.p.
Managerial NIM with Clients
4.1%
4.1%
0.0 p.p.
4.5%
-0.4 p.p.
4.1%
4.8%
-0.7 p.p.
B.a. Adjusted Average Interest bearing Assets
(992.6)
1
Repos with equivalent volumes, tenors and rates both in assets and liabilities.
Excluding (i) effects of the discontinuance of the treatment of hedge accounting, adopted in 2Q12, for booking hedges of cash flows, which
continue to be protected by hedge, and (ii) discounts granted in operations settled in the period.
2
Managerial Interest Margin with Clients, which consists of revenues from loan operations, derivatives, CPR
operations and guarantees issued to clients, and excludes discounts granted upon settlement of loans, remained
stable in the quarter at 4.1%. In twelve months, margin declined 0.4 p.p., as a result of a more conservative
profile of the portfolio. We expect margin to stabilize at these levels but could increase slightly with the expected
growth of the Bank’s expanded credit portfolio over the coming quarters.
Efficiency
The efficiency ratio in the quarter stood at 84.0%, resulting from the growth in income from financial
intermediation, especially driven by revenues from credit operations.
Efficiency Ratio
Personnel Expenses
Contributions and Profit-sharing
Administrative Expenses
Taxes
3Q13
2Q13
24.1
26.1
-7.8%
21.4
12.4%
76.6
66.1
15.9%
1.9
2.7
-30.7%
3.0
-37.1%
10.0
7.4
35.8%
17.2
15.7
9.4%
13.0
31.7%
46.2
39.8
16.2%
3Q13/2Q13
3Q12 3Q13/3Q12
9M13
9M12 9M13/9M12
2.9
2.0
44.8%
2.3
30.8%
8.6
8.3
3.4%
46.1
46.6
-1.0%
39.7
16.0%
141.4
121.6
16.3%
Gross Income Financial Intermediation (w/o ALL)
46.0
2.4
n.c.
48.4
-5.1%
71.1
158.8
-55.2%
Income from Services Rendered
10.1
8.6
16.7%
7.7
31.6%
25.2
19.6
28.3%
A. Total Operating Expenses
Income from Banking Tariffs
Other Net Operating Income *
B. Total Operating Income
Efficiency Ratio (A/B)
0.2
0.2
-1.6%
0.2
-0.5%
0.5
0.5
0.7%
(1.4)
(1.4)
-3.5%
0.7
-290.3%
(0.7)
5.8
-112.2%
54.9
9.8
n.c.
57.0
-3.7%
96.1
184.7
-48.0%
14.3 p.p. 147.2% 65.8%
81.3 p.p.
84.0% 474.9%
n.c. 69.7%
(*) Net of other Operating Expenses to offset the cost of acquisition and income on sale of commodities in the activity of Serglobal Cereais.
Net Profit
The operating income in the quarter was R$6,3 million, and after (i) the non-operating profit from the sale of
properties and non-operating assets of the R$367 thousand, (ii) taxes and contributions of the R$2.8 million, and
(iii) profit sharing of the R$1.9 million, resulted in a profit of R$2.0 million.
8/20

9. EARNING RELEASE
rd
3 QUARTER 2013
Credit Portfolio
Expanded Credit Portfolio
In September 2013, the expanded credit portfolio, including the loans assigned to Banco Intercap, totaled R$3.4
billion, +3.9% in the quarter and +12.2% in 12 months.
The expanded credit portfolio of Banco BI&P totaled R$3.3 billion, up 0.9% from June 2013 and 8.9% in 12
months. The portfolio consists of loan and financing operations in Brazilian real and trade finance operations,
both detailed in note 6(a) to the financial statements, as well as: (i) guarantees issued (sureties, guarantees and
letters of credit), (ii) agribusiness bonds generated by the absorption of the operations of Serglobal Cereais (CPR
and CDA/WA); and (iii) private credit bonds (promissory notes and debentures). Items (ii) and (iii) are both
booked under Securities (TVM) as per Central Bank regulations.
Expanded Credit Portfolio by Product Group
3Q13
Loans & Financing in Real + Credits Assigned to Banco Intercap
1,803.1
(-) Credits assigned to Banco Intercap
2Q13 3Q13/2Q13
1,765.7
2.1%
3Q12 3Q13/3Q12
1,464.9
23.1%
81.9
0.0
n.c.
0.0
n.c.
1,721.2
1,765.7
-2.5%
1,464.9
17.5%
186.5
250.3
-25.5%
509.5
-63.4%
Trade Finance (ACC/ACE/IMPFIN)
404.9
427.3
-5.3%
463.0
-12.6%
Guarantees Issued (LGs & L/Cs)
185.4
210.9
-12.1%
167.5
10.7%
701.4
477.9
46.8%
306.7
128.7%
Loans & Financing in Real
Assignment of Receivables Originated by our Customers
Agro Bonds + Agro Bonds Assigned to Banco Intercap
(-) Agro Bonds Assigned to Banco Intercap
15.3
0.0
n.c.
0.0
n.c.
686.2
477.9
43.6%
306.7
123.7%
Private Credit Bonds (Securities: PNs & Debentures)
29.5
39.2
-24.8%
41.1
-28.3%
Other
44.4
57.4
-22.6%
38.1
16.5%
EXPANDED CREDIT PORTFOLIO
3,258.0
3,228.7
0.9%
2,990.9
8.9%
EXPANDED CREDIT PORT. + CREDIT ASSIGNMENTS TO INTERCAP
3,355.2
3,228.7
3.9%
2,990.9
12.2%
Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs)
Expanded Credit Portfolio
1%
1%
0.8%
51%
51%
50.5%
39%
47%
48%
48.7%
4Q12
1Q13
2%
2%
56%
59%
42%
3Q12
Emerging Companies
2Q13
Corporate
3Q13
The Emerging Companies segment consists of companies
with annual revenue between R$80 million and R$400
million, while the Corporate segment includes companies
with annual revenue between R$400 million and R$2
billion. The Other segment basically consists of Consumer
Credit operations for Used Vehicles and financing of nonoperating assets.
Other
Loans and financing in Brazilian real, which include bills discounted and also credits assigned to Banco Intercap,
increased 2.1% at the end of 3Q13 and 27.1% in twelve months. Receivables originated by our customers
assigned to Banco Bi&P represented 5.7% of the expanded credit portfolio in the quarter, down 25.5% in 3Q13
and 63.4% in 12 months, as a result of the reallocation of the portfolio to assets with higher returns.
At the end of 3Q13, Trade Finance operations, which accounted for 12.4% of the expanded credit portfolio,
decreased 5.3% in the quarter and 12.6% from September 2012, mainly due to the reduction in client demand.
These operations consist of import and export financing, which corresponded to 28.1% and 71.9%, respectively.
Guarantees issued (sureties, guarantees and import letters of credit), which correspond to 5.7% of the expanded
credit portfolio, decreased 12.1% from 2Q13 but increased 10.7% in 12 months.
As a result of the joint ventures and alliances built over the past two years, the portfolio of agribusiness and
private credit bonds, classified under ‘held for sale’ marketable securities in the balance sheet in accordance with
9/20

10. EARNING RELEASE
rd
3 QUARTER 2013
Central Bank regulations due to its tradability, has been growing consistently in recent quarters, totaling R$605.6
million in 3Q13, up 44.4% in the quarter and 125.7% in 12 months. Including the credits assigned to Banco
Intercap, it totaled R$701.4 million, up 46.8% in 3Q13 and 128.7% in 12 months.
Agro Bonds Portfolio
3Q13
2Q13
3Q13/2Q13
3Q12
3Q13/3Q12
Booked under Securities
576.0
390.8
47.4%
233.9
146.3%
Warrants - CDA/WA
11.5
7.3
57.1%
7.7
48.0%
564.6
383.5
47.2%
226.1
149.7%
110.1
87.1
26.4%
72.9
51.1%
110.1
87.1
26.4%
72.9
51.1%
Agricultural Bonds
686.2
477.9
43.6%
306.7
123.7%
AGRO BONDS PORTFOLIO
701.4
477.9
46.8%
306.7
128.7%
Agro Product Certificate - CPR
Booked under Credit Portfolio - Loans & Financing
Agro Credit Rights Certificate - CDCA
Our Expanded Credit Portfolio breakdown is as follows:
By Economic Activity
Commerce
26%
By Region
Other
1%
Southeast
55%
Other
Services
22%
Emerging
Companies
49%
North
2%
Individuals
2%
Industry
50%
Financial
Institutions
0%
By Customer Segment
Northeast
4%
South
20%
Corporate
50%
Midwest
19%
By Economic Sector
Agriculture
Construction
Food & Beverage
Oil, Biofuel & Sugar
Automotive
Infrastructure
Livestock
Commerce - Retail & Wholesale
Transportation & Logistics
Power Generation & Distribution
Textile, apparel & Leather
Chemical & Pharmaceutical
Raw Materials
Education
Metal Industry
Financial Instituitions
Other industries*
By Product
23.6%
8.7%
7.9%
7.5%
5.5%
4.4%
4.3%
3.7%
3.7%
3.4%
2.7%
2.6%
2.6%
2.4%
2.3%
1.8%
Agro Bonds
21%
Trade
Finance
12%
BNDES
Onlending
10%
Guarantees
Issued
6%
Debentures
1%
Other
1%
Loans &
Discounts
49%
12.8%
10/20

11. EARNING RELEASE
rd
3 QUARTER 2013
Credit Portfolio
The ‘classic’ credit portfolio, which does not include guarantees issued and loans classified under ‘held for sale’
marketable securities and includes loans assigned to Banco Intercap, totaled R$2.5 million, down 1.5% in the
quarter and unchanged in the 12-month period.
The classic credit portfolio of Banco BI&P closed 3Q13 at R$2.5 billion, down 4.7% from the previous quarter, of
which R$2.1 billion were loans in Brazilian real and R$404.9 million pertained to trade finance operations.
At the end of the quarter, the Emerging companies segment accounted for 47.4% (49.1% in 2Q13) of the classic
portfolio and the Corporate segment accounted for 51.5% (49.6% in 2Q13). Loans classified as Other, which
include the balance of the direct consumer credit - used vehicles (CDC) portfolio, portfolios acquired from other
banks and financing of non-operating assets, correspond to 1.1% of the total portfolio (1.2% in 2Q13).
Credit Portfolio By Client Segment
3Q13
Emerging Companies
2Q13 3Q13/2Q13
3Q12 3Q13/3Q12
1,168.4
1,271.4
-8.1%
1,127.7
3.6%
960.0
1,046.5
-8.3%
880.2
9.1%
866.5
880.8
-1.6%
712.3
21.6%
41.4
0.0
n.c.
0.0
n.c.
825.0
880.8
-6.3%
712.3
15.8%
Assignment of Receivables Originated by our Customers
1.2
6.4
-81.9%
31.4
-96.3%
Financing
0.0
0.0
n.c.
0.0
n.c.
133.8
159.3
-16.0%
136.6
-2.0%
Local Currency - Real
Loans & Discount of Receivables + Credits Assigned to Intercap
(-) Credits assigned to Banco Intercap
Loans & Discounted Receivables
BNDES / FINAME
Foreign Currency
208.4
Loans & Discount of Receivables + Credits Assigned to Intercap
(-) Credits assigned to Banco Intercap
-7.3%
247.5
-15.8%
1,284.8
-1.1%
1,373.6
-7.5%
1,074.6
Local Currency - Real
224.9
1,271.0
Corporate
1,082.3
-0.7%
1,158.2
-7.2%
739.8
650.5
13.7%
515.6
43.5%
40.5
0.0
n.c.
0.0
n.c.
Loans & Discounted Receivables
699.3
650.5
7.5%
515.6
35.6%
Assignment of Receivables Originated by our Customers
185.3
243.9
-24.0%
478.1
-61.2%
BNDES / FINAME
15.5%
190.0
187.9
1.1%
164.5
Foreign Currency
196.5
202.4
-3.0%
215.5
-8.8%
Other
27.6
31.7
-12.9%
47.0
-41.3%
Consumer Credit – used vehicles
0.0
0.1
-70.5%
1.1
-96.1%
Acquired Loans & Financing
2.4
3.6
-33.1%
8.9
-72.5%
25.1
27.9
-9.9%
37.0
-32.2%
CREDIT PORTFOLIO
2,467.0
2,587.8
-4.7%
2,548.4
-3.2%
CREDIT PORTFOLIO WITH CREDIT ASSIGNMENTS TO INTERCAP
2,549.0
2,587.8
-1.5%
2,548.4
0.0%
Non-Operating Asset Sales Financing
By Collateral
By Customer Concentration
Receivables
25%
Pledge /
Lien
7%
Top 10
15%
11 - 60
32%
By Maturity
91 to 180
days
17%
181 to 360
days
18%
Property
10%
Aval PN
49%
Monitored
Pledge
5%
Vehicles
Securities 2%
2%
Other
26%
61 - 180
27%
Up 90
days
32%
+360 days
33%
11/20

12. EARNING RELEASE
rd
3 QUARTER 2013
Quality of Credit Portfolio
Rating
AA
A
3Q12 2Q13 3Q13
Required Provision %
0%
Outstanding Loans
56.3
Allowance for Loan Losses
Outstanding Loans
Allowance for Loan Losses
Outstanding Loans
Allowance for Loan Losses
B
0.5%
C
1%
3%
D
E
4.4
65.7 1,078.0
0.0
5.4
158.2
948.3
0.0
4.7
G
25.7
41.0
6.9
113.5
13.1
7.7
20.5
4.8
113.5
971.5 192.8 109.9
17.4
30.0
4.0
118.6
5.2
15.0
2.8
118.6
45.8 103.5
12.4
3.9
34.8
6.2
2.7
34.8
10.3
5.5
9.7
5.8
892.4 349.2
8.9
10.5
11.0
4.6
31.1
ALL/
Credit
Portfolio
%
H
Additional
ALL
10% 30% 50% 70% 100%
877.4 1,032.5 183.0 130.7
0.0
F
TOTAL
- 2,467.0
30.6
8.5%
210.4
- 2,587.8
40.9
8.3%
214.4
- 2,548.4
0.0
4.1%
103.5
We remain focused on lending to clients with better credit standing, which is evident from the high percentage of
loans rated in the low risk categories (between AA and B), which reached 99.9% in 3Q13, compared to 98.2% in
2Q13. The balance of loans rated between AA and B ended the quarter at 79.7% of total loans (compared to
81.7% and 78.4% respectively, at the end of 2Q13 and 3Q12), as the following chart shows:
Of the R$317.7 million classified between D and H (R$279.8 million in June 2013 and R$200.4 million in
September 2012), R$247.6 million correspond to loans whose payments are regular, equivalent to 78% of the
total (compared to 77% in June 2013 and 61% in September 2012). The remaining 22% correspond to overdue
loans and are detailed below:
Default by segment
3Q13
2Q13
Credit Portfolio
> 60 days
3Q13
NPL
Emerging Companies
1,168.4
1,271.4
Corporate
1,271.0
1,284.8
27.6
31.7
2,467.0
2,587.8
%
51.6
Other
TOTAL
Allowance for Loan Losses (ALL)
210.4
ALL / NPL
ALL / Loan Portfolio
NPL
4.4%
1.0%
7.2
26.1%
71.7
2.9%
%
51.3
12.9
3Q13
NPL
4.0%
0.7%
7.2
22.8%
66.9
2.6%
%
46.6
8.4
2Q13
NPL
%
4.0%
40.6
3.2%
11.1
0.9%
5.9
0.5%
7.2
26.1%
7.2
22.8%
64.9
2.6%
53.8
2.1%
214.4
293.6%
8.5%
> 90 days
2Q13
8.3%
320.3%
324.0%
398.7%
-
-
-
-
The default rate on loans overdue by more than 60 days (NPL 60 days) increased 0.3 p.p. in the quarter but
decreased 0.2 p.p. from 3Q12. Loans overdue by more than 90 days (NPL 90 days) increased 0.5 p.p. in the
quarter and 0.7 p.p. in relation to 3Q12. The increase in NPL 90 days in both the quarter and the 12-month
period is mainly due to the arrears of a few loans granted before April 2011.
12/20

13. EARNING RELEASE
rd
3 QUARTER 2013
NPL 60 days/ Credit Portfolio Ratio
3Q13
2Q13
3Q13/2Q13
3Q12
3Q13/3Q12
NPL 60 days/ Credit Portfolio
2.9%
2.6%
0.3 p.p.
3.1%
-0.1 p.p.
14.0%
10.6%
3.4 p.p.
7.5%
0.9 p.p.
0.6%
0.5%
0.1 p.p.
1.1%
-0.4 p.p.
Clients upon the new credit policy
Clients upon the previous credit policy (acquired before April 2011)
In 3Q13, the credit portfolio coverage index remained high at around 8.5% (8.3% in 2Q13), due to the balance
allowance for loan losses of R$210.4 million, as against R$214.4 million in 2Q13. This balance allowance provided
coverage of 2.9x of the NPL 60 balance and 3.2x of the NPL 90 balance at the end of September 2013.
The managerial expense with allowance for loan losses (ALL) corresponded to 0.75% (annualized) of the
expanded credit portfolio, in line with the conservative credit policy adopted by the Bank. There were no fresh
provisions for the balance of loans granted prior to April 2011 and we still have an additional allowance (not
allocated) of R$30.6 million.
13/20

14. EARNING RELEASE
rd
3 QUARTER 2013
Funding
Funding volume totaled R$3.1 billion at the end of September 2013, down 1.9% from June 2013 and up 5.0%
from September 2012. Bank Deposit Certificates (CDB) and Time Deposits with Special Guarantee (DPGE I),
booked under the item ‘time deposits’, remain the principal funding sources, jointly accounting for 53.8% of total
funding.
Funding through LCAs, which are backed by agribusiness operations, a segment in which Banco BI&P specializes,
continues to increase its share of total funding, accounting for 18.8% of total funding, compared to 15.6% in
2Q13. Real estate letters of credit (LCI) and bank notes (LF) too have been increasing their share, jointly
accounting for 3.3% of total funding in 3Q13, compared to 2.4% in 2Q13. Funding in foreign currency is
especially allocated to trade finance operations and its balance is impacted by foreign exchange variations.
Total Funding
3Q13
2Q13
3Q13/2Q13
3Q12
3Q13/3Q12
Total Deposits
2,391.2
2,427.8
-1.5%
2,194.5
9.0%
Time Deposits
719.4
822.7
-12.6%
664.6
8.2%
Insured Time Deposits (DPGE)
939.9
944.8
-0.5%
1,019.0
-7.8%
Agro Notes (LCA)
578.1
489.2
18.2%
328.8
75.8%
Real Estate Notes (LCI)
65.8
40.2
63.8%
5.3
n.c.
Bank Notes (LF)
34.8
34.0
2.4%
36.4
-4.5%
Interbank Deposits
15.7
58.2
-73.1%
92.1
-83.0%
37.6
38.8
-3.2%
48.3
-22.3%
Domestic Onlending
Demand Deposits and Other
325.4
348.6
-6.6%
309.3
5.2%
Foreign Borrowings
365.3
366.0
-0.2%
432.0
-15.4%
332.1
366.0
-9.3%
381.1
-12.9%
Trade Finance
Other Foreign Borrowings
33.2
0.0
n.c.
50.8
-34.7%
3,081.9
TOTAL
3,142.3
-1.9%
2,935.8
5.0%
By Type
Demand
1%
By Investor
Time
Deposit
23%
Individuals
7%
Insured
Time Dep.
(DPGE)
30%
Interbank
1%
By Maturity
National
Banks
5%
Corporates
11%
Brokers
8%
Other
2%
Trade
Finance
11%
BNDES
Onlendings
11%
BNDES
11%
Agro Bonds
19%
Bank &
Real Estate
Notes
3%
Institutional
Investors
44%
demand
1%
+360 days
33%
181 to 360
days
16%
91 to 180
days
19%
Foreign Banks
12%
Up 90
days
31%
The average term of deposits stood at 757 days from issuance (740 days in June 2013) and 324 days from
maturity (353 days in June 2013).
Average Term in days
from issuance
to maturity 1
Interbank
Time Deposits
Time Deposits with Special Guarantee (DPGE)
Agro Notes (LCA)
Real Estate Letters of Credit (LCI)
Bank Notes (LF)
344
431
1,389
184
205
891
161
272
499
122
133
421
Portfolio of Deposits 2
757
324
Type of Deposit
1
From September 30, 2013. |
2
Volume weighted average.
14/20

15. EARNING RELEASE
rd
3 QUARTER 2013
Free Cash
629
661
658
3Q12
2Q13
3Q13
R$ million
On September 30, 2013, the free cash position totaled R$657.9 million,
equivalent to 27.5% of total deposits and 1.1x shareholders’ equity. The
calculation considers cash, short-term interbank investments and securities
less funds raised in the open market and debt securities classified under
marketable securities, comprising rural product certificates (CPRs),
agribusiness deposit certificates and warrants (CDAs/WAs), debentures and
promissory notes (NPs).
Capital Adequacy
The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk in their
operations. In this context, the Central Bank of Brazil has stipulated that banks operating in the country should
maintain a minimum percentage of 11%, calculated according to the Basel II Accord regulations, which provides
greater security to Brazil’s financial system against oscillations in economic conditions.
In a simulation, if the acquisition of Banco Intercap was concluded at the close of 3T13, our Basel Index at the end
of September 2013 would be 15.4%, 0.9 pp higher than the current Basel index of Banco BI&P of 14,5%.
The following table shows BI&P’s position in relation to the Central Bank’s minimum capital requirements:
Basel Index
3Q13
2Q13
3Q13/2Q13
3Q12
3Q13/3Q12
Total Capital
554.9
554.3
0.1%
585.2
-5.2%
555.8
555.3
0.1%
586.2
-5.2%
Tier I
Tier II
1.3
Required Capital
1.3
-0.7%
1.4
-3.5%
(2.3)
Deductions
(2.3)
0.0%
(2.4)
-4.8%
3.6%
421.6
419.1
0.6%
407.0
Credit Risk allocation
362.6
353.3
2.7%
350.7
3.4%
Market Risk Allocation
42.5
47.9
-11.4%
36.6
16.0%
Operating Risk Allocation
16.5
17.9
-7.9%
19.7
-16.3%
Excess over Required Capital
133.3
135.2
-1.4%
178.2
-25.2%
14.5%
14.6%
-0.1 p.p.
15.8%
-1.3 p.p.
Basel Index
Risk Ratings
Agency
Classification
Observation
Last
Report
Financial
Data
Standard & Poor’s
BB / Negative / B
brA+ / Negative / brA-1
Global Scale
Local Scale - Brazil
August 6, 2013
March 31, 2013
Moody's
Ba3/ Negative / Not Prime
A2.br/ Negative / BR-2
Global Scale
Local Scale - Brazil
July 4, 2013
March 31, 2013
FitchRatings
BBB / Stable / F3
Local Scale - Brazil
September 5, 2013
June 30, 2013
RiskBank
9.80
Ranking: 51
RiskBank Index
Low Risk Short Term
October 11, 2013
June 30, 2013
15/20

16. EARNING RELEASE
rd
3 QUARTER 2013
Capital Market
Total Shares and Free Float
Number of shares as of September 30, 2013
Type
Corporate
Capital
Controlling
Group
Common
44,410,897
22,166,552
Preferred
31,021,907
399,889
75,432,804
22,566,441
337,365
TOTAL
Management
Treasury
Free Float
%
57,876
-
22,186,469
50.0%
279,489
734,515
29,608,014
95.4%
734,515
51,794,483
68.7%
Share Buyback Program
The following Stock Option Plans, approved for the Company’s executive officers and managers, as well as
individuals who provide services to the Company or its subsidiaries, had the following balances on September 30,
2013:
Quantity
Stock
Option
Plan
I
II
Date of
Approval
Grace Period
Term for
Exercise
Granted
Exercised
Extinct
Not Exercised
26.03.2008
29.04.2011
Three years
Three years
Five years
Five years
2,039,944
1,840,584
37,938
-
657,662
367,243
1,544,344
1,473,341
1,850,786
-
-
1,850,786
605,541
-
35,044
570,498
6,336,855
37,938
859,949
5,438,969
III
29.04.2011
Five years
Seven years
IV
24.04.2012
Up to five years
Five years
The aforementioned Stock Options Plans are filed in the IPE system of the Securities and Exchange Commission
of Brazil (CVM) and are also available in the Company’s IR website.
Remuneration to Shareholder
During 9M13 the Bank neither provisioned nor paid interest on equity, calculated based on the Long-Term
Interest Rate (TJLP) and towards the minimum dividend for fiscal year 2013. The Board of Directors will, by the
end of the year, study the possibility of early payment of interest on equity after considering the results and the
tax efficiency of such payment.
Share Performance
The preferred shares of BI&P (IDVL4), listed in the Level 2 Corporate Governance segment of BM&FBOVESPA,
closed September 2013 at R$6.30, for market cap of R$470.6 million, including the shares existing on September
30, 2013 and excluding treasury stock. The price of IDVL4 shares decreased 9.9% in the quarter and -4.4% in
the 12 months ended September 2013. In comparison, the Bovespa Index (Ibovespa) dropped 10.3% in the
quarter and -11.6% in relation to 3Q12. At the end of 3Q13, the price/book value (P/BV) was 0.82.
16/20

17. EARNING RELEASE
rd
3 QUARTER 2013
Share Price evolution in the last 12 months
130
120
110
100
90
80
70
IBOVESPA
IDVL4 adjusted for earnigns
IDVL4
60
Liquidity and Trading Volume
The preferred shares of BI&P (IDVL4) were traded in 96.9% of the sessions in the quarter and 94.7% of the 246
sessions in the past 12 months. The volume traded on the spot market in the quarter was R$6.4 million,
involving 0.9 million IDVL4 shares in 587 trades. In the 12 months ended in September 2013, the volume traded
on the spot market was R$25.6 million, involving around 2.2 million preferred shares in 3,664 trades.
Shareholder Base
Position as of September 30,2013
#
Type of Shareholder
5
Controlling Group
5
Management
-
Treasury
%
IDVL4
%
TOTAL
%
22,166,552
49.9%
399,889
1.3%
22,566,441
29.9%
57,876
0.1%
279,489
0.9%
337,365
0.4%
-
0.0%
734,515,00
2.4%
734,515
1.0%
National Investors
1,201,090
2.7%
8,648,620
27.9%
9,849,710
13.1%
Foreign Investors
10,681,337
24.1%
17,815,852
57.4%
28,497,189
37.8%
22
11
6
Corporate
274
Individuals
323
IDVL3
TOTAL
-
0.0%
6,712
0.0%
6,712
0.0%
10,304,042
23.2%
3,136,830
10.1%
13,440,872
17.8%
44,410,897
100.0%
31,021,907
100.0%
75,432,804
100.0%
17/20

18. EARNING RELEASE
rd
3 QUARTER 2013
Balance Sheet
R$ thousand
Consolidated
Assets
9/30/2012
6/30/2013
9/30/2013
Current
3,433,129
3,128,533
3,131,671
6,324
26,552
36,653
Short-term interbank investments
Open market investments
Interbank deposits
941,951
921,810
20,141
270,732
246,708
24,024
143,122
117,499
25,623
Securities and derivative financial instruments
Own portfolio
Subject to repurchase agreements
Linked to guarantees
Subject to the Central Bank
Derivative financial instruments
568,460
364,271
9,056
172,429
22,704
1,011,301
649,604
69,426
160,716
89,784
41,771
1,236,149
954,523
25,871
210,730
45,025
Cash
Interbank accounts
Loans
Loans - private sector
Loans - public sector
(-) Allowance for loan losses
Other receivables
Credit guarantees honored
Foreign exchange portfolio
Income receivables
Negotiation and intermediation of securities
Sundry
(-) Allowance for loan losses
Other assets
Other assets
(-) Provision for losses
Prepaid expenses
Long term
Short-term interbank investments
Marketable securities and derivative financial instruments
Own portfolio
Derivative financial instruments
Interbank Accounts
2,680
3,201
2,545
1,366,002
1,384,176
(18,174)
1,359,621
1,408,066
(48,445)
1,269,980
1,342,186
(72,206)
498,874
415,595
52
21,341
66,379
(4,493)
394,416
320,987
58
61,573
16,753
(4,955)
375,392
507
323,650
1,058
37,418
22,611
(9,852)
48,838
48,911
(2,757)
2,684
62,710
56,946
5,764
67,830
59,227
8,603
852,124
985,743
951,854
6,824
-
-
44,626
41
44,585
45,188
43
45,145
42,525
31
42,494
4,202
3,001
3,066
Loans
Loans - private sector
Loans - public sector
(-) Allowance for loan losses
651,963
726,648
(74,685)
655,164
807,148
(151,984)
630,239
755,413
(125,174)
Other receivables
Credit guarantees honored
Trading and Intermediation of Securities
Sundry
(-) Allowance for loan losses
144,171
778
518
148,986
(6,111)
251,685
495
260,163
(8,973)
248,551
498
251,246
(3,193)
338
30,705
27,473
Other rights
Permanent Assets
51,895
83,929
87,522
Investments
Subsidiaries and Affiliates
Other investments
(-) Loss Allowances
23,968
22,282
1,842
(156)
29,559
27,868
1,847
(156)
31,630
29,939
1,847
(156)
Property and equipment
Property and equipment in use
Revaluation of property in use
Other property and equipment
(-) Accumulated depreciation
14,401
1,210
2,634
19,965
(9,408)
14,178
1,210
2,634
22,740
(12,406)
13,639
1,210
2,634
22,739
(12,944)
Intangible
Goodwill
Other intangible assets
(-) Accumulated amortization
13,526
2,391
13,100
(1,965)
40,192
24,585
18,664
(3,057)
42,253
25,030
20,945
(3,722)
4,337,148
4,198,205
4,171,047
TOTAL ASSETS
18/20

19. EARNING RELEASE
rd
3 QUARTER 2013
R$ thousand
Consolidated
Liabilities
9/30/2012
6/30/2013
9/30/2013
2,496,098
2,538,587
2,547,624
Deposits
Cash deposits
Interbank deposits
Time deposits
Other
808,109
48,334
91,878
667,897
-
1,021,586
38,781
58,128
924,677
-
959,086
37,559
15,674
905,853
-
Funds obtained in the open market
Own portfolio
Third party portfolio
Unrestricted Portfolio
597,214
9,302
240,045
347,867
176,141
56,517
104,621
15,003
107,500
25,800
81,700
-
Funds from securities issued or accepted
Agribusiness Letters of Credit, Real State Notes & Bank Notes
341,511
341,511
550,198
550,198
645,621
645,621
185
185
556
556
391
391
8,312
8,312
9,892
9,892
11,811
11,811
Borrowings
Foreign borrowings
431,964
431,964
365,999
365,999
332,193
332,193
Onlendings
BNDES
FINAME
128,029
82,609
45,420
131,247
90,018
41,229
122,375
80,798
41,577
Other liabilities
Collection and payment of taxes and similar charges
Foreign exchange portfolio
Taxes and social security contributions
Social and statutory liabilities
Negotiation and intermediation securities
Derivative financial instruments
Sundry
180,774
820
54,286
2,864
2,000
95,942
13,576
11,286
282,968
452
5,353
13,201
4,500
133,055
75,550
50,857
368,647
565
24,771
15,920
2,188
219,743
67,325
38,135
1,252,501
1,089,265
1,046,932
1,015,931
195
1,015,736
842,830
32
842,798
753,396
753,396
28,943
28,943
13,172
13,172
33,095
33,095
-
-
33,072
33,072
181,267
8,733
85,132
86,985
417
217,312
7,435
122,487
87,186
204
203,037
6,956
111,416
84,461
204
26,360
22,099
1,203
3,058
15,951
7,550
4,246
4,155
24,332
7,853
7,253
9,226
990
795
2,035
587,559
572,396
12,331
1,352
7,339
(5,859)
-
569,558
661,812
19,866
1,315
(5,859)
31
(108,455)
848
574,456
662,384
22,223
1,302
(5,859)
(2)
(106,406)
814
4,337,148
4,198,205
4,171,047
Current
Interbank accounts
Receipts and payment pending settlement
Interdepartamental accounts
Third party funds in transit
Long Term
Deposits
Interbank Deposits
Time deposits
Funds from securities issued or accepted
Agribusiness Letters of Credit, Real State Notes & Bank Notes
Loan obligations
Foreign loans
Onlending operations - Governmental Bureaus
Federal Treasure
BNDES
FINAME
Other Institutions
Other liabilities
Taxes and social security contributions
Derivative financial instrument
Sundry
Future results
Shareholders' Equity
Capital
Capital Reserve
Revaluation reserve
Profit reserve
(-) Treasury stock
Asset valuation Adjustment
Accumulated Profit / (Loss)
Minority Interest
TOTAL LIABILITIES
19/20

20. EARNING RELEASE
rd
3 QUARTER 2013
Income Statement
3Q12
2Q13
3Q13
9M12
R$ thousand
9M13
131,684
62,885
53,436
4,730
10,633
93,015
50,133
22,316
(7,780)
28,346
126,177
64,950
35,848
2,944
22,435
516,291
195,942
236,431
6,533
77,385
306,780
171,055
77,790
(2,876)
60,811
Expenses from Financial Intermediaton
Money market funding
Loans, assignments and onlendings
Sales operations/transfer of financial assets
Allowance for loan losses
95,145
69,220
14,043
11,882
90,778
53,005
37,628
145
86,883
56,440
23,237
536
6,670
406,358
273,884
83,597
48,877
375,884
162,653
72,496
536
140,199
Gross Profit from Financial Instruments
36,539
2,237
39,294
109,933
(69,104)
(27,046)
7,656
185
(21,441)
(13,042)
(2,252)
1,138
6,053
(5,343)
(36,041)
8,636
187
(26,138)
(15,694)
(2,034)
402
1,147
(2,547)
(32,986)
10,077
184
(24,091)
(17,171)
(2,945)
2,311
1,501
(2,852)
(85,123)
19,610
539
(66,118)
(39,787)
(8,299)
3,155
14,763
(8,986)
(102,914)
25,164
543
(76,602)
(46,236)
(8,579)
3,500
5,852
(6,556)
9,493
(33,804)
6,308
24,810
(172,018)
(1,230)
752
367
501
450
8,263
(33,052)
6,675
25,311
(171,568)
Income tax and social contribution
Income tax
Social contribution
Deferred fiscal assets
(2,160)
(1,970)
(1,170)
980
15,109
1,074
457
13,578
(2,805)
(1,400)
(683)
(722)
(7,356)
(8,078)
(4,782)
5,504
71,493
6,306
3,831
61,356
Statutory Contributions & Profit Sharing
(2,972)
(2,694)
(1,868)
(7,361)
(9,993)
3,131
(20,637)
2,002
10,594
(110,068)
Consolidated
Income from Financial Intermediation
Loan operations
Income from securities
Income from derivative financial instruments
Income from foreign exchange transactions
Other Operating Income (Expense)
Income from services rendered
Income from tariffs
Personnel expenses
Other administrative expenses
Taxes
Result from affiliated companies
Other operating income
Other operating expense
Operating Profit
Non-Operating Profit
Earnings before taxes ad profit-sharing
Net Profit for the Period
20/20