4Q12 Earnings Release Report

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Results

4Q12

Feb. 25, 2013

IDVL4: R$7.85 per share

Closing: February 25, 2013

Outstanding Shares: 62,371,178

Market Cap: R$489.6 million

Price/Book Value: 0.83

Conference Calls / Webcasts

February 26, 2013

In English 9h00 (US EST) / 12h00 (Brasília)

Connections

Brazil: +55 11 4688-6361

USA: +1 786 924-6977

Code: BI&P

In Portuguese

8:00 (US EST) / 11:00 (Brasília) Number: +55 11 4688-6361

Code: BI&P

Website: www.bip.b.br/ir

Growth of 2.6% in the Expanded Credit Portfolio in 4Q12 and 21.1% in 2012

Maintained quality of the credit portfolio: 99% of new loans rated between AA and B

Joint venture with a company of Ceagro Agrícola Ltda group and Acquisition of Voga Empreendimentos e Participações Ltda are important steps towards the creation of competitive advantages

Highlights

Expanded Credit Portfolio came to R$3.1 billion, 2.6% up in the quarter

and 21.1% up in the year.

At the end of 2012, the Corporate segment accounted for 59.3% of the

Expanded Credit Portfolio, in line with our strategy of focusing on higher

quality with shorter term assets. In a more favorable scenario, expected for

2013, we will refocus on the Middle Market segment in order to reach the

50% Corporate and 50% Middle Market strategic balance.

The share of loans rated between AA and B in the Expanded Credit

Portfolio remains high, increasing from 78.4% in September 2012 to 79.1%

in December 2012. Note that 99.2% of the loans granted in the quarter

were rated between AA and B.

The percentage of operations overdue by more than 60 days was 1.5% at

the end of 4Q12, with a significant reduction of 1.5 p.p. in the quarter and

3.5 p.p. in the year, with coverage by provisions of 3.7% in December 2012

(4.1% in September 2012 and 6.3% in December 2011).

Revenue from Services, which includes structuring fees, climbed by 32.3%

in 2012, totaling R$26.4 million.

Net Profit totaled R$3.6 million in 4Q12 (15.8% up on 3Q12) and R$14.2

million in 2012.

Keeping focused on creating structures that generate competitive

advantages, in December 2012 we entered into an association with

Lifegrain Holding de Participações Ltda, a company of the Ceagro Agrícola

Ltda group, through the creation of the joint venture C&BI Agro Partners,

aiming to boost the origination of agribusiness bonds. In February 2013, we

signed a Purchase Commitment to acquire Voga Empreendimentos e

Participações Ltda, a financial and strategic advisory company, in line with

the strategy of increasing our revenue from fees and leveraging investment

banking operations in our growing client base, especially mergers and

acquisitions and fixed income securities.

http://www.bip.b.br/ir

2/18

Summary

Message from the Management ................................................................................................................ 3 Macroeconomic Environment .................................................................................................................... 4 Key Indicators .............................................................................................................................................. 5 Operating Performance .............................................................................................................................. 6 Credit Portfolio ............................................................................................................................................ 9 Funding ..................................................................................................................................................... 12 Free Cash ................................................................................................................................................... 13 Capital Adequacy ...................................................................................................................................... 13 Risk Ratings ............................................................................................................................................... 13 Capital Markets ......................................................................................................................................... 14 Balance Sheet ............................................................................................................................................ 16 Income Statement .................................................................................................................................... 18

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Message from Management

2012 was a challenging year for the Brazilian economy, in which GDP growth was less than 1%, much lower than the

projections. However, in 2013, the Brazilian economy is expected to gain momentum due to government incentives, and

we project growth of approximately 2.5-3%.

Our Expanded Credit Portfolio grew to R$3.1 billion in 2012, led by operations in the Corporate segment (companies with

annual revenue of between R$400 million and R$2.0 billion). Considering the uncertainties in the economy, we decided to

maintain our strategy of focusing on higher quality and shorter term assets, despite the lower spreads generated by this

segment. As a result, the portfolio was allocated as follows: 59.3% to the Corporate segment and 39.1% to the Middle

Market segment. In a more favorable scenario, expected for 2013, we will refocus on the Middle Market segment in

order to reach the 50% Corporate and 50% Middle Market strategic balance.

The main reflection of the improved quality of our portfolio was the decrease in default rates: operations overdue by more

than 60 days went down 1.5 p.p. in the quarter and 3.5 p.p. in relation to 2011 (3.0% in September 2012 and 5.0% in

December 2011).

In line with the growth of our Credit Portfolio, our ability to raise funds remains high. Funding stood at R$3.0 billion at the

end of 2012, 2.1% up on September 2012 and 18.4% more than in December 2011.

We had many achievements in 2012, which shows that we are committed to our long-term Vision. We remain focused on

creating value by expanding our client base, improving processes and internal controls, as well as by attracting and training

professionals, which are our most valuable asset. Some important achievements were:

Consolidation of the sales team after renewal, reinforcement of the derivative trading desk and increase in revenue

from structured operations services.

Migration to the Level 2 Corporate Governance listing segment;

Affirmation of our risk rating by Standard & Poor’s and Fitch Ratings, despite the adverse scenario for small and

medium banks. Note that Moody’s also affirmed our ratings in February 2013;

Hiring of XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários to act as market maker for the

Company’s preferred shares;

Creation of the joint venture C&BI Agro Partners, as a result of the association between BI&P and Lifegrain Holding de

Participações LTDA, a company of the Ceagro Agrícola Ltda. group. This strategic association will allow us to increase

our share in the Brazilian agricultural market by granting loans to farmers;

Approval at an Extraordinary Shareholders’ Meeting of the Company’s conversion into a Multiple Bank, allowing us to

operate an investment portfolio, after approval by the Central Bank of Brazil. As a result, we will be able to expand our

activities and operate actively in the fixed income securities market; and

In February 2013, we signed a Purchase Commitment to acquire 100% of Voga Empreendimentos e Participações

Ltda, a financial and strategic advisory firm with vast experience in the area. Since the acquisition is subject to approval

by the Brazilian Central Bank, we also signed an operational agreement to enable joint origination and execution as

from that date. This acquisition will allow us to increase our focus on the provision of financial and strategic advisory

services related to mergers and acquisitions, corporate restructurings, and long-term funding operations, as well as to

expand our capacity for the origination, structuring and distribution of fixed income products, in line with our strategy

of being one of the leaders in the growing market for corporate fixed income securities in Brazil.

In 2013, we will continue our work to solidify our bases, aiming to reach our Vision: To be an innovative bank with

excellence in corporate credit and deep understanding of our clients’ businesses and industries they operate, becoming

also one of the leading players of the high-growth Brazilian corporate bond market.

4/18

Macroeconomic Environment

Despite all fiscal incentives offered by the government, at the end of 2012 economic growth unfortunately disappointed yet again. With lower-than-expected GDP growth in the third quarter, and the weak industrial output in the fourth, Brazil’s economic growth is headed to levels below 1% in 2012. The good news is that, after a long period of rises, industrial inventory levels are now falling to close to the historical average. Furthermore, the unemployment rate remains at a historically low level and the default rates, although still high, show a downward trend. These factors should contribute to an economic growth closer to the potential in 2013. There are still doubts, however, over private investment plans in a scenario of international uncertainty, which could hamper more robust growth in the next year. On the foreign exchange market there was a considerable rise in volatility, and the Central Bank intervened again in foreign exchange derivatives, aiming to minimize the impact of a higher exchange rate on the economic agents' planning. At the beginning of December, the dollar reached R$2.14, but then fell to R$2.04 at the close of the quarter, a clear demonstration on the part of the government that it will not tolerate a strong rise in the rate. The Central Bank’s Monetary Policy Committee continued the process of cutting interest rates, lowering the benchmark interest rate (Selic) to 7.25% in October, the lowest level since the creation of Plano Real. It also made clear that the rate will be maintained at this level for a long period, although the inflation rate remains high, both according to current data and 2013 projections. The credit in the national financial system, currently at R$2.4 trillion, rose 5.4% in the last quarter, according to the Central Bank, thus accumulating an increase of 16.2% in 2012 (below the 19% recorded in 2011). The credit/GDP ratio continued rising, surpassing 53.4%. Household default stabilized at the high level of 7.9%, but operations overdue by between 15 and 90 days fell substantially to 5.9%, after reaching 6.9% at the beginning of 2012, indicating an improvement in the official default rate in the coming quarters. Default on corporate loans continued remained flat at around 4%.

Macroeconomic Data 4Q12 3Q12 4Q11 2012e 2013e

Real GBP Growth (Q/Previous Q) 0.8% 0.6% 0.1% 0.9% 3.0%

Inflation (IPCA - IBGE) – quarterly change 1.77% 1.07% 1.43% 5.80% 5.97%

Inflation (IPCA - IBGE) – annual change 5.80% 5.28% 6.50% 5.80% 5.97%

FX (US$/R$) – quarterly change 0.64% 0.46% 1.15% 8.94% 5.50%

Interest Rate (Selic) 7.25% 7.50% 11.00% 7.25% 8.50%

e = expectation

5/18

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 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11 2012 2011 2012/2011

Result from Financial Int. before ALL 48.5 48.4 0.2% 49.3 -1.6% 207.4 170.6 21.6%

ALL Expenses 1 (7.9) (11.9) -33.9% (1.1) 584.2% (56.7) (118.1) -52.0%

Result from Financial Intermediation 40.7 36.5 11.4% 48.2 -15.6% 150.6 52.5 187.0%

Net Operating Expenses (33.8) (27.0) 25.1% (30.1) 12.6% (118.7) (107.4) 10.5%

Recurring Operating Result 6.9 9.5 -27.8% 18.1 -62.2% 31.9 (55.0) 158.1%

Non-Recurring Operating Expenses 0.0 0.0 n.m. (0.2) -100.0% (0.3) (4.1) -93.4%

Operating Result 6.9 9.5 -27.8% 17.9 -61.7% 31.7 (59.1) 153.6%

Net Profit (Loss) 3.6 3.1 15.8% 10.3 -64.9% 14.2 (31.7) 144.8%

Assets & Liabilities 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Loan Portfolio 2,624.3 2,548.4 3.0% 2,269.6 15.6%

Expanded Loan Portfolio2 3,067.9 2,990.9 2.6% 2,534.4 21.1%

Cash & Short Term Investments

3 447.8 955.1 -53.1% 351.3 27.5%

Securities and Derivatives 731.3 613.1 19.3% 1,443.1 -49.3%

Securities excl. Agro Sec. & Private Credit Bonds

4 445.9 338.1 31.9% 1,318.2 -66.2%

Total Assets 4,022.0 4,337.1 -7.3% 4,278.3 -6.0%

Total Deposits 2,274.6 2,194.5 3.7% 1,851.2 22.9%

Open Market 241.9 597.2 -59.5% 867.9 -72.1%

Foreign Borrowings 388.6 432.0 -10.0% 463.8 -16.2%

Domestic On-lending 335.5 309.3 8.5% 218.2 53.7%

Shareholders’ Equity 587.2 587.6 -0.1% 577.1 1.7%

Performance 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11 2012 2011 2012/2011

Free Cash 571.1 621.8 -8.2% 762.3 -25.1%

NPL 60 days/ Loan portfolio 1.5% 3.0% -1.5 p.p. 5.0% -3.5 p.p.

NPL 90 days/ Loan portfolio 1.2% 1.8% -0.6 p.p. 4.7% -3.5 p.p.

Basel Index 4

14.9% 15.8% -0.9 p.p. 18.2% -3.3 p.p.

ROAE 2.5% 2.2% 0.3 p.p. 7.3% -4.9 p.p. 2.4% -6.3% 8.8 p.p.

Adjusted Net Interest Margin (NIMa) 5.9% 6.1% -0.3 p.p. 6.7% -0.8 p.p. 6.4% 5.9% 0.4 p.p.

Efficiency Ratio 78.4% 69.7% 8.7 p.p. 74.2% 4.2 p.p. 68.7% 74.4% -5.7 p.p.

Other Information 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Number of Corporate Clients 851 774 9,9% 734 15,9%

Number of Employees 436 423 3,1% 421 3,6%

Details in the respective sessions of this report:. 1 Additional Allowance for Loan Losses (ALL) included. 2 Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and agro securities (CDCAs, CDA/WAs and CPRs). 3 Reduction impacted by the decrease of repos. More details on the section Profitability of this report. 4 Excluding Agro Securities (CPRs and CDA/WA) and Private Credit Bonds (PNs and debentures).

BI&P - Banco Indusval & Partners is a commercial bank listed at Level 2 Corporate Governance of the BM&FBOVESPA, with 45 years of experience in the financial market, focusing on local and foreign currency corporate loan products. BI&P relies on a network of 11 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.

6/18

Operating Performance

Financial Intermediation Result

before Allowance for Loan Losses

Net Profit

Expanded Credit Portfolio Funding

Profitability

Financial Intermediation 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11 2012 2011 2012/2011

Financial Intermediation Revenues 123.7 131.7 -6.0% 175.8 -29.6% 640.0 631.7 1.3%

Loan Operations 62.3 62.9 -0.9% 80.7 -22.7% 258.3 283.5 -8.9%

Loans & Discounts Receivables 46.9 49.1 -4.6% 63.6 -26.4% 205.3 247.5 -17.1%

Financing 7.5 7.9 -4.2% 7.9 -5.3% 29.3 23.8 23.0%

Other 8.0 5.9 34.8% 9.1 -12.6% 23.7 12.1 95.5%

Securities 28.6 53.4 -46.4% 57.7 -50.4% 265.1 258.2 2.7%

Derivative Financial Instruments 15.6 4.7 228.8% (6.3) 346.5% 22.1 (38.2) 157.7%

FX Operations Result 17.2 10.6 61.9% 43.7 -60.6% 94.6 128.3 -26.2%

Financial Intermediation Expenses 75.2 83.3 -9.7% 126.5 -40.6% 432.7 461.1 -6.2%

Money Market Funding 56.4 69.2 -18.5% 79.2 -28.7% 330.3 324.1 1.9%

Time Deposits 40.0 37.3 7.3% 41.7 -4.2% 163.3 180.7 -9.6%

Repurchase Transactions 8.4 22.7 -63.1% 30.2 -72.2% 129.7 117.3 10.6%

Interbank Deposits 1.6 2.4 -33.2% 2.1 -25.6% 10.5 11.0 -4.2%

Agro (LCA), Real State (LCI) & Bank Notes (LF) 6.5 6.9 -5.2% 5.1 26.7% 26.8 15.1 77.6%

Loans, Assignments & Onlending 18.8 14.0 33.6% 47.3 -60.4% 102.4 137.0 -25.3%

Foreign Borrowings 14.5 8.5 70.2% 44.2 -67.2% 84.7 126.9 -33.2%

Domestic Borrowings & Onlending 4.3 5.5 -22.8% 3.2 35.6% 17.6 10.1 73.6%

Gross Result from Financial Interm. before ALL 48.5 48.4 0.2% 49.3 -1.6% 207.4 170.6 21.6%

Allowance for Loan Losses (ALL) (7.9) (11.9) -33.9% (1.1) 584.2% (56.7) (118.1) -52.0%

Gross Result from Financial Intermediation 40.7 36.5 11.4% 48.2 -15.6% 150.6 52.5 187.0%

49,3 50,8 59,6 48,4 48,5

170,6

207,4

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

R$

mill

ion

10,3

5,0 2,4 3,1 3,6

14,2

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

R$

mill

ion

2,5 2,8 2,8 3,0 3,1

4Q11 1Q12 2Q12 3Q12 4Q12

R$

bill

ion

Loans & Financing in Reais Trade Finance Guarantees Issued Agro Bonds (CPR, CDA/WA and CDCA) Private Credit Bonds (PNs and Debentures)

2,5 2,7 2,8 2,9 3,0

4Q11 1Q12 2Q12 3Q12 4Q12

R$

bill

ion

Time Deposits Insured Time Deposits

Agro Bonds Bank and Real State Notes

Interbank & Demand Deposits Domestic Onlending

Trade Finance and Foreign Borrowings

-1.6% 21.6%

-64.9%

-31.7

21.1%

2.6%

18.4%

2.1%

15.8% 0,2%

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In 4Q12, the Result from Financial Intermediation before Expenses with the Allowance for Loan Losses totaled R$48.5

million, remaining virtually stable quarter on quarter and decreasing by 21.6% over 4Q11. In 2012, this figure moved up by

21.6%.

Revenue from Loan Operations remained flat in relation to 3Q12, despite the cuts in the Selic rate and the effects of the

foreign and domestic scenario on the Brazilian economy. The growth in the credit portfolio, both in the quarter-on-quarter

and year-on-year comparison, was substantial in the Corporate segment, where credits usually have higher quality.

However, the lower spreads negatively impacting revenue. It is important to point out that there was an increase of 38.5%

in the quarter and 99.6% in the year in revenues from credit recovery, totaling R$7.9 million and R$22.8 million,

respectively.

Income from Securities, which includes the results from the treasury’s directional portfolio and CPR, CDA/WA and

debenture operations, is offset by funding expenses. This result was impacted not only by the period reduction in the

benchmark interest rate (Selic), but also by the lower balance of securities subject to repurchase agreements, which

dropped from R$220.2 million in 3Q12 to R$37.2 million in 4Q12, and from R$733.4 million in 2011 to R$407.9 million in

2012. This decline also led to a reduction in open market funding expenses, from R$874.3 million in 3Q12 to R$505.2

million in 4Q12, and from R$1,029.2 million in 2011 to R$850.6 million in 2012. The combination of lower volume and the

cut in the interest rate resulted in a 63.1% decline in expenses with repo operations.

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 IPCA and IGPM,

as well as foreign borrowings (non-trade related), to hedge coffee prices resulting from CPR operations and indexers of

federal government bonds held in the securities portfolio, in addition to the directional portfolio. Thus, the result from

derivative financial instruments has offsets in both revenue and expenses from financial intermediation resulting from

operations in local and foreign currency, commodities and indexes.

The Result from Foreign Exchange Operations, as well as Expenses with Foreign Borrowings, was impacted by the

devaluation of the real against the U.S. dollar, in both the quarterly and annual comparisons.

The 7.3% increase in Expenses with Time Deposits reflects the 7.4% upturn in the average balance of bank deposit

certificates (CDBs) and time deposits with special guarantees (DPGEs) in the period. In 2012, these expenses fell by 9.6%,

despite the 13.2% increase in the average volume of time deposits in the period, as there was a reduction in deposits costs,

due to the cut in the benchmark interest rate in the period and the increased share of agribusiness letters of credit (LCAs)

and real estate letters of credit (LCIs) in the funding mix.

As a reflection of the better quality of our credit portfolio, expenses with allowance for loan losses decreased by 33.9% in

4Q12 (R$7.9 million in December 2012 and R$11.9 million in September 2012), and 52.0% in 2012 (R$56.7 million in 2012

and R$118.1 million in 2011). This reduction had a direct impact on the Result from Financial Intermediation, which came

to R$40.7 million in the quarter, 11.4% up on 3Q12, and R$150.6 million in the year, a 187.0% increase over 2011.

Net Interest Margin

Adjusted net interest margin stood at 5.9% in 4Q12, 0.3 p.p. down quarter on quarter, and widened by 0.5 p.p. between

2011 and 2012, from 5.9% to 6.4%.

Net Interest Margin 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11 2012 2011 2012/2011

A. Result from Financial Interm. before ALL 48.5 48.4 0.2% 49.3 -1.6% 207.4 170.6 21.6%

B. Average Interest bearing Assets 3,891.0 4,106.5 -5.2% 4,192.4 -7.2% 4,106.4 3,958.4 3.7%

Adjustment for non-remunerated avg assets 1 (505.2) (874.3) -42.2% (1,155.8) -56.3% (851.5) (1,078.4) -21.0%

B.a Adj. Average Interest bearing Assets 3,385.8 3,232.2 4.8% 3,036.6 11.5% 3,254.9 2,879.9 13.0%

Net Interest Margin (NIM) (A/B) 5.1% 4.8% 0.3 p.p. 4.8% 0.3 p.p. 5.0% 4.3% 0.7 p.p.

Adj. Net Interest Margin (NIMa) (Aa/Ba) 5.9% 6.1% -0.3 p.p. 6.7% -0.8 p.p. 6.4% 5.9% 0.4 p.p. 1. Repos with equivalent volumes, tenors and rates both in assets and liabilities.

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Eficiência

Efficiency Ratio 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11 2012 2011 2012/2011

Personnel Expenses 23.7 21.4 10.5% 21.4 10.9% 89.8 71.7 25.3%

Contributions and Profit-sharing 1.8 3.0 -38.4% 3.6 -49.6% 9.2 8.5 8.1%

Administrative Expenses 13.3 13.0 2.2% 14.2 -6.0% 53.1 50.4 5.4%

Taxes 4.3 2.3 92.1% 3.1 40.7% 12.6 13.2 -4.3%

A- Total Operating Expenses 43.2 39.7 8.8% 42.3 2.2% 164.8 143.8 14.6%

Gross Income Fin. Interm. (w/o ALL) 48.5 48.4 0.2% 49.3 -1.6% 207.4 170.6 21.6%

Income from Services Rendered 6.7 7.7 -11.9% 6.9 -2.1% 26.4 19.9 32.3%

Income from Banking Tariffs 0.2 0.2 4.3% 0.2 9.0% 0.7 0.9 -14.0%

Other Net Operating Income (*) (0.4) 0.7 -157.6% 0.6 -172.8% 5.4 1.9 176.8%

B- Total Operating Income 55.1 57.0 -3.3% 57.0 -3.3% 239.8 193.3 24.1%

Efficiency Ratio (A/B) 78.4% 69.7% 8.7 p.p. 74.2% 4.2 p.p. 68.7% 74.4% -5.7 p.p.

(*) Net of other Operating Expenses to offset the cost of acquisition and income on sale of commodities in the activity of Serglobal Cereais.

In 2012, the efficiency ratio stood at 68.7% in 2012, a significant improvement of 5.7 p.p. In 4Q12, the efficiency ratio

climbed by 8.7 p.p., closing the quarter at 78.4%, due to the substantial increase in operating expenses, especially (i)

personnel expenses, in view of the 7.5% pay rise following the collective bargaining agreement effective as of September

2012, and (ii) tax expenses, which increased mainly because of taxes levied on the conversion of operations performed by

the arbitration board in the quarter.

We believe there is still room for improvement in our efficiency ratio, especially with the expansion of our credit portfolio,

increased share of revenue from fees, and optimization of operating expenses, which reflect our focus on the continuous

review of processes and pursuit of excellence in all areas.

Net Profit

The operating income of R$6.9 million in 4Q12, after (i) the non-operating loss from the sale of properties and idle assets,

(ii) taxes and contributions, and (iii) profit sharing, resulted in a net profit of R$3.6 million, 15.8% up in the quarter, mainly

due to the substantial decrease in the allowance for loan losses. Net profit amounted to R$14.2 million in 2012, versus a

loss of R$31.7 million in 2011.

9/18

Credit Portfolio

Expanded Credit Portfolio

At the end of December 2012, the Expanded Credit Portfolio totaled R$3.1 billion, 2.6% up on the end of the previous

quarter and 21.1% more than in December 2011. The Expanded Credit Portfolio includes loan and financing operations in

Real and trade finance operations, detailed in note 6(a) to the financial statements, as well as: (i) guarantees issued

(sureties, guarantees and letters of credit), (ii) agribusiness bonds originated from the absorption of the operations of

Serglobal Cereais (CPR and CDA/WA); and (iii) private credit bonds (promissory notes and debentures). Both (ii) and (ii)

were booked under Securities as per the Central Bank regulations.

Expanded Credit Portfolio by Product Group 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Loans & Financing in Real 2,080.6 1,974.4 5.4% 1,776.5 17.1%

Trade Finance (ACC/ACE/IMPFIN) 426.0 463.0 -8.0% 457.6 -6.9%

Guarantees Issued (LGs & L/Cs) 158.2 167.5 -5.6% 139.8 13.1%

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 327.1 306.7 6.6% 129.4 152.9%

Private Credit Bonds (Securities: PNs & Debentures) 40.1 41.1 -2.6% 10.4 283.8%

Other 35.9 38.1 -5.9% 20.6 74.2%

TOTAL 3,067.9 2,990.9 2.6% 2,534.4 21.1%

Loans and financing operations in Real, which include loans, discounted bills, acquisition of client receivables and BNDES

onlendings, represented 67.8% of the Expanded Credit Portfolio. This group was led by loans and BNDES onlendings, which

climbed by 7.6% and 11.4%, respectively, in the quarter and 11.2% and 62.0% in 12 months.

Trade finance operations, which accounted for 13.9% of the Expanded Credit Portfolio, include import financing (R$111.9

million) and export financing (ACC/ACE in the amount of R$314.1 million).

The guarantees issued (sureties, guarantees and import letters of credit) represented 5.2% of the Expanded Credit

Portfolio, 5.6% down in the quarter and 13.1% up in the year.

Though agribusiness bonds and private credit bonds represent credit exposure, they are classified under marketable

securities in the balance sheet, in accordance with Brazilian Central Bank regulations due to their tradability. These bonds

jointly represented 9.3% of the Expanded Credit Portfolio, a 3.8% increase in the quarter and 128.4% up in 12 months.

Our Expanded Credit Portfolio breakdown is as follows:

By Economic Activity By Region By Customer Segment

Commerce 25%

Industry 47%

Financial Institution

1%

Other Services

21%

Individuals 6%

Southeast 56%

South 18% Midwest

20%

Northeast 5%

North 1%

Corporate 59%

Middle Market

39%

Others 2%

10/18

By Economic Sector By Product

As shown in the table below, agribusiness bonds activities, which began in the first quarter of 2011, continue to expand

their share of the Expanded Credit Portfolio:

Agro Bonds Portfolio 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Booked under Securities 245.3 233.9 4.9% 114.5 114.2%

Warrants - CDA/WA 8.0 7.7 2.9% 0.0 n.m.

Agro Product Certificate - CPR 237.4 226.1 5.0% 114.5 107.3%

Booked under Credit Portfolio - Loans & Financing 81.8 72.9 12.2% 14.9 450.5%

Agro Credit Rights Certificate - CDCA 81.8 72.9 12.2% 14.9 450.5%

TOTAL AGRO BONDS 327.1 306.7 6.6% 129.4 152.9%

Credit Portfolio

The “classic” credit portfolio, which excludes off-balance sheet items (guarantees issued) and credits classified under

marketable securities, totaled R$2.6 billion, 3.0% up in the quarter and a 15.6% upturn in 12 months, R$2.2 billion of which

in operations in Real and R$426.0 million in trade finance operations.

As the previous quarters indicated, our Corporate portfolio continued to follow its upward trend, in view of our strategy of

focusing our growth on higher quality and shorter term assets. At the end of December 2012, the Corporate segment

represented 56.4% of the portfolio (53.9% in September 2012) and the middle market segment, 42.0% (44.3% in

September 2012). The remaining 1.6% (1.8% in September 2012) classified as Others includes the remaining balance of the

direct consumer credit - used vehicles (CDC) portfolio, portfolios acquired from other banks and financing of non-operating assets.

Credit Portfolio By Client Segment 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Middle Market 1,101.9 1,127.7 -2.3% 1,571.8 -29.9%

Local Currency - Real 882.0 880.2 0.2% 1,292.5 -31.8%

Loans & Discounted Receivables 737.4 743.7 -0.8% 1,136.9 -35.1%

Financing 0.0 0.0 n.m. 0.4 n.m.

BNDES / FINAME 144.7 136.6 5.9% 155.2 -6.8% Foreign Currency 219.9 247.5 -11.2% 279.3 -21.3%

Corporate 1,479.8 1,373.6 7.7% 641.3 130.8%

Local Currency – Real 1,273.7 1,158.2 10.0% 463.0 175.1%

Loans & Discounted Receivables 1,083.0 942.2 14.9% 411.2 163.4%

BNDES / FINAME 190.7 164.5 16.0% 51.8 268.4%

Acquired Receivables 0.0 51.6 n.m. 0.0 n.m. Foreign Currency 206.1 215.5 -4.3% 178.3 15.6%

Other 42.6 47.0 -9.3% 56.5 -24.6%

Consumer Credit – used vehicles 0.6 1.1 -48.1% 4.3 -86.9%

Acquired Loans & Financing 6.7 8.9 -24.1% 35.9 -81.3%

Non-Operating Asset Sales Financing 35.3 37.0 -4.6% 16.3 117.0%

CREDIT PORTFOLIO 2,624.3 2,548.4 3.0% 2,269.6 15.6%

7,2% 1,1% 1,1% 1,2% 1,5% 1,6% 1,7%

2,1% 2,4% 2,5%

3,2% 3,2%

3,9% 3,9% 4,0% 4,1%

6,5% 12,6%

14,0% 22,1%

Other Industries (%lower than 1%) Financial institutions

Mining Advertising & Publishing

Financial Institutions Machinery and Equipments

Power Generation & Distribution Oil & Biofuel

Education Commerce - Retail & Wholesale

Pulp & Paper Textile, apparel & Leather

Chemical & Pharmaceutical Metal Industry

Electronics Transportation & Logistics

Automotive Construction

Food & Beverage Agribusiness

Loans & Discounts

57%

BNDES 11%

Trade Finance

14%

Agro Bonds 11%

Guarantees Issued

5%

Debentures 1%

Other 1%

11/18

By Collateral By Customer Concentration By Customer Concentration

Quality of Credit Portfolio

Rating AA A B C D E F G H Comp. TOTAL

ALL/ Loan

Port. % Required Provision % 0% 0.5% 1% 3% 10% 30% 50% 70% 100%

4Q12

O/S Loans 53.4 1.103.2 919.8 344.7 65.0 82.2 27.1 8.5 20.4 - 2,624.3 3.7%

Allowance for Loan Losses 0.0 5.5 9.2 10.3 6.5 24.7 13.6 6.0 20.4 0.0 96.1

3Q12

O/S Loans 158.2 948.3 892.4 349.2 45.8 103.5 12.4 3.9 34.8 - 2,548.4 4.1%


4Q11

O/S Loans 48.3 901.5 636.5 450.1 54.1 77.9 14.7 14.0 72.4 - 2,269.6 6.3%


Operations rated in the top risk bands (AA to B) climbed to 79.1% of the total credit operations in the quarter (78.4% in

September 2012 and 69.9% in December 2011). It is important to note that the percentage of loans rated between AA and

B granted in 4Q12 remained high at 99.2%, thus consolidating the improvement in portfolio quality, as shown in the chart

below:

Operations rated between D and H, which amounted to R$203.2 million (R$200.4 million in September 2012 and R$233.2

million in December 2011), include R$163.5 million that are not overdue, equivalent to 80% of such operations (61% in

September 2012 and 51% in December 2011). The remaining 20%, shown below, are made up of delinquent operations:

Default by segment 4Q12 3Q12 > 60 days > 90 days

4Q12 3Q12 4Q12 3Q12

Credit Portfolio NPL %T NPL %T NPL %T NPL %T

Middle Market 1,448.9 1,127.7 37.9 2.6% 76.6 6.8% 30.9 2.1% 44.0 3.9%

Corporate 1,132.9 1,373.6 1.5 0.1% - 0.0% - 0.0% - 0.0%

Other 42.6 47.0 0.3 0.6% 1.0 2.2% 0.3 0.6% 0.6 1.3%

TOTAL 2,624.3 2,548.4 39.7 1.5% 77.6 3.0% 31.1 1.2% 44.6 1.8%

Allowance Loan Losses (ALL) 96.1 103.5

ALL / NPL - 242.3% 133.3% 308.6% 231.9%

ALL / Loan Portfolio 3.7% 4.1% - - - -

The default rates on loans overdue by more than 60 days (NPL 60 days) recorded a significant reduction of 1.5 p.p. quarter

on quarter and 3.5 p.p. in 12 months, reflecting the better quality of our credit portfolio. The default rates on loans

Aval PN 47%

Receivables 25%

Pledge / Lien 10%

Property 8%

Monitored Pledge

6%

Vehicles 3%

Securities 1%

10 largest 14%

11 - 60 31%

61 - 180 28%

Other 27%

Up 90 days 38%

91 to 180 days 16%

181 to 360 days 17%

+360 days 29%

12/18

overdue by more than 90 days (NPL 90 days) fell by 0.6 p.p. in the quarter and 3.5 p.p. in 12 months. The potential default

rate (ratio of installments overdue by between 15 and 60 days to the total credit portfolio) stood at 0.8% in December

2012, 0.5 p.p. up in the quarter and 0.2 p.p. down on December 2011.

In 2012, the default rates improved substantially mainly as a result of (i) the strategy adopted in 2011 of enhancing our

credit portfolio with better quality operations and (ii) the strategic decision, in view of the uncertainties in the

macroeconomic scenario, of increasing the share of the Corporate segment in our credit portfolio.

During the quarter, R$15.5 million (R$103.5 million in 2012) in loan operations, already fully provisioned in previous

quarters, were written off as losses. The allowance for loan losses, amounting to R$96.1 million, provides coverage to

242.3% of the loans overdue by more than 60 days and 308.6% of the loans overdue by more than 90 days.

Funding

Funding totaled R$3.0 billion, 2.1% up in the quarter and an 18.4% increase in 12 months. In 2012, the highlight was

funding through agribusiness letters of credit (LCA), which recorded a 10.9% upturn in the quarter and 72.8% growth in the

year, and real estate letters of credit (LCI), which began in the last quarter, as they contributed to more balanced funding

costs, and allowed greater diversification in products made available to our clients. However, time deposits via the issue of

Bank Deposit Certificates (CDB) and Time Deposits with Special Guarantee (DPGE I) still account for the bulk of the funding

operations, with 23.6% (22.6% in September 2012 and 29.3% in December 2011) and 33.6% (34.7% in September 2012 and

29.5% in December 2011), respectively.

Funding in foreign currency is specially allocated to trade finance operations and its balance is impacted by foreign

exchange variations.

Total Funding 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Total Deposits 2,274.6 2,194.5 3.7% 1,851.2 22.9%

Time Deposits 707.0 664.6 6.4% 743.0 -4.8% Insured Time Deposits (DPGE) 1,007.4 1,019.0 -1.1% 748.1 34.7%

Agro Notes (LCA) 364.4 328.8 10.9% 210.9 72.8% Bank Notes (LF) 29.5 36.4 -19.0% 7.4 301.4%

Real State Notes (LCI) 12.1 5.3 130.3% 0.0 n.m. Interbank Deposits 98.0 92.1 6.4% 88.5 10.7%

Demand Deposits and Other 56.1 48.3 16.2% 53.4 5.1%

Domestic Onlending 335.5 309.3 8.5% 218.2 53.7%

Foreign Borrowings 388.6 432.0 -10.0% 463.8 -16.2%

Trade Finance 337.4 381.1 -11.5% 417.1 -19.1% Other Foreign Borrowings 51.2 50.8 0.8% 46.7 9.6%

TOTAL 2,998.7 2,935.8 2.1% 2,533.2 18.4%

By Type By Investor By Maturity

Insured Time Dep.

(DPGE) 34%

Time Deposit

24%

Agro Bonds 12% Bank and

Real State Notes

1%

Onlendings 11%

Trade Finance

11%

Foreign Loans

2%

Interbank 3%

Demand 2%

Institutional Investors

44%

National Banks

7%

Individuals 7%

Corporates 11%

Brokers 3%

Other 4%

BNDES 11%

Foreign Banks 13%

Demand 2%

up 90 days 29%

90 to 180 days 18%

180 to 360 days 9%

+360 days 42%

13/18

The average term of deposits stood at 800 days from issuance (849 days in September 2012) and 430 days from maturity

(476 days in September 2012).

Average Term in days

Type of Deposit from issuance to maturity 1

Time Deposits 487 294

Interbank 179 77

Time Deposits Special Guarantee (DPGE) 1.315 683

Agro Notes (LCA) 129 69

Bank Notes (LF) 795 567

Real State Letters of Credit (LCI) 165 108

Portfolio of Deposits 2 800 430

1 From December 31, 2012. 2 Volume weighted average.

Free Cash

On December 31, 2012, the free cash position totaled R$571.1 million, equivalent to

25.1% of total deposits and 1.0x 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.

The following table shows BI&P’s position in relation to the Central Bank’s minimum capital requirements:

Basel Index 4Q12 3Q12 4Q12/3Q12 4Q11 4Q12/4Q11

Total Capital 583.3 585.2 -0.3% 574.7 1.5%

Tier I 584.3 586.2 -0.3% 569.1 2.7%

Tier II 1.3 1.4 -0.9% 8.0 -83.3%

Deductions (2.3) (2.4) -4.8% (2.4) -4.8%

Required Capital 430.3 407.0 5.7% 347.5 23.8%

Credit Risk allocation 372.9 350.7 6.3% 303.9 22.7%

Market Risk Allocation 38.2 36.6 4.4% 34.3 11.5%

Operating Risk Allocation 19.7 19.7 0.0% 9.3 112.1%

Excess over Required Capital 153.1 178.2 -14.1% 227.3 -32.7%

Basel Index 14.9% 15.8% -0.9 p.p. 18.2% -3.3 p.p.

Classificação de Risco – Ratings

Agency Classification Observation Last

Report Financial

Data

Standard & Poor’s BB/ Stable /B

brA+/ Stable /brA-1

Global Scale

Local Scale - Brazil Aug. 06, 2012 Mar. 31, 2012

Moody's Ba3/ Stable /Not Prime

A2.br/ Stable /BR-2

Global Scale

Local Scale - Brazil Feb. 07, 2013 Sept. 30, 2012

FitchRatings BBB/ Stable /F3 Local Scale - Brazil Nov. 12, 2012 Sept. 30, 2012

RiskBank 10.68

Ranking: 28

Riskbank Index

Low Risk Short Term Jan. 10, 2013 Sept. 30, 2012

762 622 571

4Q11 3Q12 4Q12

R$

mill

ion

14/18

Capital Market

Total Shares and Free Float

Number of shares as of December 31, 2012

Type Corporate

Capital Controlling

Group Management Treasury Free Float %

Common 36,945,649 20,743,333 277,307 - 15,925,009 43.1%

Preferred 26,160,044 609,226 60,125 734,515 24,756,178 94.6%

TOTAL 63,105,693 21,352,559 337,432 734,515 40,681,187 64.5%

Share Buyback Program

The 5th Share Buyback Program, involving the acquisition of up to 1,720,734 preferred shares, was approved by the Board

of Directors on October 19, 2011, and was effective until October 18, 2012. No shares were repurchased under the

program.

Stock Option Plan

The following Stock Options Plans, approved to be extended to the Company’s executive officers and managers, as well as

individuals who provide services to the Company or its subsidiaries, present the following balances as of December 31,

2012:

Quantity

Stock Option Plan

Date of Approval

Grace Period Term for Exercise

Granted Exercised Extinct Not Exercised

I 03.26.2008 Three years Five years 2,039,944 37,938 215,967 1,786,039

II 04.29.2011 Three years Five years 1,840,584 - 294,494 1,546,090

III 04.29.2011 Five years Seven years 1,850,786 - - 1,850,786

IV 04.24.2012 Up to five years Five years 355,840 - 3,511 352,329

6,087,154 37,938 513,972 5,535,244

The aforementioned Stock Options Plans are filed with the Brazilian Securities Commission (CVM) and are also available in

the Company’s IR website.

Remuneration to Shareholder

Interest on Own Equity of R$7.5 million, equivalent to R$0.12024 per share, was declared on December 17, 2012, related

to fiscal year 2012. The payment was made in advance for fiscal year 2012 and will be submitted to approval of the Annual

Shareholders’ Meeting to be held in April 2013.

Share Performance

BI&P’s preferred shares (IDVL4), listed under Level 2 Corporate Governance at BM&FBOVESPA, closed 4Q12 at R$7.95, for

market cap of R$495.9 million, considering existing shares as of December 31, 2012 and excluding treasury stock. The price

of IDVL4 shares increased 20.6% (22.4% adjusted for earnings) in 4Q12 and 17.8% (19.5% adjusted for earnings) in the 12-

month period ended in December 2012. The Bovespa Index (Ibovespa) rose 3.0% in 4Q12 and 7.4% when compared to

4Q11. At the end of the quarter, the price/book value (P/BV) was 0.84.

15/18

Share Price Evolution in the last 12 months

Liquidity and Trading Volume

BI&P’s preferred shares (IDVL4) were traded in 84.7% of the sessions in 4Q12 and 92.7% of the 246 sessions in 2012. In

4Q12, a total of 1.4 million IDVL4 shares were traded in 361 transactions on the spot market, for total volume of R$9.4

million. In the 12 months ended December 2012, the financial volume traded on the spot market stood at R$33.7 million,

totaling around 4.8 million preferred shares in 2,936 trades.

Shareholder Base

Position as of December 31, 2012

Qtt Type of Shareholder IDVL3 % IDVL4 % TOTAL %

5 Controlling Group 20,743,333 56.15% 609,226 2.33% 21,352,559 33.84%

6 Management 277,307 0.75% 60,125 0.23% 337,432 0.53%

- Treasury - 0.00% 734,515,00 2.81% 734,515 1.16%

40 National Investors 1,201,090 3.25% 8,425,179 32.21% 9,626,269 15.25%

13 Foreign Investors 4,891,304 13.24% 13,976,144 53.43% 18,867,448 29.90%

8 Corporate - 0.00% 16,512 0.06% 16,512 0.03%

296 Individuals 9,832,615 26.61% 2,338,343 8.94% 12,170,958 19.29%

368 TOTAL 36,945,649 100.00% 26,160,044 100.00% 63,105,693 100.00%

60

70

80

90

100

110

120

130

140

IBOVESPA IDVL4 IDVL4 adjusted for earnings

16/18

Balance Sheet

Consolidated R$ thousand

Assets 12/31/11 09/30/12 12/31/12

Current 3,226,561 3,433,129 3,063,804

Cash 45,455 6,324 18,250

Short-term interbank investments 305,833 941,951 429,535

Open market investments 229,694 921,810 377,495

Interbank deposits 76,139 20,141 52,040

Securities and derivative financial instruments 1,111,272 568,460 671,587

Own portfolio 364,656 364,271 473,468

Subject to repurchase agreements 544,740 9,056 26,654

Linked to guarantees 184,866 172,429 150,415

Subject to the Central Bank - - -

Derivative financial instruments 17,010 22,704 21,050

Interbank accounts 1,600 2,680 938

Loans 1,234,820 1,366,002 1,495,533

Loans - private sector 1,255,136 1,384,176 1,515,490

Loans - public sector - - -

(-) Allowance for loan losses (20,316) (18,174) (19,957)

Other receivables 464,465 498,874 390,712

Foreign exchange portfolio 442,822 415,595 363,445

Income receivables 45 52 67

Negotiation and intermediation of securities 20,238 21,341 14,356

Sundry 8,200 66,379 17,300


Other assets 63,116 48,838 57,249

Other assets 66,049 48,911 59,695

(-) Provision for losses (4,748) (2,757) (4,277)

Prepaid expenses 1,815 2,684 1,831

Long term 999,609 852,124 906,467

Short-term interbank investments - 6,824 -

Open market investments - - -

Interbank deposits - 6,824 -

Marketable securities and derivative financial instruments 331,872 44,626 59,737

Own portfolio 97,396 41 42

Subject to repurchase agreements 212,240 - -

Linked to guarantees - - -

Derivative financial instruments 22,236 44,585 59,695

Interbank Accounts 5,564 4,202 4,083

Loans 533,949 651,963 693,561

Loans - private sector 649,164 726,648 756,459

Loans - public sector - - -


Other receivables 127,636 144,171 148,536

Credit guarantees honored - 778 778

Trading and Intermediation of Securities 504 518 524

Sundry 127,514 148,986 156,024

(-) Allowance for loan losses (382) (6,111) (8,790)

Other rights 588 338 550

Permanent Assets 52,107 51,895 51,711

Investments 24,528 23,968 24,980

Subsidiaries and Affiliates 22,842 22,282 23,294

Other investments 1,842 1,842 1,842

(-) Loss Allowances (156) (156) (156)

Property and equipment 13,071 14,401 13,648

Property and equipment in use 1,210 1,210 1,210

Revaluation of property in use 2,634 2,634 2,634

Other property and equipment 17,333 19,965 19,660

(-) Accumulated depreciation (8,106) (9,408) (9,856)

Intangible 14,508 13,526 13,083

Goodwill 2,391 2,391 2,276

Other intangible assets 13,100 13,100 13,100

(-) Accumulated amortization (983) (1,965) (2,293)

TOTAL ASSETS 4,278,277 4,337,148 4,021,982

17/18


Liabilities 12/31/11 09/30/12 12/31/12

Current 2,665,276 2,496,098 2,123,097

Deposits 791,158 808,109 839,973

Cash deposits 53,435 48,334 56,145

Interbank deposits 85,675 91,878 97,867

Time deposits 652,048 667,897 685,961

Other - - -

Funds obtained in the open market 867,896 597,214 241,904

Own portfolio 747,830 9,302 26,745

Third party portfolio - 240,045 106,200

Unrestricted Portfolio 120,066 347,867 108,959

Funds from securities issued or accepted 218,217 341,511 376,325

Agribusiness Letters of Credit, Real State Notes & Bank Notes 218,217 341,511 376,325

Interbank accounts - 185 -

Receipts and payment pending settlement - 185 -

Interdepartamental accounts 24,963 8,312 9,168

Third party funds in transit 24,963 8,312 9,168

Borrowings 417,275 431,964 388,626

Foreign borrowings 417,275 431,964 388,626

Onlendings 81,411 128,029 119,575

BNDES 46,221 82,609 77,426

FINAME 35,190 45,420 42,149

Other liabilities 264,356 180,774 147,526

Collection and payment of taxes and similar charges 244 820 509

Foreign exchange portfolio 61,744 54,286 46,177

Taxes and social security contributions 4,895 2,864 4,682

Social and statutory liabilities 15,038 2,000 10,320

Negotiation and intermediation securities 150,978 95,942 70,082

Derivative financial instruments 24,611 13,576 7,604 Sundry 6,846 11,286 8,152

Long Term 1,034,363 1,252,501 1,310,648

Deposits 841,794 1,015,931 1,028,553

Interbank Deposits 2,804 195 110

Time deposits 838,990 1,015,736 1,028,443

Funds from securities issued or accepted - 28,943 29,751

Agribusiness Letters of Credit, Real State Notes & Bank Notes - 28,943 29,751

Loan obligations 46,504 - -

Foreign loans 46,504 - -

Onlending operations - Governmental Bureaus 136,816 181,267 215,876

Federal Treasure 10,766 8,733 8,407

BNDES 57,320 85,132 118,477

FINAME 66,785 86,985 88,780

Other Institutions 1,945 417 212

Other liabilities 9,249 26,360 36,468

Taxes and social security contributions 7,663 22,099 29,598

Derivative financial instrument 15 1,203 2,620

Sundry 1,571 3,058 4,250

Future results 1,503 990 1,036

Shareholders' Equity 577,135 587,559 587,201

Capital 572,396 572,396 572,396

Capital Reserve 5,899 12,331 14,886

Revaluation reserve 1,389 1,352 1,340

Profit reserve - 7,339 3,512

(-) Treasury stock (5,958) (5,859) (5,859)

Asset valuation Adjustment 6,642 - -

(3,233) - -

Accumulated Profit / (Loss) - - 926

TOTAL LIABILITIES 4,278,277 4,337,148 4,021,982

18/18

Income Statement


4Q11 3Q12 4Q12 2011 2012

Income from Financial Intermediation 175,836 131,684 123,742 631,658 640,033

Loan operations 80,692 62,885 62,343 283,461 258,285

Income from securities 57,719 53,436 28,626 258,182 265,057

Income from derivative financial instruments (6,309) 4,730 15,554 (38,246) 22,087

Income from foreign exchange transactions 43,734 10,633 17,219 128,261 94,604

Expenses from Financial Intermediaton 127,652 95,145 83,055 579,181 489,413

Money market funding 79,167 69,220 56,444 324,069 330,328

Loans, assignments and onlendings 47,337 14,043 18,756 137,007 102,353

Allowance for loan losses 1,148 11,882 7,855 118,105 56,732

Gross Profit from Financial Instruments 48,184 36,539 40,687 52,477 150,620

Other Operating Income (Expense) (30,286) (27,046) (33,835) (111,573) (118,958)

Income from services rendered 6,891 7,656 6,747 19,927 26,357

Income from tariffs 177 185 193 851 732

Personnel expenses (21,377) (21,441) (23,700) (71,694) (89,818)

Other administrative expenses (14,179) (13,042) (13,331) (50,394) (53,118)

Taxes (3,074) (2,252) (4,326) (13,191) (12,625)

Result from affiliated companies 714 1,138 991 989 4,146

Other operating income 9,146 6,053 5,473 17,397 20,236

Other operating expense (8,584) (5,343) (5,882) (15,458) (14,868)

Operating Profit 17,898 9,493 6,852 (59,096) 31,662

Non-Operating Profit (2,610) (1,230) (1,616) (2,977) (1,115)

Earnings before taxes ad profit-sharing 15,288 8,263 5,236 (62,073) 30,547

Income tax and social contribution (1,331) (2,160) 220 38,829 (7,136)

Income tax 629 (1,970) (4,553) (804) (12,631)

Social contribution 353 (1,170) (2,722) (507) (7,504)

Deferred fiscal assets (2,313) 980 7,495 40,140 12,999

Statutory Contributions & Profit Sharing (3,635) (2,972) (1,831) (8,501) (9,192)

Net Profit for the Period 10,322 3,131 3,625 (31,745) 14,219

4Q12 Earnings Release Report

Investor Relations

Transcript of 4Q12 Earnings Release Report