BI&P- Indusval- 2Q14 Earnings Release

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EARNINGS RELEASE

2nd QUARTER 2014

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 7 branches and 2 banking service posts strategically located in economically relevant Brazilian

regions, besides an offshore branch in Cayman Islands, its brokerage house Guide Investimentos operating at the São Paulo Stock, Commodities and Futures Exchange -

BM&FBOVESPA and Serglobal Cereais, acquired in April 2011, which originates agricultural bonds.

Highlights

Expanded Credit Portfolio totaled R$3.9 billion, remaining stable in the

quarter but up 21.4% from June 2013.

Loans rated between AA and B corresponded to 91% of the expanded credit

portfolio (85% in June 2013). Reflecting the quality of the loan portfolio, 99%

of the loans granted in the quarter were rated between AA and B.

The Corporate and Emerging Companies segments accounted for 59% and

40%, respectively, of the expanded credit portfolio, as against 51% and 48%

in 2Q13.

The Managerial Expense with Allowance for Loan Losses (annualized) in 2Q14

corresponded to 0.66% of the expanded credit portfolio (1.1% in 1Q14), which

is a highly positive outcome of the conservative credit policy being adopted by

the bank in recent years.

Funding totaled R$4.1 billion, up 5.2% in the quarter and 31.6% in twelve

months, while Free Cash totaled R$748.2 million at the end of 2Q14,

reflecting the high liquidity enjoyed by the bank.

Income from services rendered and tariffs (see page 4) totaled R$15.7 million

in 2Q14 and R$26.8 million in 1H14, representing growth of 42.3% in the

quarter and 117.2% in relation to 1H13. The investment banking area already

accounts for 50% of this revenue in 2Q14 (26% in 1Q14) which is the result of

investments in the area in 2013 for acquiring the advisory firm VOGA and

hiring a few top-notch professionals in this field.

Guide Investimentos, responsible for our wealth management and brokerage

operations, entered into important alliances during 2014, with (i) Omar

Camargo Corretora de Câmbio e Valores Mobiliários Ltda, (ii) Geraldo Corrêa

Corretora de Câmbio e Valores Mobiliários Ltda, and (iii) Bullmark Consultoria

Financeira Ltda. With these alliances, Guide has strengthened its distribution

network and is now present in important regions across the country. After the

migration of all the clients of these partners, Guide will manage assets of

around R$2 billion.

The quarterly Result of R$1.1 million already reflects a significant

improvement from previous quarters, but still impacted by (i) the non-cash

accounting effects of the discontinuation of the designation of hedge

accounting of cash flows from a series of funding operations indexed to

inflation indices (IPCA and IGPM), which are still protected by hedge

operations; (ii) the negative contribution from Guide Investimentos as result of

all the investments made in recent quarters; (iii) the still increasing

investment banking, structured operations and sales desks which, despite the

significant growth from the same period the previous year, still have

tremendous potential for growth; and (iv) the need for economies of scale,

considering our appetite for risk and its direct impact on loan spreads.

IDVL4: R$3.36 per share

Closing: June 12, 2014

Outstanding Shares: 88.991.729

Market Cap: R$299.0 million

Price/Book Value: 0.45

Conference Call / Webcasts

June 13, 2014

In English

11 a.m. (US EST) / 12 a.m. (Brasília)

Connections

Brazil: +55 11 3193-1001

+55 11 2820-4001

EUA: +1 786 924-6977

Code: Banco BI&P

In Portuguese

10 a.m. (US EST) / 11 a.m. (Brasília)

Number: +55 11 3193-1001

+55 11 2820-4001

Code: Banco BI&P

Website

www.bip.b.br/ir

Expanded credit portfolio totaled R$3.9 billion, remaining stable in the quarter but up 21.4% in twelve months

Income from services rendered and tariffs totaled R$15.7 million, up 42% in the quarter and 117% from 1H13

Managerial ALL Expense was to 0.66%, as against 1.10% in 1Q13, underscoring the quality of the loan portfolio

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

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2nd Quarter 2014

Summary

Message from the Management ............................................................................................................................................ 3

Macroeconomic Scenario ....................................................................................................................................................... 5

Key Indicators .......................................................................................................................................................................... 6

Operating Performance ........................................................................................................................................................... 8

Expanded Credit Portfolio .................................................................................................................................................... 10

Funding ................................................................................................................................................................................. 12

Free Cash .............................................................................................................................................................................. 13

Capital Adequacy .................................................................................................................................................................. 13

Credit Ratings ....................................................................................................................................................................... 13

Capital Markets .................................................................................................................................................................... 14

Balance Sheet ...................................................................................................................................................................... 16

Income Statement ................................................................................................................................................................ 18

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2nd Quarter 2014

Message from the Management

In 2Q14, we continued our strategy of growing recurring fees and tariffs, and of prioritizing our Corporate segment

portfolio, while maintaining a cautious approach to lending, given the still uncertain and highly volatile macroeconomic

scenario.

The expanded credit portfolio ended the quarter at R$3.9 billion, stable in relation to March 2014, but growing 21.4%

in relation to June 2013, with the focus still on better quality loans - 99% of the loans granted during the quarter were

rated between AA and B. The Corporate segment accounted for 59% (51% in 2Q13) of the expanded credit portfolio,

while the Emerging Companies segment accounted for 40% (48% in 2Q13). The stability of the expanded credit

portfolio was due to three factors: (i) conservative approach to lending; (ii) slowdown in economic activity on account of

the World Cup; and (iii) a delay in the plantation of soy and corn crops, considering our specialization in the agricultural

segment. We expect to speed up the growth pace in the second half of the year, though maintaining the conservative

approach with regard to credit quality. Note that during the quarter, loan settlements totaled R$1,321 million and,

despite the above-mentioned factors, loans originated by our sales team - now fully structured and aligned with the

current strategy of the bank - totaled R$1,424 million, with fresh loans amounting to R$818 million and loan renewals

amounting to R$606 million.

Loans overdue more than 60 days (NPL 60) decreased from 2.6% at the end of 1Q14 to 2.0% in 2Q14, and NPL 60

loans in what we call the “new portfolio”, that is, loans granted after March 2011 under the new credit policy adopted

in this new phase of the bank, stood at 1.2%. The managerial expense with allowance for loan losses in 2Q14

(annualized) corresponded to 0.66% of the expanded credit portfolio and in the case of the new portfolio, to 0.43%,

which proves the quality of our loan portfolio. These percentages reflect the good work done by the bank’s credit and

sales teams in recent quarters in both client prospecting and credit analysis.

As for funding, total deposits, which include agro notes (LCA), real estate notes (LCI) and bank notes (LF) grew 9.2% in

the quarter and 48.8% in relation to June 2013. We continue to diversify our funding mix, especially through: (i) the

issue of LCAs, which increased 19.7% in the quarter and 135.9% in twelve months, and (ii) the dispersal of the

depositor base through partnerships with more than 40 brokerage firms and distributors. As a result, we reduced

funding costs, which reached the lowest ever in 2Q14, and expanded the depositor base, which totaled more than

7,000 at the end of June 2014, an increase of 5,400 in twelve months. Compared to the period when it rolled out the

restructuring strategy in April 2011, BI&P today has more stable, dispersed and cheaper funding sources.

Financial intermediation result before managerial expense with allowance for loan losses totaled R$43.3 million,

48.7% higher than in 1Q14 and 74.9% higher than in 2Q13. Net interest margin with clients increased from 4.1% in

2Q13 and 3.9% in 1Q14 to 4.4% in 2Q14, since we could negotiate better rates for clients, funding costs decreased

and revenue from derivatives increased.

Income from services rendered and tariffs totaled R$15.7 million in 2Q14, increasing 42.3% in the quarter and 120.8%

in relation to 2Q13. The investment banking area started delivering more consistent results in 2Q14, having concluded

M&A operations involving amounts more than R$2 billion, which is the result of investments in the area in 2013 for

acquiring the advisory firm VOGA and hiring a few top-notch professionals in this field. A sizeable portion of these fees

came from clients from the bank’s sales area, which shows greater potential for cross selling fixed income and M&A

products. In May 2014, BI&P obtained authorization from the Central Bank of Brazil to operate as a multiple service

bank and approval for its investment portfolio. Consequent to this approval, Banco BI&P started operating with the (i)

commercial, (ii) foreign exchange, and (iii) investment portfolios.

During the whole of 2014, we exercised strict control over both personnel and administrative expenses. Despite the

absorption of Banco Intercap, employee headcount decreased 11% from 2Q13, with personnel expenses declining

7.1% in the quarter and 0.8% in relation to 2Q13, resulting from the policy of constant pursuit of efficiency and

investments made by our IT area. In 2Q14 alone, the reduction in staff was 8% and its effects on personnel expenses

will be observed from the second half of this year. Administrative expenses decreased 7.5% in the quarter, due to the

strict control over expenses in 2014, yet increased 7.1% from 2Q13, mainly impacted by the inflation during the period

and investments to improve our technological infrastructure. In the case of Guide Investimentos, there was an increase

in both the headcount and in personnel and administrative expenses, due to the investments made in recent quarters

and its current phase of structuring and growth.

Guide Investimentos, which has already consolidated its position as an important distributor of our funding products,

entered into important alliances this year: in February with Omar Camargo Corretora de Valores, the biggest and oldest

firm in the sector in the state of Paraná, and in July with Geraldo Corrêa Corretora de Valores, a long-time stockbroker

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2nd Quarter 2014

in the state of Minas Gerais, and Bullmark, a financial consulting firm focused on wealth management for high net

worth individuals. With the help of these alliances, Guide is continuing its strategy of expanding its client’s base and

geographic presence. After the migration of all the clients of these partners, Guide will manage assets of around R$2

billion.

The quarterly Result of R$1.1 million already reflects a significant improvement from previous quarters, but still

impacted by (i) the non-cash accounting effects of the discontinuation of the designation of hedge accounting of cash

flows from a series of funding operations indexed to inflation indices (IPCA and IGPM), which are still protected by

hedge operations; (ii) the negative contribution from Guide Investimentos as result of all the investments made in

recent quarters; (iii) the still increasing investment banking, structured operations and sales desks which, despite the

significant growth from the same period the previous year, still have tremendous potential for growth; and (iv) the need

for economies of scale, considering our appetite for risk and its direct impact on loan spreads.

We remain focused on executing the strategy, always with a keen eye on market challenges and opportunities. Note

that we seek growth and adequate profitability in a conscious manner without jeopardizing future results and business

sustainability.

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2nd Quarter 2014

Macroeconomic Scenario

Economic activity continued to slow down in the second quarter. In the first quarter of 2014, Gross Domestic Product

(GDP) grew just 0.2% in relation to the fourth quarter of 2013, pulled down by sluggish industrial activity and the

downturn in retail sales during the period. The macroeconomic scenario did not change between April and June, which

led to consumer and business confidence plummeting to the lowest level since the onset of the financial crisis. In this

scenario of a slowdown in a few sectors and the decline in the willingness to invest, the probability of registering

negative GDP growth in the second quarter is high. As a result, analysts have constantly been reducing their forecasts

of economic growth for 2014. According to the Focus report, economists are already expecting a GDP growth of below

1% this year.

Added to this is the market uncertainty about the way public accounts are being handled. The continued tax rebate

policies and sluggish economic activity have adversely affected federal tax collections. However, government spending

has not kept pace with the economic slowdown, such that in the absence of considerable extra revenues, it will be

increasingly difficult for the government to achieve the primary surplus target for this year of 1.9%.

Despite the more modest economic activity, accumulated inflation in twelve months remains high. In June, the

Extended Consumer Price Index (IPCA) went past the inflation target ceiling to reach 6.52%. The supply shock of

agricultural products, caused by lack of rainfall at the start of the year and the increase in prices of services, which

were pressured by the World Cup, among other factors, were the main reasons behind this increase in prices in the first

half of the year.

Though the Central Bank of Brazil expects inflation to hover well above the center of the target for the coming months,

its concerns about economic activity led it to signal that, after seven successive hikes, it should maintain the interest

rate at the current level of 11% p.a.

The job market seems to have shown the initial signs of losing steam, with the pace of formal job openings slowing

down in recent months. A negative highlight in the period was the decline in industrial jobs.

In Brazil’s national financial system, loan operations grew 11.8% in the second quarter of 2014 to reach R$2.830

trillion. Average term of loans increased from 93.6 months in June 2013 to 101.1 months in June 2014. Credit as a

percentage of GDP ended the second quarter at 56.3%, slightly higher than 56.0% in the first quarter.

In the case of free credit operations, individual defaults dropped from 7.2% in the second quarter of 2013 to 6.5% this

quarter, while corporate defaults declined from 3.5% to 3.4%. These marginal improvements in default rates, despite a

less favorable economic scenario, are the result of the more selective approach to lending adopted by Brazilian banks.

Macroeconomic Data 2Q14 1Q14 2Q13 2013 2014(e)

Real GBP Growth (Q/Previous Q) -0.10% 0.20% 1,6% 2.3% 1.00%

Inflation (IPCA - IBGE) – quarterly change 1.54% 2.18% 1,18% 2.04% 1.82%

Inflation (IPCA - IBGE) – annual change 6.52% 6.15% 6,70% 5.91% 6.32%

FX (US$/R$) – quarterly change -2.4% -4.5% 10,6% 15.36% -1.4%

Interest Rate (Selic) 11.00% 10.75% 7,25% 10.00% 11.00%

e= expected

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2nd Quarter 2014

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 Central Bank rules, except were otherwise stated.

Starting 2Q14, Banco BI&P presents its results through the Managerial Income Statement, which is based on

reclassifications of accounting Income Statement and is provided to help analyses.

MANAGERIAL INCOME STATEMENT 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

Revenues from Loan Operations & Agro bonds 1 110.4 108.9 1.4% 69.2 59.5% 219.3 129.9 68.7%

Revenues Securities (w/o Agro bonds), Derivat. & FX 2 37.9 28.3 33.8% 46.6 -18.7% 66.3 91.2 -27.4%

Financial Intermediation Expenses (w/o ALL) 3 (105.0) (108.1) -2.9% (91.1) 15.3% (213.1) (156.0) 36.6%

Result from Financial Intermediation before ALL 43.3 29.1 48.7% 24.8 74.9% 72.4 65.2 11.1%

ALL Expenses 4 (4.9) (9.3) -47.6% (9.4) -48.1% (14.2) (144.9) -90.2%

Result from Financial Intermediation 38.4 19.8 93.8% 15.4 150.0% 58.3 (79.7) 173.1%

Revenues from services rendered and tariff 5 15.7 11.0 42.3% 7.1 120.8% 26.8 12.3 117.2%

Personnel and Administrative Expenses 6 (41.4) (43.2) -4.1% (39.3) 5.3% (84.5) (77.6) 8.9%

Personnel Expenses w/o Guide (22.8) (24.5) -7.0% (23.6) -3.4% (47.4) (47.8) -0.8%

Personnel Expenses Guide (3.7) (3.0) 25.4% (2.5) 48.6% (6.7) (4.7) 40.9%

Administrative Expenses w/o Guide 6 (11.0) (11.8) -7.5% (11.2) -2.2% (22.8) (21.3) 7.1%

Administrative Expenses Guide 6 (3.9) (3.8) 2.6% (2.0) 96.2% (7.7) (3.8) 101.6%

Other operating income and expenses (2.3) 5.1 -145.5% (3.0) -24.1% 2.8 (3.8) 172.5%

Recurring Operating Result 10.5 (7.2) 245.1% (19.9) 152.7% 3.3 (148.8) 102.2%

Non-Recurring Operating Expenses (2.7) (4.0) -34.0% (13.9) -81.0% (6.7) (29.5) -77.4%

Effect of discontinuance of hedge accounting (1.7) (4.0) -58.9% (13.6) -87.8% (5.7) (29.2) -80.6%

Other non-Recurring Operating Expenses (1.0) 0.0 n.c. (0.4) 177.7% (1.0) (0.4) 177.7%

Operating Result 7.8 (11.2) 169.6% (33.8) 123.1% (3.4) (178.3) -98.1%

Non-operating profit (1.4) (1.7) -18.3% 0.8 -282.6% (3.1) 0.1 n.c.

Income tax and social contribution (3.5) 5.5 -164.5% 15.1 -123.3% 1.9 74.3 -97.4%

Statutory contributions & Profit sharing (1.9) (2.4) -22.3% (2.7) -30.4% (4.3) (8.1) -47.2%

Net Profit (Loss) 1.1 (9.9) 110.7% (20.6) 105.1% (8.8) (112.1) -92.1%

1 Excluding the effects of (i) recoveries of loans written off, and (ii) discounts granted upon settlement of loans in the period.

2 Excludes the effect of discontinuance of the designation of hedge accounting in 2Q12. This effect is included in Non-Recurring Operating Expenses.

3 Includes expenses related to financial intermediation, such as (i) expenses related to the joint venture C&BI, (ii) commission paid to the distributors

of our funding products, especially LCAs and LCIs, which are classified under administrative expenses. Excludes the accounting heading Result of

Sale/Transfer of Financial Assets resulting from the shareholders’ agreement at the time of acquisition of Banco Intercap. This account is

considered while calculating the managerial expense with allowance for loan losses.

4 Managerial expense with allowance for loan losses is calculated by adding to the expense with allowance for loan losses, the effects of (i) the

recovery of loans written off and (ii) discounts granted upon settlement of loans in the period. Also excludes the impacts of the shareholders’

agreement at the time of acquisition of Banco Intercap in the Income Statement: (i) from the accounting heading Result of Sale/Transfer of

Financial Assets; and (ii) from other operating expenses and income.

5 Includes expenses booked under administrative expenses related to income from services rendered.

6 Excludes (i) non-recurring operating expenses, (ii) expenses related to financial intermediation, and (iii) expenses related to income from services

rendered.

7 Result of the sum of (i) Other operating income and expenses, (ii) taxes and (iii) Result from affiliated companies. Excludes other operating income

and expenses resulting from the shareholders’ agreement at the time of acquisition of Banco Intercap.

n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero).

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Operating Performance

The financial and operating information presented in this report are based on consolidated financials prepared in

millions of Real (local currency), according to Brazilian Central Bank rules, except were otherwise stated.

Assets & Liabilities 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Loan Portfolio 2,930.1 3,014.6 -2.8% 2,587.8 13.2%

Expanded Loan Portfolio 1 3,920.1 3,926.1 -0.2% 3,228.7 21.4%

Cash & Short Term Investments 150.3 211.4 -28.9% 297.3 -49.4%

Securities and Derivatives 1,570.3 1,402.5 12.0% 1,056.5 48.6%

Securities excl. Agro Sec. & Private Credit Bonds 2 759.6 702.1 8.2% 626.5 21.3%

Total Assets 5,117.3 5,032.4 1.7% 4,198.2 21.9%

Total Deposits 3,611.3 3,308.3 9.2% 2,427.8 48.8%

Open Market 101.4 95.6 6.1% 176.1 -42.4%

Foreign Borrowings 281.4 348.2 -19.2% 366.0 -23.1%

Domestic Onlendings 242.1 273.4 -11.4% 348.6 -30.5%

Shareholders’ Equity 671.4 667.1 0.6% 569.6 17.9%

Performance 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

Free Cash 748.2 743.2 0.7% 660.7 13.2%

NPL 60 days/ Loan portfolio 2.0% 2.6% -0.6 p.p. 2.6% -0.6 p.p.

NPL 90 days/ Loan portfolio 1.8% 2.6% -0.8 p.p. 2.1% -0.3 p.p.

Basel Index 13.3% 13.7% -0.4 p.p. 14.6% -1.2 p.p.

ROAE 0.6% -5.8% 6.4 p.p. -14.6% 15.2 p.p. -2.8% -35.0% 32.2 p.p.

Net Interest Margin with clients 4.43% 3.94% 0.49 p.p. 4.06% 0.37 p.p. 4.19% 4.06% 0.13 p.p.

Efficiency Ratio 80.7% 106.3% -25.6 p.p. 144.5% -63.7 p.p. 91.9% 116.8% -24.9 p.p.

Efficiency Ratio BI&P group w/o Guide Investimentos 72.6% 100.5% -27.9 p.p. 147.2% -74.6 p.p. 84.7% 114.7% -30.0 p.p.

Other Information 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Number of Corporate Clients 1,209 1,128 7.2% 874 38.3%

Number of Employees 441 453 -2.6% 448 -1.6%

Banco BI&P employees 347 379 -8.4% 390 -11.0%

Guide Invstimentos and Serglobal employees 94 74 27.0% 58 62.1%

1 Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and Agro Securities (CDA/WA and CPR). 2 Excluding Agro Securities (CPRs and CDA/WA) and Private Credit Bonds (PNs and debentures) for trading.

n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero).

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Operating Performance

Financial intermediation result before managerial expense with allowance for loan losses totaled R$43.3 million,

48.7% higher than in 1Q14 and 74.9% higher than in 2Q13, mainly impacted by the increase in the net interest margin

with clients, which was 4.4% in 2Q14, since we could negotiate better rates for clients, funding costs decreased and

revenue from derivatives increased. The managerial expense with allowance for loan losses (annualized) in 2Q14,

corresponded to 0.66% of the expanded credit portfolio, and to 0.43% of the loans we call the “new portfolio”, that is,

loans granted after March 2011.

The quarterly result was R$1.1 million, still impacted: (i) by the non-cash accounting effects of the discontinuation of

the designation of hedge accounting of the cash flows from a series of funding operations indexed to inflation indices

(IPCA and IGPM), which are still protected by hedge operation; (ii) the negative contribution from Guide Investimentos

as result of all the investments made in recent quarters; (iii) the still increasing investment banking and structured

operations which, despite the significant growth from the same period the previous year, still have tremendous

potential for growth; and (iv) the need for economies of scale, considering our appetite for risk and its direct impact on

spread and the allowance for loan losses.

Financial Intermediation Result

before Allowance for Loan Losses Net Result

Profitability

Financial Intermediation 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

Financial Intermediation Revenues 148.3 137.2 8.1% 115.8 28.0% 285.5 221.2 29.1%

Loan Operations and Agro Bonds 110.4 108.9 1.4% 69.2 59.5% 219.3 129.9 68.7%

Loans, Discount Receivables and Agro bonds 91.6 92.2 -0.7% 60.4 51.5% 183.7 114.3 60.7%

Financing 18.8 16.7 12.7% 8.8 114.4% 35.5 15.6 127.3%

Other 0.0 0.0 -2.5% 0.0 290.0% 0.1 0.0 n.c.

Securities (w/o Agro bonds) 19.8 21.7 -8.6% 12.5 59.0% 41.6 29.5 40.8%

Derivatives 14.6 (4.8) n.c. 5.8 151.3% 9.8 23.3 -58.2%

FX Operations Result 3.5 11.4 -69.5% 28.3 -87.7% 14.9 38.4 -61.1%

Financial Intermediation Expenses (105.0) (108.1) -2.9% (91.1) 15.3% (213.1) (156.0) 36.6%

Money Market Funding (100.3) (93.3) 7.5% (53.5) 87.6% (193.5) (106.7) 81.4%

Time Deposits (64.6) (64.2) 0.7% (40.4) 59.9% (128.8) (81.2) 58.6%

Repurchase Transactions (2.8) (2.3) 21.3% (3.0) -8.8% (5.1) (7.6) -33.7%

Interbank Deposits (0.5) (0.4) 23.3% (0.8) -35.1% (1.0) (2.1) -53.6%

Agro Bonds (LCA), Real Estate (LCI) & Bank Notes (LF) (28.7) (23.2) 23.5% (8.7) 229.4% (51.9) (15.2) 240.5%

Others (3.6) (3.1) 16.5% (0.4) n.c. (6.8) (0.5) n.c.

Loans, Assignments & Onlending (4.7) (14.8) -68.1% (37.6) -87.4% (19.5) (49.3) -60.4%

Foreign Borrowings (1.2) (10.1) -88.6% (32.2) -96.4% (11.3) (39.1) -71.2%

Domestic Borrowings & Onlending (3.6) (4.7) -23.9% (5.4) -33.6% (8.3) (10.2) -18.6%

Gross Result from Financial Intermediation before ALL 43.3 29.1 48.7% 24.8 74.9% 72.4 65.2 11.1%

Managerial Expenses with ALL (4.9) (9.3) -47.6% (9.4) -48.1% (14.2) (144.9) -90.2%

Gross Result from Financial Intermediation 38.4 19.8 93.8% 15.4 150.0% 58.3 (79.7) 173.1%

24.8

42.5 42.5

29.1

43.3

65.2

72.4

2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14

R$

millio

n

-20.6

2.0

-10.0 -9.9

1.1

-8.8

2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14

R$

millio

n

--112,1

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2nd Quarter 2014

Net Interest Margin (NIM)

Managerial net interest margin with clients was 4.43% in 2Q14, as against 3.94% in 1Q14, since in this quarter we

managed to negotiate better rates for customers, funding costs decreased and revenue from derivatives increased.

Net Interest Margin 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

A. Result from Finan. Int. before ALL 43.3 29.1 48.7% 24.8 74.9% 72.4 65.2 11.1%

B. Average Interest bearing Assets 4,171.1 4,237.6 -1.6% 3,626.3 15.0% 4,209.3 3,615.0 16.4%

Adjustm. for non-remunerated average assets 1 (134.0) (98.3) 36.3% (184.0) -27.2% (119.1) (206.6) -42.4%

B.a. Adjusted Average Interest bearing Assets 4,037.1 4,139.3 -2.5% 3,442.3 17.3% 4,090.2 3,408.3 20.0%

Net Interest Margin (Aa/Ba) 4.4% 2.8% 1.5 p.p. 2.9% 1.5 p.p. 3.6% 3.9% -0.3 p.p.

Managerial NIM with Clients 4,43% 3,94% 0,49 p.p. 4,06% 0,37 p.p. 4,19% 4,06% 0,1 p.p.

1 Repos with equivalent volumes, tenors and rates both in assets and liabilities.

Efficiency

Efficiency ratio of the group, excluding Guide Investimentos, was 72.6% in the quarter, as against 100.5% in 1Q14.

During the course of 2014, we exercised strict control over both personnel and administrative expenses at the Bank.

Despite the absorption of Banco Intercap, employee headcount decreased 11% from 2Q13, with personnel expenses

declining 7.1% in the quarter and 0.8% in relation to 2Q13, resulting from the policy of constant pursuit of efficiency

and investments made by the IT area. In 2Q14 alone, the reduction in staff was 8% and its effects on personnel

expenses will be observed from the second half of this year. Administrative expenses decreased 7.5% in the quarter,

due to the strict control over expenses in 2014, yet increased 7.1% from 2Q13, mainly impacted by the inflation during

the period and investments to improve our technological infrastructure.

Efficiency Ratio w/o Guide Investimentos 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

Personnel Expenses 22.8 24.5 -7.0% 23.6 -3.4% 47.4 47.8 -0.8%

Contributions and Profit-sharing 1.7 2.3 -25.9% 2.7 -36.9% 4.0 8.1 -50.6%

Administrative Expenses 11.0 11.8 -7.5% 11.2 -2.2% 22.8 21.3 7.1%

Taxes 4.0 2.9 38.7% 1.5 159.6% 6.9 4.7 45.9%

A. Total Operating Expenses 39.5 41.6 -5.0% 39.1 1.1% 81.1 81.9 -1.0%

Gross Income Financial Intermediation (w/o ALL) 40.9 28.1 45.5% 23.4 75.1% 69.1 63.3 9.1%

Income from Services Rendered 13.2 7.4 79.8% 4.6 189.7% 20.6 7.4 176.0%

Other Net Operating Income 0.2 5.9 -96.4% (1.4) 115.1% 6.1 0.6 n.c.

B. Total Operating Income 54.4 41.4 31.4% 26.5 104.9% 95.7 71.4 34.1%

Efficiency Ratio (A/B) 72.6% 100.5% -27.9 p.p. 147.2% -74.6 p.p. 84.7% 114.7% -30.0 p.p.

The efficiency ratio of the group, including Guide Investimentos, was higher than the previous ratio because of the

investments made in recent quarters at Guide on account of its current phase of structuring and growth.

Efficiency Ratio 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13

Personnel Expenses 26.5 27.5 -3.5% 26.1 1.5% 54.1 52.5 2.9%

Contributions and Profit-sharing 1.9 2.4 -22.3% 2.7 -30.4% 4.3 8.1 -47.2%

Administrative Expenses 14.8 15.6 -5.1% 13.2 12.6% 30.5 25.1 21.5%

Taxes 4.6 3.5 31.6% 2.0 125.2% 8.1 5.6 43.1%

A. Total Operating Expenses 47.8 49.0 -2.5% 44.0 8.6% 96.9 91.4 6.0%

Gross Income Financial Intermediation (w/o ALL) 43.3 29.1 48.7% 24.8 74.9% 72.4 65.2 11.1%

Income from Services Rendered 15.7 11.0 42.3% 7.1 120.8% 26.8 12.3 117.2%

Other Net Operating Income 0.2 6.0 -96.3% (1.4) 115.8% 6.2 0.6 n.c.

B. Total Operating Income 59.2 46.1 28.4% 30.5 94.4% 105.4 78.2 34.8%

Efficiency Ratio (A/B) 80.7% 106.3% -25.6 p.p. 144.5% -63.7 p.p. 91.9% 116.8% -24.9 p.p.

10/18 10/18

EARNINGS RELEASE

2nd Quarter 2014

Expanded Credit Portfolio

In June 2014 the classic credit portfolio totaled R$2.9 billion, down 2.8% in the quarter but up 13.2% in twelve months,

while the expanded credit portfolio totaled R$3.9 billion, remaining stable in the quarter but growing 21.4% in twelve

months. The stability of the expanded credit portfolio was due to three factors: (i) conservative approach to lending; (ii)

slowdown in economic activity on account of the World Cup; and (iii) a delay in the plantation of soy and corn crops,

considering our specialization in the agricultural segment. Note that during the quarter, loan settlements totaled

R$1,321 million and, despite the above-mentioned factors, loans originated by our sales team - now fully structured

and aligned with the current strategy of the bank - totaled R$1,424 million, with fresh loans amounting to R$818

million and loan renewals amounting to R$606 million.

Expanded Credit Portfolio by Product Group 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Loans & Financing in Real 2,272.1 2,344.2 -3.1% 1,852.8 22.6%

Assignment of Receivables Originated by our Clients 209.5 222.0 -5.6% 250.3 -16.3%

Trade Finance (ACC/ACE/IMPFIN) 433.6 420.0 3.2% 427.3 1.5%

Other 14.9 28.3 -47.5% 57.4 -74.1%

Credit Portfolio 2,930.1 3,014.6 -2.8% 2,587.8 13.2%

Guarantees Issued (LGs & L/Cs) 179.3 211.2 -15.1% 210.9 -15.0%

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 729.1 615.2 18.5% 390.8 86.6%

Private Credit Bonds (Securities: PNs & Debentures) 81.6 85.1 -4.1% 39.2 108.0%

Expanded Credit Portfolio 3,920.1 3,926.1 -0.2% 3,228.7 21.4%

1 Starting from March 2014, export credit notes (NCE) and export notes (CCE) originated by Banco Intercap are included in Loans & Financing in

BRL, as well as NCE and CCE originated by Banco BI&P are classified. 2 The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating assets.

The Corporate segment (companies with annual revenues of between R$400 million and R$2 billion) accounted for

59% of the expanded credit portfolio while the Emerging Companies segment (companies with annual revenues of

between R$80 million and R$400 million) accounted for 40%. Note that the share of the Corporate segment of total

loans increased during the quarter due to the more conservative lending approach adopted by the bank.


by Segment

Expanded Credit Portfolio by

Client Concentration

* The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating assets.

** Including R$97,2 million of loans assigned to Banco Intercap.

In 2Q14, the agro bonds portfolio totaled R$884.2 million, up 18.4% in the quarter and 85.0% in twelve months. The

growth in twelve months is the result of joint ventures and partnerships.

Agro Bonds Portfolio 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Booked under Securities 729.1 615.2 18.5% 390.8 86.6%

Warrants - CDA/WA 66.0 35.5 86.1% 7.3 n.c.

Agro Product Certificate - CPR 663.1 579.8 14.4% 383.5 72.9%

Booked under Credit Portfolio - Loans & Financing 155.2 131.9 17.7% 87.1 78.1%

Agro Credit Rights Certificate - CDCA 155.2 131.9 17.7% 87.1 78.1%

Agricultural Bonds 884.2 747.1 18.4% 477.9 85.0%

48% 49% 47% 43% 40%

51% 50% 52% 56% 59%

1% 1% 1% 1% 1%

Jun13 Sep13** Dec13 Mar14 Jun 14

Emerging Companies Corporate Others*

12%

12%

13%

28%

26%

27%

27%

25%

26%

33%

36%

33%

Jun 13

Mar14

Jun14

Top 10 11 - 60 largest 61 - 160 largest Other

11/18 11/18

EARNINGS RELEASE

2nd Quarter 2014


by Region Expanded Credit Portfolio

by Economic Sector

Quality of Expanded Credit Portfolio

In line with the credit policy being adopted since April 2011, we maintained our focus on lending to client’s with better

credit standing, which is evident from the high percentage of loans rated between AA and B in 2Q14, which

represented 99% of total lending in the period. The balance of loans classified in the low risk categories (AA to B)

ended the quarter at 90.9% of total loans (compared to 89.8% and 85.1% respectively, at the end of 1Q14 and 2Q13),

as the following chart shows.

Expanded Credit Portfolio by Rating Coverage Ratio

In June 2014, the decline in the percentage of loans rated between D and H was mostly due to the settlement of loans

in these ratings. Of the R$207.6 million rated between D and H, R$148.9 million, or 72%, consists of loans whose

payments are regular.

The default rate on loans overdue more than 60 days (NPL 60) decreased 0.6 p.p. in the quarter and in twelve months.

Loans overdue more than 90 days (NPL 90) decreased 0.8 p.p. in the quarter and 0.3 p.p. in relation to June 2013.

Default by segment Jun 14 Mar 14

> 60 days > 90 days

Jun 14 Mar 14 Jun 14 Mar 14

Credit Portfolio NPL % NPL % NPL % NPL %

Emerging Companies 1,141.5 1,252.4 55.9 4.9% 61.1 4.9% 49.3 4.3% 60.0 4.8%

Corporate 1,768.1 1,727.6 2.7 0.2% 9.9 0.6% 2.7 0.2% 9.9 0.6%

Other 20.6 34.5 0.2 0.8% 7.3 21.1% 0.1 0.6% 7.3 21.0%

TOTAL 2,930.1 3,014.6 58.7 2.0% 78.3 2.6% 52.1 1.8% 77.2 2.6%

Allowance for Loan Losses (ALL) 110.8 150.1

The managerial expense with allowance for loan losses (annualized) in the quarter corresponded to 0.66% of the

expanded credit portfolio, and to 0.43% of the loans we call the “new portfolio”, that is, loans granted after March

2011 under the new credit policy adopted in this new phase of the Bank, which proves the quality of our credit

portfolio.

North

3%

Northeast

6%

Midwest

20%

Southeast

56%

South

15%

13.6% 1.5% 1.7% 1.9% 2.0% 2.3% 2.3% 2.6%

3.5% 3.9% 4.1% 4.3%

5.5% 6.9%

10.7% 12.0%

21.0%

Other Sectors (less than 1.4%)

Raw Materials

Financial Activities

International Commerce

Metal Industry

Chemical & Pharmaceutical

Textile, Leather and Confection

Power Generation & Distribution

Commerce - Retail & Wholesale

Infrastructure

Transport and Logistics

Automotive

Livestock

Food & Beverage

Oil, Biofuel & Sugar

Real Estate

Agriculture

12/18 12/18

EARNINGS RELEASE

2nd Quarter 2014

Funding

Funding totaled R$4.1 billion in June 2014, up 5.2% in the quarter and 31.6% in twelve months. Worth special mention

were funding through agro notes (LCA), which increased 19.7% in the quarter and 135.9% from June 2013, and

diversification of the depositor base, which totaled more than 7,300 at the end of the quarter, growing 25% from March

2014 and 292% from June 2013.

Note that LCAs, which provide tax advantages for individual investors, are backed by agribusiness operations in which

Banco BI&P enjoys operational expertise.

Total Funding 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Total Deposits 3,611.3 3,308.3 9.2% 2,427.8 48.8%

Time Deposits 868.3 807.7 7.5% 822.7 5.6%

Insured Time Deposits (DPGE) 1,364.3 1,307.1 4.4% 944.8 44.4%

DPGE I 949.2 1,023.8 -7.3% 944.8 0.5%

DPGE II 415.1 283.3 46.5% 0.0 n.c.

Agro Notes (LCA) 1,153.8 964.0 19.7% 489.2 135.9%

Real Estate Notes (LCI) 116.3 119.3 -2.5% 40.2 189.5%

Bank Notes (LF) 24.1 57.1 -57.8% 34.0 -29.0%

Interbank Deposits 27.6 15.9 73.3% 58.2 -52.6%

Demand Deposits and Other 56.9 37.1 53.4% 38.8 46.7%

Domestic Onlending 242.1 273.4 -11.4% 348.6 -30.5%

Foreign Borrowings 281.4 348.2 -19.2% 366.0 -23.1%

Trade Finance 248.2 314.6 -21.1% 366.0 -32.2%

Other Foreign Borrowings 33.3 33.6 -1.2% 0.0 n.c.

TOTAL 4,134.9 3,930.0 5.2% 3,142.3 31.6%

By Type By Investor By Maturity

* Insured time deposits are represented by DPGE. DPGE I and II are two types of time deposits insured by FGC and differ in cost and framework.

The average term of deposits stood at 637 days from issuance (690 days in March 2014) and 321 days from maturity

(335 days in March 2014).

Average Term in days

Type of Deposit from issuance to maturity 1

Interbank 225 51

Time Deposits 693 547

Time Deposits with Special Guarantee (DPGE) 959 328

Agro Notes (LCA) 254 163

Real Estate Letters of Credit (LCI) 252 119

Bank Notes (LF) 1.141 822

Portfolio of Deposits 2 637 321

1 From June 30, 2014. | 2 Volume weighted average.

Time

Deposits

21%

DPGE I *

23%

DPGE II *

10%

Agro

Bonds

28% Bank &

Real

Estate

Notes

3%

BNDES

Onlending

s

6%

Trade

Finance

6%

Foreign

Loans

1%

Interbank

& Demand

2%

Institutional

Investors

34%

Enterprises

16%

National

Banks

11% Brokers

13%

Individuals

11%

Other

2%

BNDES

Onlending

6% Foreign

Banks

7%

Demand

1%

Up to 90

days

26%

91 to

180 days

18%

181 to

360 days

21%

+360

days

34%

13/18 13/18

EARNINGS RELEASE

2nd Quarter 2014

Free Cash

On June 30, 2014, the free cash position totaled R$748.2 million, equivalent to

20.7% 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 and Basel III 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 2Q14 1Q14 2Q14/1Q14 2Q13 2Q14/2Q13

Total Capital 600.6 605.5 -0.8% 554.3 8.4%

Tier I 600.6 605.5 -0.8% 555.3 8.2%

Tier II 0.0 0.0 n.c. 1.3 n.c.

Deductions 0.0 0.0 n.c. (2.3) n.c.

Required Capital 496.7 485.1 2.4% 419.1 18.5%

Credit Risk allocation 458.1 454.5 0.8% 353.3 29.7%

Market Risk Allocation 22.6 14.7 54.2% 47.9 -52.8%

Operating Risk Allocation 16.0 16.0 0.0% 17.9 -10.9%

Excess over Required Capital 104.0 120.4 -13.6% 135.2 -23.1%

Basel Index 13.3% 13.7% -0.4 p.p. 14.6% -1.2 p.p.

Note that the Basel index decreased in 2Q14, mainly due to: (i) the increase in exposure to market risks, especially in

operations carried out by the proprietary desk; and (ii) the reduction in total capital due to the increase in the account

of prudential adjustments resulting from tax liabilities on tax losses.

Risk Ratings

Agency Classification Observation Last

Report

Standard & Poor’s BB- / Stable / B

brA / Stable / brA-2

Global Scale

Local Scale - Brazil April 14, 2014

Moody's Ba3 / Negative / Not Prime

A2.br / Negative / BR-1

Global Scale

Local Scale - Brazil July 04, 2013

FitchRatings BBB / Stable / F3 Local Scale - Brazil September 05, 2013

RiskBank 9,65

Ranking: 56

RiskBank Index

Low Risk Short Term April 17, 2014

758 743 748

Dec 13 Mar 14 Jun 14

R$

millio

n

14/18 14/18

EARNINGS RELEASE

2nd Quarter 2014

Capital Market

Total Shares and Free Float

Number of shares as of June 30, 2014

Type Corporate Capital Controlling Group Management Treasury Free Float %

Common 58,513,218 31,352,736 57,876 - 27,102,606 46.3%

Preferred 31,021,907 648,521 279,362 543,396 29,550,628 95.3%

TOTAL 89,535,125 32,001,257 337,238 543,396 56,653,234 63.3%

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, had the following balances on June 30, 2014:

Stock Option

Plan

Date of

Approval Grace Period

Term for

Exercise

Quantity

Granted Exercised Extinct Not Exercised

I 03.26.2008 Three years Five years 2,039,944 229,057 449,123 1,361,764

II 04.29.2011 Three years Five years 1,840,584 - 377,761 1,462,824

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

IV 04.24.2012 Up to five years Five years 867,425 - 41,644 825,781

Total 6.598.739 229.057 868.528 5.501.155

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 1H14 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 2014. 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

June 30, 2014 at R$3.12, for a market cap of R$278 million, including the shares existing on June 30, 2014 and

excluding treasury stock. The price of IDVL4 shares decreased 22% in the quarter and 55% % in the 12 months ended

June 2014. In comparison, the Bovespa Index (Ibovespa) increased 5% in the quarter and 12% in relation to the closing

of June 2013. At the end of 2Q14, the price/book value (P/BV) was 0.41.

15/18 15/18

EARNINGS RELEASE

2nd Quarter 2014

Share Price evolution in the last 12 months

Liquidity and Trading Volume

The preferred shares of BI&P (IDVL4) were traded in 100% of the sessions in the quarter and 96.0% of the 247

sessions in the past 12 months. The volume traded on the spot market in the quarter was R$13.9 million, involving 3.9

million IDVL4 shares in 1,085 trades. In the 12 months ended in June 2014, the volume traded on the spot market

was R$50.2 million, involving around 10.5 million preferred shares in 3,207 trades.

Shareholder Base

Position as of June 30,2014

# TYPE OF SHAREHOLDER IDVL3 % IDVL4 % TOTAL %

8 Controlling Group 31,352,736 53.6% 648,521 2.1% 32,001,257 35.7%

4 Management 57,876 0.1% 279,362 0.9% 337,238 0.4%

- Treasury - 0.0% 543,396 1.8% 543,396 0.6%

16 National Investors 1,201,090 2.1% 8,251,081 26.5% 9,452,171 10.6%

10 Foreign Investors 11,964,301 20.4% 18,158,686 58.5% 30,122,987 33.6%

7 Corporate - 0.0% 20,414 0.1% 20,414 0.0%

283 Individuals 13,937,215 23.8% 3,120,447 10.1% 17,057,662 19.1%

328 TOTAL 58,513,218 100.0% 31,021,907 100.0% 89,535,125 100.0%

16/18 16/18

EARNINGS RELEASE

2nd Quarter 2014

Balance Sheet

CONSOLIDATED R$ thousand

ASSETS 6/30/2013 3/31/2014 6/30/2014

Current 3,159,122 3,864,643 4,000,221

Cash 26,552 37,068 8,515

Short-term interbank investments 270,732 174,298 141,822

Open market investments 246,708 144,999 118,998

Interbank deposits 24,024 29,299 22,824

Securities and derivative financial instruments 1,011,301 1,369,422 1,542,837

Own portfolio 649,604 1,097,481 1,331,462

Subject to repurchase agreements 69,426 26,233 52,027

Linked to guarantees 160,716 186,969 111,808

Subject to the Central Bank 89,784 3,022 -

Derivative financial instruments 41,771 55,717 47,540

Interbank accounts 3,201 3,105 8,125

Loans 1,359,621 1,573,308 1,605,604

Loans - private sector 1,408,066 1,618,575 1,640,393

Loans - public sector - - -

(-) Allowance for loan losses (48,445) (45,267) (34,789)

Other receivables 394,416 607,637 544,975

Credit guarantees honored - - -

Foreign exchange portfolio 320,987 316,949 284,288

Income receivables 58 537 483

Negotiation and intermediation of securities 61,573 38,148 34,896

Sundry 16,753 257,407 232,071


Other assets 93,299 99,805 148,343

Long term 955,154 1,070,663 1,020,719

Short-term interbank investments - - -

Marketable securities and derivative financial instruments 45,188 33,064 27,477

Own portfolio 43 14,110 14,658


Interbank Accounts 3,001 3,038 -

Loans 655,164 710,730 671,325

Loans - private sector 807,148 798,753 735,572

Loans - public sector - - -


Other receivables 251,685 323,109 320,827

Credit guarantees honored - 507 507

Trading and Intermediation of Securities 495 540 408

Foreign exchange portfolio - 4,656 -

Income receivables - - 5,620

Sundry 260,163 328,791 319,281


Other assets 116 722 1,090

Permanent Assets 83,929 97,106 96,323

Investments 29,559 34,361 35,590

Subsidiaries and Affiliates 27,868 32,668 33,897

Other investments 1,847 1,849 1,849

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

Property and equipment 14,178 13,088 12,130

Property and equipment in use 1,210 1,152 1,152

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

Other property and equipment 22,740 24,575 23,756

(-) Accumulated depreciation (12,406) (15,273) (15,412)

Intangible 40,192 49,657 48,603

Goodwill 24,585 27,868 27,868

Other intangible assets 18,664 27,031 26,960

(-) Accumulated amortization (3,057) (5,242) (6,225)

TOTAL ASSETS 4,198,205 5,032,412 5,117,263

17/18 17/18

EARNINGS RELEASE

2nd Quarter 2014


LIABILITIES 6/30/2013 3/31/2014 6/30/2014

Current 2,538,587 2,988,178 2,972,918

Deposits 1,021,586 1,118,475 1,148,862

Cash deposits 38,781 37,095 56,892

Interbank deposits 58,128 15,897 27,553

Time deposits 924,677 1,065,483 1,064,417

Funds obtained in the open market 176,141 95,601 101,419

Own portfolio 56,517 26,199 51,419

Third party portfolio 104,621 69,402 50,000

Unrestricted Portfolio 15,003 - -

Funds from securities issued or accepted 550,198 1,060,943 1,213,308

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 550,198 1,060,943 1,213,308

Interbank accounts 556 565 313

Interdepartamental accounts 9,892 4,083 7,603

Borrowings 365,999 314,592 248,658

Foreign borrowings 365,999 314,592 248,658

Onlendings 131,247 109,752 103,218

BNDES 90,018 61,557 57,634

FINAME 41,229 48,195 45,584

Other l iabil ities 282,968 284,167 149,537

Collection and payment of taxes and similar charges 452 1,225 649

Foreign exchange portfolio 5,353 38,676 11,158

Taxes and social security contributions 13,201 16,022 12,428

Social and statutory liabilities 4,500 1,352 3,226

Negotiation and intermediation securities 133,055 189,391 86,002


Sundry 50,857 22,375 21,186

Long Term 1,089,265 1,372,811 1,468,902

Deposits 842,830 1,049,373 1,168,189

Interbank Deposits 32 - -

Time deposits 842,798 1,049,373 1,168,189

Funds from securities issued or accepted 13,172 79,499 80,981

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 13,172 79,499 80,981

Loan obligations - 33,645 32,776

Foreign loans - 33,645 32,776

Onlending operations - Governmental Bureaus 217,312 163,694 138,928

Federal Treasure 7,435 6,747 6,552

BNDES 122,487 75,975 62,503

FINAME 87,186 80,753 69,683

Other Institutions 204 219 190

Other l iabil ities 15,951 46,600 48,028

Taxes and social security contributions 7,550 31,977 32,057

Derivative financial instrument 4,246 7,358 8,289

Sundry 4,155 7,265 7,682

Future results 795 4,289 4,012

Shareholders' Equity 569,558 667,134 671,431

Capital 661,812 769,843 769,843

Capital Reserve 19,866 24,159 27,275

Revaluation reserve 1,315 1,278 1,265

Profit reserve - - -

(-) Treasury stock (5,859) (4,283) (4,283)

Asset valuation Adjustment 31 (169) (53)

Accumulated Profit / (Loss) (108,455) (124,462) (123,340)

Minority Interest 848 768 724

TOTAL LIABILITIES 4,198,205 5,032,412 5,117,263

18/18 18/18

EARNINGS RELEASE

2nd Quarter 2014

Income Statement


INCOME STATEMENT 2Q13 1Q14 2Q14 1H13 1H14

Income from Financial Intermediation 93,015 133,063 147,580 180,603 280,643

Loan operations 50,133 85,787 89,324 106,105 175,111

Income from securities 22,316 44,671 41,827 41,942 86,498

Income from derivative financial instruments (7,780) (8,839) 12,935 (5,820) 4,096

Income from foreign exchange transactions 28,346 11,444 3,494 38,376 14,938

Expenses from Financial Intermediaton 90,778 118,335 95,911 289,001 214,246

Money market funding 53,005 90,147 96,632 106,213 186,779

Loans, assignments and onlendings 37,628 14,807 4,725 49,259 19,532

Sales operations/transfer of financial assets - - 4,620 - 4,620

Allowance for loan losses 145 13,381 (10,066) 133,529 3,315

Gross Prof it f rom Financial Instruments 2,237 14,728 51,669 (108,398) 66,397

Other Operating Income (Expense) (36,041) (25,958) (43,852) (69,928) (69,810)

Income from services rendered 8,636 12,645 18,652 15,087 31,297

Income from tariffs 187 208 182 359 390

Personnel expenses (26,138) (27,515) (26,539) (52,511) (54,054)

Other administrative expenses (15,694) (20,569) (22,602) (29,065) (43,171)

Taxes (2,034) (3,480) (4,580) (5,634) (8,060)

Result from affiliated companies 402 2,580 2,058 1,189 4,638

Other operating income 1,147 12,839 5,901 4,351 18,740

Other operating expense (2,547) (2,666) (16,924) (3,704) (19,590)

Operating Prof it (33,804) (11,230) 7,817 (178,326) (3,413)

Non-Operating Prof it 752 (1,681) (1,373) 83 (3,054)

Earnings before taxes ad prof it -sharing (33,052) (12,911) 6,444 (178,243) (6,467)

Income tax and social contribution 15,109 5,450 (3,517) 74,298 1,933

Income tax 1,074 (488) 2,071 7,706 1,583

Social contribution 457 (437) 1,338 4,514 901

Deferred fiscal assets 13,578 6,375 (6,926) 62,078 (551)

Statutory Contributions & Prof it Sharing (2,694) (2,412) (1,875) (8,125) (4,287)

Net Prof it for the Period (20,637) (9,873) 1,052 (112,070) (8,821)

BI&P- Indusval- 2Q14 Earnings Release

Investor Relations

Transcript of BI&P- Indusval- 2Q14 Earnings Release