BI&P- Indusval- 3Q14 Earnings Release

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3rd 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$4.0 billion, up 1.8% in the quarter and

19.0% in relation to September 2013.

Loans originated in 3Q14 totaled R$1.5 billion, proof of the tremendous asset

generation capacity of the commercial area.

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

portfolio, compared to 85% in September 2013. Of the loans granted in the

quarter, 99% were rated between AA and B, reflecting the Bank’s focus on

preserving the quality of its credit portfolio.

The Corporate and Emerging Companies segments corresponded to 62% and

38%, respectively, of the expanded credit portfolio, compared to 50% and

49%, respectively, in September 2013.

Funding totaled R$4.2 billion, up 1.2% in the quarter and 35.8% in twelve

months. We are continuing to diversify our funding mix, especially through the

issue of agro notes (LCA) and a greater fragmentation of the depositor base,

which reached an all-time high of over 9,000 depositors at the end of the

quarter (compared to 2,500 in September 2013), through alliances with more

than 40 brokers and distributors, which has also positively impacted our

funding costs. Free cash totaled R$717.3 million at the end of 3Q14.

Income from services rendered and tariffs totaled R$15.3 million in 3Q14 and

R$42.1 million in 9M14, growing 79.2% from 3Q13 and 101.7% from 9M13,

chiefly driven by revenue from investment banking operations, whose fee

revenue totaled R$5.4 million in 3Q14 and R$16.2 million in 9M14.

Reflecting the continuous cost control measures taken by the Bank,

personnel expenses decreased 8.6% in the quarter and 3.0% from 3Q13,

while administrative expenses increased 2.4% in the quarter and 5.6% from

3Q13, with the year-on-year increase resulting from the investments made to

upgrade our technological infrastructure.

The quarterly Result was R$1.7 million. In recent years, we have shifted the

Bank's focus to corporate and investment banking, which provide

opportunities for higher growth at a lower risk. Though the entire structure is

in full operation, we have not yet attained our revenue generation potential

because of: (i) the need for economies of scale, considering our appetite for

risk and its direct impact on the spread in loan transactions, and (ii) the still

negative contribution from Guide Investimentos on account of the recent

investments made in it.

IDVL4: R$2.90 per share

Closing: November 12, 2014

Outstanding Shares: 88,991,729

Market Cap: R$258.1 million

Price/Book Value: 0.38

Conference Call / Webcasts

November 13, 2014

In English

9 a.m. (US EST) |12 p.m. (Brasília)

Connections

Brazil: +55 11 3193-1001

+55 11 2820-4001

EUA: +1 786 924-6977

Code: Bank BI&P

In Portuguese

11 a.m. (Brasília) | 8 a.m. (US EST)

Number: +55 11 3193-1001

+55 11 2820-4001

Code: Bank BI&P

Website

www.bip.b.br/ir

Expanded credit portfolio totaled R$4.0 billion, +1.8% in the quarter and +19.0% in twelve months

Funding totaled R$4.2 billion, +1.2% in the quarter and +35.8% in twelve months

Income from services rendered and tariffs totaled R$15.3 million in 3Q14 and R$42.1 million in 9M14, +79.2% and

+101.7% from 3Q13 and 9M13, respectively, mainly driven by revenue from investment banking operations

Guide Investimentos already has assets under management of R$1.5 billion, for growth 50% in the last quarter. With

the conclusion of the contracted operations, we should close the year with assets of R$2.3 billion

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

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3rd 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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3rd Quarter 2014

Message from the Management

In 3Q14, we maintained our cautious approach to lending on account of the volatility sweeping the markets prior to the

elections, which resulted in an expanded credit portfolio of R$4.0 billion, an increase of 1.8% in the quarter and 19.0%

from September 2013. During the quarter, we originated loans of R$1.5 billion, of which R$776 million were loan

renewals and R$732 million were fresh loans, which goes to prove the tremendous asset generation capacity of our

commercial team. Our joint ventures in the agricultural and real estate segments have played a fundamental role in the

healthy growth of our loan portfolio since we benefit from the expertise of our partners in the sectors and regions in

which they operate and share the credit risk on operations originated in these areas.

Given our focus on better quality loans, 99% of the loans granted in the quarter were rated between AA and B. At the

end of 3Q14, the Corporate segment accounted for 62% (59% in June 2014 and 50% in September 2013) of the

expanded credit portfolio, while the Emerging Companies segment accounted for 38% (40% in June 2014 and 49% in

September 2013). Loans overdue more than 60 days (NPL 60) remained stable at 2.0%, with NPL that 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,

corresponding to 1.1%. The managerial expenses with allowance for loan losses in 3Q14 (annualized) corresponded to

1.45% of the expanded credit portfolio and 1.07% of the new portfolio. Though this indicator rose during the quarter,

note that it was unusually lower in 2Q14 compared to prior periods, and the managerial expenses with allowance for

loan losses in the last twelve months came to 1.05%, which is in line with the Management’s expectations. Considering

only the loans in the new portfolio, managerial expenses with allowance for loan losses in the last twelve months came

to a mere 0.62%, which reflects the excellent performance by our credit and commercial areas.

Total deposits, which include agro notes (LCA), real estate notes (LCI) and bank notes (LF) grew 3.9% in the quarter and

56.9% in relation to September 2013. As in previous quarters, we are continuing to diversify our funding mix, especially

through the issue of agro notes (LCA), which increased 21.3% in the quarter and 142.0% in twelve months, and

through greater fragmentation of the depositor base, which reached a record of over 9,000 depositors at the end of the

quarter, through alliances with more than 40 brokers and distributors. Considering that LCAs are exempt from income

tax to individuals, we are able to raise funds from the market at a cost equivalent to or lower than the interbank rate

(CDI) depending on the term or amount. As a result, the cost of funding in relation to CDI continued to decline and was

the lowest ever this quarter.

Revenue from loan operations and agro bonds increased 14.6% in the quarter, mainly due to the growth of the agro

bonds portfolio and the higher number of business days than in 2Q14. The increase in foreign exchange revenue was

influenced by the foreign exchange variation during the quarter and the growth in trade finance operations which, in

dollar terms, increased 5.5% in 3Q14. Though funding costs decreased slightly in 3Q14, financial intermediation

expenses before allowance for loan losses increased in the quarter due to the higher funding volume and foreign

exchange variation, which was offset by gains in the trade finance portfolio. As a result, financial intermediation result

before managerial expense with allowance for loan losses totaled R$32.3 million, 25.3% lower than in 2Q14 and

23.9% lower than in 3Q13. Note also that the decrease in this item was mostly impacted by the income from derivative

financial instruments, which in turn was negatively affected by the result of equity hedge made by the Cayman branch

and the trade finance operations, all of which have no cash effect.

Income from services rendered and tariffs remains healthy, totaling R$15.3 million in 3Q14 and R$ 42.1 million in

9M14, growing 79.2% from 3Q13 and 101.7% from 9M13, chiefly driven by revenue from investment banking

operations, whose fee revenue totaled R$5.4 million in 3Q14 and R$16.2 million in 9M14 (R$1.5 million in 9M13).

During the quarter, we carried out M&A and fixed income operations amounting to R$1.1 billion, and the number of

asset management proposals/mandates has increased constantly; we currently have 42 ongoing mandates. Notable

deals in 3Q14 are the acquisition by our client Lactalis of the dairy assets of LBR, the sale of control of our client

Jasmine Coméricio de Produtos Alimentícios to Nutrition et Santé of France, the acquisition by our client Tarpon

Investimentos of material interest in Abril Educação, and the structuring and distribution of certificates of real estate

receivables (CRI) by the real estate developer and builder Mota Machado.

Reflecting the continuous cost control measures taken by the Bank, personnel expenses decreased 8.6% in the quarter

and 3.0% from 3Q13, while administrative expenses increased 2.4% in the quarter and 5.6% from 3Q13, with the year-

on-year increase resulting from the investments made to upgrade our technological infrastructure. At Guide, both

personnel and administrative expenses increased as a result of the investments made in that platform.

Guide Investimentos, our investment and distribution arm, has registered significant growth and is already one of the

leading distributors of our funding products. It ended 3Q14 with assets under management of R$1.5 billion, 50%

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3rd Quarter 2014

higher than at the end of 2Q14. During the quarter, it concluded migration of the client portfolios acquired from the

brokerages Omar Camargo and Geraldo Corrêa, and in the coming months, it will migrate the client portfolio of

Bullmark, a financial consulting firm focused on asset management services for high net worth individual investors. We

are also studying new partnerships with independent agents from all over Brazil, in line with Guide’s strategy of

expanding its client base and geographical presence throughout the country. It is worth highlighting that since the end

of 2Q14, Guide Investimentos has risen 10 positions in the Bovespa ranking in terms of volume, and in October

entered the list of the 25 largest brokerages in equity trading volume on the Bovespa.

The quarterly Result was R$1.7 million. In recent years, we have shifted the Bank's focus to corporate and investment

banking, which provide opportunities for higher growth at a lower risk. Though the entire structure is in full operation,

we have not yet attained our revenue generation potential because of: (i) the need for economies of scale, considering

our appetite for risk and its direct impact on the spread in loan transactions, and (ii) the negative contribution from

Guide Investimentos on account of the recent investments made in it. On the positive side, this quarter we had the non-

recurring effect of the divestment of a fixed asset.

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Macroeconomic Scenario

The third quarter of this year was marked by a slight recovery in economic activity after a tough first half of the year.

Between April and June, gross domestic product (GDP) declined 0.6% from the previous quarter, compared to the 0.2%

decline in the first quarter of the year, leading the country into what is called “technical recession.” However, more

important than the recession itself is the fact that most of the factors that adversely affected the economy are structural.

Loan terms have become stricter, real income has contracted and confidence indices – of both businessmen and

consumers – have recoiled to levels prior to the 2009 crisis. Thus, though data for the third quarter reflect a slight

improvement, with industrial production registering a monthly increase after declining four months in a row and retail

recovering a part of the losses suffered at the start of the year though still heavily affected by auto sales, projections of

economic growth in 2014 point to continued weak economic performance by Brazil. According to the Focus Bulletin

published weekly by the Brazilian Central Bank, the average of GDP forecasts by economists for 2014 is already below

0.5%.

Despite this sluggish economic scenario, inflation remains at uncomfortably high levels. The IPCA inflation index in 12

months ended the third quarter up 6.75%, above the ceiling of the target of 6.5%. Prices of food items, especially beef,

started rising once again pressured, among others, by increased demand from Russia after its ban on beef imports

from the United States and the European Union. Note that even administered prices increased sharply in recent

months due to the hikes in electricity tariffs in several cities. In this scenario, the Brazilian Central Bank maintained the

Selic interest rate at 11% p.a.

The economic slowdown has adversely affected the government’s tax revenues, further deteriorating the already fragile

public accounts. With government spending growing at a faster pace than its tax collections, the primary surplus in the

12 months ending September reached R$31.1 billion, or 0.61% of the GDP, which is well below the government’s

target of 1.9% for this year. As a result, even with the extraordinary income from dividends, the Refis tax amnesty

program and the 4G auction, the government will hardly be able to save R$99 billion that is required for interest

payments on debt, as required by the Budget Guidelines Law (LDO).

In the country’s financial system, loan operations grew 11.7% in the third quarter of 2014 to reach R$2.9 trillion.

Average term of loans increased from 96.7 months in September 2013 to 104.6 months in September 2014. Credit as

a percentage of GDP ended the third quarter at 57.17%, slightly higher than 56.81% in the previous quarter.

In the case of free credit operations, individual defaults dropped from 7.0% in the third quarter of 2013 to 6.6%

between July and September this year, while corporate defaults increased slightly during the period, from 3.4% to 3.6%.

Default rates remain encouraging even in an adverse economic scenario because of the more selective approach to

credit adopted by Brazilian banks.

Macroeconomic Data 3Q14 2Q14 3Q13 2013 2014(e)

Real GBP Growth (Q/Previous Q) 0.30% (e) -0.60% -0.60% 2.30% 0.40%

Inflation (IPCA - IBGE) – quarterly change 0.83% 1.54% 0.62% 2.04% 1.76%

Inflation (IPCA - IBGE) – annual change 6.75% 6.52% 5.86% 5.91% 6.45%

FX (US$/R$) – quarterly change 10.83% -2.36% -0.40% 15.36% 3.70%

Interest Rate (Selic) 11.00% 11.00% 9.00% 10.00% 11.50%

e= expected

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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.

Since 2Q14, Banco BI&P has presented 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 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

Revenues from Loan Operations & Agro bonds 1 126.5 110.4 14.6% 78.0 62.2% 345.8 208.0 66.3%

Revenues Securities (w/o Agro bonds), Derivat. & FX 2 42.1 37.9 11.0% 46.9 -10.2% 108.4 138.1 -21.6%

Financial Intermediation Expenses (w/o ALL) 3 (136.3) (105.0) 29.8% (82.4) 65.4% (349.3) (238.4) 46.6%

Result from Financial Intermediation before ALL 32.3 43.3 -25.3% 42.5 -23.9% 104.8 107.7 -2.7%

Managerial ALL Expense 4 (13.2) (4.9) 171.4% (5.3) 151.6% (27.4) (150.2) -81.8%

Result from Financial Intermediation 19.1 38.4 -50.3% 37.3 -48.7% 77.4 (42.5) 282.3%

Revenues from services rendered and tariff 5 15.3 15.7 -2.6% 8.5 79.2% 42.1 20.9 101.7%

Personnel and Administrative Expenses 6 (40.5) (41.4) -2.0% (36.7) 10.5% (125.1) (114.3) 9.4%

Personnel Expenses w/o Guide (20.8) (22.8) -8.6% (21.5) -3.0% (68.2) (69.3) -1.5%

Personnel Expenses Guide (4.2) (3.7) 13.9% (2.6) 63.1% (10.9) (7.3) 48.8%

Administrative Expenses w/o Guide 6 (11.2) (11.0) 2.4% (10.6) 5.6% (34.0) (31.9) 6.6%

Administrative Expenses Guide 6 (4.2) (3.9) 9.1% (2.0) 115.1% (11.9) (5.8) 106.2%

Other operating income and expenses 7 (1.0) (2.3) -55.1% (2.0) -47.9% 1.7 (5.8) 129.7%

Recurring Operating Result (7.2) 10.5 -168.4% 7.1 -200.5% (3.9) (141.7) -97.2%

Non-Recurring Operating Expenses 1.8 (2.7) 168.2% (0.8) n.c. (4.9) (30.3) -84.0%

Effect of discontinuance of hedge accounting 1.8 (1.7) 209.6% (0.1) n.c. (3.9) (29.3) -86.8%

Other non-Recurring Operating Expenses 0.0 (1.0) n.c. (0.7) n.c. (1.0) (1.0) -2.9%

Operating Result (5.4) 7.8 -168.5% 6.3 -184.8% (8.8) (172.0) -94.9%

Non-operating profit 9.2 (1.4) n.c. 0.4 n.c. 6.2 0.5 n.c.

Income tax and social contribution 1.1 (3.5) 131.1% (2.8) 139.0% 3.0 71.5 -95.8%

Statutory contributions & Profit sharing (3.3) (1.9) 76.0% (1.9) 76.7% (7.6) (10.0) -24.1%

Net Profit (Loss) 1.7 1.1 57.9% 2.0 -17.0% (7.2) (110.1) -93.5%

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. In 2Q14 it 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. In 3Q14 it also excludes the impacts of other credit

assignments in the Income Statement in the accounting heading Result of Sale/Transfer of Financial Assets.

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 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13

Loan Portfolio 2,951.0 2,930.1 0.7% 2,549.0 15.8%

Expanded Loan Portfolio 1 3,991.7 3,920.1 1.8% 3,355.2 19.0%

Cash & Short Term Investments 55.9 150.3 -62.8% 179.8 -68.9%

Securities and Derivatives 1,905.4 1,570.3 21.3% 1,278.7 49.0%

Securities excl. Agro Sec. & Private Credit Bonds 2 1,071.1 759.6 41.0% 657.8 62.8%

Total Assets 5,490.5 5,117.3 7.3% 4,171.0 31.6%

Total Deposits 3,751.3 3,611.3 3.9% 2,391.2 56.9%

Open Market 338.5 101.4 233.7% 107.5 214.8%

Foreign Borrowings 220.1 281.4 -21.8% 365.3 -39.7%

Domestic Onlendings 214.9 242.1 -11.2% 325.4 -33.9%

Shareholders’ Equity 672.8 671.4 0.2% 574.5 17.1%

Performance 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

Free Cash 717.3 748.2 -4.1% 657.9 9.0%

NPL 60 days/ Loan portfolio 2.0% 2.0% 0.0 p.p. 2.9% -0.9 p.p.

NPL 90 days/ Loan portfolio 1.5% 1.8% -0.3 p.p. 2.6% -1.1 p.p.

Basel Index 13.2% 13.3% -0.1 p.p. 14.5% -1.3 p.p.

ROAE 1.0% 0.6% 0.4 p.p. 1.4% -0.4 p.p. -1.4% -24.4% 23.0 p.p.

Net Interest Margin with clients 4.12% 4.43% -0.31 p.p. 4.08% 0.04 p.p. 4.12% 4.11% 0.01 p.p.

Efficiency Ratio 97.4% 80.7% 16.7 p.p. 83.5% 13.9 p.p. 93.7% 103.9% -10.2 p.p.

Efficiency Ratio BI&P group w/o Guide Investimentos 88.2% 72.6% 15.7 p.p. 79.2% 9.0 p.p. 85.7% 100.9% -15.1 p.p.

Other Information 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13

Number of Corporate Clients 973 1,209 -19.5% 865 12.5%

Number of Employees 427 441 -3.2% 432 -1.2%

Banco BI&P employees 330 347 -4.9% 371 -11.1%

Guide Invstimentos and Serglobal employees 97 94 3.2% 61 59.0%

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$32.3 million, 25.3%

lower than in 2Q14 and 23.9% lower than in 3Q13. Note that the decrease in this item was mostly impacted by the

income from derivative financial instruments, which in turn was negatively affected by the result of equity hedge made by

the Cayman branch and the trade finance operations, all of which have no cash effect. The managerial expense with

allowance for loan losses (annualized) corresponded to 1.45% of the expanded credit portfolio and to 1.07% of the loans

we call the “new portfolio”, that is, loans granted after March 2011. Though this indicator rose during the quarter, note

that it was unusually lower in 2Q14 compared to prior periods, and the managerial expenses with allowance for loan

losses in the last twelve months came to 1.05%, which is in line with the Management’s expectations. Considering only

the loans in the new portfolio, managerial expenses with allowance for loan losses in the last twelve months came to a

mere 0.62%, which reflects the excellent performance by our credit and commercial areas.

The quarterly result was R$1.7 million. Although we shifted the Bank's focus to corporate and investment banking, which

provide opportunities for higher growth at a lower risk, we have not yet attained our revenue generation potential because

of: (i) the need for economies of scale, considering our appetite for risk and its direct impact on the spread in loan

transactions, and (ii) the negative contribution from Guide Investimentos on account of the recent investments made in it.

Financial Intermediation Result

before Allowance for Loan Losses Net Result

Profitability

Financial Intermediation 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

Financial Intermediation Revenues 168.6 148.3 13.7% 124.9 35.0% 454.1 346.1 31.2%

Loan Operations and Agro Bonds 126.5 110.4 14.6% 78.0 62.2% 345.8 208.0 66.3%

Loans, Discount Receivables and Agro Bonds 105.7 91.6 15.5% 70.3 50.4% 289.5 184.7 56.8%

Financing 20.8 18.8 10.5% 7.7 170.1% 56.2 23.3 141.4%

Other 0.0 0.0 -85.5% 0.0 189.1% 0.1 0.0 n.c.

Securities (w/o Agro bonds) 19.0 19.8 -4.3% 21.4 -11.2% 60.5 50.9 19.0%

Derivatives (19.5) 14.6 -234.0% 3.1 n.c. (9.8) 26.4 -137.0%

FX Operations Result 42.7 3.5 n.c. 22.4 90.2% 57.6 60.8 -5.3%

Financial Intermediation Expenses (136.3) (105.0) 29.8% (82.4) 65.4% (349.3) (238.4) 46.6%

Money Market Funding (110.3) (100.3) 10.0% (58.6) 88.2% (303.9) (165.3) 83.8%

Time Deposits (62.0) (64.6) -4.0% (40.8) 52.1% (190.8) (122.0) 56.4%

Repurchase Transactions (7.0) (2.8) 151.5% (2.7) 163.2% (12.1) (10.3) 17.1%

Interbank Deposits (0.5) (0.5) -1.1% (0.6) -5.2% (1.5) (2.6) -43.4%

Agro Bonds (LCA), Real Estate (LCI) & Bank Notes (LF) (36.3) (28.7) 26.7% (12.4) 192.1% (88.3) (27.7) 218.8%

Other (4.4) (3.6) 22.1% (2.2) 103.1% (11.2) (2.7) n.c.

Loans, Assignments & Onlending (25.9) (4.7) n.c. (23.2) 11.6% (45.5) (72.5) -37.3%

Foreign Borrowings (22.2) (1.2) n.c. (18.3) 21.2% (33.5) (57.4) -41.7%

Domestic Borrowings & Onlending (3.7) (3.6) 3.8% (4.9) -24.1% (12.0) (15.1) -20.4%

Sales operations/transfer of financial assets 0.0 0.0 n.c. (0.5) 100.0% 0.0 (0.5) 100.0%

Gross Result from Financial Intermediation before ALL 32.3 43.3 -25.3% 42.5 -23.9% 104.8 107.7 -2.7%

Managerial ALL Expense (13.2) (4.9) 171.4% (5.3) 151.6% (27.4) (150.2) -81.8%

Gross Result from Financial Intermediation 19.1 38.4 -50.3% 37.3 -48.7% 77.4 (42.5) 282.3%

42.5 42.5

29.1

43.3 32.3

3Q13 4Q13 1Q14 2Q14 3Q14

R$

millio

n

2.0

-10.0 -9.9

1.1 1.7

3Q13 4Q13 1Q14 2Q14 3Q14

R$

millio

n

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Net Interest Margin (NIM)

Managerial net interest margin with clients was 4.12% in 3Q14, compared to 4.43% in 2Q14, impacted by the

increased share of the Corporate segment in the Bank’s loan portfolio.

Net Interest Margin 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

A. Result from Finan. Int. before ALL 32.3 43.3 -25.3% 42.5 -23.9% 104.8 107.7 -2.7%

B. Average Interest bearing Assets 4,393.3 4,171.1 5.3% 3,657.9 20.1% 4,278.5 3,629.3 17.9%

Adjustm. for non-remunerated average assets 1 (278.5) (134.0) 107.8% (154.4) 80.3% (184.6) (189.2) -2.4%

B.a. Adjusted Average Interest bearing Assets 4,114.9 4,037.1 1.9% 3,503.5 17.5% 4,093.9 3,440.0 19.0%

Net Interest Margin (Aa/Ba) 3.2% 4.4% -1.2 p.p. 4.9% -1.8 p.p. 3.4% 4.2% -0.8 p.p.

Managerial NIM with Clients 4.12% 4.43% -0.31 p.p. 4.08% 0.04 p.p. 4.12% 4.11% 0.01 p.p.

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

Efficiency

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

Bank. In 3Q14, the number of employees decreased by 4.9% from the previous quarter and by 11% from September

2013, even after the absorption of Banco Intercap at the end of 2013, with personnel expenses declining 8.6% in the

quarter and 3.0% in relation to 3Q13. Administrative expenses increased 2.4% in the quarter and 5.6% from 3Q13,

with the year-on-year increase resulting from the investments made to upgrade our technological infrastructure.

Efficiency Ratio w/o Guide Investimentos 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

Personnel Expenses 20.8 22.8 -8.6% 21.5 -3.0% 68.2 69.3 -1.5%

Contributions and Profit-sharing 2.7 1.7 61.1% 1.4 98.5% 6.7 9.5 -28.9%

Administrative Expenses 11.2 11.0 2.4% 10.6 5.6% 34.0 31.9 6.6%

Taxes 2.9 4.0 -27.2% 2.4 20.9% 9.8 7.1 37.5%

A. Total Operating Expenses 37.7 39.5 -4.5% 35.9 5.1% 118.8 117.8 0.9%

Gross Income Financial Intermediation (w/o ALL) 30.8 40.9 -24.8% 41.7 -26.2% 99.8 105.0 -4.9%

Income from Services Rendered 10.9 13.2 -17.5% 5.0 118.0% 31.5 12.5 151.4%

Other Net Operating Income 1.1 0.2 n.c. (1.4) 176.3% 7.2 (0.8) n.c.

B. Total Operating Income 42.8 54.4 -21.4% 45.3 -5.6% 138.5 116.8 18.6%

Efficiency Ratio (A/B) 88.2% 72.6% 15.7 p.p. 79.2% 9.0 p.p. 85.7% 100.9% -15.1 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 its current phase of structuring and growth.

Efficiency Ratio 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13 9M14 9M13 9M14/9M13

Personnel Expenses 25.1 26.5 -5.5% 24.1 4.1% 79.1 76.6 3.3%

Contributions and Profit-sharing 3.3 1.9 76.0% 1.9 76.7% 7.6 10.0 -24.1%

Administrative Expenses 15.5 14.8 4.2% 12.6 22.8% 45.9 37.7 21.9%

Taxes 3.6 4.6 -20.3% 2.9 23.9% 11.7 8.6 36.5%

A. Total Operating Expenses 47.5 47.8 -0.7% 41.5 14.5% 144.4 132.9 8.7%

Gross Income Financial Intermediation (w/o ALL) 32.3 43.3 -25.3% 42.5 -23.9% 104.8 107.7 -2.7%

Income from Services Rendered 15.3 15.7 -2.6% 8.5 79.2% 42.1 20.9 101.7%

Other Net Operating Income 1.1 0.2 n.c. (1.4) 181.9% 7.3 (0.7) n.c.

B. Total Operating Income 48.8 59.2 -17.7% 49.7 -1.9% 154.1 127.9 20.5%

Efficiency Ratio (A/B) 97.4% 80.7% 16.7 p.p. 83.5% 13.9 p.p. 93.7% 103.9% -10.2 p.p.

10/18 10/18

EARNINGS RELEASE

3rd Quarter 2014

Expanded Credit Portfolio

In September 2014, the classic credit portfolio totaled R$3.0 billion, practically stable in the quarter but growing 15.8%

in 12 months, while the expanded credit portfolio totaled R$4.0 billion, growing 1.8% in the quarter and 19.0% in 12

months. During the quarter, we originated loans of R$1.5 billion, of which R$776 million were loan renewals and

R$732 million were fresh loans, which goes to prove the tremendous asset generation capacity of our commercial

team.

Expanded Credit Portfolio by Product Group 3Q14 2Q14 3Q14/2Q14 3Q133 3Q14/3Q13

Loans & Financing in Real1 2,200.0 2,272.1 -3.2% 1,913.2 15.0%

Assignment of Receivables Originated by our Clients 228.8 209.5 9.2% 186.5 22.7%

Trade Finance (ACC/ACE/IMPFIN) 509.3 433.6 17.4% 404.9 25.8%

Other2 12.9 14.9 -13.4% 44.4 -71.0%

Credit Portfolio 2,951.0 2,930.1 0.7% 2,549.0 15.8%

Guarantees Issued (LGs & L/Cs) 206.5 179.3 15.2% 185.4 11.4%

Agro Bonds (Securities: CPRs & CDA/WA; Credit: CDCAs) 771.3 729.1 5.8% 591.3 30.4%

Private Credit Bonds (Securities: PNs & Debentures) 63.0 81.6 -22.8% 29.5 113.5%

Expanded Credit Portfolio 3,991.7 3,920.1 1.8% 3,355.2 19.0%

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. 3 Including R$97.2 of loans assigned to Banco Intercap in 3Q13.

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

62% 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 38%. Note that the Corporate segment’s share of total loans

increased during the quarter due to the more conservative approach to lending 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 3Q14, the agro bonds portfolio totaled R$917.7 million, up 3.8% in the quarter and 28.0% in 12 months. The

increase in twelve months is the result of investments the Bank has been making on joint ventures and new alliances

aimed at generating assets. Note that assets of over R$3.2 billion have been generated in the past three years, with a

loss of just 0.03% (annualized).

Agro Bonds Portfolio 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13

Booked under Securities 771.3 729.1 5.8% 606.6 27.2%

Warrants - CDA/WA 70.2 66.0 6.4% 11.5 n.c.

Agro Product Certificate - CPR 701.1 663.1 5.7% 595.1 17.8%

Booked under Credit Portfolio - Loans & Financing 146.4 155.2 -5.6% 110.1 32.9%

Agro Credit Rights Certificate - CDCA 146.4 155.2 -5.6% 110.1 32.9%

Agricultural Bonds 917.7 884.2 3.8% 716.7 28.0%

49% 47% 43% 40% 38%

50% 52% 56% 59% 62%

1% 1% 1% 1% 0%

Sept 13** Dec 13 Mar 14 Jun 14 Sept 14

Emerging Companies Corporate Others*

12%

13%

13%

29%

27%

27%

26%

26%

27%

34%

33%

33%

Sept 13

Jun 14

Sept 14

Top 10 11 - 60 largest 61 - 160 largest Other

11/18 11/18

EARNINGS RELEASE

3rd 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 clients with better

credit standing, which is evident from the high percentage of loans rated between AA and B in 3Q14, 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 90.8% of total loan operations (compared to 90.9% and 85.0% respectively, at the end of 2Q14

and 3Q13), as the following chart shows.

Expanded Credit Portfolio by Rating Coverage Ratio

Of the R$207.6 million rated between D and H, R$147.5 million, or 71%, consists of loans whose payments are regular.

The default rate on loans overdue more than 60 days (NPL 60 days) remained stable in the quarter and decreased 0.9

p.p. in twelve months. Loans overdue more than 90 days (NPL 90 days) decreased 0.3 p.p. in the quarter and 1.1 p.p.

in relation to September 2013.

Default by segment 3Q14 2Q14

> 60 days > 90 days

3Q14 2Q14 3Q14 2Q14

Credit Portfolio NPL % NPL % NPL % NPL %

Emerging Companies 991.9 1,141.5 57.2 5.8% 55.9 4.9% 57.2 5.8% 49.3 4.3%

Corporate 1,940.6 1,768.1 2.9 0.2% 2.7 0.2% 2.9 0.2% 2.7 0.2%

Other 18.5 20.6 0.0 0.2% 0.2 0.8% 0.0 0.2% 0.1 0.6%

TOTAL 2,951.0 2,930.1 60.2 2.0% 58.7 2.0% 60.2 2.0% 52.1 1.8%

Allowance for Loan Losses (ALL) 94.0 110.8

The managerial expense with allowance for loan losses (annualized) in the quarter corresponded to 1.45% of the

expanded credit portfolio and 1.07% 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. Though this indicator rose during the quarter, note

that it was unusually lower in 2Q14 compared to prior periods, and the managerial expenses with allowance for loan

losses in the last twelve months came to 1.05%, which is in line with the Management’s expectations. Considering only

the loans in the new portfolio, managerial expenses with allowance for loan losses in the last twelve months came to a

mere 0.62%, which reflects the excellent performance by our credit and commercial areas.

North

2%

Northeast

6%

Midwest

21%

Southeast

56%

South

15%

13.1%

1.5%

1.6%

1.7%

2.2%

2.3%

2.5%

2.6%

3.5%

3.9%

4.0%

4.4%

5.0%

7.0%

11.2%

11.2%

22.3%

Other Sectors (less than 1.4%)

Raw Materials

Metal Industry

Financial Activities

Power Generation & Distribution

Textile, Leather and Confection

Chemical & Pharmaceutical

International Commerce

Infrastructure

Commerce - Retail & Wholesale

Transport and Logistics

Automotive

Livestock

Food & Beverage

Real Estate

Oil, Biofuel & Sugar

Agriculture

12/18 12/18

EARNINGS RELEASE

3rd Quarter 2014

Funding

Funding totaled R$4.2 billion in September 2014, up 1.2% in the quarter and 35.8% in 12 months. Worth mention

were funding through agro notes (LCA), which increased 21.3% in the quarter and 142.0% from September 2013, and

the diversification of the depositor base, which totaled more than 9,000 at the end of the quarter, growing 23% from

June 2014 and 255% from September 2013.

Note that LCAs, which are backed by agribusiness operations, a segment in which Banco BI&P has operational

expertise, provide tax advantages for individual investors. Hence we are able to raise funds from the market at a cost

equivalent to or lower than the interbank rate (CDI) depending on the term or amount. As a result, the cost of funding in

relation to CDI continued to decline and was the lowest ever this quarter.

Total Funding 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13

Total Deposits 3,751.3 3,611.3 3.9% 2,391.2 56.9%

Time Deposits 814.8 868.3 -6.2% 719.4 13.3%

Insured Time Deposits (DPGE) 1,328.2 1,364.3 -2.6% 939.9 41.3%

DPGE I 914.6 949.2 -3.6% 939.9 -2.7%

DPGE II 413.6 415.1 -0.4% 0.0 n.c.

Agro Notes (LCA) 1,399.1 1,153.8 21.3% 578.1 142.0%

Real Estate Notes (LCI) 113.0 116.3 -2.9% 65.8 71.6%

Bank Notes (LF) 24.8 24.1 2.8% 34.8 -28.7%

Interbank Deposits 15.8 27.6 -42.7% 15.7 0.7%

Demand Deposits and Other 55.7 56.9 -2.1% 37.6 48.3%

Domestic Onlending 214.9 242.1 -11.2% 325.4 -33.9%

Foreign Borrowings 220.1 281.4 -21.8% 365.3 -39.7%

Trade Finance 183.3 248.2 -26.1% 332.1 -44.8%

Other Foreign Borrowings 36.8 33.3 10.6% 33.2 10.9%

TOTAL 4,186.4 4,134.9 1.2% 3,081.9 35.8%

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.

Average term of deposits is 597 days from issuance (637 days in June 2014) and 270 days from maturity (321 days in

June 2014).

Average Term in days

Type of Deposit from issuance Type of Deposit 1

Interbank 286 85

Time Deposits 642 470

Time Deposits with Special Guarantee (DPGE) 952 280

Agro Notes (LCA) 256 155

Real Estate Letters of Credit (LCI) 268 112

Bank Notes (LF) 1.141 730

Portfolio of Deposits 2 597 270

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

Time

Deposits

20%

DPGE I *

22%

DPGE II *

10%

Agro

Bonds

33%

Bank &

Real Estate

Notes

3%

BNDES

Onlendings

5%

Trade

Finance

4%

Foreign

Loans

1%

Interbank

& Demand

2%

Institutional

Investors

34%

Enterprises

15%

National

Banks

10% Brokers

16%

Individuals

13%

Other

2%

BNDES

Onlending

5% Foreign

Banks

5%

Demand

1%

Up to 90

days

28%

91 to 180

days

22%

181 to

360 days

20%

+360 days

29%

13/18 13/18

EARNINGS RELEASE

3rd Quarter 2014

Free Cash

On September 30, 2014, free cash totaled R$717.3 million, equivalent to 19.1%

of total deposits and 1.1 times 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 (CPR), agribusiness deposit certificates and

warrants (CDA/WA), debentures and promissory notes (NP).

Capital Adequacy

The Basel Accord requires banks to maintain a minimum percentage of the capital weighted by the risk in their

operations. The Brazilian Central Bank stipulates that banks operating in the country should maintain at least 11%,

calculated according to the Basel II and Basel III Accord regulations, which provides greater security to the country’s

financial system against volatile economic conditions.

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

Basel Index 3Q14 2Q14 3Q14/2Q14 3Q13 3Q14/3Q13

Total Capital 599.9 600.6 -0.1% 554.9 8.1%

Tier I 599.9 600.6 -0.1% 555.8 7.9%

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 500.8 496.7 0.8% 421.6 18.8%

Credit Risk allocation 467.6 458.1 2.1% 362.6 29.0%

Market Risk Allocation 17.0 22.6 -24.9% 42.5 -60.0%

Operating Risk Allocation 16.2 16.0 1.7% 16.5 -1.6%

Excess over Required Capital 99.1 104.0 -4.7% 133.3 -25.7%

Basel Index 13.2% 13.3% -0.1 p.p. 14.5% -1.3 p.p.

The ratio remained unchanged between the quarters due to the reduced exposure to market risk, especially on the

Bank’s earmarked credit operations.

Risk Ratings

Agency Classification Observation Last

Report

Standard & Poor’s brA / Negative / brA-2

BB- / Negative / B

Local Scale – Brazil

Global Scale August 29, 2014

Moody's Baa2.br / Stable / BR-3

B1 / Stable / Not Prime

Local Scale - Brazil

Global Scale September 08, 2014

FitchRatings BBB- / Stable / F3 Local Scale - Brazil September 03, 2014

RiskBank RiskBank Index: 9.83

Low Risk Short Term Disclosure: Excellent October 10, 2014

743 748 717

Mar 14 Jun 14 Sept 14

R$

millio

n

14/18 14/18

EARNINGS RELEASE

3rd Quarter 2014

Capital Markets

Total Shares and Free Float

Number of shares as of September 30, 2014

Type Corporate Capital Controlling Group Management Treasury Free Float %

Common 58,513,218 31,415,436 57,876 - 27,039,906 46.2%

Preferred 31,021,907 658,521 279,362 543,396 29,540,628 95.2%

TOTAL 89,535,125 32,073,957 337,238 543,396 56,580,534 63.2%

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 September 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 - 47,733 819,693

Total 6,598,739 229,057 874,616 5,495,066

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

In the first nine months of 2014, the Bank neither provisioned nor paid advance interest on equity, calculated based on

the Long-Term Interest Rate (TJLP) and calculated 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, ended

the quarter at R$4.20, for market cap of R$374 million, including in this calculation the shares existing on September

30, 2014 and excluding treasury stock. The price of IDVL4 shares rose 35% in the quarter and 33% in the 12 months

ended in September 2014. In comparison, the Bovespa Index (Ibovespa) rose 2% in the quarter and 3% in relation to

September 2013. At the end of 3Q14, the price/book value (P/BV) was 0.56.

15/18 15/18

EARNINGS RELEASE

3rd 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 96.8% of the 247

sessions in between September 2013 and September 2014. The volume traded on the spot market in the quarter was

R$11.3 million, involving 3.2 million IDVL4 shares in 1,947 trades. In the 12 months ended in September 2014, the

volume traded on the spot market was R$55.1 million, involving around 12.7 million preferred shares in 3,567 trades.

Shareholder Base

Position as of September 30,2014

# TYPE OF SHAREHOLDER IDVL3 % IDVL4 % TOTAL %

8 Controlling Group 31,415,436 53.7% 658,521 2.1% 32,073,957 35.8%

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%

18 National Investors 1,201,090 2.1% 9,334,981 30.1% 10,536,071 11.8%

6 Foreign Investors 11,964,301 20.4% 17,849,326 57.5% 29,813,627 33.3%

5 Corporate - 0.0% 19,314 0.1% 19,314 0.0%

264 Individuals 13,874,515 23.7% 2,337,007 7.5% 16,211,522 18.1%

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

0

20

40

60

80

100

120

140

IBOVESPA IDVL4

16/18 16/18

EARNINGS RELEASE

3rd Quarter 2014

Balance Sheet

CONSOLIDATED R$ thousand

ASSETS 9/30/2013 6/30/2014 9/30/2014

Current 3,131,671 4,000,221 4,415,101

Cash 36,653 8,515 38,223

Short-term interbank investments 143,122 141,822 17,672

Open market investments 117,499 118,998 -

Interbank deposits 25,623 22,824 17,672

Securities and derivative financial instruments 1,236,149 1,542,837 1,876,401

Own portfolio 954,523 1,331,462 1,316,878

Subject to repurchase agreements 25,871 52,027 341,195

Linked to guarantees 210,730 111,808 161,616

Subject to the Central Bank - - -

Derivative financial instruments 45,025 47,540 56,712

Interbank accounts 2,545 8,125 6,331

Loans 1,269,980 1,605,604 1,598,799

Loans - private sector 1,342,186 1,640,393 1,634,772

Loans - public sector - - -

(-) Allowance for loan losses (72,206) (34,789) (35,973)

Other receivables 375,392 544,975 730,299

Credit guarantees honored 507 - -

Foreign exchange portfolio 323,650 284,288 378,565

Income receivables 1,058 483 4,570

Negotiation and intermediation of securities 37,418 34,896 95,699

Sundry 22,611 232,071 257,708


Other assets 67,830 148,343 147,376

Other receivables and assets not for own use 59,227 145,542 147,622

(-) Provision for losses - (9,601) (9,257)

Prepaid expenses 8,603 12,402 9,011

Long term 951,854 1,020,719 985,819

Short-term interbank investments - - -

Marketable securities and derivative financial instruments 42,525 27,477 29,020

Own portfolio 31 14,658 14,494


Interbank Accounts 3,066 - -

Loans 630,239 671,325 636,331

Loans - private sector 755,413 735,572 686,471

Loans - public sector - - -

(-) Allowance for loan losses (125,174) (64,247) (50,140) - - -

Other receivables 248,551 320,827 319,485

Credit guarantees honored - 507 -

Trading and Intermediation of Securities 498 408 568

Foreign exchange portfolio - - 5,308

Income receivables - 5,620 1,636

Sundry 251,246 319,281 313,616


Other assets 27,473 1,090 983

Prepaid Expenses

Permanent Assets 87,522 96,323 89,567

Investments 31,630 35,590 35,030

Participações em controladas e coligadasSubsidiaries and Affiliates 29,939 33,897 33,337

Other investments 1,847 1,849 1,849

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

Property and equipment 13,639 12,130 9,307

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

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

Other property and equipment 22,739 23,756 24,236

(-) Accumulated depreciation (12,944) (15,412) (14,929)

Intangible 42,253 48,603 45,230

Goodwill 25,030 27,868 25,592

Other intangible assets 20,945 26,960 26,960

(-) Accumulated amortization (3,722) (6,225) (7,322)

TOTAL ASSETS 4,171,047 5,117,263 5,490,487

17/18 17/18

EARNINGS RELEASE

3rd Quarter 2014


LIABILITIES 9/30/2013 6/30/2014 9/30/2014

Current 2,547,624 2,972,918 3,545,879

Deposits 959,086 1,148,862 1,216,260

Cash deposits 37,559 56,892 55,712

Interbank deposits 15,674 27,553 15,778

Time deposits 905,853 1,064,417 1,144,770

Funds obtained in the open market 107,500 101,419 338,461

Own portfolio 25,800 51,419 338,461

Third party portfolio 81,700 50,000 -

Unrestricted Portfolio - - -

Funds from securities issued or accepted 645,621 1,213,308 1,456,876

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 645,621 1,213,308 1,456,876

Interbank accounts 391 313 188

Interdepartamental accounts 11,811 7,603 2,635

Borrowings 332,193 248,658 195,804

Domestic Borrowings - - -

Foreign borrowings 332,193 248,658 195,804

Onlendings 122,375 103,218 94,943

BNDES 80,798 57,634 52,541

FINAME 41,577 45,584 42,402

Federal Treasure - - -

Other l iabil ities 368,647 149,537 240,712

Collection and payment of taxes and similar charges 565 649 557

Foreign exchange portfolio 24,771 11,158 12,767

Taxes and social security contributions 15,920 12,428 14,544

Social and statutory liabilities 2,188 3,226 1,962

Negotiation and intermediation securities 219,743 86,002 169,014


Sundry 38,135 21,186 20,826

Long Term 1,046,932 1,468,902 1,268,141

Deposits 753,396 1,168,189 998,232

Interbank Deposits - - -

Time deposits 753,396 1,168,189 998,232

Funds from securities issued or accepted 33,095 80,981 79,956

Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 33,095 80,981 79,956

Loan obligations 33,072 32,776 24,323

Domestic loans - - -

Foreign loans 33,072 32,776 24,323

Onlending operations - Governmental Bureaus 203,037 138,928 119,993

Federal Treasure 6,956 6,552 6,112

BNDES 111,416 62,503 54,469

FINAME 84,461 69,683 59,222

Other Institutions 204 190 190

Other l iabil ities 24,332 48,028 45,637

Taxes and social security contributions 7,853 32,057 32,489

Derivative financial instrument 7,253 8,289 3,717

Sundry 9,226 7,682 9,431

Future results 2,035 4,012 3,706

Shareholders' Equity 574,456 671,431 672,761

Capital 662,384 769,843 769,843

Capital Reserve 22,223 27,275 29,217

Revaluation reserve 1,302 1,265 -

Profit reserve - - -

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

Asset valuation Adjustment (2) (53) (49)

Accumulated Profit / (Loss) (106,406) (123,340) (122,629)

Minority Interest 814 724 662

TOTAL LIABILITIES 4,171,047 5,117,263 5,490,487

18/18 18/18

EARNINGS RELEASE

3rd Quarter 2014

Income Statement


INCOME STATEMENT 3Q13 2Q14 3Q14 9M13 9M14

Income from Financial Intermediation 126,177 147,580 171,673 306,780 452,316

Loan operations 64,950 89,324 89,228 171,055 264,339

Income from securities 35,848 41,827 57,518 77,790 144,016

Income from derivative financial instruments 2,944 12,935 (17,737) (2,876) (13,641)

Income from foreign exchange transactions 22,435 3,494 42,664 60,811 57,602

Expenses from Financial Intermediaton (86,883) (95,911) (146,298) (375,884) (360,544)

Money market funding (56,440) (96,632) (105,871) (162,653) (292,650)

Loans, assignments and onlendings (23,237) (4,725) (25,942) (72,496) (45,474)

Sales operations/transfer of financial assets (536) (4,620) (19,600) (536) (24,220)

Allowance for loan losses (6,670) 10,066 5,115 (140,199) 1,800

Gross Prof it f rom Financial Instruments 39,294 51,669 25,375 (69,104) 91,772

Other Operating Income (Expense) (32,986) (43,852) (30,726) (102,914) (100,536)

Income from services rendered 10,077 18,652 17,498 25,164 48,795

Income from tariffs 184 182 191 543 581

Personnel expenses (24,091) (26,539) (25,087) (76,602) (79,141)

Other administrative expenses (17,171) (22,602) (22,294) (46,236) (65,465)

Taxes (2,945) (4,580) (3,648) (8,579) (11,708)

Result from affiliated companies 2,311 2,058 1,508 3,500 6,146

Other operating income 1,501 5,901 47,568 5,852 66,308

Other operating expense (2,852) (16,924) (46,462) (6,556) (66,052)

Operating Prof it 6,308 7,817 (5,351) (172,018) (8,764)

Non-Operating Prof it 367 (1,373) 9,217 450 6,163

Earnings before taxes and prof it -sharing 6,675 6,444 3,866 (171,568) (2,601)

Income tax and social contribution (2,805) (3,517) 1,095 71,493 3,028

Income tax (1,400) 2,071 (1,788) 6,306 (205)

Social contribution (683) 1,338 (1,027) 3,831 (126)

Deferred fiscal assets (722) (6,926) 3,910 61,356 3,359

Statutory Contributions & Prof it Sharing (1,868) (1,875) (3,300) (9,993) (7,587)

Net Prof it for the Period 2,002 1,052 1,661 (110,068) (7,160)

BI&P- Indusval- 3Q14 Earnings Release

Investor Relations

Transcript of BI&P- Indusval- 3Q14 Earnings Release