4
th
QUARTER 2015
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 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 BI&P Cereais, acquired in April 2011, which originates agricultural bonds.
The expanded credit portfolio of the Bank ended the quarter at R$2.2 billion, in line with the intentional reduction we began at the start of the year, reflecting its quality and liquidity. We will continue to operate in specific niches in the credit market, with the focus on the agricultural sector and on operations that generate cross selling with investment banking activities, while maintaining our conservative credit policy considering the prevailing uncertainties at the moment.
In the quarter, managerial expense with allowance for loan losses, excluding transactions related to Ceagro Agrícola reported in the 2Q15 and 3Q15 earnings releases, remained at our historical average of around 1% p.a. during the last 12 months despite the significant reduction in the portfolio we carried out in recent quarters.
On December 30, 2015, the Central Bank of Brazil approved the capital increase, announced on August 12, 2015, in the amount of R$80 million, which was subscribed to and paid by the controlling shareholders and other shareholders of the Bank. This increase, combined with the planned portfolio reduction, enabled us to end the year with a comfortable capital adequacy (Basel) ratio of 16.5%. At the end of the quarter, free cash totaled R$871.2 million, corresponding to 33% of total deposits, compared to 19% on December 31, 2014. Our comfortable cash position is the result of our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years. At the end of 4Q15, we had distributed our funding products through our partnerships with 74 brokerages, distributors and autonomous agents, and had a depositor base numbering more than 22,800, compared to 11,000 at the end of 4Q14, an increase of over 107%.
Managerial administrative and personnel expenses totaled R$25.3 million in 4Q15, compared to R$26.6 million in 3Q15, and totaled R$34.3 million in 4Q14, down 4.9% and 26.4%, respectively, strengthening the management’s commitment to controlling costs.
Income from services rendered and tariffs totaled R$14.5 million in 4Q15, down 5.3% in the quarter and up 3.5% from 4Q14. Note that in recent quarters, Guide Investimentos increased its share of this income, from 26% in 2014 to 67% in 2015, since the investments we made in that platform have already started bringing positive results.
The quarterly result was a loss of R$17.4 million, reflecting: (i) the extraordinary, non-recurring event involving Ceagro Agrícola Ltda. regarding the carrying cost of these operations, the expenses related to the collections process; (ii) the decrease in credit portfolio volume and consequent drop in revenue from these operations without a matching decline in operating costs, since the reduction of headcount implies initial costs while the decline in administrative expenses occurs more slowly than the reduction in revenues; and (iii) by the cash carrying cost, which has remained high.
The Board of Directors resolved on this date to launch a public tender offer to repurchase the common and preferred shares of the Company, in its capacity as the offerer and subject to approval by the shareholders meeting, for the purpose of cancellation of its registration with the Securities and Exchange Commission of Brazil (CVM) as a publicly held company that issues category “A” securities, which will result in its exit from Level 2 of Corporate Governance of BM&FBovespa S.A. The Board of Directors believes the Public Tender Offer and the consequent Cancelation of Registration of the Company will benefit both the Company and its shareholders, and the purpose of the Terms of the Public Tender Offer is to ensure that the operation is aligned with the best interests of the Company and does not in any way affect its capital structure or the objective constantly pursued by its management, which is to consolidate the Company as a highly capitalized investment, commercial, brokerage and wealth management bank.
Highlights
Conference Call / Webcasts
03/11/2016
In Portuguese
8 a.m. (US EST) | 11 a.m. (Brasília) Number: +55 11 3193-1001 +55 11 2820-4001 Code: Banco BI&P
www.bip.b.br/ir
IDVL4: R$1.00 per share
Closing: Mar 10, 2016 Ações em circulação: 151,983,855
Market cap: R$152.0 million Price/Book Value: 0.26
The Board of Directors resolved on this date to launch a public tender offer to repurchase the common and preferred shares of the Company, in its capacity as the offerer and subject to approval by the shareholders meeting, for the purpose of cancellation of its registration with the Securities and Exchange Commission of Brazil (CVM) as a publicly held company that issues category “A” securities, which will result in its exit from Level 2 of Corporate Governance of BM&FBovespa
On December 30, 2015, the Central Bank of Brazil approved the capital increase, announced on August 12, 2015
The expanded credit portfolio ended the quarter at R$2.2 billion and net cash of R$871.2 million, in line with the conservative policy adopted by us on account of the macroeconomic scenario, equivalent to 33% of our total deposits – the highest percentage reported by the bank in the past four years
Guide Investimentos already contributes with a sizeable portion of income from services rendered, increasing its share from 26% in 2014 to 67% in 2015
Message from the Management ... 3
Macroeconomic Scenario ... 5
Key Indicators ... 6
Operating Performance ... 8
Expanded Credit Portfolio ... 10
Funding ... 12 Free Cash ... 13 Capital Adequacy ... 13 Credit Ratings ... 13 Capital Markets ... 13 Balance Sheet ... 16 Income Statement ... 18
Summary
At the start of 2015, we had already predicted a highly challenging macroeconomic scenario for Brazil, which had been proving true during that year and also in the beginning of 2016. In this regard, we started reducing our credit portfolio and increasing liquidity, which, together with the capital increase of R$ 80 million, formally approved by the Central Bank of Brazil in 4Q15, enabled us to focus on strengthening our equity position even if it meant sacrificing profitability.
Expanded credit portfolio totaled R$2.2 billion in 4Q15, compared to R$2.4 billion in 3Q15 and R$4.1 billion in 4Q14, down 9% in the quarter and 47% in 12 months. The Corporate segment (companies with revenues between R$500 million and R$3 billion) ended the quarter accounting for 60% of the loans, as against 59% in 3Q15 and 62% in 4Q14, while the Emerging Companies segment (companies with revenues between R$200 million and R$500 million) ended the same period accounting for 40% of the loans, compared to 40% in 3Q15 and 38% in 4Q14. Aligned with the credit portfolio decline, though less steeper, total deposits, which include certificates of deposit (CDB), insured time deposits (DPGE), agro notes (LCA), real estate notes (LCI) and bank notes (LF), totaled R$2.7 billion, down 3.4% in the quarter and 33.7% from December 2014. Free cash ended the quarter at R$871.2 million, corresponding to 33% of total deposits, compared to 19% at the end of 4Q14. We maintained our comfortable cash position as a result of our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years. At the end of 4Q15, we had distributed our funding products through partnerships with 74 brokerages, distributors and autonomous agents, and had a depositor base numbering more than 22,700, compared to 11,000 at the end of 4Q14, an increase of over 107%.
Financial intermediation result before managerial expense with allowance for loan losses totaled R$16.7 million, as against -R$2.4 million in 3Q15. Excluding the effects of (i) the extraordinary, non-recurring event of Ceagro Agrícola Ltda. related to the carrying cost of these operations; (ii) the reduction in the credit portfolio in the period; (iii) the cash carrying cost, which has remained high; and (iv) the variation of the dollar in the period, which especially impacted the result from derivatives used to hedge the equity of the Cayman branch, whose offset is the item Taxes, whose net effect is neutral but which reduced the Financial Intermediation Result this quarter, the Financial
Intermediation Result before the allowance for loan losses would be R$30.8 million, up 5.5% from R$29.2 million in 3Q15, when adjusted by the same variables.
Managerial expense with allowance for loan losses remained in line with our historical average of around 1% p.a. in the last 12 months, despite the substantial reduction in the portfolio we carried out in recent quarters. The default rate on loans overdue more than 90 days (NPL 90 days), excluding operations related to Ceagro Agrícola, totaled R$58.3 million in 4Q15, as against R$29.1 million in 3Q15 and R$50.6 million in 4Q14, with provisions covering 77% of this balance. The increase in both quarterly and annual comparison is due to the stricter renegotiation processes, given the worsening macroeconomic situation and the Bank’s conservative approach.
Income from services rendered and tariffs totaled R$14.5 million in 4Q15, down 5.3% in the quarter and up 3.5% from 4Q14. Note that in recent quarters, Guide Investimentos increased its share of this income, from 26% in
2014 to 67% in 2015, since the investments we made in that platform have already started bringing positive results.
The decline in relation to 3Q15 is due to lower fee income generated by the commercial and investment banking operations on account of the more challenging macroeconomic environment for these operations.
The Bank’s managerial personnel expenses decreased by 5.5% in the quarter and by 33.7% from 4Q14. In the annual comparison, the decline was 24.0% (R$69.0 million in 2015, compared to R$90.8 million in 2014). The headcount of BI&P decreased by 4.6% in the quarterly comparison and by 32.7% from 4Q14, in line with the adjustments made. Administrative expenses decreased by 4.0% in the quarter and 12.4% from 4Q14. In the annual comparison, these expenses decreased by 5.9% (R$43.1 million in 2015, as against R$45.8 million in 2014), as a result of the management’s commitment to unceasing efforts to reduce costs. Personnel expenses at Guide Investimentos remained stable in the quarter, increasing 45.7% from 4Q14, while administrative expenses increased by 8.1% and 32.5% in the same comparison periods, as a result of investments made in the platform on account of its current growth phase.
The quarterly result was a loss of R$17.4 million, reflecting (i) the extraordinary, non-recurring event involving Ceagro Agrícola Ltda. regarding the carrying cost of these operations, the expenses related to the collections process; (ii) the decrease in credit portfolio volume and consequent drop in revenue from these operations without a matching decline in operating costs, since the reduction of headcount implies initial costs while the decline in administrative expenses occurs more slowly than the reduction in revenues; and (iii) by the cash carrying cost, which has remained high.
Our expectations for 2016 are better than what we faced in 2015, due to the following: (i) we started with a much lower cost base than in the previous year; (ii) greater confidence on the part of management that we will gradually return to growing our credit portfolio, with better margins, while maintaining strict control of risk, especially in the agricultural sector, which is our specialty and which is one of the few to deliver positive results in the Brazilian economy; and (iii) growth in revenue from investment banking and Guide due to the investments made in them. It must also be noted that the Board of Directors resolved on this date to launch a public tender offer to repurchase the common and preferred shares of the Company, in its capacity as the offerer and subject to approval by the shareholders meeting, for the purpose of cancellation of its registration with the Securities and Exchange Commission of Brazil (CVM) as a publicly held company that issues category “A” securities, which will result in its exit from Level 2 of Corporate Governance of BM&FBovespa S.A. The Board of Directors believes the Public Tender Offer and the consequent Cancelation of Registration of the Company will benefit both the Company and its shareholders, and the purpose of the Terms of the Public Tender Offer is to ensure that the operation is aligned with the best interests of the Company and does not in any way affect its capital structure or the objective constantly pursued by its management, which is to consolidate the Company as a highly capitalized investment, commercial, brokerage and wealth management bank.
In the Board’s view, the Cancellation of Registration is a business decision that is consistent with the reality of the Company as it currently does not envision the need to access the capital markets to finance its activities and that the costs incurred to maintain the Company’s registration as a publicly held company do not justify the reduced liquidity of its stock.
The fourth quarter of 2015 was marked by the continued worsening of economic growth and inflation projections for 2015 and 2016. The economic downturn and difficulties in political negotiations continued to hurt tax collection. Hence, the government set a flexible primary target, which could reach a deficit of up to 1% of the GDP.
As for economic activity, GDP in the fourth quarter of 2015 fell by 1.4% in relation to the previous quarter, when GDP declined by 1.7%. In the annual comparison, fourth quarter GDP fell by 5.9%. Other important indicators such as confidence indices continued to be the lowest in the historical series. It is worth highlighting the negative bias to growth projections due to uncertainties surrounding the developments in the Operation Lava Jato and Operation Zelotes, which adversely affect investments. In this scenario, the job market continues to worsen as well. With the decrease in employed population and economically active population, unemployment rate has been outpacing expectations and reached 9.0% between September and November 2015, according to the National Household Sample Survey (PNAD). Moreover, average real income declined by 1.3% year-on-year in the quarter ended in November, according to PNAD.
Despite this scenario of falling income levels and economic slowdown, inflation remained well above the target ceiling of 6.5%. In 2015, the IPCA index registered a 12-month accumulated increase of 10.67%, gaining pace in relation to the previous quarter, when the increase was 9.49%. Despite this inflationary scenario, the Central Bank of Brazil maintained the interest rate in the most recent meetings, ending the monetary tightening cycle, in which the Selic basic interest rate remained stable at 14.25%.
In Brazil’s national financial system, loan operations grew 1.6% in the fourth quarter, slowing down from the 2.0% growth in the previous quarter, reaching R$3.21 trillion. Average term of loans decreased from 115.9 months in September 2015 to 114.1 months in December the same year. Credit as a percentage of GDP ended December at 54.2%, higher than the 54.0% registered in September.
In the case of free credit operations, defaults by individuals for more than 90 days increased to 6.1% in December, from 5.7% in September, while corporate defaults increased from 4.1% in September to 4.5% in December in the same comparison basis. The scenario indicates continued slowdown of lending and increase in default levels on account of the worsening job market and economic scenario.
Macroeconomic Data 4Q15 3Q15 4Q14 2015 2016(e)
Real GBP Growth (Q/Previous Q) -1.4% (e) -1.7% 0.1% -3.9% (e) -3.40% Inflation (IPCA - IBGE) – quarterly change 2.79% 1.38% 1.71% 2.79% 2.87% Inflation (IPCA - IBGE) – annual change 10.67% 9.49% 6.41% 10.67% 7.50% FX (US$/R$) – quarterly change -1.71% 28.05% 8.37% 47.01% 11.66% Interest Rate (Selic) 14.25% 14.25% 11.75% 14.25% 14.25% e= expected
Financial intermediation result before managerial expense with allowance for loan losses totaled R$16.7 million, as against -R$2.4 million in 3Q15. Excluding the effects of (i) the extraordinary, non-recurring event of Ceagro Agrícola Ltda. related to the carrying cost of these operations; (ii) the reduction in the credit portfolio in the period; (iii) the cash carrying cost, which has remained high; and (iv) the variation of the dollar in the period, which especially impacted the result from derivatives used to hedge the equity of the Cayman branch, whose offset is the item Taxes, whose net effect is neutral but which reduced the Financial Intermediation Result this quarter, the
Financial Intermediation Result before the allowance for loan losses would be R$30.8 million, up 5.5% from R$29.2 million in 3Q15, when adjusted by the same variables.
Results¹ 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 2015 2014 2015/2014
Revenues from Loan Operations & Agro Bonds 2 67.0 99.4 -32.5% 126.3 -46.9% 402.1 472.1 -14.8% Revenues Securities (w/o Agro Bonds), Derivatives & FX 3 49.6 39.7 24.9% 55.2 -10.1% 200.4 163.5 22.5% Financial Intermediation Expenses (w/o ALL) 4 (100.0) (141.4) -29.3% (139.7) -28.4% (525.5) (489.1) 7.5% Result from Financial Intermediation before ALL 16.7 (2.4) n.c. 41.8 -60.1% 76.9 146.6 -47.5%
Managerial ALL Expense 5 1.5 (12.6) 112.3% (8.7) 117.8% (237.1) (36.1) n.c.
Result from Financial Intermediation 18.2 (15.0) 221.7% 33.1 -45.0% (160.1) 110.5 -244.9% Revenues from Services Rendered and Tariffs 6 14.5 15.3 -5.3% 14.0 3.5% 52.9 56.0 -5.6% Personnel and Administrative Expenses (37.2) (38.1) -2.3% (42.9) -13.3% (156.1) (168.0) -7.1% Personnel Expenses without Guide (15.0) (15.8) -5.5% (22.6) -33.7% (69.0) (90.8) -24.0%
Personnel Expenses Guide (6.0) (6.0) -0.1% (4.1) 45.7% (22.6) (15.0) 50.4%
Administrative Expenses without Guide 7 (10.3) (10.7) -4.0% (11.8) -12.4% (43.1) (45.8) -5.9%
Administrative Expenses Guide 7 (5.9) (5.5) 8.1% (4.5) 32.5% (21.4) (16.4) 30.5%
Other operating income and expenses 8 (8.8) 2.2 n.c. (3.5) 153.7% (11.9) (1.7) n.c.
Foreign investments hedge effect (7.3) 11.1 -166.1% (0.1) n.c. 3.5 (9.7) 136.4%
Recurring Operating Result (20.6) (24.5) -15.9% 0.6 n.c. (271.6) (13.0) n.c.
Non-Recurring Operating Expenses (2.5) (1.6) 58.6% (0.4) n.c. (5.5) (5.2) 5.7%
Effect of discontinuance of hedge accounting 0.2 2.2 -89.4% (0.4) 163.8% 1.0 (4.2) 123.5%
Other non-Recurring Operating Expenses (2.7) (3.8) -27.2% 0.0 n.c. (6.5) (1.0) n.c.
Operating Result (23.1) (26.1) -11.4% 0.2 n.c. (277.2) (18.2) n.c.
Non-operating Profit (3.2) (1.4) 129.3% 0.9 n.c. (11.0) 7.0 -255.7%
Foreign investments hedge effect 7.3 (11.1) 166.1% 0.1 n.c. (3.5) 9.7 -136.4%
Income tax and social contribution 4.4 29.1 -85.0% 3.3 32.9% 130.4 6.3 n.c. Statutory contributions & Profit sharing (2.7) (2.3) 16.8% (2.5) 9.1% (9.3) (10.1) -7.2%
Net Profit (Loss) (17.4) (11.8) 47.7% 2.0 n.c. (170.6) (5.2) n.c.
1 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 where 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.
2
1 Excluding the effects of (i) recoveries of loans written off, and (ii) discounts granted upon settlement of loans in the period. (iii) the credit risk amount related to securities operations.
3 Excludes the effect of discontinuance of the designation of hedge accounting in 2Q12. This effect is included in Non-Recurring Operating Expenses. 4 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.
5 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, (ii) discounts granted upon settlement of loans in the period, (iii) expense with allowance for guarantees issued (LGs & L/Cs), started in December 2014, (iv) the credit risk amount assigned to securities operations and (v) the impacts of other credit assignments in the Income Statement in the accounting heading Result of Sale/Transfer of Financial Assets. In 2Q14 and 2Q15 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. .
6 Includes expenses booked under administrative expenses related to income from services rendered.
7 Excludes (i) non-recurring operating expenses, (ii) expenses related to financial intermediation, and (iii) expenses related to income from services
rendered.
8
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).
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 where otherwise stated.
The 3Q15 and 4Q15 NPL and Margin with client’s indicators were adjusted to the specific and non-recurring event related to Ceagro operations, as reported in the 2Q15 earnings release.
Assets & Liabilities 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
Loan Portfolio 1,589.8 1,861.2 -14.6% 2,988.8 -46.8%
Expanded Loan Portfolio 1 2,174.3 2,398.1 -9.3% 4,135.7 -47.4%
Cash & Short Term Investments 517.1 523.0 -1.1% 610.9 -15.4%
Securities and Derivatives 1,019.0 837.3 21.7% 1,361.6 -25.2%
Securities w/o Agro Sec. & Private Credit Bonds 2 556.4 442.5 25.7% 413.9 34.4%
Total Assets 3,663.6 3,792.5 -3.4% 5,526.7 -33.7% Total Deposits 2,660.0 2,752.6 -3.4% 4,010.2 -33.7% Open Market 63.1 98.8 -36.1% 204.9 -69.2% Foreign Borrowings 49.8 80.3 -38.1% 189.6 -73.8% Domestic Onlendings 101.1 118.9 -15.0% 185.7 -45.6% Shareholders’ Equity 591.2 527.5 12.1% 676.6 -12.6% Performance 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 Free Cash 871.2 839.2 3.8% 748.6 16.4% NPL 90 days value 3 58.0 29.1 99.3% 50.6 14.7% Basel Index 4 16.5% 13.5% 3.0 p.p. 13.1% 3.4 p.p. ROAE -11.9% -8.6% -3.3 p.p. 1.2% -13.1 p.p.
Net Interest Margin with Clients 3 4.35% 4.27% 0.08 p.p. 4.14% 0.21 p.p.
Efficiency Ratio 5 111.8% 89.5% 22.3 p.p. 92.7% 19.1 p.p.
Efficiency Ratio BI&P w/o Guide Investimentos 5 117.9% 80.0% 37.9 p.p. 87.7% 30.2 p.p.
Other Information 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
Number of Corporate Clients 572 522 9.6% 1,198 -52.3%
Number of Employees 339 345 -1,7% 405 -16,3%
Banco BI&P employees 208 218 -4,6% 309 -32,7%
Guide Investimentos and Serglobal employees 131 127 3,1% 96 36,5%
1
Including Guarantees issued, Private Credit Bonds (PNs and Debentures) and Agro Securities (Agro Credit Rights Certificates (CDCA) and CPR).
2 Excluding Agro Securities (CPRs and Agro Credit Rights Certificates (CDCA)) and Private Credit Bonds (PNs and debentures) for trading. 3
Adjusted for the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda,
4 Including the capital increase of R$80 million 5
In 3Q15 and 4Q15, includes the adjustment to financial intermediation result, as mentioned in the section on Operating Performance n.c. = not comparable (percentage above 300% or below -300%, or number divided by zero).
Key Indicators
Financial intermediation result before managerial expense with allowance for loan losses totaled R$16.7 million, as against -R$2.4 million in 3Q15. Excluding the effects of (i) the extraordinary, non-recurring event of Ceagro Agrícola Ltda. related to the carrying cost of these operations; (ii) the reduction in the credit portfolio in the period; (iii) the cash carrying cost, which has remained high; and (iv) the variation of the dollar in the period, which especially impacted the result from derivatives used to hedge the equity of the Cayman branch, whose offset is the item Taxes, whose net effect is neutral but which reduced the Financial Intermediation Result this quarter, the
Financial Intermediation Result before the allowance for loan losses would be R$30.8 million, up 5.5% from R$29.2 million in 3Q15, when adjusted by the same variables.
The quarterly result was a loss of R$17.4 million, reflecting (i) the extraordinary, non-recurring event involving Ceagro Agrícola Ltda. regarding the carrying cost of these operations, the expenses related to the collections process; (ii) the decrease in credit portfolio volume and consequent drop in revenue from these operations without a matching decline in operating costs, since the reduction of headcount implies initial costs while the decline in administrative expenses occurs more slowly than the reduction in revenues; and (iii) by the cash carrying cost, which has remained high.
Profitability
Financial Intermediation 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 2015 2014 2015/2014
Financial Intermediation Revenues 116.7 139.1 -16.1% 181.5 -35.7% 602.5 635.6 -5.2%
Loan Operations and Agro Bonds 67.0 99.4 -32.5% 126.3 -46.9% 402.1 472.1 -14.8%
Loans, Discount Receivables and Agro
Bonds 54.2 79.2 -31.5% 104.3 -48.0% 323.1 393.8 -18.0%
Financing 12.8 20.1 -36.4% 22.0 -41.9% 78.9 78.2 0.9%
Others 0.0 0.1 -93.6% 0.0 -69.2% 0.1 0.1 -15.0%
Securities (w/o Agro Bonds) 30.8 50.0 -38.3% 28.8 7.1% 149.5 89.3 67.3%
Derivatives 17.2 (69.0) 125.0% (11.4) 251.1% (75.4) (21.2) 255.7%
FX Operations Result 1.5 58.7 -97.4% 37.8 -96.0% 126.3 95.4 32.4%
Financial Intermediation Expenses (100.0) (141.4) -29.3% (139.7) -28.4% (525.5) (489.1) 7.5%
Money Market Funding (97.2) (119.7) -18.8% (123.2) -21.1% (461.5) (427.0) 8.1%
Time Deposits (63.8) (77.8) -18.0% (66.0) -3.3% (283.3) (256.8) 10.3%
Repurchase Transactions (3.2) (4.4) -26.8% (6.8) -52.7% (16.9) (18.9) -10.2%
Interbank Deposits (0.3) (0.5) -43.6% (0.3) 15.0% (2.1) (1.8) 18.5%
Agro Bonds (LCA), Real Estate Notes (LCI)
& Bank Notes (LF) (29.4) (36.4) -19.3% (45.6) -35.7% (154.2) (133.9) 15.2%
Others (0.5) (0.6) -14.3% (4.5) -88.9% (5.0) (15.7) -68.3%
Loans, Assignments & Onlending (2.6) (21.4) -88.0% (16.5) -84.5% (62.1) (62.0) 0.1%
Foreign Borrowings (1.5) (18.1) -91.8% (13.5) -89.0% (52.4) (47.0) 11.6%
Domestic Borrowings & Onlending (1.1) (3.3) -67.1% (3.1) -64.7% (9.7) (15.0) -35.8% Sales operations/transfer of financial assets (0.2) (0.3) -29.3% (0.1) n.c. (2.0) (0.1) n.c. Gross Result from Financial Intermediation
before ALL 16.7 (2.4) n.c. 41.8 -60.1% 76.9 146.6 -47.5%
Managerial ALL Expense 1.5 (12.6) 112.3% (8.7) 117.8% (237.1) (36.1) n.c.
Gross Result from Financial Intermediation 18.2 (15.0) 221.7% 33.1 -45.0% (160.1) 110.5 -244.9%
Net Interest Margin (NIM)
Managerial interest margin with clients was 4.35% in 4Q15, compared to 4.27% in 3Q15, due to the increase in loan renewal rates.
Net Interest Margin 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
A. Result from Financial Intermediation before ALL 16.7 (2.4) n.c. 41.8 -60.1%
B. Average Interest bearing Assets 2,756.4 3,309.7 -16.7% 4,470.5 -38.3%
Adjustment for non-remunerated average assets 1 (89.1) (118.4) -24.8% (263.2) -66.2%
B.a. Adjusted Average Interest bearing Assets 2,667.4 3,191.3 -16.4% 4,207.2 -36.6%
Net Interest Margin (Aa/Ba) 2.5% -0.3% 2.8 p.p. 4.0% -1.5 p.p.
Managerial NIM with Clients 2 4.35% 4.27% 0.1 p.p. 4.14% 0.2 p.p.
1
Repos with equivalent volumes, tenors and rates both in assets and liabilities.
2
Adjusted for the extraordinary, nonrecurring event involving Ceagro Agrícola Ltda.
Efficiency
In 4Q15, operating expenses of BI&P, excluding Guide Investimentos, were lower than in 3Q15, due to the adjustments made in recent quarters. Note that financial intermediation result was impacted by non-recurring events, as mentioned in the section on Operating Performance. If operating income were adjusted for such
effects, efficiency ratio in 4Q15 would be 117.9%. The decline in comparison with the previous quarter is due
to lower income from services rendered and the increase in expenses with labor contingencies.
Efficiency Ratio w/o Guide Investimentos 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 2015 2014 2015/2014
Personnel Expenses 15.0 15.8 -5.5% 22.6 -33.7% 69.0 90.8 -24.0%
Contributions and Profit-sharing 0.5 0.2 144.5% 2.2 -79.1% 3.1 8.9 -65.1%
Administrative Expenses 10.3 10.7 -4.0% 11.8 -12.4% 43.1 45.8 -5.9%
Taxes 1.2 0.7 58.5% 3.0 -60.3% 6.1 12.8 -52.5%
A. Total Operating Expenses 26.9 27.5 -2.2% 39.5 -31.8% 121.3 158.3 -23.4% Gross Income Financial Intermediation (w/o
ALL) 13.1 (5.3) n.c. 37.8 -65.4% 66.9 137.6 -51.4%
Income from Services Rendered 2.8 5.2 -46.0% 9.8 -71.4% 17.6 41.3 -57.4%
Other Net Operating Income * (7.2) 2.9 n.c. (2.5) 184.2% (5.2) 4.7 -210.3%
B. Total Operating Income 8.7 2.8 205.3% 45.0 -80.7% 79.3 183.6 -56.8%
Efficiency Ratio (A/B) n.c. n.c. n.c. 87.7% 222.5 p.p. 152.9% 86.2% 66.7 p.p.
Ajusted Efficiency Ratio (A/B) 117.9% 80.0% 37.9 p.p. 87.7% 30.2 p.p. 152.9% 86.2% 66.7 p.p.
The efficiency ratio of the group, including Guide Investimentos, was healthier since our investments in that platform in recent quarters have already started bringing positive results.
Efficiency Ratio 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 2015 2014 2015/2014
Personnel Expenses 15.0 15.8 -5.5% 22.6 -33.7% 69.0 90.8 -24.0%
Contributions and Profit-sharing 0.5 0.2 144.5% 2.2 -79.1% 3.1 8.9 -65.1%
Administrative Expenses 10.3 10.7 -4.0% 11.8 -12.4% 43.1 45.8 -5.9%
Taxes 1.2 0.7 58.5% 3.0 -60.3% 6.1 12.8 -52.5%
A. Total Operating Expenses 26.9 27.5 -2.2% 39.5 -31.8% 121.3 158.3 -23.4% Gross Income Financial Intermediation (w/o ALL) 13.1 (5.3) n.c. 37.8 -65.4% 66.9 137.6 -51.4%
Income from Services Rendered 2.8 5.2 -46.0% 9.8 -71.4% 17.6 41.3 -57.4%
Other Net Operating Income * (3.2) 2.9 -208.6% (2.5) 25.9% (5.2) 4.7 -210.3%
B. Total Operating Income 12.7 2.8 n.c. 45.0 -71.8% 79.3 183.6 -56.8%
Efficiency Ratio (A/B) n.c. n.c. n.c. 87.7% 124.6 p.p. 152.9% 86.2% 66.7 p.p.
Ajusted Efficiency Ratio (A/B) 111.8% 89.5% 22.4 p.p. 92.7% 19.2 p.p. 141.6% 93.4% 48.2 p.p. 89,5%
Cereais.
In December 2015, the classic credit portfolio totaled R$1.6 billion, down 14.6% in the quarter and 46.8% in 12 months. Expanded credit portfolio totaled R$2.2 billion, intentionally decreasing by 9.3% in the quarter and by 47.4% in 12 months, due to the above-mentioned approach taken by the commercial banking operation.
We will continue to operate in specific niches in the credit market, with the focus on the agricultural sector, and on operations that generate cross selling with investment banking activities, maintaining our conservative credit policy, considering the challenging macro environment.
Expanded Credit Portfolio by Product Group 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
Loans & Financing in Real 1,298.7 1,511.6 -14.1% 2,165.9 -40.0%
Assignment of Receivables Originated by our Customers 72.8 43.5 67.1% 263.4 -72.4%
Trade Finance (ACC/ACE/IMPFIN) 193.8 285.7 -32.2% 517.9 -62.6%
Other 1 24.5 20.4 20.3% 41.6 -41.0%
Credit Portfolio 1,589.8 1,861.2 -14.6% 2,988.8 -46.8%
Guarantees Issued (LGs & L/Cs) 121.8 142.1 -14.3% 199.2 -38.8%
Agro Bonds (Securities: CPRs & CDA/WA; Credit:
CDCAs) 421.9 349.7 20.6% 885.1 -52.3%
Private Credit Bonds (Securities: Debentures) 40.8 45.0 -9.3% 62.7 -34.9%
Expanded Credit Portfolio 2,174.3 2,398.1 -9.3% 4,135.7 -47.4%
1
The Other segment basically consists of Consumer Credit operations for Used Vehicles and financing of non-operating assets.
The Corporate segment accounted for 59.7% (59.2% in September 2015 and 62.0% in December 2014) of the expanded credit portfolio at the end of the quarter, compared to 39.5% (40.1% and 37.6% in the respective comparison periods) of the Emerging Companies segment. In other words, the reduction of the portfolio witnessed during the year was evenly distributed between the two segments in which we operate.
Expanded Credit Portfolio by Segment
Expanded Credit Portfolio by Client Concentration
The agro bonds portfolio, classified under marketable securities, totaled R$515.6 million in 4Q15, up 12.9% in the quarter and down 49.6% in 12 months. The decrease in 12 months is mainly due to the transfer of CPRs related to Ceagro to the classic credit portfolio.
Agro Bonds Portfolio 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
Booked under Securities 421.9 349.7 20.6% 885.1 -52.3%
Warrants - CDA/WA 50.6 37.9 33.3% 64.2 -21.2%
Agro Product Certificate - CPR 371.3 311.8 19.1% 820.9 -54.8%
Booked under Credit Portfolio - Loans & Financing 93.8 106.9 -12.3% 137.1 -31.6%
Agro Credit Rights Certificate - CDCA 93.8 106.9 -12.3% 137.1 -31.6%
Agricultural Bonds 515.6 456.6 12.9% 1,022.1 -49.6%
38% 36% 39% 40% 40%
62% 64% 61% 59% 60%
0,3% 0,3% 0,6% 0,7% 0,8%
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15
Emerging Companies Corporate Other*
14% 18% 20% 28% 36% 37% 26% 28% 26% 33% 18% 16% Dec 14 Sep 15 Dec 15
top 10 11 - 60 largest 61 - 160 largest Other
Expanded Credit Portfolio by Region
Expanded Credit Portfolio by Economic Sector
Quality of Expanded Credit Portfolio
In 4Q15, we continued to operate in specific niches in the credit market, with the focus on the agricultural sector and on operations that generate cross selling with investment banking activities, while maintaining our conservative credit policy considering the prevailing uncertainties at the moment, always giving priority to good quality and short duration loans.
Expanded Credit Portfolio by Rating Last 12-month Managerial ALL Expense
Of the R$79.2 million rated between E and H in the expanded credit portfolio, R$20.7 million, or 26%, consist of loans whose payments are regular.
The default rate on loans overdue more than 90 days (NPL 90 days), excluding operations related to Ceagro Agrícola, totaled R$58.3 million in 4Q15, as against R$29.1 million in 3Q15 and R$50.6 million in 4Q14, with
provisions covering 77% of this balance. The increase in both quarterly and annual comparison is due to the
stricter renegotiation processes, given the worsening macroeconomic situation and the Bank’s conservative approach. Default by segment 4Q15 3Q15 > 90 days 4Q15 3Q15 Credit Portfolio NPL Emerging Companies 605.2 631.0 36.1 18.8 Corporate 783.8 923.9 21.9 10.2 Other 16.6 17.5 0.0 0.1 TOTAL 1,405.6 1,572.3 58.0 29.1
Allowance for Loan Losses (ALL) - excluding operations related to Ceagro 89.5 73.9
Managerial expense with allowance for loan losses, excluding operations related to Ceagro Agrícola, remained in
line with our historical average of around 1% p.a. in the last 12 months, despite the substantial reduction in the portfolio we carried in recent quarters.
North 4% Northeast 6% Midwest 21% Southeast 53% South 16% 12,5% 1,2% 1,2% 1,4% 1,6% 1,7% 2,0% 2,6% 3,0% 3,8% 4,0% 6,6% 6,9% 7,1% 12,1% 32,4%
Other Sectors (less than 1.2%) Mining Commerce - Retail & Wholesale Wood & Furniture Machinery and Equipments Infrastructure Financial Activities Automotive Raw Materials Transport and Logistics Textile, Leather and Confection Oil, Biofuel & Sugar Livestock Food & Beverage Real Estate Agriculture 222 686 724 211 68 - 13 25 42 AA A B C D E F G H R $ m ill lio n 0,98% 1,12% 1,07% 1,17% 0,97% -10,00% -5, 00% 0,00% 5,00% 10, 00% 15, 00% -10,00% -8, 00% -6, 00% -4, 00% -2, 00% 0,00% 2,00% 4,00% 6,00% 8,00% 10, 00%
Funding totaled R$2.8 billion in December 2015, down 4.8% in the quarter and 35.9% in 12 months, in line with the reduction in the expanded credit portfolio, though at a slower pace. Our comfortable cash position is the result of our strategy of maintaining a high level of liquidity and diversifying our funding sources in recent years. At the end of 4Q15, we had distributed our funding products through partnerships with 74 brokerages, distributors and autonomous agents, and had a depositor base numbering more than 22,800, compared to 11,000 at the end of 4Q14, an increase of over 107%.
Total Funding 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14
Total Deposits 2,660.0 2,752.6 -3.4% 4,010.2 -33.7%
Time Deposits 1,174.7 1,221.0 -3.8% 861.0 36.4%
Insured Time Deposits (DPGE) 537.5 547.1 -1.8% 1,308.4 -58.9%
DPGE I 398.3 378.3 5.3% 876.6 -54.6%
DPGE II 139.2 168.7 -17.5% 431.8 -67.8%
Agro Notes (LCA) 823.1 823.7 -0.1% 1,573.5 -47.7%
Real Estate Notes (LCI) 83.1 90.1 -7.7% 181.0 -54.1%
Bank Notes (LF) 17.1 16.5 3.9% 25.6 -33.0% Interbank Deposits 0.0 14.5 n.c. 8.9 n.c. Demand Deposits 24.5 39.8 -38.4% 51.8 -52.7% Domestic Onlending 101.1 118.9 -15.0% 185.7 -45.6% Foreign Borrowings 49.8 80.3 -38.1% 189.6 -73.8% Trade Finance 49.8 80.3 -38.1% 189.6 -73.8% Others 0.0 0.0 n.c. 0.0 n.c. Total Funding 2,810.9 2,951.9 -4.8% 4,385.6 -35.9%
By Type By Investor By Maturity
Average term of deposits is 645 days from issuance (637 days in September 2015) and 394 days from maturity (346 days in September 2015).
Average Term in days
Type of Deposit from issuance to maturity ¹
Interbank 0 0
Time Deposits 730 527
Time Deposits with Special Guarantee DPGE) 870 424
Agro Notes (LCA) 403 206
Real Estate Letters of Credit (LCI) 299 200
Bank Notes (LF) 1,282 619
Portfolio of Deposits 2 645 394
1 From December 31, 2015. | 2 Volume-weighted average..
Time Deposits 42% DPGE I* 14% DPGE II* 5% Agro Bonds 29% Bank & Real Estate Notes 3% BNDES Onlending 4% Trade Finance 2% Interbank & Demand Deposits 1% Institutional Investors 30% Enterprises 4% National Banks 0,0% Brokers 46% Individuals 13% Other 1% BNDES Onlending 4% Foreign Banks 2% Demand 1% Up to 90 days 13% 91 to 180 days 23% 181 to 360 days 15% +360 days 48%
Funding
On December 31, 2015, free cash totaled R$871.2 million, equivalent to 32.8% of total deposits, 18.7% in December 2014, and 1.5 time 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).
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 4Q15 3Q15 4Q15/3Q15 4Q14 4Q15/4Q14 Total Capital 434.2 373.9 16.1% 604.4 -28.2% Tier I 434.2 373.9 16.1% 604.4 -28.2% Tier II 0.0 0.0 n.c. 0.0 n.c. Deductions 0.0 0.0 n.c. 0.0 n.c. Required Capital 290.2 305.3 -4.9% 505.9 -42.6%
Credit Risk Allocation 271.6 287.4 -5.5% 474.4 -42.7%
Market Risk Allocation 11.2 10.5 7.0% 15.2 -26.2%
Operating Risk Allocation 7.3 7.3 0.0% 16.2 -54.7%
Excess over Required Capital 144.0 68.7 109.8% 98.6 46.1%
Basel Index 16.5% 13.5% 3.0 p.p. 13.1% 3.3 p.p.
Agency Classification Observation Last
Report Standard & Poor’s brBB-/ Negative/ brA-3
B+/ Negative/ B
Local Scale – Brazil
Global Scale September 9, 2015
RiskBank RiskBank Index: 8.02
Low Risk Short Term (-) Disclosure: Excellent January 13,2016
Total de Ações e Ações em Livre Circulação
Total Shares and Free Float
Number of shares as of January 04, 2016 (considered the first position after BACEN’s approval on Dec 30,2015)
Type Corporate
Capital
Controlling
Group Management Treasury Free Float %
Common 115.033.148 77.042.781 57.876 - 37.932.491 33,0% Preferred 37.494.103 7.090.684 279.362 543.396 29.580.661 78,9%
TOTAL 152.527.251 84.133.465 337.238 543.396 67.513.152 44,3%
749 839 871
Dec 14 Sep 15 Dec 15
R $ m ill io n s
Free Cash
Capital Adequacy
Capital Markets
Risk Ratings
Stock Option Plan
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 December 31, 2015:
Stock Option
Plan
Date of
Approval Grace Period
Term for Exercise
Quantity
Granted Exercised Extinct Not Exercised
I Mar 26, 2008 Three years Five years 861,436 - 142,922 718,514
II Apr 29, 2011 Three years Five years 1,840,584 - 400,550 1,440,034
III Apr 29, 2011 Five years Seven years 1,850,786 - 151,024 1,699,762
IV Apr 24, 2012 Up to five years Five years 867,425 - 207,759 659,666
Total 5,420,231 - 902,255 4,517,976
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 2015 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 2015. 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 Banco BI&P (IDVL4), listed in the Level 2 Corporate Governance segment of BM&FBovespa, closed the quarter at R$1.02, for market cap of R$155 million, including the shares existing on December 31, 2015 and excluding treasury stock. The price of IDVL4 shares dropped 17% in the quarter and 63% in the 12 months ended December 2015. In comparison, the Bovespa Index (Ibovespa) dropped 4% in the quarter and 13% in relation to December 2014. At the end of 4Q15, the price/book value (P/BV) ratio was 0.23.
Liquidity and Trading Volume
The preferred shares of BI&P (IDVL4) were traded in 80.0% of the sessions in the quarter and 81.3% of the 246 sessions in the 12 months ended in December 2015. The volume traded on the spot market in the quarter was R$1.1 million, involving 1 million IDVL4 shares in 330 trades. Between the close of 4Q14 and 4Q15, the volume of IDVL4 shares traded on the spot market was R$19.4 million, involving around 11.2 million preferred shares in 1,951 trades.
Shareholder Base
Position as of January 04, 2016 (considered the first position after BACEN’s approval on Dec 30,2015)
# TYPE OF SHAREHOLDER IDVL3 % IDVL4 % TOTAL %
8 Controlling Group 77,042,781 67.0% 7,090,684 18.9% 84,133,465 55.2%
4 Management 57,876 0.1% 279,362 0.7% 337,238 0.2%
- Treasury 0 0.0% 543,396 1.4% 543,396 0.4%
16 National Institutional Investors 4,595,651 4.0% 6,493,875 17.3% 11,089,526 7.3%
4 Foreign Investors 12,190,677 10.6% 18,738,625 50.0% 30,929,302 20.3%
9 Corporates 100 0.0% 442,832 1.2% 442,932 0.3%
289 Individuals 21,146,063 18.4% 3,905,329 10.4% 25,051,392 16.4%
CONSOLIDATED R$ thousand
ASSETS 12/31/2015 9/30/2015 12/31/2014
Current 2,768,106 2,789,955 4,434,011
Cash 77,372 53,755 40,688
Short-term interbank investments 439,700 469,229 570,177
Open market investments 439,617 469,144 555,995
Interbank deposits 83 85 14,182
Securities and derivative financial instruments 968,294 775,304 1,328,654
Own portfolio 702,008 476,175 1,055,672
Subject to repurchase agreements - - 62,361
Linked to guarantees 230,192 261,732 152,488
Derivative financial instruments 36,094 37,397 53,106
Interbank accounts 1,193 2,126 2,180
Payment and receipts pending settlement - 853 -
Restricted credits - Deposits with the Brazilian Central Bank 1,192 1,273 2,180
Agreements 1 - -
Loans 837,296 962,631 1,604,637
Loans - private sector 865,575 990,641 1,614,919
Loans - assignments 2,724 1,250 24,869
(-) Allowance for loan losses (31,003) (29,260) (35,151)
Other receivables 265,473 334,499 730,714
Foreign exchange portfolio 187,782 218,930 375,753
Income receivables 905 1,400 5,196
Negotiation and intermediation of securities 30,215 56,300 59,093
Sundry 68,736 66,201 297,026
(-) Allowance for loan losses (22,165) (8,332) (6,354)
Other assets 178,778 192,411 156,961
Other receivables and assets not for own use 188,746 201,179 161,581
(-) Provision for losses (12,625) (11,170) (9,441)
Prepaid expenses 2,657 2,402 4,821
Long term 816,939 924,647 1,001,081
Short-term interbank investments - - -
Interbank deposits - - -
Marketable securities and derivative financial instruments 50,755 61,946 32,961
Own portfolio 21,421 7,973 14,869
Subject to repurchase agreements 27,786 39,555 -
Derivative financial instruments 1,548 14,418 18,092
Interbank Accounts 2,990 2,892 2,639
Pledged Deposits - Caixa Economica Federal 2,990 2,892 2,639
Loans 290,840 358,699 642,056
Loans - private sector 346,571 386,344 691,682
Loans - assignments 2,500 3,750 5,000
(-) Allowance for loan losses (58,231) (31,395) (54,626)
- - -
Other receivables 468,596 500,607 322,027
Credit guarantees honored - - -
Trading and Intermediation of Securities 421 410 1,563
Foreign exchange portfolio - - 5,752
Income receivables 1,171 1,120 454
Sundry 613,352 699,889 319,549
(-) Allowance for loan losses (146,348) (200,812) (5,291)
Other assets 3,758 503 1,398
Permanent Assets 78,550 77,946 91,646
Investments 24,307 26,879 38,271
Participações em controladas e coligadasSubsidiaries and Affiliates 22,585 25,149 36,578
Other investments 1,795 1,795 1,849
(-) Loss Allowances (73) (65) (156)
Property and equipment 6,870 7,415 9,096
Other property and equipment 24,287 24,001 23,900
(-) Accumulated depreciation (17,417) (16,586) (14,804)
Intangible 47,373 43,652 44,279
Goodwill 28,900 26,310 25,592
Other intangible assets 31,556 29,083 27,091
(-) Accumulated amortization (13,083) (11,741) (8,404)
TOTAL ASSETS 3,663,595 3,792,548 5,526,738
CONSOLIDATED R$ thousand LIABILITIES 12/31/2015 9/30/2015 12/31/2014 Current 1,661,410 2,060,676 3,905,502 Deposits 525,919 841,993 1,526,024 Cash deposits 24,516 39,825 51,783 Interbank deposits - 14,497 8,948 Time deposits 501,403 787,671 1,465,293
Funds obtained in the open market 63,130 98,792 204,937
Own portfolio 27,505 39,246 61,237
Third party portfolio 35,625 59,546 143,700
Unrestricted Portfolio - - -
Funds from securities issued or accepted 812,518 801,838 1,696,104
Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 812,518 801,838 1,696,104
Interbank accounts - 302 -
Receipts and payment pending settlement - 302 - Correspondent banks - - -
Interdepartamental accounts 5,016 10,724 17,598
Third party funds in transit 5,016 10,724 17,598
Borrowings 49,750 80,331 189,644 Domestic Borrowings - - - Foreign borrowings 49,750 80,331 189,644 Onlendings 67,903 78,379 83,039 BNDES 41,371 48,372 43,874 FINAME 26,532 30,007 39,165 Federal Treasure - - - Other liabilities 137,174 148,317 188,156
Collection and payment of taxes and similar charges 775 115 845 Foreign exchange portfolio 17,054 2,353 6,323 Taxes and social security contributions 7,631 10,798 10,807 Social and statutory liabilities 5,221 2,520 4,444 Negotiation and intermediation securities 74,599 78,464 93,908 Derivative financial instruments 7,955 21,699 30,074
Sundry 23,939 32,368 41,755
Long Term 1,408,715 1,201,816 941,020
Deposits 1,210,783 980,375 704,113
Interbank Deposits - - -
Time deposits 1,210,783 980,375 704,113
Funds obtained in the open market - - -
Third party portfolio - - -
Funds from securities issued or accepted 110,828 128,400 83,940
Agribusiness Letters of Credit, Real Estate Notes & Bank Notes 110,828 128,400 83,940
Loan obligations - - -
Domestic loans - - - Foreign loans - - -
Onlending operations - Governmental Bureaus 33,199 40,553 102,694
Federal Treasure 3,741 3,628 6,065
BNDES 6,454 8,385 46,433
FINAME 22,814 28,350 50,006
Other Institutions 190 190 190
Other liabilities 53,905 52,488 50,273
Taxes and social security contributions 36,161 35,284 33,683 Derivative financial instrument 15 1,430 611
Sundry 17,729 15,774 15,979 Future results 2,312 2,580 3,647 Shareholders' Equity 591,158 527,476 676,569 Capital 849,843 769,843 769,843 Capital Reserve 33,259 32,323 31,123 Revaluation reserve - - - Profit reserve - - - (-) Treasury stock (4,283) (4,283) (4,283)
Asset valuation Adjustment (83) (229) (139) Accumulated Profit / (Loss) (288,098) (270,701) (120,609) Minority Interest 520 523 634
R$ thousand
INCOME STATEMENT CONSOLIDATED 4T15 3T15 4T14 2015 2014
Income from Financial Intermediation 118,893 205,581 187,227 598,388 639,543
Loan operations 53,232 72,743 96,747 310,060 361,086 Income from securities 46,658 140,963 64,447 236,384 208,463 Income from derivative financial instruments 17,477 (66,830) (11,775) (74,398) (25,416) Income from foreign exchange transactions 1,526 58,705 37,808 126,342 95,410
Expenses from Financial Intermediaton (99,967) (217,774) (155,105) (761,934) (515,649)
Money market funding (96,701) (119,166) (118,680) (456,530) (411,330) Loans, assignments and onlendings (2,568) (21,360) (16,534) (62,056) (62,008) Sales operations/transfer of financial assets (8,381) (10,197) (8,438) (55,143) (32,658) Allowance for loan losses 7,683 (67,051) (11,453) (188,205) (9,653)
Gross Profit from Financial Instruments 18,926 (12,193) 32,122 (163,546) 123,894
Other Operating Income (Expense) (34,732) (24,974) (31,803) (117,161) (132,339)
Income from services rendered 16,438 17,077 17,248 58,554 66,043 Income from tariffs 266 249 265 985 846 Personnel expenses (20,945) (21,827) (26,673) (91,560) (105,814) Other administrative expenses (21,733) (22,639) (24,267) (82,630) (89,732) Taxes (2,702) (2,065) (3,803) (10,697) (15,511) Resultado de participações em coligadasEquity in results of subsidiaries 1,130 1,274 2,987 4,311 9,133
Other operating income 15,643 6,486 52,695 54,734 119,003 Other operating expense (22,829) (3,529) (50,255) (50,858) (116,307)
Operating Profit (15,806) (37,167) 319 (280,707) (8,445)
Non-Operating Profit (3,250) (1,417) 884 (10,975) 7,047
Earnings before taxes and profit-sharing (19,056) (38,584) 1,203 (291,682) (1,398)
Income tax and social contribution 4,359 29,119 3,279 130,420 6,307
Income tax 1,490 (2,836) 1,783 516 1,578 Social contribution 944 (1,643) 1,269 464 1,143 Deferred fiscal assets 1,925 33,598 227 129,440 3,586
Statutory Contributions & Profit Sharing (2,702) (2,313) (2,477) (9,339) (10,064)
Net Profit for the Period (17,399) (11,778) 2,005 (170,601) (5,155)
