Financial Statements Banco Sofisa SA and Subsidiaries

Transcription

Financial Statements
Banco Sofisa S.A. and
Subsidiaries
December 31, 2011 and 2010 with Independent
auditor's report
Banco Sofisa S.A. and Subsidiaries
December 31, 2011 and 2010
Contents
Independent auditor's report on financial statements............................................ 1
Audited Financial Statements
Balance sheets ....................................................................................................
Statements of income ..........................................................................................
Statements of changes in shareholders’ equity ...................................................
Statements of cash flows ......................................................................................
Statements of value added ...................................................................................
Notes to the financial statements ..........................................................................
3
6
7
9
10
11
Condomínio São Luiz
Av. Pres. Juscelino Kubitschek, 1830
Torre I - 8º Andar - Itaim Bibi
04543-900 - São Paulo, SP, Brasil
Tel: (5511) 2573-3000
Fax: (5511) 2573-5780
www.ey.com.br
A free translation from Portuguese into English of Independent Auditor’s Report on financial
statements prepared in accordance with accounting practices adopted in Brazil, applicable
to institutions authorized to operate by Central Bank of Brazil
Independent auditor´s report on financial statements
The
Shareholders, Board of Directors and Officers
Banco Sofisa S.A.
We have audited the accompanying individual financial statements of Banco Sofisa S.A. (“Bank”)
and the consolidated financial statements of Banco Sofisa S.A. and subsidiaries (“Consolidated”),
which comprise the balance sheets as of December 31, 2011, and the statements of income,
changes in shareholders’ equity and cash flows for the year then ended, and a summary of
significant accounting practices and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting practices adopted in Brazil applicable to institutions authorized to
operate by the Central Bank of Brazil (BACEN), and for such internal controls as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Independent auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Brazilian and International standards on auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers the internal control
relevant to the preparation and fair presentation of the Bank’s and Consolidated financial
statements in order to plan audit procedures that are appropriate in the circumstances, but not to
express an opinion on the effectiveness of the Bank’s and Consolidated internal controls. An audit
also includes evaluating the appropriateness of accounting practices used and the reasonableness
of
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
1
Uma empresa-membro da Ernst & Young Global Limited
Opinion
In our opinion, the individual and consolidated financial statements referred to above present fairly,
in all material respects, the financial position of Banco Sofisa S.A. and Banco Sofisa S.A. and
Subsidiaries at December 31, 2011, and its financial performance and cash flows for the year then
ended, in accordance with accounting practices adopted in Brazil applicable to financial institutions
authorized to operate by the Central Bank of Brazil.
Emphasis of matter
As mentioned in note 13 (b), the Bank's Management is analyzing the accounting treatment to be
applied to income tax credits in the amount of R$ 67,811 thousand, recorded at December 31,
2011.
Other matters
Statements of value added
We have also examined the individual and consolidated statements of value added (SVA) for the
year ended December 31, 2011, which is required by the Brazilian Corporation Law. The document
was prepared under the responsibility of Management. The financial statements herein have been
submitted to the same audit procedures previously described and, in our opinion are adequately
presented, in all material aspects, regarding the financial statements taken as a whole.
São Paulo, March 5, 2012.
ERNST & YOUNG TERCO
Auditores Independentes S.S.
CRC-2SP015199/O-6
Eduardo Braga Perdigão
Accountant CRC- 1CE013803/O-8 “S”-SP
2
A free translation from Portuguese into English of financial statements prepared in accordance with
accounting practices adopted in Brazil applicable to institutions authorized to operate by Central Bank
of Brazil
Balance sheets
(In thousands of reais)
Sofisa Consolidated
12/31/2011
12/31/2010
Assets
Current assets
Cash and banks
Short-term interbank investments
Funds obtained in open market (Note 6a)
Investment in interbank deposits (Note 6b)
Investment in foreign currencies (Note 6c)
Marketable securities and derivatives financial
instruments (Note 7)
Own portfolio
Derivative financial instruments
Linked to guarantees provided
Interbank relations (Note 8)
Linked credits
Deposits in the Central Bank of Brazil
Correspondent banks
Credit operations
Credit operations (Note 9)
Public sector
Private sector
Allowance for loan losses (Note 10)
Leasing operations
Receivable loans and subloans (Note 9)
Private sector
Other credits
Foreign exchange portfolio (Note 11)
Income receivable
Securities trading
Sundry (Note 13)
Other assets (Note 14)
Foreclosed assets
Prepaid expenses
3
Banco Sofisa
12/31/2011
12/31/2010
2,887,542
47,431
765,801
681,880
58,405
25,516
2,104,299
29,517
128,003
20,005
100,815
7,183
2,756,455
22,120
765,801
681,880
58,405
25,516
1,949,243
18,888
128,003
20,005
100,815
7,183
224,930
180,708
44,106
116
14,075
128,901
111,470
8,470
8,961
38,793
206,900
162,678
44,106
116
14,075
75,745
58,315
8,469
8,961
38,793
13,905
170
1,428,058
38,663
130
1,412,880
13,905
170
1,429,847
38,663
130
1,395,020
33,432
1,504,874
(110,248)
66,082
40,453
1,488,944
(116,517)
99,112
33,432
1,505,264
(108,849)
66,082
40,453
1,467,176
(112,609)
99,112
74,141
(8,059)
264,392
77,996
1,002
744
186,002
(1,352)
76,773
66,164
10,609
114,811
(15,699)
181,986
25,733
4,493
7,829
144,334
(403)
85,107
73,747
11,360
74,141
(8,059)
208,116
77,996
1,002
744
129,726
(1,352)
43,514
35,462
8,052
114,811
(15,699)
138,862
25,733
3,383
4,113
106,036
(403)
54,820
43,526
11,294
Long-term receivables
Investment in interbank deposits (Note 6b)
Marketable securities and derivative financial instruments
(Note 7)
Own portfolio
Linked to repurchase agreement
Derivatives financial instruments
Linked to guarantees provided
Credit operations
Public sector
Private sector
Leasing operations
Receivable loans and sub-loans (Note 9)
Private sector
Other credits
Income receivable
Sundry (Note 13)
Other assets (Note 14)
Prepaid expenses
Permanent
Investments
Investment in subsidiaries
In Brazil
Abroad
Other investments
Other investments
Allowance for losses
Property and equipment in use (Note 15)
Property in use
Construction in progress
Other property and equipment in use
Accumulated depreciation
Deferred
Organization and expansion expenses
Accumulated amortization
Intangible assets
Intangible assets
Total assets
4
Sofisa Consolidated
12/31/2011
12/31/2010
1,242,806
2,198,603
8,698
2,967
8,698
2,967
Banco Sofisa
12/31/2011
12/31/2010
1,213,242
2,126,881
8,698
56,872
8,698
56,872
598,958
497,583
10,976
27,693
62,706
394,293
1,163,927
1,026,222
45,460
14,254
77,991
693,231
584,554
493,347
10,976
17,525
62,706
392,742
1,063,614
940,046
45,460
117
77,991
683,202
8,568
385,725
36,015
18,337
674,894
90,823
8,568
384,174
36,015
18,337
664,865
90,823
36,015
194,942
5,361
189,581
9,900
9,900
101.873
42,522
41,614
41,614
908
958
(50)
49,977
51,051
489
13,046
(14,609)
3,241
9,390
(6,149)
6,133
6,133
90,823
221,455
3,555
217,900
26,200
26,200
70,801
6,825
2,636
2,636
4,189
4,240
(51)
54,163
53,143
520
12,565
(12,065)
4,260
9,535
(5,275)
5,553
5,553
36,015
181,314
5,361
175,953
9,919
9,919
448,916
432,691
431,784
384,795
46,989
907
956
(49)
6,976
3,286
85
10,319
(6,714)
3,116
9,210
(6,094)
6,133
6,133
90,823
206,229
3,555
202,674
26,141
26,141
382,587
366,071
365,164
324,047
41,117
907
956
(49)
6,959
3,286
169
9,294
(5,790)
4,004
9,210
(5,206)
5,553
5,553
4,232,221
4,373,703
4,418,613
4,458,711
Liabilities
Current
Deposits (Note 16)
Demand deposits
Interbank deposits
Time deposits
Deposits for investments
Funds obtained in open market (Note 17)
Own portfolio
Foreign exchange funding (Note 16)
Funds from housing notes, mortgage credits and other
Interbank and interbranch accounts
Receivables and payments to settle
Third party funds in transit
Loan obligations
Local borrowing (Note 18a)
Foreign borrowing (Note 18a)
Local Loan obligations – Official institutions
Onlending obligations - BNDES (Note 18b)
Onlending obligations – FINAME (Note 18c)
Foreign onlending
Foreign onlendings (Note 18d)
Derivative financial instruments (Note 7d)
Swap – Difference payable
Future market
Options' premium
Other obligations
Collection and transfer of taxes and levies
Foreign exchange portfolio (Note 11)
Social and statutory
Tax and social security (Note 19)
Securities trading (Note 20)
Sundry (Note 21)
Long-term liabilities
Deposits (Note 16)
Interbank deposits
Time deposits
Foreign exchange funding (Note 16)
Funds from housing notes, mortgage credits and other
Loan obligations (Local) - Official institutions
Onlending obligations - BNDES (Note 18b)
Onlending obligations – FINAME (Note 18c)
Foreign onlending
Foreign onlendings (Note 18d)
Derivative financial instruments (Note 7d)
Swap – Difference payable
Other obligations
Tax and social security (Note 19)
Sundry (Note 21)
Future income
Shareholders’ equity (Note 22)
Capital: From local residents
Capital reserve
Revaluation reserve
Profit reserve
Equity evaluation
Total Liabilities and shareholders’ equity
See accompanying notes.
5
Sofisa Consolidated
12/31/2011
12/31/2010
1,478,609
1,853,167
799,385
1,209,862
70,899
124,674
4,081
28,032
724,405
1,057,114
42
11,254
45,149
11,254
45,149
37,750
19,419
37,750
19,419
2
80
11
2
69
195,441
211,625
7,391
188,050
211,625
22,164
40,152
9,021
22,791
13,143
17,361
138,177
20,523
138,177
20,523
4,745
7,810
4,745
7,249
560
1
269,691
298,547
317
621
19,232
1,882
7,354
7,906
91,846
96,817
40
2,270
150,902
189,051
1,955,498
1,749,506
1,559,999
1,120,016
19,665
16,197
1,540,334
1,103,819
3,079
3,079
7,931
29,093
1,018
10,005
6,913
19,088
247,495
361,938
247,495
361,938
11,599
30,511
11,599
30,511
125,395
207,948
91,827
118,789
33,568
89,159
34,989
160
763,125
770,870
685,700
685,700
864
864
995
1,022
77,348
90,204
(1,782)
(6,920)
4,232,221
4,373,703
Banco Sofisa
12/31/2011
12/31/2010
1,609,691
1,895,188
941,805
1,292,401
73,462
127,077
79,221
32,633
789,122
1,132,649
42
11,254
45,149
11,254
45,149
37,750
19,419
37,750
19,419
2
80
11
2
69
190,461
211,625
190,461
211,625
22,164
40,152
9,021
22,791
13,143
17,361
138,177
20,523
138,177
20,523
4,745
7,249
4,745
7,249
263,333
258,590
317
621
19,232
1,882
7,354
7,906
82,483
83,168
40
2,270
153,907
162,743
2,043,608
1,792,526
1,654,918
1,178,171
19,665
16,197
1,635,253
1,161,974
3,079
3,079
7,931
29,093
1,018
10,005
6,913
19,088
247,495
361,938
247,495
361,938
11,599
30,511
11,599
30,511
118,586
192,813
91,827
118,789
26,759
74,024
811
127
764,503
770,870
685,700
685,700
864
864
995
1,022
78,726
90,204
(1,782)
(6,920)
4,418,613
4,458,711
Statements of income
Six-month period ended December 31, 2011 and
Years ended December 31, 2011 and 2010
(In thousands of reais, except earnings per share)
Interest income
Leasing operations (Note 24)
Profit on marketable securities (Note 25)
Foreign exchange transaction (Note 11)
Disposal or transfer of assets
Interest expense
Sofisa Consolidated
2011
2nd Half
Year
506,307
866,494
208,211
394,072
142,068
243,447
100,412
174,391
32,216
4,837
21,899
44,841
1,501
4,906
2010
Year
926,462
478,261
283,864
166,806
(28,866)
20,416
5,981
Banco Sofisa
2011
2nd Half
Year
471,753
860,697
175,762
357,537
142,068
243,447
107,174
182,197
23,349
(2,532)
21,899
44,792
1,501
35,256
2010
Year
898,132
456,626
283,864
148,955
(18,028)
20,734
5,981
(412,549)
(684,971)
(677,366)
(425,641)
(700,552)
(685,116)
(144,786)
(115,724)
(119,624)
(4,716)
(27,699)
(288,773)
(133,169)
(210,825)
(13,021)
(39,183)
(254,327)
(56,950)
(215,670)
(49,321)
(101,098)
(155,626)
(115,724)
(119,624)
(4,716)
(29,951)
(306,144)
(133,169)
(210,825)
(13,021)
(37,393)
(266,231)
(56,950)
(215,670)
(49,321)
(96,944)
93,758
181,523
249,096
46,112
160,145
213,016
(77,373)
(164,280)
(130,443)
(56,160)
(148,423)
(120,266)
5,510
(33,377)
(39,750)
(10,858)
11,472
9,357
(19,727)
-
12,711
(66,113)
(72,115)
(24,620)
9,322
12,216
(39,018)
3,337
26,554
(68,305)
(67,588)
(32,622)
(1,016)
11,375
(68,245)
69,404
5,252
(32,794)
(41,851)
(9,976)
30,870
5,408
(13,069)
-
9,764
(64,207)
(74,074)
(22,268)
36,120
6,624
(38,611)
(1,771)
8,820
(54,606)
(63,763)
(26,454)
43,351
2,900
(59,719)
29,205
16,385
17,243
118,653
(10,048)
11,722
92,750
(14,290)
(5,186)
(26,362)
(14,093)
(8,564)
(21,438)
Income before income and social contribution
taxes and profit sharing
2,095
12,057
92,291
(24,141)
3,158
71,312
Income and social contribution taxes (Note 12)
17,571
25,458
(5,337)
31,501
35,735
15,009
11,830
5,741
14,904
10,554
(19,794)
14,457
16,236
15,265
23,813
11,922
(7,862)
22,871
Profit sharing - Employees
(5,787)
(10,340)
(10,923)
(5,787)
(10,340)
(10,290)
Net income for the period
13,879
27,175
76,031
1,573
28,553
76,031
Funds obtained in the market (Note 26)
Loan, credit and onlending operations
Leasing operations (Note 27)
Disposal or transfer of assets
Gross interest income
Operating revenue/(expenses)
Income from services rendered
Personnel expenses (Note 28)
Other administrative expenses (Note 30)
Tax expenses (Note 31)
Income from investments in subsidiaries
Other operating revenues (Note 32)
Other operating expenses (Note 33)
Other extraordinary income (Note 32)
Operating income
Non-operating income
Income and social contribution taxes
Deferred tax assets
6
Individual statements of changes in shareholders’ equity
Six-month period ended December 31,2011 and years ended December 31, 2011 and 2010
Opening balances at July 1, 2011
Equity adjustments - Securities available for sale
Equity adjustments - Hedge Derivatives
Other events:
- Realization of revaluation reserve of P&E in use
Net income for the year
Allocations:
Appropriation of legal reserve
Reserve for expansion
Interest on equity
Balances at December 31, 2011
Capital
stock
685,700
685,700
Capital
reserve
864
864
Revaluation
reserve
1,009
(14)
(14)
995
Legal
24,463
95
95
24,558
Profit reserve
Expansion
20,706
(18,073)
(18,073)
2,633
Statutory
51,597
(62)
(62)
51,535
Adjustment
of equity evaluations
Marketable securities
and derivatives
(4,221)
2,439
(1,782)
Accumulated
profits
611
14
14
1,573
(2,198)
(95)
18,135
(20,238)
-
Total
780,118
2,439
611
1,573
(20,238)
(20,238)
764,503
Opening balances at January 1, 2011
Prior year adjustments
Equity adjustments – Securities available for sale
Other events:
Allocations:
Interest on equity
685,700
685,700
864
864
1,022
(27)
(27)
995
23,130
1,428
1,428
24,558
15,477
(12,844)
(12,844)
2,633
51,597
(62)
(62)
51,535
(6,920)
5,138
(1,782)
(1,731)
611
27
27
28,553
(27,460)
(1,428)
12,906
(38,938)
-
770,870
(1,731)
5,749
28,553
(38,938)
(38,938)
764,503
Opening balance at July 1, 2010
Other events:
Capital increase
Net P&L for the six-month period
Allocations:
Interest on equity
685,690
10
-
864
-
1,035
(13)
(13)
-
21,189
1,941
1,941
-
3,870
11,607
11,607
-
44,667
6,930
6,930
-
2,464
(9,384)
-
13
13
38,815
(38,828)
(1,941)
(18,537)
(18,350)
759,779
(9,384)
10
38,815
(18,350)
(18,350)
685,700
864
1,022
23,130
15,477
51,597
(6,920)
-
770,870
685,690
787
1,049
19,329
3,870
51,597
444
-
762,766
10
-
77
-
(27)
(27)
-
3,801
3,801
-
11,607
11,607
-
-
(7,364)
-
27
27
76,031
(76,058)
(3,801)
(11,607)
(60,650)
77
(7,364)
10
76,031
(60,650)
(60,650)
685,700
864
1,022
23,130
15,477
51,597
(6,920)
-
770,870
Equity adjustments
Other events:
Capital increase
Allocations:
Interest on equity
7
Consolidated statements of changes in shareholders’ equity
Six-month period ended December 31,2011 and years ended December 31, 2011 and 2010
Adjustment
of equity evaluations
securities and
and derivatives
Accumulated
profits
Total
51,597
(62)
(62)
51,535
(4,221)
2,439
(1,782)
611
14
14
13,879
(14,504)
(95)
5,829
(20,238)
-
766,434
2,439
611
13,879
(20,238)
(20,238)
763,125
15,477
(14,222)
(14,222)
1,255
51,597
(62)
(62)
51,535
(6,920)
5,138
(1,782)
(1,731)
611
27
27
27,175
(26,082)
(1,428)
14,284
(38,938)
-
770,870
(1,731)
5,749
27,175
(38,938)
(38,938)
763,125
21,189
1,941
3,870
11,607
44,667
6,930
2,464
(9,384)
-
13
13
38,815
(38,828)
759,779
(9,384)
10
38,815
(18,350)
1,022
1,941
23,130
11,607
15,477
6,930
51,597
(6,920)
(1,941)
(18,537)
(18,350)
-
(18,350)
770,870
787
77
-
1,049
(27)
(27)
-
19,329
3,801
3,801
-
3,870
11,607
11,607
-
51,597
-
444
(7,364)
-
27
27
76,031
(76,058)
(3,801)
(11,607)
(60,650)
762,766
77
(7,364)
10
76,031
(60,650)
(60,650)
864
1,022
23,130
15,477
51,597
(6,920)
-
770,870
Capital
stock
Capital
reserve
Revaluation
reserve
Legal
Equity adjustments – Hedge derivatives
Other events:
Allocations:
Interest on equity
685,700
685,700
864
864
1,009
(14)
(14)
995
24,463
95
95
24,558
7,022
(5,767)
(5,767)
1,255
Prior year adjustments
Equity pickup adjustments - Hedge Derivatives
Other events:
Allocations:
Appropriation for legal reserve
Interest on equity
685,700
685,700
864
864
1,022
(27)
(27)
995
23,130
1,428
1,428
24,558
Other events:
Capital increase
Net P&L for the six-month period
Allocations:
685,690
10
-
864
-
1,035
(13)
(13)
-
Interest on equity
685,700
864
Restatement of stock exchange seats
Other events:
-Realization of revaluation reserve of P&E in use
Capital increase
Allocations:
Interest on equity
685,690
10
-
685,700
8
Profit reserve
For expansion
Statutory
Statements of cash flows
Net adjusted Income
Net P&L for the period
Allowance for loan losses
Depreciations and amortizations
Interest in subsidiaries
Variation in assets and liabilities
(Increase) Short-term interbank investments
(Increase)Decrease in derivative Marketable securities and financial instruments
(Increase)Reduction in Interdepartmental and interbank accounts
(Increase)Reduction in credit and leasing operations
(Increase)Reduction in other credits and other assets
(Reduction) Increase in other liabilities
(Reduction) Increase in future income
OPERATING ACTIVITIES - Net cash from (used in) operations
Disposal of property and equipment in use
Investments
Property and equipment in use
Intangible assets
INVESTMENT ACTIVITIES – Net Cash Used in
Sofisa Consolidated
2011
2nd Half
Year
32,275
61,459
13,879
27,175
27,699
39,183
2,169
4,423
(11,472)
(9,322)
(97,276)
9,137
(703,993)
(710,885)
550,185
471,379
14,898
23,456
44,532
332,415
18,939
(31,259)
(33,192)
(110,798)
11,355
34,829
(65,001)
70,596
Banco Sofisa
2010
Year
183,111
76,031
101,098
4,966
1,016
(861,099)
(73,718)
(715,528)
(10,416)
473,291
14,379
(547,040)
(2,067)
(677,988)
2011
2nd Half
1,646
1,573
29,951
992
(30,870)
(157,001)
(434,611)
441,659
14,898
(171,243)
10,074
(18,211)
433
(155,355)
Year
104,136
28,553
37,393
2,070
36,120
(34,738)
(629,730)
350,344
23,640
306,078
(16,881)
(68,873)
684
69,398
2010
Year
131,894
76,031
96,944
2,270
(43,351)
(859,504)
(137,523)
(684,082)
(10,416)
524,017
(1,303)
(549,394)
(803)
(727,610)
265
(30,143)
(530)
(30,408)
6,137
(26,375)
(3,203)
(580)
(24,021)
2,822
(7,090)
(5,440)
(2,321)
(12,029)
264
(29,554)
(430)
(29,720)
2,662
(102,873)
(1,690)
(580)
(102,481)
2,387
(3,712)
(3,057)
(2,321)
(6,703)
Increase (Decrease) in deposits
Increase (decrease) in funds obtained in open market
Increase (Decrease) in foreign exchange funding
Increase (decrease) in borrowings and onlending
Increase (Reduction) in derivative financial instruments (liabilities)
Interest on equity capital paid and/or provisioned
Capital increase
FINANCING ACTIVITIES – Net Cash from (used in) operations
163,932
(22,496)
24,674
(105,866)
(46,996)
(20,238)
(6.990)
29,506
(33,895)
21,410
(52,123)
(21,977)
(38,938)
(96,017)
309,233
31,427
(25,521)
(77,478)
267
(60,650)
10
177,288
243,569
(22,496)
24,674
(110,846)
(46,940)
(20,238)
67,723
126,151
(33,895)
21,410
(57,103)
(21,416)
(38,938)
(3,791)
250,149
31,891
(25,521)
(77,478)
(240)
(60,650)
10
118,161
INCREASE (REDUCTION) in cash and cash equivalents
(102,399)
(49,442)
(512,729)
(117,352)
(36,874)
(616,152)
154,051
51,652
101,094
51,652
613,823
101,094
143,693
26,341
63,215
26,341
679,367
63,215
(102,399)
(49,442)
(512,729)
(117,352)
(36,874)
(616,152)
Beginning of the period
End of the period
INCREASE (REDUCTION) in cash and cash equivalents
9
Statements of value added
Sofisa Consolidated
2011
2nd Half
Banco Sofisa
2010
Year
2011
Year
2nd Half
2010
Year
Year
Revenues
484,118
840,022
851,918
447,054
833,068
810,008
Trading expenses
506,307
866,494
926,462
471,753
860,697
898,132
5,510
12,711
26,554
5,252
9,764
8,820
(27,699)
(39,183)
(101,098)
(29,951)
(37,393)
(96,944)
(384,850)
(645,788)
(576,268)
(395,690)
(663,159)
(588,172)
(61,190)
(93,710)
(89,289)
(56,915)
(102,947)
(94,399)
Materials, energy and others
(8,625)
(13,879)
(861)
(8,285)
(11,634)
(3,278)
Third-party services
(6,649)
(12,923)
(7,352)
(6,529)
(12,423)
(5,865)
(45,916)
(66,908)
(81,076)
(42,101)
(78,890)
(85,256)
Gross added value
38,078
100,524
186,361
(5,551)
66,962
127,437
Withholding
(2,169)
(4,423)
(4,966)
(992)
(2,070)
(2,270)
Depreciation and amortization
(2,169)
(4,423)
(4,966)
(992)
(2,070)
(2,270)
Net value added produced by entity
35,909
96,101
181,395
(6,543)
64,892
125,167
Added value Received in Transfer
11,472
9,322
(1,016)
30,870
36,120
43,351
Equity pickup
11,472
9,322
(1,016)
30,870
36,120
43,351
Total added value to be distributed
47,381
105,423
180,379
24,327
101,012
168,518
Distribution of value added
47,381
105,423
180,379
24,327
101,012
168,518
Personnel
39,163
76,452
68,305
38,580
74,546
54,606
Direct remuneration
19,604
41,479
41,724
19,241
40,029
32,969
Benefits
3,368
6,902
7,569
3,274
6,706
5,405
Unemployment Compensation Fund (FGTS)
7,506
14,833
4,014
7,380
14,573
3,384
Other
8,685
13,238
14,998
8,685
13,238
12,848
Rendering of services
Interest trading expenses
Input acquired from third parties
Other
Taxes, fees and contributions
(6,578)
(703)
32,622
(21,525)
(13,467)
26,454
Federal
(8,567)
(5,102)
29,313
(23,503)
(17,744)
23,941
910
2,058
331
908
2,051
323
1,079
2,341
2,978
1,070
2,226
2,190
Remuneration of third-party capital
917
2,499
3,421
5,699
11,380
11,427
Rent
917
2,499
3,421
5,699
11,380
11,427
Remuneration from own capital
13,879
27,175
76,031
1,573
28,553
76,031
Interest on equity
20,238
38,938
60,650
20,238
38,938
60,650
Withholding P&L
(6,359)
(11,763)
15,381
(18,665)
(10,385)
15,381
State
Municipal
10
Notes to financial statements
1. Operations
Banco Sofisa S.A. (Sofisa or Banco), is a publicly-held Company that, together with its
subsidiary companies, operates as an All Purpose Bank through its commercial, credit,
financing and investment, foreign exchange and commercial leasing portfolios.
2. Preparation and presentation of the financial statements
These financial statements were prepared and presented in accordance with the
accounting practices adopted in Brazil, which comprised the provisions contained in the
Brazilian Corporation Law, in addition to rules set forth by the Brazilian Monetary Council
(CMN), Brazilian SEC (CVM) and the Central Bank of Brazil (BACEN). The accounting
pronouncements, guidance and interpretations issued by the Brazilian FASB (CPC) were
adopted for disclosure purposes and approved by regulatory organs related to the
convergence process into international accounting standards pursuant to rules set forth
by the Brazilian Monetary Council (CMN) and the Central Bank of Brazil (BACEN).
The consolidated financial statements of Sofisa fully comply with the financial information
of its branch established abroad, and subsidiaries (additional information on subsidiaries
in Note 36) established in Brazil and abroad, comprising the following:
Direct subsidiaries
Sofisa S/A. – Crédito, Financiamento e Investimento
Sata Sociedade Assessoria Técnica Administrativa S/A
Sofisa Investment Ltd
Sofisa Serviços Gerais Administração Ltda
Sofisa Corretora de Seguros Ltda
La Isla Participações e Empreendimentos Imobiliários Ltda
% Interest
100.00
100.00
100.00
99.99
99.99
74.30
Indirect subsidiaries
Sata Veículos Ltda
Sata Participações Ltda
Eco Beach Empreendimentos Imobiliários Ltda
SPE Premium 1 Empreendimentos Imobiliários Ltda
La Isla Participações e Empreendimentos Imobiliários Ltda
100.00
100.00
90.00
51.00
51.00
52.00
50.00
25.70
In the period ended December 31, 2011, income from credit assignments without
guarantee was fully eliminated and recognized on a pro-rata basis.
The reconciliation of net equity and net income between individual and consolidated
financial information is presented as follows:
11
Notes to financial statements (Continued)
2. Preparation and presentation of the financial statements (Continued)
12/31/2011
Bank
Net
Net
equity
income
764,503
28,553
(4,786)
(4,786)
2,490
2,490
918
763,125
918
27,175
Effects from the elimination of income from credit assignments
to Sofisa CFI consolidated: Income from assignment of net
credits from deductions due to advance settlement
and appropriation of income
Reversal of commission expenses on credit
assigned net of the appropriation of the period
Elimination of tax effect adjustments
Consolidated
During the consolidation process, the existing outstanding balances of consolidated
companies were eliminated and the portion of net income and equity related to minority
investments is subsidiaries were disclosed separately. The accounting practices adopted
were consistently applied by both the Bank and companies included in the consolidation
process in the record of operations and equity evaluation.
Considering the Real as Sofisa’s functional currency, which corresponds to the same
currency used in the preparation and presentation of the financial statements, and that
operations with our branch and subsidiary abroad represent a complement of activities in
the country, the assets, liabilities and P&L will be adjusted to the Brazilian accounting
practices and translated to Reais in accordance with the local foreign exchange. The
results arising from this translation will be recorded under the respective P&L for the
period.
Exchange variation calculated on foreign investments was not eliminated from the
consolidation process and is recorded in the income statement as “Result of investment
in subsidiaries”.
The financial statements include estimates and assumptions, such as the measurement
of allowances for loan losses, fair value estimates of some financial instruments and
provision for contingencies. Effective results can differ from those estimates and
assumptions.
3. Summary of significant accounting practices
a.
Cash flow statements
For purposes of cash flow statements (pursuant to CMN Rule No. 3604/08), cash and
cash equivalents correspond to the balances of cash and short-term interbank
investments redeemable within 90 days.
12
3. Summary of significant accounting practices (Continued)
b.
The investments are recorded at investment or acquisition cost, plus income calculated
up to the balance sheet date.
c.
Based on Circular No. 3068/2001 issued by the Central Bank of Brazil (BACEN), marketable
securities shall be stated and classified as follows:
· Trading: consist of securities acquired for active and frequent trading, which are carried at
market value and recorded in the respective P&L;
· Available for sale: securities not classified under the category of available for sale or held to
maturity and will be recorded marked-to-market under a specific equity account, net of tax
effects;
· Held to maturity: those for which the Bank has the intention and the ability to hold to maturity.
Assessed at acquisition cost, plus yields calculated and posted to P&L for the period.
d.
Derivatives financial instruments (assets and liabilities)
Derivatives financial instruments, comprised of futures, forwards and swaps are recorded
according to the following criteria:
futures – the daily adjustment is accounted for as revenue or expense in the heading asset or
liability accounts on a daily basis.
forwards – at the value agreed upon the contract thereof, deducted from the difference between
the aforesaid value and the market price of the asset or right there from, recognizing income and
expenses in the contract period through the balance sheet date.
Swaps – the difference between the receivable or payable amount is recorded in asset or liability
accounts respectively and, allocated to income or expenses on a pro rata basis through the
balance sheet date.
Non-hedge derivatives instruments are measured at market value on the balance sheet date,
accounting for the appreciation or depreciation thereon, as follows:
· Non-hedge derivatives instruments – recorded under income or expense account in the P&L
for the period;
· Hedge derivatives instruments – classified as market risk hedge and cash flow hedge.
The hedge derivatives instruments and the respective hedge underlying object should be carried
at market value, at least as per monthly balance trial balance and balance sheets.
13
d.
Derivatives financial instruments (assets and liabilities)--Continued
The market risk hedge is allocated to offset risks arising from the exposure to market value
variation of the hedge underlying object. Its appreciation or depreciation should be stated under
the adequate income or expense account, in P&L for the period.
The cash flow hedges are allocated in order to offset the future estimated cash flow variation. The
appreciation or depreciation thereon should be recorded against a specific account in equity, net
of tax effects. The non-effective hedge, when applicable, is recognized directly in the P&L for the
period.
e.
Credit and leasing operations, time deposits, interbank deposits and other asset and liability operations
Pre-fixed operations are recorded at principal value plus charges and interest earned and ratified
by the corresponding account of income and expenses to be accounted for. Post fixed
operations are recorded at principal amount, plus interest earned or charges incurred, observing
the “pro-rata daily rate”.
Lease operations, calculated at fair value, were recorded in the balance sheet, under the heading
lease operations, based on the net value of obligations by anticipating the residual amount.
f.
Operations with financial assets - operations involving assumption of substantial risks and rewards
Sale transactions and transfer of financial assets which pose substantial risks as well as rewards
of the financial underlying asset are being recorded and disclosed as follows:
a)
Practice adopted before enactment of Rule No. 3809/09
i) Financial assets for sale or transfer are totally included in assets;
ii) Amounts received or receivable were recorded in assets as a matching entry of liability
account of assumed obligations;
iii) Income and expenses were accounted for on a monthly basis in the P&L for the period,
based on the remaining term of operations pursuant to the contractual rates agreed upon.
b)
Practice adopted after enactment of Rule No. 3809/09
i) Financial assets for sale or transfer are fully written-off of assets;
ii) Amounts received or receivable are accounted for in assets, as a matching entry of P&L
and, the amount referring to risks assumed will be recorded in a memorandum account,
not being included in the balance sheet;
iii) Income and expenses are accounted for on the date of transaction.
The accounting practice described in item (a) is in line with Rule No. 3533/08, effective as from
2011, and its early adoption was authorized by Rule No. 3673/08, both of the Central Bank of
Brazil (BACEN). Subsequently, Rule No. 3,809/09 was issued, which prohibited early adoption of
Rule No. 3533/08.
14
g.
Credit, leasing, advances on foreign exchange contracts and other credit operations with
underwriting requirements are classified under the corresponding risk levels, considering the
following: (i) provisions set forth by Rule No. 2682 of the Brazilian Monetary Council (CMN)
require that the classification be made under nine levels, ranging from “AA” (minimum risk) to “H”
(maximum risk); (ii) risk levels are assessed by the Bank´s management on a regular basis,
considering the economic outlook, past experience and both specific and global risks related to
the operations therein. In addition, the definition of clients’ risk levels will also consider late
payment periods established in the aforesaid Rule, as well as the double counting for operations
with a deadline above 36 months.
Operations overdue for more than 59 days, regardless of risk levels, will only be recognized as
revenue upon the effective receipt. Level “H” operations will still be classified as such for 6
months, when they will be written-off of existing provisions and controlled in memorandum
account and thereby no longer included in the balance sheet.
Renegotiated operations will remain at least in the same level of the previous classification
thereof. The renegotiation of operations previously written-off of provisions and that were
accounted for in memorandum accounts will be classified as “H”.
h.
Other assets
Assets not for own use: Represented by assets not used in banking transactions received as
payment in cash, initially recorded at cost and adjusted by provision for impairment, if applicable.
Prepaid expenses: correspond to prepaid expenses, and rights to benefits or service
agreements thereon will be carried out in future periods, which will be mainly represented by an
agent committee in the placement of insurance expenses and financing. Upon the assignment of
rights or benefits, the corresponding commissions are promptly recognized in the respective P&L.
i.
Investments
Investments in subsidiaries are accounted for under the equity method, and other investments at
historical cost.
j.
Fixed assets and deferred charges
Fixed assets and deferred charges will be accounted for at acquisition cost. Depreciation and
amortization are calculated under the straight-line method at annual rates of the corresponding
assets, as described in Note 15. The balances existing in the deferred assets, constituted before
the effectiveness of Rule 3617/08 of BACEN, will be held until those are effectively written-off.
k.
Intangible assets
Intangible assets correspond to vested rights in connection with incorporeal assets with the
purpose of maintaining the Bank’s activities. Intangible assets with defined useful life are usually
amortized on a straight line basis over the estimated period of economic benefits.
15
l.
Impairment of non-financial assets
Management annually reviews the net book value of assets with the purpose of assessing events
or changes in the economic, operating or technological circumstances that may identify
impairment or loss of their recoverable amount. When such evidence is identified and the net
book value exceeds the recoverable amount, a provision for impairment is established, adjusting
the net book value to the recoverable amount.
m.
Income and social contribution taxes on net profit
The provisions for corporate income tax (IRPJ) is calculated based on a rate of 15%, plus 10% on
taxable profit exceeding R$240 for the year. The provision for social contribution tax is levied at a
rate of 15% for financing companies and at the rate of 9% for non-financial companies on taxable
income.
Deferred income and social contribution taxes (assets) are calculated on income and social
contribution tax losses and temporary differences. Tax credits are based on current estimates of
realization and on the management’s technical studies and analyses in compliance with Rule No.
3059/02 and No. 3355/06.
n.
Contingent assets and liabilities, and legal obligations
The accounting practices for the recording, measurement and disclosing of contingent assets and
liabilities are determined in accordance with provisions set forth in CVM Ruling No. 489/05 and
Rule No. 3823/09 and Circular No. 3429/10 of BACEN, namely:
· Contingent assets - only recognized in financial statements upon evidence that guarantee their
realization, on which no further appeals can be filed. Only contingent assets with probable
gains will be disclosed in the notes to the financial statements;
· Contingent liabilities are set up when the risk of loss is considered probable and the amounts
involved are measurable with sufficient certainty. Contingent liabilities evaluated as possible
losses are disclosed in the notes to the financial statements, while those rated as remote do
not require any provision or disclosure;
· Legal obligations are recorded as payables, regardless of the likelihood of a favorable
outcome.
o.
Earnings per share
Net earnings per share are calculated in Brazilian Reais based on the number of outstanding
shares as of balance sheet date.
16
4. Cash and cash equivalents
Sofisa Consolidated
12/31/2011
12/31/2010
Banco Sofisa
12/31/2011
12/31/2010
Cash and banks
47,431
4,221
29,517
77,076
22,120
4,221
18,888
77,076
Cash and cash equivalents
51,652
106,593
26,341
95,964
5. Balance sheet consolidated by maturity
Sofisa Consolidated
1 to 30
days
Assets
Cash and banks
Funds obtained in open market
Interbank deposits
Investments in foreign currencies
Marketable securities and derivative financial
instruments
Interbank and interdepartmental accounts
Credit and leasing operations
Other credits
Foreign exchange portfolio
Other
Permanent
Investments
Deferred
Intangible
Total assets
31 to 180
days
12/31/2011
181 to 360
More than
days
360 days
Undetermined
due date
Total
47,431
756,136
681,880
48,740
25,516
7,496
7,496
-
2,169
2,169
-
8,698
8,698
-
-
47,431
774,499
681,880
67,103
25,516
74,269
14,075
378,700
134,826
38,190
96,636
-
93,874
865,902
37,823
31,391
6,432
-
56,787
250,728
90,958
8,415
82,543
-
598,958
430,308
281,210
281,210
-
101,873
42,522
49,977
3,241
6,133
823,888
14,075
1,925,638
544,817
77,996
466,821
101,873
42,522
49,977
3,241
6,133
1,405,437
1,005,095
400,642
1,319,174
101,873
4,232,221
Liabilities
Deposits
Demand deposits
Interbank deposits
Time deposits
Funds obtained in open market
Funds from acceptance and issues of securities
Borrowings
Onlending
Other obligations
Other
Deferred income
Net Equity
Capital and reserves
161,775
70,899
2,676
88,200
11,254
1,348
2
21,279
2,988
550
180,574
13,228
167,346
-
344,261
589
343,672
26,968
64,539
18,166
2,291
50,203
6,004
44,199
-
293,349
816
292,533
9,434
109,623
139,187
1,904
38,914
38,914
-
1,559,999
19,665
1,540,334
3,079
255,426
11,599
125,395
125,395
34,989
-
763,125
763,125
2,359,384
70,899
23,746
2,264,739
11,254
40,829
2
195,441
415,767
16,344
395,086
19,232
375,854
34,989
763,125
763,125
Total liabilities
379,770
506,428
592,411
1,990,487
763,125
4,232,221
17
6. Short-term interbank investments
a.
Funds obtained in the open market – self-funding position
Sofisa Consolidated and Banco Sofisa
12/31/2011
b.
Financial Treasury Bills - LFT
150,665
National Treasury Bills LTN
322,537
-
National Treasury Notes Series B - NTN-B
208,678
10,002
Total
681,880
20,005
Sofisa Consolidated
Up to 30
Banco Sofisa
12/31/2010
12/31/2011
12/31/2010
19,217
48,740
19,217
48,740
from 31 to 90 days
6,035
33,045
6,035
33,045
from 91 to 180 days
1,461
33,385
1,461
33,385
from 181 to 360 days
2,169
15,168
2,169
15,168
More than 360 days
8,698
2,967
8,698
56,872
67,103
103,782
67,103
157,687
Total
Investment in foreign currencies
12/31/2011
18
10,003
Investment in interbank deposits
12/31/2011
c.
12/31/2010
12/31/2010
Up to 30 days
25,516
7,183
Total
25,516
7,183
7. Marketable securities and derivatives financial instruments
a.
Breakdown by type
Own
Subject to
Sofisa Consolidated
12/31/2011
Derivative
financial
portfolio
repurchase
instruments
National Treasury Notes Series B-NTN - B
National Treasury Bills -LTN
441,928
2,640
10,976
-
Total government bonds
Marketable securities held abroad
Eurobonus
Commodities
Investment funds
Shares
Swap receivable
Term
Total private bonds
444,568
126,569
65,874
6,164
17,688
17,428
233,723
10,976
-
Total
678,291
10,976
Own
Portfolio
Subject to
repurchase
-
Banco Sofisa
12/31/2011
Subject to
guarantee
Total
Total
62,706
-
515,610
2,640
515,610
2,640
32,022
39,777
71,799
62,706
116
116
518,250
126,569
65,874
6,164
17,688
17,544
32,022
39,777
305,638
518,250
122,334
65,874
6,164
9,582
7,620
21,853
39,777
273,204
71,799
62,822
823,888
791,454
Sofisa Consolidated
12/31/2010
Derivative
financial
instruments
Banco Sofisa
12/31/2010
Subject to
guarantee
Total
Total
National Treasury Notes Series B-NTN - B
National Treasury Bills - LTN
271,894
627,817
45,460
-
77,991
-
349,885
673,277
349,885
589,222
Total government bonds / Bilss
Bank Deposit Certificate - CDB
Eurobonus
Commodities
Investment funds
Shares
Option's premium
Swap receivable
899,711
136,532
7,264
55,201
14,338
24,646
-
45,460
-
1
22,723
77,991
8,647
314
-
1,023,162
136,532
7,264
55,201
8,647
14,338
24,960
1
22,723
939,107
108,499
7,271
55,201
8,647
3,613
8,435
8,586
Total private bonds
237,981
22,724
8,961
269,666
200,252
22,724
86,952
1,292,828
1,139,359
Total
19
1,137,692
45,460
(Continued)
b. Breakdown by maturity:
At 12/31/2011
NTN B
LTN
Government Bonds
Eurobonus
Commodities
Investment funds
Shares
Swap receivable
Term
Private securities
Total
Up to
30 days
From 31
to 60 days
17,688
17,544
39,037
74,269
74,269
164
685
849
849
Up to
30 days
At 12/31/2010
NTN B
LTN
Government Bonds
CDB
Eurobonus
Commodities
Investment funds
Shares
Option's premium
Swap receivable
Private securities
Total
20
837
837
7,263
8,647
14,338
24,960
1
55,209
56,046
Sofisa Consolidated
Short term
From 61
From 91
From 181
to 90 days
to 180 days
to 360 days
16,109
5,334
55
21,498
21,498
From 31
to 60 days
1,605
1,605
1,605
71,527
71,527
71,527
2,640
2,640
23,133
20,521
6,164
4,329
54,147
56,787
Sofisa Consolidated
Short term
From 61
From 91
From 181
to 90 days
to 180 days
to 360 days
1,660
2,837
4,497
4,497
19,937
19,937
1,708
1,708
21,645
28,820
7,819
8,469
45,108
45,108
Long term
Over
360 days
Overall
total
2,640
2,640
110,933
25,855
6,164
17,688
17,544
4,329
39,777
222,290
224,930
515,610
515,610
15,636
40,019
27,693
83,348
598,958
515,610
2,640
518,250
126,569
65,874
6,164
17,688
17,544
32,022
39,777
305,638
823,888
Total
Long term
Over
360 days
Overall
total
19,937
837
20,774
32,188
7,263
12,261
8,647
14,338
24,960
1
8,469
108,127
128,901
329,948
672,440
1,002,388
104,344
42,940
14,255
161,539
1,163,927
Total
349,885
673,277
1,023,162
136,532
7,263
55,201
8,647
14,338
24,960
22,724
269,666
1,292,828
(Continued)
c.
Classification of marketable securities
Sofisa Consolidated
Banco Sofisa
Under negotiation
Federal government bonds
Investment funds
Eurobonus
Shares
Commodities (CPRF)
Derivatives
12/31/2011
Curve
Market
Value
Value
17,688
17,688
24,278
23,898
7,620
7,620
6,164
6,164
75,694
71,799
Total
131,444
127,169
103,647
98,480
102,476
98,971
62,258
57,092
2,626
57,704
2,640
56,135
677,528
7,267
29,441
672,440
7,264
28,227
2,626
52,959
2,640
51,899
592,328
7,267
29,441
588,385
7,271
28,227
Available for sale
Federal Government bonds
Private securities - CDB
Eurobonus
Marketable securities held
abroad
12/31/2010
Curve
Market
Value
Value
837
837
14,338
14,335
27,144
26,974
24,960
24,960
8,647
8,647
27,721
22,727
12/31/2011
Curve
Market
Value
Value
9,582
9,582
14,355
13,975
7,620
7,620
6,164
6,164
64,755
61,630
12/31/2010
Curve
Market
Value
Value
837
837
3,613
3,613
27,144
26,974
8,435
8,435
8,647
8,647
13,582
8,586
94,008
93,781
93,395
91,197
94,002
93,781
65,165
63,164
Total
154,338
152,556
807,631
799,128
149,587
148,320
694,201
687,047
Held to maturity
Federal Government bonds
515,611
520,188
349,885
352,591
515,611
520,188
349,885
352,591
Marketable securities held
abroad
Total
28,552
544,163
28,552
548,740
45,335
395,220
45,335
397,926
28,552
544,163
28,552
548,740
45,335
395,220
45,335
397,926
Overall total
829,945
828,465
1,306,498
1,295,534
796,226
796,031
1,151,679
1,142,065
Marketable securities classified as “trading” and “available for sale”, in addition to derivative financial
instruments are disclosed at their estimated fair value (market value). The fair value is usually based
on market price quotations through independent sources or market price quotations for assets or
liabilities with similar characteristics. If the aforesaid market prices are not available, fair values will
be determined by market broker quotations, pricing models, discounted cash flow or similar
techniques, for which the determination of fair value may require significant judgment or estimate
from Management. At December 31, 2011, an adjusted balance was recorded in equity in the
accrued amount of R$ (1,796), (R$ (1,782) net of tax effects), and at December 31, 2010, R$
(8,503), (R$(6,920) net of tax effects) related to securities available for sale.
In compliance with Article 8 of BACEN Circular Letter No. 3,068/01, the Bank has financial capacity
and also intends to hold to maturity the securities classified as held to maturity securities
In the quarter, the Bank sold part of securities classified in this category maturing within up to four
years and acquired new securities held to maturity maturing within up to six years.
21
7. Marketable securities and derivative financial instruments (Continued)
d.
Derivatives
The Bank carries out derivatives operations in order to hedge against market price variations as
well as mitigate currency and interest rate risks facing its assets and liabilities and cash flows,
under contracts with compatible terms, fees and amounts
Derivatives are used as a risk management tool in order to hedge the Banking Book and Trading
Book positions. Additionally, highly-liquid derivatives traded on stock exchange are used, within
revised strict and periodic limits, in order to manage trading book exposures.
Internal limits for global exposure and by portfolios were established in order to manage risks.
These limits are monitored on a daily basis. Due to the consequent existence of excessive limits
resulting from unforeseen situations, the Management defined in internal policies providing for the
immediate definition of realignment conditions. These risks are monitored by an area independent
from the operating areas and are reported to senior management on a daily basis.
Exposure is measured by calculating the value at risk (VaR) within one-year range through historic
simulation for 1-day period and 99% accuracy level, as mentioned in Note 34.
The swap agreements are recorded at BM&FBOVESPA or Brazil’s OTC Clearing House (CETIP),
plus fixed rates, DI, IGPM (General Market Price Index), LIBOR and exchange variation. The
futures and option contracts are registered at BM&FBovespa and include exchange variation, DI
and the BOVESPA index.
The market value determination of said derivative financial instruments is based on the stock
market quotes and, in some cases, the present value estimates and other pricing techniques will be
used in case of absence of liquidity or of market quotes.
The market prices were determined based on the following:
•
Futures and options: market quotes disclosed by Stock Exchanges:
•
Swaps: cash flows of each counterparty was discounted to present value, according to the
corresponding interest curves obtained from BM&FBovespa interest rates;
•
Terms: forward amount of operation deducted at present value, pursuant to rates obtained at
BM&FBovespa or related stock exchanges.
Sofisa did not carry out any unusual derivative-related operations or any other type of leveraged
derivative.
The nominal value accounted for in memorandum accounts and the corresponding equity entries
are summarized as follows:
22
(Continued)
d.
Derivatives
Nominal
amount
Future contracts:
Purchase commitments
Interbank deposits (DI)
DDI
Dollar
Future Index
Selling commitments
DDI
Dollar
Shares – Term
Future index
Swap contracts:
Long position
Interbank Deposit Certificates
(CDI)
Fixed rate
Dollar
Euro – Hedge
Dollar- Hedge
Short position
(CDI)
Fixed rate
General market price index (IGPM)
Long term interest rate (TJLP)
Dollar- Hedge
Options contract:
Selling commitments
Shares
Shares
23
Sofisa Consolidated
Nominal
Assets/(liabilities)
amount
12/31/2011
12/31/2010
344,782
340,500
4,282
520,456
323,000
157,453
40,003
-
39,777
39,777
-
295,056
62,000
200,444
14,996
17,616
955,773
346,500
187,447
221,760
200,066
(68)
(68)
(492)
(46)
(446)
347,037
32,022
1,257,843
17,308
69,861
41,523
235,653
449,371
3
10,168
3,282
18,569
(16,344)
248,111
515,928
493,804
741,916
4,311
14,137
4,276
(5,416)
(37,760)
328,344
55,228
4,780
9,852
51,167
(10,370)
(4,815)
(1,000)
(45)
(114)
557,451
152,609
7,320
24,536
-
(26,343)
(10,041)
(1,178)
(198)
-
-
-
42
42
42
42
(1)
(1)
1
1
(Continued)
d. Derivatives
Nominal
amount
Future contracts:
DDI
Dollar
Index
Future index
Selling commitments
DDI
Dollar
Shares - Term
Swap Contracts:
Long position
Dollar
Euro - Hedge
Dollar - Hedge
Short position
(CDI)
Prefixed
General market price index (IGPM)
Long term interest rate (TJLP)
Dollar - Hedge
24
Banco Sofisa
Nominal
amount
12/31/2011
12/31/2010
344,782
340,500
4,282
520,456
323,000
157,453
40,003
39,777
39,777
278,140
62,000
200,444
14,996
700
748,520
346,500
187,447
214,573
-
-
347,037
69,861
41,523
235,653
449,371
21,854
3
3,282
18,569
(16,344)
1,257,843
248,111
515,928
493,804
741,916
8,586
9,726
4,276
(5,416)
(37,760)
328,344
55,228
4,780
9,852
51,167
(10,370)
(4,815)
(1,000)
(45)
(114)
557,451
152,609
7,320
24,536
-
(26,343)
(10,041)
(1,178)
(198)
-
7. Marketable securities and derivative financial instruments (Continued)
The breakdown of derivative financial instruments by maturity at December 31, 2011 and December 31,
2010, is as follows:
Up to
1 month
From 1
to 3 months
Sofisa Consolidated
12/31/2011
From 6
From 1
to 12 months
to 3 years
From 3
to 6 months
12/31/2010
More than
3 years
Total
Total
Off-balance
Futures contracts
Swap contracts
Option contracts
Term Contracts
Total - 12/31/2011
Total - 12/31/2010
50,000
7,406
39,255
96,661
173,161
161,735
10,963
748
173,446
583,172
20,355
20,355
27,209
96,500
77,095
173,595
534,766
517,000
163,392
680,392
738,125
118,993
118,993
-
825,235
398,204
40,003
1,263,442
2,056,433
1,250,829
805,562
42
2,056,433
2,056,433
- Long position
Swap contracts
Term contracts
Total - 12/31/2011
Total - 12/31/2010
39,037
39,037
1
740
740
-
-
8,469
26,163
26,163
14,254
5,859
5,859
-
32,022
39,777
71,799
22,724
22,723
1
22,724
22,724
- Short position
Swap contracts
Option contracts
Total - 12/31/2011
Total - 12/31/2010
550
550
2,832
1,016
1,016
1,070
1,275
1,275
1,201
1,904
1,904
2,707
1,231
1,231
30,511
10,368
10,368
-
16,344
16,344
38,321
37,760
561
38,321
38,321
Up to 1 month
From 1
to 3 months
Banco Sofisa
12/31/2011
From 6
to 12 months
From 3
to 6 months
12/31/2010
From 1
to 3 years
More than
3 years
Total
Off-balance
Futures contracts
Swap contracts
Term contracts
Total - 12/31/2011
Total - 12/31/2010
50,000
7,406
39,255
96,661
173,161
161,735
10,963
748
173,446
583,130
20,355
20,355
27,209
96,500
77,095
173,595
310,597
517,000
163,392
680,392
738,125
118,993
118,993
-
825,235
398,204
40,003
1,263,442
1,832,222
- Long position
Swap contracts
Term contracts
Total - 12/31/2011
Total - 12/31/2010
39,037
39,037
-
740
740
-
-
8,469
15,995
15,995
117
5,859
5,859
-
21,854
39,777
61,631
8,586
- Short position
Swap contracts
Total - 12/31/2011
Total - 12/31/2010
550
550
2,831
1,016
1,016
510
1,275
1,275
1,201
1,904
1,904
2,707
1,231
1,231
30,511
10,368
10,368
-
16,344
16,344
37,760
25
Total
1,026,660
805,562
-
1,832,222
1,832,222
8,586
-
8,586
8,586
37,760
37,760
37,760
(Continued)
Market risk hedge
In order to protect the market against foreign exchange exposure increased by coupon, the Bank traded
swap agreements maturing between 2011 and 2017, which generated a market value adjustment at the
amount of R$ 2,413. The hedge underlying objects represented by funding operations held abroad
(Note 18) also have maturity dates between 2011 and 2017 and mark to market of R$ 2,385, ensuring
the desired risk coverage effectiveness.
The monitoring of hedge effectiveness, that measures the offsetting of hedging instruments by
derivative instruments of exchange variation on protected items, is carried out on a monthly basis. The
effectiveness determined for each hedge unit is within the timeframe established in the Circular No.
3082 of the Central Bank of Brazil.
Banco Sofisa and consolidated
12/31/2011
Referential
Amount of
Curve
Market
contract
Value
value
Derivatives used as
fair value hedge
Hedge instruments
Short position - Dollar and Euro
Swap contracts - Dollar
Swap contracts - Euro
Total
Hedge underlying objects
Funding abroad in foreign currency
Dollar and Euro
Borrowings and onlending abroad - Dollar
Borrowings and onlending abroad - Euro
Total
12/31/2010
Market
Adjustment
286,820
41,523
328,343
304,236
45,419
349,655
302,260
44,982
347,242
(1,976)
(437)
(2,413)
(4,396)
(1,020)
(5,416)
311,308
41,784
353,092
304,175
45,618
349,793
302,227
45,181
347,408
(1,948)
(437)
(2,385)
(4,565)
(1,142)
(5,707)
Net income from operations related to derivative financial instruments is composed as follows:
Sofisa Consolidated
12/31/2011
12/31/2010
Swap
Future - DI
Future - DDI
Future - Index
Future - Foreign
Future - Dollar
Day trade profit
Term
Option - Shares
Derivatives from credits
Options - Financial Assets
Total
26
Market
Adjustment
(7,057)
(4,396)
1,035
255
8,420
7,415
586
1,894
662
(3,969)
(7)
4,838
(60,005)
2,954
(4,104)
1,558
32,219
996
(4)
102
(4,773)
2,191
(28,866)
Banco Sofisa
12/31/2011
12/31/2010
(8,049)
(4,477)
1,035
255
(1,927)
7,415
586
1,975
662
(8)
(2,533)
(55,232)
2,954
(4,104)
1,558
35,711
996
(4)
102
(9)
(18,028)
(Continued)
i) Credit Default Swap – CDS
In 2008 and 2009 the Bank acquired some loan portfolios without guarantee from the other institution
through private agreement for credit onerous agreement and other covenants. This agreement provided for a
credit derivative with the exclusive purpose of minimizing this portfolio credit risk exposure.
The credit derivative ensures the Bank with the loan portfolio acquisition amount restated at DI rates or the
loan portfolio acquisition amount increased by 50% of earnings, deducted from the provision of allowance
for loan losses, whichever is higher.
Sofisa Consolidated
12/31/2011
Balance
Current portfolio
of memorandum
amount
account
Swaps of credits of which underlying objects include:
Credit operations - Credit to consumer (without guarantee)
Total
5,018
5,018
15,186
15,186
Sofisa Consolidated
12/31/2010
Balance
Current portfolio
of memorandum
amount
account
Swaps of credits of which underlying objects include:
Credit operations - Credit to consumer (without guarantee)
Total
22,318
22,318
36,455
36,455
Receivable
MTM
adjustment
10,168
10,168
Receivable
MTM
adjustment
14,137
14,137
8. Interbank relations
The restricted credits are represented by deposits in the Central Bank of Brazil (BACEN) and refer
to compulsory deposits in cash calculated on demand deposits.
9. Credit and leasing operations and other credits (amounts receivable
from the sale of assets and exchange)
a. Breakdown by type of operation
Credit operations
Leasing operations
Other credits
Elimination of Credit assignment effects
With the subsidiary Sofisa CFI
Total portfolio of credit operations
27
12/31/2011
Sofisa consolidated
Banco Sofisa
1,937,384
1,931,438
110,156
110,156
71,565
71,565
(4,785)
2,114,320
2,113,159
12/31/2010
Sofisa consolidated
Banco Sofisa
2,222,628
2,190,831
205,634
205,634
25,351
25,351
2,453,613
2,421,816
b.
Breakdown of credit operations, leasing operations and other credits by maturity
(amounts receivable from sale of assets and exchange)
Sofisa consolidated and Banco Sofisa
Credit operations with small and medium-sized enterprises
12/31/2011
12/31/2010
Risk levels (Ruling No. 2682 of December 21, 1999)
AA
A
B
C
D
E
F
G
H
Total
%
81,657
652,614
551,231
33,251
3,312
798
6,921
5,421
1365,696
From 0 to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
From 181 to 360 days
2,048
1,377
3,277
3,268
8,252
12,269
12,781
12,876
13,596
12,853
14,993
14,558
59,134
104,699
164,004
162,858
73,378
88,541
65,470
88,218
137,288
110,974
72,430
76,851
4,235
3,804
6,809
5,513
7,361
5,529
202
467
388
368
908
979
37
82
81
70
195
333
544
306
978
615
1,665
2,813
545
131
466
470
1,339
2,470
144,996
211,960
326,887
296,989
180,521
204,343
Long-term:
16,254
17,695
122,696
119,240
5,590
405
1,000
10,752
5,640
299,272
Above 360 days
16,254
17,695
122,696
119,240
5,590
405
1,000
10,752
5,640
299,272
Total
46,745
99,352
775,310
670,471
38,841
3,717
1,798
17,673
11,061
1664,968
96
1727,681
97
Overdue:
-
-
4,401
22,159
4,187
6,000
2,043
10,106
19,451
68,347
4
58,462
3
Up to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Above 360 days
-
-
3,621
780
-
10,913
3,392
7,854
-
459
1,494
197
2,037
-
305
693
437
469
4,096
-
83
229
227
1,504
-
121
496
631
643
5,876
2,339
-
29
426
445
407
1,293
14,789
2,062
15,448
7,364
9,793
3,783
12,769
17,128
2,062
46,745
99,352
779,711
692,630
43,028
9,717
3,841
27,779
30,512
1733,315
Total
1,282,828
%
30,491
-
79
Total
Short-term :
72
116,721
155,275
320,079
234,302
200,393
256,058
17
444,853
16,883
8,504
3,887
2,264
13,343
11,927
1,654
100
1,786,143
Leasing operations
12/31/2011
AA
A
B
C
D
E
F
G
12/31/2010
H
Total
Short-term:
-
40,588
9,333
13,183
1,747
705
422
341
1,480
67,799
From 0 to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
-
738
48
885
872
2,519
4,271
573
549
1,318
1,252
3,498
5,993
17
25
42
39
112
187
4,823
12,523
426
205
17
18
35
34
94
143
197
76
72
147
140
394
651
1,001
4,211
3,061
6,870
6,479
18,335
28,843
-
90
93
183
173
443
765
905
40
32
75
64
192
302
Long-term:
2,660
2,224
4,185
3,905
11,083
16,531
15,826
Above 360 days
-
15,826
4,823
12,523
905
426
205
197
1,001
35,906
Total
-
56,414
14,156
25,706
2,652
1.131
627
538
2,481
Overdue:
-
875
1,385
613
446
381
303
Up to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Above 360 days
-
-
2
867
6
-
331
241
811
1
1
-
98
109
170
236
-
36
55
107
102
145
1
-
27
34
72
70
178
-
20
25
45
47
164
2
-
Total
-
56,421
15,031
27,091
3,265
1,577
1,008
841
28
7
7
35,906
25
444,853
%
62
Total
106,344
%
52
6,028
4,714
11,159
8,721
27,538
48,184
33
90,395
44
103,705
95
196,739
96
2,441
6,451
5
8,895
4
85
120
218
210
697
1,002
109
599
1,458
1,429
666
1,185
1,005
109
4,922
110,156
90,395
840
1,427
1,542
847
1,918
1,893
428
100
205,634
100
100
Other credits (amounts receivable based on foreign exchange and sale of assets)
12/31/2011
AA
A
B
C
D
E
F
G
H
12/31/2010
Total
%
Short-term:
-
10,431
21,374
19,135
3,971
-
-
-
-
54,911
From 0 to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
-
955
4,105
2,361
3,010
1,610
5,193
3,322
11,249
-
478
4,346
7,025
1,651
2,547
3,088
3,347
624
-
-
-
-
478
5,956
13,173
9,078
19,504
6,722
Long-term:
-
16,327
297
-
-
-
-
-
-
16,624
Above 360 days
-
16,327
297
-
-
-
-
-
-
16,624
Total
-
26,758
21,671
19,135
-
-
-
-
71,535
Overdue:
-
-
-
-
-
-
-
-
Up to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Above 360 days
-
-
-
-
-
-
-
-
Total
-
26,758
21,671
19,135
-
-
-
3,971
3,971
30
-
30
77
30
23
430
2
100
24,004
95
0
1,347
5
894
453
-
30
71,565
93
430
30
23,574
%
28
1,151
4,058
8,876
5,066
4,395
-
-
Total
100
Sofisa Consolidated
Direct credit operations to consumer
12/31/2011
25,351
100
12/31/2010
AA
A
B
C
D
E
F
G
H
Total
Short-term:
300
78,654
4,507
3,490
1,301
1,152
785
575
3,563
94,327
From 0 to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
30
29
29
57
155
5,214
3,091
9,265
8,275
21,474
31,335
320
157
472
457
1,282
1,819
122
252
359
388
966
1,403
57
87
137
135
369
516
59
67
123
120
319
464
41
45
84
82
227
306
37
28
63
61
165
221
193
206
377
376
1,056
1,355
6,043
3,963
10,909
9,923
25,915
37,574
53
76,605
4,409
3,200
1,323
1,103
825
743
3,992
92,253
Long-term:
Above 360 days
%
47
Total
190,137
%
44
12,517
8,153
18,391
17,399
49,966
83,711
46
227,671
52
53
76,605
4,409
3,200
1,323
1,103
825
743
3,992
92,253
Total
353
155,259
8,916
6,690
2,624
2,255
1,610
1,318
7,555
186,580
93
417,808
96
Overdue:
-
138
884
1,319
723
859
850
928
7,003
12,704
7
18,677
4
Up to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Above 360 days
-
138
-
79
656
149
-
326
260
620
76
37
-
91
108
202
213
109
-
69
104
178
180
266
62
-
49
79
129
129
316
148
-
38
70
111
114
351
244
-
215
340
565
566
1,806
2,805
706
867
1,755
1,954
1,278
2,885
3,259
706
Total
353
9,800
8,009
3,347
3,114
2,460
2,246
14,558
199,284
29
155,397
227,671
1,216
2,897
3,170
2,226
4,303
4,149
716
100
436,485
100
Banco Sofisa
Direct credit operations to consumer
12/31/2011
12/31/2010
AA
A
B
C
D
E
F
G
H
Total
%
170,730
%
Short-term:
308
80,039
4,543
3,456
1,326
1,090
693
587
3,595
95,637
From 0 to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
30
29
29
57
163
5,090
2,921
8,991
7,993
20,758
34,286
300
148
445
431
1,215
2,004
114
230
327
358
891
1,536
53
82
129
127
353
582
50
57
107
105
279
492
34
35
68
66
182
308
32
25
57
56
153
264
180
176
336
340
960
1,603
5,853
3,704
10,489
9,505
24,848
41,238
Long-term:
53
75,546
4,343
3,121
1,277
1,051
733
718
3,875
90,717
Above 360 days
53
75,546
4,343
3,121
1,277
1,051
733
718
3,875
90,717
Total
361
155,585
8,886
6,577
2,603
2,141
1,426
1,305
7,470
186,354
94
388,429
96
Overdue:
-
136
856
1,253
695
787
749
878
6,415
11,769
6
16,259
4
Up to 14 days
From15 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Above 360 days
-
136
-
79
628
149
-
313
242
586
75
37
-
88
103
194
204
106
-
59
96
161
163
246
62
-
47
64
112
111
273
142
-
38
64
105
108
324
239
-
196
314
519
519
1,624
2,552
691
820
1,647
1,826
1,180
2,610
2,995
691
Total
361
155,721
9,742
7,830
3,298
2,928
2,175
2,183
13,885
198,123
Overall Total Consolidated
47,098
337,928
826,213
746,865
53,611
14,408
7,309
30,866
50,022
2,114,320
2,453,613
Overall Total Banco Sofisa
47,106
338,252
826,155
746,686
53,562
14,222
7,024
30,803
49,349
2,113,159
2,421,816
30
48
Total
42
11,248
7,132
16,161
15,280
44,472
76,437
46
217,699
54
217,699
1,045
2,511
2,740
1,941
3,757
3,606
659
100
404,688
100
c. Breakdown of credit operations, leasing operations and other credits by activity sector (amounts receivable
from sale of assets and exchange)
Sofisa Consolidated
Public Sector
Private Sector - legal entities
Food
Auto parts
Sugarcane, sugar and alcohol
Commerce
Communication
Construction
Leather and footwear
Distributor of vehicles and parts
Electronics
Pharmaceutical
Computer and telecommunications
Wood and furniture
Mechanics
Iron steel industry works and mining
Paper and pulp
Plastic and rubber
Chemical and petrochemical
General services
Textile and clothing
Transportation and storage
Agribusiness
Beverage
Credit assignment
Private sector - Individuals
Total credit and leasing operations
31
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
12/31/2010
42,000
58,790
42,000
58,790
1,759,517
165,536
27,188
56,500
169,230
48,023
152,164
15,629
2,682
134,051
7,917
11,851
31,962
19,944
104,145
90,641
113,456
36,537
193,508
124,909
126,837
18,279
26,318
82,210
1,882,843
84,717
20,952
55,868
180,662
66,770
134,456
17,590
784
48,956
38,705
29,930
32,867
8,372
111,696
79,902
67,370
42,034
245,526
115,331
222,067
12,587
13,883
251,818
1,759,378
165,536
27,188
56,500
169,230
48,023
152,164
15,629
2,682
134,051
7,917
11,851
31,962
19,944
104,145
90,641
113,456
36,537
193,369
124,909
126,837
18,279
26,318
82,210
1,869,463
84,717
20,952
55,868
180,662
66,770
134,456
17,590
784
48,956
38,705
29,930
32,867
8,372
111,696
79,902
67,370
42,034
245,351
115,331
221,716
12,587
13,883
238,964
312,803
511,980
311,781
493,563
2,114,320
2,453,613
2,113,159
2.421.816
d. Diversification by type of product
Sofisa Consolidated
AA
Working capital
Discounting of trade bills
Acquired financing
Financing of import
Financing of export
Collateralized account
Advances to deposit
Checking accounts – corporate
Overdraft protection
BNDES financing
Leasing operations
Consigned loans / CDC
Other credits and exchange
Compror
Finame
Vehicles
Overall Total
A
B
C
D
12/31/2011
E
F
G
H
Total
12/31/2010
Total
%
%
46,744
354
-
55,124
94
15,149
13,184
4,664
771
2,428
56,421
82,025
26,758
1,573
79,737
311,355
28,004
8,101
1,671
38,705
363,248
65
9,446
524
8,803
15,031
1,904
21,671
5,020
4,462
8,203
301,728
80,657
36,007
10,283
252,027
233
8,963
173
27,091
1,516
19,135
1,017
1,179
6,856
20,971
8,670
1,440
6,370
3
305
1,992
3,265
943
3,971
368
2,838
2,475
7,916
208
979
81
403
1,577
1,034
66
2,144
2,530
618
355
300
1,008
855
1,643
27,573
90
36
841
1,029
1,297
22,417
199
402
5,677
584
4,922
5,979
30
1,044
8,768
749,614
117,922
71,434
37,678
62,574
633,583
1,357
19,117
1,468
13,523
110,156
95,639
71,565
6,405
11,162
111,123
35
6
3
2
3
30
1
1
5
5
3
1
5
851,907
84,583
209,708
55,547
511,668
267
13,443
1,443
35,760
205,634
240,565
25,351
790
21,026
195,921
35
3
9
2
21
1
1
8
10
1
1
8
47,098
337,928
826,213
746,865
53,611
14,408
7,309
30,866
50,022
2,114,320
100
2,453,613
100
12/31/2010
Total
%
Banco Sofisa
AA
Working capital
Discounting of trade bills
Acquired financing
Financing of import
Financing of export
Advances to deposit
Checking accounts – corporate
Overdraft protection
BNDES financing
Leasing operations
Consigned loans / CDC
Other credits and exchange
Compror
Finame
Overall total
32
B
A
C
D
12/31/2011
E
F
G
H
Total
%
46,744
362
-
55,124
94
15,149
13,184
4,664
771
2,428
56,421
83,847
26,758
1,573
78,239
316,375
28,004
8,101
38,705
1,671
363,248
65
9,446
524
8,803
15,031
2,052
21,671
4,462
7,997
302,745
80,657
10,283
36,007
252,027
233
8,963
173
27,091
1,593
19,135
1,179
6,600
20,971
8,670
1,440
6,370
3
305
1,992
3,265
990
3,971
368
2,838
2,379
7,916
208
979
81
403
1,577
1,084
66
1,908
2,530
618
355
300
1,008
682
1,531
27,573
90
36
841
1,016
1,247
22,417
199
402
5,677
584
4,922
5,950
30
1,044
8,124
755,651
117,922
71,434
62,574
37,678
633,583
1,357
19,117
1,468
13,523
110,156
97,576
71,565
368
11,162
108,025
36
6
3
3
2
30
1
1
5
5
3
1
5
851,907
84,583
209,708
55,547
511,668
267
13,443
1,443
35,760
205,634
223,964
25,351
790
21,026
180,725
35
4
9
3
21
1
1
8
9
1
1
7
47,106
338,252
826,155
746,686
53,562
14,222
7,024
30,803
49,349
2,113,159
100
2,421,816
100
e. Diversification by type of guarantee received
Sofisa Consolidated
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
12/31/2010
1,004,461
106,337
33,058
264,413
50,697
90,004
3,081
9,997
28,609
96,078
71,265
8,355
347,965
2,114,320
843,706
66,202
8,100
280,130
181,136
110,219
3,717
1,956
56,040
199,109
41,967
11,542
649,789
2,453,613
1,004,461
106,337
33,058
264,413
50,697
90,004
3,081
9,997
28,609
93,230
71,265
8,355
349,652
2,113,159
843,706
66,202
8,100
280,130
171,184
110,219
3,717
1,956
56,040
193,559
41,967
11,542
633,494
2,421,816
Trade notes
Promissory notes
Post-dated checks
Rent and property, receivables
Guarantee granted from financial institutions
Chattel mortgage of real estate
Warrant and collateral pledge
Withdrawals from companies abroad
Contracts and banking domicile change restriction
Payroll deduction loan/ CDC
Investments
Sale – machinery and equipment
Chattel mortgage of vehicles
Total
f. Main debtors
Sofisa Consolidated
Amount
Main debtor
10 major debtors
20 major debtors
50 major debtors
100 major debtors
30,291
235,653
405,437
743,184
1,075,709
12/31/2011
% on
portfolio
% on
equity
1
11
19
35
51
4
30
52
95
138
Amount
12/31/2010
% on
portfolio
29,256
229,710
389,427
693,119
982,128
% on
equity
1
9
16
28
40
4
30
51
90
127
Banco Sofisa
Amount
Main debtor
10 major debtors
20 major debtors
50 major debtors
100 major debtors
33
30,291
235,653
405,437
743,184
1,075,709
12/31/2011
% on
portfolio
1
11
19
35
51
% on
equity
Amount
4
30
52
95
138
29,256
229,710
389,427
693,119
982,128
12/31/2010
% on
portfolio
1
9
16
29
41
% on
equity
4
30
51
90
127
10. Allowance for loan losses
a.
Classification of credit, leasing and other operations by risk level (amounts receivable for sale of
assets and exchange)
Sofisa Consolidated
12/31/2011
Levels
AA
A
B
C
D
E
F
G
H
Credit operations
with small and medium
sized
companies
Operations with
direct credit
to
consumers
12/31/2010
Other credits
receivable and
foreign
exchange
Leasing
operations
Established
provision
46,745
99,352
779,711
692,630
43,028
9,717
3,841
27,779
30,512
497
7,797
20,779
4,303
2,915
1,921
21,306
30,512
353
155,397
9,800
8,009
3,347
3,114
2,460
2,246
14,558
796
100
246
343
956
1,260
1,959
14,558
56,421
15,031
27,091
3,265
1,577
1,008
841
4,922
282
150
813
327
473
504
589
4,922
26,758
21,671
19,135
3,971
30
134
217
574
397
30
47,098
337,928
826,213
746,865
53,611
14,408
7,309
30,866
50,022
1,709
8,264
22,412
5,369
4,344
3,685
23,854
50,022
176,603
707,752
876,240
493,005
48,584
65,509
9,420
8,009
68,491
3,539
8,763
14,790
7,070
19,649
4,711
5,606
68,491
1,733,315
90,029
199,284
20,218
110,156
8,059
71,565
1,352
2,114,320
119,659
2,453,613
132,619
Balance
Established
provision
Balance
Established
provision
Total
Balance
Balance
Established
provision
Total
Established
provision
Balance
Established
provision
Balance
Banco Sofisa
12/31/2011
Levels
AA
A
B
C
D
E
F
G
H
Credit operations
with small and medium
sized
companies
Balance
Established
provision
46,745
99,352
779,711
692,630
43,028
9,717
3,841
27,779
30,512
497
7,797
20,779
4,303
2,914
1,921
21,307
30,512
1,733,315
34
90,029
Operations with
direct credit
to
consumers
Balance
361
155,721
9,742
7,830
3,298
2,928
2,175
2,183
13,885
198,123
12/31/2010
Other credits
receivable and
foreign
exchange
Leasing
operations
Established
provision
779
97
235
330
878
1,088
1,528
13,885
18,820
Balance
56,421
15,031
27,091
3,265
1,577
1,008
841
4,922
110,156
Established
provision
282
150
813
327
473
504
589
4,922
8,059
Balance
26,758
21,671
19,135
3,971
30
71,565
Total
Established
provision
Balance
134
217
574
397
30
47,106
338,252
826,155
746,686
53,562
14,222
7,024
30,803
49,349
1,352
2,113,159
Total
Established
provision
Balance
Established
provision
1,691
8,262
22,401
5,356
4,266
3,512
23,424
49,349
166,651
694,856
874,788
490,883
47,626
65,061
8,824
7,558
65,569
3,472
8,748
14,727
6,974
19,518
4,412
5,291
65,569
2,421,816
128,711
118,260
10.
b. Changes in provision
Sofisa Consolidated
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
Opening balance
132,619
125,152
128,711
115,939
Provision increase
37,322
71,013
35,532
68,010
Additional provision (a)
Credits written off
1,861
(52,143)
2,211
(65,757)
1,861
(47,844)
2,211
(57,449)
Closing balance
119,659
132,619
118,260
128,711
15,746
20,524
14,892
6,661
Recovery
12/31/2010
(a) The Bank set up an additional provision to that established by Ruling No. 2682/99, in the amount of
1,861 referring to working capital operations classified under rating G in 12/31/2011.
R$
c. Breakdown of provision by type of operation
Provisioned amount
Sofisa Consolidated
12/31/2011
Working capital
Discounted notes
Acquisition of credit rights with guarantee
Import financing
Export financing
Guaranteed account
Advance to depositors
Corporate check
59,896
3,892
12/31/2010
67,493
1,946
Banco Sofisa
12/31/2011
12/31/2010
59,977
3,892
67,495
1,946
301
372
301
372
1,097
1,163
577
-
1,163
1,097
577
-
18,133
14,988
18,133
14,988
819
515
41
205
819
515
41
205
14
14
14
14
449
8,059
365
15,699
449
8,059
365
15,699
10,341
16,743
9,776
15,824
1,352
419
1,352
419
Compror
118
1,435
403
79
37
1,435
403
79
Vehicles
12,074
13,275
11,242
10,284
119,659
132,619
118,261
128,711
Overdraft facility
BNDES - financing
Leasing operations
Payroll - deductible loans / CDC
Finame - financing
Other credit (amounts receivable according to useful life and
exchange)
Overall total
35
11. Foreign exchange portfolio
12/31/2011
12/31/2010
77,996
66,090
11,360
(1,008)
1,554
19,232
11,348
61,241
(53,357)
25,733
24,210
785
738
1.882
773
25,291
(24,182)
Assets - Other credits
Exchange purchased pending settlement
Right over exchange sale
(-) Local currency denominated advances receipt
Income receivable – advances granted
Liabilities - Other obligations
Exchange sold pending settlement
Foreign exchange purchase
(-) Advances on foreign exchange contracts (Note 9.a)
12. Income and social contribution taxes
Sofisa Consolidated
12/31/2011
Income before taxes and profit sharing
12,191
Current rate 40%
(4,876)
10,553
12/31/2010
Banco Sofisa
12/31/2011
12/31/2010
92,291
3,158
71,312
(36,916)
(1,263)
(28,525)
11,921
22,871
(11,209)
(1,025)
(10,530)
5,024
Assets- Not for own use
(2,922)
2,959
(1,656)
1,949
Offsetting in the period
11,839
12,483
2,366
Others
12,845
12,929
11,625
13,531
IR E CS over permanent additions
14,770
(19,794)
23,813
(7,862)
Total (expense) / Income Tax Revenue
25,323
(5,337)
35,734
15,009
36
14,457
(406)
13. Other credits – Sundry
Sofisa Consolidated
Short
term
Salary advances and prepayments
Tax credit (b)
Debtors due to purchase of securities and assets
Debtors due to guarantee deposits (Note 21.c)
Offsettable / recoverable income tax
Offsettable / recoverable social contribution
Offsettable Pis/Cofins
Offsettable INSS - SAT
Options by tax incentive
Right over financial assets transfer and sale operations
Mark-to-market (MTM)
Sundry debtors – Abroad (a)
Sundry debtors – Local
Total
4,487
76,368
19,689
4,820
2,388
294
8
12/31/2011
Long
term
Total
Short
term
12/31/2010
Long
term
Total
26,744
51,204
159,285
17,327
2,174
10,795
-
4,487
235,653
19,689
17,327
4,820
2,388
294
2,174
8
10,795
26,744
51,204
3,519
38,391
4,550
7,590
5,623
1,046
8
15,259
15,711
21,841
30,796
187,732
18,294
2,069
9,805
-
3,519
226,123
4,550
18,294
7,590
5,623
1,046
2,069
8
25,064
15,711
21,841
30,796
186,002
189,581
375,583
144,334
217,900
362,234
Banco Sofisa
12/31/2011
Salary advances and prepayments
Tax credit (b)
Debtors due to purchase of securities and assets
Debtors due to guarantee deposits (note 21.c)
Offsettable/recoverable income tax
Offsettable/recoverable social contribution
Offsettable Pis/cofins
Offsettable INSS - SAT
Right over financial assets transfer and sale operations
Mark-to-market (MTM)
Sundry debtors - Abroad (a)
Sundry debtors – Local
Total
12/31/2010
Short
term
Long
term
Total
Short
term
Long
term
Total
471
73,796
16,654
1,130
395
108
26,744
10,428
152,343
10,641
2,174
10,795
-
471
226,139
16,654
10,641
1,130
395
108
2,174
10,795
26,744
10,428
10
36,273
430
1,794
3,070
830
15,259
15,711
16,631
16,028
178,364
12,436
2,069
9,805
-
10
214,637
430
12,436
1,794
3,070
830
2,069
25,064
15,711
16,631
16,028
129,726
175,953
305,679
106,036
202,674
308,710
(a) These mainly refer to “reverse-repurchase agreements” in the amount of R$ 25,779, maturing up
to December 2, 2012, with rates of 4% and 4.5% p.a., carried out by the Cayman branch.
37
13. Other credits – Sundry
(b) Tax credit - Estimated realization and present value of recoverable tax credits and social contribution
taxes recorded at December 31, 2011, resulting from the Provisional Executive Order 2158-35 of August
24, 2001, and considering the history of profitability and the expectation of future taxable income
generation based on a technical feasibility study, segregated the nature and disbursements carried out,
include:
Sofisa Consolidated
Tax Credits
12/31/2010
Realization/reversal
Tax losses
144,062
Arising from excess depreciation exclusion
From operations
Temporary differences:
119,522
24,539
Doubtful receivables
Tax contingencies
Labor proceedings
Mark-to-market – Circular No. 3068/2002
Provision for BNDU/Other impairments
Elimination of tax effects without adjustments between related parties
Total temporary differences
12/31/2011
37,679
143,164
(26,955)
(11,621)
6,467
31,212
99,034
44,130
32,654
1,124
860
2,694
4,979
(12,968)
"(1,035)
(803)
(3,036)
(5,366)
6,382
2,276
96
7,486
5,340
574
26,067
2,365
153
7,144
4,953
574
42,311
(23,208)
22,154
41,256
186,373
(61,785)
59,833
184,420
14,363
(6,613)
18,727
26,478
Tax contingencies
Labor proceedings
Mark-to-market - Circular No. 3068/2002
Provision for BNDU /Other impairments
Elimination of tax effects without adjustments between related parties
19,592
675
517
1,616
2,988
(7,780)
(1,103)
(483)
(1,821)
(3,219)
3,828
1,847
58
4,492
3,204
344
15,640
1,419
92
4,287
2,973
344
25,387
(14,405)
13,773
24,755
Social contribution pending settlement from option provided for in article 8
of the Provisional Executive Order No. 2158-35 dated 08/24/2001
39,749
(21,016)
32,500
51,233
226,123
(82,803)
92,333
235,653
Total income tax credit
CSLL tax base
(38,577)
Constitution
Total IRPJ and CSLL tax credits
Tax credits
Realization year
2012
2013
2014
2015
2016
2016 to 2020
Temporary
differences
Corporate Income (IRPJ)
Tax losses
Tax losses excess
Total income tax
Social Contribution on net profit (CSLL)
Temporary
Tax loss
Total social
differences
carryforwards
contribution
22,653
8,276
5,846
3,953
527
1
6,753
8,639
11,101
14,237
3,400
8,656
38,898
30,574
20,193
684
30
31,309
53,927
45,059
35,246
15,447
3,431
13,577
4,981
3,508
2,372
316
-
4,053
5,183
6,660
8,542
2,040
13,577
9,034
8,691
9,032
8,858
2,040
Total
41,256
44,130
99,034
184,420
24,754
26,478
51,232
Present value
32,521
19,360
70,800
121,998
19,512
11,616
31,128
38
13.
Other credits – Sundry
Banco Sofisa
Tax Credits
12/31/2010
Tax losses
Realization/reversal
139,660
Constitution
12/31/2011
(36,061)
36,188
139,787
Arising from excess depreciation exclusion
From operations
119,522
20,138
(26,932)
(9,129)
6,467
29,721
99,057
40,730
Tax contingencies
Labor proceedings
Mark-to-market – Circular No. 3068/2002
Provision for BNDU/Other impairments
31,980
426
57
2,694
4,153
(11,749)
(1,343)
(2,748)
(4,549)
5,587
1,580
96
7,198
5,314
25,817
663
153
7,144
4,918
39,310
(20,389)
19,775
38,696
178,970
(56,450)
55,963
178,483
12,081
(5,476)
17,832
24,438
Tax contingencies
Labor proceedings
Mark-to-market - Circular No. 3068/2002
Provision for BNDU /Other impairments
19,188
256
34
1,616
2,492
(7,050)
(806)
(1,648)
(2,729)
3,352
948
58
4,319
3,188
15,490
398
92
4,287
2,951
23,586
(12,233)
11,865
23,218
Social contribution pending settlement from option provided for in article 8
of the Provisional Executive Order No. 2158-35 dated 08/24/2001
35,667
(17,708)
29,697
47,656
214,637
(74,159)
85,660
226,139
Total income tax credit
CSLL tax base
Total IRPJ and CSLL tax credits
Tax credits
Realization year
2012
2013
2014
2015
2016
2016 a 2020
Temporary
differences
Corporate Income (IRPJ)
Tax losses
Tax losses excess
Total income tax
Social Contribution on net profit (CSLL)
Temporary
Tax loss
Total social
differences
carryforwards
contribution
21,906
6,518
5,808
3,938
526
-
6,753
8,639
11,101
14,237
-
8,679
38,898
30,574
20,193
684
30
30,585
52,169
45,021
35,231
15,446
30
13,144
3,911
3,485
2,363
316
-
4,051
5,183
6,660
8,542
-
13,144
7,962
8,668
9,023
8,858
-
Total
38,696
40,729
99,057
178,483
23,219
24,436
47,655
Present value
30,479
17,595
70,820
118,210
18,288
10,556
28,844
39
13.
Other credits – Sundry
(*)Present value adjustment was based on the average funding rate.
The P&L has no direct relation with the taxable income for income and social contribution
tax purposes, based on differences between the accounting criteria and the tax legislation
in force. Therefore, it is noteworthy that the realization evolution of income and social
contribution tax losses and temporary differences should not be considered as evidence of
future net profits.
For the interpretation of the Central Bank of Brazil, transmitted to the Bank's management
and its external auditors, by the article 5, paragraph 2 of Resolution No. 3.355, the tax
effects related to excess of depreciation of assets subject to leasing operations should not
be excluded for the determination of taxable profits in at least three of the last five fiscal
years, as stipulated in Article 1, paragraph I of the Resolution, With this interpretation, the
Bank would reverse tax credits for income tax in the amount R $ 67.811 on December 31,
2011, reversal would not apply to social contribution tax credits recorded by the Bank,
however, the semester ending on June 30, 2012, the projections made by management, the
Bank recognize the balance of tax credit, eliminating possible effects on your net worth, to
date, there is no formal decision on the subject, for which no adjustment was made in the
exercise.
14. Other assets
Sofisa Consolidated
12/31/2011
12/31/2010
Foreclosed assets
Real estate
Vehicles
Other
(-) Provision for impairment
44,894
25,651
3,225
(7,605)
66,164
68,438
16,747
2,128
(13,566)
73,747
Sofisa Consolidated
12/31/2011
12/31/2010
Prepaid expenses
Insurance expenses
Commissions paid to correspond banks
Fundings abroad
Other values and assets
40
89
12,978
7,442
20,509
86,673
108
1,288
9,964
11,360
85,107
Banco Sofisa
12/31/2011
12/31/2010
14,424
25,277
3,225
(7,464)
35,462
35,163
16,532
2,093
(10,262)
43,526
Banco Sofisa
12/31/2011
12/31/2010
89
10,440
7,442
17,971
53,433
108
1,222
9,964
11,294
54,820
15. Property and equipment in use
Depreciation
Rate
%
Land
Buildings
Facilities
Machinery and equipment
Data processing system
Transportation system
Equipment /Right of use
Other
4
10
10
20
20
10
Depreciation
Rate
%
Land
Buildings
Facilities
Machinery and equipment
Data processing system
Transportation system
Equipment /Right of use
Other
41
4
10
10
20
20
10
Sofisa Consolidated
Cost
12/31/2011
12/31/2010
14,846
36,205
1,127
2,253
3,696
5,604
489
15
351
64,586
14,847
38,296
1,037
2,241
4,063
4,871
520
15
338
66,228
12/31/2011
(7,141)
(621)
(1,311)
(2,843)
(2,425)
(268)
(14,609)
12/31/2010
(5,609)
(551)
(1,172)
(2,647)
(1,834)
(252)
(12,065)
Banco Sofisa
Cost
12/31/2011
12/31/2010
12/31/2011
203
3,083
1,127
2,240
3,323
3,267
84
15
348
203
3,083
1,011
2,125
3,329
2,479
169
15
335
(482)
(621)
(1,308)
(2,552)
(1,484)
(267)
13,690
12,749
(6,714)
12/31/2010
Net value
12/31/2011
12/31/2010
14,846
29,064
506
942
853
3,179
489
15
83
49,977
14,847
32,687
486
1,069
1,416
3,037
520
15
86
54,163
Net value
12/31/2011
12/31/2010
(405)
(543)
(1,145)
(2,274)
(1,172)
(251)
203
2,601
506
932
771
1,783
84
15
81
203
2,678
468
980
1,055
1,307
169
15
84
(5,790)
6,976
6,959
16. Deposits and funds from acceptances and issue of securities
a. Breakdown by maturity
Sofisa Consolidated
12/31/2011
Up to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Short Term
Demand
deposits
70,899
-
Time
deposits
88,200
53,032
78,245
212,395
292,533
Interbank
deposits
2,676
589
816
70,899
724,405
4,081
12/31/2010
585
1,811
1,434
1,090
-
763
6,122
1,442
15,069
9,434
Demand
deposits
124,674
-
4,920
32,830
124,674
LCA
LCI
Time
deposits
226,741
160,121
61,393
355,460
253,399
1,057,114
Interbank
deposits
9,954
13,575
3,530
273
700
Deposits for
investments
42
-
28,032
LCA
1,395
3,062
307
12,725
1,930
42
19,419
Above 360 days
-
1,540,334
19,665
-
3,079
-
1,103,819
16,197
-
-
Long Term
-
1,540,334
19,665
-
3,079
-
1,103,819
16,197
-
-
2,264,739
23,746
2,160,933
44,229
42
Overall total
70,899
4,920
35,909
124,674
19,419
Banco Sofisa
12/31/2011
Up to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 180 days
Short term
Above 360 days
Long term
Overall total
Demand
deposits
73,462
73,462
Time
deposits
88,200
53,032
78,245
238,687
330,958
Interbank
deposits
2,676
589
75,956
789,122
79,221
-
1,635,253
19,665
-
1,635,253
19,665
2,424,375
98,886
73,462
12/31/2010
585
1,811
1,434
1,090
-
763
6,122
1,442
15,069
9,434
Demand
deposits
127,077
-
4,920
32,830
127,077
LCA
LCI
-
3,079
-
3,079
4,920
35,909
Time
deposits
226,741
160,121
61,393
355,460
328,934
Interbank
deposits
14,555
13,575
3,530
273
700
Deposits for
investments
42
-
1,132,649
32,633
42
-
1,161,974
16,197
-
-
1,161,974
16,197
-
2,294,623
48,830
42
127,077
LCA
1,395
3,062
307
12,725
1,930
19,419
19,419
b. Breakdown by market segment
Sofisa Consolidado
Public sector
Business activities
Rural
Industry
Commerce
Financial institutions
Other services
Funds
Foundations
Insurers
Individuals
Houisng
Overall total
Demand
deposits
321
106
113
32,630
16,270
232
18,336
2,555
336
70,899
Time
deposits
1,704
386
202
104,743
90,957
102,670
251,357
1,069,414
312,247
45,240
284,277
1,542
2,264,739
12/31/2011
Interbank
deposits
-
LCA
LCI
-
23,746
23,746
-
4,920
4,920
35,909
35,909
Demand
deposits
444
Time
deposits
1,450
924
64,057
30,860
2,244
25,228
546
371
124,674
84,447
51,950
57,728
252,901
1,019,684
376,313
49,504
259,573
7,383
2,160,933
Demand
deposits
444
924
64,081
30,860
Time
deposits
1,450
84,447
51,950
12/31/2010
Interbank
deposits
44,229
44,229
Deposits for
investments
-
LCA
-
42
42
19,419
19,419
Banco Sofisa
Public sector
Business activities
Rural
Industry
Commerce
Financial institutions
Other services
Funds
Foundations
Insurers
Individuals
Houisng
Overall total
42
Demand
deposits
321
106
113
32,630
16,270
425
20,706
2,555
336
73,462
Time
deposits
1,704
386
202
104,743
90,957
102,670
410,993
1,069,414
312,247
45,240
284,277
1,542
2,424,375
12/31/2011
Interbank
deposits
98,886
LCA
LCI
-
-
-
-
2,633
57,728
-
-
-
27,218
386,591
-
-
-
98,886
4,920
4,920
35,909
35,909
546
371
127,077
1,019,684
376,313
49,504
259,573
7,383
2,294,623
12/31/2010
Interbank
deposits
48,830
Deposits for
investments
-
LCA
-
-
-
-
-
-
-
-
-
48,830
42
42
19,419
19,419
16. Deposits and funds from acceptances and issue of securities -continued
c.
Concentration of main depositors
Sofisa Consolidated
Main depositor
10 major depositors
20 major depositors
50 major depositors
100 major depositors
Demand
deposits
Time
deposits
3,638
21,179
29,589
40,899
49,818
62,557
374,304
561,137
1,001,542
1,491,119
12/31/2011
Interbank
deposits
LCA
14,271
23,745
-
LCI
1,022
3,768
4,920
4,920
-
3,079
15,293
20,841
29,718
35,909
Demand
deposits
Time
deposits
9,778
33,445
48,580
76,212
97,601
173,503
582,830
759,175
1,177,350
1,604,588
Demand
Time
deposits
deposits
12/31/2010
Interbank
Deposits for
deposits
investments
12,647
44,229
-
LCA
42
-
1,553
7,774
17,994
19,419
19,419
Banco Sofisa
12/31/2011
Main depositor
Demand
Time
deposits
deposits
12/31/2010
Interbank
deposits
LCA
LCI
Interbank
Deposits for
deposits
investments
LCA
3,638
97,665
75,141
1,022
3,079
9,778
173,503
12,647
42
10 major depositors
21,179
488,895
98,886
3,768
15,293
33,445
658,537
48,830
-
7,774
20 major depositors
29,799
680,247
-
4,920
20,841
48,976
856,123
-
-
17,994
50 major depositors
41,866
1,131,864
-
4,920
29,718
77,229
1,283,562
-
-
19,419
100 major depositors
51,228
1,632,287
-
35,909
99,059
1,722,075
-
-
19,419
-
17. Funds obtained in open market
Funds obtained in open market comprise the repurchase commitments of securities at fixed prices pegged to the
Financial Treasury Bills (LTN) maturing on July 1, 2012, in the total amount of R$ 11,254 in Sofisa
Consolidated and Banco Sofisa at December 31, 2011 (R$ 45,149 in Sofisa Consolidated and Banco Sofisa at
December 31, 2010), of own portfolio.
43
1,553
18. Borrowings and onlending
a. Foreign borrowings
Sofisa Consolidated
12/31/2011
Banco Sofisa
12/31/2010
12/31/2011
12/31/2010
Up to 90 days
From 91 to 180 days
63,837
21,981
109,623
37,250
13,077
161,298
66,248
21,981
102,232
37,250
13,077
161,298
Total
195,441
211,625
190,461
211,625
b.
Onlending – BNDES
12/31/2011
Up to 90 days
From 91 to 180 days
Above 360 days
Total
12/31/2010
2,636
2,603
3,782
1,018
6,452
6,116
10,223
10,005
10,039
32,796
c. Onlending – Finame
12/31/2011
Up to 90 days
From 91 to 180 days
Above 360 days
Total
12/31/2010
3,973
3,493
5,677
6,913
4,577
4,377
8,407
19,088
20,056
36,449
d. Foreign onlending
12/31/2011
12/31/2010
Up to 90 days
From 91 to 180 days
Above 360 days
2,355
6,094
129,728
247,495
964
268
19,291
361,938
Total
385,672
382,461
Funds raised by the Bank with FMO, IFC and IDB have specific contract covenants, considered appropriate by
Management at December 31, 2011.
44
19. Other obligations – tax and social security
Sofisa Consolidated
Short term
12/31/2011
Long term
Total
Short Term
12/31/2010
Long Term
Total
Provision for taxes and social contribution
on profit
Taxes and contributions payable (b)
Provision for deferred income tax (a)
9,820
7,062
74,964
55,648
36,179
9,820
62,710
111,143
15,410
5,395
76,012
59,031
59,758
15,410
64,426
135,770
Total
91,846
91,827
183,673
96,817
118,789
215,606
Banco Sofisa
12/31/2011
Short term
Provision for taxes and social contribution
on profit
Taxes and contributions payable (b)
Provision for deferred income tax (a)
Long term
12/31/2010
Total
Short Term
Long Term
825
6,694
74,964
55,648
36,179
825
62,342
111,143
2,216
4,940
76,012
59,031
59,758
2,216
63,971
135,770
82,483
91,827
174,310
83,168
118,789
201,957
a) This refers to provision for income and social contribution taxes on real estate
revaluation reserves in subsidiaries, excess depreciation of leased assets, temporarily
excluded from the income tax base, and tax effects related to available-for-sale
securities marked to market, amounting to R$ 465, R$ 110,673 and R$ 5, respectively,
at December 31, 2011, and amounting to R$ 465, R$135,292 and R$13, respectively,
at December 31, 2010.
b) This refers to provision for COFINS of R$ 41,785 of previous periods paid in 180
months (REFIS), R$ 9,158, paid in 60 months (ordinary payment in installments) and
R$ 11,767 (Sofisa Consolidated) and R$ 11,399 (Banco Sofisa) corresponding to legal
liabilities for 2011.
45
Total
20. Other obligations – securities trading
12/31/2011
Short term
Total
40
40
-
Operations with financial assets - BM&F
Other obligations for securities trading
Total
40
12/31/2010
Short term
Total
2,202
2,202
68
68
40
2,270
2,270
21. Other obligations– Sundry
Sofisa Consolidated
12/31/2011
Cashier’s checks
Provision for payments to be made
Provision for contingent liabilities (c)
Sundry debtors - abroad (a)
Sundry debtors – local
Obligation through sale / transfer of financial assets (b)
Total
12/31/2010
Short term
754
8,638
108,107
13,485
19,918
Long term
18,743
14,825
Total
754
8,638
18,743
108,107
13,485
34,743
Short Term
7,735
73,064
57,216
51,056
Long Term
6,989
16,765
65,405
150,902
33,568
184,470
189,051
89,159
Total
7,735
6,989
89,809
57,216
116,461
278,210
Banco Sofisa
12/31/2011
Cashier’s checks
Provision for payments to be made
Provision for contingent liabilities (c)
Sundry debtors - abroad (a)
Sundry debtors – local
Obligation through sale / transfer of financial assets (b)
Total
Short term
754
9,502
98,469
25,264
19,918
Long term
153,907
12/31/2010
11,934
14,825
Total
754
9,502
11,934
98,469
25,264
34,743
Short Term
6,316
65,499
39,872
51,056
Long Term
982
7,637
65,405
6,316
982
73,136
39,872
116,461
26,759
180,666
162,743
74,024
236,767
(a) These refer to the issue of linked notes (linked to shares/bond operations) amounting to R$ 9,638 with
final maturity on March 18, 2013, all of which are carried out by the subsidiary Sofisa Investment Ltd., and
repo operations amounting to R$ 66,565 with final maturity until March 14, 2012, “linked notes”
amounting to R$ 4,053 maturing on September 24, 2012, and “global notes” amounting to R$ 12,829
maturing up to March 19, 2012, made by the Cayman branch.
(b) These refer to obligations with other financial institutions arising from credit portfolio assignment with
assumption of substantial risks as well as rewards.
46
Total
21. Other obligations– Sundry -- Continued
12/31/2011
12/31/2010
Book value of the
assumed obligation
Book value of the
assumed obligation
Credit operations
Leasing operations
12,683
22,060
42,038
74,423
Total
34,743
116,461
(c) Contingencies
During the normal course of their businesses, the Bank and its subsidiaries are exposed to certain
contingencies and risks. Within this context, the approximate amount of ongoing lawsuits, for which the
likelihood of loss is assessed as probable or possible, distributed as follows:
Sofisa Consolidated
Description
Probable
Possible
7,563
21,941
612
4,287
1,431
13,192
9,137
-
18,743
39,420
Tax proceedings
Labor proceedings
Civil proceedings
Provision for contingencies on credits
assigned with guarantee
Total
Banco Sofisa
Description
Tax proceedings
Labor proceedings
Civil proceedings
Provision for contingencies on credits
assigned with guarantee
Total
Probable
754
Possible
21,941
612
4,287
1,431
13,192
9,137
-
11,934
39,420
Provisions for contingencies with probable unfavorable outcome are established at known values, for labor, tax
and civil issues being discussed in administrative and legal instances, backed by the opinions of the Company’s
legal counsel. The Bank has contingencies related to COFINS calculated in accordance with Law No. 9718/1998
in the periods from April 2000 to March 2004 totaling R$ 42,212, of which the due date is lapsed. Accordingly,
and based on the strength of arguments not compelling the Bank to pay the alleged COFINS tax debt, in
accordance with the opinion of the Bank's legal counselors, these amounts have not been provisioned.
At December 31, 2011, we recorded judicial deposits in the amount of R$ 17,327 in Sofisa Consolidated and R$
10,641 in Banco Sofisa, recorded under the heading “Other credits”, which are related to these contingencies
(Note 13).
47
22. Shareholders’ equity
Capital
Subscribed and paid up capital is represented by and divided into 97,140,150 book-entry registered
common shares with no par value, and 40,607,271 book-entry registered preferred shares with no par
value.
Interest on equity and dividends
The Bank’s Bylaws entitle shareholders to a minimum dividend of 25% of the annual adjusted net
income as provided for by law, which may be alternatively distributed as Interest on Equity (IOE).
In the year ended December 31, 2011, the provision for interest on equity was as follows:
R$ 45,809
R$ (6,871)
R$ 38,938
Interest on equity paid and/or provisioned
Withholding income tax (IRRF) - 15%
Net provision for the period
The tax incentive from the distribution of interest on equity resulted in R$ 16,975 reduction of charges
related to income and social contribution taxes of the period.
The Board of Directors’ Meeting of September 14, 2009 approved the payment of interim Interest on
Equity (IOE), to be included in the minimum mandatory dividends of 2009, at the gross overall amount
of R$ 3,000, or R$0.02177935 per common and/or preferred shares. The aforesaid payment, scheduled
for September 28, 2009, was suspended by the Federal Regional Court of the 3rd Region, in view of the
previous dispute at the Federal Judiciary branch between Banco Sofisa and tax authorities with the
purpose of establishing which revenues of the Bank must and must not be considered in the
PIS/COFINS tax base. At December 31, 2009, the Bank adjusted its procedures for COFINS
recognition purposes in accordance with the rules set forth by State Finance Authority; therefore the
triggering event for such suspension no longer exists. Accordingly, the Bank is awaiting the legal
decision to continue payment of such amounts
The Board of Directors’ Meeting of August 19, 2011 approved payment to shareholders, as interest on
equity - IOE, to be included in minimum mandatory dividends referring to 2011, as provided for by
article 9, paragraph 7, of Law No. 9249/1995, subject to approval by the Bank’s general shareholders’
meeting to be held in 2012, as under:
Ad referendum of the General Assembly of the Society held on April 24, 2011:
48
Payments
referring to
income for the
year
Date of payment
statement
2011
02/28/2011
Total gross
amount
4,377,866,13
Amount per ON and PN share
Gross amount
0.03178184
Net amount
0.02701456
Date of
payment
03/17/2011
22. Shareholders’ equity -- Continued
Ad referendum of the General Assembly of the Society to be held in April 2012:
Amount per ON and PN
Payments
share
Date of payment
Total gross
referring to
statement
amount
income for the
Gross
year
amount
Net amount
2011
05/23/2011
6,000,000,00
0.04355798
0.03702429
2011
08/19/2011
29,170,042,09
0.21176471
0.18000000
23. Income from credit operations
Accumulated in
Sofisa Consolidated
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
12/31/2010
Working capital
Discounted notes
Direct consumer credit
Guaranteed accounts
Advance to depositors
Income from consigned loans
Corporate check
Overdraft facility
Income from financing
Income receivable from sale/transfer of financial
assets
116,982
22,859
23,163
119,086
996
17,581
12,077
559
62,552
166,348
13,281
38,536
100,532
361
43,030
12,459
298
82,892
116,982
22,859
23,163
119,086
996
15,036
12,077
559
31,887
166,348
13,281
38,072
100,532
361
42,272
12,459
298
76,342
18,217
20,524
14,892
6,661
Total
394,072
478,261
357,537
456,626
24. Income from leasing operations
Accumulated in
12/31/2011
12/31/2010
Income from lease consideration
Fines and interest on receipt of consideration
Income from excess depreciation
Income from lease - Finame
Income from lease operation fees
Income from disposal of leased assets
46,001
8,437
6,692
4,546
(437)
178,208
53,982
10,879
29,341
8,177
(364)
181,849
Total
243,447
283,864
49
Date of
payment
06/08/2011
08/29/2011
25. Profit on marketable securities
Accumulated in
Sofisa Consolidated
12/131/2011
Income from investment in operation subject to
repurchase agreement
Income from interbank deposits
Income from investment funds
Income from fixed-rate bonds
Income from marketable securities held abroad
Income from variable-rate bonds
Income (loss) from market value adjustment
26,254
8,778
23
118,177
30,694
(5,519)
(4,016)
Total
174,391
Banco Sofisa
12/31/2010
37,491
4,566
4
97,327
23,644
5,211
(1,437)
166,806
12/31/2011
12/31/2010
26,254
16,849
23
110,511
30,704
1,872
(4,016)
37,491
8,260
4
80,281
23,644
712
(1,437)
182,197
148,955
26. Open market funding expenses
Accumulated in
Sofisa Consolidated
12/31/2011
12/31/2010
Banco Sofisa
12/31/2011
12/31/2010
Marketable securities held abroad (a)
Interbank deposits
Time deposits
Operations subject to repurchase agreements
Other
(7,732)
(6,430)
(259,811)
(4,816)
(9,984)
(8,697)
(6,201)
(226,529)
(4,735)
(8,165)
(5,028)
(9,918)
(276,316)
(4,816)
(10,066)
(5,580)
(7,092)
(240,180)
(4,735)
(8,644)
Total
(288,773)
(254,327)
(306,144)
(266,231)
a) Refers to securities issued by Sofisa Investment Ltd and Cayman Branch with maturity up to
December 2012.
50
27. Expenses from leasing operations
Accumulated in
12/31/2011
12/31/2010
Leased asset depreciation
Discounts granted
Insufficient leasing depreciation expenses
Other leasing expenses
(113,474)
(5,089)
(91,867)
(395)
(209,424)
(5,677)
(569)
Total
(210,825)
(215,670)
28. Personnel expenses
Accumulated in
Banco Sofisa
Sofisa Consolidated
12/31/2011
Salaries
Benefits
Payroll charges
Training
Fees
Total
51
12/31/2010
12/31/2011
12/31/2010
(38,227)
(6,958)
(14,959)
(163)
(5,806)
(35,498)
(11,786)
(14,615)
(326)
(6,080)
(37,031)
(6,636)
(14,574)
(160)
(5,806)
(30,047)
(5,277)
(12,897)
(305)
(6,080)
(66,113)
(68,305)
(64,207)
(54,606)
29. Headcount per department (unaudited)
Sofisa Consolidated
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
12/31/2010
Operating
111
120
111
120
Sales
102
103
102
103
Financial
8
15
8
15
Investor relations
1
2
1
2
Support and control
201
170
190
158
Credit support
22
31
22
31
Formalization and collection
37
30
37
30
8
9
8
9
Funding support
Controlling
13
15
13
15
Budget management and P&L analysis
3
3
3
3
Compliance/ internal controls / Audit
5
2
5
2
Human resources
4
4
4
4
Legal counsel
7
4
7
4
Ombudsman
1
1
1
1
IT
6
6
6
6
62
65
51
53
Administrative
Sofisa direct
21
-
21
-
Renegotiation and credit monitoring
12
-
12
-
312
290
301
278
Overall total
52
30. Other administrative expenses
Accumulated in
Sofisa Consolidated
12/31/2011
Banco Sofisa
12/31/2010
12/31/2011
12/31/2010
(555)
(3,654)
(1,324)
(2,498)
(221)
(587)
(4,856)
(1,502)
(3,411)
(1,208)
(438)
(3,010)
(1,299)
(11,379)
(119)
(509)
(3,736)
(1,388)
(11,427)
(1,101)
Data processing
Events and public relations
Insurance
Finance system services
Third-party services
Specialized services
Transportation
Travels and lodging
Depreciation and amortization
Other provisions
(4,115)
(11,413)
(601)
(5,702)
(12,923)
(11,362)
(2,719)
(840)
(4,506)
(9,682)
(8,659)
(3,696)
(2,517)
(6,158)
(7,352)
(12,111)
(4,758)
(1,210)
(4,955)
(4,608)
(3,453)
(10,867)
(566)
(4,970)
(12,422)
(11,311)
(2,459)
(830)
(2,070)
(8,881)
(7,536)
(3,324)
(2,511)
(4,916)
(5,865)
(11,579)
(4,200)
(926)
(2,270)
(2,475)
Total
(72,115)
(67,588)
(74,074)
(63,763)
Advertising and publicity
Communication
Asset maintenance and upkeeping
Rent
Charitable contributions
31. Tax Expenses
Accumulated in
Sofisa Consolidated
12/31/2011
Federal expenses
Cofins
Pis
Other
12/31/2010
Banco Sofisa
12/31/2011
12/31/2010
(20,223)
(13,923)
(2,323)
(3,977)
(29,616)
(19,830)
(3,306)
(6,480)
(17,990)
(12,115)
(1,969)
(3,906)
(23,941)
(15,892)
(2,582)
(5,467)
State Expenses
(2,059)
(332)
(2,051)
(323)
Municipal expenses
(2,338)
(2,674)
(2,227)
(2,190)
(24,620)
(32,622)
(22,268)
(26,454)
Total
53
32. Other operating revenues
Accumulated in
Sofisa Consolidated
Banco Sofisa
Reimbursement of expenses
Revenues from sale of subsidiaries’ assets
Monetary variation gains
Miscellaneous
Total
12/31/2011
12/31/2010
12/31/2011
12/31/2010
1,861
3,518
375
6,462
241
3,625
605
6,904
286
208
6,130
223
421
2,256
12,216
11,375
6,624
2,900
a) On
April 7, 2011 the sale of the subsidiary Rede Matriz Serviços e Franquias Ltda. was
concluded. The effects of this transaction were included in the P&L for the year.
33. Other operating expenses
Accumulated in
Sofisa Consolidated
Banco Sofisa
12/31/2011
12/31/2010
12/31/2011
12/31/2010
(7,471)
(7,110)
(13,364)
(19,787)
(5,740)
(7,062)
(11,886)
(13,847)
Expenses with depreciation – Rural Product Bills
(CPR)
Expenses with operating provisions
Sundry
Financial agent – return
(10,568)
(2,685)
(11,184)
(2,584)
(10,740)
(21,770)
(10,568)
(4,057)
(11,184)
(2,584)
(6,682)
(24,720)
Total
(39,018)
(68,245)
(38,611)
(59,719)
Discounts granted
Expenses with commissions
54
34. Risk management
The risk management, performed in a well structured manner, encompasses the assessment and control of credit,
market, liquidity and operating risks incurred by the Bank and its subsidiaries.
This is a continuous process, permanently reviewed and serves as the basis for the Group’s strategies.
a.
Credit risk
Credit risk is associated to losses and uncertainties regarding the capacity of a client or counterparty to
comply with their financial obligations towards the Institution.
Sofisa’s management aims at maximizing the risk/asset return ratio, maintaining the quality of credit
portfolio at levels that are appropriate to the market segment where it operates. Its strategy is focused on the
creation of more value for its shareholders than the minimum return adjusted to risk.
The credit policy is established based on internal factors, such as client rating criteria and portfolio growth
analysis, delinquency levels recorded, return rates, quality of portfolio and economic capital allocated; and
external factors, related to the economic environment, both in Brazil and abroad. Additionally, Sofisa
continuously evaluates its credit portfolio to identify objective evidence of loss in the fair value of its assets.
b.
Market risk
It is the risk associated with the probability that the variation in the value of assets and liabilities, caused by
uncertainties regarding changes in prices and market rates, will generate losses for the institution.
VaR (Value at Risk) is a statistical method used to quantify market risk and was calculated for the Bank’s asset
and liability positions based on a 99% confidence interval and a 1-day settlement period.
At December 31, 2011, the consolidated VaR for operations with interest risk at fixed rates in domestic currency
totaled R$ 702 thousand.
For more information, please check Banco Sofisa’s IR webpage (www.sofisa.com.br/ir/).
c.
Liquidity risk
It is the risk that the institution will not have sufficient net resources to meet its financial commitments the
moment they happen, i.e., the possibility of a term or volume mismatch between expected receivables and the
payables in its cash flow.
To manage cash liquidity in domestic and foreign currencies, future disbursement and receipt assumptions are
established based on statistical and economic-financial models, which are monitored daily by the control and
liquidity management areas. As part of the daily controls, minimum cash and liability concentration limits are
established, allowing preliminary actions to be taken to ensure that the institution has sufficient resources to meet
its financial commitments.
d.
Operating risk
Sofisa’s operating risk management structure, available on its IR webpage, is incumbent upon the management’s
internal controls, which is subordinated to the CEO.
Sofisa’s operating risk management structure is going through improvements, mainly focusing on identifying,
assessing, monitoring, controlling and mitigating risks whose occurrence might generate operating losses to the
Organization, occurring from failures, deficiencies or inadequacy of internal processes, people and systems, or
external events, without losing sight of the legal risks associated with the execution of contracts, processes or
unfavorable court decisions.
55
34. Risk management -- Continued
With this purpose, the unit responsible for operating risk management uses the Basic Indicator Approach (BIA)
and appropriate mechanisms to support monitoring, which have been equally reviewed, such as: Risk matrix and
Action Plans for control improvements, Risk Indicators, Loss Basis, Capital Allocation, performance of
Compliance Agents, monitoring of operating risks occurrences and clients’ complaints, notices and external
frauds, Operating Risk Management Policy, Management Reports and Business Continuity Plan.
e.
Mark-to-market and foreign exchange exposure for consolidated gains and losses
At December 31, 2011, the accounting values related to financial instruments, whether reported or not in the
balance sheet, when compared with the amounts which could be obtained from negotiations on an active market
or in absence of such, with net present value of future cash flows adjusted based on the market interest rate are as
follows:
Operations with pre-fixed interest rate risks denominated in local currency
Mark-toMarket (
R$ 000)
Curve value
(R$ 000)
Operation
Average Rate
(% p.m.)
Duration
(calendar
days)
Amount in stress
ambience (R$ 000)
Var 99% 1 day (R$
000)
Assets
Credit purchases
59,744
86,560
1.36
291
86,066
Securities and checks discounted
19,592
19,858
1.95
40
19,832
2
Working capital
81,356
83,986
1.22
187
83,464
62
Securities
25,555
26,494
1.13
633
24,519
71
Financial
107
262,033
299,549
1.84
413
298,926
540
Leasing
86,973
93,863
1.54
303
93,164
123
20,791
20,725
0.54
35
20,702
2
Futures market
15,435
15,435
0.94
470
15,078
33
571,478
646,471
1.56
641,751
939
Total assets
Liabilities
Swap
78,058
78,925
0.98
239
78,259
80
130,008
141,509
1.07
917
145,473
525
CFI assignment
31,864
33,971
1.52
267
33,693
39
Leasing assignment
46,391
48,313
1.49
177
47,929
36
Total Liabilities
286,320
302,718
1.04
305,355
680
Balance (NET)
285,158
343,753
336,396
260
CDB/CDI
Interest rate curve for the calculation of the mark to market value
Rate (% p.a.)
Days
standard
(252)
32
60
90
151
180
270
360
720
1082
2160
2286
3602
5580
10.49
10.03
10.25
9.94
9.91
9.88
9.84
10.32
10.59
10.84
10.83
11.00
11.01
Interest rate curve used for calculation of the mark to market value in a stress ambience
Rate (% p.a.)
56
Days
standard
(252)
32
60
90
151
180
270
360
720
1082
2160
2286
3602
5580
9.24
8.78
9.00
8.69
8.66
7.88
7.84
8.32
8.34
8.59
8.58
8.75
8.76
Operations with pre-fixed interest rate risk denominated in US dollar
Operation
Curve value
(R$ 000)
Mark-to-Market (R$
000)
Average Rate (%
p.a.)
Duration
(calendar days)
Amount in stress
ambience (R$ 000)
Assets
Swap Dollar
306,261
308,810
3.65
929
292,466
Swap Euro
45,678
46,281
3.93
539
44,422
67,150
67,150
-
1
67,146
5,060
5,133
5.63
167
5,015
192,111
209,758
6.59
1,699
179,205
Resolution 63
Others
FINIMP financing / Letter of Credit
BNDES financing
418
418
-
-
418
62,598
63,410
7.11
94
62,280
105
109
9.43
229
103
9,833
9,833
-
1
9,832
Securities financing
25,789
25,828
2.84
98
25,650
Advances on foreign exchange contracts ACC/ACE
66,114
66,834
6.63
91
781,115
803,561
Futures contracts on BMF
157,453
157,486
1.93
33
157,165
Foreign onlending
347,538
334,473
0.84
640
335,775
93,806
92,752
1.52
334
92,120
Issue of Notes - Cayman
4,054
4,054
-
-
4,054
Issue of Linked Notes - ADR
9,599
9,599
-
-
9,599
Exchange sold pending settlement
51,265
51,216
-
30
51,179
Other obligations
67,234
67,239
0.41
18
67,169
BNDES financing
104
106
4.43
229
103
66,590
66,590
1.39
309
65,479
Total liabilities
797,643
783,514
782,644
Total
(16,528)
20,047
(30,320)
Variable income securities - ADR
Total Assets
65,787
752,323
Liabilities
Eurobond
Financed securities
Interest rate used for the calculation of the mark to market value
Days
32
60
90 120 180
Rate (% p.a.)
1.42 2.04 2.28 2.40 2.51
270
2.65
361
2.80
720
3.11
1082
3.54
Interest rate curve used for the calculation of the mark value in stress ambience
Days
32
60
90 120 180 270 361 720
Rate (% p.a.)
3.42 4.04 4.28 4.40 4.51 4.65 4.80 5.11
1082
5.54
Amounts do not include overdue operations or contracts.
Market values for operations with risk calculated by local pre-fixed interest rates and by those denominated in US
Dollars were calculated by using BM&F Bovespa swap data as at December 31, 2011. However, Government bonds
were calculated mark-to-market in accordance with ANBIMA (National Association of Financial Market Institutions)
on the same date.
57
f) Sensitivity analysis
Sensitivity Analysis Chart
Reporting date: 12/31/2011
(Amounts in R$ 000, Except of percentage on Net Equity)
Risk Factors
Exposure
Position subject to variation in:
Scenarios
2
3
4,530
(10,998)
(21,542)
foreign exchange coupon rates
7,086
(16,598)
(31,781)
foreign exchange rate
1,653
(4,132)
(5,785)
Share prices
(773)
(1,739)
(2,946)
Total (without correlation)
12,496
(33,467)
(62,054)
Percentage on net equity
1.64%
-4.39%
-8.13%
Prefixed
pre-fixed interest rates in reais
Foreign Exchange Coupon
Foreign Currency
Variable income
1
Pursuant to CVM Ruling No. 475/2008, the sensitivity analysis set out herein focused on trading and banking
portfolios of Sofisa.
The scenarios used as a base for the sensitivity analysis may be described as follows:
Scenario 1: probable scenario, it is based on market data on December 31, 2011. It is worth mentioning that, due to
conservativeness, a 10% gap over market prices was embedded in this scenario.
Scenario 2: 25% increase on risk factors observed in scenario 1.
Scenario 3: 50% increase on risk factors observed in scenario 1.
It is important to point out that the result of each scenario reflects a static portfolio position for December 31, 2011.
35. Basel Accord
By means of Notice No. 12746 of December 9, 2004, amended by Notice No. 16137 of September 27, 2007, the
Central Bank of Brazil (BACEN) established procedures for implementing the Basel II Accord, which adopts more
appropriate criteria to handle risks and capital allocation associated with the exposure of financial institution
operations, improving the approach established by Rule No. 2099/94.
As from July 1, 2007, with wording given by Rule No. 3490/07, the Required Reference Equity (PRE) has been
calculated through the sum of the following portions:
PRE = Pepr + Pcam + Pjur + Pcom + Pacs + Popr
At December 31, 2011, the total market, credit and operating risk portions in relation to the Required Capital
Base stated an index of 20.63 (19.32 at December 31, 2010) according to the method established by BACEN.
58
35. Basel Accord
Basel II - December /11
Financial conglomerate
Base Balance
Exposure
Credit Risk - Pepr
Credit Operations - Companies
Basel II
368,423
1,736,825
1,712,804
188,408
Credit Operations - Retail
257,343
191,668
21,083
Tax Credit
235,654
574,986
63,248
2,279,191
869,843
95,683
Other
Foreign exchange rate risk - Pcam
Interest rate risk (pre) - Pjur1
Interest rate risk (foreign exchange) - Pjur2
Interest rate risk (inflation rate) - Pjur3
Commodities risk - Pcom
Shares risk - Pacs
Operating risk - Popr
3,209
1,637
1,730
1,387
29,289
PRE
405,675
PR
Level I
Level II
760,885
761,672
(787)
Basel II *
Rban Installment
Margin/(insufficiency)
* Basel = PR *100/ [PRE/F]
F = 0.11
59
20.63
72,603
282,607
36. Additional information on the subsidiaries of Banco Sofisa S.A.
For a more comprehensive analysis of the economic and financial situation of the Sofisa Group, we provide below
accounting information on subsidiaries owned by Banco Sofisa S.A.
a.
Balance sheets on subsidiaries at December, 31 2011
Consolidated
Sofisa
Serviços
Gerais de
Adm. Ltda
Consolidated
Sofisa
Corretora
Seguros
Ltda
Sofisa S/A
C.F.I
Sofisa
Investment
Ltd
Assets
Current and long term receivables
Financial investments
Other credit
Permanent
60,058
62
57,812
2,184
18
1,940
214
1,523
203
-
110,524
196
85,309
25,019
10,765
56,628
25,035
16,571
15,022
-
Total assets
60,076
1,940
121,289
Liabilities
Current and long term payables
Other liabilities
Net Equity - Capital and reserves
1,857
1,852
58,219
122
122
1,818
Total liabilities
60,076
Accumulated result for the period
Interest income
Interest expenses
Other operating income (expenses)
Nonoperating income (expenses)
Operating income
Income and social contribution taxes
Profit for the period
60
La Isla
Participações e
Empreendimentos
Imobiliários Ltda.
Sata
Soc.de
Ass. Tec.
Adm.S/A
188,959
2,366
108,413
78,180
43,013
56,628
41,614
41,614
9,769
9,769
111,520
9,638
9,638
46,990
41,614
49,672
49,672
182,300
1,940
121,289
56,628
41,614
231,972
3,296
(598)
2,698
(906)
88
187
275
(78)
10,058
(2,907)
(2,274)
(197)
4,877
(1,805)
7,052
(1,119)
(14)
5,919
-
-
5,549
8,933
14,483
(3,070)
1,792
197
2,875
5,919
-
11,413
231,972
36. Additional information on the subsidiaries of Banco Sofisa S.A.
b. Related parties
The operations among related parties eliminated in consolidation are as follows:
12/31/2011
12/31/2010
2,563
80,470
159,636
4,786
16,740
2,490
8,571
8,605
8,208
2,402
58,506
133,683
2,578
15,406
4,800
2,563
75,141
161,583
20,351
800
(8,431)
(86,332)
(140)
(4,786)
(4,800)
2,402
58,506
133,683
800
(2,578)
(15,406)
(4,800)
Assets/income
Cash and banks
Interbank deposit certificate
Credit operations
Other credits
Prepaid expenses
Income from interbank deposits
Income from fixed-income securities
Other revenues
Liabilities /expenses
Demand deposits
Interbank deposits
Time deposits
Obligations abroad
Other debits
Interbank deposits expenses
Time deposits expenses
Expenses with obligations abroad
Expenses with credit loan
Other expenses
Operations between related parties are carried out on an arm’s length basis.
c.
Relevant operations carried out with direct subsidiaries
Data of subsidiaries at 12/31/2011
Subsidiaries
Sofisa Serviços Gerais de Administração Ltda
Sofisa S.A. Crédito, Financiamento e Investimento
Sata Sociedade e Assessoria Técnica e Administrativa S/A
CVM Rule No. 247/96 Article 20 Item III
61
Corporate
Taxpayer’s ID CNPJ
06.990.721/0001-72
03.581.115/0001-05
08.257.293/0001-07
43.347.301/0001-07
Number of Units
of interest/shares
315,179,965
209,999
7,500,000
315,734,177
Type
ON
ON
Percentage of
interest in total
voting capital
99.99%
99.99%
100%
100%
36. Additional information on the subsidiaries of Banco Sofisa S.A. -Continued
c.
Relevant operations carried out with direct subsidiaries -- continued
Sofisa Serviços Gerais de Administração Ltda
Balance at 12/31/2011
Cash and cash equivalents (Check account)
Marketable Securities (CDB)
Value
2
57,785
Term
Without maturity
7/2/2013
Rate
0%
104% CDI
Guarantees,
Collaterals,
Mortgages
None
None
Value
211
779
744
Term
Without maturity
4/19/2013
8/23/2013
Rate
0%
104% CDI
104% CDI
Guarantees,
Collaterals,
Mortgages
None
None
None
Sofisa S/A Crédito, Financiamento e Investimento
Interbank deposits
Value
192
75,141
Term
Without maturity
8/29/2012
Rate
0%
13.80% p.a.
Guarantees,
Collaterals,
Mortgages
None
None
Sata Sociedade e Assessoria Técnica e Administrativa S/A
Guarantees,
Collaterals,
Value
Maturity
Rate
Mortgages
622
Without maturity
0%
None
15,308
8/21/2012
104% CDI
None
17,905
11/19/2012
104% CDI
None
5,080
2/18/2013
104% CDI
None
4,306
5/3/2013
104% CDI
None
15,977
7/16/2013
104% CDI
None
1,460
3/8/2013
104% CDI
None
509
10/22/2013
104% CDI
None
813
5/6/2013
104% CDI
None
d. Credit assignment
In the quarter the Bank sold credit operations through a purchase and sale agreement with a shareholder, in the
amount of R$32,025 corresponding to the book balance of the operations as of sale date. The amount was received
on demand on the operation date. The impact on P&L for the period was of R$ 2,088 referring to reversal of the
allowance for loan losses.
62
37. Consolidated balance sheet by currency and foreign exchange
exposure
Sofisa Consolidated
Balance
ASSETS
Short term interbank investments
Open market investments
Interbank deposits
Investments in foreign currencies
Marketable securities and derivative financial instruments
Credit and leasing operations
Other assets
Other
Permanent
Investments
Deferred
Intangible
Total assets
LIABILITIES
Deposits
Demand deposits
Interbank deposits
Time deposits
Deposits for investments
Funds obtained in the open market
Funds from acceptance and issue of securities
Borrowings and onlending
Other obligations
Other
Deferred income
Net equity
Capital and reserves
Total liabilities
12/31/2011
Currency
Local
Balance
Foreign(1)(2)
12/31/2010
Currency
Local
Foreign(1)(2)
47,931
774,499
681,880
67,103
25,516
823,888
14,075
1,925,637
544,818
77,996
466,822
101,873
42,522
49,977
3,241
6,133
4,232,721
6,292
748,983
681,880
67,103
621,451
14,075
1,857,849
452,880
11,857
441,023
101,873
42,522
49,977
3,241
6,133
3,803,403
41,639
25,516
25,516
202,437
67,788
91,938
66,139
25,799
429,318
29,517
130,970
20,005
103,782
7,183
1.292.828
38,793
2,296,046
514,748
25,733
489,015
70,801
6,825
54,163
4,260
5,553
4,373,703
7,629
123,787
20,005
103,782
1.080.703
38,793
2,240,237
469,962
1,523
468,439
70,801
6,825
54,163
4,260
5,553
4,031,912
21,888
7,183
7,183
212,125
55,809
44,786
24,210
20,576
341,791
2,359,884
71,399
23,746
2.264.739
11,254
40,829
2
611,208
16,344
395,086
19,232
375,854
34,989
763,125
763,125
4,232,721
2,359,884
71,399
23,746
2.264.739
11,254
40,829
2
61,588
16,344
304,276
7,876
296,400
34,989
763,125
763,125
3,592,291
549,620
90,810
11,356
79,454
640,430
2,329,878
124,674
44,229
2160,933
42
45,149
19,419
80
663,331
38,321
506,495
1,882
504,613
160
770,870
770,870
4,373,703
2,329,878
124,674
44,229
2.160.933
42
45,149
19,419
80
98,439
38,320
432,423
1,109
431,314
160
770,870
770,870
3,734,738
564,892
1
74,072
773
73,299
638,965
Net position of assets and liabilities
Derivatives - net position
Net foreign exchange position
(211,112)
194,558
(16,554)
(297,174)
(292,706)
(4,468)
(1) Amounts expressed and/or denominated in US dollars
(2) Amounts calculated based on the PTAX buy rate of 12/31/2011 and 12/31/2010
38. Other information
a. Liabilities due to collateral, sureties and other guarantees totaled R$ 72,491 at December 31, 2011
(R$ 36,555 at December 31, 2010).
b. The Bank and its subsidiaries have insurance agreements in force, at an amount considered sufficient to
cover claims on the fixed assets and civil responsibilities
63
38. Other information -- Continued
c. Banco Sofisa S.A. is headquartered at Alameda Santos, 1.496 – city and state of São Paulo, with
branches in Campinas/SP at Av. José Bonifácio Coutinho Nogueira, 150, in Belo Horizonte/MG at Rua
Paraíba, 1000, in Rio de Janeiro/RJ at Avenida Rio Branco, 134-A, in Curitiba/PR at Rua Benjamin
Lins, 935, in Salvador/BA at Rua das Alfazemas, 761, in Goiânia/GO at Rua 09 nº 558, in Porto
Alegre/RS at Avenida Soledade, 550, in Uberaba/MG at Praça Rui Barbosa, 300, in Londrina/PR at
Av. Higienópolis, 32, in Joinville/SC at Rua Alexandre Dohler, 129, in Fortaleza/CE at Av. Santos
Dumont, 2626, in Recife/PE at Rua Antonio Lumack do Monte, 128, in Riberão Preto/SP at Av.
Presidente GetulioVargas, 2001, in São José dos Campos/SP at Av. Dr. João Guilhermino, 429, in São
José do Rio Preto at Rua Coronel Spínola de Castro, 3635, in Alphaville/SP at Alameda Rio Negro,
585, in Belém/PA at Av. Governador José Malcher, 168, in Manaus/AM at Av. Djalma Batista , 34 in
Caxias do Sul/RS at Rua Os Dezoito do Forte, 2000, in Sorocaba/SP at Av. Antonio Carlos Comitre,
540, in Guarulhos/SP at Rua Silvestre Vasconcelos Calmon, 200, and in Londrina/PR at Rua Ayrton
Senna da Silva, 550.
d. Banco Sofisa S.A. received the AA- rating from Austin Rating, Aa3.br/Br (national) ratings from
Moody’s Investor Service and Low Risk Mid-term ratings and Excellent Disclosure from RISKbank.
e. Management fees
The maximum compensation approved in the Annual General Meeting of 2011 totaled R$ 12,000
(R$12,000 in 2010), of which R$ 7,969 (R$ 5,997 in December 31, 2010) was distributed to the
management up to December 31, 2011, as follows:
12/31/2011
Board of Directors
Fees
Bonus/Profit sharing plan (PLR)
Social charges (INSS + FGTS without fees)
Total
2,820
635
3,455
Statutory Executive
Board
Supervisory
Board
2,536
2,314
914
5,764
210
47
257
Audit
committee
Total
240
54
294
5,806
2,314
1,650
9,770
12/31/2010
Board of Directors
Fees
Bonus/Profit sharing plan (PLR)
Social charges (INSS + FGTS without fees)
Total
2,722
612
3,334
Statutory Executive
Board
2,934
3,953
1,087
7,974
Supervisory
Board
183
41
224
Audit
committee
Total
240
54
294
Short-term benefits granted to managers are basically represented by wages, salaries and social security
contributions, paid leave and sick leave, profit sharing and bonuses (if payable within twelve months after
the end of the year) and non-monetary benefits (such as car and health insurance).
64
6,079
3,953
1,794
11,826
i) Post-retirement benefits
Banco Sofisa does not offer post-retirement benefits
ii) Share-based payment
In 2007, Banco Sofisa established a long-term share-based incentive program for mangers and eligible
employees (beneficiaries), as per Rule of the Extraordinary General Meeting held on July 20, 2007, with
the purpose of attracting, keeping and motivating a team of skilled professionals. The program has the
following features. The program has the following features:
a) The option may be exercised by beneficiaries in 5 equal annual tranches, each one is equivalent to 20%
out of the total option granted (“annual tranches”) up to June 30, 2008. Each subsequent annual tranche
may be fully or partially exercised up to the final and extinguishing 7-year term, as of the execution of
the Agreement;
b) The exercise price to be paid in cash was equivalent to R$ 12.00 on May 25, 2007, restated by IGPM up
to the option exercise date;
c) The beneficiary may only sell, transfer or, otherwise dispose of subscribed or acquired shares after the
minimum unavailability term of 2 years, as from the share subscription or purchase;
d) 5,600,000 shares were granted to Management and eligible employees.
Although the conditions of the Plan are still in force, once Management did not amend its conditions, no
beneficiaries have exercised and there is no expectation of exercise of any options up to date due to current
market conditions of Sofisa shares that had their price substantially reduced compared to the issue price.
iii) According to current regulations, financial institutions shall not grant loans or advance payments to:
• any individuals or legal entities that control the institution or any jointly controlled legal entity, or any
Executive Officers, Members, members of the Audit Committee or any immediate family members or
legal entities of the aforesaid individuals;
• any entities controlled by the institution; or
• any entities of which the institution is a direct or indirect shareholder of at least 10% of Capital or more
than 10% of the institution’s capital.
As per the regulations in force, no loans or advances shall be granted to any subsidiaries, executive officers,
and members of the Board of Directors, of Audit committee or relatives.
65
iv) Shareholding
The shareholding of Board of Directors’ members, Controlling Shareholders and of the Board of Executive
Officers in Banco Sofisa breakdown is as follows:
Management
Common
Shares
Common
Shares (%)
Controlling shareholder
Board of Directors
Executive Board
Other
Total
89,019.744
1.800
8,118.606
97,140.150
91.641%
0.002%
8.358%
100.00%
12/31/2011
Preferred
Preferred
Shares
Share (%)
12,934.260
713.000
633.300
26,326.711
40,607.271
31.852%
1.756%
1.560%
64.833%
100.00%
Total
Shares
Total
Shares (%)
101,954.004
714.800
633.300
34,445.317
137,747.421
74.015%
0.519%
0.460%
25.006%
100.00%
"Amounts expressed in thousands of shares"
12/31/2010
Management
Controlling shareholder
Common
Common
Preferred
Preferred
Total
Total
Shares
Shares (%)
Shares
Share (%)
Shares
Shares (%)
89,019.744
91.641%
12,934.260
31.852%
101,954.004
74.015%
1.800
0.002%
713.000
1.756%
714.800
0.519%
-
0.000%
633.300
1.560%
633.300
0.460%
Other
8,118.606
8.358%
26,326.711
64.833%
34,445.317
25.006%
Total
97,140.150
100.00%
40,607.271
100.00%
137,747.421
100.00%
Board of Directors
Executive Board
66
2011 MANAGEMENT REPORT
MESSAGE FROM BOARD OF DIRECTORS
The year 2011 was guided by caution. We chose a conservative approach while expanding our businesses and,
as a result, closed the year buffered by a capital adequacy Basel ratio of 20.6% and net cash of almost R$1.5
billion.
The expansion of the loan portfolio in our core segment remains imperative for boosting results and we are
aware that we cannot maintain our status as "the world’s most capitalized bank” indefinitely as it significantly
reduces our results. However, we still believe that our segment is undergoing a period of important changes,
especially in the positioning of our competitors. After what we identified as a phase of exaggerated expansion,
a few major players in the segment corrected their course and have slowed down, which can affect companies’
ability to roll over debt and, consequently, increase the risk of defaults. In the fourth quarter, especially, we
noticed high debt levels among prospective clients, which forced us to postpone the expansion of our loan
portfolio.
In this context, we expect much better results in 2012 despite the moderate expansion of our loan portfolio,
thanks to productivity gains and the continuous reduction in costs related to the portfolio break-up of the
vehicle and payroll loan operations, which were discontinued as of May 2010.
We are immensely pleased with the tremendous interest shown by the public from all over Brazil for the
products offered by Banco Sofisa Direto, our online bank for individuals. Launched in June 2011, it already
boasts of satisfactory results in terms of transactions and account openings. We believe in the differentiation
potential brought by Sofisa Direto to Banco Sofisa, thanks to its innovative proposition, and hence will continue
investing in its development by offering new lines of financial products with excellent competitive advantage.
Alexandre Burmaian
Chairman of the Board of Directors
CREDIT PERFORMANCE IN BRAZIL
According to the Central Bank of Brazil, at the end of
2011, the stock of credit in the financial system,
including operations with both marked and unmarked
funds, stood at R$2,030 billion, for growth of 19.0% in
the last 12 months. The Total Credit/GDP ratio stood
at 49.1%, up from 45.2% in December 2010. The
stock of credit operations to companies reached
R$1.090 billion in December 2011, for growth of
17.5% from December 2010. In all months of 2011,
growth in the rolling 12-month periods remained
above 18.2%, which indicates that companies are
once again demanding funds from commercial Banks
in 2011, in which the cumulative growth of 12 months
has reached 13.0%.
COMPANY PROFILE
Banco Sofisa is one of the most traditional financial
institutions in Brazil. Founded in 1961 under the
name Sofisa S.A. Crédito, Financiamento e
Investimentos, it pioneered the development and
continually enhanced the business of lending to
individuals. In 1990, it expanded its footprint in
Brazil's financial world with a new name: Banco Sofisa
S.A.
67
Since then, Banco Sofisa has played a prominent role
in its core business segment: loans to the small and
midsized companies, the so-called middle-market.
This segment focuses on companies with annual
revenue between R$5 million and R$300 million.
Sofisa's excellent customer service is assured by
special structures that place a special emphasis on
these customers' relationship with the Bank. These
structures are formed by managers especially trained
to offer solutions and comprehensive advice on the
products and services that best meet the special
characteristics and business demands of each
segment.
Sofisa’s operations are underpinned by a policy of
granting loans based on strict analysis of
fundamentals, and supported by strong collaterals
and low concentration of risks, with maximum credit
exposure per economic group limited to R$30 million
(4.0% of Shareholders’ Equity).
The Bank currently has R$763.1 million in
shareholders’ equity, R$4.2 billion in assets and a
national footprint that includes 09 Brazilian states
and a network of 16 branches.
Over the 50 years since its founding, Sofisa has
become synonymous with solidity and a tradition of
service excellence. Today it has a wide range of loyal
clients, to which it serves as a trusted financial
partner that understands the business of its clients
and participates in their daily activities.
MATERIAL EVENTS
Interest on Equity for 2010 - On March 17, 2011, the
Bank paid complementary IOE for fiscal year 2010 in
the gross amount of R$4.4mn, which was approved by
the Board of Directors on February 28, 2011, and
ratified
by
the
Annual
and
Extraordinary
Shareholders’ Meetings held on April 29, 2011.
Interest on Equity for 2011 - During the year, the
Bank prepaid the compensation to shareholders
related to fiscal year 2011, as follows: a) On June 08,
2011, it paid IOE in the gross amount of R$6.0mn,
which was approved by the Board of Directors on Mai
23, 2011; b) On August 29, 2011, it paid IOE in the
gross amount of R$29.2mn, which was approved by
the Board of Directors on August 19, 2011.
Divestment of Subsidiary - On April 7, 2011, it was
concluded the sale of the subsidiary Rede Matriz
Serviços e Franquias Ltda. to Gerador Assessoria
Financeira Ltda., a company owned by the controlling
shareholders of the group Banco Gerador, for
approximately R$12 million.
Launch of Sofisa Direto, an online division for
individuals - On June 03, 2011, Banco Sofisa launched
Sofisa Direto, an online bank focused on individuals.
The model, unprecedented in Brazil, is totally free
from fees or tariffs and offers the same returns
available to large clients for amounts between R$1
and R$1 million.
SUBSEQUENT EVENTS
Interest on Equity for 2011 - On January 16, 2012,
the Board of Directors approved the payment of IOE
for fiscal year 2011 in the gross amount of R$8.0mn,
to be paid to Shareholders by January 26, 2012.
OPERACIONAL HIGHLIGHTS
Total Loan Portfolio
At the close of 2011, the loan portfolio, including
credit assignments with recourse, totaled R$2.3
billion, representing contraction of 17.3% from 2010.
This contraction was led by the 47.9% (4Q11/4Q10)
reduction in the Consumer Finance segment loan
portfolio, including credit assignments with recourse,
which ended the year with a balance of R$467.3
million.
Meanwhile, the SME portfolio totaled R$1.8 billion in
December 2011, for a reduction of 2.5% from
December 2010.
68
With regard to the quality of the total loan portfolio,
its largest debtor represented 1.4% of the total
portfolio and 4.0% of shareholders’ equity, while the
highest share represented by a single sector was
9.4%. In terms of portfolio breakdown by loan
maturity, short-term loans continued to account for
the largest share, with 79.0% of the Bank’s total
operations (SME and Consumer Finance segments)
maturing within 1 year.
In the period, 92.6% of the total loan portfolio,
including credit assignments with recourse, was rated
from “AA" to "C". The percentage of operations
covered by collaterals reached 95.3% of the total loan
portfolio, including credit assignments with recourse.
Loan Operations | SME
Loans to the SME segment totaled R$1.8 billion in
December 2011, corresponding to 79.4% of the total
loan portfolio in the 2011 fiscal year, for a reduction
of 2.5% from December 2010.
Loan Operations | Consumer Finance
Consumer Finance operations, including operations
with recourse, totaled R$467.3 million in December
2011, representing 20.6% of the total portfolio, and
contracting by 47.9% from 2010.
In view of the termination of the loan origination
operations as of May 2010, we provide estimates for
the remaining balances of the Consumer Finance
portfolio in the coming years: R$209 million
(Dec/2012), R$113 million (Dec/2013) and R$78
million (Dec/2014).
Delinquency and Provisions for Losses
Total expenses with provisions for loan losses were
R$39.2 million in 2011, a reduction of 61.2%, or
R$61.9 million, from the R$101.1 million recorded in
the last year.
Funding
Funding totaled R$3.1 billion at the end of 2011,
decreasing by 3.1% from the R$3.2 billion recorded in
December 2010.
Term deposits, including Agribusiness Letters of
Credit and Real Estate Letters of Credit , accounted
for 47.5% of total deposits (64.2% in 2010), totaling
R$1.1 billion, for a decrease of 24.5% in relation to
2010. Credit assignments under Resolution 3,533 of
the Central Bank of Brazil totaled R$23.9 million,
down 73.8% on the R$91.4 million recorded at the end
of 2010.
In 2011, the Bank registered a balance of R$1.2
billion in operations involving Certificates of Deposits
with Special Guarantees (DPGE), with an average
term of 898 days, for growth of 73.7% from 2010.
Note that these operations have the objective of
matching long-term assets and liabilities and the Bank
still has an unused issue limit of R$2.4 billion.
FINANCIAL HIGHLIGHTS
Net Income
Banco Sofisa ended the year 2011 with a net income
recorded net income of R$27.2 million, 64.3% lower
than the R$76.0 million recorded in 2010. Excluding
employees’ profit sharing, net income amounted to
R$37.5 million in 2011, 56.9% lower than the R$87.0
million recorded in the same period last year.
Gross Income from Financial Intermediation
Gross Income from Financial Intermediation was
R$181.5 million in 2011, decreasing by 27.1% from the
figure recorded in the same period last year.
Administrative Expenses
Administrative expenses amounted to R$138.2 million
in 2011, a increase of 1.7% in relation to the same
period last year.
BALANCE SHEET HIGHLIGHTS
Total Assets
Banco Sofisa’s total assets ended the year 2011 at
R$4.2 billion, down 3.2% from R$4.4 billion at 2010.
Shareholders’ Equity
Sofisa’s shareholders' equity stood at R$763.1 million
in December 2011, a decrease of 1.0% from the
R$770.9 million recorded in December 2010.
The balance of R$763.1 million in December 2011 was
mainly impacted by the results in the period of
R$27.2 million and provisions for Interest on Equity of
R$38.9 million.
Basel Ratio
O Banco Sofisa ended the year 2011 with a capital
adequacy ratio (Basel II) of 20.6%, up 1.3 p.p. from
the 19.3% recorded in the same period last year.
CENTRAL BANK CIRCULAR 3,068/01
Banco Sofisa declares that it has the financial
capacity and intent to hold until the maturity date
the securities classified under “Hold to Maturity” in
the amount of R$544.2 million, which accounts for
65.6% of total securities.
69
ARBITRATION CLAUSE
The company is subject to arbitration in the Market
Arbitration Chamber, as per the Arbitration Clause
included in its Bylaws.
RATINGS
The credit-rating agencies maintained Banco Sofisa’s
position, reflecting the excellent quality of its assets,
the conservative policy adopted by its Management,
its vast expertise in the SME segment, as well as its
healthy liquidity and capitalization
Aa3.br/Br-1 (domestic)
Low Risk Mid Term
Disclosure: Excellent
AA-: Long Term
A-1: Short Term
December/2011
January/2012
November/2011
SHARE PERFORMANCE
On December 31, 2011, Banco Sofisa stock closed at
R$3.85, decrease of 24.2% from R$5.08 on December
31, 2010, which compares with a reduction of 18.1%
in the BOVESPA index in the same period.
INVESTOR RELATIONS
Banco Sofisa’s Investor Relations department is the
Bank’s link with the capital markets, providing direct
interaction
with
the
São
Paulo
Exchange
(BM&FBovespa), the Securities and Exchange
Commission of Brazil (CVM), investors, shareholders,
analysts and stakeholders in general. The department
discloses quality, timely and transparent information,
while also capturing market perceptions to optimize
results, which helps support stock price appreciation
and liquidity.
Therefore, the IR team accomplishes its mission by
drafting quarterly performance reports, material
facts and/or other notices to the market, which are
published in both Portuguese and English, and by
improving and updating its IR website, which is
divided by area of interest. In the year 2011, the
Bank organized and participated in the following
events:
 over 60 individual meetings and/or calls with
Brazilian and foreign analysts and investors;
 8 earnings conference calls;
 1 public meeting with analysts at the Bank’s
head offices sponsored by the Capital Market
Professionals and Investors Association of São
Paulo (APIMEC - SP).
 participation in the 12th Annual CEO Conference
sponsored by BTG Pactual;
 participation in the 3nd Banks and Financial
Services Conference sponsored by Fator
Corretora;
 participation in the XLV Annual Meeting of the
Latin American Federation of Banks (FELABAN
2011).
In the year 2011, eleven Brazilian and international
brokerages covered the Bank's stock.
professional and personal lives and helps them
manage any difficulty that could jeopardize the
health and wellbeing of the employee or their
families; and offers the "Sofisa with You" program,
which represents a direct line of communication
between employees and the Human Resources
department.
CORPORATE GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY
Banco Sofisa has continually enhanced its social and
environmental criteria for lending in the SME
segment, based on the guidelines established by the
International Finance Corporation (IFC), an arm of the
World Bank, by the Dutch development bank
Nederlandse
Financierings-Maatschappij
Vorr
Ontwikkelingsladen N.V (FMO), and by the InterAmerican Development Bank (IDB), a financial
institution and member of the World Bank Group.
On the social front, in the year 2011, Banco Sofisa
continued its participation in programs to provide
assistance and support to children and adolescents
with cancer, through the activities of diagnosis,
treatment, education development and research of
the Grupo de Apoio ao Adolescente e à Criança com
Câncer (GRAACC) and underprivileged communities.
Important actions in this area include the “Crê-Ser”
Program sponsored by Ação Comunitária do Brasil, an
organization accredited by the Children and Youths
Municipal Council. Sofisa contributes to charities of
the hospital ward and the intensive care unit of the
Association of Friends of the Medical Clinic of
UNIFESP-EPM.
HUMAN RESOURCES
Achieving customer satisfaction is one of Sofisa’s
goals, for which it maintains a motivated team of
professionals who are closely aligned with the Bank's
targets and provides them with a healthy corporate
environment.
Given its belief that its employees are its main asset,
Sofisa’s policies and actions encourage an attitude of
care and concern with the team, which is formed by
355 professionals. As a result, the Bank invests in
training, internship and trainee programs, as well as
in the technical and educational development of its
team, especially the partnerships with renowned
institutions (FGV, FIA-USP, HSM Educação, UBS –
União Business School) conducting courses for MBA,
graduate and university courses for employees.
Sofisa conducts semiannual assessments of the
performance of its employees; offers, through its
Healthcare Plan, a confidential and optional Support
Program for its employees that supports them in their
70
Banco Sofisa adopts the best corporate governance
practices and, since December 2008, has listed its
stock on the Level 2 of BM&FBOVESPA, which assures
one of the highest levels of corporate governance.
The main highlights of Sofisa's corporate governance
are:
 60% of members of the Board of Directors are
independent;
 Audit Committee installed since 1995;
 Fiscal Council with one member and one alternate
member elected by the minority shareholders;
 Non-statutory
Compensation
Resources Committee;
and
Human
 100% Tag-along rights;
 Securities Trading Policy;
 Banco Sofisa is bound by the Market Arbitration
Chamber, pursuant to the Arbitration Clause
included in its Bylaws.
RELATIONSHIP WITH AUDITORS
In compliance with CVM Rule 381 of January 14, 2003,
we hereby inform that in 2011 the Bank’s
independent auditors, Ernst & Young Terco Auditores
Independentes, did not provide any services to Banco
Sofisa other than external audit in 2011. The Bank’s
policy on the hiring of independent audit services
ensures that there are no conflicts of interests or loss
of independence or objectivity.
RISK MANAGEMENT
Banco Sofisa is guided by a set of internal and
external standards and procedures that aim to ensure
compliance with governing law and regulations, as
well as with best market practices and the Bank’s
internal policies. Risk management, which is carried
out in a structured manner and through a
continuously monitored process, encompasses the
evaluation and control of any credit, market,
liquidity, and operational risks that could affect
Banco Sofisa and its subsidiaries.
Since 1995, Sofisa has an Audit Committee whose aim
is to examine the internal and external audit
activities and the effectiveness of the internal
controls and compliance systems of the Bank. In
2007, the Audit Committee’s structure was adjusted
to the current corporate governance standards
adopted by the Bank.
PREVENTION AGAINST MONEY LAUNDERING
The Bank adopts an adequate system for controlling
and monitoring its funding and lending transactions,
paying special attention to its registration and backoffice activities, with the purpose of preventing
transactions that could represent breaches of money
laundering regulations, aware of its subsidiary
responsibility to combat such transactions.
More information concerning Banco Sofisa’s risk
management practices can be found in Note 34 to the
Financial Statements or on the Bank's Investor
www.sofisa.com.br/ir
Relations website (www.sofisa.com.br/ir).
DECLARATION FROM THE MANAGEMENT
Pursuant to CVM Instruction 480/09, the Company’s Executive Board declares that it has discussed, reviewed
and agrees with the opinions expressed in the report of the independent auditors and the financial statements
for the fiscal year ended December 31, 2011.
***
71
Summary of the Audit Committee’s Report
1.
The Audit Committee of Banco Sofisa is ruled by its charter, available at the
Website http://www.sofisa.com.br, and its main purpose is to reviewing, prior to their
disclosure, the quality and integrity of the financial statements, monitoring and
evaluating the internal and independent audits, as well as the quality and the
effectiveness of its internal control systems.
2.
The Managements of Banco Sofisa and its subsidiaries are liable for preparing
and ensuring the excellence of these financial statements on a regulatory basis,
regulating, maintaining and improving an effective and consistent internal control
system, managing and monitoring risks and ensuring the compliance with the
applicable rules.
3.
Ernest Young Terco Auditores Independentes is the company liable for auditing
the financial statements and expressing an opinion on the adequacy of these
statements to the equity and financial position of Banco Sofisa, in all material respects
and as on the related internal controls, in accordance with the accounting practices
adopted in Brazil, as well as the Ombudsman services.
4.
The Committee held meetings with internal and independent audits in order to
take cognizance of their performance, the planning of their works, evaluating their
execution and monitoring the implementation of advices on accounting and internal
control improvements. By means of presentations, analysis of documents and answers
to questions, this Committee assessed that works were fairly executed.
5.
Due to works conducted by internal and independent audits and by the internal
control area, as well as the Top Management’s attention, which requires continued
improvements to the internal controls system, the Committee concluded that presently
this system is suitable to the size of the organization, the business complexity and risk
profile which shall be monitored and controlled by it.
6.
Specifically referring to the procedures to draft the financial statements, the
Committee held meetings with the areas in charge of works. Based on these meetings
and on the independent auditor’s report, this Committee concluded that these
statements were prepared with quality and integrity, according to the accounting
practices adopted in Brazil and prevailing rules, fairly reflecting Sofisa's financial, equity
and economic condition as of December 31, 2011.
São Paulo (SP), March 25, 2012.
Antenor Araken Caldas Farias
Geraldo José Gardenali
José Antonio Guarnieri
72

Financial Statements Banco Sofisa SA and Subsidiaries

Transcription

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