Pay-out ratio
The profit for the year distributed to shareholders in the form of dividends. It is calculated as the total dividend divided by total profits.

Performing loan
A loan issued by the bank to a client believed to be solvent and consequently in a position to repay the debt on schedule under the established terms.

Plain vanilla (derivative)
A products whose price is contingent upon that of the underlying asset and is listed on regulated markets.

Preferred convertible bonds
A hybrid capital instrument: a subordinated bond convertible into common shares. This type of bond entitles its holder to collect a fixed coupon only in the event that dividends are distributed by the issuer.

Preferred shares
Securities associated with forms of remuneration linked to market rates characterised by particularly acute subordination, for example the failure to recover interest not paid to the bank during previous years and participation in the bank's losses if they lead to a significant reduction in capital requirements. Supervisory instructions establish the basic conditions under which preferred shares may be included in the core capital of banks and banking groups.

Prepaid card
An instrument issued against advance payment of funds to the issuer and consumable with the issuer (single-use card) or a variety of merchants (general-use cards). It may be based on magnetic strip or microchip technology, which draws on the computing power of a microprocessor embedded in the card.

Price/Book ratio
An indicator that compares the share price with the net equity per share.

Price/Earnings ratio
An indicator that compares the share price with the net earnings per share.

Pricing
Broadly construed, the term generally refers to the methods with which the return and/or the cost of products and services offered by the Bank are calculated.

Primary market
A securities market on which newly issued stocks and bonds are traded between issuers and the first investors.

Private banking
Financial services intended for private customers from the "upper segment" involving global management of financial needs.

Private equity
The activity of investing in venture capital of unlisted companies, typically small or medium in size.

Probability of Default (PD)
Represents the probability that the debtor may default over a period of one year.

Profit warning
An announcement by a listed company that the projected goals will not be achieved.

Project finance
A technique through which business projects are funded according to a projection of the cash flows they will generate. The analysis consists of a series of valuations that differ from those generally applied to the analysis of ordinary credit risks. These valuations include not only a cash flow analysis, but also a technical examination of the project, the adequacy of the sponsors that undertake to carry it out, and the markets on which the product is to be placed.

Public Exchange Offer (OPS)
A public takeover bid in which the price is not settled in cash but rather by transferring other securities (for example, shares of common stock of the bidding company).

Public Tender Offer (OPA)
A public takeover bid, i.e. a technique by which an entity directly contacts a given company's shareholders at large and offers to purchase their shares or bonds over a predetermined period of time and at a price (settled in cash) that typically remains the same for the entire duration of the offer. The offer is contingent upon the acceptance by a number of shareholders representing a predetermined percentage of capital stock. If this condition is not met, the offer automatically fails.

Public Tender and Exchange Offer (OPAS)
A public tender offer involving both purchase and exchange of shares.