Banco ABC Brasil S.A. is a private full-service bank founded in 1989, originating from a joint venture between Arab Banking Corporation and Grupo Roberto Marinho, under the name Banco ABC Roma S.A. From the outset, the institution focused its activities on corporate credit and treasury, targeting medium and large companies. In 1991, a new management team made up of Brazilian executives took over, bringing experience in the local financial segment. In 1997, Arab Banking Corporation acquired Grupo Roberto Marinho’s stake, becoming the controlling shareholder, and the executives came to hold a minority interest, aligning the interests of management and the controlling shareholder. In that same year, the name was changed to Banco ABC Brasil S.A., a designation maintained to this day. The bank’s head office is located in São Paulo, in the Itaim Bibi district, and the institution also has a branch in the Cayman Islands.

Banco ABC Brasil’s shares, traded on B3 under the ticker ABCB4, were included in the Level 2 Corporate Governance segment in 2007, after the initial public offering. This classification implies adherence to differentiated governance practices, with expanded rights for preferred shareholders and a commitment to greater transparency in its relationship with the market. The institution structures its internal governance with committees responsible for credit, treasury, investment and administrative decisions, reflecting a local management partnership model supported by an international controlling shareholder. The bank is regulated and supervised by the Central Bank of Brazil and, as a publicly held company, also by the Brazilian Securities and Exchange Commission (CVM), in addition to being subject to oversight by the Cayman Islands Monetary Authority with respect to its foreign branch.

Banco ABC Brasil’s business model is centered on financial intermediation and the granting of corporate credit, focusing on companies in the C&IB, Corporate and Middle segments. The C&IB segment covers companies with annual revenue above R$ 4 billion; the Corporate segment comprises companies with revenue between R$ 300 million and R$ 4 billion; and the Middle segment includes companies with revenue between R$ 30 million and R$ 300 million. The main line of business is the financial margin generated by credit operations, complemented by revenue from services, guarantees provided, investment banking and insurance brokerage. In 2024, the financial margin accounted for more than 80% of total revenue, with emphasis on the margin from clients and market operations, while service revenue was composed, among other items, of guarantees, investment banking activities and fees related to insurance.

Banco ABC Brasil’s expanded credit portfolio, which includes loans, guarantees provided and private securities, reached R$ 53.171 billion at the end of December 2024, with an increase compared to previous years. The loan portfolio totaled R$ 24.0498 billion at the end of 2024, equivalent to 0.96% of the total balance of loans to legal entities in the Brazilian Financial System, indicating a relevant but not dominant presence in the corporate market. Credit quality is a key aspect of the institution’s strategy, with 96.2% of the loan portfolio classified between AA and C at the end of 2024 and loan loss provisions corresponding to 2.3% of the total portfolio. The bank emphasizes a conservative stance in taking on credit risk and in treasury management, supported by continuous investments in technology, risk control systems and the improvement of operational processes.

Over the years, Banco ABC Brasil has expanded its scope of activity within the corporate segment, adding new products and business areas. In 2013, it began investment banking operations focused on Debt Capital Markets (DCM) and mergers and acquisitions (M&A), helping companies raise funds in the capital markets and make strategic consolidation decisions. In 2019, it began operating in the Middle segment, expanding the addressable market to relatively smaller companies, and added the Project Finance and Equity Capital Markets (ECM) areas to its investment banking platform. In 2020, it added the energy trading activity with the acquisition of a trading company, and launched ABC Link, a distribution channel for financial services through banking correspondents and partner firms. In 2021, it set up an insurance brokerage, and in 2022 it structured the Credit Recovery area, dedicated to the analysis and pricing of non-performing credit portfolios and to receivables management intelligence.

Banco ABC Brasil’s product portfolio covers recurring and non-recurring lines aimed at the corporate market. Among the recurring products, cash management stands out, encompassing payment, collection and transfer solutions. Among the non-recurring products, the bank offers various types of credit in local currency, such as working capital, revolving credit lines, receivables discount, supplier prepayment, Cheque-Empresa, FINAME, onlending of BNDES credit lines, bank credit notes and promissory notes. In foreign currency, it operates with advance on export contracts (ACC) and import financing. It also provides guarantees in the form of endorsements and sureties, foreign exchange transactions, derivatives, investment banking services (including debentures, CRIs, CRAs, FIIs, M&A, project finance and ECM), insurance brokerage, energy trading and credit recovery services. The group’s securities brokerage house complements this offering with intermediation of public offerings, portfolio management, custody and activities in the foreign exchange, commodities and futures markets.

Banco ABC Brasil’s geographic presence is distributed through a network of business platforms segmented by client profile. At the end of 2024, the institution maintained two platforms dedicated to the C&IB segment, fifteen platforms for the Corporate segment (including one dedicated to multinationals), eleven platforms for Middle clients, three platforms focused on clients in the Agribusiness sector, and one specific platform for financial institutions. This structure provided commercial presence in 50 cities across several Brazilian states, including major economic hubs such as São Paulo, Rio de Janeiro, Belo Horizonte, Campinas, Curitiba, Porto Alegre, Fortaleza, Recife and Salvador, as well as locations strongly linked to agribusiness and industry. The distribution strategy is reinforced by ABC Link, which extends reach through partner offices, with an emphasis on credit, cash management, guarantees, derivatives, foreign exchange, insurance and investment banking.

Banco ABC Brasil’s activities take place within a complex and heavily supervised regulatory environment. In Brazil, the institution depends on authorization from and is supervised by the Central Bank, which granted its authorization certificate in August 1989. As a publicly held company, it is subject to CVM regulations, with registration obtained in 2007, and follows prudential and disclosure rules required by the authorities. Abroad, its Cayman Islands branch operates under a type “B” license issued by the Cayman Islands Monetary Authority, in compliance with local and Brazilian regulations. Funding, which is essential for financing credit operations, is obtained through the issuance of financial bills, real estate and agribusiness credit notes, certificates of deposit, BNDES onlending and note issuances in the foreign market, in an environment of rates and conditions influenced by monetary policy, default and taxation.

With regard to environmental, social and governance (ESG) aspects, Banco ABC Brasil maintains a dedicated structure, with an ESG area and a Sustainability Committee, and publishes an annual sustainability report in Integrated Report format. The report is prepared based on Global Reporting Initiative standards and incorporates SASB indicators aimed at commercial banks and investment banking and brokerage. The selection of material topics is guided by a recently revised materiality matrix, covering ethics, transparency, data privacy, innovation, risk management, corporate governance, customer experience, economic performance, human capital, diversity and climate change. The bank also complies with specific regulations of the National Monetary Council and the Central Bank on social, environmental and climate responsibility, management of social, environmental and climate risks and reporting of information related to these topics, integrating these guidelines into its responsibility policy and corporate risk management.