BEES3

Banco do Estado do Espírito Santo – BANESTES, now named Banestes S.A. – Banco do Estado do Espírito Santo, traces its origins back to the 1930s, in a context of promoting agricultural credit in the state. Its history begins with Decree No. 6,639 of August 9, 1935, which created the Instituto de Crédito Agrícola do Espírito Santo (Agricultural Credit Institute of Espírito Santo), followed by specific legislation and appropriations to form the capital of an institution dedicated to supporting the development of agricultural crops and funding harvests. In 1937, Decree No. 8,452 approved the bylaws of Banco de Crédito Agrícola do Espírito Santo (Agricultural Credit Bank of Espírito Santo), founded as a corporation headquartered in Vitória (ES), with the State Government as its main shareholder. Authorized to operate by Charter No. 1,565 of July 23, 1937, the bank began operations on October 15 of that year. In 1989, after incorporating real estate credit and financing companies, it became a multiple-service bank and adopted its current name, Banestes S.A. – Banco do Estado do Espírito Santo, consolidating its position as a leading regional financial institution.

Today, Banestes is a mixed-capital, publicly held corporation, with shares traded on B3 under the tickers BEES3 and BEES4. Organized as a multiple-service bank, it operates through several portfolios: commercial, rural, industrial and real estate credit, foreign exchange, investment, and credit card management. The bank stands out as one of the main agents of public policy in the State of Espírito Santo, contributing to regional socioeconomic development, with a strong focus on retail lending and small and medium-sized enterprises. As of December 31, 2024, the Banestes conglomerate maintained its operations structured into a predominant financial segment, responsible for 99.64% of financial income in 2024, and an insurance and other segment, which complements its activities with protection and pension products.

Banestes’ business model is diversified within the financial system, with a central focus on financial intermediation and banking services, but also active in insurance, investment distribution and, more recently, state lotteries. In the financial segment, the bank offers a wide range of products for individuals, including personal loans, overdrafts, payroll-deductible loans, credit and debit cards, vehicle and consumer goods financing, mortgage loans, as well as savings deposits, term and demand deposits, and investment options such as equity funds, LCIs, LCAs, CRIs and other investments. For companies – especially micro, small and medium-sized enterprises, which account for 68% of its corporate credit operations – it offers working capital lines, business overdrafts, guaranteed accounts, BNDES on-lending, investment, agriculture and livestock credit, leasing of machinery and equipment, foreign exchange transactions for exports and imports, receivables discounting, cash management, microcredit, and card solutions.

Banestes’ activities also include serving the direct and indirect public administration of Espírito Santo, with specific financial services for the state and municipal governments. These services include tax agreements with automatic debit, online and billing-based collection, printing of tax payment booklets such as ISS and IPTU, payroll processing for civil servants, collection of overdue tax receivables, payments to suppliers and taxes, as well as investments in CDBs, savings, debit and meal cards, and investments in funds and securities. This institutional relationship consolidates Banestes as the state’s main financial agent, also responsible for treasury management for municipalities and the state government itself, which reinforces the institution’s relevance in Espírito Santo’s economic ecosystem and directly influences its funding base and credit origination.

Within the conglomerate, Banestes has subsidiaries that extend its presence in complementary segments. Banestes Distribuidora de Títulos e Valores Mobiliários S.A. (Banestes DTVM) operates in the intermediation and distribution of securities and fund shares, as well as in asset management in fixed income and equities, and is responsible for administering and managing funds within the Banestes Financial System. Banestes Seguros S.A. (Banseg) operates in property and casualty and life insurance in the states of Espírito Santo, Minas Gerais, Bahia and Rio de Janeiro, focusing on auto, home, credit life, life and personal accident insurance. Banestes Administradora e Corretora de Seguros, Previdência e Capitalização Ltda. (Banescor) provides administration and brokerage services for insurance, capitalization bonds, private pension plans, and health and dental plans, mainly distributing products from Banestes Seguros and, when necessary, from other insurers, in partnership with Banestes and the Icatu group for pension and capitalization solutions.

In 2024, the bank also formed Banestes Loteria S.A., a wholly owned subsidiary created to operate, on an exclusive basis, the public lottery service of the State of Espírito Santo in all modalities authorized by the federal government. As of December 31, 2024, this company was still in the pre-operational phase, with a minimal structure focused on internal organization and the search for a partner to operate and manage the lottery business, both in physical and digital channels. Despite diversification into insurance and lotteries, 2024 figures show that the financial segment remains overwhelmingly predominant in the conglomerate’s results, with a financial margin of R$ 1.43 billion, 98.90% of which came from the financial segment, and an almost full contribution from this segment to financial income and consolidated net income.

Banestes’ geographic presence is heavily concentrated in Espírito Santo, where the bank is the only institution with branches in all 78 municipalities of the state. In December 2024, its network totaled 770 physical service points, 765 in Espírito Santo and 5 in other states, with four units in São Paulo (SP) and one in Rio de Janeiro (RJ). This structure includes branches and service posts, electronic service points and banking correspondents, reinforcing its retail capillarity and position as the largest banking network in the state. In the insurance segment, its operations extend to ES, MG, BA and RJ, using the sales desks at Banestes branches and a network of local insurance brokers, in addition to digital channels such as the “App Banestes e-Segurado” application. Despite this regional expansion, the bank’s net revenue is attributed almost entirely to Brazil, with no material revenue from abroad, although it maintains a US dollar account at Banco do Brasil in New York to settle foreign credit card obligations with Visa Inc.

From a competitive standpoint, Banestes operates in a state-level banking market marked by the presence of large federal and private banks, as well as credit cooperatives. In this context, the bank highlights a relevant market share in various lending and funding niches in Espírito Santo, including loans and discounted notes, financing, mortgage lending, rural credit and deposits in different modalities, with significant market shares according to Central Bank data through September 2024. In the local insurance market, it also records meaningful market share in auto and life segments, according to SUSEP data. The institution states that it invests in digital transformation, focusing on channels such as internet banking, proprietary apps, corporate platforms and remote service, supported by internal and external communication solutions, while maintaining an IT structure based on multiple software and hardware vendors.

In regulatory terms, Banco do Estado do Espírito Santo – BANESTES is subject to oversight by the National Monetary Council (Conselho Monetário Nacional), the Central Bank of Brazil (Banco Central do Brasil) and the Brazilian Securities Commission (Comissão de Valores Mobiliários), in addition to complying with specific rules for directed credit lines and government programs, such as INSS payroll loans, Pronampe, rural and mortgage credit. In the ESG field, the bank states that it complies with CMN Resolution No. 4,945/2021, which addresses the Social, Environmental and Climate Responsibility Policy, and it publishes an annual Sustainability Report based on the GRI standard, available on its investor relations website. This report includes a materiality matrix and key ESG performance indicators related to innovation, risk management, ethics, governance, data privacy, human capital, health and safety, human rights, and customer relations. Banestes has joined the Brazilian GHG Protocol Program and plans to publish its first greenhouse gas emissions inventory, referring to 2024, in the 2025 cycle, reinforcing its gradual alignment with climate transparency practices, although it does not yet obtain external assurance of its ESG information.

As a publicly traded company listed on B3, with BEES3 and BEES4 shares, Banestes also highlights the protection of its corporate identity, with around 40 trademarks registered with the INPI, including “Banestes,” “Banescard,” “Banestes Seguros” and others, as well as multiple internet domains in Brazil and abroad that support its digital presence. For individual investors, this is a regionally concentrated financial institution with a universal banking profile, combining traditional lending and banking services with complementary businesses in insurance, asset management and, in an early phase, lotteries, under tight regulation by the Brazilian Financial System and with a growing incorporation of sustainability and governance practices into its corporate strategy.