BGIP3 Banco do Estado de Sergipe - BANESE

Banco do Estado de Sergipe - BANESE, traded on B3 under the tickers BGIP3 and BGIP4, traces its origins to 1961, when it was created under the name Banco de Fomento Econômico (BANFESE) during the administration of Luiz Garcia. Banking operations began on January 2, 1964, under Governor Seixas Dória, with journalist Orlando Dantas as the first president, who highlighted the institution’s role in Sergipe’s economic development. In 1967, the bank adopted the name Banese, accompanying a process of expansion into the interior with the opening of branches across the state and changes in its organizational structure. Over the following decades, the institution expanded its service network, created entities focused on employee welfare, and invested in human resources, technology, and new financial business segments.

In the 1970s and 1980s, Banese consolidated its administrative and technological structure with the creation of the Data Processing Center (CPD) and areas such as Finance, Planning, and Systems and Methods. During this period, initiatives also emerged such as BACISA (Banese Crédito Imobiliário/Poupança Banese), Banese Corretora de Seguros, SERGUS (Instituto Banese de Seguridade Social), the Open Market Portfolio and the Single Account System of the State Government. In 1991, Banco do Estado de Sergipe was authorized by the Central Bank to operate as a Multiple Bank, with Commercial, Development and Real Estate Credit portfolios, fully automated its branch network, and joined the Rede Verde-Amarela, connecting to thousands of state bank branches across the country. Subsequently, the bank was authorized to operate Credit, Financing and Investment, and Leasing portfolios in 1998 and, more recently, an investment portfolio in 2019.

Banese’s business model as a multiple bank covers all banking operations authorized by the Central Bank, the provision of a wide range of financial services, and other activities permitted to institutions that are part of the National Financial System. The institution operates with a strong focus on the retail segment, especially serving individuals, with an emphasis on public servants who receive their salaries through the bank, in addition to financing working capital for small and medium-sized companies. It also provides financing for real estate developments and credit operations from BNDES and BNB onlending, through rural and industrial portfolios. In 2024, credit operations reached R$ 4.6 billion and were the main source of results, with emphasis on payroll-deductible loans to public servants and products offered via correspondents in Brazil, as well as corporate working capital lines such as Progiro Banese.

Banese’s product portfolio is extensive and strongly anchored in consumer and public-sector credit, with various types of loans aimed at state, municipal, and federal public servants, INSS retirees and pensioners, the bank’s own employees, and private-sector employees. Among the main lines for individuals are payroll-deductible credit, Credi-Salário, advances on salaries, 13th salary and vacation bonuses, products for income tax anticipation or financing, lines focused on education, modernization and notary expenses, home renovations and décor, as well as home equity loans (Cred-Banese UseBem). For companies, in addition to Progiro Banese, the bank offers discounting of trade bills, overdraft loans, and business checks, aiming to meet working capital needs, including for individual microentrepreneurs. There are also specific products such as credit for modernization of notary offices and lines with seasonal characteristics, tied to dates and tax obligations.

From the standpoint of structure and distribution channels, Banese maintains a broad physical presence in Sergipe, with 63 branches, 7 service posts, 442 ATMs, and 173 correspondents in the country, complemented by internet banking, mobile banking, and call center. Its self-service channels offer coverage throughout the state and national and international access via shared networks such as Banco 24 Horas, Mastercard Maestro and Rede Saque e Pague. In 2024, funds raised and managed by the bank totaled R$ 10.6 billion, with significant growth in demand deposits, time deposits, and savings. The institution reports a 20% share of total commercial credit granted in Sergipe, in addition to significant shares in financing and rural credit portfolios in the state, with percentages of 14.3% and 18.1%, respectively, highlighting its regional relevance in financial intermediation.

Banese’s prudential conglomerate includes Banco do Estado de Sergipe itself, Mulvi Instituição de Pagamento S.A., credit receivables investment funds for cards, and exclusive multimarket funds. Mulvi operates in payments and related services, focusing on credit cards, vouchers, and acquiring solutions, offering, for example, the MULVI PAY platform. In 2024, products managed by Mulvi handled R$ 4.5 billion and the base of cardholders eligible to make purchases reached 539,967 thousand customers, reinforcing the group’s role in financial services associated with cards and electronic payments. Banese has also developed notable proprietary products in its market, such as Banese Card, a card aimed at the Sergipe public, and the Ponto Banese correspondent network, which expands the reach of banking services in commercial establishments.

In terms of regulation, Banese is subject to the rules issued by the Central Bank of Brazil, the authority responsible for authorizing the operation, corporate reorganizations, and changes to operating portfolios of financial institutions. Its relationship with the regulator includes compliance with requirements regarding proof of the origin of controllers’ funds, adherence to monetary policies, and observance of specific resolutions, such as those related to social, environmental, and climate risk management. In governance, since 2008 the Bylaws have provided tag along rights for minority shareholders in cases of material changes of control, a condition that led the bank’s shares to be included in B3’s ITAG index starting in 2017. Additionally, Banese holds several registered trademarks associated with financial products and services, insurance, pensions, digital channels, and initiatives such as Banese Card, Ponto Banese, Instituto Banese and Banese Corretora de Seguros.

In the environmental, social and governance (ESG) dimension, Banco do Estado de Sergipe adopts a Social, Environmental and Climate Responsibility Policy (PRSAC), aligned with the resolutions of the National Monetary Council and the Central Bank’s guidelines on social, environmental and climate risks. The institution requires, in certain credit operations, the application of a social, environmental and climate risk form and an analysis of compliance with labor, environmental and social legislation for activities exposed to these risks. Banese discloses ESG information in its Annual Report, linking its initiatives to the UN Sustainable Development Goals, focusing on issues such as poverty eradication, education, gender equality, decent work, economic development and reducing inequalities. The bank also mentions the process of building and validating a materiality matrix and ESG key performance indicators, as well as preparing to meet new regulatory requirements for reporting social, environmental and climate risks. The institution does not report revenue in other countries, concentrating all its revenue generation in Brazil, with a focus on the Sergipe market and, to a lesser extent, neighboring states through its subsidiaries and service channels.

From the standpoint of relations with Sergipe’s society, Banese has historically highlighted its support for cultural, sports, education, health, environmental and job-creation projects, reinforcing its role as an agent of regional socioeconomic development. In 2024, the institution emphasizes that it intensified the offer of credit and services to the local population and business owners, including with new capital injections from shareholders, which made it possible to expand its lending capacity. For investors analyzing BGIP3 and BGIP4 shares on B3, Banese presents itself as a multiple bank with strong regional presence, significant exposure to the retail segment, especially public servants, and a relevant share in commercial and rural credit in Sergipe, operating under a robust regulatory framework and in the process of evolving its ESG risk management and transparency practices for its various stakeholders.