BMEB4: quote, dividends and indicators for Banco Mercantil

Banco Mercantil do Brasil S.A., currently known commercially as Banco Mercantil, is a publicly traded full-service financial institution, with shares traded on B3 under the tickers BMEB3 and BMEB4. Founded in 1940 and starting operations in 1943 in the city of Curvelo (MG), the bank consolidated its trajectory after the acquisition carried out in 1953 by members of the Araújo family and the transfer of its headquarters to Belo Horizonte. The institution expanded its national presence mainly through acquisitions in the 1950s and 1970s, incorporating regional banks such as Banco Industrial Minas Gerais, Banco Santa Cruz, Banco Metrópole do Rio de Janeiro and Banco Industrial de Campina Grande, which ensured it a branch network in several Brazilian states. In 1974, it adopted the name Banco Mercantil do Brasil S.A. and, in 1977, carried out its initial public offering, becoming a public company subject to the rules of the Brazilian capital market. Throughout its history, it alternated its focus between corporate and retail segments, with a strong presence in Minas Gerais and the interior of São Paulo, until consolidating, from 2009 onwards, a strategy aimed at the population over 50 years of age.

Banco Mercantil’s current business model is predominantly retail, centered on the so‑called 50+ Public, with an emphasis on retirees, pensioners and other INSS beneficiaries, as well as formal workers eligible for payroll‑deductible loans. Following its participation in the first INSS auction in 2009, the institution became a payer of social security benefits in Minas Gerais and regions in the interior of São Paulo, later expanding its operations to other states in subsequent auctions held in 2014, 2019 and 2024. This role within the INSS payment system gave the bank broad access to the beneficiary base, allowing it to leverage the origination of payroll‑deductible credit and advances on the FGTS birthday withdrawal. In 2025, the total credit portfolio reached R$ 23.7 billion, with a strong predominance of loans to individuals, which came to account for approximately 98% of the portfolio, while the corporate loan book became residual. The bank combines this specialization in collateralized credit with a funding strategy based on retail deposits and diversified funding sources, resulting in a cost of funding close to the CDI.

The activities of Banco Mercantil and its subsidiaries are organized into four operating segments: Financial, Marketplace, Insurance and Other. The Financial segment concentrates most of the revenues and earnings, encompassing retail credit operations such as payroll‑deductible loans (including INSS payroll and private payroll loans), personal loans, advances on FGTS birthday withdrawals, payroll‑deductible credit cards, traditional credit cards, overdraft facilities and working capital for companies. On December 31, 2025, payroll‑deductible loans accounted for 71% of the total portfolio, followed by personal loans (13%) and FGTS withdrawal advances (11%), with a small share of corporate transactions. The Marketplace segment, through the subsidiary Mercantil do Brasil Marketplace e Empreendimentos Imobiliários S.A., operates the Meu+ ecosystem, a platform of assistance and complementary services focused on health, well‑being, education, technology, housing, pension plans, pet assistance and rewards programs, among others, aiming to expand the offer of non‑financial solutions and build customer loyalty. The Insurance segment operates mainly in the intermediation and distribution of insurance through specialized subsidiaries, while the Other segment aggregates real estate businesses, securitization and technology services, including software development and licensing.

Banco Mercantil operates nationwide, with its own physical network of 352 branches and service points distributed across 25 states, in addition to proprietary digital channels. The institution has established itself as one of the main payers of INSS benefits in the country, ranking since 2022 as the fifth‑largest payer of social security benefits according to INSS data. Participation in all INSS auctions held since 2009 has enabled the bank to operate benefit portability on a nationwide scale, in accordance with program rules, which reinforces its presence among elderly and retired customers. The relationship with this segment is supported by a specialized service structure that includes branches adapted to the needs of the 50+ Public and a combination of in‑person and digital channels, such as its own app, WhatsApp, an artificial‑intelligence‑based virtual assistant and the “MeuMercantil” platform, designed for integration with banking correspondents. In parallel, the bank has been expanding its footprint through “Bem Aqui” stores, lean units focused on prospecting and technological support.

From a regulatory standpoint, Banco Mercantil has been part of the Brazilian Financial System since the 1940s, with an operating license granted by the Central Bank of Brazil (BCB) in 1940 and authorization to operate as a full‑service bank since 1989. The institution is subject to the guidelines of the National Monetary Council (CMN) regarding credit policy, capital, risk management and other prudential rules applicable to financial institutions. In the INSS payroll‑deductible segment, it operates under specific regulations issued by the INSS and the National Social Security Council, which establish limits on payroll‑deductible margins, interest rate caps and maximum installment terms. In private payroll‑deductible lending, it follows the rules of federal legislation governing payroll deductions for employees hired under the CLT regime, as well as subsequent regulations that integrate this modality into official systems such as CTPS Digital, eSocial and FGTS Digital. In the distribution of insurance, it observes the rules of the Superintendence of Private Insurance (SUSEP) and other regulations applicable to the intermediation of insurance products. This regulatory framework governs both credit origination and consumer protection, governance, capital and transparency.

In corporate governance, Banco Mercantil joined B3’s Level 1 of Corporate Governance in 2021, a segment that requires practices beyond the legal minimum, such as enhanced transparency, share dispersion and improved market disclosure. The corporate structure includes a Board of Directors, Statutory Executive Board and advisory committees, in addition to executives with experience in the financial sector and in the institution’s strategic areas. The bank also began, as of 2021, publishing a sustainability report based on international standards, incorporating environmental, social and governance (ESG) indicators into its institutional communications. In the area of people management and organizational culture, the institution has been recognized with certifications and industry awards, which is related to its positioning strategy as a retail bank focused on serving an older customer base, with an emphasis on quality of service, specialized assistance and stability in long‑term relationships with its clients.

In terms of competitive positioning, Banco Mercantil occupies a specific niche in the Brazilian banking system, combining its role as an INSS benefit payer with a highly collateralized loan portfolio and a high degree of process digitalization. The focus on the 50+ Public, the expansion of the Meu+ ecosystem and the integration between physical and digital channels constitute an omnichannel business model designed for a customer base that alternates between in‑person service and digital solutions. The customer base reached around 10 million in 2025, with consistent growth in the number of accounts and in penetration of credit products, which strengthens revenue generation from interest, fees and bundled services. Recent financial results reflect this strategic redesign initiated around 2014–2015 and intensified after 2019, when the bank began to more clearly prioritize mass retail with a defined age focus, while maintaining discipline in credit origination, revenue diversification through insurance and marketplace operations, and compliance with the regulatory and governance requirements applicable to a public company listed on B3, through its BMEB3 and BMEB4 shares.