BPAR3 Banco do Estado do Pará - Banpará

Banco do Estado do Pará S.A. – Banpará is a mixed-capital company created by Law No. 1,819 of November 30, 1959, and began operations on October 26, 1961, with the opening of its first branch, Belém Centro, with 17 employees at the time. In 1964, the bank moved to its first owned headquarters, in the Dias Paes building on Av. Presidente Vargas, in Belém, and in 1966 it opened its first branch in the interior, in Santarém. Over the decades, it has consolidated itself as the state-owned public bank of Pará, focused on economic development and financial inclusion, while maintaining the structure of a multiple-service bank. Banpará’s common shares, under ticker BPAR3, are traded on B3 S.A. – Brasil, Bolsa, Balcão, and the company has been registered with the CVM as a publicly held corporation since 1977, subject to the Brazilian Corporations Law and to Brazilian capital markets regulations.

Banpará currently has a physical presence in all 144 municipalities in the State of Pará, as the result of a branch network expansion plan completed in 2024. The structure includes 239 proprietary service points, comprising 163 branches, 35 in-person service posts, 38 electronic posts and 3 advanced teller posts. In addition to its physical network, the bank operates multiple channels such as ATMs, customer service hotlines (SAC and Call Center), internet banking, the Banpará app and its IR website, as well as debit and credit cards. The institution also uses social media such as Instagram, Facebook and a YouTube channel to engage with its various audiences, reinforcing its regional reach and seeking to broaden access for the population of Pará to banking services.

Banpará’s business model is that of a multiple-service bank with a strong retail presence, aimed at democratizing access to credit and banking services and providing financial solutions for individuals and businesses. Since its inception, it has played a strategic role in the socioeconomic development of Pará, including acting as the financial agent of the State Government. In this role, it is responsible for managing public funds, paying civil servant payroll, transferring and distributing funds from social programs and other official financial operations, which makes it a key player in state public administration. The bank combines traditional commercial operations – funding, lending and services – with economic and social development credit lines, using its own funds, onlending from institutions such as BNDES and FUNGETUR, and state and municipal funds.

In the individual segment, Banpará offers a broad portfolio of credit products, with emphasis on payroll loans, personal loans, seasonal credit lines such as “Banpará na Volta às Aulas” and “Banpará Vai à Praia”, overdraft and its installment overdraft version, early refund of income tax returns, specific lines such as Credicomputador, and Banparacard, a revolving credit line linked to the checking account of clients who receive their salaries at the bank. The institution also operates in mortgage lending for home purchase, construction, loan portability and loans secured by residential property, and offers investment products such as time deposits and savings accounts, as well as consórcios, capitalization bonds, various insurance products and pension plans. Approximately 90% of consumer credit products are electronically pre-approved, which demonstrates extensive use of systems for risk assessment and credit origination, with subjective analysis being the exception.

For legal entities, Banpará structures working capital lines such as Giro Rápido, traditional Working Capital and FAMPE Working Capital in partnership with Sebrae, in addition to Hot Money, Business Overdraft (Cheque Empresarial) and receivables (duplicatas) discounting, aimed at strengthening the cash flow of companies of different sizes. The institution also offers services to collect taxes and fees for municipal, state and federal entities, registered collection services (cobrança registrada), direct debit and mobile phone top-ups, integrating transactional solutions into its corporate relationships. The bank manages its commercial corporate (PJ) loan portfolio taking into account risk models that incorporate social, environmental and climate aspects, monitors market scenarios to remain competitive, develops new products, and controls the operational and accounting quality of the portfolio. Services such as payroll systems and the WEB INSS System complement the offering and serve as gateways to other financial products.

A key pillar of Banpará is development banking, with microcredit and rural credit lines, as well as operations funded by onlending resources. In microcredit, the bank operates specific products such as Banpará Comunidade, Banpará Comunidade Mototaxista, Credturismo and Empodera (aimed at women entrepreneurs), directed at both formal and informal microentrepreneurs, with reduced rates in compliance with the National Productive Oriented Microcredit Program Law. In rural credit, it offers financing for working capital and investment in agricultural and livestock activities, in accordance with the Rural Credit Manual, covering different production stages. Through BNDES lines such as Finame BK and Finame Baixo Carbono, and FUNGETUR, it finances the acquisition of machinery and equipment, productive projects, tourism investments and working capital for companies registered with Cadastur.

Banpará’s activities also extend to products focused on sustainability and the climate agenda, with financing for solar energy, low-carbon economy lines and microcredit tailored to rural and traditional communities, such as BanparaBio, aimed at rural producers, indigenous peoples, quilombola communities and other underbanked groups. There is also the development of a carbon credit line for carbon sequestration projects, in partnership with a specialized consultancy. These products incorporate environmental, social and governance (ESG) criteria into credit assessments, with impact evaluation and mechanisms for customizing terms and structures for different audiences. The bank also operates spot and forward foreign exchange, as well as documentary collection and registration services in the External Credit System, always in compliance with the new Brazilian Foreign Exchange Law (Law 14,286/21).

From a regulatory standpoint, Banpará is a multiple-service bank authorized by the Central Bank of Brazil to operate commercial, mortgage and development portfolios, as well as rural credit, foreign exchange transactions and participation in the instant payments system (PIX). As a financial institution, it is regulated by the National Monetary Council and supervised by the Central Bank, and as a listed company, it is supervised by the CVM and subject to Law 6,404/1976, including governance, disclosure and market transparency requirements. Additionally, as a mixed-capital company, it is subject to Law 13,303/2016, which strengthens environmental sustainability and corporate social responsibility practices, directly influencing its management and internal policies.

In ESG, Banpará structures its approach through its Social, Environmental and Climate Responsibility Policy (PRSAC), which sets guidelines for relationships with employees, clients, suppliers and other stakeholders, and for managing social, environmental and climate risks. Among the points covered by this policy are risk mapping of activities, monitoring for anti–money laundering and anti-corruption, promoting diversity, equity and inclusion, defending human rights and combating illegal labor practices, as well as encouraging financial education and sustainable credit. The bank participates in government programs such as “Economia Sustentável” and “Manutenção da Gestão” in the State of Pará’s 2024–2027 PPA, with actions focused on expanding credit for the low-carbon economy, microentrepreneurs, rural producers and support for social policies. In addition, it publishes an annual Sustainability Report following Global Reporting Initiative (GRI) standards, as well as specific reports on social, environmental and climate risk management, seeking transparency and alignment of its strategy with the sustainable development agenda.

From a geographical perspective, Banpará concentrates its activities and revenues in Brazil, with no revenues from other countries and no exposure to foreign regulations. Its operations are essentially regional, focused on the State of Pará, with strong penetration and presence in all municipalities, while relying on technology infrastructure and digital channels that allow for continuous service. For an investor in BPAR3, this means exposure to a regional state-owned bank with a retail profile, strong ties to Pará’s economy, a relevant role in implementing public policies and a broad array of credit products, banking services and development lines with an increasing emphasis on sustainability and financial inclusion.