BPAR3

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, then employing 17 people. 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 countryside, in Santarém. Over the decades, it has consolidated itself as the state public bank of Pará, focused on economic development and financial inclusion, while maintaining the structure of a multiple bank. Banpará’s common shares, under the ticker BPAR3, are traded on B3 S.A. – Brasil, Bolsa, Balcão, and the company has been registered with the CVM as a publicly held company since 1977, subject to the Brazilian Corporations Law and the rules of the Brazilian capital markets.

Banpará currently has a physical presence in all 144 municipalities in the State of Pará, the result of a branch network expansion plan completed in 2024. Its structure includes 239 proprietary service points, comprising 163 branches, 35 in-person service posts, 38 electronic posts and 3 advanced teller units. In addition to its physical network, the bank operates multiple channels such as ATMs, customer service (SAC), Call Center, internet banking, the Banpará app and the IR (Investor Relations) 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 expand access to banking services for the population of Pará.

Banpará’s business model is that of a multiple bank with a strong retail presence, focused on democratizing access to credit, promoting financial inclusion and offering financial solutions to individuals and companies. 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 the state payroll, transferring and distributing funds for social programs and other official financial transactions, which makes it relevant to 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 retail segment, Banpará offers a broad portfolio of credit products, with emphasis on payroll loans, personal loans, seasonal lines such as “Banpará na Volta às Aulas” and “Banpará Vai à Praia”, overdraft and its installment overdraft modality, advance of income tax refunds, specific lines such as Credicomputador and the Banparacard, a revolving credit facility linked to the checking account of customers who receive their salaries at the bank. The institution also operates in mortgage lending for acquisition, construction, portability and loans secured by residential property, in addition to offering investment products such as time deposits and savings, as well as consortium plans, capitalization bonds, various insurance products and pension plans. Approximately 90% of retail credit products are electronically pre-approved, which shows a strong use of systems for risk analysis and loan origination, with subjective analysis being the exception.

For companies, Banpará structures working capital lines such as Giro Rápido, traditional Working Capital and Working Capital FAMPE in partnership with Sebrae, in addition to Hot Money, Business Overdraft and discounting of trade receivables, all aimed at strengthening cash flow for companies of different sizes. The institution also offers banking tax collection services for municipal, state and federal taxes and fees, registered collections, direct debit and mobile top-ups, integrating transactional solutions into its relationships with companies. The bank manages the commercial corporate (PJ) loan portfolio using risk models that incorporate social, environmental and climate aspects, monitors market scenarios to maintain competitiveness, 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, serving as an entry point for other financial products.

An important pillar of Banpará is development financing, with microcredit and rural credit lines, in addition to transactions using onlent funds. In microcredit, the bank operates specific modalities such as Banpará Comunidade, Banpará Comunidade Mototaxista, Credturismo and Empodera (focused on women entrepreneurs), targeting both formal and informal microentrepreneurs, with reduced rates in accordance with the Law of the National Program for Oriented Productive Microcredit. In rural credit, it offers financing for working capital and investment in agricultural activities, in line with the Rural Credit Manual, covering different stages of production. Through BNDES lines, such as Finame BK and Finame Low Carbon, and FUNGETUR, it finances the acquisition of machinery and equipment, productive projects, tourism investments and working capital for companies registered in Cadastur.

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

On the regulatory front, Banpará is a multiple 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 publicly held company, it is supervised by the CVM and subject to Law 6,404/1976, including requirements on governance, disclosure of information and market transparency. Additionally, as a mixed-capital company, it is subject to Law 13,303/2016, which reinforces environmental sustainability practices and corporate social responsibility, directly influencing its management and internal policies.

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

From a geographic standpoint, Banpará concentrates its activities and revenues in Brazil, with no revenues in other countries and no exposure to foreign regulations. Its operations are essentially regional, focused on the State of Pará, with strong reach and presence in all municipalities, but supported by technological infrastructure and digital channels that enable continuous service. For investors in BPAR3, this means exposure to a regional public bank with a retail profile, strong ties to the economy of Pará, a relevant role in implementing public policies and a broad set of credit products, banking services and development lines with increasing emphasis on sustainability and financial inclusion.