BRSR3 Banco do Estado do Rio Grande do Sul - Banrisul

Banco do Estado do Rio Grande do Sul - Banrisul is a financial institution controlled by the State of Rio Grande do Sul, founded in 1928 as a public rural and mortgage credit bank. Its origins are tied to the granting of long-term, mortgage-backed loans aimed at regional economic development. In 1931, after incorporating Banco Pelotense, it also began to act as the state’s tax collector, strengthening its relationship with the state government. Over the following decades, Banrisul expanded its presence by opening branches in several municipalities in Rio Grande do Sul and grew through the incorporation of public financial institutions such as Banco Real de Pernambuco, Banco Sul do Brasil, Banco de Desenvolvimento do Estado do Rio Grande do Sul (BADESUL) and DIVERGS Distribuidora de Títulos e Valores Mobiliários do Estado do Rio Grande do Sul.

In March 1990, Banrisul became a multiple-service bank, starting to operate commercial, mortgage, financing and investment portfolios. In 1997, it absorbed the branch network, clients and certain assets of Caixa Econômica Estadual, taking over, on a concentrated basis, the payroll services for state government employees and the provision of financial services to the State of Rio Grande do Sul and related entities. In 1998, it joined the State Bank Restructuring Program (PROES), undergoing a major restructuring and recapitalization process that involved the injection of government securities by the Federal Government and the Central Bank of Brazil, as well as the assumption of liabilities by the State of Rio Grande do Sul, which were converted into equity. This phase consolidated the bank as the main financial instrument of the state government, in parallel with the modernization of its services.

From the 2000s onward, Banrisul ramped up investments in technology and payment solutions. The institution was a pioneer in using chip cards for internet banking authentication and in developing a physical card with a digital certificate under the ICP-Brasil standard. In 2001, it began operating in acquiring with Banricompras, an electronic check linked to its current account holders’ debit cards. With the opening of the acquiring market after CADE measures, the acquiring network became multi-brand, starting to capture schemes such as MasterCard and Visa over the following decade. In 2007, it carried out a primary and secondary public offering of class B preferred shares, strengthening its capital by around R$ 800 million and joining the then Bovespa’s Level 1 Corporate Governance segment, now B3. Since then, BRSR3, BRSR5 and BRSR6 shares have been traded on B3, with a market maker in place to foster liquidity in the stock.

Banrisul’s business model is structured as a multiple-service bank with a strong focus on retail banking, commercial credit, mortgage financing, rural credit and transactional services. The banking segment, which accounts for most of its revenue and profit, covers funding via deposits and credit notes, lending to individuals and companies, current account services, credit cards and tax collection. The institution also operates in foreign exchange transactions, export and import financing, advance on foreign exchange contracts and on-lending of external funding lines. Through subsidiaries and affiliates, it diversifies its revenue sources with securities brokerage, consortium administration, fund management, payment solutions, insurance and pension products. Internal business management is organized into operating segments such as Retail, Corporate, Payroll Loans, Banking Correspondents and Treasury, enabling product and credit policy segmentation according to client profile.

Banrisul’s credit products cover a broad range of modalities aimed at different target groups. In payroll-deductible loans, the portfolio is concentrated in state and municipal public servants, as well as INSS retirees and pensioners, with transactions backed by agreements with public entities and private companies. The bank also offers non-payroll personal loans with account debit, revolving lines and specific operations such as early payment of 13th salary and income tax refund advances, in addition to pre-approved limits that can be contracted via digital and self-service channels. In direct consumer credit, it finances new and used vehicles, as well as projects and equipment related to renewable energy, with guarantees such as fiduciary liens on the assets. The offering is complemented by overdrafts for individuals, working capital lines, revolving credit facilities, discounted receivables and advance of receivables for companies, finance leases for vehicles, machinery and equipment, and loans to public sector entities, subject to applicable legal restrictions.

In agribusiness, Banrisul plays a relevant role in financing agricultural and livestock production in Rio Grande do Sul, with lines for crop funding, animal breeding and maintenance, discounting of agribusiness receivables, and financing for storage and commercialization. The institution operates programs with on-lending from BNDES and FINAME, as well as specific lines for family farming via PRONAF, for medium-sized producers via PRONAMP, and for corporate agriculture, with favorable conditions for certain segments. It also structures special products for agricultural fairs and exhibitions, with pre-approved limits for the acquisition of animals, machinery and equipment. In the real estate segment, it offers financing modalities for individuals and companies, including the Plano Empresário, dedicated to real estate development with mortgage-backed collateral. Its presence in international business includes export financing, import letters of credit, import financing (FINIMP) and remittance and cash foreign exchange transactions.

The Banrisul Group’s complementary services structure includes acquiring operations and benefits cards, insurance, pension products and consortia. Through its subsidiary Banrisul Pagamentos, under the Vero brand, the group operates in merchant acquiring, capture, processing and settlement of credit, debit, prepaid and postpaid card transactions, earning mainly through discount rates charged on transaction volumes, as well as rental and connectivity fees. Through this same subsidiary, it operates BanriCard benefits and corporate cards, covering a portfolio of Food, Meal, Culture, Fuel, Fleet Management, Expense Management, Social Programs and other cards, with revenue from reimbursement and administrative fees. The corporate reorganization that created Banrisul Cartões S.A. aimed to expand operations in cards and acquiring, making these businesses relevant contributors to the group’s contribution margin. In insurance and pension products, a highlight is the 49.9% stake in the holding company Banrisul Icatu Participações (BIPAR), which controls Rio Grande Seguros e Previdência, structured to offer life insurance, pension plans and capitalization products through the bank’s branch network.

Banrisul maintains a close relationship with the State of Rio Grande do Sul, both as controlling shareholder and as a client, especially in managing the payroll of state public servants and the state judiciary. Its corporate client base is composed mainly of micro, small and medium-sized companies, considered a strategic niche for commercial credit, while its individual customer base ranges from mass-market segments to higher-income clients. Its credit allocation policy has prioritized lower-risk lines and growth in lending to individuals, with a strengthening of risk analysis and management models. Although its operations originated regionally, concentrated in Rio Grande do Sul, the institution also maintains agreements and payroll loan operations in other regions of the country.

As a financial institution, Banrisul operates in a heavily regulated environment overseen by the Central Bank of Brazil, which authorizes and supervises its activities, and by the Brazilian Securities Commission (CVM), due to its status as a publicly traded company with shares listed on B3 under the tickers BRSR3, BRSR5 and BRSR6. Its insurance, pension and capitalization activities are also subject to the regulatory frameworks of CNSP, SUSEP, CNPC and PREVIC. In terms of governance and transparency, the bank has joined B3’s Level 1 Corporate Governance segment and maintains a structured Investor Relations department. Regarding environmental, social and governance (ESG) practices, Banrisul has published annual sustainability reports since 1999, using standards such as GRI and incorporating SASB indicators, as well as disclosing a specific report on social, environmental and climate-related risks and opportunities in compliance with Central Bank regulations. These reports are subject to independent assurance and are based on materiality processes involving different stakeholders, including shareholders, clients, employees, regulators and civil society.

From a geographical standpoint, Banrisul’s revenue generation is concentrated in Brazil, with all recent net revenue coming from clients in its home country, even though the institution maintains foreign units with no significant impact on revenue. Its track record of organic and acquisition-driven expansion, combined with technological modernization, the creation of specialized units such as the Digital Transformation division, and diversification into areas such as acquiring, insurance and consortia, shape the bank’s current profile as a regionally rooted financial group with a broad offering of banking and financial services and publicly traded shares on the Brazilian stock market.