BRSR6

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 origin is linked to the granting of long-term, mortgage-backed loans aimed at regional economic development. In 1931, after incorporating Banco Pelotense, it also began operating 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 with commercial, mortgage, consumer financing and investment portfolios. In 1997, it absorbed the branch network, clients and certain assets of Caixa Econômica Estadual, taking over, in a concentrated manner, 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 involving the injection of securities from 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 an equity stake. 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 intensified its 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 merchant acquiring with Banricompras, an electronic check linked to account holders’ checking account cards. With the opening of the acquiring market following rulings by CADE, the acquiring network became multi-brand, and over the following decade started to capture brands such as MasterCard and Visa. 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 (now B3) Level 1 Corporate Governance segment. Since then, the shares BRSR3, BRSR5 and BRSR6 have been traded on B3, with a market maker acting 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 the revenue and profit, includes funding through deposits and credit bills, lending to individuals and companies, checking account services, credit cards and tax collection. The institution also operates in foreign exchange transactions, export and import financing, advance payments on foreign exchange contracts and onlending of foreign credit lines. Through subsidiaries and affiliates, it diversifies its revenue sources with securities and brokerage services, consortium administration, fund management, payment solutions, insurance and pension plans. Internal business management is organized into operating segments such as Retail, Corporate, Payroll Loans, Banking Correspondents and Treasury, allowing for product and credit policy segmentation by customer profile.

Banrisul’s loan products cover a wide range of modalities aimed at different customer segments. 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-deductible personal loans with debit to account, revolving lines and specific transactions such as advances on 13th salary and income tax refunds, in addition to pre-approved limits that can be taken out through digital and self-service channels. In direct consumer credit, it finances new and used vehicles, as well as projects and equipment related to renewable energies, with collateral such as chattel mortgages on the financed assets. The offering is complemented by overdraft facilities for individuals, working capital lines, secured lines, discounting of trade bills and advances on receivables for companies, financial leasing of vehicles, machinery and equipment, and loans to public sector entities, subject to applicable legal restrictions.

In agribusiness, Banrisul plays a significant role in financing agricultural and livestock production in Rio Grande do Sul, with crop financing lines, livestock raising and maintenance, discounting of agribusiness bills, and storage and commercialization financing. The institution operates programs funded by BNDES and FINAME, as well as specific lines for family farming via PRONAF, for mid-sized producers via PRONAMP, and for corporate farming, with favorable terms for certain segments. It also structures special products for agricultural fairs and exhibitions, with pre-approved limits for the purchase of livestock, machinery and equipment. In the real estate segment, it offers financing products for individuals and companies, including the Plano Empresário (Developer Plan), dedicated to real estate development with mortgage collateral. Its presence in international business includes export financing, import letters of credit, import financing (FINIMP) and international remittance and foreign currency cash transactions.

Banrisul Group’s complementary service structure includes acquiring and benefit card operations, insurance, pension plans and consortiums. 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 from the discount rate charged on transaction volume, as well as rental and connectivity fees. Through this subsidiary, it also operates BanriCard benefit and corporate cards, with a portfolio including Food, Meal, Culture, Fuel, Fleet Management, Expense Management and Social Programs cards, among others, generating revenue from reimbursement and administration fees. The corporate reorganization that created Banrisul Cartões S.A. sought to expand the card and acquiring operations, making these businesses relevant contributors to the group’s contribution margin. In insurance and pension plans, the highlight is a 49.9% stake in the holding company Banrisul Icatu Participações (BIPAR), the controlling shareholder of Rio Grande Seguros e Previdência, which is structured to offer life insurance, pension plans and capitalization bonds through the bank’s branch network.

Banrisul maintains a close relationship with the State of Rio Grande do Sul, both as its controlling shareholder and as a client, especially in managing the payroll of state public servants and the judiciary of Rio Grande do Sul. The corporate client base is composed mainly of micro, small and medium-sized companies, considered a strategic niche for commercial credit, while the individual client base ranges from mass-market segments to higher-income customers. The bank’s credit allocation policy has prioritized lower-risk lines and the expansion of lending to individuals, with enhanced credit risk assessment and management models. Although its operations are regionally rooted and concentrated in Rio Grande do Sul, the institution also maintains agreements and payroll-deductible lending operations in other regions of Brazil.

As a financial institution, Banrisul operates in an environment that is heavily regulated 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 held company with shares traded on B3 under the tickers BRSR3, BRSR5 and BRSR6. Its insurance, pension and capitalization activities are also subject to the regulatory framework of CNSP, SUSEP, CNPC and PREVIC. In terms of governance and transparency, the bank has adhered to B3’s Level 1 Corporate Governance segment and maintains a structured Investor Relations department. With respect to 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 that involve different stakeholders, including shareholders, clients, employees, regulators and civil society.

From a geographic 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 overseas units that are not materially relevant in terms of revenue. Its trajectory of organic and acquisition-driven growth, combined with technological modernization, the creation of specialized units such as the Digital Transformation division, and diversification into areas such as acquiring, insurance and consortiums, shapes 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.