1Q17 Institutional Presentation
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Institutional Presentation
1Q17
1
Table of contents
1. Executive summary
2. Banrisul overview
3. Key credit strengths
4. Operational performance
5. Risk management
6. Treasury management
7. Information and technology
8. Human resources
9. Legal and regulatory
10. Financial summary
2
1. Executive summary
Executive summary
Presenting team
Luiz Gonzaga Veras Mota
Chief Executive Officer
● Mr. Gonzaga is the Chief Executive Officer of Banrisul since April 2015
● Mr. Gonzaga held the following positions: Director of Companhia União de Seguros Gerais; in Banrisul, he served as Head in the departments of Real Estate,
Risk Management, Finance and Organization and Methods; Regional Superintendent; effective member of the Credit Committee; President of the Funding and
Resource Allocation Committee; Executive Superintendent of Retail Business Unit; Asset Management Officer; Chief Financial Officer; Executive Superintendent
of the Financial Unit. Also served in the fallowing committees: Credit (Effective Member); Funding and Resource Allocation (President and Member); Technology
and Business (Coordinator); Economic Management (Coordinator); Corporate Risk (Member); and Business Management (Member)
● Holds a bachelor’s degree in Economics from Fundação Educacional de São Gabriel and Teacher Education from Instituição Educacional São Judas Tadeu.
Graduate degree in: Management and Finance (UFRGS); Accounting (PUCRS); Banking Management (ASBACE); and Marketing (ADVB)
Irany de Oliveira Sant’Anna Júnior
Vice President
● Mr. Sant’Anna is the Vice President of Banrisul since April 2015
● Mr. Sant’Anna held the following positions: Director Advisor to the Formac Administradora; Independent Consultant in the Financial Economics Area serving
FININVEST CFI and Bozano Simonsen DTVM; Analyst of the Department of Supervision of the Central Bank of Brazil (BACEN); Supervisory Inspector in the
Central Bank of Brazil; Surveillance Supervisor in the Central Bank of Brazil; Vice President of Finance of Grêmio Foot-Ball Porto Alegrense; Banking Supervision
Technical Manager for the Southern Region of Brazil in the Central Bank of Brazil; Deputy Head of the Banking Supervision Department (São Paulo)
● Holds a bachelor’s dedree in Economics from Universidade Federal do Rio Grande do Sul
Ricardo Richiniti Hingel
Chief Financial and Investor Relations Officer
● Mr. Hingel is the Chief Financial and Investor Relations Officer of Banrisul since April 2015
● Mr. Hingel held the following positions: Chief Finance and Investor Relations Officer of Banrisul (2003-2010); Head of Department in Banco de Desenvolvimento
do Rio Grande do Sul (BADESUL); Technical Advisor in the Planning Department of Banrisul, after the incorporation of BADESUL; Advisor of the State
Government of Rio Grande do Sul; Director of Infrastructure Projects in the General Secretary of the State Government; Technical Director in the Department of
Development and International Affairs of the State of Rio Grande do Sul; Parliamentary Adviser to the Legislative Assembly of the State of Rio Grande do Sul;
Regional Director of Banco BTG Pactual SA
● Holds a bachelor’s degree in Economics from Universidade Federal do Rio Grande do Sul
4
Executive summary
Presenting team (cont’d)
Jorge Fernando Krug Santos
Chief Information Officer
● Mr. Krug is the Chief Information Officer of Banrisul since April 2015
● Also acts as: President of ACRS, Leader of the Financial Payments Council of Smart Card Alliance Latin America - SCALA; Member of the Board L’Advisory
Board do Cartès Secure Connexions; Director of Alliances and Partnerships at SUCESU-RS, Member of Banking Automation and Technology Committee
(CNAB-Febraban) and of the Content Commission of CIAB on FEBRABAN.
● Degree in Systems Analysis from PUCRS and a postgraduate degree in Software Engineering from Universidade Federal do Estado do Rio Grande do Sul, has
also been an intern in applied computing at IBM AF/E in Tarrytown, White Plains, New York - USA.
Jorge Luiz Oliveira Loureiro
Chief Asset Management Officer
● Mr. Loureiro is the Chief Asset Management Officer of Banrisul since April 2015
● Holds a bachelor’s degree in Economics from PUCRS. Graduate degree in: Economic Egineering and Banking Management (FEE-RS); Banking Management
(ASBACE); and Strategic Management (IDEAS)
● Mr. Loureiro held the following positions: Banrisul‘s career employee since 1976, Technical Advisor/Economist in the Office of Planning and Control (ASPLAN);
Manager of Planning and Control Advisor (ASPLAN); Superintendent in the Banrisul Department of Planning and Marketing; Superintendent in the Human
Resources Unit; Superintendent in the Financial Unit; Chief Financial and Administrative Officer at Assistance Fund for Banrisul Staff (Cabergs); Chief Financial
Officer at Banrisul Social Security Foundation
Júlio Francisco Gregory Brunet
Planning and Distribution Channels Officer
● Mr. Brunet is the Planning and Distribution Channels Officer from Banrisul since April 2015
● Holds a bachelor’s degree in Economics from Universidade Federal do Rio Grande do Sul and a degree in Electrical Engineering from PUCRS, with a master’s
degree in Economics – Regional Development from PUCRS
● Mr. Brunet held the following positions: Economic Analyst in Banco Iochpe de Investimento; Economist in the area of Public Finance of FEE-RS; Presidency
Advisor for Economic Affairs in Corsan; International Cooperation Coordinator in the Special International Affairs Secretary for the RS, Auditor of Public Finance
and Fiscal Agent of the Treasury of the State at the Finance Secretary of the RS; Technical Planning in the Department of Coordination and State Planning.
Gazetted officer for Technical positions in Department of Planning Coordination and Planning and Fiscal Agent of the State Treasury
5Executive summary
Presenting team (cont’d)
Oberdan Celestino de Almeida
Chief Credit Officer
● Mr. Oberdan is the Chief Credit Officer of Banrisul since April 2015
● Bachelor’s degree in Economics and post graduate degree in Banking Services
● Banrisul's employee for 36 years. Was Regional Superintendent, Manager in Curitiba, São Paulo and branches in Rio Grande do Sul. Born in Restinga Seca
Suzana Flores Cogo
Chief Administrative Officer
● Ms. Suzana Cogo is the Chief Administrative Officer of Banrisul since April 2015
● Holds a Law degree from Universidade de Passo Fundo (UPF), with MBA in Economic and Corporate Law from Fundação Getúlio Vargas and a gradute degree in
Corporate Governance from Instituto Brasileiro de Governança Corporativa (IBGC), where is a member of the Financial Institutions Governance Comission
● Ms. Suzana Cogo held the following positions: Banrisul’s career employee since 1989; Executiva Manager of the Contractual area of the Legal Counseling;
Executive Superintendent in Corporate Governance Unit and in Legal Counseling
Osmar Paulo Vieceli
Chief Commercial Officer
● Mr. Vieceli is the Chief Commercial Officer of Banrisul since November 2015
● Holds a degree in Economics from Universidade de Santa Cruz do Sul, with MBA in Banking Services from Brazilian Institute of Business Management (IBGEN)
● Mr. Vieceli held the following positions: Banrisul‘s career employee since 1977; Regional Superintendent of Banrisul in the Southern region, 1999 to 2001; Regional
Superintendent of Banrisul in the Central region, 2001 to 2008; Regional Superintendent of Banrisul in the Sierra region, 2008 to 2016
62. Banrisul overview
Introduction
● Largest bank in the Rio Grande do Sul state (“RS”), with 47.2% market share in the state (1) Guyana
Venezuela
Suriname
Colombia French Guiana
● 6th largest Brazilian bank by number of branches and by total deposits (2)
Ecuador
● Payment agent of all public employees of the Rio Grande do Sul
state government
● 88-year old history, founded on September 12th 1928
Peru
Brazil
● First listed on September 16th 1931, with a re-IPO in 2007 Bolivia
● 42.8% float traded in BM&FBovespa
Paraguay
Chile
● Corporate Governance Level 1 in BM&FBovespa since July 31st 2007,
tickers BRSR3, BRSR5 and BRSR6 RS
● 15.8% Basel Ratio in 1Q17
Uruguay
Market Share Brazil - Mar/17 RS - Dec/16 Key Figures Mar/17
Argentina
Demand Deposits 1.94% 28.39% Branches 536
Total number of service points 1,237
Savings Deposits 1.16% 13.78%
Total assets (R$mn) R$ 68,890
Time Deposits 5.00% 47.19%
Credit portfolio (R$mn) R$ 30,540
Loan Portfolio 0.99% 17.64% (1) Market share for time deposits as of Dec/2016 – latest information available.
Brazilian Central Bank.
Number of Branches 2.47% 28.17% (2) Brazilian Central Bank – Ranking of 50 Largest Banks, excluding BNDES.
Dec/2016.
Banrisul is among the 6 largest financial institutions in Brazil by branches and in total deposits and
is a leader in the regional market (2)
8Economic data for Rio Grande do Sul and Brazil
Rio Grande do Sul Brazil
Demographic data (IBGE Census 2010)
Population (in million inhab) (IBGE 2015) 11.2 5.5% of Brazil 204.5
Area (in million km2) 281.8 3.3% of Brazil 8,515.8
Number of Municipalities 497 8.9% of Brazil 5,570
Population Density (in hab/km2) 39.8 22.4
Social indicators
HDI (PNUD – 2010 and 2014 Ranking , respectively) 0.746 0.744
Life Expectancy (IFEE 2010, IBGE 2013) 75.4 74.8
Mortality Rate (FEE 2010, IBGE 2013) 11.2 15.0
Unemployment Rate (IBGE/PME – Dec/2016) 8.3% 12.0%
Illiteracy Rate (+15) (FEE 2010, IBGE 2013) 4.5% 8.5%
Macroeconomic indicators
Inflation IPCA (IBGE – acum. 12m until Mar/2017) 4.29% p.a. 4.57% p.a.
Economic indicators
GDP per capita (R$ th) (FEE/IGBE 2017) 36.3 30.4
GDP real increase (FEE/IBGE 2015) -3.1% -3.6%
Nominal GDP (R$ billion) (FEE/IBGE – 2015) 410.3 6.55% of Brazil 6,266.9
Exports (US$ billion) (MDIC – acum Jan-Mar/17) 3.3 6.57% of Brazil 50.5
9
9Economic and credit data for Rio Grande do Sul and
Brazil
Rio Grande do Sul's GDP Brazil's GDP
Accumulated rate in the last four quarters Accumulated rate in the last four quarters
(over the previous four quarters, in %) (over the previous four quarters, in %)
4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16
GDP – FEE
(State Economic -3.4 -3.9 -4.8 -4.1 -3.1 GDP -3.8 -4.7 -4.8 -4.4 -3.6
Foundation)
Agriculture 3.6 -1.2 -4.1 -5.6 -6.6
Agriculture 12.0 7.1 -3.1 -3.6 -4.5
Industry -11.0 -10.2 -8.5 -6.8 -3.9 Industry -6.3 -6.9 -6.3 -5.4 -3.8
Services -1.8 -2.5 -2.7 -2.4 -2.1 Services -2.7 -3.3 -3.4 -3.2 -2.7
Rio Grande do Sul Brazil
Credit data for Rio Grande do Sul and Brazil
Individuals 122,377 1,576,624
Balance of loans
(in March 2017) Corporations 78,121 1,499,929
(R$ million)
Total 196,510 3,076,554
Individuals 2.7% of total 4.0% of total
Default rate
(in March 2017) Corporations 4.6% of total 3.7% of total
Total 3.4% of total 3.8% of total
Source: IBGE, FEE, Brazilian Central Bank
10Ratings
Standard & Poor's
Câmbio, Banricompras
Consórcios
Global Scale Local Scale
Stand Alone
Credit Profile FundosLocal
de Currency Foreign Currency Local
Investimento
Long Term Short Term Long Term Short Term Long Term
bb- BB- - BB- - brA-
Moody's Investors Service
Depósitos: à Vista, a Prazo, de
Poupança Global Scale Local Scale
Counterparty Risk Assessment Local Currency Foreign Currency Local
Long Term Short Term Long Term Short Term Long Term Short Term
Financiamentos: Agronegócios,
Máquinas, Veículos e Equipamentos
Ba2(cr)/NP(cr) Ba3 NP Ba3 NP Cartões
A1.br de BR-1
Crédito
Fitch Ratings
Global Scale Local Scale
Folhas de
Contas a Pagar, Pagamento,
Viability Débito emLocal Currency
Conta Foreign Currency Local
Carta Fiança
Long Term Short Term Long Term Short Term Long Term Short Term
Agência Virtual
b+ B+ B B+ B A- (bra) F2 (bra)
* Updated in 05/08/2017.
11Overview of Banrisul product portfolio
Foreign
Exchange, Banricompras
Sales Group Working Capital,
Asset Management Vendor, Compror,
Leasing
Loans: Individual, Payroll-
Deposits: Demand, Time,
deductible, Consumer
Savings
loan, Housing
Financing: Agribusiness, Machines
Vehicles and Equipments Credit Cards
Payroll
Accounts Payable, Guarantee
Bank Account Receivable
Letter
Direct Debit Discount,
Virtual Branch Collection of
Debt
Instruments
12Banrisul track record
1928-1990 1991-2008 2009-2012 2013–2015 2016
Banrisul was founded in 1928 In 1997, Banrisul absorbed the Consolidation of the strategy to In 2013, increase in revenues In 2016, the acquisition of the
as a public agricultural loan branches, clients and active add efficiency and quality to related to services, reflecting the payroll of civil servants of the
and mortgage bank, whose accounts of Caixa Econômica management, from the performance of the areas of State of Rio Grande do Sul was
main activity was long-term Estadual, and began overseeing implementation of a credit cards, insurance and important to our market strategy,
mortgage loans. the payment of state employee management model focused on acquiring (Banricompras). while preserving customers’
In 1931, after incorporating payrolls and providing financial the generation of results, to the Creation of Banrisul Cartões S.A. portability rights. Banrisul signed
Banco Pelotense, the Bank services to the state of Rio development of a new credit aiming to expanding its the contract for the tendering of
began collecting taxes on Grande do Sul. model. businesses related to the services related to the payroll of
behalf of the State of Rio In 1998, as a result of Banrisul’s In 2010, the expansion of credit issuance and capture of cards, State’s civil servants with the
Grande do Sul. participation in the PROES(1), the offer represented the dominant including benefits cards, and Government of Rio Grande do
Bank underwent a restructuring, strategy with regard to asset leveraging Banricompras Sul, for a 10-year contract.
In 1934, Banrisul began
expanding, opening branches during which was received a allocation, in line with the greater acquiring network. In the beginning of 2016, the
in various cities around the capital increase of R$1,400 dynamism of the national and In 2014, Banrisul’s multibrand settlement of derivative hedging
state and acquiring public million. regional economic activity. acquiring network new name, contracts to the subordinated
financial institutions. In 2007, the Bank raised R$ 2.1 In 2012, we highlight the Vero, was announced. bond and the hiring of new swap
billion in a primary and acquisition of 49.9% share of contracts represented other
In March 1990, the Bank Signing of the partnership important financial events.
became a multiple-service secondary public offering of “Bem Produtos e Serviços”, to agreement between Banrisul and
bank, offering commercial and shares that increased the Banks’ leverage customer relationship Icatu Seguros for the creation of In October 2016, a contract for
real estate loans, financing and capital stock. channels, loan portfolio and the a life insurance and pension plan the purchase of the payroll of the
investment services. In 2008, Banrisul opened a potential distribution of products company. servants of the Court of Justice
regional sales branch and and services, and the foreign was signed with the Judicial
subordinated bond, aiming to In 2015, the current Branch of Rio Grande do Sul;
expanded its presence in the management took office. In
Santa Catarina State. reach funding sources and and, throughout the year,
increase Basel Ratio. August 2015, the holding negotiations regarding municipal
company Banrisul Icatu payroll services were celebrated.
Participações S.A. - BIPAR was
created, now part of Banrisul’s
economic Group. With a stake of
49.9% of BIPAR’s capital, it
represents an evolution in the
Bank’s business model, now
incorporating part of the results
delivered by the operation.
(1) Incentive Program for the Reduction of Public Sector in Banking Activities
With 88 years of history, Banrisul has evolved from an agricultural loan and mortgage bank to a multiple bank,
presenting solid growth over the years
13Overview of Banrisul group
Business segments Corporate structure
Voting capital
Banrisul Foundation
99.59%
Free Float 0.22%
0.17%
Social Security Institute of the 0.02%
State of Rio Grande do Sul
State of Rio Grande do Sul
99.5% 98.9% 99.7% 99.8% 49.9% 49.9%
Banrisul Icatu
Participações S.A.
Total capital
● ON – 50.1%
● PNB – 0.9%
● PNB – 49.0%
Banrisul Foundation
56.97%
Free Float 0.15%
Social Security Institute of the
State of Rio Grande do Sul
State of Rio Grande do Sul
0.05%
42.83%
14Organizational structure
General Shareholders
Committee
Armazés Gerais
Fiscal Council Accounting Board
Board of Directors
Compensation Banrisul Corretora
Internal Audit
Committee
Executive Board
Banrisul Cartões
Companies of the
CEO
Banrisul Group
Advisory Bodies Banrisul Consórcio
General
Ombudsman
Bank Management Bem Produtos e
Team Strategy and Serviços
Fundação Banrisul
Monitoring Unit
Banrisul Icatu
Committees Participações
General Secretary CABERGS
Vice Presidency and Administrative Retail and Distribution Asset Management Planning and Information Financial and IR
Credit Office
Control and Risk Office Office Commercial Office Office Expansion Office Technology Office Office
Asset Assistance and Systems
Controllership Legal Counsel Main Branch Human Credit Analysis Accounting
Management Services Development
Resources
Corporate Risk Corporate Technology
Engineering Commercial Credit FX
Management Marketing Management Infrastructure
Credit Policy and Property Commercial Unit
Corporate Real Estate Credit Special Affairs IT Governance Financial
Risk Analysis Management - Governments
Commercial
Corporate Relationship with Capital Markets and
Credit Recovery Cards Development IT Security
Governance Clients Structured Funds
Insurance, Pension
Credit Bidding and Qualified Custody Investor
Plan, and Special Microcredit
Restructuring Procurement Savings
Management Relations
Contracts and Regional
Rural Affairs
Payments Superintendencies
Branch network
15Management model
Planning Value-Based Management
1 ●
●
●
●
●
Planning guided by strategic long-term objectives
Strategic directives in putting together global budget
Strategic objectives broken down by projects and targets
Monitoring of objectives and projects
Development of people and enhancement of processes with a
2 ● Investment decisions based on NPV analysis
● Matrix model for management of expenses with a focus on
efficiency
● Infrastructure investments aligned with premises of
simplification, business continuity, and cost rationalization
focus on sustainability ● Management makes decisions as a corporate body
Sales Management Control and Risk
3 ● Model for result-based objectives
● Establishment of targets for branches and sales
●
●
representatives
Variable compensation linked to sales performance
Tools for monitoring fulfillment of credit and deposits policy
4 ●
●
●
●
Models for monitoring corporate risk
Compliance policies
Mechanisms for risk-mitigating internal controls
Risk modeling
● Teams specialized in management of primary products
● Marketing process focused on business and relationships
Decision-Making Process Credit Approval Process
5 ● Specialized management teams:
– Bank Management Team
– Administrative Management
–
Team
Sales Management Team
– Economics Management Team
– Socioenvironmental Management
–
Team
Cards and Acquiring Team
6 ● Credit scoring model based on client risk
● Credit approval through different levels:
–
–
Branch Committee
Credit Committee II (at HQ)
– – Credit Committee I (at HQ)
– Internal Controls Management Credit team
Team – Investment Team – Credit Committee II – Relevant Amounts (at HQ)
– Marketing Management Team – Asset Valuation Team – Board of Directors
– People Management Team – Corporate Risks Team
– Information Technology – Treasury Team
Management Team – Credit Restructuring Management
Team
17Objectives and strategy
● Ensure sustainable long-term growth, enhance deposit taking structure and
sources of funding, and expand revenues from deposits, lending, services, and
new business
● Attain efficiency in expenditures and administrative processes
● Optimize mechanisms for corporate risk management and internal
controls at all levels of the organization
● Expand the client service network and channels in the South region
and revitalize and standardize the business units
● Widen and diversify the base of clients with individual and corporate
relationship
● Modernize operational and management process, communication
channels with internal personnel and clients, widening the distribution of
products and services
● Modernize people management processes; succession and retention of talent;
performance evaluation and programs that support good relations at work
18Corporate governance
Level 1 requires companies to adopt practices that foster transparency and investors’ access to information
● Companies must publish more extensive financial reports, information on trading by officers, executives, and controlling
shareholders and on transactions with related parties
● Companies listed in this segment must also maintain a minimum free float of 25%
The objective of the Enhanced Corporate Governance Stock Index (IGC) is to measure the performance of a portfolio
composed of shares of companies that have good corporate governance levels
● All shares issued by companies traded on Novo Mercado or Levels 1 or 2 of BM&FBovespa are eligible for inclusion in the index’s
theoretical portfolio
The objective of the Enhanced Tag-Along Share Index (ITAG) is to measure the performance of a portfolio composed of shares
of companies that offer better terms to minority shareholders in the event of a sale of control
● All shares of companies that grant superior tag-along rights than the legally mandated level (80% of the price obtained by the
controller) are eligible for inclusion in the index’s theoretical portfolio
The Brazil Index (IBrX) is a price index that measures the return on a portfolio composed of the 100 most widely traded stocks
on the BOVESPA
● The IBrX index is composed of 100 stocks chosen from a list of stocks classified by decreasing order of liquidity
The objective of the Financial BM&FBOVESPA Index (IFNC) is to offer a segmented view of the stock market by measuring the
performance of the stocks of companies in the financial services sector
● The IFNC is composed of the most representative companies listed on BM&FBOVESPA in the sectors of financial intermediation,
other financial services, and pension plans and insurance
The MidLarge Cap Index (MLCX) measures the return on a portfolio composed by large capitalization BOVESPA-listed
companies
● Companies that collectively represent 85% of the total market cap of the stock market are eligible to participate in the MLCX index,
the remaining companies that are not included in this universe are eligible to participate in SMLL index.
The Trade Corporate Governance BM&FBOVESPA Index (IGCT) is composed of shares of companies in the IGC that
simultaneously meet the following liquidity criteria:
● High liquidity
● Participation in terms of presence in trading sessions greater than or equal to 95% in a 12-month period
The objective of the BM&FBOVESPA Expanded Brazil Index (IBRA) is to offer a wide view of the stock market
● Shares are selected according to their liquidity and weighted in the portfolios by the market value of the shares available for
trading
● Participation in terms of presence in trading sessions greater than or equal to 95% in a 12-month period
The objective of the BM&FBOVESPA Dividends Index (IDIV) is to offer a segmented view of the stock market
● Shares are selected according to the highest "dividend yields" in the last 24 months before the selection of the portfolio.
183. Key credit strengths
Banrisul highlights
Leadership
position in Brazil,
Proper risk
1 specially in the
State of Rio
7 management
practices
Grande do Sul
History of solid
2 and consistent
growth
Profitability in line
6 with guidance and
market
Retail funding,
pulverized and
Diversified loan
3 with constant
growth
portfolio,
5 delinquency and
provisions in line
Cost of funding
4
below average of
with industry Brazilian banking
system
21Banrisul ranks among the largest banks in the
country…
Number of branches in Brazil
5,119
4,877
3,414 3,387
2,654
OVERVIEW MARCH/17
Service Network
1,095
536 1,237 Total Bank Service Points
318 175 131
536 Branches
200 Service Stations
Other
501 Eletronic Service Stations
Rio Grande do Sul 491 Branches
Santa Catarina 30 Branches
Other States 13 Branches
Two Branches Overseas Miami and Grand Cayman
Source: Brazilian Central Bank – Last Information Avaliable (Mar/17).
21…especially in the State of Rio Grande do Sul
Banrisul's service network– Mar/17 Market share
Branches 536 Brazil Rio Grande do Sul
Mar/17 Dec/16 Dec/16 Sep/16
Services posts 200
Demand Deposits 1.9% 2.0% 28.4% 26.1%
Electronic sales points 501
Savings Deposits 1.2% 1.1% 13.8% 14.0%
Total number of Banrisul’s service points 1,237
Time Deposits 5.0% 5.0% 47.2% 47.4%
Loan Portfolio 1.0% 1.0% 17.6% 17.4%
Nº of Branches 2.5% 2.4% 28.2% 28.1%
Position of Banrisul among the 50 largest brazilian banks
Dec/11 Dec/12 Dec/13 Dec/14 Dec/15 Dec/16
Total Assets 11th 11th 11th 11th 11th 10th
Shareholders' Equity 11th 11th 11th 11th 11th 10th
Total Deposits 8th 7th 7th 7th 8th 6th
No. of Branches 7th 7th 7th 7th 7th 6th
Source: Brazilian Central Bank – Ranking of the 50 Lagest Banks, excluding BNDES.
Leading double-digit percentage shares of deposits, loan and branches in Rio Grande do Sul
22Historical growth
Banrisul is one of the 10 largest banks in the brazilian financial system in terms of total value of assets and shareholders’ equity and
the 7th by deposits and number of branches
Domestic ranking Historical figures
Values in millions of R$ and # of branches
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
66,938 69,039 68,890
53,211 59,562
46,744
11th 11th 11th 11th 11th 10th
Total Assets
dec/12 dec/13 dec/14 dec/15 dec/16 mar/17
5,671 6,209 6,443 6,485
4,635 5,148
Shareholders’ 11th 11th 11th 11th 11th 10th
Equity
dec/12 dec/13 dec/14 dec/15 dec/16 mar/17
38,698 42,540 43,075
30,645 34,135
26,746
Total 8th 7th 7th 7th 8th 6th
Deposits
dec/12 dec/13 dec/14 dec/15 dec/16 mar/17
528 536 536 536
512
Number of 7th 7th 7th 7th 7th 6th 468
Branches
dec/12 dec/13 dec/14 dec/15 dec/16 mar/17
Source: Brazilian Central Bank – Ranking of 50 Largest Banks, excluding BNDES.
23Funding and allocation growth
Growth in credit and funding
20.9% 20.8% 20.7% 19.5% 19.7%
16.0% 16.9% 19.0%
16.7% 17.0%
18.8% 16.9%
18.3% 19.1%
16.8% 17.2%
18.9% 16.1% 17.7%
15.7%
17.2% 17.7% 18.0% 17.1%
14.9% 16.0%
2.4%
0.6% 0.5%
5.7% -2.9% -1.6% 5.7% 4.9% -1.4%
-4.9% -3.4% -3.7%
3.8% 4.6% -4.9% -4.2% -3.2%
8.5% -5.5% 3.4% 3.3% 2.4%
8.4%
7.4%
5.1% 5.4%
Mar/15
Mar/16 Apr/15
Apr/16 May/15
May/16 Jun/15
Jun/16 Jul/15
Jul/16 Aug/15
Aug/16 Sep/15
Sep/16 Oct/15
Oct/16 Nov/15
Nov/16 Dec/15
Dec/16 Jan/16
Jan/17 Feb/16
Feb/17 Mar/16
Mar/17
Commercial Credit Growth - in % Time Deposit
Deposit Growth
Growth -- in
in %
%
10.0% 10.7%
7.9% 8.6% 8.2% 7.9% 7.7% 8.4%
5.0% 5.6% 6.0% 6.1% 6.2%
0.4% -0.4%
1.1% -2.2% -3.4% -2.9% -2.7%
-3.8% -3.9% -3.8% -4.3%
1.1% -5.2% -5.1%
-0.3% -0.7%
-5.0% -4.8% -4.8%
-6.5% -6.7% -7.3%
-9.5% -9.7% -8.5%
-10.4%
Mar/16 Apr/16 May/16 Jun/16 Jul/16 Aug/16 Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17
Total Credit Growth - in % Funding Total Growth - in % Brazilian Financial Industry Growth - in %
24Securities
Treasury
R$ million
Change 3M 12M
Total -2.2% 9.3% Excluding Matched Transactions Total
Excluding Matched
-0.3% 22.9%
Transactions
23,270.1
22,747.7
22,107.1 21,912.6
20,821.4
17,816.7 17,761.8
16,536.8 16,584.7
14,450.6
1Q16 2Q16 3Q16 4Q16 1Q17
25Cost of funding below average of Brazilian banking
system
Banrisul has a diversified source of funding, with time deposits corresponding to 57% of total funds raised and under management, and cost of
funding of approximately 86.2% of the Selic rate.
Total funding Cost of funding in proportion to the Selic rate
R$ million
Cost of Funding - % Selic Cost of Funding - % Selic - Time Deposits
89.2% 88.6% 89.3%
12 months: 10.7% 87.2% 87.8%
3 months: 0.7%
85.3% 86.2%
84.5% 84.5%
80.9%
Mar-16 Jun-16 Sep-16 Dec-16 Mar-17
46,351 46,695
Cost of Funding: includes deposits, money market funding, FRDJ, funds from acceptance and
44,259 44,522
issue of securities and subordinated debt.
42,192
Funds raised and under management (Mar/17)
3% 3%0%
5%
Time Deposits
13%
Investment Funds
Saving Account
Demand Deposits
Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Resources from Bills
57%
Total Funding: includes deposits + resources from bills + subordinated debt. Subordinated Debt
19% Other Deposits
26Diversity of funding and loan portfolio
The diversity of funding sources and loan credit portfolio significantly reduces Banrisul’s credit risk
Commercial credit portfolio (Breakdown) Funds raised and under management
R$ Million R$ Million
% Change 3M 12M
Individuals 4.6% 8.7% 10,698
10,014
Companies -1.9% -15.4% 9,862 10,100 278 1%
9,480 604 330
13,267 357 479 1,979 1,832 1,859 1,760 4%
4%
12,209 11,937
12,688 1,941 2,734 1,755 1,862
2,482
1,842 3,004 2,592 5%
2,671 2,649
11,217 2,605 7,706 16%
7,522 7,608
7,525
8,826 7,467
8,338 8,092 7,607 7,464
30,334 31,598 32,500 70%
27,152 28,992
mar/16 jun/16 sep/16 dec/16 mar/17 mar/16 jun/16 sep/16 dec/16 mar/17 mar/17
Time Depo sits Saving Account Demand Deposits
Individuals Companies Resources from B ills Foreing Fund ing Other Deposits
Credit breakdown (Mar/17)
R$ Million Long Term, 1,588, 5% Others -
Rural, 2,586, 8%
Individuals; Bem Produtos e
Other, 860, 3% Ow n; 5,589; 56%
Real Estate, 3,836, 4,142; 29% Serviços; 3,452;
13% 34%
Individuals Payroll
14,207 Loans;
66% 10,064;
71%
Others -
Companies;
2,391;
32%
Companies
7,464 Working
34% Capital;
Commercial, 21,671, 71% Aquired; 1,024;
5,074; 10%
68%
27Diversity of funding and loan portfolio (cont’d)
Funding
R$ Million
46,351 46,695
39,196 43,039 330 278 1%
35,012 743 1,832 5% 4%
570 3,004 2,592 1,760
28,220 352 3,174 1,992 7,608 1,979 7,706 16% 4%
2,223 1,859
22,387 420 1,862 3,281 7,574 2,349
27 1,158 3,398
3,400 7,762 2,838
315 6,991 2,506
3,195 32 5,836
5,136 31,598 32,500 70%
27,208
19,904 22,523
13,997 17,090
dec/11 dec/12 dec/13 dec/14 dec/15 dec/16 mar/17 mar/17
Time Deposits Saving Deposits Demand Deposits Resources from Bills International Funding Other Deposits
Deposits by maturity* (Mar/17) Time deposits by interest rate (Mar/17)
(% of total) (% of total)
47.43%
67.9%
29.37%
23.9%
10.72%
5.49% 6.99%
4.3% 3.8%
Without Maturity Up to 3 months 3 to 12 months Above 12 months Below 6% 6% - 7% 7% - 8% 8% - 9% Above 9%
* Total Deposits less Foreign Funding.
28Diversity of funding and loan portfolio (cont’d)
Time deposits – breakdown by category (Mar/17) Commercial credit – breakdown by category (Mar/17)
Companies
30% Companies
36%
Individuals
64%
Individuals
70%
Time deposits – breakdown by larger depositors (Mar/17) Loan portfolio – breakdown by larger borrowers (Mar/17)
88% 86%
3% 4%
5% 6%
4% 4%
10 Largest 11th to 50th 51st to 100th Others
29Low delinquency rates
Banrisul has a disciplined credit policy
Credit portfolio - indicators Non-performing loans – Mar/17
174.0% 179.1%
156.1% 161.3%
155.0%
160.8%
154.5%
136.7%
126.9% 127.3%
> 90 days
88.5% 88.5% 87.0% 87.0% 87.0%
5.6%
Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 5.0%
Normal Risk (AA to C) Cover Ratio > 60 dias Cover Ratio > 90 dias 4.2%
3.9%
2.9%
8.7% 8.9%
8.4%
7.6% 7.8%
6.6%
6.0%
5.7% 5.6% 5.5%
5.4%
4.9% 4.8% 5.0% 5.0%
Banrisul
Bradesco
Santander
Banco do Brasil
Itaú Unibanco
Mar/16 Jun/16 Sep/16 Dec/16 Mar/17
NPL > 90 days NPL > 60 days Total Provisions/ Loan Book
30Recurring returns and meeting of guidance
Banrisul has consistently met the guidance indicated to the market
Guidance Key ratios
Year 2017 Efficiency Ratio
Banrisul’s Guidance
Expected * 52.1% 53.5%
49.4% 49.9% 51.3%
Credit Portfolio 3% to 7%
Commercial – Individuals 5% to 9%
Commercial – Companies -2% to 2% 1Q16 2Q16 3Q16 4Q16 1Q17
Real Estate 1% to 5%
Basel Ratio
18.3% 16.8% 17.1% 16.9%
Provision Cost / Average Credit Portfolio 4.5% to 5.5% 15.8%
Allowance for Loan Losses/ Average Credit Portfolio 8.5% to 9.5%
Funding 10% to 14%
1Q16 2Q16 3Q16 4Q16 1Q17
ROAE
Recurring Return on Average Shareholders’ Equity 9% to 12%
12.6% 13.2% 11.8%
Efficiency Ratio 49% to 53% 10.1%
6.7%
Net Financial Margin / Interest Earning Assets 7.5% to 8.5%
1Q16 2Q16 3Q16 4Q16 1Q17
* Published in 4Q16 and maintained in 1Q17.
ROAA
1.2%
1.1% 1.1%
0.9%
0.6%
1Q16 2Q16 3Q16 4Q16 1Q17
314. Operational performance
Banrisul business units
Banrisul
Loans to individuals Loans to corporations Other businesses
Banrisul focus on increasing lending operations for Micro and small businesses, as well as medium-sized Banrisul offers several complementary products
individuals and large businesses through:
Public Sector ● Short- and long-term financing, except to the ● Payroll services
● Payroll-deduction loans to state and municipal government of the state of RS ● Credit and debit cards
public employees, and also to pensioners and ● Working capital ● Banricompras
retirees who are beneficiaries of the INSS ● Guaranteed account ● Pre-paid cards: Meal, fuel, food and gifts voucher
● All products offered to private sector ● Notes discounts ● International business and foreign exchange
Private Sector ● Advance payment of receivables ● Asset management
● Personal loans ● CSC for machines and vehicles ● Treasury operations
● Overdraft ● Leasing ● Distribution of insurance, private retirement and
● Direct Consumer Credit, or CDC capitalization plan
● Payroll-deduction loans ● Microcredit
● Leasing
Real estate loans Agricultural loans Loans to the public sector
Various kinds of real estate financing for individuals Dedicated to the agricultural sector: Short- and long-term financing to entities in the
and corporations for the acquisition, construction ● Financing costs associated with planting acreage public sector, except to the government of the state
and remodeling of properties and animal breeding of Rio Grande do Sul
● These loans generally have longer terms and lower ● Advance payment of receivables and notes ● The amount of each lending transaction and the
interest rates than personal loans discounts borrowing entity must conform to the requirements
● The financed asset serves as collateral for real for public sector lending set forth by the Ministry of
● Financing the storage of products for future delivery the National Treasury
estate financing, through a mortgage
● Financing equipment and machinery repairs, and ● Financial agent of the State of Rio Grande do Sul
the construction of processing units and and its municipalities
infrastructure; and
● National Program for Strengthening Family Farming
Banrisul has expertise in loan creation in a wide range of industries
33Loans to individuals
Strategy highlights Number of clients (Individuals and companies)
● Banrisul focus on increasing lending operations for individuals,
addressing the diverse credit needs of its clients
– Payroll deduction loans: creates excellent economies of scale 3,980,010 3,965,162 3,995,313
3,926,205
– Real estate segment loans: focus on strengthening clients
fidelity
– Agricultural segment loans: financing to fund costs and
investments in agricultural properties
2014 2015 2016 mar/17
Type of loans and clients
● Banrisul’s highest volume of loans to individuals is dedicated to state and municipal public employees, and also to pensioners and retirees who are
beneficiaries of the INSS. All public employees of the state of Rio Grande do Sul are pre-authorized to use this line of credit
● The risk of default on these loans is low, because in most cases they involve small amounts and repayment amounts are deducted directly from the
borrower’s paycheck
● Banrisul offers individual customers overdraft protection as a loyalty incentive, which consists of a revolving limit to be used with a checkbook or
Banricompras debit card
● The personal credit operations are offered in an automated way, through models of risk scoring
● Through the acquisition of Bem Produtos e Serviços, Banrisul diversifies its channels for supply of payroll loans to federal and state public servants outside
of Rio Grande do Sul
34Loans to individuals
Credit portfolio operational results
Commercial credit distribution by term (Mar/17) Commercial credit interest rate by product (Mar/17)
(% of total) (% p.m.)
41.6% Credit Card 8.81%
39.9%
Overdraft 11.94%
Payroll-deductible 2.07%
13.3%
5.2% Non payroll-deductible 4.77%
Up to 1 year 1 to 5 years 5 to 15 years Above 15 years Others - Individuals 1.60%
NPL evolution (> 90 days) Breakdown of Credit to Individuals (Mar/17)
NPL Individuals Total NPL
Long-Term Finance,
0.0%
Rural, 9.6%
Total: R$19.1 bi
5.4%
Real Estate,
4.9% 4.8% 5.0% 5.0%
16.5%
3.9% 3.7% 3.8% 3.9% 3.9% Non-Direct
Lending,
1Q16 2Q16 3Q16 4Q16 1Q17 73.9%
35Loans to Companies
Highlights Breakdown of loans to corporations (Mar/17)
1.6%
Strategy 8.8%
● The amounts, fees and terms to micro and small corporations are set 6.0%
based on pre-established policies, while the terms of loans to medium
and large businesses are negotiated 6.6%
Type of loans and clients
● Micro-businesses and small- and medium-sized companies represent
~59% of Banrisul’s corporate customers 12.2%
64.7%
● Representation offices in main Brazilian capitals
● Banrisul is present in all the main Brazilian cities. The bank has also
offices in the USA
● Through this large base, Banrisul reaches the main companies in Brazil Non-Direct Lending Long-Term Finance Rural
Real Estate Foreign Exchange Others
Loans by company size (Mar/17) Loans by economic sector (Mar/17)
Micro- Public Sector
companies 0.5%
3% Housing Industrial
Small 23.5% 23.0%
Companies
12%
Large
Companies
41%
Commercial
Rural
15.6%
15.8%
Middle Other
Companies Services
44%
21.6%
Total: R$ 11,410.2 mi
36Loans to Companies
Credit portfolio operational results
Commercial credit distribution by tenor (Mar/17) Commercial credit interest rate by product (Mar/17)
(% of total) (% p.m.)
57.5%
Working Capital 1.68%
36.8%
Debtor Accounts 4.51%
5.3%
0.4%
Up to 1 year 1 to 5 years 5 to 15 years Above 15 years
Compror/Vendor 1.91%
NPL evolution (> 90 days)
NPL Companies Total NPL
Debt Instruments Discount 2.59%
5.4%
4.9% 4.8% 5.0% 5.0%
Others - Companies 1.06%
6.2% 6.2% 7.8% 6.7% 6.7%
1Q16 2Q16 3Q16 4Q16 1Q17
37Vero Network
Highlights Banricompras card
Volume +8.7%
● The Banricompras cards are exclusive for and free of charge to Banrisul
Transactions +10.1%
customers, which can use their debit card to make purchases at affiliated
merchant stores. Payments can be made at sight, in installments, or even 40
.0
predated, all without any charges, fees or interest rates, and with the 32.2 30.5 30.5
27.7 27.3 29.3 27.7
additional safety benefit provided by using chip-embedded cards for safety 30
.0
transactions. 20
.0
● During the first quarter of 2017, 30.5 million transactions with the use of
Banricompras Card were registered, with a financial turnover of R$30.5
10
.0
billion. 2.5 2.7 2.5 2.5
2.3 2.3 2.3 0.0
● On March 28, 2014, Banrisul’s multibrand acquiring network new name, -10.0
Vero, was announced, offering to merchants and store owners a wide
variety of products and services that help increase sales. -20.0
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 1Q17
● In 2016, it is worth noting the expansion of the portfolio of cards that can be
captured by Vero, which now accepts the VR Benefícios card, in addition to
Financial volume (R$ billion) Number of transactions (million)
Visa, MasterCard, Banricompras, BanriCard and VerdeCard.
● Banrisul offers several benefits to merchants who use the Vero network: all Vero Nerwork
receivables from sales deposited in one account, sales performance with all
Volume -14.5%
card brands controlled in a single statement, credit line for working capital of
Transactions -12.3%
up to 100% of their card sales, without the payment of IOF (tax on financial
transactions), among others. 10
.0
73.8 78.6 79.1 73.8
10
00
.
● In 1Q17, Vero captured 64.7 million transactions and the financial volume 9.0
71.0 64.7 64.7 80
.0
amounted to R$5.3 billion. Debit and credit card transactions amounted to 8.0 60
.0
6.6 6.7
42.5 million and 22.2 million, respectively. 7.0
6.2 6.0 6.2 40
.0
6.0
5.3 5.3 20
.0
5.0 0.0
4.0 -20.0
3.0 -40.0
2.0 -60.0
1.0 -80.0
0.0 -100
.0
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 1Q17
Financial volume (R$ billion) Number of transactions (million)
385. Risk management
Corporate risk management
Until Management Integrated Since Board of
August
August in Various Risk March Risk
Units 2010 Management Management
2010 2011
Creation of a unit for Creation of a control and
Credit risk
corporate risk management risk office
● Credit units ● Credit risk ● Structure
● Credit policy and risk analysis unit
● Market and liquidity risk ● Policies
● Credit recovery unit
● Operational risk ● Management process
Market risk and liquidity
● Financial unit
Operational risk
● Controllership
40Credit risk management
Responsibilities
Institutional Policy Management Communication
for Credit Risk Process and Information
Management
● Office Risk identification, evaluation, ● Reports to top management
monitoring, control, mitigation
● Board of directors ● Financial statements
● Credit scoring models and credit
and behavior score for individuals
● Corporate risk committee ● Investor relations site
and businesses
● Economics management team ● Corporate risk policy – retail and ● Training
corporate
● Corporate risk management unit ● Rating levels ● Intranet
● Risk limits
● Credit units ● Operational limits – credit
instruments and financial
● Credit policy and risk analysis unit institutions
● Stress tests
● Credit recovery unit ● Management reports
● Structuring of guaranties
● Pricing
41Market and liquidity risk management
Responsibilities
Institutional Policies Management Communication
for Market and Process and Information
Liquidity Risk
Management
● Office Risk identification, evaluation, ● Reports to top management
monitoring, control, and
● Board of directors mitigation ● Financial statements
● Management of financial
● Corporate risk committee ● Investor relations site
transactions and new products
● Treasury committee ● Training
● Management of assets and
● Economics management team liabilities ● Intranet
● Corporate risks management unit
● Risk models
● Financial unit
● Establishment of exposure limits
● Stress tests
42Operational risk management
Responsibilities
Institutional Policy Management Communication
for Operational Process and Information
Risk Management
● Office Risk identification, evaluation, ● Reports to top management
monitoring, control, and
● Board of directors mitigation ● Financial statements
● Mapping of processes
● Corporate risk committee ● Investor relations site
● Audit reports
● Internal controls ● Evaluation checklist ● Training
● Management committee ● Risk matrix ● Intranet
● Corporate risk management unit ● Key risk indicators
● Databank of losses
● Controllership
● Fraud prevention
● Internal controls agent
● AML
● Process managers ● Business continuity plan
43Organizational structure
Board of Directors
Banking Management
Committee - CGB
Economic Management Vice Presidency / Control and Internal Controls Management
Committee - CGE Risk Committee - CGCI
Credit Policy and Risk Analysis
Credit Restructuring Unit Credit Management
Unit
Corporate Risk Management
Credit Recovery Unit Credit Unit
Unit (1)
(1) Responsible for the process of Credit Risk Management.
Risk management functions reports directly and independently to the board of directors
44Credit risk management
Results
Breakdown by credit ratings (Mar/17) Ten largest past due loans (Mar/17)¹
(R$ million)
G H
F 80.89
E 1% 1% 6%
D AA – C:
2%
3%
87%
AA
C 12%
6% 47.73
37.52 35.92
B 27.95 26.26
16% 17.16 16.38 13.81
9.03
A
53%
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
¹ Past due more than 60 days
Concentration
2015 2016 Mar/17
84% 85% 86%
5%
4% 4%
6% 6%
5% 4% 6%
4%
10 Largest 11th to 50th 51st to 100th Others
Banrisul has a balanced risk exposure by customer concentrations
45Risk factors
Risks relating to the Bank and to the Brazilian Banking Industry
● Changes in interest rates set by the Central Bank could adversely affect Banrisul’s results of operations and profitability;
● Measures adopted to increase competition in the banking sector may negatively affect Banrisul;
● Changes in federal and state legislation and/or Central Bank regulations may adversely affect Banrisul;
● Minimum capital requirement limits imposed on Brazilian financial institutions may negatively affect the results of Banrisul’s
operations and its financial situation;
● Monetary regulations imposed by the Central Bank and changes in bank reserve and compulsory deposit limits may adversely affect
Banrisul.
Risks relating to macroeconomic factors
● The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. This
involvement, as well as Brazilian political and economic conditions, could adversely affect Banrisul’s business and the market price
of its Class B preferred shares;
● Inflation and efforts by the Brazilian government to combat inflation may contribute significantly to economic uncertainty in Brazil and
could harm Banrisul’s business, results of operations and the market value of its Class B preferred shares;
● The market value of the securities issued by Brazilian companies is influenced by the perception of risk in Brazil and other emerging
economies, which may have a negative effect on the market price of Banrisul’s shares and may restrict its access to international
capital markets.
46Ownership
● Banrisul, a private law, mixed capital open joint stock company, has the Government of state of Rio Grande do Sul as it principal
stockholder. The corporate governance structure of Banrisul guarantees the rights and the interests of controlling or minority
stockholders, and their alignment with the rights of clients, employees, suppliers, the government and the community in general;
● The Corporate Governance Code presents a panoramic view allowing simplified queries of the principles and practices of Banrisul,
contributing to strengthen the transparency of its management, increase its institutional value and facilitate access to its capital by
investors, besides contributing to its permanence;
● Corporate governance is an organization management concept that addresses matters relating to the power of control and
management of a company, as well as the forms and spheres of its practice, and to the sundry interests of an entrepreneurial
nature, involving relationships between and among stockholders and unit holders, the Board of Directors, Senior Management,
Independent Auditors and Fiscal Council;
● In adopting good corporate governance practices, Banrisul demonstrates that its management is committed to transparency,
approval of accounts, equity and social and environmental responsibility, supported by the use of monitoring tools that align the
behavior of executives with the interest of stockholders and of the Company.
47Transactions with related parties
● We are the sole official bank and the main financial institution of the state Rio Grande do Sul, our controlling shareholder.
– By law and contract, we are responsible for the collection of taxes, transfer of state funds and the administration of payments to
state public servants, retirees and suppliers.
– Furthermore, our broad network of branches and banking service stations reinforces our presence in and our relationship with
the municipalities of Rio Grande do Sul.
● We also provide services to state governmental entities and to the majority of Rio Grande do Sul’s municipal governments.
– Services to these entities also include tax collection, fund transfers to these municipalities and government and supplier payroll
administration.
– We also offer loans to municipal governments located in the state of Rio Grande do Sul.
● We believe that we have an excellent relationship with the public sector in Rio Grande do Sul. This relationship greatly facilitates our
activities in the state and our access to both active and retired government employees.
– It also allows us to expand our payroll-deduction loan portfolio, which are made to active and retired government employees and
on average has a significantly lower default rate when compared to other types of personal loans.
– The payroll-deduction system is regulated by a number of federal, state and municipal laws and regulations. These laws and
regulations establish deduction limits and do not allow a public employee or a private sector employee to revoke the
authorization granted to a bank to deduct the necessary amounts to repay the outstanding payroll-deduction loan balance.
486. Treasury management
Asset-liability management
Overview
Members of the Treasury Committee
● Executive Superintendent of the Financial Unit
● Executive Manager, Financial Market, of the Financial Unit
● Executive Manager, Technical Analysis, of the Financial Unit
● Executive Manager, Investment Operations, of the Financial Unit
● Executive Manager, Brazilian Payment System (SPB), of the Financial Unit
Meeting frequency
● Ordinary meetings on a weekly basis and special meetings whenever necessary
Objectives
● Ensure solvency and liquidity;
● Establishing in the culture of the organization a structured process of management, printing agility, objectivity, continuity and
efficiency in the management of treasury policy and liquidity;
● Maintain liquidity level within established limits;
● Ensure that the liquidity management process complies with regulations in effect and is aligned with best national and international
practices;
● Ensure that Banrisul’s processes identify, measure, evaluate, communicate, monitor, control, and mitigate liquidity risk.
50Investments management
Overview
Banrisul’s treasury policy is conservative. Thus, there are operating limits on transactions involving treasury and proprietary
portfolio
● The Bank’s total minimum cash is the sum of the minimum amounts required for each related sources (funding) and uses (allocations), as well
as for each of the operating expenses of the Bank. It will always be the highest value between the present methodology and 100% of the
shareholders’ equity of the last semester;
● Up to 50% of current and non-current assets, in committed transactions secured by federal securities, based on the balance sheet for the
immediately preceding month;
● Up to 50% of current and non-current assets, in federal securities issued by the national treasury or the Central Bank of Brazil, based on the
balance sheet for the immediately preceding month;
● Up to 10% of current and non-current assets, in securities issued by financial companies or institutions and/or interbank deposits, based on the
balance sheet for the immediately preceding month; and
● Up to 100% of the value ascertained in mismatches between lending and borrowing (from rates, currencies, and index components), in
derivative financial instruments (forward market, futures market, swaps, and options) for the exclusive purpose of protecting such transactions.
Position of own portfolio as of March 31, 2017 (R$’000)
● Selic Floater Bonds (LFTs) 29,196,719
● Financial Debentures (“Letras Financeiras”) 182,311
● CVS 112,175
● Debentures 49,890
● Certificates of Real Estate Receivables (CRIs) 23,803
● Stocks of Listed Companies 19,614
● Shares in Funds 127
517. Information and technology
Information and technology
Overview
Overview and strategy Overview of the main investment plans
● The IT strategy supports the strategic plan and establishes ● Approximately R$950 million should be invested in
actions that involve automating the bank’s businesses, infrastructure for hardware, software, communications,
keeping the network available, and updating its technological security, labor, and training in the 2017-2021 period.
assets and product portfolio (systems) through the use of
proprietary methodology and resources.
● The business contingency plan is operational and covers the
main assets of the bank. Its status has been validated by the
Central Bank of Brazil, which has considered it to be
adequate and reasonably mature.
538. Human resources
Human resources
Overview
Recruitment and selection Training Relations with workers
● The Bank hires employees through a public-sector competitive ● Banrisul’s training program aims at preparing and improving ● Positive relationship with all union entities, and absence of
hiring process and recruits them through public the management and compliance skills of all employees, with existing or threatened disputes. Currently, there are five
announcements a business focus, in this program, refresh and training courses Special Joint Commissions composed of representatives of
● Internal positions are filled through a selection process are provided to employees that manage the portfolios of bank federations/unions: New career structure, Health,
composed of two stages: knowledge test (points earned for individual and corporate clients, branch managers and Banrisul Foundation, Banrisul Employees Savings Fund
academic background are added to this score) and behavioral technical staff of the general management units (Cabergs), and Safety
profile analysis (composition, group dynamics, situational ● Training courses are also offered to new employees and ● Low employee turnover at the Bank – most employees
tests, psychological tests, and individual interviews) employees commissioned as business managers and voluntarily leave the Bank due to retirement
● Management positions are announced through PROMOVE, supervisors
the internal communications system, which enables ● The Company also offers incentives for employees to
employees to indicate their interest in applying for existing conclude their undergraduate and graduate studies and in-
open positions. Applications are submitted using the company continuing education or specialization courses given
candidate’s personal password, without interference from third by large universities. Additionally, it also provides incentives
parties for selected employees to learn foreign languages
● Also, it offers courses to prepare employees for professional
certification exams and renewal tests
● In 2013, the opening of the distance education program (EAD
Banrisul), aims to provide training courses for strategic
products and services of the Bank, offered to the entire
employee base.
Work Force – Headcount Breakdown
12,181
12,374 11,506 11,648 12,319
6 11,117 11,871
59 12
19 657 1,221
2,149
12,175
11,447 11,636 11,214
11,098 11,098
10,225
2011 2012 2013 2014 2015 2016 mar/17
Employees Interns
55You can also read
