Banco do Estado do Rio Grande do Sul Institutional Presentation
Investor Relations
janeiroJ u n e 2 02040 2 0 Covid-19
Institutional Presentation Corporate Profile
This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial Business Strategy results, and those related to growth prospects of Banrisul. These are merely projections and, as such, are based exclusively on the expectations of Banrisul’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward- looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the Financial Summary performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banrisul’s filed disclosure documents and are, therefore, subject to change without prior notice. BANRISUL .
A c t i o n s
2 Q 2 0 2 0
Customer Support
Covid-19 Renegotiated Credit Portfolio
Digital Channels Apresentação Institucional BANRISUL . 2 Q 0 2 0 Actions
Health and medical assistance from Moinhos de Operational home office contingency plans, Vento Hospital to define prevention protocols without jeopardizing the continuity of activities and to provide telemedicine service to employees with Covid-19 symptoms or that have tested positive for the virus
Customers serviced at branches by Provision of personal protective appointment, in observance to restrictions equipment to employees working at linked to coping with the pandemic branches
Especial care to employees in risk groups, which Widely disseminated self-service channels, with are working remotely from home tutorials for accessing services, as well as
servicing customers through social networks Institutional Presentation BANRISUL . 2 Q 2020 Customer Support
Individuals Companies Agribusiness Intensificação na oferta de soluções relacionadas ao acionamento de Additional limits for Banricompras, pre- Insurance-related solutions to deal with Additional limits for Banricompras, pre- seguros, prorrogação de operações e approved credit limits available, the effects of drought, extension of approved credit limits available, contratação de novos créditos. extension of maturities on consumer extension of credit maturities and offer maturities on credit operations and new loans and on payroll loans to public of working capital and pay roll credit lines credit concession employees
Insurance Vero Real Estate
Special conditions for the renewal of POS with no cost, fees exemption to Grace period (deferral of charges) of up to Implementação de condições vehicle and home insurance, in addition customers with reduced sales volumes, six installments (by customer request) on específicas para as renovações de to improving remote solutions for the MDR rates as practiced prior to March real estate loans, offered to individuals and Seguros de Automóvel e Residencial, acquision of life insurance 2020 companies alike além da opção de contratação remota
Institutional Presentation para Seguros de Vida. BANRISUL . 2 Q 2 0 2 0 Renegotiated Credit Portfolio
R $ t h o u s a n d s Installments Contracts Renegotiated Installments - Individuals (%) Individuals Payroll Loans 188.047 36.633 Real State 63.658 10.731 Payroll Loans Consumer Loans 65.459 145.093
Vehicles 181.967 89 Real State Credit TOTAL 317.347 192.546
Companies Personnel Credit Corporate 124.72 358 Middle 54.50 2.062 0% 10% 20% 30% 40% 50% 60% 70% PMEs 59.496 23.528 BNDES (onlendings) 13.077 690 TOTAL 251.799 26.638 Renegotiated Installments - Companies (%)
Rural Credit 94.746 997 Small Companies TOTAL 663893 220181 Middle
Loans with renegotiated Corporate Renegotiated installments 1.2% Individuals installments correspond to Institutional Presentation1.86% of the total loan 3.9% Corporate approximately 14% of the portfolio BNDES Stand Still 3.9% Companies credit portfolio 0% 10% 20% 30% 40% 50% 60% BANRISUL . 2 Q 2020 Digital Channels
In a scenario of social distancing, digital channels have become even more important, as they are the main channel of relationship between the Institution and the customers.
ReleaseRelease of updatedof updated VersionVersion of Banrisulof Banrisul Digital app;Digital Increasingapp; limits for transactions using My Account, Affinity and Office App channels in the Banrisul Digital app; SchedulingIncreasing of Servicelimits atfor Branchestransactions using the usingapp; My “TalkAccount,-to-yourAffinity-Accountand-Manager”Office WhatsAppApp channels button forin customersthe Banrisul of theDigital Afinidadeapp segment.;
Scheduling of Service at Branches using the app;
“Talk-to-your-Account-Manager” WhatsApp button for customers of the Afinidade
segment. Institutional Presentation BANRISUL .
Corporate Profile
T i m e l i n e
2 Q 2 0 2 0 Administrative Structure
Corporate Management and Governance Committees Profile Board of Executive Officers Corporate Governance
Banrisul listed shares
Sustainability
Human Resources
Institutional Presentation A w a r d s BANRISUL . 2 Q 2 0 2 0 Corporate Profile
Focusing on the efficiency of management, centering objectives on faster, simplified processes, improving IT infrastructure and Efficiency architecture, improving risk management and also adhering to best management practices.
Following the path of transformation, through the implementation of new business models and new technologies, to maintain Transformation Banrisul’s competitiveness.
The strength of its employees is key to achieve organizational success. To this end, the Bank has developed a challenging, agile Employees environment, fostering the engagement and improving the management of human resources.
Considering the similarity of products offered in the financial market, the entry of new competitors and the targeting of customers Customers by perception of value and innovation, Banrisul intensifies focus on customer, in order to provide the best experience in financial solutions and raise their level of satisfaction.
Essence Reinforce the commitment to being a retail bank, with a focus on Rio Grande do Sul. Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Timeline
1928
1993 On September 12, 1928 Banrisul starts operating as 1943 It is inaugurated the first ATM rural credit and mortgage room, totally automatized, at public bank and its main the Praia de Belas Shopping, activity was the long term Banrisul receives its first in Porto Alegre. lending with mortgage as female employees on its collateral. office force.
1931
1964 In the beginning of the 30’s years, after incorporating the Pelotense With 35 years of existence and highlighted Bank, Banrisul started being the tax position at the national banking scene, collector for the State of Rio Institutional Presentation Banrisul inaugurates its current main office, Grande do Sul. Listed on the Stock at the Capitão Montanha Street, at the exchange in September, 1931. heart of Porto Alegre. . BANRISUL . 2 Q 2 0 2 0 Timeline
2007
2019 It is completed the process 2014 of capitalization and secondary emission of Banrisul launched the campaign preferred shares, held by Banrisul launches its “Agro is our business”, focusing the State of Rio Grande do new multibrand on rural credit. Sul. Banrisul joined the acquirer company, Vero. Level 1 of Corporative 2005 Governance at the São Paulo Stock Exchange. Banrisul launches the Banrisul Internet Card with smart chip, 2008 innovation at Latin America 2017
which brings more safety at Bem Promotora comes up, a company Institutional Presentation electronic transactions. which acts as payroll loans originators for INSS retired, pensioners and public Banrisul launched the federal employees. Banrisul Digital app. BANRISUL . 2 Q 2 0 2 0
Administrative Structure Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Management and Governance Committees
The Board of Directors is composed by up to 11 members, of which at least 25% are independent members.
Cláudio Eduardo Cunha Márcio Gomes Irany de Oliveira Vacant Seat Coutinho Mendes da Costa Pinto Garcia Sant’Anna Junior Minority Shareholders elect 2 members to the Board of Directors.
Adriano Cives Rafael Andréas Ramiro Silveira João Verner Eduardo Rodrigues Jorge Luís Seabra Weber Severo Juenemann Macluf Tonetto The Fiscal Council is composed by 5 members (with equal number of Chairman alternate members) must have higher education level and experience.
Member elected Member elected Independent Independent Independent by preferred by minority member member member shareholders shareholders Owners of preferred shares and minority shareholders elect 2 members to the Fiscal Council Independent members
Eligibility and Risk Committee Audit Committee Compensation Committee Other Committees
Comprised of at least 3 and Composed of 3 members Composed of 3 members, at most 5 members elected by the Board of residing in the country with Banrisul has other 15 Institutional Presentationappointed and removable by Directors in the first education standards and committees assisting the the Board of Directors at any meeting held after the technical skills according to Executive Board. time. Ordinary General Meeting. the duties of the position. BANRISUL . 2 Q 2 0 2 0 Board of Executive Officers
Cláudio Coutinho Mendes Irany de Oliveira Marcus Vinícius Jorge Fernando Sant’Anna Junior Feijó Staffen Krug Santos CEO Deputy CEO and Risk and Financials and Investor Information Technology Controls Officer Relations Officer and Innovation Officer
InstitutionalRaquel Presentation Santos Carneiro Fernando Postal Claíse Müller Rauber Osvaldo Lobo Pires Suzana Flores Cogo
Institutional Officer Distribution and Retail Products, Segments and Digital Credit Officer Administrative Officer Commercial Officer Channels Officer BANRISUL . 2 Q 2 0 2 0 Banrisul Group Companies
Subsidiaries
Banrisul Cartões Banrisul Corretora Banrisul Consórcio Banrisul Armazéns Gerais Banrisul Seguridade Acquirer of the payment Intermediary with B3 in spot, Manages consortium It acts as a Bonded Focus on maximizing the means sector with wide options, term, future and fixed groups for the acquisition Warehouse and Certified distribution of Insurance, coverage of establishments income markets through of automobiles, trucks, Bonded Warehouse / dry private pension and in Rio Grande do Sul. Tesouro Direto motorcycles, real estate port capitalization products and services.
Affiliated
Rio Grande Seguros e Previdência Bem Promotora Rio Grande Capitalização VG8JV Tecnologia S.A. Operates exclusively into Acts as originator of payroll Offers savings bonds Offers integrated payment Banrisul’s distributions channels loans offered to INSS retirees through the Bank’s solutions to shopping centers offering life insurance and private Institutional Presentation and pensioners and federal distribution channels located in its operating area pension plans products. civil servants with exclusive rights.. throughout the national territory.; BANRISUL . 2 Q 2 0 2 0 Corporate Governance
Other Policies Aligned with Good Market Prevention Program for Money Interest on Equity and Practices Laundering Fighting and Financing Dividend Policy of Terrorism Annual Financial Statements Transparent Shareholder Disclosure in International Standard Remuneration Policy regarding Establishes mechanisms, IFRS / IASB the distribution of dividends and procedures and rules that guide Security Trading / or payment of interest on the performance of employees in equity, always observing the conducting business, in order to Anti-corruption 100% tag along for all Company's capital structure Banrisul shares prevent the occurrence of operations related to these illegal Related Party Transactions acts in the institution 50.61% Free float Banrisul has suspended the quarterly payment of Interest on Indication and Succession These principles cover all Equity during the year of 2020 , Banrisul Group companies in attendance to the CMN Capital and Corporate Risk Resolution of disputes or Resolution No 4820/20 Management controversies by the Market Arbitration Chamber
Institutional Presentation Code of Ethics and Conduct BANRISUL . 2 Q 2 0 2 0 Banrisul listed shares
Listed at Level 1 of B3 Corporate Governance since 2007
Foreigners are 24.6% of the total base and 51.2% of the Free Float
Average daily trading financial volume of R$35.1 mm 1 PN ON
1 2,7 MM average daily trades shares 98.13% of Voting More than 80,000 individuals in our shareholder base Capital
Banrisul is present in seven of B3’s listing indexes Institutional Presentation
1 2Q2020 BANRISUL . 2 Q 2 0 2 0 Sustainability
Signatory to the UN Global Pact Aligned to UN’s Sustainable Local Communities-Oriented Sustainable Actions since 2013 Development Goals
Agricultural seeds distribution to farmers, schools, quilombolas and indigenous people.
Personal and Professional development of Young people from 16 to 19 years.
Aims to minimize damages caused to the Institutional Presentation environment and to enhance social inclusion. BANRISUL . 2 Q 2 0 2 0 Human Resources
Relation with Employees Employees Profile Qualification 55% men and 45% women, being that 33% of leadership and 807 improvement and Banrisul hires employees top management functions are occupied by women qualification courses through public contest + 24 thousand participations Teams with presential work regime and home office IT professionals correspond to 13% of employees, approximately Around 6.7 hours of professional - distinguished career framework and low turnover qualification per employee health advisory from Moinhos de Vento Hospital +35.0 thousand hours in on-site to help define the protocols courses and 79.5 thousand for preventing Covid-19. hours in distance learning 10,283 10,216 courses Equity of opportunity and professional development Encouragement of qualification of employees by offering partial subsidies to college and post- graduation courses
1,990 1,766
Institutional Presentation Dec-19 Jun-20 Dec-19 Jun-20
Employees Interns BANRISUL . 2 Q 2 0 2 0 Awards
Banrisul is highlighted in Banrisul is one of the largest Banrisul and Rio Grande the Estadão Empresas companies in the South Region - Seguros are highlights in Mais case. ranking 500 Largest in the South national ranking Valor 1000. from Grupo Amanhã.
Banrisul's IT Banrisul Stock Fund Banrisul is a leading Institutional Presentation Infrastructure wins 2019 was highlighted in brand as a public Banking Report Award. Valor Investe survey company and bank in RS. BANRISUL . B u s i n e s s S t r a t e g y
Diversified P o r t f o l i o
C u s t o m e r B a s e
2 Q 2 0 2 0 Individuals
Business P a y r o l l L o a n s Strategy Afinidade Space C r e d i t to C o m p a n i e s
Agribusiness C r e d i t L i n e s
B a n k i n g F e e R e v e n u e s
V e r o
D i g i t a l Transformation Institutional Presentation
M a r k e t S h a r e BANRISUL . 2 Q 2 0 2 0 Business Strategy
As for companies, the focus is The focus of commercial The diversification of the on offering of credit products for In relation to earmarked credit activity in the individual service fees portfolio as a way collateralized working capital, lines, the Bank promotes segment prioritizes, within the of generating revenues for the investments in sustainable agricultural loans for funding, public sector, particularly Institution is an important projects, advancement of investment, marketing payroll credit lines offered to factor for covering fixed costs. receivables, receivable-backed and industrialization of civil servants and INSS retirees, Thus, the Bank focuses efforts working capital lines and agricultural goods, serving as well as the to improve on products such as credit credit cards, as well as the family farmers, medium-sized relationship with self employed cards, acquiring network, supply of acquiring equipment producers, business farmers professionals, young public and consortium and insurance, by Vero and services such as and rural cooperatives. high net-worth customers. collection, payroll increasing the number of management and general products used by its customers. management of electronic
payments. Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Diversified Portfolio
Credit Cards Personal Working Real State Agribusiness Payroll Loans and Exchange Loans Capital Lines Loans Credit Lines Banricompras
Time and Insurance, Long-Term Saving Investment Pension Plans Acquiring Receivables Consortium Loans and Deposits Funds and Saving Network Discount Leasing
Accounts Bonds Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Customer Base
Customer Base – Total
Million
4.23 4.26 4.25 4.31 4.28
Companies
Individuals Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Individuals
Credit Portfolio Individuals R$ Million
21.7 21.6 21.3 20.1 20.5
Payroll Loans
Other Credit to
Individuals Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Payroll Loans
5% 3% 49% 11% R$ Million 16,001.1 16,082.8 16,314.0 15,537.8 234.1 14,993.4 350.1 293.7 411.9 488.6 1H2020
5,751.5 5,809.9 6,075.3 5,457.2 5,209.8 32%
5% 7%
9,979.3 10,004.6 9,295.0 9,668.7 9,899.6 11%
1H2019 45%
Jun/2019 Sep/2019 Dec/2019 Mar/2020 Jun/2020
With Customers Correspondent Acquired 32% Institutional Presentation INSS State Municipalities Federal BANRISUL . 2 Q 2 0 2 0 High-net-worth customers
Banrisul has been expanding and opening new Afinidade spaces, created specifically to serve this high-income public
Differentiated 23 Afinidade Hours of Spaces Attendance
Exclusive Specialized Products and and skilled
Services professionals Institutional Presentation BANRISUL . 2 Q 2020 Companies
Encouraging entrepreneurship
We offer complete financial solutions for Commercial Direct companies of all segments and sizes. Credit Credit Services Lines Lines Credit modeling and risk analysis focusing on retail customers
Working Capital Credit Line Sustainability Credit Lines Business Cards Guarantee Accounts Banrisul Fomentation Digital Certificate Real Guaranteed Operations Automatic BNDES Lines Consortiums Receivables Discount Small Companies BNDES Billing of banking bills Payroll Financing FINAME Payroll Compror/Vendor FINAME – Renewable Energy Insurance
Microcredit Real Estate Vero Solutions Institutional Presentation Bring new technologies Rural Credit to Farmers
Strengthen partnerships with all participants in the production chains, increasing AGRO is our Business competitiveness Banrisul has a Strong presence in agribusiness Contribute to the economic development of Promote the State, by fostering Agribusiness agribusiness in sustainability and partnership productivity BANRISUL . 2 Q 2020 2020/2021 Harvest Plan Annual Growth R$ - billion 4.1 3.25
2.3
DELIVERED
97%
2018/2019* 2019/2020 2020/2021 *: Rural credit Portfolio in jun/19
Resources by customer category:
R$800 million R$635 million R$2.67 billion FAMILY PRODUCERS MEDIUM-SIZE PRODUCERS BUSINESS FARMERS AND RURAL, Institutional Presentation COOPERATIVES AND COMPANIES BANRISUL . 2 Q 2 0 2 0 Banking Fee Revenues
Rede Vero Insurance, Pension Plans and Consortiums Banrisul Investment Funds Capitalization
R$4 billion in Total R$12.3 billion in Financial Volume of R$13.6 Volume Assets under 1 Growth of 26% billion of Credit Letters 1 Management 1 1 15.6% share of the Personal 147 million transactions 66.3 thousand 97.6% of assets are Insurance market in RS 1 consortium members into Fixed Income Funds and 2.4% 157 groups into Variable Income Funds R$262.7 million in credit for the acquisition of 38% of AUM came consumption assets 1 from Pension Plans Institutional PresentationBanricard revenues Exclusive product sales in Managements R$667.5 million 1 Banrisul’s distributions channels 5,100 contemplations 1 1 1H20 BANRISUL . 2 Q 2020 Technological Modernization
Banrisul’s technological modernization process is focused on:
Digital IT Security of Transformation Infrastructure Information
In 1H20, Banrisul invested R$182.5 million in technological modernization. Institutional Presentation 2 Q 2 0 2 0 BANRISUL . Digital Transformation
Aiming to harmoniously integrate business strategies with technological possibilities
Continuity of the dissemination of agile culture The rapid migration to the work from home model within the corporate environment, in the same way that allowed the continuity of work on new products and it has continued to evolve in the modernization of the evolution of existing solutions. technological processes and tools, fundamental for gains of scale in the development of digital products.
DESTAQUES:
Altering the assigned credit card Agrofácil, system which Launching of Vero Wallet, limit on App and implementing a expedites processes in Banrisul’s digital portfolio
new investment solution, agricultural credit products. Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Agile Methodologies
Adoption of digital models
End-to-End Agile Journey methodologies
Customer
centered Institutional Presentation 2 Q 2 0 2 0 BANRISUL . IT Infrastructure
renewal of contract with the Renewal of about 80% of company specialized in no-break equipment in use at field answering related to IT branches
Acquisition of 1,776 batteries Addition of about 300 mobile for the -no-breaks in the same phone lines to streamline network. work-from-home solutions for
employees Apresentação Institucional 2 Q 2020 BANRISUL . Security of Information
Improvement in security Banrisul is making several mechanisms related to contributions and improvement Banrisul participates as employees internal accesses suggestions to the member of the working group control; building of SPI - Brazilian dedicated to quickly Increasing the continuous Instantaneous Payment implementing and testing the processes for the evaluation ecosystem, Selected by standards of the of vulnerabilities Febraban to be the sector’s UK’s Open Banking several actions for representative in the Implementation Entity (OBIE) information security to its Information Security
employees Sub commission. Institutional Presentation BANRISUL . 2 Q 2020 Digital Channels
In 1H20, digital channels had 170.6 million accesses, 37.6% higher than in 1H19, with and average of 948.0 thousand daily accesses. Number of operations increased 9.5%
Digital Chanel Transactions 75% of transactions 75.12% were made through 67.62% 66.15% 62.87% digital channels in 1H20
+50% of these transactions were made through
2018 2019 1H2019 1H2020 Banrisul Digital
App Institutional Presentation 2 Q 2020 BANRISUL . Banrisul Digital
Growth of Increase in Use of Banrisul Digital App 45.8% in relation to increase in customer base
11.8%
7.5% 7.5% 6.2% 6.1%
2.8% 2.2% 1.9% 0.9%
2Q19 3Q19 4Q19 1Q20 2Q20 -0.6%
Institutional Presentation App Bank BANRISUL . 2 Q 2 0 2 0 Market Share
Rio Grande do Sul Brazil
Time Deposits 45.2% 3.0%
Demand Deposits 24.1% 1.2%
Credit Operations 19.6% 1.0%
Savings Deposits 12.8% 1.1%
Number of Branches 30.8% 2.7% Institutional Presentation BANRISUL . 2 Q 2 0 2 0 RS Market Share Tracking
45.2%
24.1%
19.6%
12.8% Institutional Presentation BANRISUL . Profitability
NIM and NII
Banking Fees
2 Q 2 0 2 0 A s s e t s Financial F u n d i n g Summary Credit Portfolio P r o v i s i o n
Credit Quality
Time Deposits and Non - earmarked Credit
Interest on Equity and Dividends
Basel Ratio Institutional Presentation
R a t i n g s BANRISUL . 2 Q 2 0 2 0 Profitability
Net Income R$ Million 655
356 377 306 292 258
120
2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20
ROAE ROAA
18.4% 16.4% 16.9% 1.8% 15.3% 1.6% 1.6% 13.0% 1.5% 1.2% 9.4% 0.9%
5.9% 0.6% Institutional Presentation BANRISUL . 2 Q 2 0 2 0 NIM and NII
R $ M i l l i o n
1,435 1,352 1,393 1,262 1,299
NII on Interest 7.65% 8.10% 7.85% 6.99% 6.95% Earning Assets
NII– Credit and Treasury NIM on Profitable Assets 17.18% 17.04% 16.37% 7% 6% 6% 4% 3% 15.96% 14.75% 15.32%
8.10% 100% 7.81% 7.65% 7.85% 93% 94% 94% 96% 97% 6.99% 6.95%
0.98% 0.94% 0.85%
-0.03% 0.51% 0.36% Institutional Presentation
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 NII Credit NII Treasury NIM NII Credit NII Treasury BANRISUL . 2 Q 2020 Banking Fees 5% 4%
15%
48% R $ M i l l i o n 1H2020
992.3 962.0 28%
4% 4% 1%
15% 501.6 520.2 530.0 504.2 457.7 44% 1H2019 1S2019
2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 1H2019 1H2020
33% Institutional Presentation
Banking Services Card-related Fees Insurance Consortia Management AUM Brokerage Fees BANRISUL . 2 Q 2020 Assets
79,465.8 80,637.6 81,549.6 83,270.0 86,582.8 7.1% 7.2% 7.5% 7.6% 7.2% 8.0% 8.4% 15.7% 15.0% 14.9%
40.9% 42.9% 34.1% 34.8% 33.2%
43.1% 43.0% 44.4% 43.5% 41.5%
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
Credit Operations Treasury Compulsory Others Institutional Presentation BANRISUL . 2 Q 2020
2,970.4 1,055.4 Funding 3,083.4 4.7% 1.7% 4.9% 3,208.3 5.1%
10,282.0 16.3% 42,408.2 67.3% 2Q2020
2,720.1 171.8 3,299.2 4.8% 0.3% Pulverized Funding, grounded on its 2,222.15.8% recognized retail banking DNA in the 3.9% Southern Region of Brazil
Average Funding Cost (Time Deposits) -
Presentation 2Q2019 9,366.6 38,921.5 91% of CDI 16.5% 68.6% Banrisul did not use pandemic-linked emergency liquidity lines made
Institucional available by BCB – LFG/DPGE
Time Deposits Saving Deposits BONDS
Bank Notes Demand Deposits Other Deposits BANRISUL . 2 Q 2020 Credit Portfolio R $ M i l l i o n Individuals Total Portfolio Other 5,004.7 23.5%
Other Payroll Loans 1,608.7 16,314.0 4.6% 76.5% Individuals Real Estate 21,318.7 59.3% 4,148.8 11.5% Companies
Other Companies 1,779.7 29.7% 5,987.3 Working Rural 16.6% Capital 4,207.6 2,902.4 70.3% Institutional8.1% Presentation BANRISUL . 2 Q 2 0 2 0 Provision Provision for Expected Loan Losses Provision Expenses for Expected Loan Losses
R40,000.0 $ M i l l i o n R $ M i l l i o n 36,182.7 25.0% 34,647.1 36,185.8 35,965.9 35,000.0 34,237.2 780.8
20.0%
30,000.0
25,000.0 579.8 15.0%
20,000.0 484.2
10.0% 15,000.0 349.0
10,000.0 296.6 294.4 265.1 2,982.3 5.0% 5,000.0 2,594.0 2,722.0 2,764.3 2,812.5
0.0 0.0% Jun/2019 Sep/2019 Dec/2019 Mar/2020 Jun/2020 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 1H2019 1H2020 Total Credit Portfolio Total Provisions
7.8% 344.6% 7.6% 7.9% 7.6% 8.3% 276.4%
Presentation 226.7% 230.4% 234.3% 3.4% 3.4% 2.8% 3.5% 2.2% 87.4% 87.9% 88.7% 88.8%
88.0% Institucional Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 NPL > 90 days Total Provisions/ Loan Book Normal Risk (AA to C) Cover Ratio > 90 dias BANRISUL . 2 Q 2 0 2 0 Credit Quality
R$ Million Distribution by Rating Ten largest past due loans
1st 106
2nd 6.1% 102 11.7% 4.6% 3rd 70
4th 37 20.0%
5th 32 51.7% 6th 28
7th 22 AA A B C D E F G H 8th 17
88.0% of the Portfolio is 9th 17 composed by
AA, A, B and C rating 10th 16 Institutional Presentation BANRISUL . 2 Q 2020 Time Deposits and Non-earmarked Credit Time Deposits Non-earmarked Credit
21.93% 32.19%
Individuals Individuals Companies Companies
67.81% 78.07%
6% 4% 3% 6% 2% 3%
10 biggest 10 biggest 11th to 50th 11th to 50th 51th to 100th 51th to 100th Others Others
87% 88%
Institutional Presentation Diversified Portfolios, with low concentration BANRISUL . 2 Q 2 0 2 0 Interest on Equity and Dividends
Distribution of 25% of net income for each fiscal year to Interest on Equity and Dividends shareholders as dividends or interest on equity R$ Million
263 Banrisul's Board of Directors may recommend that its Shareholders approve the distribution of dividends in excess of the mandatory amount
101 Banrisul has suspended the quarterly payment of Interest on Equity for 2020, in compliance to CMN Resolution No. 4820/20
Since 2013, uninterruptedly, Banrisul is part of IDIV – Dividends Index, whose portfolio
is composed by assets that have been highlighted in terms of investor remuneration Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Basel Ratio
16.2% 15.8% 16.0% 15.1% 15.1% 1.3% 0.8% 1.7% 0.8% 14.9% 1.3% 15.2% 14.3% 14.1% 13.8%
2Q2019 3Q2019 4Q2019 1Q2020 2Q2020
Tier I Tier II Institutional Presentation BANRISUL . 2 Q 2 0 2 0 Ratings
Issuer Credit Rating Local Currency – Baseline Credit Global Scale BB- Long Term IDR BB- Assessment (BCA) ba3
Issuer Credit Rating Long-Term National Deposits – National National Scale brAA+ Scale Rating A+(bra) Scale Rating (NSR) A1.br/BR-1
Outlook Stable Long Term IDR Negative Outlook Stable
Outlook Institutional Presentation Banco do Estado do Rio Grande do Sul
Investor Relations
Institutional Presentation janeiro 2040