Banrisul History

1927 During the 1st Cattle Raisers Conference, held in May, local cattle raisers demand that the state government open a bank to provide funding whenever needed.

1928 One year after the Rio Grande do Sul cattle-raisers’ demand, the then President of Brazil, Washington Luís, sanctions the opening of Banco do Rio Grande do Sul - BRGS (The Rio Grande do Sul Bank). On September 12th, the bank opens with a startup capital of 50,000 contos de réis. Long-term credit is then extended to farmers and the Bank mortgages their property as a guaranty.

1929 The crash of the New York Stock Exchange does not affect the financial performance of the Bank, which gets its capital fully paid by issuing collateral mortgage notes on the international market as well. Nineteen new bank branches are inaugurated, totaling 24 in the State of Rio Grande do Sul. The Activity Report, presented during a Shareholders’ Meeting, shows that more than half of the loans were intended for the "direct funding of jerked beef production."

1930 In the same year when the Bank becomes the trustee of the bankrupted Banco Popular (Popular Bank), the Social Security Fund is set up with an appropriation of 100,000 réis. In addition, 22 new bank branches are inaugurated.

1931 Nine new bank branches are inaugurated and the Bank is authorized to liquidate the assets of Banco Pelotense (Pelotense Bank, from the local government of Pelotas).

In 1931, after taking over Banco Pelotense, the Bank began collecting taxes on behalf of the state of Rio Grande do Sul.

1932 In order to prevent the effects of the 1929 financial crisis from hitting the Rio Grande do Sul cattle-raising industry, José Antônio Flores da Cunha, the financial intervener, authorizes the Bank to open up a credit line worth 50,000 contos de réis with guaranty from the Government of the State of Rio Grande do Sul.

1933 Farmers benefit from two federal decrees – The Act of Usury and the Act of Economic Readjustment – both reducing the amount of loans and limiting the number of annual installments. The Bank, as well as other creditors, starts to receive National Treasury Bills. Its capital reserve increases over ten-fold: from 10,000 to 112,000 contos de réis.

1934 The Instituto de Aposentadoria e Pensões dos Bancários (The Bank Employees’ Retirement and Pension Fund Institute) starts to receive deposits worth 100,000 réis twice a year from the Bank.

In 1934, Banrisul began expanding, opening branches in various cities around the state, and consolidating its growth by acquiring public financial institutions including Banco Real de Pernambuco (1969), Banco Sul do Brasil (1970), Banco de Desenvolvimento do Estado do Rio Grande do Sul - BADESUL (1992) and DIVERGS - Distribuidora de Títulos e Valores Mobiliários do Estado do Rio Grande do Sul (1992).

1935 In the year of the 100th anniversary of the Revolução Farroupilha (Farroupilha Revolution), BRGS boasts 23 branches, 32 sub-branches, and 51 correspondents (banking service stations).

1936 The amount of deposits increase by 50% compared with the previous year. They jump from RS 95,852:906$000 to RS 142,825:071$340. The new Herval branch is inaugurated.

1937 Rio Grande do Sul’s foreign trade reaches RS 830,2 thousand contos de réis, totaling 752,659 tons of exported products.

1938 The 10th anniversary of the Rio Grande do Sul Bank is celebrated in many different ways: a plot of land is purchased in the Espírito Santo neighborhood, in the south end of Porto Alegre, the capital city, for the construction of the Banrisul Casino. Employees benefit from a group insurance plan and the Employee Medical Assistance Fund is set up. The Bank’s capital reserves reach the amount of R$ 26,2 thousand contos de réis.

1939 190 employees work at the Bank headquarters. This leads the Board of Directors to decide on an expansion. To this end, two buildings are purchased along Sete de Setembro Avenue, in the city center. One of them had been the headquarters of Banco Pelotense.

1940 Another plot of land is purchased, also in the south end of Porto Alegre, the capital city. Located at Mário Totta Street, close to the Guaiba River, the Banrisul Casino is built and later re-named Banricap.

1941 The Bank allocates 300 contos de réis for setting up the National Steel Company. New branches are inaugurated and it becomes the financial intermediary between Federal Government funding and the Rio Grande do Sul economy.

1942 For the first time the funding allocated for trade exceeds that invested in the farming and cattle-raising industry. Two new bank branches are inaugurated: one in the city of Marcelino Ramos and the other in the city of São Luiz Gonzaga.

1943 On November 14th, the Bank Employees’ Vacation Resort is inaugurated in the Tristeza neighborhood in Porto Alegre.

1944 More than Cr$ 1 million is allocated for different production initiatives across the State of Rio Grande do Sul. On December 31st the Bank’s capital reserves reach Cr$ 29.9 million.

1945 Credit worth Cr$ 607 million is extended to the farming and cattle-raising industries, which had been hit by a crisis.

1946 The first group of women bank employees is hired, totaling 888 staff members. Gross transactions add up to Cr$ 581.3 million.

1947 Loans granted to the farming, cattle-raising, and mining industries add up to Cr$ 581.3 million

1948 On the Bank’s 20th anniversary, investments worth Cr$ 1.5 billion are celebrated.

1949 Governments are funded, especially the State. The financial resources are invested in lighting, roads and buildings, education and public health, among other areas.

1950 For the first time credit agreements are signed with the State with the aim of accelerating revenues. Credit of approximately Cr$ 1.5 billion is extended. The first urban branch of the Bank opens in Porto Alegre in the São José neighborhood, north end of the city.

1951 The Fundo de Fomento Agropecuário (Farming and Cattle-Raising Assistance Fund) is set up for small farmers interested in purchasing land, cattle and fertilizers.

1952 The Bank’s capital jumps from Cr$ 50 million to Cr$ 75 million. Cr$ 1 million is allocated for loans to bank employees who plan to enlarge or renovate their homes. Employees get a 25% salary increase.

1953 Celebration of the Bank’s Silver Jubilee and biggest amount of gross investments ever: Cr$ 3.5 billion. The Bank’s first branch in Rio de Janeiro is inaugurated.

1954 New bank branches open in the countryside of the state of Rio Grande do Sul and funding is allocated in order to improve cattle and sheep herds in Rio Grande do Sul.

1955 Deposits reach Cr$ 1.4 billion in spite of the financial difficulties faced by the Rio Grande do Sul economy due to supply and the price control policies.

1956 Law no. 2,910, proposed by the State Government of Rio Grande do Sul, is approved by the House of Representatives, laying down funding and guidelines about small farmers’ agricultural portfolio.

1957 A 100% rise in capital is approved during a Shareholders’ Meeting: from Cr$ 100 million to Cr$ 200 million. This same year, the Fund for Construction of the Bank Headquarters is launched, the Small Farmer Credit Portfolio is set up, and the first bank branch in São Paulo is inaugurated.

1958 On its 30th anniversary, the Bank sets up its Foreign Exchange Portfolio. Exchange is carried out with 130 banks in 30 countries.

1959 Part of the financial resources resulting from the liquidation of Banco Pelotense is allocated for the Agricultural Credit Portfolio. Nine new bank branches are inaugurated, including one in São Paulo.

1960 A 150% rise in capital: from Cr$ 200 million to Cr$ 500 million. Employees benefit from family and school allowances and from the Home Loan Fund. The word State is added to the name of the Bank, which is from now on called Banco do Estado do Rio Grande do Sul S/A (BERGS) [The Rio Grande do Sul State Bank Corp.].

1961 The Bank’s capital reaches Cr$ 1 billion. The first branch opens in Brasília. Women bank employees gain the right to be promoted.

1962 The Bank employs 2,600 staff members and the first bank branch opens in Florianópolis, State of Santa Catarina.

1963 The Bank’s capital reserves reach Cr$ 932 million, a very significant figure. At the end of the year, the Articles of Incorporation for Fundação Banrisul de Seguridade Social [Banrisul Social Security Foundation] are ratified.

1964 The present building of the Bank headquarters is inaugurated. The Bank’s capital jumps to Cr$ 5 billion.

1965 The Bank becomes the controlling shareholder of Companhia de Armazéns Gerais do Rio Grande do Sul with 19.60% of the shares. It invests Cr$ 192 million by means of the General Credit Portfolio. The Bank’s own financial resources reach Cr$ 7.9 billion.

1966 Nine new branches are inaugurated, including one in Salvador, State of Bahia.

1967 The Foreign Exchange Portfolio comes into operation at 278 bank branches in 50 countries. The Bank becomes the controlling shareholder of Mobilizadora de Capitais S.A. Mocasa.

1968 The Banco Nacional de Habitação – BNH (The National Home Loan Bank) authorizes the Rio Grande do Sul State Bank to operate as a financing agent. NCr$ 704 million is invested in the basic sectors of the economy – an amount 20 times higher than the Bank’s capital reserves.

1969 This year the Bank’s capital reaches NCr$ 30 million and the Banco Real de Pernambuco (Royal Bank of Pernambuco) is taken over. The latter was inaugurated by order of Dom Pedro II in 1885. A new bank branch opens in Fortaleza, State of Ceará.

1970 The decade marking the Bank’s 50th anniversary is characterized by the rationalization of services, adoption of new work methods and cost reduction. The Industrial Development Portfolio is created and Banco Sul do Brasil S/A is taken over.

1971 Regional manager offices and departments of marketing, financial and foreignexchange assistance are created. The goal-based management system is implemented. The Banrisul Foundation now manages the Banricap and Banrimar vacation resorts and the restaurant at the Bank headquarters.

1972 The Bank’s capital stock jumps from Cr$ 110 million to CR$ 150 million.

1973 The Bank’s capital is now Cr$ 225 million.

1974 Twenty-one branches are inaugurated between 1972 and 1974. The net profit resulting from the different portfolios is Cr$ 76.6 million and the total of capital, cash reserves and funds reaches Cr$ 308 million.

1975 Fifteen new branches are inaugurated in the countryside of the State of Rio Grande do Sul. The Home Loan Department makes 1,204 transactions, allocating funds from the National Home Loan Bank (BNH).

1976 Deposits reach Cr$ 3.2 billion. Cr$ 3.35 billion is allocated for specialized credit lines.

1977 Cr$ 7.5 billion is granted by FINAME, BNH and the Central Bank in order to invest in the economic growth of the State of Rio Grande do Sul.

1978 In celebration of the Bank’s 50th anniversary, 18 hectares of land are purchased in the south end of Porto Alegre. A Training Center and the headquarters of the Banrisul Foundation are built in this area. The Bank now boasts 8,090 employees and 215 branches in the capital city and the countryside.

1979 Tax incentives are used for investing in reforestation. There are now 231 branches and the bank resumes its credit operations, meeting the needs of working-capital companies.

1980 The Bank adopts some measures to maintain its profitability: it reduces costs, centralizes its accounting records, implements a De-bureaucratization Program, and sets up the Deputy Board of Directors, whose aim is to raise funds and develop new products. The Majestic Hotel is purchased and later transferred to the State Government, which turns the place into Casa de Cultura Mário Quintana (Mário Quintana Cultural House).

1981 The Bank’s capital stock reaches Cr$ 3.5 billion. A representation office opens in New York, USA. At the end of the year, the bank’s owners’ equity is Cr$ 11.2 billion and the amount of deposits totals Cr$ 40.3 billion.

1982 The automation of check reading, data transmission, and database techniques is implemented. The branches are now automated, using the microfilming technology and telex-computer communication systems. 1983 The Bank encourages the creation of new small businesses by launching the Pro-Job Credit Program. Computer terminals for on-line information at bank branches in Porto Alegre and seaside towns, in addition to phone-based balance-related information services and special telex-based collection services are made available.

1984 The Bank continues to be modernized by integrating, via telex, all of its branches with the computer used by the open-market operations board. In addition, call centers based on automatic replies are set up.

1985 Cr$ 29.5 billion is invested in service automation. 91 branches and service stations are provided with 219 client terminals and four units. Four call centers based on automatic replies are put into operation in the countryside.

1986 By means of computer and telex terminals, Foreign Exchange Portfolios are connected to the International Fund Transfer Network (Swift). This year the Bank meets the needs of the State’s Treasury Department in terms of cash.

1987 All the funds resulting from net demand deposit and time deposit are fully used for recovering the State’s finances.

1988 Banrimicro is set up and new benefits are offered to the bank’s 10,697 employees. Among these benefits, seniority-related vacation, bonus for regular attendance at work, and a healthcare plan are included.

1989 The Bank sponsors forty-five cultural projects within the State of Rio Grande do Sul and opens representation offices in Argentina, Brazil, Chile, Paraguay and Uruguay.

1990 The Brazilian Central Bank authorizes Banrisul to operate as a Multiple Bank with Commercial, Credit and Home Loan, Funding and Investment Portfolios.

1991 1.9 million clients served at the bank’s ATM’s. Cr$ 4.1 million worth of transactions.

1992 The Bank takes over two other institutions: the Bank of Development of Rio Grande do Sul (Badesul) and the Distributor of Bonds and Securities of Rio Grande do Sul (Divergs). The State Financial System is unified through a single president for Banrisul and Caixa Econômica Estadual (The State Savings Bank).

1993 US$ 7.5 million is invested in the Banking Automation Program. Banrishopping – the first fully automated self-service station – is inaugurated.

1994 The Bank boasts a significant collection of works of art composed of drawings, oil paintings, serigraphs, lithographs, engravings, sculptures, tapestries and murals signed by famous national and international artists.

1995 The following programs are implemented: the Program for Unifying the State Financial System, the Internal Reorganization of the Board of Directors, the Resignation Program, and the Strategic Management Mobilization Program (PMGE).

1996 Banrisul starts raising funds for the production of Brazilian movies and becomes the official sponsor of the Gramado Film Festival.

1997 The image of the Bank’s retail profile is promoted. Within the State Financial System, Banrisul concentrates the commercial banking activity and Caixa Econômica Estadual (The State Savings Bank), whose aim is to foster the State’s social and economic development.

1998 The Project for Reorganizing the State Public Financial System is completed. Banrisul introduces the seal that marks its 70 years in operation.

1999 The Bank’s net profit reaches R$ 60.7 million, while the total of deposits and managed funds is R$ 5.5 million.

2000 New investments are made in culture and the Bank becomes the official sponsor of two events: "Porto Alegre em Cena" (Porto Alegre Onstage), in the capital city, and "The International Puppet Festival of Canela", a city in the Rio Grande do Sul Sierra Region. Initiatives on social responsibility are also introduced.

2001 The Bank’s social conscience is clear on its Social Balance Sheet, which is published annually. This year the Bank invests R$ 6.5 million in 659 projects focused on the external public. The "Recycling: life in our hands" Program is launched as an initiative developed by bank employees.

2002 Banrisul is given the Top Human Being Award by the Rio Grande do Sul-based Brazilian Human Resources Association for the case called "Different and Unequal, Thank God".

2003 Banrisul sponsors major cultural events such as the Book Fair and Mercosul’s 4th Visual Arts Biennial, both held in Porto Alegre. It ranks 17th among the 500 largest companies in the South of Brazil, a ranking that is published annually by Amanhã magazine. In addition, the Bank wins the Top of Mind award as the most remembered bank among the Rio Grande do Sul population, according to a survey conducted by Amanhã magazine. 2004 Banrisul focuses its actions on the social and economic development of Rio Grande do Sul by investing in production, education, health, and in the generation of jobs and income.

2005 The year of 2005 is replete with positive results and recognition. The bank’s owners’ equity reaches R$ 1.1 billion and the net profit is R$ 351.9 million. Investments in technology allowed the bank to restructure its entire technology park. Special prominence is given to the Bank’s pioneering role in Latin America regarding safe electronic transactions thanks to the launch of Banrisul’s Internet Card with a chip, as well as to the implementation of the SIM Bank for those people who do not have a bank account. The Bank wins many awards in recognition of its initiatives aimed at developing and improving the quality of life of the communities where the bank operates in. Some of these awards include the Top Human Being Award, the Top Corporate Citizenship Award, and the Top of Marketing Award for Technology and Social Responsibility, among others.

2006 In 2006 Banrisul reached a net profit of R$ 361.7 million and closed the year with owners’ equity of R$ 1.3 billion. This was a year of great achievements with the implementation of the new Management Model whose aim is to establish management mechanisms in order to adopt suitable corporate governance standards. This model is based on three areas: commercial goal focused on results, variable compensation, and certification. With the aim of speeding up and making its processes (such as payment control, contract management, purchase of materials, equipment, services, etc.) more transparent, the Integrated Management System was implemented with the Enterprise Resource Planning (ERP) solution.

An innovative service among Brazilian banks was made available via Internet banking: clients can now view and print, on an online basis, the image of checks. In addition, Banrisul standardized its phone-based service by creating a call center and made navigation easier by remodeling the Banrisul Portal. The bank won innumerous awards in 2006 that prove that the Bank’s bond with both the Brazilian and Rio Grande do Sul communities has been strengthened over the years. The following awards are worth mentioning: the Top Social and Top of Marketing Awards, given by the São Paulo-based ADVB, and the e-finance Award given by Executivos Financeiros magazine in three categories: Best Set of Storage Solutions, Best Social Responsibility Project, and Best Implementation of Bank Branch Automation.

2007 In 2007 Banrisul reached a net profit of R$ 916.4 million and closed the end with owners’ equity of R$ 2.792 million. The Bank completed its capitalization process and the secondary issuance of preferred shares owned by the State of Rio Grande do Sul. The financial resources resulting from capitalization, to the sum of R$ 800 million, reinforced Banrisul’s capital base, allowing the Bank to fund the expansion of credit operations and implement commercial strategies and make investments in information technology, thus ensuring greater competitiveness and strengthening the role of the Bank as an important tool for promoting the economic development of the State of Rio Grande do Sul.

2008 In 2008, Banrisul opens a regional sales branch and expands its presence in Santa Catarina State. The project aims to improve the relationship with local clients, favoring partnerships that strengthen development in Santa Catarina and broaden Banrisul’s scale of operation. In the same year, Banrisul’s Board of Directors submitted a proposal to establish additional dividends of 10%, effective as of the fiscal years 2007 and 2008. This proposal was approved at the Annual and Extraordinary General Meeting held on March 25, 2008, bringing about the payment of total dividends of 35% on the adjusted net income. 2009 2009 was marked by consolidation of the strategy to add efficiency and quality to management, from the implementation of a management model focused on the generation of results, decision which resulted in a profound, comprehensive change in all of Banrisul’s channels, in the modernization of the technology sites, in reviewing internal processes, in the development of a new credit model, in the restructuring of the business goals and employee compensation models and in the implementation of a timely financial action, which was the capital raise in 2007. Such operating and financial infrastructure supports the leadership position achieved by the Banco do Rio Grande do Sul and its expansion into other markets, the increase of revenue generated by a broad, diversified, expanding customer base, as well as the incorporation of innovative technologies.

2010 The Bank presented in 2010 consistent growth of its equity base and ended the year with favorable profitability and solvency indicators, most of them being above the guidance issued to the market at the end of March and maintained throughout 2010.

The expansion of credit offer constituted the dominant strategy with regard to asset allocation in 2010, in line with the greater dynamism of the national and regional economic activity and also with the good performance of the labor market indicators.

2011 In 2011, the Banricompras network reached more than 100,000 service points, and increased the number of accredited stores while entering the acquiring business from partnerships entered into with VISA, MasterCard and VerdeCard, besides the agreement with the international system SafetyPay for shopping at the Amazon.com website. The strengthening of Banricompras Network contributes to the implementation of the strategy of regional decentralization and support the growth of the Bank.

Following this subject, another important initiative undertaken by Banrisul was the signature of a Memorandum of Understanding and the starting of the due diligence process to purchase of 49.9% of Bem-Vindo Promotora de Vendas e Serviços, a credit distribution network specializing in the origination of payroll loans to INSS beneficiaries and to federal, state and local public employees, with 73 stores spread over several states in Brazil. Conducted in partnership with MatoneInvest Holding, the business is part of the strategic move designed to leverage customer relationship channels, increase the loan portfolio and expand the potential nationwide distribution of financial products and services.

In the banking industry in Brazil, in September, 2011 Banrisul occupied, among mid and large sized Brazilian banks, the 11th position in total assets, 11th in equity, 8th in total deposits and 7th in the number of branches, according to rankings released by the Central Bank Brazil (BNDES not included).

From the initiative of farmers to nearly three million customers, from 50 thousand Contos de Réis to a shareholders’ equity exceeding R$4 billion, from a mortgage bank to a multiple bank - these lines summarize 83 years of Banco do Estado do Rio Grande do Sul S.A.’s history. A public, commercial and social development bank, which was created as a public bank and remains belonging to all Gaúchos.

2012

In 2012, a qualitative research focused on the Bank’s image with its customers and users guided changes in business strategy and marketing, including improvements related to the design and visual communication of agencies and banking correspondents, the remodeling of products and services, the introduction of new tools and incentive methodologies for sales teams.

This year, Banricompras network reached the status of a multi brand network able to capture transactions with VISA, MasterCard, VerdeCard and Banricompras.

The Institution also progressed in structuring actions that effectively contribute to the sustainable development of communities where Banrisul operates, particularly through educational initiatives for the effective use of environmental resources. The Bank has been addressing this issue step by step. In 2012, Banrisul started reporting using the methodology of the GRI - Global Reporting Initiative, and was pioneer among State Government companies in the publication of the 2011 Sustainability Report.

The investment grade ratings by Moody’s Investors Service and by Standard & Poor’s Rating Services earlier in the year were instrumental in implementing the strategy for funding sources diversification and capital strengthening. In 2012, Banrisul issued its first international debt capital market bond, settled in two tranches that totaled US$775 million for 10-year subordinated notes maturing in 2022 and coupon of 7.375% p.a., used to compose its Tier II capital.

Also in relation to its financial strategy, Banrisul coordinated the public offering of the first issuance of shares of a real estate investment fund (FII), a structured fund which helps support the goal of expanding the branch network and provides new investment alternatives to investors.

In the competitive environment, Banrisul held in September 2012, the 11th position in total assets among banks that comprise the National Financial System, the 11th position in equity, the 7th place in total deposits and the 7th position in number of branches, according to ranking published by the Central Bank of Brazil (BNDES not included).