In recent years, Banco Votorantim has expanded and diversified its business portfolio, positioning itself as the one of the largest Brazilian banks in total assets. This growth was driven by the following competitive advantages:
 

• Diverse portfolio of wholesale banking business, consumer finance and wealth management
• Strategic partnership with Banco do Brasil, largest financial institution in Latin America
• Solid shareholder base committed to maintaining Basel around 13%
• Low fixed cost business model in Consumer Finance - wide third-party distribution network
• Conservative financial policies
• Experienced and professional management team

Banco Votorantim aims to consolidate its position among the three main national privately-held banks recognized for guidance in serving its clients and partners in a sustainable manner and with long-term relationships, leveraging synergies with BB. For such, the Bank has a diversified business portfolio, internally classified into Wholesale and Consumer Finance.

Wholesale is constituted of three major businesses with well-established strategic objectives:

• Corporate & Investment Banking (CIB): to be one of the main partner banks for its clients, focused on long-term relationships. CIB seeks to offer integrated financial credit solutions, structured products and investment bank services, always adapted to the needs of its clients. Positioned among the market leaders in lending to large companies (i.e. with annual revenues above R$600 million), CIB has been increasing its relevance for the clients by strengthening its platform of high value-added products - structured products, derivatives (hedging), investment banking services (ECM, DCM and M&A) and local and international distribution;
• Middle Market: to grow with quality in the segment of medium sized companies (i.e. with annual revenues between R$50 million and R$600 million), with gains of scale, efficiency and profitability. Middle Market focuses on relationship and operational agility to better serve its clients. Additionally, has expanded its offer of products and services, also leveraging the product platform and distribution of the CIB segment; and
• Wealth Management (VWM&S): developing and providing, in a sustainable manner, the best solution for asset management, is part of VWM&S’s mission, which can be observed in the objectives established for the two different markets where it operates:

• Asset Management (VAM): to be recognized for its consistent performance and for developing solutions appropriate to the client’s needs by means of its innovative and differentiated capacity for restructuring and managing products that have high added value. Votorantim Asset Management (VAM) holds an important position within its peer group (Assets without retail structure) and has been expanding its partnership with BB in the development, administration, management and distribution of innovating and customized investment funds; and
• Private Bank: consolidating its position among the five best private banks in the market, by expanding its operations in integrated estate planning by means of unique solutions.

In Consumer Finance, Banco Votorantim is one of the market leaders, focused on the auto finance industry and payroll loans. The objectives of the Consumer Finance businesses are:

• Auto Finance: to remain among the leaders in auto finance through BV Financeira, which operates as an extension of BB in auto finance outside the branch network. For origination to its own loan portfolio, BV Financeira concentrates on multi-brand dealers (used vehicles), in which it has a history of leadership and recognized expertise. For origination to BB, in turn, in 2013 a model should be implemented for the direct origination of credit assets to BB, internally called “BV Originadora – BVO”, which will be focused on new car dealers and BB clients.
• Payroll Loans: to maintain a relevant position in the payroll loan market, with focus on the National Institute of Social Security - INSS (i.e. retirees and pensioners), which present a better risk profile. In the public and private payroll loans, the strategy is to operate through agreements presenting an attractive profitability; and
• Other businesses: continue to grow organically in credit cards and to boost insurance brokerage revenues (e.g.: auto insurance and credit insurance).

Over the next few years, the Bank’s business portfolio should reach full maturity, with the strengthening of Corporate & Investment Banking, the expansion and consolidation of Middle Market, the continuous growth of Wealth Management and the transition to a new Consumer Finance model, always deepening the partnership with the shareholder BB.
 

For further information, check out the Earnings Presentation.
 

Banco Votorantim has a solid shareholder base, formed by Grupo Votorantim, one of the largest industrial conglomerates in Latin America and Banco do Brasil, Brazil´s largest financial institution, with more than 200 years of experience. Both shareholders are investment grade by the three major international rating agencies - Fitch, Moody's and S&P. Each shareholder has a 50% stake in the total capital of Banco Votorantim.
 

In 2009 a strategic partnership was established with Banco do Brasil, Brazil's largest financial institution, which acquired 49.99% of the voting shares and 50% of the total capital of Banco Votorantim. This strategic partnership combines competitive advantages of both institutions: the asset origination capacity and agile business model of Banco Votorantim and strength of Banco do Brasil, with an extensive retail network and ample funding.
 

The partnership structure preserves BV's business model while boosting the capacity of both institutions to capture growth opportunities more effectively and rapidly. It enhances their ability to develop new business ventures and operate in strategic areas, adding value to BV, BB and their clients and customers, who can now rely on an even more competitive, solid and agile offering of financial services.

This partnership has a strong strategic rationale and long-term view, and has allowed the exploitation of business opportunities in several segments, among which stand out:
 

• Development of the credit asset origination model (“BV Originadora – BVO”):  Banco Votorantim and BB advanced in the structuring of a model of direct origination of credit assets to BB, the “BVO” which will be focused on new car dealers. Based on this new model, to be implemented in 2013, the Bank will be in charge of the sales force in new car dealers, whereas BB will be in charge of the web portal for proposal entry, policy and credit analysis, operation funding and pricing as well as the post sale and collection activities.
• Offer of investment products: BB DTVM and VWM&S have made a joint effort in the development, administration, management and distribution of innovative and customized Credit Receivables Investment Funds (FIDCs), Real Estate Investment Funds (FIIs), Equity Investment Funds (FIPs) and Private Credit. At the end of Mar.13, the total volume of funds related to this partnership amounted to R$3.7 billion, being the management thereof performed by VAM. A recent highlight was the real estate investment fund “BB Progressivo II”, comprising 64 properties – commercial buildings and branches leased to BB for 10 years. The R$1.6 billion public offer reached a demand of over R$20 billion and had the participation of about 48 thousand investors.
• Expansion of the business of CIB: deepening of the partnership with BB in the Corporate & Investment Banking businesses, focusing on credit origination, structured products, derivatives (hedging), mandates for issues of shares and bonds in the international market. 
• Expansion of the business of Votorantim Corretora: participation of Votorantim Corretora in the distribution of capital market operations structured by BB. In addition, BB uses Votorantim Corretora to transact proprietary positions, investment funds and its Consumer Finance segment (via BB's home broker).