Frequently Asked Questions

In recent years, Banco Votorantim has expanded and diversified its business portfolio, positioning itself as the 3^rd largest privately-held Brazilian bank 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 - third-party distribution in Consumer Finance
• Conservative financial policies
• Experienced and professional management team

Banco Votorantim has a diversified business portfolio, internally classified into Wholesale and Consumer Finance.

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

• Corporate & Investment Banking (CIB): to become a leading partner for its clients, focused on long-term relationships and offer of integrated financial credit solutions, structured products, and investment bank services. CIB is one of the market leaders in lending to large companies and has 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 continue growing with quality in the attractive and increasing mid-sized company segment, with significant scale and efficiency gains and focus on relationship. Middle Market, also called as BV Empresas, focuses on relationships and operational agility to better serve its clients. Additionally, the Middle Market seeks to expand its offering of products and services, including leveraging CIB´s platform of products.
• Wealth Management (VWM&S): a modern organizational model developed with the objective of gaining agility, efficiency and increased competitiveness in both different and dynamic markets where VWM&S operates:
• Asset Management (VAM): to be recognized by its innovating and differentiated capacity of organization and management of high valued-added products by occupying a leading position in its peer group (Asset Management without a retail structure), in addition to expanding its international presence. VAM seeks to achieve such expectations by operating as one of the best asset managers, delivering appropriate solutions to the clients’ needs, which are developed with innovation and quality. Additionally, VAM plans to expand its partnership with BB, by increasing its capacity of development and distribution of structured products.
• Private Bank: to rank among the five best players in Private Bank market and to be recognized as one of the best asset managers in Brazil by establishing close and longstanding relationships through differentiated solutions in local and international markets, which are adequate to clients’ profile.

In Consumer Finance, Banco Votorantim is one of the market leaders, focusing on the auto finance segment and relevant positions in other complementary lines of business. The institution’s strategic objectives for Consumer Finance include:
 

• Auto Finance: To remain among the major players in auto financing through BV Financeira, which operates as an extension of Banco do Brasil (BB) in auto financing outside the branch network. For origination focused on own loan portfolio, BV Financeira focuses its activities on multi-brand dealers, channel in which has a leadership track record and recognized expertise. For origination dedicated to BB, in turn, BV Financeira and BB must move forward together in 2012 to consolidate the new business model ("BV Financeira Originadora"), deepening the strategic partnership.
• Other businesses: to increase profitability in personal credit focusing on INSS payroll credit, which present better risk profile. Additionally, Consumer Finance plans to continue growing in credit cards and increasing revenues from insurance brokerage (e.g., auto insurance and money lending).

Over the next few years, Banco Votorantim’s business portfolio should reach full maturity, with the strengthening of Corporate & Investment Banking, expansion in Middle Market, continuing growth in Wealth Management and the transition to a new consumer finance model while constantly deepening its partnership with BB.

For further information, check out the Institutional 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.

Since the approval of the partnership by the Central Bank, effective in September 2009, Banco Votorantim (BV) and Banco do Brasil (BB) have explored joint opportunities in several business segments, with tangible results already achieved, such as:
 

• Development of auto finance operational model: following the establishment of a partnership in 2009, BV Financeira started to operate as an extension of BB to finance vehicles out of bank branches, which has contributed to the significant growth recorded over the last three years. Over that period, BV Financeira consolidated its leading position in multi-brand dealers and significantly expanded its presence in new car dealers. Given the new economic-regulatory context, Banco Votorantim has given priority to own origination in dealer segment, in which it has a recognized expertise, and will endeavor to structure in 2012 a new BB origination model (“BV Financeira Originadora”) focused on the new car dealer segment.
• Asset securitization: under the Operational Agreement, BB regularly acquires credit assets portfolios originated by BV Financeira with recourse. The balance of assets assigned to BB reached R$ 14.5 billion in Dec.11, of which R$ 10.3 billion were auto loans and the remainder payroll loans. This program is advantageous to both institutions. It combines Banco Votorantim's high asset origination capability with BB's broad funding base. Given the new economic-regulatory scenario and the entry in force of Bacen’s Circular Letter 3,533 in Jan.12, which changes the accounting rules for credit assignment operations, Banco Votorantim and BB have worked jointly to develop a model for BV Financeira operation in consumer finance, as described in the previous item.
• Offer of investment products: BB DTVM and Votorantim Wealth Management & Services (VWM&S), the consolidating structure of Banco Votorantim’s asset management, have worked jointly to develop and distribute innovating and customized investment funds backed by receivables (FIDCs), Real Estate (FIIs), Private Equity (FIPs) and Private Credit investment funds. At the end of Dec. 11, the volume of funds associated to the partnership amounted to R$ 2.4 billion, with emphasis on FIC BB Seleção Private, FII BB Renda Corporativa, FIDC Fênix (Lojas Americanas) and FIP-IE BB Votorantim Energia Sustentável I, II & III. The latter is an Infrastructure Equity Investment Fund for Renewable Energy segment, which is a pioneer in its kind.
• Expansion of the business of Votorantim Corretora: BB is making more extensive use of Banco Votorantim's brokerage firm to trade proprietary positions, investment funds and its consumer finance segment (via BB's home broker service).

Since the strategic partnership between Votorantim Finanças and Banco do Brasil established in 2009, Banco Votorantim's governance was then divided between the two shareholders with a continuous improvement model to achieve more robustness and transparency, ensuring streamlined decision making - one of Banco Votorantim's strengths.

The governance is organized into two complementary competence levels: the first is composed of the Board of Directors and its Advisory Committees (Finance, Products & Marketing, and Human Resources), and includes the shareholders; the second is composed of the Executive Board and its Operational Committees involving Banco Votorantim executive leadership.

Additionally, Banco Votorantim counts on a Fiscal Council, which is an independent body established to supervise Banco Votorantim management acts, and an Audit Committee, which reports directly to the Board of Directors and also has supervisory duties.

The Board of Directors is composed of six members, where each shareholder has the same representation (three members each). Each member holds office for a two-year term, and the positions of Chairman and Vice-Chairman are annually alternated between both institutions. The Board of Directors meetings are periodically held to deliberate on strategic issues and track the business performance. With respect to decision-making process, the Board of Directors decisions are made by absolute majority with no “casting vote”.

The Executive Committee, composed by the CEO and more five members (Vice-Presidents and Officers), is supported by a group of operational committees with the participation of main executives, which support and qualify the decision-making process. In 2011, the creation of the Cost Analysis and Approval Committee (CAAD - Comitê de Análise e Aprovação de Despesas) stands out, having the duty of supporting the management in the implementation of initiatives for a greater efficiency of cost management.

In 2011, as a part of the Change Agenda, Banco Votorantim also revised its organizational structure to obtain a greater integration of Wholesale and Consumer Finance corporate areas.
 

Through the following email: ir@bancovotorantim.com.br.