Banco Votorantim aims to consolidate its position among the three main privately-held Brazilian banks, and to get recognized for its guidance in sustainably serving clients and partners through long-term relationships, as well as leveraging synergies with Banco do Brasil (BB). For such, BV has a diversified business portfolio composed of Wholesale Bank, Wealth Management and Consumer Finance, with well defined goals:
Wholesale Bank Businesses
By means of long-term, commercial and agile relationships, and efficient capital management (risk/return ratios), the Corporate provides integrated financial solutions adequate to its clients’ needs. With a diversified product portfolio, the segment's focus is to grow in companies with annual revenue from R$ 300 million to R$ 1.5 billion, increasing spread and cross-selling. In the Large Corporate segment – companies with annual revenue above R$ 1.5 billion – the focus is to increase the profitability, especially through unfunded products.
In line with this strategy, in Dec.16, the Bank discontinued the Equity Research activities, without changing the quality of the services rendered and of the team that serves companies and investors, continuing to focus its efforts on BM&FBovespa trading desk services, macroeconomic and political research, and Corporate Access.
Wealth Management Businesses (VWM&S)
To sustainably develop and provide the best solutions for estate planning is part of VWM&S’s mission, which has well established objectives for the two different markets in which it operates:
- Asset Management: to be recognized for its consistent performance and for the development of appropriate solutions to clients’ needs, through the innovative and differentiated capacity for structuring and managing high value-added products. Votorantim Asset Management (VAM) holds an important position within its peer group (asset managers with no branch network) and has been enhancing its partnership with BB in the structuring, management, administration and distribution of investment funds; and
- Private Bank: to consolidate its position among the best private banks in the market, expanding its operations in wealth management integrated by means of differentiated solutions.
Consumer Finance Businesses
- Auto finance: remain among the leaders in auto finance through BV Financeira (subsidiary of Banco Votorantim). BV Financeira concentrates its operations on used cars (multi-brand dealers), a segment in which the Bank has a history of leadership and recognized competence.
- Payroll Loans: maintain an important position in the market of payroll loans, focusing on INSS – National Institute of Social Security (refinancing of portfolio) and Private categories (portfolio growth). In addition, the Bank continues advancing in the Promotiva S.A., a subsidiary of Banco Votorantim it operates in the origination of payroll loans outside the branches of Banco do Brasil directly to the shareholder.
- Other businesses: to grow organically in synergic businesses, exploring the client base and diversifying the revenue, for example, through credit card, insurance brokerage (e.g.: auto and credit insurance), individual and student loans and CrediCasa (home equity). In addition, the Bank will continue to explore new business opportunities in partnership with the stockholder BB, leveraging its competence in asset origination and management of banking correspondents.
Throughout the next quarters, the Bank will continue advancing in the implementation of its strategic plan, which is based on three key elements: increase of the profitability of current and new businesses, increase of operational efficiency, and diversification of revenues.
For further information, check out the Earnings Presentation.
Updated on February 16th, 2017