Frequently Asked Questions
1. What are the competitive advantages of Banco Votorantim?
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
2. What is the strategy of Banco Votorantim?
Banco Votorantim aims to consolidate its position among 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 Banco do Brasil (BB). For this purpose, the Bank has a diversified business portfolio in the Wholesale, Wealth Management and Consumer Finance segments, with well-defined goals:
Wholesale Bank Businesses
Positioned among the market leaders in lending to large enterprises, Corporate & Investment Banking (CIB) segment is intended to increase its relevance for the clients with annual revenues above R$200 million, by strengthening its platform of high value-added products and low capital consumption- structured products, derivatives (hedge), FX, investment banking services (ECM, DCM and M&A) and local and international distribution (New York and London). By means of long-term relationships, agile service and sectoral expertise, the Bank provides integrated financial solutions adequate to its clients’ needs.
It is important to mention that, at the end of 2013, the Bank revised its operating strategy for the medium enterprises. BThe “Middle Market” segment, which catered for medium enterprises, was merged into CIB and multiproduct desks were created (Derivatives, Assets and Funding). At the end of 2015, the CIB redefined its target market, focusing on 400 Corporate economic groups with better risk profile, in addition to Financial Institutions.
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 bank services in the market, expanding integrated estate planning operations by offering differentiated solutions.
Consumer Finance Businesses
Auto finance: to remain among the leaders in auto finance through BV Financeira (subsidiary of Banco Votorantim), which operates as an extension of BB in auto finance outside its branch network. BV Financeira concentrates its operations on used light vehicles (multi-brand dealers), a segment in which the Bank has a history of leadership and recognized competence.
Payroll Loans: to maintain a relevant position in the payroll loan market, focused on National Institute of Social Security – INSS, i.e. retirees and pensioners (refinancing the portfolio), and on private payroll loans (portfolio growth); and
Other businesses: to grow organically in synergic businesses, increasing income with credit cards and insurance brokerage (e.g.: auto insurance and credit insurance), for example. Furthermore, BV will continue to explore new business opportunities, with special emphasis on the partnership with its shareholder, BB leveraging its expertise in the management of banking correspondents.
Throughout the next quarters, the Bank will continue to advance in the implementation of its strategic plan, which is based on three key elements: enhancement of the profitability of current and new business, increase in operational efficiency and building of synergies with Banco do Brasil.
For further information, check out the Earnings Presentation.
3. How is comprised the shareholder base of Banco Votorantim?
Banco Votorantim has a solid shareholder base, formed by Votorantim S.A., 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. Each shareholder has a 50% stake in the total capital of Banco Votorantim.
4. Why a strategic partnership with Banco do Brasil?
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.
5. How is the Corporate Governance model of Banco Votorantim structured?
Banco Votorantim’s governance model is under continuous improvement to achieve more robustness and
transparency, ensuring agility in decision-making processes — BV’s strong characteristic.
Governance is shared among the two shareholders, Votorantim S.A. and Banco do Brasil, with equal participation of each of them in the Board of Directors and its Advisory Committees (Finance and Products & Marketing), besides the three following statutory bodies:
- Fiscal Council, which is an independent body created to supervise the administrative management acts;
- Audit Committee, a body whose duties include evaluating the effectiveness of the internal control system and of the internal and independent audits, besides reviewing and issuing an opinion on the quality of the financial statements; and
- Compensation and Human Resources Committee, a body that monitors matters related to the Management Compensation Policy and HR practices.
In addition, BV’s administrative management is conducted by the Executive Committee and its Operational Committees and Commissions, involving its executive leaderships.
6. How can I contact Banco Votorantim's IR?
Through the following email: firstname.lastname@example.org.