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Banrisul elected best state-owned bank in Brazil

Banrisul elected best state-owned bank in Brazil

Banrisul was elected best state-owned Financial Conglomerate in Brazil in 2007 by Conjuntura Econômica magazine, published by the Brazilian Economy Institute of Fundação Getúlio Vargas (FGV), Rio de Janeiro. The Bank’s CEO, Fernando Lemos, took part in the awarding ceremony, held yesterday (June 18) in São Paulo.

Governor Yeda Crusius pointed out the award achieved by Banrisul: “An institution of the size, with the background and as respectful as Fundação Getúlio Vargas recognized the Bank’s high-quality management and everything the Bank represents to the Rio Grande do Sul society”, she said. Yeda also stated that the twofold increase in Banrisul’s equity, achieved through clear transparency rules, was a requirement by the government to conquer investors’ trust. “Banrisul, by managing and promoting development, deserved yet another important award. Congratulations, Banrisul, congratulations, people of Rio Grande do Sul.”

According to the study, Banrisul’s sound performance results from a number of restructuring actions, such as the creation of a new management model, employee profit sharing and entering the capital markets.

According to Fernando Lemos, consolidating these changes led to a 26.2% increase in the credit portfolio, which totaled R$8 billion, and a 24.5% reduction in delinquency from 4.9% to 3.7%. “This year, we expect to achieve R$10 billion in credit”, he said. The publication pointed out the Bank’s more aggressive posture in the segment of small and medium enterprises (SMEs), which posted growth of 43.8%, totaling R$2.8 billion. The highlight in individuals were payroll-deductible loans, which increased by 42% from 2006.

Lemos stressed that, this year, Banrisul has been blessed three times: first it had its risk rating upgraded by Austin Rating, due to its financial stability, at the same time that it became part of Forbes magazine’s list of the world’s two thousand largest companies, and now was elected best state-owned bank in Brazil by Fundação Getúlio Vargas.

According to Banrisul’s CEO, the positive results are related to the dynamism in Brazil’s economic activity, driven by expansions in credit, employment and income, both in the country and in Rio Grande do Sul, stimulated principally by the industrial sector performance, good agricultural crops and exports. “Our main concern was to prepare the Bank professionally, being able to expand its businesses. The results we achieved prove that a public bank can be efficient, modern and profitable”.

In Luis Santacreu’s opinion, consultant for Austin Rating, state-owned banks are increasingly active, counting on better professionals, cost reductions and pursuing efficiency. “They are working well, many are listed in stock exchanges and shareholders are pleased with results”, he pointed out. According to consultant João August Salles, at Lopes Filho e Associados, Banrisul came to the market in 2007, through its IPO, funded R$800 million and increased its equity. “Thus, it was able to improve loan conditions”.

The ranking Best Financial Conglomerates in Brazil was published, exclusively, in the June issue of Conjuntura Econômica magazine. Works were conducted by FGV’s Data Management Division, taking into consideration indicators of growth in the domestic market, of economical and financial performance and of size (equity/profitability). The study utilized ten indexes obtained from the financial statements of the institutions − balance sheet and statements of income relative to the fiscal year of 2007.

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