When it comes to consigned credit, Banco BMG is a pioneer in the Brazilian market. The bank began its activities in this segment in 1998. Today, 11 years later, the bank is the undisputed leader in the sector and responsible to stimulate and develop this form of credit in the entire country, thanks to the diligent work of its CEO, Ricardo Guimarães.
Born in Belo Horizonte, in the state of Minas Gerais, Mr Guimarães learned with his father, Flávio Pentagna Guimarães, how to lead the company with efficiency, integrity and competence. His successful history in companies from the BMG Group started in 1980, as an office assistant. He has been president of the company since 2004.
The bank’s recent figures confirm the efficient and competitive guidance of its CEO. In 2010, the financial institution registered a net profit of R$606m, a 16 percent growth over the same period of the previous year, which was R$533.3m. This was Banco BMG’s best result in eight decades of operation, and Mr Guimarães hopes his entrepreneurial spirit will lead to even more growth in 2011.
Profitability in 2009 was 26.1 percent and in 2010, 27.6 percent. Owner’s equity reached R$2.3bn. During 2010, credit generation reached R$10.8bn, a 28 percent growth from 2009’s R$8.5bn. As for the credit generated in 2010, R$7.5bn were for payroll consigned credit, representing 69 percent of the amount of credit in the period.
Recently, Mr Guimarães led a successful negotiation for Banco BMG which resulted in the acquisition of GE Money in Brazil, comprising Banco GE S/A and GE Promoções, a sales promotion company and service provider. The acquisition included the totality of GE Money Brasil, in addition to existing partnerships with retailers and 54 stores. With this action, the CEO wishes to increase the number of Banco BMG branches (currently 3,000) throughout Brazil. The purpose is to use the structure to invest and focus even more in consigned credit.
A vision of growth
In early 2011, Guimarães once again showed his entrepreneurial spirit. He conducted the purchase of stocks of Seguradora CONAPP – National Insurance Company, an important Brazilian brand. The purpose is to act more aggressively in the insurance sector, which in 2011 should have a 12 percent growth according to data from the National Confederation of Insurance Companies for General Purposes, Social Security and Life, Health Care and Capitalisation Insurances (CNSeg).
With its headquarters located in Belo Horizonte, in the state of Minas Gerais, and a broad structure all over the national territory, BMG relies on a partnership with 1,044 bank correspondents, about 30,000 agents, 3,098 points-of-sale, of which 557 are its own, 547,000 active card points and 395 public partnerships. The bank has developed a technologic system to promote prompt and efficient approval. The technology allows on-the-spot online approval. Clearance is only granted after previously authorised by a public body, private entity or the National Social Security Institute.
The market approves of the path taken by Ricardo Guimarães as head of the bank, as evidenced by the prizes and awards it has received. BMG has been acknowledged as Best Financial Conglomerate by Fundação Getúlio Vargas for eight times in the Consumption Loan segment. For three times the bank has been the Best Bank in Consumption Loan by Gazeta Mercantil / Austin Rating. The institution is also among the 100 best companies to work for, according to the Great Place to Work listings.
Sponsorship and citizenship
Of course Banco BMG is focused on good results, but it is also attentive to the needs of society. As a sports lover, Mr Guimarães has associated the bank’s brand with soccer sponsorships. Currently, Banco BMG invests more in this area than any other Brazilian company. The bank sponsors several teams in the first and second divisions in Minas Gerais, as well as teams in other Brazilian states. Among them are Cruzeiro, América Mineiro, Clube Atlético Mineiro, São Paulo, Santos, Coritiba and Esporte, from Recife, Vasco, Flamengo and others.
Banco BMG is also a partner to volleyball and basketball teams, and assists a number of athletes in individual sports, such as gymnast Jade Barbosa, judo player Eduardo Santos, martial artist Vitor Belfort and tennis player Gabriel Pente. In addition, the bank supports Valdeno Brito and the BTBR3 team in the Stock Car BMG Racing, Cruzeiro’s track and field team and Flamengo’s gymnastics team. More recently, the bank has lent its brand to the most important soccer tournament in Minas Gerais, now known as the Minas Gerais BMG Tournament.
As another way to promote sports, Mr Guimarães has formed an important partnership with TV Alterosa, sponsoring the Soccer Talent-hunting project, the greatest Brazilian project ever created to identify, encourage and reveal soccer talents. Some 15,000 youths applied, seeking opportunities in the sport which is the greatest national passion for the Brazilian people. The goal is to find youths who can be used by the main clubs in Minas Gerais. Teenagers with ages between 13 and 17 took part and a great structure in terms of training, meals, medical care and follow-up with specialists to assist them to take the best steps in order to follow a professional career in soccer. The project’s main target is to show participants that sports practice should be used as a means to promote personal and social growth.
The concept of citizenship is part of Mr Guimarães’ philosophy, as it is also part of BMG’s history. Clients, employees and partners are involved in activities that value culture, leisure, health and education. This can be seen in the investments in projects that contribute to the quality of life, appreciation of culture and the strengthening of our country’s identity.
In this area, the Solidary Corporate Gift project, already in its third edition, can be brought to the foreground. In 2010, the company chose to collaborate with institutions supporting the elderly and located in nine different states. The project conquered the entire country, as well as others. The Solidary Corporate Gift project has contributed to 22 entities since its first edition in 2008, including day cares for the needy and nursery homes. The objective of Banco BMG is to encourage and promote a solidary movement including the entire society, helping diverse institutions in several regions in Brazil.
BMG is the first financial group in the Americas to use clean energy, using the roof of its Belo Horizonte headquarters to benefit from developing energy technology. As part of its commitment to sustainability, the institution has effectively begun using renewable energy, especially wind power and photovoltaic solar power. This way, BMG Group is considered a pioneer in Minas Gerais when it comes to renewable energy.
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