Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q3 2023 Earnings Presentation
22 slides from Banco Santander (brasil)'s earnings presentation, Oct 25, 2023
Slide 1: Earnings Presentation 3Q23
«> Santander Earnings Presentation 3Q23 BR-GAAP October 25", 2023
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements and information pertaining to Banco Santander (Brasil) S.A. (“Santander Brasil") and its subsidiaries, which reflect the current views and / or expectations of Santander Brasil and its management regarding its business perfo
Slide 3: Strategy Update, 3Q23 Results, Takeaways
oA AS Santander = Ze — Sea » : Pinna Strategy Update 3Q23 Results Takeaways Highlights @ Santander 3
Slide 4: Key Messages
Key Messages Highlights | 3Q23 Priorities | 2023 Customer base monetization and loyalty through principality Progress of the funding and fees plan enhances portfolio diversification & Net Profit RS 2.7 billion (+18% QoQ) ROAE 13.1% (+1.9 p.p. QoQ) Improvement in NPL and cost of credit consolidates o
Slide 5: Principality
Principality Focus on becoming the Customer preferred bank for customers in Centricity their financial decisions 9 TT @ +3%Q0Q _ LP 44% YoY Wearea digital bank Loyal customers with branches, available where, how 69% of loyal customers and when the from payroll customer desires nn ofl Sf ® Santander
Slide 6: Customer Centricity
Customer Centricity Innovation and Technology Business Expansion Select customers Loan portfolio Revenue’ per loyal customer (in thousands) (R$ billion) (base 100) «> Santander Select a5 Ambition of becoming the leading platform for premium servicesin Brazil mm 3) x. f Launch of a comprehensive H In
Slide 7: Investments Expansion
Investments Expansion rrechnslogy a5 Expansion of the funding plan mm Santander \ >) @ Retail’ AAN Lf) TORO « Santander Private Banking T +135% —> T +363% —> i +111% —> T +121% —> Accelerated 18.1 2.7 7.0 27.6 Net Inflow 77 06 3.3 12.5 R$ bili | | . Heaton = — = i 9M22 9M23 422 3023 9M22 9M23 922 9M
Slide 8: Cards and Loyalty
Cards and Loyalty Cards as a lever for principality an nps'85 @ +5Q0a O *3Y0Y Best card inthe market in 20232 Esfera points Esfera - Marketplace Our loyalty . platform Discount Incentives «> Santander Increased +1 5% spending per recurrence customer (YoY) Resumption of Growth Cards issued (base 100)
Slide 9: Customer base: Companies
Customer base Innovation and Companies "aa Ten a5 Ambition to be the bank L Largejcorporates Services tailored to our customers’ complexity and sophistication an | Rankings YTD | Revenues 2"4 largest independent More deals (base 100) Energy trader 1 Local Trade Finance” | 25% market share of choice
Slide 10: Strategic Businesses boosting our growth with profitability
Customer base monetization and loyalty Innovation and Technology Strategic Businesses == boosting our growth with profitability an 4 Agribusiness Payroll loans By Way Consumer Finance 22% market share in auto loans to individuals Record origination in auto loans (R$ billion) Profitability of new vin
Slide 11: Technology as a growth driver
Technology as a growth driver Our culture of productivity and operational excellence fosters continuous enhancement in customer experience an Total transactions a (billion) 5.7/ Unit cost (base 100) -52% 27 . i decrease in transaction unit cost over 5 years 100 5 94 68 54 he 9M18 9M19 9M20 9M21 9M22
Slide 12: 3Q23 Results Highlights
3Q23 Results Highlights «> Santander 12
Slide 13: Net Interest Income
3Q23 x 9M23 x (R$ million) 3Q23 9M23 2Q23 9M22 Clients NII 14,240 -1.3% 42,977 1.6% Product NII 13,547 -0.2% 40,517 1.4% Volume 555,842 0.9% 547,991 10.7% Spread (p.a.) 9.7% -0.2 p.p. 9.9% -0.9 p.p. Markets NII -827 -1.8% -2,840 -4.5% Net Interest Income 13,413 -1.2% 40,137 2.1%
Slide 14: Loan Portfolio
Sep/23 x Sep/23 x (R$ million) Sep/23 Sep/22 Jun/23 Sep/22 Individuals 232,721 1.6% 220,417 5.6% Consumer Finance 66,112 -2.1% 67,928 -2.7% SMEs 64,898 3.1% 60,964 6.5% Corporate 138,896 -0.6% 134,943 2.9% Total 3 502,626 0.7% 484,252 3.8% Private securities and guarantees 122,861 4.2% 95,608 28.5%
Slide 15: Funding from Clients
Sep/23 x Sep/23 x (R$ million) Sep/23 Sep/22 Jun/23 Sep/22 Demand deposits 44,012 10.8% 39,517 11.4% Saving deposits 57,283 -0.7% 60,237 -4.9% Time deposits 359,383 6.6% 310,981 15.6% Repo products¹ 19,010 2.6% 12,255 55.1% Real Estate (LCI) and Agribusiness 71,672 0.0% 54,573 31.3% (LCA) credit not
Slide 16: Fees
3Q23 x 9M23 x (R$ million) 3Q23 9M23 2Q23 9M22 Cards 1,415 3.2% 4,137 1.6% Current Account Services 1,028 2.6% 3,023 5.0% Insurance Fees 946 19.0% 2,496 0.5% Securities Brokerage and 409 -4.3% 1,196 7.5% Placement Credit Operations 528 10.8% 1,476 10.0% Asset Management and 360 6.2% 1,049 13.8% "Con
Slide 17: Evolution of credit indicators allows greater capacity to resume growth
Evolution of credit indicators allows greater capacity to resume growth - Allowance for loan losses and cost redit NPL Formatio R$ million 1.56% 1.70% 5.0% 1 1.07% 127% = 1.05% Np formation) . 1 portfolio (ex- 44% 2 ~- renegotiated) 3.6% 1 NPLformation weceneee : 7,618 lex ; 11,000 ; renegotiated) '
Slide 18: Significant improvement in Over and 15-90 days NPL ratios
Significant improvement in Over 90 and 15-90 days NPL ratios, especially in the Individuals segment NPL Ratios Over 90 days Over 90 days in Corporate & SMEs 4.8% 4.2% 4.1% 4.3% 4.3% 4.5% ° 4.2% 3.7% 3.8% e ~— 3 3.3% —~@ T Individuals 3. a 2 : —e —o— =O 3.0% 3.1% 3.2% ° 3.0% 1 SMEs I Total 1.3% 1.4%
Slide 19: General Expenses
3Q23 x 9M23 x (R$ millions) 3Q23 9M23 2Q23 9M22 Administrative 2,474 0.5% 7,347 1.5% Personnel 2,795 1.1% 8,337 12.3% Total Expenses 5,268 0.8% 15,685 7.0% Depreciation and Amortization¹ 758 1.5% 2,228 11.7% Total General Expenses 6,027 0.9% 17,912 7.5%
Slide 20: Income Statement
3Q23 x 9M23 x (R$ million) 3Q23 2Q23 9M23 9M22 2Q23 9M22 Net Interest Income 13,413 13,579 -1.2% 40,137 39,311 2.1% Fees 5,123 4,810 6.5% 14,632 14,233 2.8% Total Revenues 18,535 18,389 0.8% 54,769 53,544 2.3% Allowance for Loan Loasses -5,618 -5,980 -6.0% -18,363 -16,566 10.8% General Expenses -6,0
Slide 21: Strategy Update, 3Q23 Results Highlights
all ® Santander § Strategy Update 3Q23 Results Highlights 21
Slide 22: Takeaways: Quarter highlights and expectations
@ Santander Quarter highlights and expectations a L Consolidation of our strategy with significant Takeaways. - improvements in NPL and cost of credit, allowing the portfolio to resume its growth Evolution of strategic businesses bringing a positive L. outlook for clients NII L Continuous focus on c
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