Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q3 2021 Earnings Presentation
25 slides from Banco Santander (brasil)'s earnings presentation, November 2021
Slide 1: Institutional Presentation 3rd Quarter 2021 (BR GAAP)
P R E S E N TAT I O N INSTITUTIONAL 3 RD Q UA RT E R 2 0 2 1 (BR GAAP) PRESENTATION EARNINGS RESULTS RELEASE 3Q21 3Q21 1
Slide 2: Disclaimer
DISCLAIMER This presentation may contain certain forward-looking statements and In addition to factors identified elsewhere in this presentation, the information pertaining to Banco Santander (Brasil) S,A, (“Santander following factors, among others, may cause actual results to differ Brasil”) and i
Slide 3: Key Aspects of the Brazilian Market
MACROECONOMY AND FINANCIAL SYSTEM KEY ASPECTS OF THE BRAZILIAN MARKET FX (BRL/USD) INFLATION (% p.a.) SELIC TARGET (% p.a.) GDP (% p.a.) IMPACTED BY INSTITUTIONAL RECENT SHOCKS POSE A NECESSARY (AND STRONG) ECONOMIC RECOVERY IS IN UNCERTAINTIES THREAT TO ANCHORING OF ADJUSTMENT MUST BE MADE JEOPARDY
Slide 4: Characteristics of the Brazilian Financial System
MACROECONOMY AND FINANCIAL SYSTEM CHARACTERISTICS OF THE BRAZILIAN FINANCIAL BRAZILIAN MARKET SYSTEM PROFILE PROVISION FOR LOAN LOSSES RATE – BY SEGMENT | BY INSTITUTION PRIMARY BALANCE AND GROSS DEBT (% of GDP) 5% 5 100 4% 2 90 3% 2.99% -1 80 2.41% 2.29% 2% 2.13% -4 70 1.36% -7 60 1% Dec-16 Dec-17
Slide 5: Santander Brasil's Consolidated Footprint in the Brazilian Market
SANTANDER BRASIL PROFILE SANTANDER BRASIL’S CONSOLIDATED FOOTPRINT IN THE BRAZILIAN MARKET PROFITABILIT CONSOLIDATION OF COMMERCIAL Y AMONG THE INTEGRATION OF PLATFORMS NPS A NEW WAY OF DOING BUSINESS DIFFERENT BRANDS TRANSFORMATION BEST IN THE INDUSTRY 1970 | 1998 2000 2007 2009 2014 2016 2017 2018
Slide 6: Bank with Strong Presence in Brazil
SANTANDER BRASIL PROFILE BANK WITH STRONG PRESENCE IN BRAZIL SEP-21 94.8% LOAN PORTFOLIO/ FUNDING ~ R$ 133Bi FROM CUSTOMERS NORTHEAST MARKET CAPITALIZATION • 14.3% OF GDP² • 9.91% FREE FLOAT • 49.3K EMPLOYEES 29.7MM • 9.5% OF SANTANDER ACTIVE CUSTOMERS BRANCHES MID-WEST + • 7.5MM LOYAL NORTH • 2 AGR
Slide 7: Integrated Business System Focused on Best Customer Experience
SANTANDER BRASIL PROFILE INTEGRATED BUSINESS SYSTEM FOCUSED ON DELIVERING THE BEST CUSTOMER EXPERIENCE +51.8MM CUSTOMERS ~378MM TRANSACTIONS PROCESSED PER DAY AUTO ECOSYSTEM 35MM INTERACTIONS /MONTH DIGITAL CHANNELS +1.5BI TOTAL VISITS IN 3Q21 7 7
Slide 8: Strategic Priorities Are Based on Four Pillars
STRATEGY STRATEGIC PRIORITIES ARE BASED ON FOUR PILLARS OUR OUR OUR OUR SHAREHOLDERS COMMUNITIES PEOPLE CUSTOMERS RECURRENCE AND CAPITAL BUILDING A SUSTAINABLE STRONG CORPORATE PREFERENCE DISCIPLINE BUSINESS CULTURE AND LOYALTY CREATING SHAREHOLDER RESPONSIBLE BANKING ENGAGED PEOPLE CUSTOMER-FOCUSED
Slide 9: We Deliver Value to Our Shareholders
WE DELIVER VALUE TO OUR SHAREHOLDERS STRATEGY THROUGH RECURRING AND CONSISTENT RESULTS ROE TOTAL RETURN2 (TOTAL RETURN ANALYSIS) (%) 5 YEARS 22.4 111 21.3 21.6 21.1 20.6 19.9 IBOV 90 19.1 16.9 NET Dec-18 Dec-16 Dec-17 Dec-19 Dec-20 Sep-16 Jun-17 Sep-17 Jun-18 Sep-18 Jun-19 Sep-19 Jun-20 Sep-20 Jun-2
Slide 10: Commitment to Society
COMMITMENT TO STRATEGY SOCIETY SINCE 2002, LEADING THE WAY IN CREATING SUSTAINABLE BUSINESSES Named THE MOST Named to Fortune Magazine’s ENVIRONMENTAL SUSTAINABLE COMPANY “CHANGE THE WORD” LIST by Época Negócios 360º SUSTAINABLE ESG LINKED LOANS INTERNAL ZERO CARBON EMISSIONS BUSINESSES PIONEERS, WI
Slide 11: Leadership in Social Initiatives
STRATEGY WITH LEADERSHIP SOCIAL IN SOCIAL AMIGO DE VALOR SINCE 2002 THOUSANDS PEOPLE HAVE BENEFITED AMAZON PLAN INITIATIVES COMMITMENT TO THE REGION’S DEVELOPMENT, ALONG WITH OTHER PROSPERA SINCE 2002 PRIVATE BANKS IMPACTING +800K +667K CUSTOMERS +R$ 1.7Bi PORTFOLIO PEOPLE OVER THE PAST NORTH AMAZON
Slide 12: Solid Corporate Governance
STRATEGY AND THROUGH A SOLID CORPORATE GOVERNANCE GOVERNANCE ESG AS A METRIC BOARD OF DIRECTORS: FOR EVALUATING EXECUTIVE PERFORMANCE • 56% ARE INDEPENDENT STRUCTURE MEMBERS • 33% ARE WOMEN SHAREHOLDERS MEETING Independent Non- Independent Non- FISCAL Directors independent Members independent COMMIT
Slide 13: Strong Culture with Market-Recognized Engagement
STRATEGY OUR BUSINESS IS SUSTAINED BY A STRONG CULTURE, WITH A MARKET-RECOGNIZED LEVEL OF ENGAGEMENT DIVERSITY CULTURE TOP LEADERSHIP & INCLUSION & LEADERSHIP PROXIMITY 56 VIRTUAL 39k EMPLOYEES 31% 27% 5% +3k 77% EVENTS PER EVENT¹ OF LEADERSHIP OF OF EMPLOYEES ARE COURSES HELD OF COURSES ARE TAUGHT
Slide 14: Combining Profitability with Customer Base Expansion
STRATEGY COMBINING PROFITABILITY WITH CUSTOMER BASE EXPANSION QoQ 51.8MM +1,566k TOTAL CUSTOMERS DIGITAL 18.2MM +3.0x TOTAL CUSTOMERS SALES/ YoY 80% OF REVENUE 6 PRODUCTS OR MORE 7.5MM LOYAL +300k ACTIVE ACCOUNT REMOTE HOLDERS +747k SERVICE MODEL SALES/MONTH 3 TO 5 PRODUCTS 7.4MM UP TO 2 OF WHICH PR
Slide 15: Focusing on End-to-End Digital Service
OUR BUSINESSES FOCUSING ON END-TO-END DIGITAL SERVICE +269% 233 3MM +128% 63 CONTRACTS YoY CAPITALIZATION IN 3Q21 CONTRACTS (THOUSANDS) LOAN 3Q20 3Q21 +88% 287 153 OPEN¹ INSURANCE ARTIFICIAL INTELLIGENCE CONTRACTS (THOUSANDS) 3Q20 3Q21 +18MM +21K +110% 990 INTERACTIONS/ MONTH QUESTIONS UNDERSTOOD (+
Slide 16: Strategy with Segmentation Suited to Customers
OUR BUSINESSES AND WITH A STRATEGY WITH SEGMENTATION SUITED TO OUR CUSTOMERS’ CIRCUMSTANCES INDIVIDUAL CORPORATE SANTANDER | PRIVATE BANKING SCIB | Global Customers List CORPORATE INVESTMENTS ABOVE R$ 5 MM SANTANDER | SELECT MONTHLY INCOME ABOVE R$ 10,000¹ OR R$ 300,000 CORPORATE | IN INVESTMENTS RE
Slide 17: Diversified Business Model with Scale Across All Segments
OUR BUSINESSES DIVERSIFIED BUSINESS MODEL WITH SCALE ACROSS ALL SEGMENTS PRODUCT AND SEGMENT BREAKDOWN (share in total loans) CREDIT PORTFOLIO SEP-21 SEP-21 CONSUMER INDIVIDUALS FINANCE CORPORATE AND SMEs R$ 450.3Bi R$ BALANCE QoQ R$ BALANCE QoQ R$ BALANCE WORKING CAPITAL 1 3 4 . 4 B i QoQ OF WHICH
Slide 18: Broad-Ranging Solutions for Individuals
SUPPORTED BY BROAD-RANGING SOLUTIONS THROUGH OUR BUSINESSES OUR CORE BUSINESS, UNDERPINNED BY DEEP INDIVIDUALS CUSTOMER KNOWLEDGE CARDS REAL MORTGAGE RECORD NEW LEVEL OF 3Q21 ORIGINATION/MONTH TOTAL TURNOVER CARDS ISSUED • DIGITAL JOURNEY TO OBTAIN 91% MORTGAGE LOANS ~R$ 1.6Bi R$ 79Bi ~2MM 3Q21 SHAR
Slide 19: We Encourage Entrepreneurship in the Country
OUR BUSINESSES WE ENCOURAGE THE ENTREPRENEURSHIP IN THE COUNTRY SMEs NEW PRODUCTS AND OFFERINGS INCENTIVES ESG LENDING PRODUCTS GOVERNMENT-PROGRAMS EMPRESAS NÚCLEO TARGETING SMEs UP TO R$200M IN REVENUE CDC SOLAR GIRO SUSTENTÁVEL EMPRESAS POLO UP TO R$ 30MM IN REVENUE Financing for the purchase of s
Slide 20: Leadership in Wholesale Banking
OUR BUSINESSES LEADERSHIP IN WHOLESALE BANKING SOLIDIFIED AS ONE OF THE BEST BANKS FOR COMPANIES GLOBAL BANK LEADING FX BANK 2ND LARGEST FOREIGN ACCOLADES FOR THE LAST 8 TRADE PORTFOLIO AMONG YEARS BANKS WITH US$ 15Bi LATIN AMERICA'S BEST BANK GO-TO BANK FOR WE ARE LEADERS IN ENERGY TRADING - TOP 5
Slide 21: Expanding Our Platform with Disruptive Initiatives
OUR BUSINESSES AND WE EXPAND OUR PLATAFORM WITH DISRUPTIVE INITIATIVES LOANS IN THE FULLY-DIGITAL INSURANCE OPEN MARKET BUSINESS PENETRATION +46K COMBINATION +5MM R$ 1.5Bi 89 19% Pi’S NEW TORO’S EXTENSIVE PROFOUND POINTS KNOWLEDGE OF INSURANCE POLICIES IN 3Q21 EXPERTISE IN CUSTOMERS PORTFOLIO NPS EQ
Slide 22: Financial Highlights: Results
FINANCIAL HIGHLIGHTS RESULTS (R$ MILLION) 3Q21 3Q20 3Q21 X 3Q20 2Q21 3Q21 X 2Q21 NET INTEREST INCOME 14,617 12,434 17.6% 13,424 8.9% FEES 4,831 4,260 13.4% 4,700 2.8% TOTAL REVENUES 19,448 16,694 16.5% 18,124 7.3% ALLOWANCE FOR LOAN LOSSES -3,676 -2,916 26.1% -3,325 10.6% GENERAL EXPENSES -5,480 -5,
Slide 23: Financial Highlights: More Information
FINANCIAL HIGHLIGHTS MORE FINANCIAL INFORMATION HIGHLIGHTS NPL FEES I N D I C ATO R S CARDS NPL 90 DAYS NET INTEREST R$ 1.3Bi +31.0% 2.4% +0.37 YoY P.P. YoY I N CO M E CUSTOMERS INSURANCE NPL 15-90 DAYS R$ 12.1Bi +14.8% R$ 0.9Bi +19.7% 3.4% +0.31 YoY YoY P.P. YoY MARKET ACTIVITIES CAPITAL MARKET COS
Slide 24: Takeaways
TAKEAWAYS PROFITABILITY RECORD CUSTOMER SUSTAINABLE INCREASE CONSISTENCY, ACQUISITION, WITH LOYALTY IN TOTAL REVENUES, REACHING THE AND BANKING INCLUSION SUPPORTED BY GREATER HIGHEST LEVEL IN RISING AT A FAST PACE TRANSACTIONALITY OUR HISTORY AT 22.4% COST OF CREDIT UNDER CEASELESS QUEST FOR UNIQUE
Slide 25: Simple | Personal | Fair
Investor Relations (Brazil) Av. Juscelino Kubitschek, 2.235, 26th floor São Paulo | SP | Brazil | 04543-011 Phone: 55 11 3553 3300 E-mails: ri@santander.com.br acionistas@santander.com.br OUR PURPOSE IS TO HELP PEOPLE AND BUSINESSES PROSPER. AND WE BELIEVE EVERYTHING WE DO SHOULD BE: SIMPLE | PERSON
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