Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q3 2020 Earnings Presentation
48 slides from Banco Santander (brasil)'s earnings presentation, Oct 27, 2020
Slide 1: Results (BR GAAP) 3rd Quarter 2020
RESULTS (BR GAAP) 3rd QUARTER 2020
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 Brasil”) following factors, among others, may cause actual results to differ and i
Slide 3: Agenda: Strategic Update
AGENDA 1 STRATEGIC UPDATE 3 2 4
Slide 4: Paving Our Own Way
PAVING OUR OWN WAY ABN NEWS WORKING AMRO BANCO BONSUCESSO MODELS AND FELLING OF NOROESTE REAL CONSIGNADO DIGITALIZATION BELONGING UNTIL 2015: BRAND CONSOLIDATION 2016: COMMERCIAL TRANSFORMATION AND BUSINESS INTEGRATION AND CULTURE CREATION MERIDIONAL GETNET WE ACCELERATED AUTO CONGLOMERATE LOANS WHE
Slide 5: A Growth Story
A GROWTH STORY +8.3p.p. 3Q20 vs. 3Q15 21.3 21.2 19.9 16.9 14.5 12.4 3.9 13.3 10.0 17% MARKET SHARE ROE 12.8 NET PROFIT (%) 7.3 Net Profit (R$ Bi) 6.6 Efficiency 49.8 -11.4p.p. ratio ( % ) 48.3 44.1 3Q20 vs. 3Q15 +7p.p. 1H20 vs. 1H15 40.6 38.9 36.6 20 20 20 20 20 3Q 15 16 17 18 19 20 ¹ Among the five
Slide 6: A Unique Culture That Sets Us Apart in the Market
A UNIQUE CULTURE THAT SETS US APART IN THE MARKET EXECUTION SPEED OBSESSION WITH EFFICIENCY • COMMERCIAL ACTIVITY PACE FASTER • ELIMINATING SCATTERED EFFORTS THAN PRE-PANDEMIC LEVELS • RAPID EXPANSION OF OUR BUSINESS IN • TRANSFORMING OPERATIONAL BRAZIL’S COUNTRYSIDE PROCESSES ABILITY TO INNOVATE AL
Slide 7: Sustainable Businesses That Deliver Results, Now and in the Future
SUSTAINABLE BUSINESSES THAT DELIVER RESULTS, NOW AND IN THE FUTURE 7% “PLANO AMAZÔNIA” 4% SOCIAL ACTIONS OTHERS 40% DISTRIBUTED GREEN AND 3 LARGEST PRIVATE BANKS IN THE COUNTRY GENERATION TRANSITION 9% BONDS DONATION MARATHON FOR PLAN FOCUSED ON SUSTAINABLE MICROFINANCE THE “MÃES DA FAVELA” PROJECT
Slide 8: Bantech Is Just the Beginning
BANTECH IS JUST THE NEW BUSINESS VENTURES, BEGINNING NEW MARKET NICHES 8
Slide 9: Straightforward Credit Solutions, Fair Deals
STRAIGHTFORWARD CREDIT SOLUTIONS, FAIR DEALS CREDIT PLATFORM DIGITAL DEBT RENEGOTIATION PLATFORM “LENDING-AS-A-SERVICE” PROPRIETARY FOCUS ON THE CUSTOMER JOURNEY PERSONAL LOANS DISTRIBUTION B2B2C CHANNELS DISTRIBUTION QUICK REGISTRATION AND EASY NAVIGATION AUTO-BACKED CHANNELS LOANS CONSUMER FINANCE
Slide 10: We Have Changed the Face of Traditional Businesses
WE HAVE CHANGED THE FACE OF TRADITIONAL BUSINESSES BENEFITS PLATFORM BUSINESS AUTO INSURANCE COMBINATION¹ 100% DIGITAL BUSINESS EVOLUTION USE OF BIG DATA FOR (PARTNER) TORO’S VAST PI’S DEEP INSURANCE PRICING MERCHANTS CARDS KNOWLEDGE IN EXPERTISE IN EQUITIES FIXED INCOME +310 k 164 k 15.6% PENETRATI
Slide 11: Ability to Grow in Our Core Business
ABILITY TO GROW IN OUR ENABLES US TO REMAIN CORE BUSINESS AT THE FOREFRONT OF THE FINANCIAL INDUSTRY CUSTOMER PRODUCTS & BUSINESSES COUNTRYSIDE BASE GROWTH ENGINES EXPANSION 11
Slide 12: Consistent Customer Base Growth
CONSISTENT CUSTOMER BASE GROWTH ACTIVE CUSTOMER BASE EVOLUTION (thousands) +71% 27,328 +1.3 MM ACTIVE CUSTOMERS NPS IN 1 YEAR HIGH LEVELS 15,967 61.8 DIGITAL POINTS ACCOUNT HOLDERS +3.8 +660 k YoY POINTS YoY 9M15 9M20 12
Slide 13: Digital Transformation
DIGITAL TRANSFORMATION SETTING THE STAGE FOR OUR FUTURE SHARE OF DIGITAL ACQUISITION IN THE TOTAL RETAIL CUSTOMER BASE SHARE OF DIGITAL TRANSACTIONS 87% +21p.p. 40% 3Q15 vs. 3Q20 10% 2020E 2018 EVOLUTION OF DIGITAL LOAN CONTRACTS | BASE 100 E-COMMERCE +9.5X 132 SALES 8M16 vs. 8M20 100 Jan-Feb March
Slide 14: How Did We Do It?
CARDS WAY HOW DID PAYMENTS WE DO IT? THROUGH INNOVATION AND PAYROLL INVESTMENTS TECHNOLOGY IN LOANS OUR CORE BUSINESS MORTGAGE 14
Slide 15: Santander Financiamentos
SANTANDER FINANCIAMENTOS A HISTORY-MAKING FINANCING UNIT +18 p.p. CROSS-SELLING OPPORTUNITY: 18K ACCOUNT HIGHER THAN OPENINGS/MONTH¹ AND THE MARKET ESTIMATE OF 350K LEADERSHIP IN ACCOUNTS NEXT YEAR THE AUTO MARKET 2.9x +80% 25.3% NPS 83 EBT GROWTH AUTO LOAN MARKET SHARE² PIONEERS IN 8M16-8M20 PORTFO
Slide 16: Getnet: Six Years of Constant Evolution
GETNET SIX YEARS OF CONSTANT EVOLUTION 3Q20 YoY CAGR 2014-3Q20 MARKET SHARE ACTIVE BASE 851 K 17% 20% +3X HIGHER THAN 3% 2013 15% 2020E THE MARKET¹ TURNOVER R$ 69 Bi 32% 29% DIGITAL/TOTAL TURNOVER (%) +EFFICIENT COST PER (R$ 0.01) -18% IN THE MARKET 11% 22% TRANSACTION R$ 0.33 3Q19 3Q20 ACTIVE BANKI
Slide 17: Cards: Revamped Strategy to Grow with Profitability
CARDS REVAMPED STRATEGY TO GROW WITH PROFITABILITY SANTANDER WAY 2x +50% TURNOVER CREDIT CARD BASE IN 5 YEARS GROWTH IN 5 YEARS T H E B E S T D I G I TA L S E L F - S E R V I C E A N D PAY M E N T S E X P E R I E N C E +91% 68% 4 PILLARS RISE IN TRANSACTIONS IN 5 YEARS ACCOUNT HOLDERS 8 MM 73% SELF-
Slide 18: Payroll Loans
PAYROLL LOANS A LONG-TERM JOURNEY WITH THE CUSTOMER CROSS-SELLING PORTFOLIO NPS OPPORTUNITY 15 K 240% PORTFOLIO MARKET SHARE 88 ACCOUNTS OPENED/MONTH GROWTH VS 52% 11.4%¹ POINTS MARKET GROWTH (+630bps IN 5 YEARS) 85% IN 5 YEARS OF NEW ORIGINATION ORIGINATION BREAKDOWN 8M20 LOANS ARE SIGNED DIGITALLY
Slide 19: Mortgage
MORTGAGE PIONEERS IN DIGITAL OFFERS MORTGAGE IN 3 YEARS “USECASA” +50% 11% +4.3x HOME-EQUITY ▪ YOUR PROPERTY AS THE GUARANTEE OF THE BEST RATE INDIVIDUALS INDIVIDUALS GROWTH IN ORIGINATION ORIGINATION VS. ▪ GET CASH TODAY AND REPAY PORTFOLIO MARKET SHARE MARKET GROWTH¹ IT IN UP TO 20 YEARS +6.1p.p.¹
Slide 20: Full Range of Investments
FULL RANGE OF INVESTMENTS OFFER ADVISORY • PORTFOLIO REPOSITIONING WITH • ASSERTIVE AND PERSONALIZED RECOMMENDATION THAT TAKES +32% OPEN ARCHITECTURE AND RETAIL INTO ACCOUNT THE CUSTOMER DIVERSIFICATION INVESTMENTS PROFILE • QUICK AND SIMPLE EXPERIENCE BALANCE • SPECIALIZED CHANNEL IN 3 YEARS BROKER
Slide 21: Wholesale
WHOLESALE ALL EFFORTS ALIGNED TO ENHANCE TRANSVERSAL OPPORTUNITIES WITHIN OUR BUSINESS... WE HAVE RESTRUCTURED THE CROSS-SELL SEGMENT OVER THE LAST 3 YEARS: BENEFITS + TRANSACTIONALITY CARDS PAYROLLS PORTFOLIO MANAGEMENT HR MARKETPLACE FOCUS ON PROFITABILITY GETNET SX 21
Slide 22: With Courage to Innovate and Explore New Markets
...WITH COURAGE TO INNOVATE AND EXPLORE NEW MARKETS WE ARE THE LARGEST FX PLATFORM IN THE COUNTRY¹ PROPRIETARY CORPORATE & SMEs TRADING & MARKET MAKING PIONEERS IN FULLY DIGITAL FX CONTRACTING INDIVIDUALS WE HAVE UNIFIED ONE PAY FX SELF-SERVICE AT ATMs THE MANAGEMENT • ONLY APP IN THE COUNTRY WITH B
Slide 23: Countryside Expansion
COUNTRYSIDE EXPANSION COMMITTED TO BEING THERE FOR OUR CUSTOMERS AGRI PROSPERA SANTANDER AGRI RETURN IN LESS MICROFINANCE 40 STORES THAN 18 MONTHS AGRI ORIENTED 300 BRANCHES 99 540 K PROSPERA CUSTOMERS STORES PORTFOLIO1 PORTFOLIO OF WE GROW R$ 1.1 Bi +2x IN 3 YEARS 267% Sep-15 R$6 Bi Sep-20 R$ 22 Bi
Slide 24: Agenda: 3Q20 Results Highlights
AGENDA 1 STRATEGIC UPDATE 3 3Q20 RESULTS HIGHLIGHTS 2 SANTANDER GROUP RESULTS 4
Slide 25: Brazil: Well-Diversified Results
WELL-DIVERSIFIED RESULTS 30% 15% 11% 9% 9% UNDERLYING ATTRIBUTABLE PROFIT SCF (EUR Million) BRAZIL CONTRIBUTED TO 30% 6% 5% 5% 3% 3% 5,453 -33% 9M20 RESULTS NORTH AMERICA 20% 39% EUROPE SOUTH 3,658 41% AMERICA1 RATINGS LONG SHORT OUTLOOK TERM TERM MOODY’S A2 P-1 STABLE STANDARD & POOR’S A A-1 NEGATI
Slide 26: Agenda: Santander Group Results
AGENDA 1 STRATEGIC UPDATE 3 3Q20 RESULTS HIGHLIGHTS 2 SANTANDER GROUP RESULTS 4
Slide 27: Result
RESULT (R$ million) 9M20 9M19 % 12M 3Q20 2Q20 % 3M Net Interest Income 38,707 35,328 9.6% 12,432 13,620 -8.7% Fees 13,331 13,882 -4.0% 4,746 4,102 15.7% Total Revenues 52,038 49,209 5.7% 17,179 17,722 -3.1% Allowance for Loan Losses -9,674 -9,116 6.1% -2,916 -3,334 -12.5% General Expenses -15,858 -1
Slide 28: NII Impacted by the Mix
NII IMPACTED BY THE MIX NET INTEREST INCOME (R$ million) 3% 10% -9% (R$ million) 9M20 % 12M % 3M 13,620 38,707 12,028 12,432 35,328 Customers 32,395 0.8% -4.5% 6,312 MARKET 2,591 3,205 NII 1,102 1,899 Product NII 31,116 3.3% -4.4% Volume 384,197 20.5% 1.3% 32,123 32,395 Spread 10.8% -1.8 p.p -0.7 p.
Slide 29: Portfolio Highlighted by the Rebound in Retail
PORTFOLIO HIGHLIGHTED BY THE REBOUND IN RETAIL CREDIT PORTFOLIO (R$ billion) (R$ million) Sep/20 % 12M % 3M Individuals 165,044 11.6% 5.1% 20% Consumer finance 57,971 5.1% 2.2% 4% SMEs 53,335 40.5% 14.6% 331.6 382.9 397,4 Corporate 121,034 33.5% -1.3% 11.4% 12.2% 13.4% Total 397,385 19.8% 3.8% Other
Slide 30: Deferred Loan Portfolio
DEFERRED LOAN PORTFOLIO IMPROVING EXPECTATIONS PORTFOLIO BREAKDOWN R$ 46.7 Bi PORTFOLIO SEP-20 27% 73% R$ 3.2 Bi AMORTIZED 3Q20 VS 2Q20 Corporate & SMEs Individuals >50% 5.1% 90% INDIVIDUALS NPL FROM 15 TO 90 DAYS RATED¹ AA-C COLLATERALS ¹ Based on Brazilian Central Bank’s criteria 30
Slide 31: Funding Shows Growth in Deposits
FUNDING SHOWS GROWTH IN DEPOSITS FUNDING FROM CUSTOMERS (R$ billion) (R$ million) Sep/20 % 12M % 3M 32% Demand deposits 43,414 95.6% 9.9% 4% Savings deposits 59,443 25.6% 6.6% Time deposits 275,249 48.5% 7.2% 451.1 Financial Bills 17,915 -48.3% -20.2% 432.3 Others¹ 55,037 3.4% -5.3% 342.8 Funding fr
Slide 32: Fees Supported by Higher Transactionality
FEES SUPPORTED BY HIGHER TRANSACTIONALITY FEES (R$ million) (R$ million) 9M20 % 12M % 3M 0% -4% Cards 4,080 -12.2% 17.6% 16% Current account 2,908 1.8% 8.4% Insurance 2,210 -3.3% 4.2% 4,730 4,746 13,882 13,331 Asset management 740 -8.3% 15.6% 4,102 Lending operations 1,049 3.2% 23.1% Collection serv
Slide 33: Loan Portfolio Quality
LOAN PORTFOLIO QUALITY INDICATORS UNDER CONTROL NPL INDICATORS COVERAGE RATIO FROM 15 TO 90 DAYS OVER 90 DAYS OVER 90 DAYS 5.7% 6.0% 5.2% 4.1% 4.0% 4.0% 307% 4.6% 3.5% 272% 4.1% 4.1% 4.2% 3.0% 3.0% 3.0% 3.9% 2.9% 3.1% 2.4% 2.7% 2.1% 181% 1.7% 1.9% 1.6% 1.1% 1.2% 1.6% 1.5% 1.3% 1.2% 0.9% Sep-19 Dec-1
Slide 34: Loan Portfolio Quality: Allowance for Loan Losses
LOAN PORTFOLIO QUALITY INDICATORS UNDER CONTROL ALLOWANCE FOR LOAN LOSSES (R$ million) | COST OF CREDIT 6.0% 3.4% 3.3% 4.0% 3.1% 3.0% 2.6% 12,874 3,200 6,534 9,116 3,200 3,152 2,916 10,723 11,735 3,723 4,045 3,754 (571) (711) (837) (1,607) (2,061) 3Q19 2Q20 3Q20 9M19 9M20 Provisions for loan losses
Slide 35: Diligent Cost Management Underpins Efficiency
DILIGENT COST MANAGEMENT UNDERPINS EFFICIENCY ADMINISTRATIVES AND PERSONNEL GENERAL EXPENSES (R$ million) EXPENSES COMPOSITION (R$ million) 3% 1% 2% 2% 13,781 13,899 4% 4,540 4,692 15,858 7,047 6,841 15,561 2,256 2,232 1,779 1,959 6,734 7,058 2,308 2,436 5,258 5,191 5,375 606 651 683 2Q20 3Q20 9M19
Slide 36: Solid Balance Sheet
SOLID BALANCE SHEET LOAN PORTFOLIO/ FUNDING FROM CUSTOMERS BIS RATIO 96.7% 16.2% 88.6% 88.1% 14.4% 14.9% 14.0% 11.9% 12.3% Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 BIS ratio CET1 36
Slide 37: Indicators
INDICATORS EFFICIENCY RATIO RECURRENCE RATIO 38.4% 90.0% 88.3% 36.6% 79.0% 35.7% -1.8 pp -1.7 pp YoY YoY 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 1.8% 21.9% 21.2% 1.6% 1.6% 21.1% +0.1 pp -0.2 pp 12.0% YoY YoY 0.9% 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 ROAA ROAE w/o extraordinary provision 37
Slide 38: Agenda: Final Remarks
AGENDA 1 STRATEGIC UPDATE 3 3Q20 RESULTS HIGHLIGHTS 2 SANTANDER GROUP RESULTS 4 FINAL REMARKS
Slide 39: Our Culture of Speed and Innovation Enables Us to Support Customers
OUR CULTURE OF SPEED AND INNOVATION ENABLES US TO SUPPORT CUSTOMERS, EMPLOYEES AND SOCIETY, WHILE DELIVERING VALUE TO SHAREHOLDERS • OUR EFFECTIVE PERCEPTION OF CYCLES GIVES US THE ABILITY TO CAPTURE MARKET OPPORTUNITIES IN ADVANCE • STRONG COMMERCIAL ACTIVITY DRIVEN BY THE ENGAGEMENT OF OUR EMPLOYE
Slide 40: Santander Ecosystem
SANTANDER ECOSYSTEM ¹ 40 ¹ The conclusion of the deal is subject to applicable regulatory approvals
Slide 41: Appendix
CS APPENDIX
Slide 42: P&L 9M20 vs 9M19
APPENDIX P&L (R$ million) 9M20 9M19 Abs. 12M Net interest income 38,707 35,328 3,379 9.6% Allowance for loan losses -9,674 -9,116 -558 6.1% Net interest income after loan losses 29,033 26,212 2,821 10.8% Fees 13,331 13,882 -551 -4.0% General expenses -15,858 -15,561 -297 1.9% Personnel expenses + pr
Slide 43: P&L by Quarter
APPENDIX P&L (R$ million) 3Q19 4Q19 1Q20 2Q20 3Q20 Net interest income 12,028 12,605 12,655 13,620 12,432 Allowance for loan losses -3,152 -2,983 -3,424 -3,334 -2,916 Net interest income after loan losses 8,876 9,622 9,231 10,286 9,516 Fees 4,730 4,803 4,482 4,102 4,746 General expenses -5,258 -5,67
Slide 44: Balance Sheet – Assets
APPENDIX Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Balance sheet – Assets (R$ million) Current asset and long-term assets 825,938 844,295 986,524 973,953 968,524 Cash and cash equivalents 10,307 9,925 13,963 22,655 15,338 Interbank investments 36,193 43,367 55,568 49,272 59,400 Securities and derivative fi
Slide 45: Balance Sheet – Liabilities and Equity
APPENDIX Balance Sheet – Liabilities and equity Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 (R$ million) Current liabilities and long-term liabilities 763,053 785,789 926,596 911,647 903,725 Deposits 258,109 272,928 303,885 358,061 384,218 Demand deposits 22,191 29,108 34,024 39,497 43,414 Saving deposits 47
Slide 46: Balance Sheet – Loan Portfolio
APPENDIX Balance Sheet - Loan Sep-20 Sep-19 12M Jun-20 3M Portfolio (R$ million) Individuals 165,044 147,876 11.6% 157,002 5.1% Leasing / auto loans (*) 3,410 2,484 37.3% 3,225 5.7% Credit card 32,297 32,320 -0.1% 29,240 10.5% Payroll loans 46,783 40,593 15.3% 45,451 2.9% Mortgage 40,897 35,490 15.2
Slide 47: Acquiring Turnover Has Increased by 23%
TURNOVER HAS INCREASED BY 23% IN THE LAST 12 MONTHS ACQUIRING 9M20 9M19 12M Turnover (R$ million) 112,859 90,136 25.2% CREDIT Transactions (milions) 858 759 13.1% Turnover (R$ million) 67,616 56,285 20.1% DEBT Transactions (milions) 1,057 997 6.0% Turnover (R$ million) 180,475 146,421 23.3% TOTAL Tr
Slide 48: Investor Relations (Brazil)
Investor Relations (Brazil) Av, Juscelino Kubitschek, 2.235, 26th floor São Paulo | SP | Brasil | 04543-011 Telefone: 55 11 3553 3300 E-mails: ri@santander.com.br acionistas@santander.com.br Our purpose is to help people and businesses prosper. Our culture is based on the belief that everything we d
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