Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Presentation (October 2017)
22 slides from Banco Santander's investor presentation, Oct 10, 2017
Slide 1: Helping people and businesses prosper
Helping people and businesses prosper Sergio Rial Country Head Brazil
Slide 2: Forward-looking statements disclaimer
1 Banco Santander, S . A . ("Santander") cautions that this presentation contains statements that constitute “forward - looking statements” within the meaning of the U . S . Private Securities Litigation Reform Act of 1995 . Forward - looking statements may be identified by words such as “expect”, “
Slide 3: Contents
2 Contents Key takeaways 4 Brazilian market and outlook 1 Delivering our strategic targets ahead of plan 2 Positioned to capture further growth opportunities 3
Slide 4: Brazilian market and outlook
3 1 Brazilian market and outlook
Slide 5: Solid fundamentals reflect favorable economic outlook
4 2015 2016 2017E 2018E 2019E - 3.8 - 3.6 0.7 2.4 2.5 Solid fundamentals reflect favorable economic outlook… Positive economic momentum Inflation (IPCA %) Int. Rate ( Selic %) Exch. Rate (R$ / US$) GDP ( growth %) 8.5 3.0 4.2 2017E Average 2015 - 2016 Average 2018 - 2019E 14.0 7.0 7.5 3.58 3.16 3.33
Slide 6: Financial sector metrics keep improving
5 - 7% 16% 2Q'16 2Q'17 4.3% 3.7% Concentrated Deposits ~74% ~76% Well capitalised BIS Ratio 16.8% Well funded Loans / deposits 103% Improving RoE Declining cost of credit risk Positive earnings growth Five largest banks …and financial sector metrics keep improving Loans 2Q’16 2Q’17 - 7 % 2Q'16 2Q'17
Slide 7: Delivering our strategic targets ahead of plan
6 2 Delivering our strategic targets ahead of plan
Slide 8: Current strategy has already yielded higher results
7 Commercial thrust Stronger brand equity Leading in some areas Closing the gap vs. peers I nnovation Integrated offer 2015 2016 2017 Retail franchises ’ repositioning Commercial transformation Profitability and growth Focus on profitable growth underpinned by highly engaged employees Current strate
Slide 9: Building lasting relationships with our customers
8 Focus on Customer Needs 2017 Santander Way Cards App Consumer Finance App New internet banking and mobile for individuals Re - engineered credit process end - to - end New mortgage App Digital Account Opening Main Deliveries ( 1 ) IBOPE research 2016 (2) Customer satisfaction tracking methodology
Slide 10: Boosting profitability through revenue diversification and disciplined risk culture
9 74 118 22 276 398 108 (406) 60 2Q'14 2Q'15 2Q'16 2Q'17 Peers 2014 2015 2016 1H'17 41.6 40.0 39.5 35.3 Steady growth reflected in a consistently higher RoE … …with a robust balance sheet 2014 2015 2016 1H'17 8 9 17 20 Note: Peers included are Itaú and Bradesco (1 ) Brazilian GAAP (2) >90 days ... b
Slide 11: Sustainable initiatives for our people and local communities
10 Engaged teams are the key to our success Supporting our local community Prospera Santander Microcrédito Santander Universidades Social and environmental financing R$338MM 7.7k ~ R$2.0Bn One of the best companies to work for A new concept of training We are 93% of employees feel proud to work for
Slide 12: Positioned to capture further growth opportunities
11 3 Positioned to capture further growth opportunities
Slide 13: A unique business model with a clear-cut growth plan
12 A unique business model with a clear - cut growth plan Sustainable profitability and growth acceleration in a positive economic cycle Commercial model Focused on customer experience Further revenue growth Innovative and integrated business portfolio Leading strategies Differentiated solutions Par
Slide 14: Re-engineering the bank levers up our customer dynamics
13 Higher transaction volume Re - engineering the bank levers up our customer dynamics… Expanded retail: 65 % of our PBT vs. 42% two years ago… Opportunity to improve customers ‘ experience … …is driving profitability up faster than expected …and with room to improve further ~25% 2017 Individuals’ s
Slide 15: Santander Ecosystem and market share gains
14 Santander Ecosystem Cards 14.5% +160bps Agribusiness 7.5% +373bps Payroll Loans 10.6% +90bps Acquiring 11.4% + 250bps Consumer Finance Wholesale Banking Integrated portfolio SME’s 8.7% + 80bps Super Digital 1.0MM +484k Delivering sustainable PBT g rowth ahead Market Share (YoY) 2Q’17 (1 ) In tota
Slide 16: Strengthening our leading businesses
15 Consumer Finance Wholesale Banking 1 st in ECM in Brazil and Latam 1 st in Project Finance for the 8 th year 1 st in FX Ranking +62% 21.7% Disruptive digital platform Increase loyalty through cash management, trade, supply financing and acquiring business Double digit PBT growth in 2018 Expansion
Slide 17: Consumer Finance, SMEs, Super Digital and Latam
16 Consumer Finance Pricing models according to customer’s risk profile Pioneer in local market GCB Integrated customer coverage across Group’s geographies SMEs Development , internationalisation & personnel management Super Digital Digital experience to expand bancarisation Latam B eing part of an
Slide 18: Consistently improving RoTE
17 Consistently improving RoTE Sustainable profitability in a low real interest rates environment RoTE (%) 2014 1H’17 2018 13 14 16 ~17 2015/16 (recession) More transactions Loyal Customers Less capital intensive Wholesale / retail offer Profitable market share gains Assets and Liability Strengtheni
Slide 19: Key takeaways
18 4 Key takeaways
Slide 20: We are delivering ahead of plan on our commitments
19 People Great Place to Work bank ranking Shareholders NPL ratio RoTE C/I ratio Communities Number of scholarships 2016 - 2018 (k) Number of micro credit 2016 - 2018 (k) Customers Retail loyal customers (MM) Loyal SMEs and Corporates (MM) Digital customers (MM) Customer service quality (rank) Fee i
Slide 21: Commitment to delivering higher RoE
20 • We are committed to delivering higher RoE , powered by a clearly - defined business strategy, boosted by organic growth and disciplined capital deployment • The business has delivered a high level of resilience , consistency and growth thrust in a very tough macro environment • The recurring im
Slide 22: Thank you
21 Thank you Our purpose is to help people and businesses prosper. Our culture is based on the belief that everything we do should be SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigne
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