Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3

Banco Santander (brasil) — Q4 2015 Earnings Presentation

34 slides from Banco Santander (brasil)'s earnings presentation, Jan 27, 2016

  1. Slide 1: 4th quarter 2015 (BR GAAP) Results

    Investor Relations | Sao Paulo, January 27, 2016 4th quarter 2015 (BR GAAP) Results Simple | Personal | Fair

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation may contain certain forward-looking statements and information retating to Banco Santander (Brasil) S.A. (“Santander Brazil") and its subsidiaries that reflect the current views and/or expectations of Santander Brazil and its management with respect to its performance, b

  3. Slide 3: Table of Contents

    TABLE OF CONTENTS Key messages Results - Santander Group Highlights - 2015 results 2015 performance | & Santander 3

  4. Slide 4: Key Messages: The only international bank with scale in Brazil

    KEY MESSAGES 7 The only international bank with scale in Brazil 4 a Y Focus on digitalization Customer u n ve 5 F 9 4) orientation Simpler, swifter and differentiated services Y Quality of services improvement reflected in the ranking of complaints v Wholesale banking: first in project finance advis

  5. Slide 5: Table of Contents

    TABLE OF CONTENTS Results - Santander Group 2015 performance

  6. Slide 6: Results - Santander Group

    RESULTS - SANTANDER GROUP Brazil provides an important contribution to the Group's results | Ordinary attributable profit (Euros million) Ordinary attributable profit geographic segmentation ~ 42.6% —> othe © jentina , Other a ara Europe Chile 2% 5,966 5,816 UK 23% Brazil 19% r : 1 Mexico SCF 2014 2

  7. Slide 7: Table of Contents

    TABLE OF CONTENTS Highlights - 2015 results 2015 performance & Santander

  8. Slide 8: Macroeconomic Scenario

    rc MACROECONOMIC SCENARIO 5 The economic adjustment process will be longer than initially expecte dy Interest rate - Selic (%) ( GDP (YoY growth %) } 14.25 14.64 08 11.75 12.75 o4 _ 3.8 -3.0 2014 2015(e) 2016 (e)_——-2017(e) 2014 2015 2016(e) 2017 (e) Inflation (IPCA %) } Exchange rate (R$ / US$) 10.

  9. Slide 9: 2015 Performance

    TABLE OF CONTENTS 2015 performance & Santander

  10. Slide 10: Highlights - 2015 Results

    HIGHLIGHTS - 2015 RESULTS Net profit has reached R$ 6.6 billion, up 13.2% Net interest income +7.2% and commissions +7.3% Aleader in cost control, with costs 2015 increasing well below inflation Evolution Credit portfolio up 6.6% and customer funding +14.4% Delinquency >90d remains stable at 3.2% St

  11. Slide 11: Table of Contents

    TABLE OF CONTENTS Key messages Results - Santander Group Macroeconomic scenario Highlights - 2015 results 2015 performance & Santander

  12. Slide 12: 2015 Performance: Higher results leading to increased profitability

    2015 PERFORMANCE Higher results leading to increased profitability in 2015 L | | Net profit (R$ million) ) 5.7% > 9,781 4,832 3,157 i 5.9% > ae 3,157 a [13.2%] 6,624 1,708 5,850 1,633 1,675 ’ ” : i i i i; 4Q14 1015 2015 3Q15 4Q15 2014 2015 “ Extraordinary events 2Q15 & Santander 12

  13. Slide 13: 2015 Performance: Managerial profit

    2015 PERFORMANCE Managerial profit (R$ million) 2015 Net interest income 29,636 Fee and commission income 11,867 Total revenues 41,503 Allowance for loan losses (9,661) General expenses (17,323) Others (6,627) Profit before taxes 7,892 Taxes and minority interest (1,268) Managerial net profit 6,624

  14. Slide 14: Net interest income up, with spreads stable

    2015 PERFORMANCE Net interest income up, with spreads stable in the last quarters J | Net interest income breakdown (R$ million) I 5.7% > | Credit and deposit spread (%) {3.2% 72%} a 8.6% 84% 8.5% 8.5% 8.5% 740 7,631 27,649 oe __e __. e083 71407 7,384 4,707 1,535 5,259 1,522 6 1.0% 1.1% 1.1% 1.1% 1.

  15. Slide 15: Volumes reflect weak macro backdrop; expanded portfolio

    2015 PERFORMANCE T Volumes reflect the weak macro backdrop, however client’s base 71 L envolved positively _I Expanded portfolio (R$ bi var %, RS million Dec-15 Dec-14 YoY QoQ 6.6% > Individuals 84,805 78,304 8.3% = 2.4% {23% b> ‘Consumer finance 33,931 36,756 77% 04% 13% 331.9 330.9 SMEs 31,572 31,

  16. Slide 16: Solid growth in funding

    2015 PERFORMANCE. r L Total funding (R$ billion) Solid growth in funding J f 14.2% > Var. % 10.7% > RS million De Dect4 YoY QoQ 5123. 5159 Demand deposits + savings deposits 51,683 53,988 4.3% 4.4% 493.8 4516 469.3 ‘Time deposits + debentures* 176,754 160,143 10.4% 0.1% ‘Treasury notes (letras finan

  17. Slide 17: Good performance in transactionality

    2015 PERFORMANCE Good performance in transactionality: current account, lending ~ | | l operations and collection Commission (R$ million) Var. % R$ million 2015 2014 YoY QoQ 78% > Asset management 1,028 1,008 1.9% 85% i 10.0% -—> Current account 2,052 1,839 11.6% 4.9% 3,210 Lending operations 1,380

  18. Slide 18: Credit quality and coverage at comfortable levels

    2015 PERFORMANCE L Credit quality and coverage at comfortable levels 4 | | NPL (from 15 to 90 days) } ( NPL (over 90 days) } [ Coverage ratio (over 90 days) } 68% 68% 5 7% 64% ——o— 6.3% ped — e—. 180.0% 185.1% 48% 46% 47% 43% 4.4% _e 3.3% % 30% 32% 32% 32 21% 20% 72% 22% 21% o—e —e Dec.14 Mar.15 Jun

  19. Slide 19: Moderate increase in provisions

    2015 PERFORMANCE j_ Moderate increase in provisions given the challenging environment {Allowance for loan losses (R$ million) and Cost of credit (%) } , 3.6% 3.5% am 29% a 3% " o—__ 3» 29.8% ~ r 2.9% > 9,392 9,661 i 12.8% ~ 2,762 2,128 112 2,338 2,448 11,909 12,007 2,795 2,568 2,967 2,975 3,497 667)

  20. Slide 20: Discipline and leadership in cost control

    2015 PERFORMANCE Discipline and leadership in cost control Expenses (R$ million) 4 | 43% > Var. % 8.0% |—> RS million 2015 2014 = YoY ~— QoQ 4,632 General expenses 15,431 14,853 3.9% 8.9% 440 ggg 4900 yng 88 502 Depreciation and 1,892 1,896 0.2% 0.5% amortization Total 17,323 16,749 34% 8.0% 4Q14 10

  21. Slide 21: In 2015 we improved efficiency and profitability

    2015 PERFORMANCE In 2015 we improved efficiency and profitability Efficiency ratio (%) ) f Recurrence (%) ) 50.8% 49.8% 66.0% 68.5% 2014 2015 2014 2015 ROAA (%) ROAE (%) a 12.8% 12% 11% 2014 2015 2014 2015 > Santander

  22. Slide 22: Balance sheet strength and improving liquidity position

    2015 PERFORMANCE 7 Balance sheet strength and improving liquidity position 4 | Loan to deposit' (%) BIS ratio (%) 17.5% 15.8% 15.7% 97.5% 91.1% 90.6% 16.1% 14.4% 14.3% Dec.14 Sep.15, Dec.15 Dec.14 Sep.15 Dec.15 Tier | iS Tier Il & Santander “Total loan portfolio / funding from clients,

  23. Slide 23: Final Remarks

    FINAL REMARKS v_ Focused on profitable growth, taking advantage of our alternative positioning to the other private banks; v__ Improved service offering and quality for customers, impacting the Retail results; v_ The only bank with an integrated Retail-Wholesale platform, geared towards the growth o

  24. Slide 24: Giving Back to Society

    ... GIVING BACK TO SOCIETY

  25. Slide 25: Giving Back to Society: Santander Universities

    . GIVING BACK TO SOCIETY Santander Universities Over R$ 4 billion Over R$ 210 million invested since 1996 since 2011 1,200 academic Over 450 academic collaboration agreements | | collaboration in 20 countries agreements Santander is the company that exsaraany Over 6,000 students invests the most in

  26. Slide 26: Giving Back to Society: Amigo de Valor

    .. GIVING BACK TO SOCIETY Amigo de Valor One of Brazil's largest social mobilization and fund raising programs to support children and adolescents. 42 municipalities served 160 professionals trained Attended by over 26,500 employees and interns and more than 2,600 customers Amount raised: R$ 8.4 mil

  27. Slide 27: Annexes

    r “T ANNEXES

  28. Slide 28: Results: Managerial financial statement

    RESULTS Managerial financial statement (R$ million) Net interest income Allowance for loan losses Net interest income after loan losses Fee and commission income General expenses Personnel expenses + profit sharing Administrative expenses Tax expenses Investments in Affliates and Subsidiaries Other

  29. Slide 29: Quarterly Results

    QUARTERLY RESULTS [Managerial financial statement (RS mili Net interest income Allowance for loan losses Net interest income after loan losses Fee and commission income General expenses Personnel expenses + profit sharing ‘Administrative expenses Tax expenses Investments in Affliates and Subsidiarie

  30. Slide 30: Balance Sheet - Assets

    BALANCE SHEET - ASSETS Current asset and long-term assets 572,730 596,216 591,269 «689,054 663,809 Cash and cash equivalents 5,075 4,964 5,525 6,928 6,864 Interbank investments 39,809 48,736 56,850 59,264 55,810 ‘Securities and derivative financial instrument 132,271 131,493 145,900 154,262 142,892

  31. Slide 31: Balance Sheet - Liabilities and Equity

    BALANCE SHEET — LIABILITIES AND EQUITY Liabilities and equity (R$ million) Current liabilities and long-term liabilities Deposits Demand deposits Saving deposits Interbank deposits Time deposits Money market funding Funds from acceptance and issuance of securities Interbank accounts Interbranch acco

  32. Slide 32: Balance Sheet - Loan Portfolio

    BALANCE SHEET — LOAN PORTFOLIO RS million De Dec-14 Var. YoY Sep-15 Var. QoQ Individuals 84,805 78,304 «8.3% «= 82,786 24% Leasing / auto loans (*) 2,481 3,229 23.1% 2714 8.6% Credit card 19,134 18,341 4.3% «©— 17,453 (9.6% Payroll loans 14,656 11,342 29.2% «= 13,886 5.5% Mortgage 25,932 21,318 21.6

  33. Slide 33: Santander Acquiring

    SANTANDER ACQUIRING In 2015: Q Revenues increases 36% in the last 12 months. Santander Acquiring 2015 vs. 2014 CREDIT Revenues (R$ million) = 38,641 = 53,744 = 39% Transactions (million) v¥ 280.7 v 381.9 v¥ 36% DEBIT Revenues (R$ million) = 22,281 = 29,321 = 32% Transactions (million) v 354.4 ¥ 436.

  34. Slide 34: Signature

    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 undersigned, thereto duly authorized. Date: January 27, 2016 Banco Santander (Brasil) S.A. By: / S / Amancio Acurcio Gouveia Amancio Acurcio Gou

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