Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q1 2023 Earnings Presentation
33 slides from Banco Santander (brasil)'s earnings presentation, May 2023
Slide 1: Institutional Presentation 1Q23
Institutional Presentation 1 s t Q U A RT E R O F 2 0 2 3 (BR GAAP) Results Earnings Presentation Release 1Q23 1Q23
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements and Aside from other considerations stated in this presentation, the following information pertaining to Banco Santander (Brasil) S.A. (“Santander Brasil”) and factors, among others, could cause actual results to differ mate
Slide 3: CEO Mario Leão
CEO Mario Leão We started 2023 focused on strengthening our balance sheet, with emphasis on collateralized products and customers with higher credit ratings. We continue our history of transformation, advancing in the development of our growth pillars: (i) Stronger transactionality, driving franchis
Slide 4: Key aspects of the Brazilian market
Key aspects of the Brazilian market Macroeconomy and Financial System Economic activity performance(%) FX (BRL/USD) Inflation (% p.a.) Impacted by external and Slow convergence to the local uncertainties midpoint of the target range 5.4 1.0 -2.4 5.20 5.58 5.22 5.40 10.1 3.87 4.03 5.8 6.0 3.7 4.3 4.5
Slide 5: Main indicators of the Brazilian market
Main indicators of the Brazilian market Macroeconomy and Financial System Characteristics of the Brazilian market Primary balance and gross debt (% of GDP) Investment¹ (% of GDP) Brazil risk (CDS 5 years, bps) 7 100 3 90 -1 80 -5 70 -9 60 18.8 229 164 -13 50 14.6 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 J
Slide 6: Santander Brasil's consolidated footprint in the Brazilian market
Santander Brasil Profile Santander Brasil´s consolidated footprint in the Brazilian market IPO and Efficiency and Commercial transformation and profitability aquisition processes 100% aquisition of Olé Consignado Initial public 20% aquisition Aquisition of 51% aquisition Sale of of CSD offering (IPO
Slide 7: Organic and inorganic expansion, 13 acquisitions and partnerships
Santander Brasil Ecosystem Organic and inorganic expansion, 13 acquisitions and partnerships over the past two years 7 INVESTOR R E L A T I O N S ri@santander.com.br 0800 286 8484 FAQ www.santander.com.br/faq
Slide 8: We continue to advance in the developing of our growth pillars
We continue to advance in the developing of our growth pillars Business Greater transactionality Culture of expansion promotes franchise productivity and revenue growth and efficiency growth 8 INVESTOR R E L A T I O N S ri@santander.com.br 0800 286 8484 FAQ www.santander.com.br/faq
Slide 9: Monetization of our customer base
Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Customers (million) Open Finance Monetization of 3.9 million our customer base 60.1 61.6 +12% YoY active inbound consents 54.8 (+1.7x outbound) +4% 31.8 31.7 YoY +333 thousand individual 30.6 custom
Slide 10: Culture oriented towards customer satisfaction
Culture Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency oriented towards customer satisfaction Select (high-income) 834 thousand customers Revenue from loyal Select Segment represents (+36% YoY), customer is 8x higher than more than 60% of with a
Slide 11: Offer suited to each customer profile
Greater transactionality Business expansion Culture of productivity Offer and revenue growth and efficiency suited to each customer profile Individuals¹ Corporate and SMEs Santander | Private banking SCIB Corporate Investments above R$ 5 million Global Customers List Large Corporate Santander | Sele
Slide 12: Diversified business model and scale across all segments
Diversified business model Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency and scale across all segments Credit Corporate portfolio 28% Individuals Individuals Corporate and SMEs Consumer Finance 46% R$ 500.3 13% billion SMEs 13% R$ billion Balan
Slide 13: Emphasis on strengthening the portfolio
New vintages representativeness Focus on in total portfolio collateral 54% 65% 48% of collaterlized 41% individuals loan 30% (+6 p.p. QoQ) portfolio 18% (+36 p.p. YoY) (+0.4 p.p. QoQ) 0% (-1.7 p.p. YoY) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 We keep growing in collateralized products | Portfolio Auto Payroll
Slide 14: Building a better quality portfolio
Building a better quality portfolio NPL 90 | By product Credit quality Loss Absorption² (Mar/23) (Feb/23 vs Feb/22) of new vintages Evolution YoY bps Old vintages New vintages Base 100 in 1Q22 NPL 15-90 5.2% 3.9% 100 119 121 127 Overdraft Cards 95 NPL 90 3.6% 2.8% Personal +274 loans +107 1Q22 2Q22
Slide 15: Enhanced store capillarity and profitability
Enhanced store capillarity Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency and profitability Physical Commercial Prospera External presence Network channel 59%¹ 3.0 thousand stores 1.4 thousand agents 21 thousand points of sale of Brazilian (-142
Slide 16: Focus on customer service from sales to after-sales
Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Focus on customer service from sales to after-sales 24/7 Channel Digital channel Remote channel | Our APP and IB Our call center 576 million 11 million new contracts 10 million visits/month¹, inquir
Slide 17: Growth levers aligned with the Group's strategy
Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Growth levers aligned with the Group’s strategy Wealth Management & Insurance Retail Investments Net inflow of R$ 13 billion in Awards: Net inflow grows by 95% YoY 1Q23 (+203% YoY) “Best Bank to inv
Slide 18: Increased commercial activity: Cards and Real Estate
Increased commercial activity Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Cards “Consórcios” Credit Origination Market benchmark Total turnover porfolio in 1Q23 for “consórcios” R$ 34 R$ 4 awarding among R$ 82 billion R$ 55 billion billion bi
Slide 19: Agro Ecosystem
AGRO Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency ECOSYSTEM Complete Total portfolio¹ offerings and Since 2015, we 300 WayCarbon R$ 39.9 billion (+35% YoY), have grown our solutions Commodities with the ambition of reaching portfolio by Dedica
Slide 20: Consumer Finance
Business expansion Culture of productivity Consumer Greater transactionality and revenue growth and efficiency Finance Santander Loan platform for the Payroll loans Financiamentos open market Market share1 LTV² Strategy based on leveraging R$ 62 billion Origination lower risk products portfolio, wit
Slide 21: SMEs Platform for Companies
PMEs SMEs Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency We highlight our capacity to attract new customers and increase transactionality, Improving our Focused on becoming resulting in higher revenues customers' journey the benchmark Attracting
Slide 22: Wholesale Platform for Companies
PMEs WHOLESALE Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Focused on becoming We continue to strengthen our We are the only global bank the benchmark geographic expansion and to with full presence in Brazil PLAT enhance our specialized team,
Slide 23: Strengthening the ecosystem
Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Strengthening the ecosystem Return, a management and securitization of non-performing loans company, reached a Shareholders’ Equity of R$ 2.3 billion in the quarter. Thinking about the customers’ jo
Slide 24: Innovation culture and productivity
Greater transactionality Business expansion Culture of productivity and revenue growth and efficiency Innovation Productivity Benchmark in efficiency culture Transactions vs cost Cost to serve digital customers Stores with greater R$ 18.7 (-17% YoY) commercial focus 2.12 By segment Base 100 81% of t
Slide 25: Employee engagement and unique culture
Employee engagement Unique culture Our people are the greatest lever for enchanting our customers eNPS1 78 points Diversity & Inclusion Protagonism in knowledge Santander Academy 2030 79% 31% 33% 51% Encouraging the protagonism of our employees with training Of employees participated in focused on t
Slide 26: Committed to the environment
Committed to the environment, we promote sustainable businesses, and we commit to being net zero by 2050 Environmental We support the transition to a CBIOS Net Zero low-carbon economy through innovative products and solutions Participation in the Carbon neutral since 2010 market creation in 2020 We
Slide 27: Supporting the development of the country
Social For over 20 years we have been contributing to building a more inclusive society, with access to education and financial products PROSPERA AMIGO DE VALOR MICROFINANCE 21st edition of the program Financial inclusion Since 2002, the program has benefited more than 1.6 million children and R$ 2.
Slide 28: Corporate Governance
Corporate Governance ESG Management best practices ESG as a metric for Diverse and 30% of the members are women1 Structure evaluating executive independent Board performance of Directors 50% of the members are independent1 Shareholders Meeting Independent Non-independent Independent Non-independent
Slide 29: CFO Gustavo Alejo
CFO Gustavo Alejo We remain focused on strengthening the balance sheet, building a higher quality portfolio, with our strategy of expanding into products with guarantees, achieving 65% of collateralized individuals’ loan portfolio. The new vintages, originating from Jan/22, continue to perform well
Slide 30: Results 1Q23
Results (R$ million) 1Q23 1Q22 1Q23 x 1Q22 4Q22 1Q23 x 4Q22 Net Interest Income 13,145 13,938 -5.7% 12,517 5.0% Fees 4,699 4,617 1.8% 5,075 -7.4% Total Revenues 17,844 18,555 -3.8% 17,591 1.4% Allowance for Loan Losses (Net of balance sheet strengthening)¹ -6,765 -4,612 46.7% -7,364 -8.1% General Ex
Slide 31: Financial Highlights: Net Interest Income and Fees
More information in Earnings Release 1Q23 Results Financial Highlights Fees 1Q23 Cards Credit Operations Net R$ 1.4 +1.7% R$ 0.4 +16.4% Interest 1Q23 billion YoY billion YoY Income Customer NII Current Account Collection Services R$ 14.3 +3.3% R$ 1.0 +3.7% R$ 0.3 -9.4% billion YoY billion YoY billio
Slide 32: Financial Highlights: Portfolio quality
More information in Earnings Release Portfolio quality 1Q23 Financial Highlights NPL under control, with slight deterioration, as expected. NPL Ratios Allowance for loan losses 15 - 90 days (R$ million) and cost of risk ¹ 6.5% 4.5% 5.2% 4.7% 6.3% 4.3% 6.0% 6.1% 3.5% 5.9% 5.9% 5.2% ¹ 4.5% 4.5% 4.4% 4
Slide 33: Simple | Personal | Fair
Investor Relations (Brazil) Av. Presidente Juscelino Kubitschek, 2,235, 26th floor São Paulo | SP | Brazil | 04543-011 Phone: 0800 286 8484 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
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