Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q1 2023 Earnings Presentation
22 slides from Banco Santander (brasil)'s earnings presentation, April 2023
Slide 1: Results 1st Quarter of 2023 (BR GAAP)
Results 1 s t Q U A RT E R O F 2 0 2 3 (BR GAAP)
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: Agenda
Agenda Strategy 1Q23 Results Takeaways Update Highlights 3
Slide 4: Key messages
Key messages: Quarter summary 2023 Outlook Relevant one-off (i) Expansion of the Selective portfolio result enables businesses most suitable growth focused on balance sheet to prevailing market strategic business strengthening conditions Portfolio quality (ii) Focus on customer continues to improve;
Slide 5: 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 Emphasis on
Slide 6: 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% Overdraft Cards NPL 90 3.6% 2.8% 119 121 127 100 95 +274 Personal +107 loans +117 1Q22
Slide 7: 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 7
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: Evolution of our strategic businesses
Evolution of our Greater transactionality Business expansion and revenue growth Culture of productivity and efficiency strategic businesses Companies Cards Consumer Finance More customers Greater loyalty 1.3 million R$ 204 billion Consumer Finance Payroll loans active customers portfolio R$ 82 billi
Slide 14: 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 15: Agenda
Agenda Strategy 1Q23 Results Takeaways Update Highlights 15
Slide 16: 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 17: NII
NII Highlight the customer NII growth. (R$ million) 1Q23 1Q23 x 1Q22 1Q23 x 4Q22 Market NII sensitivity remains, Customers 14,315 3.3% 3.9% with downward trend Product NII 13,390 1.7% 3.0% throughout the year. Volume 514,065 9.1% 1.7% Spread (p.a.) 10.6% -0.76 p.p. 0.36 p.p. Market activities ( 1,17
Slide 18: Portfolio, Liquidity/funding, Capital
(R$ billion) Portfolio +10% Selective growth in the year. +2% (R$ million) Mar/23 Mar/23 x Mar/23 x 489.7 500.3 Mar/22 Dec/22 455.2 Individuals 228,735 8.4% 1.1% 12.9% 12.8% 12.5% 65% 27.1% 28.3% Portfolio in Mar/23 Consumer finance 67,133 1.4% -1.2% 26.2% (+0.4 p.p. QoQ) 14.5% 13.9% 13.4% (-1.7 p.p
Slide 19: Fees and Costs
Fees Costs Seasonality effect in the quarter. Declining by 2% in the quarter, despite inflation. (R$ million) 1Q23 1Q23 x 1Q22 1Q23 x 4Q22 Cards 1,351 1.7% -6.1% General Expenses Current account 993 3.7% 4.8% Insurance 756 1.6% -32.6% (R$ million) 1Q23 1Q23 x 1Q22 1Q23 x 4Q22 Asset management and 34
Slide 20: Portfolio quality
Portfolio quality 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% 4.7% 4.2% 4.2% 4.3% 3.8% 4.1% 3.0% 3.4% 3.6% Wholesale 11,000 1.
Slide 21: Agenda
Agenda Strategic 1Q23 Results Takeaways Update Highlights 21
Slide 22: Takeaways
Quarter highlights • Performance remains in line with management expectations • Good volume growth in selected businesses • Portfolio keeps improving with new vintages • Relevant balance sheet reinforcement, derived from one-off result • Effective cost management enables investment in the business T
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