Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q4 2022 Earnings Presentation
20 slides from Banco Santander (brasil)'s earnings presentation, Feb 3, 2023
Slide 1: Results 4th Quarter of 2022 (BR GAAP)
Results 4 t h Q U A RT E R O F 2 0 2 2 (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 4Q22 Results Takeaways Update Highlights 3
Slide 4: Key messages
Key messages: 2022: 2023: Anticipation capacity Credit selectiveness in Growing New vintages Market margin from 4T21 Individuals leads to revenue businesses status with cost of credit sensitivity and pressure, given the mix already under control selectivity in Individuals Through the cycle credit pr
Slide 5: Anticipation capacity and performance compatible to circumstances
Anticipation capacity and performance compatible to circumstances 2022 Cost of risk Effectiveness of risk models Focus on collateralized 12 months NPL 90 (%) products Average among private-sector peers +30 p.p QoQ +87 p.p YoY 65% Portfolio of collateralized 3.6 loans to individuals 3.1 3.3 (+0.3 p.p
Slide 6: We continue to develop our growth pillars
We continue to develop our growth pillars Based on the following assumptions: Controlled and Franchise growth, Enhanced culture of Business expansion predictable with increased productivity and centered on the cost of credit transactionality efficiency experience of our customers 6
Slide 7: Portfolio quality supported by our risk models' assertiveness
Controlled cost Franchise Culture of productivity Business of credit growth and efficiency expansion Credit quality Over 30 M3¹ Old vintages New vintages Personal Loans Auto loans to Cards individuals 6.4 NPL 30 6.7% 4.5% Sep22 5.3 4.6 vs Dec21 4.9 4.2 NPL 90 3.8% 2.3% 3.0 -220 bps 2.8 -250 bps 3.1
Slide 8: Customer-centric strategy
Controlled Franchise Culture of productivity Business cost of credit growth and efficiency expansion Customer-centric strategy Customers (million) Acquisition Open Finance ¹ +8.9 million customers in the year, 3.4 million customers/year, 60.1 +12% 67% originated from digital channels with active inb
Slide 9: Modernization and integration of distribution channels
Controlled Franchise Culture of productivity Business cost of credit growth and efficiency expansion Modernization and integration of distribution channels Omni-channel approach, with a focus on sales and after-sales Physical channel External channel Digital channel Remote channel 13 million 15.6 th
Slide 10: State-of-the-art technology, with continuous investment in innovation
State-of-the-art technology, with Controlled cost of credit Franchise Crescimento growth da franquia Culture of productivity and efficiency Business expansion continuous investment in innovation Productivity culture Solid and technological Market benchmark in efficiency culture Transactions vs. cost
Slide 11: Ambitious growth to boost profitability
Ambitious growth Controlled cost Franchise Crescimento Culture of productivity Business of credit growth da franquia and efficiency expansion to boost profitability Investments Cards Insurance Payroll loans “Consórcios” Record result and R$ 10.8 billion in premiums turnover in the year in 2022 (+28%
Slide 12: Strategic businesses aligned with our ambition
Strategic businesses Controlled cost Franchise Crescimento Culture of productivity Business of credit growth da franquia and efficiency expansion aligned with our ambition Companies Agribusiness Consumer Finance Best year in history: More customers Higher profitability R$ 37.5 billion Market share R
Slide 13: Agenda
Agenda Strategy 4Q22 Results Takeaways Update Highlights 13
Slide 14: Results
Results (R$ million) 2022 2022 x 2021 4Q22 4Q22 x 3Q22 Net Interest Income 51,827 -6.8% 12,517 -0.6% Fees 19,308 2.3% 5,075 7.2% Total Revenues 71,135 -4.5% 17,591 1.5% Allowance for Loan Losses1 -23,930 72.7% -7,364 18.6% General Expenses -22,706 7.0% -6,049 6.3% Others -9,094 -36.9% -2,603 25.2% P
Slide 15: NII
NII Customer NII expands on annual basis. (R$ million) 2022 2022 x 2021 4Q22 4Q22 x 3Q22 Market NII impacted by Customers 56,067 22.4% 13,781 -2.6% negative sensitivity to upward Product NII 52,965 17.2% 13,004 -1.9% yield curve movements Volume 485,094 7.9% 505,557 3.1% Spread (p.a.) 10.9% 0.87 p.p
Slide 16: Portfolio, Capital, Liquidity/funding
Portfolio (R$ billion) +6% Growth in the year with greater selectiveness in +1% Individuals and Wholesale (R$ million) Dec/22 Dec/22 x Dec/22 x 462.7 484.3 489.7 Dec/21 Sep/22 13.3% 13.3% 13.5% Individuals 226,302 8.4% 2.7% 27.2% 27.1% 26.4% 65% Consumer finance 67,970 1.8% 0.1% Portfolio Dec/22 14.
Slide 17: Fees and Costs
Fees Costs Greater transactionality mitigates the impact rise below the collective bargaining of more selective lending agreement and in line with inflation (R$ million) 2022 2022 x 2021 4Q22 4Q22 x 3Q22 Cards 5,510 10.6% 1,438 7.2% General expenses Current account 3,828 0.4% 948 -0.1% (R$ million)
Slide 18: Portfolio quality
Portfolio quality Controlled indicators. Considers provisioning for the subsequent Wholesale segment event NPL Ratios Allowance for loan losses (R$ million) and cost of credit (%) 5.2% 15 - 90 days 3.5% 4.3% 4.5% 6.3% 2.8% 5.9% 5.9% 6.1% CC 3 months 4.4% 5.2% 5.0% 3.4% 3.8% CC 12 months 2.7% 3.0% 4.
Slide 19: Agenda
Agenda Strategic 4Q22 Results Takeaways Update Highlights 19
Slide 20: Takeaways
Takeaways Our 2022 How we start 2023 • Performance compatible with management Context Levers expectations at the end of 2021 • Credit selectivity remains in place • Enhanced balance sheet quality • Margins pressured by negative sensitivity and soliditness to yield curve and selective lending • Strat
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