Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Q1 2021 Earnings Presentation
44 slides from Banco Santander (brasil)'s earnings presentation, May 2021
Slide 1: Institutional Presentation 1st Quarter of 2021
Institutional Presentation 1st QUARTER OF 2021
Slide 2: Disclaimer
DISCLAIMER This presentation may contain certain forward-looking statements and In addition to factors identified elsewhere in this presentation, the information pertaining to Banco Santander (Brasil) S.A. (“Santander following factors, among others, may cause actual results to differ Brasil”) and i
Slide 3: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 4: Key Aspects of the Brazilian Market
KEY ASPECTS OF THE BRAZILIAN MARKET ECONOMIC ACTIVITY PERFORMANCE (%) GDP1 (% p.a.) 20 GRADUAL REBOUND -0.64 OF THE ECONOMY -5.14 10 0.25 HAMPERED BY THE 0 -2.02 COVID-19 GLOBAL Mar-16 Mar-21 -10 CRISIS -3.91 -20 SELIC TARGET 14.25 -30 -40 (% p.a.) 3.50 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 May-
Slide 5: Characteristics of the Brazilian Market
CHARACTERISTICS OF THE LAYING THE GROUNDWORK FOR BRAZILIAN MARKET THE ECONOMIC REBOUND FIGHT THE COVID-19 PANDEMIC IN BRAZIL BY PRIMARY BALANCE AND GROSS DEBT (% of GDP) BOOSTING THE VACCINATION CAMPAIGN 5 100 TAX REFORM IN ORDER TO SIMPLIFY TAXES AND 2 90 LEVERAGE PRODUCTIVITY -1 80 ADMINISTRATIVE
Slide 6: Brazilian Financial System Profile
SOLID NATIONAL FINANCIAL SYSTEM TOTAL LOAN MAR-21 TOTAL LOAN SHARE BRAZILIAN MARKET 55% PROFILE 57% CONCENTRATED R$ 4,105Bi 43% 45% +2.1% QoQ 5 LARGEST BANKS Mar-16 Mar-21 Public banks Private banks 72% 79% Loans¹ Customers Deposits¹ TOTAL FUNDING 20.3% 18.7% 18.8% MAR-21 17.0% 11.1% 10.0% SOLID R$
Slide 7: Brazilian Financial System Profile
0 60 90 30 120 1% 2% 3% 4% 5% Mar-16 Dec-16 Jun-16 Mar-17 Sep-16 Dec-16 Jun-17 Mar-17 Sep-17 Jun-17 Dec-17 Total Sep-17 Mar-18 Dec-17 Jun-18 Mar-18 Business Confidence Index Sep-18 CONFIDENCE INDEX (POINTS) Jun-18 Dec-18 Sep-18 Dec-18 Mar-19 Mar-19 Jun-19 Individuals Jun-19 Sources: Brazilian Centra
Slide 8: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 9: Santander Brasil's Consolidated Footprint in the Brazilian Market
SANTANDER BRASIL’S CONSOLIDATED FOOTPRINT IN THE BRAZILIAN MARKET PROFITABILITY CONSOLIDATION OF INTEGRATION OF COMMERCIAL AMONG THE NPS BEST IN THE A NEW WAY OF DOING BUSINESS DIFFERENT BRANDS PLATFORMS TRANSFORMATION INDUSTRY 1970 | 1998 2000 2007 2009 2014 2016 2017 2018 2019 2020 2021 SANTANDER
Slide 10: Bank with Strong Presence in Brazil
BANK WITH STRONG PRESENCE IN BRAZIL MAR-21 95.1% ~ R$ 148Bi LOAN PORTFOLIO/ FUNDING MARKET CAPITALIZATION FROM CUSTOMERS NORTHEAST • OPERATING IN ALL • 14.3% OF GDP² BRAZILIAN STATES • 9.91% FREE FLOAT 28.4MM • 9.5% OF SANTANDER BRANCHES ACTIVE CUSTOMERS MID-WEST + • 2 AGRI BRANCHES • 44.8K EMPLOYEE
Slide 11: Corporate Governance
CORPORATE GOVERNANCE ABOUT THE BOARD OF DIRECTORS (“BOD”) STRUCTURE • FIVE OF THE NINE MEMBERS OF THE BOARD OF DIRECTORS ARE INDEPENDENT, SHAREHOLDERS MEETING INCLUDING THE CHAIRMAN • THE POSITIONS OF CHAIRMAN OF THE BOARD OF DIRECTORS AND CHIEF FISCAL EXECUTIVE OFFICER MAY NOT BE HELD BY THE SAME P
Slide 12: Solid Risk Culture
SOLID RISK CULTURE RISKS ARE CALIBRATED IN THE GROUP, ENABLING BUSINESS CONTINUITY GROUP AND PREDICTABILITY IN THE FACE OF DIVERSE HISTORY MANAGEMENT AND CONTROL OF THE ACTUAL LOCAL RISK PROFILE ENSURE THE MODEL’S ROBUSTNESS GLOBAL RISK CONTROL PLATFORMS CREDIT 1st 2nd 3rd MODEL RISK LINE OF DEFENSE
Slide 13: We Are Part of a Large Group
WE ARE PART OF A LARGE GROUP DIVERSIFIED PRESENCE ACROSS THREE REGIONS ALLOWS FOR BETTER AND FASTER EXECUTION UNDERLYING ATTRIBUTABLE PROFIT DISTRIBUTION ASSIGNED BY GEOGRAPHIC REGION | 1Q21 SUBSIDIARY MODEL WITH LIQUIDITY AND CAPITAL AUTONOMY LIMITS THE POSSIBILITY OF CONTAGION BETWEEN GROUP UNITS,
Slide 14: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 15: Our Strategic Priorities Are Based on Four Pillars
OUR STRATEGIC PRIORITIES ARE BASED ON OUR OUR PEOPLE CUSTOMERS OUR OUR SHAREHOLDERS COMMUNITIES FOUR PILLARS STRONG CORPORATE PREFERENCE RECURRENCE AND CAPITAL BUILDING A SUSTAINABLE CULTURE AND LOYALTY DISCIPLINE BUSINESS ENGAGED PEOPLE CUSTOMER-FOCUSED CREATING SHAREHOLDER RESPONSIBLE BANKING VALU
Slide 16: A Culture That Sets Us Apart from the Competition
A CULTURE OUR PEOPLE THAT SETS US APART FROM THE COMPETITION QUICK ADJUSTMENT AND FOSTERING PLAYING A LEADING SUPPORT TO OUR PEOPLE DIVERSITY ROLE IN KNOWLEDGE FAST AND TRANSPARENT COMUNICATION SANTANDER CLOSE LEADERSHIP ACADEMY “CAFÉ COM RIAL” 42k 29.6% 25.8% 2.6k >50% EMPLOYEES 13th SALARY OF LEAD
Slide 17: Customer-Focused Business Model
CUSTOMER-FOCUSED BUSINESS MODEL OUR CUSTOMERS SIMPLIFYING PROCESSES AND SERVICES RELEASING + TIME TO DO BUSINESS PIONEERS IN PUBLICLY APPROPRIATE OFFERS FOR DISCLOSING THE NPS CUSTOMER PROFILE • 61 POINTS (+3.2 POINTS 1 • 34% OF THE CUSTOMER YoY) INCREASE BASE VISITS THE REAL CUSTOMER SERVICE SPECIA
Slide 18: Digital Customers
DIGITAL CUSTOMERS OUR CUSTOMERS STRONG DISTRIBUTION CAPACITY IN OUR CHANNELS CAPTURING CUSTOMERS MAKING IT +8MM IN FINANCIAL PRODUCTS PROFITABLE AND SERVICES PURCHASED THROUGH DIGITAL CHANNELS IN 1Q21 ACCOUNT ACQUISITION CARD ACQUISITION +4X SALES RECORD MAR-19 MAR-21 +3X MAR-21 VS. SHARE OF TOTAL O
Slide 19: Ability to Deliver Profitable Growth
ABILITY TO DELIVER PROFITABLE GROWTH OUR CUSTOMERS REDESIGNED WITH SCALABILITY AND STRONGER LOYALTY ENGAGEMENT MARCH-2021 POTENTIAL RETAIL 20.4MM UP TO 2 PRODUCTS 14.7MM +48MM CUSTOMERS FROM 3 TO 5 PRODUCTS 6 OR MORE 7.1MM PRODUCTS 6.4MM NPS HIGH LEVELS REVENUE PER CUSTOMER/ +22x 61 +3.2 MONTH POINT
Slide 20: Creating Shareholder Value
CREATING SHAREHOLDER VALUE OUR SHAREHOLDERS ROBUST ECOSYSTEM SOLID BALANCE OPERATIONAL AS A VALUE SHEET AND ASSET EXCELLENCE BY GENERATION TOOL QUALITY INDUSTRIALIZING THE VALUE CHAIN • CROSS-SELL PREDICTIVE RISK MODELS THAT ENABLE FAST ADJUSTMENT TO • LOWER UNIT COST PER • NEW INITIATIVES SERVICE D
Slide 21: Always Looking Toward the Development of Our Country
ALWAYS LOOKING TOWARD THE DEVELOPMENT OF OUR COUNTRY OUR COMMUNITIES SUSTAINABLE BUSINESSES 4% SOCIAL INITIATIVES 3% 17% OTHERMICROFINANCE SANTANDER NET ZERO AMBITION ENERGY PROJECT ACHIEVE NET ZERO CARBON EMISSIONS FINANCE 2 THROUGHOUT THE GROUP BY 2050¹ “BRASIL SEM FOME” CAMPAIGN START OF SANTANDE
Slide 22: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 23: Scalable and Diversified Business Model Across All Operating Units
SCALABLE AND DIVERSIFIED BUSINESS MODEL ACROSS ALL OPERATING UNITS COMMERCIAL BANKING CONSUMER FINANCE WHOLESALE BANKING “SANTANDER INDIVIDUALS SMEs CORPORATE SCIB FINANCIAMENTOS” B R O A D P O RT F O L I O O F P R O D U C T S A N D S E R V I C E S | S A N TA N D E R E C O S Y S T E M TOTAL CREDIT P
Slide 24: Active Customers Served by Our Business
28.4MM ACTIVE CUSTOMERS S E R V E D B Y O U R BUSINESS PRODUCT PORTFOLIO COMPLETE SERVICE INFRASTRUCTURE CREDIT AND DEBIT 7.2MM CARDS REMOTE Loyal customers PAYROLL LOANS +16% YoY (PAYROLL LOANS) PHYSICAL • ACCOUNTS FOR 8% OF CONSUMER FINANCE TOTAL SALES² SALARY AND SAVINGS • ACCOUNTS FOR • 4.1MM CA
Slide 25: Segmentation Tailored to the Reality of Our Customers
SEGMENTATION TAILORED TO THE REALITY OF OUR CUSTOMERS INDIVIDUAL SEGMENTATION SANTANDER | PRIVATE BANKING INVESTMENTS ABOVE R$ 5 MM SANTANDER | SELECT MONTHLY INCOME ABOVE R$ 10,000¹ OR R$ 300,000 IN INVESTMENTS SANTANDER | VAN GOGH MONTHLY INCOME FROM R$ 4,000 TO R$ 10,000 OR R$ 40,000 IN INVESTMEN
Slide 26: SMEs
ENCOURAGING ENTREPRENEURSHIP IN THE COUNTRY SMEs POSITIONING SERVICE MODEL EMPRESAS FULL BANKING OFFER NÚCLEO • SPECIALIZED UP TO • FOCUS ON LONG-TERM & CASH SUPPORT R$200M IN MANAGEMENT PRODUCTS REVENUE DIGITAL • FULL BANKING OFFER OF NEW EMPRESAS POLO DEDICATED SPACE AND CUSTOMERS ~33% • FOCUS ON
Slide 27: Leadership in Wholesale
LEADERSHIP IN WHOLESALE CONSOLIDATES OUR POSITION AS ONE OF THE BEST BANKS FOR CORPORATE CUSTOMERS, WITH STRONG EBT GROWTH OF 60% IN THE YEAR UNIQUENESS OF A GLOBAL BANK GO-TO BANK FOR INFRASTRUCTURE TRADE, EXCHANGE AND MULTINATIONAL LEADERSHIP IN PROJECT OVER 14 GW PRESENCE IN 16 COUNTRIES FINANCIN
Slide 28: Core Business
CORE BUSINESS ABILITY TO INNOVATE FUELED BY DEEP CUSTOMER KNOWLEDGE CARDS REAL ESTATE NEW LEVEL OF 1Q21 RECORD CUSTOMER ORIGINATION/MONTH TOTAL TURNOVER ACQUISITION • DIGITAL JOURNEY TO OBTAIN 79% MORTGAGE LOANS ~R$ 1.9Bi R$ 66Bi +1.8x YoY SHARE OF ACCOUNT HOLDERS IN NEW +122% YoY CUSTOMER +14% YoY
Slide 29: Getnet
GETNET STRATEGY OF CONSOLIDATING A GLOBAL PAYMENTS PLATFORM 1Q20 1Q21 YoY TOTAL MARKET SHARE 769K 875K 14% >15% ACTIVE BASE +4X HIGHER 3% TPV R$ 59Bi R$ 87Bi 47% THAN THE 2013 1Q21 MARKET¹ RECEIVABLES E-COMMERCE TPV/TOTAL R$ 15Bi R$ 25Bi 64% 25% PREPAYMENT COST PER 14% TRANSACTION R$ 0.31 R$ 0.26 -1
Slide 30: Initiatives That Boost Our Growth
INITIATIVES THAT BOOST OUR GROWTH DISRUPTIVE IN SOLUTION OFFERING 1Q21 LOANS IN THE FULLY-DIGITAL INSURANCE OPEN MARKET PENETRATION +3MM CUSTOMERS R$ 1Bi 0.6% PORTFOLIO MARKET SHARE 15% +R$ 42MM BUSINESS COMBINATION IN SANTANDER IN PREMIUMS CONSUMER FINANCE TORO’S EXTENSIVE Pi’S PROFOUND KNOWLEDGE O
Slide 31: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 32: Results
RESULTS (R$ million) 1Q21 1Q20 1Q21 x 1Q20 4Q20 1Q21 x 4Q20 Net Interest Income 13,422 12,655 6.1% 12,396 8.3% Fees 4,852 4,482 8.2% 5,133 -5.5% Total Revenues 18,274 17,138 6.6% 17,529 4.3% Allowance for Loan Losses -3,161 -3,424 -7.7% -2,883 9.7% General Expenses -5,266 -5,293 -0.5% -5,552 -5.2% O
Slide 33: NII
NII CUSTOMER AND MARKET MARGINS GROW BOTH QUARTERLY AND ANNUALLY NET INTEREST INCOME (R$ million) 11.3% 9.8% 10.6% SPREADS 1Q21 x 1Q21 x (R$ million) 1Q21 6% 1Q20 4Q20 8% Customers 11,297 4.3% 6.1% 13,422 Product NII 11,154 9.0% 8.5% 12,655 12,396 Volume 426,174 17.2% 2.4% 2,125 MARKET 1,823 1,751 N
Slide 34: Portfolio
PORTFOLIO POSITIVE PERFORMANCE ACROSS ALL SEGMENTS CREDIT PORTFOLIO (R$ billion) Mar/ 21 x Mar/ 21 x (R$ million) Mar/21 Mar/20 Dec/20 Individuals 178,391 13.4% 2.3% 12% Consumer finance 61,137 3.4% 1.5% 3% SMEs¹ 55,323 28.4% 1.3% 424.8 Corporate¹ 129,932 9.2% 6.1% 378.5 411.7 Total 424,784 12.2% 3.
Slide 35: Liquidity / Funding Capital
LIQUIDITY/ FUNDING CAPITAL STEADY IMPROVEMENT FUNDING Mar/ 21 x Mar/ 21 x (R$ million) Mar/21 Mar/20 Dec/20 Demand deposits 39,777 16.9% -4.9% BIS RATIO Savings deposits 63,674 26.9% 0.6% Time deposits 273,990 27.6% -2.1% Financial Bills 14,112 -50.1% -12.2% Others¹ 55,154 -5.1% 0.7% 15.3% 15.2% 13.
Slide 36: Fees
FEES FOCUS ON LOYALTY AND TRANSACTIONALITY, WITH SEASONALITY IN THE QUARTER FEES (R$ million) 1Q21 x 1Q21 x (R$ million) 1Q21 1Q20 4Q20 8% Cards 1,528 9.1% -7.4% -5% Current account 960 1.7% -9.2% 5,133 Insurance 743 -0.8% -18.1% 4,852 4,482 Asset management 332 31.7% 19.9% Lending operations 378 4.
Slide 37: Portfolio Quality
PORTFOLIO QUALITY KEEPING INDICATORS AT COMFORTABLE LEVELS NPL INDICATORS COVERAGE RATIO OVER 90 DAYS 297% 283% 6.0% 15 - 90 DIAS 5.2% 194% 4.6% 4.3% 4.1% 4.2% 3.6% 2.7% 3.1% 2.8% 1Q20 4Q20 1Q21 1.6% 1.1% 1.2% 1.1% 1.7% 1Q20 2Q20 3Q20 4Q20 1Q21 ALLOWANCE FOR LOAN LOSSES (R$ million) COST OF CREDIT 9
Slide 38: Diligent Cost Management and Greater Productivity
DILIGENT COST MANAGEMENT AND GREATER PRODUCTIVITY LEAD TO THE HIGHEST EFFICIENCY RATIO IN OUR HISTORY COMPOSITION OF ADMINISTRATIVE AND GENERAL EXPENSES (R$ million) PERSONNEL EXPENSES (R$ million) -2% INFLATION: 6.10% -6% -1% IN 12 MONTHS 4,667 4,842 4,569 -5% 2,353 2,194 2,249 5,293 5,552 5,266 2,
Slide 39: Takeaways
TAKEAWAYS 1. NOTHING LIKE CONSISTENCY: AFTER SIX YEARS OF PROFITABLE GROWTH, NARRATIVE ALIGNED WITH QUALITY RESULTS 2. GREAT BUSINESS DYNAMICS BASED ON THREE SOLID PILLARS: RISING NET INTEREST INCOME, EXPENSES WELL BELOW INFLATION AND COST OF CREDIT LOWER THAN 2020 3. BEST EFFICIENCY RATIO IN SANTAN
Slide 40: Santander Ecosystem
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Slide 41: Agenda
AGENDA 1 INDUSTRY OVERVIEW: MACROECONOMY AND FINANCIAL SYSTEM 4 OUR BUSINESSES 2 SANTANDER BRASIL PROFILE 5 FINANCIAL HIGHLIGHTS 3 CORPORATE STRATEGY 6 APPENDICES
Slide 42: Reserve Requirement
RESERVE REQUIREMENT Type of Deposits Rate Remuneration Allocation Before 2008 During Current Mandatory Allocation (maximum rates) Financial Crisis the Crisis Demand Deposit Reserve Requirement 45% 42% 21% Cash deposit in Bacen - Reserve Requirement – Additional 8% 5% 0% - - Rural Loan 25% 30% 27.5%
Slide 43: Mortgages, Cards, Getnet
MORTGAGES CARDS GETNET ORIGINATION BY TURNOVER TURNOVER DISTRIBUTION R$ billion R$ billion 14.9% 13.1% 13.6% 14% 12% 13% 14% 13% 75 12.5% 93 87 20% 28% 25% 62 66 69 26% 30% 57 59 38 8% 27 53 32 10% 9% 5% 5% 47 21 23 19 27 16 23 18 58% 51% 53% 55% 52% 48 43 55 55 38 32 41 37 34 42 1Q20 2Q20 3Q20 4Q20
Slide 44: Investor Relations (Brazil)
Investor Relations (Brazil) Av. Juscelino Kubitschek, 2,235, 26th floor São Paulo | SP | Brasil | 04543-011 Telefone: 55 11 3553 3300 E-mails: ri@santander.com.br acionistas@santander.com.br Our purpose is to help people and businesses prosper Our culture is based on the belief that everything we do
Banco Santander (Brasil) — Q1 2021 Earnings Presentation on 6ix