UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2025 _____________________________________________ Commission File Number: 001-34476 BANCO SANTANDER (BRASIL) S.A. (Exact name of registrant as specified in its charter) Avenida Presidente Juscelino Kubitschek, 2041 and 2235 Bloco A – Vila Olimpia São ...

Financial Data and Key Metrics Changes - The company's net income for the quarter was EUR 3.7 billion, slightly below the previous quarter, but showed a positive evolution of almost 10% year on year [5][47] - Return on Average Equity (ROAE) was EUR 16.4 billion, slightly below the first quarter, with an 80 basis points growth in ROE [5][47] - Net Interest Income (NII) decreased by 3.3% due to market NII and carryover costs, but client NII showed a positive evolution [5][40] Business Line Data and Key Metrics Changes - Consumer finance grew by 16%, while card spending increased by 13% in the quarter [37][18] - The SME segment saw an 11% growth, indicating a positive trend despite macroeconomic challenges [37][70] - The company reduced exposure in unsecured personal loans by 34% year on year, focusing on higher quality portfolios [39][44] Market Data and Key Metrics Changes - The average SOLIC rate increased to 15%, impacting the market NII and overall profitability [41][59] - The company reported a 1.9% growth in client NII, benefiting from a better mix of assets and liabilities [40][41] - The percentage of Non-Performing Loans (NPL) for individuals fell to 4% from 4.1%, indicating improved asset quality [44] Company Strategy and Development Direction - The company aims for a profitability target of 20% to 21% in the coming years, focusing on technology and customer service improvements [8][49] - There is a strong emphasis on digital transformation and enhancing customer engagement through the ONE App [10][25] - The strategy includes diversifying the portfolio and improving efficiency while maintaining a focus on customer satisfaction [23][49] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about high interest rates in Brazil and their impact on profitability, but remains committed to achieving a 20% ROE [56][60] - The company is optimistic about growth in the SME sector, despite macroeconomic challenges, and plans to increase its market share [68][70] - Management highlighted the importance of maintaining a disciplined approach to capital allocation and risk management [62][88] Other Important Information - The company is investing 30% more in technology compared to previous years, aiming to enhance operational efficiency [27][28] - There is a focus on merging branches to improve service quality while reducing operational costs [30][31] - The introduction of AI across various functions is expected to drive efficiency and improve customer service [32][35] Q&A Session Summary Question: Concerns about ROE and interest rates - Management acknowledged the challenges posed by high interest rates but emphasized their commitment to achieving a 20% ROE through efficiency and improved asset management [52][56][60] Question: Asset quality concerns in SMEs - Management remains optimistic about the SME sector, indicating plans for cautious growth while monitoring macroeconomic conditions [66][70] Question: Write-off policies and asset quality - Management clarified that write-offs are based on expected losses, and they are proactively managing portfolios to ensure a cleaner balance sheet [78][79] Question: Growth in individual portfolios and payroll loans - Management is focusing on reallocating portfolios towards higher income segments while being cautious with payroll loans due to profitability concerns [90][94][96]

Financial Data and Key Metrics Changes - The company's net income for the quarter was EUR 3.7 billion, reflecting a 10% year-on-year increase and a slight decrease in ROAE [5][48] - Net Interest Income (NII) decreased by 3.3%, primarily due to market NII and carryover costs, although client NII showed a positive evolution [5][39] - The efficiency ratio improved, being the best in the last three years, with expenses growing well below inflation [7][47] Business Line Data and Key Metrics Changes - Consumer finance grew by 16%, while card spending increased by 13% year-on-year [36] - The portfolio for SMEs increased by 11%, indicating a positive trend despite macroeconomic challenges [36] - Personal loans secured by FGTS grew by 81%, while real estate loans increased by approximately 7% year-on-year [37] Market Data and Key Metrics Changes - The bank's customer base reached almost 72 million, with active customers growing by 34 million [9] - The Net Promoter Score (NPS) increased to 86%, reflecting strong customer satisfaction [14] - Digital consumption increased by 38%, while visits to physical stores decreased by 30% over the past two years [29] Company Strategy and Development Direction - The company aims for profitability of 20% to 21% in the coming years, focusing on technology and customer service improvements [8][50] - There is a strong emphasis on digital transformation, with the introduction of the ONE App to enhance customer engagement [25][50] - The strategy includes diversifying the portfolio and maintaining a disciplined approach to capital allocation [51][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 20% ROE, although high interest rates pose challenges [56][60] - The macroeconomic environment is being closely monitored, particularly regarding the impact of interest rates on SMEs and overall loan growth [70][72] - The company remains cautious in capital allocation while seeking growth opportunities in the SME sector [70][72] Other Important Information - The company is investing 30% more in technology compared to previous years, aiming to enhance operational efficiency [27] - There is a focus on improving asset quality, with a slight decrease in non-performing loans (NPL) in certain segments [45][75] - The bank is adopting a proactive approach to write-offs, ensuring a cleaner portfolio [80][82] Q&A Session Summary Question: About ROE and its drivers - Management acknowledged the challenges posed by high interest rates but emphasized their commitment to achieving a 20% ROE through efficiency and disciplined capital management [56][60][66] Question: Concerns regarding SMEs and delinquency rates - Management remains optimistic about the SME sector, indicating plans for cautious growth while monitoring macroeconomic impacts [70][72] Question: Asset quality and write-off policies - The bank is closely monitoring asset quality, with a focus on maintaining strong coverage ratios and proactive write-off strategies [75][80] Question: Growth in individual portfolios and payroll loans - Management is rebalancing its individual portfolio towards higher income segments while being cautious with payroll loans due to profitability concerns [94][98][102]

Earnings Presentation July 30th, 2025 2Q25 BRGAAP Disclaimer This presentation may contain certain forward-looking statements and information pertaining to Banco Santander (Brasil) S.A. and its subsidiaries, which reflect the current views and / or expectations of Santander Brasil and its management regarding its business performance and future events. Forward-looking statements include, without limitation, any statement that may predict, forecast, suggest or imply future results, performance or achievement ...

Core Insights - Investors in the Banks - Foreign sector may consider Banco Santander-Brazil (BSBR) or Erste Group Bank AG (EBKDY) as potential value opportunities [1] Valuation Metrics - Both BSBR and EBKDY hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - BSBR has a forward P/E ratio of 6.71, while EBKDY has a forward P/E of 10.71, suggesting BSBR is more attractively priced [5] - BSBR's PEG ratio is 0.61, compared to EBKDY's PEG ratio of 0.90, indicating BSBR may offer better value relative to its expected earnings growth [5] - BSBR has a P/B ratio of 0.87, while EBKDY's P/B ratio is 1.16, further supporting BSBR's valuation advantage [6] - Based on these metrics, BSBR is rated with a Value grade of B, while EBKDY has a Value grade of D, highlighting BSBR as the superior value option [6]

[Report on Review of Consolidated Condensed Interim Financial Statements](index=3&type=section&id=Report%20on%20review%20of%20consolidated%20condensed%20interim%20financial%20statements) [Auditor's Conclusion](index=3&type=section&id=Conclusion) The auditor's review found no material misstatements in the interim financial statements prepared under IAS 34 - The auditor's review, substantially less in scope than a full audit, **did not identify any material misstatements** in the interim financial statements[9](index=9&type=chunk) - The financial statements are prepared in accordance with **IAS 34 - Interim Financial Reporting**, as issued by the IASB[10](index=10&type=chunk) [Consolidated Condensed Interim Financial Statements](index=5&type=section&id=Consolidated%20Condensed%20Interim%20Financial%20Statements) [Consolidated Condensed Balance Sheet](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheet) Total assets grew to R$1,252.5 billion and stockholders' equity increased to R$121.9 billion as of Q1 2025 Key Balance Sheet Figures (in thousands of BRL) | Account | 03/31/2025 | 12/31/2024 | | :--- | :--- | :--- | | **Total Assets** | **1,252,506,194** | **1,238,796,810** | | Loans and advances to customers (net) | 539,301,309 | 566,089,914 | | Total Financial Assets | 1,107,868,999 | 1,091,405,210 | | **Total Liabilities** | **1,130,559,753** | **1,118,969,678** | | Customer deposits | 608,159,302 | 605,068,163 | | **Total Stockholders' Equity** | **121,946,441** | **119,827,132** | [Consolidated Condensed Statements of Income](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) Net profit for Q1 2025 rose slightly to R$3.15 billion, driven by higher net interest income Q1 Income Statement Highlights (in thousands of BRL) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | 14,825,731 | 13,386,928 | | Total Income | 19,171,053 | 18,178,911 | | Impairment losses on financial assets (net) | (7,264,611) | (6,799,369) | | Operating Income Before Tax | 4,619,867 | 4,416,906 | | **Net Profit for the Period** | **3,151,583** | **3,060,928** | | Profit attributable to the Parent | 3,108,800 | 3,052,046 | [Consolidated Condensed Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 increased significantly to R$4.23 billion, boosted by OCI gains Comprehensive Income Summary (in thousands of BRL) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Profit for the Period | 3,151,583 | 3,060,928 | | OCI that will be reclassified to P&L | (68,248) | (421,457) | | OCI that won't be reclassified to P&L | 1,151,153 | (261,611) | | **Total Comprehensive Income** | **4,234,488** | **2,377,860** | [Consolidated Condensed Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity grew to R$121.95 billion, driven by net profit and OCI adjustments - The closing balance of Total Stockholders' Equity was **R$121,946,441 thousand** as of March 31, 2025[19](index=19&type=chunk) - Key changes during Q1 2025 include **net profit of R$3,108,800 thousand**, payment of dividends and interest on capital of R$1,500,000 thousand, and a positive adjustment of R$1,170,858 thousand from employee benefit plans[19](index=19&type=chunk) [Consolidated Condensed Statement of Cash Flows](index=11&type=section&id=Consolidated%20Condensed%20Statement%20of%20Cash%20Flows) Operating activities generated R$33.4 billion in cash, leading to a net cash increase of R$34.88 billion Net Cash Flow Summary (in thousands of BRL) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 33,407,718 | (21,503,627) | | Net Cash Flows from Investing Activities | (51,546) | 32,665 | | Net Cash Flows from Financing Activities | 1,519,867 | (909,486) | | **Net Increase in Cash and Cash Equivalents** | **34,878,435** | **(22,381,920)** | | Cash and Cash Equivalents at End of Period | 102,079,340 | 67,035,840 | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) [Note 1: Operating Context and Basis of Presentation](index=12&type=section&id=1.%20Operating%20context%2C%20presentation%20of%20condensed%20consolidated%20financial%20statements%20and%20other%20information) The bank's financial statements follow IAS 34 and reflect a new hold-to-maturity strategy for some securities - The bank operates as a multiple bank in Brazil, offering a wide range of financial services through its subsidiaries, including commercial, investment, credit, financing, and insurance[21](index=21&type=chunk) - The financial statements are prepared in accordance with **International Financial Reporting Standards (IFRS)** as issued by the IASB[23](index=23&type=chunk) - In Q1 2025, the bank changed its strategy for part of its ALCO portfolio of government securities to a long-term investment profile, reclassifying them to be measured at **Amortized Cost** to reduce equity volatility[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 2: Basis of Consolidation](index=15&type=section&id=2.%20Basis%20for%20consolidation) The statements consolidate all controlled entities and reflect recent mergers, acquisitions, and a new joint venture - On February 24, 2025, the bank signed an agreement to sell its entire stake in **Summer Empreendimentos Ltda**, pending regulatory approvals[52](index=52&type=chunk) - The bank established a **Joint Venture with the Pluxee Group**, contributing R$2.044 billion and now holding a 20% stake in the JV vehicle, Pluxee Benefícios Brasil S.A[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - In early 2024, the bank acquired the remaining stakes to gain **100% indirect control** of Toro Corretora de Títulos e Valores Mobiliários S.A. and Toro Investimentos S.A[67](index=67&type=chunk) [Note 3: Financial Assets](index=19&type=section&id=3.%20Financial%20assets) Total financial assets reached R$1,107.9 billion, with the majority measured at amortized cost Financial Assets by Category (in thousands of BRL, as of 03/31/2025) | Category | Amount | | :--- | :--- | | Measured At Fair Value Through Profit Or Loss | 250,374,171 | | Measured At Fair Value Through Other Comprehensive Income | 94,747,569 | | Measured At Amortized Cost | 762,747,259 | | **Total** | **1,107,868,999** | - The provision for losses on financial assets measured at amortized cost increased from R$35.67 billion at the start of the period to **R$35.68 billion** at the end of Q1 2025[72](index=72&type=chunk) - The balance of non-recoverable financial assets due to credit risk stood at **R$42.85 billion** at the end of Q1 2025, up from R$42.24 billion at the start of the year[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 5: Interests in Associates and Joint Ventures](index=21&type=section&id=5.%20Interests%20in%20associates%20and%20joint%20ventures) Investments in associates and joint ventures totaled R$3.58 billion, contributing R$86.6 million to income Investment in Associates and JVs (in thousands of BRL) | Category | Investment Value (03/31/2025) | Equity in Earnings (Q1 2025) | | :--- | :--- | :--- | | Joint Control | 642,985 | 9,671 | | Significant Influence | 2,937,811 | 76,944 | | **Total** | **3,580,796** | **86,615** | - **No impairment losses** were recognized on investments in associates and joint ventures as of March 31, 2025[87](index=87&type=chunk) [Note 7: Intangible Assets - Goodwill](index=24&type=section&id=7.%20Intangible%20assets%20-%20Goodwill) Goodwill stood at R$27.86 billion, primarily from the ABN Amro acquisition, with no impairment identified - The total goodwill on the balance sheet is **R$27,858,556 thousand** as of March 31, 2025[96](index=96&type=chunk)[97](index=97&type=chunk) - The largest component of goodwill, **R$27,217,566 thousand**, is from the acquisition of Banco ABN Amro Real S.A[96](index=96&type=chunk) - Goodwill recoverability is tested annually using a value-in-use cash flow model with a 5-year projection period, a 4.5% perpetual growth rate, and a 13.6% discount rate; **no impairment was indicated** in Q1 2025[94](index=94&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) [Note 9: Financial Liabilities](index=25&type=section&id=9.%20Financial%20liabilities) Total financial liabilities were R$1,094.3 billion, led by R$608.2 billion in customer deposits Financial Liabilities Composition (in thousands of BRL, as of 03/31/2025) | Category | Amount | | :--- | :--- | | Customer deposits | 608,159,302 | | Deposits from Brazilian Central Bank and credit institutions | 167,832,517 | | Marketable debt securities | 143,949,584 | | Debt Instruments Eligible to Compose Capital | 23,448,586 | | Trading derivatives & Short positions | 75,838,081 | | **Total Financial Liabilities (excluding hedge derivatives)** | **1,094,266,922** | - The bank has **R$23.4 billion in debt instruments eligible for capital**, consisting of Tier I and Tier II Financial Bills with maturities extending to 2033 and perpetual instruments[113](index=113&type=chunk)[114](index=114&type=chunk) [Note 10: Provisions and Contingent Liabilities](index=28&type=section&id=10.%20Provision%20for%20judicial%20and%20administrative%20proceedings%2C%20commitments%20and%20other%20provisions) Provisions for probable losses totaled R$11.62 billion, with significant contingent liabilities disclosed Provisions for Probable Loss (in thousands of BRL, as of 03/31/2025) | Type | Amount | | :--- | :--- | | Civil | 3,501,069 | | Labor | 3,146,765 | | Tax and Social Security | 2,878,772 | | **Total Judicial/Admin Proceedings** | **9,526,606** | - The bank has contingent liabilities with a possible risk of loss totaling **R$36.03 billion for tax matters** and **R$3.27 billion for civil matters**, which are not provisioned[136](index=136&type=chunk)[146](index=146&type=chunk) - Major contingent tax liabilities (possible loss) include disputes over PIS/COFINS calculation basis (R$2.25B), INSS on Profit Sharing (R$9.83B), and unapproved tax compensations (R$6.69B)[136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) [Note 11: Stockholders' Equity](index=31&type=section&id=11.%20Stockholders%27%20equity) The bank's capital stock is R$65 billion, with an active share buyback program and R$1.5 billion distributed - Shareholders are guaranteed a **minimum dividend of 25%** of the annual Net Profit, with preferred shares receiving a 10% higher dividend than common shares[151](index=151&type=chunk) - In Q1 2025, the Board of Directors approved the distribution of **R$1.5 billion in Interest on Equity**, paid in February 2025[155](index=155&type=chunk) - A new share buyback program is active until August 2025, authorizing the repurchase of up to 36.2 million Units; as of March 31, 2025, the bank held **13.8 million Units in treasury**[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) [Note 15: Operating Segments](index=39&type=section&id=15.%20Operating%20segments) The Commercial Bank and Global Wholesale Bank are the two main segments, with the former driving revenues - The bank identifies two primary operating segments: **Commercial Bank** (individuals and non-global corporate clients) and **Global Wholesale Bank** (Investment Banking, Markets, Treasury)[185](index=185&type=chunk)[189](index=189&type=chunk) Segment Performance (Q1 2025, in thousands of BRL) | Segment | Total Revenues | Operating Result Before Tax | | :--- | :--- | :--- | | Commercial Bank | 16,459,901 | 2,480,470 | | Global Wholesale Bank | 2,711,152 | 2,139,397 | Segment Assets and Liabilities (as of 03/31/2025, in thousands of BRL) | Segment | Total Assets | Loans and advances to customers | Customer deposits | | :--- | :--- | :--- | :--- | | Commercial Bank | 1,160,674,800 | 460,157,530 | 450,754,132 | | Global Wholesale Bank | 91,831,394 | 79,143,779 | 157,405,170 | [Note 17: Fair Value of Financial Instruments](index=43&type=section&id=17.%20Value%20of%20financial%20assets%20and%20liabilities) Financial instruments are classified by a three-level fair value hierarchy, with most assets in Levels 1 and 2 - The bank uses a three-level hierarchy to classify fair value measurements: **Level 1** (quoted prices), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) Financial Assets at Fair Value by Hierarchy Level (in thousands of BRL, as of 03/31/2025) | Level | Financial Assets at FVTPL | Financial Assets at FVOCI | Total | | :--- | :--- | :--- | :--- | | Level 1 | 84,856,220 | 91,388,466 | 176,244,686 | | Level 2 | 163,361,021 | - | 163,361,021 | | Level 3 | 2,156,930 | 3,359,103 | 5,516,033 | - For financial assets measured at amortized cost, the fair value of 'Loans and advances to customers' was estimated at **R$530.3 billion**, compared to its carrying value of R$536.2 billion[220](index=220&type=chunk) [Note 18: Other Disclosures](index=47&type=section&id=18.%20Other%20disclosures) The bank maintains a Basel III Reference Equity Index of 14.35%, well above the minimum requirement Basel Capital Ratios | Ratio | 03/31/2025 | 12/31/2024 | Minimum Requirement | | :--- | :--- | :--- | :--- | | Basel Index Level I | 12.13% | 12.09% | 9.50% | | Basel Core Capital Index | 11.05% | 10.96% | 8.00% | | Basel Reference Equity Index | 14.35% | 14.28% | 11.50% | Sensitivity Analysis - Potential Loss from 25% Adverse Shock (Scenario 2, in thousands of BRL) | Portfolio | Potential Loss | | :--- | :--- | | Trading Portfolio | (656,279) | | Banking Portfolio | (4,888,560) | - The bank uses derivative financial instruments (swaps, futures) for fair value and cash flow hedging to protect against fluctuations in interest rates and exchange rates[235](index=235&type=chunk)[236](index=236&type=chunk)[240](index=240&type=chunk) [Note 19: Subsequent Events](index=56&type=section&id=19.%20Subsequent%20Events) Subsequent events include a R$1.5 billion interest on equity distribution and the sale of an equity stake - On April 10, 2025, the Board approved a **R$1.5 billion distribution of Interest on Equity**, payable from May 8, 2025, to shareholders of record on April 17, 2025[269](index=269&type=chunk) - The bank completed the sale of its entire stake in **Galgo Sistema de Informações S.A.** on May 7, 2025[270](index=270&type=chunk) [Management Report](index=58&type=section&id=Management%20Report) [Economic Situation](index=58&type=section&id=Economic%20Situation) Q1 2025 saw US-China trade tariffs and a Selic rate hike to 14.25% in Brazil to combat inflation - International factors include the US FED pausing interest rate cuts and the Trump administration imposing a **20% tariff increase on China**[273](index=273&type=chunk)[274](index=274&type=chunk) - Domestically, Brazil's Central Bank (Copom) raised the basic interest rate (Selic) to **14.25%** in response to high inflation, with expectations of it reaching 15.25% by June 2025[276](index=276&type=chunk) [Consolidated Performance](index=59&type=section&id=Consolidated%20Performance) Recurring net profit grew 27.8% YoY to R$3.9 billion, achieving a 17.4% ROAE in Q1 2025 Q1 2025 Managerial Performance Highlights | Metric | Value | YoY Change | | :--- | :--- | :--- | | Recurring Managerial Net Profit | R$ 3.9 billion | +27.8% | | ROAE | 17.4% | +3.3 b.p. | | Net Interest Income | R$ 15.9 billion | +7.7% | | Expanded Loan Portfolio | R$ 682.3 billion | +4.3% | | Efficiency Ratio | 37.2% | -2.5 b.p. | [Sustainability](index=60&type=section&id=Sustainability) The bank advanced its sustainability goals, facilitating R$9.7 billion in sustainable business in Q1 2025 - Facilitated **R$9.7 billion in sustainable businesses** and holds a R$40.2 billion portfolio in green bonds and clean energy financing[300](index=300&type=chunk) - Prospera Santander Microfinanças reached a **R$3.3 billion portfolio**, serving 1.14 million customers[301](index=301&type=chunk) - The Board of Directors is composed of **50% female members** and **50% independent members**[303](index=303&type=chunk)

Core Viewpoint - Investors are considering Banco Santander-Brazil (BSBR) and National Australia Bank Ltd. (NABZY) for potential value opportunities in the Banks - Foreign sector [1] Group 1: Zacks Rank and Earnings Outlook - BSBR has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to NABZY, which has a Zacks Rank of 3 (Hold) [3] - The improvement in BSBR's earnings outlook is a significant factor for value investors [3] Group 2: Valuation Metrics - BSBR has a forward P/E ratio of 7.19, while NABZY has a forward P/E of 15.74, suggesting BSBR is more attractively priced [5] - BSBR's PEG ratio is 0.79, indicating better expected earnings growth relative to its price compared to NABZY's PEG ratio of 8.37 [5] - BSBR's P/B ratio is 0.86, compared to NABZY's P/B of 1.72, further highlighting BSBR's valuation advantage [6] Group 3: Value Grades - BSBR has earned a Value grade of B, while NABZY has a Value grade of D, reflecting BSBR's superior valuation metrics [6] - Stronger estimate revision activity and more attractive valuation metrics position BSBR as the preferred choice for value investors [7]

[Independent Auditor's Report](index=6&type=section&id=Independent%20auditor's%20report) [Opinion](index=6&type=section&id=Opinion) The independent auditor, PricewaterhouseCoopers, issued an unqualified opinion, stating that the consolidated financial statements of Banco Santander (Brasil) S.A. as of December 31, 2024, are fairly presented in all material respects, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB - The auditor's opinion is unqualified, indicating that the financial statements are presented fairly and in accordance with IFRS[10](index=10&type=chunk) [Key Audit Matters](index=6&type=section&id=Key%20Audit%20Matters) The audit identified three Key Audit Matters (KAMs) that were of most significance: the estimation of impairment for credit operations, provisions for legal and administrative proceedings, and the information technology environment. These areas were highlighted due to the high level of management judgment, complexity, and dependency on technology required - The estimation of impairment for credit operations under IFRS 9 was a key audit matter due to the high level of management judgment involved in assessing future cash flows, credit risk deterioration, and economic factors[15](index=15&type=chunk)[16](index=16&type=chunk) - Provisions for legal and administrative proceedings were identified as a KAM because determining the liability and its measurement requires significant management judgment regarding the outcome of complex and long-running tax, labor, and civil cases[23](index=23&type=chunk)[24](index=24&type=chunk) - The Information Technology (IT) environment was a focus area due to the bank's high dependency on a complex IT infrastructure for processing a large volume of daily transactions, where deficiencies could lead to incorrect processing of critical financial information[29](index=29&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheet](index=12&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2024, Total Assets increased by **11.0%** year-over-year to **R$1,238.8 billion**, driven by growth in financial assets and loans. Total Liabilities grew by **11.8%** to **R$1,119.0 billion**, primarily due to increased deposits from credit institutions and customer deposits. Total Shareholders' Equity rose to **R$119.8 billion** from **R$114.9 billion** Consolidated Balance Sheet Summary (in thousands of Reais) | Account | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **1,238,796,810** | **1,115,652,776** | **11.0%** | | Loans and advances to customers (net) | 566,089,914 | 517,977,135 | 9.3% | | Debt instruments | 284,173,184 | 244,414,650 | 16.3% | | **Total Liabilities** | **1,118,969,678** | **1,000,796,422** | **11.8%** | | Customer deposits | 605,068,163 | 583,220,576 | 3.7% | | Credit institution deposits | 158,565,482 | 118,511,957 | 33.8% | | **Total Shareholders' Equity** | **119,827,132** | **114,856,354** | **4.3%** | [Consolidated Statement of Income](index=14&type=section&id=Consolidated%20Statement%20of%20Income) For the fiscal year 2024, the Bank reported a Consolidated Net Income of **R$13.41 billion**, a **41.2%** increase from **R$9.50 billion** in 2023. This growth was driven by a **20.9%** rise in Net Interest Income to **R$56.68 billion** and a **61.0%** increase in Operating Income Before Tax. Profit attributable to the Parent Company was **R$13.37 billion** Consolidated Statement of Income Summary (in thousands of Reais) | Account | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | 56,678,560 | 46,884,034 | 20.9% | | Total Income | 73,757,286 | 65,864,310 | 12.0% | | Impairment losses on financial assets (net) | (28,484,030) | (28,008,086) | 1.7% | | Operating Income Before Tax | 19,190,228 | 11,921,651 | 61.0% | | **Consolidated Net Income for the Fiscal Year** | **13,413,763** | **9,498,812** | **41.2%** | | Profit attributable to the Parent Company | 13,365,506 | 9,449,313 | 41.4% | [Consolidated Statement of Comprehensive Income](index=15&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total Comprehensive Income for 2024 was **R$10.67 billion**, a slight increase from **R$10.02 billion** in 2023. The result was impacted by a significant net loss of **R$1.98 billion** in Other Comprehensive Income (OCI) items that may be reclassified to profit or loss, primarily due to unrealized losses on financial assets measured at FVOCI Consolidated Statement of Comprehensive Income Summary (in thousands of Reais) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Consolidated Net Income for the Fiscal Year | 13,413,763 | 9,498,812 | 14,339,475 | | OCI that will be reclassified to profit or loss | (1,978,264) | 1,166,391 | (1,108,715) | | OCI that will not be reclassified to profit or loss | (761,060) | (648,164) | 28,701 | | **Total Comprehensive Income** | **10,674,439** | **10,017,039** | **13,259,461** | [Consolidated Statement of Changes in Stockholders' Equity](index=16&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) Shareholders' equity attributable to the parent company increased from **R$114.45 billion** at the end of 2023 to **R$119.49 billion** at the end of 2024. Key movements included a **R$10 billion** capital increase through the capitalization of profit reserves, net profit of **R$13.37 billion**, dividend and interest on capital payments of **R$6.0 billion**, and a negative impact from Other Comprehensive Income of **R$2.74 billion** - A capital increase of **R$10 billion** was executed by capitalizing profit reserves, raising the total share capital to **R$65 billion**[55](index=55&type=chunk) - The bank distributed **R$6.0 billion** in dividends and interest on capital during 2024[55](index=55&type=chunk) Changes in Equity Attributable to the Parent (in thousands of Reais) | Description | Amount | | :--- | :--- | | **Balance on December 31, 2023** | **114,453,004** | | Net profit attributable to the Parent Company | 13,365,506 | | Other comprehensive income | (2,739,324) | | Dividends and interest on capital | (6,000,000) | | Capital increase (from reserves) | 0 | | Other movements (Treasury shares, compensation, etc.) | 412,499 | | **Balance on December 31, 2024** | **119,491,685** | [Consolidated Statement of Cash Flows](index=19&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Bank experienced a net cash outflow from operating activities of **R$21.13 billion** in 2024, a significant shift from a **R$36.61 billion** inflow in 2023, mainly due to changes in operating assets and liabilities. Net cash used in investing activities was **R$2.02 billion**, while financing activities provided a net cash inflow of **R$0.93 billion**. Consequently, cash and cash equivalents decreased by **R$22.22 billion** to end the year at **R$67.20 billion** Consolidated Statement of Cash Flows Summary (in thousands of Reais) | Cash Flow Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | (21,131,267) | 36,614,788 | 6,847,026 | | Net Cash Flow from Investing Activities | (2,015,767) | (2,580,315) | (2,705,289) | | Net Cash Flow from Financing Activities | 930,179 | 5,817,953 | 12,754,848 | | **Net (Decrease) Increase in Cash** | **(22,216,855)** | **39,852,426** | **16,896,585** | | Cash at Beginning of Year | 89,417,760 | 49,565,334 | 32,668,749 | | **Cash at End of Year** | **67,200,905** | **89,417,760** | **49,565,334** | [Notes to the Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Note 1. Operating Context and Presentation of Financial Statements](index=20&type=section&id=1.%20Operating%20context,%20presentation%20of%20consolidated%20financial%20statements%20and%20other%20information) Banco Santander (Brasil) S.A. is a universal bank controlled by Banco Santander, S.A. of Spain, operating through various portfolios including commercial, investment, credit, and financing. The consolidated financial statements for the year ended December 31, 2024, were prepared in accordance with IFRS and authorized for issuance on February 27, 2025. The report also notes the adoption of amendments to IAS 1, IAS 7, IFRS 7, and IFRS 16, which did not have a material impact - The Bank operates as a universal bank in Brazil, with activities spanning commercial banking, investment, credit, financing, leasing, and insurance, among others[60](index=60&type=chunk) - The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB[62](index=62&type=chunk) - The preparation of the financial statements involves significant management estimates and assumptions, particularly concerning the fair value of financial instruments, provisions for credit losses, pension fund provisions, legal provisions, goodwill impairment, and the realization of tax credits[70](index=70&type=chunk)[71](index=71&type=chunk) [Note 2. Accounting Policies and Determination Criteria](index=22&type=section&id=2.%20Accounting%20policies%20and%20determination%20criteria) This note details the significant accounting policies applied in the financial statements. Key policies include the basis for consolidation of subsidiaries and investment funds, the classification and measurement of financial instruments (at amortized cost, fair value through other comprehensive income, or fair value through profit or loss), hedge accounting, lease accounting under IFRS 16, and the recognition of provisions and taxes. The policies are consistent with IFRS standards - Financial assets are classified for measurement into three categories: fair value through profit or loss (FVTPL), fair value through other comprehensive income (FVOCI), and amortized cost, based on the business model and the asset's cash flow characteristics (SPPI test)[103](index=103&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk) - The Bank uses the equity method to account for its interests in joint ventures and associates where it has joint control or significant influence[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Provisions for legal and administrative proceedings are recognized when the risk of loss is assessed as probable and the amount can be reliably measured. Contingent assets are not recognized unless their realization is virtually certain[224](index=224&type=chunk)[226](index=226&type=chunk) - Goodwill is not amortized but is tested for impairment at least annually. Other intangible assets with finite lives are amortized over their useful lives, typically up to 5 years for software[209](index=209&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) [Note 3. Basis for Consolidation](index=40&type=section&id=3.%20Basis%20for%20consolidation) This note details the subsidiaries and investment funds included in the consolidation and outlines significant corporate actions undertaken in 2023 and 2024. Key transactions in 2024 included the incorporation of several entities (Return Capital, Mobills Labs, Apê11), the formation of a partnership with Pluxee Group, and acquisitions of stakes in América Gestão Serviços em Energia S.A. and Fit Economia de Energia S.A. In 2023, the bank sold its entire stake in Banco PSA Finance Brasil and a **40%** stake in Webmotors S.A - In June 2024, the bank formed a partnership with Pluxee Group, contributing its benefits subsidiary and cash for a **20%** stake in the new partnership vehicle, Pluxee Benefícios Brasil S.A.[282](index=282&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) - The bank acquired a **70%** stake in América Gestão Serviços em Energia S.A. and a **65%** stake in Fit Economia de Energia S.A. in 2024, expanding its presence in the energy sector[288](index=288&type=chunk)[289](index=289&type=chunk) - In April 2023, the bank sold a **40%** stake in Webmotors S.A. to Carsales.com, reducing its holding to **30%**[295](index=295&type=chunk) [Note 9. Loans and Advances to Clients](index=57&type=section&id=9.%20Loans%20and%20advances%20to%20clients) The gross loan portfolio grew by **8.7%** to **R$599.7 billion** in 2024. Loans to individuals represented the largest segment at **48.4%** of the portfolio. The allowance for loan losses remained stable at **R$33.6 billion**. Impaired assets (Stage 3) increased to **R$42.2 billion** from **R$39.9 billion** year-over-year Loans and Advances to Customers (in thousands of Reais) | Category | 2024 | 2023 | | :--- | :--- | :--- | | **Loans and advances to customers, gross** | **599,687,844** | **551,536,203** | | Allowance for loan losses | (33,597,930) | (33,559,068) | | **Loans and advances to customers, net** | **566,089,914** | **517,977,135** | Loan Portfolio by Borrower Sector (Gross, in thousands of Reais) | Sector | 2024 | 2023 | | :--- | :--- | :--- | | Commercial and Industrial | 241,177,143 | 233,946,173 | | Real Estate Credit - Construction | 64,820,223 | 61,747,721 | | Loans to Individuals | 290,347,270 | 252,687,422 | | Leasing | 3,343,208 | 3,154,887 | | **Total** | **599,687,844** | **551,536,203** | - The balance of impaired assets (non-recoverable due to credit risk) increased to **R$42.2 billion** at the end of 2024 from **R$39.9 billion** at the end of 2023[374](index=374&type=chunk) [Note 13. Intangible Assets - Goodwill](index=70&type=section&id=13.%20Intangible%20assets%20-%20Goodwill) Total goodwill on the balance sheet was **R$27.89 billion** as of December 31, 2024, largely unchanged from **R$27.85 billion** in 2023. The majority of this balance, **R$27.22 billion**, relates to the acquisition of Banco ABN Amro Real S.A. (Banco Real). Annual impairment tests were conducted, and no impairment loss was identified for 2024 or 2023 - The majority of the goodwill, **R$27.2 billion**, originates from the acquisition of Banco Real[399](index=399&type=chunk)[401](index=401&type=chunk) - Annual impairment tests, based on value-in-use cash flow projections, concluded that there was no evidence of goodwill impairment in 2024[399](index=399&type=chunk)[403](index=403&type=chunk) [Note 19. Debt Instruments Eligible as Capital](index=75&type=section&id=19.%20Debt%20Instruments%20Eligible%20as%20Capital) The balance of Debt Instruments Eligible as Capital increased to **R$23.14 billion** in 2024 from **R$19.63 billion** in 2023. This was primarily due to a new issuance of **R$7.6 billion** in Tier I Financial Bills in September 2024, offset by the repurchase of **R$7.53 billion** in other instruments Debt Instruments Eligible as Capital (in thousands of Reais) | Instrument Type | 2024 | 2023 | | :--- | :--- | :--- | | Tier I (Perpetual) | 7,890,652 | 6,116,218 | | Financial Bills - Tier II | 15,247,132 | 13,510,749 | | **Total** | **23,137,784** | **19,626,967** | - In September 2024, the bank issued **R$7.6 billion** in new Tier I perpetual Financial Bills[419](index=419&type=chunk)[420](index=420&type=chunk)[421](index=421&type=chunk) [Note 22. Provisions for Judicial and Administrative Proceedings](index=80&type=section&id=22.%20Provisions%20for%20judicial%20and%20administrative%20proceedings,%20commitments%20and%20other%20provisions) Provisions for judicial and administrative proceedings increased to **R$9.61 billion** in 2024 from **R$8.93 billion** in 2023. The provisions cover probable losses from civil, labor, and tax matters. The bank also disclosed contingent liabilities with a possible loss risk totaling **R$35.8 billion** for tax matters, **R$459 million** for labor, and **R$3.2 billion** for civil lawsuits, which are not provisioned Provisions for Judicial and Administrative Proceedings (in thousands of Reais) | Category | 2024 | 2023 | | :--- | :--- | :--- | | Civil | 3,330,621 | 2,888,359 | | Labor | 2,946,482 | 3,277,476 | | Tax and Social Security | 2,788,750 | 2,291,832 | | **Total** | **9,065,853** | **8,457,667** | - Contingent liabilities classified as 'possible loss' and therefore not provisioned amount to **R$35.8 billion** for tax lawsuits, with major cases related to PIS/COFINS, INSS on profit sharing, and ISS[474](index=474&type=chunk) [Note 27. Shareholders' Equity](index=89&type=section&id=27.%20Shareholders'%20equity) Share capital was increased by **R$10 billion** to **R$65 billion** in April 2024 through the capitalization of profit reserves, with no new shares issued. The bank distributed a total of **R$6.0 billion** in dividends and interest on equity in 2024. A share buyback program is active, with a target of acquiring up to **36.2 million** Units, representing approximately **1%** of the bank's share capital, to maximize shareholder value and for long-term incentive plans - Share capital was increased to **R$65 billion** from **R$55 billion** by capitalizing part of the statutory profit reserve[511](index=511&type=chunk) Dividends and Interest on Equity Declared in 2024 (in thousands of Reais) | Declaration Date | Type | Amount | | :--- | :--- | :--- | | Jan 11, 2024 | Interest on Capital | 1,500,000 | | Apr 10, 2024 | Interest on Capital | 1,500,000 | | Jul 10, 2024 | Interest on Capital | 1,500,000 | | Oct 10, 2024 | Interest on Capital | 1,300,000 | | Oct 10, 2024 | Dividends | 200,000 | | **Total** | | **6,000,000** | - The bank has an ongoing share repurchase program set to end in August 2025, aiming to acquire up to **1%** of its share capital for treasury or subsequent sale[527](index=527&type=chunk)[528](index=528&type=chunk)[529](index=529&type=chunk) [Note 28. Earnings Per Share](index=92&type=section&id=28.%20Earnings%20per%20share) Basic earnings per **1,000** common shares increased to **R$1,708.02** in 2024 from **R$1,208.83** in 2023. For preferred shares, basic earnings per **1,000** shares rose to **R$1,878.82** from **R$1,329.71**. Diluted earnings per share were the same as basic, as the exercise price of benefit programs was higher than the average market price of the shares, resulting in no dilutive effect Basic Earnings per 1,000 Shares (in Reais) | Share Type | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Common shares | 1,708.02 | 1,208.83 | 1,831.43 | | Preferred shares | 1,878.82 | 1,329.71 | 2,014.57 | - Diluted EPS is identical to Basic EPS because the potential dilutive effect of long-term compensation programs was not computed, as their exercise prices were above the average market share price[536](index=536&type=chunk) [Note 30. Operational Ratios](index=96&type=section&id=30.%20Operational%20Ratios) As of December 31, 2024, the Bank remains compliant with the capital requirements set by the Brazilian Central Bank. The Regulatory Capital (Basel) Ratio was **14.28%**, above the **11.50%** minimum requirement. The Tier 1 Capital Ratio was **12.09%** (above **9.50%** min) and the Common Equity Tier 1 (CET1) Ratio was **10.96%** (above **8.00%** min) Capital Adequacy Ratios | Ratio | 2024 | 2023 | Minimum Requirement | | :--- | :--- | :--- | :--- | | Regulatory Capital (Basel) | 14.28% | 14.51% | 11.50% | | Tier 1 Capital | 12.09% | 12.43% | 9.50% | | Common Equity Tier 1 (CET1) | 10.96% | 11.48% | 8.00% | - Total Risk-Weighted Assets (RWA) increased to **R$707.5 billion** in 2024 from **R$654.3 billion** in 2023, driven primarily by growth in credit risk[557](index=557&type=chunk) [Note 44. Business Segment Reporting](index=108&type=section&id=44.%20Business%20segment%20reporting) The Bank operates through two main segments: Commercial Banking and Global Wholesale Banking (GWB). In 2024, Commercial Banking generated an operating profit before tax of **R$12.46 billion** on total income of **R$64.80 billion**. The GWB segment contributed **R$6.73 billion** in operating profit before tax on total income of **R$8.95 billion** Segment Performance 2024 (in thousands of Reais) | (Condensed) Income Statement | Commercial Banking | Global Wholesale Banking | Total | | :--- | :--- | :--- | :--- | | **TOTAL INCOME** | **64,803,629** | **8,953,657** | **73,757,286** | | Impairment losses on financial assets (net) | (28,450,756) | (33,274) | (28,484,030) | | **OPERATING PROFIT BEFORE TAX** | **12,460,706** | **6,729,522** | **19,190,228** | Segment Assets (in thousands of Reais) | Category | Commercial Banking | Global Wholesale Banking | Total | | :--- | :--- | :--- | | **Total assets (2024)** | **1,143,663,122** | **95,133,688** | **1,238,796,810** | | Total assets (2023) | 1,010,503,261 | 105,149,515 | 1,115,652,776 | [Note 46. Risk Management](index=113&type=section&id=46.%20Risk%20management) The bank maintains a comprehensive risk management framework based on principles of independence, senior management involvement, and the use of statistical tools. For credit risk, the non-performing loan ratio improved to **7.03%** in 2024 from **7.23%** in 2023. Market risk is managed using Value at Risk (VaR), with the trading portfolio's average VaR at **R$4.5 billion** in 2024. Liquidity risk is managed through metrics like the Liquidity Coverage Ratio (LCR) and stress testing to ensure obligations can be met - The bank's risk management framework is based on principles including risk function independence, senior management involvement, portfolio diversification, and the use of statistical tools like VaR, economic capital, and stress testing[639](index=639&type=chunk) - The non-performing loan ratio improved to **7.03%** in 2024 from **7.23%** in 2023, reflecting better quality in new loan vintages and the write-off of older ones[695](index=695&type=chunk)[697](index=697&type=chunk) - Market risk for the trading portfolio is measured by Value at Risk (VaR), which averaged **R$4.527 billion** in 2024[758](index=758&type=chunk) - Liquidity risk management utilizes short-term metrics like the Liquidity Coverage Ratio (LCR) and long-term metrics like the Net Stable Funding Ratio (NSFR), complemented by stress testing[736](index=736&type=chunk)[738](index=738&type=chunk)[741](index=741&type=chunk) [Note 47. Subsequent Events](index=133&type=section&id=47.%20Subsequent%20Events) On January 10, 2025, the Board of Directors approved the distribution of Interest on Equity amounting to **R$1.5 billion**. The payment was scheduled for February 12, 2025, and will be attributed to the mandatory minimum dividends for the 2025 fiscal year - The Board of Directors approved a **R$1.5 billion** distribution of Interest on Equity on January 10, 2025, which was paid on February 12, 2025[811](index=811&type=chunk) [Appendix I – Reconciliation of Shareholders' Equity and Net Income](index=134&type=section&id=APPENDIX%20I%20%E2%80%93%20RECONCILIATION%20OF%20SHAREHOLDERS'%20EQUITY%20AND%20NET%20INCOME) [Reconciliation between Brazilian GAAP and IFRS](index=134&type=section&id=Reconciliation%20between%20Brazilian%20GAAP%20and%20IFRS) This appendix reconciles the Shareholders' Equity and Net Income from Brazilian GAAP to IFRS. For 2024, Shareholders' Equity under IFRS was **R$119.49 billion**, compared to **R$90.74 billion** under BRGAAP. Net Income under IFRS was **R$13.37 billion**, compared to **R$13.48 billion** under BRGAAP. The largest reconciling item for equity is the reversal of goodwill amortization (**R$26.93 billion**), as IFRS does not permit amortization of goodwill Shareholders' Equity Reconciliation (in thousands of Reais) | Description | 2024 | | :--- | :--- | | **Equity under Brazilian GAAP** | **90,743,958** | | Reversal of goodwill amortization | 26,925,987 | | Deferral of fees/commissions | 2,044,873 | | Impairment of financial assets | (387,348) | | Other adjustments | 264,215 | | **Equity under IFRS** | **119,491,685** | - The primary difference between BRGAAP and IFRS for equity is the treatment of goodwill. BRGAAP allows for systematic amortization, while IFRS requires annual impairment testing without amortization, leading to a significant positive adjustment to equity under IFRS[818](index=818&type=chunk) [Performance Report](index=138&type=section&id=Performance%20Report) [Economic Situation](index=138&type=section&id=1.%20Economic%20Situation) The economic environment in 2024 was marked by international challenges, including the US presidential election outcome and a cautious stance from the Federal Reserve. Domestically, Brazil faced a deteriorating perception of fiscal risk, leading to exchange rate devaluation and an increase in the Selic base interest rate to **12.25%**. Despite these headwinds, GDP performance in Q3 2024 was stronger than expected, leading to an upward revision of the full-year growth projection to **3.5%** - International challenges include the US election, which could lead to trade tariff impositions, and the Federal Reserve signaling fewer interest rate cuts for 2025[831](index=831&type=chunk)[832](index=832&type=chunk) - Domestically, fiscal risk perception worsened, and the Central Bank of Brazil raised the Selic rate to **12.25%** by year-end 2024 to combat unanchored inflation expectations[834](index=834&type=chunk)[835](index=835&type=chunk) - Brazilian GDP growth for 2024 is projected to be **3.5%**, revised upwards after a surprisingly strong Q3 performance driven by resilient labor markets and fiscal stimulus[836](index=836&type=chunk) [Consolidated Performance](index=139&type=section&id=2.%20Consolidated%20Performance) The bank's managerial net profit grew **47.8%** to **R$13.87 billion** in 2024, driven by a **14.2%** increase in the gross financial margin and a **13.3%** rise in commissions. The performance reflects a strategy of selective growth in assets with better returns, diversification of revenue, and controlled default rates, while maintaining a focus on productivity and efficiency Managerial Income Statement (in R$ million) | Account | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross Financial Margin | 60,746 | 53,179 | 14.2% | | Commissions | 20,917 | 18,458 | 13.3% | | Total Revenues | 81,663 | 71,637 | 13.2% | | **Managerial Net Profit** | **13,872** | **9,382** | **47.8%** | [Corporate Governance and Management Statements](index=142&type=section&id=Corporate%20Governance%20and%20Management%20Statements) [Composition of Management Bodies](index=142&type=section&id=Composition%20of%20Management%20Bodies%20of%20December%2031,%202024) As of December 31, 2024, the Board of Directors was chaired by Deborah Stern Vieitas (independent) and included ten other members. The Executive Board was led by CEO Mario Roberto Opice Leão. The bank also has several advisory committees, including Audit, Risk and Compliance, Sustainability, Nomination and Governance, and Compensation - The Board of Directors is chaired by Deborah Stern Vieitas and includes a majority of independent members[858](index=858&type=chunk) - The bank's governance structure includes an Audit Committee, Risk and Compliance Committee, Sustainability Committee, Nomination and Governance Committee, and Compensation Committee[859](index=859&type=chunk)[860](index=860&type=chunk) [Directors' Statements and Audit Committee Report](index=144&type=section&id=Directors'%20statement%20on%20the%20Financial%20Statements) The Executive Board declared that they reviewed and concurred with the 2024 financial statements, which received an unqualified opinion from the independent auditors. The Audit Committee reported that it advised the Board of Directors, oversaw the financial statements' reliability, the effectiveness of internal and independent audits, and the internal control system. Based on its work, the Committee recommended the approval of the 2024 financial statements - The Executive Board formally declared its review and agreement with the 2024 financial statements[865](index=865&type=chunk) - The Audit Committee reviewed the financial statements, met with internal and independent auditors, monitored internal controls and operational risks, and oversaw compliance with regulatory bodies[876](index=876&type=chunk)[879](index=879&type=chunk) - The Audit Committee concluded that its work provided transparency and quality to the financial statements and recommended their approval by the Board of Directors[889](index=889&type=chunk)

Economic Conditions - Brazilian GDP growth was 3.1% in 2023, driven by a record grain harvest, with an estimated growth of 3.5% for 2024 supported by a strong economy and historically low unemployment levels [141]. - The Brazilian economy's growth may be impacted by various factors such as nationwide strikes, natural disasters, and pandemics, which could lead to labor market volatility and increased delinquency rates [141]. - The Brazilian GDP growth rate for the period between 2022 and 2024 is estimated at 3.2% per annum, indicating a slowdown in economic growth [238]. - The Brazilian economy faces structural problems, including high public debt levels and rising inflation, which have led to significant volatility in recent decades [176]. - Governmental debt as a percentage of GDP has continued to increase in 2023 and 2024 despite economic growth and positive revenue developments [176]. Interest Rates and Monetary Policy - The SELIC rate in Brazil was raised from 2.0% at the end of 2020 to 13.75% at the end of 2022, and was reduced to 11.75% by the end of 2023 [169]. - The transition in leadership at the Brazilian Central Bank in January 2025 may influence monetary policy priorities, affecting inflation control and interest rate management critical to Brazil's economic stability [129]. - The Brazilian Central Bank's tightening cycle initiated in September 2024 could further impact the company's financial condition and operational results [169]. - The company is exposed to fluctuations in interest rates, which may negatively impact demand for credit and investment products, as well as increase funding costs and default risks [128]. - Interest rate increases may reduce the volume of loans originated, as sustained high rates historically discourage borrowing and increase delinquencies [292]. Regulatory Environment - The company is subject to extensive regulatory oversight, which could adversely affect business operations and financial condition [188]. - The Brazilian Central Bank's regulations may lead to intervention or liquidation processes on a consolidated basis, impacting the company's capital base and subsidiaries [197]. - Regulatory changes in Brazil are continuously evolving, which may impose additional compliance costs and affect the ability to provide certain financial services [190]. - The implementation of Basel III regulations in Brazil has introduced new capital requirements and liquidity coverage ratios, affecting the company's financial stability [199]. - The LGPD and GDPR impose significant penalties for noncompliance, including fines up to 2% of the economic group's turnover in Brazil, capped at R$50 million per offense [210]. Financial Performance and Risks - The company's total provisions for pensions and similar obligations amounted to R$1.4 billion, out of total provisions of R$11.0 billion for legal and administrative proceedings, commitments, pensions, and other matters as of December 31, 2024 [135]. - The company’s credit risk exposure, including gross loans and advances to customers, amounted to R$750,357 million as of December 31, 2024, compared to R$719,881 million as of December 31, 2023 [237]. - The company faces risks from a potential slowdown in Brazil, which could lead to reduced demand for products and services and increased inflationary pressure [171]. - The company may experience increased costs of funding and reduced liquidity due to volatility in global financial markets [156]. - Economic uncertainty and high inflation may lead to increased delinquencies in the company's credit portfolios, adversely affecting operations and financial condition [240]. Competition and Market Dynamics - Increased competition in the Brazilian financial services market, particularly from neobanks and digital platforms, is eroding traditional banks' market share and margins [179]. - The introduction of the PIX payment system has made processing payments faster and less expensive, fostering competition and potentially affecting traditional banking solutions [182]. - The competitive landscape is intensifying due to nontraditional banking service providers, which may adopt more aggressive pricing strategies [180]. - The company’s profitability is dependent on the success of new products and services, which must meet changing customer needs to avoid obsolescence [185]. Cybersecurity and Operational Risks - Cybersecurity is a top risk concern, with increasing scrutiny and regulation governing cybersecurity risks, which could lead to substantial costs and reputational damage if breaches occur [280]. - The company aims to enhance its cybersecurity resilience in alignment with the European Union's Digital Operational Resilience Act, focusing on improving defenses against cyberattacks [280]. - The company faces significant operational risks, including potential losses from inadequate processes and systems failures, which have previously resulted in losses related to customer account migrations and phishing scams [272]. - Any cyberattacks or data breaches could have a material adverse effect on the company’s business and financial condition [323]. - The company is highly dependent on the proper functioning of its information technology systems, which are critical for processing transactions and managing data [311]. Governance and Reputation - Increased focus on environmental, social, and corporate governance policies may impact the company's reputation and business prospects [326]. - Potential for significant reputational harm due to negative perceptions from stakeholders regarding governance policies [326]. - The company faces risks related to stakeholder perceptions of its governance efforts [326]. - Damage to the company’s reputation could arise from various sources, including employee misconduct and negative media coverage, affecting investor confidence [324]. - The company must navigate increased scrutiny and expectations from various stakeholders [326].

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide valuable information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the importance of conducting due diligence [2][3]