I recommend holding Santander Brasil (NYSE: BSBR ) shares after the release of its Q1 2025 results. This article is a continuation of my initial coverage article published on May 6, 2024, with a sell recommendation at the time.More than 5 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, an ...

Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Brazil (BSBR) or National Australia Bank Ltd. (NABZY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Ra ...

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 February, 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 Paulo, SP 04543-011 Federative Republic of Brazil (Address of principal executive office) ...

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]

Santander Earnings Presentation 4Q24 BRGAAP February 5吨, 2025 Disclaimer This presentation may contain certain forward-looking statements and information pertaining to Banco Santander (Brasil) S.A. ("Santander Brasil") 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-lookinq statements include, without limitation, any statement that may predict, forecast, suqqest or imply future re ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Banco Santander Brasil (BSBR) as a strong value stock based on its financial metrics and Zacks Rank [2][4][6]. Company Analysis - Banco Santander Brasil (BSBR) holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for undervaluation [4]. - The stock has a Forward P/E ratio of 5.53, significantly lower than the industry average of 9.16, suggesting it is undervalued compared to peers [4]. - BSBR's Forward P/E has fluctuated between 4.94 and 11.91 over the past year, with a median of 6.81, indicating volatility but also potential for growth [4]. - The P/B ratio for BSBR is 0.77, which is favorable compared to the industry average of 1.70, further supporting the notion of undervaluation [5]. - Over the past year, BSBR's P/B ratio has ranged from 0.77 to 1.06, with a median of 0.91, reflecting its current valuation status [5]. - The combination of these metrics suggests that BSBR is likely undervalued and presents an attractive investment opportunity based on its earnings outlook [6].

Company Overview - Banco Santander Brasil (BSBR) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4][3] - The stock is trading with a P/E ratio of 5.97, significantly lower than the industry average P/E of 9.01 [4] Valuation Metrics - BSBR has a PEG ratio of 0.25, compared to the industry average PEG of 0.70, suggesting it is undervalued relative to its expected EPS growth rate [5] - The P/B ratio for BSBR is 0.78, which is also lower than the industry average P/B of 1.67, indicating solid valuation metrics [6] Investment Potential - The historical valuation metrics for BSBR show a Forward P/E range from 4.94 to 11.91, with a median of 7.04, further supporting the notion of undervaluation [4] - Given the strength of its earnings outlook and current valuation metrics, BSBR is positioned as a strong value stock at this time [7]

Core Viewpoint - The article compares Banco Santander-Brazil (BSBR) and HDFC Bank (HDB) to determine which stock is more attractive to value investors, highlighting BSBR's superior valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - BSBR has a forward P/E ratio of 7.26, significantly lower than HDB's forward P/E of 20.07, indicating that BSBR may be undervalued [5]. - The PEG ratio for BSBR is 0.30, while HDB's PEG ratio is 1.68, suggesting that BSBR offers better value relative to its expected earnings growth [5]. - BSBR's P/B ratio is 0.81, compared to HDB's P/B of 2.75, further indicating that BSBR is more attractively priced relative to its book value [6]. Earnings Outlook - BSBR currently holds a Zacks Rank of 2 (Buy), while HDB has a Zacks Rank of 3 (Hold), suggesting that BSBR is experiencing a more favorable earnings outlook [3][7]. - The article emphasizes that BSBR has seen stronger estimate revision activity, which is a positive indicator for value investors [7]. Value Grades - Based on the analysis of various valuation metrics, BSBR holds a Value grade of B, while HDB has a Value grade of C, reinforcing the conclusion that BSBR is the more attractive option for value investors [6].

Financial Data and Key Metrics Changes - The quarterly net profit for Banco Santander (Brasil) was BRL 3.7 billion, reflecting a 10% quarter-on-quarter growth and a two-digit growth year-on-year [5][45] - The Return on Average Equity (ROAE) reached 17%, showing significant growth both quarter-on-quarter and year-on-year [7][46] - Net Interest Income (NII) grew by 16% year-on-year, with a portfolio growth of only 6%, indicating improved efficiency in generating income [7][45] - Fees increased by 13% year-on-year, with a month-over-month growth of almost 3% [8][38] Business Line Data and Key Metrics Changes - The retail loan portfolio grew by 11%, while the corporate segment focused on profitability, leading to a slight reduction in its portfolio [33] - Consumer finance, the largest segment, saw a portfolio growth of 20% year-on-year, with net revenues increasing by 33% [22] - The mass retail segment reported a gross revenue increase of 113% year-on-year, indicating a healthier portfolio [23] - The cards segment experienced a spending growth of 10% year-on-year, with an increase in active cardholders [21] Market Data and Key Metrics Changes - The funding grew by 5% year-on-year, with a focus on improving the quality of the funding mix [9] - The loan-to-deposit ratio remained low at 93%, reflecting strong liquidity management [37] - The auto loan market showed good dynamics with a growth of 4.7% in the quarter [34] Company Strategy and Development Direction - The company is focusing on diversifying its credit portfolio and enhancing profitability through better capital allocation [12][16] - There is a strong emphasis on technology integration to improve customer experience and operational efficiency [48] - The strategy includes a new positioning for SMEs, aiming to double the size of this segment in the coming years [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment but expressed confidence in maintaining growth through disciplined capital allocation [54][60] - The focus will remain on profitability rather than just growth, with a commitment to sustainable long-term expansion [32][46] - The company aims to enhance its presence in clients' daily lives, emphasizing the importance of transactionality [11][47] Other Important Information - The company is investing in technology and has introduced new advisory services to enhance its offerings [15][25] - The quality of assets remains stable, with a cost of risk of 3.7% and a non-performing loan (NPL) formation rate of 1.1% [40][41] Q&A Session Summary Question: Future growth expectations in a more uncertain macro scenario - Management indicated that while some portfolios may experience flat or slight declines, overall growth will continue with a focus on marginal profitability and cross-selling opportunities [54][60] Question: Impact of old cases on Tier 1 capital - Management clarified that the recent impact was due to a long-standing case, and they do not expect further material surprises affecting shareholders' equity [62][71] Question: Consumer finance and regulatory impacts - Management acknowledged the upcoming regulation but does not expect a material impact on capital or payout ability [74][76] Question: Strategy for low-income clients and SMEs - Management confirmed that low-income clients remain a focus, with ongoing efforts to derisk portfolios while maintaining a conservative credit appetite [84][86] Question: Growth in fees and commissions - Management emphasized the importance of diversifying revenue streams and maintaining a disciplined approach to fees and commissions [92][93] Question: Profitability levers to reach ROE targets - Management identified maintaining a balance between assets and liabilities as crucial for profitability, alongside a focus on fees over risk-weighted assets [103][104]