Equity Research Analyst at DM Martins Research.The best opportunities often don’t scream for attention. I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins ...

Group 1 - Banco Santander Brasil SA ADR (NYSE:BSBR) is recognized as one of the best bank penny stocks to buy currently [1][4] - On September 3, 2025, Brazilian banks, including Banco Santander Brasil SA ADR, faced regulatory scrutiny due to inquiries from the U.S. Treasury Department [2][3] - The scrutiny was related to compliance measures under the Magnitsky Act following sanctions on a Brazilian judge, indicating a broader push from Washington for clarity on compliance expectations with foreign financial institutions [3] Group 2 - Banco Santander Brasil SA ADR provides a diverse range of banking products and services to individuals, SMEs, and corporate clients both in Brazil and globally [4]

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 ...

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1]

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]

Financial Performance - Net profit reached R$37 billion[10] - Net interest income decreased by 33% QoQ but increased by 44% YoY[10] - Fees increased by 13% QoQ and 04% YoY[10] - Expenses decreased by 25% QoQ but increased by 15% YoY[10] - ROAE was 164%[10,60] Customer Growth and Engagement - The company has 717 million customers, a 7% increase YoY[11] - Active customers reached 335 million, a 5% increase YoY[11] - Customers with primacy increased by 20% YoY[11] Business Expansion and Diversification - Consumer Finance loan portfolio increased by 16% to R$874 billion[23] - Revenue diversification is a focus, with fees growing above NII[26] - Premium bonds and "Consórcios" revenue increased significantly, with "Consórcio" sales growing by 140% in 2 years through digital channels[30,31] Technology and Efficiency - Investments in technology are increasing, with digital sales up significantly[34,37] - AI is being used to improve productivity, with a 39% rise in chat productivity and a 98% reduction in development time[40] - The company is focused on operational excellence, with a 54% reduction in the number of products and a 23% reduction in infrastructure expenses[44] Loan Portfolio and Funding - Total loans reached R$539496 million, a decrease of 12% compared to the previous quarter[49] - Funding from clients totaled R$643827 million, a decrease of 12% compared to the previous quarter[49]

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]