Core Viewpoint - Banco Santander-Brazil (BSBR) has received a Zacks Rank upgrade to 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements as they buy or sell shares [4]. Company Performance and Outlook - The recent upgrade for Banco Santander-Brazil reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - The Zacks Consensus Estimate for Banco Santander-Brazil indicates expected earnings of $0.87 per share for the fiscal year ending December 2026, with a 3.8% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade to Zacks Rank 2 positions Banco Santander-Brazil among the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Investors are comparing Banco Santander-Brazil (BSBR) and Banco Macro (BMA) to determine which stock offers better value for investment [1] Valuation Metrics - BSBR has a forward P/E ratio of 7.95, while BMA has a forward P/E of 11.97 [5] - BSBR's PEG ratio is 0.77, indicating a favorable valuation compared to BMA's PEG ratio of 1.39 [5] - BSBR's P/B ratio stands at 1.12, compared to BMA's P/B of 1.57, suggesting BSBR is more undervalued [6] Earnings Outlook - BSBR holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while BMA has a Zacks Rank of 5 (Strong Sell) [3] - The solid earnings outlook for BSBR positions it as a superior value option compared to BMA [7] Value Grades - BSBR has been assigned a Value grade of A, while BMA has a Value grade of C, reflecting BSBR's stronger valuation metrics [6]

Group 1 - The results align with the trends observed in August 2025, indicating a moderate expansion of the loan book, particularly for SMEs [1] - Quipus Capital focuses on operational aspects and long-term earnings power of companies rather than market-driven dynamics [1] - The strategy emphasizes holding companies independently of future price movements, with most recommendations being holds [1] Group 2 - A small fraction of companies are considered a buy at any given time, highlighting a cautious investment approach [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a bullish market [1]

Financial Data and Key Metrics Changes - The company reported a net income of BRL 4.1 billion, reflecting a year-on-year increase of almost 6% and a quarter-on-quarter increase of 1.9% [4] - The profitability ratio was maintained at 17.6%, with a goal to achieve over 20% in the future [4] - The net interest income (NII) grew by 0.8% quarter-on-quarter but decreased year-on-year due to market conditions [5] Business Line Data and Key Metrics Changes - Consumer finance showed significant growth, with a year-on-year increase of 73% in insurance and fees [13] - The cards segment grew by 13.4% year-on-year, while small and medium-sized enterprises also saw a growth of 13% [27] - The company achieved a balanced funding mix, reaching a 50/50 ratio between corporate and individual clients [16] Market Data and Key Metrics Changes - Time deposits from individuals grew by nearly 20% year-on-year, indicating a favorable performance in funding [28] - Demand deposits saw a reduction as clients migrated to time deposits [28] - The company observed a slight improvement in asset management but a deterioration in market making quarter-on-quarter [30] Company Strategy and Development Direction - The company is focused on customer centricity and enhancing the customer journey through hyper-personalization and AI [8][10] - There is a strong emphasis on expanding the small and medium-sized enterprises segment, with plans to double the business share [41] - The strategy includes reducing the number of branches while enhancing digital and physical customer interactions [50][52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by high interest rates affecting smaller enterprises, but remains optimistic about the long-term potential of the SME segment [44] - The company is committed to improving the cost-to-serve for low-income clients, aiming for a 30% reduction in the future [82] - Management expects to see improvements in provisions and overall performance in 2026, despite current pressures [84] Other Important Information - The company has made significant investments in technology, with tech expenses growing by 16% [60] - The transition to a more modern processing system is underway, aiming to enhance efficiency and reduce costs [64] - The company is actively using AI in both growth and efficiency initiatives, particularly in credit models [67] Q&A Session Summary Question: What is happening with the small mid-sized enterprises delinquency? - Management noted that the pressure is primarily on smaller enterprises, not specific industries, and they are monitoring the situation closely [40] Question: How do you see the relevance of branches in serving the low-income segment? - Management emphasized that while branches still play a role, the focus is shifting towards digital channels and experience stores [50][52] Question: What is the outlook for low-income performance and delinquency? - Management acknowledged increased pressure in the low-income segment but maintained a strict policy on recoveries, indicating a cautious approach [72][73] Question: How is the company deploying AI in credit models? - Management confirmed that AI is being integrated into risk models and recovery processes, with ongoing enhancements to improve performance [67]

Financial Data and Key Metrics Changes - The company reported a net income of BRL 4.1 billion, reflecting a year-on-year increase of almost 6% and a quarter-on-quarter increase of 1.9% [4] - Profitability was maintained at 17.6%, with a goal to reach over 20% in the future [4] - The net interest income (NII) grew by 0.8% quarter-on-quarter, but showed a year-on-year decline due to market conditions [5] Business Line Data and Key Metrics Changes - Consumer finance grew significantly, with a year-on-year increase of 13%, and insurance fees rose by 73% from a base of 100 [12] - The cards segment also saw growth, with a 13.4% increase year-on-year [26] - Small and medium-sized enterprises (SMEs) experienced a similar growth rate of 13% year-on-year [26] Market Data and Key Metrics Changes - Time deposits from individuals grew by nearly 20% annually, indicating a favorable performance in funding [27] - Demand deposits saw a reduction as clients migrated to time deposits [27] - The company observed a slight improvement in asset management but a deterioration in market making quarter-on-quarter [29] Company Strategy and Development Direction - The company is focused on customer centricity and enhancing the customer journey through hyper-personalization and AI [8][10] - There is a strategic emphasis on increasing the number of active clients and improving transactionality [8] - The company aims to balance its funding mix between corporate and individual clients, targeting a 60% share for individuals in the future [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by high interest rates affecting smaller enterprises more significantly [42] - The company remains cautious in credit granting, prioritizing risk-adjusted profitability [26] - There is an expectation of improved performance in the low-income segment over the next few years, although it may take time to achieve desired profitability levels [54] Other Important Information - The company has made significant investments in technology, with tech expenses growing by 16% while other expenses remained flat [60] - The transition to a more modern and efficient banking platform is underway, with plans to migrate legacy systems to cloud-based solutions [63] Q&A Session Summary Question: Delinquency in SMEs - Analyst inquired about the delinquency ratio in SMEs and its implications for the company's strategy - Management noted that the pressure is primarily on smaller enterprises, not specific industries, and emphasized the importance of monitoring this segment [39][40] Question: Relevance of Branches for Low-Income Segment - Analyst asked about the role of branches in serving the low-income segment amid a reduction in branch numbers - Management responded that while branches still play a role, the focus is shifting towards digital channels and experience stores [49][51] Question: Technology Investments and AI Deployment - Analyst sought clarification on future technology investments and the use of AI in credit models - Management confirmed ongoing investments in technology and the integration of AI in both loan granting and recovery models [60][64]

Financial Data and Key Metrics Changes - The company reported a net income of BRL 4.1 billion for Q4 2025, reflecting a year-on-year increase of almost 6% and a quarter-on-quarter increase of 1.9% [2] - The profitability ratio was maintained at 17.6%, with a goal to achieve over 20% in the future [2] - The net interest income (NII) grew by 0.8% quarter-on-quarter, although it decreased year-on-year due to market conditions [3] Business Line Data and Key Metrics Changes - Consumer finance showed significant growth, with a year-on-year increase of 13%, and the portfolio expanded, enhancing customer experience [22] - The small and medium-sized enterprises (SMEs) segment also grew by 13% year-on-year, indicating a positive trend in this area [22] - The company reported a 73% increase in insurance and fees year-on-year, indicating strong performance in this segment [10] Market Data and Key Metrics Changes - Time deposits from individuals grew by nearly 20% annually, reflecting a favorable performance in the funding mix [24] - Demand deposits saw a reduction as clients migrated to time deposits, indicating a shift in customer preferences [25] - The company observed a slight improvement in asset management, although market-making activities deteriorated quarter-on-quarter [26] Company Strategy and Development Direction - The core strategy focuses on customer journey transformation and enhancing primary relationships through hyper-personalization and AI [5][6] - The company aims to increase customer activity and transactionality to become the primary bank for its clients [6] - There is a strong emphasis on expanding the SME segment and improving the service model to capture growth opportunities [14][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by high interest rates affecting smaller enterprises, but remains optimistic about the long-term potential of the SME segment [36] - The company is committed to disciplined growth and improving the cost-to-serve in the low-income segment to enhance profitability [58] - Management expects to see improvements in provisions and overall portfolio quality in the coming quarters, despite current pressures [29][60] Other Important Information - The company has made significant investments in technology, with a 16% increase in tech-related expenses, indicating a focus on modernization and efficiency [18][49] - The efficiency ratio was impacted by seasonal effects, but overall expense growth remained below inflation due to effective cost management [29] - The company is actively working on migrating legacy systems to more efficient platforms, which will require substantial investment [50] Q&A Session Summary Question: What is happening with the small and medium-sized enterprises (SMEs) delinquency ratio? - Management noted that the pressure observed in SMEs is primarily related to smaller companies rather than specific industries, and they are monitoring the situation closely [33][36] Question: How does the company view the relevance of branches in serving the low-income segment? - Management believes that while branches still play a role, the focus has shifted towards digital channels, and they are adjusting their branch footprint accordingly [40][43] Question: What is the company's strategy regarding low-income clients and the cost to serve? - Management emphasized the need to reduce the cost to serve significantly to make the low-income segment viable, with plans for further reductions in the coming years [58][59]

Earnings Presentation February 4 th, 2026 4Q25 BRGAAP 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-looking statements include, without limitation, any statement that may predict, forecast, suggest or imply future results, p ...

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Investors interested in undervalued bank stocks may consider Banco Santander-Brazil (BSBR) and Erste Group Bank AG (EBKDY) as potential options [1] Valuation Metrics - BSBR has a forward P/E ratio of 7.59, while EBKDY has a forward P/E of 11.01 [5] - BSBR's PEG ratio is 0.67, indicating a more favorable valuation compared to EBKDY's PEG ratio of 0.83 [5] - BSBR's P/B ratio stands at 0.96, compared to EBKDY's P/B of 1.08, suggesting BSBR is more undervalued relative to its book value [6] Investment Outlook - Both BSBR and EBKDY currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - BSBR has a Value grade of B, while EBKDY has a Value grade of C, further supporting the notion that BSBR is the superior value option at this time [6]

Financial Data and Key Metrics Changes - The company reported a net profit of BRL 4 billion for the quarter, marking a nearly 10% increase quarter-on-quarter and year-on-year, with a profitability ratio of 17.5% [4][27] - Expenses grew by only 0.2% quarter-on-quarter and decreased by 0.5% year-on-year, indicating effective expense management [6][27] - The efficiency ratio increased slightly but remains at a better level, with a year-on-year improvement of 140 basis points [6][27] Business Line Data and Key Metrics Changes - Client net interest income (NII) increased by 2.7% quarter-on-quarter and 11.1% year-on-year, while market NII dropped due to market conditions [5][23] - Fees grew by 6.7% quarter-on-quarter, with strong diversification across different fee lines [5][25] - Consumer finance continues to grow at double digits annually, with a 43% year-on-year growth in fees, particularly in insurance [15][16] Market Data and Key Metrics Changes - The total customer base exceeded 73 million, reflecting a 7% year-on-year growth [8] - The company reported a significant increase in active customer engagement, with a record individual NPS of 61 points and a corporate NPS of 52 points [8] Company Strategy and Development Direction - The company aims to build a more diversified and resilient operation, focusing on customer-centricity and digital transformation [7][14] - The "One App" initiative is a key strategic focus, designed to enhance customer experience and streamline interactions [12][36] - The company is committed to disciplined capital management and credit portfolio diversification to achieve higher profitability [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate short-term volatilities and maintain sustainable profitability [28][30] - The macroeconomic environment remains challenging, with expectations of continued high interest rates impacting funding [52][78] - The company is focused on improving customer satisfaction and maintaining a disciplined approach to credit origination [30][50] Other Important Information - The company has implemented AI-driven initiatives to enhance customer interactions and improve operational efficiency [10][31] - There is a strong emphasis on hyper-personalization in customer service, with over half of digital interactions now being personalized [9][10] Q&A Session Summary Question: Expected effects of the One App implementation - Management believes the One App will significantly enhance customer experience and reduce costs through more digital interactions [34][35] Question: Cost of risk and credit quality - Management confirmed no changes in credit policies and emphasized a disciplined approach to managing the loan portfolio [41][42] Question: Risk appetite and portfolio growth expectations - Management indicated a focus on growing in high-profitability segments while maintaining a disciplined approach to credit risk [48][50] Question: Market NII sensitivity and future expectations - Management acknowledged the impact of fewer business days and high interest rates on market NII, with expectations for gradual improvement [81][85]