Santander Earnings Presentation 3Q24 BRGAAP October 29吨, 2024 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 re ...

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Financial Data and Key Metrics Changes - The company's profitability year-on-year is 15.5%, an increase from 14.1% in the previous quarter, indicating a positive trend in ROE above the cost of capital [29][57] - Total revenues increased by 12% year-on-year, driven by NII and a strong performance in fees and commissions [90] - Provisions dropped in both quarterly and annual comparisons, reflecting improved credit quality and management [56][88] Business Line Data and Key Metrics Changes - The loan portfolio grew by 8% year-on-year, with notable increases in the credit card portfolio (4% growth) and payroll loans (2% growth) [84] - Fees and commissions reached all-time highs this quarter, with quarterly growth of 6% and annual growth of almost 18% [54] - The consumer finance segment is experiencing significant transformation and growth, particularly in auto loans, which grew 4.5% in the quarter [85][39] Market Data and Key Metrics Changes - The company holds a 21% market share in consumer finance and originates nearly 90% of all auto loans in Brazil, indicating strong market positioning [39] - The NPL (Non-Performing Loans) ratio improved to 1.2%, reflecting better quality in origination [88] - The loan-to-deposits ratio reached an all-time high of 93%, showcasing effective funding management [87] Company Strategy and Development Direction - The company aims to diversify its funding mix from wholesale to retail, focusing on enhancing its investment platform [45] - A strategic emphasis is placed on customer centricity, aiming to improve client relationships and experiences through technology [59][65] - The company is committed to achieving mid to high teens ROE in the coming quarters, with a long-term goal of reaching around 20% [14][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic and complex nature of the business environment, emphasizing the need for continuous innovation to meet consumer demands [2] - The company is focused on maintaining profitability while pursuing growth, ensuring a balanced approach to portfolio management [11][13] - Management expressed confidence in achieving consistent growth and solid results in the upcoming quarters, despite market volatility [61][92] Other Important Information - The company has launched a new digital experience aimed at reactivating inactive customers, which is expected to enhance engagement and profitability [68][81] - The introduction of the "Free" offering is seen as a powerful tool for mass income offerings, aimed at increasing activation and conversion rates [120] Q&A Session Summary Question: What is the strategy for SMEs and the increase in delinquency? - Management aims to double the SME business in the coming years, emphasizing improved risk management through a network of experts [124][126] Question: How will fees and commissions grow in the future? - Growth in fees and commissions is driven by new client acquisition and adjustments for inflation, with a positive outlook for both individuals and companies [113][114] Question: What is the outlook for credit card performance? - The credit card segment is expected to grow with a focus on quality and client satisfaction, moving towards a more integrated product offering [104][107]

Financial Data and Key Metrics Changes - Net Interest Income (NII) grew by 14.5% year-on-year and 7.3% quarter-on-quarter, indicating a positive performance in both client and market NII [56][57] - Total revenues increased by 14% year-on-year, driven by NII and fees, leading to a net income of BRL3 billion, up 41% in 12 months [68] - Return on Equity (ROE) improved to 14.1%, reflecting a solid balance sheet [68] Business Line Data and Key Metrics Changes - The retail credit portfolio grew by 5%, with significant contributions from auto loans and SMEs [59] - The private securities and guarantees portfolio saw a remarkable growth of 23% year-on-year [59] - Agribusiness segment reported a 39% growth year-on-year, highlighting its importance in the company's strategy [60] Market Data and Key Metrics Changes - The loan-to-deposit ratio remains at approximately 94%, showcasing strong funding management [62] - Time deposits and real estate LCI and agribusiness LCA credit notes contributed to a 10% growth in liabilities year-on-year [61] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and improving credit quality, with a strategy defined in 2022 and refined in 2023 [4][24] - A new mass retail strategy, "Comeca Agora," was launched to enhance customer engagement and service delivery [54][74] - The company aims to grow its Select customer base from 1 million to 2 million, emphasizing the importance of high-income clients [28][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the NII and overall revenue growth throughout 2024, supported by a diversified portfolio and improved credit quality [71][72] - The company is committed to a multichannel approach, integrating physical and digital services to enhance customer experience [73][74] Other Important Information - The efficiency ratio improved by 3.3 percentage points, now below 40%, indicating effective expense management [11] - The company is actively monitoring the agribusiness segment on a case-by-case basis, acknowledging varying performance across different crops [6] Q&A Session Summary Question: Net funding dynamics and AAA channel performance - Management highlighted strong net inflows through the AAA channel, indicating a positive funding environment despite some challenges in the private segment [78][80] Question: Market NII evolution and Selic rate impact - Management noted that the positive performance in market NII is a result of portfolio repricing and a reduction in the Selic rate, with expectations for continued improvement [87][89] Question: Payroll loans and open finance strategy - Management reaffirmed the importance of payroll loans for customer loyalty and profitability, viewing open finance as an opportunity for growth rather than a threat [96][98] Question: Growth in Select customer segment - Management emphasized the impressive growth in the Select segment and the goal to reach 2 million clients, which would position the company above market leaders [106]

Santander Forward-looking statements include, without limitation, any statement that may predict, forecast, suggest or imply future results, performance or achievements, and may include terminology such as "believe", "anticipate", "expect", "estimate", "could", "forecast", "potential", "will likely result", or others that have similar meaning. Santander 1Q24 Results Highlights 4 Focus on becoming the primary bank for customers in their financial decisions Loyal customers | --- | --- | --- | --- | --- | |--- ...

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Financial Performance - Consolidated net income for 2023 was R$9,499 million, a decline of 33.8% compared to R$14,339 million in 2022[693]. - Total income for 2023 was R$65,864 million, down 0.9% from R$66,475 million in 2022[693]. - Net interest income for 2023 was R$46,884 million, a decrease of 1.3% from R$47,503 million in 2022[693]. - Administrative expenses for 2023 rose to R$19,563 million, a 7.3% increase from R$18,240 million in 2022[700]. - Personnel expenses totaled R$10,814 million in 2023, reflecting a 9.3% increase from R$9,897 million in 2022[701]. - Total income for 2023 was R$56,389 million, a decrease of 1.5% from R$57,237 million in 2022[757]. - Net interest income for 2023 was R$44,652 million, a decline of 2.1% from R$45,618 million in 2022, reflecting a selective credit strategy[757]. Credit Quality and Risk - Impaired assets totaled R$39.9 billion as of December 31, 2023, representing an increase from R$39.2 billion in 2022, with impaired assets as a percentage of total loans at 7.2%[611]. - The allowance for credit losses to total loans outstanding decreased to 6.4% as of December 31, 2023, down from 6.7% in 2022[619]. - The coverage ratio for allowances for impairment losses increased to 46.6% in 2023, compared to 46.3% in 2022[610]. - Net loan charge-offs as a percentage of total loans rose to 4.8% in 2023, up from 3.5% in 2022[611]. - The total amount of loans past due for less than 90 days but not classified as impaired was R$24,387 million as of December 31, 2023, compared to R$23,052 million as of December 31, 2022[637]. - The ratio of nonperforming loans to individuals decreased to 3.7% in 2023 from 3.9% in 2022, indicating improved credit quality[672]. Loan Portfolio and Growth - The total loans outstanding increased to R$551.54 billion as of December 31, 2023, compared to R$524.66 billion in 2022[618]. - The total credit risk exposure portfolio increased by R$55.3 billion to R$719.8 billion as of December 31, 2023, compared to R$664.5 billion in 2022[617]. - Loan Portfolio to customers reached R$552 billion as of December 31, 2023, an increase of 5.1% compared to 2022, driven by growth in individual and corporate loan portfolios[715]. - Total outstanding credit increased to R$5,789 billion in 2023, up from R$5,361 billion in 2022, representing a growth of 8.0%[674]. Economic Environment - The Brazilian GDP growth for 2023 was 2.9%, slightly down from 3.0% in 2022[646]. - The SELIC rate ended 2023 at 11.75%, down from 13.75% in 2022[650]. - Inflation (IPCA) for 2023 was recorded at 4.6%, down from 5.8% in 2022[647]. - Economic and political crises in Brazil may adversely affect the company's credit portfolio growth and increase provisions for loan losses[771]. - The company faces uncertainties regarding the political scenario for 2024, which may negatively affect profitability, asset quality, portfolio expansion, and financing conditions[772]. Provisions and Impairment - Provisions for impairment losses decreased by 0.16%, totaling R$35,153 million as of December 31, 2023, compared to R$35,212 million as of December 31, 2022[632]. - Impairment losses on financial assets (net) were R$28,008 million in 2023, an increase of 12.8% from R$24,829 million in 2022[704]. - Provisions (net) surged to R$4,424 million in 2023, a 264.0% increase from R$1,215 million in 2022, mainly due to higher labor contingencies[749]. Deposits and Funding - Customer deposits increased to R$583.2 billion as of December 31, 2023, up from R$490.0 billion in 2022, representing a growth of 19.0%[740]. - The total uninsured deposits amounted to R$295,248 million as of December 31, 2023, with R$102,461 million maturing in three months or less[625]. - Time deposits reached R$390.5 billion in 2023, a 14.8% increase from R$339.9 billion in 2022, accounting for 55.6% of total deposits[741]. Governance and Management - The company has a diverse board of directors with members having extensive experience in finance and management[777]. - The board of executive officers consists of a minimum of two and a maximum of 75 members, with various roles including Chief Executive Officer and senior vice presidents[775]. - Renato Ejnisman is responsible for Corporate and Investment Banking at Santander Brasil, having previously held CEO position at Next[809]. Strategic Initiatives - The company is investing in new technology development, allocating $D million towards R&D initiatives aimed at enhancing product offerings[804]. - Market expansion efforts are underway, targeting E new regions, which are projected to increase market share by F%[804]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the G sector[804].

FORM 6-K Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ___X___ Form 40-F _______ 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) Yes _______ No ___X____ Minutes of the Board of Directors Meeting held on February 26, 2024 CALL NOTICE AND NOTICE: The call notice was dismissed due to the attendance of the D ...

Financial Data and Key Metrics Changes - The company reported a net interest income (NII) growth of almost 5% year-on-year, with a quarter-on-quarter growth of 4.8% in Q4 2023 [31][67] - Total revenues grew by 11% year-on-year, while net income increased by 30% compared to Q4 2022 [67] - The cost of credit improved, closing the year at 4%, with a downward trend in delinquency indicators [64][36] Business Line Data and Key Metrics Changes - The expanded loan portfolio grew by 9% over the year, with significant growth in retail for individuals, vehicles, and SMEs [32] - Auto loans saw a quarter-on-quarter growth of 5.5%, marking the best performance of the year [33] - The company achieved a 7% growth in fees in Q4, reflecting positive performance across nearly all business lines [34] Market Data and Key Metrics Changes - The company’s funding grew by 15% in the full year and 2.6% in the quarter, with a loans-to-deposits ratio of 92%, the best level in its history [63] - The agribusiness portfolio reached almost R$54 billion, growing 42% year-on-year [27] - The consumer finance segment maintained a 21% market share, with ambitions to reach 25% [27] Company Strategy and Development Direction - The company is focused on customer-based monetization, aiming to enhance loyalty among its customer base of nearly 65 million [6] - There is a strong emphasis on portfolio diversification, reducing reliance on market credit, and focusing on customer segments with growth potential [5][39] - The strategic agenda includes a focus on high-income segments and a robust simplification agenda in mass retail, reducing the number of products by 31% [55][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth and portfolio diversification for 2024, highlighting a positive expectation for client and market dynamics [39] - The company is committed to maintaining a focus on profitability while expanding its offerings across various segments [40][41] - There is an ongoing effort to leverage technology and innovation, with 95% of operations running in the cloud and investments in generative AI [59][29] Other Important Information - The company aims to enhance its position in the payroll segment, which constitutes about 10% of its expanded loan portfolio [88] - The NPS (Net Promoter Score) is being prioritized as a key performance indicator, reflecting the company's commitment to customer satisfaction [22] Q&A Session Summary Question: What is the outlook for loan origination across different segments? - Management indicated a selective approach to loan origination, with a focus on high-income and mid-income segments, while also expanding into consumer finance and SMEs [43][44] Question: How does the company view the cost of credit and provisions for 2024? - Management expects further improvements in the cost of credit and aims for a lower allowance for loan losses as the portfolio accelerates [76][77] Question: What strategies are in place to defend against competition in payroll loans? - The company is focused on maintaining its competitive edge through advocacy for fair pricing and leveraging its established customer relationships [90][91]

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