Santander Brasil(US:BSBR)2024-01-31 17:11Financial 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]