Banco Santander (Brasil) (SANB4) investor relations material

Executive summary

• Net profit for 1Q26 was R$3.8 billion, down 7.3% quarter-on-quarter and 1.9% year-on-year, while profit before taxes reached R$4.6 billion, up 5.4% sequentially but down 3.5% year-on-year.

• ROE was 16.0%, a decrease of 1.6 p.p. quarter-on-quarter and 1.5 p.p. year-on-year, with a target to reach 20% in the coming years.

• Total revenues grew 0.8% sequentially and 0.9% year-on-year to R$21.2 billion, with net interest income up 3.1% quarter-on-quarter but down 0.7% year-on-year.

• Customer base expanded to 75.2 million, up 6% year-on-year, with a focus on active and high-income clients and the launch of Santander Rewards to deepen engagement.

• Expenses remained flat sequentially and up 0.9% year-on-year, reflecting strict cost control.

Financial highlights

• Net interest income totaled R$15.8 billion, up 3.1% quarter-on-quarter but down 0.7% year-on-year, driven more by market NII than client NII.

• Fee income was R$5.4 billion, down 5.5% sequentially due to seasonality but up 5.8% year-on-year, led by cards and insurance.

• Efficiency ratio improved to 37.7%, down 1.1 p.p. sequentially and up 0.5 p.p. year-on-year, with nearly zero expense growth.

• Cost of risk remained stable at 3.73% both sequentially and year-on-year.

• CET1 Basel ratio at 11.2% and total Basel/BIS ratio at 15.2%, supporting continued capital distribution.

Outlook and guidance

• Continued focus on growing high-income and SME segments, with a goal of double-digit growth in these areas.

• Ongoing derisking of low-income portfolios expected to complete by 2027, with a shift toward more collateralized and higher-quality assets.

• Expectation to absorb all DTAs by 2027–2028, depending on commercial activity.

• Continued investment in technology, automation, and AI for efficiency and growth.

• Cost of risk expected to remain stable, with potential for reduction in the medium to long term as portfolio quality improves.