Banco Santander (Brasil) (SANB4) investor relations material

Executive summary

• Recurring net profit for 2Q26 was R$3.0 billion, down 20.4% quarter-over-quarter and 17.6% year-over-year, with ROAE at 12.5% and efficiency ratio at 39.3%, reflecting a challenging macroeconomic environment and higher cost of risk.

• Total revenues reached R$20.7 billion, a 2.7% decrease sequentially but a 0.4% increase year-over-year; active customers grew 3% year-over-year to 34.4 million, with total customers up 6% to 76.2 million.

• Strategic focus on rebalancing product and customer mix to improve risk-return profile, prioritizing quality growth and long-term profitability.

Financial highlights

• Loan portfolio grew 5.8% year-over-year and 1.3% quarter-over-quarter to R$714.8 billion, with cards up 13%, customer finance up 15.3%, and SMEs up 11.5%.

• Net interest income was R$15.3 billion, down 3.0% quarter-over-quarter and 0.4% year-over-year, impacted by mix effects and selective origination.

• Loan loss provisions rose 21.0% quarter-over-quarter and 6.5% year-over-year to R$8.3 billion, reflecting a challenging credit environment and one-off effects.

• Efficiency ratio closed at 39.3%, up 1.5 p.p. quarter-over-quarter and 2.4 p.p. year-over-year, pressured by lower revenue but supported by disciplined cost management.

• Fee income increased 2.5% year-over-year, with cards (+10.5%), consórcios (+23.8%), insurance (+6.4%), and brokerage (+14.8%) as highlights.

Outlook and guidance

• Revenue growth expected to remain subdued in the short term due to ongoing portfolio de-risking and macro headwinds; improvement in risk-adjusted NII and ROE anticipated by 2027.

• Accelerated adoption of AI and digital solutions is expected to drive customer engagement and operational efficiency.

• Payout policy of 50% to be maintained, with no planned changes despite current ROE pressure.