Banco Santander (Brasil) (SANB4) investor relations material

Executive summary

• Net profit reached R$3.7 billion, up 9.8% year-over-year but down 5.2% sequentially, with ROE/ROAE at 16.4%, reflecting a challenging macroeconomic environment and positive business evolution.

• Customer base expanded 7% year-over-year to nearly 72 million, with active and primacy customers up and NPS scores at record highs.

• Strategic focus on digital transformation, technology investment, and operational efficiency, driving productivity and customer experience.

• Profitability targets remain high, with management aiming for 20-21% ROE in coming years through efficiency and customer-centric strategies.

• Business evolution centered on portfolio management, unified digital journeys, and revenue diversification.

Financial highlights

• Net income/profit rose 9.8% year-over-year to R$3.7 billion, with revenues outpacing expenses and efficiency ratio at a three-year best.

• Net interest income was R$15.4 billion, up 4.4% year-over-year, with client NII up 1.9% in the quarter.

• Fee income rose 1.3% sequentially and 0.4% year-over-year, led by cards and asset management.

• Provisions/allowance for loan losses increased 7% quarter-on-quarter and 16.4% year-over-year, reflecting higher cost of risk.

• Expenses declined 2.5% sequentially but rose 1.5% year-over-year.

Outlook and guidance

• Management targets 20%+ ROE, focusing on efficiency, capital discipline, and selective portfolio growth.

• Expectation of continued top-line and fee growth, especially in cards, insurance, and capital markets.

• Efficiency agenda and digital transformation to drive sustainable profitability through 2026 and beyond.

• Focus on expanding high-value customer segments and maintaining strict cost control.

• Ongoing efforts to diversify revenue streams and improve asset quality, especially in Consumer Finance and SME segments.