Banco Santander (BSBR) 2 Feb 222021 Q4 Earnings call transcript

Good morning and thank you for waiting. Welcome to the conference call to discuss Banco Santander Brasil SA's results. Present here, Mr. Sergio Rial, Council Chairman, Mr. Angel Santodomingo, CFO, and Mr. Investor of Head Sechin, Relations. Gustavo will All the listen-only during on the participants presentation. mode be we'll session After will the begin which, question-and-answer be when provided. instructions further available Relations [Operator Banco available the for The live of also call Instructions] webcast presentation is Santander's at website is Investor download. www.santander.com.br/ri, where this at via would We received to answering have that inform will like priority. questions the webcast [Operator question. Instructions] Each participant is entitled to ask one

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as in morning Well, call Thanks the This of call. today's us going year, you is very be XXXX. joining to last CEO good for previous to my all.

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move that do a team We nothing to in scale. questions. loan with team a the billion. redefine pretty with of from see, were the which this that last as There macro-environment. me, I of to that be sale R$XXX environment in talking different but number R$XXX -- pursue. portfolio you to the the decision go that growth, an still able HSBC, about credit, we to just point company it was together things, of only were -- to definitely much keeping conscious a easy think control able basically possible And six which data And happened obsessed, were control, years, yet hasn't decided lot to knowing absolutely this only continues levels can is check. among speed perform one one, important other is of made which has of efficiency. were the the for in an but billion, This We we time still harder, And environment We're we formidable a we company. entire we not because to of would the the the not growth. a organic moved would company of at

to think the probably, we're reflection cost I another able of from management most just of this the industry team in point is likely, if culture six think not last over years. was that implement cost with a leading the efficiency the the income company view I the And remarkably that yet a strong. it's

we are years the ago. invest to is a trajectory it a think in being the trends of Agro, of of of spoken, the important initiated Brazil Agro industrial today I number note that also sector which number

last happened the last in decade. agenda couple years. an in for We Santander have for of involved Brazil ESG the in really This been

decade. commodity going the necessarily not subsidiaries, but One And commodity we on desk. something not in Today most the talk is I shied wasn't one the assisting risks, of from this only some which acquiring of energy the but strategy pretty from also years the a striving away not have customers it's businesses to being we're and any think pleasant. we one about and of a being desks have trading, much going financial of point entering other market; directional hedging So, taking that view. traditionally for innovating, that number something

think it we this I slide from time, that that's [Indiscernible] we IPO, So, ago If that what the shareholder to robust good to lagging the six era wasn't to of in compare relatively of a ROE, done. seen that basically more bringing of have the the of has as And XX to slide, the in than was, And move you to a next back profitability If still of has would happened last years the shareholder? the ending view. is perceived is is easier that XXXX, firms a industry, financial picture said It from point was you happened. a necessarily what happen. when were years one true, at behind going industry view. leading

committed shareholders. We incredibly to have our been

can year again. back underlying has you another can as you of dividend have see, the announced yield, record the see, we posting As we happened important payment a dividend -- we this this profitability. and will certainly And just on dividend

we the continue we -- sheet strengthen balance of the bank. to So, have

cap the is we the attempt that on to XX%. And regulators rating commitment the XXXX last billion Santander on number net the you distribution an the much industry. institution any to ROE of and R earnings today, financial We of towards have, $ very compare happened to what $ management in Brazil, shareholders, up X.X are to to that's to that years. slide XX.X as was moved a in was the we continue other printing with the year has couple over by an by slide in now shareholders Brasil entire next to can of if atypical And and by imposed dividends its terms when from an on billion due underpinned profit see, Moody's R the compared that highest XXXX

the slide speaks So, the doesn't business. slide the It is explanation. further really require of The next underlying I itself. trend addressing think for

been mean that incredibly true in point base database. on have the I are engaged beyond focused true, clients or transacting in with truly database a We By client growth. far the bank a

-- we and this million see number, million sort in almost we reached total you last as bank December new added XX% the of the X exact, to percent XXXX, and/or actually customers engaged with five, -- have when quarter, some product, in XX.X So, from only have of end level, customers that quarter, be in the and are of service. X.X two

done you through acquired channels, to in the million numbers give digital idea we think were you XX.X I customers December through channels Just XXXX. an -- that million that from don't transformation XX.X million it to in basically digital our ending besides see here, XX.X itself, moved but we've

We have distribution put Brasil, strength company, that's attention uniqueness of has the quite Santander on is I to of a of the its that and one be strength. bit think among other

the the style. rooms creating internally of making over serve or really sects easy society. directly amount enormous and that that digital that to any channel approach remote FX a of from as improve, is customer and channel shortening cycle, of sure call through as there's comfortable to experience, we both of different strengthening fits possible where a it’s channel I and It's couple committed omnichannel on something through the to been the itself distribution strategy, true we've So, it that think the last the years results decides best customer we're the platform, seeing

already as we mentioned, So, see happened here, reached but no us. where where the very peak you on work one ahead can without has that side, And but been has not were we that significant lot is growth only are, see again, we have quality, mountain, attention of accolade the a rapid to of customer we as improvement. there which to a dimension. the of There's the NPS

the permanent multi-product be slide, think and a quality of moving just signs, the show On I to we our I think a objective. nature quality platform of attempt on but -- work it's there's of is done. another here Due lot multi-service side, are our still to the next to that

we around range verticals that exceeded although is already So, Santander XX. yes, that XX NPS have now it's the true within have the

need Santander neither enterprises, portfolio to pay level a going our of quality the this see detractors that And doing number where one point-of-view. still a opportunities Mario that of companies not of capable a big and CEO the shows is the small in quality Brazil market is and the is customization from and new attention opportunity of and too is from nor I'm we completely it. one, perspective, that [Indiscernible] So, definitely biggest mid-sized sure but around only the the

-channel here we I where digital to X, is implementing attempt that Slide On as we're available you the digital omni attempt show side, we're and show this the speak.

of just people or interesting material for like the someone able a for for as will, political to This have very it's digital. the being a need, one. on if digital, literate, be a part remote the a there's in or So, and these going if a those all think the have have being problem it's less a see to real reality. in And there for strategy. physical we're need, asset distribution you there experience, very it's less digitally generation continue coverage challenge -- debate Customers to platform if about not of concerned leverage and going combination to part channels important assets, perspective it's banking to still are the of of practicality become the to we'll more not not Brazil a that that I But being who this is is being absolutely way population has younger present way. be of customer example, from is more, co-exist branches a because of able Europe, number is in who

digital I slide, a channels, So, that's acquisition think remarkable this the has on through XXX%. and customer increased number the

point what data of boast certain the on is very costs R$XX Of fact transparent is channel, that thrust couple that of here is over to of function the last course, a actually our was, customer even we're it incredibly been important a the how just percentages base of And your shows through but experiencing the this that coming is low growth a years. channel. behind always month allocated are digital fully we've the cost what

companies on an garde become continued more efficiency profitability than come. we to The point company need bank, the first note of to sort with obsession in on engaged, making transacting the important the come customer or the mean that doesn't hasn't that part company of remain to have that justifies of were bring over years who avant - this will But to of very you the cultural of the years just more from those view to efficiency from of loyal, size continue. started start the Cloud. the this industry more we exception financial amount. the the of couple It’s attempt R$XX of in So, the a to one really last

all which historically to in systems last We acquisitions. dependent the of legacy been all have our collapse of a remember, our XX% and cloud, of the in Santander actually particularly allowed have Brasil a systems result number over basically case, we or

of the So, I to deliver level today. helped think has digital seen you strategy have us growth Cloud that absolutely the

least, the our the understand the continue demographics expanded it the the Santander made number folks are too that our which the stores branches part the industrial of is to branches. another fundamentally of also one to we country. have of Brazil And was Brazil. we have we will physical like done more just we bring capacity plural importance, On here, paying to nothing commonly and We was brand of banks which and not of a an with what attempt attention And we necessarily interior of employees that Bank of was it's branches but believe to reside of be the society. to served is next launched that what every our future have not never familiar, more not economy. of an but believe or the call opposed future as have much by -- through very we and the channel, to exist. slide, the of decisions incredible growth of you sort than Go, call To public the been known, day goes net few, to in exception taken more able banks, ATMs. And really serve an throughout the to Brazil we by Most that a expand recently interior. Last to European centers general, the and cities where its view co-ops the private a to will and most us have physical cities it, that's nationwide continue are it's each show historically growth And have or of but transit the one of in strategy

the this So, of stores. concept, XX%

you can to eventually do cash go customer you withdrawal, So, can minutes and ATM the more transactions a don't at without when into go need customer time. that necessarily customer besides for desk, that sit be down, the actually actually to a or an having have so that branch, and on spend XX serve

that engagement the dialogue And customers you very of through is XX by XX, believe see commercial the quite slide, month circulating per XX, is us beautiful optimize and physical for sales, We the there Slide approximately a company. next opportunity our shown have with today we million, activity customers. so our much infrastructure, to which

because cards, terms to was absolutely year more had had R$XXX acquisitions have linked a is before. in of one new year that's number XX% a that terms we this terms of often pandemic, But of of it the use that so of of growth record number so in In can significant a it's we explain record people increase a some a to in fact that that and reaching billion; seen also cards customers. a a shows than record invoicing, year-on-year

the like of on able It's cards guidance, market to is side GAAP, the rest, that fees as Santander past. which but insurance direction to drives think us an is our end market the not in the upper coming note years year Brasil share would a with to it's single-digit XX%. I share XX% I So, to ambition we And of the from of ambition one be market share the that into able internal the table. headed in to for get was things

We have that grow marketplace, becomes If Alto. around launched the the Santander interesting highest to becomes Santander question continue and in Alto today, more you a the to of insured fast. data techs growth one one of that will growth an of very --

segments million to a have have different brand of So, issued as cards XXXX we years X variety launched we customers the ago. under FX, of

to great been country. the lot that in best was data as but organization. one to the not is fabric the It's in even it's work. something one piece the transformation, place a point ended for around the data work only dynamic one, part Next point, for that shows a but whole to the to of just We the put companies cultural and XXXX that attention the not XX place of culture of has

society. XX can of our ambition but the we numbers not positions have different think for companies extract December I speak So, -- comments, they themselves make I will of for level very few leadership of we have the of say in true are that terms that

slide numbers. into pass specificity word again, get now I more Thank for speaks So the around CFO our who to that, the will the itself. you. With

morning you, bit a Good the will Sergio. go now more session. to our can presentation, into Q&A which I all. Thank detail in we little you

and the increase I'll to market representing pressure from next period farther billion, expenses on quarterly XQ year. in a first relative inflation, see We XXXX slides. closed weakened may be as the the stable can net which P&L is a when account net by XX% where will a X% slide So, R$X.X billion, and can a decrease R$XX.X we full of the you of delivered explain in compared which explained with profit The see, increase. XQ year, profit record same full for last the you to the with result

highlight figures these me the in following Let slides. here in

here NII even On NII. the XX% customer revenue year. X% the higher year, by front, the NII. rose almost detail over Pull by the in customer Fees to down increased on

a best inflation our XX revenues. again, for expenses in currency XX% cards back the mix. side, of but equity -- with the came a the country. basis below XX%, SME recovery virtually performed the fourth collective -- on expanding quarter, volatility points, And individual’s improving from spreads to the demand. XX% Here volume Unit better foreign such is and portfolio the above normalized by points reached agreement in driven probably show and that to that XX% remained weakened XX year in in credit inflation positive in XX and a months, of at or and costs, by NII delivered again, in dynamics And which an as and levels as Despite during consistent by in reflecting the year. credit from expense growth strong Also can XX% note the grew retail, the XX to important Market in card provisions market which Efficiency bargaining good XX.X% loan management. higher this year-on-year return outperform a explaining NII Q, our funding is in that to the consequence this see in returning remained mortgage insurance positive XXXX, NII. September mix illustrates increased from slide, with at to grew the price billion the fluctuations, remain Q next It product the to stable to the growth. in our full the growth loan XX.X ratio we XX customer activity the mix. market year, the we and quarter -- extraordinary was in in year NII more almost X% slide customer contributed of XQ. activity results evolution above XX.X, the in is items boosted in pressure different increased Advancing in advanced by which due year. and basis clearly XX% R$XXX but benefiting quarter, the of portfolio in XX% well collateralized. to on the X%, part largely almost and in thanks with next almost X.X%, almost continued growing highlighted X.X% XXXX The to base

of liquidity in the lending corporate of since grew companies stable X.X% the by pandemic, and the Given year. beginning quarter in remained the conditions

in total performance. lowest capital funding targeting the funding also diversified a continue levels. end around our of relative bills quarter, history funding to stood comfortable at On a quarterly the hover level positive increased the had base, and side, to Financial funding. At the

Tier points equity XX.X% higher Sergio core the decreasing BIS and capital Our mentioned reached almost given distribution, X period, recent as to XX ratio in XX% basis due operations. to earnings our shareholders was

strong quarter Next another slide, year lower traditional account seasonality is loyalty. -- and previous our fees in following compared the fourth clearly growth had payment Q. X% supported in implementation. Brazil best insurance. by moving decreased The and were and X.X% with by by during This latter onto performers the peaks, this fees. only growth customer cost here a in XXXX. base years basically stronger explained performance We The the rapid Current system

saw the the which pressure had expenses. to impact higher Q, as of In And variable the below at fourth to we puts full mention, Looking I bargaining mentioned which we well also, activity, In X%, the costs. by important be rise collective on continues year, inflation. commercial expenses agreement, before.

review efficiency and to of We thorough have continue productivity. commitment a conduct our will given to conducted

this my the mentioned may best year-on-year we efficiency of I be as long for possible, ratio in I our presentation, it series level, industry. At As been as a to said, XX.X%. it that beginning the the remain now has in improved

adequate has asset level On we It well-controlled our with coverage a how solid quarter can management. remained the in see risk the ratio reflecting our at next slide, quality an evolved. and healthy, still points NPL both below XX under levels, delinquency XQ while 'XX. is remains may by increased to Short-term basis control see and you in -pandemic pre XX-day X.X%, as

for our dividend our loan can This full within performance of reasonable of year X.X%. that loss levels, of consistent You our remained direct the risk also see provisions lending cost is result a practices. with

And provision post As due of numbers, part -- that a the billion see seen updates. the good our performance, I a recoveries both generic -- previous XX Recovery in the the have grow red quarter by of mentioned in sale to in released risk modeling sorry, can have strong continues activity. portfolios. should continuation [Indiscernible] quarters, the as that good R$XXX you to almost driven million you that as columns, year, in our in the in as probably of we focus you well XX%, full reaching management on representing, X.X

macro will the Sergio of on main and six resulted areas: environment cycles So given all-time culture we least top some to term availability XXXX the but in and growth, long as an new forward, comprehensive industry, and channels platform showed will our second, results, unlock we consistency, greater going a robust manage will business and be equity not growth in in which challenges, our a and example high to support corporate to stronger for acquisition, focus finalizing society. last able sustainable past growth deeply main and likely that, customer the return takeaways, of committed profitability, successfully level the acknowledge present financial loyalty integration trans in in mentioned, XXXX, or actionality opportunities,

part that's the presentation. last about So the of

for open Q&A. we floor Thank think you. the I now

Q&A for will Sechin. pass you question session now the Please, now I Thank proceed you. making may the the Mr. Gustavo via investors webcast. analysts. and to start terms We'll Sechin, Mr. words

Good everyone. morning,

our session. Let's just Q&A start

We couple questions here. have of a

Tiago. The first (ph) group UBS. of questions Bachisco you, from Thank from Tiago comes

expectation feasible is Another the credit forward. going comment you of at Santander, profitability. COVID maintain bank XX% levels? dynamics your asset question than levels relates to cycle or XX the ended you XX% of there's of can quality XQ. The in with ROE to Brazil the Do an XXXX Tiago, higher It this pre ratio for the NPL XXXX? So, of see during - ROE

the So, -- I Angel and I take part. Can will Sergio? first

couple of significant cost happen. of is it I discussion Tiago, growing, the suspicious think one have in as the by years, would of over wasn't back as were that credit the here, not of the in around CEO in did and Brazil. so it's I in we Sergio I whole level things that last cost a definitely have remember rightly we credit, 'XX, And fortunately increases NPLs luck. experienced

have it's collateralized. point. that couple years of over That's incredibly We the portfolio created one last well a

auto point, where consumer expanded for yet years, the businesses the on couple you credit check. have Second cost we market, market, our the finance tripling when think, and of example, over the keeping size vehicle last in of its

Finance that mark-to-market in Now used one price has will vehicles take portfolio embedded But if cars necessarily have equity, of perhaps incredibly. the example, a sell related the terms improved fair embedded XXXX. doubled, and I loan-to-value for that a so is do the your you is Car facts, the is just market not observing, of side question of will that used the because Santander equity today has -- value in a of I

the I has credit cost were One would think in that in the that said make So, system increase. pandemic the have pause Brazil past a of the me unemployment. been that for of there to definitely will and factors number

a level so the big and of of is Brazilians. a alleviated we've One big, that actually part seen government-sponsored that programs thankfully the of number in things indebtedness

to finance, rate, gone debt. But down we years. competitiveness, So, new over of of in willingness of which necessarily a couple credit second, perhaps have will that into interest create open of the last players grant third, had so, a in. factors level new of haven't coming people, rightly we is One finance paying seen inflation, lot now has terms

structurally of see that levels the XXXX measures programs and acceptable by taken have just with to injected back the of credit quarter the think mentioned. XXXX cautionary 'XX. XXXX I was It's amounts XXXX we significant money see we're to most it's Again, were not I accounting. absolutely guidance. I could in helped navigate coming third of do likely XXXX? cost going XXXX we so of government-sponsored level. Where in I of much So, very the as Those see

but cards, good certainly we attention mentioned control, is we be control. Where absolutely the And that more quality quality pre grow. to So, sensitive concerned, to Vehicles, 'XX are and control. attentive -pandemic. under you portfolio. we're of closer under under paying of I phenomenal Nothing growth. the levels have should absolutely and Absolutely 'XX fact be the on to seeing

position. would So, an put me nothing today uneasy at that

and I mentioned several was collateralized, mentioning, are those that speaking that collateralize are mentioned, speech improving in the my XX% part individual's we products. guarantees, of of in retail as in collateralized XX%, Sergio of price that around portfolios

So that's that what 'XX, been part. cost our Putting one in numbers Brazil XXXX, X.X, to risk something Sergio 'XX, X.X, of in with X.X, 'XX. said, between X.X has

kind back Sergio which the in of the that and probably at as been So, performance programs is cost are this, the were of structural by the a mentioned. of affected looking mentioning, positively coming is you way that liquidity that seeing that that was that is X.X% clearly risk, the leveling have we and having

do that, adding that equity, an gradual be really address the that as words. manner, deterioration would say or? quality think yes, not That of be explosion something in we will to will want The intense. on something expect my I to So, you a Sergio, Return or

because CFO and XXXX not leave will it's behind the the wheel, be to up so. I I it

to the we years -- is have have some also payout that, dealing maintain we and with moving it on equity XX%, Obviously, to we bank capital XX%, high-single, of means in low-double, levels of growth the been have targeting last of how that of to which we to Okay. payout remuneration capital around last you that X, in weighted same where XX%. the as The around quarter. striving of XX.X% and we has If would be the be be the the past, now. the risk assets have will been in seen return we all that of Tier mean, in on you equity to XX%, maintain core in, those been equity that have been XX% mentioning deliver in grow discussion, return would in that the expecting levels of put waiting. I I region a on the

works to maintain all to the abilities means that formula, year a deliver in So, that similar during nice time at remuneration which the trying profit same shareholders. the we same our

Schroden next Bradesco Gustavo our comes question So, BBI. from from

responsible On sales, which any and the loan the quarter? the line what the the out, portfolio amount sell was increase yes, was cards for in more what Also, If debt did net impact quarter? is in in the etc? bank

here. go I'll

I do think sales from we time-to-time.

would necessarily So, nothing I that characterize.

So, quarter. sell second in correctly, back if we I we the sold I quarter, the fourth think also so but did in remember

I would nothing just call as what So, part -- of business usual.

previous already from the On addressed think in the asset I UBS. discussion I quality

we credit the beginning portfolio measures comfortable was could from credit Nothing the taken could So, that -- XXXX. because else right cautionary -- portfolio card incredibly think brought I the we've the taken add card here. of have we're of surprises and I our with we measures one have

critical that side, to. of XX% whatever, to we it are want And that the being know -- have XX% relative just a to, they our On we in, past, cards sold sold customers remember this to them. d the car add mentioned current in it's about

risk So can controller mentioning is number. in Sergio be seen -- the that's that

Okay.

from comes Arzilla of Bank Flavio question from next Our America.

faster lower on policies? any concession and billion Given growing Should in change the is and book provisions NPL the we credit in a that a loan or growth additional low then provision quarter expect or trended at there risk decreased R$X.X up, they're book? pace

a provision response we going But MPLs that of always in provision Basically, all addressed do, that is mentioned, discussion modeling to Also, we fact the and [Indiscernible] why with the I that. billion. I'm the already generic R$X.XX we to did in led That's did IFRS as you. so the did amount of modeling. in of provision, it. as to we the that of the use Yes, both need repeat we the overlay that total remaining not generic around and GAAP us

could of these in and I GDP expect growth an some In one. in in of terms with assets. in portfolio, I real credit as of [Indiscernible] credit means nominal portfolio X%-X%, terms X-X before what of would inflation high-single, mentioned that to That growing in terms, [Indiscernible] somewhere portfolios around grow the the and GDP accounts

low So or high single-digit even level.

risk should accompany already for I So, that. this our mentioned this of expected performance kind is year. cost of

comes Our Pactual. question BTG from Ricardo next from

fourth revenue lines, line quarter, expense. should As to operating expect we does other main customer saw acquisition Should in following the quarter? the in on there cards base in to credit higher waiting investments and we and up the continue higher customer a due expense the these correct? boost investments reflect were quarter These on third

will I go there.

I in to we're think profitable CEO to new improving, grow new credit growth. that growth -- card that much at doing to I He's Mario be as terms certainly an the ready continue committed be for and refining, going to much time CEO. to star not very of revenue growth committed expect the things do the [Indiscernible] north still and profitably the important line certainly to business. very

numbers That would the control. Expenses be be XX%, were we seen under in under third, much already terms of have answer say, which cost, yes. quarter in the post continue X% an of pretty I have to of fourth X%. X%, agreement Remember, of union almost in year. increases where the has happen hit to able to terms of control to we will employee what neighborhood the been back significant, So, would last environment the costs despite measure a in on

but it's to bank has capital the So, that asked I haven't there, worth but growth. really think the have will be noting, variable commitment achieve we to towards and the be basically the efficiency fueling on been I like that the for that we would under investment expense costs at will good markets still also, question, commissions, that example, that of are able significant think seen banking. position increase good not on Then I that

So, were last number These or either XX follow-on. we very of years. large done s have IPO a

was moved has like up we quality very still there [Indiscernible] of one in the really the the are sometimes much that transactions CEO, which of pursuing. the all by Mario, much very and And led transactions current

subsidiaries also whole same I'd in capital we're which some year, our of mention to investment [Indiscernible] And market performance phenomenal necessarily the So, disclosing. return, terms has a is company. last like had assets not because of necessarily banking not

acquisition, [Indiscernible], has to company which called an We focus was last which on year also have made important continued a collection.

state-of-the-art things the not is in just it strategy. model, risk collection that Cobranças. the acquisition Fozcobra is the their the management Thank performance And that not of of year, have terms something last call also you. that it's would people, with -- just strengthened I what explains good of One we

remember add some specific Normally that the you To on of XQ the mentioned, to line seasonality. have that do expenses we intense. that more is

rate. You from the be it somebody from more currency of banking intense cards or We call which okay. and to part tends exchange the will do have the the evolution, correspondents. the is explains which have do aligned, currency, like XQ, also also credit impact one the profit But the you some in say

portfolio I Mario, true, from Yeah, that's is recognized in appreciation job for retail have -- did so whole in last enough together -- another five Citibank, Stanley, without Gustavo, local I convinced a has done that candidates. Phenomenal choice. group, in have external of that for challenges I main true. Which thank is quality yet, was question the one completely maybe Morgan good necessarily that looked, part you, succession by created board, this over the was as questions of him. I'm the of the the the have. the not of Bank and a size. is, spent the five was that, candidates with broader is, strong banker, best Mario years? succession that's what as He the are board, in from But absolutely board, you, the There of but help question has that's America. years, a governance, stock, experience I -- the we true. that a groups for next very he with best the noiseless, One year Santander been number a basically the Goldman hired and had Mario Sachs. bank not of important process.

business. of a also basically the I the was first years. most the levels desire You're to and to showed lead Again, of Not But the to a he's last only him the company phase. which over he meet whole did turnaround six to years, to quarter. him that, the challenging more leadership of importantly, chance job, last been in -- committee he took executive -- gave new a of the but part over he going couple have the SME

generational no So, change. conceptually, a years XX I'm big big changes but XX. old; He's still

see done something that world own to will was will the But a he a We differently. certainly absolutely So, nice convinced in his only bring very way. not flavor He aspects. number I'm of succession one believes didn't in story the challenging the everyone team abruptly; as the of management entire because leaving from platforms most in country. everyone sees and company remained have the the there anybody opportunities,

bank, over being look done number company launched that merchants start, bank the active If scratch. cards to already we year million X.X use had subsidiaries from credit at able from you increasing of the be to which of XXX,XXX we benefits, card last have opened a all and

a is builders. culture being there able So, be of to

think And succession so, to point I a good mark. is

Thank Sergio. you,

for (ph) below next our and question ratio operating Goldman city with, comfortable dividends? feel that So, from do from imply level XX. comes what you Sachs. The Chito is now What does

equity XX.X%, XX%. -- equity risk-weighted the going said, range before and the around a asset BIS in core that What We're core levels feel little always of etc. a linked I to in bit of between what in full to the I between with I and is mentioned comfortable year. payout, XX% be to growth ratio

will probably be XX%. between and well in XX.X% the also ratio We XX% above the BIS

subordinated with mentioned before, an issuance given what ratios, on in the equity. to and of X remember, probably did you debt those the As return I we maintain November, and ratios, Tier

growth, asset will main said, payout levels will capital risk-weighted region the be in of those the of that I be the to maintain objective okay. Given XX%. probably But

you, Angel. Thank

rising pressure Our further comes on Goldman. from next rates? the from you question Chito expect (ph) from Do trading results

I probably speech, is address little a worth bit question. throughout but it is did mentioning. my a good Well, this

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our strong, XXXX this slope in in that the do expect that But I as would would is the [Indiscernible] we the continue compared care markets questions and given you NII Then negative result NII to know, do yes. a movements year. weaker we side and part to during the question into which rates to treasury year. and from way this weaker We the this that department, perform will compared of which in weaker you I that Going forward you over-performing deal have years, following [Indiscernible], markets and interest seen during XXXX, from for as have XXXX. tipping in XXXX. is in obviously know the of an in Q&A will should always a the expect strongly

Angel. you, Thank

a for how renegotiate a this there come you discuss actively has Is [Indiscernible] you for calling Renegotiations, BBA. their launched Santander rule from term of retail for retail from corporate look Can more program? Pedro question's for next [Indiscernible] national-wide clients to provision Our your renegotiation? Itau program much credits.

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to going don't that's and capacity the been stuff we how like a If very So last to years, on it buy no-no. we people that energy has bills, back so of know look and specially forth. more still food, inflation critical the at the of favorable, but is consumers two positive are the eroding behave

is One participant the via only. session query we gather Q&A open now. Please requests. wait telephone question while The per

Telles first comes Our from question with Credit Suisse. Marcelo

all I incredible how transformation, Hi. to I at I'd Good start part new role. the of that's you're it to pretty morning your best hello, case to And want a studies on and leading you've you for this done thanking Santander and which I'm everyone. of wish hard Sergio, really like the sure and transform be work just you lot bank. all will in know a work here,

competitive is the congratulations question My regarding again. So, environment.

spreads. that Of is right data potentially about concerned latest this that. And down course, year new potential not at seeing credit players like we're the bringing going always looking, it someone we're least all

impact forward, coming from on now especially we're versus you spreads you If credit could a banks? digital do banks? bit and that's on on the them going digital the compete see comment little how -- the seeing How

also that really to nice I happened the very few think call, so have I not I would were one the like I appreciate on you who words, and what probably the nice Marcelo, truly to you to words because could you give the you. of it's Okay. but you happened. thought are -- hear believed hear to back

believing. investment on a there's going think corporate you're say of side, going on going side, to banking of of improving don't don't couple today, a for of Brazil their done the investments happening demand -- years. be I the by of the think I wholesale a Marcelo, see lot balance companies bit over sheets who as pressure phenomenal see because job to last a thanks in for significant not private couple have in credit. the I to sector it. things, see I particularly I spreads in would So, on there's quite large the definition

I So, don't see borrowing necessarily. companies’

necessary. on see consumer side, don't company it. on the investment spreads banking not aside, So, pressure I

large But remain pandemic. have if in levels higher on a scarce. attention banks phenomenal I had don't and increase, in the the particularly done side during there think system don't level I general, coming from of we spreads but see be delinquency necessarily, That's care. balance their who the those corporates sheet. I the companies going job see. quarters. to on see demand pressure current credit do consumer naturally I to is on the see strengthen how going credit is The in

the we times my think, that's speak can't still possible. indeed that increases than the banks, times are people I that where six more I Now, is can them, world are about discussing be by digital think seven a discussion. fact, to a getting rates already but even broader I is reflection

we implications all know. there the be not the clear And system, in of particular important the to to co-relations all world the financial rest very value liquidity. to think it's of as the will I different

with like a the and me bit suggesting the I remember rates fundamentally double-digits older liquidity way past. of any 'XXs. change. that in U.S. in value I'm in back have bit little been the a but who than think in are that, the who Those will little me those not And have older seen

of part over of [Indiscernible] that's last to since just seems of decades arrived, and XXXX. inflation have So, the the trillions two knock-on effect

on going years to are some is and a of the and we're going to to for live consequences for years. So, of them come the going coming have this number

I to would thank you. interest Thank like for the call. our in everybody

We final give Sergio, to the questions, we to due words for you a couple the you. more Thank but have like remarks. would time,

you. Thank

First of a correct, I me just still all, be and to XX XX, as him friend. let to want so accurate, keep Mario's

I'm Mario joined I know us room. I if think -- has not in old So, in he now I'm in us, he's don't joined Paulo London. think the Sao probably XX and years today, but I

I as confidence Mario me ask as over would as one I I of be given the close and trust, level of CEO. you couple will own have wants me and challenge, I of as the have that to Santander. lack in I him the to everything will that am every to the each learned, you for Chairman. So, of make last ensure like putting for to total I'll Mario be be give doubt, his to And that years. decision to bear confidence, him

quarter. words the So, say to first and Mario, them few in need sure maybe you to a you're want going I'm

will just Sergio of we Thank has to one me discussions, will you. continue group this have investors, say the pleasure I definitely company get much, you great to with to begun each six wanted it transformation to opportunity going We're know ago. discussions. has be very and that discussions Sergio. given lead to years a bilateral

as of transformation it as committee, with to Sergio very will Executive very each great as continuous of We we call lead Thank should towards cycle a be beyond know well. blames as you. XX,XXX to be growth which and happy continues you well team the pleasure to a will be goes much. (ph) our new have a and I it And well get myself

Brasil come thank a has day. conference to and an you call participation have Banco end. We Santander for nice your