Banco Santander (Brasil) SA (BSBR) Q1 2025 earnings call Highlights: record profits and …

Appearance date: April 30, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Banco Santander (Brasil) SA (NYSE: BSBR) recorded a record gain of 3.4 billion, an increase of 19% compared to the first quarter of 2024.

• The company reached a strong CT1 capital ratio of 12.9%and reached an all-time high.

• The net provider rose almost double -digit, supported by strong customer activities and high -quality services.

• The diversified profit of the bank and the improvement of profitability enable a planned distribution of up to 10 billion US dollars to shareholders by buying shares.

• The retail profit rose strongly from year a year, which is due to solid income and improved efficiency.

• The provisions of the loss of loan rose by 7%compared to the previous year, with a certain deterioration in the deterioration in Brazil due to higher interest rates and inflation.

• The risk costs in Brazil are currently in the worst case and affected by a challenging macro environment.

• The expenditure rose by 6%and showed the need for further focus on cost management despite the growth of sales.

• The depreciation of the Brazilian real and Mexican peso introduced some distortions in financial reporting.

• The company is suspended with a potential regulatory headwind with an estimated effects of 60 basis points for the year.

Q: How should we think about net interest income (NII) if we make changes to the interest expectations in your core markets in the future? Could you also discuss M&A and asset disposal options? A: We have trust in the achievement of our fort target of 16.5% despite the macrovolatility. We repeat our NII guidelines and expect that they will have decreased slightly and slightly in the current euro. With regard to assets, we are in discussions about a potential sale of a share of 49% of Santander Polska, but there is still no certainty about an agreement. (Hector Grisi, CEO)

Q: Could you give more colors all year round for the cost development of the groups and the performance of DCB Europe? A: Despite the inflation and the FX printing for 2025, we want to deliver lower costs for 2025 compared to 2024. Retail and consumer costs are flat, with sales increasing by 2%. For DCB Europe, Nii is on the right track to benefit from lower interest rates and the market share grows. The effects of regulatory changes in Germany are unique. (Hector Grisi, CEO)

Q: Can you share the reasons for leaving Poland and how you intend to bring in the proceeds again? What percentage of your digital transformation have been completed? A: We review offers for our share of Poland, but can still provide details. With regard to the digital transformation, 80% of our customer base will be operated on our new backend system Gravity by the end of this year. We expect advantages from this transformation in the coming years. (Hector Grisi, CEO and Jose Garcia Canttera, CFO)