Report of Foreign Issuer (6-k)
26 Abril 2017 - 12:58PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2017
Commission File Number: 001-34476
BANCO SANTANDER (BRASIL) S.A.
(Exact name of registrant as specified in its charter)
Avenida Presidente Juscelino Kubitschek, 2041 and 2235
Bloco A – Vila Olimpia
São Paulo, SP 04543-011
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ___X___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
N/A
Table of Contents
Managerial Analysis of Results
–
BR GAAP
2
Data Summary for the Period
All information presented in this report considers the managerial result, except where otherwise indicated. It should be noted that, as of this quarter, some equity interests were accounted for using the equity method. Therefore, for better comparability, we have reclassified the 2016 information (please refer to page 28 of this report). The reconciliation with the accounting result can be found on pages 30 and 31.
MANAGERIAL¹ ANALYSIS - BR GAAP
|
1Q17
|
1Q16
|
Var.
1Q17x4Q16
|
4Q16
|
Var.
1Q17x4Q16
|
|
RESULTS (R$ million)
|
|
|
|
|
|
Net interest income
|
8,868
|
7,598
|
16.7%
|
7,825
|
13.3%
|
Fee and commission income
|
3,709
|
2,984
|
24.3%
|
3,740
|
-0.8%
|
Allowance for loan losses
|
(2,264)
|
(2,424)
|
-6.6%
|
(2,680)
|
-15.5%
|
General Expenses
2
|
(4,629)
|
(4,321)
|
7.1%
|
(4,831)
|
-4.2%
|
Personnel Expenses
|
(2,200)
|
(2,107)
|
4.4%
|
(2,397)
|
-8.2%
|
Administrative Expenses
|
(2,429)
|
(2,214)
|
9.7%
|
(2,434)
|
-0.2%
|
Managerial net profit
3
|
2,280
|
1,660
|
37.3%
|
1,989
|
14.7%
|
Accounting net profit
|
1,824
|
1,213
|
50.4%
|
1,537
|
18.7%
|
BALANCE SHEET (R$ million)
|
|
|
|
|
|
Total assets
|
713,517
|
668,750
|
6.7%
|
701,705
|
1.7%
|
Securities
|
166,131
|
151,377
|
9.7%
|
169,590
|
-2.0%
|
Loan portfolio
|
257,169
|
248,271
|
3.6%
|
256,883
|
0.1%
|
Individuals
|
93,986
|
85,593
|
9.8%
|
91,414
|
2.8%
|
Consumer finance
|
35,779
|
32,708
|
9.4%
|
34,777
|
2.9%
|
SME
|
32,511
|
34,064
|
-4.6%
|
32,799
|
-0.9%
|
Corporate
|
94,892
|
95,906
|
-1.1%
|
97,893
|
-3.1%
|
Expanded Credit Portfolio
4
|
325,426
|
312,018
|
4.3%
|
322,783
|
0.8%
|
Funding from Clients
5
|
300,678
|
283,141
|
6.2%
|
298,402
|
0.8%
|
Deposits (demand. saving and time)
|
145,750
|
134,503
|
8.4%
|
142,583
|
2.2%
|
Equity
6
|
58,994
|
54,428
|
8.4%
|
55,598
|
6.1%
|
PERFORMANCE INDICATORS (%)
|
|
|
|
|
|
Return on average equity excluding goodwill
6
- annualized
|
15.9%
|
12.6%
|
3 bps
|
13.9%
|
200 bps
|
Return on average asset excluding goodwill
6
- annualized
|
1.3%
|
1.0%
|
30 bps
|
1.2%
|
10 bps
|
Efficiency Ratio
7
|
44.9%
|
50.3%
|
-540 bps
|
49.3%
|
-440 bps
|
Recurrence Ratio
8
|
80.1%
|
69.1%
|
1100 bps
|
77.4%
|
270 bps
|
BIS ratio
|
15.8%
|
16.4%
|
-59 bps
|
16.3%
|
-49 bps
|
Tier I
|
14.7%
|
15.1%
|
-39 bps
|
15.1%
|
-40 bps
|
Tier II
|
1.1%
|
1.3%
|
-20 bps
|
1.2%
|
-10 bps
|
PORTFOLIO QUALITY INDICATORS (%)
|
|
|
|
|
|
Delinquency ratio (over 90 days)
|
2.9%
|
3.3%
|
-40 bps
|
3.4%
|
-50 bps
|
Individuals
|
4.0%
|
4.7%
|
-70 bps
|
4.1%
|
-10 bps
|
Corporate
|
1.9%
|
2.1%
|
-20 bps
|
2.7%
|
-80 bps
|
Delinquency ratio (over 60 days)
|
3.9%
|
4.2%
|
-30 bps
|
4.2%
|
-30 bps
|
Coverage ratio (over 90 days)
|
229.3%
|
200.1%
|
2920 bps
|
212.0%
|
1730 bps
|
OTHER DATA
|
|
|
|
|
|
Assets under management - AUM (R$ million)
9
|
257,362
|
213,191
|
20.7%
|
251,042
|
2.5%
|
Branches
|
2,254
|
2,263
|
(9)
|
2,254
|
-
|
PABs (mini branches)
|
1,166
|
1,176
|
(10)
|
1,167
|
(1)
|
Own ATMs
|
13,679
|
14,165
|
(486)
|
13,806
|
(127)
|
Shared ATMs
|
20,516
|
18,504
|
2,012
|
19,868
|
648
|
Total Customers (thousand)
|
35,909
|
33,926
|
1,983
|
35,524
|
385
|
Employees
|
46,897
|
50,142
|
(3,245)
|
47,254
|
(357)
|
¹ Excluding 100% of the goodwill amortization expense, the foreign exchange hedge effect and other adjustments, as described onpages 30 and 31.
² Administrative expenses exclude 100% of the goodwill amortization expense. Personnel expenses include profit-sharing.
³ Managerial net profit corresponds to the corporate net income, excluding the extraordinary result and the 100% reversal of the goodwill amortization expense that occurred in the period. Goodwill amortization expenses were R$ 456 million in 1Q17, R$ 451 million in 4Q16 and R$ 447 million in 1Q16.
⁴ Including other credit risk transactions (debentures, FDIC, CRI, promissory notes, floating rate notes, acquiring-activities related assets and guarantees).
⁵ Including Savings, Demand Deposits, Time Deposits, Debentures, LCA, LCI, Treasury Notes and Certificates of Structured Operations ("COE").
⁶ Excluding 100% of the goodwill balance (net of amortization), which in 1Q17 amounted to R$ 1,703 million, R$ 2,174 million in 4Q16 and R$ 3,625 million in 1Q16.
⁷ Efficiency Ratio: General Expenses / (Net Interest Income + Fee and Commission Income + Tax Expenses + Other Operating Income/Expenses).
⁸ Recurrence: Fee and Commission Income / General Expenses.
9
According to ANBIMA (Brazilian Financial and Capital Markets Association) criteria.
3
|
3
Strategy
Banco Santander Brasil is the only international bank with scale in the country. We are convinced that the best way to grow in a recurring and sustainable manner is by providing excellent services to enhance client satisfaction levels and attract more customers, making them more loyal.
Our
actions are based on establishing close and long-lasting relationships with customers, suppliers and shareholders. To accomplish that goal, our purpose is to help people and businesses prosper by being a Simple, Personal and Fair Bank, guided by the following strategic priorities:
Throughout 1Q17 we made progress on several strategic fronts, of which we highlight:
Co
mmercial acceleration:
|
Digital advances:
|
Strengthening the digital experience, at the end of March 2017:
|
not just to view account data. In addition to that, we launched Santander ID to replace the token for business clients.
|
§
we crossed the 2 million down
load
s mark of
Santander
Way
–
a card management app for Santander
c
ards.
|
§
for individuals, we added more functionalities to the app with the implementation of Santander ID, replacing the online security card, and launched a new Internet Banking platform, with more user-friendly navigation.
|
§
we launched the digital account opening process, which now can be done via mobile, tablet and the internet.
|
§
for clients of Santander Corretora we launched a new app, which allows for more agile access to account information, recommendations and investments.
|
§
thanks to all these actions, we continued to expand the number of digital customers, which reached 6.9 million, +1.8 MM in twelve months, and we kept growing our volume of digital transactions, which already account for 76% of the Bank's total transactions, an increase of 540 bps in the last twelve months.
|
§
for SMEs, we redesigned the "Santander Empresas" app, which is now transactional and
|
4
“
We are
an organization focused on
creating value for our customers
and,
based on their continued support, we
grow in a
sustainable manner
”
5
“
We are
an organization focused on
creating value for our customers
and,
based on their continued support, we
grow in a
sustainable manner
”
6
7
8
Next, we present our analysis of the managerial results.
MANAGERIAL FINANCIAL STATEMENTS¹
|
1Q17
|
1Q16
|
Var.
|
4Q16
|
Var.
|
(R$ million)
|
1Q17x1Q16
|
1Q17x4Q16
|
|
|
|
|
|
|
Net Interest Income
|
8,868
|
7,598
|
16.7%
|
7,825
|
13.3%
|
Allowance for Loan Losses
|
(2,264)
|
(2,424)
|
-6.6%
|
(2,680)
|
-15.5%
|
Net Interest Income after Loan Losses
|
6,604
|
5,174
|
27.6%
|
5,145
|
28.3%
|
Fee and commission income
|
3,709
|
2,984
|
24.3%
|
3,740
|
-0.8%
|
General Expenses
|
(4,629)
|
(4,321)
|
7.1%
|
(4,831)
|
-4.2%
|
Personnel Expenses + Profit Sharing
|
(2,200)
|
(2,107)
|
4.4%
|
(2,397)
|
-8.2%
|
Administrative Expenses²
|
(2,429)
|
(2,214)
|
9.7%
|
(2,434)
|
-0.2%
|
Tax Expenses
|
(906)
|
(804)
|
12.6%
|
(899)
|
0.8%
|
Investments in Affiliates and Subsidiaries
|
5
|
2
|
n.a.
|
2
|
n.a.
|
Other Operating Income/Expenses
|
(1,372)
|
(1,197)
|
14.7%
|
(860)
|
59.6%
|
Operating Income
|
3,411
|
1,838
|
85.6%
|
2,298
|
48.4%
|
Non Operating Income
|
(68)
|
26
|
n.a.
|
(5)
|
n.a.
|
Net Profit before Tax
|
3,343
|
1,863
|
79.4%
|
2,293
|
45.8%
|
Income Tax and Social Contribution
|
(973)
|
(205)
|
n.a.
|
(325)
|
n.a.
|
Minority Interest
|
(90)
|
1
|
n.a.
|
21
|
n.a.
|
Net Profit
|
2,280
|
1,660
|
37.3%
|
1,989
|
14.7%
|
|
|
|
|
|
|
¹ Excluding 100% of the goodwill amortization expense, foreign exchange hedge effect and other adjustments, as described on pages 30 and 31.
² Administrative expenses exclude 100% of the goodwill amortization expense.
Net interest income totaled R$ 8,868 million in the first quarter of 2017, growing 16.7% in twelve months (or R$ 1,270 million) and 13.3% in three months.
Revenues from loan operations advanced 5.6% in twelve months and 0.5% in three months. The year-over-year increase in revenues mostly reflects the higher average spread of the loan portfolio. In the quarter, the revenue growth is associated with an increase in the average volume. Deposit revenue climbed 54.3% in twelve months and 12.1% in three months. The good performance in both periods is a result of the liability management plan, as previously mentioned.
The "Others" interest income, which considers the result of the structural gap in the balance sheet interest rate and activities with treasury clients, among others, grew 37.6% in twelve months and 65.2% in three months. The increase in both periods is explained by stronger gains from market activities.
|
|
9
NET INTEREST INCOME
|
1Q17
|
1Q16
|
Var.
1Q17x1Q16
|
4Q16
|
Var
.
1Q17x4Q16
|
(R$ million)
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
8,868
|
7,598
|
16.7%
|
7,825
|
13.3%
|
Loan
|
5,590
|
5,293
|
5.6%
|
5,561
|
0.5%
|
Average volume
|
252,657
|
251,473
|
0.5%
|
249,059
|
1.4%
|
Spread (Annualized)
|
8.9%
|
8.4%
|
42 bps
|
8.9%
|
1 bps
|
Funding
|
977
|
633
|
54.3%
|
871
|
12.1%
|
Average volume
|
234,831
|
218,153
|
7.6%
|
224,459
|
4.6%
|
Spread (Annualized)
|
1.7%
|
1.2%
|
52 bps
|
1.6%
|
14 bps
|
Others¹
|
2,302
|
1,673
|
37.6%
|
1,393
|
65.2%
|
¹ Including other margins and the result from financial transactions.
Revenues from banking services and fees totaled R$ 3,709 million in the first quarter of 2017, reaching the highest level of fees for a first quarter, largely explained by the dynamics of our business. In twelve months, these revenues rose 24.3% (or R$ 725 million), due to credit cards and current account services, reflected in the higher number of loyal customer and increased transactionality. In the quarter, total revenues decreased by 0.8%, mostly attributed to card and insurance products, given the typical seasonality of the period.
Card fees amounted to R$ 1,154 million, growing 27.6% in twelve months, primarily owing to higher interchange revenues due to better transaction volumes. Compared with the previous quarter, these revenues fell by 3.2%, impacted by the effect of seasonality in the period.
|
|
Current account service fees came to R$ 654 million, up 32.6% in twelve months and 6.2% in three months. The improvement in both periods was fueled by the increase in transactionality and the realignment of our products.
Insurance fees stood at R$ 588 million, rising 21.2% in twelve months. Relative to the previous quarter, these revenues were 14.5% lower, affected by the seasonal effect of policy renewals, which are generally concentrated in the fourth quarter of the year.
Asset management fees amounted to R$ 263 million, advancing 5.9% in twelve months. In the quarter, these revenues declined by 1.0%, which was partially caused by a change in the mix of these revenues.
Brokerage and bond placement fees reached R$ 179 million, increasing 25.4% in twelve months and 23.0% in three months, mostly due to the good performance in capital markets.
|
10
FEES INCOME
|
1Q17
|
1Q16
|
Var.
|
4Q16
|
Var.
|
(R$ million)
|
|
|
1Q17x1Q16
|
|
1Q17x4Q16
|
|
|
|
|
|
|
Cards
|
1,154
|
904
|
27.6%
|
1,192
|
-3.2%
|
Insurance fees
|
588
|
485
|
21.2%
|
688
|
-14.5%
|
Current Account Services
|
654
|
493
|
32.6%
|
615
|
6.2%
|
Asset Management
|
263
|
248
|
5.9%
|
266
|
-1.0%
|
Lending Operations
|
370
|
338
|
9.6%
|
371
|
-0.3%
|
Collection Services
|
348
|
279
|
24.8%
|
330
|
5.6%
|
Securities Brokerage and Placement Services
|
179
|
143
|
25.4%
|
145
|
23.0%
|
Others
|
153
|
94
|
62.3%
|
132
|
15.7%
|
Total
|
3,709
|
2,984
|
24.3%
|
3,740
|
-0.8%
|
General expenses, including depreciation and amortization, came to R$ 4,629 million in the first quarter of 2017, registering growth of 7.1% (or R$ 308 million) in twelve months, influenced by higher administrative and personnel expenses. In the quarter, expenses fell by 4.2%, mainly owing to personnel expenses.
|
|
Depreciation and amortization expenses were R$ 490 million, increasing 19.1% in twelve months (or R$ 79 million) and 4.1% in three months, impacted by the normalization after the write-off of intangible assets occurred in previous periods.
|
Administrative and personnel expenses, excluding depreciation and amortization, totaled R$ 4,139 million in the first quarter of 2017, growth of 5.9% in twelve months and 5.1% lower in three months.
Personnel expenses, including profit-sharing, amounted to R$ 2,200 million in the first quarter of 2017, rising 4.4% in twelve months (or R$ 93 million), given higher expenses with compensation and charges, mainly due to the collective bargaining agreement. In the quarter, these expenses declined by 8.2%, thanks to the impact of lump-sum bonus paid to employees occurred in the previous quarter following the collective agreement of 2016.
Administrative expenses, excluding depreciation and amortization, totaled R$ 1,938 million in the first quarter of 2017, growing 7.5% in twelve months (or R$ 136 million), affected by higher expenses with specialized technical and third-party services and data processing. In the quarter, these expenses fell by 1.2%, mostly owing to lower expenses with advertising, promotions and publicity.
|
|
|
11
The efficiency ratio reached 44.9% in the first quarter of 2017, improving 540bps in twelve months and 440bps in three months. The good performance stems from our efforts to grow more efficiently, focused on recurring revenue growth, influenced by our business strategy and cost control.
|
|
|
EXPENSES' BREAKDOWN
|
1Q17
|
1Q16
|
Var.
|
4Q16
|
Var.
|
(R$ million)
|
|
|
1Q17x1Q16
|
|
1Q17x4Q16
|
|
|
|
|
|
|
Outsourced and Specialized Services
|
631
|
543
|
16.3%
|
563
|
12.0%
|
Advertising, promotions and publicity
|
66
|
62
|
6.3%
|
163
|
-59.2%
|
Data processing
|
428
|
385
|
11.2%
|
433
|
-1.3%
|
Communications
|
110
|
122
|
-9.8%
|
124
|
-10.7%
|
Rentals
|
185
|
179
|
3.4%
|
192
|
-3.7%
|
Transport and Travel
|
42
|
59
|
-28.6%
|
49
|
-12.8%
|
Security and Surveillance
|
150
|
177
|
-15.4%
|
165
|
-9.4%
|
Maintenance
|
57
|
63
|
-9.1%
|
59
|
-3.8%
|
Financial System Services
|
68
|
61
|
12.9%
|
64
|
6.5%
|
Water, Electricity and Gas
|
50
|
63
|
-19.6%
|
45
|
10.9%
|
Material
|
13
|
18
|
-28.3%
|
17
|
-25.6%
|
Others
|
137
|
72
|
92.1%
|
88
|
56.3%
|
Subtotal
|
1,938
|
1,803
|
7.5%
|
1,963
|
-1.2%
|
Depreciation and Amortization1
|
490
|
412
|
19.1%
|
471
|
4.1%
|
Total Administrative Expenses
|
2,429
|
2,214
|
9.7%
|
2,434
|
-0.2%
|
Compensation²
|
1,426
|
1,358
|
5.0%
|
1,570
|
-9.1%
|
Charges
|
401
|
380
|
5.5%
|
452
|
-11.4%
|
Benefits
|
355
|
368
|
-3.4%
|
375
|
-5.2%
|
Training
|
9
|
15
|
-41.7%
|
17
|
-47.0%
|
Others
|
9
|
(14)
|
-165.1%
|
(16)
|
-156.6%
|
Total Personnel Expenses
|
2,200
|
2,107
|
4.4%
|
2,397
|
-8.2%
|
|
|
|
|
|
|
ADMINISTRATIVE + PERSONNEL EXPENSES (excludes deprec. and amortization)
|
4,139
|
3,909
|
5.9%
|
4,360
|
-5.1%
|
|
|
|
|
|
|
TOTAL GENERAL EXPENSES
|
4,629
|
4,321
|
7.1%
|
4,831
|
-4.2%
|
¹ Excluding 100% of the goodwill amortization expenses, which totaled R$ 456 million in 1Q17, R$ 451 million in 4Q16 and R$ 447 million in 1Q16.
² Including Profit-Sharing.
12
Allowance for loan losses totaled R$ 2,264 million in the first quarter of 2017, down 6.6% in twelve months (or R$ 160 million) and 15.5% in three months.
These reductions are mainly related to a write-off in a specific case in the corporate segment and to the positive results of our model, which was able to keep the quality indicators of the loan portfolio under control.
As of the first quarter of 2017, in accordance with CMN Resolution No. 4,512 and Brazilian Central Bank Circular Letter No. 3,782, we began to consolidate in loan-loss expenses, provisions for financial guarantees.
|
|
|
Other net operating revenue and expenses amounted to R$ 1,372 million in the first quarter of 2017.
OTHER OPERATING INCOME (EXPENSES)
|
1Q1
7
|
1Q16
|
Var.
|
4Q16
|
Var.
|
(R$ million)
|
|
|
1Q17x1Q16
|
|
1Q17x1Q16
|
|
|
|
|
|
|
Expenses from cards
|
(398)
|
(335)
|
18.9%
|
(319)
|
24.7%
|
Net Income from Capitalization
|
88
|
70
|
25.5%
|
89
|
-0.9%
|
Provisions for contingencies¹
|
(524)
|
(460)
|
13.8%
|
(263)
|
99.0%
|
Others
|
(539)
|
(472)
|
14.2%
|
(367)
|
46.9%
|
Other operating income (expenses)
|
(1,372)
|
(1,197)
|
14.7%
|
(860)
|
59.6%
|
¹ Including tax, civil and labor provisions.
Taxes totaled R$ 973 million in the first quarter of 2017, with an effective rate of 29.1%, increasing 1,820bps in twelve months and 1,480bps in three months. In the quarter, no amount was set aside for the payment of interest on capital (“IoC") and, furthermore, we had a higher taxable result.
13
Total assets reached R$ 713,517 million at the end of March 2017, advancing 6.7% in twelve months and 1.7% in three months. Total equity was R$ 60,698 million in the same period. Excluding the goodwill balance, total equity came to R$ 58,994 million.
ASSETS
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
|
|
|
|
|
|
Current Assets and Long Term Assets
|
701,088
|
655,329
|
7.0%
|
688,673
|
1.8%
|
Cash and Cash Equivalents
|
5,405
|
5,463
|
-1.1%
|
5,723
|
-5.6%
|
Interbank Investments
|
52,642
|
51,481
|
2.3%
|
59,669
|
-11.8%
|
Money Market Investments
|
38,271
|
31,838
|
20.2%
|
47,479
|
-19.4%
|
Interbank Deposits
|
1,350
|
2,248
|
-40.0%
|
1,191
|
13.4%
|
Foreign Currency Investments
|
13,022
|
17,395
|
-25.1%
|
11,000
|
18.4%
|
Securities and Derivative Financial Instruments
|
166,131
|
151,377
|
9.7%
|
169,590
|
-2.0%
|
Own Portfolio
|
42,842
|
30,072
|
42.5%
|
60,041
|
-28.6%
|
Subject to Repurchase Commitments
|
73,180
|
82,498
|
-11.3%
|
70,175
|
4.3%
|
Posted to Central Bank of Brazil
|
2,634
|
6,712
|
-60.8%
|
3,045
|
-13.5%
|
Pledged in Guarantees
|
22,491
|
15,036
|
49.6%
|
12,250
|
83.6%
|
Others
|
24,984
|
17,059
|
46.5%
|
24,079
|
3.8%
|
Interbank Accounts
|
64,369
|
57,101
|
12.7%
|
62,900
|
2.3%
|
Lending Operations
|
240,629
|
232,145
|
3.7%
|
239,190
|
0.6%
|
Lending Operations
|
257,187
|
248,360
|
3.6%
|
256,898
|
0.1%
|
Lending Operations Related to Assignment
|
526
|
181
|
191.1%
|
624
|
-15.7%
|
(Allowance for Loan Losses)
|
(17,084)
|
(16,396)
|
4.2%
|
- 18,333
|
-6.8%
|
Others Receivables
|
169,123
|
154,830
|
9.2%
|
148,992
|
13.5%
|
Others Assets
|
2,788
|
2,932
|
-4.9%
|
2,609
|
6.9%
|
Permanent Assets
|
12,430
|
13,420
|
-7.4%
|
13,031
|
-4.6%
|
Investments
|
379
|
164
|
130.8%
|
178
|
113.4%
|
Fixed Assets
|
7,238
|
6,915
|
4.7%
|
7,551
|
-4.1%
|
Intangibles
|
4,812
|
6,341
|
-24.1%
|
5,303
|
-9.2%
|
Goodwill
|
1,703
|
3,625
|
-53.0%
|
2,174
|
-21.6%
|
Others Assets
|
3,109
|
2,717
|
14.5%
|
3,129
|
-0.6%
|
Total Assets
|
713,517
|
668,750
|
6.7%
|
701,705
|
1.7%
|
|
|
|
|
|
|
Total Assets (excluding goodwill)
|
711,814
|
665,125
|
7.0%
|
699,531
|
1.8%
|
14
LIABILITIES
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
|
|
|
|
|
|
Current Liabilities and Long Term Liabilities
|
649,710
|
608,360
|
6.8%
|
640,843
|
1.4%
|
Deposits
|
148,012
|
136,947
|
8.1%
|
145,705
|
1.6%
|
Demand Deposits
|
14,824
|
14,491
|
2.3%
|
16,006
|
-7.4%
|
Savings Deposits
|
36,114
|
34,964
|
3.3%
|
36,051
|
0.2%
|
Interbank Deposits
|
2,262
|
2,444
|
-7.5%
|
3,122
|
-27.6%
|
Time Deposits
|
94,813
|
85,048
|
11.5%
|
90,525
|
4.7%
|
Money Market Funding
|
160,419
|
148,702
|
7.9%
|
160,924
|
-0.3%
|
Own Portfolio
|
131,591
|
121,355
|
8.4%
|
123,578
|
6.5%
|
Third Parties
|
971
|
5,672
|
-82.9%
|
5,795
|
-83.2%
|
Free Portfolio
|
27,856
|
21,675
|
28.5%
|
31,551
|
-11.7%
|
Funds from Acceptance and Issuance of Securities
|
95,009
|
96,863
|
-1.9%
|
105,170
|
-9.7%
|
Resources from Real Estate Credit Notes, Mortgage Notes, Credit and Similar
|
89,096
|
88,553
|
0.6%
|
95,122
|
-6.3%
|
Funding from Certificates of Structured Operations
|
1,270
|
899
|
41.2%
|
1,236
|
2.8%
|
Securities Issued Abroad
|
3,494
|
6,443
|
-45.8%
|
7,722
|
-54.8%
|
Others
|
1,149
|
968
|
18.8%
|
1,090
|
5.4%
|
Interbank Accounts
|
1,390
|
1,276
|
9.0%
|
44
|
n.a.
|
Interbranch Accounts
|
2,210
|
2,397
|
-7.8%
|
3,887
|
-43.1%
|
Borrowings
|
28,040
|
32,127
|
-12.7%
|
30,600
|
-8.4%
|
Domestic Onlendings - Official Institutions
|
16,772
|
16,082
|
4.3%
|
16,803
|
-0.2%
|
Derivative Financial Instruments
|
21,794
|
14,297
|
52.4%
|
19,945
|
9.3%
|
Other Payables
|
176,064
|
159,669
|
10.3%
|
157,766
|
11.6%
|
Deferred Income
|
543
|
409
|
32.7%
|
565
|
-3.9%
|
Minority Interest
|
2,566
|
1,928
|
33.1%
|
2,526
|
1.6%
|
Equity
|
60,698
|
58,053
|
4.6%
|
57,772
|
5.1%
|
Total Liabilities
|
713,517
|
668,750
|
6.7%
|
701,705
|
1.7%
|
|
|
|
|
|
|
Equity (excluding goodwill)
|
58,994
|
54,428
|
8.4%
|
55,598
|
6.1%
|
Total securities amounted to R$ 166,131 million at the end of March 2017, rising 9.7% in twelve months – mainly due to an increase in government bonds and financial instruments – and declining 2.0% in three months.
SECURITIES
|
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
Public securities
|
|
122,479
|
116,536
|
5.1%
|
124,965
|
-2.0%
|
Private securities
|
|
18,672
|
17,785
|
5.0%
|
20,549
|
-9.1%
|
Financial instruments
|
|
24,981
|
17,056
|
46.5%
|
24,076
|
3.8%
|
Total
|
|
166,131
|
151,377
|
9.7%
|
169,590
|
-2.0%
|
15
The loan portfolio totaled R$ 257,169 million at the end of March 2017, growing 3.6% in twelve months (or R$ 8,898 million) and 0.1% in three months. In twelve months, the BRL fluctuation against the USD impacted the foreign currency loan portfolio, which also includes dollar-indexed transactions. Therefore, disregarding the impact of the exchange rate fluctuation, the total loan portfolio would have grown 5.2%.
The balance of the foreign currency portfolio, including dollar-indexed loans, was R$ 31,790 million at the end of March 2017, declining 21.9% in comparison with the balance of R$ 40,711 million in March 2016 and 7.5% relative to the balance of R$ 34,352 million in December 2016.
The year-over-year growth in the loan portfolio was primarily driven by individuals' portfolios, with credit card alongside payroll loans as the highlights, and consumer finance, as a result of our commercial strategy. The corporate portfolio decreased by 1.1% in twelve months and 3.1% in three months, given a write-off related to a specific case.
In the first quarter of 2017, the corporate portfolio accounted for 37% of the total portfolio, a reduction of 200bps in twelve months. The individuals’ portfolio represented 37% of the total portfolio, an increase of 300bps in twelve months, mostly influenced by our commercial strategy. Meanwhile, the consumer finance portfolio accounted for 14%, up 100bps.
16
MANAGERIAL BREAKDOWN OF CREDIT BY SEGMENT
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
|
|
|
|
|
|
Individuals
|
93,986
|
85,593
|
9.8%
|
91,414
|
2.8%
|
Consumer Finance
|
35,779
|
32,708
|
9.4%
|
34,777
|
2.9%
|
SMEs
|
32,511
|
34,064
|
-4.6%
|
32,799
|
-0.9%
|
Corporate
|
94,892
|
95,906
|
-1.1%
|
97,893
|
-3.1%
|
Total portfolio
|
257,169
|
248,271
|
3.6%
|
256,883
|
0.1%
|
Other credit related transactions¹
|
68,257
|
63,747
|
7.1%
|
65,900
|
3.6%
|
Total expanded credit portfolio
|
325,426
|
312,018
|
4.3%
|
322,783
|
0.8%
|
In light of changes of customers turnover, we reclassified the loan portfolio between SMEs and Corporate segments. Meanwhile, we also have changed the 2016 information in order to give better comparison.
1 - Includes debenture, FIDC, CRI , floating rate notes, promissory notes, acquiring activities related assets and guarantees.
The expanded loan portfolio, which includes other credit risk transactions, acquiring-activities related assets and guarantees, totaled R$ 325,426 million at the end of March 2017, growing 4.3% in twelve months (or R$ 13,408 million) and 0.8% in three months. Excluding the impact of exchange rate fluctuation, the expanded loan portfolio would have increased by 5.6% in twelve months.
Loans to individuals amounted to R$ 93,986 million at the end of March 2017, expanding 9.8% (or R$ 8,393 million) in twelve months and 2.8% in three months. The products that explain the portfolio growth in twelve months are credit card and payroll loans.
The payroll loans portfolio reached R$ 20,469 million, an increase of 31.7% in twelve months (or R$ 4,932 million) and 9.2% in three months.
The card portfolio ended the period at R$ 20,320 million, advancing 11.7% in twelve months (or R$ 2,133 million) and declining 1.7% in three months.
The balance of mortgage loans was R$ 27,059 million, rising 2.0% in twelve months (or R$ 532 million) and down 0.3% in three months.
|
|
|
17
The consumer finance portfolio, which is originated outside the branch network, totaled R$ 35,779 million at the end of March 2017, growing 9.4% in twelve months (or R$ 3,070 million) and 2.9% in three months. Of the total in this portfolio, R$ 29,642 million refers to vehicle financing for individuals.
The total vehicle portfolio for individuals, which includes operations carried out by both the financing unit (correspondent banks) as well as by Santander's branch network, showed growth of 6.5% in twelve months and 4.2% in three months, totaling R$ 31,465 million at the end of March 2017. It should be noted that the portfolio growth this quarter already reflects the increase in our sales, thanks to our digital platform "+ Negócios".
With "+ Negócios", Santander Financiamentos' sales platform started to operate under a digital model, providing a better experience for our clients, especially at the moment of securing a financing. This platform made us the first choice for car dealers. On top of that, we continue to strengthen our offering and positioning with complete solutions through Webmotors (leading vehicle advertisement portal) and AutoCompara (a web-based tool that allows customers to compare car insurance quotes and acquire insurance from different insurers).
|
|
|
|
|
The Corporate & SME loan portfolio stood at R$ 127,404 million at the end of March 2017, down 2.0% in twelve months (or R$ 2,566 million) and 2.5% in three months.
The corporate loan portfolio came to R$ 94,892 million, declining 1.1% (or R$ 1,013 million) in twelve months and 3.1% in three months. It should be noted that the portfolio was impacted by a write-off related to a specific case and by the effect of the exchange rate fluctuation. Excluding the effect of the latter, the portfolio would have increased by 2.7% in twelve months and decreased by 2.2% in three months.
The volume of loans to the SME segment was R$ 32,511 million, down 4.6% (or R$ 1,552 million) in twelve months and 0.9% in three months. In line with our commercial strategy, we continue to expand our offering of products for this segment with the goal of increasing customer loyalty.
|
18
MANAGERIAL BREAKDOWN OF CREDIT
|
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
PORTFOLIO BY PRODUCT
(R$ million)
|
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
|
|
|
|
|
|
|
Individuals
|
|
|
|
|
|
|
Leasing / Auto Loans¹
|
|
1,823
|
2,280
|
-20.0%
|
1,875
|
-2.8%
|
Credit Card
|
|
20,320
|
18,187
|
11.7%
|
20,677
|
-1.7%
|
Payroll Loans
|
|
20,469
|
15,537
|
31.7%
|
18,745
|
9.2%
|
Mortgages
|
|
27,059
|
26,527
|
2.0%
|
27,153
|
-0.3%
|
Agricultural Loans
|
|
3,860
|
3,593
|
7.4%
|
3,427
|
12.6%
|
Personal Loans / Others
|
|
20,456
|
19,469
|
5.1%
|
19,537
|
4.7%
|
Total Individuals
|
|
93,986
|
85,593
|
9.8%
|
91,414
|
2.8%
|
Consumer Finance
|
|
35,779
|
32,708
|
9.4%
|
34,777
|
2.9%
|
Corporate and SMEs
|
|
|
|
|
|
|
Leasing / Auto Loans
|
|
2,737
|
2,833
|
-3.4%
|
2,783
|
-1.6%
|
Real Estate
|
|
8,808
|
10,605
|
-16.9%
|
9,337
|
-5.7%
|
Trade Finance
|
|
22,815
|
18,917
|
20.6%
|
20,339
|
12.2%
|
On-lending
|
|
33,424
|
16,615
|
101.2%
|
12,891
|
159.3%
|
Agricultural Loans
|
|
6,772
|
2,761
|
145.3%
|
5,531
|
22.4%
|
Working capital / Others
|
|
52,848
|
78,239
|
-32.5%
|
79,810
|
-33.8%
|
Total Corporate and SMEs
|
|
127,404
|
129,969
|
-2.0%
|
130,692
|
-2.5%
|
|
|
|
|
|
|
|
Total Credit
|
|
257,169
|
248,272
|
3.6%
|
256,883
|
0.1%
|
Other Credit Risk Transactions with clients2
|
|
68,257
|
63,747
|
7.1%
|
65,900
|
3.6%
|
|
|
|
|
|
|
|
Total Expanded Credit Portfolio
|
|
325,426
|
312,019
|
4.3%
|
322,783
|
0.8%
|
¹ Including consumer finance, the auto loan portfolio for individuals totaled R$ 31,465 million in Mar/17, R$ 30,196 million in Dec/16 and R$ 29,543 million in Mar/16.
² Including debentures, FIDC, CRI, promissory notes, floating rate notes, acquiring-activities related assets and guarantees.
The balance of allowance for loan losses amounted to R$ 17,084 million at the end of March 2017, meaning a 4.2% rise in twelve months. Compared to the previous quarter, there was a decrease of 6.8%, attributed to a specific case in the corporate segment, whose was written-off as loss in the period.
The coverage ratio reached 229% at the end of March 2017, advancing 1,730bps in twelve months and 2,920bps in three months.
|
|
|
19
Loan renegotiations came to R$ 13,172 million at the end of March 2017, rising 1.7% in twelve months. These operations include loan agreements that were renegotiated to enable their payment under conditions agreed upon with customers, including renegotiations of loans that had already been written-off in the past. On a quarterly comparison, the renegotiated portfolio fell by 2.4%.
At the end of March, the coverage ratio of these loans with delays greater than 90 days reached 57.9%, a level considered adequate for these operations.
RENEGOTIATED PORTFOLIO
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
Mar/17xMar/16
|
|
Mar/17xDec/16
|
|
|
|
|
|
|
Renegotiated Portfolio
|
13,172
|
12,946
|
1.7%
|
13,497
|
-2.4%
|
Allowance for loan losses over renegotiated portfolio
|
(7,631)
|
(7,234)
|
5.5%
|
(7,851)
|
-2.8%
|
Coverage
|
57.9%
|
55.9%
|
200bps
|
58.2%
|
-30bps
|
|
|
|
|
|
|
|
We operate in accordance with our risk culture and international best practices, in order to protect our capital and guarantee the profitability of our businesses.
Our credit approval process, particularly the approval of new loans and risk monitoring, is structured according to our classification of customers and products, centered around our retail and wholesale segment.
At the end of March 2017, portfolios rated "AA" and "A" accounted for 74% of the total loan portfolio.
|
|
|
|
|
NPL Formation, calculated based on the balance of credit operations that are delinquent for over 90 days, the balance of the renegotiated portfolio and the balance of the portfolio written-off as loss in the quarter, reached R$ 2,748 million, 9.3% lower in twelve months and 3.8% in three months, attesting to the quality of the portfolio. The ratio between NPL Formation and the loan portfolio in the quarter was 1.1%, falling 10bps in twelve months and remaining stable relative to the previous quarter.
|
Note: NPL Formation is obtained from the change in balance of the portfolio delinquent over 90 days and the portfolio under negotiation, disregarding the portfolio written-off as loss in the period.
20
The over-90-day delinquency ratio reached, at the end of March 2017, 2.9% of the total loan portfolio, declining 40bps in twelve months and 50bps in three months. These changes were influenced by the evolution of our risk model during the last few years.
The delinquency ratio in the individuals’ segment was 4.0%, down 70bps in twelve months and 10bps in three months. In the corporate & SME segment, the over-90-day delinquency ratio came to 1.9%, falling 20bps in twelve months and 80bps in three months, mainly owing to a write-off related to a specific case this quarter, as well as the improvement in the quality of the portfolio.
|
|
|
.
|
|
The 15-to-90-day delinquency ratio stood at 5.5% at the end of March 2017, rising 70bps in twelve months and 120bps in three months. The increase in the quarter is partially related to the typical seasonality of the period in the individuals' segment.
Delinquency among individuals decreased by 10bps in twelve months and increased by 80bps in three months, reaching 6.9%. In the corporate & SME segment, the ratio advanced 130bps in twelve months and 150bps in three months, to 4.3%.
|
21
FUNDING
|
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
|
Mar/17xMar/16
|
Mar/17xDec/16
|
|
|
|
|
|
|
|
Demand deposits
|
|
14,824
|
14,491
|
2.3%
|
16,006
|
-7.4%
|
Saving deposits
|
|
36,114
|
34,964
|
3.3%
|
36,051
|
0.2%
|
Time deposits
|
|
94,813
|
85,048
|
11.5%
|
90,525
|
4.7%
|
Debenture/LCI/LCA¹
|
|
96,261
|
86,486
|
11.3%
|
90,426
|
6.5%
|
Financial Bills²
|
|
58,667
|
62,152
|
-5.6%
|
65,393
|
-10.3%
|
Funding from clients
|
|
300,678
|
283,141
|
6.2%
|
298,402
|
0.8%
|
¹ Repo operations backed by Debentures, Real Estate Credit Notes ("LCI") and Agricultural Credit Notes ("LCA").
² Including Certificates of Structured Operations ("COE").
Total customer funding amounted to R$ 300,678 million at the end of March 2017, growing 6.2% in twelve months (or R$ 17,537 million) and 0.8% in three months. These changes were influenced by funding from time deposits and debentures/LCI/LCA.
FUNDING VS. CREDIT
|
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
|
Mar/17xMar/16
|
Mar/17xDec/16
|
|
|
|
|
|
|
|
Funding from clients (A)
|
|
300,678
|
283,141
|
6.2%
|
298,402
|
0.8%
|
(-) Reserve Requirements
|
|
(61,751)
|
(55,555)
|
11.2%
|
(61,199)
|
0.9%
|
Funding Net of Reserve Requirements
|
|
238,927
|
227,586
|
5.0%
|
237,204
|
0.7%
|
Borrowing and Onlendings
|
|
17,212
|
16,154
|
6.5%
|
17,249
|
-0.2%
|
Subordinated Debts
|
|
8,495
|
17,380
|
-51.1%
|
8,781
|
-3.3%
|
Offshore Funding
|
|
31,095
|
38,498
|
-19.2%
|
37,876
|
-17.9%
|
Total Funding (B)
|
|
295,728
|
299,618
|
-1.3%
|
301,110
|
-1.8%
|
Assets under management¹
|
|
257,362
|
213,191
|
20.7%
|
251,042
|
2.5%
|
Total Funding and Asset under management
|
|
553,090
|
512,809
|
7.9%
|
552,152
|
0.2%
|
Total Credit (C)
|
|
257,169
|
248,271
|
3.6%
|
256,883
|
0.1%
|
C / B (%)
|
|
87.0%
|
82.9%
|
|
85.3%
|
|
|
|
|
|
|
|
|
C / A (%)
|
|
85.5%
|
87.7%
|
|
86.1%
|
|
|
|
|
|
|
|
|
|
¹ According to ANBIMA criteria.
The loan portfolio to customer funding ratio came to 85.5% at the end of March 2017, declining 220bps in twelve months and 60bps in three months.
The liquidity metric adjusted for the impact of reserve requirements and medium/long-term funding reached 87.0% in March 2017, advancing 410bps in twelve months and 170bps in three months.
The Bank is in a comfortable liquidity situation, with stable funding sources and an adequate funding structure.
|
|
|
22
The BIS ratio reached 15.8% at the end of March 2017, down 60 bps in twelve months and 50bps in three months, 530bps higher than the sum of the minimum Regulatory Capital and Capital Conservation requirements.
CET1 stood at 13.7%, falling 20bps in twelve months and 30bps in three months.
The twelve-month change in the ratio is largely explained by the RWA increase in Market and Operating Risk, partially offset by the Increase of reference equity.
It is important to note that, as of January 2017, in accordance with CMN Resolution No. 4,193/2013, the capital requirement was altered from 9.875% to 9.250% + conservation capital of 1.250%, totaling 10.5%. For Tier I Capital it is at 7.250%, while for CET1 it is at 5.750%.
|
|
OWN RESOURCES AND BIS
|
|
Mar/17
|
Mar/16
|
Var.
|
Dec/16
|
Var.
|
(R$ million)
|
|
|
|
Mar/17xMar/16
|
Mar/17xDec/16
|
|
|
|
|
|
|
|
Tier I Regulatory Capital
|
|
57,773
|
54,005
|
7.0%
|
56,264
|
2.7%
|
CET1
|
|
53,761
|
49,498
|
8.6%
|
52,137
|
3.1%
|
Additional Tier I
|
|
4,012
|
4,507
|
-11.0%
|
4,127
|
-2.8%
|
Tier II Regulatory Capital
|
|
4,098
|
4,667
|
-12.2%
|
4,281
|
-4.3%
|
Adjusted Regulatory Capital (Tier I and II)
|
|
61,871
|
58,672
|
5.5%
|
60,545
|
2.2%
|
Risk Weighted Assets (RWA)
|
|
392,503
|
357,112
|
9.9%
|
371,337
|
5.7%
|
Required Regulatory Capital
|
|
36,306
|
35,265
|
3.0%
|
36,670
|
-1.0%
|
Adjusted Credit Risk Capital requirement
|
|
29,162
|
30,566
|
-4.6%
|
31,310
|
-6.9%
|
Market Risk Capital requirement
|
|
4,192
|
3,042
|
37.8%
|
2,389
|
75.5%
|
Operational Risk Capital requirement
|
|
2,952
|
1,657
|
78.2%
|
2,971
|
-0.6%
|
Basel Ratio
|
|
15.76%
|
16.43%
|
-60bps
|
16.30%
|
-50bps
|
Tier I
|
|
14.72%
|
15.12%
|
-40bps
|
15.05%
|
-30bps
|
CET1
|
|
13.70%
|
13.86%
|
-20bps
|
14.04%
|
-30bps
|
Tier II
|
|
1.14%
|
1.31%
|
-20bps
|
1.15%
|
0bps
|
23
Corporate Governance
Santander Brasil has a free float of 10.6% and is currently listed on the traditional segment of the São Paulo Stock Exchange (Bolsa de Valores, Mercadorias e Futuros S.A. – BM&FBovespa). The Bank adopts the best practices in corporate governance, such as holding periodic meetings with the market, disclosing information on its Investor Relations website, Board of Directors comprised of 50% independent members, among others.
|
|
|
Ownership Structure
Santander’s ownership structure, as of March 31st, 2017:
OWNERSHIP STRUCTURE
|
Common shares
|
%
|
Preferred shares
|
%
|
Total share capital
|
Total
|
|
(thousand)
|
|
(thousand)
|
|
(thousand)
|
%
|
|
|
|
|
|
|
|
Santander Group ¹
|
3,444,228
|
89.4%
|
3,277,565
|
88.3%
|
6,721,793
|
88.9%
|
Treasury Shares
|
21,486
|
0.6%
|
21,486
|
0.6%
|
42,972
|
0.6%
|
Free Float
|
385,257
|
10.0%
|
413,061
|
11.1%
|
798,318
|
10.6%
|
Total
|
3,850,971
|
100.0%
|
3,712,112
|
100.0%
|
7,563,082
|
100.0%
|
¹ Considering the shareholding positions of: Grupo Empresarial Santander S.L. and Sterrebeeck B.V., as well as the shares owned by Management.
Stock Performance
SANB11
|
1Q17
|
1Q16
|
Var.
|
4Q16
|
Var.
|
|
|
|
1Q17x1Q16
|
|
1Q17x4Q16
|
|
|
|
|
|
|
Earnings (annualized) per unit (R$)
|
2.43
|
1.77
|
37.3%
|
2.12
|
14.5%
|
Dividend + Interest on capital per unit¹ (R$)
|
0.00
|
0.00
|
n.a.
|
1.26
|
n.a.
|
Closing price (R$)
1
|
27.7
|
17.0
|
63.1%
|
29.5
|
-6.4%
|
Book Value per unit (R$)
2
|
15.7
|
14.5
|
8.4%
|
14.8
|
6.0%
|
Market Capitalization (R$ bi)
3
|
104.0
|
63.7
|
63.1%
|
110.9
|
-6.3%
|
¹ Closing price refers to the historical value.
² Book Value excludes goodwill.
³ Market Capitalization: Total Units (Unit = 1 ON + 1 PN) x Unit closing price on March 31st, 2017.
¹ Stock Swap Offer completed on October 30th, 2014
24
Rating Agencies
Santander is rated by international
rating agencies and the ratings it receives reflect several factors, including
the quality of its management, its operational performance and financial
strength, as well as other variables related to the financial sector and the
economic environment in which the company operates, with its long-term foreign
currency rating limited to the sovereign rating. The table below presents the
ratings assigned by Standard & Poor's and Moody's:
|
|
Global Scale
|
|
Domestic
Scale
|
|
|
|
|
|
|
|
|
|
|
Ratings
|
|
Local Currency
|
|
Foreign Currency
|
|
Domestic
|
|
|
Long Term
|
Short Term
|
|
Long Term
|
Short Term
|
|
Long Term
|
Short Term
|
Standard & Poor’s (outlook)
|
|
BB (negative)
|
B
|
|
BB (negative)
|
B
|
|
brAA- (negative)
|
brA-1
|
|
|
|
|
|
|
|
|
|
Moody's (outlook)
|
|
Ba1 (negativa)
|
NP
|
|
Ba3 (negative)
|
NP
|
|
Aaa.br
|
Br-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratings assigned according to reports
published by the Rating Agencies.
25
Balance Sheet
ASSETS
|
|
Mar/17
|
Dec/16
|
Sep/16
|
Jun/16
|
Mar/16
|
(R$ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets and Long Term Assets
|
|
701,088
|
688,673
|
647,837
|
642,337
|
655,329
|
Cash and Cash Equivalents
|
|
5,405
|
5,723
|
6,089
|
5,209
|
5,463
|
Interbank Investments
|
|
52,642
|
59,669
|
63,960
|
64,278
|
51,481
|
Money Market Investments
|
|
38,271
|
47,479
|
57,407
|
47,349
|
31,838
|
Interbank Deposits
|
|
1,350
|
1,191
|
1,596
|
2,446
|
2,248
|
Foreign Currency Investments
|
|
13,022
|
11,000
|
4,957
|
14,482
|
17,395
|
Securities and Derivative Financial Instrument
|
|
166,131
|
169,590
|
153,135
|
149,988
|
151,377
|
Own Portfolio
|
|
42,842
|
60,041
|
62,315
|
42,820
|
30,072
|
Subject to Repurchase Commitments
|
|
73,180
|
70,175
|
55,444
|
65,301
|
82,498
|
Posted to Central Bank of Brazil
|
|
2,634
|
3,045
|
3,826
|
4,432
|
6,712
|
Pledged in Guarantees
|
|
22,491
|
12,250
|
11,992
|
14,032
|
15,036
|
Others
|
|
24,984
|
24,079
|
19,557
|
23,402
|
17,059
|
Interbank Accounts
|
|
64,369
|
62,900
|
64,573
|
61,478
|
57,101
|
Restricted Deposits:
|
|
61,920
|
61,368
|
62,641
|
59,667
|
55,724
|
-Central Bank of Brazil
|
|
61,751
|
61,199
|
62,472
|
59,499
|
55,555
|
-National Housing System
|
|
169
|
170
|
169
|
168
|
169
|
Others
|
|
2,449
|
1,532
|
1,933
|
1,810
|
1,376
|
Lending Operations
|
|
240,629
|
239,190
|
230,780
|
227,906
|
232,145
|
Lending Operations
|
|
257,187
|
256,898
|
247,322
|
244,290
|
248,360
|
Lending Operations Related to Assignment
|
|
526
|
624
|
738
|
162
|
181
|
(Allowance for Loan Losses)
|
|
- 17,084
|
- 18,333
|
- 17,280
|
- 16,546
|
- 16,396
|
Other Receivables
|
|
169,123
|
148,992
|
126,839
|
130,637
|
154,830
|
Foreign Exchange Portfolio
|
|
108,323
|
87,044
|
69,315
|
70,859
|
93,784
|
Tax Credits
|
|
26,490
|
26,767
|
27,828
|
26,701
|
30,085
|
Others
|
|
34,309
|
35,181
|
29,697
|
33,077
|
30,961
|
Others Assets
|
|
2,788
|
2,609
|
2,461
|
2,842
|
2,932
|
Permanent Assets
|
|
12,430
|
13,031
|
13,349
|
12,857
|
13,420
|
Investments
|
|
379
|
178
|
182
|
164
|
164
|
Fixed Assets
|
|
7,238
|
7,551
|
7,612
|
6,825
|
6,915
|
Intangibles
|
|
4,812
|
5,303
|
5,555
|
5,868
|
6,341
|
Goodwill
|
|
1,703
|
2,174
|
2,625
|
3,071
|
3,625
|
Other Assets
|
|
3,109
|
3,129
|
2,930
|
2,797
|
2,717
|
Total Assets
|
|
713,517
|
701,705
|
661,186
|
655,194
|
668,750
|
|
|
|
|
|
|
|
Total Assets (excluding goodwill)
|
|
711,814
|
699,531
|
658,561
|
652,123
|
665,125
|
26
LIABILITIES
|
|
Mar/17
|
Dec/16
|
Sep/16
|
Jun/16
|
Mar/16
|
(R$ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities and Long Term Liabilities
|
|
649,710
|
640,843
|
597,106
|
593,035
|
608,360
|
Deposits
|
|
148,012
|
145,705
|
140,865
|
134,548
|
136,947
|
Demand Deposits
|
|
14,824
|
16,006
|
15,452
|
14,917
|
14,491
|
Savings Deposits
|
|
36,114
|
36,051
|
34,764
|
34,517
|
34,964
|
Interbank Deposits
|
|
2,262
|
3,122
|
3,162
|
2,601
|
2,444
|
Time Deposits
|
|
94,813
|
90,525
|
87,483
|
82,513
|
85,048
|
Money Market Funding
|
|
160,419
|
160,924
|
152,403
|
152,759
|
148,702
|
Own Portfolio
|
|
131,591
|
123,578
|
107,834
|
120,342
|
121,355
|
Third Parties
|
|
971
|
5,795
|
17,347
|
6,424
|
5,672
|
Free Portfolio
|
|
27,856
|
31,551
|
27,221
|
25,992
|
21,675
|
Funds from Acceptance and Issuance of Securities
|
|
95,009
|
105,170
|
104,295
|
100,247
|
96,863
|
Resources from Real Estate Credit Notes, Mortgage Notes, Credit and Similar
|
|
89,096
|
95,122
|
95,322
|
92,611
|
88,553
|
Funding from Certificates of Structured Operations
|
|
1,270
|
1,236
|
1,110
|
980
|
899
|
Securities Issued Abroad
|
|
3,494
|
7,722
|
6,791
|
5,732
|
6,443
|
Others
|
|
1,149
|
1,090
|
1,072
|
923
|
968
|
Interbank Accounts
|
|
1,390
|
44
|
1,729
|
1,651
|
1,276
|
Interbranch Accounts
|
|
2,210
|
3,887
|
3,048
|
2,443
|
2,397
|
Borrowings
|
|
28,040
|
30,600
|
29,283
|
27,645
|
32,127
|
Domestic Onlendings - Official Institutions
|
|
16,772
|
16,803
|
16,615
|
15,934
|
16,082
|
National Economic and Social Development Bank (BNDES)
|
|
9,715
|
9,423
|
9,014
|
8,129
|
7,900
|
National Equipment Financing Authority (FINAME)
|
|
6,765
|
7,041
|
7,259
|
7,543
|
7,892
|
Other Institutions
|
|
292
|
339
|
342
|
262
|
289
|
Derivative Financial Instruments
|
|
21,794
|
19,945
|
15,020
|
18,049
|
14,297
|
Other Payables
|
|
176,064
|
157,766
|
133,850
|
139,760
|
159,669
|
Foreign Exchange Portfolio
|
|
107,967
|
86,753
|
69,235
|
66,533
|
88,552
|
Tax and Social Security
|
|
12,170
|
11,594
|
11,916
|
11,863
|
11,705
|
Subordinated Debts
|
|
481
|
466
|
454
|
8,675
|
8,379
|
Debt Instruments Eligible to Compose Capital
|
|
8,014
|
8,315
|
8,209
|
8,188
|
9,001
|
Others
|
|
47,433
|
50,638
|
44,037
|
44,502
|
42,032
|
Deferred Income
|
|
543
|
565
|
565
|
372
|
409
|
Minority Interest
|
|
2,566
|
2,526
|
2,194
|
1,938
|
1,928
|
Equity
|
|
60,698
|
57,772
|
61,321
|
59,850
|
58,053
|
Total Liabilities
|
|
713,517
|
701,705
|
661,186
|
655,194
|
668,750
|
|
|
|
|
|
|
|
Equity (excluding goodwill)
|
|
58,994
|
55,598
|
58,695
|
56,779
|
54,428
|
27
On January 1st, 2017, CMN Resolution
No. 4,517 of August 24th, 2016 went into effect, establishing the equity method
of accounting for equity interests in jointly controlled companies. Therefore,
for better comparability, we have reclassified our accounting information for
the year 2016, as shown below:
ACCOUNTING
PRO FORMA
|
1Q16
|
2Q16
|
3Q16
|
4Q16
|
2016
|
(R$
milhões)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Income
|
11,134
|
11,972
|
8,655
|
8,273
|
40,033
|
Allowance
for Loan Losses
|
(2,617)
|
(3,136)
|
(3,579)
|
(3,907)
|
(13,240)
|
Net
Interest Income after Loan Losses
|
8,518
|
8,835
|
5,075
|
4,365
|
26,793
|
Fee and
commission income
|
2,984
|
3,216
|
3,322
|
3,740
|
13,263
|
General
Expenses
|
(4,768)
|
(4,790)
|
(4,884)
|
(5,283)
|
(19,725)
|
Personnel
Expenses + Profit Sharing
|
(2,107)
|
(2,057)
|
(2,136)
|
(2,397)
|
(8,698)
|
Administrative Expenses
|
(2,661)
|
(2,733)
|
(2,748)
|
(2,885)
|
(11,027)
|
Tax
Expenses
|
(1,140)
|
(1,167)
|
(782)
|
(903)
|
(3,991)
|
Investments
in Affiliates and Subsidiaries
|
2
|
1
|
1
|
2
|
7
|
Other
Operating Income/Expenses
|
(1,107)
|
(1,079)
|
(1,120)
|
(493)
|
(3,799)
|
Operating
Profit
|
4,488
|
5,017
|
1,613
|
1,429
|
12,548
|
Non
Operating Income
|
26
|
(5)
|
20
|
(455)
|
(414)
|
Net Profit
before Tax
|
4,514
|
5,012
|
1,633
|
974
|
12,133
|
Income Tax
and Social Contribution
|
(3,303)
|
(3,610)
|
(113)
|
542
|
(6,484)
|
Minority
Interest
|
1
|
(55)
|
(85)
|
21
|
(117)
|
Net
Profit
|
1,213
|
1,347
|
1,436
|
1,537
|
5,533
|
Controlled companies accounted for by
the equity method of accounting: Cibrasec Companhia Brasileira de Securitização,
Norchem Participaçao e Consultoria S/A, Estruturadora Brasileira de Projetos
S/A, Campo Grande Empreendimentos, WebmotorsS/A, PSA Corretora de Seguros e
Serviços Ltda e Tecban-Tecnologia BancáriaS/A and controlled
companies.
28
Managerial Financial Statement Summary
For the 2016 period, the managerial financial statement below includes the accounting reclassifications mentioned on page 28.
MANAGERIAL FINANCIAL STATEMENT¹
|
1Q16
|
2Q16
|
3Q16
|
4Q16
|
2016
|
|
1Q17
|
(R$ million)
|
|
|
|
|
|
|
|
Net Interest Income
|
7,598
|
7,807
|
8,266
|
7,825
|
31,497
|
|
8,868
|
Allowance for Loan Losses
|
(2,424)
|
(2,515)
|
(2,837)
|
(2,680)
|
(10,456)
|
|
(2,264)
|
Net Interest Income after Loan Losses
|
5,174
|
5,292
|
5,430
|
5,145
|
21,041
|
|
6,604
|
Fee and commission income
|
2,984
|
3,216
|
3,322
|
3,740
|
13,263
|
|
3,709
|
General Expenses
|
(4,321)
|
(4,331)
|
(4,436)
|
(4,831)
|
(17,919)
|
|
(4,629)
|
Personnel Expenses + Profit Sharing
|
(2,107)
|
(2,057)
|
(2,136)
|
(2,397)
|
(8,698)
|
|
(2,200)
|
Administrative Expenses²
|
(2,214)
|
(2,274)
|
(2,300)
|
(2,434)
|
(9,222)
|
|
(2,429)
|
Tax Expenses
|
(804)
|
(810)
|
(822)
|
(899)
|
(3,335)
|
|
(906)
|
Investments in Affiliates and Subsidiaries
|
2
|
1
|
1
|
2
|
7
|
|
5
|
Other Operating Income/Expenses
|
(1,197)
|
(1,184)
|
(1,065)
|
(860)
|
(4,306)
|
|
(1,372)
|
Operating Profit
|
1,838
|
2,184
|
2,430
|
2,298
|
8,750
|
|
3,411
|
Non Operating Income
|
26
|
(5)
|
20
|
(5)
|
36
|
|
(68)
|
Net Profit before Tax
|
1,863
|
2,179
|
2,450
|
2,293
|
8,785
|
|
3,343
|
Income Tax and Social Contribution
|
(205)
|
(319)
|
(482)
|
(325)
|
(1,330)
|
|
(973)
|
Minority Interest
|
1
|
(55)
|
(85)
|
21
|
(117)
|
|
(90)
|
Net Profit
|
1,660
|
1,806
|
1,884
|
1,989
|
7,339
|
|
2,280
|
¹ Excluding 100% of the goodwill amortization expense, the tax hedge effect and other adjustments, as stated on pages 30 and 31.
² Administrative expenses exclude 100% of the goodwill amortization expense.
Under Brazilian tax rules, gains (losses) derived from exchange rate fluctuations on foreign currency investments are not taxable (tax deductible). This tax treatment leads to exchange rate exposure on the tax line. An exchange rate hedge position was set up with the purpose of protecting the net profit from the impact of foreign exchange fluctuations related to this exposure on the tax lines.
EXCHANGE HEDGE
|
|
1Q16
|
2Q16
|
3Q16
|
4Q16
|
2016
|
1Q17
|
(R$ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
3,434
|
3,648
|
(409)
|
41
|
41
|
967
|
Tax Expenses
|
|
(336)
|
(357)
|
40
|
(4)
|
(4)
|
95
|
Income Tax
|
|
(3,098)
|
(3,292)
|
369
|
(37)
|
(37)
|
(872)
|
29
Accounting and Managerial Results Reconciliation
For a better understanding of BR GAAP results, the reconciliation between the accounting result and the managerial result is presented below. It should be clarified that these adjustments, except for the amortization of goodwill and non-recurring items,
have no effect on net profit
.
ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ million)
|
1Q17
|
Reclassifications
|
Other Events
⁵
|
1Q17
|
|
Accounting
|
Exchange Hedge¹
|
Credit Recovery²
|
Amortization of goodwill³
|
Profit Sharing
|
Foreign exchange variation
4
|
Extraordinary
|
Managerial
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
|
10,541
|
(967)
|
(789)
|
-
|
-
|
83
|
-
|
8,868
|
Allowance for Loan Losses
|
(3,020)
|
-
|
839
|
-
|
-
|
(83)
|
-
|
(2,264)
|
NET INTEREST INCOME AFTER LOAN LOSSES
|
7,521
|
(967)
|
50
|
-
|
-
|
-
|
-
|
6,604
|
Fee and commission income
|
3,709
|
-
|
-
|
-
|
-
|
-
|
-
|
3,709
|
General Expenses
|
(4,765)
|
-
|
-
|
456
|
(319)
|
-
|
-
|
(4,629)
|
Personnel Expenses + Profit Sharing
|
(1,881)
|
-
|
-
|
-
|
(319)
|
-
|
-
|
(2,200)
|
Administrative Expenses
|
(2,884)
|
-
|
-
|
456
|
-
|
-
|
-
|
(2,429)
|
Tax Expenses
|
(1,000)
|
95
|
-
|
-
|
-
|
-
|
-
|
(906)
|
Investments in Affiliates and Subsidiaries
|
5
|
-
|
-
|
-
|
-
|
-
|
-
|
5
|
Other Operating Income/Expenses
|
(1,323)
|
-
|
(50)
|
-
|
-
|
-
|
-
|
(1,372)
|
OPERATING INCOME
|
4,147
|
(872)
|
-
|
456
|
(319)
|
-
|
-
|
3,411
|
Non Operating Income
|
(68)
|
-
|
-
|
-
|
-
|
-
|
-
|
(68)
|
NET PROFIT BEFORE TAX
|
4,078
|
(872)
|
-
|
456
|
(319)
|
-
|
-
|
3,343
|
Income Tax
|
(1,845)
|
872
|
-
|
-
|
-
|
-
|
-
|
(973)
|
Profit Sharing
|
(319)
|
-
|
-
|
-
|
319
|
-
|
-
|
-
|
Minority Interest
|
(90)
|
-
|
-
|
-
|
-
|
-
|
-
|
(90)
|
NET PROFIT
|
1,824
|
-
|
-
|
456
|
-
|
-
|
-
|
2,280
|
|
|
|
|
|
|
|
|
|
ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ million)
|
4Q16
|
Reclassifications
|
Other Events
⁵
|
4Q16
|
|
Accounting
|
Exchange Hedge¹
|
Credit Recovery²
|
Amortization of goodwill³
|
Profit Sharing
|
Foreign exchange variation
4
|
Extraordinary
|
Managerial
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
|
8,273
|
(41)
|
(709)
|
-
|
-
|
(85)
|
388
|
7,825
|
Allowance for Loan Losses
|
(3,907)
|
-
|
709
|
-
|
-
|
2
|
517
|
(2,680)
|
NET INTEREST INCOME AFTER LOAN LOSSES
|
4,365
|
(41)
|
-
|
-
|
-
|
(83)
|
905
|
5,145
|
Fee and commission income
|
3,740
|
-
|
-
|
-
|
-
|
-
|
-
|
3,740
|
General Expenses
|
(5,021)
|
-
|
-
|
451
|
(262)
|
-
|
-
|
(4,831)
|
Personnel Expenses + Profit Sharing
|
(2,136)
|
-
|
-
|
-
|
(262)
|
-
|
-
|
(2,397)
|
Administrative Expenses
|
(2,885)
|
-
|
-
|
451
|
-
|
-
|
-
|
(2,434)
|
Tax Expenses
|
(903)
|
4
|
-
|
-
|
-
|
-
|
-
|
(899)
|
Investments in Affiliates and Subsidiaries
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
Other Operating Income/Expenses
|
(493)
|
-
|
-
|
-
|
-
|
83
|
(450)
|
(860)
|
OPERATING INCOME
|
1,691
|
(37)
|
-
|
451
|
(262)
|
-
|
455
|
2,298
|
Non Operating Income
|
(455)
|
-
|
-
|
-
|
-
|
-
|
450
|
(5)
|
NET PROFIT BEFORE TAX
|
1,236
|
(37)
|
-
|
451
|
(262)
|
-
|
905
|
2,293
|
Income Tax
|
542
|
37
|
-
|
-
|
-
|
-
|
(905)
|
(325)
|
Profit Sharing
|
(262)
|
-
|
-
|
-
|
262
|
-
|
-
|
-
|
Minority Interest
|
21
|
-
|
-
|
-
|
-
|
-
|
-
|
21
|
NET PROFIT
|
1,537
|
-
|
-
|
451
|
-
|
-
|
-
|
1,989
|
|
|
|
|
|
|
|
|
|
30
ACCOUNTING
AND MANAGERIAL RESULTS RECONCILIATION (R$ million)
|
1Q16
|
Reclassifications
|
Other Events
⁵
|
1Q16
|
|
Accounting
|
Exchange Hedge¹
|
Credit Recovery²
|
Amortization of goodwill³
|
Profit Sharing
|
Foreign exchange variation
4
|
Extraordinary
|
Managerial
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME
|
11,134
|
(3,434)
|
(604)
|
-
|
-
|
501
|
-
|
7,598
|
Allowance
for Loan Losses
|
(2,617)
|
-
|
604
|
-
|
-
|
(411)
|
-
|
(2,424)
|
NET
INTEREST INCOME AFTER LOAN LOSSES
|
8,518
|
(3,434)
|
-
|
-
|
-
|
90
|
-
|
5,174
|
Fee and
commission income
|
2,984
|
-
|
-
|
-
|
-
|
-
|
-
|
2,984
|
General
Expenses
|
(4,450)
|
-
|
-
|
447
|
(318)
|
-
|
-
|
(4,321)
|
Personnel
Expenses + Profit Sharing
|
(1,788)
|
-
|
-
|
-
|
(318)
|
-
|
-
|
(2,107)
|
Administrative Expenses
|
(2,661)
|
-
|
-
|
447
|
-
|
-
|
-
|
(2,214)
|
Tax
Expenses
|
(1,140)
|
336
|
-
|
-
|
-
|
-
|
-
|
(804)
|
Investments
in Affiliates and Subsidiaries
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
Other
Operating Income/Expenses
|
(1,107)
|
-
|
-
|
-
|
-
|
(90)
|
-
|
(1,197)
|
OPERATING
INCOME
|
4,807
|
(3,098)
|
-
|
447
|
(318)
|
-
|
-
|
1,838
|
Non
Operating Income
|
26
|
-
|
-
|
-
|
-
|
-
|
-
|
26
|
NET PROFIT
BEFORE TAX
|
4,832
|
(3,098)
|
-
|
447
|
(318)
|
-
|
-
|
1,863
|
Income
Tax
|
(3,303)
|
3,098
|
-
|
-
|
-
|
-
|
-
|
(205)
|
Profit
Sharing
|
(318)
|
-
|
-
|
-
|
318
|
-
|
-
|
-
|
Minority
Interest
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
NET
PROFIT
|
1,213
|
-
|
-
|
447
|
-
|
-
|
-
|
1,660
|
¹
Foreign Exchange Hedge:
more details on page
29.
²
Credit Recovery:
reclassified from Revenue from Loan
Operations to Allowance for Loan Losses and, from 2017 onwards, it includes
provision for guarantees provided.
³
Amortization of Goodwill:
reversal of goodwill amortization
expenses.
4
Exchange Rate Fluctuation/Others:
includes, in addition to the effect
of exchange rate fluctuation, reclassifications between different lines of the
Bank’s results (other operating income/expenses, allowance for loan losses, and
non-operating result) for better comparability with previous
quarters.
5
Other
Events:
4Q16
a) Net interest
income: refers to an asset valuation adjustment related to a securities
impairment.
b) Allowance for loan losses: refers to the establishment of
an additional allowance for loan losses for corporate clients.
c) For
better comparability, we have reclassified the establishment of the productivity
and efficiency fund from the non-operating result line to other operating
expenses.
d) Income tax: benefit arising from the distribution of
Interest on Capital (“IoC").
31
32
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: April 26, 2017
Banco Santander (Brasil) S.A.
|
|
|
|
By:
|
/
S
/
Amancio Acurcio Gouveia
|
|
|
Amancio Acurcio Gouveia
Officer Without Specific Designation
|
|
|
|
|
|
|
|
|
By:
|
/
S
/
Angel Santodomingo Martell
|
|
|
Angel Santodomingo Martell
Vice - President Executive Officer
|
|
Banco Santander Brasil (NYSE:BSBR)
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