6-K 1 EDGAR_4T20_BRGAAP.htm EDGAR_4T20_BRGAAP

 

 

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 December, 2020


 

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

 


INDEX

 

Performance Review.. 3

Balance Sheet 35

Income Statements. 38

Statements of Comprehensive Income. 39

Statements of Changes in Stockholders' Equity – Bank. 40

Statements of Changes in Stockholders' Equity – Consolidated. 43

Cash Flows Statements. 46

Statements of Value Added. 50

1.General Information. 51

2.Presentation of Financial Statements. 51

3.Significant Accounting Policies. 52

4.Cash and Cash Equivalents. 59

5.Interbank Investments. 59

6.Securities and Derivatives Financial Instruments. 61

7.Interbank Accounts. 76

8.Credit Portfolio and Provision for Expected Losses Associated with Credit Risk. 76

9.Foreign Exchange Portfolio. 79

10.Other Financial Assets. 80

11.Tax Assets and Liabilities. 81

12.Other Assets. 86

13.Dependences Information and Foreign Subsidiary. 87

14.Investment in Affiliates and Subsidiaries. 89

15.Fixed Assets. 93

16.Intangibles. 93

17.Funding. 93

18.Other Financial Liabilities. 96

19.Other Payables – Other 97

20.Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security. 98

21.Stockholders’ Equity. 102

22.Related Parties. 104

23.Income from Services Rendered and Banking Fees. 113

24.Personnel Expenses. 113

25.Other Administrative Expenses. 113

26.Other Operating Income. 113

27.Other Operating Expenses. 113

28.Non-Operating Income. 114

29.Employee Benefit Plans - Post-Employment Benefits. 114

30.Risk Management, Capital and Sensitivity Analysis. 120

31.Corporate Restructuring. 123

32.Other information. 125

33.Subsequent Events. 128

Composition of Management Bodies. 129

Declaration of directors on the financial statements. 132

Directors' Statement on Independent Auditors. 133

Audit Committee Report 133

Fiscal Council's Opinion. 135

 

 

 

 

 

 

 

 


 

 

Performance Review

Dear Stockholders:

We present the Management Report to Individual and Consolidated Financial Statements of Banco Santander (Brasil) S.A. (Santander or Bank) related to the period ended December 31, 2020, prepared in accordance with accounting practices set by Brazilian Corporate Law, the standards of the National Monetary Council (CMN), the Central Bank of Brazil (Bacen) and document template provided by the Accounting National Financial System Institutions (Cosif) and the Brazilian Exchange Commission (CVM), that does not conflict with the rules issued by Bacen.

The Interim Condensed Consolidated Financial Statements in accordance with the International Accounting Standards Board (IASB) for the fiscal year ended December 31, 2020, will be disclosed in the legal deadline, on the website www.santander.com.br/ri.

1. Macroeconomic Environment

The Santander considers that the international environment has continued to be influenced by developments regarding the COVID-19 pandemic, with the initial countries affected by the disease going through a “second wave” of contamination on the heels of easing in social distancing policies. Nonetheless, the Bank highlights the fast progress observed in the development of vaccines to fight the pandemic, with some countries having already launched an immunization campaign to their citizens and several nations mulling over the same initiative during the first months of 2021. Notwithstanding uncertainties brought by the pandemic, fiscal and monetary stimuli granted by the vast majority of countries continued to led the Bank to witness the release of activity indicators hinting at the extension of a recovery trend after the hit observed in the second quarter. The Bank assesses that these fiscal and monetary stimuli have helped to support financial asset prices. For instance, the S&P500 receded to the vicinity of 2,500 points in March 2020 from 3,200 points in December 2019, but it moved back close to 3,100 points in the end of June, then it climbed to 3,400 points in the end of third quarter and reached 3,700 points in the fourth quarter (a 11.7% expansion in the last three months of 2020).

On the domestic front, Santander thinks that the setbacks brought by the COVID-19 led the debate about structural reforms to play a secondary role, as measures aiming at fighting the impact of the pandemic have become the focus of market participants, especially those related to the most vulnerable part of the population as well as of corporate sector, which were heavily hit by the social distancing policy. According to Santander, these temporary measures were key to mitigate the impact of the health crisis, but they were also responsible for a significant expansion of public expenditures during 2020, which will translate into a hefty increase in the Brazilian public indebtedness. The Bank considers that this backdrop just reinforces the need for the resumption of discussions about structural reforms once the pandemic is over in order to prevent the public debt to enter into an unsustainable trajectory.

After a widespread wave of downward revisions in the forecasts for the GDP real change in 2020 as compared with those seen in the first quarter of 2020, the Bank observed incentives granted leading to a strong recovery in certain segments–markedly, retail sales. This more intense reaction than many had initially thought led market participants to start anticipating less severe drops of the Brazilian GDP this year. This trend has continued to prevail lately. The median forecast for the GDP real change this year indicated a 6.6% contraction for 2020 by the end of second quarter. Then, the median forecast moved up to a 4.36% decline for 2020 by the end of fourth quarter. The Bank judges that, albeit less intense than initially thought, the prospect for a strong contraction of the Brazilian GDP in 2020, which should be followed by a gradual recovery in the coming years—the median expectations for the GDP growth in 2021 and 2022 were 3.4% and 2.5%, respectively in the end of December 2020—continued to justify the general perception that the IPCA change should converge towards the targeted levels set for the relevant time horizon for the monetary policy, notwithstanding the fact that it ended 2020 above the goal on the heels of temporary shocks–the IPCA annual change reached 4.5%, above the target of 4.0%. According to Santander’s appraisal, the mix of gradual economic recovery and inflation readings compatible with targeted levels opened room for the Brazilian Central Bank to keep the base interest rate at 2.00% pa in the end of 2020 and it has allowed it to indicate the maintenance of this level for most of 2021.

In the Bank’s view, the prospect of high public indebtedness and low growth has kept market participants skeptical in acquiring Brazilian financial assets. However, not even that skepticism was a hurdle for a favorable performance of the Brazilian 5-year CDS spread and the FX rate in fourth quarter. Regarding the former, the instrument to hedge the Brazilian insolvency risk ended the period at a level similar to the average observed in first quarter—i.e., before the pandemic—when this indicator was hovering around 150bps, thus below the 250bps observed in the end of third quarter. The Brazilian FX rate followed a similar pattern, as the USD/BRL pair receded to USD/BRL5.20 in December 2020 from USD/BRL5.60 in September 2020 and after having hovered reached as high as USD/BRL5.80 in fourth quarter. On both cases, the Santander understands that the trigger for the improvement observed in the period had to do with the diminution of uncertainties regarding the conduct of fiscal policy in the coming years on the heels of official statements that indicated the willingness to abide by the rules imposed by the legal framework of the public spending cap.

Therefore, the Bank considers that additional improvements in the performances of these indicators will require measures that indicate a stricter commitment of the Brazilian government with the reversal of the ascending trend of public spending in the coming years. In the Bank’s view, this will only be possible with the resumption of structural reforms.

2. Performance                 

 

 

 

 

2.1) Corporate Net Income

Consolidated Income Statements (R$ Millions)

12M20

12M19

annual changes%

4Q20

3Q20

quarter changes %

Financial Income

108,988.3 

82,740.4 

31.7 

7,641.5 

21,783.3 

(64.9) 

Financial Expenses

(87,751.0) 

(51,759.7) 

69.5 

6,651.9 

(14,493.7) 

(145.9) 

Gross Profit From Financial Operations (a)

21,237.3 

30,980.7 

(31.4)

14,293.4 

7,289.6 

96.1 

Other Operating (Expenses) Income (b)

(12,555.1) 

(14,218.8) 

(11.7) 

(3,838.5) 

(2,595.8) 

47.9 

Operating Income

8,682.3 

16,761.9 

(48.2)

10,454.9 

4,693.7 

122.7 

Non-Operating Income

239.0 

8.5 

2,718.3 

(13.5) 

15.9 

(185.0) 

Income Before Taxes on Income and Profit Sharing

8,921.2 

16,770.4 

(46.8)

10,441.4 

4,709.6 

121.7 

Income Tax and Social Contribution (a)

6,539.5 

(462.1) 

(1,515.2) 

(6,113.8) 

(412.6) 

1,381.7 

Profit Sharing

(1,857.9) 

(1,734.9) 

7.1 

(436.7) 

(457.7) 

(4.6) 

Non-Controlling Interest

(133.4) 

(392.4) 

(66.0) 

(32.3) 

(28.1) 

14.9 

Consolidated Net Income

13,469.4 

14,181.0 

(5.0)

3,858.7 

3,811.2 

1.2 

 

Operating Result before adjusted Taxation

12M20

12M19

annual variation %

4Q20

3Q20

quarterly variation %

(R$ Million)

Result before Taxation on Profit and Participation

8,921.2 

16,770.0 

(46.8) 

10,441.4 

4,709.6 

121.7 

Foreign Exchange Hedge

13,271.2 

1,370.8 

868.2 

(4,248.0) 

2,071.8 

(305.0) 

Operating Income Before Adjusted Taxation

22,192.4 

18,140.8 

22.3 

6,193.4 

6,781.4 

(8.7)

Income TAX

12M20

12M19

annual variation %

4Q20

3Q20

quarterly variation %

(R$ Million)

Income tax and social contribution

6,539.5 

(462.0) 

(1,515.5) 

(6,113.8) 

(412.6) 

1,381.7 

Foreign Exchange Hedge

(13,271.2) 

(1,370.8) 

868.2 

4,248.0 

(2,071.8) 

(305.0) 

Adjusted Income Tax and Social Contribution

(6,731.7)

(1,840.8)

267.3 

(1,865.8)

(2,484.5)

(24.9)

 

The Bank's rapid adaptation to different scenarios, supported by a solid balance sheet position and a well-defined business model, made it possible to capture important opportunities in the period, always prioritizing customer needs. Accordingly, we offer a plan to extend installments of various types of financing granted to customers in order to provide greater financial capacity. In this quarter, an additional provision of R$3,2 billion was made, supported by assumptions based on stress scenarios. In addition, the Bank continued to evolve our risk models, which helped to maintain the quality of the credit portfolio at controlled levels. As a result of our actions in the period, we observed an increase in margins while reaching the best historical level of the efficiency index.

The return on average shareholders' equity reached 18.11% in the year, down 2.90 p.p. and 13.79% in the last 12 months.

a) Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches and the Subsidiary Santander Brasil EFC

Santander operates branches in the Cayman Islands and Luxembourg and the subsidiary Santander Brasil Establecimiento Financiero de Credito, EFC, or “Santander Brasil EFC” which are used, mainly, to raise funds in the capital and financial foreign markets, providing credit lines that are extended to clients for trade-related financings and working capital. To protect the exposures to foreign exchange rate variations, the Bank uses derivatives. According to Brazilian tax rules, the gains or losses resulting from the impact of appreciation or depreciation of the local currency (Real) in foreign investments are nontaxable to PIS/COFINS/IR/CSLL, while gains or losses from derivatives used as hedges are taxable or deductible. The purpose of these derivatives is to protect the after-tax net income. As of 2022, all exchange rate variations will be computed on the taxable basis of the IRPJ and CSLL.

Law 14.031/20, of July 28, 2020, determines that, as of January 2021, 50% of the foreign exchange variation of investments abroad must be computed in the determination of the real profit and in the calculation base of the Social Contribution on the Net Income (CSLL) of the investing legal entity domiciled in the country. As of 2022, the foreign exchange variation of investments abroad will be fully computed on the basis of the IRPJ and CSLL.

The different tax treatment of such foreign exchange rate differences results in a volatility on the operational earnings or losses and on the gross revenue tax expense (PIS/COFINS) and income taxes (IR/CSLL), as demonstrated below:

Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branchs
and the Subsidiary Santander Brasil EFC
(R$ Million)

12M20

12M19

annual variation %

4Q20

3Q20

quarterly variation %

Exchange Variation - Profit From Financial Operations

16,791.9 

1,511.3 

1011.1 

(5,015.4) 

2,449.4 

(304.8) 

 

 

 

 

 

 

Derivative Financial Instruments - Profit From Financial Operations

(30,374.9)

(2,776.6)

994.0 

9,723.8 

(4,587.7)

(312.0)

Income Tax and Social Contribution

13,271.2 

1,370.8 

868.1 

(4,248.0)

2,071.8 

(305.0)

PIS/COFINS - Tax Expenses

311.8 

(106.5)

(392.8)

(460.4)

66.5 

(792.3)

 

b) Other Operating (Expenses) Income

Banking service fees and fees totaled R$ 18,464 million in the year, down 1.2% over 12M19, mainly explained by the lower revenue from cards and services acquired. In 4Q20, these revenues totaled R$ 5,133 million, 8.2% higher than 3Q20, as a result of the better performance of almost all revenue lines.

Income from Services Rendered and Banking Fees
(R$ Millions)

12M20

12M19

annual changes%

4Q20

3Q20

quarter changes %

Asset Management

1,016.9 

1,085.9 

(6.4) 

276.7 

262.0 

5.6 

Checking Account Services

3,965.6 

3,857.1 

2.8 

1,057.7 

1,021.6 

3.5 

Lending Operations and Income from Guarantees Provided

1,437.6 

1,379.3 

4.2 

389.1 

378.2 

2.9 

   Lending Operations

805.8 

834.5 

(3.4) 

233.5 

197.2 

18.4 

   Income Guarantees Provided

631.8 

544.7 

16.0 

155.6 

181.0 

(14.0) 

Insurance Fees

3,116.9 

3,118.3 

(0.0) 

907.4 

745.3 

21.7 

Cards (Debit and Credit) and Acquiring Services

5,590.2 

6,118.4 

(8.6) 

1,621.7 

1,406.5 

15.3 

Collection

1,471.1 

1,514.6 

(2.9) 

384.8 

368.6 

4.4 

Brokerage, Custody and Placement of Securities

1,062.0 

982.1 

8.1 

223.5 

361.0 

(38.1) 

Others

803.7 

628.8 

27.8 

272.4 

203.1 

34.1 

Total

18,464.0 

18,684.5 

(1.2)

5,133.3 

4,746.3 

8.2 

General Expenses - General expenses, including depreciation and amortization without goodwill, totaled R$ 21,835 million in the year, 2,7% higher than 12M19, and significantly below the 4.52% inflation for the period. In the quarterly comparison, general expenses registered an increase of 9,4%.

Personnel expenses, including profit sharing, totaled R$ 9,035 million in the year, down 4.9% over the same period last year. In three months, these expenses increased by 13,5%.

Administrative expenses, excluding depreciation and amortization, reached R$ 9,705 million in the year, an increase of 4,9% compared to 12M19, with emphasis on the increase in data processing expenses due to the development of projects. Compared to 3Q20, these expenses expanded 9.4%, mainly as a result of higher expenses with specialized and third-party technical services, and with advertising, promotions and publicity, as a result of higher expenses with year-end campaigns.

General Expenses
(R$ Millions)

12M20

12M19

annual changes%

4Q20

3Q20

quarter changes %

Personnel Expenses

(9,035.2) 

(9,496.2) 

(4.9) 

(1,522.0) 

(1,340.7) 

13.5 

Other Administrative Expenses, excluding the effects of goodwill amortization

(12,800.4) 

(11,775.1) 

8.7 

(3,456.9) 

(3,210.0) 

7.7 

General Expenses, excluding the effects of goodwill amortization

(21,835.5)

(21,271.3)

2.7 

(4,978.9)

(4,550.7)

9.4 

2.2) Assets and Liabilities

Consolidated Balance Sheets
(R$ Millions)

Dec/20

Dec/19

annual variation %

Current and Long-Term Assets

988,537.8 

844,294.7 

17.1 

Permanent Assets

13,851.2 

13,248.4 

4.5 

Total Assets

1,002,389.0 

857,543.1 

16.9 

Current and Long-Term Liabilities

921,914.6 

785,789.3 

17.3 

Deferred Income

355.5 

285.2 

24.7 

Non-Controlling Interest

1,150.7 

1,695.4 

(32.1) 

Stockholders' Equity

78,968.2 

69,773.2 

13.2 

Total Liabilities and Stockholders' Equity

1,002,389.0 

857,543.1 

16.9 

 

 

Total assets are mainly represented:

(R$ Millions)

Dec/20

Dec/19

annual variation %

Loan Portfolio

411,654.8 

352,027.9 

16.9 

Securities and Derivative Financial Instruments

266,088.4 

193,454.7 

37.5 

Interbank Investments

69,698.3 

43,367.5 

60.7 

Interbank Accounts

91,011.3 

89,265.0 

2.0 

 

 

 

 

2.3) Loan Portfolio

Management Disclosure of Loan Portifolio by Segment
(R$ Million)

Dec/20

Dec/19

 annual changes %

Individuals (1)

173,627.0 

155,337.8 

11.8 

Consumer Finance

60,256.3 

58,231.0 

3.5 

  Individuals (1)

53,974.2 

50,671.1 

6.5 

  Corporate

6,282.1 

7,559.9 

(16.9) 

Small and Medium-sized Entities

55,914.9 

41,261.7 

35.5 

Large-sized Entity

121,183.5 

97,197.3 

24.7 

Sim

673.1 

0.0 

673.1 

Total Loan portfolio (gross)

411,654.8 

352,027.9 

16.9 

Other Operations with Credit Risk

99,311.8 

80,505.1 

23.4 

Total Extended Portfolio (gross)

510,966.6 

432,533.0 

18.1 

Allowance for Loan Losses (2)

(25,067.0) 

(21,408.1) 

17.1 

Total Loan portfolio (net)

485,899.6 

411,124.9 

18.2 

(1) Including the loans to individual in the consumer finance segment, the individual portfolio reached R$227,601 on December 31, 2020 - 12/31/2019 – R$$206,009).

(2) In addition to the provision for loans, also includes debentures, FIDC, CRI, promissory notes, promissory notes for placement abroad, assets related to acquiring activities and sureties and sureties.

 

The credit portfolio reached R$ 411,655 million in 2020, which represents an increase of 16.9% in relation to the previous year. Most of segments registered a positive variation in the year, with the SME and Large Companies segments being the most significant variations, 35.5% and 24.6%, respectively.

In addition, the performance is still supported by the +Negócios platform, which operates in the vehicle segment and offers better experiences throughout the customer's journey.

Delinquency

The delinquency rate over 90 days decreased by 0.9 p.p. in the year and reached 2.1% in December 2020, the lowest level ever recorded. This movement was a result of the improvement in the index of the Individuals and Individuals segments, which are still partly influenced by the effect of the payment extensions offered to our customers. In addition, the product mix, with a lower share of the rotating ones, also contributes positively to the good performance of the default rate. In three months, the indicator was stable.

The 15 to 90 day delinquency rate reached 2.8% in December 2020, a reduction of 1.0 p.p. in the year in both segments. In the quarter, the index decreased by 0.3 pp, also benefiting from the increase in the loan portfolio in the period.

The balance of provisions for expected losses associated with credit risk represents 6.1% of the credit portfolio on December 31, 2020, 6.1% on December 31, 2019.

The expense for allowance for loan losses, net of revenue from recovery of credits written off for losses in 2020 and 2019, was R$13,689 million and R$13,447 million, respectively, showing an increase of 1.8%.

2.4) Funding by Customers

Funding by Customers
(R$ Millions)

12M20

12M19

annual variation %

Demand Deposits

41,821.3 

29,107.5 

43.7 

Saving Deposits

63,306.5 

49,039.9 

29.1 

Time Deposits

279,778.6 

190,344.5 

47.0 

Debentures/LCI/LCA/LIG (1)

52,382.8 

50,635.2 

3.5 

Treasury Bills/Structured Operations Certificates

18,462.0 

34,526.5 

(46.5) 

Total Funding

455,751.2 

353,653.6 

28.9 

(1)   Debentures repurchase agreement, Real Estate Credit Notes (LCI), Agribusiness Credit Notes (LCA) and Guaranteed Real State Credit Notes (LIG).

Customer borrowings totaled R$455,751 million on December 31, 2020, with an increase of 28.9% in twelve months (or R$102 million), mainly influenced by the expressive 43.7% expansion in demand deposits, and by the 47,0% growth in time deposits.

2.5) Issuance of Debt Instruments Eligible to Compose Capital

On November 5, 2018, the Board of Directors approved the redemption of Level I and Level II Notes issued on January 29, 2014, in the total amount of US $ 2.5 billion. The repurchase was approved by the Central Bank on December 18, 2018.

 

 

 

 

In conjunction with the approval of the redemption of the previous notes, the Board of Directors approved the issuance of the equity instruments, which was held on November 8, 2018. Such issuance took the form of notes issued abroad, in US dollars, in the amount of US$2.5 billion, for payment in Level I and Level II of Reference Equity. The offering of these Notes was made outside of Brazil and the United States of America, for non-US Persons, based on Regulation S under the Securities Act, and was fully paid in by Santander España, controlling shareholder of Banco Santander Brasil.

On December 18, 2018, the Bank issued an approval for the Notes to comprise Level I and Level II of Banco Santander's Reference Equity as of such date. This approval led to the reclassification of these instruments from the line of Eligible Debt Instruments to Capital for Subordinated Debts.

Details of the balance of Debt Instruments Eligible to Compose Capital referred to the issuance of equity instruments for the composition of Tier I and Tier II of Regulatory Capital due to the Capital Optimization Plan are as follows:

Debt Instruments Eligible to Compose Capital

dec/20

dec/19

Specific features

Tier I

Tier II

Tier I (1)

Tier II (1)

Issuance

Nov-18

Nov-18

Nov-18

Nov-18

Amount (Million)

$1.250 

$1.250 

$1.250 

$1.250 

Interest Rate (p.a.) (2)

7,250% 

6,125% 

7,250% 

6,125% 

Maturity

No Maturity

(Perpetual)

Nov-28

No Maturity (Perpetual)

Nov-28

Value

$6.554 

$6.565 

$5.092 

$5.083 

Periodicity of

semiannually, as of May 8,

2019

semiannually, as of May 8,

2019

semiannually, as of May 8, 2019

semiannually, as of May 8, 2019

Payment

 

 

 

 

 

 

 

 

 

(1) Notes repurchased in 2019; as authorized by Bacen on December 18, 2018. As of the date of these notes were excluded of Level I and Level II PR.

(2) The debts of January 2014 were made by Banco Santander in Brazil, therefore, as Income Tax at source assumed by the issuer, in the form of a corresponding exchange rate, is 8.676% and 7.059% for the instruments Level I and Level II, respectively. The emissions generated from November 2018 were made through the Cayman Agency and, consequently, there is no incidence of Income Tax at Source.

 

The Notes issued in 2018 have the following common characteristics:

(a) Unit value of at least US$150 thousand and in integral multiples of US$1 thousand in excess of such minimum value;

(b) The Notes may be repurchased or redeemed by Santander after the fifth anniversary as of the date of issue of the Notes, at the sole discretion of the Bank or as a result of changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events.

2.6) Stockholders’ Equity

As of December 31, 2020, Banco Santander 's consolidated shareholders' equity increased by 13.2% compared to December 31, 2019.

The change in Shareholders' Equity between December 31, 2020 and December 31, 2019, was mainly due to the net income for the year in the amount of R$13,469 million, the negative equity valuation adjustment (marketable securities and derivative financial instruments ) in the amount of R$890 million and in an employee benefit plan in the amount of R$572 million (net of tax effects), due to the remeasurement of actuarial obligations due to the variation in interest rates caused by the macroeconomic scenario observed in the fiscal year 2020.

Treasury Shares

Below, the movement of Treasury Shares:

Dec/20

Dec/19

Quantity

Quantity

Units

Units

Treasury shares at beginning of the period

16,702 

13,317 

Shares Acquisitions

5,052 

6,465 

Payment - Share-based compensation

(2,925) 

(3,080) 

Treasury shares at end of the period

18,829 

16,702 

Subtotal - Treasury Shares in thousands of reais

$785,587.00 

$679,364 


Emission Costs in thousands of Reais

$1,771.00 

$1,771 

Balance of Treasury Shares in thousands of reais

$787,358.00 

$681,135 

Cost/Share price

 Units

Units

 

 

 

 

 

 

Minimum cost

R$7.55

R$7.55

Weighted average cost

R$33.24

R$32.10

Maximum cost

R$49.55

R$49.55

Share price

R$44.83

R$42.60


In the fiscal year ended on December 31, 2020 and 2019, there were highlights of Dividends and Interest on Capital, as below:

DIVIDENDS AND INTEREST ON CAPITAL
(R$ Millions)

Dec/20

Dec/19

Interest on capital

3,325.0 

4,010.0 

Dividends

0.0 

6,790.0 

Total

3,325.0 

10,800.0 


2.7) Basel Index

Bacen determines that financial institutions maintain a Reference Equity (PR), PR Level I and Principal Capital compatible with the risks of their activities, higher than the minimum requirement of the Required Reference Equity, represented by the sum of the credit risk, risk market risk and operational risk.

As established in CMN Resolution No. 4,193 / 2013, the requirement for PR in 2019 was 10.5%, comprising 8.0% of Minimum Equity of Reference plus 2.5% of Additional Capital Conservation. Considering this surcharge, PR Level I increased to 8.5% and Minimum Principal Capital to 7.0%.

For the base year 2020, the PR requirement remains at 10.25%, including 8.0% of Reference Equity Minimum, plus 1.25% of Capital Conservation Additional and 1.0% of Systemic Additional. PR Level I reaches 8.25% and Minimum Principal Capital 6.75%.

In view of the pandemic scenario, the Central Bank of Brazil has been monitoring the Brazilian market and defining a set of rules to minimize the impacts of the pandemic. In the case of capital, it reduces the reduction in the Additional Capital Conservation Additional from 2.5% to 1.25%, expanding the capacity to grant new credit operations.

The Basel ratio is calculated in accordance with the Financial Statements of the Prudential Conglomerate prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen, as shown below:

Basel Index%

Dec/20

Dec/19

Tier I Regulatory Capital

77,571.5 

66,481.7 

Principal Capital

71,006.3 

61,389.5 

Supplementary Capital

6,565.2 

5,092.2 

Tier II Regulatory Capital

6,554.4 

5,083.8 

Regulatory Capital (Tier I and II)

84,126.0 

71,565.5 

Credit Risk

478,303.5 

407,786.2 

Market Risk

15,846.3 

20,235.2 

Operational Risk

57,419.4 

47,965.5 

Total RWA

551,569.2 

475,986.9 

Basel I Ratio

14.06 

13.97 

Basel Principal Capital

12.87 

12.90 

Basel Regulatory Capital

15.25 

15.04 

 

2.8) Main Subsidiaries

The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio for the period ended December 31, 2020, of the main subsidiaries of Banco Santander:

Subsidiaries (R$ Millions)

Total Assets

Stockholders' Equity

Net
Income

Loan
Portfolio (1)

Ownership/Interest (%)

Aymoré Crédito, Financiamento e Investimento S.A.

50,196.7 

1,542.3 

743.3 

48,542.3 

100.00% 

Getnet Adquirência e Serviços para Meios de Pagamento S.A.

42,321.1 

2,072.0 

289.9 

0.0 

100.00% 

Banco Bandepe S.A.

27,002.1 

5,369.5 

90.9 

0.0 

100.00% 

Banco RCI Brasil S.A.

12,095.2 

1,405.5 

180.6 

9,345.2 

39.89% 

Santander Leasing S.A. Arrendamento Mercantil

8,544.5 

5,832,9 

78.3 

2,096.2 

100.00% 

Santander Corretora de Seguros, Investimento e Serviços S.A.

6,684.9 

3,571.5 

570.3 

0.0 

100.00% 

Santander Brasil, Establecimiento Financiero de Credito, S.A.

420.6 

1.3 

(14.7) 

0.0 

100.00% 

Atual Serviços de Recuperação de Créditos e Meios Digitais S.A.

1,792.9 

1,758.6 

88.8 

0.0 

100.00% 

Santander Corretora de Câmbio e Valores Mobiliários S.A.

1,009.2 

731.3 

90.9 

0.0 

100.00% 

(1) Includes balances referring to leasing portfolio and other credits.  

 

 

 

 

The financial statements of the Subsidiaries above were prepared in accordance with the accounting practices adopted in Brazil, established by the Brazilian Corporate Law, in conjunction with the CMN, Bacen rules and model of the document provided for in the Accounting Plan of Cosif Institutions, of CVM, in which they do not conflict with the rules issued by Bacen, without the elimination of transactions with related companies.

3. Other Events

3.1) Post-employment Benefit Plan

On June 30, 2018, there was an increase in the cost contribution established in the Post-Employment Benefit Plan, which is calculated as a percentage of the total monthly compensation of members. The increase in the contribution resulted in a decrease in the past service cost, due to changes in the plan. The changes proposed in the Post-Employment Benefit imply a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations.

3.2) Corporate Restructuring

During the 2019 and 2020 financial years, several corporate movements were implemented in order to reorganize the operations and activities of the entities in accordance with the Banco Santander business plan:

i) Dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A.

On November 12, 2020, by the decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, SA (whose name was changed to Santander Brasil, SAU), an offshore entity with headquarters in Spain, was approved, wholly owned by Banco Santander Brasil, which acted to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer financial products and services. The capital invested abroad was repatriated in November 2020. The deed of dissolution and liquidation of the company was registered with the Mercantile Registry of Madrid with effect on December 15, 2020. These activities are now carried out by the Bank's branch in Luxembourg.

ii) Disposal of the equity interest held in Super Payments and Administration of Means of Electronic Media S.A.

On February 28, 2020, the sale to Superdigital Holding Company, SL of a company indirectly controlled by Banco Santander, SA, of the shares representing the entire share capital of Super Payments and Administração de Meios Eletrônico SA (“Superdigital”) for the amount R$270 million. As a result, the Company is no longer a shareholder of Superdigital.

iii) Put option of equity interest in Banco Olé Bonsucesso Consignado S.A. and incorporation of Banco Olé Consignado S.A. and of Bosan Participações S.A.

On March 14, 2019, the minority shareholder of Banco Olé Bonsucesso Consignado S.A. (Olé Consignado) formalized its interest to exercise the put option right provided in the Investment Agreement, executed on July 30, 2014, to sell its 40% equity interest in the capital stock of Olé Consignado to Banco Santander (Brazil) S.A. (“Banco Santander”).

On December 20, 2019, the parties entered into a binding agreement for the acquisition, by Banco Santander, of all the shares issued by Bosan Participações S.A. (holding company whose only asset are shares representing 40% of the capital of Banco Olé).

On January 31, 2020, the Company and the shareholders of Bosan Participações SA (“Bosan”) concluded the definitive agreement and signed the purchase and sale agreement for 100% of the shares issued by Bosan, through the transfer of Bosan's shares to Company and payment to sellers in the total amount of R$1,608,772. As a result, Banco Santander became, directly and indirectly, the holder of 100% of Banco Olé's shares.

On August 31, 2020, the shareholders of Banco Santander approved the merger by the Bank of Banco Olé Consignado SA and Bosan Participações SA The mergers did not result in an increase in the capital of Santander Brasil and are pending approval by the Central Bank of Brazil.

iv) Acquisition of direct equity interest in Toque Fale Serviços de Telemarketing LTDA.

On March 24, 2020, the Company acquired shares representing the total share capital of Toque Fale Serviços de Telemarketing LTDA (“Toque Fale”) for the amount of R$1,099, corresponding to the equity value of the quotas on February 29, 2020, previously held by Getnet Adquirência e Serviços para Means of Payment SA and Auttar HUT Processamento de Dados LTDA. As a result, the Company became a direct shareholder of Toque Fale and holder of 100% of its capital.

v) Acquisition of residual equity interest in Return Capital Serviços e Recuperação de Crédito S.A.

On November 1, 2019, Atual Serviços de Recuperação de Creditos e Meios Digitais SA (“Atual”), wholly owned subsidiary of Banco Santander, and the minority shareholders of Return Capital Serviços e Recuperação de Crédito SA (“Return Capital”) celebrated Return Capital Stock Purchase and Sale Agreement, in which Atual acquired all the shares of minority shareholders, corresponding to 30% of

 

 

 

Return Capital's share capital. The acquisition was completed on November 1, 2019, so Atual now holds 100% of the shares representing Return Capital's share capital.

vi) Acquisition of Summer Empreendimentos Ltda.

On May 14, 2019, Banco Santander (Brasil) S.A. and its wholly owned subsidiary Santander Holding Imobiliária S.A. (“SHI”) entered into a binding document with the partners of Summer Empreendimentos Ltda. (“Summer”) establishing the terms of the purchase and sale negotiation of quotas representing Summer's total share capital. The acquisition was approved by BACEN on September 16, 2019 and concluded on September 20, 2019, so that SHI now holds 99.999% and Banco Santander 0.001% of the shares representing Summer's share capital. Due to the Entity's sale plan in the term term, Summer was initially recorded as Non-Current Assets Held by the Sale, at its cost value. In June 2020, with the failure to execute the established plan, Summer became part of the scope of Banco Santander Consolidated Financial Statements.

vii) Disposal of investments in Norchem Holding e Negócios S.A. and Norchem Participações e Consultoria S.A.

On October 8, 2020, the shareholders of Norchem Holding e Negócios SA and Norchem Participações e Consultoria SA (jointly, “Norchem Companies”) approved the capital reduction of the two Norchem Companies, in the amounts of R$14,770 and R$19,950, respectively, after that Banco Santander withdrew from the board of shareholders of Norchem Societies.

viii) Execution of an Agreement for the Acquisition of Equity Interest in Toro Controle

On September 29, 2020, Pi Distribuidora de Titulos e Investimentos SA, which is indirectly controlled by Banco Santander, entered into an investment agreement and other covenants with Toro Controle e Participações SA shareholders (“Toro Controle”) which, once the operation is completed, will hold 60% of Toro Controle's share capital. Toro Controle is a holding company that ultimately controls Toro Corretora de Titulos e Valores Mobiliários Ltda. and Toro Investimentos S.A. (together “Toro”). Toro is an investment platform founded in Belo Horizonte in 2010. In 2018, it received the necessary authorizations and started its operation as a securities broker focused on the retail public. The completion of the transaction is subject to the signing of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.

ix) Execution of a Contract for the Acquisition of Equity Interest in Gira - Integrated Management of Receivables from Agronegócio S.A.

On August 11, 2020, Banco Santander entered into a share purchase agreement and other covenants with Gira - Integrated Management of Receivables of Agronegócio S.A. Gira is a technology company that operates in the management of agribusiness receivables and has a robust technological platform, capable of adding greater security to agricultural credit operations. Upon compliance with the conditions established in the contract, in particular the applicable regulatory approvals, the parties formalized the definitive instruments on January 8, 2020. With the completion of the operation, Banco Santander now holds 80% of Gira's share capital.

x) Execution of a contract for the Acquisition of Paytec Tecnologia em Payments Ltda. and Paytec Logística e Armazém EIRELI

On December 8, 2020, Banco Santander celebrated, with the partners and owners of Paytec Tecnologia em Payments Ltda. and Paytec Logística e Armazém Eireli (jointly "Paytec"), purchase and sale of quotas, transfer of ownership and other covenants, whereby, once the transaction is completed, it will hold 100% of Paytec's share capital. Paytec acts as a logistics operator with national coverage and focused on the payments market. The completion of the transaction is subject to the signing of definitive instruments and approval by the Central Bank of Brazil.

xi) Sale of the entire stake held in CIBRASEC

On July 24, 2019, Banco Santander sold its entire stake in CIBRASEC - Companhia Brasileira de Securitização, corresponding to 4,000 common shares and 50 preferred shares, to ISEC Securitizadora SA for the amount of R$ 9,845. Due to the closing of the transaction, Banco Santander is no longer a shareholder of CIBRASEC.

xii) Incorporation of the spun-off portion of Integry Tecnologia e Serviços A.H.U Ltda.

On October 31, 2019, the partial spin-off of Integry Tecnologia e Serviços AHU Ltda. was approved. (“Integry”), a wholly owned subsidiary of Getnet Adquirência e Serviços para Meios de Pagamento S.A (“Getnet”), with version of the spun-off portion of its assets, referring to its assets and liabilities, to Getnet. The incorporation of the spun-off portion by Getnet is pending approval by the Central Bank of Brazil.

On December 20, 2019, Getnet and Santander Merchant Platform Solutions, SL (“SMPS Global”), a company based in Spain and controlled by Banco Santander, SA (Santander Spain), entered into a Purchase and Sale Agreement of the representative shares of Integry's total share capital, so that SMPS Global now holds 100% of Integry's share capital. On December 23, 2019, Integry changed its name to Santander Merchant Platform Solutions Brasil Ltda.

4. Strategy and Rating Agencies

 

 

 

 

For information regarding the Bank's strategy and rating at rating agencies, see the Results Report available at www.santander.com.br/ri.

5. Corporate Governance

Banco Santander's Board of Directors met and resolved:

On December 26, 2020, approve the proposal for declaration and payment of interest on own capital, in the gross amount of R$665 million for payment as of February 1, 2021, without any remuneration as monetary restatement.

On December 18, 2020, approve the election of directors Adriana Marques Lourenço de Almeida, Francisco Soares da Silva Junior, Marilize Ferrazza Santinoni and Ricardo Olivare de Magalhães as Directors without a Specific Designation.

On October 26, 2020, approve the proposal to highlight and pay interest on own capital, in the gross amount of R$1 billion paid on December 23, 2020, without any monetary restatement.

On October 26, 2020, to approve the Parent Company and Consolidated Condensed Interim Financial Statements of Banco Santander, prepared in accordance to the accountancy practices adopted in Brazil, applicable to the institutions authorized to operate by Bacen and Parent Company and Consolidated Condensed Interim Financial Statements prepared in accordance to the International Financial Reporting Standards (IFRS), both relative to the period ended in September 30, 2020.

On October 9, 2020, approve (i) the amendment to the Internal Rules of the Sustainability Committee and (ii) the election of Mr. Tasso Rezende de Azevedo as a member of the Sustainability Committee.

On September 22, 2020, approve the re-election of Ms. Monique Silvano Arantes Bernardes. as the Company's Ombudsman for a new 1 (one) year term.

On September 1, 2020, to re-ratify the resolutions at the Company’s Board of Directors’ Meeting held on May 21, 2020, which dealt with the election of the members of the Company’s Audit Committee for a new term.

On August 28, 2020, to know the resignation of Mr. Rafael Bello Noya, Officer without specific designation of the Company.

On July 29, 2020, approve (i) the proposal for the merger of Bosan Participações S.A. by the Company; (ii) the proposal for the merger of Banco Olé Consignado S.A. by the Company; and (iii) the call of an Extraordinary General Meeting of the Company to be held on August 31, 2020, at 3 p.m., to resolve on the following Agenda: (a) to ratify the hiring of PricewaterhouseCoopers Auditores Independentes, a specialized company responsible for preparing the corresponding appraisal reports of the Merged Companies; (b) to approve the Appraisal Reports; (c) to approve the Protocol and Justification of Bosan; (d) to approve the merger of Bosan by the Company; (e) to approve the Protocol and Justification of Banco Olé; (f) to approve the merger of Banco Olé by the Company; and (g) to authorize the managers of the Company to perform all necessary and/or convenient acts for the implementation of the Mergers.

On July 28, 2020, approve the Banco Santander Consolidated Financial Statements, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen and the Banco Santander Interim Consolidated Financial Statements, prepared in accordance with the International Financial Reporting Standards (IFRS), both referring to the semester ended June 30, 2020.

On July 28, 2020, to approve the proposal for declaration and payment of interest on equity, in the gross amount of R$ 770 million, for paid in September 25, 2020, without any indexation.

On July 03, 2020, approve the election of Mr. João Marcos Pequeno De Biase as Executive Officer without specific designation of the Bank.

On June 29, 2020, approve (i) the departure of Mr. René Luiz Grande from the position of member of the Bank's Risk and Compliance Committee; and (ii) the election of Mr. René Luiz Grande to the position of member of the Bank's Audit Committee.

On June 12, 2020, approve the election of Ms. Virginie Genès-Petronilho as a member of the Bank's Risk and Compliance Committee.

On May 27, 2020, approve the amendment to the Internal Regulations of the Board of Directors, the Audit Committee and the Risks and Compliance Committee.

On May 21, 2020, approve the election of the members of the Bank's Audit Committee for a new term of officer: Ms. Deborah Stern Vieitas, Mr. Luiz Carlos Nannini and Ms. Maria Elena Cardoso Figueira.

On April 28, 2020, approve the election of Mr. Pedro Augusto de Melo as a member and Coordinator of the Bank's Risk and Compliance Committee.

On April 27, 2020, to approve the proposal for declaration and payment of interest on equity, in the gross amount of R$ 890 million, paid in of June 26, 2020, without any indexation.

 

 

 

 

On April 27, 2020, approve the Individual and Consolidated Financial Statements of Banco Santander, prepared in accordance with the accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen and the consolidated Condensed Intermediate Financial Statements of Banco Santander, prepared in accordance with International Financial Reporting Standards (IFRS), both for the period ended March 31, 2020.

On April 23, 2020, (i) acknowledgment of the resignation presented by Mr. Celso Clemente Giacometti to the positions of member of the Board of Directors, Coordinator of the Nomination and Governance Committee and member of the Remuneration Committee of the Bank; (ii) approve the appointment of Mr. Álvaro Antonio Cardoso de Souza, current member of the Nomination and Governance Committee of the Bank, to the position of Coordinator of the referred Committee; (iii) approve the exoneration of Mr. Bernardo Parnes from the position of Coordinator of the Risk and Compliance Committee of the Bank; (iv) approve the appointment of Mr. Álvaro Antonio Cardoso de Souza, current member of the Risk and Compliance Committee of the Bank, to the position of Coordinator of the referred Committee; and (v) approve the exoneration of Mr. José Roberto Machado Filho, Executive Officer of the Bank.

On April 07, 2020, approve the election of Sr. Marcelo Augusto Dutra Labuto as Director with no specific designation.

On February 28, 2020, approve the resignation of Mr. Ulisses Gomes Guimarães, Director with no specific designation of the Bank; (ii) know the resignation of Mr. Gilberto Duarte de Abreu Filho, Director without a specific designation of the Bank; and (iii) approve the election of Mr. Sandro Rogério da Silva Gamba as an Officer without a specific designation of the Bank.

On February 3, 2020, approve the election of Sres. Sandro Kohler Marcondes, Vítor Ohtsuki and Geraldo José Rodrigues Alckmin Neto as Directors with no specific designation.

On January 28, 2020, approve Banco Santander Individual and Consolidated Financial Statements, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen for the year ended December 31, 2019.

There was no change in corporate governance decided by the Bank for the base date of March 31, 2020. These decisions are described in the Management Report of the Individual and Consolidated Financial Statements of December 31, 2019.

6. Risk Management        

On February 23, 2017, Bacen published CMN Resolution No. 4,557, which provides for the structure of risk and capital management (GIRC), effective from the same year. The resolution highlights the need to implement an integrated risk and capital management structure, define an integrated stress test program and declare the Risk Appetite Statement (RAS - Risk Appetite Statement), set up a Risk Committee, define a disclosure policy of published information, appointment of director for risk management, director of capital and director responsible for information disclosure policy. Banco Santander develops necessary actions on a continuous and progressive basis, aiming at adhering to the resolution. No relevant impacts were identified as a result of this standard.

For more information, see note 30 to this publication.

Capital Management Structure

Banco Santander's capital management structure has robust governance, which supports the processes related to this topic and establishes the responsibilities of each of the teams involved. In addition, there is a clear definition of the guidelines that must be adopted for effective capital management. Further details can be found in the Risk and Capital Management Structure, available on the Investor Relations website at www.santander.com.br/ri/gerenciamento-de-risco.

Internal Audit                     

The Internal Audit reports directly to the Board of Directors, with the Audit Committee responsible for its supervision.

Internal Audit is a permanent function and independent from any other function or unit, whose mission is to provide the Board of Directors and senior management with independent assurance on the quality and effectiveness of internal control and risk management systems (current or emerging) and government, thus contributing to the protection of the organization's value, solvency and reputation. The Internal Audit has a quality certificate issued by the Institute of Internal Auditors (IIA).

In order to fulfill its functions and coverage risks inherent in Banco Santander activity, Internal Audit has a set of tools developed internally and updated when necessary. Among them, the risk matrix stands out, used as a planning tool, prioritizing the risk level of the auditable universe considering, among others, its inherent risks, the latest audit rating, the degree of compliance with the recommendations and its dimension. The work programs, which describe the audit tests to be carried out, are periodically reviewed.

The Audit Committee and the Board of Directors have favorably analyzed and approved the Internal Audit work plan for 2020.

7. People

 

 

 

 

With the public health crisis triggered earlier this year, there has never been so much talk about care. Take care of yourself and the other. And at Santander, we continue to take care of our people, an essential element in the Company. After all, they are the ones who think, design, develop, interact and build what Banco Santander wants to be. This is why the Bank invests in each of the 38,531 employees here in Brazil.

In the Health theme, we designed our internal protocol for action to contain COVID-19, guided by Organs sanitary and health agencies. We have the Telemedicine service in partnership with Hospital Albert Einstein, guaranteeing high quality medical care to 100% of employees and their dependents, in addition to the investment in the Emotional Health Program that has supported our people in adapting and facing social distance.

For the development of our people, the Corporate Academy - Academia Santander, works for a strong, transversal culture, providing that everyone, online and in person, can improve what they already know and explore new possibilities. From mandatory certifications for certain functions to Digital Leadership courses, the most important thing is to leave the comfort zone and invest in yourself by expanding knowledge and repertoire.

Banco Santander supports leaders and managers so that they are close and available. This performance is based on three pillars: Feedback, Open Chat and Personalized Recognition, making sure that there is alignment between everyone through recurring and frank conversations, career guidance and special moments to reward the growth of the teams.

Banco Santander values ​​a diverse environment, where each competence and each difference is valued. An example is the Affinity Group, created to promote diversity and inclusion based on the 5 pillars: Female Leadership; Racial Equity; Disabled people; Diversity of Formations, Experiences and Generations and the LGBT + pillar. Another good example is the Talent Show. In it, Banco Santander opens space to get to know the most different performances and explore the universe of skills that exist in the Bank, allowing interaction and fraternization among colleagues.

Since 2007, the bank has held Santander Week, a week that aims to celebrate institutional culture and connect with the community, through initiatives that mobilize the more than 45 thousand employees. In the 2020 edition, the challenges posed by the pandemic motivated us to go beyond the borders of agencies and corporate buildings, inviting the whole society to participate even though remotely, but multiplying the effect of the campaign. The entire effort was invested in the “Mothers of the Favela” project, of the Central Única das Favelas (CUFA), more than R$7,226 million distributed to mothers who are heads of families in more than 5,000 favelas throughout Brazil. The dissemination of #efeitosantander throughout Brazil!

The result of all these actions is the high level of engagement, proven through two surveys that are carried out annually and that bring excellent indicators. One of them points out that at least 90% of employees say they want to stay at Banco Santander for a long time. It is believed that this satisfaction reflects positively on interactions with Customers, generating greater loyalty, sustainable growth and investments in Society, which leads Banco Santander to be the best Bank for all stakeholders.

8. Sustainable Development         

Santander Brasil's Sustainability strategy is based on three pillars: (i) Strategic and efficient use of Environmental Resources, (ii) Development of Potentials and (iii) Resilient and Inclusive Economy. The Bank's vision, through these pillars, is to contribute to a better, more prosperous and fair society, maintaining excellence and responsibility in internal management, with ethical values ​​as the basis and technology at the service of people and businesses.

The year 2020 will be marked by the transformation in ESG (environmental, social and governance) businesses with the launch of new products on the market; for the partnership with Itaú and Bradesco in making ten commitments to boost sustainable development in the Amazon region; and also for the social impact generated in the communities, mainly in supporting institutions to fight the COVID-19.

In total, R$32.3 billion were made possible in ESG businesses, an increase of more than 100% in relation to the previous year. Among the novelties of 2020 are the first ESG Linked Loan operation, which has interest rates linked to the achievement of strategic environmental commitments; the participation in the first issue of Green Bonds by a Brazilian company in the logistics sector in the international market; the issuance of the second operation carried out in the world of Sustainable Linked-Bond in the amount of US$1.25 billion and the launch of a line of R$5 billion to enable investments in sanitation. It was also the first bank to sell CBIOs, bonds issued by biofuel manufacturers to help distributors offset their carbon emissions, and launched a new financing model for agro cooperatives in the areas of solar energy and irrigation. The Bank relaunched the Ethical fund, one of the first with a sustainable theme and launched Santander Go Global Equity ESG, a fund that invests its resources in a variable income offshore with a diversified portfolio and that invests in high quality companies in the main countries of the world. and that present solid sustainability criteria. Among the main recognitions, we highlight the presence in the portfolio of B3's Corporate Sustainability Index (ISE) 2021, for the 11th consecutive year and the 1st Notable CNN 2020 Award, in the Social Responsibility category. The Bank also received the A- score on the Carbon Disclosure Project (CDP) and thus ranks among the 2% of companies with the best climate performance in Brazil and among the best 1.5% in Latin America.

 

 

 

 

In the social sphere, the Bank promoted a series of actions to support customers and society in the face of the global health crisis scenario, which totaled R$100 million. Among the actions, we highlight the support to five hospitals that acted on the front line in combating the COVID-19, in which more than R$7 million were collected, half of which was donated by employees and the other half doubled by the Bank. Through lives, employees also collected around 800 tons of food, in addition to clothes and hygiene products. The materials were donated to more than 500 institutions, impacting more than 170 thousand people in the country. In partnership with the Central Única de Favelas (CUFA), the Bank promoted a 12-hour festival, O Canal é Seu, broadcast on television and radio channels and raised more than R $ 3 million for the project Mãe da Favela. Considering the Bank's donation, a total of R$7 million was allocated to be distributed to 20 thousand families through SuperDigital. Finally, the Amigo de Valor program, in which employees and customers donate part of the income tax due to the Funds for the Rights of Children and Adolescents, allocated R$15.7 million to 59 projects.

Among the main recognitions, we highlight the presence in the portfolio of B3's Corporate Sustainability Index (ISE) 2021, for the 11th consecutive year and the 1st Notable CNN 2020 Award, in the Social Responsibility category. The Bank also received the A- score on the Carbon Disclosure Project (CDP) and thus ranks among the 2% of companies with the best climate performance in Brazil and among the best 1.5% in Latin America.

9. Pandemic Effects - COVID-19

The Bank monitors the effects of this pandemic that affect its operations and that may adversely affect its results. Since the beginning of the pandemic in Brazil, Committees have been set up to monitor the effects of the spread and its impacts, in addition to government actions to mitigate the effects of COVID-19.

The Bank maintains its operational activities, observing the protocols of the Ministry of Health and other Authorities. Among the actions taken, we highlight (a) the dismissal of employees from the risk group and intensification of work in the home office, (b) the definition of a follow-up protocol, with health professionals, for employees and family members who have the symptoms of COVID-19 and (c) increased communication about preventive measures and remote means of care.

The Federal Government through the National Monetary Council and the Central Bank of Brazil has adopted measures to mitigate the impacts caused by COVID-19, specifically on credit operations, fundraising, reduction of reserve requirements and aspects related to capital, such as ( a) measures to facilitate the renegotiation of credit operations without an increase in provisions, (b) a reduction in capital requirements, in order to expand the credit system's ability to grant credit and (c) a reduction in reserve requirements. , to improve liquidity conditions.

As of the date of this disclosure, the Bank has identified (a) increase in loan and financing operations, especially for companies; (b) increase in requests for renegotiation and extension of terms for credit operations; (c) impacts on the allowance for loan losses and (d) increase in funds raised.

Future impacts related to the pandemic, which have a certain degree of uncertainty as to their duration and severity and which, therefore, cannot be accurately measured at this time, will continue to be monitored by Management.

10. Independent Audit

The policy of Banco Santander, including its subsidiaries, in contracting services not related to the auditing of the Financial Statements by its independent auditors, is based on Brazilian and international auditing standards, which preserve the auditor's independence. This reasoning provides for the following: (i) the auditor must not audit his own work, (ii) the auditor must not exercise managerial functions in his client, (iii) the auditor must not promote his client's interests, and (iv) the need for approval of any services by the Bank's Audit Committee.

In compliance with the Securities and Exchange Commission Instruction 381/2003, Banco Santander informs that in the period ended December 31, 2020, PricewaterhouseCoopers did not provide services not related to the independent auditing of the Financial Statements of Banco Santander and controlled companies over 5% of the total fees related to independent audit services.

In addition, the Bank confirms that PricewaterhouseCoopers has procedures, policies and controls in place to ensure its independence, which include assessing the work performed, covering any service other than an independent audit of the Financial Statements of Banco Santander and its subsidiaries. This assessment is based on the applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and provision of professional services not related to the audit of the Financial Statements by its independent auditors during the period ended on December 31, 2020, did not affect the independence and objectivity in conducting the external audit exams carried out at Banco Santander and other entities of the Group, since the above principles were observed.

The Board of Directors

The Executive Board

 

 

 

 

 

(Authorized at the Board of Directors' Meeting of (02/02/2021).


 

 


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Balance Sheet

Bank

Consolidated

Notes

12/31/2020

12/31/2019

12/31/2020

12/31/2019

 Current Assets

586,324,279 

496,060,072 

603,330,917 

514,863,901 

  Cash

19,522,250 

9,543,649 

19,512,315 

9,924,644 

  Financial Instruments

511,695,788 

434,417,861 

523,139,590 

447,930,114 

    Interbank Investments

112,963,929 

82,235,455 

68,116,477 

42,571,395 

    Securities and Derivative Financial Instruments

96,534,510 

58,995,620 

107,235,066 

63,266,293 

    Derivative Financial Instruments

17,886,650 

2,653,751 

18,446,009 

8,894,341 

    Lending Operations

114,776,536 

86,609,089 

141,271,392 

116,559,396 

    Others Assets Instruments

10.a

169,534,163 

203,923,946 

188,070,646 

216,638,689 

  Leasing Operations

905,502 

1,216,238 

  Provisions for Expected Losses Associated with Credit Risk

8.e

(7,078,539)

(3,740,217)

(8,563,593)

(4,866,288)

  Other Assets

12 

62,184,780 

55,838,779 

68,337,103 

60,659,193 

Long-Term Assets

403,900,472 

342,475,655 

399,058,061 

342,679,166 

Financial Instruments

331,190,945 

272,362,351 

340,476,305 

288,712,079 

      Interbank Investments

30,940,159 

33,694,075 

1,581,776 

796,099 

      Securities and Derivative Financial Instruments

119,283,560 

103,773,467 

126,013,272 

112,747,234 

      Derivative Financial Instruments

14,394,066 

8,532,484 

14,394,066 

8,546,799 

      Lending Operations

164,803,732 

124,642,741 

196,839,325 

164,339,938 

      Others Assets Instruments

10.a

1,769,428 

1,719,584 

1,647,866 

2,282,009 

Leasing Operations

1,565,882 

1,584,760 

Provisions for Expected Losses Associated with Credit Risk

8.e

(14,756,906)

(14,921,750)

(16,503,895)

(16,541,804)

Other Assets

12 

16,309,573 

19,862,679 

19,747,782 

23,771,384 

Current and deferred tax assets

11 

35,748,981 

28,074,411 

39,920,834 

31,904,371 

Investments

23,208,562 

26,831,540 

332,851 

354,490 

   Investments:
      Investments in Associates and Subsidiaries

14 

23,187,617 

26,810,793 

311,852 

333,674 

     Other Investments

20,945 

20,747 

20,999 

20,816 

Fixed Assets

15 

6,102,538 

6,214,168 

7,046,685 

7,181,088 

Intangível

16 

6,096,779 

4,052,256 

6,471,617 

5,712,798 

Total Assets

990,224,751 

838,535,727 

1,002,388,978 

857,543,067 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank

 

Consolidated

Notes

12/31/2020

12/31/2019

12/31/2020

12/31/2019

 

 

 

Current Liabilities

642,103,558 

594,642,669 

657,760,203 

598,591,332 

Deposits and Other Financial Instruments

612,837,974 

561,166,493 

604,543,402 

550,316,567 

     Deposits

17 

292,520,822 

214,983,542 

290,741,035 

212,838,421 

     Money Market Funding

17 

119,188,451 

111,939,869 

114,214,008 

106,248,412 

     Local Borrowings

17 

53,750,603 

43,870,657 

53,790,402 

41,322,712 

     Domestic Onlendings - Official Institutions

17 

4,920,596 

3,697,638 

4,920,596 

3,697,638 

     Funds from Acceptance and Issuance of Securities

17 

36,043,882 

60,517,226 

30,549,046 

51,265,094 

     Derivative Financial Instruments

17,389,567 

3,774,395 

18,372,819 

10,112,463 

     Other Financial Liabilities

 18a

89,024,053 

122,383,166 

91,955,496 

124,831,827 

Other Liabilities

19 

26,145,866 

30,621,361 

48,710,732 

44,182,331 

Current and Deferred Tax Liabilities

11 

3,119,718 

2,854,815 

4,506,069 

4,092,434 

Long-Term Liabilities

268,624,333 

173,943,594 

264,154,358 

187,197,923 

Deposits and Other Financial Instruments

232,775,324 

139,047,452 

222,518,755 

144,417,032 

    Deposits

17 

99,950,659 

59,228,624 

99,310,763 

60,089,570 

    Money Market Funding

17 

40,783,009 

17,692,578 

40,783,009 

17,692,578 

     Local Borrowings

17 

1,221,159 

1,788,469 

1,221,159 

1,802,272 

    Domestic Onlendings - Official Institutions

17 

7,827,793 

8,056,939 

7,827,793 

8,056,939 

    Funds from Acceptance and Issuance of Securities

17 

51,015,924 

31,062,142 

40,078,721 

34,697,521 

    Derivative Financial Instruments

17,737,559 

10,208,817 

17,896,646 

10,510,899 

    Other Financial Liabilities

18a

14,239,221 

11,009,883 

15,400,664 

11,567,253 

Other Liabilities

19 

33,579,893 

31,236,486 

38,833,292 

38,581,468 

Current and Deferred Tax Liabilities

11 

2,269,116 

3,659,656 

2,802,311 

4,199,423 

Deferred Income

313,983 

261,741 

355,526 

285,219 

Stockholders' Equity

21 

79,182,877 

69,687,723 

78,968,183 

69,773,232 

    Capital

57,000,000 

57,000,000 

57,000,000 

57,000,000 

    Capital Reserves

302,665 

197,369 

298,313 

194,115 

    Profit Reserves

23,128,797 

12,909,736 

22,511,135 

12,986,778 

    Adjustment to Fair Value

(457,227) 

261,753 

(49,907) 

273,474 

    (-) Treasury Shares

(791,358) 

(681,135) 

(791,358) 

(681,135) 

Non Controlling Interest

21.e

1,150,708 

1,695,361 

Total Stockholders' Equity

79,182,877 

69,687,723 

80,118,891 

71,468,593 

Total Liabilities

990,224,751 

838,535,727 

1,002,388,978 

857,543,067 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Income Statements

Bank

Consolidated

Notes

 07/01 to 12/31/2020

01/01 to 12/31/2020

01/01 to 12/31/2019

07/01 to 12/31/2020

01/01 to 12/31/2020

01/01 to 12/31/2019

Income Related to Financial Operations

25,197,617 

99,165,058 

74,721,192 

29,424,800 

108,988,273 

82,740,412 

Loan Operations

18,228,031 

46,237,064 

42,352,541 

23,272,154 

57,764,083 

55,491,261 

Leasing Operations

131,269 

287,529 

359,013 

Securities Transactions

6.a

6,685,978 

57,259,976 

28,749,086 

5,032,562 

54,234,954 

24,912,162 

Derivatives Transactions

(795,801) 

(277,672) 

(2,509,211) 

35,849 

747,518 

(3,213,924) 

Foreign Exchange Operations

539,859 

(5,605,733) 

2,308,073 

411,606 

(5,605,733) 

1,345,226 

Compulsory Deposits

539,550 

1,551,423 

3,820,703 

541,360 

1,559,922 

3,846,674 

Expenses on Financial Operations

(5,563,232)

(83,174,153)

(50,096,357)

(7,841,847)

(87,750,952)

(51,759,742)

Funding Operations Market

17.b

(3,975,642) 

(44,594,777) 

(30,172,230) 

(4,686,817) 

(45,880,675) 

(29,214,553) 

Borrowings and Onlendings Operations

2,817,236 

(24,511,485) 

(6,309,687) 

2,804,244 

(24,542,771) 

(6,265,632) 

Operations of Sale or Transfer of Financial Assets

154,215 

(851,467) 

(182,779) 

154,296 

(851,335) 

(213,304) 

Allowance for Loan Losses

8.e

(4,559,041) 

(13,216,424) 

(13,431,661) 

(6,113,570) 

(16,476,171) 

(16,066,253) 

Gross Income Related to Financial Operations

19,634,385 

15,990,905 

24,624,835 

21,582,953 

21,237,321 

30,980,670 

Other Operating Revenues (Expenses)

(4,696,709)

(8,479,146)

(10,102,631)

(6,434,338)

(12,555,051)

(14,218,790)

Banking Service Fees

23 

5,041,389 

9,536,192 

10,252,006 

7,057,633 

13,184,767 

13,597,719 

Income Related to Bank Charges

23 

2,427,653 

4,590,143 

4,416,991 

2,821,992 

5,279,203 

5,086,733 

Personnel Expenses

24 

(3,077,785) 

(6,220,134) 

(6,786,496) 

(3,555,591) 

(7,177,217) 

(7,761,299) 

Other Administrative Expenses

25 

(6,057,677) 

(11,337,530) 

(10,318,009) 

(6,666,913) 

(12,800,395) 

(12,142,730) 

Tax Expenses

11.d

(2,122,340) 

(2,841,346) 

(3,228,943) 

(2,685,550) 

(3,980,474) 

(4,570,928) 

Investments in Affiliates and Subsidiaries

14 

1,184,901 

3,007,124 

2,724,415 

42,170 

51,718 

44,364 

Other Operating Revenues

26 

2,266,794 

4,600,025 

4,288,089 

3,086,895 

6,265,868 

5,193,964 

Other Operating Expenses

27 

(4,359,644) 

(9,813,620) 

(11,450,684) 

(6,534,974) 

(13,378,521) 

(13,666,613) 

Operating Income

14,937,676 

7,511,759 

14,522,204 

15,148,615 

8,682,270 

16,761,880 

Non-Operating Income

28 

9,460 

240,290 

102,588 

2,384 

238,967 

8,479 

Income Before Taxes on Income and Profit Sharing

14,947,136 

7,752,049 

14,624,792 

15,150,999 

8,921,237 

16,770,359 

Income Tax and Social Contribution

11 

(6,046,029)

7,972,186 

1,020,710 

(6,526,405)

6,539,467 

(462,073)

Provision for Income Tax

344,879 

(28,965) 

(1,061,570) 

(392,822) 

(1,519,306) 

(2,396,580) 

Provision for Social Contribution Tax

291,450 

(35,590) 

(729,267) 

(91,106) 

(835,326) 

(1,335,965) 

Deferred Tax Credits

(6,682,358) 

8,036,741 

2,811,547 

(6,042,477) 

8,894,099 

3,270,472 

Profit Sharing

(787,837) 

(1,668,087)

(1,557,012)

(894,429) 

(1,857,937)

(1,734,870)

Non Controlling Interest

21.e

(60,347) 

(133,387) 

(392,429) 

Net Income

8,113,270 

14,056,148 

14,088,490 

7,669,818 

13,469,380 

14,180,987 

Number of Shares (Thousands)

21.a

7,498,531 

7,498,531 

7,498,531 

$)

1,081.98 

1,874.52 

1,878.83 

The accompanying notes from Management are an integral part of these financial statements.


 

 

Statements of Comprehensive Income

Bank

Consolidated

07/01 to 12/31/2020

01/01 to 12/31/2020

01/01 to 12/31/2019

07/01 to 12/31/2020

01/01 to 12/31/2020

01/01 to 12/31/2019

Profit for the Period

8,113,270 

14,056,148 

14,088,490 

7,669,818 

13,469,380 

14,180,987 

Other Comprehensive Income that will be subsequently reclassified for profit or loss when specific conditions are met:

(493,902)

(1,291,042)

2,011,631 

(93,190)

(895,443)

2,023,353 

Available-for-sale financial assets

(499,061) 

(1,157,351) 

2,049,434 

(111,913) 

(775,316) 

2,061,612 

Available-for-sale financial assets

(873,548) 

(2,410,113) 

3,956,626 

(161,478) 

(1,703,396) 

3,968,802 

Income taxes

374,487 

1,252,762 

(1,907,192) 

49,565 

928,080 

(1,907,190) 

Cash flow hedges

5,159 

(133,691) 

(37,803) 

18,723 

(120,127) 

(38,259) 

Cash flow hedges

(170,249) 

(70,835) 

123,134 

(156,685) 

(57,271) 

120,598 

Income taxes

175,408 

(62,856) 

(160,937) 

175,408 

(62,856) 

(158,857) 

Other Comprehensive Income that won't be reclassified for Net income:

(107,441)

572,062 

(679,298)

(107,441)

572,062 

(679,299)

Defined Benefits plan

(107,441) 

572,062 

(679,298) 

(107,441) 

572,062 

(679,299) 

Defined Benefits plan

(148,160) 

1,130,271 

(1,366,688) 

(148,160) 

1,130,271 

(1,366,688) 

Income taxes

40,719 

(558,209) 

687,390 

40,719 

(558,209) 

687,389 

Comprehensive Income for the Period

7,511,927 

13,337,168 

15,420,823 

7,469,187 

13,145,999 

15,525,041 

Attributable to parent company

7,396,147 

13,012,612 

15,132,612 

Attributable to non-controlling interests

73,040 

133,387 

392,429 

Total

7,469,187 

13,145,999 

15,525,041 

The accompanying notes from Management are an integral part of these financial statements.


Statements of Changes in Stockholders' Equity – Bank

Profit Reserves

Adjustment to Fair Value

Notes

Capital

Capital Reserves

Legal Reserve

Reserve for Dividend Equalization

Own Position

Affiliates and Subsidiaries

Others Adjustment to Fair Value

Retained  Earnings Retained

(-)Treasury Shares

Total

Balances as of December 31, 2018

57,000,000 

140,707 

3,113,605 

6,506,949 

1,885,972 

114,491 

(3,071,043)

(461,432)

65,229,249 

Employee Benefit Plans

(679,298) 

(679,298) 

Treasury Shares

(218,814) 

(218,814) 

Result of Treasury Shares

5,796 

5,796 

Reservations for Share - Based Payment

  

50,866 

50,866 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

  

2,034,742 

(23,111) 

2,011,631 

Emission Costs of Treasury Shares

(889) 

(889) 

Net Income

14,088,490 

14,088,490 

Allocations:

Legal Reserve

 21.c

704,459 

(704,459) 

Dividends

21.b

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6.790.000) 

 

 

 

(6.790.000) 

Interest on Capital

 21.b

(4,010,000) 

(4,010,000) 

Reserve for Dividend Equalization

 21.c

2,584,723 

(2,584,723) 

Others

 21.c

692 

692 

Balances as of December 31, 2019

57,000,000 

197,369 

3,818,064 

9,091,672 

3,920,714 

91,380 

(3,750,341)

(681,135)

69,687,723 

Changes in the Period

56,662 

704,459 

2,584,723 

2,034,742 

(23,111)

(679,298)

(219,703)

4,458,474 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit Reserves

Adjustment to Fair Value

 

 

 

Notes

Capital

Capital Reserves

Legal Reserve

Reserve for Dividend Equalization

Own Position

Affiliates and Subsidiaries

Others Adjustment to Fair Value

Retained  Earnings Retained

(-)Treasury Shares

Total

Balances as of December 31, 2019

  

57,000,000 

197,369 

3,818,064 

9,091,672 

3,920,714 

91,380 

(3,750,341)

(681,135)

69,687,723 

Employee Benefit Plans

572,062 

572,062 

Treasury Shares

(110,223) 

(110,223) 

Emission Costs of Treasury Shares

Result of Treasury Shares

 21.a

(15,068) 

(15,068) 

Reservations for Share - Based Payment

  

120,364 

120,364 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

  

(1,323,847) 

32,805 

(1,291,042) 

Net Income

14,056,148 

14,056,148 

Allocations:

Legal Reserve

 21.c

702,807 

(702,807) 

Interest on Capital

 21.b

(3,325,000) 

(3,325,000) 

Minimum Mandatory Dividend

33 

(512,087) 

(512,087) 

Reserve for Dividend Equalization

 21.c

9,516,254 

(9,516,254) 

Balances as of December 31, 2020

57,000,000 

302,665 

4,520,871 

18,607,926 

2,596,867 

124,185 

(3,178,279)

(0)

(791,358)

79,182,877 

Changes in the Period

105,296 

702,807 

9,516,254 

(1,323,847)

32,805 

572,062 

(0)

(110,223)

9,495,154 

 

 

 

 

 

 

 

 

 

 

Profit Reserves

Adjustment to Fair Value

 

 

 

Notes

Capital

Capital Reserves

Legal Reserve

Reserve for Dividend Equalization

Own Position

Affiliates and Subsidiaries

Others Adjustment to Fair Value

Retained  Earnings Retained

(-)Treasury Shares

Total

Balances as of June 30, 2020

  

57,000,000 

197,961 

4,115,208 

13,847,406 

3,089,744 

125,210 

(3,070,838)

(792,508)

74,512,183 

Employee Benefit Plans

(107,441) 

(107,441) 

Treasury Shares

1,150 

1,150 

Emission Costs of Treasury Shares

Result of Treasury Shares

 21.a

1,678 

1,678 

Reservations for Share - Based Payment

  

103,026 

103,026 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

  

(492,877) 

(1,025) 

(493,902) 

Net Income

8,113,270 

8,113,270 

Allocations:

Legal Reserve

 21.c

405,663 

(405,663) 

Interest on Capital

 21.b

(2,435,000) 

(2,435,000) 

Minimum Mandatory Dividend

33 

(512,087) 

(512,087) 

Reserve for Dividend Equalization

 21.c

4,760,520 

(4,760,520) 

Balances as of December 31, 2020

57,000,000 

302,665 

4,520,871 

18,607,926 

2,596,867 

124,185 

(3,178,279)

(791,358)

79,182,877 

Changes in the Period

104,704 

405,663 

4,760,520 

(492,877)

(1,025)

(107,441)

1,150 

4,670,694 

1.      

 

 


Statements of Changes in Stockholders' Equity – Consolidated

Profit Reserves

Adjustment to Fair Value

Notes

Capital

Capital Reserves

Legal Reserve

Reserve for Dividend Equalization

Own Position

Affiliates and Subsidiaries

Others Adjustment to Fair Value

Retained  Earnings Retained

(-)Treasury Shares

Stockholders' Equity

Minority  Interest

Total Stockholders' Equity

Balances as of December 31, 2018

57,000,000 

142,414 

3,113,606 

6,509,735 

1,885,972 

114,491 

(3,071,043)

(461,432)

65,233,743 

2,007,334 

67,241,077 

Employee Benefit Plans

(679,299) 

(679,299) 

(679,299) 

Treasury Shares

(218,814) 

(218,814) 

(218,814) 

Result of Treasury Shares

5,795 

5,795 

5,795 

Reservations for Share - Based Payment

  

45,906 

45,906 

45,906 

Fair Value Adjustment - Securities and Derivative Financial Instruments

2,046,464