6-K 1 EDGAR_1T21_BRGAAP.htm EDGAR_1T21_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 March, 2021


 

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.. 2

Balance Sheet 13

Statement of income. 15

Statement of changes in stockholders' equity – Bank. 17

Statement of changes in stockholders' equity - Consolidated. 18

Statement of cash flows. 20

Statement of value added. 21

1.General Information. 22

2.Presentation of Financial Statements. 22

3.Significant Accounting Policies. 22

4.Cash and Cash Equivalents. 23

5.Interbank Investments. 23

6.Securities and Derivatives Financial Instruments. 24

7.Interbank Accounts. 36

8.Loan Portfolio and Allowance for Loan Losses. 36

9.Other Financial Assets. 39

10.Tax Assets and Liabilities. 39

11.Other Assets. 43

12.Dependences Information and Foreign Subsidiary. 44

13.Investments in Affiliates and Subsidiaries Subsidiary. 45

14.Intangibles. 49

15.Funding. 50

16.Other Financial Liabilities. 52

17.Other Payables – Other 52

18.Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security. 53

19.Stockholders’ Equity. 57

20.Related Parties. 59

21.Income from Services Rendered and Banking Fees. 65

22.Personnel Expenses. 65

23.Other Administrative Expenses. 65

24.Other Operating Income. 65

25.Other Operating Expenses. 65

26.Non-Operating Income. 66

27.Employee Benefit Plans - Post-Employment Benefits. 66

28.Risk Management, Capital and Sensitivity Analysis. 67

29.Other information. 70

30.Subsequent Event 73

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Performance Review

Dear Stockholders:

We present the Management Report to Individual and Condensed Consolidated Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Bank) related to the period ended march 31, 2021, 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 Condensed Interim Financial Statements based on the international accounting standard issued by the International Accounting Standards Board (IASB) for the period ended march 31, 2021 will be simultaneously released at www.santander.com.br/ri.

1. Macroeconomic Environment

Banco Santander estimates that, in the first quarter of 2021, the global scenario continued to be marked by the unfolding of the COVID-19 pandemic, with the first affected countries facing aggravation in the context of contamination, which culminated in the resumption of social distancing policies in several regions of the globe. The Bank points out that this worsening occurred despite the rapid evolution in the process of developing vaccines against the disease and even though some countries are showing rapid progress in their immunization programs. Despite the uncertainties brought about by the pandemic, the fiscal and monetary stimulus packages implemented by the vast majority of economies continued to make the Bank witness the release of economic activity indicators, signaling the continuity of the recovery trend after the strong retraction observed in the second quarter of 2020, although with some accommodation at the margin due to this “second wave” of the pandemic. For this reason, debates have become more intense about the need not only to continue with the current stimuli, but also to grant new impulses, as was the case with the approval of a public spending package in the USA that will total US$1.9 trillion. Santander believes that these fiscal and monetary stimuli continued to help support the prices of financial assets. For example, the North American S&P500 index, which had fallen from 3.2 thousand points to 2.5 thousand points between December 2019 and March 2020, advanced to approximately 3.8 thousand points in the fourth quarter of 2020 and came close to the 4.0 thousand points in the first quarter of 2021.

In the country, Banco Santander considers that the misfortunes generated by COVID-19, which also registered an increase in both the number of contaminated people, as well as hospitalizations and deaths in the country, shifted the focus from discussions on structural reforms to debates on measures to combat to the economic impacts caused by the pandemic, mainly for actions directed at the poorest sections of the population and the business segments most exposed to the misfortunes caused by the social distancing policies that had to be resumed in the beginning of 2021. In the view of Santander, such temporary measures were essential to mitigate the impact of the crisis in 2020, but they caused a substantial increase in public expenditures throughout 2020 and, therefore, caused a significant increase in the level of indebtedness of the Brazilian government in the past year. This situation, the Bank evaluates, only reinforces the need to resume discussions on structural reforms after overcoming the pandemic to prevent the trajectory of Brazilian public indebtedness from becoming unsustainable and justified the approval of a new aid program of lesser amount than the observed in 2020 together with compensatory measures aimed at reducing and controlling expenses in the medium and long-term horizons (the so-called Emergency PEC).

As for the performance of the Brazilian economy, Banco Santander observed the release of national accounts data showing that Brazilian GDP decreased 4.1% in 2020 compared to the previous year. The result was better than estimates made shortly after the pandemic emerged - the median of the estimates indicated a 6.6% retraction at the end of the second quarter of 2020. The Bank estimates that the support provided by the emergency aid provided last year had great influence on this less negative performance than previously imagined, driving the recovery observed in the second half of 2020. Economic activity data for the first quarter of 2021 indicate that the recovery trajectory - in seasonally adjusted terms - continued in the period, albeit with less force (our projection indicates quarterly expansion of 0.2% compared to the last three months of 2020, when the GDP advanced 3.2% in the same terms. For the year of 2021, Banco Santander projects that the Brazilian economy will gain traction throughout coming quarters and ending with a 3.0% growth compared to 2020.

Despite the economic downturn observed last year and the loss of dynamism in economic growth at the beginning of 2021, inflation remained at high levels in the wake of pressures caused by higher costs caused by the significant exchange rate devaluation, as well as problems in the production chains. that hindered the conditions of supply of certain items. In addition to this, international factors such as the high Chinese demand for animal proteins and grains and the increase in international fuel prices also contributed to the fact that the dynamics of domestic prices worsened significantly, which led to the IPCA - consumer price index used as a target by national monetary authority - to close the year 2020 at 4.5% year-on-year and continue to advance to 6.1% at the end of the first quarter of 2021.

Banco Santander estimates that this pressure will last for a few more months and will suffer a loss of intensity throughout the second half of this year, which should lead the IPCA to end 2021 with an annual variation of 5.0%, a level close to the ceiling of the inflation tolerance imposed on the Central Bank of Brazil. For this reason, the Brazilian monetary authority initiated a process of partial normalization of the basic interest rate with an increase of the Selic rate by 0.75 percentage points in the first quarter of 2021, in addition to signaling the intention to continue raising it by more some period to reduce the risk of exceeding the ceiling of the tolerance interval defined for 2021 and to increase the chance that inflation will converge towards the target of 3.50% defined for 2022. In the view of Banco Santander, the Central Bank of Brazil should continue to raise the Selic rate in the coming quarters and bring it to the level of 5.50% pa in the fourth quarter of 2021, when it is expected to pause the monetary policy adjustment cycle.

The increase in the interest rate will consequently increase the cost of rolling over government debt, in addition to limiting the speed of economic expansion. In the Bank's view, the scenario of slow growth and high public indebtedness is something that has kept international investors still fearful about the acquisition of Brazilian financial assets. This stance was an obstacle for the trajectories recorded by both the 5-year CDS in Brazil and the exchange rate to present a favorable performance in the first quarter. In the first case, the Brazilian government's instrument of protection against insolvency problems ended the period close to 230 basic points, a level higher than the 140 basic points observed at the end of 2020. In the case of the exchange rate, the Bank saw a process taking place similar with the parity against the dollar rising to R$5.75/US$ at the end of March 2021 against R$5.20/US$ at the end of the fourth quarter of last year. In both cases, Santander considers that a possible trigger for an eventual improvement in performance relates to the reduction of doubts about the Brazilian fiscal dynamics for the coming years. Actions such as the approval of PEC Emergencial help in this regard, but given the substantial increase in public indebtedness recently, Banco Santander assesses that other measures to control and reduce expenses need to be implemented. In the view of Santander, this will only be possible with the resumption of structural reforms.

2. Performance                 

Consolidated Income Statements (R$ Millions)

1Q21

1Q20

annual changes%

4Q20

quarter changes %

Financial Income

37,756.9 

51,691.9 

(27.0) 

7,641.5 

394.1 

Financial Expenses

(29,816.7) 

(55,734.1) 

(46.5) 

6,651.9 

(548.2) 

Gross Profit From Financial Operations (a)

7,940.2 

(4,042.2)

(296.4)

14,293.4 

(44.4)

Other Operating (Expenses) Income (b)

(4,035.6) 

(2,473.0) 

63.2 

(3,838.5) 

5.1 

Operating Income

3,904.6 

(6,515.2)

(159.9)

10,454.9 

(62.7)

Non-Operating Income

29.2 

204.8 

(85.7) 

(13.5) 

(316.2) 

Income Before Taxes on Income and Profit Sharing

3,933.8 

(6,310.4)

(162.3)

10,441.4 

(62.3)

Income Tax and Social Contribution (a)

(620.4) 

10,606.4 

(105.8) 

(6,113.8) 

(89.9) 

Profit Sharing

(471.9) 

(479.1) 

(1.5) 

(436.7) 

8.1 

Non-Controlling Interest

(25.3) 

(42.9) 

(41.1) 

(32.3) 

(21.8) 

Consolidated Net Income

2,816.3 

3,774.0 

(25.4)

3,858.7 

(27.0)

 

OPERATING RESULT BEFORE ADJUSTED TAXATION

1Q21

1Q20

annual
variation%

4Q20

quarter
variation%

(R$ Million)

Result before Taxation on Profit and Participation

3,933.8 

(6,310.4) 

(162.3) 

10,441.4 

(62.3) 

Foreign Exchange Hedge

2,049.5 

12,298.8 

(83.3) 

(4,248.0) 

(148.3) 

Operating Income Before Adjusted Taxation

5,983.3 

5,988.4 

(0.1)

6,193.4 

(3.4)

INCOME TAX

1Q21

1Q20

annual
variation%

4Q20

quarter
variation%

(R$ Million)

Income tax and social contribution

(620.4) 

10,606.4 

(105.8) 

(6,113.8) 

(89.9) 

Foreign Exchange Hedge

(2,049.5) 

(12,298.8) 

(83.3) 

4,248.0 

(148.3) 

Adjusted Income Tax and Social Contribution

(2,669.9)

(1,692.4)

57.8 

(1,865.8)

43.1 

 

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. The Bank continued to evolve its risk models, which helped to maintain the quality of the loan portfolio. 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 annualized return on the 1st quarter of 2021 based on the accounting result on average shareholders' equity reached 14.9%, down 3.2 pp and 17.7% compared to the first quarter of 2020.

a) Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches

Banco Santander operates branches in the Cayman Islands and Luxembourg, which are used mainly to raise funds in the international capital and financial markets, to supply the Bank with credit lines that are extended to its customers for trade finance. abroad and working capital. To cover exposure to exchange rate variations, the Bank uses external funding and derivative instruments. According to Brazilian tax rules, as of January 2021, 50% of the gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments started to be computed in determining the real profit and in the calculation basis of the Contribution Social Contribution on Net Income (CSLL) of the investing legal entity domiciled in the country, while the gains or losses on bonds and derivative instruments used as hedging are 100% taxable or deductible. The purpose of these derivative instruments is to protect the net income after tax. As of 2022, any exchange variation will be computed on the taxable basis of the IRPJ and CSLL.

The different tax treatment of such exchange differences results in volatility in the operating result and in the tax expense accounts (PIS / COFINS) and income taxes (IR / CSLL), as shown below:

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

1T21

1T20

annual changes%

4Q20

quarter changes %

Exchange Variation - Profit From Financial Operations

5,015,1 

18,586,1 

(73,02) 

5,015,4 

(0,01) 

Derivative Financial Instruments - Profit From Financial Operations

(7,409,4) 

(31,411,7) 

(76,41) 

9,723,8 

(176,20) 

Income Tax and Social Contribution

2,049,5 

12,298,8 

(83,34) 

(4,248,0) 

(148,25) 

PIS/Cofins - Tax Expenses

344,5 

526,9 

(34,62) 

(460,4) 

(174,83) 

 

2.2) Assets and Liabilities

Consolidated Balance Sheets
(R$ Millions)

Mar/21

Dec/20

quarter changes%

Current and Long-Term Assets

966,345,9 

988,537,8 

(2,2) 

Permanent Assets

11,803,7 

13,851,2 

(14,8) 

Total Assets

978,149,6 

1,002,389,0 

(2,4) 

Current and Long-Term Liabilities

898,805,4 

921,914,6 

(2,5) 

Deferred Income

357,9 

355,5 

0,7 

Non-Controlling Interest

1,223,6 

1,150,7 

6,3 

Stockholders' Equity

77,762,7 

78,968,2 

(1,5) 

Total Liabilities and Stockholders' Equity

978,149,6 

1,002,389,0 

(2,4)

2.3) Stockholders’ Equity

As of March 31, 2021, Banco Santander 's consolidated shareholders' equity decreased by 1.50% compared to December 31, 2020.

The change in Shareholders' Equity between March 31, 2021 and December 31, 2020, was mainly due to the net income for the quarter in the amount of R$ 2,816,264 thousand, the negative equity valuation adjustment (marketable securities and instruments derivative financial instruments) in the amount of R $ 1,627,362 thousand and a capital reduction in the amount of R$ 2,000,000 thousand.

2.4) 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, greater 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 Resolutions No. 4,193 / 2013 and No. 4,783 / 2020, for 2020 the PR requirement was 10.25%, including 8.00% of Minimum Reference Equity plus 1.25% of Additional Capital Conservation and 1.00% Systemic Additional. PR Level I was 8.25% and Minimum Minimum Capital was 6.75%.

For March, the requirements remain unchanged, but over the course of 2021 the Additional Capital Conservation will undergo two increases, going to 1.625% from April and to 2.00% from October. Thus, at the end of the year 2021, the PR requirement will be 11.00%, considering 8.00% of the Minimum Equity of Reference plus 2.00% of Additional Capital Conservation and 1.00% of Additional Systemic. The PR Level I and Minimum Principal Capital requirements will be 9.00% and 7.50%, respectively.

Continuing the adoption of the rules established by CMN Resolution No. 4,192 / 2013, as of January 2015, the Prudential Consolidated, defined by CMN Resolution No. 4,280 / 2013, came into force.

The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:

Basel Index%

Mar/21

Dec/20

Basel I Ratio

13.91 

14.06 

Basel Principal Capital

12.63 

12.87 

Basel Regulatory Capital

15.18 

15.25 

 

2.5) Main Subsidiaries

The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio prepared in accordance with accounting practices adopted in Brazil applicable to entities authorized to operate by Bacen, for the period ended March 31, 2021, of the main subsidiaries of Banco Santander:

Subsidiaries (R$ Millions)

Total Assets

Stockholders' Equity

Net
Income

Loan
Portfolio

Ownership/Interest (%)

Aymoré Crédito, Financiamento e Investimento S.A.

51,419.8 

1,542.3 

356.7 

49,620.9 

100% 

Banco Bandepe S.A.

30,099.6 

5,334.7 

30.5 

100% 

Banco RCI Brasil S.A.

12,386.0 

1,481.2 

27.4 

9,276.4 

39.89% 

Santander Leasing S.A. Arrendamento Mercantil

8,502.8 

5,686.0 

61.9 

2,188.7 

100% 

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

7,127.9 

3,596.9 

220.0 

100% 

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

1,812.1 

1,758.6 

34.0 

100% 

Santander Corretora de Câmbio e Valores Mobiliários S.A.

1,401.6 

731.1 

23.5 

100% 

 

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. Corporate Restructuring

During the period ended March 31, 2021 and the year ended on December 31, 2020, several corporate movements were implemented in order to reorganize the operations and activities of the entities in accordance with the business plan of Banco Santander.

For additional information, see explanatory note to financial statements nº13.

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 March 31, 2021, approve the partial spin-off of the Company, which will result in the segregation of the shares of its ownership issued by Getnet, with version 2 of the split portion to Getnet, pursuant to the Protocol and Justification of Santander Partial Spin-off (“Partial Spin-Off”).

On March 3rd, 2021, he became aware of the resignation request submitted by Tarcila Reis Corrêa Ursini to the position of member of the Company's sustainability Committee.

On February 25, 2021, to approve the proposal for the spin-off of the payment methods operation, carried out by the subsidiary, Getnet Adquirência e Serviços para Meios de Payment SA (“Getnet”), in order to concentrate the Group's technology and payments businesses Santander within PagoNxt, a new global payments platform focused on technology.

On February 2nd, 2021, 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, 2020.

On February 2nd, 2021, approve, in continuity with the repurchase program that expired on November 4, 2020, a new repurchase program for Units and ADRs issued by Banco Santander, directly or through its Cayman branch, for maintenance in treasury or subsequent sale.

On February 2, 2021, approve the proposal for declaration and payment of dividends, in the amount of R$ 512 million, to be paid as of March 3, 2021, without any remuneration as monetary restatement.

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 reelection of Ms. Monique Silvano Arantes Bernardes as the Company's Ombudsman for a new term of 1 (one) year.

On September 1st, 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 payment as of September 25, 2020, without any indexation.

On July 3, 2020, approve the election of Mr. João Marcos Pequeno De Biase as an Officer without a specific designation of the Bank.

On June 29, 2020, approve (i) the dismissal 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, to approve the election of the members of the Company's Audit Committee for a new term, they are: Ms. Deborah Stern Vieitas, Mr. Luiz Carlos Nannini and Ms. Maria Elena Cardoso Figueira.

On May 21, 2020, approve the new version of the Remuneration Policy, in accordance with the positive recommendation of the Remuneration Committee, in compliance with the provisions of CMN Resolution No. 3,921 / 2010.

On May 21, 2020, approve the local implementation of the versions presented for the Policies of: (i) Social Responsibility; (ii) Social Investment, and (iii) Corporate Culture, according to a positive recommendation from the Sustainability Committee.

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, approve the proposal to highlight and pay interest on own capital, in the gross amount of R$ 890 million paid on June 26, 2020, without any monetary restatement.

On April 27, 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 and the Banco Santander Consolidated Intermediate Condensed Financial Statements, prepared in accordance with International Financial Reporting Standards (IFRS), both referring to the semester ended March 31, 2020.

On April 23, 2020, learn about 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 Compensation Committee of the Bank; (ii) to approve the appointment of Mr. Álvaro Antonio Cardoso de Souza, current member of the Bank's Nomination and Governance Committee, to serve as the Coordinator of the Committee; (iii) approve the dismissal of Mr. Bernardo Parnes from the position of Coordinator of the Risks and Compliance Committee of the Bank; (iv) to approve the appointment of Mr. Álvaro Antonio Cardoso de Souza, current member of the Risks and Compliance Committee of the Bank, for the function of Coordinator of said Committee; and (v) approve the dismissal of Mr. José Roberto Machado Filho, Executive Officer of the Bank.

On April 7, 2020, approve the election of Mr. Marcelo Augusto Dutra Labuto as an Officer with no specific designation of the Bank.

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 26, 2020, approve Banco Santander Form 20-F for the year ended December 31, 2019.

On February 26, 2020, approve the Banco Santander Consolidated Financial Statements for the year ended December 31, 2019, prepared in accordance with International Accounting Standards (IFRS).

On February 3, 2020, approve the election of Messrs. 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.

The resolutions of the Board of Directors for the year 2019 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), which comes into force as of 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 the information disclosure policy. Banco Santander develops necessary actions on a continuous and progressive basis, with a view to adhering to the resolution. No relevant impacts were identified as a result of this standard.

For more information, see note 28 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.

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 2021.

7. People

With the public health crisis unleashed in early 2020, care has never been talked of so much. 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 44,806 employees here in Brazil.

In the Health theme, we designed our internal protocol for acting in the containment of 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 coping with social distance.

For the development of our people, the Corporate University - 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 get out of 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 there is alignment between everyone through recurring and frank conversations, career direction 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.

In the sphere of Customers, we remain focused on offering the best products and services, in a Simple, Personal and Fair manner. For this, the active listening process is essential and, therefore, in March 2021, we received 12 Customers remotely to participate in a café with our CEO, Sérgio Rial, and with live transmission to 100% of the Organization. The special “Café com Rial” on Consumer Day had a record audience of 41,972 connections, placing the Client's seat as the most important in our organization and signaling that our consumers are the center of our discussions.

The result of all these actions is the high level of engagement, proven by means of 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.

We recognize our role as a financial institution in fostering sustainable business, helping society to prosper. We highlight some initiatives in 1Q21:

• In this quarter, we made feasible R$ 18.1 billion in sustainable business (Dec/2020 - R$ 27 billion), 74% of which via bonds.

• Grupo Santander announced its ambition to achieve zero net carbon emissions by 2050. This objective includes our own activity, in which we have been carbon neutral since 2020, as well as customer emissions.

• We started our efforts to make our cards more eco-efficient. We will start to use recycled PVC as raw material and this should generate a reduction of 50 tons of plastic waste (considering the entire portfolio transformed into recycled PVC card). In July of this year we will have the first 1,000 cards arriving at the hands of our customers, and in six years we will change the entire plastic base we have on the market.

• We made the first disbursement of the R$ 50 million credit line to cooperatives and agribusinesses for crops in the Amazon.

• By the end of 2021, our ambition is to have 100% of our stores supplied with renewable energy. In addition, with the adoption of the digital billet by our Financeira customers, we believe that we will reduce 51 tons of paper this year.

We intensified our actions in support of society as a form of support in the fight against COVID-19 and we continued with our strategy of private social investment with our support programs for children, adolescents, the elderly and entrepreneurs.

• We donated 100,000 basic food baskets to the Brasil sem Fome campaign. In addition, we are mobilized to collect 500,000 basic food baskets in partnership with our private peers, Itaú and Bradesco.

• We have opened the public notices for the next edition of our Amigo de Valor and Parceiro do Idoso programs, in which we invited more than 1,900 municipalities to apply.

9. Effects of Pandemic - 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 prevention measures and remote means of care.

Future impacts related to the pandemic, which have a certain degree of uncertainty as to their duration and severity and, 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 quarter ended March 31, 2021, PricewaterhouseCoopers did not provide services not related to the independent auditing of the Financial Statements of Banco Santander and controlled companies greater than 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 auditing of the Financial Statements by its independent auditors during the quarter ended March 31, 2021, did not affect the independence and objectivity in conducting the external audit work carried out at Banco Santander and other entities of the Group, since the above principles have been observed.

The Board of Directors

The Executive Board

 

(Authorized at the Board of Directors' Meeting of 04/27/2021)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Balance Sheet

Bank

Consolidated

Notes

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Current assets

577,590,151 

586,324,279 

576,879,119 

603,330,917 

Cash

14,421,734 

19,522,250 

14,434,212 

19,512,315 

Financial Instruments

506,589,819 

511,695,788 

501,095,393 

523,139,590 

     Interbank Investments

128,804,270 

112,963,929 

78,111,735 

68,116,477 

     Securities and Derivative Financial Instruments

95,233,679 

96,534,510 

104,927,325 

107,235,066 

     Derivative Financial Instruments

16,812,854 

17,886,650 

15,661,121 

18,446,009 

     Lending Operations

117,251,023 

114,776,536 

149,863,936 

141,271,392 

Others Assets Instruments

148,487,993 

169,534,163 

152,531,276 

188,070,646 

Leasing Operations

1,082,230 

905,502 

Provisions for Expected Losses Associated with

Credit Risk

8.e

(6,989,984)

(7,078,539)

(8,550,839)

(8,563,593)

Other Assets

11 

63,568,582 

62,184,780 

68,818,123 

68,337,103 

Long-Term Assets

407,789,382 

403,900,472 

401,270,539 

399,058,061 

Financial Instruments

341,771,746 

331,190,945 

348,951,689 

340,476,305 

     Interbank Investments

29,261,583 

30,940,159 

1,516,986 

1,581,776 

     Securities and Derivative Financial Instruments

122,243,790 

119,283,560 

128,812,027 

126,013,272 

     Derivative Financial Instruments

14,944,742 

14,394,066 

14,984,667 

14,394,066 

     Lending Operations

173,681,529 

164,803,732 

201,997,907 

196,839,325 

Others Assets Instruments

1,640,102 

1,769,428 

1,640,102 

1,647,866 

Leasing Operations

1,417,703 

1,565,882 

Provisions for Expected Losses Associated with

Credit Risk

8.e

(15,389,391)

(14,756,906)

(17,177,585)

(16,503,895)

Other Assets

11 

12,723,293 

16,309,573 

16,001,383 

19,747,782 

Current and deferred tax assets

10 

35,976,815 

35,748,981 

40,273,644 

39,920,834 

Investments

21,790,967 

23,208,562 

353,682 

332,851 


      Investments in Associates and Subsidiaries

13 

21,770,039 

23,187,617 

332,700 

311,852 

      Other Investments

20,928 

20,945 

20,982 

20,999 

Fixed Assets

5,969,321 

6,102,538 

6,294,700 

7,046,685 

Intangible

14 

4,946,631 

6,096,779 

5,155,323 

6,471,617 

Total Assets

985,379,533 

990,224,751 

978,149,658 

1,002,388,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank

Consolidated

Notes

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Current Liabilities

636,232,034 

642,103,558 

637,768,214 

657,760,203 

Deposits and Other Financial Instruments

612,583,070 

612,837,974 

602,872,380 

604,543,402 

  Deposits

15 

289,716,113 

292,520,822 

286,757,871 

290,741,035 

Money Market Funding

15 

133,779,800 

119,188,451 

127,240,294 

114,214,008 

  Local Borrowings

15 

70,144,654 

53,750,603 

70,144,654 

53,790,402 

Domestic Onlendings - Official Institutions

15 

4,655,948 

4,920,596 

4,655,948 

4,920,596 

  Funds from Acceptance and Issuance of Securities

15 

31,362,195 

36,043,882 

28,164,385 

30,549,046 

  Derivative Financial Instruments

16,415,288 

17,389,567 

15,955,384 

18,372,819 

Other Financial Liabilities

16a

66,509,072 

89,024,053 

69,953,844 

91,955,496 

Other Liabilities

17 

22,872,881 

26,145,866 

31,350,794 

48,710,732 

Current and Deferred Tax Liabilities

10.b

776,083 

3,119,718 

3,545,040 

4,506,069 

Long-Term Liabilities

270.765.410 

268,624,333 

261,037,230 

264,154,358 

Deposits and Other Financial Instruments

234,256,963 

232,775,324 

221,063,881 

222,518,755 

    Deposits

15 

96,445,734 

99,950,659 

96,682,944 

99,310,763 

    Money Market Funding

15 

38,183,067 

40,783,009 

38,183,067 

40,783,009 

    Local Borrowings

15 

1,362,487 

1,221,159 

1,362,487 

1,221,159 

    Domestic Onlendings - Official Institutions

15 

7,669,790 

7,827,793 

7,669,790 

7,827,793 

Funds from Acceptance and Issuance of Securities

15 

57,082,364 

51,015,924 

42,562,061 

40,078,721 

Derivative Financial Instruments

18,050,613 

17,737,559 

18,121,963 

17,896,646 

    Other Financial Liabilities

16a

15,462,908 

14,239,221 

16,481,569 

15,400,664 

Other Liabilities

17 

32,719,097 

33,579,893 

37,519,062 

38,833,292 

Current and Deferred Tax Liabilities

10.b

3,789,350 

2,269,116 

2,454,287 

2,802,311 

Deferred Income

317,696 

313,983 

357,903 

355,526 

Stockholders' Equity

19 

 

 

 

 

 Capital

19.a

55,000,000 

57,000,000 

55,000,000 

57,000,000 

 Capital Reserves

19.c

266,601 

302,665 

259,249 

298,313 

 Profit Reserves

19.c

22,601,353 

23,128,797 

22,601,353 

22,511,135 

 Adjustment to Fair Value

(2,070,367) 

(457,227) 

(1,696,456) 

(49,907) 

Lucros Acumulados

2,976,576 

2,308,285 

 (-) Treasury Shares

19.d

(709,770) 

(791,358) 

(709,770) 

(791,358) 

Non Controlling Interest

19.e

1,223,650 

1,150,708 

Total Stockholders' Equity

78,064,393 

79,182,877 

78,986,311 

80,118,891 

Total Liabilities

985,379,533 

990,224,751 

978,149,658 

1,002,388,978 


 

 

 

Statement of income

Bank

Consolidated

Notes

01/01 to 03/31/2020

01/01 to 03/31/2020

01/01 to 03/31/2020

01/01 to 03/31/2020

Income Related to Financial Operations

35,554,559 

48,959,478 

37,756,910 

51,691,916 

Loan Operations

12,569,873 

16,958,011 

15,180,550 

20,655,005 

Leasing Operations

53,523 

82,461 

Securities Transactions

6.a.V

16,047,237 

35,664,305 

15,625,403 

34,381,634 

Derivatives Transactions

6,078,714 

308,119 

6,037,724 

544,242 

Foreign Exchange Operations

594,617 

(4,628,416) 

594,617 

(4,633,697) 

Compulsory Deposits

264,118 

657,459 

265,093 

662,271 

Expenses on Financial Operations

(29,174,884)

(54,681,130)

(29,816,689)

(55,734,144)

Funding Operations Market

15.b

(15,992,807) 

(28,945,193) 

(16,095,396) 

(29,148,817) 

Borrowings and Onlendings Operations

(9,948,543) 

(22,093,886) 

(9,946,402) 

(22,191,526) 

Operations of Sale or Transfer of Financial Assets

(398,057) 

(791,598) 

(398,049) 

(807,418) 

Allowance for Loan Losses

8.e

(2,835,477) 

(2,850,453) 

(3,376,842) 

(3,586,383) 

Gross Income Related to Financial Operations

6,379,675 

(5,721,652)

7,940,221 

(4,042,228)

Other Operating Revenues (Expenses)

(2,986,981)

(1,391,540)

(4,035,615)

(2,472,989)

Banking Service Fees

21 

2,539,278 

2,366,497 

3,510,034 

3,194,598 

Income Related to Bank Charges

21 

1,169,282 

1,115,778 

1,341,942 

1,287,686 

Personnel Expenses

22 

(1,498,376) 

(1,627,184) 

(1,777,528) 

(1,873,708) 

Other Administrative Expenses

23 

(3,817,562) 

(2,601,387) 

(4,048,120) 

(3,064,743) 

Tax Expenses

(467,477) 

(231,023) 

(749,627) 

(526,058) 

Investments in Affiliates and Subsidiaries

11 

929,222 

895,552 

7,651 

7,272 

Other Operating Revenues

24 

760,766 

1,417,149 

1,254,452 

1,882,096 

Other Operating Expenses

25 

(2,602,114) 

(2,726,922) 

(3,574,419) 

(3,380,132) 

Operating Income

3,392,694 

(7,113,192)

3,904,606 

(6,515,217)

Non-Operating Income

26 

25,031 

201,446 

29,185 

204,819 

Income Before Taxes on Income and Profit Sharing

3,417,725 

(6,911,746)

3,933,791 

(6,310,398)

Income Tax and Social Contribution

10.c

(12,054)

11,137,790 

(620,383)

10,606,419 

Provision for Income Tax

(130,227) 

(144,241) 

(576,630) 

(548,650) 

Provision for Social Contribution Tax

(50,678) 

(103,883) 

(282,010) 

(323,978) 

Deferred Tax Credits

168,851 

11,385,914 

238,257 

11,479,047 

Profit Sharing

(429,095)

(437,504)

(471,886)

(479,097)

Non Controlling Interest

19.e

(25,258) 

(42,921) 

Net Income

2,976,576 

3,788,540 

2,816,264 

3,774,003 

Number of Shares (Thousands)

19.a

7,498,531 

7,498,531 

$)

396.95 

505.24 

 


 

 

 

Statement of comprehensive income

Bank

Consolidated

01/01 to 03/31/2021

01/01 to

03/31/2020

01/01 to 03/31/2021

01/01 to

03/31/2020

Profit for the Period

2,976,576 

3,788,540 

2,816,264 

3,774,003 

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

(1,593,953)

(1,566,247)

(1,627,362)

(1,565,489)

Available-for-sale financial assets

(1,813,239) 

(1,452,266) 

(1,846,648) 

(1,451,508) 

Available-for-sale financial assets

(2,762,052) 

(2,648,685) 

(2,798,091) 

(2,647,927) 

Income taxes

948,813 

1,196,419 

951,443 

1,196,419 

Cash flow hedges

219,286 

(113,981) 

219,286 

(113,981) 

Cash flow hedges

11,467 

(167,964) 

11,467 

(167,964) 

Income taxes

207,819 

53,983 

207,819 

53,983 

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

(19,187)

534,346 

(19,187)

534,346 

Defined Benefits plan

(19,187) 

534,346 

(19,187) 

534,346 

Defined Benefits plan

13 

988,128 

13 

988,128 

Income taxes

(19,200) 

(453,782) 

(19,200) 

(453,782) 

Comprehensive Income for the Period

1,363,436 

2,756,639 

1,169,715 

2,742,860 

Attributable to parent company

 

 

1,144,457 

2,699,939 

Attributable to non-controlling interests

 

 

25,258 

42,921 

Total

 

 

1,169,714 

2,742,860 

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


Statement 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

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

(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

 19.c

702,807 

(702,807) 

Minimum Mandatory Dividend

 19.b

(3,325,000) 

(3,325,000) 

Interest on Capital

19.b

(512,087) 

(512,087) 

Reserve for Dividend Equalization

 19.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)

(791,358)

79,182,877 

Changes in the Period

105,296 

702,807 

9,516,254 

(1,323,847)

32,805 

572,062 

(110,223)

9,495,154 

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 

Employee Benefit Plans

(19,187) 

(19,187) 

Treasury Shares

19.d

81,588 

81,588 

Result of Treasury Shares

19.d

40,583 

40.583 

Reservations for Share - Based Payment

  

(76,647) 

(76,647) 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

  

(1,356,612) 

(237,341) 

(1.593.953) 

Spin-off

19.a

 

(2,000,000) 

 

 

 

(527,444) 

 

 

 

 

 

 

(2.527.444) 

Net Income

2,976,576 

2,976,576 

Balances as of march 31, 2021

55,000,000 

266,601 

4,520,871 

18,080,482 

1,240,255 

(113,156)

(3,197,466)

2,976,576 

(709,770)

78,064,393 

Changes in the Period

(2,000,000)

(36,064)

(527,444)

(1,356,612)

(237,341)

(19,187)

2,976,576 

81,588 

(1,118,484)

 


Statement 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, 2019

57,000,000 

194,115 

3,818,065 

9,168,713 

3,932,436 

91,380 

(3,750,342)

(681,135)

69,773,232 

1,695,361 

71,468,593 

Employee Benefit Plans

572,062 

572,062 

572,062 

Treasury Shares

(15,068) 

(110,223) 

(125,291) 

(125,291) 

Reservations for Share - Based Payment

  

119,266 

119,266 

119,266 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

(928,249) 

32,806 

(895,443) 

(895,443) 

Capital Restructuring

Net Income

13,469,380 

13,469,380 

13,469,380 

Allocations:

Legal Reserve

 19.c

702,807 

(702,807) 

Interest on Capital

 19.b

(3,325,000) 

(3,325,000) 

(3,325,000) 

Minimum Mandatory Dividend

 19.b

(512,087) 

(512,087) 

(512,087) 

Reserve for Dividend Equalization

 19.c

9,516,254 

(9,516,254) 

Unrealized Profit

(586,768) 

586,768 

Non Controlling Interest Results

 19.e

(133,387) 

(133,387) 

Others

(107,936) 

(107,936) 

(411,266) 

(519,202) 

Balances as of december 31, 2020

57,000,000 

298,313 

4,520,872 

17,990,263 

3,004,187 

124,186 

(3,178,280)

(791,358)

78,968,183 

1,150,708 

80,118,891 

Changes in the Period

104,198 

702,807 

8,821,550 

(928,249)

32,806 

572,062 

(110,223)

9,194,951 

(544,653)

8,650,298 

 


 

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, 2020

  

57,000,000 

298,313 

4,520,872 

17,990,263 

3,004,187 

124,186 

(3,178,280)

(0)

(791,358)

78,968,183 

1,150,708 

80,118,891 

Employee Benefit Plans

(19,187) 

(19,187) 

(19,187) 

Treasury Shares

40,582 

81,588 

122,170 

122,170 

Reservations for Share - Based Payment

  

(79,646) 

(79,646) 

(79,646) 

Adjustment to Fair Value - Securities and Derivative Financial Instruments

(1,360,449) 

(266,913) 

(1,627,362) 

(1,627,362) 

Spin-Off                                          19.a

 

(2.000.000) 

 

 

 

(527.444)

 

 

 

 

 

 

(2.527.444) 

 

 

(2.527.444) 

Net Income

2,816,264 

2,816,264 

2,816,264 

Unrealized Profit

621,328 

(507,979) 

113.350 

113.350 

Non Controlling Interest Results

 19.e

(25.258) 

 

(25.258) 

Others

 

 

(3.667) 

(3.667) 

98.200 

94.533 

Balances as of march 31, 2021

55,000,000 

259,249 

4,520,872 

18,080,480 

1,643,738 

(142,727)

(3,197,467)

2,308,285 

(709,770)

77,762,661 

1,223,650 

78.986.311 

Changes in the Period

(2,000,000)

(39,064)

90,217 

(1,360,449)

(266,913)

(19,187)

2,308,285 

81,588 

(1,205,522)

72.942 

(1.132.580)


Statement of cash flows

Bank

Consolidated

01/01 to 03/31/2021

01/01 to 03/31/2020

01/01 to 03/31/2021

01/01 to 03/31/2020

Notes

Operational Activities

Net Income

2,976,576 

3,788,540 

2,816,264 

3,774,003 

Adjustment to Net Income

40,819,308 

(9,296,441)

50,487,978 

(6,604,470)

Allowance for Loan Losses

8.e

2,835,477 

2,850,453 

16,476,171 

3,586,383 

Provision for Legal Proceedings and Administrative and Legal Obligations

18.c

480,444 

310,029 

520,278 

352,636 

Monetary Adjustment of Provision for Legal Proceedings and Administrative and Legal Obligations

18.c

132,279 

121,501 

143,021 

140,639 

Deferred Tax Credits and Liabilities

10 

273,930 

(11,385,914) 

247,349 

(11,479,047) 

Equity in Affiliates and Subsidiaries

13 

(929,222) 

(895,552) 

(7,651) 

(7,272) 

Depreciation and Amortization

23 

1,620,587 

606,575 

1,728,502 

750,968 

Recognition (Reversal) Allowance for Other Assets Losses

26 

18,485 

(8,518) 

5,974 

(12,111) 

Gain (Loss) on Sale of Other Assets

26 

(17,990) 

(3,187) 

(14,775) 

285 

Gain (Loss) on Sale of Investments

26 

(168,588) 

(168,588) 

Provision for Financial Guarantees

26 

(28,355) 

 

(107,623) 

(33,408) 

(121,787) 

Monetary Adjustment of Escrow Deposits

24 

(4,574) 

 

(84,692) 

(8,291) 

(94,754) 

Recoverable Taxes

24 

6,590 

 

(7,516) 

6,590 

(7,516) 

Effects of Changes in Foreign Exchange Rates on Cash and Cash Equivalents

31,385,581 

437,309 

31,385,581 

437,309 

 

Others

5,046,076 

(960,718) 

38,632 

18,385 

Changes on Assets and Liabilities

(36,446,336)

18,149,285 

(34,284,545)

25,450,121 

Decrease (Increase) in Interbank Investments

(898,067) 

(18,765,490) 

3,487,076 

(6,776,506) 

Decrease (Increase) in Securities and Derivative Financial Instruments

(3,738,123) 

(34,380,717) 

(2,738,243) 

(34,212,006) 

 

Decrease (Increase) in Lending and Leasing Operations

(13,962,811) 

(30,033,172) 

(29,669,889) 

(32,497,356) 

Decrease (Increase) in Deposits on Central Bank of Brazil

(326,076) 

21,260,229 

(332,959) 

21,489,732 

Decrease (Increase) in Other Receivables

9,741,058 

(59,310,993) 

14,609,476 

(59,435,607) 

Decrease (Increase) in Other Assets

(67,704) 

(197,516) 

37,341 

(202,412) 

Net Change on Other Interbank and Interbranch Accounts

(2,350,861) 

(838,499) 

12,556,712 

218,822 

Increase (Decrease) in Deposits

(6,309,634) 

33,018,683 

(6,610,983) 

30,957,278 

Increase (Decrease) in Money Market Funding

11,991,407 

23,226,354 

10,426,344 

22,820,206 

Increase (Decrease) in Borrowings

13,669,247 

7,019,259 

13,629,447 

6,779,395 

Increase (Decrease) in Other Liabilities

(44,248,485) 

77,151,749 

(48,657,375) 

77,184,532 

Increase (Decrease) in Change in Deferred Income

3,713 

(602) 

2,377 

(7,550) 

Income Tax Recovered/(Paid)

(1,023,869) 

(868,407) 

Net Cash Provided by (Used in) Operational Activities

7,349,548 

12,641,384 

19,019,697 

22,619,654 

Investing Activities

Increase in Equity at Affiliates and Subsidiaries

13 

(220,000) 

Purchase of Fixed Assets

(178,156) 

(249,288) 

(180,706) 

(329,797) 

Purchase of Intangible Assets

(71,181) 

(203,054) 

1,677 

(965,795) 

Net Cash Received on Sale/Reduction of Investments

22 

Acquisition of Minority Residual Interest in Subsidiary

13.c

(7,984) 

(1,601,100) 

(13,197) 

Disposal of non-financial assets held for sale

193,005 

139,067 

202,912 

143,516 

Proceeds from Property for Own Use

17,679 

6,876 

635,521 

30,350 

Proceeds from Affiliates and Subsidiaries

2,131,766 

97,512 

2,625 

Dividends and Interest on Capital Received

48,137 

270,152 

(5,165) 

(5,165) 

Net Cash Provided by (Used in) Investing Activities

2,133,283 

(1,759,835)

641,064 

(1,124,261)

Financing Activities

Purchase of Own Share

19.d

81,588 

(113,444) 

81,588 

(113,444) 

Issuance of Long - Term Emissions

26,324,227 

28,029,817 

24,981,015 

18,878,144 

Long - Term Payments

(26,614,049) 

(22,955,878) 

(26,529,211) 

(23,115,344) 

Dividends and Interest on Capital Paid

(1,054,825) 

(6,755,750) 

(9,848,122) 

(7,690,558) 

Increase (decrease) in Minority Interest

Net Cash Provided by (Used in) Financing Activities

(1,263,059)

(1,795,255)

(11,314,730)

(12,041,200)

Exchange Variation on Cash and Cash Equivalents

(6,590)

7,516 

(6,590)

7,516 

Increase (Decrease) in Cash and Cash Equivalents

8,213,182 

9,093,810 

8,339,441 

9,461,709 

Cash and Cash Equivalents at the Beginning of Period

29,191,171 

21,421,432 

28,999,315 

21,443,663 

Cash and Cash Equivalents at the End of Period

37,404,353 

30,515,242 

37,338,756 

30,905,372 

 

 

 

 


Statement of value added

Bank

Consolidated

01/01 to 03/31/2021

01/01 to 03/31/2020

01/01 to 03/31/2021

01/01 to 03/31/2020

Notes

Income Related to Financial Operations

35,554,559 

48,959,478 

37,756,910 

51,691,916 

Income Related to Bank Charges and Banking Service Fees

21 

3,708,560 

3,482,275 

4,851,976 

4,482,284 

Allowance for Loans Losses

8.e

(2,835,477) 

(2,850,453) 

(3,376,842) 

(3,586,383) 

Other Revenues and Expenses

(1,680,740) 

10,008,336 

(2,120,334) 

9,871,087 

Financial Expenses

(26,339,407) 

(51,830,677) 

(26,439,847) 

(52,147,761) 

Third-party Input

(1,998,234) 

(1,790,833) 

(2,119,015) 

(2,104,825) 

Materials, Energy and Others

(61,714) 

(67,905) 

(66,196) 

(71,602) 

Third-Party Services

23 

(542,592) 

(429,549) 

(632,702) 

(575,619) 

Others

(1,393,928) 

(1,293,379) 

(1,420,117) 

(1,457,604) 

Gross Added Value

6,409,261 

5,978,126 

8,552,848 

8,206,318 

Retentions

Depreciation and Amortization

23 

(1,620,587) 

(606,575) 

(1,728,502) 

(750,968) 

Added Value Produced Net

4,788,674 

5,371,551 

6,824,347 

7,455,350 

Added Value Received from Transfer Investments in Affiliates and Subsidiaries

13 

929,222 

895,552 

7,651 

7,272 

Added Value to Distribute

5,717,896 

6,267,103 

6,831,998 

7,462,622 

Added Value Distribution

Employee

1,736,556 

30,3% 

1,857,166 

29.6% 

2,021,733 

0.0% 

2,108,376 

28.3% 

Compensation

22 

846,795 

 

 

936,951 

998,914 

1,058,247 

Benefits

22 

293,713 

319,215 

343,489 

366,331 

Government Severance Indemnity Funds for Employees - FGTS

81,816 

80,786 

99,721 

96,332 

Others

514,232 

520,214 

579,608 

587,466 

Taxes and Contributions

806,023 

14,1% 

417,418 

6.7% 

1,768,140 

0.0% 

1,328,372 

17.8% 

Federal

637,485 

253,259 

1,552,566 

1,119,844 

State

165 

99 

194 

130 

Municipal

168,373 

164,060 

215,380 

208,398 

Compensation of Third-Party Capital - Rental

23 

198,742 

3,6% 

203,979 

3.3% 

200,603 

0.0% 

208,950 

2.8% 

Remuneration of Interest on Capital

2,976,576 

52.0% 

3,788,540 

60.5% 

2,841,522 

0.0% 

3,816,924 

51.1% 

Interest on Equity

Profit Reinvestment

2,976,576 

3,788,540 

2,866,780 

3,859,845 

Participation Results of Non-Controlling Stockholders

19.e

(25,258) 

(42,921) 

Total

5,717,896 

100.0% 

6,267,103 

100.0% 

6,831,998 

0.0% 

7,462,622 

100.0% 

 


1.     General Information

Banco Santander (Brasil) S.A. (Banco Santander or Bank), directly and indirectly controlled by Banco Santander, S.A., headquartered in Spain (Banco Santander Spain), is the lead institution of the Financial and Prudential Conglomerates (Conglomerate Santander) before the Central Bank of Brazil (Bacen), established as a joint-stock corporation, with head office at Avenida Presidente Juscelino Kubitschek, 2041, CJ 281, Building A,  Wtorre JK - Vila Nova Conceição, in the City of São Paulo, State of São Paulo. Banco Santander operates as a multiple service bank, conducting its operations by means of its commercial, investment, loans, mortgage loans, leasing and foreign exchange portfolios. Through its subsidiaries, also operates in the segments of payments, management of shares’ club, securities and insurance brokerage operations, capitalization plans, consumer finance, payroll loans, digital platforms, management and recovery of non-performing loans and private pension products. The operations are conducted within the context of a group of institutions that operates in the financial market on an integrated basis. The corresponding benefits and costs of providing services are absorbed between them and are conducted in the normal course of business and under commutative conditions.

2.     Presentation of Financial Statements

Banco Santander 's individual and consolidated interim financial statements, which include its facilities abroad (Bank) and the consolidated statements (Consolidated), were prepared in accordance with the accounting practices adopted in Brazil, established by the Brazilian Corporation Law, together the rules of the National Monetary Council (CMN), of Bacen and model of the document provided for in the Accounting Plan of the Institutions of the National Financial System (COSIF), of the Securities and Exchange Commission (CVM), in which they do not conflict with the rules issued by Bacen and evidence all relevant information specific to the financial statements, which are consistent with those used by Management in its management.

CMN Resolution 4,818 / 2020 and BCB Resolution 2/2020 establish the general criteria and procedures for the preparation and disclosure of the Financial Statements. BCB Resolution 2/2020, revoked Bacen Circular 3959/2019, and entered on January 1, 2021 and is applicable in the preparation, disclosure and submission of Financial Statements as of its entry into force, covering the Financial Statements of 31 December 2020. This standard, among other requirements, determined the disclosure in an explanatory note, in a segregated form, of recurring and non-recurring results.

The individual and consolidated interim financial statements include the Bank and its subsidiaries and the investment funds indicated in Note 13, where the companies of the Santander Conglomerate are the main beneficiaries or holders of the main obligations. The portfolios of these investment funds are classified by type of operation and are distributed in the same categories in which they were originally allocated.

In the preparation of the individual and consolidated interim financial statements, equity interests, relevant balances receivable and payable, income and expenses arising from transactions between branches in the country, branches abroad and subsidiaries, unrealized results between these companies and highlighted the participation of minority shareholders in shareholders' equity and income.

The information on leasing operations was reclassified in order to reflect its financial position in accordance with the financial method.

The preparation of the financial statements requires Management to adopt estimates, impacting certain assets and liabilities, disclosures about provisions and contingent liabilities and income and expenses in the periods shown. Since Management's judgment involves estimates regarding the likelihood of future events, the actual amounts may differ from these estimates, the main ones being, provision for expected losses associated with credit risk, realization of deferred tax assets, provision for lawsuits, civil, tax and labor, pension plan and the fair value of financial assets.

The Board of Directors authorized the issuance of the individual and consolidated financial statements for the quarter ended March 31, 2021, at the meeting held on April 27, 2021.

The Consolidated Financial Statements based on the international accounting standard issued by the International Accounting Standards Board (IASB) for the quarter ended March 31, 2021 will be disclosed, within the legal term, at the electronic address www.santander.com.br/ri.

3.     Significant Accounting Policies

There were no significant changes in the accounting practices and policies adopted by the Bank for the quarter ended March 31, 2021. Except for the changes mentioned in the following paragraphs, the other accounting practices adopted by the Bank are described in note 3 to the Individual and Financial Statements Consolidated as of December 31, 2020.

a)     Non-financial assets held for sale

As of January 1, 2021, CMN Resolutions no. 4.747 and 4.748 of August 2019 and BACEN Circular Letter 3.994, which establish criteria for the recognition and measurement of non-financial assets held for sale by Financial Institutions.

CMN Resolution No. 4.747, among other requirements, establishes that depending on the origin of the non-financial assets held for sale, financial institutions must classify them as:

a) own;

b) received in settlement of a difficult or doubtful financial instrument as payment for doubtful solution financial instruments not intended for own use.

CMN Resolution No. 4.748 establishes that financial institutions and other institutions authorized to operate by the Central Bank of Brazil must comply with Technical Pronouncement CPC 46 - Measurement of Fair Value (CPC46) when measuring equity and results, in situations where the measurement at fair value of such elements is provided for in specific regulations.

b)    Deferred and current tax assets and liabilities

CMN Resolution No. 4.842, of July 30, 2020, consolidated the general criteria for measuring and recognizing the deferred and current tax assets and liabilities by the financial institutions and other institutions authorized to operate by the Brazilian Central Bank and the BCB Resolution No. 15, of September 17, 2020 (revoked BACEN Circulars No. 3.776/15 and No. 3.174/03), consolidated the procedures to be observed by institutions authorized to operate by the Central Bank of Brazil when submitting an application for exemption from the criteria for the constitution or write-off of deferred tax assets and in the disclosure of information about deferred tax assets or liabilities in explanatory notes.

 

4.     Cash and Cash Equivalents

Bank

03/31/2021

12/31/2020

03/31/2020

12/31/2020

Cash

14,421,734 

19,522,250 

12,705,433 

9,543,649 

Interbank Investments

22,982,619 

9,668,922 

17,809,809 

11,877,783 

Money Market Investments

4,848,153 

7,348,568 

6,903,506 

110,746 

Interbank Deposits

1,179,585 

1,131,436 

1,938,367 

1,465,065 

Foreign Currency Investments

16,954,881 

1,188,917 

8,967,936 

10,301,972 

Total

37,404,353 

29,191,171 

30,515,242 

21,421,432 

Consolidated

03/31/2021

12/31/2020

03/31/2020

12/31/2020

Cash

14,434,212 

19,512,315 

13,962,809 

9,924,644 

Interbank Investments

22,904,544 

9,487,000 

16,942,563 

11,519,019 

Money Market Investments

4,848,153 

7,306,408 

6,903,506 

110,746 

Interbank Deposits

1,101,510 

991,675 

1,070,271 

1,105,446 

Foreign Currency Investments

16,954,881 

1,188,917 

8,968,786 

10,302,827 

Total

37,338,756 

28,999,315 

30,905,372 

21,443,663 

 

5.     Interbank Investments

Bank

3/31/2021

12/31/2020

Up to 3 Months

From 3 to 12 Months

Over 12 Months

Total

Total

Money Market Investments

57,014,571 

57,014,571 

62,644,146 

Own Portfolio

13,893,080 

13,893,080 

12,833,464 

Financial Treasury Bills - LFT

3,122,980 

3,122,980 

2,869,850 

National Treasury Bills - LTN

3,503,294 

3,503,294 

2,218,460 

National Treasury Notes - NTN

7,266,806 

7,266,806 

7,745,154 

Third-party Portfolio

2,890,789 

2,890,789 

6,203,774 

National Treasury Bills - LTN

1,000,000 

1,000,000 

National Treasury Notes - NTN

1,890,789 

1,890,789 

6,203,774 

Sold Position

40,230,702 

40,230,702 

43,606,908 

Financial Treasury Bills - LFT

6,074,814 

6,074,814 

1,498,684 

National Treasury Bills - LTN

6,307,576 

6,307,576 

8,469,234 

National Treasury Notes - NTN

27,848,312 

27,848,312 

33,638,990 

Interbank Deposits

11,920,616 

42,914,203 

29,261,583 

84,096,401 

80,071,025 

Foreign Currency Investments

16,954,881 

16,954,881 

1,188,917 

Total

85,890,068 

42,914,203 

29,261,583 

158,065,854 

143,904,088 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

3/31/2021

12/31/2020

Up to 3 Months

From 3 to 12 Months

Over 12 Months

Total

Total

Money Market Investments

56,776,517 

56,776,517 

62,601,986 

Own Portfolio

13,893,080 

13,893,080 

12,833,464 

Financial Treasury Bills - LFT

3,122,980 

3,122,980 

2,869,850 

National Treasury Bills - LTN

3,503,294 

3,503,294 

2,218,460 

National Treasury Notes - NTN

7,266,806 

7,266,806 

7,745,154 

Third-party Portfolio

2,890,789 

2,890,789 

6,203,774 

National Treasury Bills - LTN

1,000,000 

1,000,000 

National Treasury Notes - NTN

1,890,789 

1,890,789 

6,203,774 

Sold Position

39,992,648 

39,992,648 

43,564,748 

Financial Treasury Bills - LFT

6,074,814 

6,074,814 

1.456.524 

National Treasury Bills - LTN

6,307,576 

6,307,576 

8,469,234 

National Treasury Notes - NTN

27,610,258 

27,610,258 

33,638,990 

Interbank Deposits

2,752,298 

1,628,039 

1,516,986 

5,897,323 

5,907,350 

Foreign Currency Investments

16,954,881 

16,954,880 

1,188,917 

Total

76,483,696 

1,628,039 

1,516,986 

79,628,721 

69,698,253 


6.     Securities and Derivatives Financial Instruments

a)     Securities

I) By Category

 

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Effect of Adjustment to Fair Value on:

Effect of Adjustment to Fair Value on:

Amortized Cost

Income

Equity

Carrying Amount

Carrying Amount

Amortized Cost

Income

Equity

Carrying Amount

Carrying Amount

Trading Securities

65,236,313 

(878,277)

64,358,036 

65,380,859 

75,191,252 

(678,067)

74,513,185 

75,006,276 

Government Securities

64,602,876 

(865,547) 

63,737,329 

64,621,598 

72,706,397 

(665,337) 

72,041,060 

72,038,263 

Private Securities

633,437 

(12,730) 

620,707 

759,261 

2,484,855 

(12,730) 

2,472,125 

2,968,013 

Available-for-Sale Securities

135,733,010 

40,386 

531,222 

136,304,618 

134,119,306 

142,098,210 

40,386 

272,756 

142,411,352 

141,924,157 

Government Securities

100,216,339 

(12,547) 

(279,941) 

99,923,851 

105,463,222 

108,200,531 

(12,547) 

(543,153) 

107,644,831 

113,549,050 

Private Securities

35,516,671 

52,933 

811,163 

36,380,767 

28,656,084 

33,897,679 

52,933 

815,909 

34,766,521 

28,375,108 

Held-to-Maturity Securities

16,814,815 

16,814,815 

16,317,905 

16,814,815 

16,814,815 

16,317,905 

Government Securities

15,517,528 

15,517,528 

14,739,539 

15,517,528 

15,517,528 

14,739,539 

Private Securities

1,297,287 

1,297,287 

1,578,365 

1,297,287 

1,297,287 

1,578,365 

Total Securities

217,784,138 

(837,891)

531,222 

217,477,469 

215,818,070 

234,104,277 

(637,681)

272,756 

233,739,352 

233,248,338 

 


 

II) Trading Securities

 

Bank

03/31/2021

12/31/2020

By Maturity

03/31/2021

Trading Securities

Amortized Cost

Adjustment to Fair Value -  Income

Carrying Amount

Carrying Amount

Without Maturity

Up to 3 Months

From 3 to 12 Months

From 1 to 3 Years

Over 3 Years

Total

Government Securities

64,602,876 

(865,547)

63,737,329 

64,621,598 

13,065,233 

3,824,786 

18,723,957 

28,123,353 

63,737,329 

Financial Treasury Bills - LFT

4,038,413 

1,151 

4,039,564 

2,208,130 

1,709,949 

179,259 

2,150,356 

4,039,564 

National Treasury Bills - LTN

21,272,672 

(312,204) 

20,960,468 

23,439,521 

5,936,200 

1,003,342 

12,784,523 

1,236,403 

20,960,468 

National Treasury Notes - NTN

38,502,396 

(554,639) 

37,947,757 

38,186,441 

7,126,360 

360,464 

5,744,871 

24,716,062 

37,947,757 

Agricultural Debt Securities - TDA

30,793 

1,653 

32,446 

44,820 

2,661 

8,364 

15,210 

6,211 

32,446 

Brazilian Foreign Debt Notes

743,337 

(304) 

743,033 

678,533 

742,630 

399 

743,033 

Debentures

15,265 

(1,204) 

14,061 

64,153 

12 

37 

90 

13,922 

14,061 

Private Securities

633,437 

(12,730)

620,707 

759,261 

327,396 

2,564 

3,571 

98,420 

188,756 

620,707 

Investment Fund Shares

329,990 

(2,594) 

327,396 

369,041 

327,396 

327,396 

Debentures

154,826 

(6,341) 

148,485 

273,671 

2,028 

2,709 

10,422 

133,326 

148,485 

Certificates of Real Estate Receivables - CRI

32,438 

(1,928) 

30,510 

23,008 

536 

6,029 

23,945 

30,510 

Certificates of Agribusiness Receivables - CRA

45,497 

(858) 

44,639 

23,866 

862 

12,292 

31,485 

44,639 

Financial Bills - LF

70,686 

(1,009) 

69,677 

69,675 

69,677 

69,677 

Total

65,236,313 

(878,277)

64,358,036 

65,380,859 

327,396 

13,067,797 

3,828,357 

18,822,377 

28,312,109 

64,358,036 

 


 

Consolidated

03/31/2021

12/31/2020

By Maturity

03/31/2021

Trading Securities

Amortized Cost

Adjustment to Fair Value -  Income

Carrying Amount

Carrying Amount

Without Maturity

Up to 3 Months

From 3 to 12 Months

From 1 to 3 Years

Over 3 Years

Total

Government Securities

72,706,397 

(665,337)

72,041,060 

72,038,263 

13,442,408 

4,817,841 

22,984,851 

30,795,960 

72,041,060 

Financial Treasury Bills - LFT

9,943,231 

(2,155) 

9,941,076 

7,316,112 

192,274 

2,703,004 

4,429,360 

2,616,438 

9,941,076 

National Treasury Bills - LTN

21,298,900 

(312,641) 

20,986,259 

23,450,858 

5,951,198 

1,003,342 

12,795,316 

1,236,403 

20,986,259 

National Treasury Notes - NTN

40,674,871 

(350,686) 

40,324,185 

40,483,786 

7,296,263 

360,464 

5,744,871 

26,922,587 

40,324,185 

Agricultural Debt Securities - TDA

30,793 

1,653 

32,446 

44,820 

2,661 

8,364 

15,210 

6,211 

32,446 

Brazilian Foreign Debt Bonds

743,337 

(304) 

743,033 

678,533 

742,630 

399 

743,033 

Debentures

15,265 

(1,204) 

14,061 

64,153 

12 

37 

90 

13,922 

14,061 

Private Securities

2,484,855 

(12,730)

2,472,125 

2,968,013 

1,746,287 

2,564 

36,347 

98,420 

588,507 

2,472,125 

Shares

1,388,146 

1,388,146 

1,339,892 

1,388,146 

1,388,146 

Investment Fund Shares

360,735 

(2,594) 

358,141 

401,442 

358,141 

358,141 

Debentures

554,577 

(6,341) 

548,236 

1,077,513 

2,028 

2,709 

10,422 

533,077 

548,236 

Certificates of Real Estate Receivables - CRI

32,438 

(1,928) 

30,510 

23,008 

536 

6,029 

23,945 

30,510 

Certificates of Agribusiness Receivables - CRA

45,497 

(858) 

44,639 

23,866 

862 

12,292 

31,485 

44,639 

Bill of Exchange

32,776 

32,776 

32,618 

32,776 

32,776 

Financial Bills - LF

70,686 

(1,009) 

69,677 

69,675 

69,677 

69,677 

Total

75,191,252 

(678,067)

74,513,185 

75,006,276 

1,746,287 

13,444,972 

4,854,188 

23,083,271 

31,384,467 

74,513,185 


 

III) Available-for-Sale Securities

Bank

03/31/2021

12/31/2020

By Maturity

03/31/2021

Effect of Adjustment to Fair Value on:

Available-for-Sale Securities

Amortized Cost

Income

Equity

Carrying Amount

Carrying Amount

Without Maturity

Up to 3 Months

From 3 to 12 Months

From 1 to 3 Years

Over 3 Years

Total

Government Securities

100,216,339 

(12,547)

(279,941)

99,923,851 

102,157,294 

945,780 

16,723,686 

34,675,785 

47,578,600 

99,923,851 

Treasury Certificates - CFT

1,473 

76 

1,549 

1,441 

1,549 

1,549 

Securitized Credit

318 

(5) 

313 

460 

187 

126 

313 

Financial Treasury Bills - LFT

23,624,676 

(112,708) 

23,511,968 

20,633,213 

7,604,429 

15,907,539 

23,511,968 

National Treasury Bills - LTN

34,037,998 

75,860 

(901,030) 

33,212,828 

34,350,939 

14,679,309 

18,533,519 

33,212,828 

National Treasury Notes - NTN (2)

39,118,299 

(88,407) 

738,639 

39,768,531 

45,885,764 

34,349 

660,397 

8,537,837 

30,535,948 

39,768,531 

Brazilian Foreign Debt Bonds

2,046,576 

(219) 

2,046,357 

1,285,477 

911,244 

1,135,113 

2,046,357 

Spanish Foreign Debt Bonds

1,386,999 

(4,694) 

1,382,305 

1,382,305 

1,382,305 

Private Securities

35,516,671 

52,933 

811,163 

36,380,767 

31,962,012 

3,420,182 

2,347,106 

4,739,743 

9,891,143 

15,982,593 

36,380,767 

Shares

53 

Investment Funds

3,145,206 

(269) 

3,144,937 

1,894,532 

3,144,937 

3,144,937 

Investment Fund Real Estate

197,782 

197,782 

197,782 

197,782 

Debentures (1)

17,942,330 

52,933 

770,558 

18,765,821 

14,968,154 

264,094 

964,885 

6,323,484 

11,213,358 

18,765,821 

Promissory Notes - NP

3,225,368 

18,152 

3,243,520 

4,525,164 

918,908 

820,590 

1,373,910 

130,112 

3,243,520 

Financial Bills - LF

267,543 

(263) 

267,280 

270,298 

107,047 

160,233 

267,280 

Certificates of Real Estate Receivables - CRI

3,162 

71 

3,233 

23,625 

3,233 

3,233 

Certificates of Agribusiness Receivables - CRA

168,711 

(1,515) 

167,196 

171,916 

38,657 

128,539 

167,196 

Eurobonds

3,440,411 

37,095 

3,477,506 

3,305,928 

3,477,506 

3,477,506 

Rural Product Note - CPR

7,126,152 

(12,666) 

7,113,486 

6,601,651 

77,457 

1,164,104 

2,847,221 

1,994,859 

1,029,845 

7,113,486 

Total

135,733,010 

40,386 

531,222 

136,304,618 

134,119,306 

3,420,182 

3,292,886 

21,463,429 

44,566,928 

63,561,193 

136,304,618 

 


 

 

Consolidated

03/31/2021

12/31/2020

By Maturity

03/31/2021

Effect of Adjustment to Fair Value on:

Available-for-Sale Securities

Amortized Cost

Income

Equity

Carrying Amount

Carrying Amount

Without Maturity

Up to 3 Months

From 3 to 12 Months

From 1 to 3 Years

Over 3 Years

Total

Government Securities

108,200,531 

(12,547)

(543,153)

107,644,831 

110,263,140 

1,147,354 

17,861,053 

37,633,229 

51,003,195 

107,644,831 

Treasury Certificates - CFT

1,473 

76 

1,549 

1,441 

1,549 

1,549 

Securitized Credit

318 

(5) 

313 

460 

187 

126 

313 

Financial Treasury Bills - LFT

25,497,815 

(115,043) 

25,382,772 

22,684,405 

1,598 

399,781 

8,922,321 

16,059,072 

25,382,772 

National Treasury Bills - LTN

36,498,723 

75,860 

(919,847) 

35,654,736 

36,423,327 

199,976 

15,416,895 

20,037,865 

35,654,736 

National Treasury Notes - NTN

42,768,627 

(88,407) 

496,580 

43,176,800 

49,868,030 

34,349 

660,397 

8,673,043 

33,809,011 

43,176,800 

Brazilian Foreign Debt Bonds

2,046,575 

(219) 

2,046,356 

1,285,477 

911,244 

1,135,112 

2,046,356 

Spanish Foreign Debt Bonds

1,387,000 

(4,695) 

1,382,305 

1,382,305 

1,382,305 

Private Securities

33,897,679 

52,933 

815,909 

34,766,521 

31,661,018 

1,619,738 

2,347,106 

4,739,743 

9,891,143 

16,168,791 

34,766,521 

Shares

5,387 

5,387 

5,400 

5,387 

5,387 

Investment Fund Shares

1,504,596 

(269) 

1,504,327 

1,784,375 

1,504,327 

1,504,327 

Investment Fund Real Estate

33,849 

(1,282) 

32,567 

39,006 

32,567 

32,567 

Debentures (1)

18,122,498 

52,933 

776,586 

18,952,017 

14,953,673 

264,094 

964,885 

6,323,484 

11,399,554 

18,952,017 

Eurobonds

3,440,411 

37,095 

3,477,506 

3,285,910 

3,477,506 

3,477,506 

Promissory Notes - NP

3,225,368 

18,152 

3,243,520 

4,525,164 

918,908 

820,590 

1,373,910 

130,112 

3,243,520 

Financial Bills - LF

267,543 

(263) 

267,280 

270,298 

107,047 

160,233 

267,280 

Certificates of Real Estate Receivables - CRI

3,162 

71 

3,233 

23,625 

3,233 

3,233 

Certificates of Agribusiness Receivables - CRA

168,711 

(1,515) 

167,196 

171,916 

38,657 

128,539 

167,196 

Rural Product Note - CPR

7,126,154 

(12,666) 

7,113,488 

6,601,651 

77,457 

1,164,104 

2,847,221 

1,994,859 

1,029,847 

7,113,488 

Total

142,098,210 

40,386 

272,756 

142,411,352 

141,924,157 

1,619,738 

3,494,460 

22,600,796 

47,524,372 

67,171,986 

142,411,352 

(1) At the Bank and Consolidated, includes securities issued by a mixed capital company and R$ 282,449 (12/31/2020 - R$ 287,736) in securities available for sale.

(2) As of March 31, 2021, the amount of 1,400,000 in the amount of R$ 1,513,793 (12/31/2020 - 1,400,000 in the amount of R$ 1,686,832) of National Treasury Notes - NTN, are linked to the obligation assumed by Banco Santander to cover the reserves to be amortized under Plan V of the Social Security Fund (Banesprev).


 

IV) Held-to-Maturity Securities

Bank/Consolidated

By Maturity

03/31/2021

Amortized Cost

Up to 3 Months

From 3 to 12 Months

From 1 to 3 Years

Over 3 Years

Held-to-Maturity Securities (1)

03/31/2021

12/31/2020

Total

Government Securities

15,517,528 

14,739,539 

1,401,859 

2,214,040 

11,901,629 

15,517,528 

National Treasury Notes - NTN

5,042,916 

4,549,498 

25,740 

5,017,176 

5,042,916 

Brazilian Foreign Debt Bonds

10,474,612 

10,190,042 

1,376,119 

2,214,040 

6,884,453 

10,474,612 

Private Securities

1,297,287 

1,578,365 

1,297,287 

1,297,287 

Certificates of Agribusiness Receivables - CRA

1,297,287 

1,578,365 

1,297,287 

1,297,287 

Total

16,814,815 

16,317,905 

1,401,859 

1,297,287 

2,214,040 

11,901,629 

16,814,815 

(1) The market value of held to maturity securities is R$16,757,630 (12/31/2019 - R$16,322,840).

 

For the quarter ended March 31, 2021, there were no disposals of federal government securities and other securities classified in the category of securities held to maturity.

In compliance with the provisions of Article 5 of Circular Bacen 3,068 / 2001, Banco Santander has the financial capacity and intention to hold securities classified in the securities held to maturity category to maturity.

The market value of the bonds and securities is calculated considering the average quotation of organized markets and their estimated cash flow, discounted at present value in accordance with the corresponding applicable interest curves, considered as representative of market conditions at the time of calculating the market prices. swings.

V) Financial Income - Securities Transactions

Bank

Consolidated

 01/01 to 03/31/2021

 01/01 to 03/31/2020

 01/01 to 03/31/2021

 01/01 to 03/31/2020

Income From Fixed-Income Securities (1)

13,129,498 

35,238,078 

13,285,157 

35,278,072 

Income From Interbank Investments

3,392,675 

3,100,839 

2,637,923 

2,223,104 

Income From Variable-Income Securities

(13,321) 

(66,041) 

92,112 

(545,170) 

Financial Income of Pension and Capitalization 

53,200 

42,321 

Provision for Impairment Losses (2)

(11,689) 

(7,194) 

(11,689) 

(7,194) 

Others (3)

(449,926) 

(2,601,377) 

(431,299) 

(2,609,499) 

Total

16,047,237 

35,664,305 

15,625,403 

34,381,634 

(1) Includes exchange variation revenue in the amount of R$ 11,672,281 in the Bank and in the Consolidated (12/31/2020 - revenue of R$ 31,191,979 in the Bank and in the Consolidated).

(2) Corresponds to the record of loss of a permanent nature, referring to securities classified as available for sale.

(3) Includes exchange variation expenses and net appreciation of investment fund shares and participations in the amount of R$ 432,576 in the Bank and in the Consolidated (2020 - expense of R$ 2,746,386 in the Bank and in the Consolidated).


 

b) Derivatives Financial Instruments

The main risk factors of the derivative instruments assumed are related to exchange rates, interest rates and variable income. In the management of this and other market risk factors, practices are used that include measuring and monitoring the use of limits previously defined in internal committees, the value at risk of portfolios, sensitivities to fluctuations in interest rates, exposure exchange rate, liquidity gaps, among other practices that allow the control and monitoring of risks, which may affect Banco Santander positions in the various markets where it operates. Based on this management model, the Bank has been able, with the use of transactions involving derivative instruments, to optimize the risk-benefit ratio even in situations of high volatility.

The fair value of derivative financial instruments is determined using market price quotations. The fair value of swaps is determined using discounted cash flow modeling techniques, reflecting the appropriate risk factors. The fair value of forward and futures contracts is also determined based on market price quotations for derivatives traded on the stock exchange or using methodologies similar to those described for swaps. The fair value of the options is determined based on mathematical models, such as Black & Scholes, implied volatilities and the fair value of the corresponding asset. Current market prices are used to price volatilities. For derivatives that do not have prices directly disclosed by exchanges, the fair price is obtained through pricing models that use market information, inferred from the prices disclosed for the most liquid assets. From these prices the interest curves and market volatilities are extracted, which serve as input data for the models.

I) Summary of Derivative Financial Instruments

Swap operations are presented by the balances of the differentials receivable and payable.

Below, the composition of the Derivative Financial Instruments portfolio (Assets and Liabilities) by type of instrument, demonstrated by its market value:

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

Swap - Differential Receivable

15,945,514 

18,455,192 

14,746,581 

17,925,675 

14,833,318 

18,066,436 

14,729,641 

18,652,196 

Options to Exercise Awards

1,763,863 

2,069,388 

4,448,585 

4,511,175 

1,764,198 

2,069,473 

4,979,011 

4,926,994 

Term Contract and Other Contracts

14,048,219 

13,941,321 

13,085,550 

12,690,276 

14,048,272 

13,941,438 

13,131,423 

12,690,275 

Total

31,757,596 

34,465,901 

32,280,716 

35,127,126 

30,645,788 

34,077,347 

32,840,075 

36,269,465 

 


 

II) Derivatives Recorded in Memorandum Accounts and Balance Sheets

Bank

03/31/2021

12/31/2020

Trading

Notional (1)

Cost

Fair Value

Notional (1)

Cost

Fair Value

Swap

(4,806,698)

(2,509,678)

476,214,481 

(2,838,239)

(3,179,094)

Assets

380,738,281 

8,301,890 

15,945,514 

317,619,156 

6,511,030 

14,746,581 

CDI (Interbank Deposit Rates)

71,197,083 

34,334 

835,219 

52,270,726 

326,585 

334,690 

Fixed Interest Rate - Real

78,199,705 

4,863,921 

8,325,862 

59,799,047 

4,013,562 

9,607,342 

Indexed to Price and Interest Rates

4,605,470 

1,199,085 

1,200,287 

5,124,411 

959,322 

1,093,119 

Foreign Currency

226,736,023 

2,204,551 

5,584,146 

198,880,422 

950,048 

3,408,073 

Others

1,544,550 

261,513 

303,357 

Liabilities

385,544,978 

(13,108,587)

(18,455,192)

158,595,325 

(9,349,269)

(17,925,675)

CDI (Interbank Deposit Rates)

52,614,455 

(9,472,443) 

(138,563) 

46,403,968 

(6,911,747) 

(14,018,319) 

Fixed Interest Rate - Real

91,762,314 

(2,489,271) 

(10,497,496) 

69,076,757 

(2,183,507) 

(2,772,479) 

Indexed to Price and Interest Rates

1,820,153 

(3,241) 

(168,892) 

33,026,691 

(25) 

(450,958) 

Foreign Currency

239,348,056 

(1,143,632) 

(7,650,241) 

7,906,521 

(231,185) 

(327,145) 

Others

2,181,388 

(22,805) 

(356,774) 

Options

1,076,618,259 

(449,370)

(305,525)

1,963,194,665 

(282,109)

(62,590)

Purchased Position

524,486,567 

939,218 

1,763,863 

969,622,684 

1,869,805 

4,448,585 

Call Option - Foreign Currency

8,203,930 

234,205 

404,568 

1,188,387 

47,898 

39,201 

Put Option - Foreign Currency

4,026,609 

8,285 

36,936 

1,948,673 

79,019 

109,077 

Call Option - Other

47,303,475 

348,821 

386,575 

101,568,876 

558,794 

563,157 

Interbank Market

46,787,211 

345,385 

366,017 

101,421,659 

557,167 

556,039 

Others (2)

516,264 

3,436 

20,557 

147,217 

1,627 

7,118 

Put Option - Other

464,952,552 

347,907 

935,785 

864,916,748 

1,184,094 

3,737,150 

Interbank Market

464,696,980 

346,447 

928,742 

864,852,555 

1,183,630 

3,733,690 

Others (2)

255,572 

1,460 

7,043 

64,193 

464 

3,460 

Sold Position

552,131,692 

(1,388,588)

(2,069,388)

993,571,981 

(2,151,914)

(4,511,175)

Call Option - Foreign Currency

1,333,976 

(13,730) 

(10,218) 

1,537,669 

(70,201) 

699,243 

Put Option - Foreign Currency

10,343,321 

(269,039) 

(126,498) 

2,315,918 

(137,061) 

(192,334) 

Call Option - Other

76,010,823 

(676,926) 

(1,100,524) 

120,254,124 

(588,023) 

(464,404) 

Interbank Market

75,683,466 

(676,344) 

(1,097,110) 

120,156,285 

(566,813) 

(464,404) 

Others (2)

327,357 

(582) 

(3,414) 

97,839 

(21,210) 

Put Option - Other

464,443,572 

(428,893) 

(832,148) 

869,464,270 

(1,356,629) 

(4,553,680) 

Interbank Market

464,362,349 

(428,893) 

(832,148) 

869,328,317 

(1,350,314) 

(4,597,426) 

Others (2)

81,223 

135,953 

(6,315) 

43,746 

Futures Contracts

159,570,548 

268,807,002 

Purchased Position

175,167 

109,940,706 

Exchange Coupon (DDI)

12,438,698 

Interest Rates (DI1 and DIA)

97,502,008 

Foreign Currency

175,167 

Indexes (3)

Treasury Bonds/Notes

Sold Position

159,395,381 

158,866,295 

Exchange Coupon (DDI)

48,732,307 

73,114,013 

Interest Rates (DI1 and DIA)

70,544,187 

67,323,206 

Foreign Currency

39,886,594 

18,172,817 

Indexes (3)

222,868 

256,260 

Treasury Bonds/Notes

9,425 

Forward Contracts and Others

137,138,974 

920,224 

106,898 

102,561,361 

894,559 

395,274 

Purchased Commitment

77,674,491 

1,948,054 

14,048,272 

64,787,891 

1,303,693 

13,085,550 

Currencies

66,829,748 

1,419,222 

2,582,326 

57,121,562 

1,303,693 

13,077,413 

Others

10,844,743 

528,832 

11,465,947 

7,666,329 

8,137 

Sell Commitment

59,464,482 

(1,027,830)

(13,941,438)

37,773,470 

(409,134)

(12,690,276)

Currencies

51,038,266 

(504,089) 

(1,020,719) 

37,294,944 

(408,912) 

(12,692,636) 

Others

8,426,217 

(523,741) 

(12,920,719) 

478,526 

(222) 

2,360 

 


 

Consolidated

03/31/2021

12/31/2020

Trading

Notional (1)

Cost

Fair Value

Notional (1)

Cost

Fair Value

Swap

(4,266,075)

(3,233,118)

(2,838,239)

(3,922,555)

Assets

379,532,363 

8,355,516 

14,833,318 

283,308,405 

6,511,030 

14,729,641 

CDI (Interbank Deposit Rates)

71,185,332 

47,014 

847,969 

45,872,335 

326,585 

2,686,294 

Fixed Interest Rate - Real

78,192,627 

4,893,609 

8,361,735 

54,159,847 

4,013,562 

9,607,343 

Indexed to Price and Interest Rates

4,605,470 

1,199,085 

1,200,287 

5,124,411 

959,322 

1,093,119 

Foreign Currency

225,548,934 

2,215,808 

4,423,327 

178,076,136 

950,048 

1,039,528 

Others

75,676 

261,513 

303,357 

Liabilities

385,993,063 

(12,621,591)

(18,066,436)

124,729,472 

(9,349,269)

(18,652,196)

CDI (Interbank Deposit Rates)

52,590,274 

(9,472,443) 

(155,736) 

33,239,800 

(6,911,747) 

(14,018,319) 

Fixed Interest Rate - Real

91,730,833 

(2,495,058) 

(10,515,123) 

49,644,709 

(2,183,507) 

(2,772,479) 

Indexed to Price and Interest Rates

1,820,153 

(3,241) 

(168,892) 

33,026,691 

(25) 

(450,958) 

Foreign Currency

239,851,803 

(650,848) 

(7,226,685) 

6,636,884 

(231,185) 

153,695 

Others

2,181,388 

(22,805) 

(1,564,135) 

Options

1,076,636,640 

(430,989)

(305,275)

2,043,286,079 

(282,108)

52,017 

Purchased Position

524,491,867 

944,519 

1,764,198 

1,006,266,895 

1,869,805 

4,979,011 

Call Option - Foreign Currency

8,203,930 

234,205 

404,568 

1,188,387 

47,898 

39,201 

Put Option - Foreign Currency

4,026,609 

8,285 

36,936 

1,948,673 

79,019 

109,077 

Call Option - Other

47,306,707 

352,053 

386,602 

134,761,946 

558,794 

1,093,583 

Interbank Market

46,787,211 

345,385 

366,017 

101,421,659 

557,167 

556,039 

Others (2)

519,496 

6,668 

20,585 

33,340,287 

1,627 

537,544 

Put Option - Other

464,954,621 

349,975 

936,093 

868,367,889 

1,184,094 

3,737,150 

Interbank Market

464,696,980 

346,447 

928,742 

864,852,555 

1,183,630 

3,733,690 

Others (2)

257,640 

3,528 

7,350 

3,515,334 

464 

3,460 

Sold Position

552,144,773 

(1,375,508)

(2,069,473)

1,037,019,184 

(2,151,913)

(4,926,994)

Call Option - Foreign Currency

1,333,976 

(13,730) 

(10,218) 

1,537,669 

(70,201) 

699,241 

Put Option - Foreign Currency

10,343,321 

(269,039) 

(126,498) 

2,315,918 

(137,061) 

(192,334) 

Call Option - Other

76,018,593 

(669,156) 

(1,100,542) 

130,919,392 

(588,022) 

(453,918) 

Interbank Market

75,683,466 

(676,344) 

(1,097,110) 

120,156,284 

(566,812) 

(464,404) 

Others (2)

335,127 

7,188 

(3,432) 

10,763,108 

(21,210) 

10,486 

Put Option - Other

464,448,882 

(423,583) 

(832,215) 

902,246,205 

(1,356,629) 

(4,979,983) 

Interbank Market

464,362,349 

(428,893) 

(832,148) 

869,328,317 

(1,350,314) 

(4,597,426) 

Others (2)

86,534 

5,310 

(67) 

32,917,888 

(6,315) 

(382,557) 

Futures Contracts

159,571,409 

270,258,562 

Purchased Position

175,598 

110,275,865 

Exchange Coupon (DDI)

12,438,695 

Interest Rates (DI1 and DIA)

431 

97,837,170 

Foreign Currency

175,167 

Indexes (3)

Treasury Bonds/Notes

Sold Position

159,395,812 

159,982,697 

Exchange Coupon (DDI)

48,732,307 

73,114,013 

Interest Rates (DI1 and DIA)

70,544,618 

67,958,767 

Foreign Currency

39,886,594 

18,653,657 

Indexes (3)

222,868 

256,260 

Treasury Bonds/Notes

9,425 

Forward Contracts and Others

137,147,154 

397,257 

106,834 

107,761,737 

2,693,758 

441,148 

Purchased Commitment

77,676,648 

1,419,276 

14,048,272 

67,378,024 

1,370,653 

13,131,423 

Currencies

66,831,905 

1,419,276 

2,582,326 

59,711,695 

1,370,653 

13,077,412 

Others

10,844,743 

11,465,947 

7,666,329 

54,011 

Sell Commitment

59,470,506 

(1,022,019)

(13,941,438)

40,383,713 

1,323,105 

(12,690,275)

Currencies

51,044,289 

(498,278) 

(1,020,719) 

39,905,187 

1,323,327 

(12,692,635) 

Others

8,426,217 

(523,741) 

(12,920,719) 

478,526 

(222) 

2,360 

(1) Nominal value of the updated contracts.

(2) Includes options of indexes, mainly being options involving US treasury, shares and stock indexes.

(3) Includes Bovespa and S&P indexes.

 


 

III) Derivative Financial Instruments by Counterparty, Opening by Maturity and Trading Market

Bank

Notional

By Counterparty

By Maturity

Trading Market

03/31/2021

12/31/2020

03/31/2021

03/31/2021

Related

Financial

Up to

From 3 to

Over

Over the Counter (3)

Customers

 Parties

Institutions (1)

Total

Total

 3 Months

12 Months

12 Months

Exchange (2)

Swap

40,957,639 

173,673,923 

166,106,718 

380,738,281 

317,619,156 

49,476,351 

89,116,675 

242,145,255 

89,111,405 

291,626,876 

Options

24,237,223 

401,651 

1,051,979,385 

1,076,618,259 

1,963,194,665 

324,533,993 

745,091,142 

6,993,125 

1,051,935,222 

24,683,037 

Futures Contracts

5,255,369 

154,315,179 

159,570,548 

268,807,002 

59,418,273 

49,594,951 

50,557,324 

159,570,548 

Forward Contracts and Others

63,646,280 

63,173,242 

10,319,452 

137,138,974 

102,561,361 

60,079,476 

48,815,748 

28,243,750 

2,369,786 

134,769,188 

Consolidated

Notional

By Counterparty

By Maturity

Trading Market

03/31/2021

12/31/2020

03/31/2021

03/31/2021

Related

Financial

Up to

From 3 to

Over

Over the Counter (3)

Customers

 Parties

Institutions (1)

Total

Total

 3 Months

12 Months

12 Months

Exchange (2)

Swap

40,957,639 

173,673,923 

164,900,800 

379,532,363 

283,308,405 

49,476,351 

90,322,593 

242,145,255 

89,111,405 

290,420,958 

Options

24,237,223 

401,651 

1,051,997,766 

1,076,636,640 

2,043,286,079 

324,533,993 

745,109,523 

6,993,125 

1,051,935,222 

24,664,656 

Futures Contracts

5,255,369 

154,316,040 

159,571,409 

270,258,562 

59,418,273 

49,595,812 

50,557,324 

159,571,409 

Forward Contracts and Others

63,646,280 

63,173,242 

10,327,632 

137,147,154 

107,761,737 

60,079,476 

48,823,927 

28,243,750 

2,369,786 

134,761,008 

(1) Includes operations with B3 S.A. - Brazil, Bolsa, Balcão (B3) and other stock and commodity exchanges as counterparty.

(2) Includes values ​​traded at B3.

(3) It consists of transactions that are included in registration chambers, in accordance with Bacen regulations.

 

IV) Hedge Accounting

The effectiveness determined for the hedge portfolio is in accordance with Bacen Circular 3,082 / 2002 and the following hedge accounting structures were established:

IV.I) Market Risk Hedge

The Bank's market risk hedge strategies consist of structures to protect against changes in market risk, receipts and interest payments related to recognized assets and liabilities.

The market risk hedge management methodology adopted by the Bank segregates transactions by the risk factor (eg, Real / Dollar exchange rate risk, interest rate fixed in Reais, Dollar exchange rate risk, inflation, interest rate risk, etc.). The transactions generate exposures that are consolidated by risk factor and compared with pre-established internal limits.

To protect the variation of market risk in the receipt and payment of interest, the Bank uses swap contracts and interest rate futures contracts related to fixed-rate assets and liabilities.

The Bank applies the market risk hedge as follows:

• Designates Foreign Currency + Coupon swaps versus% CDI and Pre-Real Interest Rate or contracts Dollar futures (DOL, DDI / DI) as a derivative instrument in Hedge Accounting structures, having as object item foreign currency loan operations.

• The Bank has a pre-fixed interest rate risk generated by government securities (NTN-F and LTN) in the portfolio of Financial Assets available for sale. To manage this mismatch, the entity contracts DI futures on the Stock Exchange and designates them as a hedge accounting instrument.

• The Bank has a risk to the IPCA index generated by debentures in the securities portfolio available for sale. To manage this mismatch, the Bank contracts IPCA futures (DAP) on the stock exchange and designates them as a protection instrument in a Hedge Accounting structure.

• Santander Leasing has a fixed interest rate risk generated by government bonds (NTN-F) in the securities portfolio available for sale. To manage this mismatch, the entity contracts interest swaps and designates them as a protection instrument in a Hedge Accounting structure.

• The Bank has a pre-fixed interest rate risk on liabilities through issuance of real estate letters of credit (LCI). To manage this mismatch, the entity contracts DI futures on the Stock Exchange and designates them as a hedge accounting instrument.

In market risk hedges, the results, both on hedge instruments and on the objects (attributable to the type of risk being protected) are recognized directly in the income for the period.

IV.II) Cash Flow Hedge

The Bank's cash flow hedge strategies consist of hedging exposure to changes in cash flows, interest payments and exchange rate exposure, which are attributable to changes in interest rates on recognized assets and liabilities and changes exchange rates for unrecognized assets and liabilities.

The Bank applies the cash flow hedge as follows:

• It contracts fixed-rate asset swaps and liabilities in foreign currency and designates them as a hedging instrument in a Cash Flow Hedge structure, with the object of foreign currency loan operations negotiated with third parties through offshore agencies and government bonds. Brazilian foreign debt held to maturity.

• It contracts Dollar futures or DDI + DI (Synthetic Dollar Futures) futures and designates them as a protection instrument in a Cash Flow Hedge structure, having as object item the Bank's credit portfolio in Dollars and Promissory Notes in securities portfolio available for sale.

• The Bank has a portfolio of assets indexed to the Euro and traded at the offshore branch. In the transaction, the value of the asset in Euro will be converted to Dollar at the rate of the transaction's foreign exchange contract. Upon conversion, the principal amount of the transaction, already expressed in dollars, will be adjusted by a floating or fixed rate. The assets will be hedged with Swap Cross Currency in order to transfer the risk in Euro to LIBOR + Coupon.

• Banco RCI Brasil SA has hedge operations whose purpose is to raise funds with financial bills (LF), bills of exchange (LC) and Interbank deposit certificates (CDI) indexed to CDI and uses interest rate swaps to make pre-fixed funding and predictability of future cash flows.

In cash flow hedge, the effective portion of the variation in the value of the hedge instrument is temporarily recognized in equity under the equity valuation adjustments item until the forecasted transactions occur, when that portion is recognized in the income statement. The ineffective portion of the variation in the value of foreign exchange hedge derivatives is recognized directly in the income statement. As of March 3, 2021 and March 31, 2020, no results were recorded for the ineffective portion.

 

Bank

03/31/2021

12/31/2020

Strategies

Adjustment to Fair Value

Accounting Value

Notional

Adjustment to Fair Value

Accounting Value

Notional

Market Risk Hedge

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

Futures Contracts

55,543,158 

58,436,195 

41,455,470 

58,436,195 

45,331,727 

46,649,331 

46,178,734 

30,985,609 

Securities Hedge

55,543,158 

58,436,195 

41,455,470 

58,436,195 

45,331,727 

46,649,331 

46,178,734 

30,985,609 

Cash Flow Hedge

Swap Contracts

241,851 

299,210 

6,635,810 

6,848,665 

5,656,026 

6,215,155 

6,786,840 

6,622,857 

5,316,632 

4,502,378 

Securities Hedge

199,262 

255,724 

1,419,078 

1,565,453 

1,419,078 

1,565,453 

1,302,666 

1,428,053 

1,302,666 

1,428,053 

Funding Hedge

 

42,589 

 

43,489 

 

5,216,732 

 

5,283,211 

 

4,236,948 

 

4,649,702 

 

 

 

5,484,174 

 

5,194,804 

 

4,013,966 

 

3,074,325 

Futures Contracts

25,887,826 

20,871,296 

25,887,826 

20,871,296 

23,447,934 

19,500,234 

23,447,934 

19,333,230 

Credit Operations Hedge

25,887,826 

20,871,296 

25,887,826 

20,871,296 

23,447,934 

19,500,234 

23,447,934 

19,333,230 

 

Consolidated

03/31/2021

12/31/2020

Strategies

Adjustment to Fair Value

Accounting Value

Notional

Adjustment to Fair Value

Accounting Value

Notional

Market Risk Hedge

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

 Objects (1)

 Instruments (1)

Futures Contracts

55,543,158 

58,436,195 

41,455,470 

58,436,195 

45,331,727 

46,649,331 

46,178,734 

30,985,609 

Securities Hedge

55,543,158 

58,436,195 

41,455,470 

58,436,195 

45,331,727 

46,649,331 

46,178,734 

30,985,609 

Cash Flow Hedge

Swap Contracts

241,851 

299,210 

6,635,810 

6,848,665 

5,656,026 

6,215,155 

6,786,840 

6,622,857 

5,316,632 

4,502,378 

Securities Hedge

199,262 

255,724 

1,419,078 

1,565,453 

1,419,078 

1,565,453 

1,302,666 

1,428,053 

1,302,666 

1,428,053 

Funding Hedge

42,589 

43,489 

5,216,732 

5,283,211 

4,236,948 

4,649,702 

5,484,174 

5,194,804 

4,013,966 

3,074,325 

Futures Contracts

25,887,826 

20,871,296 

25,887,826 

20,871,296 

23,447,934 

19,500,234 

23,447,934 

19,333,230 

Credit Operations Hedge

25,887,826 

20,871,296 

25,887,826 

20,871,296 

23,447,934 

19,500,234 

23,447,934 

19,333,230 

(*) The Bank has cash flow hedge strategies, the objects of which are assets in its portfolio, which is why we have shown the passive side of the respective instruments. For structures whose instruments are futures, we show the balance of the notional, recorded in a memorandum account.

(1) Credit amounts refer to lending operations and lending operations to passive operations.

 

 

Bank

Consolidated

03/31//2021

12/31/2020

03/31//2021

12/31/2020

 

Up to 3

From 3 to

Above

Up to 3

From 3 to

Above

Strategies

Months

12 Months

12 Months

Total

Total

Months

12 Months

12 Months

Total

Total

Market Risk Hedge

Futures Contracts

4,585,532 

4,755,390 

49,095,273 

58,436,195 

30,985,609 

4,585,532 

4,755,390 

49,095,273 

58,436,195 

30,985,609 

Securities Hedge

4,585,532 

4,755,390 

49,095,273 

58,436,195 

30,985,609 

4,585,532 

4,755,390 

49,095,273 

58,436,195 

30,985,609 

Cash Flow Hedge

Swap Contracts

1,565,453 

1,565,453 

1,428,053 

2,846,506 

1,411,940 

2,590,218 

6,848,665 

4,502,378 

Securities Hedge

1,565,453 

1,565,453 

1,428,053 

1,565,453 

1,565,453 

1,428,053 

Funding Hedge

1,281,053 

1,411,940 

2,590,218 

5,283,211 

3,074,325 

Futures Contracts

20,871,296 

20,871,296 

19,333,230 

20,871,296 

20,871,296 

19,333,230 

Credit Operations Hedge (2) (3)

20,871,296 

20,871,296 

19,333,230 

20,871,296 

20,871,296 

19,333,230 

 

At the Bank and Consolidated, the mark-to-market effect of swap and future asset contracts corresponds to a credit in the amount of R$ 176,392 (12/31/2020 - R$ 11,528) and is recorded in equity, net of tax effects, of which R$ 79,619 will be realized against revenue in the next twelve months.

 

V) Credit Derivatives Information

Banco Santander uses credit derivatives with the objectives of performing counterparty risk management and meeting its customers' demands, performing protection purchase and sale transactions through credit default swaps and total return swaps, primarily related to Brazilian sovereign risk securities.

Total Return Swaps – TRS

Credit derivatives refer to the exchange of the return of the reference obligation by a cash flow and in which, in the event of a credit event, the protection buyer is usually entitled to receive from the protection seller the equivalent of the difference between the restated amount and the fair value (market value) of the reference obligation on the settlement date of the agreement.

Credit Default Swaps – CDS

These are credit derivatives where, in the event of a credit event, the protection buyer is entitled to receive from the protection seller the equivalent of the difference between the face value of the CDS agreement and the fair value (market value) of the reference obligation on the settlement date of the contract. In return, the seller receives compensation for the sale of the protection.

Below, the composition of the Credit Derivatives portfolio shown by its reference value and effect in the calculation of Required Stockholders' Equity.

 

Bank/Consolidated

Valor Nominal

03/31/2021

12/31/2020

Retained Risk - Total Rate of Return Swap

Transferred Risk - Credit Swap

Retained Risk - Total Rate of Return Swap

Transferred Risk - Credit Swap

Credit Swaps

4,067,785 

569,730 

3,483,628 

519,670 

Total

4,067,785 

569,730 

3,483,628 

519,670 

Amount related to the premium paid on CDS for use as guarantee (risk transfer) in the amount of R$1.651 (12/31/2020 - R$1,506).

The effect on the PLE of the risk received was R$1.183 (12/31/2020 - R$6,985).

During the period there was no occurrence of a credit event related to taxable events provided for in the contracts.

 

03/31/2021

12/31/2020

Maximum Potential for Future Payments - Gross

Over 12 Months

Total

Over 12 Months

Total

Per Instrument: CDS

4,637,515 

4,637,515 

4,003,298 

4,003,298 

Per Risk Classification: Below Investment Grade

4,637,515 

4,637,515 

4,003,298 

4,003,298 

Per Reference Entity: Brazilian Government

4,003,298 

4,003,298 

 

VI) Derivative Financial Instruments - Margin Given in Guarantee                                                                  

The margin given as collateral for transactions traded on B3 with its own and third party derivative financial instruments is composed of federal government securities.

 Bank

 Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Financial Literature of the Treasury - LFT

3,224,365 

3,702,213 

3,727,829 

4,363,665 

National Treasury Bills - LTN

6,720,481 

6,155,275 

6,804,652 

6,155,275 


National Treasury Notes - NTN

2,967,734 

2,814,273 

2,967,734 

2,814,273 

Total

12,912,580 

12,671,761 

13,500,215 

13,333,213 

 

7.     Interbank Accounts

The amount of interbank accounts is composed of restricted deposits with the Bacen to meet compulsory obligations for demand deposits, savings deposits and time deposits, and payments and receipts pending settlement, represented by checks and other documents sent to clearinghouses payment transactions (assets and liabilities position).

8.     Loan Portfolio and Allowance for Loan Losses

a) Loan Portfolio

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Lending Operations

290,932,552 

279,580,267 

351,861,843 

338,110,717 

Loans and Discounted Titles

186,349,734 

179,058,116 

187,915,206 

179,172,031 

Financing

42,405,709 

41,034,126 

101,769,528 

99,450,661 

Rural and Agroindustrial - Financing

13,835,704 

13,659,898 

13,835,704 

13,659,898 

Real Estate Financing

48,341,405 

45,828,127 

48,341,405 

45,828,127 

Leasing Operations

2,499,933 

2,471,384 

Advances on Foreign Exchange Contracts (1)

7,382,671 

6,310,254 

7,382,671 

6,310,254 

Other Receivables (2)

59,772,832 

61,569,706 

62,993,279 

64,758,539 

Credits for Honored Sureties and Guarantees

 

193,800 

 

228,754 

 

449,800 

 

228,754 

Income Receivable from Advances Granted - Foreign Exchange Portfolio

 

139,337 

 

150,513 

 

139,337 

 

150,513 

Other Assets

 

59,439,695 

 

61,190,439 

 

62,404,142 

 

64,379,272 

Total

358,088,055 

347,460,227 

424,737,726 

411,650,894 

(1) Advances on foreign exchange contracts are classified as a reduction in other obligations.

(2) Debtors for the purchase of securities and assets and securities and receivables (Note 11).

 

Sale or Transfer Operations of Financial Assets

According to CMN Resolution nº 3,533/2008 updated with later norms, the lending operations with substantial retention of risks and benefits, started from January 1, 2012 to remain registered in the loan portfolio. For lending operations made until December 31, 2011, regardless of the retention or transfer of substantial risks and benefits, financial assets were written off from the record of the original operation and the result recorded in the transfer to the appropriate result.

(i) With Substantial Transfer of Risks and Benefits

At the Bank and Consolidated, during the quarter ended March 31, 2021, credit assignment operations were carried out without recourse in the amount of R$ 6,851 (12/31/2020 - R$ 1,417,146) and were represented, substantially, by discounted loans and securities, and of this amount, having no values ​​of this amount with a Group company.

 

During the quarter ended March 31, 2021, credit provision was made in full, without recourse, in the amount of R$ 133,000 in the Bank and in the Consolidated relating to credit operations at loss, with third parties, without involving Group companies.

(ii) With Substantial Retention of Risks and Benefits

In December 2011, the Bank assigned credits with recourse to real estate financing in the amount of R$ 688,821, maturing in October 2041. On March 31, 2021, the present value of the assigned operations is R$ 51,710 (12/31/2020 - R $ 55,284).

These assignment transactions were carried out with a co-obligation clause, and compulsory repurchase is expected in the following situations:

·         Contracts in default for a period exceeding 90 consecutive days;

·         Contracts subject to renegotiation;

·         Contracts subject to portability in accordance with CMN Resolution nº 3,401/2006; and

·         Contracts subject to intervention.

The compulsory repurchase price will be calculated by unpaid balance of the loan due date at the time of its repurchase.

From the date of transfer, cash flows from operations will be paid directly to the assignee entity.

b) Loan Portfolio by Maturity

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Overdue

5,822,579 

5,015,638 

6,533,359 

5,842,250 

Due to:

Up to 3 Months

103,029,021 

101,913,270 

114,820,530 

111,058,613 

From 3 to 12 Months

85,064,407 

80,400,014 

109,288,898 

100,998,401 

Over 12 Months

164,172,048 

160,131,305 

194,094,939 

193,751,630 

Total

358,088,055 

347,460,227 

424,737,726 

411,650,894 

 

c) Loan Portfolio by Business Sector

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Private Sector

357,089,200 

346,441,422 

423,737,743 

410,630,891 

Industry

70,592,505 

65,984,136 

71,754,111 

67,264,749 

Commercial

44,564,975 

43,967,769 

48,847,861 

47,902,610 

Financial Institutions

2,049,456 

2,140,177 

2,055,538 

2,157,962 

Services and Other (1)

59,295,437 

58,085,560 

63,779,324 

60,971,259 

Individuals

175,624,164 

172,102,567 

232,250,492 

228,089,977 

Credit Cards

35,069,825 

37,427,267 

35,069,825 

37,427,267 

Mortgage Loans

46,472,767 

43,993,132 

46,472,767 

43,993,132 

Payroll Loans

48,311,965 

47,029,722 

48,311,965 

47,029,722 

Financing and Vehicles Lease

2,281,208 

2,249,094 

56,254,108 

55,874,243 

Others (2)

43,488,399 

41,403,352 

46,141,827 

43,765,613 

Agricultural

4,962,663 

4,161,213 

5,050,417 

4,244,334 

Public Sector

998,855 

1,018,805 

999,983 

1,020,003 

State

395,962 

399,669 

395,963 

399,669 

Municipal

602,893 

619,136 

604,020 

620,334 

Total

358,088,055 

347,460,227 

424,737,726 

411,650,894 

(1) Includes the activities of mortgage companies - business plan, transportation services, health, personal and others.

(2) Includes personal loans, overdraft among others.


d) Classification of Loan Portfolio and Respective Allowance for Loan Losses by Risk Level

Bank

03/31/2021

12/31/2020

Loan Portfolio

Allowance

Loan Portfolio

Allowance

Risk Level

Minimum

Allowance Required

Current

Past Due (1)

Total (3)

Required

Additional (2)

Total

Current

Past Due (1)

Total (3)

Required

Additional (2)

Total

AA

0.0% 

171,052,805 

171,052,805 

162,569,532 

162,569,532 

A

0.5% 

97,596,899 

97,596,899 

487,984 

138,707 

626,691 

98,084,064 

98,084,064 

490,420 

331,959 

822,379 

B

1.0% 

32,614,451 

2,504,204 

35,118,655 

351,187 

589,586 

940,773 

31,497,816 

1,989,791 

33,487,607 

334,876 

572,154 

907,030 

C

3.0% 

22,607,105 

2,172,882 

24,779,987 

743,400 

1,586,137 

2,329,537 

23,128,620 

1,789,539 

24,918,159 

747,545 

1,561,868 

2,309,413 

D

10.0% 

8,275,483 

2,483,223 

10,758,706 

1,075,871 

1,855,253 

2,931,124 

8,215,630 

1,943,697 

10,159,327 

1,015,933 

1,763,634 

2,779,567 

30.0% 

2,033,820 

1,572,466 

3,606,286 

1,081,885 

571,381 

1,653,266 

2,254,334 

1,547,171 

3,801,505 

1,140,451 

600,261 

1,740,712 

F

50.0% 

1,844,461 

1,366,352 

3,210,813 

1,605,407 

503,817 

2,109,224 

1,831,369 

1,335,331 

3,166,700 

1,583,350 

503,804 

2,087,154 

G

70.0% 

1,629,629 

1,196,460 

2,826,089 

1,978,262 

626,791 

2,605,053 

1,771,853 

1,069,343 

2,841,196 

1,988,837 

764,272 

2,753,109 

H

100.0% 

2,936,219 

6,247,488 

9,183,707 

9,183,707 

9,183,707 

3,390,140 

5,045,940 

8,436,080 

8,436,080 

8,436,080 

Total

340,590,872 

17,543,075 

358,133,947 

16,507,703 

5,871,672 

22,379,375 

332,743,358 

14,720,812 

347,464,170 

15,737,492 

6,097,952 

21,835,444 

Consolidated

03/31/2021

12/31/2020

Loan Portfolio

Allowance

Loan Portfolio

Allowance

Risk Level

% Minimum

Allowance Required

Current

Past Due (1)

Total (3)

Required

Additional (2)

Total

Current

Past Due (1)

Total (3)

Required

Additional (2)

Total

AA

0.0% 

183,591,117 

183,591,117 

174,672,176 

174,672,176 

A

0.5% 

137,917,579 

137,917,579 

689,588 

138,707 

828,295 

136,895,625 

136,895,625 

684,478 

331,960 

1,016,438 

B

1.0% 

38,232,406 

3,859,257 

42,091,663 

420,917 

589,586 

1,010,503 

37,161,806 

2,947,768 

40,109,574 

401,096 

572,154 

973,250 

C

3.0% 

23,857,471 

3,472,391 

27,329,862 

819,896 

1,594,950 

2,414,846 

24,491,130 

2,742,311 

27,233,441 

817,002 

1,575,498 

2,392,500 

D

10.0% 

8,763,244 

3,128,987 

11,892,231 

1,189,223 

2,023,554 

3,212,777 

8,768,027 

2,459,727 

11,227,754 

1,122,775 

1,927,260 

3,050,035 

30.0% 

2,122,422 

2,024,288 

4,146,710 

1,244,013 

667,508 

1,911,521 

2,374,369 

2,124,173 

4,498,542 

1,349,562 

704,758 

2,054,320 

F

50.0% 

1,898,036 

1,725,024 

3,623,060 

1,811,530 

582,349 

2,393,879 

1,929,261 

1,868,256 

3,797,517 

1,898,759 

578,271 

2,477,030 

G

70.0% 

1,714,254 

1,451,811 

3,166,065 

2,216,245 

715,024 

2,931,269 

1,848,376 

1,366,129 

3,214,505 

2,250,153 

848,059 

3,098,212 

H

100.0% 

3,298,579 

7,726,754 

11,025,333 

11,025,334 

11,025,334 

3,661,255 

6,344,449 

10,005,704 

10,005,704 

10,005,704 

Total

401,395,108 

23,388,512 

424,783,620 

19,416,745 

6,311,678 

25,728,424 

391,802,025 

19,852,813 

411,654,838 

18,529,529 

6,537,960 

25,067,489 

(1) Includes installments falling due and overdue.

(2) The additional provision is constituted based mainly on the expectation of realization of the credit portfolio, in addition to the minimum required by the current regulation.

(3) The total loan portfolio includes the amount of R$ 45,894 (12/31/ 2020- R $ 3,944) at the Bank and R $ 45,894 (12/31/ 2020- R$ 3,944) at Consolidated, referring to the adjustment to market value credit operations that are subject to protection, registered in accordance with article 5 of Bacen Circular Letter 3,624 of December 26, 2013 and that are not included in the note on risk levels (Note 6.b.VI.a).

 

 

 


e) Changes in Allowance for Loan Losses

Bank

Consolidated

01/01 a 03/31/2021

01/01 a 03/31/2020

01/01 a 03/31/2021

01/01 a 03/31/2020

Opening Balance

21,835,444 

18,661,967 

25,067,489 

21,408,092 

Allowances Recognized

2,835,477 

2,850,453 

3,376,842 

3,586,383 

Write-offs

(2,291,546) 

(2,480,501) 

(2,715,907) 

(3,290,964) 

Closing Balance

22,379,375 

19,031,919 

25,728,424 

21,703,511 

Recoveries Credits (1)

661,909 

424,320 

752,747 

512,538 

 

f) Renegotiated Credits

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Renegotiated Credits

18,325,230 

18,197,875 

22,880,728 

22,987,914 

Allowance for Loan Losses

(9,772,544) 

(9,196,227) 

(11,047,601) 

(10,411,547) 

Percentage of Coverage on Renegotiated Credits

53.3% 

50.5% 

48.3% 

45.3% 

 

g) Loan Portfolio Concentration

Consolidated

03/31/2021

12/31/2020

Loan Portfolio and Credit Guarantees (1), Securities (2) and Derivatives Financial Instruments (3)

Risk

 % 

Risk

 % 

Largest Debtor

8,596,956 

1.6% 

6,782,322 

1.3% 

10 Largest

40,881,272 

7.6% 

33,571,246 

6.5% 

20 Largest

62,873,047 

11.7% 

54,105,883 

10.5% 

50 Largest

100,596,040 

18.7% 

89,753,598 

17.4% 

100 Largest

131,635,660 

24.4% 

119,028,823 

23.1% 

(1) Includes installments of credit to builders/developers.

(2) Refers to debentures, promissory notes and certificates of real estate receivables – CRI.

(3) Refers to credit of derivatives risk.

 

9.     Other Financial Assets

 

Bank

31/03/2021

31/12/2020

Total

Total

Foreign Exchange Portfolio

64,837,128 

91,438,544 

Trading and Intermediation of Values

4,993,133 

3,824,827 

Interbank Accounts

80,104,034 

75,810,738 

Receipts and Payments Pending Settlement

728 

Credits for Avals and Sureties Honored

193,800 

228,754 

Total

150,128,095 

171,303,591 

Consolidated

31/03/2021

31/12/2020

Total

Total

Foreign Exchange Portfolio

64,837,128 

91,438,544 

Trading and Intermediation of Values

8,713,174 

6,859,624 

Interbank Accounts

80,347,922 

91,368,033 

Receipts and Payments Pending Settlement

728 

Credits for Avals and Sureties Honored

273,154 

51,583 

Total

154,171,378 

189,718,512 

 

 

 

 

 

10.   Tax Assets and Liabilities

a) Deferred Tax Assets

a.1) Nature and Origin of Recorded Deferred Tax Assets

Origins

Bank

Balances on

Balances on

03/31/2021

03/31/2020

12/31/2020

Recognition (4)

Realization

03/31/2021

Allowance for Loan Losses

39,555,540 

38,275,701 

17,224,066 

1,256,031 

(680,103) 

17,799,994 

Reserve for Legal and Administrative Proceedings - Civil

3,669,973 

4,004,582 

1,802,063 

141,209 

(291,784) 

1,651,488 

Reserve for Tax Risks and Legal Obligations

3,608,277 

3,580,550 

1,574,966 

21,655 

(9,177) 

1,587,444 

Reserve for Legal and Administrative Proceedings - Labor

5,613,044 

5,345,668 

2,405,551 

243,602 

(123,282) 

2,525,871 

Agio

122,945 

127,511 

57,380 

(2,055) 

55,325 

Adjustment to Fair Value of Trading Securities and Derivatives (1)

3,624,934 

4,643,314 

2,208,244 

480,861 

(965,177) 

1,723,928 

Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1)

1,715,586 

414,355 

197,057 

618,833 

815,890 

Accrual for Pension Plan (2)

5,066,985 

1,223,801 

1,363,434 

20,188 

1,383,622 

Profit Sharing, Bonuses and Personnel Gratuities

419,665 

1,010,089 

435,588 

193,465 

(448,591) 

180,462 

Other Temporary Provisions (3)

6,605,293 

6,661,588 

2,898,461 

(6,583) 

2,891,878 

Total Deferred Tax Assets on Temporary Differences

70,002,242 

65,287,159 

30,166,810 

2,975,844 

(2,526,752)

30,615,902 

Tax Losses and Negative Social Contribution Bases

11,550,248 

12,023,746 

5,407,013 

(224,388) 

5,182,625 

Social Contribution Tax - Executive Act 2,158/2001

990,493 

973,101 

175,158 

3,130 

178,288 

Balance of Deferred Tax Assets Recorded

82,542,983 

78,284,006 

35,748,981 

2,978,974 

(2,751,140)

35,976,815 

 

Origins

Consolidated

Balances on

Balances on

03/31/2021

03/31/2020

12/31/2020

Recognition (4)

Realization

03/31/2021

Allowance for Loan Losses

45,373,367 

43,906,296 

19,481,029 

1,480,119 

(832,048) 

20,129,100 

Reserve for Legal and Administrative Proceedings - Civil

3,913,212 

4,245,130 

1,893,379 

156,719 

(308,972) 

1,741,126 

Reserve for Tax Risks and Legal Obligations

5,957,206 

5,916,470 

2,482,770 

27,785 

(12,550) 

2,498,005 

Reserve for Legal and Administrative Proceedings - Labor

6,010,015 

5,736,391 

2,553,076 

252,440 

(134,503) 

2,671,013 

Agio

122,945 

127,511 

57,380 

(2,055) 

55,325 

Adjustment to Fair Value of Trading Securities and Derivatives (1)

3,667,922 

4,658,083 

2,215,268 

494,894 

(965,790) 

1,744,372 

Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1)

2,017,831 

536,794 

255,286 

743,098 

(38,754) 

959,630 

Accrual for Pension Plan (2)

5,108,092 

1,263,205 

1,377,669 

20,297 

(918) 

1,397,048 

Profit Sharing, Bonuses and Personnel Gratuities

506,386 

1,173,768 

492,880 

207,133 

(500,045) 

200,199 

Other Temporary Provisions (3)

7,541,335 

7,517,488 

3,233,165 

42,895 

(53,993) 

3,222,593 

Total Deferred Tax Assets on Temporary Differences

80,218,311 

75,081,136 

34,041,904 

3,425,380 

(2,848,474)

34,618,810 

Tax Losses and Negative Social Contribution Bases

11,914,543 

12,380,362 

5,703,772 

16,347 

(243,573) 

5,476,546 

Social Contribution Tax - Executive Act 2,158/2001

990,493 

973,101 

175,158 

3,130 

178,288 

Balance of Deferred Tax Assets Recorded

93,123,347 

88,434,599 

39,920,834 

3,444,857 

(3,092,047)

40,273,644 

(1) Includes Deferred Tax Assets from IRPJ, CSLL, PIS and COFINS.

(2) Includes Deferred Tax Assets from IRPJ and CSLL, on adjustments to the employee benefit plan as mentioned in Note 3.n.

(3) Composed mainly of provisions of an administrative nature.

(4) Includes the effects of altering the CSLL rate for banks of any kind, according to Constitutional Amendment 103/19.

 

As of March 31, 2021, non-activated tax credits totaled R$ 40,785 (12/31/2020 - R$ 41,418) in the Consolidated.

The accounting record of Deferred Tax Assets in the financial statements of Santander Brasil was carried out at the rates applicable to the expected period of realization and is based on the projection of future results and on a technical study prepared under the terms of CMN Resolution No. 4.842 / 2020 and Resolution BCB No. 15.

 

 

 

 

 

 

a.2) Expected Realization of Deferred Tax Assets

Bank

03/31/2021

Temporary Differences

Tax Loss - Carryforwards

Total

Year

IRPJ

CSLL

PIS/Cofins

CSLL 18%

Recorded

2021 

1,418,230 

1,151,672 

121,299 

2,949,125 

178,288 

5,818,614 

2022 

6,881,061 

5,531,994 

161,729 

12,574,784 

2023 

6,127,824 

4,923,720 

40,432 

217,455 

11,309,431 

2024 

570,481 

461,752 

2,016,045 

3,048,278 

2025 

1,104,322 

826,036 

1,930,358 

2026 to 2030

683,481 

567,925 

1,251,406 

Over 2031

24,413 

19,531 

43,944 

Total

16,809,812 

13,482,630 

323,460 

5,182,625 

178,288 

35,976,815 

Consolidated

03/31/2021

Temporary Differences

Tax Loss - Carryforwards

Total

Year

IRPJ

CSLL

PIS/Cofins

CSLL 18%

Recorded

2021 

1,906,799 

1,438,943 

125,588 

3,019,229 

178,288 

6,668,847 

2022 

7,535,571 

5,915,962 

167,450 

61,974 

13,680,957 

2023 

6,724,099 

5,272,734 

41,862 

244,139 

12,282,834 

2024 

778,233 

573,263 

2,043,307 

3,394,803 

2025 

1,667,553 

1,135,146 

9,312 

2,812,011 

2026 to 2030

707,912 

583,336 

98,662 

1,389,910 

Over 2031

24,661 

19,621 

44,282 

Total

19,344,828 

14,939,005 

334,900 

5,476,623 

178,288 

40,273,644 

 

Due to the differences between the accounting, tax and corporate criteria, the expectation of the realization of deferred tax assets should not be taken as an indication of the value of future results.

Based on CMN Resolution 4,818 / 2020 and BCB Resolution 2/2020, Tax Credits must be fully presented in the long term, for balance sheet purposes. The comparative balance as of March 31, 2020 was reclassified to maintain comparability.

a.3) Present value of deferred tax assets

The present value of the deferred tax assets recorded is R$ 34,190,091 (12/31/2020 - R$ 33,863,523) in the Bank and R$ 38,173,916 (12/31/2020 - R$ 37,749,808) in the Consolidated, calculated from according to the expected realization of temporary differences, tax loss, negative CSLL bases, Social Contribution 18% - MP 2,158 / 2001 and the average funding rate, projected for the corresponding periods.

b) Current and Deferred Tax Liabilities

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Deferred Tax Liabilities

3,789,350 

4,433,050 

4,411,355 

5,042,170 

Provision for Taxes and Contributions on Income

166,260 

22,562 

790.568 

214,506 

Taxes Payable

609,823 

933,223 

797.405 

2,051,704 

Total

4,565,433 

5,388,835 

5,999,327 

7,308,380 

 

b.1) Nature and Origin of Deferred Tax Liabilities

 

Origins

Bank

Balances on

Balances on

03/31/2021

12/31/2020

12/31/2020

Recognition

Realization

12/31/2020

Adjustment to Fair Value of Trading Securities and Derivatives (1)

9,263,684 

10,099,545 

1,626,237 

(134,591) 

1,491,646 

Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1)

13,324,682 

16,595,256 

2,672,182 

(526,631) 

2,145,551 

Excess Depreciation of Leased Assets

21,555 

21,619 

5,405 

(16) 

5,389 

Others

326,554 

287,581 

129,226 

17,538 

146,764 

Total

22,936,475 

27,004,001 

4,433,050 

17,538 

(661,238)

3,789,350 

 

 

Origins

Consolidated

Balances on

Balances on

03/31/2021

12/31/2020

12/31/2020

Recognition

Realization

12/31/2020

Adjustment to Fair Value of Trading Securities and Derivatives (1)

9,996,407 

11,020,439 

1,594,178 

62,308 

(198,785) 

1,689,756 

Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1)

13,324,682 

16,595,256 

2,672,182 

(526,631) 

2,145,551 

Excess Depreciation of Leased Assets

1,335,119 

1,287,745 

318,336 

25,115 

(9,722) 

333,729 

Others

590,226 

550,205 

225,418 

20,574 

(3,675) 

242,317 

Total

25,246,434 

29,453,645 

5,042,169 

107,997 

(738,813)

4,411,353 

(1) Includes IRPJ, CSLL, PIS and Cofins

 

b.2) Expected Realization of Deferred Tax Liabilities

 

Bank

3/31/2021

Temporary Differences

Total

Year

IRPJ

CSLL

PIS/Cofins

Recorded

2021 

691,129 

551,812 

133,362 

1,376,303 

2022 

921,506 

735,749 

177,816 

1,835,071 

2023 

237,846 

188,822 

44,454 

471,122 

2024 

8,613 

6,513 

15,126 

2025 

8,164 

6,512 

14,676 

2026 to 2030

40,819 

32,563 

73,382 

After 2031

2,042 

1,628 

3,670 

Total

1,910,119 

1,523,599 

355,632 

3,789,350 

 

 

Consolidated

3/31/2021

Temporary Differences

Total

Year

IRPJ

CSLL

PIS/Cofins

Recorded

2021 

898,375 

589,825 

136,913 

1,625,113 

2022 

1,117,330 

775,384 

182,550 

2,075,264 

2023 

299,956 

202,931 

45,639 

548,526 

2024 

42,719 

8,585 

51,304 

2025 

13,932 

7,409 

21,341 

2026 to 2030

49,578 

35,969 

85,547 

After 2031

2,461 

1,798 

4,259 

Total

2,424,351 

1,621,901 

365,102 

4,411,354 

 

c) Income Tax and Social Contribution

 

Bank

 

01/01 a

03/31/2021

01/01 a

03/31/2020

 

Income Before Taxes on Income and Profit Sharing

3,417,725 

(6,911,746)

 

Profit Sharing (1)

(429,094) 

(437,504) 

 

Income Before Taxes

2,988,631 

(7,349,250)

 

Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (3)

(1,344,883)

3,307,163 

 

Equity in Subsidiaries (2)

418,149 

402,998 

 

Nondeductible Expenses, Net of Non-Taxable Income

(456,486) 

3,046 

 

Exchange Variation - Foreign Branches

836,735 

6,418,523 

 

Income and Social Contribution Taxes on Temporary Differences and Tax Losses from Previous Exercises

274,082 

375,655 

 

Other Adjustments Social Contribution Taxes 5% (4)

56,792 

 

Other Adjustments, Including Profits Provided Abroad

260,349 

573,613 

 

Income and Social Contribution Taxes

(12,054)

11,137,790 

 

Current Taxes

(180,905)

(248,124) 

 

Income tax and social contribution for the period

(180,905) 

(248,124) 

 

Deferred Taxes

393,239 

581,591 

 

Constitution / realization in the period on temporary additions and exclusions - Result

393,239 

581,591 

581,591 

Use of opening balances of:

(224,388)

 

Negative social contribution base

(94,699) 

 

Tax loss

(129,689) 

 

Constitution in the period on:

 

 

10,804,323 

 

Negative social contribution base

 

 

4,802,283 

 

Tax loss

 

 

6,002,040 

 

Total deferred taxes

168,851 

11,385,914 

 

Income tax and social contribution

(12,054)

11,137,790 

 

 

 

Consolidated

01/01 a

03/31/2021

01/01 a

03/31/2020

Income Before Taxes on Income and Profit Sharing

3,933,791 

(6,310,398)

Profit Sharing (1)

(471,886) 

(479,097) 

Unrealized Income

217,493 

168,757 

Income Before Taxes

3,679,397 

(6,620,738)

Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (5)

(1,655,729)

 

2,979,332 

Equity in Subsidiaries (2)

3,443 

 

3,272 

Nondeductible Expenses, Net of Non-Taxable Income

(457,029) 

21,729 

Exchange Variation - Foreign Branches

836,735 

6,418,524 

Income and Social Contribution Taxes on Temporary Differences and Tax Losses from Previous Exercises

276,034 

408,538 

Interest on Capital

5,490 

8,520 

Effects of Change in Rate of CSLL (3)

108,091 

64,378 

Other Adjustments Social Contribution Taxes 5%

86,254 

Other Adjustments, Including Profits Provided Abroad

262,582 

615,872 

Income and Social Contribution Taxes

(620,383)

10,606,419 

Current Taxes

(858,639) 

(872,628) 

Income tax and social contribution for the period

(858,639) 

(872,628) 

Deferred Taxes

465,482 

918,297 

Constitution / realization in the period on temporary additions and exclusions - Result

465,482 

918,297 

Use of opening balances of:

(243,573)

(243,573)

Negative social contribution base

(94,699) 

(36,506) 

Tax loss

(148,874) 

(45,632) 

Constitution in the period on:

16,347 

10,804,323 

Negative social contribution base

4,157 

4,802,283 

Tax loss

12,190 

6,002,040 

Total deferred taxes

238,256 

11,479,047 

Income tax and social contribution

(620,383)

10,606,419 

(1)  The basis of calculation is the net income, after IR and CSLL.

(2)  As a result of equity in subsidiaries are not included interest on capital received and receivable.

(3)  Effect of rate differences for the other non-financial companies, which the social contribution tax rate is 9% and 15%.

(4)  Increase in the CSLL rate, as of March 2020, for an indefinite period.

 

Foreign Exchange Hedge of the Grand Cayman Branch, Luxembourg Branch

Banco Santander operates branches in the Cayman Islands and Luxembourg, which are used mainly to raise funds in the international capital and financial markets, to supply the Bank with lines of credit that are extended to its clients for financing foreign trade and working capital (Note 12).

To cover exposure to exchange rate variations, the Bank uses derivatives and funding. According to Brazilian tax rules, the gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments were not taxable, but as of January 2021 they became taxable or deductible for the purposes of PIS / COFINS / IR / CSLL, while the gains or losses on derivatives used as hedging are taxable or deductible. The purpose of these derivatives is to protect the net income after tax.

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 exchange differences results in volatility in the operating result and in the tax expense accounts (PIS / COFINS) and income taxes (IR / CSLL), as shown below:

R$

01/01 a 03/31/2021

01/01 a 03/31/2020

Financial Operations

Result generated by the exchange rate variations on the Bank's investment in the Cayman and EFC Agency (1)

5,015,117 

18,586,046 

Result generated by derivative contracts used as hedge

(7,409,734) 

(31,411,700) 

Tax Expenses

Tax effect of derivative contracts used as hedge - PIS/COFINS

344,527 

526,883 

Income Tax and Social Contribution

Tax effect of derivative contracts used as hedge - IR/CS

2,049,543 

12,298,771 

(1) Banco Santander maintained an investment in a foreign subsidiary called Santander Brasil, Establecimiento Financiero de Credito, S.A., which was dissolved and liquidated on December 15, 2020.

 

11.   Other Assets

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Notes and Credits Receivable (Note 8,a)

  Credit Cards

29,058,665 

31,861,356 

29,058,665 

31,861,356 

  Receivables (1)

29,777,281 

28,706,517 

33,374,159 

32,476,841 

Escrow Deposits for:

Tax Claims

5,759,847 

5,756,068 

7,507,307 

7,507,557 

Labor Claims

1,720,494 

1,978,893 

1,834,277 

2,144,435 

Others - Civil

1,081,828 

1,108,009 

1,257,643 

1,330,431 

Contract Guarantees - Former Controlling Stockholders (Note 18,i) (2)

496 

496 

496 

496 

Recoverable Taxes

2,381,105 

2,218,922 

3,207,826 

3,130,301 

Reimbursable Payments

146,092 

164,809 

158,937 

223,676 

Salary Advances/Others

119,980 

120,339 

338,872 

263,997 

Employee Benefit Plan

330,072 

291,012 

401,991 

361,149 

Debtors for Purchase of Assets (Note 8,a)

603,749 

622,564 

657,382 

687,565 

Receivable from Affiliates

21,177 

19,049 

21,161 

18,195 

Income Receivable

2,576,738 

 

2,546,048 

 

2,406,936 

 

2,356,322 

Other Assets

1,741,186 

 

1,809,180 

 

1,962,346 

 

2,131,653 

Others

973,165 

1,291,091 

2,631,508 

3,590,911 

Total

76,291,875 

 

78,494,353 

 

84,819,506 

 

88,084,885 

(1)  It consists of operations with credit assignment characteristics substantially composed of "Confirming" operations with companies subject to credit risk and analysis of loan losses by segment in accordance with the Bank risk policies.

 

 

12.   Dependences Information and Foreign Subsidiary

Branches:                                                                                                                                                                          

Cayman                                               

The Grand Cayman Agency is licensed under the Banks and Fiduciary Companies Act and is duly registered as a Foreign Company with the Registrar of Companies in Grand Cayman, Cayman Islands. The agency is therefore duly authorized to carry out banking business in the Cayman Islands and is currently engaged in fund raising business in the international banking and capital market to provide credit lines to Banco Santander, which are then extended to Banco Santander clients' for financing working capital and foreign trade. It also receives deposits in foreign currency from corporate clients and individuals and provides credit to Brazilian and foreign clients, primarily to support commercial operations with Brazil.

Luxembourg

On June 9, 2017, Banco Santander obtained authorization from the Brazilian Central Bank to set up an agency in Luxembourg with a capital of US$1 billion, with the objective of complementing the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer financial products and services through an offshore entity that is not established in a jurisdiction with favored taxation and that allows for the increase of funding capacity. The opening of the agency was authorized by the Minister of Finance of Luxembourg on March 5, 2018. On April 3, 2018, after the reduction of the capital of the Cayman Agency in the equivalent amount, the value of US$1 billion was allocated to capital of the Luxembourg branch.

Subsidiary:

Banco Santander held a subsidiary in Spain, Santander Brasil, Establecimiento Financiero de Credito, SA (Santander Brasil EFC), to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer products and services through an offshore entity that is not established in a favorably taxed jurisdiction.

On November 12, 2020, by decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A. (which had its corporate name changed to Santander Brasil, S.A.U.) was approved. The capital invested abroad was repatriated in November 2020. The deed for 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.

 

 

 

Grand Cayman Branch (3)

Luxembourg Branch (3)

Santander Brasil EFC (3)

3/31/2021

12/31/2020

3/31/2021

12/31/2020

3/31/2021

12/31/2020

Assets

177,211,455 

160,340,976 

48,358,532 

37,555,040 

1,303 

Current and Long-term Assets

177,211,455 

160,340,976 

48,358,264 

37,554,771 

1,303 

Cash

6,148,617 

10,992,918 

1,638,251 

1,116,505 

1,253 

Interbank Investments

51,894,341 

38,123,942 

1,584,894 

8,542,030 

Securities and Derivatives Financial Instruments

81,488,096 

77,537,745 

11,662,071 

1,872,724 

Lending Operations (1)

21,939,052 

21,216,364 

32,003,731 

24,813,536 

Foreign Exchange Portfolio

9,655,947 

6,800,895 

865,064 

884,473 

Others

6,086,402 

5,669,112 

605,253 

325,503 

50 

Permanent Assets

268 

269 

Liabilities

177,211,455 

160,340,976 

48,359,352 

37,555,040 

1,303 

Current and Long-term Liabilities

121,578,814 

108,823,123 

40,949,265 

30,939,233 

18 

Deposits and Money Market Funding

29,814,942 

31,461,468 

5,146,323 

4,161,763 

Funds from Acceptance and Issuance of Securities

21,868,578 

19,454,058 

13,410,188 

10,784,221 

Debt Instruments Eligible to Compose Capital

14,621,611 

13,119,659 

Borrowings (2)

33,315,818 

26,090,092 

20,665,483 

14,070,809 

Foreign Exchange Portfolio

9,572,515 

6,869,559 

859,572 

908,932 

Others

12,385,350 

11,828,287 

867,698 

1,013,508 

18 

Deferred Income

767 

171 

13,784 

13,339 

Stockholders' Equity

55,632,874 

51,517,682 

7,396,483 

6,602,468 

1,285 

01/01 a
03/31/2021

01/01 a
12/31/2020

01/01 a
03/31/2021

01/01 a
12/31/2020

01/01 a
03/31/2021

01/01 a
12/31/2020

Net Income

750,306 

1,118,717 

78,112 

238,527 

(22,285) 

(1)  Refers mainly to lending and export financing operations.

(2)  Borrowings abroad regarding financing lines to exports and imports and other lines of credit.   

(3)  The functional currency is Real.

 

13.   Investments in Affiliates and Subsidiaries Subsidiary

a)     Scope of Consolidation

Quantity of Shares or Quotas Owned (in Thousands)

Investments

Activity

Common Shares and Quotas

Preferred Shares

Direct Participation

Participation

Controlled by Bank Santander

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

Recuperação de Créditos Inadimplidos

1,464,627 

100.00% 

100.00% 

Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI)

Financial

2,877 

100.00% 

100.00% 

Bank Bandepe S.A.

Bank

3,589 

100.00% 

100.00% 

Bank RCI Brasil S.A.

Bank

81 

81 

39.89% 

39.89% 

BEN Benefícios e Serviços S.A.  (BEN Benefícios)

Other Activities

90,000 

100.00% 

100.00% 

Esfera Fidelidade S.A.

Other Activities

10,001 

100.00% 

100.00% 

GIRA - Gestão Integrada de Recebíveis do Agronegócio S.A

Tecnology

380 

80.00% 

80.00% 

Rojo Entretenimento S.A.

Other Activities

7,417 

94.60% 

94.60% 

Sanb Promotora de Vendas e Cobrança Ltda.

Other Activities

6,950 

100.00% 

100.00% 

Sancap Investimentos e Participações S.A. (Sancap)

Holding

23,538,159 

100.00% 

100.00% 

Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio)

Buying Club

238,886 

100.00% 

100.00% 

Santander Brasil Tecnologia S.A.

Tecnology

45,371 

100.00% 

100.00% 

Santander CCVM

Broker

14,067,673 

14.067.673 

99.99% 

100.00% 

Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros)

Other Activities

7,184 

100.00% 

100.00% 

Santander Holding Imobiliária S.A.

Holding

481,196 

100.00% 

100.00% 

Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing)

Leasing

85 

78.58% 

100.00% 

Santander Tecnologia e Inovação Ltda.

Other Activities

5,045 

100.00% 

100.00% 

Paytec Tecnologia em Pagamentos Ltda.

 

Other Activities

9,100 

 

100.00% 

100.00% 

Toque Fale Serviços de Telemarketing Ltda. (Toque Fale)

Other Activities

75,050 

100.00% 

100.00% 

Controlled by Aymoré CFI

Bank PSA 

Bank

105 

50.00% 

Bank Hyundai Capital Brasil S.A.

Bank

150,000 

50.00% 

Controlled by Santander Leasing

PI Distribuidora de Títulos e Valores Mobiliários S.A.

Leasing

182 

100.00% 

Controlled by Sancap

Santander Capitalização S.A. (Santander Capitalização)

Capitalization

64,615 

100.00% 

Evidence Previdência S.A.

Private Pension

42,819,564 

100.00% 

Controlled by Santander Holding Imobiliária S.A.

Summer Empreendimentos Ltda.

Other Activities

17,083 

100.00% 

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

Return Capital Serviços de Recuperação de Créditos S.A.

Collection and Recover of Credit Management

200 

100.00% 

Controlled by Paytec Tecnologia em Pagamentos Ltda..

Paytec Logística e Armazém Ltda.

 

Other Activities

100 

100.00% 

Controlled by Return Capital Serviços de Recuperação de Créditos S.A. (current name of Ipanema Empreendimentos e Participações S.A.)

Return Gestão de Recursos S.A. (atual denominação social da Gestora de Investimentos Ipanema S.A.)

Resources Management

11 

100.00% 

Jointly Controlled Companies by Sancap

Santander Auto S.A.

Other Activities

22,452 

50.00% 

 

Quantity of Shares or Quotas Owned (in Thousands)

Investments

Activity

Common Shares and Quotas

Preferred Shares

Direct Participation

Participation

Jointly Controlled Companies by Banco Santander

Estruturadora Brasileira de Projetos S.A. - EBP (EBP)

Other Activities

3.859 

2.953 

11,11% 

11,11% 

Gestora de Inteligência de Crédito S.A. (Gestora de Crédito)

Credit Bureau

3.560 

3.560 

20,00% 

20,00% 

Campo Grande Empreendimentos Ltda.

Other Activities

255 

25,32% 

25,32% 

Jointly Controlled Companies by Santander Corretora de Seguros

Webmotors S.A.

Other Activities

425.126.827 

70,00% 

TecBan - Tecnologia Bancária S.A. (TecBan)

Other Activities

743.944 

68.771 

18,98% 

PSA Corretora de Seguros e Serviços Ltda. (PSA Corretora de Seguros)

Insurance Broker

450 

50,00% 

Hyundai Corretora de Seguros Ltda.

Insurance Broker

1.000 

50,00% 

Controlled by Webmotors S.A.

Loop Gestão de Pátios S.A. (Loop)

Other Activities

23.243 

51,00% 

Controlled by TecBan

Tbnet Comércio, Locação e Administração Ltda. (Tbnet)

Other Activities

540.631 

100,00% 

Controlled by Tebnet

Tbforte Segurança e Transporte de Valores Ltda. (Tbforte)

Other Activities

517.505 

100,00% 

Investment Funds Consolidated

·         Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior (Santander FI Amazonas);

·         Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior (Santander FI Diamantina);

·         Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior (Santander FI Guarujá);

·         Santander Fundo de Investimento Unix Multimercado Crédito Privado (Santander FI Unix);

·         Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado (Santander FI SBAC);

·         Santander Paraty QIF PLC (Santander Paraty) (4);                                       

·         Venda de Veículos Fundo de Investimento em Direitos Creditórios (Venda de Veículos FIDC) (1);   

·         Fundo de Investimento em Direitos Creditórios RN Brasil - Financiamento de Veículos (FI RN Brasil - Financiamento de Veículos) (2);

·         Prime 16 – Fundo de Investimento Imobiliário (atual denominação do BRL V - Fundo de Investimento Imobiliário - FII) (3);

·         Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) (4);                                                                            

·         Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL VI) (5);                                                                                                                                        

·         Santander Hermes Multimercado Crédito Privado Infraestrutura Fundo de Investimentos;

·         Fundo de Investimentos em Direitos Creditórios Atacado – Não Padronizado (6).

·         Atual - Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (7); and

·         Verbena FCVS - Fundo de Investimento em Direitos Creditórios.

(1)     The carmaker Renault (not belonging to the Conglomerate Santander) sells its trade receivables to the Fund. This Fund buys only trade receivables from Renault carmaker. In turn, the Banco RCI Brasil S.A. (Note 14) owns 100% of its subordinated shares.

(2)     Banco RCI Brasil S.A. sold receivables (CDC portfolio) to FI RN Brasil – Financiamento de Veículos. The senior shares will have only one investor. Banco RCI Brasil S.A. holds 100% of subordinated shares.

(3)     Banco Santander was a creditor for certain overdue credit operations that had real estate as collateral. The operation for the recovery of these credits consists of the contribution of properties as collateral to the capital of the Real Estate Investment Fund and the consequent transfer of the Fund's quotas to Banco Santander, by means of a payment in payment of the aforementioned credit operations.

(4)     Banco Santander, through its subsidiaries, holds the risks and benefits of Santander Paraty and the Santander FI Hedge Strategies Subfund, resident in Ireland, and both are fully consolidated in its Consolidated Financial Statements. In the Irish market, an investment fund can not act directly and, for that reason, it was necessary to create another structure (a sub-fund), Santander FI Hedge Strategies. Santander Paraty does not have a financial position, and all position is derived from the financial position of Santander FI Hedge Strategies.

(5)     Refers to a structure in which Banco Santander sold certain credit operations, which had already been transferred to losses (operations overdue for more than 360 days) to this fund. Atual Serviços de Recuperação de Creditos e Meios Digitais S.A. (current corporate name of Atual Companhia Securitizadora de Creditos Financeiros) (Note 2.b.1), a company controlled by Banco Santander, holds 100% of the shares in this fund.

(6)     This fund started to be consolidated in October 2017 and is indirectly controlled by Atual Serviços de Recuperação de Créditos e Meios Digitais S.A.

(7)     This fund started to be consolidated in August 2020 and is controlled through Atual Serviços de Recuperação de Creditos e Meios Digitais S.A.

 

b) Investment Composition

Bank

Adjusted Stockholders' Equity

Net Income (Loss) Adjusted

Investments Value

Equity Accounting Results

03/31/2021

01/01 a 03/31/2021

03/31/2021

12/31/2020

03/31/2021

01/01 a 03/31/2020

Controlled by Banco Santander

Santander Leasing

5,747,950 

61,938 

4,516,774 

4,583,567 

48,672 

43,175 

Banco Bandepe S,A,

5,365,189 

30,458 

5,365,189 

5,369,488 

30,458 

299 

Santander Brasil EFC

41,636 

(35,574) 

(22,285) 

Santander Corretora de Seguros

3,816,865 

219,998 

3,796,358 

3,575,295 

219,998 

154,826 

Getnet S,A,

 

 

 

 

2,071,772 

 

56,220 

 

132,636 

Goodwill on the Acquisition of Residual Participation of Getnet S.A.

 

 

 

 

 

 

 

949.173 

 

 

 

 

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

1,792,643 

34,049 

1,774,106 

1,740,057 

34,049 

22,977 

Aymoré CFI

1,899,015 

356,743 

1,899,015 

1,542,259 

356,743 

245,541 

Sancap

983,438 

47,844 

983,438 

1,041,810 

47,844 

(12,945) 

Banco Olé Consignado

 

 

 

 

 

 

82,129 

Bosan S,A

 

 

 

 

 

 

47,167 

Santander CCVM

754,547 

23,475 

754,545 

731,344 

23,475 

31,475 

Banco RCI Brasil S,A,

1,508,651 

27,429 

601,815 

560,648 

10,942 

22,853 

Santander Brasil Consórcio

754,903 

77,708 

754,903 

677,195 

77,708 

54,166 

Others

2,692,186 

43,545 

1,323,896 

1,252,546 

58,687 

93,538 

Total

21,770,039 

24,136,790 

 

929,222 

 

895,552 

 

 


Consolidated

Adjusted Stockholders' Equity

Net Income (Loss) Adjusted

Investments Value

Equity Accounting Results

03/31/2021

01/01 a 03/31/2021

03/31/2021

12/31/2020

03/31/2021

01/01 a 03/31/2020

Jointly Controlled Companies Directly and Indirectly by Banco Santander

TecBan

702,638 

93,234 

133,361 

123,924 

17,696 

1,853 

Gestora de Crédito

122,659 

(20,741) 

24,532 

28,680 

(4,148) 

(3,033) 

Webmotors S.A.

217,599 

7,853 

152,319 

146,822 

5,497 

8,351 

Norchem Holdings

10 

Norchem Participações

164 

EBP

1,273 

1,273 

108 

20 

Goodwill Gira

 

 

 

9.511 

 

 

 

Santander Auto

32,759 

1,265 

16,379 

15,775 

631 

(260) 

Hyundai Corretora de Seguros Ltda.

2,241 

152 

1,120 

1,044 

76 

(44) 

PSA Corretora

1,279 

(254) 

640 

767 

(127) 

211 

Others

(6,435) 

(6,433) 

(12,083) 

Total

332,700 

311,852 

7,650 

7,272 

 

 

c)     Corporate Restructuring

Several social movements were implemented in order to reorganize the operations and activities of entities according to the business plan of the Conglomerate Santander.

i) Getnet Adquirência e Serviços para Meios de Pagamentos S.A.

Banco Santander (Brasil) SA (“Santander Brasil”) in continuation to the Material Facts disclosed on November 16, 2020, February 2, 2021 and February 25, 2021, informs its shareholders and the market in general that at the General Meeting Extraordinary Meeting held on March 31, 2021, the following were approved:

- the terms and conditions of the “Private Instrument of Protocol and Justification for the Partial Spin-Off of Banco Santander (Brasil) S.A. with Version of the Spun-off Portion for Getnet Acquirência e Serviços para Means of Payment S.A. (“Getnet”);

- the partial spin-off of Santander Brasil, which results in the segregation of the shares it owns, issued by Getnet, with a version of the spun-off portion to Getnet, pursuant to the Protocol and Justification of the Partial Spin-Off of Santander Brasil;

- as a result of the Spin-off, a reduction in the capital of Santander Brasil in the total amount of two billion reais, without the cancellation of shares, from Santander Brasil's share capital from fifty-seven billion reais to fifty-five billion reais.

ii) 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 operation 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. After the operation was approved by the Central Bank of Brazil, the operation was carried out on March 12, 2020, with Banco Santander now holding 100% of the share capital of Paytec companies.

iii) 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 to offer financial products and services. The capital invested abroad was repatriated in November 2020. The deed for 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.

iv) Disposal of Norchem Holding e Negócios S.A. and Norchem Participações e Consultoria S.A.

On October 8, 2020, Banco Santander (Brasil) SA withdrew from the board of shareholders of Norchem Participações e Consultoria SA (NPC) and Norchem Holding e Negócios SA (NHN), by means of a capital reduction in the amount of R $ 19,950 and R $ 14,770, respectively, and consequent cancellation of the shares held by Banco Santander (Brasil) SA

v) 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 the shareholders of Toro Controle e Participações SA (“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.

vi) Signing of the Agreement 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 transaction, Banco Santander now holds 80% of Gira's share capital.

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

On March 24, 2020, the Bank acquired the 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 in dated 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 Bank became a direct shareholder of Toque Fale and holder of 100% of its capital.

viii) Disposal of the equity interest held in Super Payments and Administração de Meios Eletrônicos S.A.

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

ix) 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 the totality of Summer's 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 short 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.

x) Option to sell interest in Banco Olé Consignado S.A. and merger of Banco Olé Consignado S.A. and Bosan Participações S.A.

On March 14, 2019, the minority shareholder of Banco Olé Consignado SA (“Banco Olé”) formalized its interest in exercising the put option provided for in the Investment Agreement, entered into on July 30, 2014, for the sale of its interest in 40% in the share capital of Olé Consignado to Banco Santander (Brasil) SA (“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 is shares representing 40% of Banco Olé's share capital).

On January 31, 2020, the Bank 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 the Bank 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, Banco Santander shareholders 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.

14.   Intangibles

Bank

03/31/2021

12/31/2020

Cost

Amortization

Net

Net

Goodwill on Acquired Companies

27,351,348 

(26,487,599)

863,749 

1,876,197 

Other Intangible Assets

9,609,743 

(5,526,860)

4,082,883 

4,220,582 

Acquisition and Development of Software

5,602,322 

(3,594,162) 

2,008,160 

2,100,607 

Exclusivity Contracts for Provision of Banking Services

3,795,364 

(1,909,566) 

1,885,798 

1,964,771 

Others

212,057 

(23,132) 

188,924 

155,203 

Total

36,961,091 

(32,014,459)

4,946,631 

6,096,779 

Consolidated

03/31/2021

12/31/2020

Cost

Amortization

Net

Net

Goodwill on Acquired Companies

27,378,939 

(26,373,015)

1,005,923 

2,018,698 

Other Intangible Assets

9,867,489 

(5,718,090)

4,149,399 

4,452,919 

Acquisition and Development of Software

5,846,854 

(3,753,447) 

2,093,407 

2,313,156 

Exclusivity Contracts for Provision of Banking Services

3,795,364 

(1,909,566) 

1,885,798 

1,964,771 

Others

225,271 

(55,077) 

170,194 

174,992 

Total

37,246,428 

(32,091,105)

5,155,323 

6,471,617 

(*) For the quarter ended March 31, 2021, and for the year 2020 there was no impairment.

 

15.   Funding

a) Opening of Equity Accounts

Bank

03/31/2021

12/31/2020

Without Maturity

Up to 3 Months

From 3 to 12 Months

Over 12 Months

Total

Total

Deposits

103,800,027 

102,508,567 

83,407,519 

96,445,734 

386,161,847 

392,471,480 

Demand Deposits

40,050,835 

40,050,835 

42,236,911 

Savings Deposits

63,673,888 

63,673,888 

63,306,504 

Interbank Deposits

3,042,294 

2,713,695 

237,988 

5,993,977 

5,003,476 

Time Deposits (1)

75,304 

99,466,273 

80,693,824 

96,207,745 

276,443,146 

281,924,587 

Other Deposits

 

 

 

 

 

 

Money Market Funding

122,960,616 

10,819,183 

38,183,067 

171,962,866 

159,971,460 

Own Portfolio

119,942,423 

2,067,906 

122,010,338 

101,687,723 

Government Securities

107,750,666 

1,955,076 

109,705,742 

90,892,803 

Debt Securities in Issue

3,173 

3,173 

824 

Others

12,188,584 

112,830 

12,301,423 

10,794,096 

Third Parties

3,018,193 

3,018,193 

6,283,007 

Linked to Trading Portfolio Operations

8,751,277 

38,183,058 

46,934,335 

52,000,730 

Funds from Acceptance and Issuance of Securities

11,124,706 

20,237,488 

57,082,364 

88,444,558 

87,059,806 

Foreign Exchange Acceptance Resources

 

 

102,131 

 

 

102,131 

 

101,493 

Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes

7,053,108 

14,409,088 

29,015,992 

50,478,189 

54,340,629 

Real Estate Credit Notes - LCI (1)

2,760,020 

5,749,831 

16,634,099 

25,143,950 

25,710,531 

Agribusiness Credit Notes - LCA

2,713,050 

4,103,025 

7,312,759 

14,128,834 

14,746,831 

Treasury Bills - LF (2)

1,580,038 

4,216,216 

4,417,693 

10,213,948 

12,749,911 

Guaranteed Real Estate Credit Notes - LIG (3)

340,015 

651,441 

991,456 

1,133,356 

Securities Issued Abroad

3,203,080 

5,055,063 

27,020,743 

35,278,886 

30,233,240 

Funding by Structured Operations Certificates

868,518 

671,205 

1,045,629 

2,585,354 

2,384,444 

Borrowings and Onlendings

24,267,227 

50,533,375 

9,032,277 

83,832,879 

67,720,151 

Foreign Borrowings

21,702,664 

48,441,990 

1,362,487 

71,507,141 

54,971,763 

Import and Export Financing Lines

11,110,204 

43,800,029 

997,052 

55,907,284 

54,971,763 

Other Credit Lines

10,592,460 

4,641,961 

365,435 

15,599,856 

Domestic Onlendings

2,564,563 

2,091,385 

7,669,790 

12,325,738 

12,748,388 

Total

103,800,027 

260,861,116 

164,997,564 

200,743,442 

730,402,149 

707,222,897 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

03/31/2021

12/31/2020

Without Maturity

Up to 3 Months

From 3 to 12 Months

Over 12 Months

Total

Total

Deposits

103,526,176 

102,317,846 

 

80,913,849 

96,682,944 

383,440,815 

390,051,798 

Demand Deposits

39,776,984 

 

39,776,984 

41,821,289 

Savings Deposits

63,673,888 

 

63,673,888 

63,306,504 

Interbank Deposits

2,712,572 

 

212,393 

 

3,075,217 

6,000,182 

5,145,425 

Time Deposits (1)

75,304 

99,605,274 

 

80,701,456 

 

93,607,726 

273,989,760 

279,778,578 

Other Deposits

 

 

Money Market Funding

116,421,110 

 

10,819,183 

 

38,183,067 

165,423,360 

154,997,017 

Own Portfolio

113,402,917 

 

2,067,906 

 

115,470,832 

96,713,280 

Government Securities

101,211,160 

 

1,955,076 

 

103,166,236 

85,918,360 

Debt Securities in Issue

3,173 

 

 

3,173 

824 

Others

12,188,584 

 

112,830 

 

12,301,423 

10,794,096 

Third Parties

3,018,193 

 

 

3,018,193 

6,283,007 

Linked to Trading Portfolio Operations

 

8,751,277 

 

38,183,058 

46,934,335 

52,000,730 

Funds from Acceptance and Issuance of Securities

10,415,966 

 

17,748,419 

 

42,562,060 

70,726,445 

70,627,767 

Exchange Acceptances

83,177 

 

376,329 

 

758,482 

1,217,988 

1,175,794 

Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes

7,557,961 

 

15,109,783 

 

31,708,525 

54,376,269 

57,668,252 

Real Estate Credit Notes - LCI (1)

2,760,020 

 

5,749,831 

 

16,634,099 

25,143,950 

25,710,531 

Agribusiness Credit Notes - LCA

2,713,050 

 

4,103,025 

 

7,312,759 

14,128,834 

14,746,831 

Treasury Bills - LF (2)

2,084,891 

 

4,916,912 

 

7,110,226 

14,112,029 

16,077,534 

Guaranteed Real Estate Credit Notes - LIG (3)

 

340,015 

 

651,441 

991,456 

1,133,356 

Securities Issued Abroad

1,906,310 

 

1,591,102 

 

9,049,424 

12,546,836 

9,399,277 

Funding by Structured Operations Certificates

868,518 

 

671,205 

 

1,045,629 

2,585,352 

2,384,444 

Borrowings and Onlendings

24,267,227 

 

50,533,375 

 

9,032,277 

83,832,879 

67,759,950 

Domestic Borrowings

 

 

39,799 

Foreign Borrowings

21,702,664 

 

48,441,990 

 

1,362,487 

71,507,141 

54,971,763 

Import and Export Financing Lines

11,110,204 

 

43,800,029 

 

997,052 

55,907,284 

54,971,763 

Other Credit Lines

10,592,460 

4,641,961 

 

365,435 

15,599,856 

Domestic Onlendings

2,564,563 

2,091,385 

 

7,669,790 

12,325,738 

12,748,388 

Total

103,526,176 

253,422,149 

160,014,826 

 

186,460,348 

703,423,499 

683,436,532 

(1) Consider the maturities established in the respective applications, with the possibility of immediate withdrawal, in advance of their maturity.

(2) Letters of real estate credit are fixed income securities backed by real estate credits and guaranteed by mortgage or fiduciary alienation of real estate. As of March 31, 2021, they have a maturity between 2021 and 2027.

(3) The main characteristics of the financial bills are a minimum term of two years, a minimum nominal value of R$ 50 and an early redemption allowance of only 5% of the amount issued. As of March 31, 2021, they have a maturity between 2021 and 2026.

(4) Guaranteed Real Estate Bills are fixed income securities backed by real estate credits guaranteed by the issuer and a pool of real estate credits apart from the other assets of the issuer. As of March 31, 2021, they have a maturity between 2021 and 2023 (12/31/2020 - with a maturity between 2021 and 2023).

(5) Funding made under the Special Compulsory Liquidity line under Resolution 4,795 / 20.

 

At the Bank and Consolidated, the export and import financing lines are funds raised with financial institutions abroad, intended for investment in commercial foreign exchange transactions, related to discounting export bills and pre-financing for export and import, whose maturities are up to the year 2022 (12/31/2020 - up to the year 2024) and are subject to financial charges, corresponding to the exchange variation plus interest ranging from 0.85% to 2.0% per year (12/31 / 2020 - from 0.35% per year to 4.3% per year).

Country onlending obligations - official institutions incur financial charges corresponding to TJLP, exchange variation of the BNDES currency basket or exchange variation of the US dollar, plus interest, in accordance with the operational policies of the BNDES System.

 

 

 

 

 

 

 

 

b) Opening profit and loss accounts

Bank

Consolidated

 01/01 to 03/31/2021

 01/01 to 03/31/2020

 01/01 to 03/31/2021

 01/01 to 03/31/2020

Time Deposits (1) (2)

3,957,168 

6,115,124 

4,013,209 

6,297,600 

Savings Deposits

302,846 

416,735 

302,846 

416,735 

Interbank Deposits

28,242 

51,050 

31,695 

42,744 

Money Market Funding

1,114,049 

2,704,876 

1,085,235 

2,646,575 

Upgrade and Provisions Interest and Pension Plans and Capitalization

43,717 

32,562 

Others (3)

10,590,502 

19,657,408 

10,618,694 

19,712,601 

Total

15,992,807 

28,945,193 

16,095,396 

29,148,817 

(1) At the Bank and the Consolidated, includes the recording of interest in the amount of R$ 232,342 (2020 - R$ 909,392), referring to the issuance of Level I and II Eligible Debt Instrument (Note 20).

(2) Includes exchange variation expense in the amount of R$ 1,426,532 in the Bank and in the Consolidated (2020 - exchange variation expense in the amount of R$ 9,586 in the Bank and in the Consolidated).

(3) As of march 31, 2021 it includes an exchange variation expense in the amount of R$ 10,952,661 in the Bank and in the Consolidated (2020 - Exchange variation expense in the amount of R$ 22,189,857).

 

16.   Other Financial Liabilities

a)     Composition:

Bank

03/31/2021

12/31/2020

Total

Total

Foreign Exchange Portfolio

56,766,859 

84,875,959 

Trading and Intermediation of Values

1,288,536 

315,940 

Debt Instruments Eligible to Compose Capital

14,621,611 

13,119,660 

Collected Taxes and Other

2,822,604 

94,975 

Third-Party Funds in Transit

1,724,043 

25,223 

Receipts and Payments Pending Settlement

4,748,327 

4,831,517 

Total

81,971,980 

103,263,274 

 

Consolidated

03/31/2021

12/31/2020

Total

Total

Foreign Exchange Portfolio

56,766,859 

84,875,959 

Trading and Intermediation of Values

5,714,656 

3,993,631 

Debt Instruments Eligible to Compose Capital

14,621,611 

13,119,660 

Collected Taxes and Other

2,859,916 

97,453 

Third-Party Funds in Transit

1,724,043 

435,173 

Receipts and Payments Pending Settlement

4,748,327 

4,831,517 

Total

86,435,413 

107,353,393 

 

b)    Debt Instruments Eligible to Capital

The details of the balance of the item Debt Instruments Eligible to Capital referring to the issuance of equity instruments to compose Level I and Level II of the PR due to the Capital Optimization Plan, are as follows:

Bank/Consolidated

03/31/2021

12/31/2020

Debt Instruments Eligible to Compose Capital

Issuance

Maturity

Amount (Million)

Interest Rate (p.a.) (1)

Total

Total

Tier I (2)

November - 18

No Maturity (Perpetual)

$1.250 

7,25% 

7,326,718 

6,554,451 

Tier II (2)

November - 18

November - 28

$1.250 

6,13% 

7,294,893 

6,565,209 

Total

14,621,611 

13,119,660 

(1) Interest paid semi-annually, as of May 8, 2020.

(2) The issues were made through the Cayman Agency and there is no incidence of Income Tax at Source.

 

Notes 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 Banco Santander after the 5th (fifth) anniversary from the date of issue of the Notes, at the Bank's sole discretion or due to changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events.

 

17.   Other Payables – Other

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Provision Technical for Capitalization Operations

3,334,347 

3,178,674 

Payables for Credit Cards

29,471,822 

31,177,114 

29,617,851 

44,825,229 

Provision for Tax Risks and Legal Obligations (Note 22.b) (2)

4,199,596 

4,249,744 

6,654,465 

6,707,293 

Provision for Legal and Administrative Proceedings -
  Labor and Civil (Note 22.b) (2)

5,376,731 

5,921,882 

5,731,532 

6,342,280 

Provision for Financial Guarantees (Note 21.a)

328,801 

328,801 

255,179 

Employee Benefit Plans (Note 34)

3,935,648 

3,887,144 

3,978,455 

3,929,265 

Payables for Acquisition of Assets and Rights

30,506 

28,538 

30,506 

28,538 

Reserve for Legal and Administrative Proceedings - Responsibility of
   Former Controllers Stockholders (Note 22.i) (b)

496 

496 

496 

496 

Accrued Liabilities

Personnel Expenses

1,348,163 

1,718,919 

1,512,545 

1,990,309 

Administrative Expenses

223,817 

407,652 

317,075 

588,276 

Others Payments

46,007 

33,120 

312,744 

504,451 

Creditors for Unreleased Funds

2,170,752 

2,356,760 

2,170,752 

2,356,760 

Provision of Payment Services

591,832 

637,907 

591,832 

637,907 

Suppliers

655,491 

571,880 

1,101,662 

958,713 

Others (1)

6,940,276 

7,232,564 

13,239,567 

13,651,559 

Total

55,591.978 

59,725,759 

68,861,872 

87,544,024 

(1) Includes impacts of the exchange variation referring to Notes.

 

a) Provision for Financial Guarantees                                                                                                               

The classification of the guarantees operations for the constitution of provision is based on the estimate of the involved risk. It happens due to the quality evaluation process applied to the clients and operations, using statistical model based on quantitative and qualitative information or on specialized credit analyst, which allow them to be classified according their default probabilities, based on internal and market´s objective variables (bureaus), previously identified as predictive of default probability. After this evaluation, the operations are classified according to the provisioning ratings, having as reference the CMN Resolution nº 2,682/1999. Based on the results of this analysis, amounts related to operations’ coverage are registered as provision considering the type of the guarantee, according to the requirements of CMN Resolution nº 4,512/2016.

Bank/Consolidated

03/31/2021

12/31/2020

Type of Financial Guarantee

Balance Guarantees Provided

Provision

Balance Guarantees Provided

Provision

Linked to International Merchandise Trade

988,623 

493 

1,813,620 

4,121 

Linked to Bids, Auctions, Provision of Services or Execution of Works

6,135,069 

8,993 

5,602,994 

5,403 

Linked to the Supply of Goods

1,590,011 

2,192 

1,361,792 

1,846 

Linked to the Distribution of Securities by Public Offer

40,000 

Guarantee in Legal and Administrative Proceedings of Fiscal Nature

12,047,413 

243,491 

12,082,480 

175,443 

Other Guarantees

2,788,931 

1,852 

335,281 

1,689 

Other Bank Guarantees

17,180,867 

35,322 

16,532,462 

33,055 

Other Financial Guarantees

5,412,313 

36,458 

5,047,032 

33,622 

Total

46,183,227 

328,801 

42,775,661 

255,179 

 

Changes in Allowances for Financial Guarantees

Bank/Consolidated

01/01 a 03/31/2021

01/01 a 03/31/2020

Balance at Beginning

255,179 

166,105 

Constitution (Note 27)

77,250 

5,043 

Reversal (1) (Note 27)

(3,628) 

(1,196) 

Balance at End

328,801 

169,952 

(1) Corresponds to the honored bond, change in rating and provision recorded in the allowance for doubtful accounts.

 

 

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

a) Contingent Assets                                                                                                                                             

At the Bank and the Consolidated, on March 31, 2021 and March 31, 2020, contingent assets were not accounted for.

.b) Balance Sheet of Provisions for Judicial and Administrative Proceedings and Legal Obligations by Nature

Bank

Consolidated

03/31/2021

12/31/2020

03/31/2021

12/31/2020

Reserve for Tax Contingencies and Legal Obligations (Note 17)

4,199,596 

4,249,744 

6,654,465 

6,707,293 

Accrual for Legal and Administrative Proceedings - Labor and Civil (Note 17)

5,376,731 

5,921,882 

5,731,532 

6,342,280 

Labor

2,533,135 

2,656,098 

2,725,094 

2,900,835 

Civil

2,843,596 

3,265,784 

3,006,438 

3,441,445 

Total

9,576,327 

10,171,626 

12,385,997 

13,049,573 

 

c) Change in Accrual for Judicial and Administrative Proceedings and Legal Obligations

Bank

01/01 a
03/31/2021

01/01 a
03/31/2020

Tax

Labor

Civil

Tax

Labor

Civil

Balance at Beginning

4,249,744 

2,656,098 

3,265,784 

4,346,769 

3,216,008 

2,963,877 

Recognition Net of Reversal (1)

20,081 

331,420 

128,943 

(8,703) 

254,734 

63,998 

Inflation Adjustment

19,202 

20,597 

92,480 

31,654 

19,731 

70,116 

Write-offs Due to Payment

(89,431)

(474,981)

(643,611)

(13,264) 

(218,121) 

(120,858) 

Balance at End

4,199,596 

2,533,135 

2,843,596 

4,356,456 

3,272,352 

2,977,133 

Escrow Deposits - Other Receivables

1,297,291 

710,788 

684,330 

1,593,185 

1,128,455 

629,191 

Escrow Deposits - Securities

4,559 

3,210 

831 

8,353 

20,126 

19,294 

Total Escrow Deposits (2)

1,301,850 

713,998 

685,161 

1,601,538 

1,148,581 

648,485 

Consolidated

01/01 a
03/31/2021

01/01 a
03/31/2020

Tax

Labor

Civil

Tax

Labor

Civil

Balance at Beginning

6,707,293 

2,900,835 

3,441,445 

6,630,722 

3,517,431 

3,222,557 

Recognition Net of Reversal (1)

20,721 

342,381 

157,176 

(16,351) 

260,399 

108,588 

Inflation Adjustment

26,677 

22,817 

93,527 

45,801 

23,250 

71,588 

Write-offs Due to Payment

(100,226)

(540,939)

(685,710)

(15,199) 

(236,750) 

(172,960) 

Balance at End

6,654,465 

2,725,094 

3,006,438 

6,644,973 

3,564,330 

3,229,773 

Escrow Deposits - Other Receivables

2,575,020 

761,798 

696,738 

2,570,172 

1,225,299 

635,914 

Escrow Deposits - Securities

5,476 

3,210 

831 

9,252 

20,126 

19,294 

Total Escrow Deposits (2)

2,580,496 

765,008 

697,569 

2,579,424 

1,245,425 

655,208 

(1) Tax risks include the constitution of provisions for taxes related to judicial and administrative proceedings and legal obligations, recorded in tax expenses, other operating income and other operating expenses and income tax and social contribution.

(2) Refer to the amounts of deposits in guarantees, limited to the amount of the provision and do not include deposits in guarantee related to possible and / or remote contingencies and appeal deposits.

 

d) Provisions for Contingent Civil, Labor, Tax and Social Security

Banco Santander and its subsidiaries are parties to tax and social security, labor and civil lawsuits and administrative proceedings arising from the normal course of their activities.

Provisions were set up based on the nature, complexity and history of the actions and the loss assessment of the companies' shares based on the opinions of internal and external legal advisors. Banco Santander has a policy of fully provisioning the value at risk of the shares whose assessment is of probable loss. Legal obligations of a fiscal and social security nature have their amounts fully recognized in the financial statements.

Management understands that the provisions set up are sufficient to meet legal obligations and eventual losses arising from legal and administrative proceedings as follows:

e) Lawsuits and Administrative Proceedings related to Tax and Social Security                                          

Main lawsuits and administrative proceedings related to legal obligations, tax and social security

PIS and Cofins - R$ 1,938,738 in the Bank and R$ 4,018,073 in the Consolidated (12/31/2020 - R$ 1,934,120 in the Bank and R$ 4,008,137 in the Consolidated): Banco Santander and its subsidiaries filed lawsuits seeking remove the application of Law No. 9,718 / 1998, which changed the calculation basis of PIS and Cofins so that they were levied on all revenues of legal entities and not only those resulting from the provision of services and sale of goods. In relation to the Banco Santander case, on April 23, 2015, a decision by the Supreme Federal Court (STF) was published admitting the Extraordinary Appeal filed by the Federal Government regarding the PIS and denying the follow-up to the Extraordinary Appeal of the Federal Public Ministry regarding Cofins. Both appealed this decision, without any success, so that the claim related to Cofins is defined, prevailing the judgment of the Federal Regional Court of the 4th Region of August 2007, in favor of Banco Santander. Pending Banco Santander 's PIS, as well as the PIS and Cofins of other controlled companies, are still pending a final judgment.

Increase in the CSLL rate - R$ 114,751 in the Consolidated (12/31/2020 - R$ 114,449 in the Consolidated): Banco Santander and the subsidiaries filed lawsuits seeking to remove the increase in the CSLL rate imposed by MP 413/2008, converted in Law nº 11.727 / 2008. Financial institutions were previously subject to the 9% rate for CSLL, however, the new legislation established the rate of 15%, as of April 2008. In 2018, given the success rating and the unfavorable scenario in the Courts, we opted for the payment of the amounts discussed, except for the company Companhia de Crédito, Financiamento e Investimento Renault do Brasil (RCI), which remains pending judgment.

Main legal and administrative proceedings with a probable loss risk

Banco Santander and its subsidiaries are parties to legal and administrative proceedings related to tax and social security disputes, which are classified based on the opinion of the legal advisors, as a probable loss risk.

Provisional Contribution on Financial Transactions (CPMF) in Customer Operations - R$ 927,420 (12/31/2020 - R$ 924,457) at the Bank and Consolidated: in May 2003, the Federal Revenue Service of Brazil issued an infraction notice at Santander Distribuidora de Titulos e Valores Mobiliários Ltda. (Santander DTVM) and another auto at Banco Santander (Brasil) SA The object of the case was the collection of CPMF on operations carried out by Santander DTVM in the management of its customers' funds and clearing services provided by the Bank to Santander DTVM, which occurred during 2000, 2001 and 2002. The administrative process ended unfavorably for both companies. On July 3, 2015, Banco and Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A. and Santander DTVM) filed a lawsuit seeking to cancel both tax debts. Said action was ruled groundless, which gave rise to the lodging of an Appeal. On December 8, 2020, the appeal was heard, maintaining the first degree sentence. Against this decision, a motion for clarification was filed. Based on the opinion of the legal advisors, a provision was set up to cover the loss considered probable in the lawsuit.

National Social Security Institute (INSS) - R$ 50,601 in the Bank and R$ 50,607 in the Consolidated (12/31/2020 - R$ 51,402 in the Bank and R$ 51,409 in the Consolidated): Banco Santander and the subsidiaries discuss the collection of administrative and judicial disputes social security contribution and education allowance on various amounts that, according to the opinion of legal advisors, do not have a salary nature.

Services Tax (ISS) - Financial Institutions - R$ 249,063 in the Bank and R$ 273,862 in the Consolidated (12/31/2020 - R$ 239,370 in the Bank and R$ 263,183 in the Consolidated): Banco Santander and the subsidiaries discuss the requirement administratively and judicially , by several municipalities, the payment of ISS on various revenues arising from operations that usually do not qualify as service provision. In addition, other actions involving ISS, classified as possible loss risk, are described in note 20.h.

f) Judicial and Administrative Proceedings of a Labor Nature

These are actions brought by the Unions, Associations, the Public Ministry of Labor and former employees claiming labor rights that they understand due, in particular the payment of “overtime” and other labor rights, including processes related to retirement benefits.

For actions considered common and similar in nature, the provisions are recorded based on the historical average of the closed cases. Provisions for actions that do not fit the previous criterion are provisioned according to the individual assessment carried out, and the provisions are constituted based on the probable risk of loss, in law and in the jurisprudence in accordance with the assessment of loss made by the legal advisors.

Former Banespa employees. Action distributed in 1998 by the Banespa Retirees Association (AFABESP) requiring the payment of a semiannual bonus provided for in the Banespa regulations for approximately 8,400 ex-employees (retirees), according to which the payment will be made in the event that the Bank makes a profit and the distribution of this profit is approved by the board of directors. The bonus was not paid in 1994 and 1995 because the Banespa bank did not make a profit during these years. Partial payments were made between 1996 and 2000 as approved by the board of directors. The aforementioned clause was excluded from the regulation in 2001. The Regional Labor Court and the Superior Labor Court ordered Santander Brasil, as successor to Banespa, to pay the semiannual bonus for the 1996 period. The decision of the Federal Supreme Court (Supreme Federal Court, or “STF”) rejected the extraordinary appeal filed by Banco Santander. We have filed a rescissory action to reverse the decision in the main proceedings and suspend the procedural execution. The rescission action was dismissed in 2020 and an Extraordinary Appeal was filed with the STF, pending admissibility. Our legal advisors have classified the risk of loss as probable. The current court decision does not define a specific amount to be paid by those replaced, and the amounts must be determined in the regular settlement of the sentence.

As of March 31, 2021, the case is classified as a probable loss and the provision was recorded based on the estimated loss.

g) Judicial and Administrative Proceedings of a Civil Nature

These provisions are generally due to: (1) actions with a request for review of contractual terms and conditions or requests for monetary adjustments, including supposed effects of the implementation of various government economic plans, (2) actions resulting from financing contracts, (3) enforcement actions; and (4) claims for damages. For civil lawsuits considered common and similar in nature, the provisions are recorded based on the historical average of the closed cases. Provisions for actions that do not fit the previous criterion are provisioned according to the individual assessment carried out, and the provisions are constituted based on the probable risk of loss, in law and in the jurisprudence in accordance with the assessment of loss made by the legal advisors.

The main lawsuits classified as probable loss risk are described below:

Indemnity Actions - Refers to indemnity for material and / or moral damage, related to the consumption relationship, mainly dealing with issues related to credit cards, direct consumer credit, current accounts, collection and loans and other matters. In cases related to causes considered similar and usual for the business, in the normal course of the Bank's activities, the provision is constituted based on the historical average of the closed cases. Provisions for actions that do not fit the previous criterion are provisioned according to the individual assessment carried out, and the provisions are constituted based on the probable risk of loss, in law and in the jurisprudence in accordance with the assessment of loss made by the legal advisors.

Economic Plans - Refers to judicial discussions, which claim alleged inflationary purges resulting from Economic Plans (Bresser, Verão, Collor I and II), as they understand that such plans violated acquired rights related to the application of inflation indexes supposedly due to Savings Accounts , Judicial Deposits and Time Deposits (CDBs). The lawsuits are provisioned based on the individualized assessment of loss made by the legal advisors.

Banco Santander is also a party to public civil actions on the same matter, filed by consumer protection entities, the Public Prosecutor's Office or the Public Defender's Office. The provision is set up only for cases with probable risk, based on requests for individual executions. The issue is still under analysis in the STF. There is jurisprudence in the STF in favor of banks regarding an economic phenomenon similar to that of savings, as in the case of the correction of time deposits (CDBs) and the corrections applied to contracts (tablita).

However, the STF's jurisprudence has not yet been consolidated on the constitutionality of the rules that changed Brazil's monetary standard. On April 14, 2010, the Supreme Court of Justice (STJ) decided that the deadline for filing public civil actions that discuss the purges is 5 years from the date of the plans, but this decision has not yet been decided. Thus, with this decision, most of the actions, as they were proposed after the 5-year period, will probably be dismissed, reducing the amounts involved. The STJ also decided that the term for individual savers to qualify for Public Civil Actions is also 5 years, counted from the final and unappealable sentence of the respective sentence. Banco Santander believes in the success of the arguments defended before these courts for their content and foundation.

At the end of 2017, the Federal Attorney's Office (AGU), Bacen, the Consumer Protection Institute (Idec), the Brazilian Savers Front (Febrapo) and the Brazilian Federation of Banks (Febraban) signed an agreement that seeks to close the legal disputes over the Economic Plans.

The discussions focused on defining the amount that would be paid to each author, according to the balance in the booklet on the date of the plan. The total amount of payments will depend on the number of members, and also on the number of savers who have proven in court the existence of the account and the balance on the anniversary date of the change in the indexes. The agreement term negotiated between the parties was approved by the STF.

In a decision issued by the STF, there was a national suspension of all cases that deal with the issue for the duration of the agreement, except for cases in final compliance with the sentence.

On March 11, 2020, the agreement was extended by means of an addendum, with the inclusion of actions that involve only the discussion of the Collor I Plan. Such extension has a term of 5 years and the approval of the terms of the addendum occurred on the 3rd June 2020.

Management considers that the provisions set up are sufficient to cover the risks involved with the economic plans, considering the approved agreement.

h) Tax and Social Security, Labor and Civil Contingent Liabilities Classified as Possible Loss Risk

Tax and social security, labor and civil lawsuits and administrative proceedings are classified, based on the opinion of legal advisors, as a possible loss risk, and are therefore not provisioned.

Tax lawsuits with a possible loss classification totaled R $ 27,398 million in the Consolidated, the main processes being the following:

INSS on Profit Sharing or Results (PLR) - the Bank and its subsidiaries have legal and administrative proceedings arising from questions from tax authorities, regarding the collection of social security contributions on payments made as profit sharing. As of March 31, 2021, the amount was approximately R $ 6,132 million.

Services Tax (ISS) - Financial Institutions - Banco Santander and its subsidiaries discuss the requirement, by several municipalities, for the payment, by several municipalities, of the payment of ISS on various revenues resulting from operations that are not usually classified as service provision. As of March 31, 2021, the amount was approximately R $ 3,720 million.

Unapproved Compensation - the Bank and its affiliates discuss administrative and judicial proceedings with the Federal Revenue Service regarding the non-approval of tax compensations with credits resulting from overpayment or overpayment. As of March 31, 2021, the amount was approximately R $ 5,270 million.

Amortization of Banco Real's Goodwill -the Federal Revenue Service issued a tax assessment notice against the Bank to demand the payment of IRPJ and CSLL, including late payment charges, referring to the base period of 2009. The Tax Authorities considered that the goodwill related to the acquisition of Banco Real, amortized in the accounts before its incorporation, could not be deducted by Banco Santander for tax purposes. The infraction notice was duly challenged and we are currently awaiting judgment by CARF. As of March 31, 2021, the amount was approximately R $ 1,443 million.

Losses on Credit Operations - the Bank and its subsidiaries contested the tax entries issued by the Federal Revenue of Brazil alleging the improper deduction of losses on credit operations from the calculation bases of the IRPJ and CSLL for allegedly not meeting the requirements of applicable laws. As of March 31, 2021, the amount was approximately R $ 1,467 million.

Use of CSLL Tax Loss and Negative Base -Tax assessment notices drawn up by the Brazilian Federal Revenue in 2009 for alleged undue compensation of CSLL tax loss and negative basis, as a consequence of tax assessments recorded in previous periods. Judgment is awaited at the administrative level. As of March 31, 2021, the amount was approximately R $ 1,074 million.

Amortization of Banco Sudameris' Goodwill - tax authorities drafted tax assessment notices to demand IRPJ and CSLL payments, including late payment charges, related to the tax deduction for the amortization of goodwill paid on the acquisition of Banco Sudameris, referring to the base period of 2007 to 2012. Banco Santander presented the respective administrative defenses, which were judged unfavorably. Currently, the lawsuits are awaiting judgment at CARF. As of March 31, 2021, the amount was approximately R $ 647 million.

IRPJ and CSLL - Capital Gain - the Brazilian Federal Revenue Service issued a tax assessment notice against Santander Seguros (legal successor to ABN AMRO Brasil Dois Participações SA (AAB Dois Par) charging income tax and social contribution related to the fiscal year 2005. The Federal Revenue of Brazil claims that the capital gain on the sale of the shares of Real Seguros SA and Real Vida e Previdência SA by AAB Dois Par should be taxed at a rate of 34.0% instead of 15.0 The entry was challenged administratively based on the understanding that the tax treatment adopted in the transaction was in compliance with current tax legislation and the capital gain was duly taxed. The administrative proceeding closed unfavorably to the Company. In July 2020, the Company filed a lawsuit seeking to cancel the debt, the lawsuit is awaiting judgment. Banco Santander is responsible for any adverse outcome in this process as a former controller of Zurich Santander Brasil Seguros e Previdência S.A. On March 31, 2021, the amount was approximately R $ 489 million.

Labor claims with a possible loss classification totaled R $ 224 million in the Consolidated, excluding the process below:

Adjustment of Banesprev's Retirement Supplements by IGPDI - action filed in 2002 in the Federal Court by the Association of Retired Employees of the Bank of the State of São Paulo requesting the adjustment of the retirement supplement by the IGPDI for Banespa retirees who have been admitted until May 22 of 1975. The sentence granted the correction, but only in the periods when no other form of adjustment was applied. The Bank and Banesprev appealed this decision and the Appeals are still pending judgment. In Provisional Execution, calculations were presented by the Bank and Banesprev due to the exclusion of participants who, among other reasons, are listed as authors in other actions or have already had some type of adjustment. The amount involved is not disclosed due to the current procedural phase of the case and the potential to affect the progress of the lawsuit.

Liabilities related to civil lawsuits with a risk of possible loss totaled R $ 1,706 million in Consolidated, with the following main processes:

Indemnity Action from Banco Bandepe - related to the loan agreement under appeal by the Superior Court of Justice (STJ).

Indemnity Action Regarding Custody Services - provided by Banco Santander in its initial phase and without a judgment being rendered.

Action arising from Contractual Dispute - in the acquisition of Banco Geral do Comércio S.A. under appeal by the São Paulo State Court of Justice (TJSP).

i) Other Ex-Controllers Liability Lawsuits

Refer to tax, labor and civil lawsuits, in the amounts of R$ 0, R$ 0 and R$ 496 (12/31/2020 – R$ 0, R$ 0 and R$ 496) in the Bank and Consolidated, respectively, recorded in other payables (Note 17) under the responsibility of the former controlling shareholders of banks and acquired companies. Based on the contracts signed, these actions are guaranteed full reimbursement by the ex-controlling shareholders, whose respective rights were accounted for in other assets (Note 11).

19.   Stockholders’ Equity

a) Capital                                                                                                                                                                          

According to the Bylaws, Banco Santander 's share capital may be increased up to the limit of authorized capital, regardless of statutory reform, by resolution of the Board of Directors and through the issuance of up to 9,090,909,090 (nine billion, ninety million, nine hundred and nine thousand and ninety) shares, observing the legal limits established regarding the number of preferred shares. Any capital increase that exceeds this limit will require the approval of the shareholders.

At the Extraordinary Shareholders' Meeting held on March 31, 2021, it was approved in the context of the partial spin-off of Santander Brasil, which resulted in the segregation of the shares of its ownership issued by Getnet Adquirência e Serviços para Meios de Payment SA (“Getnet”), with version of the spun-off portion to Getnet, the reduction of Santander Brasil's share capital in the total amount of two billion reais, without the cancellation of shares, from Santander Brasil's share capital from fifty-seven billion reais to fifty-five billion reais.

The share capital, which is fully subscribed and paid in, is divided into registered and book-entry shares, with no par value.

Thousands of Shares

03/31/2021

12/31/2020

Common

Preferred

Total

Common

Preferred

Total

Brazilian Residents

106,476 

132,058 

238,534 

109,885 

135,438 

245,323 

Foreign Residents

3,712,219 

3,547,778 

7,259,997 

3,708,810 

3,544,398 

7,253,208 

Total

3,818,695 

3,679,836 

7,498,531 

3,818,695 

3,679,836 

7,498,531 

(-) Treasury Shares

(15,821) 

(15,821) 

(31,642) 

(18,829) 

(18,829) 

(37,658) 

Total Outstanding

3,802,874 

3,664,015 

7,466,889 

3,799,866 

3,661,007 

7,460,873 

 

b) Dividends and Interest on Capital                                                                                                                        

Statutory, shareholders are assured minimum dividends of 25% of net income for each year, adjusted in accordance with the legislation. Preferred shares are not entitled to vote and cannot be converted into common shares, but have the same rights and advantages granted to common shares, in addition to priority in the distribution of dividends and an additional 10% on dividends paid to common shares, and capital reimbursement, without premium, in case of dissolution of the Bank.

Dividends were calculated and paid in accordance with the Brazilian Corporation Law.

Before the Annual Shareholders' Meeting, the Board of Directors may resolve on the declaration and payment of dividends on earned profits, based on: (i) balance sheets or profit reserves existing in the last balance sheet or (ii) balance sheets issued in periods of less than six months, provided that the total dividends paid in each semester of the fiscal year does not exceed the amount of capital reserves. These dividends are fully charged to the mandatory dividend.

CMN Resolution No. 4,885, of December 23, 2020, prohibits the institutions authorized to operate by the Central Bank of Brazil to remunerate their own capital above the highest of: i) 30% of the adjusted net profit under the terms of item I of article 20 of Law No. 6,404 / 76; or ii) minimum mandatory dividends established by article 202 of Law No. 6,404 / 76, including in the form of Interest on Equity, until December 31, 2020. The standard also prohibits the reduction of capital, except in specific situations, and the increase in the remuneration of its officers, administrators and members of the Board of Directors and the Fiscal Council.

Below, we present the distribution of dividends and Interest on Equity made on March 31, 2021 and December 31, 2020.

12/31/2020

In Thousands

Brazilian Real per Thousand Shares/Units

of Brazilian Real

Gross

Net

Common

Preferred

Unit

Common

Preferred

Unit

Interest on Capital (1)(5)

890,000 

113.7129 

125.0842 

238.7972 

96.6560 

106.3216 

202.9776 

Interest on Capital (2)(5)

770,000 

98.3793 

108.2172 

206.5965 

83.6224 

91.9846 

175.6070 

Interest on Capital (3)(5)

1,000,000 

127.7636 

140.5400 

268.3036 

108.5991 

119.4590 

228.0580 

Interest on Capital (4)(5)

665,000 

84.9626 

93.4589 

178.4214 

72.2182 

79.4400 

151.6582 

Dividends (6)(5)

 

512,087 

 

65,4257 

 

71,9683 

 

137,3940 

 

65,4257 

 

71,9683 

 

137,3940 

Total

3,837,087 

(1) Deliberated by the Board of Directors on April 27, 2020, paid on June 24, 2020, without any remuneration as restatement.

(2) Deliberated by the Board of Directors on July 28, 2020, paid on September 25, 2020, without any remuneration monetary restatement.

(3) Deliberated by the Board of Directors on October 26, 2020, paid on December 23, 2020, without any remuneration to monetary restatement security.

(4) Deliberated by the Board of Directors on December 28, 2020, paid as of February 1, 2021, without any remuneration as monetary restatement.

(5) They were fully imputed to the minimum mandatory dividends to be distributed by the Bank for the fiscal year 2020.

(6) Deliberated by the Board of Directors on February 2, 2021, paid on March 3, 2021, without any monetary restatement.

 

c) Reserves                                                                                                                                                              

Net income, after deductions and statutory provisions, will be allocated as follows:                           

Legal Reserve                                                                                                                                                                 

According to Brazilian corporate law, 5% to the legal reserve, until it reaches 20% of the share capital. This reserve is intended to ensure the integrity of capital and can only be used to offset losses or increase capital. 

 

 

Capital Reserve                                                                                                                                               

The Bank´s capital reserve consists of: goodwill reserve for subscription of shares and other capital reserves, and can only be used to absorb losses that exceed retained earnings and profit reserves; redemption, reimbursement or acquisition of shares for the Bank´s own issue; capital increase; or payment of dividends to preferred shares under certain circumstances.

Reserve for Equalization Dividend                                              

After the allocation of dividends, the remaining balance if any, may, upon proposal of the Executive Board and approved by the Board of Directors, be allocated to reserve for equalization of dividends, which will be limited to 50% of the share capital. This reserve aims to ensure funds for the payment of dividends, including as interest on own capital, or any interim payment to maintain the flow of stockholders remuneration.              

d) Treasury Shares                                                                                                                                                         

At a meeting held on February 2, 2021, the Board of Directors approved, in continuity with the repurchase program that expired on November 4, 2020, a new repurchase program for Units and ADRs issued by Banco Santander, either directly or on its own. Cayman branch, for maintenance in treasury or for subsequent sale.

The Buyback Program covers the acquisition of up to 36,956,402 Units, representing 36,956,402 common shares and 36,956,402 preferred shares, which, on December 31, 2020, corresponded to approximately 1% of the Bank's share capital. As of December 31, 2020, Banco Santander had 355,661,814 common shares and 383,466,228 preferred shares outstanding.

The repurchase aims to (1) maximize the generation of value for shareholders through an efficient management of the capital structure; and (2) enable the payment of administrators, managerial employees and other employees of the Bank and of companies under its control, under the terms of the Long-Term Incentive Plans. The term of the Buyback Program is up to 18 months from February 3, 2021, ending on August 2, 2022.

 

Bank/Consolidated

Shares in Thousands

03/31/2021

12/31/2020

Quantity

Quantity

Units

Units

Treasury Shares at Beginning of the Period

18,829 

16,702 

Shares Acquisitions

5,052 

Payment - Share-Based Compensation

(3,014) 

(2,925) 

Treasury Shares at Beginning of the Period

15,821 

18,829 

Subtotal - Treasury Shares in Thousands of Reais

707,999 

$789,587 

Issuance Cost in Thousands of Reais

1,771 

$1,771 

Balance of Treasury Shares in Thousands of Reais

709,770 

$791,358 

Cost/Share Price

Units

Units

Minimum Cost (*)

7.55 

$7.55 

Weighted Average Cost (*)

33.78 

$33.24 

Maximum Cost (*)

49.55 

$49.55 

Share Price

39.60 

$44.83 

(*) Considering since the beginning of operations on the stock exchange.

e) Minority Interest

Stockholders’ Equity

Non Controlling Interest

03/31/2021

12/31/2020

01/01 a
03/31/2021

01/01 a 03/31/2020

Banco RCI Brasil S.A.

906,834 

844,805 

16,486 

(34,436) 

Banco Hyundai Capital Brasil S.A.

167,233 

162,010 

5,222 

(4,803) 

Banco PSA 

140,484 

136,806 

3,678 

(3,658) 

Rojo Entretenimento S.A.

7,002 

7,087 

(84) 

(20) 

Santander Leasing

(4) 

GIRA

2,097 

(44) 

Total

1,223,650 

1,150,708 

25,258 

(42,921)

20.   Related Parties

a) Key Management Personnel Compensation

The Bank's Board of Directors' Meeting held on March 26, 2021 approved, in accordance with the favorable recommendation of the Compensation Committee, the proposal for the maximum global compensation for the Directors (Board of Directors and Executive Board) for the year of 2021, in the amount up to R$ 433,940 (four hundred and thirty-three million, nine hundred and forty thousand reais), including fixed, variable and share-based compensation and other benefits. The proposal was the subject of a resolution at the Annual General Meeting (AGM) to be held on April 30, 2021.

a.1) Long Term Benefits

The Bank, as well as Banco Santander Espanha, as well as other subsidiaries in the Santander Group world, has long-term compensation programs linked to the performance of the market price of its shares, based on the achievement of goals.

a.2) Short Term Benefits

The following table shows the salaries and fees of the Board of Directors and Executive Board and refers to the amount recognized as an expense in the quarters ended on March 31, 2021 and 2020, by Banco Santander and its subsidiaries to their Directors for the positions they occupy at Banco Santander and other companies of the Santander Conglomerate.

The amounts related to the Variable and Share-Based Compensation will be paid in the subsequent periods.

01/01 to
03/31/2021

01/01 to
03/31/2020

Fixed Compensation

22,498 

22,021 

Variable Compensation - in cash

44,062 

44,532 

Variable Compensation - in shares

45,338 

35,607 

Others

12,460 

11,594 

Total Short-Term Benefits

124,359 

113,754 

Variable Compensation - in cash

62,310 

64,916 

Variable Compensation - in shares

64,488 

46,597 

Total Long-Term Benefits

126,799 

111,513 

Total

251,158 

225,267 

Additionally, in the first quarter of 2021, charges on Management's remuneration were paid in the amount of R$ 7,932 (2020 - R$ 29,162).

b) Contract Termination                                                                                                                               

The termination of the employment relationship of managers for non-fulfillment of obligations or voluntarily by the employee does not give right to any financial compensation and its benefits will be discontinued.

c) Lending Operations                                                                                                                                                   

The Bank and its subsidiaries may carry out transactions with related parties, in line with the legislation in force as set forth in articles 6 and 7 of CMN Resolution nº 4,693/18, article 34 of Law 6,404/76 "Law of Corporations" and the Policy for Transactions with Related Parties of Santander published on the Investor Relations website, being considered related parties:

(1)            its controllers, natural or legal persons, under the terms of art. 116 of the Law of Corporations;

(2)            its directors and members of statutory or contractual bodies;

(3)            in relation to the persons mentioned in items (i) and (ii), their spouse, companion and relatives, consanguineous or the like, up to the second degree;

(4)            natural persons with qualified equity interest in their capital;

(5)            corporate entities with qualified equity interest in their capital;

(6)            legal entities in whose capital, directly or indirectly, a Santander Financial Institution has a qualified shareholding;

(7)            legal entities in which a Santander Financial Institution has effective operational control or preponderance in the deliberations, regardless of the equity interest; and

(8)            legal entities that have a director or member of the Board of Directors in common with a Santander Financial Institution.

d) Ownership Interest                                                                                                                                                  

The table below shows the direct interest (common and preferred shares):

Shares in Thousands

03/31/2021

Stockholders

Common Shares

Common Shares (%)

Preferred Shares

Preferred Shares (%)

Total Shares

Total Shares (%)

Sterrebeeck B.V. (1)

1,809,583 

47.4% 

1,733,644 

47.1% 

3,543,227 

47.3% 

Grupo Empresarial Santander, S.L. (GES) (1)

1,627,891 

42.6% 

1,539,863 

41.8% 

3,167,755 

42.2% 

Banco Santander, S.A. (1)

2,696 

0.1% 

0.0% 

2,696 

0.0% 

Directors (*)

5,058 

0.1% 

5,058 

0.1% 

10,116 

0.1% 

Others

357,645 

9.4% 

385,450 

10.5% 

743,095 

9.9% 

Total Outstanding

3,802,874 

99.6% 

3,664,015 

99.6% 

7,466,889 

99.6% 

Treasury Shares

15,821 

0.4% 

15,821 

0.4% 

31,642 

0.4% 

Total

3,818,695 

100.0% 

3,679,836 

100.0% 

7,498,531 

100.0% 

Free Float (2)

357,645 

9.4% 

385,450 

10.5% 

743,095 

9.9% 

 

 

Shares in Thousands

12/31/2020

Stockholders

Common Shares

Common Shares (%)

Preferred Shares

Preferred Shares (%)

Total Shares

Total Shares (%)

Sterrebeeck B.V. (1)

1,809,583 

47.4% 

1,733,644 

47.1% 

3,543,227 

47.3% 

GES (1)

1,627,891 

42.6% 

1,539,863 

41.8% 

3,167,755 

42.2% 

Banco Santander, S.A. (1)

2,696 

0.07% 

0.0% 

2,696 

0.0% 

Directors (*)

4,034 

0.11% 

4,034 

0.11% 

8,067 

0.1% 

Others

355,662 

9.3% 

383,466 

10.4% 

739,128 

9.8% 

Total Outstanding

3,799,866 

99.5% 

3,661,007 

99.5% 

7,460,873 

99.5% 

Treasury Shares

18,829 

0.5% 

18,829 

0.5% 

37,658 

0.5% 

Total

3,818,695 

100.0% 

3,679,836 

100.0% 

7,498,531 

100.0% 

Free Float (2)

355,662 

9.3% 

383,466 

10.4% 

739,128 

9.9% 

(1)  Companies of the Santander Spain Group.

(2)  Composed of Officials and Others.

(*)    None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares.


e) Related Party Transactions

Santander has a Policy for Transactions with Related Parties approved by the Board of Directors, which aims to ensure that all transactions included in the policy are carried out in view of the interests of Banco Santander and its shareholders. The policy defines powers to approve certain transactions by the Board of Directors. The envisaged rules are also applied to all employees and managers of Banco Santander and its subsidiaries.

The operations and remuneration of services with related parties are carried out in the normal course of business and under conditions of exchange, including interest rates, terms and guarantees, and do not involvee risks greater than the normal collection or have other disadvantages.

Bank

Consolidated

Assets

Income

Assets

Income

Assets

Income

Assets

Income

(Liabilities)

(Expenses)

(Liabilities)

(Expenses)

(Liabilities)

(Expenses)

(Liabilities)

(Expenses)

03/31/2021

01/01 to
03/31/2021


12/31/2020

01/01 to
03/31/2020

 

03/31/2021

01/01 to
03/31/2021


12/31/2020

01/01 to 03/31/2020

Cash

1,155,610 

12,913,526 

1,155,610 

12,896,899 

 - 

Banco Santander Espanha (2)

1,044,259 

2,475,959 

1,044,259 

2,459,332 

Santander Bank, National Association

10,315,450 

10,315,450 

Others

111,351 

122,117 

111,351 

122,117 

Interbank Investments

88,239,876 

785,057 

74,635,984 

1,098,801 

9,098,588 

704 

6,820 

Aymoré CFI (3)

47,053,912 

592,288 

45,970,236 

621,766 

Banco Santander Espanha (1)

9,098,588 

704 

6,793 

9,098,588 

704 

6,820 

Banco PSA

923,098 

12,931 

1,012,276 

Banco RCI Brasil S.A. (3)

3,407,813 

36,515 

3,565,452 

Bandepe(3)

24,548,894 

111,109 

21,429,296 

123,160 

Banco Olé Consignado

244,614 

Others

3,207,571 

31,510 

2,658,724 

102,468 

Securities

2,779,062 

17,315 

312,469 

3,810 

1,134,279 

15,806 

Santander Leasing (3)

313,978 

1,509 

312,469 

3,810 

Apolo Fundo de Investimento em Direitos Creditórios

1,134,279 

15,806 

1,134,279 

15,806 

Verbena FCVS - Fundo de Investimento em Direitos Creditórios

1,330,805 

Derivatives Financial Instruments - Net

(4,248,588)

48,050,471 

(2,584,973)

1,317,028 

(2,356,687)

48,009,711 

(1,103,558)

(1,215,857)

Real Fundo de Investimento Multimercado Santillana Crédito Privado
  (Fundo de Investimento Santillana) (5)

(15,177) 

(34,935) 

(130,038) 

(403,601) 

(15,177) 

(34,935) 

(130,038) 

(403,601) 

Banco Santander Espanha (2)

(2,341,510) 

48,044,547 

(978,700) 

(734,341) 

(2,341,510) 

48,044,547 

(973,520) 

(812,324) 

Santander FI Amazonas (3)
  (Nota 2)

304,313 

147,941 

162,513 

Santander FI Hedge Strategies (2)
  (Nota 2)

(1,623,481) 

471,157 

(1,052,385) 

860,220 

Santander Hermes Multi Créd Priv Infra Fundo de Invest

61,396 

(14,587) 

92,370 

Santander FI Diamantina (3)

(634,129) 

(563,751) 

(678,733) 

(1,242,149) 

Bandepe

2,795,394 

Key Management Personnel

99 

68 

99 

68 

Others

41,437 

Interfinancial Relations

19,261,713 

1,589 

17,447,264 

4,746 

19,258,969 

969 

 - 

Getnet S.A. (Nota 12) (3) (7)

19,258,969 

969 

17,444,497 

3,643 

19,258,969 

969 

Santander Leasing (3)

2,744 

620 

2,767 

1,103 

Loan Operations

302,262 

434 

1,149,718 

222 

302,392 

434 

98,522 

227 

Getnet S.A. (3)

200,098 

1,051,358 

200,098 

Gestora de Inteligência de Crédito

66,667 

66,667 

66,667 

66,667 

Loop Gestão de Pátios S.A.

11,441 

11,966 

11,441 

11,966 

Key Management Personnel

24,056 

434 

19,727 

222 

24,186 

434 

19,889 

227 

Dividends and Bonuses Receivables

210,244 

260,899 

113 

18,568 

 - 

Aymoré CFI(3)

176,537 

176,537 

Santander CCVM (3)

5,179 

5,179 

Bandepe (3)

863 

855 

Banco RCI Brasil S.A.(3)

1,887 

20,536 

Santander Brasil Tecnologia S.A. (3)

13,438 

13,438 

Santander Leasing (3)

3,507 

3,507 

Santander Corretora de Seguros (3)

5,459 

5,459 

Webmotors S.A(5)

18,455 

Getnet S.A.(3)

29,488 

Others

3,374 

5,900 

113 

113 

Trading Account

619,593 

426 

342,974 

3,794 

619,593 

426 

342,974 

60,368 

Banco Santander Espanha (2)

619,593 

426 

342,974 

3,794 

619,593 

426 

342,974 

60,368 

Foreign Exchange Portfolio - Net

9,871 

(116,205)

(353,445)

947,852 

9,871 

(116,205)

(353,455)

947,852 

Banco Santander Espanha (2)

9,871 

(116,260) 

(353,445) 

947,824 

9,871 

(116,260) 

(353,455) 

947,824 

Key Management Personnel

55 

28 

55 

28 

Income Receivable

964,363 

461,003 

892,761 

484,281 

964,363 

727,118 

915,137 

546,516 

Zurich Santander Brasil Seguros e Previdência S.A.(8)

882,655 

400,556 

835,680 

427,308 

882,655 

666,671 

858,056 

489,543 

Zurich Santander Brasil Seguros S.A.(8)

81,708 

60,447 

57,081 

56,973 

81,708 

60,447 

57,081 

56,973 

Receivables from Affiliates

21,603 

142,701 

20,353 

14,291 

5,416 

4,389 

13,681 

3,289 

Aymoré CFI (3)

85,823 

Bandepe

78 

Santander FI Diamantina (3)

1,888 

9,595 

1,604 

Santander Brasil Gestão de Recursos Ltda.(4)

169 

1,058 

169 

169 

1,058 

169 

3,385 

Super Pagamentos e Administração de Meios Eletrônicos S.A.

532 

Santander Brasil Tecnologia S.A. (3)

244 

Santander CCVM (3)

17,348 

Gesban Servicios Administrativos Globales, S.L.

23 

Santander Brasil Consórcio

558 

9,066 

419 

Santander Corretora de Seguros (3)

8,400 

Esfera Fidelidade S.A.

4,091 

770 

4,757 

770 

Banco Santander Espanha (2)

4,516 

4,516 

4,516 

4,516 

Santander Digital Assets, SL

8,105 

Santander FI Hedge Strategies (3) (Nota 2)

8,505 

1,710 

6,795 

1,354 

Getnet S.A. (3) (7)

414 

2,002 

632 

1,573 

414 

2,002 

Santander Securities Services Brasil DTVM S.A. (4)

974 

974 

Others

1,462 

5,711 

1,461 

10,516 

317 

355 

336 

(96) 

Non Operating Income

168,588 

168,588 

Super Pagamentos e Administração de Meios Eletrônicos S.A.

168,588 

168,588 

Other Receivables - Others

2,108,723 

29,690 

1,452,382 

102,269 

2,094,385 

119,452 

1,486,386 

22,392 

Gesban Servicios Administrativos Globales, S.L.

1,486,341 

8,006 

Banco Santander Espanha (2)

2,094,317 

1,444,376 

2,094,385 

(3) 

Santander Capitalização S.A. (3)

10,482 

17,326 

4,416 

89,771 

Banco Santander International (4)

11,496 

11,945 

11,496 

11,945 

Santander Securities Services Brasil DTVM S.A. (4)

375 

371 

375 

2,127 

Santander Brasil Gestão de Recursos Ltda.(4)

Key Management Personnel

71 

71 

71 

45 

104 

Others

3,924 

422 

3,590 

111 

107,510 

213 

Deposits

(24,799,367)

45,321 

(23,503,316)

(632,837)

(904,538)

(3,594)

(946,054)

(12,857)

Bandepe

(606,318) 

Santander Leasing (3)

(18,222) 

(293) 

(81,354) 

Banco Santander Espanha (2)

(13,087) 

(13,156) 

(13,087) 

(55,059) 

Aymoré CFI (3)

(428,391) 

(2,601) 

(190,480) 

Zurich Santander Brasil Seguros e Previdência S.A. (8)

(42,109) 

(64,836) 

(42,109) 

(64,836) 

Zurich Santander Brasil Seguros S.A. (8)

(19,738) 

(6,443) 

(19,738) 

(6,443) 

Santander Brasil Gestão de Recursos Ltda.(4)

(336) 

(2) 

(335) 

(2,032) 

(336) 

(2) 

(335) 

(2,032) 

Fundo de Investimento Santillana (4)

(91) 

(44) 

(1,470) 

(91) 

(44) 

(1,470) 

Santander Brasil Tecnologia S.A. (3)

(87) 

(780) 

Banco RCI Brasil S.A. (3)

(160,176) 

(1,343) 

(226,046) 

Santander Securities Services Brasil DTVM S.A. (4)

(594,136) 

(3,012) 

(581,543) 

(594,136) 

(3,012) 

(581,543) 

(5,549) 

Getnet S.A. (3)

(10,182) 

(242,291) 

(10,182) 

Santander FI Diamantina (3)

(22,992,097) 

54,299 

(21,416,222) 

Super Pagamentos e Administração de Meios Eletrônicos S.A.

(5,437) 

(36,390) 

(5,437) 

(36,390) 

Key Management Personnel

(52,478) 

(181) 

(36,705) 

(342) 

(52,478) 

(181) 

(36,762) 

(342) 

Others

(462,800) 

(1,546) 

(606,591) 

(22,675) 

(166,944) 

(399) 

(164,642) 

(3,464) 

Repurchase Commitments

(8,798,929)

(47,756)

(7,160,549)

(72,382)

(2,346,680)

(8,934)

(2,186,105)

(13,907)

Santander FI Amazonas(4)

(757,188) 

(2,852) 

(501,984) 

(1,063) 

Super Pagamentos e Administração de Meios Eletrônicos S.A.

(1,806) 

(1,806) 

Santander Leasing (3)

(210,880) 

(875) 

(151,438) 

(13,444) 

Santander CCVM (3)

(193,412) 

(925) 

(202,222) 

(1,082) 

Santander FI SBAC (3)

(2,863,019) 

(14,267) 

(2,797,429) 

(29,661) 

Santander FI Guarujá (3)

(346,134) 

(1,805) 

(472,220) 

(3,792) 

Santander FI Diamantina (3)

(349,999) 

(13,366) 

(460,034) 

(3,488) 

Santander FI Unix (3)

(25,805) 

21 

(25,457) 

(2,144) 

Fundo de Investimento Santillana (4)

(2,346,170) 

(8,915) 

(2,186,104) 

(2,346,170) 

(8,915) 

(2,186,104) 

(12,094) 

Pessoal Chave da Administração

(508) 

(1) 

(7) 

(508) 

(1) 

(7) 

Others

(1,705,814) 

(4,771) 

(363,661) 

(15,895) 

(2) 

(18) 

(1) 

Funds from Acceptance and Issuance of Securities

(121,808)

(1,097)

(117,368)

(1,014)

(121,808)

(1,097)

(117,368)

(1,014)

Key Management Personnel

(121,808) 

(1,097) 

(117,368) 

(1,014) 

(121,808) 

(1,097) 

(117,368) 

(1,014) 

Loan and Onlendings

(17,105,858)

(14,536)

(10,401,564)

(17,105,858)

(14,536)

(10,401,564)

Banco Santander Espanha (2)

(17,105,858) 

(14,536) 

(10,401,564) 

(17,105,858) 

(14,536) 

(10,401,564) 

Dividends and Bonuses in Paying

(508,491)

(508,491)

Banco Santander Espanha (2)

(195) 

(195) 

Sterrebeeck B.V. (2)

(268,406) 

(268,406) 

GES (2) (4)

(239,890) 

(239,890) 

Banco Madesant (4)

Key Management Personnel

Payables from Affiliates

(304,387)

(439,603)

(361,599)

(801,827)

(1,851,634)

(214,504)

(82,479)

(638,003)

Santander Brasil Tecnologia S.A. (3)

(4,353) 

(123,564) 

(4,353) 

(98,967) 

Banco Santander Espanha (2)

(55,949) 

(56,215) 

(202,787) 

(55,949) 

(56,215) 

(21) 

Santander Corretora de Seguros, Investimento e Serviços S.A

(39,915) 

Santander Corretora de Seguros (3)

(14,566) 

(40,145) 

(14,751) 

(558,362) 

(558,362) 

Getnet S.A. (3)

(19,019) 

(4,936) 

(17,573) 

(7,349) 

(19,019) 

(4,936) 

Santander Securities Services Brasil DTVM S.A. (4)

(9,061) 

(15,318) 

(9,373) 

(12,096) 

(9,061) 

(15,318) 

(9,373) 

(12,096) 

Santander Leasing (3)

(79,374) 

(79,374) 

Santander Tecnologia e Inovação Ltda

(31,533) 

Santander Brasil Asset Management DTVM S.A (4)

(95) 

(79) 

Zurich Santander Brasil Seguros e Previdência S.A. (8)

(40,550) 

Santander Global Technology, S.L., SOCI

(120,306) 

(117,245) 

(31,774) 

(59,752) 

(120,306) 

(117,245) 

(31,774) 

(59,928) 

Santander FI SBAC (3)

(1,627,254) 

(3,577) 

Others

(1,759) 

(50,647) 

(1,614) 

(25,386) 

(20,045) 

(17,213) 

(666) 

(7,538) 

Subordinated Debts

(14,621,611)

(1,606,853)

(13,119,660)

(3,251,601)

(14,621,611)

(1,606,853)

(13,119,660)

(3,251,601)

Banco Santander Espanha (2) (6)

(14,621,611) 

(1,606,853) 

(13,119,660) 

(3,251,601) 

(14,621,611) 

(1,606,853) 

(13,119,660) 

(3,251,601) 

Donations

(4,200)

 - 

(4,100)

(4,610)

(4,630)

Instituto Escola Brasil

Santander Cultural

Fundação Sudameris

(4,200) 

(4,100) 

(4,200) 

(4,100) 

Fundação Santander

(410) 

(530) 

Other Payables - Others

(5,957,388)

(465,762)

(6,210,051)

(557,283)

(5,972,646)

(427,232)

(672,658)

(339,605)

Banco Santander Espanha (2)

(1,837) 

TecBan (5)

(94,843) 

(94,843) 

Santander Brasil Tecnologia S.A. (3)

(52,235) 

(55,438) 

Aquanima Brasil Ltda.(4)

(7,692) 

(7,692) 

(7,316) 

Santander Securities Services Brasil DTVM S.A. (4)

(874) 

(1,069) 

(874) 

(1,069) 

Zurich Santander Brasil Seguros e Previdência S.A. (8)

(25,118) 

(17,713) 

(25,118) 

(38,135) 

(5,504) 

Getnet S.A. (3)

(5,713,826) 

(162,039) 

(5,576,635) 

(182,360) 

(5,713,826) 

(162,039) 

SANTANDER GLOBAL TECHNOLOGY, S.L., SOCI

(3,605) 

Key Management Personnel

(217,666) 

(239,005) 

(615,469) 

(208,881) 

(233,176) 

(253,768) 

(633,276) 

(225,267) 

Others

(778) 

(3,917) 

(234) 

(14,692) 

(526) 

(2,859) 

(1,247) 

(164) 

Guarantees and Limits (10)

11,076 

19 

11,038 

11 

11,076 

19 

11,038 

11 

Key Management Personnel (9)

11,076 

19 

11,038 

11 

11,076 

19 

11,038 

11 

(1) Refers to investments in foreign currency (overnight investments) with maturity on April 1, 2021 and interest of up to 0.09% p.a. maintained by Banco Santander Brasil and  Santander New York

(2) Controller - Banco Santander is indirectly controlled by Banco Santander Espanha (Notes 1 and 30.d), through the subsidiaries GES and Sterrebeeck B.V.

(3) Direct or indirect subsidiary by Banco Santander.

(4) Direct or indirect subsidiary by Banco Santander Espanha.

(5) Jointly-controlled company – Santander Corretora de Seguros

(6) Refers to the portion acquired by the Controller from the PR Optimization Plan carried out in the first half of 2018.

(7) Corresponds to receivables related to Acquiring.

(8) Significant influence of Banco Santander Espanha.

(9) It refers to the received collateral and credit limit in personal loans to key management personnel recorded in memorandum accounts.

 


21.   Income from Services Rendered and Banking Fees

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to 03/31/2020

 01/01 to 03/31/2021

 01/01 to

03/31/2020

Asset Management

189,918 

160,380 

331,594 

251,687 

Checking Account Services

959,372 

941,578 

959,979 

944,056 

Lending Operations and Income from Guarantees Provided

287,609 

265,986 

378,457 

363,258 

   Lending Operations

115,615 

124,101 

206,463 

221,373 

   Income Guarantees Provided

171,994 

141,885 

171,994 

141,885 

Insurance Fees

479,162 

571,331 

742,953 

749,233 

Cards (Debit and Credit) and Acquiring Services

1,031,396 

935,963 

1,489,410 

1,375,403 

Collection

374,350 

374,015 

372,320 

375,108 

Brokerage, Custody and Placement of Securities

296,600 

181,746 

368,566 

259,193 

Others

90,153 

51,276 

208,697 

164,346 

Total

3,708,560 

3,482,275 

4,851,976 

4,482,284 

 

22.   Personnel Expenses

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to

03/31/2020

 01/01 to 03/31/2021

 01/01 to

03/31/2020

Compensation

846,795 

936,951 

998,914 

1,058,247 

Charges

348,301 

354,650 

409,353 

414,263 

Benefits

293,713 

319,215 

343,489 

366,331 

Training

9,427 

14,848 

10,688 

16,019 

Others

140 

1,520 

15,084 

18,848 

Total

1,498,376 

1,627,184 

1,777,528 

1,873,708 

 

23.   Other Administrative Expenses

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to

03/31/2020

 01/01 to 03/31/2021

 01/01 to

03/31/2020

Depreciation and Amortization

1,620,587 

606,575 

1,728,502 

750,968 

Outsourced and Specialized Services

542,592 

429,549 

632,702 

575,619 

Communications

78,435 

89,666 

81,819 

96,070 

Data Processing

733,909 

659,269 

670,790 

666,593 

Advertising, Promotions and Publicity

88,156 

91,414 

114,373 

123,262 

Rentals

198,742 

203,979 

200,603 

208,950 

Transportation and Travel

18,625 

31,466 

23,505 

40,838 

Financial System Services

89,132 

74,443 

107,025 

92,705 

Security and Money Transport

141,348 

151,976 

141,969 

152,218 

Asset Maintenance and Upkeep

71,032 

62,651 

76,944 

69,434 

Water, Electricity and Gas

47,803 

54,653 

49,020 

55,914 

Materials

13,910 

13,252 

17,176 

15,688 

Others

173,291 

132,494 

203,692 

216,484 

Total

3,817,562 

2,601,387 

4,048,120 

3,064,743 

(1) Includes goodwill amortization on investment in Getnet, recognized in the income statement in March 2021, on the occasion of the spin-off of Banco Santander and version of the spun-off portion for Getnet (see note 13.c).

24.   Other Operating Income

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to

03/31/2020

 01/01 to 03/31/2021

 01/01 to

03/31/2020

Net Income Pension and Capitalization

133,309 

125,980 

Reversal of Operating Provisions - Fiscal (Note 22.c) (1)

8,703 

16,351 

Monetary Adjustment of Escrow Deposits

28,355 

107,623 

33,408 

121,787 

Recoverable Taxes

4,574 

84,692 

8,291 

94,754 

Recovery of Charges and Expenses

177,116 

213,659 

79,783 

161,492 

Monetary Variation

#REF!

#REF!

#REF!

#REF!

Others (2)

550,722 

1,002,472 

999,661 

1,361,732 

Total

760,766 

1,417,149 

1,254,452 

1,882,096 

 

 

 

25.   Other Operating Expenses

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to

03/31/2020

 01/01 to 03/31/2021

 01/01 to

03/31/2020

Operating Provisions

   Fiscal (Note 22.c)

20,081 

20,721 

   Labor (Note 22.c)

331,420 

254,734 

342,381 

260,399 

   Civil (Note 22.c)

128,943 

63,998 

157,176 

108,588 

Credit Cards (3)

956,773 

962,376 

864,165 

727,942 

Actuarial Losses - Pension Plan (Note 34.a)

55,957 

75,391 

55,614 

75,379 

Legal Fees and Costs

51,891 

21,079 

51,519 

21,357 

Serasa and SPC (Credit Reporting Agency)

27,765 

13,254 

29,908 

13,899 

Brokerage Fees

19,380 

21,013 

18,578 

21,073 

Commissions

267,823 

162,264 

570,484 

525,358 

Others (1)

742,081 

1,152,813 

1,463,873 

1,626,137 

Total

2,602,114 

2,726,922 

3,574,419 

3,380,132 

(1) In the quarter ended March 31, 2021 and 2020, it mainly includes monetary restatement on provisions for judicial and administrative proceedings and legal obligations, provisions for the benefit guarantee fund and other provisions.

26.   Non-Operating Income

Bank

Consolidated

 01/01 to

03/31/2021

 01/01 to 03/31/2020

 01/01 to 03/31/2021

 01/01 to 03/31/2020

Result on sale of Investments

168,588 

(5) 

168,588 

Result on Sale of Other Assets

17,990 

3,187 

14,775 

(285) 

Reversal (Recognition) of Allowance for Losses on Other Assets (1)

(18,445) 

8,518 

(13,295) 

12,111 

Expense on Assets Not in Use

(9,668) 

(12,158) 

(9,818) 

(12,235) 

Gains (Losses) of Capital

(1,179) 

(387) 

(1,245) 

(396) 

Other Income (Expenses)

36,333 

33,698 

38,773 

37,036 

Total

25,031 

201,446 

29,185 

204,819 

 

27.   Employee Benefit Plans - Post-Employment Benefits

a) Share-based compensation

Banco Santander has long-term compensation programs linked to the performance of the market price of its shares. The members of Banco Santander 's Executive Board are eligible for these plans, in addition to the participants who were determined by the Board of Directors, whose choice will take into account seniority in the group. The members of the Board of Directors only participate in these plans when they hold positions in the Executive Board.

Program

Liquidity Type

Vesting Period

Period of

Exercise/Settlement

Local

Santander Brasil Bank Shares

01/2019 to 12/2021
01/2020 to 12/2022
2019 to 2023

03/2022 and 03/2023
03/2023 and 03/2024
2022 and 2023

Global

Santander Spain Shares and Options

01/2020 to 12/2022

03/2023 and 03/2025

 

Program

Liquidity Type

Vesting Period

Period of

Exercise/Settlement

01/01 to
03/31/2021

01/01 to
03/31/2020

Local

Santander Brasil Bank Shares

01/2019 a 12/2021
01/2020 a 12/2022
2019 a 2023

03/2022 e 03/2023
03/2023 e 03/2024
2022 e 2023

R$ 4.916.667 (*)
R$ 9.440.000 (*)
841.446 SANB11

R$ 4.916.667 (*)
R$ 9.440.000 (*)
841.446 SANB11

Global

Santander Spain Shares and Options

01/2020 a 12/2022

03/2023 e 03/2025

 318.478 SAN
1.664.983 opções s/ SAN

 318.478 SAN
1.664.983 opções s/ SAN

Balance of Plans on March 31, 2021

R$ 14.356.667

841.446 SANB11
318.478 SAN
1.664.983 opções s/ SAN

R$ 14.356.667
841.446 SANB11
318.478 SAN
1.664.983 opções s/ SAN

 

Our long-term programs are divided into Local and Global plans, with specific performance indicators and conditions for maintaining the participant's employment relationship until the payment date in order to be entitled to receive it.

The payment of the plans is calculated based on the percentage of achievement of the indicators applied on the reference value (target), with the Local plans paid in SANB11 units and the Global plans in shares and options of Grupo Santander (SAN).

Each participant has a reference value defined in kind, converted into SANB11 units or shares and options of Grupo Santander (SAN), usually at the price of the last 15 trading sessions of the month immediately prior to the grant of each plan. At the end of the vesting period, the resulting shares are delivered with a 1-year restriction, and this payment is still subject to the application of the Malus / Clawback clauses, which may reduce or cancel the shares to be delivered in cases of non-compliance with internal rules and exposure excessive risks.

a.1) Impact on Income

The impacts on the result are recorded in the Personnel Expenses item, as follows:

Bank

Consolidated

 

Plan

01/01 to 03/31/2021

01/01 to 03/31/2020

01/01 to 03/31/2021

01/01 to 03/31/2020

 

Local

4,326 

208 

4,845 

458 

 

Global

952 

865 

952 

846 

 

b.2) Variable Remuneration Referenced to Shares

In the long-term incentive plan (deferral), the requirements for payment of future deferred installments of variable remuneration are determined, considering the long-term sustainable financial bases, including the possibility of applying reductions or cancellations depending on the risks assumed and fluctuations. of the cost of capital.

The variable remuneration plan with payment referenced in Banco Santander shares is divided into 2 programs: (i) Identified Collective and (ii) Other Employees. The impacts on the result are recorded in the Personnel Expenses item, as follows:

Bank

Consolidated

Program

Participant

Liquidity Type

01/01 a 03/31/2021

01/01 a 03/31/2020

01/01 a 03/31/2021

01/01 a 03/31/2020

Collective Identified

Members of the Executive Committee, Statutory Officers and other executives who assume significant and responsible risks of control areas

50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11)

14,384 

4,851 

14,212 

3,453 

Unidentified Collective

Management-level employees and employees who are benefited by the Deferral Plan

50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11)

2,706 

1,263 

2,789 

1,256 

 

28.   Risk Management, Capital and Sensitivity Analysis

a) Risk Management Structure

Banco Santander in Brazil follows the model based on a prudent risk management. It has specialized management structure for each risks listed below, as well as an area that carries out the Integrated Risk Management of the Group, disseminates Risk Pro Culture, manages risk self-assessment and controls Risk Appetite (RAS) - which is approved by the Board of Directors -, attending the requirements of the local regulator and the international good practices, aiming to protect capital and ensure business profitability.

The fundamental principles that rule the risk governance model are:

     All employees are responsible for the management of risk;

     Senior Management Engagement;

     Independence of risk control and management functions;

     Comprehensive approach to management and control of risks;

     Risk management and control must be based on timely, accurate and sufficiently granular management information.

 

A. Credit Risk     

The credit risk management is based in monitoring of credit portfolio and new credit operation indicators. Considering the economic scenario, profitability and defaults projections are estimated under control of appetite for risk. These projections are the basis for a redefinition of credit policies, which affect both the credit evaluation for a specific customer as customers with similar profile.

Another relevant aspect is the preventive management of credit, which is fundamental in maintaining the quality of Banco Santander's portfolio. The monitoring of the customer portfolio is a daily routine of the entire commercial area, with the support of the central areas.

In this challenging scenario imposed by the COVID-19 pandemic, the portfolio and customers were monitored very carefully. In an attempt to mitigate major impacts of liquidity on companies and provide the necessary financial support to assist all sectors of the economy, all new productions and extensions were analyzed in order to meet the needs of customers, always maintaining the established risk classification criteria and governance for approval of new operations.

To measure the quality of a client’s or facility’s credit, the Bank uses its own models score/rating, made by Metodology and independent Validation areas.

On credit restructuring and recovery the Bank uses specific collection teams, which may be:

• Internal teams specializing in with direct action against defaulting clients with delays exceeding 60 days and more significant amounts; and

• External partners specializing in collecting, notifying and filing high-risk clients.

Sale of non-performing loans portfolio is a recurrent part of the recovery strategy (only credit rights), but the Santander may maintain relationships and transactional means with assigned clients.                                                                                                                                                   

Besides, the bank constitutes provision in accordance with the current legislation of Bacen and National Monetary System (Note 8.e).

B. Market Risk Management

The management of the market risk consists on developing, measuring and monitoring the use of limits previously approved in internal committees, relevant to the value at risk of the portfolios, the sensitivities arising from variation in market data (interest rates, indices, prices, exchange rates, etc.), liquidity gaps, among others, which might affect the positions of Banco Santander's portfolios in the various markets where it operates.

C. Operational Risk and Internal Controls

Santander's operational risk management model is based on best practices and its premise is to evaluate, monitor, control, implement improvements to reduce exposure to risks and losses, in line with the risk appetite approved by the Board of Directors and adopting the definition of the Basel Committee and Central Bank of Brazil for operational risks. Our governance model is based on the three lines of defense and has people, structures, policies, methodologies and tools to support the adequate management of operational risk.

The Internal Controls Model is based on the methodology developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), covering the strategic, operational, financial disclosure and compliance components and allows compliance with the requirements of regulators BACEN, CVM, B3, SUSEP and SarbanesOxley - SOX (Security Exchange Commission).

D. Bank´s business is highly dependent on the proper functioning of information technology systems.

Our business is highly dependent on the ability of our information technology systems to accurately process a large number of transactions across numerous and diverse markets and products in a timely manner, and on our ability to rely on our digital technologies, computer and email services, software and networks, as well as on the secure processing, storage and transmission of confidential data and other information in our computer systems and networks. The proper functioning of our financial control, risk management, accounting, customer service and other data processing systems is critical to our business and our ability to compete effectively.

E. Compliance and Reputacional Risk Management

Compliance risk management has a proactive focus on this risk, policies, implementation of process, including monitoring, training, advisory, risk assessment and corporate communication of standards and regulations to be applied to each businesses area of the Banco Santander.

F. Unit for the Anti Money Laundering (AML) and Coutering of Financing of Terrorism (CFT)

Area responsible for promoting the development of the prevention of money laundering and combating the financing of terrorism in the different business units, as well as responsible for the Bank's Know Your Customer guidelines, establishing policies, procedures, monitoring and culture related to the subject. Moreover analyzing the AML/CFT risks in the products and services monitoring the product´s risk and transactions carried out.

G. Social and Environmental Risk

Banco Santander’s Social and Environmental Responsibility Policy (PRSA), which complies with National Monetary Council Resolution 4,327/2014 and the SARB 14 self-regulation issued by Febraban, establishes guidelines and consolidates specific policies for social-environmental practices used in business and stakeholder relations. These practices including social and environmental risk management, impacts and opportunities related themes, such as, adequacy in the concession or use of credit, supplier management and analysis of the social and environmental risk which is carried out through the analysis of the socio-environmental practices of wholesale and segment Empresas 3 retail clients, that have limits or credit risk greater than BRL5 million and are included in one of the 14 sectors of social and environmental attention. In other to mitigate operational, capital, credit and reputational risk. Since 2009 Santander is Equator Principles signatory, which standards are applied in order to mitigate social and environmental risks when financing big projects.

The commitments assumed in the PRSA are detailed in others Bank policies, such as, the Anti-Corruption Policy, Supplier Relationships and Homologation Policies and Social-Environmental Risk Policies, besides that the Private Social Investment Policy, which aims to guide the strategy of this topic and present guidelines for social programs that strengthen this strategy.

H. Structure of Capital Management                                                                                                                        

Santander adopts a robust governance that supports all processes related to effective capital management in order to:

• Clearly define the functions of each team involved in the capital management;                                                                                                                                         

• Ensure that the capital metric limits established in management, risk appetite and the Risk Profile Assessment (RPA) are fulfilled;

• Ensure that the actions related to the institution's strategy consider the impacts generated in the capital allocation;

• Ensure that the Management actively participates in the management and is regularly informed about the behavior of the capital metrics.

At Banco Santander, there is an Executive Vice-President responsible for capital management appointed by the Board of Directors; in addition, there are institutional capital policies, which act as guidelines for capital management, control and reporting (thus fulfilling all the requirements defined in CMN Resolution No. 4,557 / 2017).

For further information, see the "Risk and Capital Management Structure - Resolution nº. 4,557 / BACEN" in "Corporate Governance" and "Risk Management" at https://www.ri.santander.com.br/

b) Operational Limits

As established in CMN Resolutions No. 4,193 / 2013 and No. 4,783 / 2020, for 2020 the PR requirement was 10.25%, including 8.00% of Minimum Reference Equity plus 1.25% of Additional Capital Conservation and 1.00% Systemic Additional. PR Level I was 8.25% and Minimum Minimum Capital was 6.75%.

For March, the requirements remain unchanged, but over the course of 2021 the Additional Capital Conservation will undergo two increases, going to 1.625% from April and to 2.00% from October. Thus, at the end of the year 2021, the PR requirement will be 11.00%, considering 8.00% of the Minimum Equity of Reference plus 2.00% of Additional Capital Conservation and 1.00% of Additional Systemic. The PR Level I and Minimum Principal Capital requirements will be 9.00% and 7.50%, respectively.

Continuing the adoption of the rules established by CMN Resolution No. 4,192 / 2013, as of January 2015, the Prudential Consolidated, defined by CMN Resolution No. 4,280 / 2013, came into force.

The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:

03/31/2020

12/31/2020

Tier I Regulatory Capital

80,059,065 

77,571,525 

Principal Capital

72,732,347 

71,006,316 

Supplementary Capital (Note 16)

7,326,718 

6,565,209 

Tier II Regulatory Capital (Note 16)

7,294,893 

6,554,451 

Regulatory Capital (Tier I and II)

87,353,958 

84,125,976 

Credit Risk (1)

500,591,117 

478,303,523 

Market Risk (2)

20,199,697 

15,846,255 

Operational Risk

54,851,805 

57,419,401 

Total RWA (3)

575,642,618 

551,569,179 

Basel I Ratio

13,91 

14,06 

Basel Principal Capital

12,63 

12,87 

Basel Regulatory Capital

15,18 

15,25 

(1) The credit risk exposures subject to the calculation of the capital requirement using a standardized approach (RWACPAD) are based on the procedures established by Circular Bacen 3,644, of March 4, 2013 and their subsequent complementations through the wording of Circular Bacen 3,174 of August 20, 2014 and Circular Bacen 3,770 of October 29, 2015.

(2) Includes installments for market risk exposures subject to variations in the rates of foreign currency coupons (RWAjur2), price indices (RWAjur3) and interest rate (RWAjur1 / RWAjur4), in the price of commodities (RWAcomur) ), the price of shares classified in the trading portfolio (RWAacs) and installments for exposure of gold, foreign currency and operations subject to exchange variation (RWAcam).

(3) Risk Weighted Assets or risk-weighted asset.

 

Banco Santander publishes the Risk Management Report on a quarterly basis with information on risk management, a brief description of the Recovery Plan, capital management, PR and RWA. The report with more details of the premises, structure and methodologies can be found at www.santander.com.br/ri.

Financial institutions are obliged to maintain the application of resources in permanent assets in accordance with the level of adjusted Reference Equity. The resources invested in permanent assets, calculated on a consolidated basis, are limited to 50% of the value of the Reference Equity adjusted according to the regulations in force. Banco Santander is within the established requirements.

c) Financial Instruments - Sensitivity Analysis

Risk management is focused on portfolios and risk factors, in accordance with Bacen regulations and international good practices.

Financial instruments are segregated into the trading and banking portfolios, as carried out in the management of market risk exposure, in accordance with the best market practices and with the classification criteria for operations and capital management of the Basen Standardized Basel Method. The trading portfolio consists of all transactions with financial instruments and commodities, including derivatives, maintained with the intention of trading. The banking portfolio consists of structural operations arising from the different business lines of Banco Santander and their possible hedges. Accordingly, according to the nature of Banco Santander activities, the sensitivity analysis was divided between the trading and banking portfolios.

Banco Santander performs the sensitivity analysis of financial instruments in accordance with CVM Instruction nº. 475/2008, considering market information and scenarios that would negatively affect the Bank's positions.

The summary tables presented below summarize the sensitivity values ​​generated by the corporate systems of Banco Santander, referring to the trading portfolio and the banking portfolio, for each of the scenarios of the portfolios of March 31, 2021.

Trading Portfolio

Consolidated

Risk Factor

Description

Scenario 1

Scenario 2

Scenario 3

Interest Rate - Real

 Exposures subject to Changes in Interest Fixed Rate

(22,988) 

(450,588) 

(901,176) 

Coupon Interest Rate

 Exposures subject to Changes in Coupon Rate of Interest Rate

(726) 

(8,368) 

(16,736) 

Coupon - US Dollar

 Exposures subject to Changes in Coupon US Dollar Rate

(4,360) 

(18,050) 

(36,100) 

Coupon - Other Currencies

 Exposures subject to Changes in Coupon Foreign Currency Rate

(16) 

(5,049) 

(10,097) 

Foreign Currency

 Exposures subject to Foreign Exchange

(8) 

(189) 

(377) 

Eurobond/Treasury/Global

 
Exposures subject to Interest Rate Variation on Papers Traded on the International Market

(36) 

(1,243) 

(2,485) 

Inflation

 Exposures subject to Change in Coupon Rates of Price Indexes

(36,890) 

(360,842) 

(721,685) 

Shares and Indexes

 Exposures subject to Change in Shares Price

(834) 

(20,853) 

(41,705) 

Commodities

 Exposures subject to Change in Commodity Price

(734) 

(18,338) 

(36,676) 

Total (1)

(66,592)

(883,520)

(1,767,037)

(1) Amounts net of tax effects.

Scenario 1: shock of + 10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.

Scenario 2: shock of + 25% and -25% in all risk factors, considering the largest losses by risk factor.

Scenario 3: shock of + 50% and -50% in all risk factors, considering the largest losses by risk factor.

Banking Portfolio

Consolidated

Risk Factor

Description

Scenario 1

Scenario 2

Scenario 3

Interest Rate - Real

 Exposures subject to Changes in Interest Fixed Rate

(49,384) 

(510,424) 

(1,218,496) 

TR and Long-Term Interest Rate - (TJLP)

 Exposures subject to Change in Exchange TR and TJLP
 

(20,813) 

(182,738) 

(218,219) 

Inflation

 Exposures subject to Change in Coupon Rates of Price Indexes

(15,599) 

(295,271) 

(658,963) 

Coupon - US Dollar

 Exposures subject to Changes in Coupon US Dollar Rate

(9,199) 

(49,523) 

(96,124) 

Coupon - Other Currencies

 Exposures subject to Changes in Coupon Foreign Currency Rate

(5,392) 

(6,349) 

(12,761) 

Interest Rate Markets International

 Exposures subject to Changes in Interest Rate Negotiated Roles in International Market

(34,738) 

(89,456) 

(184,367) 

Foreign Currency

 Exposures subject to Foreign Exchange

(113) 

(2,836) 

(5,672) 

Total (1)

(135,238)

(1,136,597)

(2,394,602)

(1) Amounts net of tax effects.

Scenario 1: shock of + 10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.

Scenario 2: shock of + 25% and -25% in all risk factors, considering the largest losses by risk factor.

Scenario 3: shock of + 50% and -50% in all risk factors, considering the largest losses by risk factor.

29.   Other information

a) Co-obligations and risks in guarantees provided to customers, recorded in memorandum accounts, reached the amount of R$ 48,253,037 (12/31/2020 - R$ 46,471,443) in the Bank and R$ 48,253,037 (12/31/2020 - R$ 46,471,443) in the Consolidated.

b) The total value of investment funds and assets under management of the Santander Conglomerate is R$ 2,806,630 (12/31/2020 - R$ 2,716,477) and the total of investment funds and assets under management is R$ 195,356 .797 (12/31/2020 - R$ 191,873,169) recorded in memorandum accounts.

c) Insurance in force on March 31, 2021, corresponding to coverage of fires, natural disasters and other risks related to real estate, has a coverage value of R $ 9,051,568 (12/31/2020 - 392,189) at the Bank and at the Consolidated. In addition, at the Bank and the Consolidated on March 31, 2021, there are other policies in force to cover risks related to fraud, civil liability and other assets in the amount of R$ 1,427,608 (12/31/2020 - R$ 8,674,721) .

d) Between March 31, 2021 and March 31, 2020, there were no linked asset transactions and obligations for linked asset transactions.

e) Obligations Clearing and Settlement Agreements - CMN Resolution 3,263 / 2005 - Banco Santander has an agreement for clearing and settling obligations within the scope of the National Financial System (SFN), signed with individuals and legal entities that are members of SFN or not, resulting in greater guarantee of financial settlement, with the parties that have this type of agreement. These agreements establish that the payment obligations to Banco Santander, arising from credit and derivative transactions, in the event of default by the counterparty, will be offset against the payment obligations of Banco Santander to the counterparty.

f) Other Commitments - Banco Santander has two types of rental agreements: cancellable and non-cancellable. Cancellables are properties, mainly used as branches, based on a standard contract, which can be canceled at will and includes the right to renew option and readjustment clauses, framed in the operating lease concept. The total of future minimum payments for non-cancellable operating leases is shown below:

31/03/2021

12/31/2020

Up to 1 Year

725,853 

670,619 

Between1 to 5 Years

1,727,883 

1,607,995 

More than 5 Years

167,511 

171,420 

Total

2,621,247 

2,450,034 

 

Additionally, Banco Santander has contracts with an indefinite term, in the amount of R$ 1,146 (12/31/2020 - R$ 880) corresponding to the monthly rent of contracts with this characteristic. Operating lease payments, recognized as expenses in the first quarter of 2021, amounted to R$ 370,916 (2020 - R$ 358,656).

The rental contracts will be readjusted annually, according to the legislation in force, and the highest percentage is according to the variation of the General Market Price Index (IGPM). The lessee is guaranteed the right to unilaterally terminate these contracts, at any time, in accordance with contractual clauses and legislation in force. Market Value of Financial Assets and Liabilities

g) Market value of assets and liabilities - Banco Santander classifies measurements at market value using the market value hierarchy that reflects the model used in the measurement process, and is in accordance with the following hierarchical levels:

Level 1: Determined based on public price quotations (unadjusted) in active markets for identical assets and liabilities, include government bonds, stocks and listed derivatives. Highly liquid securities with observable prices in an active market are classified at level 1. Most Brazilian Government Securities (mainly LTN, LFT, NTN-B and NTN-F), listed on the stock exchange, were classified at this level. and other securities traded on the active market. Derivatives traded on stock exchanges are classified at level 1 of the hierarchy.

Level 2: It is the derivatives of data other than quoted prices included in Level 1 that are observable for the asset or liability, directly (as prices) or indirectly (derived from prices). When price quotations cannot be observed, Management, using its own internal models, makes its best estimate of the price that would be set by the market. These models use data based on observable market parameters as an important reference. The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions carried out with the same or similar instruments or can be measured using an evaluation technique in which the variables used include only observable market data, especially interest rates. These bonds and securities are classified at level 2 of the fair value hierarchy and are mainly composed of Government Bonds (repo, Cancelable LCI and NTN) in a less liquid market than those classified at level 1. For over-the-counter derivatives, for the valuation of financial instruments (basically swaps and options), observable market data such as exchange rates, interest rates, volatility, correlation between indices and market liquidity are normally used. In the pricing of the mentioned financial instruments, the Black-Scholes model methodology (exchange rate options, interest rate index options, caps and floors) and the present value method (discount of future values ​​by curves) are used. market).

Level 3: They are derived from valuation techniques that include data for assets or liabilities that are not based on observable market variables (unobservable data). When there is information that is not based on observable market data, Banco Santander uses models developed internally, in order to properly measure the fair value of these instruments. At level 3, low liquidity instruments are mainly classified. Derivatives that are not traded on the stock exchange and that do not have observable information in an active market were classified as level 3, and are composed, including exotic derivatives.

In Thousands of Brazilian Real

2021 

Assets

Carrying

Amount

Maket Value

Interbank Investments

79,628,721 

79,628,721 

16,954,881 

56,776,517 

45,897,323 

Securities and Debt Instruments

233,739,352 

234,899,576 

183,544,955 

14,534,515 

36,820,106 

Derivatives Financial Instruments

30,645,788 

30,645,788 

30,010,797 

634,991 

Lending Operations

351,861,843 

349,124,494 

349,124,494 

Total

695,875,704 

694,298,579 

200,499,836 

101,321,829 

392,476,914 

 

 

In Thousands of Brazilian Real

2020 

Assets

Carrying

Amount

Maket Value

Interbank Investments

69,698,253 

69,698,253 

62,601,986 

7,096,267 

Securities and Debt Instruments

233,248,338 

234,844,495 

135,118,884 

65,394,153 

34,331,458 

Derivatives Financial Instruments

32,840,075 

32,840,075 

32,258,845 

581,230 

Lending Operations

338,110,717 

341,503,600 

341,503,600 

Total

673,897,383 

678,886,423 

135,118,884 

160,254,984 

383,512,555 

 

The following is a comparison of the carrying amounts of the Bank's financial liabilities measured at a value other than the market value and their respective market values ​​as of March 31, 2021 and 2020:

In Thousands of Brazilian Real

2021 

Maket Value

Liabilities

Carrying

Amount

Deposits

383,440,815 

383,416,370 

 

383,416,370 

Money Market Funding

165,423,361 

165,418,452 

 

165,418,452 

Borrowings and Onlendings

83,832,879 

83,832,879 

 

83,832,879 

Funds from Acceptance and Issuance of Securities

70,726,446 

70,297,737 

 

70,297,737 

Derivatives Financial Instruments

34,077,347 

34,077,347 

 

33,390,508 

686,839 

Debt Instruments Eligible to Compose Capital

14,621,611 

14,621,611 

 

14,621,611 

Total

752,122,459 

751,664,396 

 

198,808,960 

552,855,436 

 

In Thousands of Brazilian Real

2020 

Maket Value

Liabilities

Carrying

Amount

Deposits

390,051,798 

390,093,916 

390,093,916 

Money Market Funding

154,997,017 

154,994,486 

154,994,486 

Borrowings and Onlendings

67,759,950 

67,759,950 

67,759,950 

Funds from Acceptance and Issuance of Securities

70,627,767 

71,017,560 

71,017,560 

Derivatives Financial Instruments

36,269,465 

36,269,465 

35,642,321 

627,144 

Debt Instruments Eligible to Compose Capital

13,119,660 

13,119,660 

13,119,660 

Total

732,825,657 

733,255,037 

190,636,807 

542,618,230 

 

Management revisited the criteria assigned to classify the level of assets measured at market value, presented exclusively for disclosure purposes and verified the need for changes between level 3 and level 1 and from level 2 to level 1 in view of the observable Marketplace.

h) Recurring / non-recurring results

 Bank

2021 

2020 

 Recurring

Income

 Non-recurring

Income

01/01 to 03/31/2021

Recurring

Income

Non-recurring

Income

01/01 to 03/31/2020

Income Related to Financial Operations

35,554,559 

35,554,559 

48,959,478 

48,959,478 

Expenses on Financial Operations

(29,174,884) 

(29,174,884) 

(54,681,130) 

(54,681,130) 

Gross Income Related to Financial

Operations

6,379,675 

6,379,675 

(5,721,652) 

(5,721,652) 

Other Operating Revenues (Expenses) (1)

(1,955,366) 

(1,031,615) 

(2,986,981) 

(1,263,680) 

(127,860) 

(1,391,540) 

Operating Income

4,424,309 

(1,031,615) 

3,392,694 

(6,985,332) 

(127,860) 

(7,113,192) 

Non-Operating Income

25,031 

25,031 

201,446 

201,446 

Income Before Taxes on Income and

Profit Sharing

4,449,340 

(1,031,615) 

3,417,725 

(6,783,886) 

(127,860) 

(6,911,746) 

Income Tax and Social Contribution (2)

128,879 

(140,933) 

(12,054) 

11,100,517 

37,273 

11,137,790 

Profit Sharing

(429,095) 

(429,095) 

(437,504) 

(437,504) 

Net Income

4,149,124 

(1,172,548) 

2,976,576 

3,879,127 

(90,587) 

3,788,540 

 

Consolidated

2021 

2020 

 Recurring

Income

 Non-recurring

Income

01/01 to 03/31/2021

Recurring

Income

Non-recurring

Income

01/01 to 03/31/2020

Income Related to Financial Operations

37,756,910 

37,756,910 

51,691,916 

51,691,916 

Expenses on Financial Operations

(29,816,689) 

(29,816,689) 

(55,734,144) 

(55,734,144) 

Gross Income Related to Financial

Operations

7,940,221 

7,940,221 

(4,042,228) 

(4,042,228) 

Other Operating Revenues (Expenses) (1)

(3,004,000) 

(1,031,615) 

(4,035,615) 

(2,345,129) 

(127,860) 

(2,472,989) 

Operating Income

4,936,221 

(1,031,615) 

3,904,606 

(6,387,357) 

(127,860) 

(6,515,217) 

Non-Operating Income

29,185 

29,185 

204,819 

204,819 

Income Before Taxes on Income and

Profit Sharing

4,965,406 

(1,031,615) 

3,933,791 

(6,182,538) 

(127,860) 

(6,310,398) 

Income Tax and Social Contribution (2)

(479.450) 

(140,933) 

(620,383) 

10,569,146 

37,273 

10,606,419 

Profit Sharing

(471,886) 

(471,886) 

(479,097) 

(479,097) 

Non-Controlling Interest

(25,258) 

(25,258) 

(42,921) 

(49,921) 

Net Income

3,988,812 

(1,172,548) 

2,816,264 

3,864,590 

(90,587) 

3,774,003 

(1) Amortization of investment goodwill recognized as Other Operating Expenses in the amount before taxes of R$ 1,031,615 (2020 - R$ 127,860) in the Bank and in the Consolidated, with a net impact of taxes of R$ 1.008.815 (2020 - R$ 90,587).

(2) Write-off of tax loss resulting from GetNet's spun-off shareholders' equity (See note 13.c.i) in the amount of R$ 163,732, and tax effect on the amortization of goodwill on investment, in the amount of R$ 22,799.

 

30.   Subsequent Event

a)     Dividend Resolution

The Board of Directors, in a meeting held on April 17, 2021, approved the Executive Board's proposal, ad referendum of the Annual General Meeting, to be held in 2022, for the distribution of (i)  interim dividends, in the amount of R$2.800.000.000 (two billion and eight hundred million reais calculated based on the balance sheet of March 31, 2021; and ii) interim dividends, in the amount of R$200.000.000,00 (two hundred million reais) from the Dividend Equalizatoin Reserve of the Company based on the balance sheet of December 31, 2020, for a  total amount od Dividends of R$3.000.000.000,00 (three billion reais). The Dividends approved will be paid as of June 2nd, 2021 and fully considered within the amount of mandatory dividends to be distributed by the Company for year 2021.

 

 

 

 

 


Composition of Management Bodies

Administrative Council

Álvaro Antônio Cardoso de Souza – President

Sérgio Agapito Lires Rial - Vice-President

Deborah Patricia Wright - Counselor (independent)

Deborah Stern Vieitas - Counselor (independent)

Jose Antonio Alvarez Alvarez – Counselor

José de Paiva Ferreira – Counselor

José Maria Nus Badía – Counselor

Marília Artimonte Rocca - Counselor (independent)

Pedro Augusto de Melo - Counselor (independent)

 

Audit Committee

Deborah Stern Vieitas - Coordinator

Luiz Carlos Nannini - Qualified Technical Member

Maria Elena Cardoso Figueira - Member

René Luiz Grande - Member

Risk and Compliance Committee

Pedro Augusto de Melo - Coordinator

Álvaro Antonio Cardoso de Souza - Member

José de Paiva Ferreira - Member

Virginie Genès-Petronilho - Member

Sustainability Committee

Marilia Artimonte Rocca - Coordinator

Carlos Aguiar Neto - Member

Carlos Rey de Vicente - Member

Mario Roberto Opice Leão - Member

Tarcila Reis Corrêa Ursini - Member

Nomination and Governance Committee

Álvaro Antonio Cardoso de Souza - Member

Deborah Patricia Wright - Member

Luiz Fernando Sanzogo Giogi - Member

Compensation Committee

Deborah Patricia Wright - Coordinator

Álvaro Antonio Cardoso de Souza - Member

Luiz Fernando Sanzogo Giogi - Member

Fiscal Council

João Guilherme de Andrade So Consiglio - Effective Member (President)

Antonio Melchiades Baldisera - Effective member

Louise Barsi - Effective Member

Manoel Marcos Madureira - Substitute

Luciano Faleiros Paolucci - Substitute

Valmir Pedro Rossi – Substitute

 

*The Fiscal Council was installed at the Annual and Extraordinary Shareholders' Meetings held on April 30, 2020, and the members were approved by the Central Bank of Brazil on July 10, 2020, the date on which they took office in their respective positions, with a mandate until the 2021 Annual General Meeting.

Executive Board

 

Chief Executive Officer                   

Sérgio Agapito Lires Rial

 

Vice-President Executive Officer and Investor Relations Officer                       

Angel Santodomingo Martell           

 

Vice-President Executive Officers               

Alberto Monteiro de Queiroz Netto

Alessandro Tomao              

Antonio Pardo de Santayana Montes             

Carlos Rey de Vicente

Ede Ilson Viani     

Jean Pierre Dupui               

Juan Sebastian Moreno Blanco                        

Mário Roberto Opice Leão

PatríciaSoutoAudi

Vanessa de Souza Lobato Barbosa

 

Officers without specific designation                                         

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes

Carlos Aguiar Neto               

Cassio Schmitt       

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz                

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani           

Igor Mario Puga

Jean Paulo Kambourakis 

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto 

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho 

Marcelo Augusto Dutra Labuto

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago    

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Sandro Kohler Marcondes

Sandro Rogério da Silva Gamba      

Thomas Gregor Ilg                

Vítor Ohtsuki

Accountant

Gilberto Cabeleira Alves – CRC Nº PR040031/ O-7

 

 

 

 

 

Declaration of directors on the financial statements

 

For the purposes of complying with the provisions of article 25, paragraph 1, item VI, of the Securities Commission (CVM) Instruction 480, of December 7, 2009, the members of the Executive Board of Banco Santander (Brasil) SA (Banco Santander or Company) declare that they discussed, reviewed and agreed with the Financial Statements prepared by Banco Santander´s BRGAAP criteria, for the year ended March 31, 2021, and the documents that comprise them, being: Management Report, balance sheets, statement results, statement of changes in equity, statement of cash flows, statement of added value and explanatory notes, which were prepared in accordance with accounting practices adopted in Brazil, in accordance with Law No. 6,404, of December 14, 1976 (Brazilian Corporate Law), the rules of the National Monetary Council, of the Central Bank of Brazil according to the model of Plan C of the National Financial System Institutions (COSIF) and other applicable regulations and legislation. The aforementioned Financial Statements and the documents that comprise them, were the subject of a report without reservation by the Independent Auditors regarding the recommendation for approval issued by the Company's Audit Committee and the favorable opinion of the Company's Fiscal Council.

 

Members of the Executive Board of Banco Santander on March 31, 2021:

 

Chief Executive Officer                        

Sérgio Agapito Lires Rial

 

Vice-President Executive Officer and Investor Relations Officer                    

Angel Santodomingo Martell

 

Vice-President Executive Officers                      

Alberto Monteiro de Queiroz Netto

Alessandro Tomao

Antonio Pardo de Santayana Montes    

Carlos Rey de Vicente

Ede Ilson Viani      

Jean Pierre Dupui  

Juan Sebastian Moreno Blanco                             

Mário Roberto Opice Leão

PatríciaSoutoAudi

Vanessa de Souza Lobato Barbosa

 

Officers without specific designation                               

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes

Carlos Aguiar Neto  

Cassio Schmitt        

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz     

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani              

Igor Mario Puga

Jean Paulo Kambourakis 

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto 

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho 

Marcelo Augusto Dutra Labuto

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago 

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Sandro Kohler Marcondes

Sandro Rogério da Silva Gamba           

Thomas Gregor Ilg  

Vítor Ohtsuki

Directors' Statement on Independent Auditors

 

For the purposes of complying with the provisions of article 25, paragraph 1, item V, of the Securities and Exchange Commission (CVM) Instruction 480, of December 7, 2009, the members of the Executive Board of Banco Santander (Brasil) SA (Banco Santander or Company) declare that they have discussed, reviewed and agreed with the Financial Statements by the Banco Santander BRGAAP criterion, which includes the Independent Auditors' Report, related to the Financial Statements by Banco Santander BRGAAP criterion, for the period ended March 31, 2021 , and the documents that comprise them, being: Performance Comments, balance sheets, income statement, statement of changes in equity, statement of cash flows, statement of added value and explanatory notes, which were prepared in accordance with accounting practices adopted in Brazil, in accordance with Law No. 6,404, of December 14, 1976 (Brazilian Corporate Law) tions), the rules of the National Monetary Council, the Central Bank of Brazil in accordance with the model of the Accounting Plan of the Institutions of the National Financial System (COSIF) and other applicable regulations and legislation. The aforementioned Financial Statements and the documents that comprise them, were the subject of a report without reservation by the Independent Auditors regarding the recommendation for approval issued by the Company's Audit Committee and the favorable opinion of the Company's Fiscal Council.

 

Members of the Executive Board of Banco Santander on March 31, 2021:

 

Chief Executive Officer                        

Sérgio Agapito Lires Rial

 

Vice-President Executive Officer and Investor Relations Officer                    

Angel Santodomingo Martell

 

Vice-President Executive Officers                      

Alberto Monteiro de Queiroz Netto

Alessandro Tomao

Antonio Pardo de Santayana Montes    

Carlos Rey de Vicente

Ede Ilson Viani      

Jean Pierre Dupui  

Juan Sebastian Moreno Blanco                             

Mário Roberto Opice Leão

PatríciaSoutoAudi

Vanessa de Souza Lobato Barbosa

 

Officers without specific designation                               

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes

Carlos Aguiar Neto  

Cassio Schmitt        

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz     

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani              

Igor Mario Puga

Jean Paulo Kambourakis 

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto 

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho 

Marcelo Augusto Dutra Labuto

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago 

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Sandro Kohler Marcondes

Sandro Rogério da Silva Gamba           

Thomas Gregor Ilg  

Vítor Ohtsuki

 

Fiscal Council Report

 

The members of the Fiscal Council, in the quarter of their legal and statutory attributions, examined the Management Report and Financial Statements of Banco Santander (Brasil) SA, referring to the first quarter of 2021, and conclude, based on the examinations carried out, in the clarifications provided by the Management, considering also the opinion without reservation of PwC Auditores Independentes, that the mentioned pieces, examined in the light of the accounting practices adopted in Brazil, applicable to the institutions authorized to operate by the Central Bank of Brazil, independently reflect the equity situation Bank's financial and financial resources.

São Paulo, April 27, 2021.

 

 

FISCAL COUNCIL

João Guilherme de Andrade So Consiglio – President

Antônio Melchiades Baldisera

Louise Barsi

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 27, 2021

 

Banco Santander (Brasil) S.A.

By:

/SAmancio Acurcio Gouveia 


 

Amancio Acurcio Gouveia
Officer Without Specific Designation

 

 

By:

/SCarlos Rey de Vicente


 

Carlos Rey de Vicente
Vice - President Executive Officer