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)